KBDN

KCMA Charges Trade Violations by Chinese Cabinet Importers

WASHINGTON, DC — A coalition of domestic cabinet manufacturers has filed charges of customs fraud tied to Chinese cabinet imports, alleging that the products are being imported to the U.S. in violation of trade-remedy duties imposed earlier this year.

The Kitchen Cabinet Manufacturers Association this week announced that U.S. Sens. Mike Rounds and Joe Manchin, as well as Congresswomen Abigail Spanberger and Jackie Walorski, have sent a bipartisan letter signed by 35 members of Congress to Commerce Dept. Secretary Wilbur Ross and Mark Morgan, acting commissioner of U.S. Customs and Border Protection, expressing KCMA allegations of fraud involving the imports.

A coalition of domestic cabinet suppliers closely tied to the KCMA last year filed antidumping (AD) and countervailing (CVD) duty petitions in protest of unfair trade practices involving imports of wooden cabinets, vanities and components from China. The resulting investigation by U.S. trade officials found material injury caused by the imports, and duties on the products were imposed in April. Since then, however, domestic suppliers have uncovered evidence “to suggest that Chinese producers may be engaged in transshipment, circumvention and evasion of the AD/CVD duties” in an effort to undercut U.S. suppliers, according to the KCMA.

Domestic suppliers have taken a series of steps to combat the alleged customs fraud and “restoring a level playing field for the domestic industry,” the Reston, VA-based KCMA said.

“The KCMA appreciates the leadership and support provided by Congress to ensure that the industry and its workers receive the relief intended from the duties,” said KCMA Chief Executive Officer Betsy Natz. “Their efforts will ensure that the trade agencies take appropriate and swift actions to end chronic fraud, circumvention and evasion practices.”

“We thank these members of Congress for stepping forward to encourage Customs and Commerce to look into these allegations,” said Bill Allen, president and CEO of Showplace Cabinetry. “A level playing field and fair-trade practices are essential to ensure the success of the U.S. kitchen cabinet industry.”

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