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Wooden Bedroom Furniture from China

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Wooden Bedroom Furniture from China Wooden Bedroom Furniture from China Investigation No. 731-TA-1058 (Second Review) Publication 4665 January 2017 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Dean A. Pinkert Meredith M. Broadbent F. Scott Kieff Catherine DeFilippo Director of Operations Staff assigned Amy Sherman, Investigator Vincent Honnold, Industry Analyst John Benedetto, Economist Jennifer Brinckhaus, Accountant Russell Duncan, Statistician Michael Haldenstein, Attorney Elizabeth Haines, Supervisory Investigator ~ Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Wooden Bedroom Furniture from China Investigation No. 731-TA-1058 (Second Review) Publication 4665 January 2017 CONTENTS Page Determination ......................................................................................................................... 1 Views of the Commission ........................................................................................................ 3 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 The original investigation ...................................................................................................... I‐2 Subsequent five‐year review ................................................................................................. I‐3 Statutory criteria ....................................................................................................................... I‐3 Summary data ........................................................................................................................... I‐5 Related investigations ............................................................................................................... I‐7 Commerce’s reviews ................................................................................................................. I‐7 Administrative reviews .......................................................................................................... I‐7 New Shipper Reviews ............................................................................................................ I‐8 Changed circumstances reviews ........................................................................................... I‐8 Scope rulings .......................................................................................................................... I‐9 Five‐year reviews and current margins ................................................................................. I‐9 The subject merchandise ........................................................................................................ I‐12 Commerce’s scope .............................................................................................................. I‐12 Tariff treatment ................................................................................................................... I‐15 The product ............................................................................................................................. I‐15 Description and uses ........................................................................................................... I‐15 Manufacturing process ........................................................................................................ I‐18 Domestic like product issues ................................................................................................... I‐19 U.S. market participants .......................................................................................................... I‐19 U.S. producers ..................................................................................................................... I‐19 U.S. importers ...................................................................................................................... I‐21 U.S. purchasers .................................................................................................................... I‐23 Apparent U.S. consumption and market shares ..................................................................... I‐23 i CONTENTS Page Part II: Conditions of competition in the U.S. market ............................................................ II‐1 U.S. market characteristics ....................................................................................................... II‐1 U.S. Purchasers ......................................................................................................................... II‐3 Channels of distribution ........................................................................................................... II‐4 Geographic distribution ........................................................................................................... II‐4 Supply and demand considerations ......................................................................................... II‐5 U.S. supply ............................................................................................................................ II‐5 U.S. demand ....................................................................................................................... II‐11 Substitutability issues ............................................................................................................. II‐16 Lead times .......................................................................................................................... II‐16 Knowledge of country sources ........................................................................................... II‐16 Factors affecting purchasing decisions............................................................................... II‐17 Comparisons of domestic product, subject imports, and nonsubject imports.................. II‐20 Comparison of U.S.‐produced and imported product ....................................................... II‐22 Elasticity estimates ................................................................................................................. II‐24 U.S. supply elasticity ........................................................................................................... II‐24 U.S. demand elasticity ........................................................................................................ II‐25 Substitution elasticity ......................................................................................................... II‐25 Part III: Condition of the U.S. industry ................................................................................. III‐1 Overview ................................................................................................................................. III‐1 Changes experienced by the industry ................................................................................. III‐1 Anticipated changes in operations ...................................................................................... III‐2 U.S. production, capacity, and capacity utilization ................................................................. III‐2 Constraints on capacity ....................................................................................................... III‐3 Production of other products on the same equipment ...................................................... III‐3 U.S. producers’ U.S. shipments and exports ........................................................................... III‐4 U.S. producers’ inventories ..................................................................................................... III‐6 U.S. producers’ imports and purchases .................................................................................. III‐7 ii CONTENTS Page Part III: Condition of the U.S. industry‐‐Continued U.S. employment, wages, and productivity ............................................................................ III‐7 Financial experience of U.S. producers ................................................................................... III‐9 Background .......................................................................................................................... III‐9 Operations on wooden bedroom furniture ........................................................................ III‐9 Net sales quantity and value ............................................................................................. III‐11 Cost of goods sold and gross profit or (loss) ..................................................................... III‐12 SG&A expenses and operating income or (loss) ............................................................... III‐12 Other expenses and net income or (loss) ......................................................................... III‐13 Capital expenditures and research and development expenses ...................................... III‐14 Assets and return on assets............................................................................................... III‐15 Part IV: U.S. imports
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