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Concern! U.S. May Reduce Tariffs On Chinese Cabinets, Bathroom Cabinets

Kitchen And Bathroom Industry Mainstream Media Kitchen And Bathroom Information

The U.S. government said on April 6 that the Commerce Department is currently conducting an annual review of the import tariffs faced by Chinese-made wooden cabinets and bathroom cabinets.

In the context of the U.S.-China trade conflict, plus Chinese-made wooden cabinets and bathroom cabinets are subject to high anti-dumping and countervailing duties, this meeting has become a focus of attention.

 

Overturning Trump’s policy, U.S. Commerce Department reconsiders tariffs

The U.S. Department of Commerce said that by the end of this month, Chinese manufacturers can submit the corresponding information as a company, if the information submitted can prove that the company exports to the United States of wooden cabinets, bathroom cabinets and there is no dumping, subsidies and other acts, then the manufacturer originally faced tariffs, can be reduced or withdrawn.

Documents from the U.S. Department of Commerce show that this review is retroactive, and if the Chinese manufacturers pass this review, the Commerce Department will adjust the tariffs for these manufacturers based on the actual situation: the retroactive period is October 9, 2019 to March 21, 2021.

The additional tariffs, as previously envisioned by Trump and local manufacturers, will deter U.S. importers and retailers from importing related products from China. 2020 Kitchen & Bathroom News published “Final Ruling Passed Unanimously, U.S. Imposes Over 250% Anti-Dumping Countervailing Duty on China Bathroom Cabinets, Cabinets”, stating that on March 25, 2020, the U.S. International Trade Commission USITC announced a 5:0 unanimous vote The final ruling adopted shows that anti-dumping duties and countervailing duties will be imposed on bathroom cabinets and cupboards imported from China. The anti-dumping duty is up to 262.18% and the cash deposit rate is 251.64%; the countervailing duty is up to 293.45%.

However, in reality, U.S. importers and retailers are deeply tied to Chinese manufacturers. Under the pressure of tariffs, the additional costs faced by Chinese-made wooden cabinets and bathroom cabinets are largely absorbed by consumers, Chinese manufacturers, and U.S. importers and retailers.

 

Event Review

On March 6, 2019, the American Kitchen Cabinet Alliance (AKCA) filed a complaint requesting the federal Department of Commerce and the U.S. International Trade Commission (ITC) to initiate a double-reverse investigation of the above-mentioned imports from China on the grounds that manufacturers of Chinese products receive illegal government subsidies and are unfairly priced to constitute dumping in the U.S. market that The losses to the U.S. manufacturing industry of the same type range from $2 billion to $4 billion.

On March 27, 2019, the U.S. Department of Commerce announced the initiation of an anti-dumping and countervailing investigation into Chinese imports of wooden cabinets and bathroom cabinets to determine whether the aforementioned products were dumped into the U.S. market.

On August 6, 2019, the U.S. Department of Commerce made a preliminary determination and announced that countervailing duties were imposed on imports of $4.4 billion (approximately RMB 31 billion) worth of Chinese cabinets at a rate of up to 229.24%. The U.S. Customs and Border Protection was required to collect cash deposits from Chinese importers of wooden cabinets and vanities based on the determined subsidy rate. In early October 2019, the U.S. Department of Commerce announced the results of the preliminary determination of the anti-dumping investigation into Chinese cabinet and bathroom cabinet products.

The American Cabinet Alliance claimed that from January 2016 to January 2018, U.S. imports of wooden cabinets and bathroom cabinets from China increased by 19.9 percent, and that the amount of cabinet and bathroom cabinet products imported from China accounted for 50 percent of total imports, and that low-priced sales of Chinese cabinets resulted in a loss of $116 million to the U.S. cabinet industry between 2016 and 2018.

This is one of the largest U.S. trade cases filed against China in history.

In 2020, the U.S. Department of Commerce officially announced the results of the final anti-dumping tariff rates for wooden cabinets and bathroom cabinets products from China: Jiangsu Hongjia Wood Industry Co., Dalian Mason Woodworking Co., Ltd. and Rizhao Fu Kai Wood Industry Co., Ltd. were mandatory respondents, with final anti-dumping tariff rates of 4.37%, 262.18% and 101.46%, respectively, and cash deposit rates of 0%, 251.64% and 90.92%. The final anti-dumping duty rate for enterprises qualified for individual duty rate is 48.5%, and the cash deposit rate is 37.96%; the final anti-dumping duty rate for Chinese enterprises not qualified for individual duty rate is 262.18%, and the cash deposit rate is 251.64%.

 

Anti-dumping duty

Exporters Final anti-dumping duty Cash deposit rate Final Anti-Dumping Duty Cash Deposit Rate
Jiangsu Hongjia Wood Industry Co. 4.37% 0% 4.37% 0%
Dalian Mason Wood Industry Co. 262.18% 251.64% 262.18% 251.64%
Fukay Global Co. 101.46% 90.92% 101.46% 90.92%
Separate tax rate qualified enterprises 48.5% 37.96% 48.5% 37.96%
Chinese enterprises not qualified for individual tariff rate 262.18% 251.64%

According to the United States of America on China’s wooden cabinets and bathroom cabinets products countervailing final tariff rate results: Jiangsu Hongjia Wood Industry Co., Ltd, Dalian Mason Woodworking Co., Ltd, Rizhao Fu Kai Wood Industry Co., Ltd, Henan Province, Aidijia Furniture Co., Ltd, Dewei International Trade Co., Ltd. for mandatory respondent enterprises, the final anti-dumping tariff rate of 13.33%, 18.27%, 31.18%, 293.45%, 293.45%, 293.45%. 293.45%, other enterprises countervailing final duty rate of 20.93%.

 

Countervailing Duty

Enterprise Countervailing Duty
Jiangsu Hongjia Wood Industry Co. 13.33%
Dalian Mason Wood Industry Co. 18.27%
Rizhao Fukai Wood Industry Co. 31.18%
Henan Province Adijia Furniture Co. 293.45%
Dewey International Trade Co. 293.45%
Other enterprises 20.93%

 

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