China Boltless Steel Shelving: Commerce Issues Preliminary Scope Rulings
The Commerce Department recently clarified the coverage of antidumping and countervailing duties on boltless steel shelving units prepackaged for sale from China (A-570-018/C-570-019), in a memorandum issued alongside its preliminary AD duty determination in March. Although no importers filed comments on the scope itself, several requested scope rulings on whether specific shelving products are subject to the investigations. Highlights of the memorandum are as follows (note that the scope rulings are only preliminary, and may change in the final determination):
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(For the current scope of the AD/CVD investigations on boltless steel shelving from China, see 14092213. In its preliminary determinations, Commerce set AD duty cash deposit requirements at 19.61% to 109.65% (see 1503310016), and CV duty cash deposit requirements at 12.21% to 55.75% (see 1501290024).)
Whitmore’s storage shelf: The horizontal shelves themselves are structural, and do not require any separate decking. Whitmore argues that the decking must be separate for the unit to be included under the scope. The vertical and horizontal supports do not lock together to form the frame, but rather the shelf frames attach to the vertical posts with rubber connectors that hold the shelves in place.
- Commerce preliminarily ruled Whitmore’s storage shelf is covered by the scope of the investigation. The unit appears to include “horizontal welded steel shelving frames and vertical welded steel end units that would be considered structurally sound even without the addition of plastic slats for decking.” Also, using rubber connectors to attach the frames to the posts does not exempt the storage shelf from duties, because the method of attaching them is still “boltless.”
Costco wire industrial shelving unit: The unit incorporates a wire deck and wire horizontal supports into a single piece with tubular collars that slide over the posts to create a finished product. Costco says the product meets the exemption from duties for wire shelving.
- Commerce preliminarily agreed the product is exempt, because it is a wire shelving unit with no steel beams or other steel horizontal supports in the design.
Costco metal wheeled cart with bamboo top: The product is a cart on casters with one wire basket and two wire shelves with both a wire deck and wire horizontal supports with horizontal collars that slide over the posts to create the finished cart. The top deck is made of bamboo and the decks and basket are made from wire. Costco says the product meets the exemption from duties for wire shelving.
- Commerce preliminarily agreed that the product is exempt wire shelving, because the shelves incorporate both a wire deck and wire horizontal supports into a single piece with tubular collars that slide over the posts.
Costco stainless steel tool chest: The product is a fully-enclosed stainless steel tool chest with casters, that incorporate seven metal drawers with handles, one door for storage, and nuts bolts and screws throughout.
- Commerce preliminarily found the product is not covered by the investigation because it incorporates nuts, bolts and screws, and because a single sheet of metal provides the frame for the drawers and there are no steel beams or other steel horizontal supports in the design.
Costco steel stacking shelves: The product consists of wire stacking shelves, incorporating a wire deck into the horizontal support. The product is imported as sets of three shelves, which can be stacked on top of each other.
- Commerce preliminarily found the product is not covered by the investigation because the shelves stack on top of each other and do not lock together, and there are no steel beams or other steel horizontal supports in the design.
Costco steel table with casters: The product is a stainless steel serving table with casters and two shelves. The shelves are attached into the vertical supports with tubular collars that slide over the vertical posts.
- Commerce preliminarily found the product falls outside the scope of the investigations because the shelves lack steel horizontal supports like beams or braces.
Whirlpool Gladiator and Gladiator Cadet shelving units: While the products meet the physical description of boltless steel shelving units, Whirlpool argues its Gladiator and Cadet units are exempt as “made-to-order” boltless steel shelving. The shelving units were produced by a licensed supplier based on proprietary designs, including a detailed bill of material specifications, testing requirements, and packaging and labeling guidelines. Whirlpool maintained ownership over the tooling, drawings, specifications, software and machine-readable information, and the supplier could not sell the products to any other party, making them made-to-order.
- Commerce preliminarily found Gladiator and Gladiator Cadet shelving units are not “made-to-order” and are covered by the scope of the investigations. The products are prepackaged with all necessary parts to assemble a completed shelving unit, and are sold at major retailers. They do not appear to be packaged according to the distributor’s or customer’s order or for the shelving system designed by the customer.
Email ITTNews@warren-news.com for a copy of the memo.