China Innerspring Units: Reztec's Exports from Malaysia Circumventing AD Duties
The Commerce Department will continue to subject innerspring units made by Reztec Industries Sdn Bhd in Malaysia to antidumping duties on uncovered innerspring units from China (A-570-928), it said in the final results of an anti-circumvention inquiry. Reztec’s innerspring units are assembled in Malaysia from Chinese parts. The agency made no changes from its preliminary results (see 13071010). According to Commerce, Reztec didn’t provide enough information on the value that comes from the Chinese parts relative to the value that comes from assembly in Malaysia, so the Commerce Department assumed that the assembly process was minor and found the majority of the value of Reztec’s innerspring units came from China.
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Commerce also found that Reztec isn’t able to distinguish between innerspring units that contain Chinese parts, and those that do not. As a result, the agency said that it would tell CBP to continue to suspend liquidation for all entries of innerspring units from Malaysia produced by Reztec, and require AD duty cash deposits on such entries.