Securities Imposed on Imported Kitchen Sinks


Securities Imposed on Imported Kitchen Sinks

The decision has been made to impose securities between 19% and 61% on imports of Chinese produced deep drawn stainless steel sinks.

This decision reflects a preliminary finding by the Anti-Dumping Commission that Chinese steel sinks have been dumped causing material injury to the Australian manufacturing industry. While only preliminary, the finding increases the likelihood that dumping duties will ultimately be imposed.

Until the decision has been finalised, a security must be provided in respect of the affected imports.

If dumping duties are imposed, the provided security will be converted to an interim dumping duty and become payable. The amount of duty paid will be the lower of either the security held, or the final dumping duty actually imposed. If no duties are imposed, the security will be released.

What products are affected?

Deep drawn stainless steel sinks with a capacity between 7 – 70 litres entered for home consumption after 13 August 2014. The securities cover single or multiple drain bowls, but do not cover sinks with fabricated drain bowls.

What should your clients be doing?

If your client is a purchaser of these products, they need to review their contracts to determine the party liable for any additional duty. For many contracts, it will be the importer, and they will need to factor in a potential 61% increase in their cost of goods.

Australian importers should assess if they are on-selling affected goods at a price that is sufficient to cover the potential additional duties.

A final decision regarding dumping duties will not be made for many months, by which time it is likely to be too late to recover any additional cost from Australian customers.

Can anything be done?

This decision is only preliminary. Manufacturers, exporters and importers can influence the final decision by making submissions to the Anti-Dumping Commission either now or in response to the Statement of Essential Facts (due 5 October).

These submissions could address:

  • whether the Australian industry suffered injury
  • what factors, other than price, drive buyer decisions
  • have other factors, such as a strong dollar, non-dumped imports or a change in domestic demand, caused any injury
  • what goods should be covered by the investigation
  • has the Anti-Dumping Commission adopted the correct approach in calculating the dumping margin.