The U.S. Department of Commerce (DOC) has set preliminary countervailing duties of up to 27.01% on engineered wood flooring from 127 Chinese companies to offset alleged government subsidies.

Three companies named in the investigation—Zhejiang Layo Wood Industry Co., Jiaxing Brilliant Import & Export Co. and Zhejiang Yuhua Timber Co.—were assigned duty rates of zero because it found no evidence they had benefited from government subsidies, while another three companies that participated in the investigation have been assigned a duty rate of 2.25%.

“These findings certainly undermine the overblown allegations of the petitioners that they are injured by overseas subsidies,” said Jonathan Train, vice president of Swiff-Train and president of the Alliance for Free Choice and Jobs in Flooring (AFCJF), in a statement.

The investigation was initiated by a petition from the Coalition for American Hardwood Parity, an ad hoc association of U.S. engineered wood flooring manufacturers that have also asked for antidumping duties of up to 281% to offset what they said was unfairly low pricing by their Chinese competitors. The DOC has not yet ruled on that portion of the case.