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US slaps duties on appliance shelves from China

Published 12/23/2008, 02:19 PM
Updated 12/23/2008, 02:20 PM

WASHINGTON, Dec 23 (Reuters) - The U.S. Commerce Department said on Tuesday it was slapping preliminary import duties ranging up to 197.14 percent on China-made wire shelves used in refrigerators and other kitchen appliances.

"The United States is committed to enforcing U.S. trade laws to ensure American businesses are treated fairly in the international marketplace," David Spooner, Commerce assistant secretary for import administration, said in a statement announcing the countervailing duties.

The case is the latest example of U.S. manufacturers seeking government protection to keep out what they consider as unfair competition from China. Imports of wire shelves and racks used in refrigerators, freezers and ovens rose to $124.5 million in 2007, from $91.5 million in 2004.

Nashville Wire Products, SSW Holding Company and the United Steelworkers union filed a request for import protection in late July.

Many analysts expected the U.S. economic downturn to spur even more manufacturers to seek anti-dumping and countervailing duty protection in 2009.

The Commerce Department said it agreed as the result of its preliminary investigation that the Chinese government was subsidizing the production of the shelves.

It set a preliminary duty of 197.14 percent on Asber Enterprise Co. and a duty of 162.87 percent on Changzhou Yixiong Metal Products Co., Foshan Winleader Metal Products Co., Kingsun Enterprises Group Co., Yuyao Hanjun Metal Work Co./Yuyao Hanjun Metal Products Co. and Zhongshan Iwatani Co.

All other Chinese producers and exporters, including Guangdong Wireking Housewares and Hardware Co., will face a preliminary duty of 13.22 percent, the department said.

The department will issue final duty levels in May.

The Chinese companies could still escape the trade curbs if the U.S. International Trade Commission determines domestic producers have not been materially harmed, or threatened with material injury, by the imports. The ITC will make its final determination in the case by late June.

(Reporting by Doug Palmer; editing by David Wiessler)

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