GOVERNMENT REPORT

ITC INVESTIGATION INTO ‘DUMPING’ CONTINUES
The United States International Trade Commission (ITC) voted on February 13 to continue an investigation to determine if uncovered innerspring units from China, South Africa and Vietnam are being sold at less than fair value in the United States (i.e., “dumped”). In voting, the six ITC Commissioners unanimously agreed there is reason to believe that U.S. manufacturers are being materially injured – or threatened with material injury – by the import of uncovered innerspring units from the three countries. 

The ITC initiated the investigation into the dumping of all uncovered innerspring units after receiving a petition from Leggett & Platt in December 2007.  The petition notes that China, South Africa and Vietnam exported $37 million worth of innerspring units to the U.S. in 2006, compared with $546,000 worth of imports from all other countries that year.

The ITC report – “Uncovered Innerspring Units from China, South Africa, and Vietnam” – will contain the views of the Commission and information developed during the investigations. Copies will be available to the public after March 14, 2008 and may be obtained by calling 202/205-2000 or faxing 202/205-2104.

INDA JOINS COALITION OPPOSING CBP PROPOSAL
INDA has joined a growing number of U.S. companies that are criticizing a recent proposal from the U.S Customs service that they say will significantly increase the duties applied to certain U.S. imported merchandise if allowed to move forward.

The proposal, released by the Bureau of Customs and Border Protection (CBP) on January 24, looks to revise the “first sale” method of valuing imports that have been subject to two or more sales prior to importation, so called multi-tier sales. The primary means of appraising imported merchandise for the purpose of assessing customs duties and fees is by determining its “transaction value,” CBP explains, which U.S. law defines as, “the price actually paid or payable for merchandise when sold for exportation to the United States.” 

Presently, the agency bases transaction value on the price paid by the buyer in the “first sale” (e.g., the sale between the manufacturer and the intermediary), provided the importer can prove it is an arm's length sale and that the merchandise was clearly destined for export to the United States. But CBP is proposing to instead base transaction value on the price paid in the last sale occurring prior to U.S. import, arguing doing so would bring the U.S. in line with other U.S. trading partners and a recent opinion from the World Customs Organization's (WCO).

But revoking the “first sale” rule would contradict well-established legal precedent, U.S. importers and retailers say, and could significantly drive up the value to which U.S. import duties are applied. A broad based coalition of nearly100 firms/trade associations including INDA, in fact, has already asked Homeland Security Secretary Michael Chertoff to immediately withdraw the proposal and is working with lawmakers on Capitol Hill to prevent it from moving forward. 

CBP has said it will accept public comment until April 23, 2008.  To view the January 24 notice, visit: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/E8-1140.htm.