Notice of conclusion of administrative review: Upholstered Domestic Seating (UDS 2025 UP1)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the review is October 1, 2024 to September 30, 2025.

Administrative review process

At the initiation of the review, the CBSA sent a dumping request for information (RFI) to exporters and their known importer to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada. Normal values determined on the basis of the review will also be applied to any entries of subject goods under appeal.

At the initiation of the review, the CBSA also sent a subsidy RFI to exporters in order to solicit information on potential actionable subsidies and financial contributions received from the Government of China and the Government of Vietnam. The information was requested for purposes of determining amounts of subsidy for subject goods imported into Canada.

The Government of China and the Government of Vietnam were sent the CBSA’s government subsidy RFI requesting information concerning the alleged subsidy programs available to producers/exporters of subject goods.

For the purposes of the subsidy review, Government of China and the Government of Vietnam refer to all levels of government, i.e., federal, central, provincial/state, regional, municipal, city, township, village, local, legislative, administrative or judicial, singular, collective, elected or appointed. It also includes any person, agency, enterprise, or institution acting for, on behalf of, or under the authority of, or under the authority of any law passed by, the government of that country or that provincial, state or municipal or other local or regional government.

The Government of China, the Government of Vietnam and the exporters were also notified that in cases where either the government or the exporter fail to provide complete and accurate submissions enabling the determination of specific amounts of subsidy, countervailing duties may be assessed at the rate of 1,390.65 RMB per unit for China and 1,914,726.79 VND per unit for Vietnam in accordance with a ministerial specification pursuant to subsection 30.4(2) of SIMA.

The Government of China, the Government of Vietnam and the exporters did not provide a response to the subsidy RFIs.

As part of the review, representations were provided by counsel representing Ashley Furniture, Ashley Furniture Trading Company (AFTC) and Wanek Furniture Co. Ltd. (Wanek Furniture) as part of a 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 review are provided below.

Normal values, export prices and amounts of subsidy

United States

Ashley Furniture Industries LLC

Ashley Furniture is an exporter of subject goods located in the United States. Ashley Furniture provided a response to the CBSA’s dumping RFI. Supplemental RFIs (SRFIs) were sent to Ashley Furniture to gather additional information and to seek further clarifications.

Ashley Furniture 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 like goods in the United States. Where there were insufficient domestic sales of like goods 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 (SG&A), and a reasonable amount for profits.

The cost of production was determined in accordance with paragraph 11(1)(a) of the SIMR, based on the producer’s cost data associated with the subject goods shipped to Canada through the United States. An amount for SG&A was calculated for Ashley Furniture, the producer and the intermediary vendor in accordance with subparagraph 11(1)(c)(ii) and subsection 11(3) of the SIMR. The amount for profit was determined pursuant to subparagraph 11(1)(b)(i) and subsection 11(2) of the SIMR, based on the cumulative profit earned by Ashley Furniture on its sales of like goods in the United States, as well as the profit earned by the producer and any subsequent vendors in respect of sales of those goods to the exporter.

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 normal value and export price are to be determined as if the goods were shipped directly from the country of origin.

For the portion of subject goods exported by Ashley Furniture for which the producers of the goods did not provide responses to the dumping RFI, the CBSA determined normal values pursuant to section 29 of SIMA.

For subject goods exported to Canada by Ashley Furniture during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

As Ashley Furniture is not located in either of the subject countries, it was not required to respond to the subsidy RFI.

Vietnam

Wanek Furniture Co., Ltd.

Wanek Furniture is a producer and exporter of subject goods located in Ho Chi Minh City, Vietnam. Wanek Furniture provided a response to the CBSA’s dumping RFI. SRFIs were sent to Wanek Furniture to gather additional information and to seek further clarifications. A verification was performed at Wanek Furniture’s premises in Vietnam.

Wanek Furniture 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 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 SG&A, and a reasonable amount for profits.

The cost of production was determined in accordance with paragraph 11(1)(a) of the SIMR, based on Wanek Furniture’s cost data associated with the subject goods shipped to Canada. As Wanek Furniture acquired inputs from associated suppliers, the CBSA investigated whether an adjustment should be made pursuant to paragraph 11.2(1) of the SIMR, however no adjustment was required. The amount for SG&A was determined in accordance with subparagraph 11(1)(c)(ii) of the SIMR, based on Wanek Furniture’s selling and administrative expenses incurred during the PAP.

The amount for profits for Wanek Furniture could not be determined in accordance with subparagraphs 11(1)(b)(i) to 11(1)(b)(vi) of the SIMR as there was not a sufficient amount of profits from exporters from Vietnam. As such, the amount for profits was determined pursuant to section 29 of SIMA, using the weighted-average amount for profits found during the investigation.

For subject goods exported to Canada by Wanek Furniture during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

The amount of subsidy found for Wanek Furniture was previously determined to be insignificant at the final determination. As such, the subsidy investigation in respect of the goods of Wanek Furniture was terminated pursuant to paragraph 41(1)(a) of SIMA. For the purposes of this review, Wanek Furniture was not required to respond to the subsidy RFI.

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: trade_remedies_registry-registre_recours_commerciaux@cbsa-asfc.gc.ca

Appendix 1: Representations

Representations

During the course of the review, counsel on behalf of Ashley Furniture, AFTC and Wanek Furniture discussed various concerns pertaining to the responses to the dumping RFIs and SRFIs. Issues raised included: methodologies used to calculate normal values, freight cost, SG&A and amount of profit for exporters in Vietnam.

Counsel submitted financial information of three companies located in Vietnam for the purpose of determining normal values under paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for SG&A, and a reasonable amount for profits.

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 the record, in the case brief. Appropriate adjustments were made, as applicable on a case-by-case basis, in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to exporters in the confidential exporter conclusion letters.

The CBSA considered the financial information of other companies located in Vietnam that was submitted by counsel. However, the financial information relates to companies involved in the production and/or sale of goods in a broader category than the subject goods. As the amount for profits for Wanek Furniture could not be determined in accordance with subparagraphs 11(1)(b)(i) to 11(1)(b)(vi) of the SIMR, the amount for profits was determined pursuant to section 29 of SIMA, using the weighted-average amount for profits found during the investigation.