Accent furniture producers stung by antidumping ruling
By Jeff Linville -- Home Accents Today, 8/1/2004
Antidumping duties were intended to target Chinese bedroom furniture, but many accent/occasional companies are finding their goods hit as well.
A year ago, American case goods manufacturers came together to find a way to stay alive against the growing force of low-priced Chinese wood products. The occasional category has all but disappeared from U.S. plants.
Many accent occasional producers weren't worried about the petition because they don't produce bedroom furniture; and duties wouldn't make domestic companies more competitive because almost no U.S. companies produce accent furniture any more.
Shortly after the preliminary duty rates were announced June 18, several such companies were surprised to find their products would be slapped with duties ranging from Lacquer Craft's 4.9% to the People's Republic of China (PRC) rate of 198.08%.
Ultimate Accents had a shipment hit the docks with freestanding wall mirrors, occasional tables and television cabinets. The mirrors and cabinets were hit with the PRC rate of duties, totaling $22,000, said Ray Steele, director of sales and marketing.
Steele said Ultimate Accents sources its mirrors from three plants in China. Since none of the plants make bedroom furniture, the owners did not apply for the Section A rate of 10.92%.
Among the many accent items that could be considered for duties are wall mirrors, hall chests, bombé chests, lingerie chests and highboys, according to the International Trade Association.
Dresser/mirror combinations are common, and Steele assumed those were the types of mirrors to receive duties, but the ITA's wording says "framed glass mirrors that are attached to, incorporated in, sit on, or hang over the dresser." That includes most every mirror made, argued Steele.
It also encompasses every chest made. A chest is a case "featuring a series of drawers and with or without one or more doors for storing clothing." Also included, "a door chest is typically a chest with hinged doors to store clothing, whether or not containing drawers. The piece may also include shelves for televisions and other entertainment electronics."
While the guidelines don't specifically mention cheval mirrors, Butler Specialty was warned to expect duties on them, said Dan Sumner, vice president of sales and marketing. Cheval mirrors could go in a bathroom, walk-in closet or other room, Sumner said.
Chinese factories warned the Powell Co. that some occasional items that could be affected, but that doesn't mean the importer agrees with the classification.
The ITA's guidelines list is "a broadly worded document that leaves a tremendous amount of gray area," said Bill Benton, Powell president. He said he has spoken to petitioners who admitted the wording goes beyond what they intended.
Because of the ambiguity, Powell and Coaster Co. of America have retained counsel to argue on their behalf.
Ultimate Accents contacted its brokers and factories to figure how to counter the tariffs. Steele said he sent a company catalog and photos of the items hit with duties to his brokers who worked with government offices to reclassify the merchandise. Including shipments already on the water, Ultimate Accents was facing $134,000 in total duties, a hefty hit for a five-year-old company.
Steele said he addressed issues such as how the items are sold. Are the goods sold singly or as part of a suite? How are the goods intended to be used? After deliberation, the goods were reclassified, and the company owed no duties. While he is relieved, Steele is concerned he will continue to have problems with the way the U.S. customs agents interpret the list.
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| (Jeff Linville is a reporter for Furniture/Today, a sister publication to Home Accents Today.) |


























