Wooden Bedroom Furniture From the People's Republic of China: Preliminary Results of Antidumping Duty New Shipper Review, 49443-49449 [2011-20327]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 76, Number 154 (Wednesday, August 10, 2011)]
[Notices]
[Pages 49443-49449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20327]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-890]


Wooden Bedroom Furniture From the People's Republic of China: 
Preliminary Results of Antidumping Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: August 10, 2011.

SUMMARY: On February 18, 2011, the Department of Commerce (the 
``Department'') initiated a new shipper review of the antidumping duty 
order on wooden bedroom furniture from the People's Republic of China 
(``PRC'') covering sale(s) of subject merchandise made by Dongguan 
Yujia Furniture Co., Ltd. (``Yujia'').\1\
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    \1\ See Wooden Bedroom Furniture From the People's Republic of 
China: Initiation of Antidumping Duty New Shipper Review, 76 FR 
10557 (February 25, 2011) (``Initiation Notice'').
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    The Department preliminarily determines that Yujia has not made 
sales at less than normal value (``NV''). Upon completion of the final 
results of review, the Department will instruct U.S. Customs and Border 
Protection (``CBP'') to assess antidumping duties on entries of subject 
merchandise during the period January 1, 2010 through December 31, 2010 
(the period of review or ``POR''), for which the importer-specific 
assessment rates are above de minimis.

FOR FURTHER INFORMATION CONTACT: Patrick O'Connor or Jeff Pedersen, AD/
CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0989 or (202) 482-2769, respectively.

SUPPLEMENTARY INFORMATION: The antidumping duty order on wooden bedroom 
furniture from the PRC was published on January 4, 2005.\2\ On January 
28, 2011, the Department received a timely request for a new shipper 
review from Yujia. On February 18, 2011, the Department initiated this 
new shipper review. See Initiation Notice. On February 24, 2011, the 
Department issued an antidumping duty questionnaire. From March 2011 
through July 2011, the Department

[[Page 49444]]

received timely questionnaire and supplemental questionnaire responses.
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    \2\ See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture 
From the People's Republic of China, 70 FR 329 (January 4, 2005).
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    On April 7, 2011, the Office of Policy issued a memorandum 
identifying six countries as being at a level of economic development 
comparable to the PRC for the instant POR. The countries identified in 
that memorandum are India, the Philippines, Indonesia, Thailand, 
Ukraine, and Peru.\3\ On April 12, 2011, the Department released the 
Policy Memorandum to interested parties and provided parties with an 
opportunity to submit comments regarding the selection of a surrogate 
country in the instant review.\4\ On May 17, 2011, the American 
Furniture Manufacturers Committee for Legal Trade and Vaughan-Bassett 
Furniture Company, Inc. (collectively, ``Petitioners'') provided 
comments on surrogate country selection and publicly available 
information to value factors of production (``FOP'').\5\ On May 27, 
2011, Yujia provided publicly available data to value its FOP.\6\
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    \3\ See Memorandum entitled, ``Request for a List of Surrogate 
Countries for New Shipper Review of the Antidumping Duty Order on 
Wooden Bedroom Furniture (``Furniture'') from the People's Republic 
of China (``China''),'' dated April 7, 2011 (``Policy Memorandum'').
    \4\ See Letter from Howard Smith, Program Manager, Office 4, to 
All Interested Parties, requesting comments from interested parties 
regarding the selection of a surrogate country, dated April 12, 
2011.
    \5\ See Letter from Petitioners regarding, ``Wooden Bedroom 
Furniture From the People's Republic of China: Submission of 
Publicly Available Surrogate Values to Value Factors of 
Production,'' dated May 17, 2011 (``Petitioners' Surrogate Value 
Submission'').
    \6\ See Submission from Yujia regarding, ``Wooden Bedroom 
Furniture from People's Republic of China: Surrogate Values and 
Comments for Preliminary Results'' dated May 27, 2011 (``Yujia's 
Surrogate Value Submission'').
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Period of Review

    The POR is January 1, 2010, through December 31, 2010.

