AT THE MARKET — Retailers, importers and manufacturers are gearing up for a fight they hope will put an end to duties on Chinese-made wood bedroom furniture.

About 25 people representing those interests gathered at the Best Western in downtown High Point early Monday to discuss the upcoming sunset review of the duties, which the U.S. government is conducting.

The review, performed on the five-year anniversary of the imposition of the duties, will determine whether they will continue.

The duties were established in 2005 in response to a government antidumping investigation that found the U.S. furniture manufacturing industry was injured by unfairly priced Chinese-made bedrooms. The U.S. Department of Commerce responded by placing duties on bedroom shipments from China.

Duties ranging from zero to 216% are assigned to manufacturers, but paid by importers of record. Many importers and retailers oppose them because they raise the price of finished goods.

The DOC has already said it supports continuing the duties, saying that dumping will likely continue if the order is lifted.

But the U.S. International Trade Commission plans to perform a full review that could take up to a year. This analysis will be based largely on whether the domestic manufacturing industry has continued to suffer due to imports.

The group gathered here Monday say they want to build a case that shows the duties haven't helped sustain or grow the domestic industry. They also plan to show that domestic producers haven't used the duties to invest in their operations.

The Furniture Retailers of America, a group that vocally opposed the duties about six years ago, has formed again and has retained the services of Washington law firm Hunton & Williams. A coalition of Chinese manufacturers, headed by Fairmont Designs Chairman George Tsai, has retained the services of Squire Sanders, another Washington law firm. Representatives from both firms were at the meeting Monday.

Keith Koenig, president of Fort Lauderdale, Fla.-based City Furniture, spoke on behalf of the Furniture Retailers of America. He and others urged importers to organize in opposition to another five years of duties.

"It is our perspective that for the industry and for the retailers, it would be better if we have free trade," he said.

Speakers said it will be critical for interested parties to respond to questionnaires about the case that the ITC will distribute in early July. Responses are due in early August.

"It is extremely important for importers, purchases and manufacturers to answer these questionnaires in detailed and in a persuasive way," said William Silverman, a partner with Hunton & Williams. "The basis of the argument is what is in those questionnaire responses."

He said a key aspect of the case will be showing that the duties - including some $100 million in monies distributed to a group of domestic furniture manufacturers under the Byrd Amendment - haven't helped the U.S. industry.

During the review, officials also want to raise an issue involving money that Chinese manufacturers and their importers of record allegedly pay to the law firm representing the domestic producers that originally petitioned for the duties. The payment of these monies is supposed to help guarantee that a Chinese producer won't be hit with higher duties during annual audits.

"The DOC is aware of it and they don't like it, but they don't have any authority to do anything about it," said Peter Koenig, an attorney with Squire Sanders, who is no relation to Keith Koenig.

While these payments are protected by confidentiality agreements, officials say raising the issue on the questionnaire could force the petitioners to deal with it more openly.

Silverman urged retailers and importers to provide as much information to the ITC as possible.

"You are the best teachers to educate the (ITC) staff and the commissioners," he said. "We can have a forceful presentation if we get your cooperation and the cooperation of the Chinese producers."

The lawyers said there are no guarantees on getting the duties discontinued. But they said the more information the ITC has, the better able it is to make an informed decision.

"This is a chance to end it and everybody has to get motivated to do it," Silverman said.

Tsai of Fairmont Designs said he plans to discuss the matter with a group of Chinese manufacturers this month in hopes of getting as many as possible involved in the review process.

The Furniture Retailers of America also plans to recruit other retailers and importers to back its cause.

Representatives for a group of domestic manufacturers, the American Furniture Manufacturers Committee for Legal Trade, declined to comment on Monday's meeting.