Chair Parts Don't Qualify for 'Finished Goods Kit' Exemption From Aluminum Extrusions AD/CV Duties, Commerce Says
Aluminum dining chair kits imported by Woodard are covered by antidumping and countervailing duties on aluminum extrusions from China (A-570-967/C-570-968), the Commerce Department said in a recent scope ruling. The chair kits do not qualify for the “finished goods kit” exemption from AD/CV duties because the non-extruded aluminum parts that are part of the kits when sold to the customer are not included at the time of importation. The chairs are also ineligible because they require further finishing, Commerce said.
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According to the scope of the AD/CV duty orders on aluminum extrusions, “finished goods kits” must contain at the time of importation all parts required to fully assemble a finished good without any further finishing or fabrication. The scope also requires that a product is not considered a finished goods kit if it consists only of extruded aluminum pieces packaged with fasteners.
The polishing, painting and powder coating operations required for Woodard’s dining chair kits disqualify the merchandise from the finished goods kit exemption, Commerce said. Painting and coating are “expressly considered ‘finishes’ under the scope; therefore, a plain reading of the scope indicates that painting or powder coating after importation must be considered ‘further finishing,’” Commerce said. The polishing of the chair kits also “constitutes ‘further finishing’ as outlined in the scope,” it said.
The fact that the chair kits only include extruded aluminum frame parts and fasteners also means the kits can’t use the exemption, Commerce said. Woodard claimed the textile sling is similar to other parts Commerce has found to be “interchangeable” in prior scope rulings, and not required to be included for the kit to be complete. But Commerce found that the “evidence on the record reflects that the Chair Kits are sold to customers only with the woven fabric sling component included, rendering Woodard’s arguments regarding the ability to use interchangeable cushions with an assembled chair frame inapposite.”
Email ITTNews@warren-news.com for a copy of this scope ruling.