{"id":11159,"date":"2026-07-11T22:16:39","date_gmt":"2026-07-11T14:16:39","guid":{"rendered":"https:\/\/www.manhattansez.com\/w71-en-tmp\/"},"modified":"2026-07-11T23:04:08","modified_gmt":"2026-07-11T15:04:08","slug":"furniture-manufacturing-in-cambodia","status":"publish","type":"post","link":"https:\/\/www.manhattansez.com\/en\/furniture-manufacturing-in-cambodia\/","title":{"rendered":"Furniture & Home-Building Materials Manufacturing in Cambodia: Anti-Dumping, Materials & EUDR"},"content":{"rendered":"\n
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Summary: <\/strong>
In earlier industry analyses, lighting could avoid most of its U.S. tariffs simply by “moving out of China,” because it is mainly hit by the China-specific Section 301. Furniture and home-building materials\u2014especially wooden furniture, cabinets and mattresses\u2014are different: the U.S. trade barriers they face are unusually heavy, and not aimed at China alone. Beyond Section 301, the U.S. maintains anti-dumping \/ countervailing measures on wooden bedroom furniture and cabinets (China) and on mattresses (China plus seven countries including Cambodia, Vietnam and Malaysia); Vietnamese mattresses reach ~668% and Vietnamese plywood ~196% in preliminary rulings.

More importantly, U.S. rules are explicit: furniture and cabinets made with Chinese components and assembled in a third country do not escape anti-dumping duties. In other words, moving furniture production to Cambodia does not automatically “clean up” the tariff\u2014each product’s anti-dumping exposure and origin rules must be checked one by one. On top of that, wooden home goods shipped to the EU will face the EUDR forest regulation (deforestation-free and traceable) from the end of 2026. This article breaks down the tariffs and anti-dumping, materials and supply chain, EUDR compliance and operating costs for home-building materials, and explains which companies suit Cambodia and how to evaluate it.<\/p>\n<\/blockquote>\n\n\n\n

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Furniture Manufacturing in Cambodia: Can the Tariffs Really Come Down?<\/strong><\/h2>\n\n\n\n

A company making wooden furniture, mattresses or cabinets and exporting mainly to the United States often assumes that simply moving the factory out of China will solve its high U.S. tariffs. Once they actually start, they find the tariff question for furniture is far more complex than expected.<\/p>\n\n\n\n

Unlike lighting\u2014where “leaving China avoids the China-specific tariff”\u2014home-building materials face a web of trade barriers that covers both China and Southeast Asia at once: anti-dumping, countervailing and anti-circumvention measures stacked layer upon layer. Cambodia may still be a suitable option, but only once that web is understood clearly: which products are caught, and whether relocating actually unwinds the duty. Answering that starts with recognising the trade reality that furniture relocation faces.<\/p>\n\n\n\n

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Why Relocation Risk Is Higher: Anti-Dumping and Trade Barriers<\/strong><\/h2>\n\n\n\n

Home-building materials (especially wooden furniture, cabinets and mattresses) are among the export sectors most densely covered by trade-remedy measures: beyond the China-specific Section 301, a series of anti-dumping \/ countervailing measures apply, and some already extend to Cambodia, Vietnam and other Southeast Asian countries.<\/strong><\/p>\n\n\n\n

\"Furniture<\/figure>\n\n\n\n

Fig. 1: U.S. anti-dumping duties on select Southeast Asian home goods (sources: U.S. Department of Commerce \/ USITC and industry compilations; representative or ceiling values\u2014actual rates vary by case and company).<\/em><\/p>\n\n\n\n

In detail: the U.S. anti-dumping order on Chinese wooden bedroom furniture has run since 2004 and has been maintained through successive sunset reviews; anti-dumping and countervailing orders also cover Chinese cabinets and vanities. On mattresses, in 2020\u20132021 the U.S. launched anti-dumping cases against seven countries\u2014Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey and Vietnam\u2014with final rates ranging roughly 2.22% to 763.28%, Vietnam peaking near 668% and Malaysia around 43%; in 2025 the U.S. issued a preliminary anti-dumping ruling of ~196% on Vietnamese hardwood plywood. Stacked on top of the China-specific Section 301 and the currently volatile reciprocal \/ Section 122 tariffs, the U.S. import-duty burden for home-building materials is the most complex of any light-industry sector.<\/p>\n\n\n\n

