here - United States Fashion Industry Association

Transcription

July 15,2011
Ms. Marilyn R. Abbott
Secretary
United States International
500 E Street, SW
Washington, DC 20436
Re:
.............. _- ..-•••..... .....•..•........
.;.
Trade Commission
Office of the
Secretary
lnt'l frade: Commission
Petition Seeking Relief from Market Disruption Caused By Imports of
Upholstery Fabric and Fumiture Parts of Textile Fabrics from the Peoples
Republic of China, Inv. No. TA-42 1-_
Dear Madam Secretary:
On behalf of the National Textile Association (''NTA'') and pursuant to Section 421 (b) of the
Trade Act QfJ974, 19 U.s.C. § 2451 (b) and Subpart E ofPart206.ofthe
Rules of Practice
and Procedure of the U.S. International Trade Commission, I Submit the enclosed petition for
relief from market disruption caused by increasing imports of upholstery fabric and furniture
parts oftextile fabric from China. In accordance with Commission Rule 20 1.8( d), 19 C,F .R.
§ 20-l.8(d), I enclose the original and l-lcepies of the petition, which is public in its-entirety,
I also provide an additional four copies for the Commission to provide to the-President, the
U.S. Trade Representative, the Committee on Ways and Means ofthe House of
.
Representatives and the Committee on Finance of the Senate, pursuant to 19-U.S.C.
§2451(b)(4).
Pursuant to Commission Rule 206.8(a), 19 C.F.R. § 20(:).8(a), the requisite certification
concerning the accuracy and completeness of-the information in the-petition is attached
hereto. Please do not hesitate to contact me if you have any questions.
~
David Trumbull
Vice President, International
Trade; National Textile Association
CERTIFICATION
I, David Trumbull, Vice President, International Trade of the National Textile Association,
hereby certify that I have reviewed the attached petition and that-the factual information
contained therein is-accurate and complete to the best of my knowledge .
. SU~~
Dated: July 15,2011
BEFORE THE
UNITED STATES INTERNATIONAL TRADE COMMISSION
PUBLIC DOCUMENT
UPHOLSTERY }<,ABRlCSAND FURNITURE
PARTS OF TEXTILE MATERIAL FROM
THE PEOPLE'S REPUBLIC OF CHINA
Inv. No. TA-421-_
PETITION FOR RELIEF FROM MARKET DISRUPTION
.-PURSUANT ro SECTION 421 (b) OF THE TRADE ACT OF 1974
Petitioners:
National Textile Association (''NT A")
on.behalf'of the NTA Upholstery Fabrics Committee
Dated: July 15, 2011
- 1-
Table of Contents
1. Introduction
,
1
2. Name and description of the imported product concerned, tariff treatment, and name and
description of the like or directly competitive domestic product concerned (19 C.F.R.
§206.44(b»
~
2
(a)
Broadwoven flat upholstery fabric other than micro denier suede
2
(b)
Chenille fabrics
7
(c)
Coated textiles
7
(d)
Micro denier suede ("MDS") upholstery fabrics
:
8
(e)
Cut pieces of fabric entered as furniture parts
9
3. The domestic industry and representativeness (19 C.F.R. § 206.44(c» .............................•. 10
(a)
Names and street addresses of firms represented in the petition
10
(b)
Percentage of domestic production of the like or directory competitive domestic like
product accounted for by petitioners
;
,
12
(c)
Names and address of all other producers of the domestic like product
13
IV.
Import data for at least each of the most recent five full years (19 C.F.R., § 206.44(d)
14
(a)
Broadwoven flat upholstery fabric other than micro denier suede
14
(b)
Chenille fabrics
14
(c)
Coated textiles
.......•...................... 17
(d).
Micro denier suede upholstery fabrics ..~
.
·
20
(e)
Cut pieces of fabric entered as furniture parts
' ;
,
25
.V" Domestic production data for at least each of the most recent five full years (1-9C.F.R. §
.206.44(e»
~_
28
VI.
Data showing injury and/or thr-eat of injury (19 C.F.R. §206.44(f)
28
(a)
Idling of production facilities and underutilized capacity
28
(b)
Inability of [l1l11S to carry out domestic production operations-at a reasonable level of
profit 34
(c)
Information concerning unemployment or underemployment
;
34
(d)
Information concerning declines in sales or market share, increases in inventory,
and/or downward trend in production, profit, wages or employment
;
_~
36
(e)
'Information concerningextentto which firms in the industry are unable to generate
adequate-capital to finance the modernization of their plants and equipment., .;
37
(f)"
Information regarding the extent to which the United States is the focal point for the
diversion of exports of the article concerned by-reason of restraints on exports of such article
to, or on imports of such article-into, third country markets
38
(g)
Information regarding the productive capacity in The People's Republic of China, any
unused productive capacity and any potential for product shifting ..........•............................... 38
VII.
Information concerning cause of injury (19 C~F.R. § 2-06.44(g)
39
VIII. Reliefsought and purpose thereof (19 C.F.R. §206.44(i»
_
:
41
(a) Purpose
~
41
(b) Relief requested
~
42
IX.
Additional information
~~
~
44
(a)
Names and addresses ofD.S. importers and Chinese-producers known to Petitioners 44
(b)
Products for which the petitioner requests the Commission to-seek pricing information
51
(c)
Customer Names And Addresses
51
-2-
(d)
Information concerning lost sales and lost revenue allegations
57
Conclusion
~
58
Appendix A: U.S. imports of Chinese-origin broadwoven fabric including upholstery fabric
(2006-2010) in SME
Appendix B: U.S. imports of Chinese-origin broadwoven fabric including upholstery fabric
(2006-2010) in dollars
_
Appendix C. Furniture Today "2001 A Brutal Year for Textiles" Andrews, Susan M. May 19,
2002
Appendix D. Furniture Today June 2, i003 Andrews, Susan M .
Appendix E. Consumer Product Safety Commission Standard for the Flammability of
-Residential Upholstered Furniture; Proposed Rule (73 FR 11701)
I
'
r
-3-
1.
Introduction
This is a petition under section 421 (b) of the Trade Act of 1974, as amended, 19 U.S.C.
§2451(b), and Subpart E of Part 206 of the Rules of Practice and Procedure of the u.S.
International Trade Commission, seeking relief from market disruption caused by imports of
upholstery fabrics and furniture parts oftextile materials from the People's Republic of China.
This petition is submitted on behalf of the domestic United States broadwoven upholstery textile .
manufacturing ("UTM") industry generally and specifically on behalf of the National Textile
Association (''NT A") Upholstery Fabrics Committee (hereinafter "Petitioners").
This petition presents evidence and information reasonably available' to Petitioners that
upholstery fabric and furniture parts of textile material are being imported into the United States
from the People's Republic of China in .such increased quantities and under .such conditions as to
materially injure the domestic industry. Statistics published by the U~S. Census Bureau clearly
demonstrate that imports of upholstery fabric and furniture parts-of textile material from Chinahave increased substantially since China was admitted to the World Trade Organization in 200 1,
. while domestic production, shipments and market share have declined just as substantially
1
•
During this period, the largest domestic plants producing upholstery fabric have been shuttered,
resulting in significant loss of capacity, and thousands of workers who have lost their jobs. The .
declines in production, shipments, sales and market share are depriving domestic producers of
the investment and capital needed to maintain and improve the competitiveness of domestic
upholstery fabric plants. In-short, there can be no question that imports of Chinese .upholstery
fabric and furniture parts of texti-le material are B. significant cause of material injury to the
domestic industry.
1 Petit-ioners have endeavored to identify and include all information and data that are required by the Commission's
regulations as set forth at 19 C.F.R. § 206.44.
- 1-
The industry is also threatened with further material injury from Chinese upholstery
fabric and furniture parts of textile material due to imports of broad woven upholstery fabrics of
Chinese origin; micro denier suede upholstery fabric of Chinese origin, including micro denier
suede upholstery fabric entering the U.S. duty free via foreign trade zone ("FTZ") operations in
Mississippi and North Carolina; and "furniture parts of textile material that enter the U.S. dutyfree in circumvention of U.S. tariffs on such upholstery fabrics in the roll form. The threat of the
approval of additional FTZs for upholstery (an additional filing in Indiana is pending) and
increased importation of cut textile parts of furniture are a continuing, and growing threat to the
domestic upholstery fabrics industry and are likely 10 contribute to more plant closings and disappearance of good-paying jobs unless we are granted the relief sought
2.
.
"
Name and -description of the iD)ported product concerned, tariff treatment,..and
name and description of the like or directly competitiVe domestic product concerned
(19 C.F.R. §206.44(b»
The imported Chinese upholstery fabrics and furniture parts of textile materials which are "
the subject of this petition are defined as follows:
(aJ
Broadwoven flat upholsteryfizbric other than micro denier suede
"Broadwovea-febrics of chief weight of.cotton or man-made fiber, of weight equal to or
exceeding 200 glm2. These fabrics may be classified.in any-ef'the following lO-digit statistical
tariff classifications in the Harmonized Tariff Schedule of the United States ("HTSUS"):
15209.39.0020-
[Woven Fabrics of Cotton, Dyed-Satin Weave or Twill Weave; Sateens, => 85
Ipercent by Weight of Cotton, greater than 200 glm2
"
-2-
8.40%
5209.3 9 .0040
Woven Fabrics of Cotton, Dyed Satin Weave or Twill Weave: Twills, => 85
,percent by Weight of Cotton, greater than 200 glm2
8.40%
:5209.39.0060
Woven Fabrics of Cotton, Dyed Duck, Except Plain Weave, => 85 percent by
Weight of Cotton, Weighing greater than 200 glm2
8.40%
'5209.49.0020
Yarns of DifIerent Colors other Fabrics Jacquard Weave, => 85 percent
'Cotton, Width greater than 127 em greater than 200 glm2
8.40%
:5211.32.0040
Dyed 3-Thread or 4- Thread Twill Fabric, less than 85 percent by Weight of
'Cotton, Mixed with Man-Made Fibers, Weighing greater than 200 glm2,
~apped
'
8.10%
!
Dyed Satin Weave or Twill Weave: Sateens, less than 85 percent by Weight
'of Cotton, Mixed with Man-Made Fibers, Weighing greater than 200 glm2
15211.39.0020
,
,
Dyed Satin Weave or Twill Weave: Twills, less than 85 percent by Weight of
Cotton, Mixed with Man-Made Fibers, Weighing greater than 200 glm2
15211.39.0040
-
,
I
8.10%
--'
Dyed-Duck, Except Plain Weave, less than 85 percent by Weight of Cotton,
Mixed Mainly of Solely with Man-Made Fibers, Weighing greater than 200
ig/m2
/5211.39.0060
8.10%
8.10%
,Y: arns
of DifferentColors, 3-Thread or 4- Thread Twill Fabric, less than 85
lpercent Cotton, Mixed with Man-Made Fibers, more than200'glm2, not
_~~pp_ed
,
5211.43.0030
8.10%
,
Yarns of Different Colors, other Fabric, not Plain Weave, less than 85 percent
Iby Weight of Cotton Mixed with Man-Made Fibers greater than 200 glm2
8.10%
15212.23.1020
Dyed Woven Fabric, Combed-of Cotton, greater than or equal to 36 percent
1by Weight of Wool or Fine Animal Hair, Weighing greater than 200 glm2 '
16.50%
:5212.23.6040
'Dyed Duck, of Cotton, Containing less than 36 percent by Weight of Wool or
IFine Animal-Hair, Mixed-with other Fibers..greater than 200 glm2
7.S-0%
15212.23.6090
!Byed other Woven Fabric, not Plain Weave, of Cotton; COntaining less than
136percent by Wceight of Wool, Mixed with other Fibers, greater thllIl200
iglm2
r: __
._.
_...__' ,.__".._._.
:5211.49.0090
~
L
__
0,-,,
_._
._--
••••.
, 15212.24.6030
·7.80%
7.80%
15212:24:6090
[YarnsofDifferent Colors, other than Jacquard Woven Fabric, of Cotton;
IMixed with other Fibers, Weighing greater than 200 glm2
7.80%
~407.10.0090
'Woven Fabrics of Synthetic FiiamentYarn; Woven Fabric of High Tenacity
Yarns, of Nylon or Other Polyamides, Synthetic Filament, other
13.60%
:5407.20.0000
Free
:5407.42.0060
c·-
14.90%
•
i
,5407.43.2()60
8.50%
-3-
5407.52.2060
Woven Fabrics of Synthetic Filament: Dyed Woven Fabric, => 85 percent of
Textured Polyester Filament Yams, Greater Than 170 glm2
14.90%
5407.53.2060
Yams of Different Colors Woven Fabric, => 85 percent of Textured Polvesterl
Filament Yams, Weighing greater than 170 glm2
12%
15407.61.1100
Dyed Fabrics of Polyester, of Single Yam, Decitex less than 75, not more
lthan 80 Decitex, Having 24 Filaments per Yam, Twist of 900 or More /
15407.61.9100
Other Woven Fabric of Sin Yam, Measuring more than 75 Decitex, not more
'than 80 Decitex, Twist >= 900 turns/meter, Having 24 Filamentsper Yam.
14.90%
:5407.61.9935
Dyed Fabrics, other than Flat, => 85 percent by Weight of Non-Textured
Polyester Filament Yams, Weighting more than 170 glm2
14.90%
5407.69.2060
[Dyed Woven Fabric, less than 85 percent by Weight of Non- Textured
,Polyester Filament Yams, Weighing more than 170 glm2
19.4
cents/kg +
18%
.... "~.--... ....
--,..
~--- --~
[Yamsof Different Colors Woven Fabric, less than 85 percent of Non[Textured, Thread Count> 69 butnot > 142 In the Warp and > 31 & < 71 In
... 'Fillin~L
'
:5407.69.3000
5407.69.4060
.
!5~07.72.0060
Free
iyarns of Different Colors Woven Fabric, less than 85 percent by Weight of
Non-Textured Polyester Filament Yarns, greater than 170 glm2 ..
8.50%
...iDye(fWo~i~ Fabric, => 85 percent by Weight of other Synthetic Filament
Y arns! P~ly~s!~r! ~~i~ing greater than 1IQ.g!m2
14.90%
'Yarns of.Different Colors, other Woven Fabric, => -g-s percent by Weight of
[Other Synthetic Filament Yarns. greater than 170 glm2
8.50%
15407.83.0090
'Woven Fabrics of Synthetic Filament Yam, Containing less than 85 percent
iby Weight of Synthetic Filaments: Yams ofDiffColors other Woven Fabric
8.50010
j540'7.9~..6510
[Dyed Woven Fabric, not Combed, of Synthetic Filament Yams, greater than
lor.equal to' 36-percent by Weight of Wool or Fine Animal Hair
25%
:5401.92.0520
[Dyed Woven Fabric, Combed,of Synthetic Filament Yams, greater than or
lequal to 36 percent.by Weight of Wool or Fine Animal Hair
15407.73.2060
I
,
.
