UDS 2022 UP2: Upholstered domestic furniture
Conclusion of normal value and export price review

Ottawa,

The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review (review) that was initiated to update all normal values and export prices of certain upholstered domestic furniture (UDS) exported from China by HTL Furniture (China) Co., Ltd. (HTL).

The review followed a request for re‑determination filed by an importer and was part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on September 2, 2021, respecting the dumping and subsidizing of UDS from China and Vietnam in accordance with the Special Import Measures Act (SIMA).

The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding are contained in Appendix 1 (subject goods).

Period of investigation

The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value and export price review were from April 1, 2021 to March 31, 2022.

Normal value review process

At the initiation of the review on April 5, 2022, the CBSA sent a request for information (RFI) to HTL to solicit information on the costs and selling prices of subject goods and like goods for purposes of updating the normal values and export prices for goods exported to Canada by HTL.

The CBSA did not receive a response to its RFI from HTL by the due date of May 12, 2022. On May 16, 2022, the CBSA sent a correspondence to HTL asking if HTL had decided not to respond to the RFI.

On May 20, 2022, the CBSA sent a second correspondence and informed HTL that the absence of participation by HTL in the review would result in the CBSA concluding its review without establishing a new list of normal values, and the existing normal values of HTL would expire. The CBSA also requested that any response to its correspondence should be received by May 27, 2022.

On the same date, HTL acknowledged receipt of the message from the CBSA.

No response was received and on June 3, 2022, the CBSA closed the record of the review.

On June 10, 2022, after the close of the record, HTL made a representation to the CBSA requesting that the CBSA terminate the review if the importer who requested the re‑determination withdraws its request, and for the existing normal values for HTL, determined in the original SIMA dumping investigation, to remain in place.

On June 13, 2022, after the close of the record, the CBSA received a message from the importer that it instructed its customs broker to contact the CBSA for purposes of withdrawing its request for re‑determination.

Although the CBSA received messages from HTL, and the importer who requested the re‑determination, regarding an intended withdrawal by the importer of the re‑determination, those messages were received near the end of the review process and after the close of the record.

Normal values for future shipments

As the CBSA did not receive a response to its RFI from HTL, the previous normal values for future shipments expire as of the date of the conclusion of this review. In the absence of information necessary to determine normal values for HTL under sections 15 or 19 of SIMA using sales and cost information, effective today, normal values and/or export prices for subject goods exported to Canada by HTL and released by the CBSA will be determined pursuant to a ministerial specification under subsection 29(1) of SIMA, with the normal value potentially determined based on the export price plus an amount equal to 188.0% of that export price.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti‑dumping 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 SIMA measures and be provided with sufficient information necessary to clear the shipments. To determine their anti‑dumping liability, importers should contact the exporters to obtain the applicable normal values. 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 (Act) applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti‑dumping 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.

Information

Any questions concerning the above should be directed to:

SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON  K1A 0L8

Officer name and contact information:

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

Appendix 1—product definition

Subject goods definition

“Upholstered seating for domestic purposes originating in or exported from the People’s Republic of China and the Socialist Republic of Vietnam, whether motion (including reclining, swivel and other motion features) or stationary, whether upholstered with a covering of leather (either full or partial), fabric (including leather‑substitutes) or both, including, but not limited to seating such as sofas, chairs, loveseats, sofa‑beds, day‑beds, futons, ottomans, stools and home‑theatre seating.

Excluding:

  1. Stationary (i.e. non‑motion) seating upholstered only with fabric (rather than leather), even if the fabric is a leather‑substitute (such as leather‑like or leather‑look polyurethane or vinyl)
  2. dining table chairs or benches (with or without arms) that are manufactured for dining room end‑use, which are commonly paired with dining table sets
  3. upholstered stools with a seating height greater than 24 inches (commonly referred to as “bar stools” or “counter stools”), with or without backs, and/or foldable
  4. seating manufactured for outdoor use (e.g. patio or swing chairs)
  5. bean bag seating and
  6. foldable or stackable seating

For greater certainty, the product definition includes:

  1. Upholstered motion seating with reclining, swivel, rocking, zero‑gravity, gliding, adjustable headrest, massage functions or similar functions
  2. seating with frames constructed from metal, wood or both
  3. seating produced as sectional items or parts of sectional items
  4. seating with or without arms, whether part of sectional items or not and
  5. foot rests and foot stools (with or without storage)”

On September 2, 2021, the Canadian International Trade Tribunal excluded the following products from its finding:

  1. Specialized reclining massage chairs, not intended to be used for general seating purposes, with padded seat, headrest, back, and footrest, and containing built‑in motorized mechanical components that operate by way of computerized controls to provide a full body massage for a single person, including to the head and/or neck, shoulders, back, buttocks, arms, and legs and/or feet
  2. Medical lift chairs containing electric motion mechanisms and motorized positioning controls, designed to carefully lift, lower and tilt (by raising or lowering the base and back of the seating) the occupant, and otherwise adjust the occupant’s seating position by adjusting one or more of the headrest, footrest, and seat; designed, manufactured, and tested to meet or exceed the requirements of Health Canada’s Medical Devices Regulations (SOR/98‑282) applicable thereto and conforming with the following, or equivalent, standards and testing methodologies: EN12182, ANSI/AAMI/ISO10993, ANSI/AAMI/ES60601‑1, CAL117, BSEN1021, ISO8191, ANSI/AAMI/ES60601‑1‑2, ISO14971
  3. Height‑adjustable ergonomic gaming chairs for use with a desk and intended to be used primarily while playing video games, upholstered in leather or a leather‑substitute, with armrests, headrests, lumbar support pillows, five‑star swivel bases, and wheels or castors

Tariff classification numbers

The importation of the subject goods are usually classified under the following tariff classification numbers:

  1. 9401.41.00.00
  2. 9401.49.00.00
  3. 9401.61.10.10
  4. 9401.61.10.90
  5. 9401.71.10.10
  6. 9401.71.10.90

This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.

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