Mattresses From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 52386-52391 [2018-22577]
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Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
The
Travel Promotion Act of 2009 (TPA) was
signed into law on March 4, 2010 and
was amended in July 2010 and
December 2014. The TPA established
the Corporation for Travel Promotion
(the Corporation), as a non-profit
corporation charged with the
development and execution of a plan to
(A) provide useful information to those
interested in traveling to the United
States; (B) identify and address
perceptions regarding U.S. entry
policies; (C) maximize economic and
diplomatic benefits of travel to the
United States through the use of various
promotional tools; (D) ensure that
international travel benefits all States
and the District of Columbia, and (E)
identify opportunities to promote
tourism to rural and urban areas
equally, including areas not
traditionally visited by international
travelers.
The Corporation is governed by a
Board of Directors, consisting of 11
members with knowledge of
international travel promotion or
marketing, broadly representing various
regions of the United States. The TPA
directs the Secretary of Commerce (after
consultation with the Secretary of
Homeland Security and the Secretary of
State) to appoint the Board of Directors
for the Corporation.
On July 19, 2018, the Department
published in the Federal Register a
‘‘Notice of an opportunity for travel and
tourism industry leaders to apply for
membership on the Board of Directors of
the Corporation for Travel Promotion’’
(83 FR 34112), announcing membership
opportunities on the Board of Directors
of the Corporation for Travel Promotion.
The application period closed on
August 17, 2018. The Department is
now reopening the application period to
solicit additional applications. This
notice supplements the notice of July
19, 2018. Interested parties who have
already applied in response to that
Federal Register notice do not need to
re-apply.
At this time, the Department will be
selecting four individuals with the
appropriate expertise and experience
from specific sectors of the travel and
tourism industry to serve on the Board
as follows:
(A) 1 shall have appropriate expertise
and experience in the hotel
accommodations sector;
(B) 1 shall have appropriate expertise
and experience as an official of a city
convention and visitors’ bureau;
(C) 1 shall have appropriate expertise
and experience in the restaurant sector;
and
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SUPPLEMENTARY INFORMATION:
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(D) 1 shall have appropriate expertise
and experience as an official of a state
tourism office.
To be eligible for Board membership,
individuals must have international
travel and tourism marketing
experience, be a current or former chief
executive officer, chief financial officer,
or chief marketing officer or have held
an equivalent management position.
Additional consideration will be given
to individuals who have experience
working in U.S. multinational entities
with marketing budgets, and/or who are
audit committee financial experts as
defined by the Securities and Exchange
Commission (in accordance with 15
U.S.C. 7265). Individuals must be U.S.
citizens, and in addition, cannot be
federally registered lobbyists or
registered as a foreign agent under the
Foreign Agents Registration Act of 1938,
as amended. Those selected for the
Board must be able to meet the time and
effort commitments of the Board.
Board members serve at the discretion
of the Secretary of Commerce (who may
remove any member of the Board for
good cause). The terms of office of each
member of the Board appointed by the
Secretary shall be three (3) years. Board
members can serve a maximum of two
consecutive full three-year terms. Board
members are not considered Federal
government employees by virtue of their
service as a member of the Board and
will receive no compensation from the
Federal government for their
participation in Board activities.
Members participating in Board
meetings and events may be paid actual
travel expenses and per diem by the
Corporation when away from their usual
places of residence.
Individuals who want to be
considered for appointment to the Board
should submit the following
information by the Friday, October 26,
2018 deadline to the address listed in
the ADDRESSES section above:
1. Name, title, and personal resume of
the individual requesting consideration,
including address, email address and
phone number.
2. A brief statement of why the person
should be considered for appointment
to the Board. This statement should also
address the individual’s relevant
international travel and tourism
marketing experience and audit
committee financial expertise, if any,
and indicate clearly the sector or sectors
enumerated above in which the
individual has the requisite expertise
and experience. Individuals who have
the requisite expertise and experience in
more than one sector can be appointed
for only one of those sectors.
