Certain Hardwood Plywood Products From the People's Republic of China: Countervailing Duty Order, 513-516 [2017-28481]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 83, Number 3 (Thursday, January 4, 2018)]
[Notices]
[Pages 513-516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-28481]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing the countervailing duty order on certain hardwood 
plywood products (hardwood plywood) from the People's Republic of China 
(China).

DATES: Applicable January 4, 2018.

FOR FURTHER INFORMATION CONTACT: Justin Neuman at (202) 482-0486, or 
Matthew Renkey at (202) 482-2312, AD/CVD Operations, Office V, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (Act), on November 16, 2017, Commerce published its affirmative 
final determination that countervailable subsidies are being provided 
to producers and exporters of hardwood plywood from China.\1\ On 
December 20, 2017, the ITC notified Commerce of its affirmative 
determination that an industry in the United States is materially 
injured within the meaning

[[Page 514]]

of section 705(b)(1)(A)(i) of the Act, by reason of subsidized imports 
of subject merchandise from China.\2\
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    \1\ See Countervailing Duty Investigation of Certain Hardwood 
Plywood Products from the People's Republic of China: Final 
Affirmative Determination, and Final Affirmative Critical 
Circumstances Determination, in Part, 82 FR 53473 (November 16, 
2017).
    \2\ See Letter to Gary Taverman, Acting Assistant Secretary of 
Commerce for Enforcement and Compliance, from Rhonda K. Schmidtlein, 
Chairman of the U.S. International Trade Commission, regarding 
certain hardwood plywood products from the People's Republic of 
China (December 20, 2017) (ITC Letter).
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Scope of the Order

    The scope of this order covers hardwood plywood from China. For a 
complete description of the scope, see the Appendix to this notice.

Countervailing Duty Order

    On December 20, 2017, in accordance with sections 705(b)(1)(A)(i) 
and 705(d) of the Act, the ITC notified Commerce of its final 
determination in this investigation, in which it found that an industry 
in the United States is materially injured by reason of imports of 
hardwood plywood from China.\3\ Therefore, in accordance with section 
705(c)(2) of the Act, Commerce is issuing this countervailing duty 
order. Because the ITC determined that imports of hardwood plywood from 
China are materially injuring a U.S. industry, unliquidated entries of 
such merchandise from China, entered or withdrawn from warehouse for 
consumption, are subject to the assessment of countervailing duties.
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    \3\ See ITC Letter.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of hardwood plywood from China. Countervailing duties will be 
assessed on unliquidated entries of hardwood plywood from China 
entered, or withdrawn from warehouse, for consumption on or after April 
25, 2017, the date of publication of the Preliminary Determination,\4\ 
but will not include entries occurring after the expiration of the 
provisional measures period and before publication of the ITC's final 
injury determination as further described below.
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    \4\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Critical Circumstances 
Determination, in Part, and Alignment of Final Determination With 
Final Antidumping Duty Determination, 82 FR 19022 (April 25, 2017).
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation of hardwood plywood 
from China. We will also instruct CBP to require, pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates for the subject merchandise. These instructions 
suspending liquidation will remain in effect until further notice. The 
all-others rate applies to all producers and exporters of subject 
merchandise.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Shandong Dongfang Bayley Wood Co., Ltd \5\..............          194.90
Linyi Sanfortune Wood Co., Ltd..........................           22.98
All-Others..............................................           22.98
Anji Qichen Bamboo Industry Co. Ltd \6\.................          194.90
Deqing Shengqiang Wood Co., Ltd.........................          194.90
Guangxi Sunway Cen.Xi Artificial Board Ltd..............          194.90
Guangxi Sunway Forest Products Industry Co., Ltd........          194.90
Hebei Tongli Wood Co., Ltd..............................          194.90
Heze Fulin Wood Products Co., Ltd.......................          194.90
Jiashan Minghong Wood Industry Co., Ltd.................          194.90
Jiaxing Brilliant Import & Export Co., Ltd..............          194.90
Keens Products..........................................          194.90
King Sheng..............................................          194.90
Kunming Alston Ast Wood Products Co., Ltd...............          194.90
Langfang Baomujie Wood Co., Ltd.........................          194.90
Larkcop International Co., Ltd..........................          194.90
Linyi Cathay Pacific Wood Factory.......................          194.90
Linyi Celtic Wood Co., Ltd..............................          194.90
Linyi Dongri Plywood Co., Ltd...........................          194.90
Linyi Hongma............................................          194.90
Linyi Jinhua Wood Co., Ltd..............................          194.90
Linyi Kai Yi Arts and Crafts Co., Ltd...................          194.90
Linyi Laiyi Timber Industry Co., Ltd....................          194.90
Linyi Lianyi Wood Co., Ltd..............................          194.90
Linyi Raya Commerce.....................................          194.90
Linyi Yutai Wood Co., Ltd...............................          194.90
Lishui Liancheng Pencil Manufacturing Co., Ltd..........          194.90
Mol Consolidation Service...............................          194.90
Ningbo Asia Pulp and Paper..............................          194.90
Ningbo Zhonghua Paper...................................          194.90
Qiangsheng Wood Co., Ltd................................          194.90
Qingdao Liansheng International Trading.................          194.90
Qufu Shengda Wood Co., Ltd..............................          194.90
Shandong Fengtai Wood Co., Ltd..........................          194.90
Shandong Hongyang Fire Resistant........................          194.90
Shandong Xingang Group..................................          194.90
Shanghai Sunshine Decorative Materials Co., Ltd.........          194.90
Shenghe Wood Company Ltd................................          194.90
Shouguang Evergreen Im & Ex Co. Ltd \7\.................          194.90
Shouguang Taizhong Wood Co., Ltd........................          194.90
Siyang Jiayuan Woodindustry Co., Ltd....................          194.90
Siyang Senda Wood Industry Co., Ltd.....................          194.90