That is why, in this wave of relocation, a sizeable share of home-goods companies chose Mexico (entering the U.S. market more cleanly under USMCA\u2014e.g. Kuka, Man Wah, Airland), while Southeast Asia has taken on more cost-driven and non-U.S.-market capacity. To bring Cambodia into consideration, a company must first work out where its own products sit within this barrier web.<\/p>\n\n\n\n

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Can Cambodia Cut the Duty? Origin Rules and Anti-Circumvention Review<\/strong><\/h2>\n\n\n\n

The most common trap for home-building materials is assuming that “moving to Cambodia and doing the final step” is enough to obtain Cambodian origin and dodge U.S. anti-dumping. In fact, the U.S. imposes very hard constraints on origin and anti-circumvention for furniture and cabinets.<\/strong><\/p>\n\n\n\n

U.S. Customs (CBP) has made clear: Chinese cabinet and furniture parts subject to anti-dumping orders remain within scope even after being shipped to Vietnam, Cambodia or Thailand for further processing and assembly into finished goods\u2014”cabinets made from Chinese parts owe China’s anti-dumping and countervailing duties no matter where they are assembled.” In other words, the route of “import Chinese parts + assemble in Cambodia” does not escape anti-dumping for covered products. Faking origin through transshipment is illegal; once determined, the U.S. can impose an additional penalty tariff of up to 40%.<\/p>\n\n\n\n

The different scenarios are summarised below\u2014whether relocating to Cambodia avoids the duty depends entirely on product category and materials:<\/p>\n\n\n\n

Scenario<\/strong><\/td>Can relocating to Cambodia avoid U.S. tariffs?<\/strong><\/td>Notes<\/strong><\/td><\/tr><\/thead>
General home goods, subject only to Section 301<\/td>Usually yes for 301<\/td>Section 301 targets China; non-Chinese origin does not apply (as with lighting)<\/td><\/tr>
Product-specific anti-dumping (e.g. mattresses)<\/td>Not necessarily\u2014Cambodia may also be in scope<\/td>Mattress anti-dumping already covers Cambodia and six others; check the case-specific rate<\/td><\/tr>
Uses covered Chinese parts (e.g. cabinet components)<\/td>Cannot be circumvented<\/td>Anti-dumping on covered Chinese parts does not change with the place of processing<\/td><\/tr>
Transshipment \/ faked origin<\/td>Illegal, very high risk<\/td>If determined, an additional penalty tariff up to 40% may apply<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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Materials and Supply Chain: Can Timber, Boards and Hardware Bypass China?<\/strong><\/h2>\n\n\n\n

In Cambodia, home-building materials are likewise mostly “imported materials + local processing,” and many links still cannot bypass the Chinese supply chain\u2014timber, foam, fabric, hardware fittings and semi-finished parts are largely imported.<\/strong><\/p>\n\n\n\n

Take wooden furniture: upstream is timber processing, where the origin and species of the wood directly affect cost and compliance; for mattresses, upstream is steel, foam and textiles. Cambodia has some local resources such as rubberwood, but engineered boards (MDF, particleboard), hardware, foam and fabric are mostly imported from China or the region, and the supply chain is less complete than China’s. The common industry experience is that placing the assembly step overseas can satisfy origin rules, but raw materials and semi-finished goods are still often imported from home and processed into finished products after arrival\u2014this is both a cost lever and directly tied to whether origin and anti-circumvention review can be passed.<\/p>\n\n\n\n

On origin, “regional materials + Cambodian processing” can qualify for preferences in Asia-Pacific markets through the cumulation rules of RCEP and the China\u2013Cambodia FTA (CCFTA, in force 2022, with China granting Cambodia zero tariff on ~97.5% of tariff lines); geographically, Bavet is about a day’s drive from Ho Chi Minh City’s supply cluster, making replenishment easy (cross-border logistics is covered in our article on Cambodia\u2013Vietnam cross-border logistics<\/a>). But note again: these cumulation rules apply to member markets, and do not apply to U.S. anti-dumping or Section 301.<\/p>\n\n\n\n

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EUDR Compliance for Wooden Furniture: What Traceability Documents Are Required?<\/strong><\/h2>\n\n\n\n

