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Antidumping: The Third Rail of Trade Policy
Summary --
Although few U.S. politicians will admit it, antidumping policy has strayed far from its original purpose of guarding against predatory foreign firms. It is now little more than an excuse for a few powerful industries to shield themselves from competition -- at great cost to both American consumers and American business.
Submitted by Jason B. (May. 7, 2009) on May 7, 2009 - 2:31pm.
Unfortunately, our industry has been swarmed with anti dumping activity since 2004. We are an importer of furniture from Asia, and ultimately an American business that employees ~150 US workers. We've been importing and distributing quality product to US consumers for over 16 years. Our margins are small, netting to just a hair over 3% at the end of the day. We have struggled like most companies during the last 3-4 years to remain profitable as the US recession and product pricing increases have rippled thru our industry. Our US business is now being threatened by the fruit of the Byrd Amendment. Currently we are facing threats of anti dumping inspections against factories we do business with. Though you may debate the purpose, we see this as nothing more than a way to eliminate your competition. Bankrupting an importer as a result of this law is not only an option, but a strategy. Up to this point, we were simply in a wait and see position, and ultimately prayed our factories would "pay" petitioner attorney's for them to have their names removed from the inspection lists. This activity increased when the US petitioners stopped receiving duty funds after the first few years of the anti dumping cases. Now they are faced with two options, receive funds thru factory payments, or eliminate your competition. Of course, all logical definitions of having a factory pay someone to be removed from an inspection list this is simply extortion. And the factories are faced with paying these lump sums of money or be left with the realities of an unimaginable and unpredictable inspection from the Department of Commerce. We pay a duty of 7.24%, and we cannot even imagine how we can control, or influences a vendor to fit or not fit requirements that an anti dumping inspection may cause. But we as the importer of record are responsible for the results of the inspections. It’s like making our customers responsible for audit results and failures to properly account for our profits and/or tax. I am a huge supporter of American jobs, a second generation family businessman, and I’m so proud that our company has not yet had to lay one American off during the last two years. But the retroactive penalties that come with this law may one day cause our doors to close. We can't think of even how we can manage buying goods, and selling them for a price in the US from factories that have anti dumping limitations. For us, it's Bedroom furniture from China... This means that it’s much more than an act to manage import prices, it’s an act to eliminate importing, and importers. We are currently subject to paying additional duties for a period of 2008 and 2009 that is currently unknown. We don’t know what to do with our inventories, product and every direction we look is challenging. The impacts to both the retroactive duties and the adjustments to our inventories is immeasurable. I have witnessed first hand the benefits of world trade, both to the lives it enhances in other countries and the values we receive at the retailer’s doors in the US. I am a student of international business, and think it's the backbone to world peace and stability. American jobs in furniture were lost because of environmental laws, and the evolution of our labor, but these jobs were replaced by retailers and distributors and importers. At the end of the day, this law has done nothing but jeopardize an American importing business, and raised the prices of our goods for the end consumer. The best part is the only people truly benefiting are the lawyers! I pray that congress one day realizes the illegal acts from US petitions and unintended consequences of the Byrd Amendment. God Bless America... Good luck paying $10,000 for a bedroom in the next few years and more US unemployment.
Submitted by Jason B. (May. 7, 2009) on May 7, 2009 - 2:31pm.