-' •..•.. '-.
j5407 .92.20 10
........
... i...••.•......
_ •••.... ~..
.....•
..•,......................
. .•......•.....-........
...........•.•...•......•....
_
25%
1.......•.....
Dyed Woven Fabric; of Synthetic Filament Yarns, ether Woven Fabrics,
IMixed Mainly or Solely with Artificial Filament or Metalized Yams
+
'
_ .. __
-.--
....................•..
--_ .••..........
14.9()4/o
;-
j5407.93.2010-
IYarns of'Different-Celers other Woven Fabric of Synthetic Filament Yarns,
[Mixed Mainly or Solely with-Artificial Filaments or 'MetalizedYams
12%
154-07';93.2050
Yarns -of-Different Colors Satin 'Weave or Twill Weave, of Synthetic
IFilament
Yams, Mixed Mainly or Solely with other Fibers,
I2%
15407.93-;-2090
j5408.10.0000
[Yams of Different Colors other Woven Fabricrof'Syrrthetic Fil~ent Yams,
Fi1?e.r~·
..
Woven Fabrics of Artificial Filament Yarn, Including Fabrics Obtained From
tHeading.5405: Woven Fabrics of High.Tenacity Viscose Rayon Filament,
Yarns
lMixed Mainly or Solely wi~.o~er
-4-
12%
14.90%
Dyed Woven Fabric, of Artificial Filament Yarns, Including Fabrics Obtained
From Heading 5405: Mixed with Wool, less than 36 percent by Weight
5408.32.1000
..
-of··
.,...
12%
, __
5408.32.3000
!From Heading 5405: greater than or = To 30 percent Silk Valued Over
1$33/kg
6.90%
:5408.32.9010
From Heading 5405: Mixed Mainly or Solely with Synthetic Filament Yarns
15%
Dyed other Woven Fabric, of Artificial Filament Yarns, Including Fabrics
,iObtained From Heading 5405: Mixed Mainly or Solely with other Fibers
:5408.32.9090
Ya.'11Sof Different Colors Satin Weave or Twill Weave of Artificial Filament
Yarns, Mixed Mainly or Solely with other Fibers
i5408.33.9050
b514.21.0090
Dyed Plain Weave Duck, less than 85 percent by Weight of Polyester Staple
, Fibers, Mixed Mainly or Solely with Cotton, Weighing greater than 170 glm2
- -'
;
;
-
12%
14.90%
T',,._
jDyed 3-4 Thread Twill Fabric; less than 85 percent by~Weight of Polyester
:Staple Fibers, Mixed with Cotton, Weighing greater than 170 glm2, not
:JIj'apped
15514.22.002()
I
... -,
15%
14.90%
.
Dyed Satin Weave or Twill Weave, less than 85 percent by Weight of
'Polyester Staple Fibers. Mixed with Cotton, Weighing greater than 170 gfm2
5514.23.0020
:
:
15514.23.0040
Dyed Duck, Except Plain Weave-less than 85 percent by Weight of Polyester
iStaple Fibers, Mixed Mainly or Solely with Cotton,greater than 170 glm2
14.90%
j551429.0040-
Dyed Satin Weave or Twill Weave, less than 85 percent by Weight of other
[Synthetic Staple Fibers, Mixed with Cotton; Weighing greater than 170 glm2
12%
;5514.29.0090
'Dyed other Fabric, not Plain Weave, less than 85 percent by Weight of other
[Synthetic Staple Fibers, Mixed with Cotton, greater than 170 gIm2
12%
ij5-14.3().3100
:Woven Fabric Synthetic,Sf<85%
!., .--
--····---·--·----,--.,,·1··~···
15514.30.3210
._
YdcPy SfPl/Wv
14.90%
__
....
- ,Woven Fabric Sy Lt 85% M C Gt 170glm2 Ydc 3-4t Psf'Blu Dn .
!55i~jO:3~~Q.-;W~~f:~~a~~~
l551436.3310
Mxet->170g/m2
._ _
_-
14.90%
Sy~~ 8~%!vi CQi-l~O~~yd~~-4tjlY S~Q~_
'Woven Fabric SyLt 85% M-C Gt 170glm2 Ydc OwfpsHacq
Wv
r55i4~30.339a--- \V~v;~F~bri~-Sy
iiisO/;M C Gt -17ogt~ Yd~~O~~iN-J;cW ..., ,--'_._-----_ _-,------,--,'
., ,.,,"'._ ,.,.--."".---------'" ,-, '''-' --, ,_ _--,---._-,, _,.,.._-, ---"_
--'--
,._,, --- -+-,
1s514~30.3920
IWoven Fabric Sy Lt 85%M C Gt 170glm2 Ydt Ot Woven Fabric Jac Wv
Free
l5514.36.3990
[Woven Fabric Sy LL85% M C Gt170gfm2 Y de Ot Woven Fabric NESOI
Free
lssI5.19.0090
IOther WtWen Fabrics of Synthetic Staple Fibers: other Fabric, not Plain
'Weave, of'Pelyester Staple Fiber-s, Mixed with other Fibers
12%
Other Woven Fabrlcs of Synthetic Staple Fibers: Satin Weave or Twill
i55-1521.0040
r-···'·····
[Weave, of Acrylic Staple Fibers, Mixed with Man-Made Fibers Filament
Yarns.
.. _ ..
..-.;-
-.
i
15515.22.0520
20.10%
-5-
:5515.29.0090
'Other Woven Fabrics of Synthetic Staple Fibers: other Fabric, not Plain
Weave, of Acrylic or Modacrylic Staple Fibers, Mixed Mainly with other
'Fibers
---..
_.
Free
[5515.91.0040
'Other Woven Fabrics of Synthetic Staple Fibers: Satin Weave or Twill
Weave, of other Synthetic Staple Fibers, Mixed with Man-Made Fibers
'Filaments
12%
[5515.91.0090
'Other Woven Fabrics of Synthetic Staple Fibers: other Fabric, not Plain
'Weave, of other Synthetic Staple Fibers, Mixed with Man-Made Fiber
Filaments
12%
15515.99.0510
iOth~r Woven Fabric Synthetic Sf 0 Woven Fabric M WIFAH Gt=36% Wgt
IWIFAH
25%
'5515.99.0520
Other Woven Fabric Synthetic Sf 0 Woven Fabric M WIFAH Gt=36%Wt
W IFAH combed ... - --_.- ... ~.-~---~
25%
:5515.99.9005
'Other Woven Fabric of Synthetic Staple Fiber Oth Yr OfCI Ex Bd/Jc W
8.50%
-
'5515,99.9020
__,()ther ~()ven FabricsofSynthetic
-
---
-
S~apl~ l"'i~~r2~r_than
-
Shee~!n~
i5_~I~·9.~;~94Q~_~jOtherV!~v~n F~~~ ofSyntheticStapleFiber
2t~~!_~h.an Satin/Twill Wv
~5~}E::99
.9090
,Other Woven Fabric of Synthetic Staple Fiber Other NESOI
,
!W~~~-Fabrics-of-Artifi~iaiS~pi~Fibers:Dy~~fPi~Wea~eF~bric,
=> 85
15516.12.0010,
ipercent of Artificial Staple Fibers
'
;5516.12.0020
iWoven Fabrics of Artifici~lSbtple Fibers: Dyed Sat~Weay.e
!Fabric, => 85 eer~~~t of ~~ti~i~ Staple Fibers_
.__
or Twill Weave
Woven Fabrics of Artificial Staple Fibers: Dyed other Fabric, not Plain
=> 8~p~r~~!lt of i\.ttific~al~!Rple Fiber~_'
f
i5516.12.0090yveave,
!:5~~~1~__
?000 __ ,~~~~~ :~b~C~;~:~;;~~~r~~
;
:5516.32.0510
,
15516.32.0520
15516.31:1000
[
- ~.--.. -
--
..-!.. ....----.~--
:~~~~;:
_
:f~:~::nt~:l::,_~oven
8.50%
8.50%
8.50%
14.90%
14.90%
14.90%
14;9()%
DyedWoven Fabric, not Combed, less than 85 percent by Weight-of
[Artifidal Staple Fibers, greater than or equal to 36 percent by Weight of
lWool
2S%
Dyed Woven Fabric. Combed, les~ than 85 percent by Weight of Artificial
Staple Fibers, greater than.or.equal to 36 perc-ent by Weight of Wool or FAR
25%
Dy-ed Woven Fabric, less than 85 percent by Weight of Artificial Staple
iFibers, Mixed Mainly or SO-lelywith Wool, less than 36 percent W-ool or
IFAH
-
--i-----
- 12%
,--
jDyed Satin Weave or Twill Weave, less than 85 percent by Weight of
iArtificial Staple Fibers, Mixed-Mainly or Solely with Cotton
l2%
i5516A2.0090
IOyed other Fabric,not Plain Weave, less than 85 percent-by Weight of
'Artificial Staple Fibers, Mixed Mainly or Solely with.Cotton
12%
15516.43.0035
Yarns of.Different Colors other Woven Fabric..Iess than 85 percent by
IWeight of Artificial Staple Fibers, Mixed/Cotton, Width greater than 127-cm
Free
15516.42.0060
____,L
;
-
--
,5516.92.0060
Dyed Satin Weave or Twill Weave, 'less than 85 percent-by Weight of
iArtificial Staple Fibers, Mixed-Mainly or-Solely with other Fibers
12%
[5516.92.0090
iDyed other Fabric, not Plain Weave, less than 85-perc~nt by Weight of
iArtificial Staple Fibers, Mixed Mainly or Solely with other Fibers
12%
- 6-
-
Specifically excluded from the list above are:
(1) Fabrics unlikely to be used for upholstery based on their HTSUS descriptions,
i.e., fabrics in the greige state ("bleached/unbleached"
in the HTSUS), cheesecloth,
corduroy, cuprammonium rayon (Bemberg), denim, gauze, necktie fabric, printed fabric,
printcloth, poplin or broadcloth, and sheeting, and
(2) Fabric, the importation of which from China, did not increase in the period
2006-2010.
(b)
Chenillefabrics
These fabrics-may be classified in any of the follow 10-digit statistical tariff
classifications:
H1'SUS
5801.21.0000
580-1.24.0000
Sg01.25.001b
5801.25.0020
5801.26.0010
5801.26.0020
MFNRate
20.20%
1050%
18.50%
18.50%
Free
Free
HTSUS
MFNRate
5801.3 LOOOO
17.20%
5801.34.0000
14%
5801.35.0010
17.20%
5801.35.0020
17.20%
5801.36.0010
·9.80%
5801.36.0020
·9.80%
Specifically excluded are wool chenilles.
° (e)
Coatedkxtiles.
These fabrics may be classified in any of the following classifications:
. MFNRate
HTSUS
5903.20.1009
5903.20.2500
2.70%
7.50%
5903.90.10005903.90.2500
5907.00.6000
5907.00.8090
-7-
2.70%
750%
Free
Free
(d)
Micro denier suede ("MDS") upholsteryfabrics
Micro denier suede ("MDS") emerged as a product of concern to domestic
u.s. textile
manufactures when, on August 3, 2007, the U.S. Dept. of Commerce published (72 FR 43232)
applications submitted to the Foreign-Trade Zones Board by Bauhaus USA, Inc., H.M. Richards,
Inc., and Lane Furniture Industries, Inc. for upholstered furniture manufacturing facilities in
Mississippi. The applications, which were identical, requested Foreign Trade Zone (FTZ)
Authority to import duty-free foreign-origin, micro-denier suede fabrics (classified under
HTSUS Headings 5407, 5512, 5515, 5516, 5903, 5906, 6001, 6005~ and 6006 finished with a
caustic soda wash process. The applications define "Micro denier suede" as:
...a specific kind offabric that is produced using a micro-denier yarn. The .
production process involves two l'brushings, " one before and one after the dyeing
process. Finally, a caustic soda finish is applied to the fabric in order. to achieve
the sueded texture. The size and tightness of weave along with the finish process
make the fabric more effective in repelling dirt, dust and food particles.
The Examiner's Report submitted December 12, 2008 by Pierre Duy adopts the common
industry definition of "micro denier" as "diameter of 1 denier or less.".
'The 8-digit U.S. tarifflines for such micro denier suede are:
5407.92.20
5407.9320
5512.19.00
5515.12.00
5516.23.00
5903.20.25
woven fabrics of'synthetic filament yarn not elsewhere-specified or
indicated ("NESOI"), dyed, NESOI,
woven fabrics of synthetic filament yarn NESOI, of yarns of different
colors, NESOI,
woven fabrics containing 85% or more by weight of polyester staple
fibers, other than unbleached or bleached,
woven fabrics of polyester staple fibers, mixed mainly or solely witli manmade filaments, NESOI,
woven fabrics of artificial staple fibers, < 85%-by wt of such fibers, mixed
mainly/solely wiman-made filaments, of different colo-red yarns,
textile fabrics of man-made fibers, impregnated.coated, covered or
laminated with polyurethane,
70% by weight rubber or plastics,
wo
-8-
5906.99.10
6001.22.00
6001.10.20
6001.92.00
6005.32.00
6005.34.00
6006.32.00
(e)
rubberized textile fabrics not knitted or crocheted, of cotton, other than
fabrics of heading 5902,
knitted or crocheted looped pile fabrics of man-made fibers,
knitted or crocheted "long pile" fabrics of man-made fibers,
knitted or crocheted pile fabrics (other than "long pile" or looped pile) of
man-made fibers,
dyed warp knit fabrics (including those made on galloon knitting
machines) of synthetic fibers, other than those of headings 6001 to 6004,
printed warp knit fabrics (including those made on galloon knitting'
machines) of synthetic fibers, other than those of headings 6001 to 6004, '
and
dyed knitted or crocheted fabrics of synthetic fibers, NESOI.
Cutpieces offabric entered aslumiture parts .
Fabric cut to shape and ready to be attached to a piece of specific furniture is classified as
furniture parts in Chapter 94 of the Harmonized System ("HS") under two HS headings: 9401.90
(parts of seats, which includes chairs,sofas, and all seating) and 9403.90 (parts of other furniture
(excluding children's highchairs, booster seats, and similarseats).
Parts ef seats (other than of a kind used fer motor vehicles) are classified at l G-digit
statistical reporting number of the HTSU-S:
9401.90.5021 Part of seats (other than of a kind used for motor vehicles, of textile
materials, cut to shape
In the case parts of furniture other than seats (other than of a kind used for motor
vehicles) there are four statistical breakouts for textile-parts: .
9403.90-.6005 parts of furniture (other than seats) other than of a kind used for motor,
vehicles, of textile material, except cotton, for toddler beds, cribs,
bassinets and cradles,
9493~99~6010 parts of furniture (other than seats) other than of a kind used for motor
vehicles, of textile material, except cotton, for play yar-ds and other
enclosures for confining children,
9403.90.6080 parts of furniture (other than seats) other.than of a kind used for motor
vehicles, of textile material, except cotton, other, and
9403.9'0-.8051 parts of furniture (otherthan seats) other than of a kind used for motor
vehicles, of cotton, cut to shape (excluding toddler beds, cribs, bassinets
and cradles, play yards and other enclosures for-confining children).
