Tiếng Việt
中文 (中国)
The US Department of Commerce (DOC) recently announced the receipt of an application for an investigation against trade remedy duty evasion with wooden cabinets including kitchen cabinets and bathroom cabinets originating from Vietnam and Malaysia.
The case originates from April 2020. Accordingly, at this time, the United States has made a decision to issue an order to impose anti-dumping and anti-subsidy duties on the same product originating from China with the anti-dumping duty rate from 4.37% to 262.18%, the anti-subsidy duty rate from 13.33% to 293.45%.
According to preliminary data from the United States International Trade Commission (USITC), in 2021, the export value of Vietnam’s products subject to investigation to the United States will reach about $2.7 billion.
In contrast, in the period 2019 to 2021, after the US imposed duties on China, the number of imported products subject to investigation from China into the US decreased by 54% (from 2.5 to 1.6 billion USD), while exports from Vietnam to the US increased by more than 130% (from 1.37 to 2.7 billion USD).
The export turnover of wood and wood products to the US market in 2021 is estimated at 8.8 billion USD, up 22.4% compared to 2020. Wooden furniture is the main export item with the proportion accounting for 87.6% of total turnover for the whole year, followed by the living room, dining room, and bedroom furniture.
Application for investigation against trade remedy duty evasion with wooden cabinets including kitchen cabinets and bathroom cabinets originating from Vietnam
The plaintiff of the case is the American Kitchen Cabinet Alliance, which represents a number of US wood cabinet manufacturers, including kitchen and bathroom cabinets. The alleged products are wooden cabinets (kitchen cabinets and bathroom cabinets) with HS codes 9403.40.9060, 9403.60.8081, and 8403.90.7080.
Accordingly, the plaintiff originally asked the DOC to extend the current duty order against China to wooden cabinets assembled in Vietnam and exported to the US. In case the DOC makes a decision not to expand the scope ruling, the plaintiff requests an investigation against trade remedy duty evasion with respect to wooden cabinets imported from Vietnam.
Based on the application, the plaintiff has made allegations that Vietnamese manufacturers/exporters have imported cabinets or cabinet parts from China – the country that were subject to trade remedy duty. After which, the parts are fully assembled in Vietnam and exported to the US – a typical measure to avoid trade duty.
According to information received by the Trade Remedies Department, the time limit for the DOC to consider the petition is 30 days. It is expected that by the end of May 2022, the DOC will make a decision to initiate an investigation.
If a case is initiated, a final conclusion will normally be issued within 300 days of initiation.
In order to help businesses producing/exporting wooden cabinets in Vietnam that are under investigation, the Trade Remedies Department recommends that stakeholders actively review their export activities and research the regulations, orders, and procedures for trade remedy duty evasion investigation conducted by the United States.
Throughout the investigation process, stakeholders need to actively cooperate, ensure close coordination with the investigating agency throughout the process of the case to receive timely support, and ensure legitimate rights and interests of the business.
The application for the investigation can be downloaded Here.
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
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