La Jornada: The tax on Chinese sinks is extended for 5 years

The Ministry of Economy (SE) determined to maintain for five more years the compensatory quotas imposed on imports of stainless steel sinks originating in China, concluding that eliminating said measures could lead to the continuation or repetition of unfair trade practices and generate harm to the national industry.

The decision was published yesterday in the Official Gazette of the Federation (DOF) as part of the procedure to examine the validity of the countervailing duties applied to this product. The measure has been in force since May 9 of this year. In accordance with the resolution, the agency determined to extend the quotas of $4.14 per kilogram for products manufactured and exported by Taizhou Luqiao Jixiang Kitchenware, as well as $5.40 per kilogram for the rest of the Chinese exporters.

The secretariat pointed out that there are elements to conclude that the elimination of quotas “would lead to the continuation or repetition of damage” to national production.

The procedure began after Mexican manufacturers formally requested the review of the measures due to the proximity of their expiration. Among the promoting companies are Cocinas Modulares, EB Técnica Mexicana and Teka Mexicana, which argued that the elimination of quotas would allow imported goods at prices that would affect the conditions of competition in the national market.

Countervailing duties are trade defense measures that the government applies when it determines that an imported product is sold at artificially low prices or under conditions that affect domestic producers. Its objective is to restore equal conditions of competition for companies operating in the country.

The sinks subject to the resolution correspond to stainless steel models with a unit weight equal to or less than 8 kilograms, which enter the Mexican market through tariff item 7324.10.01.

The quotas were originally imposed in May 2015, following an investigation by the Mexican trade authority. Subsequently, in June 2021, Economía decided to maintain them for five years. Given the expiration of these measures, national manufacturers requested a new validity examination, a procedure that concluded with the resolution published yesterday.