--9 -
All these classifications enter the U.S. duty-free. Note that prior to. 2011 the lu-digit
breakouts were different.'.
3.
The domestic industry and representativeness (19 C.F.R. § 206.44( c»
(a)
Names and street addresses offi1'1llSrepresented in the petition
This petition is filed on behalf of the domestic upholstery fabric manufacturing industry.
Petitioners are the member companies of the National Textile Association (''NTA'') Upholstery
2
Prior to January 1, 2011, there were five c-lassifications for textile furniture parts:
HTSUS 9401.90.1020, (textile material cut to shape for seats for motor vehicles);
H"TSUS 9401.90.5020 (textile material cut to shape for other seats);
HTSUS 9403.90.1050 (textile material cut to shape for furniture-Iother than seats) in motor
vehicles).
Hl;SUS 9403.90.60 (textile material (other than cotton) cut to shape for other furniture); and
HTSUS 9403.90.8050 (cotton material cut to shape for otherfurniture).
On August 14,2008, Congress enacted the Consumer Product Safety Improvement Act of2008
("CPSIA"), Public Law 110-314" 122 Stat. 3016 With the CPSIA,the element lead, particularly lead in
consumer products designed or.intended primarily for children 12 years eld and younger, became an issue
of concern to the Consumer Product Safety Commission modifications were made throughout the HTSUS
to. provide for 10-digit statistical breakouts for children's products in order to. track.such products.
Upholstery parts classifications in effect prior to 2011 were affected:
9401.90.5020 (textile material cutto shape for seats other than for motor vehicles) was
.replaced by 9401.90.5005 (parts (including, but not exclusively of textile material) for children's
highchairs, booster seats. and similar seats}and 9401.90.5021 (parts, other of textile material, cut
to shape).
.
9403.90.60 (textile material (uther than cotton) cut to shape for furniture (other than fOFmotor vehicles» was split into three lines: 9403.90.6095 (parts offurniture (other than seats)
other than of a kind used for motor vehicles, of textile material, except cotton, for toddler beds,
cribs, bassinets and cradles), 9403.90.6010 (parts of furniture (other than seats) other than of a
kind used for motor vehicles, of'textile material, except cotton, for play yards and other
enclosures for confining-children), and 9403.90.6080 (parts of furniture (other than seats) other
than of a kind used for motor vehicles, of textile material, except cotton, other).
9403 .90.&05&-(-cottonmaterial cut to shape for furniture (other than for motor vehicles»
was replaced by: 9403.90.801ft:(-parts (including, but not exclusively of textile material) for
toddler beds, cribs, bassinets and cradles), 9403.90.8015 (parts (including, but not exclusively of
textile material) for play yards and other enclosures for children), and 9403.90,8051 (parts of
furniture (other than seats) other than of a kind used for motor vehicles, of cotton, cut to shape).
-10 -
Fabrics Committee ("UFC"). The National Textile Association is a not-for-profit 501 (c)(6) trade
association, incorporated in the Commonwealth of Massachusetts, with its office at
6 Beacon Street, Suite 1125
Boston, Massachusetts 02108
(617) 542-8220
The plants in which the petitioners are engaged in the weaving of broad woven upholstery
fabrics are:
American Silk Mills
75 Start.Street
Plains. PA 18705
David Rothschild Coinpany,.lnc.
618 Grooms Road
Reidsville, NC 27320
Milliken and Company
Pine Mountain Plant
7495 Hamilton Road
Pine Mountain, GA 31822
MilIikencand Company
" Cedar Hill Plant
225 Bob Little Road
Jonesville, SC 29353
Enterprise Plant
512 Pumpkintown Road
Marietta, GA 29661
Raxon Fabrics
2289 Ross Mill Rd.
Henderson, NC 27536
Sunbury Textile Mill
1200 M1ller Street
Sunbury, PA17801
Valdese Weavers Main
1000 Perkins Rd.
Valdese, NC 28690
Valdese Weavers Crescent
280 Crescent St.
Valdese, NC 28690
Valdese Weavers Lovelady
705 Lovelady Rd.
Valdese, NC28690
Valdese Weavers - Circa 1-801
One Jacquard Dr.
Connelly Springs, NC 286-1:2
Vietor Textiles
941 Grinnell Street "
Fall River, MA 02721
Wearbest SiI-Tex Mills Ltd.
325 Midland Avenue
Garfield, NJ 07026-
The corp~.tate headquarters of the member companies of the NTA Upholstery Fabrics
Committee} are:
American Silk Mills
41 Madison Avenue
New Y-ock, NY 10010
Raxon Fabrics
2289-Ross MiD Rd.
Henderson, NC 27536
Cotton Incorporated
6399Westm Pkwy
Cary, NC 27513
Sunbury Textile Mills, Inc.
1206 Miller Street
Sunbury, P.A. 17801
David Rothschild Com3)any, Ine,
512 12th Street
Valdese Weavers, Inc.
1-000Perkins Road Southeast
3 Two companies.Cotton
Incorporated and Microfibres, Inc. are members of the NTAUpholstery Fabrics
Committee and participate in the upholstery fabric industry sector but are not weavers.of broadwoven upholstery
fabrics and are,therefore, omitted from the list of domestic U.S. facilities where upholster fabrics are woven. ,"
- 11 -
PO Box 2002
Columbus, GA 31902
920 Milliken Rd.
Spartanburg, SC 29304
(b)
Valdese, NC 28690
Victor
941 Grinnell Street
Fall River, M.A. 02721
Wearbest Sil-tex Mills, Ltd.
325 Midland Avenue
Garfield, N.J. 07026
Percentage of domestic production of the like or directory competitive domestic
like product accountedfor
by petitioners.
Information concerning domestic production of upholstery fabric on a plant-by-plant
basis in not reasonably available to Petitioners. However, based on their personal knowledge of
the industry, Petitioners believe that, collectively, they represent well-in excess of half of all
domestic production.
- 12-
(c)
Names and address of all otherproducers of the domestic likeproduct
Abercombie Textiles, LLC.
P.O. Box 1140
Middlebury, IN 46540
J.B. Martin Company, Inc.
10 East 53rd Street #3100
New York, NY 10022
Absecon Mills
Vienna & Aloe
P.O. Box 672
Cologne, NJ 08213
Johnston Textiles, Inc.
300 Colin Parkway
Phoenix City, AL 36869
Keystone Weaving Mills, Inc.
1349 Cumberland Street
Lebanon, PA 17042
Bentex
3709 Alliance Drive
Greensboro, NC 27407
Lantal Textiles, Inc.
1300 Langenthal Drive
Rural Hall, NC 27045
Carpostan Industries
205 West 12thAvenue
Lake-View, SC 29563.
Loom Craft, Inc.
50D Guthrie Road
Belton, SC 29627
Chambers Fabrics
1914 South Elm Street
High Point, NC 27260
Marlatex Corporation
408 Brook Street
Belmont, NC 28012
Cone Jacquards (owned by-Abercrombie
Textiles)
3400 Highway 22I-A
Cliffside, NC 28024
MTL {Material Technology & Logistics)
1325 Sen. Robert Mellow Drive
Jessup, PA 18434
Dicey Mills, Inc.
430 Neisler Street
Shelby, NC 28152
R&D Weavers
, 376 Pinehurst Read
Ellenboro, NC 2804-0
"
Glen Raven Custom Fabrics, LLC.
1831 N. Park Avenue
Burlington, NC 2"7217
S'Tl/Kings Plush (SpeciaIty Textiles, Inc.)
515 Marie Street
Kings Mountain, NC 2-8086
Heritage Classics, LLC.
155 Westerly Hills-Drive
Forest City, NC 28043
Se7en, LLC.
(owned by Burlington Manufacturing
Services who bought Tietex's upholstery)
5928 Hwy. -87 North
Gibsonville, NC 27249
Jacquards, Inc.
1690 West English Road
- 13 -
Tahoe
404 Elm Road
Blacksburg, SC 29702
Weavetec, Inc.
216 Wilbur Street
Blacksburg, SC 29702
True Textiles/ Guilford of Maine
5300 Corporate Grove Drive Southeast,
Suite 250
Grand Rapids, MI 49512
IV.
Wyoming Weavers
315 Simpson Street
Swoyersville, PA 18704
Import data for at least each of the most recent five full years {19' C.F.R. § 206.44( d)
U.S. imports of fabrics from China4 support Petitioners contenti-on that there has been a
surge in imports from China.
(a)
Broadwovenflat upholsteryfabric other thlln micro denier suede'
These are broadwoven fabrics of chief weight of cotton or man-made fiber; of weight
equal to or exceeding 200 glm2. For data see Appendix A: U.S. imports of Chinese-origin
broadwoven fabric including upholstery fabric (2006-201 O).in square meter equivalents. ("SMB")
and Appendix B: UrS. imports of Chinese-origin broadwoven fabric including upholstery fabric
,(2006-2010) in dollars.
(b)'
Chen1l1efobrics.
These fabrics, which are chenille fabrics other than of wool, may be-classified in any-Of
the follow 10-digit statistical tariff classifications:
5801.21.000H
580 1.2l:iA)010
5801.35.0010
5801.24.0000
5801.26.0020
5801.35.0020
5801.25.0010
5801.31.0000
5801.36.{)OtO=c
5-801.25.0020
5801-.34:0000
580L36.0020
The domestic U.S. UFM industry produces chenille fabrics and these import compete
directly against American products. In 2001 the U.S. imported 2.4 million 5MB of these chenille
4
All import statistics are from United States International Trade Commission Dataweb.
- 14-
fabrics. In 2002, China's first full year as a World Trade Organization ("WTO") member, that
number grew to 4.3 million SME and further surged to 17.3 million SME in 2005, for a five-year
growth rate of 631 percent.
Table 1. U.S. imports of chenille fabric, other than of wool, from China (2001-2005)
. square me ter
eaui Ients.
m
er equrva
HTSUS
5801.36.0010
5801.36.0020
5801.31.0000
5801.35.0020
5801.34.0000
5801.35.0010
5801.24.0000
5801.26.0020
5801.25.0020
5801.26.0010
5801.25.0010
5801.21.0000
Total
2001
599,331
655,884
8,434
408,203
3,371
137,137
0
3,640
258,010
7,577
282,962
84
2,364,633
2002
1,333,369
1,526,400
24,821
557,025
12,581
104,081
11,200
51,747
350,797
.8,709
311,842
0
4,292,572
2003
1,527,615
773,512
2,405
368,680
0
30,671
0
18,619
241,855
12,673
125,534
0
3,101,564
2004
1,509,175
1,503,167
81,529
313,318
16,265
18,049
3,150
40,030
117,110
32,966
38,653
212
3,673,624
2005
10,454,991
5,645,465
56,504
656,612
127;073
39,725
9,162
Sl;547
83,010
117,76~
40,005
·1,644
17,283,566
The increasein U.S. imports of these fabrics from China as measured in dollars over the
period 2001 to 2005 was 473 percent, a huge increase but less than the increase inquantity,
which is consistent with China's gaining market-share by undercutting prices.
- 15 -
HTSUS
5801.36.0010
5801.36.0020
5801.31.0000
5801.35.0020
5801.35.0010
5801.34.0000
5801.25.0010
5801.26.0020
5801.26.0010
5801.25.0020
5801.24.0000
5801.21.0000 .
Total
Table 2. U.S. imports of chenille fabric, other than of wool,
from China (2001-2005) in dollars.
2001
2002
2003
2004
2005
1,660,171
1,600,412
37,279
1,837,249
385,897
15,606
754,875
12,143
23,420
685,760
0
312
7,013,124
3,720,512
4,304,750
38,835
2,440,636
276,498
46,002
1;068,633
210,066
22,142
878,590
22,480
0
,13,029,144
4,718,625
2,524,751
8,219
1,708,732
105,419
0
314,592
61,389
34,470
612,066
0
0
10,088,263
5,255,763
5,340,585
220,213
1,471,107
58,897
48,583
137,327
171,616
165,083
332,054
7,748
757
13,209,733
23,641,255
13,168,472
71,236
2,115,860
143,949
290,598
111,917
126,234
274,439
236,263
25,73-'5
6,496
40,212,454
U .S, imports of chenille fabric of Chinese origin remained relative steady for the period
2006 through 2010, but grew relative to other suppliers, from 68 percent of all V.S. 'imports in
2001>to 82perceIit in 2010.
Table 3~U.s. imports· of chenille fabric, .other than of wool, from China (2006-2()lO)
.
• ale nts.
m.square
meter eqUIV
HTSUS
5801.36.0010
5801.36.0020
580L3f.OOOO .
58U1.35.0020
5801.34.0000
5801.3 5.·0010
5801.24;OOOQ·
15801.26.0020
580L25.0020
5801.26.0010
5861.25.0010
5801.21;0000
T-otal
2006
21,979,144
10,218,503
439,363
551,002
857,408
30,585385
382,302
206,613
171,163
165,986
10,261
35,.{)12,715
2007
25,622,085
12,588,706
356,725
463,249
188,586
99,291
35,725
1,519,430
162,684
70~55:Y
146,039
86,859
41,339,932
2008
22,561,914
14,128,028
270,337
476,380'
142,726
74,524
62,939
1,791,212
115,3:11
181,336
51,162
0
39,.855,869
- 16-
·2009
17,765,769
12,552,303 .
224,038
382,258
tl-4,162180,807
45,566
893,649
106,498
35-,4®
28,636
13,690
32,342,7-8$
2010
20,131,346
13,865,415
433,100
406,553
256,658
209,997
94,559
75,798
69,456
68,494
60,223
8,532
35,680,131
Table 4. U.S. imports of chenille fabric, other than of wool, from China
(2006-2010) in dollars.
HTSUS
2006
2007
2008
2009
2010
5801.36.0010
5801.36.0020
5801.31.0000
5801.35.0020
5801.35.0010
5801.34.0000
5801.25.0010
5801.26.0020
5801.26.0010
5801.25.0020
5801.24.0000
5801.21.0000
Total
(c)
45,895,278
26,494,265
511,220
1,980,688
103,945
1,608,604
506,796
984,740
427,022
491,274
1,122
31',811
79,036,765
54,776,978
52,296,265
32,844,446
40,242,512
428,250
651,183
1,487,583
1,791,143
289,824
236,891
468,483
641,734
492,612
193,513
4,185,116
5,062,636
269,819
666,376
453,884
350,799
194,489
113,727
207,631
0
96,272,366 . 102,073,528
40,685,571
33,278,126
767,406
1,137,071
504,815
265,207
180,139
2,561,034
194,963
312,816
81,638
35,488
80,004,274
46,853,948
38,833,264
1,478,327
1,340,413
756,736
489,909
418,430
331,096
237,331
207,792
197,368
30,656
91,175,270
Coatedtextiles.
u.s. imports
of coated textiles including upholstery fabric fr-om China in the period 2001
through 2005 grew from 24 thousand -SME to 16.9-million· SME, a growth rate of 68,155 percent.