Appointments of members to the Board
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will be made by the Secretary of
Commerce.
3. An affirmative statement that the
applicant is a U.S. citizen and further,
is not required to register as a foreign
agent under the Foreign Agents
Registration Act of 1938, as amended.
Dated: October 12, 2018.
Julie P. Heizer,
Deputy Director, National Travel and Tourism
Office.
[FR Doc. 2018–22580 Filed 10–16–18; 8:45 am]
BILLING CODE 3510–DR–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–092]
Mattresses From the People’s Republic
of China: Initiation of Less-Than-FairValue Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable October 9, 2018.
FOR FURTHER INFORMATION CONTACT:
Stephen Bailey or Lilit Astvatsatrian at
(202) 482–0193 or (202) 482–6412,
respectively; AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On September 18, 2018, the U.S.
Department of Commerce (Commerce)
received an antidumping duty (AD)
Petition concerning imports of
mattresses from the People’s Republic of
China (China), filed in proper form on
behalf of Corsicana Mattress Company,
Elite Comfort Solutions, Future Foam
Inc., FXI, Inc., Innocor, Inc., Kolcraft
Enterprises Inc., Leggett & Platt,
Incorporated, Serta Simmons Bedding,
LLC, and Tempur Sealy International,
Inc. (the petitioners).1
On September 25, 2018, October 2,
and October 5, 2018, the petitioners
filed responses to a supplemental
questionnaire issued by Commerce and
a request for revisions to their surrogate
financial ratio calculation and scope,
respectively.2
1 See the petitioners’ Letter, ‘‘Mattresses from the
People’s Republic of China: Antidumping Duty
Petition,’’ dated September 18, 2018 (the Petition).
2 See Commerce’s Letter, ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Mattresses from the People’s Republic of China:
Supplemental Questions,’’ dated September 21,
2018; the petitioner’s letter, ‘‘Mattresses from the
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In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioners allege that imports
of mattresses from China are being, or
are likely to be, sold in the United States
at less than fair value within the
meaning of section 731 of the Act, and
that such imports are materially
injuring, or threatening material injury
to, the domestic industry producing
mattresses in the United States.
Consistent with section 732(b)(1) of the
Act, the Petition is accompanied by
information reasonably available to the
petitioners supporting their allegation.
Commerce finds that the petitioners
filed the Petition on behalf of the
domestic industry because the
petitioners are interested parties as
defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioners
demonstrated sufficient industry
support with respect to the initiation of
the investigation that the petitioners are
requesting.3
Period of Investigation
Because China is a non-market
economy (NME) country, pursuant to 19
CFR 351.204(b)(1), the period of
investigation (POI) is January 1, 2018,
through June 30, 2018.
Scope of the Investigation
The product covered by this
investigation is mattresses from China.
For a full description of the scope of this
investigation, see the Appendix to this
notice.
Scope Comments
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During our review of the Petition, we
contacted the petitioners regarding the
proposed scope to ensure that the scope
language in the Petition is an accurate
reflection of the products for which the
domestic industry is seeking relief.4 As
a result, the scope of the Petition was
modified to clarify the description of
merchandise covered by the Petition.
The description of the merchandise
covered by this investigation, in the
People’s Republic of China: Response to the
Department of Commerce’s September 21, 2018
Supplemental Questions,’’ dated September 25,
2018 (Petition Supplement); Memorandum, ‘‘Phone
Conversation Regarding Surrogate Financial Ratio
Calculations,’’ dated October 2, 2018; the
petitioner’s letter, ‘‘Mattresses from the People’s
Republic of China: Request for Revised Normal
Value and Dumping Margin Calculations,’’ dated
October 2, 2018 (Second Supplement) and the
petitioner’s letter, ‘‘Mattresses from the People’s
Republic of China: Modification to Scope
Language,’’ dated October 5, 2018 (Scope
Supplement).
3 See the ‘‘Determination of Industry Support for
the Petition’’ section, infra.
4 See Petition Supplement at 3–5 and Scope
Supplement at 1–3.
