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Canada announces final dumping margins for upholstered furniture from Vietnam

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HCMC – The Canada Border Services Agency (CBSA), pursuant to paragraph 41 of the Special Import Measures Act, has announced the final determination on its investigation into the dumping and subsidizing of certain upholstered seating from Vietnam and China.

Among eight Vietnamese enterprises that are cooperating in the investigation, only one has been subjected to an anti-subsidy duty of 3.7%, while the rest don’t have to pay.

These enterprises comprise Delancey Street Furniture Vietnam Co., Ltd., Koda Saigon Co. Ltd., Motomotion Vietnam Limited Company, Timberland Co., Ltd., UE Furniture Vietnam Co., Ltd., Vietnam Hang Phong Furniture Company Limited, Wanek Furniture Co., Ltd. and Wendelbo SEA Joint Stock Company.

Meanwhile, the anti-subsidy duty for non-cooperating businesses is 5.5%.

In terms of anti-dumping duties, most of the enterprises that cooperate in the investigation are subjected to duty rates ranging from 10 to 20%, much lower compared with the 20-90% rates in the CBSA’s preliminary determinations. The rate for those who didn’t cooperate in the investigation is up to 179.5%.

The Vietnamese Ministry of Industry and Trade attributed this positive result to the close cooperation between the ministry, the relevant agencies and the local authorities to collect information and answer questions from the Canadian side.

The fact that Canada believed that the majority of Vietnamese enterprises do not receive subsidies from the Government shows the transparency of the country’s policy and law enforcement. It also reflects that Vietnam’s industries are operating in an equally competitive market, said the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam.

Regarding Chinese companies, CBSA imposes anti-subsidy duties from 1.1% to 81.1% and anti-dumping duties between 9.3% and 188%.

Alongside the CBSA’s investigation into dumping and subsidizing, the Canadian International Trade Court (CITT) is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by September 2, 2021. Provisional duties will continue to be applied on imports of the goods concerned until the date of the CITT’s order or finding.

CBSA in December 2020 initiated investigations into the dumping and subsidizing of certain upholstered domestic seating originating in or exported from China and Vietnam. The probe was triggered by a complaint filed by Palliser Furniture Ltd. of Winnipeg, Manitoba, alleging it has been negatively impacted due to an increased volume of dumped and subsidized imports from Vietnam and China.

The complaint was supported by Canadian manufacturers Elran Furniture Ltd., Jaymar Furniture Corp., EQ3 Ltd. and Fornirama Inc.

On February 19, the Canadian International Trade Tribunal said it found reasonable indication that the dumping and subsidizing of certain upholstered domestic seating, originating in or exported from Vietnam and China, has caused injury or is threatening to cause injury to Canada’s domestic furniture manufacturing industry.

On May 5, the CBSA, pursuant to subsection 38 of the Special Import Measures Act, made preliminary determinations on dumping and subsidizing with respect to certain upholstered domestic seating from Vietnam and China. The goods are classified under the following tariff classification numbers: 9401.40.00.00; 9401.61.10.10; 9401.61.10.90; 9401.71.10.10 and 9401.71.10.90.

During the investigation period of the case from June 2019 to the end of September 2020, exports of upholstered seats from Vietnam to Canada reached approximately US$135.6 million, accounting for over 10.08% of Canada’s total imports of this product.

According to the CBSA, the Canadian market for upholstered domestic seating has been estimated at US$675 million annually.

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