Table 5. U.S. Imports from China of coated textiles including-upholstery fabric
(2'()01-2005) inSME
HTSUS
2002
2003'
2001
2004
2005
5903.90.25'()0
5963.20.2500
5903.20.10.00
5907.00.6000
5903.9(>.1000
5907.00.8090
5907.-00-.801()
!Total
42
320
19511
,
4,877
0
.
(J
0
24,750
58,921
49,002
-8,141
245,516
37,353
346,398
.()
745,351
1,015,935
194,059
1,048,694
' 249,331
72,612
160,908
0
2J41,539
- 17--
4,838,279
8,891,069
48-S,466
1,275,508
1,010,130
645,044,
14
17,148,510
10,660~21
2,777,385
322,201
'902;094
1,069,5641,161,"697
170
16,893,030
Table 6. U.S. Imports from all countries of coated textiles including upholstery fabric
(2001-2005) in SME
HTS
2001
2002
2003
2004
2005
5903.90.2500
5903.20.2500
5903.20.1000
5903.90.1000
5907.00.6000
5907.00.8090
5907.00.8010
Total
106,865,697
23,608,694
1,493,206
5,127,328
7,577,482
1,693,843
138
146,366,388
116,765,229
26,551,274
3,009,611
3,909,720
8,319,207
1,665,973
5,141
160,226,155
110,640,687
27,543,660
2,564,643
4,711,344
6,956,628
2,570,553
4,194
154,991,709
95,846,830
49,451,058
1,966,147
5,634,969
6,996,758
3,325,902
204
163,221,868
123,107,563
23,211,534
2,634,900
6,983,549
6,074,830
3,581,137
1,026
165,594,539
Over the same time, imports from China, in dollar value, grew 32,641 percent, half the
rate of growth as measured in 8MB, again showing how China gains market share by
undercutting prices.
Table-7-. U.S. Imports from China of coated textiles including upholstery fabric
200;4
HTS
2001
2002
2003
2005
5903.90.2500
5903.20.2500
5903.20.1000
5903.90.1000
5907.00.6000
5907.00.8090
5907.00.8010
Total
,
.
500
1,046
47,658
0
12,482
0-
c
61,686
49,822
114,072
20,401
57,746
426,095
591,235
0
1,259,371
-1,814;fH3
337,854
84lr;825
77,458
492,172
328,141
0
3,891,263
7,003,8.s6
3,777,392
564,751
708,218
4,551,213
1,25(),294295
17,85-6,019
9,656,735
4,413,329
47T,718
-1,661,841
1,682,729
2,309,214
1,097
20,196,663
.
'
Table 8. U.S~Imports from all countries of eeated textiles iDcluding upholstery fabric
-(2001-200Sl in deBarS
-Z001
2-002
2005HTS
20(}4
2003
5903.20~2500
5903.90.2500
5903-.90.1000
5907.00.8090
5903-.29.1000
5901.00.6000
5907.00.8010
Total
44,196,868
62,908,683
9.511,823
tr,-097 ,056
7,511,389
14,054,597
1,607
14::4,282,023
45,163,954
7T,102,701
9,458,323
5,274,698
17,496,885
15,549,033
48,292
170,0~3,886
51-,815,.651
83,733,876
11,002,650
5~699,089
9,&06,925
13,070,497
30,132
175,158,820
- 18 -
61,914,247
62,040,341
70,128,484
90,175,751
_15,177,854
15,636,467
-8,035,981
10,104,599
8,740,21l:3
12,010,949
r5,416,083
1~16~772
9;459
1,668
179,999,273 _ 201,561,631
Over the period 2006 through 2010, U.S. imports of these fabrics from China grew by 37
percent at the same time that total imports declined by 34 percent. Imports from China, as
percentage of total imports doubled, from 9 percent to 20 percent.
Table 9. U.S. Imports from China of coated textiles including upholstery fabric
(2006-2010) in SME
- 2009
HTSUS
2006
2007
2008
2010
5903.90.2500_
5903.20.2500
5903.20.1000
5907.00.6000
5903.90.1000
5907.00.8090
5907.00.8010
Total
5,895,742
3,925,682
2,429,327
782,870
1,191,479
_ 278,858
354,926 _
14,858,884
5,278,377
2,699,191
1,878,759
1,277,546
1,491,604
227,338
357,422
13,210,237
7,669,513
5,548,364
1,816,043
1,130,374
1,197,834
73,162
335,578
17,770,868
5,965,640
4,803,777
4,444,102
1,123,152
830,509
291,004
1,531
17,459,715
8,915,371
5,546,586
3,226,614
1,245,880
911,264
511,289
1,163
20,358,167
Table 10. U.S. Imports from aU countries of coated textiles including upholstery fabric
(2006-2010) in SME
HTS
2006
2007
2008
2009
2010
5903~90.2500
5903.29.2500
5903.20.100:0 5903.90.1000
5907.00.6000
5907.00.8090
5907.00.8010
Total
..
109,589,711
29,859,722
- 3,911,655
4,636,195
5,194,068
3,783,761
378,359
157,353,471
127,806,127
31,298,651
3,747,310
4,255,287
3,819,822
3,275,449
359;991
174,622,637
53,033,5-83
31,742,9'()6
2,912,493
3,949,728 2,757,360
2,172,984
337,333 97,506,387
59,192,658
22,623,580
4,977,602
2,647,100
2,483,009
2~124;731
4,165
94,052,845
59;847,353
31,643,611
3,7~0I5
3,620,000
2~630,748
2,188,240
3,15-2
103,676,119
Table 11. U;S. Imports from-<;hina of coated textiles including-u.pholstery fabric
- (2001.-2005) in dollars
2-0-10
HTSUS
2f)J)8
2006
2007
2009
5903.90.2500
590-1.2tl.2500
5903.20.11100
5903.90.1000
5907 .00.6000~
5907.00.8090
5907.00;8010
Total
7,539,3-86
7,668,792
3,635,183
1,673,385
1,217,859
3.60,799
543,690
22,639-,094
6,025,9533,933,443
2,967,936
2,201,H-$
2,054,030
585,257
622,302
18,390~O36
7,858,672
8,5t3,154
2,623,058
2,2'73,551
1,921,624
176,528
553,647
23,920,234-
- 19-
6,674,143
8,911;025
3,24Q,549
2,107,311-1
2,077,73-8
505,209
1,631
23,~17,636
11,273,418
10-,279-,9.66
3,503,979
2,811,929
1,858,808
1,121,390
4,729
30,854,219
Table 12. U.S. Imports from all countries of coated textiles including upholstery fabric
. (2001-2005) in dollars
HTSUS
2006
2007
2008
2009
2010
5903.20.2500
5903.90.2500
5903.90.1 000
5907.00.8090
5903.20.1000
5907.00.6000
5907.00.8010
Total
(d)
73,864,703
88,527,608
12,907,001
9,194,222
13,852,316
9,677,226
624,081
208,647,157
94,171,170
88,625,978
12,715,372
9,675,242
12,945,755
9,099,309
666,423
227,899,249
107,301,804
71,519,537
54,991,393
48,333,330
11,357,763
8.280,121
8,642,023
5,774,565
9,764,400
6,085,576
7,816,929
7,578,730
583,809 .
24,517
200,458,121
147,596,376
103,143,943
61,502,803
13,515,568
6,606,592
6,552,947
5,432,702
58,636
196,813,191
Micro denier suede upholsteryfabrics
Micro denier suede upholstery fabric of Chinese origin, including micro denier suede
upholstery fabric entering the U.S. duty free via foreign trade zone ("FTZ") operations in
Mississippi and North Carolina, directly compete with upholstery fabrics produced by Petitioners
The 8-digit U.S. tariff lines which include MDS fabrics are:
5407.92.20
woven fabrics of synthetic filament yarn not elsewhere specified or
indicated (''NESOI''), dyed, NESOI,
5407.93.20
woven fabrics of synthetic filament yam NESOI, of yams of different
colors; NESOI,
5512.19.00woven fabrics containing 85% or more by weight of polyester staple
fibers, other than unbleached or bleached,
5515-.12.00
woven fabrics of polyester staple fibers, mixed mainly or solely with manmade filaments, NESOI,
5516:23.0-0
woven fabrics of artificial staple fibers, < 85% by wt of such fibers, mixed
mainly/solely w/man-made filaments, of different colored yams,
5903.20.25
textile fabrics of man-made fibers, impregnated, coated, covered-or
laminated.with polyurethane, nfo 70% by weight rubber or plastics,
5906.99.10
rubberized textile fabrics not knitted or crocheted, of cotton, other than
fabrics-Of heading 5902,
6001.22.00
knitted QI crocheted looped pile fabrics of man-made fibers,
6001.10.20
knitted-or-crocheted "long pile" fabrics ofman-made fibers,
6001.92.00
knitted or crocheted pile.fabrics (other than "long pile" or looped pile) of
man-made fibers,
6005.32.00
dyed warp knit fabrics (including those made on galloon knitting
machines) of synthetic fibers, other than-those of headings 6001 to 6004,
6005.34~"O-o printed warp knit fabrics (including those.made on galleon knitting
machines)-ofsynthetic fibers, other than those of headings 6001 to 6004,
and
- 20-
6006.32.00
dyed knitted or crocheted fabrics of synthetic fibers, NESOI.
U.S. imports of Chinese-origin fabric of the classifications that include MDS were 2.6
million kilograms in 2001 and grew to 3.9 million kilograms in 2002, the first full year that
China was in the World Trade Organization. The surge continued with U.S. imports from
Chinese reaching 21.8 million kilos in 2005, for a 743 percent increase over those five years. In
comparison, total imports from all sources increased by 5 percent over that five-year period
Table 13. U.S. Imports from China of fabric classified in ten statistical reporting numbers
of the HTSY8-eontaininfl MDS (2001-2005) in kilograms
HTSUS
2001
2002
2V03
2004
2005
5407.92.20
5407.93.20
5512.19.00
5515.12.0Q
5516.23.00
5903.20.25
5906.99.10
6001.22.0Q
6001.10.20
6001.92.00
Total
240,416
115,723
164,285
211,186
106,450
123
796,221
-62,912
264,168
625,264
2,586,748
130,083
390,331
244,514
326,820
224,648
20,943
2JJ60,]22
73:J25
175,288
212,699
3,858,573
126,101
1,170,992
287,010
693,986
359,90J
72,759
2,300;696
32,533
-188,329
224;370
- 5,456,083
- 21 -
226,607
2,159,099 354,077
1,313,323
395,122
569,394
2,337,949
77,358
260,344
292,632
7,985,905
802,574
3,205,983
539,60A
3,011,374
1,003,908
787,883
1,861,367
8,201,142
928,95-3 1,446,656
21,795,444
Table 14. U.S. Imports from all countries of fabric classified in ten statistical reporting
numbers of the HTSUS containin2 MDS (2001-2005) in kiloauams
HTSUS
2001
2002
2003
2004
2005
5407.92.20
5407.93.20
5512.19.00
5515.12.00
5516.23.00
5903.20.25
5906.99.10
6001.10.20
6001.22.00
6001.92.00
Total·
3,778,516
2,214,691
1,414,866
3,729,920
.2,880,973
3,941,296
1,888,987
2,665,182
16,838,577
22,143,112
61,496,120
3,210,448
. 2,615,739
1,630,267
5,035,216
3,155,552
4,267,208
2,747,176
1,500,682
19,309,472
15,168,777
58,640,537
3,008,290
3,655,377
2,119,275
5,500,430
2,721,623
4,741,498
2,956,999
1,205,079
20,371,419
11,991,259
58,271,249
2,283,080
5,176,567
2,064,643
6,793,939
3,192,525
6,254,369
3,284,128
1,204,403
20,566,226
7,590,710
58,410,590
2,127,428
5,888,781
2,001,224
8,714,445
2,703,189
5,892,107
2,495,242
2,434,832
25,375,656
6,947;853
64,580,757
The statistics for China and the world over the same period in dollars show a similar
trend.
Table 15. U.S. Imports from China of fabric classifiedm ten statistical reporting numbers
of the HTSUS containin2 MDS (2001-2005) in dollars
HTSUS
2001
2002
2()03
2004
2005
5407.92.20
5407.93.20
5512.19.ee
5515.12.00
5516.23.00.
5903.20.25
5906.99.10
6001.10.20
6001.22.00
66UT.92.00
6005.32.00
6005.34.00
6006.32.00
Total
,
1,026,697
685,303
876;536
1,331,854
452,622
1,046
3-,575,681
1,587,603
232,236
2,204,465
0
01
-0
11,974,043
586,140
2,468,7~
1,231,102
2,208,220
1,264,832
114,072
9,853,016
956,571
286,219
-1,142,536
2,869,115
465,403
2,343,070
25,849,004
919,809
7,561,083
1,647,434
4,854,107
1,951,833
337,854
10,906,937
I,T37,8-S4
175,164
1,214,391
3,40-7,715
961,937
3,nO,349
38,186,487
- 22-
1,617,893
15,686,024
2,067,580
9,137,887
2,100,48'7
3,777,392
10,004,443
1,558;896
435,260
1,003,060
5,886,285
1,2~;326·
3,644,400
58,148,939
4,141,723
17,964,181
2,704,633
.17,903,559
5,462,809
4,413,329
8,449,345
4,834,305
36,719,347
5,61·8,077
W,508,160
3,011,039
13,132,097
134,922,6-10
numbers of the HTSUS containin2 MDS l2001-2005) in dollars
HTSUS
2001
2002
2003
2004
2005
5407.92.20
5407.93.20
5512.19.00
5515.12.00
5516.23.00
5903.20.25
5906.99.10
6001.10.20
6001.22.00
6001.92.00
6005.32.00
6005.34.00
6006.32.00
Total
26,339,081
21,036,684
17,224,870
29,505,403
23,522,317
44,196,868
11,513,303
14,490,531
66,363,387
105,741,422
0
0
0
359,933,866
22,426,077
22,656,970
20,492,508
37,625,015
23,071,083
45,163,954
15,556,584
9,743,010
81,372,935
80,216,763
57,187,177
11,042,354
143,765,417
570,319,847
21,552,118
31,171,759
22,769,364
43,499,633
22,528,406
51,815,651
16,585,966
8,887,881
86,366,894
57,121,967
5<t,552,002
9,927,600
112,646,077
539,425,318
19,418,071
41,266,321
23,657,082
54,361,317
24,478,602
62,040,341
16,577,935
10,834,698
88,087,352
38,032,939
73,759,998
8,883,783
133,832,007
595,230,446·
16,926,445
42,420,270
22,536,590
63,731,697
22,643,720
61,914,247
12,816,454
16,735,598
119,641,304
37,642,196
73,688~870
11,379,785
179,654,765
681,731,941
Over the-period 2006 through 2010, U.S. imports of these fabrics from China increased 7
percent, while imports from all sources Were down by 20 percent, with the result that China grew
from accounting for 45 percent of all imports in 2006 to 6I percent of all imports in 20TO.