Scope of the Order

    The product covered by the order is wooden bedroom furniture 
(``WBF''). WBF is generally, but not exclusively, designed, 
manufactured, and offered for sale in coordinated groups, or bedrooms, 
in which all of the individual pieces are of approximately the same 
style and approximately the same material and/or finish. The subject 
merchandise is made substantially of wood products, including both 
solid wood and also engineered wood products made from wood particles, 
fibers, or other wooden materials such as plywood, strand board, 
particle board, and fiberboard, with or without wood veneers, wood 
overlays, or laminates, with or without non-wood components or trim 
such as metal, marble, leather, glass, plastic, or other resins, and 
whether or not assembled, completed, or finished.
    The subject merchandise includes the following items: (1) Wooden 
beds such as loft beds, bunk beds, and other beds; (2) wooden 
headboards for beds (whether stand-alone or attached to side rails), 
wooden footboards for beds, wooden side rails for beds, and wooden 
canopies for beds; (3) night tables, night stands, dressers, commodes, 
bureaus, mule chests, gentlemen's chests, bachelor's chests, lingerie 
chests, wardrobes, vanities, chessers, chifforobes, and wardrobe-type 
cabinets; (4) dressers with framed glass mirrors that are attached to, 
incorporated in, sit on, or hang over the dresser; (5) chests-on-
chests,\7\ highboys,\8\ lowboys,\9\ chests of drawers,\10\ chests,\11\ 
door chests,\12\ chiffoniers,\13\ hutches,\14\ and armoires;\15\ (6) 
desks, computer stands, filing cabinets, book cases, or writing tables 
that are attached to or incorporated in the subject merchandise; and 
(7) other bedroom furniture consistent with the above list.
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    \7\ A chest-on-chest is typically a tall chest-of-drawers in two 
or more sections (or appearing to be in two or more sections), with 
one or two sections mounted (or appearing to be mounted) on a 
slightly larger chest; also known as a tallboy.
    \8\ A highboy is typically a tall chest of drawers usually 
composed of a base and a top section with drawers, and supported on 
four legs or a small chest (often 15 inches or more in height).
    \9\ A lowboy is typically a short chest of drawers, not more 
than four feet high, normally set on short legs.
    \10\ A chest of drawers is typically a case containing drawers 
for storing clothing.
    \11\ A chest is typically a case piece taller than it is wide 
featuring a series of drawers and with or without one or more doors 
for storing clothing. The piece can either include drawers or be 
designed as a large box incorporating a lid.
    \12\ A door chest is typically a chest with hinged doors to 
store clothing, whether or not containing drawers. The piece may 
also include shelves for televisions and other entertainment 
electronics.
    \13\ A chiffonier is typically a tall and narrow chest of 
drawers normally used for storing undergarments and lingerie, often 
with mirror(s) attached.
    \14\ A hutch is typically an open case of furniture with shelves 
that typically sits on another piece of furniture and provides 
storage for clothes.
    \15\ An armoire is typically a tall cabinet or wardrobe 
(typically 50 inches or taller), with doors, and with one or more 
drawers (either exterior below or above the doors or interior behind 
the doors), shelves, and/or garment rods or other apparatus for 
storing clothes. Bedroom armoires may also be used to hold 
television receivers and/or other audio-visual entertainment 
systems.
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    The scope of the order excludes the following items: (1) Seats, 
chairs, benches, couches, sofas, sofa beds, stools, and other seating 
furniture; (2) mattresses, mattress supports (including box springs), 
infant cribs, water beds, and futon frames; (3) office furniture, such 
as desks, stand-up desks, computer cabinets, filing cabinets, 
credenzas, and bookcases; (4) dining room or kitchen furniture such as 
dining tables, chairs, servers, sideboards, buffets, corner cabinets, 
china cabinets, and china hutches; (5) other non-bedroom furniture, 
such as television cabinets, cocktail tables, end tables, occasional 
tables, wall systems, book cases, and entertainment systems; (6) 
bedroom furniture made primarily of wicker, cane, osier, bamboo or 
rattan; (7) side rails for beds made of metal if sold separately from 
the headboard and footboard; (8) bedroom furniture in which bentwood 
parts predominate; \16\ (9) jewelry armoies; \17\ (10) cheval mirrors; 
\18\ (11) certain metal parts;\19\ (12) mirrors that do not attach to, 
incorporate in, sit on, or hang over a dresser if they are not designed 
and marketed to be sold in conjunction with

[[Page 49445]]

