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DOC confirms high duty rate for Malaysian innerspring supplier

Reztec found to use Chinese components

WASHINGTON — The U.S. Department of Commerce has made a final determination that Malaysian innersprings producer Reztec Inds. Sdn Bhd has been circumventing an antidumping order that places duties on Chinese-made uncovered innersprings units.

The decision is unchanged from a preliminary finding in July 2013 that Reztec was producing the innerspring units with components imported from China and shipping those products to the U.S.

The DOC said its final decision was unchanged because Reztec could not distinguish which of the innerspring units shipped to the U.S. contain Chinese-made components and which do not.

As a result, the company will need to pay a cash deposit rate of 234.51% on all units shipped to the U.S.

The inquiry, begun in the spring of 2012, resulted from allegations by Leggett & Platt, which uncovered the scheme. Leggett & Platt also was the lead petitioner that in late 2007 asked the U.S. government to investigate the pricing tactics of Chinese-made as well as Vietnamese and South African uncovered innerspring units primarily used in mattresses.

The government's investigation found that the U.S. innerspring producers such as Leggett & Platt were injured as a result of the unfair prices of these imports. Following this investigation the government imposed duties ranging from 164% to 234%.

These duties are placed on manufacturers, but paid by importers of record of the subject merchandise.

Leggett & Platt said it was pleased with the decision.

"Leggett & Platt supports the Department of Commerce's affirmative decision regarding Reztec's circumvention of the Chinese innersprings antidumping order," the company said. "We continue to pursue all available avenues to enforce the antidumping order as duty evasion continues to be an ongoing problem not only through circumvention, but also by means of illegal transshipment through other countries."

Reztec is now subject to duties of 234.51% on any innerspring units shipped to the U.S. on or after May 23, 2012.

 

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