For Immediate Release
April 21, 2020
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam are being sold in the United States at less than fair value, and to determine if producers in China are receiving unfair subsidies.
The petitions were filed by Brooklyn Bedding (Phoenix), Corsicana Mattress Company (Dallas), Elite Comfort Solutions (Newman, Ga.), FXI, Inc. (Media, Pa.), Innocor, Inc. (Media, Pa.), Kolcraft Enterprises, Inc. (Chicago), Leggett & Platt, Inc. (Carthage, Mo.), International Brotherhood of Teamsters (Washington, D.C.), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (Washington, D.C.).
In the AD investigations, Commerce will determine whether imports of mattresses from these seven countries are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
- 326.497 – 675.83 percent for Cambodia;
- 213.44 – 429.74 percent for Indonesia;
- 42.92 percent for Malaysia;
- 57.37 – 183.16 percent for Serbia;
- 414.77 – 763.28 percent for Thailand;
- 267.55 – 609.51 percent for Turkey; and,
- 481.72 – 989.90 percent for Vietnam.
In the CVD investigation, Commerce will determine whether producers of mattresses in China are receiving unfair government subsidies. For China, there are 19 alleged subsidy programs, including loan programs, export credit programs, tax programs, grant programs and less than adequate remuneration programs.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and/or Vietnam materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The 2019 imports of mattresses from the countries under investigation were valued as follows:
- $33.1 million for Cambodia;
- $166.7 million for China;
- $102.6 million for Indonesia;
- $38.6 million for Malaysia;
- $24.1 million for Serbia;
- $18.7 million for Thailand;
- $19.4 million for Turkey; and,
- $166.6 million for Vietnam.
During Commerce’s investigations into whether mattresses from these countries are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations on or before May 15. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for June 24, and preliminary AD determinations scheduled for September 8, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing mattresses from these countries, as appropriate.
Final determinations by Commerce in these cases are scheduled for September 8, for the CVD investigation, and November 23, for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 238 new AD and CVD investigations – this is a 213 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 523 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits their production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.