Learn Why ISPA Has Requested For Antidumping Investigation on Chinese Mattresses

Learn Why ISPA Has Requested For Antidumping Investigation on Chinese Mattresses

According to the Department of Commerce, an investigation has been launched into the dumping of Chinese manufactured mattresses in US markets.

The investigation is being conducted based on a petition filed by a number of leading US manufactures including established US sellers such as Tempur Sealy International and several members of the International Sleep Products Assn (ISPA).

Lower Prices

In their petition, several US manufacturers have alleged that Chinese manufactured mattresses are being sold in US markets at substantially lower prices than the fair value price structures.

This action is harming the interests of US sellers and manufacturing companies who invest heavily on research and development as well as on technology and marketing of their sleep products both within domestic markets and across international markets.

As per the Department of Commerce, in 2017 the market for Chinese manufactured mattresses was estimated to be around $436.5 million.

Based on the reports of the investigation, if it is revealed that China is indeed dumping its mattresses at less than fair price values across US markets and that this action is negatively impacting US manufacturers and sellers, then they would impose duties on Chinese sleep products.

Throwing its weight firmly behind the filed petition, the ISPA stated that it fully supports the petition and backs a fair investigation into the alleged dumping claims made by several of its members. The association also added that they have been keeping a close watch over the rapid growth of the market for Chinese mattresses in the US.

Based on figures mentioned in their 2017 Mattress Industry Trends Report, the association stated that imports of mattresses in US had witnessed a 100% jump from the year 2016 to 2017.

However, for the same period, they found that shipments of sleeping mattresses  manufactured in the US fell and in fact they recorded a year-over-year drop. They also noted that it was for the first time in almost a decade that the US mattresses shipments had registered a drop.

Chinese Made Mattresses

The dumping margins for Chinese made mattresses fall anywhere within the range of 267% to 1,700% and more. Clearly, US sellers will be dealt a double blow if these margins continue to hold in addition to the falling import figures for US made mattresses.

It is on this basis and charges that the petition field by US sellers is seeking an inquiry in the dumping of the Chinese made mattresses since the unfair prices lead to material injury or the very least the potential to cause material injury to the US mattress manufacturing industry. And while the trade association of the bedding industry fully supports free and fair trade, if the charges hold true, then as per US laws, appropriate relief should be granted to the US mattress industry.

Initial decision on the petition will be announced on November 2nd by the US International Trade Commission (ITC) while the Commerce Department will announce its decision on February 27th. Based on these decisions and findings of the investigation, a tentative date for announcing the final decision has been set for May 13th.