DOC investigates Reztec for circumventing duties
July 26, 2013,
WASHINGTON - The U.S. Department of Commerce has made a preliminary determination that a Malaysian manufacturer is circumventing duties on imported uncovered innerspring units.
The DOC determined that Reztec Inds. Sdn Bhd is assembling components made in China and exporting them to the U.S. as finished uncovered innersprings units. Such units are largely used in mattresses.
The U.S. International Trade Commission approved the imposition of duties in January 2009. In addition to China, the antidumping order also places duties on uncovered innerspring units from Vietnam and South Africa.
Such duties are assigned to manufacturers but are mostly paid by importers of record. They are aimed at protecting U.S. manufacturers from unfair competition caused by unfairly priced imports.
The DOC launched its investigation into Reztec in May 2012 after Leggett & Platt, a lead petitioner in the innersprings case, uncovered the evasion scheme.
The DOC is requiring a cash deposit of estimated duties on all innersprings units produced by Reztec or entered or withdrawn from the warehouse on or after May 23, 2012, the date the DOC began its inquiry.
The DOC is also accepting public comments for 30 days after the July 11 publication of the Reztec notice in the Federal Register. It will issue a final determination on Aug. 16.