News
Print PDF

Professionals

Practice Areas

Tool Chests from China and Vietnam Subject of New AD/CV Petition

Wednesday, April 12, 2017

A petition filed April 11 alleges that metal tool chests and tool cabinets with drawers from China and Vietnam are being sold at less than fair value in the U.S. market and that such goods from China are benefitting from countervailable subsidies. The petition alleges dumping margins of 167.5 percent for China and 58.2 percent for Vietnam.

The petition covers all metal tool chests and cabinets, including top chests, intermediate chests, tool cabinets and side cabinets, storage units, mobile work benches, and work stations, that are prepacked for retail sale and have the following characteristics: a body made of carbon, alloy, or stainless steel and/or other metals; two or more drawers for storage in each individual unit; a width (side to side) exceeding 21 inches but not exceeding 60 inches; and a drawer depth (front to back) exceeding 10 inches but not exceeding 24 inches.

The petition includes tool chests and cabinets produced in China or Vietnam that are either (a) assembled, prepackaged for sale, or subject to other minor processing in a third country prior to importation or (b) assembled, prepackaged for sale, or subject to other minor processing after importation.

Subject tool chests and cabinets may have doors and shelves in addition to drawers, may have handles (typically mounted on the sides), and may have a work surface on the top. They may be uncoated, painted, powder coated, galvanized, or otherwise coated for corrosion protection or aesthetic appearance. They may be shipped, packaged, or sold as individual units or in sets.

Subject tool chests and cabinets enter the U.S. under HTSUS 9403.20.0030 but may also enter under HTSUS 9403.20.0026 and 7326.90.3500.

Excluded from the scope of the petition are (1) tool boxes, chests, and cabinets with bodies made of plastic, carbon fiber, wood, or other non-metallic substances; (2) portable tool boxes, which have fewer than three drawers, a handle on the top that allows the tool box to be carried by hand, a width of 21 inches or less, and a depth not exceeding 10 inches; (3) industrial grade steel tool chests and cabinets; and (4) metal filing cabinets configured to hold hanging file folders.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.

For more information contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967 or David Craven at (312) 279-2844.

Customs & International Headlines