New Trade Case on Imports of Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam
A new U.S. antidumping (“AD”) and countervailing duty (“CVD”) case was filed on March 31, 2020, by Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., Leggett & Platt, Incorporated, the International Brotherhood of Teamsters, and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, AFL-CIO (“USW”) (collectively, the “Petitioners”) against imports of mattresses from the Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam.
The subject merchandise covered by these petitions is all types of youth and adult mattresses. The term “mattress” denotes an assembly of materials that at a minimum includes a “core,” which provides the main support system of the mattress, and may consist of innersprings, foam, other resilient filling, or a combination of these materials. The scope of these petitions is restricted to only “adult mattresses” and “youth mattresses.” “Adult mattresses” are frequently described as “twin,” “extra-long twin,” “full,” “queen,” “king,” or “California king” mattresses. “Youth mattresses” are typically described as “crib,” “toddler,” or “youth” mattresses. All adult and youth mattresses are included regardless of size or size description
The petition includes a CVD (unfair subsidy) allegation against China and AD (less than fair value) allegations against Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigation. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the case will move to the DOC which will calculate the preliminary AD and CVD duty margins.
The DOC’s preliminary determinations are currently scheduled for June 24, 2020 (CVD) and September 7, 2020 (AD), which are the dates when importers will be required to deposit the calculated duties upon the products’ entry in the U.S. market.
There is a strict statutory deadline associated with this proceeding and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.
The following are key facts about this trade case:
Petitioners: Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., Leggett & Platt, Incorporated, the International Brotherhood of Teamsters, and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (“USW”)
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
Alleged AD and CVD margins: Petitioners have alleged the following AD and CVD margins:
- Cambodia: a calculated AD margin of 708.10%
- China: a CVD margin above de minimus
- Indonesia: a calculated AD margin of 706.28%
- Malaysia: a calculated AD margin of 47.97%
- Serbia: a calculated AD margin of 191.09%
- Thailand: a calculated AD margin of 773.49 %
- Turkey: a calculated AD margin of 620.07%
- Vietnam: a calculated AD margin of 1,008.28%
Merchandise covered by the scope of the case:
The products covered by these petitions are all types of youth and adult mattresses. The term “mattress” denotes an assembly of materials that at a minimum includes a “core,” which provides the main support system of the mattress, and may consist of innersprings, foam, other resilient filling, or a combination of these materials. Mattresses may also contain (1) “upholstery,” the material between the core and the top panel of the ticking on a single-sided mattress, or between the core and the top and bottom panel of the ticking on a double-sided mattress; and/or (2) “ticking,” the outermost layer of fabric or other material (e.g., vinyl) that encloses the core and any upholstery, also known as a cover.
The scope of these petitions is restricted to only “adult mattresses” and “youth mattresses.” “Adult mattresses” are frequently described as “twin,” “extra-long twin,” “full,” “queen,” “king,” or “California king” mattresses. “Youth mattresses” are typically described as “crib,” “toddler,” or “youth” mattresses. All adult and youth mattresses are included regardless of size or size description.
The scope encompasses all types of “innerspring mattresses,” “non-innerspring mattresses,” and “hybrid mattresses.” “Innerspring mattresses” contain innersprings, a series of metal springs joined together in sizes that correspond to the dimensions of mattresses. Mattresses that contain innersprings are referred to as “innerspring mattresses” or “hybrid mattresses.” “Hybrid mattresses” contain two or more support systems as the core, such as layers of both memory foam and innerspring units.
“Non-innerspring mattresses” are those that do not contain any innerspring units. They are generally produced from foams (e.g., polyurethane, memory (viscoelastic), latex foam, gel-infused viscoelastic (gel foam), thermobonded polyester, polyethylene) or other resilient filling.
Mattresses covered by the scope of these petitions may be imported independently, as part of furniture or furniture mechanisms (e.g., convertible sofa bed mattresses, sofa bed mattresses imported with sofa bed mechanisms, corner group mattresses, day-bed mattresses, roll-away bed mattresses, high risers, trundle bed mattresses, crib mattresses), or as part of a set in combination with a “mattress foundation.” “Mattress foundations” are any base or support for a mattress. Mattress foundations are commonly referred to as “foundations,” “boxsprings,” “platforms,” and/or “bases.” Bases can be static, foldable, or adjustable. Only the mattress is covered by the scope if imported as part of furniture, with furniture mechanisms, or as part of a set, in combination with a mattress foundation.
Excluded from the scope of these petitions are “futon” mattresses. A “futon” is a bi-fold frame made of wood, metal, or plastic material, or any combination thereof, that functions as both seating furniture (such as a couch, love seat, or sofa) and a bed. A “futon mattress” is a tufted mattress, where the top covering is secured to the bottom with thread that goes completely through the mattress from the top through to the bottom, and it does not contain innersprings or foam. A futon mattress is both the bed and seating surface for the futon.
Also excluded from the scope are airbeds (including inflatable mattresses) and waterbeds, which consist of air- or liquid-filled bladders as the core or main support system of the mattress.
Further, also excluded from the scope of these petitions are any products covered by the existing antidumping duty orders on uncovered innerspring units from China or Vietnam. See Uncovered Innerspring Units from the People’s Republic of China: Notice of Antidumping Duty Order, 74 Fed. Reg. 7661 (Feb. 19, 2009); Uncovered Innerspring Units From the Socialist Republic of Vietnam, 73 Fed. Reg. 75391 (Dec. 11, 2008).
Additionally, also excluded from the scope of these petitions are “mattress toppers.” A “mattress topper” is a removable bedding accessory that supplements a mattress by providing an additional layer that is placed on top of a mattress. Excluded mattress toppers have a height of four inches or less.
The products subject to these petitions are currently properly classifiable under HTSUS subheadings: 9404.21.0010, 9404.21.0013, 9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products subject to these petitions may also enter under HTSUS subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000, and 9401.90.5081. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to these petitions is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (firstname.lastname@example.org; 202-640-6680), Kevin Williams (email@example.com; 312-985-5907); William Sjoberg (firstname.lastname@example.org; 202-772-0924), Courtney Gayle Taylor (email@example.com; 202-552-2350); or another member of Clark Hill's International Trade Business Unit.
The Current Whipsaw in Labor Law: Recent NLRB Developments and the Direction of the Biden Administration
While President Biden makes historic decisions, such as the firing of the NLRB’s General Counsel in January, many employers are wondering what impact “Biden’s NLRB” will have on their workforce. As new board members are confirmed, what changes should employers expect from the new NLRB?
FAQs: Mandatory COVID-19 Vaccines and the Automotive & Manufacturing Industries
Join us for a presentation where we will share the considerations, implications, and answer your frequently asked questions surrounding the implementation of mandatory COVID-19 vaccines.
The Basics: A Quick, But Important, Primer on Handling Fidelity Bond Claims Webinar
As workplaces across America open up this summer, now is the perfect time for a tune up on handling fidelity bond claims. Join a team of Clark Hill fidelity attorneys who will provide an overview of fidelity, coverage, noteworthy cases reported during the pandemic, key coverages and strategies for navigating a wide variety of claims.