The US Department of Commerce has begun investigating the possibility of dumping of imports of tool chests and cabinets from Viet Nam and China.

The investigation is being conducted following a petition from Waterloo Industries Inc., which filed an anti-dumping and a countervailing duty from the two countries on April 11.

The company alleges a dumping margin of 159.99 per cent for China and a dumping margin of 21.85 per cent for Viet Nam. It also said exporters and producers from China had received unsuitable subisidisation from their government.

The International Trade Commission (ITC) may reveal its primary investigation result on May 25. The investigation will be continued if ITC finds evidence that shows the import of tool chests and cabinets from the two countries is damaging or threatening the United States’ domestic industry.

Last year, the United States imported tool chests and cabinet at a total value of US$989.9 million from China and $77 million from Viet Nam.

The US anti-dumping law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value”. For anti-dumping duties to be imposed, the US Government must determine not only that dumping is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped imports. Importers are liable for any potential anti-dumping duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing the supply of tool chests and cabinets. — VNS