Lacquer Craft duties in review
Thomas Russell -- Furniture Today, January 1, 2006
Dongguan, China — Case goods manufacturer Lacquer Craft received one of the lowest duties of any manufacturer involved in last year's antidumping investigation.
Its 2.66% rate was only higher than Markor International Furniture, which received a rate of 0.83%, and Dongguan Dong He Furniture, at 2.32%.
But whether Lacquer Craft remains at that level depends on the results of an upcoming administrative review of the duties by the U.S. Department of Commerce.
In the past, company officials have said they expect the duty to drop even further. But in a prospectus issued during a November stock offering in Hong Kong, Lacquer Craft parent company Samson Holding Ltd. identified the review process as one of several risk factors for its business.
In that document, Samson said it was appealing the Department of Commerce's decision to subject Lacquer Craft to a duty in the U.S. Court of International Trade. Should that effort fail, it said the company will be subject to ongoing annual administrative reviews, which could either raise or lower its duty.
Samson voiced some concern at this prospect, particularly since wood bedroom furniture accounts for as much as 50% of Lacquer Craft's estimated $457.5 million in 2004 sales.
"A significant increase in our antidumping duty payments in the future would adversely affect our liquidity and cash flows," Samson said in the prospectus.
Between Jan. 5 and June 30 of 2005, the company said it deposited its share of the duties, $1.8 million in cash, with the U.S. Bureau of Customs and Border Protection.
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Lacquer Craft duties in review
Jan 3, 2006
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