SPOTLIGHT NEWSLETTER

New Countervailing Duties against Chinese Origin Tool Chests & Cabinets

On September 11, 2017, the U.S. Department of Commerce (Commerce) announced its affirmative preliminary determination in the countervailing duty (CVD) investigation of certain imports of tool chests and cabinets from the People’s Republic of China (China). As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits of CV duties on imports of subject products. The CV duty rates range from 17.32 percent to 27.13 percent. 

It is recommended you review the factsheetundefined to review the specific scope of products covered by this CV case and the rates of CV duty. If the tool chests and cabinets of China origin that are imported fall within the listed scope- please note they will be subject to CV duty assessment. If the tool chests or cabinets fall outside the scope, they are not subject to the CV case and the CV duties may be disclaimed on the importation. Note that the CVD is not tariff driven, but rather driven by the specific description and features. Some Chinese tool chests and cabinets, classified in the same HTS classification, are excluded from CVD if they are outside of the description of the scope. 

Increased Enforcement of Wood Packaging Material Treatment Requirements

U.S. Customs (CBP) is increasing enforcement of wood packaging material (WPM) treatment requirements. Starting Nov. 1, CBP may issue penalties to responsible parties for each and every documented wood packaging materials violation.

This is a change from the previous published threshold of five violations prior to possible penalty action. There will also be no yearly reset for calculating repeat violations as each WPM violation may incur a penalty. The enhanced enforcement measures are meant to “motivate WPM compliance,” CBP said. 

Under requirements in effect since 2005, WPM imported into the U.S. must have been treated at approved facilities at their place of origin, and display a visible, permanent mark certifying treatment that has been approved under the International Standards of Phytosanitary Measures (ISPM 15) regulation.

The CBP CSMS message on this topic may be viewed here:

Information on the WPM requirements may be viewed here:

If you have any questions on the above subjects, please contact your DHL Global Forwarding representative or email.

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