a dresser as part of a dresser-mirror set; (13) upholstered beds \20\ 
and (14) toy boxes.\21\
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    \16\ As used herein, bentwood means solid wood made pliable. 
Bentwood is wood that is brought to a curved shape by bending it 
while made pliable with moist heat or other agency and then set by 
cooling or drying. See CBP's Headquarters Ruling Letter 043859, 
dated May 17, 1976.
    \17\ Any armoire, cabinet or other accent item for the purpose 
of storing jewelry, not to exceed 24 inches in width, 18 inches in 
depth, and 49 inches in height, including a minimum of 5 lined 
drawers lined with felt or felt-like material, at least one side 
door (whether or not the door is lined with felt or felt-like 
material), with necklace hangers, and a flip-top lid with inset 
mirror. See Issues and Decision Memorandum from Laurel LaCivita to 
Laurie Parkhill, Office Director, concerning ``Jewelry Armoires and 
Cheval Mirrors in the Antidumping Duty Investigation of Wooden 
Bedroom Furniture from the People's Republic of China,'' dated 
August 31, 2004. See also Wooden Bedroom Furniture From the People's 
Republic of China: Final Changed Circumstances Review, and 
Determination To Revoke Order in Part, 71 FR 38621 (July 7, 2006).
    \18\ Cheval mirrors are any framed, tiltable mirror with a 
height in excess of 50 inches that is mounted on a floor-standing, 
hinged base. Additionally, the scope of the order excludes 
combination cheval mirror/jewelry cabinets. The excluded merchandise 
is an integrated piece consisting of a cheval mirror, i.e., a framed 
tiltable mirror with a height in excess of 50 inches, mounted on a 
floor-standing, hinged base, the cheval mirror serving as a door to 
a cabinet back that is integral to the structure of the mirror and 
which constitutes a jewelry cabinet lined with fabric, having 
necklace and bracelet hooks, mountings for rings and shelves, with 
or without a working lock and key to secure the contents of the 
jewelry cabinet back to the cheval mirror, and no drawers anywhere 
on the integrated piece. The fully assembled piece must be at least 
50 inches in height, 14.5 inches in width, and 3 inches in depth. 
See Wooden Bedroom Furniture From the People's Republic of China: 
Final Changed Circumstances Review and Determination To Revoke Order 
in Part, 72 FR 948 (January 9, 2007).
    \19\ Metal furniture parts and unfinished furniture parts made 
of wood products (as defined above) that are not otherwise 
specifically named in this scope (i.e., wooden headboards for beds, 
wooden footboards for beds, wooden side rails for beds, and wooden 
canopies for beds) and that do not possess the essential character 
of wooden bedroom furniture in an unassembled, incomplete, or 
unfinished form. Such parts are usually classified under HTSUS 
subheadings 9403.90.7005, 9403.90.7010, or 9403.90.7080.
    \20\ Upholstered beds that are completely upholstered, i.e., 
containing filling material and completely covered in sewn genuine 
leather, synthetic leather, or natural or synthetic decorative 
fabric. To be excluded, the entire bed (headboards, footboards, and 
side rails) must be upholstered except for bed feet, which may be of 
wood, metal, or any other material and which are no more than nine 
inches in height from the floor. See Wooden Bedroom Furniture from 
the People's Republic of China: Final Results of Changed 
Circumstances Review and Determination to Revoke Order in Part, 72 
FR 7013 (February 14, 2007).
    \21\ To be excluded the toy box must: (1) Be wider than it is 
tall; (2) have dimensions within 16 inches to 27 inches in height, 
15 inches to 18 inches in depth, and 21 inches to 30 inches in 
width; (3) have a hinged lid that encompasses the entire top of the 
box; (4) not incorporate any doors or drawers; (5) have slow-closing 
safety hinges; (6) have air vents; (7) have no locking mechanism; 
and (8) comply with American Society for Testing and Materials 
(``ASTM'') standard F963-03. Toy boxes are boxes generally designed 
for the purpose of storing children's items such as toys, books, and 
playthings. See Wooden Bedroom Furniture from the People's Republic 
of China: Final Results of Changed Circumstances Review and 
Determination to Revoke Order in Part, 74 FR 8506 (February 25, 
2009). Further, as determined in the scope ruling memorandum 
``Wooden Bedroom Furniture from the People's Republic of China: 
Scope Ruling on a White Toy Box,'' dated July 6, 2009, the 
dimensional ranges used to identify the toy boxes that are excluded 
from the wooden bedroom furniture order apply to the box itself 
rather than the lid.
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    Imports of subject merchandise are classified under subheadings 
9403.50.9042 and 9403.50.9045 of the Harmonized Tariff Schedule of the 
United States (``HTSUS'') as ``wooden * * * beds'' and under subheading 
9403.50.9080 of the HTSUS as ``other * * * wooden furniture of a kind 
used in the bedroom.'' In addition, wooden headboards for beds, wooden 
footboards for beds, wooden side rails for beds, and wooden canopies 
for beds may also be entered under subheading 9403.50.9042 or 
9403.50.9045 of the HTSUS as ``parts of wood.'' Subject merchandise may 
also be entered under subheading 9403.50.9041 or 9403.60.8081. Further, 
framed glass mirrors may be entered under subheading 7009.92.1000 or 
7009.92.5000 of the HTSUS as ``glass mirrors * * * framed.'' This order 
covers all WBF meeting the above description, regardless of tariff 
classification. Although the HTSUS subheadings are provided for 
convenience and customs purposes, our written description of the scope 
of this proceeding is dispositive.

Bona Fides Sale Analysis

    For this review, consistent with the Department's practice, the 
Department investigated the bona fide nature of the sales(s) made by 
Yujia during the POR. In evaluating whether or not a sale in a new 
shipper review is commercially reasonable, and therefore bona fide, the 
Department considers, inter alia, such factors as: (1) The timing of 
the sale; (2) the price and quantity; (3) the expenses arising from the 
transaction; (4) whether the goods were resold at a profit; and (5) 
whether the transaction was made on an arm's-length basis. See, e.g., 
Tianjin Tiancheng Pharmaceutical Co., Ltd. v. United States, 366 F. 
Supp. 2d 1246, 1250 (CIT 2005). Accordingly, the Department considers a 
number of factors in its bona fides analysis, ``all of which may speak 
to the commercial realities surrounding an alleged sale of subject 
merchandise.'' See Hebei New Donghua Amino Acid Co., Ltd. v. United 
States, 374 F. Supp. 2d 1333, 1342 (CIT 2005) (citing Fresh Garlic From 
the People's Republic of China: Final Results of Antidumping 
Administrative Review and Rescission of New Shipper Review, 67 FR 11283 
(March 13, 2002)).
    The Department preliminarily finds that the sale(s) of subject 
merchandise made by Yujia were made on a bona fide basis. Specifically, 
the Department preliminarily finds that: (1) The timing of the sale(s) 
by itself does not indicate that the sale(s) might not be bona fide; 
(2) record evidence indicates that overall the price and quantity of 
the sale(s) are commercially reasonable and not atypical of normal 
business practices of wooden bedroom furniture exporters; (3) Yujia and 
its customer did not incur any extraordinary expenses arising from the 
transaction(s); and (4) the new shipper sale(s) were made between 
unaffiliated parties at arm's length. The Department does not believe 
Yujia's unaffiliated importer's failure to substantiate its claim that 
it resold the goods in question at a profit \22\ overcomes the totality 
of evidence described above demonstrating Yujia's sale(s) are bona 
fide. Therefore, the Department has preliminarily found that Yujia's 
sale(s) of subject merchandise to the United States were bona fide for 
purposes of this new shipper review.
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    \22\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD 
Operations, Office 4, regarding, ``Antidumping Duty New Shipper 
Review of Wooden Bedroom Furniture from the People's Republic of 
China: Bona Fide Sales Analysis for Dongguan Yujia Furniture Co., 
Ltd.,'' dated concurrently with this notice.
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Non-Market Economy Country Status

