Vertical Metal Filing Cabinets Subject Of Anti-Dumping & Countervailing Duty Investigation


By Pacific Customs Brokers, Pacific Customs Brokers 2019-05-10

The United States International Trade Commission (USITC), is currently investigating ceramic tile manufactured in China for possible anti-dumping (AD) and countervailing duty (CVD) measures.

U.S. China Anti-Dumping & Countervailing Background

On April 30, 2019 the Department of Commerce (DOC), received a petition alleging the Government of China is providing Countervailable subsidies to producers of vertical metal filing cabinets in China, which allows them to sell the goods into the United States at a price which our domestic industry can not compete. In addition to the allegations cited in the petition for countervailing, the petitioners also included a petition for anti-dumping duties. The DOC determined it was likely injury to domestic industry did exist and forwarded the case to the USITC for investigation.

Scope Of The Investigation

The scope of the investigation includes the vertical metal filing cabinets classified in subheading 9403.10.00.

How Will This Affect Your Imports

If the Commission finds that the allegations of countervailing and anti-dumping exist they will issue a preliminary decision and establish a rate for both AD and CVD. Once the preliminary case is established entries must be entered with payment of AD/CV duties. Paying of additional duty is only one aspect of the changes you will see on your entries.

Entering goods that are subject to AD/CVD, are considered high risk as it takes several years for the entries to finalize. The preliminary rate of AD/CVD paid at the time of entry could increase once the International Trade Commission completes their investigation, which would result in an increased duty bill that the Importer of Record (IOR) must pay. In order to protect themselves, the surety company that secures your continuous bond will ask for 100% collateral, in the form of a Letter of Credit (LOC) or Cash Deposit, for bonds that cover entries subject to AD/CVD duties. The surety company will keep the collateral on file until the entries for bond cycle finalize.

What Are The Alleged Dumping Margins?

The alleged average dumping margins are between 120.48% to 196.79%.

Important Dates

April 30, 2019

DOC receives petitions from Coalition for Fair Trade in Ceramic Tile

June 14, 2019

USITC must reach a preliminary determination on whether AD/CVD exists

June 21, 2019

USITC must transmit their findings to the DOC

Your Best Course Of Action

Speak to a Trade Advisor today about alternative sourcing, valuation and tariff options that could result in a lower landed cost by contacting us at [email protected] today. As well as assistance making the necessary adjustments in regards to your Continuous Transaction Bond.


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