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Korean-American dry cleaners object to Government's rulings on Chinese hangers

"We will spread the news about the unfair decision by the government on the issue of dumping of cheap Chinese hangers. We will actively confront wholesalers who commit such illegal acts as purchasing hangers and stockpiling them, in order to sell them at inflated or colluded prices." This is a statement by the N.Y. Korean Dry Cleaners’ Association, which is trying to protect its members against price increases for hangers. Recently, the cost of the Chinese hangers that cleaners use jumped due to a U.S. Department of Commerce antidumping measure.

On April 4, N.Y. Korean Dry Cleaners’ Association Chairman Mr. Chon, Chang-dok held a press conference where Association spokespersons detailed the changing economic situation: imported hangers have been hit with import taxes, driving prices up.

In response, wholesalers have been stockpiling hangers and reselling them to individual businesses at inflated prices. Association members said that they are considering a class action suit as one of the ways to fight the abusive sales practices and bring prices down again.

"With gas prices skyrocketing, many businesses are already under incredible pressure from high expenses. The inflated prices for wire hangers – an unavoidable expenditure for the dry cleaning business – are wreaking havoc in the industry. We expect the prices to go up even more following the government's decision on antidumping measures," said Mr. Chon.

The N.Y. Korean Dry Cleaners’ Association is up in arms because the U.S. International Trade Administration (ITA), with inspection teams from the Department of Commerce, issued a preliminary judgment on antidumping measures for Chinese hangers on March 19. According to a statement from the ITA, M &B Metal products, an important U.S. producer of wire hangers, brought suit against a Chinese hanger company, alleging that the Chinese are manipulating prices by underestimating the value of their hangers by between 34 to 220 percent. Analysts believe that the final decision on the measures, which is expected in June 2008 and will be in effect for five years, will mirror the current judgment.

But Mr. Cha, Hyon-gu, a lawyer for the N.Y. Korean Dry Cleaners’ Association said, "Antidumping measures are usually intended to protect domestic industries. This case is problematic because the decision does not serve to protect conditions for a domestic industry but for a single company." He added that he is going to appeal any decision that inappropriately favors a single company.

Korean Dry Cleaners’ Associations across the United States agreed to join the protest. As well, the Association is trying to implement the cooperative purchase of both gas and hangers for its members. Mr. Im, Chang-gyun, the head of the U.S. Korean Dry Cleaners’ Association remarked, "Because of the taxes imposed on Chinese hangers, prices have shot up rapidly; until recently, a box of hangers cost $27; the same box now costs $50. In order to reduce overhead costs, I am pushing for the cooperate purchase of business necessities, such as hangers, but also gas, insurance, and credit cards.

Meanwhile, the N.Y. Korean Dry Cleaner's Association is starting a campaign to recycle wire hangers. They are putting up posters in businesses throughout Long Island, Queens, Manhattan, Westchester, and Rockland Counties. There are 12 distribution offices for the campaign. The chairman of the Association said, "We're aiming at a recycling rate of at least 70 to 80 percent for existing hangers."

 

In News section of Edition 317: 17 April 2008

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