UFLPA Detentions on Vinyl Tile Eat Into Lumber Liquidators' Profits, Company Says
Lumber Liquidators reported decreased profits in the third quarter of 2023 as a result of CBP detentions of vinyl flooring products under the Uyghur Forced Labor Prevention Act, the company said in a quarterly report released Nov. 8. The detentions took $1.6 million off profit margins at the company, and, when combined with payments of antidumping and countervailing duties, turned profit growth negative for the quarter.
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“Throughout 2023, the CBP has requested additional documentation with respect to the UFLPA for some shipments of vinyl flooring originating from Asia,” LL Flooring said in the report. “We require our vendors to follow our strict guidelines on responsible sourcing, obtain periodic certifications from them concerning compliance with these standards, and perform audit procedures of their supply chain documentation. However, we determined it was most cost effective to return the majority of the product that had been detained by CBP to the affected vendor.”