U.S. Dept. of Commerce Finds Dumping by Chinese Mattress Producers

May 31, 2019  by Laurie Northington in Business Strategy, Industry   

The “Mattress Petitioners” include Corsicana Mattress Company, Elite Comfort Solutions, Future Foam Inc., FXI, Inc., Innocor, Inc., Kolcraft Enterprises Inc., Leggett & Platt, Incorporated, Serta Simmons Bedding, LLC, and Tempur Sealy International, Inc.  

Commerce announced dumping margins of 38.56 to 84.64 percent for the two mandatory respondents (Healthcare Co., Ltd. and Zinus (Xiamen) Inc.) and applied dumping margins of 74.65 percent to the 33 separate rate companies that demonstrated independence from the Chinese government and 1,731.75 percent to all other Chinese producers, which are referred to collectively as the China-Wide entity. The dumping margin is the difference between the Chinese producers' U.S. prices and a normal value calculated under U.S. trade law.

"We are thrilled that Commerce has confirmed that Chinese producers are relying on significant dumping margins to unfairly compete in the U.S. market with margins as high as 1,731.75 percent," said Yohai Baisburd, lead counsel to the Mattress Petitioners.  

The preliminary determination will be published in the Federal Register within a week or so at which time U.S. Customs and Border Protection ("CBP") will commence collecting cash deposits of dumping duties based on these margins. These dumping duties are in addition to the 25 percent "Section 301" duties the United States has imposed on a variety of Chinese goods, including mattresses.

"Today's announcement and the collection of dumping duties are necessary steps to allow us and the whole U.S. mattress industry to compete on a level playing field with Chinese producers," said Christos Chrisafides, president of Elite Comfort Solutions.  

Commerce also found "critical circumstances" with respect to the separate rate companies and the China-wide entity because of a surge in imports after this case was filed on September 18, 2018.  CBP will be instructed to collect the cash deposits of dumping duties retroactively for 90 days from importers of mattresses covered by the critical circumstances finding.

The Mattress Petitioners believe this action is essential to ensure that the U.S. mattress industry can compete on a level playing field and to allow for future reinvestment and growth for the entire U.S. industry.  For additional information, contact the Mattress Petitioners lead counsel, Yohai Baisburd of Cassidy Levy Kent (USA) LLP, at 202-567-2319.