Antidumping duties (ADs) are a type of additional import duty assessed on the importer of record when covered merchandise is imported into the U.S. in order to undercut competition in the U.S. market.  In order for merchandise to be considered "dumped", there must be a finding by the Department of Commerce that it is being sold to purchasers in the U.S. at a price less than the "fair-market value" (i.e., the price at which it is normally sold in the manufacturer's home-market).  If the home-market is found to be a state-sponsored "non-market economy" (such as the economy in the People's Republic of China [PRC]), then the home-market price is calculated via pricing-data derived from another similarly situated economy (such as India's economy).

The American Furniture Manufacturers Committee for Legal Trade (AFMC) is composed of approximately 30 mid-sized U.S. furniture manufacturers.  Last August, the AFMC held an industry roundtable, and expressed its intent to submit the antidumping petition.  The charges represent that Chinese furniture makers "dump" products in the United States at below-market costs.  Accordingly, the Coalition indicated that its goal would be to obtain antidumping relief against China Furniture through the imposition of antidumping duties, possibly as early as March or April of 2004. 

This petition, filed on October 31, 2003, is seen by many as an inevitable, last-ditch effort by the U.S. industry to stave off imports resulting from cheaper foreign labor.  In the U.S., more than two dozen furniture factory closings have occurred this year alone.  According to the AFMC, between the years 2000 and 2002, U.S. companies reported a 21 percent drop in domestic shipments of wooden bedroom furniture, while shipments from China increased by 121 percent. 

The AFMC's recent AD petition alleges that India should be used as a "surrogate" country (since China is generally considered a non-market economy), and has thereby calculated dumping margins as appropriately ranging from 158.74 percent to 440.96 percent.  Under these calculations, the average antidumping duty rate would be approximately 250 percent of the cost of the pieces coming in to the United States from China.  If imposed, such antidumping duties would be paid by the U.S. importers of record for the purpose of offsetting the "margin" of dumping and restoring "fair" competition to the market.

Copyright © 2003 by Tuttle Law Offices.

All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.