Giambrone & Partners instructed in an Anti-dumping Duty Petition and a Countervailing Duty Petition involving the Mattress Industry Sector

Giambrone & Partners is currently representing a number of companies engaged in exporting mattresses and associated components to the USA following a maxi anti-dumping investigation conducted by the USA International Trade Commission in connetion with the Italian, Spanish and USA markets. 

Dumping is a commercial activity involving what is considered unfair competition in two areas of the market. One is where a products are sold at a price below the cost of production the other is when companies export products to a target market at a far lower price than the price in their home market. Dumping may be as a result of state subsidies extended to companies in their home country, or due to overproduction resulting in surplus goods being sold abroad below value.

This is a significant legal action and on July 28, 2023, twelve anti-dumping duty ("AD") petitions and one countervailing duty ("CVD") petition were filed by: Brooklyn Bedding LLC; Carpenter Co.; Corsicana Mattress Company; Future Foam, Inc.; FXI, Inc.; Kolcraft Enterprises, Inc.; Leggett & Platt, Incorporated; Serta Simmons Bedding, LLC; Southerland, Inc. Tempur Sealy International; and the International Brotherhood of Teamsters, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (collectively, the " Petitioners") against mattress imports. The 12 countries named in the anti-dumping duty petitions are Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, Philippines, Poland, Slovenia, Spain, and Taiwan. The only country mentioned in the CVD petition, however, is Indonesia.

The goods covered by these petitions are certain types of mattresses, including innerspring and non-innerspring mattresses (including hybrid mattresses). In the industry, the term "mattress" generally means a resilient material or combination of materials in enclosed cover, intended for the rest of individuals.

All the products covered by existing antidumping duty orders on non-covered spring units from China, South Africa and Vietnam are excluded from the scope of these petitions, as are mattresses with water or air bladder cores.

The products that are covered by these petitions are currently classifiable under HTSUS subheadings: 9404.21.0010, 9404.21.0013, 9404.21.0095, 9404.29.1005, 9404.29.1013, 9404.29.1095, 9404.29.9085, 9404.29.9087, 9404.29.9095. The products covered by these petitions can also enter HTSUS subheadings: 9401.41.0000, 9401.49.0000, and 9401.99.9081. Although the HTSUS subheadings are provided for convenience and customs purposes, the description of the goods involved is crucial.

The Department of Commerce ("DOC") and the International Trade Commission ("ITC") will conduct the investigation and within the next 45 days the ITC will determine whether there is a reasonable indication that the imports are harming or threatening the U.S. domestic industry. If the ITC finds that this damage is proven and actual, the matter will move to the DOC, which will calculate preliminary AD and CVD duty margins.

The DOC's preliminary determinations are expected on October 23, 2023 (CVD) and January 4, 2024 (AD). Once the preliminary determinations are known, the importers will have to file the duties calculated when the products enter the U.S. market.

Importers should also be aware that imports may be subject to AD/CVD cash deposits 90 days prior to the DOC preliminary determinations. If the DOC and ITC issue a finding of "critical circumstances," meaning that imports have increased by at least 15% since the petition was filed, compared to a similar period (typically three months) prior to the petition.

There are strict legal deadlines associated with these proceedings and affected companies are advised to act and protect themselves, through all necessary countermeasures, as soon as possible.

Here are the main elements of this dispute:

• The Petitioner: Petitioners named above. 
• Please contact us for a list of individual importers and exporters named in the petition.
• The following AD/CVD margins have been alleged:

• Bosnia and Herzegovina: calculated a dumping margin of 321 percent, ad valorem;
• Bulgaria: calculated a dumping margin of 117 percent, ad valorem;
• Burma: calculated a dumping margin of 154 percent, ad valorem;
• India: calculated a dumping margin of 61 percent, ad valorem;
• Italy: calculated a dumping margin of 200 percent, ad valorem;
• Kosovo: calculated a dumping margin of 915 percent, ad valorem;
• Mexico: calculated a dumping margin of 92 percent, ad valorem;
• The Philippines: calculated a dumping margin of 497 percent, ad valorem;
• Poland: calculated a dumping margin of 43 percent, ad valorem;
• Slovenia: calculated a dumping margin of 1,094 percent, ad valorem;
• Spain: calculated a dumping margin of 66 percent, ad valorem;
• Taiwan: calculated a dumping margin of 738 percent, ad valorem; and
• Indonesia: countervailing duty margins above de minimis.

For more information please do not hesitate to reach out to us. 

Vincenzo Senatore, LL.M. – vincenzo.senatore@giambronelaw.com

Alessandro Gravante PhD - alessandro.gravante@giambronelaw.com