[[Page 515]]

 
Suqian Bairun Wood Industry Co., Ltd....................          194.90
Suqian Foreign Trade Co., Ltd...........................          194.90
Suqian Sulu Wood Industry Co., Ltd \8\..................          194.90
Suzbou Dong He Wood Co., Ltd............................          194.90
Tianjin Canex...........................................          194.90
Tianjin Zhanye Metal Products Co., Ltd..................          194.90
Xuzhou Fuyuan Wood Co., Ltd.............................          194.90
Xuzhou Hongwei Wood Co., Ltd............................          194.90
Xuzhou Ruilin Timber Co., Ltd...........................          194.90
Xuzhou Shenghe Wood Products............................          194.90
Xuzhou Woodhi Trading Co. Ltd...........................          194.90
Xuzhou Yishun Brightwood Co. Ltd........................          194.90
Xuzhou Zhongda Building Materials Co., Ltd..............          194.90
Xuzhou Zhongyuan Wood Co., Ltd..........................          194.90
Yixing Lion-King Timber Industry Co., Ltd...............          194.90
Zhejiang Deqing Shengqiang Wood Co., Ltd................          194.90
Zhejiang Fuerjia Wooden Company.........................          194.90
Zhejiang Jufeng Wood Co., Ltd...........................          194.90
Zhejiang Xinyuan Bamboo Products Co., Ltd...............          194.90
Zhejiang Yongyu Bamboo Joint-Stock Co., Ltd.............          194.90
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Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigation, Commerce 
published the Preliminary Determination on April 25, 2017. As such, the 
four-month period beginning on the date of the publication of the 
Preliminary Determination ended on August 23, 2017. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination.
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    \5\ As discussed in the Preliminary Determination, Commerce 
found that Shandong Dongfang Bayley Wood Co., Ltd. (Bayley Wood) is 
cross-owned with Linyi Yinhe Panel Factory (Yinhe Panel), a producer 
of subject merchandise. Commerce is also applying Bayley Wood's rate 
to Yinhe Panel.
    \6\ This company and those listed below are receiving the AFA 
rate because they did not respond to our quantity and value 
questionnaire.
    \7\ This company was listed as having the following two ``aka'' 
names: Shouguang Evergreen Co., Ltd. and Weifang Evergreen Wood Co., 
Ltd.
    \8\ This company was listed as having the following ``aka'' 
name: Suqian Sulu Import and Export Trading.
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    Therefore, in accordance with section 703(d) of the Act and our 
practice, we instructed CBP to terminate the suspension of liquidation 
and to liquidate, without regard to countervailing duties, unliquidated 
entries of hardwood plywood from China entered, or withdrawn from 
warehouse, for consumption, on or after August 23, 2017, the date the 
provisional measures expired, until and through the day preceding the 
date of publication of the ITC's final injury determination in the 
Federal Register. Suspension of liquidation will resume on the date of 
publication of the ITC's final determination in the Federal Register.

