The US investigates against evasion of trade defense of wooden cabinets and vanities in Vietnam

According to the Trade Remedies Administration (Ministry of Industry and Trade), the US Customs and Border Protection (CBP) has initiated an investigation to combat evasion of the obligation to pay trade remedy taxes and apply temporary measures to wooden cabinet products imported from a number of companies in Vietnam.

The products under investigation in this case are wooden cabinets and vanities, which have been included in the widely announced warning list of products by the Trade Remedies Administration of products at risk of being subject to trade remedy and anti-tax evasion investigations from April 2020.

The plaintiff in this case is the American Kitchen Cabinets Alliance (AKCA).

The investigation against evasion of trade defense of wooden cabinets and vanities in Vietnam

The plaintiff alleges that BGI Group Inc. dba U.S. Cabinet Depot (“BGI”) is implementing the practice of avoiding/evading anti-dumping/anti-subsidy tax that the United States is applying to Chinese wooden furniture products through the transfer of this product from Vietnam.

The relevant Vietnamese company is HOCA Kitchen and Bath Products International Co., Ltd. (“HOCA Vietnam”) and HOCA Household House Hygiene Co. Ltd. (Vietnam).

Previously, the US Department of Commerce officially imposed tariffs on this Chinese product from February 2020 with anti-dumping duties ranging from 4.37% to 262.18%; anti-subsidy tax rates from 13.33% to 293.45%.

After initiating the investigation and preliminary review, CPB also applied temporary measures to this item imported by BGI Company from Vietnam. The case is still under investigation.

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