Hotel Room Furniture in EAPA Evasion Investigation Not Subject to AD Duties, Commerce Says

Several types of hotel room furniture that had been the subject of antidumping duty evasion allegations are not actually subject to AD duties on wooden bedroom furniture from China (A-570-890), the Commerce Department said in a scope ruling issued Dec. 31.

The scope ruling had been requested by CBP in a “covered merchandise referral” that stemmed from an Enforce and Protect Act (EAPA) evasion investigation of Aspects Furniture. CBP had in 2017 announced the EAPA investigation, as well as its preliminary finding of evasion and imposition of “interim measures” in the form of suspension of liquidation and cash deposit requirements (see 1708170024).

The case involved six types of furniture designed for use in hotels: a desk, two television dresser/credenzas, a TV cabinet/credenza with a minibar, a trunk, a custom dresser/nightstand and a bed bench base. Each formed part of a coordinated set of bedroom furniture, although some, including the desk, television cabinet and benches, are excluded from the scope of AD duties.

“CBP’s uncertainty regarding the furniture pieces at issue appears to revolve around mixed evidence regarding whether each of these pieces of furniture is subject merchandise,” Commerce said. The scope of the wooden bedroom furniture order “specifically covers dressers, night stands and desks ‘attached to or incorporated in the subject merchandise’ but excludes office furniture, such as desks and credenzas, and other non-bedroom furniture, such as television cabinets and entertainments systems,” Commerce said.

First, Commerce noted that, “although a hotel room may primarily function as a bedroom, its functions are not limited to those of a bedroom and a hotel room may have a wider function than a bedroom. Thus, a hotel room may contain non-bedroom furniture,” Commerce said.

The desk imported by Aspects International is not subject to duties, Commerce said. It is not “attached to or incorporated into” another, subject piece of furniture. “The desk/console is a single stand-alone item that is not attached to or incorporated with any other piece of furniture,” Commerce said. Its drawers are not large enough to practically store clothing. On the other hand, the desk has physical characteristics consistent with those found in office desks.

Nor is the TV cabinet with minibar included under the scope, the agency said. It only has one drawer that is not suitable for storing clothing, so it is not similar to a bedroom dresser. A “significant amount of space” is also dedicated to housing a small refrigerator and a safe, Commerce said, indicating it is not for bedroom use.

The trunk imported by Aspects is more like living room furniture than bedroom furniture, Commerce said. Though it can store clothing, “the height of the trunk storage unit is consistent with the height of occasional or end tables,” and “the decorative aspects of the trunk storage unit and the fact that it is finished on all four sides are consistent with living room furniture,” Commerce said.

Finally, the bed bench base imported by Aspects is specifically exempt from the wooden bedroom furniture order, which excludes seats and benches, Commerce said. “There is no indication that the bed bench base provides for storage. Rather, the bed bench base clearly meets the description of merchandise excluded from the scope,” it said.

On the other hand, dressers described as “TV credenzas” by Aspects are covered by AD duties, the agency said. The furniture has similar dimensions to dressers for bedroom use, including a drawer size that is suitable for storing clothing. They each have a set of multiple, parallel horizontal drawers stacked in a frame, and are not decorated in a way that distinguishes living room chests from bedroom chests, Commerce said.

Likewise, the custom dresser/nightstand imported by Aspects has the characteristics of a bedroom dresser, and is subject to AD duties on wooden bedroom furniture, Commerce said. The furniture was even identified as a dresser in entry documents, Commerce said.

Email ITTNews@warren-news.com for a copy of this scope ruling.