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Preliminary Determination Sets China-Wide Rate at 198.08% for Antidumping Duties on Wooden Bedroom Furniture (WBF)

June 18, 2004

The International Trade Administration (ITA) has issued a fact sheet summarizing its preliminary determination on Wooden Bedroom Furniture (WBF) from China furniture on June 18, 2002.   The scope language of the preliminary determination is described on the fact sheet.

Preliminary Dumping Margins:

PRODUCER/EXPORTER
MARGIN
Dongguan Lung Dong Furniture Co., Ltd. and Dongguan Dong He Furniture Co., Ltd (Dongguan Lung Dong)
7.04
Rui Feng Woodwork Co., Ltd., Rui Feng Lumber Development Co., Ltd., and Dorbest Limited (Dorbest Group)
19.24
Lacquer Craft Manufacturing Company, Ltd. (Lacquer Craft)
4.90
Markor International Furniture (Tianjin) Manufacture Co., Ltd. (Markor Tianjin)
8.38
Shing Mark Enterprise Co., Ltd., Carven Industries Limited (BVI), Carven Industries Limited (HK), Dongguan Zhenzin Furniture Co., Ltd., and Dongguan Yongpeng Furniture Co., Ltd. (Shing Mark)
6.59
Starcorp Furniture (Shanghai) Co., Ltd., Orin Furniture (Shanghai) Co., Ltd., and Shanghai Starcorp Furniture Co., Ltd. (Starcorp)
24.34
Tech Lane Wood Mfg. and Kee Jia Wood Mfg. (Tech Lane)
9.36
Section A Respondents (Separate Rates)**
10.92
PRC-wide Entity
198.08

** Chinese manufacturers who participated in the Section A questionnaire were entitled to Separate-rate status
(an antidumping duty rate based on a weighted-average of the mandatory respondents' rates, rather than the PRC-wide rate).


What This Preliminary Determination Means For Importers of
China Wooden Bedroom Furniture


The date of the ITA's preliminary determination is particularly important to because:

  1. Importers will now be required to post a bond or make a cash deposit of the estimated dumping duties, pursuant to the terms of T.D. 85-145, on all entries for consumption or withdrawals from warehouse made on or after June 18th, 2004.

  2. The liquidation of entries or warehouse withdrawals of WBF made on or after June 18th will be suspended until the final determination is made.

The ITA and the ITC will next issue final determinations as to the dumping rates, and domestic injury, whereupon, if both determination are affirmative, the final antidumping order will be signed into effect.   At that time:

  1. Importers will be required to make deposits of AD on all suspended entries at the final applicable AD rate as determined by Commerce after the liquidation of the entry, unless the issues for a particular supplier are contested before the Court of International Trade.

  2. Cash deposits for AD will be required at the final rates on entries or warehouse withdrawals after the date of the AD order.

According to the ITA, the timetable for these events is as follows:

ITA Timetable

ITA Final Determination November 5, 2004 (Fully Extended)
ITC Final Determination December 20, 2004
Signature of Order (Estimated) December 27, 2004

Judicial Review

An importer will have the right to request judicial review of the determination of the antidumping margin if they have participated in the annual review before the ITA.   Hence, companies should determine at this time whether they wish to participate in the review of the margins which have been determined.   Without such participation, the importer or exporter will lack standing to participate in any judicial review of the antidumping orders.

Planning Options

Importers wishing to clarify their potential liability under the scope provisions are now in a difficult period of uncertainty.   Under the AD regulations, the period for submission of scope comments has passed, and scope rulings cannot yet be obtained until an actual AD order is issued.

Importers who believe that their products may be covered by the order may wish to begin planning information collection procedures to assist in later submissions for annual reviews to contest the AD order.

Finally, companies with a large exposure may choose to cease manufacturing the bedroom furniture in the PRC or plan for multi-stage manufacturing, in which initial manufacturing operations occur in China, but final manufacturing operations are performed in a third country.   This strategy requires careful legal consideration of a proper and legal plan for third-country manufacture.   Such planning considerations take into account statutory requirements, the historical case law, and administrative decisions by Commerce as to the adequacy of such third-country manufacturing.

A failure to adequately review such alternative manufacturing plans may expose an importer to the U.S. antidumping circumvention laws, which could result in AD liability plus the imposition of civil and/or criminal penalties for improper or fraudulent AD avoidance.

Based on this preliminary finding of AD duties, the Final Commerce determination will be due November 1, 2004.   Prior to that time, importers wishing to obtain scope decisions from the ITA should prepare scope requests for immediate filing as of the issuance of the final AD order.

If the final Commerce determination is also affirmative, then the ITC will issue a final injury determination on or prior to due December 16, 2004.

If you have any questions on any of the issues raised in this newsletter, please contact Stephen Spraitzar at (415) 288-0427 or via email at sss@tuttlelaw.com.

Stephen Spraitzar is an attorney with the Law Offices of George R. Tuttle in San Francisco.   The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright 2005 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.

 

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