Unfortunately, our industry has been swarmed with anti dumping activity since 2004. We are an importer of furniture from Asia, and ultimately an American business that employees ~150 US workers. We've been importing and distributing quality product to US consumers for over 16 years. Our margins are small, netting to just a hair over 3% at the end of the day. We have struggled like most companies during the last 3-4 years to remain profitable as the US recession and product pricing increases have rippled thru our industry. Our US business is now being threatened by the fruit of the Byrd Amendment. Currently we are facing threats of anti dumping inspections against factories we do business with. Though you may debate the purpose, we see this as nothing more than a way to eliminate your competition. Bankrupting an importer as a result of this law is not only an option, but a strategy. Up to this point, we were simply in a wait and see position, and ultimately prayed our factories would "pay" petitioner attorney's for them to have their names removed from the inspection lists. This activity increased when the US petitioners stopped receiving duty funds after the first few years of the anti dumping cases. Now they are faced with two options, receive funds thru factory payments, or eliminate your competition. Of course, all logical definitions of having a factory pay someone to be removed from an inspection list this is simply extortion. And the factories are faced with paying these lump sums of money or be left with the realities of an unimaginable and unpredictable inspection from the Department of Commerce. We pay a duty of 7.24%, and we cannot even imagine how we can control, or influences a vendor to fit or not fit requirements that an anti dumping inspection may cause. But we as the importer of record are responsible for the results of the inspections. It’s like making our customers responsible for audit results and failures to properly account for our profits and/or tax. I am a huge supporter of American jobs, a second generation family businessman, and I’m so proud that our company has not yet had to lay one American off during the last two years. But the retroactive penalties that come with this law may one day cause our doors to close. We can't think of even how we can manage buying goods, and selling them for a price in the US from factories that have anti dumping limitations. For us, it's Bedroom furniture from China... This means that it’s much more than an act to manage import prices, it’s an act to eliminate importing, and importers. We are currently subject to paying additional duties for a period of 2008 and 2009 that is currently unknown. We don’t know what to do with our inventories, product and every direction we look is challenging. The impacts to both the retroactive duties and the adjustments to our inventories is immeasurable. I have witnessed first hand the benefits of world trade, both to the lives it enhances in other countries and the values we receive at the retailer’s doors in the US. I am a student of international business, and think it's the backbone to world peace and stability. American jobs in furniture were lost because of environmental laws, and the evolution of our labor, but these jobs were replaced by retailers and distributors and importers. At the end of the day, this law has done nothing but jeopardize an American importing business, and raised the prices of our goods for the end consumer. The best part is the only people truly benefiting are the lawyers! I pray that congress one day realizes the illegal acts from US petitions and unintended consequences of the Byrd Amendment. God Bless America... Good luck paying $10,000 for a bedroom in the next few years and more US unemployment.
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Comments
Extortion
Unfortunately, our industry has been swarmed with anti dumping activity since 2004. We are an importer of furniture from Asia, and ultimately an American business that employees ~150 US workers. We've been importing and distributing quality product to US consumers for over 16 years. Our margins are small, netting to just a hair over 3% at the end of the day. We have struggled like most companies during the last 3-4 years to remain profitable as the US recession and product pricing increases have rippled thru our industry. Our US business is now being threatened by the fruit of the Byrd Amendment. Currently we are facing threats of anti dumping inspections against factories we do business with. Though you may debate the purpose, we see this as nothing more than a way to eliminate your competition. Bankrupting an importer as a result of this law is not only an option, but a strategy. Up to this point, we were simply in a wait and see position, and ultimately prayed our factories would "pay" petitioner attorney's for them to have their names removed from the inspection lists. This activity increased when the US petitioners stopped receiving duty funds after the first few years of the anti dumping cases. Now they are faced with two options, receive funds thru factory payments, or eliminate your competition. Of course, all logical definitions of having a factory pay someone to be removed from an inspection list this is simply extortion. And the factories are faced with paying these lump sums of money or be left with the realities of an unimaginable and unpredictable inspection from the Department of Commerce. We pay a duty of 7.24%, and we cannot even imagine how we can control, or influences a vendor to fit or not fit requirements that an anti dumping inspection may cause. But we as the importer of record are responsible for the results of the inspections. It’s like making our customers responsible for audit results and failures to properly account for our profits and/or tax. I am a huge supporter of American jobs, a second generation family businessman, and I’m so proud that our company has not yet had to lay one American off during the last two years. But the retroactive penalties that come with this law may one day cause our doors to close. We can't think of even how we can manage buying goods, and selling them for a price in the US from factories that have anti dumping limitations. For us, it's Bedroom furniture from China... This means that it’s much more than an act to manage import prices, it’s an act to eliminate importing, and importers. We are currently subject to paying additional duties for a period of 2008 and 2009 that is currently unknown. We don’t know what to do with our inventories, product and every direction we look is challenging. The impacts to both the retroactive duties and the adjustments to our inventories is immeasurable. I have witnessed first hand the benefits of world trade, both to the lives it enhances in other countries and the values we receive at the retailer’s doors in the US. I am a student of international business, and think it's the backbone to world peace and stability. American jobs in furniture were lost because of environmental laws, and the evolution of our labor, but these jobs were replaced by retailers and distributors and importers. At the end of the day, this law has done nothing but jeopardize an American importing business, and raised the prices of our goods for the end consumer. The best part is the only people truly benefiting are the lawyers! I pray that congress one day realizes the illegal acts from US petitions and unintended consequences of the Byrd Amendment. God Bless America... Good luck paying $10,000 for a bedroom in the next few years and more US unemployment.