    In every antidumping case conducted by the Department involving the 
PRC, the PRC has been treated as a non-market economy (``NME'') 
country.\23\ In accordance with section 771(18)(C)(i) of the Tariff Act 
of 1930, as amended (``the Act''), any determination that a foreign 
country is an NME country shall remain in effect until revoked by the 
administering authority. None of the parties to this proceeding has 
contested such treatment. Accordingly, the Department calculated NV in 
accordance with section 773(c) of the Act, which applies to NME 
countries.
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    \23\ See, e.g., Tapered Roller Bearings and Parts Thereof, 
Finished and Unfinished, From the People's Republic of China: 
Preliminary Results of 2001-2002 Administrative Review and Partial 
Rescission of Review, 68 FR 7500 (February 14, 2003) (unchanged in 
the final results, Tapered Rolling Bearings and Parts Thereof, 
Finished and Unfinished, from the People's Republic of China: Final 
Results of 2001-2002 Administrative Review and Partial Rescission of 
Review, 68 FR 70488 (December 18, 2003)).
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Separate Rate

    In proceedings involving NME countries, the Department has a 
rebuttable presumption that all companies within the country are 
subject to government control and thus should be assessed a single 
antidumping duty rate. It is the Department's policy to assign all 
exporters of subject merchandise in an NME country this single rate 
unless an exporter can demonstrate that it is sufficiently independent 
so as to be entitled to a separate rate. Exporters can demonstrate this 
independence through the absence of both de jure and de facto 
government control over export activities. The Department analyzes each 
entity exporting the subject merchandise under a test arising from the 
Final Determination of Sales at Less Than Fair Value: Sparklers From 
the People's Republic of China, 56 FR 20588 (May 6, 1991) (Sparklers), 
as further developed in Notice of Final Determination of Sales at Less 
Than Fair Value: Silicon Carbide From the People's Republic of China, 
59 FR 22585, 22586-7 (May 2, 1994) (Silicon Carbide). However, if the 
Department determines that a company is wholly foreign-owned or located 
in a market economy, then a separate rate analysis is not necessary to 
determine whether it is independent from government control. See Notice 
of Final Determination of Sales at Less Than Fair Value: Creatine 
Monohydrate From the People's Republic of China, 64 FR 71104, 71104-05 
(December 20, 1999) (where the respondent was wholly foreign-owned and, 
thus, qualified for a separate rate).

Separate Rate Recipient

    Yujia is a wholly Chinese-owned company and is located in the PRC. 
Therefore, the Department has analyzed whether Yujia has demonstrated 
the absence of both de jure and de facto government control over its 
export activities.

[[Page 49446]]

A. Absence of De Jure Control

    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) An absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies. See 
Sparklers, 56 FR at 20589.
    The evidence provided by Yujia supports a preliminary finding of de 
jure absence of government control based on the following: (1) An 
absence of restrictive stipulations associated with Yujia's business 
and export licenses; \24\ (2) applicable legislative enactments 
decentralizing control over PRC companies; \25\ and (3) formal measures 
by the government decentralizing control of PRC companies.\26\
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    \24\ See Yujia's business license from ``Wooden Bedroom 
Furniture from the People's Republic of China--Section A 
Questionnaire Response'' dated March 17, 2011 (``Yujia's Section A 
response'') at Exhibit A-2.
    \25\ See Yujia's Section A response at Exhibit A-1.
    \26\ See id.
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B. Absence of De Facto Control

    The Department considers four factors in evaluating whether each 
respondent is subject to de facto government control of its export 
functions: (1) Whether the export prices are set by or are subject to 
the approval of a government agency; (2) whether the respondent has 
authority to negotiate and sign contracts and other agreements; (3) 
whether the respondent has autonomy from the government in making 
decisions regarding the selection of management; and (4) whether the 
respondent retains the proceeds of its export sales and makes 
independent decisions regarding disposition of profits or financing of 
losses. See Silicon Carbide, 59 FR at 22586-87; see also Notice of 
Final Determination of Sales at Less Than Fair Value: Furfuryl Alcohol 
From the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995). 
The Department has determined that an analysis of de facto control is 
critical in determining whether respondents are subject to a degree of 
government control which would preclude the Department from assigning 
separate rates.
    The evidence provided by Yujia supports a preliminary finding of de 
facto absence of government control over its export activities based on 
the following: (1) Yujia set its own export prices independent of the 
government and without the approval of a government authority; (2) 
Yujia's general managers have the authority to negotiate and bind the 
company in an agreement; (3) Yujia maintains autonomy from the 
government in making decisions regarding the selection of management; 
and (4) Yujia retains the proceeds of its export sales and makes 
independent decisions regarding disposition of profits or financing of 
losses.\27\
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    \27\ See Yujia's Section A response from p. 3 to 11 and Exhibits 
A-1, A-2, and A-3.
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    The evidence placed on the record by Yujia demonstrates an absence 
of de jure and de facto government control, in accordance with the 
criteria identified in Sparklers and Silicon Carbide. Accordingly, the 
Department has preliminarily granted a separate rate to Yujia.