Wooden home goods bound for the EU must clear one more new hurdle beyond tariffs\u2014the EU Deforestation Regulation (EUDR) requires wood products to be “deforestation-free and traceable,” a mandatory requirement phasing in from the end of 2026.<\/strong><\/p>\n\n\n\n

\"Furniture<\/figure>\n\n\n\n

Fig. 2: EU EUDR application timeline and core requirements (source: European Commission DG Environment; application dates have been postponed several times\u2014refer to the latest official announcements).<\/em><\/p>\n\n\n\n

The EUDR (Regulation (EU) 2023\/1115) entered into force in June 2023 and, after two delays, applies to large and medium companies from 30 December 2026 and to micro and small companies from 30 June 2027. It requires forest-risk commodities such as timber, rubber and leather and their products (including furniture) to prove they originate from land not deforested after the end of 2020, were legally harvested, and are traceable to the plot level, with a due-diligence statement (DDS) submitted in the EU system; violators can be fined up to 4% of EU annual turnover, and face goods seizure and market bans.<\/p>\n\n\n\n

For wooden home-goods companies setting up in Cambodia and aiming to export to the EU (duty-free under EBA; see our article on Cambodia’s EBA EU preferences<\/a>), this means the flip side of the duty-free channel is that a complete timber-origin traceability system must be built. Cambodia’s forestry governance and legal-harvest certification are relatively weak, so companies using local timber must pay particular attention to source legality and traceability documents; those using imported timber must ensure upstream suppliers can provide EUDR-compliant due-diligence materials. EUDR is not a “whether to do it” choice\u2014it is the precondition for entering the EU market.<\/p>\n\n\n\n

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Cambodia Factory Costs: Which Home-Building Products Fit Best?<\/strong><\/h2>\n\n\n\n

Setting tariffs and compliance aside, Cambodia remains cost-attractive for labour-intensive home-goods assembly; but the industry fit for home-building materials must be judged on three things at once: tariff exposure, materials structure and target market.<\/strong><\/p>\n\n\n\n

Cost item (2026)<\/strong><\/td>Cambodia<\/strong><\/td>Notes<\/strong><\/td><\/tr><\/thead>
General worker minimum wage<\/td>~USD 210 \/ month<\/td>Statutory for the GFT sector; furniture\/woodworking and other industries mostly reference or negotiate separately<\/td><\/tr>
Employer social contribution (NSSF)<\/td>~5.4%<\/td>Clearly lower than Vietnam’s ~22.5%<\/td><\/tr>
Industrial electricity<\/td>Request the latest quote from the park<\/td>Spraying, drying and injection-moulding steps are power-hungry and must be modelled<\/td><\/tr>
Timber \/ boards and fittings<\/td>Mostly imported from China or the region<\/td>Must factor in landed cost and EUDR traceability requirements<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

On balance, Cambodia fits best where operations are labour-intensive and process-standardised and the company targets non-U.S. markets, or the product is not within a U.S. anti-dumping case, or the materials do not rely on covered Chinese parts. Caution is warranted where the product is subject to U.S. anti-dumping (mattresses, wooden bedroom furniture), or is highly dependent on covered Chinese parts, or highly dependent on the U.S. market\u2014such companies may not solve their tariff problem by relocating to Cambodia and should do finer product-level tax and origin planning and evaluate alternatives such as Mexico.<\/p>\n\n\n\n

It is also worth separating two things: an export-oriented layout of “manufacturing in Cambodia, then exporting to Europe and the U.S.” (this article’s focus); and the opportunity to “serve Cambodia’s and Southeast Asia’s local home-goods market”\u2014as Cambodia’s real estate and infrastructure develop, local demand for home-building materials is growing, and Chinese home-goods retail brands have already entered Phnom Penh. The logic and site-selection considerations differ, and should be evaluated separately.<\/p>\n\n\n\n

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Home-Building Materials at MSEZ: Logistics, Power, Customs and Compliance Support<\/strong><\/h2>\n\n\n\n

For home-building materials landing in Cambodia, the difficulties mostly lie in logistics and customs for imported materials, power and environmental handling for spraying\/drying steps, and origin and EUDR compliance\u2014exactly where MSEZ’s conditions fit.<\/strong><\/p>\n\n\n\n

