Elkay® Receives Favorable Decision in Chinese Sink Manufacturer Subsidy and Anti-dumping Case

Oak Brook, Ill. — The United States Department of Commerce recently awarded a victory to Elkay Manufacturing in its case against Chinese manufacturers alleging dumping of drawn stainless steel sinks into the U.S. marketplace. In an effort to protect its 3,500 U.S. employees and the communities in which they work, Elkay petitioned the U.S. Department of Commerce to investigate whether Chinese manufactured drawn stainless steel sinks were being sold at prices significantly below fair market price. As a result of its investigation, the U.S. Department of Commerce issued its preliminary determination that the Chinese manufactured sinks were being dumped in violation of U.S. trade laws, and instructed U.S. Customs to collect cash deposits ranging from 50.28 to 76.15 percent from importers of drawn stainless steel sinks.
In addition to the anti-dumping ruling, the U.S. Department of Commerce also issued a preliminary determination that subsidies provided by the Government of China to Chinese manufacturers of drawn stainless steel sinks violate U.S. trade laws. As a result, additional cash deposits ranging from 2.12 to 13.94 percent will also be collected from Chinese importers of drawn stainless steel sinks. Together, the additional duties being collected on all drawn stainless steel sinks from China, imported into the U.S. after October 1, 2012, range from 60 to 84 percent. While the findings are preliminary, with final determinations due in early 2013, the imposition of significant additional duties in October is an Elkay victory, protecting U.S. jobs.
“Elkay is pleased that the U.S. Department of Commerce agreed that Chinese manufacturers of drawn stainless steel sinks were in violation of U.S. trade laws relating to anti-dumping policies and illegal government subsidies,” says Timothy Jahnke, chief executive officer of Elkay.
Jahnke continues, “We believe this ruling will help to protect Elkay employees, all American sink manufacturers and the communities they support.”
“Also, the subsidy and anti-dumping tariffs imposed on Chinese manufacturers will enable U.S. manufacturers to level the playing field, retain manufacturing jobs in the U.S., and allow Elkay to continue to provide durable, high-quality sinks to homeowners across the country.”