New Trade Case on Imports of Certain Metal Lockers and Parts from China
A new U.S. antidumping (“AD”) and countervailing duty (“CVD”) petition was filed on July 9, 2020, by List Industries Inc., Lyon LLC, Penco Products, Inc., and Tennsco LLC against imports of certain metal lockers and parts thereof from the People’s Republic of China.
The merchandise covered by this Petition includes certain metal lockers, with or without doors, and parts thereof. The subject certain metal lockers are metal storage devices less than 27” wide and less than 27” deep, whether floor standing, installed onto a base or wall-mounted. The subject metal lockers are metal storage devices found in public or private areas for the secure storage of personal property. Please see the scope section below for a full review of subject merchandise.
The petition includes AD (less than fair value) and CVD (unfair subsidy) allegations against China. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the cases will move to the DOC which will calculate the preliminary AD and CVD duty margins.
The DOC’s preliminary determinations are currently scheduled for October 2, 2020 (CVD) and December 16, 2020 (AD), which are the dates when importers will be required to deposit the calculated duties upon the products’ entry in the U.S. market.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.
The following are key facts about this trade case:
Petitioners: List Industries Inc., Lyon LLC, Penco Products, Inc., and Tennsco LLC
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
AD and CVD margins: Petitioners have alleged the following AD and CVD margins:
- China: calculated AD margins ranging from 277.40 to 330.80 percent ad valorem and a CVD margin above de minimus.
Merchandise covered by the scope of the case:
The scope of this investigation covers certain metal lockers, with or without doors, and parts thereof (“certain metal lockers”). The subject certain metal lockers are metal storage devices less than 27" wide and less than 27" deep, whether floor standing, installed onto a base or wall-mounted. In a multiple locker assembly (whether a welded locker unit, otherwise assembled locker unit or knocked down unit or kit), the width measurement shall be based on the width of an individual locker, not the overall unit dimensions. The subject certain metal lockers typically include the bodies (back, side, shelf, top, and bottom panels), door frames with or without doors that can be integrated into the sides or made separately, and doors. The subject metal lockers typically are made of flat-rolled metal, metal mesh and/or expanded metal, which includes but is not limited to alloy or non-alloy steel (whether or not galvanized or otherwise metallically coated for corrosion resistance), stainless steel, or aluminum, but the doors may also include transparent polycarbonate, Plexiglas or similar transparent material or any combination thereof. The doors are configured with or for a handle or other device that permits the use of a mechanical or electronic lock or locking mechanism, including, but not limited to: a combination lock, a padlock, a key lock, lever or knob lock, and a wireless lock. The doors or body panels may also include vents (including wire mesh or expanded metal mesh vents) or perforations. The bodies, body components, and doors are typically powder coated, otherwise painted or epoxy coated or may be unpainted. The subject merchandise includes metal lockers imported either as welded or otherwise assembled units (ready for installation or use) or as knocked down units or kits (requiring assembly before installation or use).
The subject lockers may be shipped as individual or multiple locker units preassembled, welded, or combined into banks or tiers for ease of installation or as sets of component parts, bulk packed (i.e., all backs in one package, crate, rack, carton or container and sides in another package, crate, rack, carton or container) or any combination thereof. The knocked down lockers are shipped unassembled requiring a supplier, contractor, or end-user to assemble the individual lockers and locker banks before installation.
The scope also includes all parts and components of lockers made from flat-rolled metal or expanded metal (e.g., doors, frames, shelves, tops, bottoms, backs, side panels, etc.) as well as accessories that are attached to the lockers when installed (e.g., slope tops, bases, expansion filler panels, dividers, recess trim, decorative end panels, and end caps) that may be imported together with other locker components or on their own. It also includes all hardware for assembly and installation of the lockers and locker banks that are imported with or shipped, invoiced, or sold with the imported locker or locker system. The subject metal lockers are typically used for storage in schools, fitness centers, apartment buildings, offices, condominiums, single-family homes, athletic facilities, public private, and government buildings, warehouses, factories, transportation hubs, healthcare facilities, amusement parks, military installations, retail businesses, and other commercial and industrial establishments.
Excluded from the scope are wire mesh lockers. Wire mesh lockers are those with each of the following characteristics:
- At least three sides, including the door, made from wire mesh;
- The width and depth each exceed 25 inches; and
- The height exceeds 90 inches.
Also excluded are lockers with bodies made entirely of plastic, wood, or any nonmetallic material.
Also excluded are exchange lockers with multiple individual locking doors mounted on one master locking door to access multiple units. Excluded exchange lockers have multiple individual storage spaces, typically arranged in tiers, with access doors for each of the multiple individual storage space mounted on a single frame that can be swung open to allow access to all of the individual storage spaces at once. For example, uniform or garment exchange lockers are designed for the distinct function of securely and hygienically exchanging clean and soiled uniforms. Thus, excluded exchange lockers are a multi-access point locker whereas covered lockers are a single access point locker for personal storage.
Also excluded are metal lockers that are imported with an installed electronic, internet-enabled locking device that permits communication or connection between the locker's locking device and other internet-connected devices.
Also excluded are hardware and accessories for assembly and installation of the lockers, locker banks, and storage systems that are separately imported in bulk and are not incorporated into a locker, locker system, or knocked down kit at the time of importation. Such excluded hardware and accessories include but are not limited to bulk imported rivets, nuts, bolts, hinges, door handles, locks, door/frame latching components, and coat hooks. Accessories of sheet metal, including but not limited to end panels, bases, dividers, and sloping tops, are not excluded accessories.
The subject certain metal lockers are classified under Harmonized Tariff System of the United States (“HTSUS”) subheading 9403.20.0078. Parts of subject certain metal lockers are classified under HTSUSf subheading 9403.90.8041. While HTSUS subheadings are provided for convenience and Customs purposes, the written description of the scope of the investigation is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (firstname.lastname@example.org; 202-640-6680), Kevin Williams (email@example.com; 312-985-5907); William Sjoberg (firstname.lastname@example.org; 202-772-0924), Courtney Gayle Taylor (email@example.com; 202-552-2350); Dennis Devaney (firstname.lastname@example.org); or another member of Clark Hill's International Trade Business Unit.