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to hardwood plywood from China pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at https://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: December 28, 2017.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise subject to this investigation is hardwood and 
decorative plywood, and certain veneered panels as described below. 
For purposes of this proceeding, hardwood and decorative plywood is 
defined as a generally flat, multilayered plywood or other veneered 
panel, consisting of two or more layers or plies of wood veneers and 
a core, with the face and/or back veneer made of non-coniferous wood 
(hardwood) or bamboo. The veneers, along with the core may be glued 
or otherwise bonded together. Hardwood and decorative plywood may 
include products that meet the American National Standard for 
Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2016 (including any 
revisions to that standard).
    For purposes of this investigation a ``veneer'' is a slice of 
wood regardless of thickness which is cut, sliced or sawed from a 
log, bolt, or flitch. The face and back veneers are the outermost 
veneer of wood on either side of the core irrespective of additional 
surface coatings or covers as described below.
    The core of hardwood and decorative plywood consists of the 
layer or layers of one or more material(s) that are situated between 
the face and back veneers. The core may be composed of a range of 
materials, including but not limited to hardwood, softwood, 
particleboard, or medium-density fiberboard (MDF).
    All hardwood plywood is included within the scope of this 
investigation regardless of whether or not the face and/or back 
veneers are surface coated or covered and whether or not such 
surface coating(s) or covers obscures the grain, textures, or 
markings of the wood. Examples of surface coatings and covers 
include, but are not limited to: Ultra violet light cured 
polyurethanes; oil or oil-modified or water based polyurethanes; 
wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; 
paper; aluminum; high pressure laminate; MDF; medium density overlay 
(MDO); and phenolic film. Additionally, the face veneer of hardwood 
plywood may be sanded; smoothed or given a ``distressed'' appearance 
through such methods as hand-scraping or wire brushing. All hardwood 
plywood is included within the scope even if it is trimmed; cut-to-
size; notched; punched; drilled; or has underwent other forms of 
minor processing.
    All hardwood and decorative plywood is included within the scope 
of this investigation, without regard to dimension (overall 
thickness, thickness of face veneer, thickness of back veneer, 
thickness of core, thickness of inner veneers, width, or length). 
However, the most common panel sizes of hardwood and decorative 
plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 
inches), and 1219 x 3048 mm (48 x 120 inches).
    Subject merchandise also includes hardwood and decorative 
plywood that has been further processed in a third country, 
including but not limited to trimming, cutting, notching, punching, 
drilling, or any other processing that would not otherwise remove 
the merchandise from the scope of the investigation if performed in 
the country of manufacture of the in-scope product.

[[Page 516]]