Extortion
Unfortunately, our industry has been swarmed with anti dumping activity since 2004. We are an importer of furniture from Asia, and ultimately an American business that employees ~150 US workers. We've been importing and distributing quality product to US consumers for over 16 years. Our margins are small, netting to just a hair over 3% at the end of the day. We have struggled like most companies during the last 3-4 years to remain profitable as the US recession and product pricing increases have rippled thru our industry. Our US business is now being threatened by the fruit of the Byrd Amendment. Currently we are facing threats of anti dumping inspections against factories we do business with. Though you may debate the purpose, we see this as nothing more than a way to eliminate your competition. Bankrupting an importer as a result of this law is not only an option, but a strategy. Up to this point, we were simply in a wait and see position, and ultimately prayed our factories would "pay" petitioner attorney's for them to have their names removed from the inspection lists. This activity increased when the US petitioners stopped receiving duty funds after the first few years of the anti dumping cases. Now they are faced with two options, receive funds thru factory payments, or eliminate your competition. Of course, all logical definitions of having a factory pay someone to be removed from an inspection list this is simply extortion. And the factories are faced with paying these lump sums of money or be left with the realities of an unimaginable and unpredictable inspection from the Department of Commerce. We pay a duty of 7.24%, and we cannot even imagine how we can control, or influences a vendor to fit or not fit requirements that an anti dumping inspection may cause. But we as the importer of record are responsible for the results of the inspections. It’s like making our customers responsible for audit results and failures to properly account for our profits and/or tax. I am a huge supporter of American jobs, a second generation family businessman, and I’m so proud that our company has not yet had to lay one American off during the last two years. But the retroactive penalties that come with this law may one day cause our doors to close. We can't think of even how we can manage buying goods, and selling them for a price in the US from factories that have anti dumping limitations. For us, it's Bedroom furniture from China... This means that it’s much more than an act to manage import prices, it’s an act to eliminate importing, and importers. We are currently subject to paying additional duties for a period of 2008 and 2009 that is currently unknown. We don’t know what to do with our inventories, product and every direction we look is challenging. The impacts to both the retroactive duties and the adjustments to our inventories is immeasurable. I have witnessed first hand the benefits of world trade, both to the lives it enhances in other countries and the values we receive at the retailer’s doors in the US. I am a student of international business, and think it's the backbone to world peace and stability. American jobs in furniture were lost because of environmental laws, and the evolution of our labor, but these jobs were replaced by retailers and distributors and importers. At the end of the day, this law has done nothing but jeopardize an American importing business, and raised the prices of our goods for the end consumer. The best part is the only people truly benefiting are the lawyers! I pray that congress one day realizes the illegal acts from US petitions and unintended consequences of the Byrd Amendment. God Bless America... Good luck paying $10,000 for a bedroom in the next few years and more US unemployment.