On September 12th, the Commerce Department announced preliminary subsidy rates in its countervailing duty (“CVD”) investigation of certain tool chests and cabinets from China. The rates calculated for the two examined Chinese producers and most other Chinese producers/exporters range from 17.32 to 32.07 percent. See the Fact Sheet here.

In addition, thirty-one Chinese companies that failed to respond to Commerce’s initial inquiries received a “total” adverse rate of 112.99 percent. The scope of this investigation, which Commerce modified based on petitioner’s recommendations, covers certain metal tool chests and tool cabinets, with drawers, (tool chests and cabinets), from China. As a result of Commerce’s preliminary determination, imports of covered tool chests and cabinets from China that enter the United States will be subject to cash deposits consistent with the preliminary subsidy rates.

Previously, the International Trade Commission (“ITC”) unanimously determined on May 25th that there is a reasonable indication that a U.S. industry is materially injured by reason of unfairly traded imports of tool chests and cabinets from China that are allegedly subsidized and sold in the United States at less than fair value, and also by unfair imports from Vietnam that are allegedly sold in the United States at less than fair value.

Kelley Drye represents the petitioner, Waterloo Industries, in this case, and prepared and filed antidumping (“AD”) and CVD petitions at Commerce and the ITC on April 11th.

Commerce is scheduled to announce its preliminary determinations in the companion China antidumping investigation and Vietnam antidumping investigation on November 7th.