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2006 duty disbursements come to $21.8M ... so far

Pending lawsuits may affect future payouts

By Heath E. Combs -- Furniture Today, April 22, 2007

High Point — In late 2006, the U.S. Department of Customs and Border Protection paid an initial $21.8 million to petitioners from antidumping duty money collected from importers of Chinese-made wood bedroom furniture starting in June 2004.

However, the total amount allotted is just a fraction of what could be distributed. Customs is holding an additional $156.6 million that has been collected in wooden bedroom furniture duties in a clearing account.

The clearing account funds comprise initial duties importers paid to Customs between June 2004 and December 2005, based on rates they received from the Department of Commerce. The average rate, or the Section A rate, is currently 7.24%.

The future of those funds will be determined by a final decision from DOC expected between June and August of this year. The decision marks the end of the first administrative review, a review of rates conducted by the DOC which looks at specific importers upon whom the average is based.

The clearing account money may be refunded to importers based on the DOC's final determination if the average rate is decided to be lower than the Section A rate.

Pending the outcome, importers of record also might owe significantly more money if the rate goes up and companies become responsible for retroactive duties.

A total of $31.8 million in funds was allotted for distribution last year, representing an amount collected from importers that were not reviewed during the first administrative review process.

But the government has held back $9.9 million in collected duties pending the outcome of lawsuits by Standard and Furniture Brands International, which seek a portion of the duties. Furniture Brands claims it is owed $6.3 million of the funds.

Neither of the companies supported the antidumping petition initiated in 2003.

The 2006 payment followed a small disbursement in 2005 that totaled $144,159.

Disbursements to the petitioners are based on the amount of wood bedroom furniture the companies produce in the United States.

The antidumping petition was filed to determine if Chinese-made wood bedroom furniture was being dumped in the United States at below cost. Standard's and FBI's cases hinge on pending litigation related to cases in the ball bearing and crayfish industries, whose outcomes may have implications for the distribution of antidumping duties.

Antidumping duties received in 2006
Initial totals paid in 2006 by U.S. Customs and Border Protection in dumping duties to furniture companies. Total, $21.8 million.
1. Stanley Furniture	$5.37 million
2. Vaughan-Bassett Furniture	$3.84 million
3. Bassett Furniture	$1.54 million
4. Kincaid Furniture	$1.51 million
5. American of Martinsville	$1.48 million
6. Vaughan Furniture	$1.15 million
7. Sandberg Furniture	$953,147
8. Lea Inds.	$902,873
9. Johnston Tombigbee	$811,330
10. Higdon Furniture	$602,102
11. L&JG Stickley	$574,808
12. Perdues Inc.	$505,294
13. Carolina Furniture Works	$503,777
14. Century Furniture	$374,183
15. Mobel Inc.	$397,040
16. Michels & Co.	$388,767
17. Moosehead Mfg.	$202,589
18. MJ Wood Products	$180,774
19. T. Copeland & Sons	$176,313
20. Vermont Quality Wood Products	$160,740
21. Harden Furniture	$92,411
22. Tom Seely Furniture	$90,957
23. Bebe Furniture	$36,899

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