C-AIR TIMES ISSUE #624 - Friday, April 03, 2020 07:26

Petitions for the Imposition of Antidumping Duties on Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam; and Countervailing Duties on Mattresses from China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

I. Type of Action: Antidumping Duty (“AD”): Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam; Countervailing Duty (“CVD”): China

II. Product: 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.

III. HTS classifications: 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.

IV. Date of Filing: March 31, 2020

V. 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”)

VI. Foreign Producers/Exporters: Please contact our office for a list filed with the petition.

VII. US Importers named: Please contact our office for a list filed with the petition.

VIII. Alleged Dumping Margins (No CVD Rate Listed):

Cambodia: 708.10%
Indonesia: 706.28%
Malaysia: 47.97%
Serbia: 191.09%
Thailand: 773.49%
Turkey: 620.07%
Vietnam: 1008.28%

IX. Comments

A. Projected date of ITC Preliminary Conference: April 21, 2020.

B. The earliest theoretical date for retroactive suspension of liquidation for the AD is June 10, 2020; CVD is April 20, 2020. Please contact our office for a complete projected schedule for the AD/CVD investigations.

C. Volume and Value of Imports: Please contact our office for a summary of the data filed with the petition.

D. List of Alleged Subsidy Programs: Please contact our office for a list of alleged subsidy programs.

If you have questions regarding how this investigation may impact future imports of scope merchandise or whether a particular product is within the scope of the investigation, please contact one of our attorneys.

Federal Register Notices:

The Federal Maritime Commission today issued an order authorizing Commissioner Rebecca Dye to identify operational solutions to cargo delivery system challenges related to Coronavirus-19.

The Order notes that “Recent global events have only highlighted the economic urgency of responsive port and terminal operations to the effectiveness of the United States international freight delivery system. Given the Commission’s mandate to ensure an efficient and economic transportation system for ocean commerce, the Commission has a clear and compelling responsibility to actively respond to current challenges impacting the global supply chain and the American economy. Accordingly, the Commission has determined there is a compelling need to convene new Supply Chain Innovation Teams to address these challenges.”

In addition to authorizing Commissioner Dye as the Investigating Officer for “Fact Finding No. 29 International Ocean Transportation Supply Chain Engagement”, the Order allows her to form one or more FMC Supply Chain Innovation Teams to support the efforts.

“The United States depends on reliable international ocean freight delivery to support the economic security of our country. The maritime supply chain extends upstream and downstream from the ports and closely located logistics centers to American exporters and importers and keeping the system functioning is a priority of national importance. This initiative is an effort by the Commission to do everything we can to eliminate pressing problems in the freight delivery system,” said Commissioner Dye.

Commissioner Dye will engage key executives to participate on the Innovation Teams. These industry leaders will represent all facets of the ocean cargo system including public port authorities, marine terminal operators, beneficial cargo owners, ocean transportation intermediaries, liner shipping companies, drayage trucking companies, longshore labor representatives, rail officials, and chassis providers.

Commissioner Dye will commence her work by interviewing port directors to determine what steps they can identify to mitigate critical supply chain challenges.

“Small and medium-sized shippers are especially affected by a lack of cargo storage space and are running out of options of where to send shipments once offloaded and I applaud this contribution. The Pacific Northwest Seaport Alliance has identified sites in their complex that can be used to stage cargo and containers off terminals. I applaud their initiative. We are calling on everyone engaged in moving ocean cargo to do what they can in this effort,” said Commissioner Dye.

Baltimore CBP Detects Destructive Japanese Gypsy Moth Egg Mass on Coal Ship - U.S. Customs & Border Protection

BALTIMORE – The U.S. Department of Agriculture confirmed Wednesday that an egg mass that Customs and Border Protection agriculture specialists discovered on a coal freighter at the Port of Baltimore March 22 was likely of the highly destructive Asian Gypsy Moth (AGM) species.

CBP agriculture specialists inspected the M/V Mondial Sun and discovered the egg mass under a hatch door. The vessel, which arrived from the United Kingdom to take on coal, previously called on ports in China and Japan during the summer of 2019. Ports in Asia are high-risk ports for AGM. The M/V Mondial Sun departed Baltimore on March 24 destined to Japan.

CBP agriculture specialists removed the egg mass and treated the affected area with a pest spray oil. CBP submitted the specimen to the local United States Department of Agriculture pest identifier, who reported the egg mass as Lymantria dispar asiatica/japonica, the highly destructive Japanese gypsy moth.

Asian Gypsy Moth (AGM) is one of the most destructive insect pests in the world. They are not known to occur in the United States.

According to the USDA, AGM poses a significant threat to our nation’s forests and urban landscapes as it is known to be extremely mobile – females can travel up to 25 miles per day – is attracted to lights, can lay egg masses that could yield hundreds of hungry caterpillars, and is itself a voracious eater that attacks more than 500 species of trees and plants. If they would become established here, they could cause serious, widespread damage to our country’s landscape and natural resources.

