Furniture antidumping petition gains momentum: furniture companies allege that the prices of imported Chinese wood bedroom furniture violate U.S. trade laws.A coalition of furniture manufacturers plans to target imports of Chinese wood bedroom furniture in an antidumping an·ti·dump·ing adj. Intended to discourage importation and sale of foreign-made goods at prices substantially below domestic prices for the same items. petition to be filed this fall with the Department of Commerce and the U.S. International Trade Commission. The group, American Furniture Manufacturers Committee for Legal Trade, quickly expanded from 15 founding companies to 28 companies. IL represents a geographic cross-section of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and also includes a pair of Canadian-based companies that sell much of their products to the U.S. market. The committee, which covers virtually all price points within the bedroom furniture category; alleges that Chinese manufacturers are selling products at artificially low prices. This "dumping," the committee claims, is crippling the ability of domestic manufacturers to fairly compete and forcing many to curtail or close their U.S. manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . If the petition is successful, bedroom furniture imported from China will be subject to antidumping duties. "The future of the domestic furniture industry is at stake," said Paul Broyhill, former president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Broyhill Furniture Co. and a spokesman for the committee. "If nothing is done, more factories in the United States will continue to close and more jobs will be lost in the U.S. and shifted overseas." Furniture Workers Support Petition The antidumping movement gained further momentum July 29 when 98% of 3,300 employees at 10 plants operated by Vaughan-Bassett, Vaughan Furniture and Webb Furniture affixed af·fix tr.v. af·fixed, af·fix·ing, af·fix·es 1. To secure to something; attach: affix a label to a package. 2. their names to a declaration supporting the antidumping petition. (See box page 62) Doug Bassett of Vaughan-Bassett Furniture Co. and a spokesman for the committee, said the support by a majority of workers at the three Galax galax: see diapensia. , VA-based companies made them duty bound to follow through with the petition filing. He said he expects workers employed by some of the other 25 companies belonging to the coalition to take similar action ill coming weeks. "The petition grows stronger with the combination of worker and employer support," Bassett said. He added that the employee votes send a message to workers at companies not currently participating in the coalition that they could force their employers to get involved if a majority of the workers signed a similar declaration supporting the antidumping petition. Supplier Support Sought In another development, the Committee for Legal Trade invited suppliers to the domestic furniture industry to attend an Aug. 12 meeting in Greensboro to learn more about the antidumping petition. "I implore im·plore v. im·plored, im·plor·ing, im·plores v.tr. 1. To appeal to in supplication; beseech: implored the tribunal to have mercy. 2. you to attend and participate in this meeting to learn more about how we are trying to level the playing field and promote free, fair and legal trade," wrote John Bassett John White Hughes Bassett, PC , OC , O.Ont (August 25, 1915 – April 27, 1998) was a Canadian publisher and media baron. Born in Ottawa, Ontario, he was the son of John Bassett (1886-1958), publisher of the Montreal Gazette, and Margaret Avery. III, president and CEO of Vaughan-Bassett Furniture Co., in an open invitation to suppliers. Doug Bassett said the committee hoped that up to 500 managers and sales representatives of everything from hardware and lumber to cutting tools and woodworking machinery would attend the meeting. He added that the committee member companies hoped to enlist the moral and financial support of their vendors. Anticipated legal costs associated with filing and defending the antidumping petition will run $1 million or more, he said. Big Two on the Sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. As of press time, Furniture Brands International and La-Z-Boy Inc., the nation's two biggest furniture manufacturing enterprises, were not participating in the antidumping fight. In addition, Ashley Furniture and Ethan Alien were two other major wood bedroom furnituremakers that had not joined the committee. FBI's holdings include Broybill, Drexel Heritage, Henredon, Lane and Thomasville. La-Z-Boy's include American Drew, American of Martinsville, Hammary, Kincaid, Lea and Pennsylvania House. Mark Stegeman, a spokesman for La-Z-Boy, said, "We're basically evaluating our position right now." He added that La-Z-Boy officials planned to make their position known during the company's first-quarter conference call scheduled for Aug. 13. During a July 24 teleconference report on second-quarter earnings, Mickey Holliman, FBI's chairman and CEO, sought to clarify the company's position on the antidumping petition. He prefaced his remarks by saying, "I have not seen any details on the fact finding that led to (the antidumping petition) announcement. "Furniture's Brands International strongly supports open competition and tree trade. We source ever 20 percent of our product Dora the Far East. The offshore producers with whom we do business are well established and are people of integrity. We have no reason to believe they are engaged in any kind of activity that is unfair or illegal and we would vigorously oppose any private or government action that is protectionist pro·tec·tion·ism n. The advocacy, system, or theory of protecting domestic producers by impeding or limiting, as by tariffs or quotas, the importation of foreign goods and services. in nature." Holliman went on to say, "(I)f there is something illegal going on then we should address it. But as we discuss this issue, let's be careful to draw a distinction between illegal acts which should not be tolerated and the adverse effects that arise from legal imports or from the soft business environment of the last few years, all of which is simply part of the tough facts in our competitive industry. "Unless we keep that distinction clearly in our minds, I am concerned that we may wind up confusing the issue and unfairly impede import business that is a strong and growing part of our industry and has been a great benefit to our consumers and to our shareholders." Petition Background Over the last three years, numerous furniture factories have been closed across the United States as more and more manufacturing has shifted overseas, particularly to China. