U.S. may levy countervailing duties on sinks from China

Amid rising protectionist sentiments, the U.S. Commerce Department on Tuesday preliminarily determined that Chinese drawn stainless sinks have received countervailing subsidies, signaling that it may impose punitive duties on the products.

In a countervailing duty (CVD) investigation, the department found that Chinese producers/exporters of drawn stainless sinks have received countervailing subsidies of 2.12 percent to 13.94 percent.

The department is scheduled to make its final determination on Oct. 15.

Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (USITC) make affirmative final rulings. The USITC is expected to make a final decision over the issue in November.

The petitioner for the investigation is Elkay Manufacturing Company based in Illinois.

In 2011, imports of drawn stainless sinks from China were valued at an estimated 118 million U.S. dollars.

Earlier this year, the U.S. Commerce Department also launched an anti-dumping investigation on drawn stainless sinks from China, claiming that the products had a dumping margin ranging from 22.81 percent to 76.53 percent.

The U.S. move came at a time when protectionism is making a comeback in the country amid sluggish economic recovery. It was widely believed that such actions would hurt U.S.-China trade relations that are increasingly critical to global recovery.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.