“While most of the country remains hunkered down against coronavirus, Customs and Border Protection agriculture specialists remain on duty protecting our nation’s vital agricultural resources against Asian Gypsy Moth and other highly destructive insect pest invaders,” said Adam Rottman, CBP’s Area Port Director for the Area Port of Baltimore.

CBP agriculture specialists and USDA Animal and Plant Health Inspection Service (APHIS) inspectors have conducted AGM inspection training with AGM high risk countries (Far East Russia, South Korea, Japan, and Northeast China) to help lower AGM risks.

Additionally, vessels making port calls in Asia generally implement stringent inspections to detect and remove egg masses, and foreign governments in the AGM high risk countries during the AGM high risk periods inspect and certify that vessels departing their ports are free of AGM or egg masses.

CBP agriculture specialists perform a critical border security role in safeguarding America’s agricultural and natural resources from harmful pests and plant diseases. They have extensive training and experience in the biological sciences and agricultural inspection, inspect tens of thousands of international air passengers, and air and sea cargoes nationally being imported to the United States.

During a typical day last year, CBP agriculture specialists across the nation seized 4,695 prohibited plant, meat, animal byproduct, and soil, and intercepted 314 insect pests at U.S. ports of entry. See what else CBP achieved on a typical day during 2019.

CBP's border security mission is led at ports of entry by CBP officers from the Office of Field Operations. CBP officers screen international travelers and cargo and search for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality. Please visit CBP Ports of Entry to learn more about how CBP’s Office of Field Operations secures our nation’s borders. Learn more about CBP at www.CBP.gov.

Follow the Director of CBP’s Baltimore Field Office on Twitter at @DFOBaltimore and on Instagram at @dfobaltimore for breaking news, current events, human interest stories and photos.

Philadelphia CBP Seizes more than 100 Shipments of Illicit Dermal Fillers since January - U.S. Customs & Border Protection

PHILADELPHIA – Even during times of great concern, people feel the need to look their very cosmetic best and to do so at the best price possible. What they don’t realize is that the cheaper dermal filler they purchase online could potentially make them ill, or never reach their doorstep because they violate U.S. import laws.

Since the beginning of the year, Customs and Border Protection officers in Philadelphia have seized more than 100 shipments of dermal filler bearing the brand names of Juvederm, Teoxane, Teosyal, Sculptera, Orthovisc, Revanesse, Restylane, Dyasport, and of course the more popularly known Botox.

CBP seized the dermal filler shipments for violating the Federal Food, Drug and Cosmetic Act, specifically 21 USC 331, and for violating import licensing and permit requirements (19USC1595a). The shipments, which arrived aboard air cargo flights from Germany and Poland, were destined to addresses in states across the United States, but Florida was the most popular. The domestic value of each shipment ranged from less than $300 to $450, cheaper than what consumer would pay in the United States.

“American consumers should exercise caveat emptor, or buyer beware, that just because you purchase an item more cheaply online overseas does not necessarily mean it is lawful for importation to the United States or safe for consumer use,” said Joseph Martella, Area Port Director for the Area Port of Philadelphia. “Customs and Border Protection officers will continue to work with the trade industry and our consumer safety partners to intercept illicit and potentially dangerous products at our nation’s ports of entry.”

Consumers should also be aware that products purchased online may be counterfeit products that may have been manufactured in unregulated facilities with substandard or harmful ingredients. CBP urges consumer to buy from reputable vendors.

The Food and Drug Administration offers safety tips for dermal fillers, including never purchasing dermal filler on the Internet because they may be counterfeit, contaminated or harmful.

Treasury and IRS Release FAQs to Help Small and Midsize Businesses Navigate Paid Sick and Family Leave Tax Credits - U.S. Department of the Treasury

WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service are offering small and mid-size employers more information on refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing their employees paid sick and family leave wages related to COVID-19.

“The financial strain American businesses are experiencing is not their fault,” said Secretary Steven T. Mnuchin. “These tax credits for small and mid-size businesses will cover the cost of providing paid sick and family leave wages, which will help protect the health of American families and businesses during this unprecedented time.”

The Families First Coronavirus Response Act (FFCRA), signed by President Trump on March 18, 2020, gives businesses with fewer than 500 employees funds to provide employees with paid sick leave and family and medical leave related to COVID-19.

Eligible employers can receive a credit in the full amount of the qualified sick leave and family leave wages paid for between April 1, 2020, and December 31, 2020.

Employers can be reimbursed immediately by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, employers may request an accelerated payment from the IRS.

Read more information on small and mid-size business tax credits for paid sick and family leave.