Pacific protests Canadian 14% duty on US beddings

21 Dec '11

3 min read

Effective January 1, 2012, the Canadian government will impose a burdensome 14 percent duty on bedding products produced in the U.S., potentially closing the border to over $100 million U.S. exports per year.

Pacific Coast Feather Company, a Seattle based producer of bedding, such as comforters and pillows, has been informed by the Canadian Customs Border Services Agency (CBSA) that the company's products manufactured in the U.S. will no longer be eligible for North American Free Trade Agreement (NAFTA) duty free treatment and will be subject to a 14 percent duty.

According to Pacific Coast Feather Company President and CEO, Eric Moen, "It is completely contradictory that Canada is hailing the reduction of trade restrictions with the U.S. and at the same time imposing trade protectionist restrictions on U.S. bedding exports. Canada's new import duty will cost Pacific Coast over $2.5 million per year.

While Pacific Coast has continued to support U.S. manufacturing, exports, and jobs, Canada's unfair actions will negatively impact revenue of our U.S. operations, and put our U.S. workers at risk. We will take every step to challenge Canada's actions and ensure our continued and fair Canadian market access to support our U.S. workforce and operations."

On December 7, 2011, Moen was in Washington, D.C. to seek support from Congress and the Administration to oppose Canada's actions to block U.S. bedding exports. At the same time Canadian Prime Minister Stephen Harper was meeting with President Obama in Washington, D.C. to unveil new agreements to stop regulations that "block trade" between the countries.

Pacific Coast Feather Company has been exporting its bedding products to Canada, duty free under NAFTA, for over 15 years. In a 1995 decision, Canada validated that the company's exports qualify for NAFTA duty free treatment.

During this period, the U.S. has provided NAFTA duty free treatment to Canadian bedding imports into the U.S., which are identical to Pacific Coast Feather Company's exports to Canada. Now, while over $30 million per year of Canadian bedding exports to the U.S. will continue to receive NAFTA duty free treatment, the same U.S. exports to Canada will be subject to a 14 percent duty.

The CBSA decision reverses 15 years of established practice that is consistent with NAFTA and international laws as interpreted by the U.S., the European Union, and other countries.

The Canadian government has not provided any rationale for CBSA's harmful decision, despite repeated requests from Pacific Coast Feather Company and U.S. government officials to explain CBSA's unilateral action.

"We are hopeful that CBSA will reverse its current position and follow the practices of the U.S. and other countries so that U.S. bedding exports to Canada may continue to receive standard NAFTA treatment," said Moen.

Pacific Coast Feather Company is the global leader in thebasic bedding industry. Pillows, comforters, mattress pads, feather beds and sheets from the Company offer premium quality, comfort, support and durability.

As a family owned business, PCFC remains true to its heritage, following the uncompromising European traditions of craftsmanship established in 1884 by Company founder, Joseph Hanauer.

Pacific Coast Feather Company

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