Washington, DC, December 13--A U.S. trade panel on Friday approved anti-dumping duties of up to 198 percent on $1.2 billion worth of wooden bedroom furniture from China. However, many Chinese furniture companies will escape the highest duty levels.
The U.S. International Trade Commission voted 6-0 that low-priced imports from China were a threat to domestic producers. The action clears the way for the Commerce Department to issue a final anti-dumping order on the imports by the end of the year.
China has complained the duties violate World Trade Organization rules. The case was the largest U.S. anti-dumping action yet against China. It also split the U.S. furniture industry, with most manufacturers strongly in favor of the duties and most retailers strongly opposed.
At the same time, the amount of "dumping" -- or selling in the U.S. market at prices below fair market value -- found by the Commerce Department in its investigation was much less than U.S. furniture manufacturers alleged.
The industry's original petition -- filed by a group of nearly 30 manufacturers including Stanley Furniture Co., Bassett Furniture Industries Inc. and subsidiaries of La-Z-Boy Inc. -- asked for a 440 percent duty on beds, chests, wardrobes, desks, bookcases and other furniture from the Asian manufacturing giant.
Furniture Retailers of America, which includes Rooms to Go and Haverty Furniture Cos., have vehemently fought the duties. Michael Veitenheimer, vice president of the Bombay Co and a spokesman for the group, said they were a needless tax on consumers that "will not bring any jobs back to the United States, nor protect those that are still here."
But Joe Dorn, an attorney representing the furniture manufacturers, said preliminary duties in force since June have had a positive impact. "We think that these duties are going to make a difference with keeping jobs in the United States and stemming the exodus to China," he said.
Furniture manufacturers also plan to push next year for legislation that would require country-of-origin labels on furniture sold in the United States.
The final duties fall into several categories, with the highest rate of 198 percent hitting only one major Chinese furniture manufacturer, Tech Lane Wood Manufacturing, in addition to tens of thousands of smaller companies that account for a tiny fraction of China's shipments to the United States.
Commerce also excluded another major Chinese company, Markor International Furniture, from the duties after it found a dumping rate of less than 1 percent.
Five other major companies, that, along with Tech Lane and Markor, account for about 34 percent of China's wooden furniture exports to the United States, will face duties ranging from 2.22 percent to 16.70 percent.
A group of 115 companies, that Commerce determined to be free of Chinese government control, will be hit with a duty of 8.64 percent. Those firms account for about 65 percent of China's exports, according to U.S. aides.
