US continues probe of Vietnamese-imported hardwood cabinets

June 08, 2023 | 15:09
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The ultimate conclusion regarding Vietnamese-imported wooden cabinet products is anticipated for August 17.
US continues probe of Vietnamese-imported hardwood cabinets

According to the Trade Remedies Authority of Vietnam (TRAV), the United States Department of Commerce (DoC) has decided to continue delaying the decision of an investigation into the product scope of wooden cabinetry imported from Vietnam.

Previously, on March 17, the DoC issued preliminary findings regarding the investigation of the product scope of wooden cabinetry imported into the US from Vietnam.

DOC has reached the preliminary conclusion, based on the plaintiff's allegations, that the product's door components, drawers, and wooden frames were manufactured in China; the product was subsequently assembled in Vietnam and incorporated with wooden cabinets and drawers manufactured in Vietnam within the purview of the original tariff order against China.

Goods with doors, drawers, and wooden frames are manufactured in China as semi-finished goods, which are then combined with wooden cabinets and drawers manufactured in Vietnam; products containing semi-finished components of doors, drawers, and timber frames (including belts, posts, and boards) are manufactured in China; they are then further processed in Vietnam and combined with plywood cases and drawers manufactured in Vietnam; therefore, there is insufficient information to make a verdict.

Currently, the DoC is additionally postponing the deadline for issuing preliminary and final conclusions regarding the investigation of trade remedy evasion. As a result, the deadline for releasing preliminary conclusions has been extended to August 31, and the final conclusion is anticipated to be released on November 28.

According to TRAV, the US has imposed anti-dumping and anti-subsidy duties on Chinese-origin wooden cabinetry since April 2020, with anti-dumping tax rates ranging from 4.37 per cent to 262.18 per cent and anti-subsidy tax rates ranging from 13.33 per cent to 293.4 per cent.

On May 24 and June 7, 2022, the DoC initiated an investigation into the product scope and an investigation into trade remedy tax evasion for Vietnamese-imported wooden cabinetry.

In the first quarter of 2023, bedroom furniture accounted for 76.6 per cent of the total export turnover of this article, as reported by the General Department of Customs. However, due to the impact of inflation, exports of this product to the US market fell by 51 per cent compared to the same period in 2022.

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By Angela Nguyen

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