MIRRORS BELONG IN THE BEDROOM — AND SHOULD BE TAXED, SAYS DEPARTMENT OF COMMERCE

Retailers Criticize Commerce Department's Expansion of China Wooden Bedroom Furniture Tax

Washington, DC — Furniture Retailers of America (FRA) representatives today strongly criticized interpretations by the Department of Commerce (DOC) and the Bureau of Customs and Border Protection (Customs) that result in all wooden framed mirrors, hall chests and other items from China being included in the list of "wooden bedroom furniture" products subject to preliminary antidumping duties ranging from 4.9% to 198%.

Retailers and importers recently learned that the duties announced on June 18 by the DOC are being applied to wooden framed hanging or standing mirrors and some television cabinets, tables, hall chests, lingerie chests, jewelry armoires, or other items — even if these items are intended for rooms outside of the bedroom.

"The DOC's vague definition of bedroom furniture results in taxing consumers who may want to buy a mirror or chest for their hallway or living room," said Mike Veitenheimer, FRA spokesperson and Vice President and Counsel of The Bombay Company. "There is no justification for this. Some retailers and importers have already been hit with 198% duties on Chinese wooden bedroom furniture, and now these other items, many of which are produced in factories not involved in normal bedroom furniture, are being unfairly dragged into the investigation. We hope that Commerce reevaluates the scope of investigation and makes a change to prevent further harm to retailers and consumers."

The broad wording of the scope of the investigation has resulted in antidumping duties being charged on various wooden framed mirrors that are not bedroom furniture, including those designed to be hung on the wall, floor standing mirrors (cheval mirrors), mirrors placed on dressers, or hung above dressers.

"The scope of the investigation as currently written is unnecessarily broad and unworkably ambiguous," said FRA Counsel William Silverman. "Common sense says that the list of products in this investigation should be limited to a traditional group of core bedroom products that are typically sold as part of bedrooms suites, and should exclude ancillary items such as accessories and stand-alone mirrors."

"It is the responsibility of the DOC to limit and clarify the scope of an investigation to provide clarity to importers and to U.S. Customs," added Silverman. The DOC normally will not make changes or modifications to the scope of investigation — such as eliminating mirrors or other wooden chests — until it issues its final determination on November 8.

However, Veitenheimer explained that the scope should be changed now in order to prevent unnecessary payments of significant duties on items that were never intended to be included in the scope. Some FRA members, he continued, have requested that the DOC modify the scope of the investigation so that duties only apply to mirrors that are attached to, incorporated in, or sold in combination with dressers.

"This issue over mirrors is just another example why this petition is so damaging to retailers and their customers and must be defeated. The claims by the small group of domestic furniture manufacturers who filed the petition that the duties will return jobs to the U.S. have already been proven false — many of these petitioners are already in Vietnam and other countries signing deals. One of the petitioners, L. & J.G. Stickley Inc. recently announced it had opened a factory in Vietnam and La-Z-Boy, another petitioner, announced this week that it is will start importing most (75%) of its bedroom suites and other wood furniture from China," said Veitenheimer.

"We owe it to American consumers to defeat these duties, which are essentially a new tax on furniture. We will keep fighting until that is accomplished," said Veitenheimer.

The Furniture Retailers of America (FRA) is comprised of large and small retail companies throughout the U.S. formed to protect its customers from a group of domestic furniture manufacturers seeking to restrict consumer access to high quality wooden bedroom furniture by filing an anti-dumping petition with the U.S. International Trade Commission. FRA represents well over 3,500 retail outlets and 200,000 associates/employees nationwide.