A few weeks ago we wrote about an anti-dumping petition for mattress innersprings brought by Leggett & Platt. Here is the five second overview: Leggett & Platt, along with these firms, Hickory, Sealy, Simmons, Spring Co., Symbol Mattress filed an anti-dumping petition alleging the US innerspring industry has been materially harmed by imports from China, Vietnam and South Africa. We heard from several of you and decided to do our own little investigation to better understand the petition, what those affected by the petition can do, and attempt to explain these anti-dumping petitions in greater detail.
You might stop reading this post because this specific anti-dumping case may have no relevance on you or your industry. But make no mistake about it the number of anti-dumping cases involving metal products is substantial. Of the 20 current cases in “Preliminary Phase Investigations” (which includes mattress innersprings), 50% relate to metal. You can check it out yourself here. But I digress. The point is, petitioning the USITC is a popular remedy for metals companies who feel they have been harmed. And, according to my trusted colleague and former global trade specialist Melissa Stephanou (I know her from my Deloitte Consulting days), these anti-dumping suits are on the rise.
I thought it would be helpful to list the companies that are involved from an importer/overseas manufacturer perspective. The US importers include: ad hoc Innersprings Importers’ Coalition including Paramount Industrial Co, China Logistic Partner Network Co., Pacific Spring Manufacturing, Lady Americana, Omaha Bedding, American Bedding, Sound Sleep, Texas Pocket Springs, Harvard Manufacturing, Therapedic/Eclipse, Emerald Home Furnishings, King Koil (Mid Atlanta), White Dove, Wickline, Diamond Mattress, Englander/Medi-pedic, H&A Trading, Tower Grove, W.J. Trading, King Koil Pennsylvania, and Blue Bell King Koil.
Foreign Manufacturers/Parties include: Baoding Yong’an Furniture Material Co, Nanjing Dongdai Furniture Co, Xilinmen Group, Hostwell Development Co, Foshan Jingxin Steel Wire & Spring, Wuxi Xihuisheng Trading Co, Nanjing Taihi Furniture Co, Nanjing Jinbang Qilin Mattress Co, Jiangsu Huihong Co, High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp., and China Chamber of Commerce for Import and Export of Light Industrial Products.
In short, if you are have been affected by this petition but are not on this list (or your manufacturer is not on this list), then now would be the time to get involved. Here are the stages all anti-dumping cases go through along with actual dates applied to this specific mattress innerspring case:
- Initiation by Commerce – 20 days after filing of petition – Issued on Jan 7
- Preliminary determination / Commissions investigation – 45 days after filing ” Issued on Feb 14. The Commission determined that there is a reasonable indication that the industry is materially injured. This starts the process of a full scale investigation regarding market conditions and financial information. US producers, US importers and foreign manufacturers/exporters received questionnaires. This was the basis in which the Commission agreed to hear the case.
- Preliminary determination / Commerce investigation – 115 days after Commission’s preliminary determination (June 6 ” 9, estimated) This is where Commerce will use the findings from the Commission to make their preliminary determination.
- Final determination / Commerce investigation ” 75 days after Commerce preliminary determination – TBA
- Final determination / Commission investigation ” 120 days after Commerce preliminary determination or 45 days after final determination, whichever is later – TBA
So what can you do? In stage 3 (current stage) this is when any party (importer, foreign producer, US producer of innersprings) can file an entry of appearance with the Secretary to the Commission to gain “party” status. This must be done 21 days before the scheduled hearing date. We would suggest that you do this now. Companies can also file to appear in the hearing. This will allow all parties the opportunity to prepare pre-hearing briefs and to establish their position as it relates to the documentation from the preliminary phase. It will also allow a company to stand up in front of the Commissioner during the public hearing to present arguments. The public hearing will occur approx 2.5 months into the final phase of the Commission’s investigation.
If this case interests you, make sure you are on our mailing list to receive additional updates. The clock is a tickin!