DOC sets final duty rates for 2004–05
By Thomas Russell -- Furniture Today, August 19, 2007
Washington — The U.S. Department of Commerce has completed its first administrative review of antidumping duties on wood bedroom furniture from China, with new duties ranging from 0.53% for Shanghai Aosen Furniture to 216.01% for Starcorp Furniture Co.
The DOC also established an average 35.38% rate for 41 companies that sought a separate rate status.
The review, which began in early 2006, covers wood bedroom furniture shipments from China between June 24, 2004, and Dec. 31, 2005.
The new, and final, rates end months of uncertainty for the companies and their importers of record, which pay the duties on finished goods they buy from the Chinese manufacturers. Preliminary duties were first established in 2004.
For at least one Chinese factory, Starcorp, the final duty is higher than the preliminary figure, meaning the importers of record have to pay the difference. For some other factories the rates are lower, meaning they are eligible for a refund.
In the review, the DOC processed requests to examine more than 100 Chinese manufacturers.
A total of 57 companies were covered in the review, including the 41 that received the 35.38% rate status. Another 11 companies were denied this status, and five were granted mandatory respondent status. Those five factories received individual reviews, which gave them their own specific duties.
Another group of manufacturers either had their names taken off the review list or did not ship goods during the review period. Those that had their names removed will be assessed at Section A rates ranging from 6.65% to 7.24%, according to the DOC.
The DOC first set antidumping duties on Chinese wood bedroom producers in 2004.
The administrative review process allows U.S. furniture makers who originally petitioned the government for an antidumping investigation to name those manufacturers they believe warranted further review. Chinese companies that believe their duties are too high can also request an administrative review in hopes of lowering their duties.
The final results were better for some than others.
For instance, most mandatory respondents had their duties lowered from the preliminary rates released earlier this year. These companies sought to be reviewed because they claim they are not selling furniture in the U.S. market below cost.
The mandatory respondents and their new rates are:
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Fine Furniture Shanghai Ltd.: 1.97%, down from a preliminary rate of 2.13%.
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Foshan Guanqiu: 11.72%, down from 13.26%.
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Shanghai Aosen: 0.53%, down from 1.24%.
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Dare Group: 48.97%, down from 58.84%.
Starcorp Furniture Co., the fifth mandatory respondent, saw its duty raised from 74.69% to 216.01%. The International Trade Administration said that was because Starcorp "did not cooperate to the best of its ability in this administrative review."
Starcorp's legal counsel was not available for comment last week.
The 41 companies that applied for separate rate status had a preliminary duty of 62.94%, now lowered to 35.38%. For a full list of these companies, go online to: http://ia.ita.doc.gov/download/factsheets/factsheet-prc-wbf-080807.pdf
The 11 companies that were denied separate rate status now are subject to an all-China rate of 216.01%.
The effect of the new rates on some importers of record is unclear. For example, case goods importer Kemp Enterprises has imported bedroom product from Dare, but company principal Bill Kemp has formed a new import company called B.K. Home Furniture and has shifted some of its bedroom sourcing to Indonesia. Kemp was traveling and unavailable for comment.
Jake Jabs, CEO of Englewood, Colo.-based Top 100 chain American Furniture Warehouse, a big seller of imports, said his company received some Dare-produced bedrooms, but purchased them from Kemp Enterprises.
"We have always avoided being the importer of record," Jabs said, particularly in the case of Chinese-made bedrooms. "We were real careful."
David Thompson, president of Columbus, Ohio-based Top 100 chain American Signature, would not identify any of his major suppliers, but said they came through the review well.
"They are producing some great product, and it is good for the U.S. consumer," he said. Thompson added that despite the duties, furniture from China can still offer excellent value, with good quality and craftsmanship.
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