Surrogate Country

    When the Department conducts an antidumping duty new shipper review 
of imports from an NME country, section 773(c)(1) of the Act directs 
the Department to base NV, in most circumstances, on the NME producer's 
FOP valued in a surrogate market-economy country or countries 
considered appropriate by the Department. In accordance with section 
773(c)(4) of the Act, the Department will value FOP using ``to the 
extent possible, the prices or costs of factors of production in one or 
more market economy countries that are--(A) At a level of economic 
development comparable to that of the NME country, and (B) significant 
producers of comparable merchandise.'' Further, pursuant to 19 CFR 
351.408(c)(2), the Department will normally value all FOP in a single 
country.
    As stated previously, the Department identified India, the 
Philippines, Indonesia, Thailand, Ukraine, and Peru as being at a level 
of economic development comparable to the PRC.\28\ Petitioners provided 
a report entitled The Furniture Industry in the Philippines published 
by the international research firm CSIL Milano in October 2007 stating 
that in 2006 Philippine manufacturers produced furniture valued at $813 
million and the Philippines exported furniture valued at $279 
million.\29\ The Furniture Industry in the Philippines states that wood 
has replaced rattan as the most commonly used material in furniture 
production and wooden furniture accounted for 51 percent of all 
Philippine furniture exports. Additionally, The Furniture Industry in 
the Philippines states that the furniture sector was comprised of 
approximately 15,000 manufacturers and 800,000 workers.\30\ No other 
parties commented on the selection of a surrogate country. Based on the 
above, we have determined that the Philippines is a significant 
producer of merchandise that is comparable to the merchandise under 
review.
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    \28\ See Policy Memorandum. The Department notes that these six 
countries are part of a non-exhaustive list of countries that are at 
a level of economic development comparable to the PRC.
    \29\ See Petitioners' Surrogate Value Submission at Attachment 
19, tab C, p. 6.
    \30\ See Petitioners' Surrogate Value Submission at Attachment 
19, tab C, from pp. 8-10.
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    With respect to data considerations in selecting a surrogate 
country, both Petitioners and Yujia have submitted publicly-available 
Philippine data for valuing FOP.\31\ No other data from other potential 
surrogate countries exist on this record. In addition, the Department 
used the Philippines as the primary surrogate country in the second, 
third, fourth, and fifth administrative reviews of this proceeding.\32\ 
Therefore, based on its experience, the Department finds that the 
Philippines has provided reliable, publicly-available data for valuing 
the FOP. Also the Philippines is the only country listed by the Office 
of Policy as a potential surrogate country for the PRC for which 
sufficient data exist to calculate an accurate antidumping duty margin.
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    \31\ See Petitioners' Surrogate Value Submission and Yujia's 
Surrogate Value Submission.
    \32\ See Wooden Bedroom Furniture From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative 
Review, Preliminary Results of New Shipper Review and Partial 
Rescission of Administrative Review, 73 FR 8273, 8277-78 (February 
13, 2008) (unchanged in Wooden Bedroom Furniture from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review and New Shipper Review, 73 FR 49162 (August 20, 2008)); see 
Wooden Bedroom Furniture From the People's Republic of China: 
Preliminary Results of Antidumping Duty Administrative and New 
Shipper Reviews and Partial Rescission of Review, 74 FR 6372, 6376 
(February 9, 2009) (unchanged in Wooden Bedroom Furniture from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and New Shipper Reviews, 74 FR 41374 (August 
17, 2009)); see also Wooden Bedroom Furniture From the People's 
Republic of China: Preliminary Results of Antidumping Duty 
Administrative Review and Intent To Rescind Review in Part, 75 FR 
5952 (February 5, 2010) (unchanged in Wooden Bedroom Furniture From 
the People's Republic of China: Final Results and Final Rescission 
in Part, 75 FR 50992 (August 18, 2010)); see Wooden Bedroom 
Furniture from the People's Republic of China: Preliminary Results 
of Antidumping Duty Administrative Review and Intent To Rescind 
Review in Part, 76 FR 7534 (February 10, 2011).
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    Thus, the Department has preliminarily selected the Philippines as 
the primary surrogate country because the record shows that the 
Philippines is at a level of economic development

[[Page 49447]]

comparable to that of the PRC and is a significant producer of 
merchandise comparable to subject merchandise. Moreover, the record 
indicates that sufficient, contemporaneous, public Philippine data are 
readily-available.\33\ Accordingly, we have calculated NV using 
Philippine prices to value Yujia's FOP.\34\ In accordance with 19 CFR 
351.301(c)(3)(ii), interested parties may submit publicly available 
information to value the FOP until 20 days after the date of 
publication of the preliminary results.\35\
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    \33\ See Petitioners' Surrogate Value Submission and Yujia's 
Surrogate Value Submission.
    \34\ See 2010 New Shipper Review of Wooden Bedroom Furniture 
from the People's Republic of China: Surrogate Value Memorandum for 
the Preliminary Results (``Surrogate Value Memorandum'').
    \35\ In accordance with 19 CFR 351.301(c)(1), for the final 
results of this new shipper review, interested parties may submit 
factual information to rebut, clarify, or correct factual 
information submitted by an interested party less than ten days 
before, on, or after, the applicable deadline for submission of such 
factual information. However, the Department notes that 19 CFR 
351.301(c)(1) permits new information only insofar as it rebuts, 
clarifies, or corrects information placed on the record. The 
Department generally will not accept the submission of additional, 
previously absent-from-the-record alternative surrogate value 
information pursuant to 19 CFR 351.301(c)(1). See Glycine from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and Final Rescission, in Part, 72 FR 58809 
(October 17, 2007) and accompanying Issues and Decision Memorandum 
at Comment 2.
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Fair Value Comparisons