Table 17. U.S. ImportslroDLChina of fabric classified in ten statistical reporting nmabers
of the HTSUSc~ntaininI!:MDS f~006-2010} in SME
..
HTSU.S:
2007 .
20082006
20()9
2010
5407.92.20
5407.9?20
5512.19.00
5515.12.00
5516.23.00
5903.20.25
5906;99.10
6001.10.20
6001.22.00
6001.92.00
T..otal
1,519,034
2,748,770
1,053,930
5,113,374
2,622,567
1,On,479
2,428,911
486,775
6,254,430
4,421,s-I5
27,682,585
.1,007,325
2,677,706
1,190,654
5,122,684
2,305,927
761,769
1,816,648
538,967
&,902,339
~12,619
30,236,638
- 23 -
502,482
2,827,604
1,327,248
4,739,164
2,008,693
1,667,4821,155,595
461,745
10,922,583
6,8-'74,140
32,486,736
672,858
2,882,643
896,0:35
3,463,504
1,038,945
1,271,309
6-10;982604,305
9,39t,348
6,767,314
27,599,243
699,158
2,616,893
1,009,156
3,269,545
1,238,6~<4
1,443,533
433..,139
696,775
10,422,588
7,762,281.
29,592,292
Table 18.
HTSUS
5407.92.20
5407.93.20
5512.19.00
5515.12.00
5516.23.00
5903.20.25
5906.99.10
6001.10.20
6001.22.00
6001.92.00
Total
u.s. Imports
from all countries of fabric classified in ten statistical reporting
numbers of the HTSUS containin~ MDS (2006-2010) in SME
2006
2007
2008
2009
2010
2,607,206
5,664,726
3,462,227
8,963,233
3,649,271
7,019,531
3,354,283
1,124,347
17,703,213
7,578,260
61,126,297
2,293,377
5,641,443
3,139,884
7,917,902
3,121,239
7,948,391
2,851,102
1,081,620
19,931,201
8,148,435
62,074,594
1,657,212
4,993,089
2,862,327
6,805,172
2,780,462
9,253,110
1,792,133
925,564
17,780,565
8,536,801
57,386,435
1,467,717
4,355,849
1,615,975
4,642,183
1,381,647
6,016,467
794,157
1,097,459
14,624,953
8,157,522
44,153,929
1,371,376
4,140,712
1,718,178
4,858,974
1,626,869
8,508,431
908,829
1,241,275
15,116,330
9,152,799
48,643,773
Table"19. U.S. Imports from"China of fabric classified in ten statistical reporting numbers
of the HTSUS containin2 MDS (2006-2010) in d-oDars
HTSUS
2006
2007
2008
"2010
2009
5407.92.20
5407.93.20
5512.19.00
"5515.12.00
5516.23.00
5903.20.25
59-06.99.10
6001.10.20
6001.22.00
6001.92~00
6005.32.0.0
6005.34_00
6006.32..00
Total
7,057,490
""12,809,678
5,I-64,836
14,596,045
7,166,284
30,697,202
14,621,657
3,933,443
5,769;695
30,562,862
14,986,041
7,668,792
"11,645,695
8,401,265
2,583,002
2,958,333
24,506,443
34,442,099
i7,062,832
27,793,506
4,232.,.837
4,886,007
7,690,492 .'
6,274,236
" 4,519,906
4,709,.703
164,931,450
" 151,748,9~5
3,121,492
15,611,530
7,484,806
30,307,337
13,537,437
8,513,154
5,647,964
2,791,530 "
39,192,534
25,967,425
3,353,684
4,948,434
0,441,331
166,918,.658
- 24-
3,049,169
"15,569;207
5,074,075
19,617,616
7,391,026
8,911,025
3,08~431
2,910,577
33,552,627
24,424,898
7,862,788
4,359,947
25,142,296
160,947,688
4,~22,450
14,326,068
5,453,058
19,263,712
9,{)57,564
10,279,966
2;325,815
3,93~82
38,192,818
28,419,902
11~97,912 .
"6,106,521
39,028,499
193,007,26'7
numbers of the HTSUS containin2 MDS (2006-2010) in dollars
HTSUS
2007
2006
2008
2009
2010
5407.92.20
5407.93.20
5512.19.00
5515.12.00
5516.23.00
5903.20.25
5906.99.10
6001.10.20
6001.22.00
6001.92.00
6005.32.00
6005.34.00
6006.32.00
Total
(e)
18,713,163
40,767,118
28,185,087
62,358,198
28,533,097
73,864,703
16,802,078
7,822,530
87,206,362
36,873,179
61,657,778
13,624,963
160,004,253
636,412,509
17,760,448
44,025,303
31,275,766
56,960,917
26,571,206
94,171,170
16,706,411
6,064,468
102,429,660
43,265,103
51,521,212
11,987,492
116,402,300
619,141,456
14,253,532
43,784,511
28,805,546
53,598,757
23,448,403
107,301,804
11,597,712
5,522,052
85,170,687
38,292,006
45,054,160
10,454,895
83,516,822
550,800,8-87
9,753,954
31,470,326
17,734,382
32,847,479
12,480,319
71,519,537
5,100,893 .
6,412,919
70,348,788
33,341,347
46,767,886
9,015,624
81,333,574
428,127,028
9,962,751
33,916,853
17,852,575
35,725,556
15,769,135
103,143,943
6,822,825
8,304,643
71,718,124
37,947,243
60,030,548
10,091,356
95,866,835
S07,152,387
Cut-pieces offabric entered tIS fumiture parts
A serious threat to the vitality of the domestic UTM industry in recent years has been theemergence of imported "cut-and-sew" kits. These kits ar-epurchased as fully cut-and-sewn pieces
of upholstery fabric, The kit is shipped across the Pacific Ocean and stuffed with foam, and
attached to the wood sofa frame or zipped closed by workers in America. Cat-and-sew kits
directly compete with the products of the domestic UTM industry because they contain imported
fabric exclusively, Importing cut-and-sew kits circumvents U.S. tariffs on upholstery fabric in
roll form as the ki-ts-enter the U.S. duty-free. Cut-and-sew kits are an increasingly commonplace
manufacturing technique with serious negative affects for the-domestic UTM industry.
- 25-
Cut-and-sew kits (other than of a kind used for motor vehicles) entered the U.S. under
three 10-digit statistical reporting numbers in the HTSUS during the period 2001 through 20105:
9401.90.5020
9403.90.6000
9403.90.8050
(textile material cut to shape for other seats);
(textile material (other than cotton) cut to shape for other furniture); and
(cotton material cut to shape for other furniture).
In2001 U.S. imports of upholstery cut-and-sew kits of Chinese origin totaled $2.4
million" and were 3 percent of all U.S. imports of kits. In 2002, China's first full year as a WTO
member, that number grow to $40 million of imports of kits of Chinese origin, accountirig for 46
'percent of all imports of such kits. Imports of kits of Chinese origin continued to surge to $333.6
million in 2005 for a five-year growth rate of 13,582 percent.
5 As noted above in section 2, on. January 1, 2011 the statistical reporting numbers for furnitur-e-parts were changed;
the-currently, .such imports are classified as follows:
.Parts of seats (other than of a kind.used for motor vehicles) are classified at 10-digit statistical reperting
number
of the H'TSUS:
94Q1.90 .5021
.
Part of seats (other than of a kind used for motor vehicles, of textile materials, cut to
shape
..In the case parts of furniture other than seats( other than of a kind used for motor vehicles) there are four
statistical breakouts for textile parts:
~403 .90.6005
Parts of furniture (other than seats) other than of a kind used for motor vehicles, -oftextile
material, except cotton, for toddler beds, cribs, bassinets and cradles,
9403.90,6010
Parts of furniture (other than seats) other-than of a kind used for motor vehicles, oftextile
material, exeept cotton, for play yards and other enclosures for confining children,
9403.90.60&0
Parts of fumiturejother than seats) otherthan ofa kind used for motor vehicles, of-textile
material, except cotton, other, and
9403.90.8051
Parts offumiture (other than seats) otherthan ofa kind used for motor vehicles, of
cotton, cut to shape (excluding toddler beds, cribs, bassinets and cradles, play yards and
other enclosures-for confining children).
Imports of goods of headings 9401.90 and 9403.90 are available in dollar value only; there is no unit of quantity
for these classifications.
6
- 26-
Table 21. U.S. imports of cut-and-sew kits from China and from all sources
(2011 2005) in dollars
a
2001
China
Total
2002
$2,438,501
$30,650,442
2003
$39,989,200
$87,101,333
2004
$121,589,679
$185,164,280
2005
$217,719,311
$267,872,813
$333,647,625
$396,105,894
The surge in imports of Chinese-origin kits continued and peaked in 2006 at $349
million. Imports stayed on a "plateau" during the economic recession that spanned late 2007
through early 2009. Imports of Chinese-origin kits are back on the rise, reaching a new peak of
$373 million in 2010.
Table 22. U.S. imports of cut-and-sew kits from China and from all Sources
2006
China
Total
2007
$349,100,68C
$421,071,381
2008
$345~081,376
$420,752,217
2009
$332,&90,561
$37&,043,288
2010
$337,999,944
$377,234,0361
$373,459,353
$463,672,361
As the chart below shows, even accounting for the drop in demand during the recession
of the late 2000s, imports of Chinese-origin cut-and-sew kits have been, and continue to be, on
an overall upward trend.
Chart 1. U.s.. imports of cut-and-sewkits
.500,000,009
45El,OOO,OOO
400,000,-000
350,000,000
300,000,000
-+-China
250,000,000
_Total
200,000,000
150,000,000
too,OOO,OOO
2001
2002
2003
2004
2005
2006
- 27-
2007
2008
2009
2010
v.
Domestic production
data for at least each of the most recent five full years (19
C.F.R. § 206.44(e»
Six companies provided data relating to production in our Upholstery Fabrics Committee
Survey. Their responses show that our member companies have been among the survivors in the
face of a surge of imports from China.
Table 23. NTA UFe Survey report of annual production in square yards (2006-2010)
Year
2006
2007
2008
2009
2010
ProducttonSMli
24,555,9-52
28,.423,801
26,113;799
18,422,281
22,197,91,&
% Change
from prior year
-12%
15.8%
-8.1%
-29.5%
20.5% -
..:.J
However, these data fail to tell the whole story of decline in the domestic. UTM industry.
As we shall demonstrate below, the real story is the closures in the mid to late 2000s of the
largest-domestic UTM company. Many millions of yards of productive capacity went off-line,
but the remaining domestic companies did not pick up a significant.portion of it-it
went to
China.
VI.
Data sho'wing nyury andfor threat of injury~(19 C.F.R. §206~44(f)
(a)
Ttllingof production facilities and underutilized capacity
The demise of the industry leaders
During-the 1990s, some of the upholstery textile manufacturers combined into larger
companies in order to capitalize on economies ofscale. In reference to the year 2001, one
industry executive said, of-three companies that no longer exist as domestic upholstery fab~c
- 28-
manufacturers: "Culp, Quaker and Joan accounted for two-thirds of the residential upholstery
textile market."
In 2000, the top five domestic upholstery fabric producers had estimated combined sales
of over $2 billion.7 By the end of 200 1, that number dropped to $1.8 billion in sales. By 2002,
the top five UTM's sales dropped to $1.4 billion. In two years, sales for the top five dropped 30
percent.
By 2002, the combined sales of the top eleven UTMs barely equaled the aggregate sales
of the top five just two years earlier.
In a 2003-Furtriture Today article "U.S. Fabric Producers Still.Standing Despite Import
Wave" released-a list of the top 11 American UTMs by sales. 8
Displayed below is the list:
Company
1. Joan Fabrics
7. Culp, Inc.
3. Quaker Fabric
4. Microfibres
5. TietexInteriors
6. Blumenthal
7. Hoffman
8. Valdese Weavers
9. Sunbury Textile Mills
10. Weave
11. Craftex Mills
Sales 2001 (in millions)
,$620
$369
$308
$238
uriknown
$110
$115
$73
$47
$45
$40
" Sales 2002(inmillions)
$500
$357
$350, $235
$120
$105
$105
$'79
$45
$40
'$39
7 http://www.fum.ituretoday.comlarticle/16607-2001
a brutal year for textiles.php?intref=sr Furniture Today
"2001-]\ Brutal Year for Textiles" Andrews, Susan-M. May 19,2002 (also.available as Appendix C to this petition)
8 http://www.fum.ituretoday.comlarticle/22605U S fabric producers still standing despite import wave.php?intref=RelatedArticfes
20GJ Andrews, Susan M.{also available as Appendix.D to this petition)
- 29-
Furniture T-OdayJune 2,
The 2011 status of the companies listed above on page 29:
1. Joan Fabrics- Joan Fabrics (not to be confused with Jo-Ann Fabric & Craft Stores). In
2000, Joan had $700 million in sales. By 2006, Joan estimated sales had dwindled to
$124 million. On April 11, 2007 Joan Fabrics filed for bankruptcy and liquidated. On
July 23,2007 Joari's two smallest divisions (contract and high-end) were sold to Valdese
Weavers,"
2. Culp- In 2000,Culp had fourteen plants in the U.S. In 2003 Culp began moving
manufacturing operations to China. As of 2007, Culp had closed all but one upholstery
plant in Anderson, S.C.lO In its 2910 annual report, Culp reported $91 million-:in sales of
upholstery fabric. Of that total, $14.6 million or 16% was domestically produced. The
petitioners presume the majority of the $14.6 million is tufted or woven velvet which is
outside the parameters of this petition.
3. Quaker- In July, 2007 Quaker Fabri-c-Corporation closed. It was a publicly traded
company. Quaker's 2006 sales had dropped to $151 million; in 2002 it was $350-million.
Canadian UTM Victor Innovatex, Inc. purchased a fraction Quaker's manufacturing
facilities and Quaker's intellectual property.
4... Microfibres- Continues to produce flocked upholstery fabric which is outside of the
parameters of this petition.
5. Tietex- Purchased Burlington Industriesupholstery
segment in June 2002 after
Burlington Industries declared Chapter 11 in November 2001. Tietex has since-sold- its
9 http://www.fumituretoday.comfarticle/42021Valdese __closes -purchase _ofjoan _s _Circa _180 1_Doblin _Home _MastercrafLphp
Furniture Today-staff.
Furniture TodayJuly 2T, 2007
10 Consumer Praduct Safety Commission Standard for the-FlammabilitvofResidential
Uph:olstered Furniture;
Proposed Rule "Products and-Industries Potentially-Affected" pg. 11712, Tuesday March 4, 2008. Federal Register
Volume 73, No. 43 (also available as-Appendix E to this-petition}
- 3tl-
upholstery division to Burlington Manufacturing Services whose current sales are
unknown to the petitioners, but is operating well under capacity.
