Commerce Finds Dumping and Subsidization of Imports of Drawn Stainless Steel Sinks from China
On February 20, 2013, the Department of Commerce (Commerce) announced its affirmative final
determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of
imports of drawn stainless steel sinks from China.
The AD and CVD laws provide U.S. businesses, workers, and farmers with a transparent and
internationally approved mechanism to seek relief from the market distorting effects caused by
injurious dumping and subsidization of imports into the United States, and thus to have an
opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the
United States at less than its fair value. For the purpose of CVD investigations, countervailable
subsidies are financial assistance from foreign governments that benefit the production of goods from
foreign companies and are limited to specific enterprises or industries, or are contingent either upon
export performance or upon the use of domestic goods over imported goods.
Commerce determined that drawn stainless steel sinks from China have been sold in the United States
at dumping margins ranging from 27.14 percent to 76.53 percent.
Commerce also determined that drawn stainless steel sinks from China have received countervailable
subsidies ranging from 4.80 percent to 12.26 percent.
As a result of the final AD determination, Commerce will instruct U.S. Customs and Border
Protection (CBP) to collect cash deposits equal to the applicable weighted-average dumping margins.
As a result of the affirmative final CVD determination, Commerce will order the resumption of the
suspension of liquidation and require a cash deposit equal to the final subsidy rates if the U.S.
International Trade Commission (ITC) issues a final affirmative injury determination.
In the CVD investigation, Commerce concluded that all producers and exporters benefited from both
export and domestic subsidies. In the AD investigation, the Commerce determined that certain
countervailable domestic subsidies were passed-through to the price of the subject merchandise of
one mandatory respondent, Dongyuan, and the companies receiving a separate rate. Therefore, in
accordance with the statute, Commerce adjusted the AD margins, where appropriate, to account for
the domestric subsidies. Further, if the ITC issues an affirimative final determination, Commerce
will order the resumption of the suspension of liquidation in the CVD investigation and reduce the
AD cash deposit rates, as appropriate, for the export subsidies received.
The petitioner for these investigations is Elkay Manufacturing Company (IL).
The merchandise covered by these investigations is drawn stainless steel sinks from China. Drawn
stainless steel sinks are stainless steel sinks with single or multiple drawn bowls and a smooth basin
with seamless, smooth, and rounded corners.
Specifically excluded from the scope of these investigations are stainless steel sinks with fabricated
bowls. Fabricated bowls do not have seamless corners, but rather are made by notching and bending
the stainless steel, and then welding and finishing the vertical corners to form the bowls. Stainless steel
sinks.
Imports of the subject merchandise are provided for under Harmonized Tariff Schedule of the United
States (HTSUS) 7324.10.0000 and 7324.10.0010. These HTS numbers are provided for convenience
and customs purposes only; the written description of the scope is dispositive.
In 2011, imports of drawn stainless steel sinks from China were valued at an estimated $118 million.
NEXT STEPS
The ITC is scheduled to make its final injury determination on or before April 5, 2013.
If the ITC makes an affirmative final determination that imports of drawn stainless steel sinks from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes a negative determination of injury for China, the investigations will be terminated.
determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of
imports of drawn stainless steel sinks from China.
The AD and CVD laws provide U.S. businesses, workers, and farmers with a transparent and
internationally approved mechanism to seek relief from the market distorting effects caused by
injurious dumping and subsidization of imports into the United States, and thus to have an
opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the
United States at less than its fair value. For the purpose of CVD investigations, countervailable
subsidies are financial assistance from foreign governments that benefit the production of goods from
foreign companies and are limited to specific enterprises or industries, or are contingent either upon
export performance or upon the use of domestic goods over imported goods.
Commerce determined that drawn stainless steel sinks from China have been sold in the United States
at dumping margins ranging from 27.14 percent to 76.53 percent.
Commerce also determined that drawn stainless steel sinks from China have received countervailable
subsidies ranging from 4.80 percent to 12.26 percent.
As a result of the final AD determination, Commerce will instruct U.S. Customs and Border
Protection (CBP) to collect cash deposits equal to the applicable weighted-average dumping margins.
As a result of the affirmative final CVD determination, Commerce will order the resumption of the
suspension of liquidation and require a cash deposit equal to the final subsidy rates if the U.S.
International Trade Commission (ITC) issues a final affirmative injury determination.
In the CVD investigation, Commerce concluded that all producers and exporters benefited from both
export and domestic subsidies. In the AD investigation, the Commerce determined that certain
countervailable domestic subsidies were passed-through to the price of the subject merchandise of
one mandatory respondent, Dongyuan, and the companies receiving a separate rate. Therefore, in
accordance with the statute, Commerce adjusted the AD margins, where appropriate, to account for
the domestric subsidies. Further, if the ITC issues an affirimative final determination, Commerce
will order the resumption of the suspension of liquidation in the CVD investigation and reduce the
AD cash deposit rates, as appropriate, for the export subsidies received.
The petitioner for these investigations is Elkay Manufacturing Company (IL).
The merchandise covered by these investigations is drawn stainless steel sinks from China. Drawn
stainless steel sinks are stainless steel sinks with single or multiple drawn bowls and a smooth basin
with seamless, smooth, and rounded corners.
Specifically excluded from the scope of these investigations are stainless steel sinks with fabricated
bowls. Fabricated bowls do not have seamless corners, but rather are made by notching and bending
the stainless steel, and then welding and finishing the vertical corners to form the bowls. Stainless steel
sinks.
Imports of the subject merchandise are provided for under Harmonized Tariff Schedule of the United
States (HTSUS) 7324.10.0000 and 7324.10.0010. These HTS numbers are provided for convenience
and customs purposes only; the written description of the scope is dispositive.
In 2011, imports of drawn stainless steel sinks from China were valued at an estimated $118 million.
NEXT STEPS
The ITC is scheduled to make its final injury determination on or before April 5, 2013.
If the ITC makes an affirmative final determination that imports of drawn stainless steel sinks from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes a negative determination of injury for China, the investigations will be terminated.