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Bureau of Labor Statistics Bureau of Labor Statistics (BLS) A research agency of the U.S. Department of Labor; it compiles statistics on hours of work, average hourly earnings, employment and unemployment, consumer prices and many other variables. , the wood furniture manufacturing industry has lost 34,700 workers since 2000, a loss of 27% of the total workforce. The committee said that a survey of 18 U.S. producers combining for 2002 sales of almost $1 billion in domestic bedroom furniture, saw their domestic shipments fall 21%, sales drop 20% and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. plunge 47% from 2000 to 2002. Last fall, members of the American Furniture Manufacturer Assn. voted to commission a study to research trade laws and determine whether domestic manufacturers could amass a case worth pursuing. In July, Joe Dorn of the law firm King & Spalding, the committee's legal counsel, presented the report that evaluated whether China was guilty of illegally dumping furniture in the U.S. market. "Our study indicated that there is strong case to be made that China is illegally dumping bedroom furniture into the U.S. market," Dorn said. "We also found substantial data indicating the domestic producers of bedroom furniture have been injured by illegal dumping from China." The report led to the creation of the Committee for Legal Trade. The committee announced ,July 15 that it planned to challenge the prices of wood bedroom furniture imported from China. Among other things, the petition must be supported by companies and/or workers that account for at least 25% of U.S. production. Doug Bassett said the participation criterion The participation criterion is a voting system criterion for evaluating voting systems and is also known as the No show paradox. It has been defined as follows:
Dorn said once a petition has been filed, the ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → would immediately commence a preliminary investigation and determine within 45 days whether or not the petition has merit. If the petition moves forward and is successful, any duties that are imposed would be paid by the U.S. importers of record. The duties would be set at the amount required to offset the margin of dumping and to restore fair competition to the market. According to the committee's press release, "The margin of dumping is the difference between 'normal value' and 'export price.' Because China is a non-market economy Noun 1. non-market economy - an economy that is not a market economy economic system, economy - the system of production and distribution and consumption country, normal value is not based on either what producers in China charge customers in China or on what it, costs them to make furniture in China. It is based on what it would cost to make furniture in a 'surrogate' market economy country at a comparable level of economic development, such as India or the Philippines." Doug Basset said that by U.S. statute, the antidumping case "must be adjudicated within 12 to 13 mouths of being filed." American Furniture Manufacturers Committee for Legal Trade Member List (as of Aug. 8) Bassett Furniture Bassett Furniture is a furniture manufacturer located in Virginia, USA. Bassett Furniture is one of the oldest furniture manufacturers in Virginia and has been producing hand crafted furniture for over 100 years. Ind., Bassett, VA Carolina Furniture Works Inc., Sumter, SC Century Furniture Co., Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, , NC Copeland Furniture Co., Bradford, VT Crawford Furniture Co., Jamestown, NY Crescent Mfg. Co., Gallatin, TN Durham Furniture Co., Canfield can·field n. Games A form of solitaire. [After Richard Albert Canfield (1855-1914), American gambler.] Noun 1. , OH The Good Furniture Cos., Carson, CA Harden Furniture Co., McConnellsville, NY Harden Mfg. Corp., Haleyville, AL Hart Furniture Co., Collierville, TN Higdon Furniture Co., Quincy, FL Hooker Furniture Corp., Martinsville, VA Johnston/Tombigbee Furniture Mfg., Columbus, MS Keller Mfg. Co., Corydon, IN Lexington Home Brands, Lexington, NC Michels-Pilliod Furniture Co., Linwood, CA Mobel Furniture Co., Ferdinand, IN Moosehead Furniture Mfg. Co., Monson, ME Palliser Furniture Palliser Furniture Ltd. was established in 1944. Abram Albert DeFehr, a Russian born immigrant to Canada, began making simple wooden pieces in the basement of his Winnipeg home. Palliser's first furniture factory began a few years later in an old chicken barn. Co., Winnipeg, MB Sandberg Furniture Mfg. Co., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , CA Shermag Inc., Sherbrooke, QUE Stanley Furniture Co., Stanleytown, NC Stickley Furniture Co., Manlius, NY Vaughan Furniture Co., Galax, VA Vaughan-Bassett Furniture Co., Galax, VA Vermont Tubbs Inc., Brandon, VT Webb Furniture Ent, Galax, VA * Founding members are in bold. Show of Force More than 3,200 employees of Vaughan Furniture, Vaughan Bassett Furniture and Webb Furniture signed petitions declaring their support for the antidumping action. A sample petition follows: DECLARATION OF WORKER SUPPORT FOR ANTIDUMPING PETITION AGAINST WOOD BEDROOM FURNITURE FROM CHINA We, employees at (name of plant) of (name of company), declare that we are engaged in the manufacture of wood bedroom furniture in the United States. Our industry is experiencing material injury and is threatened with further material injury as a result of dumped imports of wood bedroom furniture from China. Consequently, we, the undersigned un·der·signed adj. 1. Having signatures or a signature at the bottom or end. Used of documents. 