Wooden cabinets for export are at risk of being initiated an investigation against trade remedy tax evasion

Department Trade defense (Ministry of Industry and Trade) said that the US Department of Commerce (DOC) will initiate an investigation against trade remedy tax evasion on Vietnamese export wooden cabinets, which is expected at the end of May 2022.

Therefore, the Department has sent a notice to the Vietnam Timber and Forest Product Association warning the US to initiate an investigation against trade remedy tax evasion for wooden cabinets imported from Vietnam.

According to the Trade Remedies Department, on April 27, 2022, the Department received information that the DOC had received an application to investigate the scope of products (Scope Ruling) and combat trade remedy tax evasion (Anti-circumvention). ) with wooden cabinets imported from Vietnam and Malaysia.

Therefore, the product that is proposed to be investigated against trade remedies tax evasion is a wooden cabinet with HS codes 9403.40.9060, 9403.60.8081, 8403.90.7080; filing date is April 22, 2022; The plaintiff is the American Kitchen Cabinet Alliance representing a number of US wood cabinet manufacturers.

Previously, in February 2020, the United States issued an order to impose anti-dumping and anti-subsidy duties on the same products originating from China with the anti-dumping tax rate from 4.37%. to 262.18%, the anti-subsidy tax rate is from 13.33% to 293.45%.

According to the allegation, in the current case, the plaintiff requested the US Department of Commerce (DOC) to initiate an investigation of two issues. Specifically, in terms of product scope (Scope Ruling), the plaintiff proposed to expand the current tax order with China to both wooden cabinets assembled in Vietnam and exported to the United States.

Regarding anti-circumvention, in case the US Department of Commerce concludes not to expand the product range, the plaintiff proposes an investigation against trade remedy tax evasion with wooden cabinets. imported from Vietnam.

Plaintiff alleges that Vietnamese manufacturers/exporters who have imported cabinets/cabinet parts from China are subject to trade remedies tax, then fully assembled in Vietnam and exported to the United States. Ky.

The Trade Remedies Administration said that in the period of 2019-2021, after the United States imposed tariffs on China, imports of products subject to investigation from China into the United States decreased by 54% (from 2.5 to 5 percent). 1.6 billion USD), while exports from Vietnam to the US increased by more than 130% (from 1.37 to 2.7 billion USD). Especially, the volume of imports from China into Vietnam also increased nearly 4 times (from 232 million to 810 million USD).

It is expected that at the end of May 2022, the DOC will decide to initiate an investigation, so the Trade Remedies Department requests the Vietnam Timber and Forest Products Association to notify its member businesses and related associations that have business activities, manufactures wooden cabinets for export to the United States for information and prepares to respond to the incident.

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