On Tuesday, August 6, 2019, the U.S. Department of Commerce made a final determination, in favor of the domestic furniture industry, finding China responsible for providing a subsidy of up to 229% to manufacturers of wooden cabinets and vanities.
The petition, originally filed back in March by the American Kitchen Cabinet Alliance, claimed China was illegally dumping wooden cabinets and vanities into the U.S. market by providing triple-digit subsidies in the form of discounted land, electricity, raw materials, grants, discounted loans and export incentives. The United States imported $4.4 billion of the products from China in 2018, and domestic producers fear the cheap, subsidized imports could risk the loss of over 250,000 American jobs.
The Department of Commerce will issue its final determination in December, while the U.S. International Trade Commission’s is due no later than January 30, 2020.
In the meantime, the Department of Commerce has requested for U.S. Customs and Border Protection (CBP) to begin collecting cash deposits based on the following preliminary determination:
- Henan AiDiJia Furniture Co. – 229%
- Deway International Trade Co. – 229%
- Rizhao Foremost Woodwork Manufacturing Co. – 22%
- Ancientree Cabinet Co. – 11%
- Dalian Meisen – 16%
- All other Chinese producers – 16%
- (not selected for individual review)
“Today’s determination gives the American kitchen cabinet industry the hope it needs in our fight against China’s unfair trade practices,” said Stephen Wellborn, Director of Product and Research Development, Wellborn Cabinet, members of the American Kitchen Cabinet Alliance. “Americans deserve to know that we are on their side, fighting for their right to a job that has spanned generations with a true American tradition of ‘Made in the USA’ cabinetry. With over 250,000 American jobs on the line, this is an overall positive determination for the American people, and I thank the Commerce Department for their decision.”
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