THE US Commerce Department said Tuesday directed the collection of cash deposits from importers of the wooden cabinets and vanities from China based on subsidy rates of as much as 229 per cent, reports Bloomberg.

The department issued a preliminary determination in response to a petition filed earlier this year by the American Kitchen Cabinet Alliance, alleging at least US$2 billion in harm from the Chinese shipments.



The petition alleged dumping margins of more than 200 per cent Tim Brightbill, a trade lawyer from Wiley Rein LLP in Washington representing the US industry, said in March that Chinese exporters get double-digit subsidy margins supporting their domestic industry.



'Today's determination gives the American kitchen cabinet industry the hope it needs in our fight against China's unfair trade practices,' said Stephen Wellborn, director of product and research development at Wellborn Cabinet.



The cash deposits will be collected from Henan AiDiJia Furniture Co and Deway International Trade Co, which were found to have gotten a subsidy of 229 per cent. The Ancientree Cabinet Co will have to pay a subsidy rate of 11 per cent; Dalian Meisen Woodworking Co 16 per cent; Rizhao Foremost Woodwork Manufacturing Co 22 per cent; and 16 per cent for the other Chinese producers not selected for individual review, according to the department's statement.


WORLD SHIPPING