6. Blumenthal Print Works- The family-owned company was founded in 1924 and was in
its third generation at the time of bankruptcy in November 2008. In December 2009,
Blumenthal completely liquidated.
7. Hoffman Mills- Completely liquidated in 2005. In the local paper, the operations director
of Hoffman cited Chinese competition as the cause of the bankruptcy.
11
8. Valdese Weavers- Valdese is currently healthy and a member of the National Textile
Association. In Spring 2008, Fabrics & Furnishings Intemational listed Valdese as having
-sales over $150 million dollars.
12
9. Sunbury Textile Mills- Sunbury is currently healthy and a member ofthe National
Textile Association.
10. Weave- In November 2009, it was announced that Weave Corporation had closed and its
creditors had seized the family-owned company's assets. The Weave plant has since reopened on a smaller scale by-the owner of American Silk Mills.
11. Craftex Mills- In 2009, Craftexelosed.
Canadian owned Victor Innovatex, Inc. purchased
'the int-ellectual property only.
As-can be seen, most ufthe large UTMs at the beginning of the decade are no longer in
operation today because of Chinese imports. The UTMs that did survive were typically niche
orientated mills,
11 http://www.freerepublic.comJfocus/fr/B02993/pes-ts
Jobs Lost)",December 16,2004. Green; Willie
12
The Carlisle Sentinel (EA), "Hoffinan Mills to Close (335
Fabrics & Furnishings Intemational"V 01. 18, No.2. Spring 2008. "The Wodd Mills Top 50"
- 31 -
The Commission's regulations require Petitioners to provide information on material
injury, including "data on production, capacity, capacity utilization, shipments, net sales, profits,
employment, productivity, inventories, and expenditures on capital and research and
development, indicating:
(i) An idling of production facilities in the industry, including data indicating
plant closings or the underutilization of capacity;
(ii) The inability of a number of firms to carry out domestic production operations
at a reasonable level of profit; and
(iii) Unemployment or underemployment within the industry."
.On March 4, 2008 the United States Consumer Product Safety Commission ("CPSC") .
.'
:
:
published (73 FR 11701) Standard for the Flammability of Residential Upholstered Furniture;
Proposed R-ule,13 which included, as part of the rule-making process, a survey of Products and
Industries Potentially Affected. According to-CPSC:·
. "The U.S. Census Bureau reported that U.S. upholstery fabric production
iri.2004 was 284 million square yards (which is the-equivalent of 189 million
. linear yards)."
and
"This production was 43 percent lower than 2002's reported production of
499 million square yards (332million linear-yards) of upholstery fabric."
and
13
See Appendix.E to this petition.
- 32-
"The number of looms in operation for the production of these fabrics
totaled 2,610 at the end of2004, down 20 percent from 3,098 looms at the end of
2002."
One American UTM executive believes "The American upholstery textile manufacturers
are currently operating between 60-70% percent capacity (assuming a five day work schedule).
There are plenty of looms standing, and we would all love to hire more people and increase
production if there was more demand for our products." During the 1990s, it was not uncommon
for UTMs to have permanent weekend shifts, and run seven days. In our survey of six
companies, four provided enough information to calculate capacity utilization, the resultwas:
Table 24. NTA UFe survey: capacity utilization rates
.. In
In
In
In
In
8-0%
79%
61%
44%
48%
2006
2007
2008
2009
2010
NOTE In the table above full capacity was defined as
.facilities running at 3 shifts for S days a weekfOr-SO weekin the year.
In;ihort, the industry has experienced idling of capacity and underutilizedcapacity
during
the period of investigation. As discussed in more detail below.zbese plant closings have occurred
at the same time that imports from China have been increasing.
- 33 -
(b)
Inability offirms to carry out domestic production operations at a reasonable
level of profit
Closings and off shoring amongst of the major UTMs demonstrates without a doubt an
inability of firms to carry out domestic production operations at a reasonable level of profit.
Four out of six companies reported sales and profits on our Upholstery Fabric
Manufacturers Survey and show income as percentage of sales declining from 10.97% in 2006 to
10.59% in 2007, and plummeting to 5.99% in 2008 and 0.26% in 2009. There was some
recovery in 2010 with income as a percentage of sales being 4.16%
According the CPSC report (cited above)
"In addition to declining sales for the leading U.S. upholstery fabric
manufacturers, the difficult state of the industry is evidenced by recent
bankruptcies of firms, that were once industry leaders, such as Joan Fabrics.
(previously the number one upholstery manufacturer) and Quaker Fabric
(previously the number three firm). Both of these firms ceased operations and
their production facilities were liquidated in 2007.,,14
(C)
Inf017lUltiOnconcerning unemployment or underemployment
..With the closing of the many large UTMs, the employment numbers in the industry
decreased dramatically as well. For2004 to 2006 the projected domestic textile and apparel
sector job loss was 630,000.15 The Southeast has been the hardest hit. From the closings of the
top firms in the industry, very few jobs were salvaged.
14
Ibid., p. 11711
IS http~//cdnet.stpi.org.tw/techroomlreportladvmatlchina
Trade, The American Textile Manufacturers Institute.
textile.pdfThe
- 34-
China Threat to World Textile and APParel
In 2000, Quaker was the largest manufacturer and the largest private sector employer in
Fall River, MA. The 2000 Quaker Fabric Corporation Annual Report stated that the company
employed 2,363 people." In the Culp, Inc. 2000 Annual Report, it was reported that the
company employed 3,800 people.
17
In that same report, Culp listed sixteen manufacturing
facilities, 15 in the United States and one in Canada. Using sales per an employee for Culp and
Quaker, it can be extrapolated that Joan Fabrics, a privately held company, employed roughly
6,000 employees in 2000.18 The vast majority of these jobs are gone today.
In addition to the dramatic closings of large UTMs, the smaller mills have shed
employees in the past decade as domestic demand for American upholstery fabrics has shrunk.
Therehas also been a shift from full-time permanent employees with fringe benefits to the use of
temporary workers as companies respond to the uncertainties of the market. While in 2001 'Only
one percent of workers at the sixco.mpanie's in the survey were, temporary workers. But number
had grown to. three percent in 2005 and 2006~and jumped again in 2007 to-six percent. While it
dropped again-in 2008 to four percent and three percent in 2009, by 2010 it was back up to. six
percent. Emplo.yers would prefer tehire full-time permanent employees with a commitment to.
the-industry in order to. minimize retraining costs, but confronted with a flood of cheap imports
from China they are forced to. conclude that the flexibility to. down-size offered by temp workers
offsets.any less in productivity. Fer the workers, new six percent of all upholstery fabric workers
represented by our survey, the cost of'the rise in Chinese imports is uncertainty about the future
16
2000 Quaker Fabric Corporation Annual Report, http://www.getlilings.comlo00009S0117-00-000793.html
17
Culp, Inc. 2000 Annual Report.littp:liwww.getfilings.com/o0000723603-00;.OO0013;html
18 In 2000, Culp had 3,8000 employees and $427 in sales (roughly $112,368 in sales per an employee), Quaker had
2,363 and $275 million in sales ($116,337 in sales per an employee). Assuming Joan averaged around $115,000 in
sales per an employee; $700 millionJn sales would translate to (i,086 employees in 2000.
- 35-
of their employment and reduced, or even no, employer-provided health care insurance and other
fringe benefits.
(d)
Inf01'1lUltionconcerning declines in sales or market share, increases in _
inventory, and/or downward trend in production, profit, wages or employment
Drop of domestic prices of Chinese textile tariff categories in the 12 months following
China's inclusion in the WTO by fiber: Cotton 48% decrease, Man-Made Fiber 46% decrease,
Mixed Fibers 57% decrease, Vegetable Fibers 29% decrease.
19
These decreased prices caused a plummet in U.S. UTM's sales as Chinese UTMs rapidly
increased its market share.
As a response to the surge of Chinese imports, some UTMs have moved their upholstery
fabric manufacturing operations to China. Culp and Richloom are two.high profile examples
specifically mentioned in the CPSC survey:
"Much of the foreign production is from facilities that-are owned or operated in
partnership with u.s.-textile
firms. For example, Culp, Inc., reported that almost 60
percent of their sales of upholstery fabrics in their fiscal year ended April 29, 2007,
consisted offabrics produced: in plants outside the U .S.,wmpared
to 17 percent of sa-ies-
just two years before. Culp owns and operates four upholstery plants in Shanghai, China,
and markets other fabrics from third party sources whichare
also located in China. The
firm only has one remaining upholstery fabric plant in the U.S ..•.down from fourteen in
2000. Culp's experience in shifting production to foreign plants has also been reported b)'
other U.S. upholstery fabric manufacturers. In January 2007 Richloom Fabrics Group
shifted production of its Berkshire Weaving upholstery line from its South Carolina plant
to a facility- in Shanghai.
,,20
19 http://cdnet.stoi.org.tw/techroomlreportfadvmatlchina_textile.pdfThe
20
Ibid., p. 11712.
- 36-
China Threat to-World Textile andApparel
Importing upholstery textile fabric into the United States is a relatively new phenomenon.
A report by Keyser Ciprus, Ltd., estimated that 8 million linear yards of residential upholstery
fabric were imported in 1997. That accounted for approximately 2 percent of total consumption
of upholstery fabric for residential furniture production in that year.21 Quaker estimated that in
2002, 11 percent of industry-wide domestic upholstery fabric sales were imported. By 2004,
Quaker's estimate had climbed to 42 percent.f One UTM executive believes that 75 percent of
2010 industry-wide residential upholstery fabric sales were imported.
It is of importance that until the late 1990s, as much as 20 percent of upholstery fabric
preduction by U.S. manufacturers was exported.f
In just a decade, the United States upholstery
fabric industry has transformed from an exporter to an industry overwhelmed by imports.
(e)
Informstil)n conceming extent to which firms in the industry are unabJe10
generate adequate capital to finance the modemization-of
their plants and
equipment
Upholstery textile production is very capital intensive. Each jacquard loom can cost up to
$250,000. Loom life is approximately 20 years and looms.require constant maintenance. Even a
company' With stagnant growth must have sour-ces-of capital to replace old equipment and stay
competitive. -Companies that are not financially healthy have difficulty borrowing money. The
flood of Chinese imports has damaged the financial health of most remaining Americans UTMs.
- 21
Ibid.
22
Ibid.
23
http://www .nationahextile.org/library/cpsc173
fr 1170 1.pdf CPSC survey, page 12.
- 37-
It is well known in the industry that European loom manufacturers have sold significantly
fewer looms in the past ten years to American UTMs. This fact points strongly to the shrinkage
of American upholstery textile manufacturing since Chinese goods have flooded the market.
UJ
Information regarding the extent to which the United States is the focal point
. for the diversion of exports of the article concerned by reason of restraints on
exports of such article to, or on imports of such article into, third country
markets
Petitioners do not reasonably have access to resources to answer this.
(g)
Inf017lUltitJnregarding the Productive capacity in The People's Republic of
'. China, any unused productive Cf!Pacityand any potentia/for product shifting
China's command economy and vast resources allow for a seemingly limitless potential
in the manufacturing of textiles. Manufacturing plants are continually built in China, and
upholstery textile mills are-among them. The-Chinese textile industry is given active government
sponsorship in the form of various subsidies and various degrees of ownership. China's central
planners have targeted textiles as an industry capable of employing its large workforce. In
addition, 'China is investing heavily in infrastructure to link the small remote towns allover their
country to bigger cities and ports on the East, This gives Chinese- UTMs potential access to an
even less expensive untapped labor force.
The Chinese UTM industry has a massive untapped labor market and the potential to
rapidly raise capital. Cheap prices drive up the demand for Chinese imports 'that cr-eates an
incentive for further Chinese industry growth.
Furthermore, looms are extremely versatile manufacturing.equipment.
Looms in the
upholstery sector can easily be.transferred to .apparel and vice versa. In China's centrally
- 38-
commanded economy, this attribute of looms creates the potential for rapid product shifting
amongst various woven goods industries.
Petitioners do not reasonably have access to quantitative data regarding China's
productive capacity.
VII.
Information concerning cause of injury (19 C.F.R. §206.44(g)
To fully comprehend the injury to the upholstery textile manufacturing industry, you
have to understand the role of UTMs in the furniture supply chain. Upholstery fabric production
is a fashion driven industry. The UTMs prov-ide the design and production of rolls of fabric to the
furniture manufacturers. The furniture manufacturers cut-and-sew the fabric and upholster it tothe furniture. The UTMs do not sell to the individual consumer, put rather manufacturing
companies. Marketing and name brand recognition is not of emphasis in the UTM industry,
because UTMs do not sell direct to consumers. Design, price and quality are ultimately what
determine sales to the furniture manufacturers. In conclusion, the domestic UTM's ruche in a
larger supply chain means that they cannot overcome the Chinese price advantage by marketing
and name recognition.
"In the last decade Chinese goods have flooded the market at record rates and at
uncompetitive prices. Chinese companies grabbed market share-at the-expense of American
UTMs. The unprecedented shift is not just explainable-by-China's
productive workforce, low
wage rate and large labor supply. These advantages are true of.many third world countries. -One
UIM executive said-in 20t1, "In had completely free labor, my fabrics would sell for 20010 less,
but a comparable Chinese goods would still be 50% cheaper."
-39-
The real advantages that Chinese UTMs have are far.more systemic. The first is the wellknown practice of state subsidies. According to recent statistics, the Chinese government retains
ownership of 52 percent of its textile sector.i" As such, it runs the sector at a loss, subsidizing its
output in order to gain market share internationally. In 2004, the Chinese government revealed
that over a third ofits textile output came from money losing state enterprises", A UTMcan
obviously sell its product cheaper if it can sell at a loss.
The Chinese UTM's second advantage is that the United States allows China to set the
value of its own currency unilaterally and without currency market influences. In 2002 when
,
,
China joined the WTO, it was estimated by the Manufacturer's Alliance that the yuan wa-s
undervalued by 40%.26 This gives China an obvioustrade
advantage.
The current exchange rate is roughly 6.5 yuan/dollar. However, importers ofupholstery
fabric calculate their prices based on a 7.2 yuanldollar r~te.27This is most likely because the
Chinese government refunds the value added-tax (VAT) to their manufacturers for-exports.
Refunding VAT for exported-products is yet-another systemic advantage for Chinese UTMs.
Much of the damage to the American upholstery fabric industry was done-between 2001
and 2006, 'but no petitions for Chinese market-disruption were filed because the Bush
administration had proved unwilling to approve, any in other-industries.
htt;p:I/cdnet.stpi.org.tw/techroomireport/ad"mat/china
24
textile.pdfThe
China Threat to World Textile and Apparel
htt;p:llcdnet.stpLorg.tw/techroomlreport/advrnat/china
textile. pdf cited above
26htt;p:llcdnet.stpi.org.tw/techroomlreport/advrnatfchina
textile.pdf cited above
2S
From a June 2011 conversation between an American UTM executive and an American-citizen working for a
Chinese upholstery mill.
