US Secretary of Commerce Wilbur Ross has announced the affirmative preliminary determination in the countervailing duty (CVD) investigation, finding that exporters of tool chests and cabinets from China received countervailable subsidies ranging from 17.32 percent to 32.07 percent.

The Commerce Department will instruct US Customs and Border Protection to collect cash deposits from importers of tool chests and cabinets from China based on these preliminary rates.

The scope covers metal tool chests and cabinets, including top chests, intermediate chests, tool cabinets and side cabinets, storage units, mobile work benches, and work stations.

In 2016, imports of tool chests and cabinets from China were valued at an estimated $989.9 million. The petitioner is Waterloo Industries, Inc. of Missouri.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to countervailing duties aimed at directly countering those subsidies. The Commerce Department currently maintains 407 antidumping and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is scheduled to announce its final determination on or about November 23, 2017, unless the statutory deadline is extended.

If the Commerce Department makes an affirmative final determination of subsidization and the US International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If the Commerce Department makes a negative final determination of subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

The US Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for enforcing US trade laws. In fiscal year 2016, the United States collected $1.5 billion in duties on $14 billion of imported goods found to be underpriced, or subsidized by foreign governments.