On August 6, 2019, the preliminary countervailing duty determination was issued by the U.S. Department of Commerce. In the landmark countervailing duty (CVD) investigation, rules that Chinese cabinet and vanity exporters received trade subsidies ranging from 10.97% to 229.24%.

The Commerce Dept. decision stems from an unfair-trade petition filed in March by the American Kitchen Cabinet Association (AKCA). The 50-member coalition that has charged that, as a result of unfair Chinese trade practices in cabinet manufacturing and exporting, imports of illegally subsidized and dumped Chinese-made kitchen wooden cabinets, vanities, and components, sold at lower than market value, have risen sharply in recent years and are undermining the businesses of U.S. firms.

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“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 a positive determination for the American people.” – Stephen Wellborn

The ITC had determined, before last week’s Commerce Dept. ruling, that there is “a reasonable indication” that the U.S. cabinet industry “is materially injured” by imports of Chinese cabinets and vanities allegedly sold in the U.S. at less-than-fair market value.

Last week’s Commerce Dept. 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 for Wellborn Cabinet.

The U.S. Department of Commerce and U.S. International Trade Commission Timeline:

  • March 6, 2019 – AKCA files Antidumping Duty (AD) and Countervailing Duty (CVD) petitions with the ITC and the DOC.
  • March 27, 2019 – DOC initiates investigation.
  • August 5, 2019 – DOC CVD Preliminary Determination.
  • October 2, 2019 – DOC AD Preliminary (estimated).
  • February 14, 2020 – DOC’s AD and CVD Final Determinations announced and public hearing in the ITC Final Injury Investigation in Washington (estimated).
  • March 25, 2020 – ITC Final Investigation Injury Determination vote (estimated).
  • April 22, 2020 – AD/CVD Order issued if ITC’s FInal Injury Determinations are affirmative (estimated).