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Preliminary Countervailing Duties Issued on Chinese Kitchen Cabinet Imports

This week, the U.S. Department of Commerce issued a preliminary countervailing duty determination in the trade case brought by the American Kitchen Cabinet Alliance (AKCA) against Chinese imports of wood cabinets and vanities.  The Department preliminarily calculated subsidy rates between 10.97% and 21.78% for four specific Chinese producers, while all other participating manufacturers in the case are subject to 16.41% duties.  Companies that did not cooperate in the investigation will be subject to a rate of 229.24%. 

An estimated $4.4 billion in duties will now be collected as deposits by the U.S. Customs and Border Protection in anticipation of the Department and the U.S. International Trade Commission issuing final determinations by January 30, 2020.  As noted in AKCA’s press release, the preliminary margins likely reflect the final level of subsidies that will be in the final determination, however the final duty rate has not yet been calculated and will not be released until the investigation concludes in early 2020.  See AKCA Press Release and Bloomberg

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