    In accordance with section 777(A)(d) of the Act, to determine 
whether Yujia sold wooden bedroom furniture to the United States at 
less than NV, the Department compared the export price (``EP'') of U.S. 
sales to NV, as described in the ``U.S. Price'' and ``Normal Value'' 
sections of this notice.

U.S. Price

    In accordance with section 772(a) of the Act, the Department used 
EP as the basis for U.S. price for Yujia's sale(s) where the first sale 
to unaffiliated purchasers was made prior to importation and the use of 
constructed export price was not otherwise warranted. In accordance 
with section 772(c) of the Act, the Department calculated EP for Yujia 
by deducting the following expenses, where applicable, from the 
starting price (gross unit price) charged to the first unaffiliated 
customer in the United States: foreign inland freight from the plant to 
the port of exportation, and foreign brokerage and handling. 
Additionally, the Department based movement expenses on surrogate 
values (``SV'') where the service was purchased from a PRC company. For 
details regarding our EP calculations, see the memoranda entitled, 
``Wooden Bedroom Furniture from the People's Republic of China: 
Preliminary Results Analysis Memorandum for Dongguan Yujia Furniture 
Co., Ltd.'' (``Yujia Analysis Memorandum'') and the Surrogate Value 
Memorandum, both dated concurrently with the preliminary results.

Normal Value

    Section 773(c)(1) of the Act provides that the Department shall 
determine the NV using an FOP methodology if: (1) The merchandise is 
exported from an NME country; and (2) the information does not permit 
the calculation of NV using home-market prices, third-country prices, 
or constructed value under section 773(e) of the Act. When determining 
NV in an NME context, the Department will base NV on FOP, because the 
presence of government controls on various aspects of these economies 
renders price comparisons and the calculation of production costs 
invalid under our normal methodologies. Under section 773(c)(3) of the 
Act, FOP include, but are not limited to: (1) Hours of labor required; 
(2) quantities of raw materials employed; (3) amounts of energy and 
other utilities consumed; and (4) representative capital costs. The 
Department based NV on FOP reported by Yujia for materials, energy, 
labor and packing.
    In accordance with 19 CFR 351.408(c)(1), the Department will 
normally use publicly-available surrogates to value FOP, but when a 
producer sources an input from a market economy and pays for it in 
market economy currency, the Department will normally value the factor 
using the actual price paid for the input. However, when the Department 
has reason to believe or suspect that such prices may be distorted by 
subsidies, the Department will disregard the market economy purchase 
prices and use surrogate values to determine the NV.\36\ Where the 
facts developed in either U.S. or third-country countervailing duty 
findings include the existence of subsidies that appear to be used 
generally (in particular, broadly available, non-industry specific 
export subsidies), the Department will have reason to believe or 
suspect that prices of the inputs from the country granting the 
subsidies may be subsidized.\37\
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    \36\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China; Final Results of 
1998-1999 Administrative Review, Partial Rescission of Review, and 
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10, 
2001) (``TRBs 1998-1999''), and accompanying Issues and Decision 
Memorandum at Comment 1.
    \37\ See TRBs 1998-1999 at Comment 1; see also China Nat'l. 
Machinery Imp. & Exp. Corp. v. United States, 293 F. Supp. 2d 1334, 
1338-39 (Ct. Int'l Trade 2003).
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    In avoiding the use of prices that may be subsidized, the 
Department does not conduct a formal investigation to ensure that such 
prices are not subsidized, but rather relies on information that is 
generally available at the time of its determination.\38\
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    \38\ See H.R. Rep. 100-576, at 590 (1988), reprinted in 1988 
U.S.C.C.A.N. 1547, 1623-24.
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Factor Valuation

    In accordance with section 773(c) of the Act, we calculated NV 
based on FOP reported by Yujia for the POR. To calculate NV, the 
Department multiplied the reported per-unit factor quantities by 
publicly-available Philippine SV (except as noted below). In selecting 
the SV, the Department considered the quality, specificity, and 
contemporaneity of the data. As appropriate, the Department adjusted 
input prices by including freight costs to make them delivered prices. 
Specifically, the Department added to Philippine import SV a surrogate 
freight cost using the shorter of the reported distance from the 
domestic supplier to the respondent's factory or the distance from the 
nearest seaport to the respondent's factory where appropriate (i.e., 
where the sales terms for the market economy inputs indicate they were 
not delivered to the factory). This adjustment is in accordance with 
the decision of the Court of Appeals for the Federal Circuit (``CAFC'') 
in Sigma Corp. v. United States, 117 F.3d 1401, 1407-08 (Fed. 
Cir.1997). Due to the extensive number of SV in this new shipper 
review, we present only a brief discussion of the main FOP in this 
notice. For a detailed description of all SV used to value Yujia's 
reported FOP, see Surrogate Value Memorandum.
    Yujia reported that one of its raw material inputs was produced in 
a market economy country and paid for in market economy currencies. 
Pursuant to 19 CFR 351.408(c)(1), when a respondent sources inputs from 
a market economy supplier in meaningful quantities (i.e., not 
insignificant quantities) and pays for the inputs in a market economy 
currency, we use the actual price paid by the respondent for the inputs 
to value the inputs, except when prices may have been distorted by 
findings of dumping by the PRC and/or subsidies.\39\ Yujia reported 
information

