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U.S. Dept of Commerce Rules that Wooden Cabinets & Vanities Injure U.S. Industry

To our valued clients, business partners, families, and friends:

In these tumultuous times, it’s even more important to remain vigilant about industry updates in the midst of the global pandemic. Today, the United States International Trade Commission (USITC) determined that the U.S. industry is injured as a result of wooden cabinets and vanities imported from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and then sold in the U.S. at less than market value.

The Commission’s public report Wooden Cabinets and Vanities from China (Inv. Nos. 701-TA-620 and 731-TA-1445 (Final), USITC Publication 5042, April 2020) will contain the views of the Commission and information developed during the investigations.

The report will be available by April 27, 2020; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

As a result, Commerce will issue antidumping and countervailing duty orders on imports of these products in China.

These findings have the potential to have tremendous repercussions on our industry, and we will be closely monitoring the situation to provide you with relevant information you need to stay informed. In the meantime, don’t hesitate to contact us for any reason. We’re in this together.

 

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Wooden Cabinets and Vanities from China
Investigation Nos. 701-TA-620 and 731-TA-1445 (Final)

Product Description:  Wooden cabinets and vanities (“WCVs”) are wood‐constructed products used for permanently installed cabinetry that are usually found in the kitchen (in the case of cabinets) or the bathroom (in the case of vanities). WCVs have physical characteristics applicable to the intended use for storage and easy access of various household items. WCVs may be sold in a fully assembled form, where the product is ready for installation, or in a “flat pack” or “ready to assemble” (“RTA”) form, which contains most or all of the items required to assemble a cabinet or vanity into its completed form. WCVs are manufactured wholly or in part from wood products, including natural wood and engineered wood products. In addition to the wood components, these products may contain certain quantities of non‐wood material such as glass, vinyl, plastics, and metal.

Status of Proceedings:

  1. Type of investigation:  Final phase antidumping duty and countervailing duty investigations.
  2. Petitioners:  American Kitchen Cabinet Alliance, Reston, VA.
  3. USITC Institution Date:  Wednesday, March 6, 2019.
  4. USITC Hearing Date:  Thursday, February 20, 2020.
  5. USITC Vote Date:  Tuesday, March 24, 2020.
  6. USITC Notification to Commerce Date:  Monday, April 6, 2020.

U.S. Industry in 2018:

  1. Number of U.S. producers:  49.
  2. Location of producers’ plants:  Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Missouri, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.
  3. Production and related workers:  35,459.
  4. U.S. producers’ U.S. shipments:  $7.2 billion.
  5. Apparent U.S. consumption:  1
  6. Ratio of subject imports to apparent U.S. consumption:  1

U.S. Imports in 2018:

  1. Subject imports:  [1]
  2. Nonsubject imports:  1
  3. Leading import sources:  China.

California Orders Residents To Stay Home

Today, California State Public Health Officer & Director of the California Department of Health ordered all individuals living in the State of California to stay home or at their place of residence, except as needed to maintain continuity of operation of the federal critical infrastructure sectors.
This goes into effect on Thursday, March 19, 2020. The order is in place until further notice.
Essential services will remain open such as:
  1. Gas stations
  2. Pharmacies
  3. Food: Grocery stores, farmer’s markets, food banks, convenience stores, take-out, delivery restaurants
  4. Banks, laundromats/laundry services
Essential state and local government functions will also remain open, including law enforcement and offices that provide government programs and services.
Establishments that are closed include:
  1. Dine-in restaurants
  2. Bars and nightclubs
  3. Entertainment venues
  4. Gyms and fitness studios
  5. Public events and gatherings
  6. Convention Centers
This is in effect throughout the State of California.
The full order can be read here.

AD/CVD Petition Filed: May Impact Imports on Wood Moldings and Millwork Products from Brazil and China

As you know, we are committed to keeping you informed about important news and announcements. As such, we want to make you aware of an antidumping /countervailing duties (AD/CVD) petition filed January 8, 2020, by U.S. producers. The petition addresses imports from Brazil and China which can result in AD/CVD duties on merchandise identified in the scope of the petition imported from those countries to the U.S.
The petition is seeking AD/CVD to be placed on wood moldings and millwork products from Brazil and China (the full scope of merchandise affected can be found in the petition, listed below). As a result, the U.S. International Trade Commission and U.S. Department of Commerce will begin an investigation to determine if the industry in the U.S. is affected, and whether or not Brazilian and Chinese imports are unfairly traded – meaning, priced below normal market value or unfairly subsidized.
The full description of the products from Brazil and China covered by the petition is found in pages 4-6 of Part 1.
Read the entire petition here: