On March 27, 2019, the Department of Commerce (DOC) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of wooden cabinets and vanities and components thereof from the People’s Republic of China.
Dumping occurs when a foreign company sells a product in the United States at less than its fair value, while countervailable subsidies are financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.
MERCHANDISE SCOPE OF INVESTIGATIONS:
- wooden cabinets and vanities that are for permanent installation (including floor mounted, wall mounted, ceiling hung or by attachment of plumbing) which are made substantially of wood products, including solid wood and engineered wood products, or bamboo.
- components of wooden cabinets & vanities, including the following:
- frames
- boxes (which typically include a top, bottom, sides, back, base blockers, end panels, stretcher rails, toe kicks, and/or shelves)
- doors
- drawers & drawer components
- back panels & end panels
- desk, shelves, and tables that are attached to or incorporated in the subject merchandise
- ready-to-assemble (RTA) “flat packs”, except to the extent that the merchandise is already covered by the AD/CVD orders for hardwood plywood from China. RTA cabinets & vanities typically include all components and hardware required for assembly and may enter the US in one or multiple packages.
- wooden cabinets & vanities and in-scope components that have been further processed in a third country, including but not limited to 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 merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.
The affected tariff codes include 9403.40.9060, 9403.60.8081, and 9403.90.7080.*
If the International Trade Commission (ITC) determines that there is a reasonable indication that these items from China materially injure, or threaten material injury to, the domestic industry in the United States, the investigations will continue, and DOC will be scheduled to announce its preliminary CVD determination on May 31, 2019, and preliminary AD determination on August 14, 2019, although these dates may be extended.
If the ITC’s determinations are negative, the investigations will be terminated.
* The HTSUS subheadings are provided for convenience and Customs purposes only. The written description of the scope of these investigations is dispositive.
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