UPDATE: US Accuses China Of Unfairly Dumping Wood-Flooring Products
Lumber Liquidators Holdings, Common Stock (NYSE:LL)
Saturday 21 May 2011
The U.S. will impose duties of up to 83% on multi-layered flooring imports from China, the U.S. Commerce Department said Friday in a determination that Chinese companies were selling the products for less than fair value.
As a result, Commerce will instruct Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.
The trade-remedy investigation against Chinese companies has pitted U.S. flooring producers against local distributors who benefit from the imports.
Eight U.S. flooring makers sought relief from Chinese floor imports last October, claiming the imports were being unfairly subsidized and dumped, or sold below fair value. Shaw Industries, a unit of Berkshire Hathaway Inc. (BRKA, BRKB), formed the ad hoc Coalition for American Hardwood Parity, along with Anderson Hardwood Floors, Award Hardwood Floors, Baker's Creek Wood Floors, From the Forest, Howell Hardwood Flooring, Mannington Mills, and Nydree Flooring.
But Lumber Liquidators Inc. (LL), which operates a chain of flooring stores, has opposed the duties.
Multi-layered wood imports fell to $120 million in 2009 from $148 million the previous year. However, the U.S. International Trade Commission found in December that imports from China had climbed 17% during the first nine months of last year, increasing the share of the U.S. market to 47% from 43% the year before.
-By Jamila Trindle
AI
