CBP Announces EAPA Investigation, Interim Measures, on Wooden Furniture From China

CBP announced that it has opened a formal Enforce and Protect Act investigation into whether Zinus evaded an antidumping duty order on wooden bedroom furniture from China and has imposed interim measures, according to an Oct. 24 notice. The investigation was launched on July 19 following allegations by CVB that Zinus used general product descriptions and misclassified Chinese wooden bedroom furniture as metal furniture in order to enter the furniture as uncovered merchandise.

The beds at issue consist of wooden headboards and footboards with metal frames that are subject to the 216.01% China-wide AD cash deposit rate. Zinus receives imports from Zinus (Xiamen) Inc., a related party that does not have an exporter specific rate. CBP said that Zinus misclassifies its metal and wood platform beds under HTS subheadings 9403.20.0050, applicable to other metal furniture, and 9403.20.0040, for metal mattress bases with legs, "seemingly in an attempt to avoid AD cash deposits." The appropriate classification of metal and wood platform beds appears to be under subheading 9403.50.9045, which would cover wooden beds with metal parts.

Import data showed that Zinus received platform beds from China comprising metal and wood and the price of Zinus’ imports of metal and wood platform beds in the U.S. market supports the alleger’s claim that Zinus did not tender cash deposits for AD and/or undervalued its goods, CBP said. The retail price of Zinus’ platform beds "does not reflect pricing from a Chinese supplier if AD cash deposits had been paid and/or if the real value of the merchandise had not been falsely reduced."

In its response to a CBP questionnaire, Zinus maintained that its merchandise is not subject to the AD order covering imports of wooden bedroom furniture from China, citing a Commerce ruling that metal framed bed frames, including bed frames with “wooden cross slats, which provide mattress support,” are not within the scope of the bedroom furniture order. The wood components contained in Zinus metal and wood platform beds are consistent with descriptions of wood products defined in the scope of the bedroom furniture order, noted CBP. In its scope rulings, Commerce found that wooden headboards and footboards imported as components of metal beds are products that meet the description in the wooden bedroom furniture order.

The descriptions on the invoice and purchase orders contradict the general descriptions used by Zinus in its entry documents, CBP said. CBP then conducted a cargo exam on shipments for entry on Aug. 4 and found that the cargo consisted of merchandise described as metal bed frames and photographs from the examination indicated that the styles were misclassified as metal furniture. In the investigation notice, CBP said that "it appear[ed] that Zinus changed the names of its styles ... which support[ed] Zinus’ tendency to misrepresent the description of its wood and metal platform beds."

Given the evidence, CBP has decided to impose interim measures that suspend the liquidation of each unliquidated entry of such covered merchandise that entered after June 27, extend the period for liquidating each unliquidated entry of such covered merchandise that entered before the date of the initiation of the investigation, and take such additional measures are necessary including requiring a single transaction bond, additional security, or the posting of cash deposits.