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US Imposes Anti-dumping Duties On Chinese Kitchen Cabinets

chinesekitchencabinets-oct04-lt.jpg

The U.S. Department of Commerce decided to impose anti-dumping duties on wooden cabinets and vanities imported from China to level the playing field for American manufacturers.

Announcing an affirmative preliminary determination in the antidumping duty investigation, the Commerce Department said it found that exporters from China have dumped wooden cabinets in the United States worth $4.4 billion in 2018.

Preliminary duties range from 4.49 percent to 262.18 percent, with most Chinese producers facing duties of 39.25 percent.

Chinese exporters have been hit with additional duties because they are dumping, or sells an imported product in the American market at less than fair value.

As per U.S. trade law, 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.

The investigation was conducted on the basis of a petition filed by the American Kitchen Cabinet Alliance against three Chinese firms.

The Commerce Department assigned a preliminary dumping rate of 4.49 percent on the Ancientree Cabinet Co., Ltd., 262.18 percent on Dalian Meisen Woodworking Co., Ltd., and 80.96 percent on Rizhao Foremost Woodwork Manufacturing Company Ltd.

The department fixed a preliminary dumping margin of 39.25 percent for the non-selected respondents eligible for a separate rate, and a preliminary dumping margin of 262.18 percent for all other Chinese producers and exporters.

As a result of the preliminary decision, U.S. Customs and Border Protection (CBP) will levy cash deposits from importers of wooden cabinets and vanities and its components from China based on these preliminary rates.

These antidumping duties are in addition to countervailing duties averaging 16 percent, and Section 301 duties of 25 percent, which were imposed earlier.

Commerce is scheduled to announce its final determination in this investigation in February next year.

"Today's determination allows the American kitchen cabinet industry to keep fighting against the unfairness of China's trade practices," said Mark Trexler, President and CEO at AKCA member Master WoodCraft.

The AKCA, comprised of more than 50 U.S. companies, initiated a case challenging China's manipulation and unfair trade practices in the wooden cabinet and vanity production industry in March.

It was one of the largest trade cases ever filed against Chinese imports at the International Trade Commission and the Department of Commerce.

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