Stanley Furniture receives nearly $40 million antidumping payment
Thomas Russell -- Furniture Today, April 26, 2012
STANLEYTOWN, Va. — Case goods resource Stanley Furniture confirmed this week that it has received nearly $40 million in funds held up due to litigation involving the distribution of duties on Chinese-made wooden bedroom furniture.
The company reported to the Securities and Exchange Commission that it received $39.9 million as of March 31.
The funds are part of the estimated $152 million in duties on wooden bedroom furniture that have been held by U.S. Customs and Borders in recent years. The government would normally distribute this money to U.S. manufacturers each year under the Continued Dumping and Subsidy Offset Act, also known as the Byrd Amendment.
The government distributes the funds to manufacturers that supported the antidumping petition involving Chinese-made wooden bedroom. The duties themselves are aimed at leveling the playing field for domestic producers that have been injured due to unfairly priced imports.
The Byrd Amendment was repealed in early 2006, but manufacturers can still receive duties collected by October 2007. Some of the duties collected up to that point, including the $152 million held up, are still being distributed because they are still being liquidated, or cleared through Customs.
Some domestic furniture producers, including Ashley, Standard Furniture, Ethan Allen and Furniture Brands International, challenged the constitutionality of the Byrd Amendment requirement that the duties only go to those who supported the petition. In litigation that has dated back to 2007, the furniture companies argued that this was a violation of free speech.
The Stanley portion of the funds represents a significant portion of the more than $150 million in wooden bedroom furniture duties held up due to the litigation. It was not immediately clear how much the other individual petitioners in the wooden bedroom case are slated to receive.