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China Tool Chests: Commerce Issues CV Duty Final Determination

The Commerce Department issued its final determination in the countervailing duty investigation on tool chests and cabinets from China (C-570-057).

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The next step is for the International Trade Commission to make its final injury determination, currently scheduled for Jan. 8. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.

Commerce is also conducting antidumping duty investigations on tool chests and cabinets from China and Vietnam. Commerce issued its preliminary determinations in those investigations and imposed AD duty cash deposits on Nov. 16 (see 1711150032).

Scope Changes Confirmed in Final Determination

Commerce finalized several changes to the scope of the AD/CVD investigations on tool chests from China and Vietnam that were initially announced in the agency's preliminary CV duty determination. That includes changes to dimensional requirements for in-scope merchandise, modifications to an exemption for industrial grade tool chests, a new exemption for service carts, an added definition of “prepackaged for retail sale,” the removal of an exemption for metal tool boxes, and changes to the exemption for work benches. The final scope of these investigations is unchanged from the preliminary determinations.

Estimated AD Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation of subject merchandise entered on or after Sept. 15, 2017, and require a CV duty cash deposit equal to the following CV rates:

CompanyCV Rate
Jiangsu Tongrun Equipment Technology Co., Ltd. and its affiliates Changshu Jack Factory, Changshu Tongrun Taron Import and Export Co., Ltd., (also known as Changshu Tongrun Equipment Co., Ltd.), Changshu Tongrun Mechanical & Electrical Equipment Manufacture Co., Ltd., Changshu Taron Machinery Equipment Manufacturing Co., Ltd., and Changshu General Electrical Factory Co., Ltd.15.09% (from 17.32%)
Zhongshan Geelong Manufacturing Co., Ltd.14.03% (from 32.07%)
30 Non-cooperative companies95.96% (from 112.99%)
19 Average rate companies14.39% (from 27.13%)
All Others14.39% (from 27.13%)

Non-cooperative companies. Commerce said the following companies did not cooperate in the investigation, and assigned them a 95.96% penalty rate: Allround Hardware Co., Ltd.; Beijing Kang Jie Kong International Cargo Agent Co., Ltd.; Changzhou City Hongfei Metalwork Corporation; China National Electronics Import and Export Ningbo Co.; Foshan Lishida Metal Products Co., Ltd.; Gem-Year Industrial Co., Ltd.; Guerjie Enterprise Co., Ltd.; Haiyan Dingfeng Fasteners Ltd.; Hangzhou Xiaoshan Import and Export Trading Co., Ltd.; Jiaxing Pinyou Import & Export Co., Ltd.; Kingstar Tools Co., Ltd.; Liyang Flying Industry Co., Ltd.; Ningbo Better Design Industry Co., Ltd.; Ningbo Hualei Tool Co., Ltd.; Ningbo Jiufeng Electronic Tools; Ningbo Xiunan International Co., Ltd.; Shanghai Delta International Trading; Shanghai Fairlong International Trading Co., Ltd.; Shanghai Legsteel Metal Products Co., Ltd.; Shanghai Tung Hsing Technology Inc.; Shining Golden Yida Welding & Cutting Machinery Manufacture Ltd.; Suzhou Aomeijia Metallic Products Co., Ltd.; Suzhou Goldenline Machinery Co., Ltd.; Tong Ming Enterprise (Jiaxing) Co., Ltd.; Wuyi Yunlin Steel Products Co., Ltd.; Yangzhou Huayu Pipe Fitting Co., Ltd.; Zhangjiagang Houfeng Machinery Co., Ltd.; Zhejiang KC Mechanical & Electrical; Zhejiang Zhenglian Corp.; and Zhuhai Shichang Metals Ltd.

Average rate companies. Commerce said the following companies were not individually investigated, but were assigned a review-average rate of 14.39%: Changshu Zhongcheng Tool Box Co., Ltd.; Changzhou Machan Steel Furniture Co., Ltd.; Guangdong Hisense Home Appliances Co., Ltd.; Hyxion Metal Industry; Jin Rong Hua Le Metal Manufactures Co., Ltd.; Jinhua JG Tools Manufacturing Co.; Jinhua Yahu Tools Co., Ltd.; Keesung Manufacturing Co., Ltd.; Meridian International Co., Ltd; Ningbo Safewell International Holding Corp.; Pinghu Chenda Storage Office Equipment Co., Ltd; Pooke Technology Co., Ltd.; Shanghai All‐Fast International Trade Co., Ltd.; Shanghai All‐Hop Industry Co., Ltd.; Shanghai ITPC Hardware Co., Ltd.; Suzhou Xindadi Hardware Co., Ltd.; Taixing Hutchin Mfg. Co., Ltd.; Trantex Product (Zhong Shan) Co., Ltd.; and Yangzhou Triple Harvest Power Tools Limited.

(The period of investigation is 01/01/16 -- 12/31/16. See Commerce’s notice for more information, including the scope of the investigation (unchanged), detailed instructions on cash deposit rates, etc. See 1709140016 for a summary of the preliminary determination of this investigation.)

(Federal Register 11/29/17)