ITC votes 4-0 in favor of Chinese cabinetry tariff

In a unanimous vote on April 22nd, the International Trade Commission (ITC) voted in favor of the American Kitchen Cabinet Alliance’s (AKCA) trade case against the Chinese government alleged unfair trade practices in the importation and sale of Chinese-made cabinet in the United States.

What does this mean? The ITC ruling is one of several important steps in the process. The investigation will now proceed to the Department of Commerce, which will determine the extent to which Chinese cabinet and vanity imports are dumped by Chinese companies and subsidized by their government.

Commerce is expected to issue preliminary countervailing duty and antidumping duty determinations by May 2019 and August 2019, respectively. If Commerce also reaches affirmative preliminary determinations in these cases, provisional antidumping and countervailing duties will be collected from importers based on the preliminary margins calculated.

If the final ruling is in favor of the AKCA motion, the tariffs levied could be retroactive back to the date the claim was filed. As a result, we expect imported cabinets will be subject to large price increases across the board.

acpi is proud to endorse the American Kitchen Cabinet Alliance and this historic trade case. We will continue to keep you up-to-date on the latest news and developments regarding the case.


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Haven’t heard of the AKCA trade case? Keep reading to learn more about this important case and the potential ramifications on the American cabinetry industry.
FAST FACTS
  • Filed March 6, 2019 at the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce.
  • One of the largest trade cases ever filed.
RATIONALE
  • The lawsuit opposes unfair trade practices by the Chinese government.
  • The Chinese government subsidizes the production of cabinetry products.
  • Subsidized products are imported and sold in the American market far below fair market value.
  • AKCA’s goal is to protect a $9.5 billion American industry.
ORGANIZATION
  • The AKCA is a coalition of U.S. cabinetry companies and organizations that build and source their products in the United States, creating jobs and ensuring high standards of quality.
  • In a statement on their website, AKCA states, “China has manipulated global production and captured a large and growing portion of the market, manufacturing dumped and subsidized products and taking jobs away from hardworking Americans.”