2. Signed or having signed at the bottom or end of a document: , support this petition for the imposition of antidumping duties against the wood bedroom furniture from China. DECLARED BY: (Attach names, addresses, phone numbers and signatures of all employees who support the petition.) New Web Site Pleads: Save U.S. Furniture Jobs In an effort to stem the decline of U.S. furniture jobs and to bolster support for an antidumping petition, a furniture manufacturing executive has launched www.saveusfurniturejobs.com. Lewis Canter canter a gallop at an easy pace. The rhythm is three-time, first one hind, then the opposite hind with the diagonal fore, then the opposite fore, the leading limb. collected canter , vice president of manufacturing of Hooker furniture, said he created the Web site as an extracurricular activity to encourage furniture manufacturing employees and others to write to their legislators and call attention to what many perceive as an industry crisis. In the last few years, thousands of furniture jobs have been lost to lower-wage workers in China. On the Web site, visitors can find news and facts about the furniture industry and its struggles. In addition, they can search a list of their home state's representatives and senators. Canter has even provided a sample letter that interested persons can customize to send to their congressmen. The letter begins, "I am very troubled over the loss of furniture manufacturing jobs in this country, a loss that threatens the American economy and way of life." The letter goes on to urge lawmakers to support a coalition of U.S. wood bedroom furniture manufacturers, which plans to file an antidumping petition against Chinese manufacturers. It also encourages its recipients to "ask the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Secretary to investigate and take action regarding the deeply undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. Chinese currency Currency has been used in China since the New Stone Age, in which Chinese also invented paper money in the 9th century. Today Renminbi (Chinese: 人民幣), literally People's currency, abbreviated to RMB, is the currency in mainland of the People's , the yuan. "I don't think they (legislators) understand the magnitude of what's happening," Canter said, as he spoke of a trickle down Trickle down An economic theory that the support of businesses that allows them to flourish will eventually benefit middle- and lower-income people, in the form of increased economic activity and reduced unemployment. effect on the economy that can be caused by the loss of manufacturing jobs. Furniture suppliers and local communities will also be hurt, he said. Canter said the May 28 announcement by Hooker Furniture to close its Kernersville, NC, plant and layoff some 270 workers, was the impetus for the Web site. Watching the Kernersville plant close, he said, "was like watching somebody die who's very close to you." Canter said he encouraged fellow Hooker employees to write to their legislators, but they didn't know exactly how to word their concerns. That prompted the creation of the Web site and posting of the sample letter. "A little light went on one night," he said. Canter said if he can urge people to send letters to their legislators, he will feel like he has done his job. The site, which is not affiliated with Hooker Furniture, was launched in the first week of August; more than 760 people visited it in its first week. His greatest hope is that the Web site will contribute to saving jobs. --Susan Lorimor An Unlevel Playing Field A press release issued by the American Furniture Manufacturers Committee for Legal Trade highlights several factors that that put U.S.-made furniture manufacturers at a disadvantage to compete with Chinese imports. They include: * Even though the U.S. trade deficit with China almost doubled from $56 billion in 1998 to $104 billion in 2002, the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
"CNY" and "RMB" redirect here. For other uses, see CNY (disambiguation) and RMB (disambiguation). (also known as the yuan) is grossly undervalued by at least 40%. If China let its currency fluctuate according to market forces, it would export a lot less and import a lot more." * "By maintaining an artificially high exchange rate, China is in effect subsidizing its exports. Unfortunately, under the international trade rules that exist today, there appears to be no prohibition against currency manipulation." * "The Chinese government is also believed to directly subsidize sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. the building of furniture factories, and it clearly refrains from imposing environmental and worker safety rules that would raise the cost of production in China. Under U.S. law, however, it is not possible to bring countervailing duty Noun 1. countervailing duty - a duty imposed to offset subsidies by foreign governments tariff, duty - a government tax on imports or exports; "they signed a treaty to lower duties on trade between their countries" cases against subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. imports from China, because China is considered a non-market economy." Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : For news updates about the antidumping petition, visit www.iswonline.com. |
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