MasterBrand makes statement on Commerce ruling

On March 17,  the U.S. Department of Commerce issued a preliminary affirmative scope ruling concerning wooden cabinets, vanities, and components (WCV) made, at least in part, in China, shipped to Malaysia and Vietnam where supplemental processes, of one sort or another, occur and then those products are shipped through those countries to the U.S.

The Commerce Department considered four scenarios (see Sidebar,  Background on four scenarios) that were submitted by the Kitchen Cabinet Manufacturers Association regarding cabinet parts and products made in China and shipped through Malaysia and Vietnam with different states of processing in those countries.

The KCMA applauded the ruling, while MasterBrand, the largest cabinet company in the U.S., said that overall the ruling was positive for the domestic cabinet industry. The company found that two of the scenarios aligned with their viewpoints and for the two others it plans to remain "engaged in the process as Commerce continues its analysis."

MasterBrand's statement
Here is the MasterBrand statement in its entirety, followed by a sidebar on the four scenarios outlined by the KCMA:  

"On March 16, 2023, the U.S. Department of Commerce issued its preliminary determinations in the scope inquiries involving the antidumping (AD) and countervailing duty (CVD) orders on wooden cabinets and vanities and components thereof from the People’s Republic of China.

"MasterBrand was pleased to see Commerce’s preliminarily finding that products under Scenario One (i.e., cabinets and vanities completed in Malaysia and Vietnam using certain finished Chinese components that are explicitly included in the scope language, such as doors and frames) are covered by the scope.  This ruling is consistent with MasterBrand’s continued efforts to urge strong enforcement of the AD/CVD orders in recent years and should aid in ensuring that Chinese WCV pays the duties owed on such merchandise, to the benefit of the domestic industry.

"The Company was further pleased to see Commerce's finding that the wooden cabinets and vanities covered by Scenario Four are not covered by the scope.  This is also consistent with MasterBrand’s position.

"With regards to Scenarios Two and Three (i.e., products using only certain semifinished Chinese components that are explicitly included in the scope language, and products using only certain semi-finished parts of such components), we look forward to remaining engaged in the process as Commerce continues its analysis.

"MasterBrand believes the preliminary rulings were largely positive for the domestic cabinets manufacturing industry and continues to urge strong enforcement of AD/CVD orders and accurate interpretation of the scope language."
 

SIDEBAR: Background on four scenarios
In our [KCMAs] requests for scope rulings, we requested that Commerce examine whether the following four scenarios are covered by the AD/CVD order:

Scenario 1: finished wooden doors, drawer faces, and frames produced in China are combined in Malaysia or Vietnam with wooden cabinet boxes and drawer boxes started and finished in Malaysia or Vietnam.
Scenario 2: semifinished wooden doors, drawer faces, and frames produced in China are further processed in Malaysia or Vietnam and then combined in Malaysia with wooden cabinet boxes and drawer boxes produced in Malaysia or Vietnam.
Scenario 3: semifinished parts of the wooden cabinet and vanity doors, drawer faces, and frames (all the rails, stiles, and panels) are produced in China and are further processed in Malaysia or Vietnam and then combined with wooden cabinet boxes and drawer boxes produced in Malaysia or Vietnam.
Scenario 4: finished wooden toe kicks produced in China are combined in Malaysia or Vietnam with all other components necessary to build a complete wooden cabinet which was started and finished in Malaysia or Vietnam.

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).