Investigation gains financial backing

HIGH POINT — The law firm that in June revealed plans to look into antidumping-related cash settlements says it has enough financial support from interested parties to move forward with its investigation.

In an exclusive interview with Furniture/Today, Seattle-based Garvey Schubert Barer said there are more than 10 members of a coalition supporting the factual investigation. The firm did not reveal the names or specific number of companies involved, but said most are furniture importers. The coalition also includes some Chinese manufacturers.

While the firm did not reveal the cost, it said coalition members have provided enough funding needed to complete the investigation by the end of the year. Other importers, manufacturers and retailers have told the firm they might join the coalition in the near future.

Interest in the inquiry has risen since Furniture/Today reported in June that the coalition had hired the law firm.

The coalition wants the firm to investigate an alleged process that allows Chinese producers to pay cash settlement fees to avoid facing high antidumping duties on wood bedroom furniture imported to the United States. The fees are alleged to go to a law firm representing U.S. manufacturers that had petitioned for the antidumping duties to be imposed.

The duties in question are paid by importers of record of Chinese wood bedroom furniture. The duties vary by manufacturer and are reviewed annually by the U.S. government.

"Some of the evidence of what we are talking about is out there," said William Perry, an attorney with Garvey Schubert Barer. "In some cases it is obvious what they have done. We know that private settlement agreements are being made by the petitioners."

He said the investigation will determine whether the coalition decides to file a formal complaint based on antitrust laws.

"The whole issue is whether we file a case or not," Perry said. "We wouldn't be doing this unless we felt we had something there."