Duties Potentially Levied Against Chinese ‘Drawn’ Stainless Steel Sinks

The U.S. Commerce Department issued a second preliminary anti-dumping decision in late 2012 in response to Chinese stainless steel drawn sinks. The determination was that Chinese manufacturers sold drawn stainless steel sinks in the United States at prices significantly below fair value, in violation of U.S.law and international trade rules. Prices were 54 to 77 percent below fair value. In response to this ruling, Chinese companies are required to pay cash deposits ranging from 50 to 76 percent of the customs value  on drawn stainless steel sinks imported into the United States.

In a preliminary finding in late July by the U.S. Commerce Department. Information regarding the ruling released on July 31, finds that drawn stainless steel sinks imported from China have been subsidized to the tune of 2.12 to 13.94 percent and countervailing duties will be imposed.

The ruling is the result of petitions filed in 2012 by Elkay Manufacturing Co. Oak Brook, Ill., that sought protection under anti-dumping laws, which allege sinks were produced and sold below value because of Chinese government subsidies.

U.S. Customs and Border Protection will now require cash deposits on imported sinks at ports of entry. The rates correspond to subsidies given to Chinese producers and exporters.

Guangdong Yingao Kitchen Utensils Co. Ltd. of Foshan City faces a 2.15 percent duty penalty. And sinks from Zhongshan Superte Kitchenware Co. Ltd. of Zhongshan City (including those exported by Foshan Zhaosuhn Trade Co. Ltd.) face a 13.94 percent additional duty.  All other Chinese producers will be hit with a 8.08 percent countervailing duty.

The merchandise covered by this investigation 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, including both drop-in and undermount configurations.

Specifically excluded from the scope of this investigation 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 with fabricated bowls may sometimes be referred to as “zero radius” or “near zero radius” sinks.

Final determinations set for October. If the inquries show material injury to domestic sink producers, additional countervailing duties will be levied, likely in November.

Download the official Department of Commerce Fact Sheet Here