Notice of conclusion of administrative review: Mattresses (MAT 2025 UP2)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the administrative review is June 1, 2024, to May 31, 2025.

Administrative review process

At the initiation of the administrative review, the CBSA sent a dumping request for information (RFI) to the exporters, as well as their known importer to solicit information on the costs and selling prices of subject goods and like goods. During the course of the administrative review an RFI response and responses to two supplemental RFIs was also received from Sinomax International Trading Ltd., a trading company located in China. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

As part of the administrative review, representations were provided by counsel representing the exporters as part of an SRFI response and the case brief. Details of the representations are provided in Appendix 1.

Details pertaining to the information submitted by the exporters and producers in response to the RFIs as well as the results of the CBSA’s administrative review are provided below.

Normal values and export prices

Dongguan Sinohome Limited

Dongguan Sinohome Limited (Dongguan) is a producer and exporter of subject goods located in China. Dongguan provided a response to the CBSA’s Dumping RFI. Supplemental RFIs were sent to Dongguan to gather additional information and to seek further clarifications.

Dongguan did not have sufficient domestic sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of the Special Import Measures Act (SIMA) as to permit a proper comparison with the sales of the goods to the importer in Canada. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

During the POI, the subject goods exported to Canada by Dongguan were sold to a related importer in Canada. Due to the relationship between the companies, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices in accordance with section 24 of SIMA were reliable.

Dormeo North America, LLC

Dormeo North America, LLC (Dormeo North America) is located in the United States and is an exporter of subject goods produced by Dongguan. Dormeo North America provided a response to the CBSA’s Dumping RFI. Supplemental RFIs were sent to Dormeo North America to gather additional information and to seek further clarifications.

Dormeo North America had domestic sales of like goods in the United State during the PAP and, as such, normal values were determined pursuant to paragraph 15 of SIMA, based on the weighted average domestic selling prices of mattresses in the United States.

In situations where a good is shipped indirectly to Canada through a third country, the CBSA is required to determine the normal value of the good in both the country of origin and in the country of export in accordance with subsection 30(2) of SIMA. Where the normal value determined in the country of origin is higher than the normal value determined in the country of export, then both the normal value and export price are to be determined as if the goods were shipped directly from the country of origin.

In the case of the subject goods Dormeo North America exported to Canada, two sets of normal values were determined for the goods, one based on the country of export, the United States, and one based on the country of origin, China. The CBSA made a comparison and determined the normal values based on the higher of the two.

During the POI, the subject goods exported to Canada by Dormeo North America were sold to a related importer. Due to the relationship between the companies, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices in accordance with section 24 of SIMA were reliable.

Sinomax (Zhejiang) Polyurethane Technology Limited

Sinomax (Zhejiang) Polyurethane Technology Limited (Sinomax Zhejiang) is a producer and exporter of subject goods located in China. Sinomax Zhejiang did not export subject goods to Canada during the POI, however, Sinomax Zhejiang provided a response to the CBSA’s Dumping RFI. Supplemental RFIs were sent to Sinomax Zhejiang to gather additional information and to seek further clarifications.

Sinomax Zhejiang had sufficient domestic sales of like goods during the PAP and, as such, normal values for future shipments were determined pursuant to paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of mattresses in China. Where there were insufficient domestic sales of like goods that that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

Exporter responsibility

All parties are cautioned that, where there are increases in domestic prices and/or costs, the export price should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters do not adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted. Please refer to the Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA) for details.

Importer responsibility

Importers are reminded that it is their responsibility to declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. For further information on this matter, refer to Memorandum D14-1-2: Disclosure of normal values, export prices, and amounts of subsidy established under the Special Import Measures Act.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.

Contact us

Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Appendix 1: Representations

Representations

During the course of the administrative review, counsel for the exporters discussed concerns pertaining primarily to the identity of the exporter and the normal value calculation methodologies. In Dormeo North America’s SRFI #4 response, and in the case brief, counsel submits that Dormeo North America is not the exporter in transactions involving Dormeo Canada and that the CBSA should base the normal value calculation for the subject goods on the domestic sales and cost of production data from Dongguan in China. Additional arguments and assertions include information designated as confidential.^{Footnote 1}

CBSA Response

In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning these topics.

Due consideration has been given to submissions on the topics raised in the case representations received before the close of record and in the case brief. Based on the information gathered in the course of this administrative review and available on the administrative record, the CBSA determined that Dormeo North America was the exporter for SIMA purposes of subject goods shipped to Canada during the POI. For other transactions shipped to Canada during the POI, the CBSA determined the Dongguan was the exporter of the subject goods. Additional information on the calculation of normal values is provided to exporters in the confidential exporter conclusion letters.