DOC moves on dumping;
hanger prices going up
The Department of Commerce (DOC) issued a
preliminary determination last month indicating that
Chinese manufacturers have been illegally dumping
wire hangers on the U.S. market. As a result, DOC
may soon levy tariffs of up to 221% on hanger imports.
While the final ruling in the investigation isn't
scheduled until June, DOC ordered U.S. Customs & Border
Protection to begin collecting cash deposits or bonds from
Chinese manufacturers immediately. The deposits and any future
tariffs will depend on how much under fair market value each
company sells its steel wire hanger products, and are already
being reflected in U.S. suppliers' prices.
Producers and exporters based in China have sold wire
hangers to U.S. concerns at a 33% to 221% discount from fair market
value, DOC says. Moreover, hanger imports from China have jumped
258% in the last three years, from 1.04 billion pieces in 2005 to
2.70 billion in 2007-with a total value of $68.5 million.
DOC launched the anti-dumping investigation in September
based on a petition from Leeds, Ala. based M&B Metal Products Co.
the last production facilty to maintain any substantial production
in North America.
The investigation covers garment hangers fabricated from
carbon steel wire, including galvanized, painted, coated and caped
(paper covered) models.
If DOC issues an identical final determination and the U.S.
International Trade Commission (ITC) determines that the imports cause
"material injury" to domestic wire-hanger producers, an anti-dumping
order will be issued. DOC will issue its ruling June 2, 2008; ITC
follows on July 16. An anti-dumping order and tariffs will become
effective one week later, on July 23, 2008.
Unconfirmed industry rumors say that Chinese producers held
hanger shipments back from U.S. ports in advance of the determination,
resulting in spot shortages of some types of hangers.
American Drycleaner, April, 2008
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