Thomas Russell
WASHINGTON — Chinese case goods manufacturer Lacquer Craft Mfg. has reached a settlement with the U.S. government that could eliminate the duty it pays on bedroom furniture it ships to the United States, according to industry sources.


The settlement, which must approved by the Court of International Trade, also ultimately could raise the Section A rate on Chinese-made wood bedroom furniture from 6.65% to 7.24%.

That rate would rise if the settlement removes Lacquer Craft from a group of large importers whose individually determined antidumping rates are averaged to compute the Section A duty. A number of Chinese manufacturers pay the Section A rate.

The Lacquer Craft duty is now 2.66%.

Lacquer Craft officials in China were not available for comment and officials from its two U.S marketing companies, Legacy Classic Furniture and Universal Furniture, said they were not able to comment.

The Department of Commerce imposed the 2.66% duty on Lacquer Craft in early 2012. Soon after, the company appealed the DOC’s decision with the Court of International Trade. Petitioners supporting the original antidumping investigation responded with a cross appeal.

It was unclear when the court might rule on the settlement, or whether the elimination of the duty would be retroactive.

According to a financial prospectus filed with the Hong Kong Stock Exchange last fall, Lacquer Craft had deposited $1.8 million in duties with the U.S. Bureau of Customs and Border Protection between January and June 2012.