US Hits Jiangsu Company With Countervailing Duties For Subsidies

 

Via nydailynews.com

WASHINGTON (Reuters) – The U.S. Commerce Department said on Tuesday it had made a preliminary finding that imports of tool chests and cabinets from China are subsidized, and it imposed countervailing duties ranging from 17.32 percent to 32.07 percent.

The case follows a petition from Missouri-based Waterloo Industries Inc, a subsidiary of Fortune Brands and Home Security Inc that says it accounts for more than half of domestic production.

In 2016, imports of tool chests from China totaled $990 million.

“The subsidization of goods by foreign governments is something the Trump administration takes very seriously,” Commerce Secretary Wilbur Ross said in a statement announcing the decision.

“The Department of Commerce will continue to stand up for American workers and businesses in order to ensure that China does not take advantage of the most open market in the world,” Ross said.

In a separate statement, the department said it calculated a preliminary countervailing duty rate of 17.32 percent for Jiangsu Tongrun Equipment Technology Co Ltd <002150.SZ> and of 32.07 percent for Zhongshan Geelong Manufacturing Co Ltd.

All other producers/exporters in China were assigned a preliminary subsidy rate of 27.13 percent, it said.

The department said it would announce its final countervailing duty decision on or about Nov. 23.

If the Commerce Department finds the products are being dumped and/or subsidized, it will set duties that would go into place if the International Trade Commission subsequently affirms its finding that U.S. producers are being harmed.

Dumping margins on the products from China are alleged to be 159.99 percent, the department said in May.

Tool chests typically have bodies made of carbon, alloy, and/or stainless steel and may include drawers, trim, or other components made of other metal or non-metal materials, it said.

Under President Donald Trump’s administration, from Jan. 20 through Sept. 11 this year, the department has initiated 62 antidumping and countervailing duty investigations, up 41 percent from the same period a year earlier, the statement said.

(Reporting by Eric Walsh; Editing by Jonathan Oatis and Diane Craft)

(c) Copyright Thomson Reuters 2017. Click For Restrictions

 

 

 

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