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Dear Hannah,
In a recent report from the trade law firm, Sandler, Travis & Rosenberg, information was provided regarding the recent case against Aspects Furniture. CBP found substantial evidence that in this case, a US company had evaded the Anti-Dumping duty order on wooden bedroom furniture from China by misidentifying the manufacturers and/or merchandise at the time of entry.
For more information, the link to the final determination of duty and tariff evasion against Aspects Furniture is below:
https://www.cbp.gov/document/report/notice-final-determination-evasion-eapa-case-number-7189
Is this just the “tip of the iceberg” in terms of cases against case goods furniture and quartz surfaces companies circumventing ADD and CV duties on goods produced in China? In this final determination, the case against Aspects is nearing the end, with only additional fines to be determined. Our team in China is hearing rumblings that some even larger investigations may be on the horizon. In the case against Aspects Furniture, a 216.01% duty was already accessed but no fine has yet to be levied.
How does this Affect the Hospitality Supply Chain?
MGroup™ is concerned that this harsh eye of government investigation into case goods and quartz surfaces manufacturers producing in China may taint the many legitimate products that are not under anti-dumping and countervailing tariff regulations. Those products remain outstanding values in today’s market. It would be better for us, as an industry, to self-police. There are case goods companies in China with separate rates far below the 216.10% all-China rate that represents real value but many case goods vendors have made the move to other countries or other regions to maintain their competitiveness. Check with your furniture case goods and quartz supplier to make sure that they are in compliance and not putting you at risk.
How does this Affect the Hospitality Purchasing Agent?
Purchasing agents may think they are not responsible for any duties and tariff circumvention if the vendor is caught breaking the law. But in a recent case, the Department of Justice prosecuted the wholesaler for knowingly buying from an importer that was falsifying forms and underpaying duty.
If you would like more detailed information on this case or the subject of circumvention, contact Scott Murray, our VP of Manufacturing & Product Development, at Scott.Murray@mgroupcorp.com. Or Drew Murray, our VP of Business Development, at Drew.Murray@mgroupcorp.com. Both are quite knowledgeable on the subject of tariffs on various Chinese products for the hospitality segment.
Thanks again for your continued support.
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