On 31 March 2020, the United States (“US”) Department of Commerce (“DOC”) and the US International Trade Commission (“ITC”) initiated anti-dumping and countervailing investigations on mattresses allegedly dumped from Malaysia, Cambodia, Indonesia, Serbia, Thailand, Turkey and Vietnam, and subsidized imports of mattresses from China. The anti-dumping and countervailing protection measures were sought by certain US mattress producers and workers’ unions (“Petitioners”).
 
The Petitioners have alleged that mattresses imported from Malaysia, Cambodia, Indonesia, Serbia, Thailand, Turkey and Vietnam are being sold below cost of sales in their countries of origin, and that mattresses from China are being imported at subsidized prices. The Petitioners further alleged that these imports which have surged by 32% from 2017 to 2019 are causing, or threatening to cause, material injury to the US mattress industry. 
 
As one of the largest producers of natural rubber and latex in the world, Malaysia has a thriving mattress manufacturing industry. Many of these mattresses find their way overseas to places such as the US where the Malaysia-US export market for mattresses is estimated to be valued at over USD100 million. In 2019, approximately 7% of all mattresses exported from Malaysia were sent to the US, with Malaysia being the 5^th largest exporter behind Vietnam, China, Indonesia and Cambodia based on data provided by the Petitioners.
 
The Petitioners are seeking for the DOC to impose anti-dumping duties of 47.97% on imports of mattresses from Malaysia, and anti-dumping duties ranging from 191.09% to 1008.28% in respect of imports from Cambodia, Indonesia, Serbia, Thailand, Turkey and Vietnam. As for subsidized imports of mattresses from China, the Petitioners are seeking for countervailing duties to offset any unfair subsidies received by producers.
 
If you have any queries, please contact our Ms. Lim Koon Huan (lkh@skrine.com) or Mr. Manshan Singh (manshan.singh@skrine).