The U.S. Department of Commerce decided to avoid investigation on China’s processing of wooden bathroom cabinets and cabinets in Malaysia and Vietnam

The U.S. Department of Commerce decided to avoid investigation on China’s processing of wooden bathroom cabinets and cabinets in Malaysia and Vietnam

The Trade Protection Bureau (Ministry of industry and trade) of the Ministry of industry and trade of Vietnam recently learned that the US Department of Commerce (DOC) has launched an investigation into the wooden cabinets imported from Vietnam and Malaysia to the US, because these wooden cabinets use parts imported from China, which fall within the scope of the trade protection measures for similar Chinese products being implemented by the US.

Specifically, in order to impose tariffs on China, the U.S. Department of Commerce stipulates that the wooden cabinets and their parts covered by this measure are further processed in a third country, including but not limited to the following steps: planing, cutting, chiseling, drilling, painting, coloring, completion or other stages, which are still within the scope of application of anti-dumping and countervailing duties.

According to U.S. regulations, the parties concerned will put forward their opinions and provide rebuttal information to the U.S. investigation agency within 30 days from the date of initiation.

It is expected that the US Department of Commerce will make a final conclusion within 120 days after the initiation of the investigation (an additional 180 days can be extended if there are reasonable reasons). In the course of investigation, the US Department of Commerce may require relevant parties to provide review information.

Therefore, Doc agreed to file a case for investigation on one of the two items requiring the US Department of Commerce to investigate on behalf of several US wood cabinet manufacturers (considering the product range). For the rest (tax evasion investigation), Doc is still considering whether to start the investigation (expected to last until June 6, 2022).

Earlier, the US kitchen cabinet alliance submitted these two proposals to the US Department of Commerce and accused Vietnamese manufacturers and exporters of importing cabinets and cabinet parts from China, then assembling them in Vietnam and exporting them to the United States.

According to the preliminary data of the U.S. International Trade Commission (USITC), in 2021, Vietnam exported the investigated products to the country with a total value of about US $2.7 billion.

In 2019-2021, after the United States imposed taxes on China, the surveyed products imported from China to the United States decreased by 54% (from US $2.5 billion to US $1.6 billion) in 2019-2021. At the same time, Vietnam’s exports to the United States increased by more than 130% (from US $1.37 billion to US $2.7 billion).

In fact, in recent years, the whole wood industry is facing increasing risks related to anti-dumping and origin infringement tracing, especially in the context of industry depth and wide integration.

In view of this situation, in order to ensure its legitimate interests, Vietnam Trade Protection Bureau suggested that the association and the wood cabinet product production / export enterprises continue to review the export of the investigated products to the United States; Study and understand the regulations, orders and procedures of anti tax evasion investigation in the United States; Strictly and fully implement the requirements of the U.S. investigation agency, and closely cooperate with the Trade Protection Bureau in the whole process of the incident.

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