    The scope of the investigation excludes the following items: (1) 
Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured to meet U.S. Products 
Standard PS 1-09, PS 2-09, or PS 2-10 for Structural Plywood 
(including any revisions to that standard or any substantially 
equivalent international standard intended for structural plywood), 
and which has both a face and a back veneer of coniferous wood; (2) 
products which have a face and back veneer of cork; (3) multilayered 
wood flooring, as described in the antidumping duty and 
countervailing duty orders on Multilayered Wood Flooring from the 
People's Republic of China, Import Administration, International 
Trade Administration. See Multilayered Wood Flooring from the 
People's Republic of China, 76 FR 76690 (December 8, 2011) (amended 
final determination of sales at less than fair value and antidumping 
duty order), and Multilayered Wood Flooring from the People's 
Republic of China, 76 FR 76693 (December 8, 2011) (countervailing 
duty order), as amended by Multilayered Wood Flooring from the 
People's Republic of China: Amended Antidumping and Countervailing 
Duty Orders, 77 FR 5484 (February 3, 2012); (4) multilayered wood 
flooring with a face veneer of bamboo or composed entirely of 
bamboo; (5) plywood which has a shape or design other than a flat 
panel, with the exception of any minor processing described above; 
(6) products made entirely from bamboo and adhesives (also known as 
``solid bamboo''); and (7) Phenolic Film Faced Plyform (PFF), also 
known as Phenolic Surface Film Plywood (PSF), defined as a panel 
with an ``Exterior'' or ``Exposure 1'' bond classification as is 
defined by The Engineered Wood Association, having an opaque 
phenolic film layer with a weight equal to or greater than 90g/m3 
permanently bonded on both the face and back veneers and an opaque, 
moisture resistant coating applied to the edges.
    Excluded from the scope of this investigation are wooden 
furniture goods that, at the time of importation, are fully 
assembled and are ready for their intended uses. Also excluded from 
the scope of this investigation is ``ready to assemble'' (RTA) 
furniture. RTA furniture is defined as (A) furniture packaged for 
sale for ultimate purchase by an end-user that, at the time of 
importation, includes (1) all wooden components (in finished form) 
required to assemble a finished unit of furniture, (2) all accessory 
parts (e.g., screws, washers, dowels, nails, handles, knobs, 
adhesive glues) required to assemble a finished unit of furniture, 
and (3) instructions providing guidance on the assembly of a 
finished unit of furniture; (B) unassembled bathroom vanity 
cabinets, having a space for one or more sinks, that are imported 
with all unassembled hardwood and hardwood plywood components that 
have been cut-to-final dimensional component shape/size, painted or 
stained prior to importation, and stacked within a singled shipping 
package, except for furniture feet which may be packed and shipped 
separately; or (C) unassembled bathroom vanity linen closets that 
are imported with all unassembled hardwood and hardwood plywood 
components that have been cut-to-final dimensional shape/size, 
painted or stained prior to importation, and stacked within a single 
shipping package, except for furniture feet which may be packed and 
shipped separately.
    Excluded from the scope of this investigation are kitchen 
cabinets that, at the time of importation, are fully assembled and 
are ready for their intended uses. Also excluded from the scope of 
this investigation are RTA kitchen cabinets. RTA kitchen cabinets 
are defined as kitchen cabinets packaged for sale for ultimate 
purchase by an end-user that, at the time of importation, includes 
(1) all wooden components (in finished form) required to assemble a 
finished unit of cabinetry, (2) all accessory parts (e.g., screws, 
washers, dowels, nails, handles, knobs, hooks, adhesive glues) 
required to assemble a finished unit of cabinetry, and (3) 
instructions providing guidance on the assembly of a finished unit 
of cabinetry.
    Excluded from the scope of this investigation are finished table 
tops, which are table tops imported in finished form with pre-cut or 
drilled openings to attach the underframe or legs. The table tops 
are ready for use at the time of import and require no further 
finishing or processing.
    Excluded from the scope of this investigation are finished 
countertops that are imported in finished form and require no 
further finishing or manufacturing.
    Excluded from the scope of this investigation are laminated 
veneer lumber door and window components with (1) a maximum width of 
44 millimeters, a thickness from 30 millimeters to 72 millimeters, 
and a length of less than 2413 millimeters (2) water boiling point 
exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds 
per square inch or higher, (4) finger-jointed or lap-jointed core 
veneer with all layers oriented so that the grain is running 
parallel or with no more than 3 dispersed layers of veneer oriented 
with the grain running perpendicular to the other layers; and (5) 
top layer machined with a curved edge and one or more profile 
channels throughout.
    Imports of hardwood plywood are primarily entered under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 
4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 
4412.31.4050; 4412.31.4060; 4412.31.4075; 4412.31.4080; 
4412.31.4140; 4412.31.4150; 4412.31.4160; 4412.31.4180; 
4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 
4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5265; 
4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 
4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0565; 
4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 
4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.2610; 
4412.32.2630; 4412.32.3125; 4412.32.3135; 4412.32.3155; 
4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.3235; 
4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 
4412.32.5600; 4412.32.3235; 4412.32.3255; 4412.32.3265; 
4412.32.3275; 4412.32.3285; 4412.32.5700; 4412.94.1030; 
4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 
4412.94.3141; 4412.94.3161; 4412.94.3175; 4412.94.4100; 
4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 
4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 
4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 
4412.99.5115; and 4412.99.5710.
    Imports of hardwood plywood may also enter under HTSUS 
subheadings 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 
4412.10.9000; 4412.94.5100; 4412.94.9500; and 4412.99.9500. While 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this investigation 
is dispositive.

[FR Doc. 2017-28481 Filed 1-3-18; 8:45 am]
 BILLING CODE 3510-DS-P