Mattresses from China: CBSA duty decisions

Summary#

The Canada Border Services Agency (CBSA) made mixed decisions on investigations into mattresses from China on October 5, 2022. It ended some investigations for specific exporters but made final findings of dumping and subsidizing for other Chinese exporters while a Canadian trade tribunal continues an injury inquiry that must be decided by November 4, 2022.

What it does#

• The CBSA ended the dumping investigation for these exporters from China:
  • Jiaxing Taien Springs Co., Ltd.
  • Xianghe Kaneman Furniture Ltd.
• For all other exporters from China not named above, the CBSA made a final determination of dumping.
• The CBSA ended the subsidizing (countervailing) investigation for these exporters from China:
  • Dongguan Sinohome Ltd.
  • Gold Lion Furniture (Shanghai) Co., Ltd.
  • Guangdong Eonjoy Technology Ltd.
  • Jinlongheng Furniture Co., Ltd.
  • Xianghe Kaneman Furniture Ltd.
  • Zinus Xiamen Inc.
  • Zinus Zhangzhou Inc.
• For all other exporters from China not named above, the CBSA made a final determination of subsidizing.
• Provisional duties:
  • Provisional anti-dumping duty will continue to be collected on subject goods from China until the Canadian International Trade Tribunal (CITT) issues its injury decision by November 4, 2022.
  • Provisional countervailing duty (subsidy duty) will no longer be collected for goods from the exporters whose subsidizing investigations were ended; any provisional duty paid or security posted for those will be refunded as appropriate.
• The CBSA will publish a Statement of Reasons within 15 days after the decisions on its website.

Who's affected#

• Importers of mattresses from China. They may keep paying provisional anti-dumping duty until the CITT decides.
• The named Chinese mattress exporters (listed above). Ending some investigations removes duties for those specific companies, but other exporters face final findings.
• Canadian mattress manufacturers and retailers could be affected depending on the CITT's injury finding.
• Consumers might be indirectly affected if duties lead to higher import costs, but the Gazette item does not estimate price changes.

Why it matters#

• If the CITT finds that dumping or subsidizing hurt Canadian industry, anti-dumping and/or countervailing duties could be applied to future mattress imports, meaning higher costs for importers and possibly higher retail prices.
• Some Chinese exporters will no longer face countervailing duties because investigations were ended for them, and refunds may be issued to importers who already paid provisional subsidy duties for those companies.
• The decision affects trade fairness and competition between foreign exporters and Canadian mattress producers while the tribunal finishes its injury inquiry.