Manhattan Special Economic Zone (MSEZ)<\/a> sits on the Cambodia\u2013Vietnam border at Bavet, covering about 600 hectares, connecting the industrial hinterlands of Cambodia and Vietnam and about 70 to 140 kilometres from the Ho Chi Minh port cluster\u2014making it convenient to import timber, boards, hardware, foam and fabric from China and Vietnam nearby, and to flexibly choose Vietnamese or Cambodian ports for export according to orders, cost and logistics needs.<\/p>\n\n\n\n

Home-building-materials companies have already located in the park, and combined with the existing base of garment, bag, electronics and lighting industries, a solid manufacturing-support and labour environment has formed. The park also has stable power, water supply and wastewater-treatment infrastructure, which is especially important for power-hungry or emission-related steps such as spraying, drying and injection moulding.<\/p>\n\n\n\n

On execution, the park’s administrative and customs team works mainly in Chinese (supplemented by English and Khmer), and with over twenty years of operation since 2005 can help companies clear imported materials, obtain RCEP \/ CCFTA certificates of origin, organise the supply-chain and cost documents needed for anti-circumvention and origin, and connect QIP tax incentives and utility hook-ups. If your company is evaluating an overseas layout for home-building-materials capacity, you are welcome to contact the park team for a preliminary assessment based on your product category, materials structure and target market.<\/p>\n\n\n\n

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Furniture Manufacturing in Cambodia: FAQ<\/strong><\/h2>\n\n\n\n

Q1: Does moving furniture to Cambodia avoid U.S. tariffs?<\/strong><\/strong><\/p>\n\n\n\n

Not necessarily. U.S. tariffs on furniture are not aimed at China alone: beyond Section 301, the U.S. has anti-dumping on wooden bedroom furniture and cabinets (China) and on mattresses (China plus seven countries including Cambodia and Vietnam). If a product is within an anti-dumping case, or uses covered Chinese parts, relocating to Cambodia does not circumvent it. Only products “subject only to Section 301 and not using covered Chinese parts” can more readily avoid the duty by leaving China. Always check each product’s anti-dumping exposure and origin rules first.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Q2: If I assemble furniture in Cambodia with Chinese parts, does it count as Cambodian origin?<\/strong><\/strong><\/p>\n\n\n\n

For Chinese parts subject to anti-dumping orders, no\u2014and it cannot be circumvented. U.S. Customs is explicit: covered Chinese cabinet and furniture parts remain within anti-dumping scope even after being processed into finished goods in Vietnam, Cambodia or elsewhere, and still owe China’s anti-dumping and countervailing duties. Faking origin through transshipment is illegal and can incur an additional penalty tariff of up to 40%. Substantial transformation and compliant materials are essential.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Q3: For wooden home goods to the EU, what is EUDR and what should I watch for?<\/strong><\/strong><\/p>\n\n\n\n

EUDR is the EU Deforestation Regulation, requiring timber and its products (including furniture) to prove they are “deforestation-free (post-2020), legally harvested and traceable to the plot level,” with a due-diligence statement submitted; it applies to large and medium companies from end-December 2026, with fines up to 4% of EU turnover. Cambodia’s forestry governance is relatively weak, so companies must pay special attention to timber source legality and traceability documents\u2014this is the precondition for entering the EU market (including EBA duty-free access).<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Q4: Can Cambodia supply the timber and materials for furniture?<\/strong><\/strong><\/p>\n\n\n\n

Partly, but most still needs to be imported. Cambodia has some resources such as rubberwood, but engineered boards, hardware, foam and fabric are mostly imported from China or the region, and the supply chain is less complete than China’s\u2014it still “cannot bypass the Chinese supply chain.” Materials procurement and import logistics, along with EUDR traceability, are the key cost and compliance factors for home-building materials in Cambodia.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Q5: Which home-building-materials companies suit Cambodia best?<\/strong><\/strong><\/p>\n\n\n\n

Labour-intensive, process-standardised operations targeting non-U.S. markets, or products not within a U.S. anti-dumping case and not relying on covered Chinese parts, fit best. Companies subject to anti-dumping (mattresses, wooden bedroom furniture), dependent on covered Chinese parts, or highly dependent on the U.S. market should be cautious and do product-level tax and origin planning and evaluate alternatives such as Mexico. Serving Cambodia’s local home-goods market is a separate opportunity with different logic from export-oriented manufacturing.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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References: Home-Building Materials, Anti-Dumping, EUDR and Supply-Chain Data<\/strong><\/h2>\n\n\n\n