Duty Penalty Imposed on Chinese Stainless-Steel Sinks

WASHINGTON – The cost of most stainless-steel sinks from China will go up, based on a U.S.-government trade decision today.

The Commerce Department announced that preliminary “countervailing” duties will be collected on “drawn” stainless-steel sinks imported from China, with rates ranging from 2.12% to almost 14%.

The rates result from petitions filed earlier this year by Elkay Manufacturing Co. of Oak Brook, Ill., seeking protection under anti-dumping laws. The action alleged that sinks were produced and sold below actual value, due to Chinese government subsidies.

The Commerce Department directed U.S. Customs and Border Protection (CBP) to require cash deposits on imported sinks at ports-of-entry. The rates correspond to Commerce determinations of subsidies given to Chinese producers and exporters.

Sinks from Zhongshan Superte Kitchenware Co. Ltd. of Zhongshan City (including units exported by Foshan Zhaosuhn Trade Co. Ltd.) are hit the hardest, with a 13.94% additional duty. Guangdong Yingao Kitchen Utensils Co. Ltd. of Foshan City gets a 2.15% duty penalty.

All other Chinese producers receive a 8.08% countervailing duty.

The duty involves  “drawn” stainless-steel sinks with seamless basins and rim shaped “shaped by forming (drawing), punching, and stamping operations from a single stainless-steel sheet blank;” the definition included drop-in and undermount configurations. Welded or joined sinks are not included.

In April, the U.S. International Trade Commission (USITC) agreed with U.S. sink producers that there’s a reasonable indication of the domestic industry being materially injured from Chinese imports allegedly subsidized and sold domestically at less than fair value.

The commission voted 6-0 in the affirmative to a petition from Elkay on behalf of itself and Franke Consumer Products Inc., Just Manufacuring, Moen Inc. and Kohler Co. The petition’s supporting documents also cite more than 90 Chinese producers and exporters of the one-piece stainless-steel sinks.

Both the Commerce Department and the ITC are continuing investigations, with final determinations set for later this fall. If the inquries show material injury (or the threat of same) to domestic sink producers, Commerce will issue an additional countervailing duty schedule.

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