KCMA Kitchen Cabinet Industry Case Study

KCMA vs. Chinese Cabinet Manufacturers

Kitchen Cabinets • $12 Billion Industry • 250,000 Workers at Risk

The Battle

9-Year Fight for Fair Competition

$10M+
Legal Fees Spent
262%
Max Dumping Margin
8
EAPA Cases Filed
7
Staff-Level Wins
Industry Impact
$12 Billion Market

The Enforcement Failure

Despite favorable rulings and winning 7 out of 8 EAPA cases at the staff level, 6 were overturned by senior leadership at CBP's Office of Rules and Regulations. Chinese suppliers continue to transship products to evade duties, putting a $12 billion industry employing 250,000 workers at risk.

Media Coverage

Industry Advocacy

KCMA YouTube video thumbnail

KCMA Video

Industry Story

"Saving American Cabinet Makers: The Fight for Fair Trade & 250,000 Jobs"

▶️ Watch
Wall Street Journal article thumbnail

Wall Street Journal

Sep 2024

"Tariff Evasions Undermine U.S. Trade Policy"

📰 Read

PR Newswire

Sep 2020

"US Kitchen Cabinet Industry Urges Investigation of Alleged Fraud from China"

📰 Read

2016-2019: Industry Under Siege

Domestic Industry Decimated

2016: The Crisis Begins

Domestic kitchen cabinet industry decimated by unfairly priced Chinese competition flooding the U.S. market. Imported cabinets sold at as much as 70% below domestic prices.

2016-2018: Investigation Period

KCMA initiated a comprehensive 3-year investigation to document the scope and impact of unfair trade practices.

2019: Legal Action

Filed Anti-Dumping (AD) petition at the International Trade Commission (ITC) and Department of Commerce (DOC).

Industry Job Losses

Plant closures with thousands of jobs lost in Alabama, Indiana, New Jersey, Kansas, Texas, Virginia, and North Carolina.

2020: Crushing Legal Victory

Unanimous ITC Vote, Massive Dumping Margins

ITC Unanimous Decision

International Trade Commission voted 5-0, confirming material harm to the domestic industry by Chinese manufacturers.

DOC Final Orders

Department of Commerce issued final Anti-Dumping orders, imposing duties up to 262% on Chinese kitchen cabinets.

Industry Relief Expected

With such decisive legal victories and massive dumping margins, the industry expected meaningful relief from unfair competition.

2020-Present: The Transshipment Game

Duties Evaded Through Southeast Asia

Immediate Evasion Response

To evade duties, Chinese suppliers immediately changed behavior by transshipping products through various countries and companies across Southeast Asia.

Complex Shell Networks

Chinese manufacturers established sophisticated networks of shell companies across Cambodia, Malaysia, Thailand, Indonesia, and Vietnam to disguise product origin.

Continued Market Disruption

Despite legal victories, unfairly priced Chinese cabinets continued flooding the U.S. market through transshipment schemes.

Revenue Impact

Estimated $6.5 billion in lost revenue to the cabinet industry over the past 5 years due to continued evasion.

2021-2024: EAPA Battle

7 Staff Wins, 6 Senior Overturns

8 EAPA Cases Filed

Filed 8 Enforce and Protect Act (EAPA) claims with CBP regarding transshipment concerns across multiple Southeast Asian countries.

7 Staff-Level Victories

Won 7 claims at the staff level, with CBP investigators finding clear evidence of duty evasion and transshipment.

6 Senior Leadership Overturns

However, 6 of those staff-level victories were overturned by senior leadership at CBP's Office of Rules and Regulations, nullifying the enforcement efforts.

Enforcement Breakdown

The pattern of staff-level findings being overturned by senior officials demonstrates a systematic failure in trade enforcement.

2024-2025: The Cycle Continues

Zero Duties, Pending Reviews

2024: Third Annual Review

DOC's Third Annual Review granted 0% duty to 22 PRC-based suppliers, effectively rewarding evasion behavior.

2025: Sunset Review Pending

Pending sunset review by ITC to determine if the industry is still "harmed" - despite ongoing transshipment and evasion.

Industry at Risk

The $12 billion industry employing 250,000 workers (95% family-owned companies) remains at risk due to continued duty evasion.

The Harsh Reality

"Despite favorable rulings, Chinese suppliers continue to transship product to evade duties and penalties, putting this $12 billion cottage industry employing 250,000 workers at risk."

"We spent over $10 million in legal fees to advocate for our membership, won decisive legal victories with unanimous votes and massive dumping margins, yet enforcement failures have rendered these victories meaningless."

"Imports of wood products such as cabinets and vanities have surged, undermining billions in U.S. investments and curbing U.S. job growth."

"When 7 out of 8 staff-level EAPA wins are overturned by senior leadership, the system is fundamentally broken."

$10 Million Spent. Perfect Legal Record. Zero Relief.

The Kitchen Cabinet Manufacturers Association represents an entire industry under siege from systematic trade fraud.

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