China Metal Lockers: Prelim AD Cash Deposit Rates Take Effect

Metal lockers from China are already subject to suspension of liquidation and countervailing duty cash deposit requirements, announced in Commerce's preliminary CV duty determination (see 2012110027). Suspension of liquidation for subject merchandise from China began Dec. 14.

Extensive Changes to Scope Include New Exemptions, Clarifications

Commerce is making numerous changes to the scope of its AD/CVD investigations on metal lockers to create new exclusions for various products and clarify scope coverage of others, all either agreed to or proposed by the domestic manufacturers that filed the original petition for duties. New product exclusions are as follows:

Safes

“The scope also excludes metal safes with each of the following characteristics, (1) pry resistant, concealed hinges; (2) body walls and doors of steel that are at least 17 gauge (0.05625 inch or 1.42874 mm thick); and (3) an integrated locking mechanism that includes at least two round steel bolts 0.75 inch (19 mm) or larger in diameter; or three bolts 0.70 inch (17.78 mm) or more in diameter; or four or more bolts at least 0.60 inch (15.24 mm) or more in diameter, that project from the door into the body or frame of the safe when in the locked position.”

Gun Safes

“The scope also excludes gun safes meeting each of the following requirements:

(1) Shall be able to fully contain firearms and provide for their secure storage.

(2) Shall have a locking system consisting of at minimum a mechanical or electronic combination lock. The mechanical or electronic combination lock utilized by the safe shall have at least 10,000 possible combinations consisting of a minimum three numbers, letters, or symbols. The lock shall be protected by a casehardened (Rc 60+) drill-resistant steel plate, or drill-resistant material of equivalent strength.

(3) Boltwork shall consist of a minimum of three steel locking bolts of at least 1/2 inch thickness that intrude from the door of the safe into the body of the safe or from the body of the safe into the door of the safe, which are operated by a separate handle and secured by the lock.

(4) The exterior walls shall be constructed of a minimum 12-gauge thick steel for a single-walled safe, or the sum of the steel walls shall add up to at least 0.100 inches for safes with walls made from two pieces of flat-rolled steel.

(5) Doors shall be constructed of a minimum one layer of 7-gauge steel plate reinforced construction or at least two layers of a minimum 12-gauge steel compound construction.

(6) Door hinges shall be protected to prevent the removal of the door. Protective features include, but are not limited to: hinges not exposed to the outside, interlocking door designs, dead bars, jeweler’s lugs and active or inactive locking bolts.”

Storage Devices With Exterior Export Drawers

“The scope also excludes metal storage devices that (1) have two or more exterior exposed drawers regardless of the height of the unit, or (2) are no more than 30 inches tall and have at least one exterior exposed drawer.”

Freestanding Metal Cabinets With a Tabletop

“Also excluded from the scope are free standing metal cabinets less than 30 inches tall with a single opening, single door and an installed tabletop.”

Garage Cabinets and Small Metal Cabinets and Safes

“The scope also excludes metal storage devices less than 27 inches wide and deep that (1) have two doors hinged on the right and left side of the door frame respectively covering a single opening and that open from the middle toward the outer frame; or (2) are free standing or wall-mounted, single-opening units 20 inches or less high with a single door.”

Locks

“The scope also includes all hardware for assembly and installation of the lockers and locker banks that are imported with or shipped, invoiced, or sold with the imported locker or locker system except the lock. …”

“The subject locker may or may not enter with the lock or locking device included or installed. …”

“Also excluded are locks and hardware and accessories for assembly and installation of the lockers, locker banks and storage systems that are separately imported in bulk and are not incorporated into a locker, locker system or knocked down kit at the time of importation. Such excluded hardware and accessories include but are not limited to locks and bulk imported rivets, nuts, bolts, hinges, door handles, door/frame latching components, and coat hooks. Accessories of sheet metal, including but not limited to end panels, bases, dividers and sloping tops, are not excluded accessories.”

Clarifying changes. In addition, Commerce is making several clarifying changes the scope of these investigations. The first paragraph is amended to clarify that the ability of the lockers to lock at time of importation does not determine whether they are covered by AD/CV duties, and also to clarify that lockers with wireless-enabled locks are covered, while lockers with internet-enabled locks are not:

“Where the product has doors, the doors are typically configured with or for a handle or other device or other means that permit the use of a mechanical or electronic lock or locking mechanism, including, but not limited to: a combination lock, a padlock, a key lock (including cylinder locks), lever or knob lock, electronic keypad, other electronic or wireless lock. The handle and locking mechanism, if included, need not be integrated into one another. The subject locker may or may not also enter with the lock or locking device included or installed.”

Commerce also added language clarifying that mobile tool chests that meet the scope description are covered, unless they’re covered by existing AD/CV duties on tool chests and cabinets:

“Mobile tool chest attachments that meet the physical description above are covered by the scope of these investigations, unless such attachments are covered by the scope of the orders on certain tool chests and cabinets from China. If the orders on certain tool chests and cabinets from China are revoked, the mobile tool chest attachments from China will be covered by the scope of these investigations.”

Commerce added language specifying that all measurements listed in the scope are outside measurements:

“All measurements in this scope are based on actual measurements taken on the outside dimensions of the single locker unit.”

And finally, to address circumvention concerns, Commerce added language defining height, width and depth:

“The height is the vertical measurement from the bottom to the top of the unit. The width is the horizontal (side to side) measurement of the front of the unit, and the front of the unit is the face with the door or doors or the opening for internal access of the unit if configured without a door. The depth is the measurement from the front to the back of the unit.”

The agency also added subheading 9403.20.0050 to the non-dispositive list of potential tariff subheadings for metal lockers that is listed at the end of the scope.

​AD Suspension of Liquidation and Cash Deposit Requirements

Commerce will instruct CBP to suspend liquidation for AD duty purposes for all entries of subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after Dec. 14 (liquidation is already suspended under Commerce's CV duty investigation), and require AD duty cash deposits as follows:

*As adjusted for export subsidies found in the concurrent CV duty investigation. This rate is the AD duty cash deposit rate while CV duty suspension of liquidation remains in effect.

China-wide entity. The China-wide entity includes all producer-exporter combinations not named in Commerce's notice.

(The period of investigation is 01/01/20 - 06/30/20. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 2008040028 for a summary of initiation of this investigation, and 2007130037 for the underlying petition.)