Posted at 2:00 PM
Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative final determination in the countervailing duty (CVD) investigation of imports of tool chests and cabinets from the People’s Republic of China (China).
“The unfair government subsidization of products is something the Department takes very seriously,” said Secretary Ross. “We will continue to take action on behalf of U.S. industry to defend American companies, their workers, and our communities adversely impacted by unfair imports.”
The Commerce Department determined that China is providing unfair subsidies to its producers of tool chests and cabinets at rates from 14.03 to 95.96 percent.
As a result of this decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of tool chests and cabinets from China based on these final rates.
In 2016, imports of tool chests and cabinets from China were valued at an estimated $230 million.
The petitioner is Waterloo Industries, Inc. (Waterloo). Waterloo manufactures tool chests at its production facility in Sedalia, Missouri.
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through November 28, 2017, Commerce has initiated 77 antidumping and countervailing duty investigations – a 61 percent increase from 48 in the previous year.
The CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. Commerce currently maintains 412 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade. CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States.
The U.S. International Trade Commission (ITC) is conducting an investigation to determine whether or not the domestic industry is harmed by imports of certain tool chests and cabinets from China. The ITC is currently scheduled to make its final injury determination on or before January 8, 2018.
If the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If the ITC makes negative final determination of injury, the investigation will be terminated and no order will be issued.
Click HERE for a fact sheet on today’s decision.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.
Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks, and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.