Commerce issues affirmative preliminary determination in CVD investigation of wooden cabinets and vanities.

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The U.S. Department of Commerce has issued affirmative preliminary determination CVD investigation of wooden cabinets and vanities from China, finding that exporters received countervailable subsidies ranging from 10.97 to 229.24 percent.
As such, Commerce will instruct CBP to start collecting cash deposits from importers of wooden cabinets and vanities from China. Last year, imports of wooden cabinets and vanities from China were valued at an estimated $4.4 billion. The final CVD determination is expected to be on or about December 17, 2019. A final injury determination will then be announced on January 30, 2020.
The announcement and preliminary rates can be found here.
If you have any questions about importing wooden cabinets and vanities, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

US China Trade War impact – small Ellisville cabinet firm braces for impact of trade war.

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According to the St. Louis Post-Dispatch, a small cabinet firm in Ellisville maybe one of the victims of the ongoing trade war between the US and China. The article introduces the reader to Joe Knichel, owner of the St. Louis Cabinet Warehouse in Ellisville. He installs cabinets and frequently buys ready-to-assemble (RTA) cabinet kits from a supplier that includes doors, drawers, partitions, and hardware. Joe says the main benefit of buying an RTA kit is the time frame to complete, 2 weeks versus 4 weeks for made to order cabinets. However, in April, the U.S. International Trade commission issued a preliminary ruling that American cabinet manufacturers had been injured by Chinese imports — including imports of the kits that Knichel relies upon.

The final ruling, expected in a few months, can see tariffs added to cabinets as high as 348 percent, an amount that Joe says would likely put him out of business.

The investigation into cabinets isn’t alone – the ITC has also initiated investigations of anti-dumping on over 24 other Chinese products – such as ceramic tile and crawfish tail meat.

Joe’s example is likely just one of many examples of small businesses who rely on relatively cheap imports from China for their business. We’ll likely see a greater impact in a few months as the current inventory imported without 25% 301 duties runs out, and future imports subject to 301 duties appear on the shelves.

If you have any questions about how antidumping will impact your business, contact experienced trade attorney David Hsu by call/text: 832-896-6288 or by email at attorney.dave@yahoo.com.