Chinese manufacturers of foldaway metal tables and chairs may soon
experience hard times in the US market, due to anti-dumping tariffs
likely to be imposed by Washington in October to protect American
furniture makers.
It
will be the first time domestic furniture makers face such an
anti-dumping penalty. Most of the furniture companies surveyed by
Shanghai Daily yesterday said they had not been informed of
the case against them and so far had not responded to the
allegation made by the US Federal Trade Commission.
According to China National Furniture Association, Guangdong-based
Nanhai Hongda Metal Products Co is one of the companies to face the
anti-dumping penalty. Nanhai Hongda said the increased tariffs
would force it to halt its exports to the US market, due to a low
gross profit margin of only 30 percent. It exports furniture worth
US$1 million to the United States annually.
The US government currently levies a roughly 5 percent import tax
on Chinese furniture. If the penalty is imposed, the tax will be
doubled or even tripled, and effective for one to five years,
industry sources said.
In
April, the Tennessee-based home furniture maker MECO Corp appealed
to the US government, alleging that the Chinese folding metal
tables and chairs were sold in the United States for 21 percent to
82 percent cheaper than the prices of US-made products.
The company requested that the US authorities investigate. The
result of the investigation, covering 68 furniture makers and
companies mainly in Fujian and Guangdong provinces, was announced
on June 11.
The US investigators found the Chinese products were sold at the
prices unreasonably cheaper than those of the American. The
wholesale prices of a set of a Chinese foldaway dining table and
four chairs range from US$16.5 to US$20.4 overseas.
"China's advanced technology, efficient management and expanded
business scope allow its manufacturers to provide 'value-for-money'
products," said Cao Yingchao, secretary-general of China National
Furniture Association. Last year, China exported more than US$1.5
billion of furniture to the United States.
(Eastday.com 06/14/2001)