The US Department of Commerce intends to impose a countervailing duty on $4.4 billion Chinese cabinets at a maximum rate of 229%.
ABSTRACT: As trade frictions between Washington and Beijing escalated, the U.S. Department of Commerce ruled Tuesday that importers of Chinese wooden cabinets and dressing tables would receive a deposit of up to 229% in response to a petition submitted earlier this year by the American Cabinet Alliance. In their petition, American cabinet dealers accused China of importing cabinets worth about $4.4 billion over the years.
The US Department of Commerce intends to impose a countervailing duty on $4.4 billion Chinese wooden cabinets at a maximum rate of 229%_Fig. 1-1
As trade frictions between Washington and Beijing escalated, the U.S. Department of Commerce ruled Tuesday that importers of Chinese wooden cabinets and dressers would receive a guarantee of up to 229% in response to a petition filed earlier this year by the American Cabinet Alliance.
In their petition, U.S. cabinet traders accused Chinese cabinets worth about $4.4 billion in imports of dumping more than 200% over the years, resulting in losses of at least $2 billion.
Tim Brightbill, a trade lawyer representing the industry from Wiley Rein LLP, Washington, said in March that Chinese exporters receive double-digit subsidies based on the number of schemes to support their domestic industries, including land discounts, electricity, raw materials, grants, discounted loans and export incentives.
“Today’s ruling provides hope for the U.S. kitchen cabinet industry to fight against China’s unfair trade practices.” Tephen wellborn, director of product and research development at Wellborn Cabinet, a member of the industry alliance, said in an e-mail statement.
According to the Ministry of Commerce statement, the deposit will be collected from Henan Ediga Furniture Co., Ltd. and Deway International Trade Co., Ltd., both of which were found to receive 229% of the subsidy. Other Chinese manufacturers will be charged a margin of 11% to 22%.
According to the government statement, the Ministry of Commerce will issue a final decision in December. ITC of the U.S. International Trade Commission is expected to make a final decision on whether to approve the countervailing duty on January 30 next year.
A delegation of cabinet importers expected ITC to overturn the decision, saying that companies suing would not be able to increase employment in the United States if countervailing duties were established.
“Many of the companies that filed the case imported their own products from China. If they imposed tariffs on imports, they would not bring their work back to the United States, but would transfer more production to supply chains already established in Vietnam and Mexico.” “We believe that the government will make sure that the petitioners will not be damaged by the ready-made assembly cabinets imported from China,” the Federation of American Cabinet Distributors said in a statement.
The US and China Economic and trade frictions have recently escalated. President trump announced a 10% tariff on Chinese goods worth about $300 billion last week. Beijing has vowed to fight back. As for the previous anti-dumping and anti-subsidy “double-anti” investigations launched by the US side on Chinese imports, the Ministry of Commerce of China has repeatedly expressed the hope that the US government will abide by its commitment to oppose trade protectionism and jointly safeguard a free, open and fair international trading environment so as to properly handle trade frictions in a more rational way.