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Appendix to this notice, reflects these
clarifications.
As discussed in the preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).5 Commerce will consider all
scope comments received from
interested parties and, if necessary, will
consult with interested parties prior to
the issuance of the preliminary
determination. If scope comments
include factual information,6 all such
factual information should be limited to
public information. To facilitate
preparation of the AD questionnaire,
Commerce requests that all interested
parties submit scope comments by 5:00
p.m. Eastern Time (ET) on October 29,
2018, which is 20 calendar days from
the signature date of this notice. Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on November 8, 2018,
which is 10 calendar days from the
initial comments deadline.7
Commerce requests that any factual
information considered by parties to be
relevant to the scope of the investigation
be submitted during this period.
However, if a party subsequently finds
that additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the record of the AD
investigation.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).8
An electronically filed document must
be received successfully in its entirety
by the time and date that it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
5 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
6 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
7 See 19 CFR 351.303(b).
8 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook%20on%20
Electronic%20Filling%20Procedures.pdf.
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18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
Comments on Product Characteristics
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of mattresses to be reported in response
to Commerce’s AD questionnaire. This
information will be used to identify the
key physical characteristics of the
merchandise under consideration in
order to report the relevant factors of
production (FOP) accurately, as well as
to develop appropriate productcomparison criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaire, all
product characteristics comments must
be filed by 5:00 p.m. ET on October 29,
2018, which is 20 calendar days from
the signature date of this notice. Any
rebuttal comments must be filed by 5:00
p.m. ET on November 8, 2018. All
comments and submissions to
Commerce must be filed electronically
on the record of this investigation using
ACCESS, as explained above.9
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) if there is a large number of
producers in the industry, determine
industry support using a statistically
valid sampling method to poll the
‘‘industry.’’
9 See
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19 CFR 351.303(b).
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Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers, as a
whole, of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,10 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.11
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the Petition).
With regard to the domestic like
product, the petitioners do not offer a
definition of the domestic like product
distinct from the scope of the Petition.
Based on our analysis of the information
submitted on the record, we have
determined that mattresses, as defined
in the scope, constitute a single
domestic like product, and we have
analyzed industry support in terms of
that domestic like product.12
In determining whether the
petitioners have standing under section
732(c)(4)(A) of the Act, we considered
the industry support data contained in
the Petition with reference to the
10 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
12 For a discussion of the domestic like product
analysis, see Antidumping Duty Investigation
Initiation Checklist: Mattresses from the People’s
Republic of China (China AD Initiation Checklist)
at Attachment II, Analysis of Industry Support for
the Antidumping Duty Petition Covering Mattresses
from the People’s Republic of China (Attachment
II). This checklist is dated concurrently with, and
hereby adopted by, this notice and is on file
electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central
Records Unit, Room B8024 of the main Department
of Commerce building.
domestic like product as defined in the
‘‘Scope of the Investigation,’’ in the
Appendix to this notice. To establish
industry support, the petitioners
provided their own shipments of the
domestic like product in 2017, and
compared this to the estimated total
shipments of the domestic like product
for the entire domestic industry.13
Because total industry production data
for the domestic like product for 2017
are not reasonably available to the
petitioners, and the petitioners have
established that shipments are a
reasonable proxy for production data,14
we have relied on the data the
petitioners provided for purposes of
measuring industry support.15
Our review of the data provided in the
Petition, the Petition Supplement, and
other information readily available to
Commerce indicates that the petitioners
have established industry support for
the Petition.16 First, the petitioners
established support from domestic
producers (or workers) accounting for
more than 50 percent of the total
production of the domestic like product
and, as such, Commerce is not required
to take further action in order to
evaluate industry support (e.g.,
polling).17 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.18 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.19 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.
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11 See
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13 See Petition Supplement at 8–10 and Exhibits
3 through 6.