[[Page 49448]]

demonstrating that the quantity of certain raw materials it purchased 
from market economy suppliers is significant. Thus, in accordance with 
our statement of policy as outlined in Antidumping Methodologies: 
Market Economy Inputs, we have used the actual purchases of these 
inputs to value the inputs.\40\
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    \39\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27366 (May 19, 1997).
    \40\ See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717 (October 19, 2006) (``Antidumping 
Methodologies: Market Economy Inputs''); see also Yujia Analysis 
Memorandum.
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    Where market economy purchases of inputs were not made in 
significant quantities during the POR, we used, in total or in part, 
import values for the POR from the Philippines National Statistics 
Office (``Philippines NSO'') reported in U.S. dollars on a cost, 
insurance, and freight (``CIF'') basis to value the inputs. 
Specifically, we used Philippines NSO data to value the following 
inputs: wood (e.g., medium-density fiberboard, wood veneer, etc.), 
adhesives and finishing materials (e.g., glue, paint, pigment, thinner, 
etc.), hardware (e.g., steel screws, bolts, nails, metal fittings, 
etc.), other materials (e.g., sand paper, sand cloth, sand sponge, 
wrench, etc.), and packing materials (e.g., carton box, poly bag, 
adhesive tape, polyfoam, extended polythene, etc.). The Philippines NSO 
provides data on a net weight basis, which is the same basis used by 
Yujia in reporting FOP.\41\ For a detailed description of all SV used 
to value the reported FOP, see Surrogate Value Memorandum.
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    \41\ Yujia submitted Harmonized Tariff Schedule (``HTS'') number 
44219099 for the Department's consideration in the valuation of wood 
sticks used in the production of wooden furniture. However, this HTS 
classification is valued on a per-piece basis. Because Yujia 
reported its consumption of wood sticks by weight, we based the 
surrogate value for wood sticks on all 8 digit categories within the 
4421 heading that were on a per-kilogram basis.
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    Previously, the Department used regression-based wages that 
captured the worldwide relationship between per capita Gross National 
Income (``GNI'') and hourly manufacturing wages, pursuant to 19 CFR 
351.408(c)(3), to value the respondent's cost of labor. However, on May 
14, 2010, the CAFC in Dorbest Ltd. v. United States, 604 F.3d 1363, 
1372 (Fed. Cir. 2010) (``Dorbest''), invalidated 19 CFR 351.408(c)(3). 
As a consequence of the CAFC's ruling in Dorbest, the Department no 
longer relies on the regression-based wage rate methodology described 
in its regulations. On February 18, 2011, the Department published in 
the Federal Register a request for public comment on the interim 
methodology, and the data sources. See Antidumping Methodologies in 
Proceedings Involving Non-Market Economies: Valuing the Factor of 
Production: Labor, Request for Comment, 76 FR 9544 (Feb. 18, 2011).
    On June 21, 2011, the Department revised its methodology for 
valuing the labor input in NME antidumping proceedings. See Antidumping 
Methodologies in Proceedings Involving Non-Market Economies: Valuing 
the Factor of Production: Labor, 76 FR 36092 (June 21, 2011) (``Labor 
Methodologies''). In Labor Methodologies, the Department determined 
that the best methodology to value the labor input is to use industry-
specific labor rates from the primary surrogate country. Additionally, 
the Department determined that the best data source for industry-
specific labor rates is Chapter 6A: Labor Cost in Manufacturing, from 
the International Labor Organization (ILO) Yearbook of Labor Statistics 
(``Yearbook'').
    In these preliminary results, the Department calculated the labor 
input using the wage method described in Labor Methodologies. To value 
Yujia's labor input, the Department relied on data reported by the 
Philippines to the ILO in Chapter 6A of the Yearbook. The Department 
further finds the two-digit description under International Standard 
Industrial Classification (``ISIC'') Revision 3.1 (``Manufacture of 
Furniture; Manufacturing n.e.c.'') to be the best available information 
on the record because it is specific to the industry being examined, 
and is therefore derived from industries that produce comparable 
merchandise. Accordingly, relying on Chapter 6A of the Yearbook, the 
Department calculated the labor input using labor data reported by the 
Philippines to the ILO under Sub-Classification 36 of the ISIC-Revision 
3.1 standard, in accordance with Section 773(c)(4) of the Act. For 
these preliminary results, the calculated industry-specific wage rate 
is 78 Philippine pesos. A more detailed description of the wage rate 
calculation methodology is provided in the Surrogate Value Memorandum.
    As stated above, the Department used the Philippines ILO data 
reported under Chapter 6A of the Yearbook, which reflects all costs 
related to labor, including wages, benefits, housing, training, etc. 
Since certain financial statements used to calculate the surrogate 
financial ratios include itemized details of indirect labor costs such 
as benefits, bonuses, pensions, and other items for staff welfare, the 
Department made adjustments to the surrogate financial ratios by moving 
costs from manufacturing and overhead to labor. See Labor 
Methodologies.
    We valued electricity using Philippine data from The Cost of Doing 
Business in Camarines Sur, which is available at the Philippine 
government's Web site for the province: https://www.camarinessur.gov.ph. 
These data pertain only to the cost of electricity for industrial 
consumption.\42\
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    \42\ See Surrogate Value Memorandum.
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    We valued inland freight and brokerage and handling using 
Philippine data from the World Bank's 2011 Doing Business in the 
Philippines report. The 2011 World Bank report includes data 
contemporaneous with the POR.\43\
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    \43\ See Ibid.
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    We valued factory overhead, selling, and general, and 
administrative (``SG&A'') expenses, and profit, using the audited 
financial statements for the fiscal year ending December 31, 2009, from 
the following companies: APY Cane International; Arkane International, 
Corp.; Berbenwood Industries Inc.; Betis Crafts, Inc.; Clear Export 
Industries, Inc.; Heritage Muebles Mirabile Export Inc.; Insular Rattan 
& Native Products Corporation; Interior Crafts Of The Islands, Inc.; 
Las Palmas Furniture, Inc.; Maple and Pine International, Inc.; 
Stonesets International Inc.; and Wicker & Vine, Inc., which are 
Philippine producers of merchandise identical to subject merchandise 
that received no countervailable subsidies and that earned a before-tax 
profit in 2009. From this information, we were able to determine 
factory overhead costs as a percentage of the total raw materials, 
labor and energy (``ML&E'') costs; SG&A expenses as a percentage of 
ML&E plus overhead costs (i.e., cost of manufacture); and the profit 
rate as a percentage of the cost of manufacture plus SG&A expenses. For 
further discussion, see Surrogate Value Memorandum.

