Earlier this week, the U.S. Department of Commerce issued the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of wooden cabinets and vanities and components thereof from China, finding that exporters received countervailable subsidies ranging from 10.97 to 229.24 percent.
Based on these preliminary rates, the Department of Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of wooden cabinets and vanities from China.
In 2018, imports of wooden cabinets and vanities from China were valued at an estimated $4.4 billion.
The petitioner is the American Kitchen Cabinet Alliance.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 179 new antidumping and countervailing duty investigations – this is a 231 percent increase from the comparable period in the previous administration.
Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 489 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Commerce is currently scheduled to announce its final CVD determination on or about December 17, 2019.
If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about January 30, 2020. If Commerce makes an affirmative final determination in this investigation, and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination, or the ITC makes a 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 law and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.