27
- 40-
vm.
Relief sought and purpose thereof (19 C.F.R. §206.44(i»
(a) Purpose
The petitioners realize that the above issues are huge issues affecting the global economy.
Furthermore, we see it as outside our scope to try and force action on Chinese subsidies and
currency manipulation. However, the American upholstery textile manufacturers do need our
government to use the tools at its disposal to defend the domestic industry. While the 421
sanction is a short term solution that does not fully resolve the fundamental issues at play, it
could prove to be the pivotal support the domestic industry needs to rebound for the following
reasons:
Currently, the yuan is slowly getting stronger. It is the hope of the petitioners "thatthe
yuan will be more reasonably valued versus the dollar when the relief expires.
There ate still many producers of upholstery textiles with operations in the United- States.
This is due to the-importance of fashionable design and delivery in the furniture industry. Theexisting UTMs are modem, efficient and well managed. Their continued viability points· to a .
market that still has a need for American upholstery fabric. A 421 would increase American
UTM sales and give the existing companies incentive and opportunity to expand, add more
employees and invest in new machinery.'
Reliefunder
Sec. 421 would encourage the opening and reopening of textile operations
around the country. There is a large skilled workforce that has thedesireand
ability to produee
upholstery fabrics. Such relief would increase.sales for the-American UTM industry and make
new investmentlbusinesses
viable to investors.and lenders. A successful Sec. 42-1would-also
prove immensely beneficial to American yam suppliers-and fabric finishers that are critical in the
supply chain.
- 41 -
- 42-
While much of the textile industry is labor intensive, the manufacturing of rolls of
upholstery fabric is highly automated and labor is a small component of the selling price.
The majority of Chinese upholstery fabric is purchased by importers in America who pay
freight and then mark up the price roughly 25%. The importer then sells the fabric in the U.S.
market at 40-80% cheaper than an American made upholstery fabric with the exact same yarns
and construction.
To best determine the difference in selling price between a Chinese upholstery fabric and
a comparable American upholstery fabric one should compare the price of the goods at the dock
doors of theirrespective
manufacturing facilities ..
One American UTM executive presented the petitioners with this example.i''An
American upholstery fabric may nave a manufacturing cost of $6 per a yard. The manufacturer
would then mark up the fabric 25% and sell it for around $8/yard. If the exact same fabric was
made in China, the manufacturing cost would be around $3.S0/yard. An importer would then buy
it, pay $0. 15-$O.20/yardfor sea freight. So for the importer, the cost to get the fabric to American
shores is $3.65-$3.7-0. Then the importer would mark up the fabric 25% and sell the fabric in the
Americanmarket
at $4.95/yard~ To level the playing field, it would take a 75% tariff on flat
fabrics [non-Chenille] t-Obring $3.50 up to $6. With Chenille fabrics, the spread is even more
and it would take a 125% tariff to level the.playing field."
The latest trend is for the Chinese upholstery mills to hire American sales people and sell
directly to the American furniture manufacturers and fabric distributors. The Chinese wills have
learned the American market well over the last five to ten years and are now cutting .out the
American importer to some extent. This increasing trend allows the Chinese mills to sell into the
- 43 -
American market at even lower prices which has the effect of making American made upholstery
fabric even less competitive.
If this trend continues, it will make a successful ruling on this petition even more crucial
for the well being of American upholstery fabric producers.
The fact that importers can mark up the Chinese upholstery fabrics 25% and still
drastically undersell the American UTMs should demonstrate the extent to which Chinese UTMs
have an unfair advantage and the necessity for a decisive and strong tariff on Chinese upholstery
fabrics. The petitioners seek a 125% tariff on chenille upholstery fabric, and 75% on all other
fabrics pertaining-to this petition, to be in effect until the expiration of Section 421 of the Trade
Act of 1974.
IX.
Additionalinformation
(a)
Names and addresses of
u.s. importers and Chineseproducers known
to
Petitioners
1:·
..2.
A.G. Re111y-137 GlendowerDrive, S-alisbury, NC 28144
. AAdvantage International Fabrics- 3551 West Jackson Street, Tupelo, MS 38801
3.
Adesal Jacquards- Avenida Espora 2051- BI852FZB- Bs. As. Argentina
4.
Affiliated Importers, Ltd- 300~Fraley Road, High Point, NC 27263
5.
Alfred Shatkin, Inc.- PO Box 453, Occidental, CA 95465
6.
Algemene, USA, LLC.- 4201 West Belmont Avenue, Chicago, IL 60641
1.
Alitzer & Company Decorative Textiles- 1604 English-Road, High Point, NC
27262
- 44-
8.
Amalgamated Textiles, Inc.- 815 Plymouth Avenue, Montreal, QZ H4 IB2
Canada
9.
American Century Home Fabrics- 5200 South Main Street, Salisbury, NC 28147
10.
American Decorative Fabrics- 295 5th Avenue 8th Floor, New York, NY 10016
1L
Ameritex Home- 10150 N.W. South River Drive, Medley, Florida 33178
12.
Atretis Fabrics-7781 NW 73rd Court Medley, Miami, Florida 33166
13.
Ava Textiles- 49 West, 38th Street Floor 9, New York, NY 10018
14.
Avon Fabrics, Inc.- 484 Lincoln Boulevard, Middlesex, NJ 08846
15.
.. Belagio Enterprises, Inc.- 4801 West Jefferson Boulevard, Los Angeles CA
90016
16.
Belle Maison Textiles, Inc.- 89-50 127th Street; Richmond Hill. NY 11418
17.
Biran Ltd.- 5730 Oakbrook Parkway, Suite 180, Norcross, GA-30093
18.
Blue Moon Printworks, Inc.- 9214 Blakeney Heath Road, Charlotte, NC 28277
19.
Bonavista Fabrics USA, Inc-.-4066 Mission Boulevard, Montclair, CA 91763
20.
Boyteks Texstil San. Tic. A.S.--O.S.R Gri Cad-s Sok NorI, Bursa, 16150 Turkey
21:
Braemore Textiles- 3 Park-Avenue, New Ynrk, NY 10016
.
..22.
.
Brentwood Textiles- 500 Townsend Avenue, High Point, NC 27263
23.
Brimar, Inc.- 28250 BallarcdDrive, I.:ake Forest, IL 60045
24.
-Broderi Narin- 270 Fire Tower Road, Camden, SC 29020
25.
Bruvatex, USA- 42()1 West Belmont Avenue, Chicago, IL 60641
26.
Cab-Tex:, LLC.- 323 Corban Avenue S.W., Suite 5-06,POBox 472, Concord, NC
28025
2J~
Catania Silks- 15510 Minnesota Avenue, Paramount, CA 90723
- 45-
28.
Charles Martel Associates, Inc.- PO Box 1383, High Point, NC 27261
29.
Claridge Textiles International- 855 Bowsprit Road, Chula Vista, CA 91914
30.
Classical Elements, LLC.- 9321 Focal Point Drive, Raleigh, NC 27617
31.
Conceria Kara SRL- ViaCopemico, 50, Trezzano, MI 20090 Italy
32.
Covington Industries- 386 Park Avenue South 7th Floor, New York, NY 10016
33.
Culp, Inc.- 1823 Eastchester Drive, High Point, NC 27265
34.
De Leo Textiles- 53 Dwight Place, Fairfield, NJ 07004
35.
Decoviz- 4201 West Belmont Avenue, Chicago, IL 60641
36.
DeRue and Associates, Inc.- PO Box 1095, High PoInt, NC 27261
37.
DiDi International- PO Box 2328, Palatine, IL60074
38.
.Direct Textiles, Inc ..:.1338 West Holt Avenue, Pomona CA 91768
39.
Diversitex, Inc> 376 Hollywood Avenue, Suite 203, Fairfield, NJ 07001
40.
Dorell Fabrics Company- 4900 District Boulevard, Los Angeles, CA 90058
41. -
Duro Decorative Fabrics- 110 Chace Street, FallRiver, MA 02724
42.
E';TEX-I:,A(formerly Elyan-Enterprises, Inc.)- JQ24 Elvill Drive, Los Angeles,
CA90049
.-43.
Edgar Fabrics Inc.- 50 Commerce Drive, Hauppauge, NY 11788
44.
Elite Textiles, Inc-- 213 East 7th Street Floor.z.Los
45.
Eroica Enterprises, Ine.- 20285 N.E. 15th Ct., Miami, FL, 33-179
46.
Europatex, Inc.- 301 Summit A-venue, Jersey-City, NJ 07306
41.
Expo International, Inc.- 437 Turnpike Street, Canton, MA 02021
48.
EZ Fabrics- 760 S-outh Cocker Street.Los Angeles, CA 90021
49.
Fabrics in Fashion- 305 East 9th Street, Suite#409, Los Angeles, CA 90015
- 46-
Angeles, CA 90014
50.
Fabricut- 9303 East 46th Street, Tulsa, OK 74415
51.
Fiore Fabrics, LLC.- 1265 15th Street Unit #12F, Fort Lee, NJ 07024
52.
Gelberg Braid Company, Inc.- 243 West 39th Street, New York, NY 10018
53.
Gilman Enterprises, Inc.- 25 Rockwood Place Suite 340, Englewood, NJ 07631
54.
Golding Fabrics, Inc.- 7097 Mendenhall Road, Archdale, NC 27263
55.
GTA (Global Textile Alliance)- 2361 Holiday Loop, Reidsville, NC 27320
56.
Gum Tree Fabrics, Inc.- 4002 South Eason Boulevard, PO Box 7278, Tupelo, MS
38802
57.
Hamilton Fabric Sales, Inc.- 629 Southwest Street, PO Box 990, High Point, NC
27261
58.
Harry Harry Fabrics PTY LTD.- 2/31 Sunshine Beaeh Road, NoosaHeads
Queensland, 4567 Australia
59.
Heritage House Fabrics, LLC.- 4400 Fortune Avenue N.W., Concord, NC 28927
60.
Holland & Sherry- 330 East 59th Street, Penthouse, New York,~NY 10022
6L
Home Accents Fabrics-7 Crieklewood Lane, Harrison, NY 10528
62'.
Home Secrets Textile- 3-95 East 9th Street, Suite 322, Los Angeles, CA.. 90TI15
..63~
International Acetex,_Inc.- 825 Towne Avenue, Los Angeles, CA 90021
64.
JLA Home Fabrics- 211 Rockingham Drive, Reidsville, NC 21320
65.
-K & II Kesha Collections- PO Box 363, Elkton, MD 21922
66.
Kalin Fabrics- 407JDefender
-67.
Kaslen Textiles- 6099 Triangle Drive, Commerce, CA 90040
68.
King Textiles, LLC.- 511 Townsend A-venue, High Poin1,-N-C27263
Way, Roswell, GA 30075-
- 47-
69.
Knucukerler Textiles Industries- DOSAB 4. Bolge Cigdem 1 Sk. No: 12, Bursa,
16369 Turkey
70.
L.A. Fred's Fabric- 411 East 9th Street, Los Angeles, CA 90015
71.
Lady Fabrics Corporation- 265 Eastchester Drive, Suite 133, PNB 374, High
Point, NC 27262
72.
Laura & Kiran- 1425 Fourth Street, Berkeley, CA 94710
73.
Libas Ltd.- 4400 South Soto Street, Vernon, CA 90058
74.
Libeco- 230 5th Avenue, Suite 1300, New York, NY 10001
75.
Liora Manne'- 725 Providence Road, Suite 214, Charlotte, NC 28207
76.
LTM Textile Resources, LLC.- 224 Main Street, Staley, NC 27355
77.
M & J Trimming Company, Inc- 1008 Avenue of the Americas, New York, NY
10018
78.
Marcovaldo- 644513andini-Boulevard~ Los Angeles, CA 99040
79.
MDS Fabrics- 5540 Oak Hill Terrace, Cumming, GA 30040
80.
Merrimac Textile- 3 Edgewater Drive, Norwood, MA~02062
gr.
Microtex, Inc.-5301 NW 161 Street, Hialeah,FL
. 82.
33014
Millennium Textile, Inc.- PO-Box 40478, Memphis, TN 3-8174
83.
Moore & Giles, Inc.- 1081 Tannery Row, Forest, VA 24551
84.
Morgan Fabrics- 4265 Exchange Avenue, Los-Angeles, CA 90058
&5.
Moygashel-204 Pomander Read, Mineola, NY 11501
86.
Nipkow&-Kobe1t, Inc.- 519 8th Avenue, New York, NY 10018
87.
Noveltex, Inc.- 2801 South Main Street" Los Angeles, CA9000'7
88.
Number One Tex-tiles, Ltd.- 321 New Sooth Road, Hicksville, NY 11801
--48 -
89.
Onyx Age Corporation- 295 Molnar Drive, Elmwood Park, NJ 07407
90.
Orien Textile Corporation- 117-121 Prospect Avenue, Bayonne, NJ 07002
91.
P. Kaufmann Fabrics- 3 Park Avenue, New York, NY 10016
92.
Palette Fabrics, Inc.- 500 Townsend Avenue, High Point, NC 27263
93.
PARA'- Viale Monza, 1, Sovico, 20050 Italy
94.
Penelope USA LLC.- 4201 West Belmont Avenue, Chicago, IL 60641
95.
Phoenix Trim Works, Inc.- 2211 Reach Road, Williamsport, PA 17701
96.
PK Lifestyles- 3 Park Avenue, 35th Floor, New York, NY 10016
97.
Plastex International, Inc.- 33 Central Avenue, Possaic, N-J-07055
98.
Portfolio Textiles:" 225 Central Avenue S. Bethpage, New York, NY 11714
99-.
'Premier Prints, Inc.-:pO Box 305, 251 Warehouse Road, Shennan, MS 28"869
100,
Ramtex, Inc.-771 Towne Avenue, Los Angeles, CA 90021
101.
Regal Fabrics, Inc- 14 Birch Road, POBox 998-, Middleton, MA 01949·
-102.
Regency Interior Fabric Specialist:" J1. Industri ITNo. 20, Leuwigajah Cimahi,
--
-
40535 Indonesia
103.
'104.
Rennie & Rose, Inc.- 43 Print Works-Drive, Adams, MA 01220
RichloomFabrics
Group- 261 5th Avenue, New York, NY 10016
West 42nd Street, New York, NY 10036
105.
Robert Allen Group, The-i1
100.
Roma Decoration Fabric- 427 East 9thStreet, Los Angeles, CA 90015
r07.
Roth & Tompkins Textiles- 22 South Smith Street, E. Norwalk, CT 06855
108.
Silk Crafts, Inc- 23TWest 37th Street; 12thFloor, New York, NY 10018
109.
Softline Herne Fashions- 13122 South Normandie Avenue, Gardena, CA 90249
- 49-
110.
Suburban Home, Division ofDuralee Fabrics, Ltd.- 295 5th Avenue, Suite 703,
th
295 5 Avenue, Suite 705, New York, NY 10016
111.
