New AD/CV Duties Possible on Wooden Cabinets and Vanities from China
A petition filed March 6 alleges that wooden cabinets and vanities from China are being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged average dumping margins are 175.50 percent to 259.99 percent.
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The goods covered by this petition are cabinets and vanities made substantially of wood products, including solid wood and engineered wood products (including those made from wood particles, fibers, or other wooden materials such as plywood, strand board, block board, particle board, or fiberboard), or bamboo. They include wooden cabinets and vanities with or without wood veneers; wood, paper, or other overlays; or laminates; with or without non-wood components or trim such as metal, marble, glass, plastic, or other resins; whether or not surface finished or unfinished; and whether or not assembled or completed.
These items serve the purpose and function of permanently affixed cabinetry typically found throughout the home, including kitchen and bath cabinetry, modular vanities, and pedestal vanities (which may or may not include a top composed of stone, plastic, or other material). However, the petition also covers wooden cabinets and vanities used in places other than in a home kitchen or bathroom, including laundry room cabinets, closets, permanently affixed home office cabinets, and kitchen and bathroom cabinetry found in commercial buildings, apartments, hotels, assisted living or healthcare facilities, or other environments.
The petition also covers component parts of cabinets and vanities, including frames; boxes (which typically include a top, bottom, sides, back, base blockers, ends/end panels, stretcher rails, toe kicks, and/or shelves); doors; drawers and drawer components (which typically include sides, backs, bottoms, and faces); back panels and end panels; and desks, shelves, and tables attached to or incorporated in the subject goods.
Also included are wooden cabinets and vanities and in-scope components that have been further processed in a third country, including one or more of the following: trimming, cutting, notching, punching, drilling, painting, staining, finishing, assembly, or any other processing that would not otherwise remove the goods from the scope of the investigation if performed in the country of manufacture of the in-scope product.
Imports of subject goods are classified under HTSUS 9403.40.9060 and 9403.60.8081, and the subject component parts may be entered under HTSUS 9403.90.7080.
The following good are excluded if entered separate from a wooden cabinet or vanity.
- aftermarket accessory items that may be added to or installed into an interior of a cabinet and that are not considered a structural or core component (e.g., inserts (including those that rotate internally) and dividers)
- carved wooden accessories, including corbels and rosettes, that serve the primary purpose of decoration and personalization
- non-wooden cabinet hardware components including metal hinges, brackets, catches, locks, drawer slides, fasteners (nails, screws, tacks, staples), handles, and knobs
Also excluded are all products covered by the scope of the AD duty orders on wooden bedroom furniture from China and hardwood plywood products from China.
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on these products. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis & Rosenberg as soon as possible.
For more information contact Kristen Smith at (202) 730-4965.