Zinus Evaded Antidumping Duties on Wooden Furniture From China, CBP Finds
CBP determined that importer Zinus US evaded an antidumping duty order covering wooden bedroom furniture from China by making "material false statements or omissions," it said in a notice released July 28. The agency said there was "substantial evidence" showing Zinus imported Chinese-origin furniture by using general product descriptions and misclassifying the furniture as non-covered merchandise.
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CVB Inc. alleged in March 2022 that Zinus imported certain platform beds composed of wooden headboards and footboards with metal frames but had identified them as metal furniture and misclassified them under the Harmonized Tariff Schedule subheadings for metal furniture. CBP opened a formal Enforce and Protect Act investigation and set interim measures in October (see 2210260010), ultimately finding that Zinus misclassified its metal and wood platform beds as "other metal furniture" under HTS subheading 9403.20.0050 and as metal mattress bases with legs under subheading 9403.20.0040 "seemingly in an attempt to avoid AD cash deposits." It said the correct classification of metal and wood platform beds would be under subheadings 9403.50.9042 and 9403.50.9045, which would cover wooden beds with metal parts.
In May, Zinus submitted written arguments that it imported “nonstructural decorative wood elements” in the metal-framed headboards and footboards but argued that the beds were not “wooden beds” but were "metal-framed." The alleger, CVB, claimed that Zinus admitted to importing models of platform beds composed of wooden headboards and footboards in its June rebuttal comments. CVB also argued the covered merchandise included articles with non-wood components like metal and said wood remained "the key element" in the marketing and sales of the metal and wood platform beds.
Because Zinus admitted that certain platform beds subject to the AD order were imported as “Type 01” to avoid AD cash deposits, CBP concluded that all imports of bedroom furniture that Zinus entered during the period of investigation are subject to the duty rates for wooden bedroom furniture from China.
CBP will suspend liquidation for all entries imported by Zinus US subject to this investigation and will continue suspension until instructed to liquidate the entries. For entries previously extended in accordance with the interim measures, CBP will rate-adjust and change those entries to type 03 and continue suspension. The agency will also evaluate Zinus’ continuous bond and may require single transaction bonds.