MONROE, MI - Residential furniture maker La-Z-Boy Inc. (NYSE: LZB) said it expects to receive $16 million in antidumping duties that had been withheld earlier.
Antidumping duties collected by U.S. Customs and Border Protection service are given to eligible producers of wood or other products - in La-Z-Boy's case, wooden bedroom furniture - or other goods that supported a successful antidumping petition, under the Continued Dumping and Subsidy Offset Act of 2000 - or CDSOA.
La-Z-Boy received distributions as a result of our support of an antidumping petition on imports of wooden bedroom furniture from China. Seeking to share in the distributions, some manufacturers who did not support the antidumping petition filed actions in the United States Court of International Trade challenging the CDSOA's decision to disburse the duties only to firms that were part of the original claim.
During litigation, the U.S. Customs and Border agency held back a portion of those distributions. The Court of International Trade dismissed all of the actions of the firms that filed in the trade court. This group of claimants then appealed to the United States Court of Appeals for the Federal Circuit.
La-Z-Boy says the U.S. Customs and Border agency advised that it expected to distribute the portion of duties held back after March 9, 2012, following a March 5, 2012 denial by the Federal Circuit Court of the motions for injunction, "without prejudicing the ultimate disposition of these cases."
La-Z-Boy said U.S. Customs told it that it will make the distribution by mid-April 2012, though if the Federal Circuit Court ultimately rules that the "Non-Supporting Producers" are entitled to CDSOA distributions, La-Z-Boy would have to return its share of the duties held back.
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Read the Feb. 29, 2012 China wood bedroom furniture dumping announcement
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