Currency Conversion

    We made currency conversions into U.S. dollars, in accordance with 
section 773A(a) of the Act, based on the exchange rates in effect on 
the dates of the U.S. sales as certified by the Federal Reserve Bank.

Preliminary Results of Review

    The Department preliminarily determines that the following 
weighted-average dumping margin exists for the period January 1, 2010, 
through December 31, 2010:

[[Page 49449]]



------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                     Exporter/Producer                         margin
                                                              (percent)
------------------------------------------------------------------------
Dongguan Yujia Furniture Co., Ltd.........................         0.00
------------------------------------------------------------------------

Disclosure

    The Department will disclose calculations performed for these 
preliminary results to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b).

Public Comment

    Interested parties may submit written comments no later than 30 
days after the date of publication of these preliminary results of 
review. See 19 CFR 351.309(c). Rebuttals to written comments must be 
limited to the issues raised in the written comments and may be filed 
no later than five days after the deadline for filing case briefs. See 
19 CFR 351.309(d). Further, parties submitting written comments and 
rebuttal comments are requested to provide the Department with an 
additional copy of those comments on a compact disk. Any interested 
party may request a hearing within 30 days of publication of these 
preliminary results. See 19 CFR 351.310(c). If requested, a hearing 
normally will be held two days after the scheduled date for submission 
of rebuttal comments. See 19 CFR 351.310(d). Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
    The Department will issue the final results of this new shipper 
review, which will include the results of its analysis of any issues 
raised in written comments, within 90 days of the date on which these 
preliminary results are issued, in accordance with 19 CFR 
351.214(i)(1), unless the time limit is extended. See 19 CFR 
351.214(i)(2).

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this review. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of this review. In accordance with 19 CFR 351.212(b)(1), we are 
calculating importer- (or customer-) specific assessment rates for the 
merchandise subject to this review. Where the respondent has reported 
reliable entered values, we calculate importer- (or customer-) specific 
ad valorem rates by aggregating the dumping margins calculated for all 
U.S. sales to each importer (or customer) and dividing this amount by 
the total entered value of the sales to each importer (or customer). 
Where an importer- (or customer-) specific ad valorem rate is greater 
than de minimis, we will apply the assessment rate to the entered value 
of the importers'/customers' entries during the POR, pursuant to 19 CFR 
351.212(b)(1).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this new shipper review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For the exporter 
listed above, the cash deposit rate will be the rate established in the 
final results of this review (except, if the rate is zero or de 
minimis, i.e., less than 0.5 percent, a zero cash deposit rate will be 
required for that company); (2) for previously investigated or reviewed 
PRC and non-PRC exporters not listed above that have separate rates, 
the cash deposit rate will continue to be the exporter-specific rate 
published for the most recent period; (3) for all PRC exporters of 
subject merchandise that have not been found to be entitled to a 
separate rate, the cash deposit rate will be the PRC-wide rate of 
216.01 percent; and (4) for all non-PRC exporters of subject 
merchandise which have not received their own rate, the cash deposit 
rate will be the rate applicable to the PRC exporter(s) that supplied 
that non-PRC exporter. These deposit requirements, when imposed, shall 
remain in effect until further notice.

Notification to Interested Parties

    This notice serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this POR. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    The Department is issuing and publishing this determination in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR 
351.214(h) and 351.221(b)(4).

    Dated: August 3, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-20327 Filed 8-9-11; 8:45 am]
BILLING CODE 3510-DS-P