U.S. Commerce Department's Preliminary Ruling on Fiberglass Door Panel Subsidies From China

On August 19, 2025, the U.S. Department of Commerce made a significant announcement regarding the fiberglass door panel industry. It has determined that the Chinese government is providing substantial subsidies to manufacturers of fiberglass door panels, leading to preliminary countervailing duty rates ranging from 59.17% to 921.42%.

These preliminary findings reveal the extent of subsidies granted to various manufacturers in China. Notable company-specific results include a subsidy rate of 71.37% for panels produced by Dalian Capstone Engineering Co., Ltd., which are distributed by Trinity Glass, Inc. Other notable subsidies include 59.17% for Jiangxi Fangda Tech Co., Ltd., a key supplier to Steves and Sons, Inc., and Trimlite LLC. In contrast, those companies that did not cooperate with the investigation have been levied with the highest rate of 921.42%. This group includes companies such as Lily Industries Co., Ltd. and Zhejiang Kuchuan Door Co., Ltd., which has prompted scrutiny under U.S. trade regulations.

The American Fiberglass Door Coalition, a representative body for major U.S. fiberglass door manufacturers, has praised the Commerce Department’s decision. Tim Brightbill, the Coalition's co-lead counsel, stated, "This decision by the Department of Commerce is another important step in leveling the playing field for American fiberglass door panel manufacturers. We anticipate a final determination that will be favorable to U.S. producers as well."

Following the anticipated publication of the Department of Commerce's preliminary determination in the Federal Register within a week, U.S. Customs and Border Protection will be directed to suspend liquidation and start collecting preliminary duties in cash deposits on all entries concerning fiberglass door panels from China. However, it is vital to note that these determinations are still preliminary; final duty rates may differ based on ongoing investigations into potential additional subsidies.

Commerce's final decisions on these subsidies are expected in early March 2026, but will occur after the announcement of preliminary antidumping rates in mid-October 2025. The layering of these two duties may invite further complicating factors into trade relationships. According to Robert E. DeFrancesco, a partner at Wiley's International Trade Practice, the preliminary findings by the Commerce Department highlight the importance of addressing unethical pricing practices and illegal subsidies in the market.

The implications of these findings extend far and wide, as they will impact import costs for U.S. consumers and influence the dynamics of the domestic fiberglass door panel market. Duty evasion, absorption of duties by foreign manufacturers, and any circumvention attempts have not gone unnoticed. U.S. Customs is prepared to monitor compliance heavily alongside the Commerce Department.

The Coalition's legal team, which played an instrumental role in this inquiry, comprises experts like Derick G. Holt and Jeffrey O. Frank, among others, who have actively engaged in promoting fair trade practices.

As the controversy surrounding subsidies continues to unfold, the domestic fiberglass industry hopes to see a favorable resolution that protects U.S. manufacturers while ensuring fair trade practices are observed. The outcome of this ruling could mark a turning point for the American fiberglass door panel industry in its ongoing battle against subsidized competition from overseas.

The importers will need to remain vigilant as subsequent legal and regulatory changes evolve in light of the Commerce Department's investigations.

For further inquiries, representatives from the Coalition, including Robert E. DeFrancesco and Timothy C. Brightbill, can provide additional insights and updates on this case.