Swanville Mill Creek Fabric- 15 East 26th Street, Floor 2, New York, NY 10010
112.
Tempo Fabrics- PO Box 2604, 1601 Blandwood Drive, High Point, NC 27261
113.
Textile Fabric Associates, LLC.- 15 East 26th Street, Floor 2, New York, NY
10010
114.
Textura Home, LLC.- 10310 Hollybrook Drive, Charlotte, NC 28277
115.
Texture, Inc.- 145 Michael Drive, PO Box 920, Syosset, NY 11791
116.
TNT Sales- 4-75Bums Road, Spartanburg, SC 29307
·117.
Toray (Ultrasuede) America, Inc.- 461 5th Avenue, 9th Floor, New York, NY
10017
118.
Trimland Janaj International- 60 East Jefryn Boulevard, Deer Park, NY 11729
119.
True North Fabrics- 305 West High Avenue, Room 730, High Point, NC 27260
120.·
Unidad Textil Puente- Col Puente de Vigas, Tlalnepantla, 34090 Mexico
121.
Unique Quality Fabrics, Inc.- 115 Wisner Avenue, Middletown, NY 10940
122.
Valiant Fabrics- 145 Cane Creek Industrial Park Road, Suite 200, Fletcher, NC
28732
123.
Vilber USA, LLC.- 4201 West Belmont Avenue, Chicago, IL 60641
124.
Vinayak International- 66 Sarat Bose Road, Kolkata, 700()25 India
125.
Vision Fabrics- Building 95 Park 100 5111 West 76 Street, Indianapolis, IN
46268
126.
Wipelli, Inc. USA-EO Box 70, 100 Burke Street, Rhodhiss, NC 28067
- 50-
127.
World Linen & Textile Company, Inc.- 1250 East Washington Boulevard, Los
Angeles, CA 90021
128.
World Wide Fabric, Inc.- 910 South Wall Street, Los Angeles, CA 90015
129.
Z-Wovens- Shuihong Temple Village, Chongxian Town, Hangzhou, 311108
China
(b)
Products for which the petitioner requests the Commission to seek pricing
information
The subject fabric is upholstery fabric which for Petitioners' purposes is:
o
Chenille and other broadwoven fabrics of chief weight of cotton or manmade fiber, of weight equal to or exceeding 200 glm2, exclusive of fabrics
in the greige state ("bleached/unbleached"
in HTSUS nomenclature),
cheesecloth, corduroy, cuprammonium rayon (Bemberg), denim, gauze,
necktie- fabric, printed fabric, printcloth, poplin or broadcloth, and
sheeting.
o
Micro denier suede upholstery fabric of Chinese origin, including micro
denier suede upholstery fabric entering the u.S. duty free via foreign trade
zone ("FTZ") operations in Mississippi and North Carolina
o
Cut-and-sew fabric kits classified in chapter94 of the HTSUS as furniture
parts.
(cJ
Customer Names And Addresses
1.
Affordable Furniture Mfg. Co., Inc.- 6496 Redland-Sarepta Road, Houlka, MS
38850
2.
Albany Industries, Inc.- 504 North Glenfield.Road, New Albany, MS 38652
- 51 -
3.
Allen's Furniture- 695 County Road 418, Houston, MS 38851
4.
American Furniture Mfg. Company, Inc.- 604 Pontotoc County Industrial, Ecru,
MS 38841
5.
American Leather- 4501 Mountain Creek Parkway, Dallas, TX 75236
"6.
Ashley Furniture- 1 Ashley Way, Arcadia, WI 54612
7.
Autrey Furniture Manufacturing-795
Georgia Highway 33 South, Moutrie, GA
31788
8.
Bassett Furniture- 3525 Fairystone Park Highway, Bassett, VA 24055
9.
BenchcraftlBerkline-
10. "
Bernhardt Furniture Co.- 1839 Morganton Boulevard Southwest, Lenoir, NC
1 Berkline Drive, MorristownTbl
37813
28645
1L
Best Chairs- 1 Best Drive, Ferdinand, IN 47532
12.
Bradington-Youngjowned
by Hooker]- 4040 10th Avenue Drive S.W., Hickory,
NC 28602
13.
Brooks Furniture Mfg.- 110 Maples Lane, Tazewell, TN 37879
14:
BroyhillFumiture
Industries, Inc. [owned by FBI]- 1429 College Avenue
Southwest, Lenoir, NC 28645
27th Avenue, Ocala, FL 34475
15.
Capris Furniture Industries- 1401Northwest
16.
Carlton Manufacturing- ll Ol Southwest 37B Avenue, Ocala, FL 34474
17.
Carter's Inc.- 201 East Holly Hill Road, Thomasville, NC 27360
18.
Charles Schneider, Inc- 600 North 10th Street, Council Bluffs, I.A. 51503
19.
Classic Furniture- 1231 CIR 515 North, Houston, MS 38851
20.
Classic Rattan, Inc.- 900 John C. Watts Drive, Nicholasville, KYA0356
- 52-
21.
Clayton-Marcus [owned by Rowe]- 8484 Westpark Drive, McLean, VA 22102
22.
Cochrane Furniture Co., Inc.- 190 Cochrane Road, Lincolnton, NC 28092
23.
Comfort Industries, Inc.- 12266 Rooks Road, Whittier, CA 90601
24.
Cooleys Furniture & Upholstery- 2860 Peppertown Road, Fulton, MS 38843
25.
C.R. Laine- 2829 US Highway 70 Southeast, Newton, NC 28658
26.
Craftmaster [owned by Universal Furniture]- 221 Craftmaster Road, Hiddenite,
NC 28636
27.
Davis Furniture Industries, Inc.- 119 Industrial Drive, Houlka, MS 38850
28.
Delta Furniture Mfg.- 1310 Highway 9 Smith, Pontotoc, MS 38S6-3
29.
Drexel [owned by FBI]-"2220U.S. Highway 70 S.E., Hickory, NC 28602
30.
D's- Furniture Mfg.- 300 North Carter Street, Okolona, MS 38860
31.
Elite Leather Company- 15780 El Prado Road.Chino, CA 91708
32.
England [owned by Laz-y-boy]- 402 Old Knoxville Highway, New Taz-ewell,TN
37825
33.
Ethan Allen- 21 Lake Avenue Ext., Danbury, C.T. 06811
34'.
Fairfield-Chair- 1331 Harper-Ave Southwest.Lenoir, NC 28645
..35.
Flat-Rock Furniture- 215 East Pullman Street, Waldron, IN 46182
36.
Flexsteel Industries,!nc.- 3400 Jackson Street, Dubuque,I.A. 52001
37.
Four Hands [owned byLexington Furniture]-2090 Woodward Street, Austin, TX
78-'144-
38.
FriendshipUpholstery- 6035 Church Road, Taylorsville, NC 28681
39.
Furniture Your Way- 415 Regal Row, Dallas, TX 75247
40.
Fusion Fumiture- 141 Industrial Road, Ecru, MS 38841"
- 53-
41.
Genesis Furniture Industries- 380 Maggie Drive, Pontotoc, MS 38863
42.
Guildcraft of California- 18626 South Reyes Avenue, Compton, CA 90221
43.
Hallagan Manufacturing Company- 500 Hoffman Street, Newark, NY 14513
44.
Henredon Furniture Industries [owned by FBI]- 126 South Centennial Street,
45.
Hiatt H. H. Furniture [owned by Elite Leather Company]- 12520 Chadron
Avenue, Hawthorne, CA 90250
46.
47.
Hickory Chair- 37 9th Street Plaza S.E., Hickory, NC 28602
. -HillcraftFurniture-
101 Industrial Drive, New Albany,MS 38652
48.
Hooker Furniture Corporation- 2005 Greenbrier Avenue, Roanoke, VA 24013
49.
Hughes Furniture Industries- 952 South Stout Road, Randleman, NC 27317
50.
Jackson-Catnapper (Jackson Furniture)- 191 o King Edward Avenue.Southeast,
Cleveland, TN 37311
51.
Jamco Manufactming- 135 Second Street, Belmont, MS 3-8827
52.
James Burton, Inc. {Burton James)- 428 Turnbull Canyon Road, Industry, CA
91745
.. 53.
54.
Jonathan Louis International- 544 West 130th Street, Gardena, CA 90248
Justice Furniture Manufacturing Company, Inc.- 900 West Elm Street, Lebanon,
M.O.65536
55._
Kincaid Furniture Company [owned. by Laz-y-boy]- 240J>leasant Hill Road,
Hudson, NC 28638
3D.
57.
King Hickory Furniture- 1820 Main Avenue Southeast, Hickory, NC 28602
.Klaussner Furniture lndustries- 405 Lewallen Road, Asheboro, NC 27205
- 54-
58.
Kosta Furniture- 625 Southwest 1st Avenue, Miami, FL 33130
59.
Kroehler Furniture Company- 1800 Conover Boulevard East, Conover, NC 28613
60.
Lacrosse Furniture- 12150ak
61.
Lane [owned by Furniture Brands International (FBI)]- 5380 Highway 145 South,
Street, La Crosse,KS 67548
Tupelo, MS 38801
62.
Laneventure, Inc. [owned by FBI]- 205 Workman Street S.W., Conover, NC
28613
63.
La-Z-Boy, Inc.- 1284 North Telegraph Road, Monroe, M.I. 48162
64.
Legacy Classic Furniture- 6530 Judge Adams Road, Whitsett, NC 27377
65.
Lexington Furniture Industries- 100 1st Street Northwest, Hildebran, NC 28637
66.
Life Style Furniture, Inc.- 425 WestMain Street, Okolona, MS 3"8860
67.
Lloyds of Chatham- 55 Ind~strial Park Drive, Siler City, NC 27344
68.
Mactavish Furniture Industries- 15022 Old Richmond Road, Sugar Land, TX
77478
69.
Maitland-Smith- [owned by FBI]- 1925 Eastchester Drive, High Point, NC 27265
70:
March.Furniture Manufacturing, Inc.- 447 -Reed Creek Road, Ramseur, NC 27316
,"71.
Mastercraft Furniture, Inc. - 10075 Southwest Commerce Circle, Wilsonville, OR
97070
72.
Massey Furniture Company- 139 2nd Street, Belmont, MS 38827
7J.
Massoud Furniture- 8351 Moberly Lane, Dallas, TX 75227
74.
Mayo Manufacturing Corporation- 4101 Terry Street, Texarkana, TX 75501
75.
McCreary Modem, Inc.- 3564 South U.S. 32~1Highway, Newton, NC 28658
76.
Meadowbrook Furniture- 266 Meadowbrook Drive; Hickory Flat, MS 38866
- 55-
77.
Meco Corporation- 1500 Industrial Road, Greeneville, TN 37745
78.
Meridian Furniture Manufacturing, L.L.C.- 36 Wild Rose Drive, Iuka, MS 38852
79.
Michael Nicholas Designs- 6259 Descanso Avenue, Buena Park, CA 90620
80.
Michael Roberts, Ltd.- 6329 Maywood Avenue, Huntington Park, CA 90255
81.
Modem of Marshfield, Inc.- 137 West 9th Street, Marshfield, WI 54449
82.
N-Style Furniture- 1600 Maple Road, Nettleton, MS 38858
83.
Norwalk Furniture- 100 Furniture Parkway, Norwalk, O.H. 44857
84.
Omnia Leather Motion,Inc ...,4900 Edison Avenue, Chino, CA 91710
85.
Ort Furniture- 275 Elm Street, Salem, O.H. 44460
86.
Pacific Furniture lndustries- 32850 South Morcom Street, Woodburn, OR 97071
87.
Pearson [owned by FBl]- 1420 Progress Avenue, High Po-int,NC 27260
88.
Perdue Furniture- 2415 Creek Drive, Rapid City, S.D. 57703
89.-
Pioneer Furniture Co.,mc.- 3036 Highway 11 South, Athens, TN 373D3
90.
Robin Bruce Furniture '[owned by Rowe]- 8484 Westpark Drive, Mcl.ean, YA
-z2102
91:
..92.
93.
Rose HillCompany-
104 Mab1)7 Street, OKolona, MS 38860
Rowe Fine Furniture- 8484 Westpark Drive, McLean, VA 22102 .
Sam Moore Furniture, L.L.C. {owned by Hooker]- 1556 Dawn Drive.Bedford,
VA 24-523
94.
Seminole Furniture Manufacturing, Iru::~-269 South Carter Street, Okolona, MS
3-8-860
95.
SherrillFurniture
Company- 2405 Highland Av-enue Northeast.Hickory,
28601
- 56-
NC
96.
Smith Brothers of Berne, Inc.- 356 Monroe Street, Berne, IN 46711
97.
Southern Motion- 161 Prestige Drive, Pontotoc, MS 38863
98.
Stacy Furniture (S&S Manufacturers, Inc.)- 1998 Campground Road, Pontotoc,
MS 38863
99.
Taylor King Furniture, Inc.- 286 County Home Road, Taylorsville, NC 28681
100.
Thomasville, Furniture Industries, Inc. [owned by FBI]- 401 East Main Street,
Thomasville, NC 27360
101.
Tlong Furniture- 933 Birmingham Ridge Road, Saltillo, MS 38866
102.
Townllouse Home Furnishings- 60012 IndustrialStreet,
.. 103.
United Furniture Industries, Inc. (Comfort Furniture)- 431 Highway 41 North,
Okolona,
104.
Smithville, MS38870
MS
38860
Universal Furniture International, Inc.- 2622 Uwharrie Road, High Point, NC
27263
105.
Vicky's Furniture, fuc.- 11733 Slauson Avenue, Santa Fe Springs, CA 90670
106.
Washington Furniture Mfg. Company (National Furniture Mfg.)- 10878 Highway
341, Randolph, MS 3S864
·107.
Wesley Hall Furniture- 141 Fairgrove Church Road Southeast, Hickory, NC
28601
(d)
Infol'llUltion conceming lost sales and lost revenue-alleg.tJ.tions
As documented above, a huge amount of damage to the American UTM industry can be
witnessed through companies that either no longer exists-Or no longer function as domestic
upholstery fabric manufacturers. Those companies are, for the most part-out of business, and
- 57-
none are among the Petitioners, who represent the few survivors. Therefore we do not reasonably
have access to the details requested at 19 C.F.R. §206.44(i)(4).
Conclusion
When considering the unfair advantages that Chinese UTMs have, it is clear why so
many American UTMs closed in the last decade. The flood of new unfair competition caused not
only the closing of many of the industry's leading companies, but the financial duress of the
American UTM industry on the whole. However, many of the surviving American UTMs have
,
,
actually made small profits in recent years by being niche oriented. The American UTMindustry
may never fully recover to its 2000- aggregate volume.But,
the surviving UTMs are savvy,
, modem and efficient with vast quantities of underutilized capacity. They are well situated to
capitalize on market share gains that would ensue from a successful petition. These gains would'
result injob creation for Americans.
- 58-

here - United States Fashion Industry Association

Transcription

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