14 See Volume I of the Petition at 5.
15 Id. at 5; see also Volume II of the Petition at
Exhibits 3 and 16; see also Petition Supplement at
8–10 and Exhibits 3 through 6. For further
discussion, see China AD Initiation Checklist at
Attachment II.
16 See China AD Initiation Checklist at
Attachment II.
17 See section 732(c)(4)(D) of the Act; see also
China AD Initiation Checklist at Attachment II.
18 See China AD Initiation Checklist at
Attachment II.
19 Id.
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Commerce finds that the petitioners
filed the Petition on behalf of the
domestic industry because they are
interested parties as defined in section
771(9)(C) of the Act, and they have
demonstrated sufficient industry
support with respect to the investigation
that they are requesting that Commerce
initiate.20
Allegations and Evidence of Material
Injury and Causation
The petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (NV). In addition, the petitioners
allege that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.21
The petitioners contend that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports,
reduced market share, underselling and
price depression or suppression, lost
sales and revenues, and declines in the
domestic industry’s production, U.S.
shipments, production-related workers,
and financial performance.22 We have
assessed the allegations and supporting
evidence regarding material injury,
threat of material injury, and causation,
and we have determined that these
allegations are properly supported by
adequate evidence, and meet the
statutory requirements for initiation.23
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which Commerce based its
decision to initiate this investigation.
The sources of U.S. prices and data
relating to NV are discussed in greater
detail in the China AD Initiation
Checklist.
Export Price
The petitioners based export price
(EP) on an actual invoice price for
mattresses produced in, and exported
from, China and sold or offered for sale
in the United States, and on the average
unit value (AUV) of publicly available
20 Id.
21 See Volume I of the Petition at 16; see also
Volume II of the Petition at Exhibit 10.
22 See Volume I of the Petition at 1–3, 13, 16–31,
see also Volume II of the Petition at Exhibits 3 and
10 through 20.
23 See China AD Initiation Checklist at
Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping Duty Petition Covering Mattresses
from the People’s Republic of China.
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manufacturers’ FOPs.30 The petitioners
valued the estimated FOPs using
surrogate values from Mexico, as noted
above.31
import data.24 No adjustments were
made to the U.S. prices before
comparing them to NV.25
Normal Value
Commerce considers China to be an
NME country.26 In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by Commerce. Therefore,
we are continuing to treat China as an
NME country for purposes of initiating
this investigation. Accordingly, NV in
China is appropriately based on FOPs
valued in a surrogate market economy
country, in accordance with section
773(c) of the Act.27
The petitioners claim that Mexico is
an appropriate surrogate country for
China because it is a market economy
country that is at a level of economic
development comparable to that of
China and it is a significant producer of
comparable merchandise.28 The
petitioners provided publicly available
information from Mexico, including
financial statements of a Mexican
producer of mattresses, to value all
FOPs.29 Based on the information
provided by the petitioners, we
determine that it is appropriate to use
Mexico as the primary surrogate country
for initiation purposes.
Interested parties will have the
opportunity to submit comments
regarding surrogate country selection
and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs within 30
days before the scheduled date of the
preliminary determination.
FOPs
The petitioners asserted that
information regarding the types and
volumes of inputs that are consumed by
Chinese companies in producing
mattresses is not reasonably available to
them; thus, the petitioners used the
consumption rates of a U.S. mattress
producer to estimate the Chinese
24 See
China AD Initiation Checklist.
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25 Id.
26 See Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017), and accompanying decision
memorandum, titled China’s Status as a NonMarket Economy (unchanged in Certain Aluminum
Foil from the People’s Republic of China: Final
Determination of Sales at Less Than Fair Value, 83
FR 9282 (March 5, 2018)).
27 See China AD Initiation Checklist.
28 See Volume II of the Petition at 32–34 and
Exhibits 24.
29 Id. at 34–36 and Exhibits 26–30.
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Fair Value Comparisons
Based on the data provided by the
petitioners, there is reason to believe
that imports of mattresses from China
are being, or are likely to be, sold in the
United States at less than fair value.
Based on comparisons of EP to NV in
accordance with sections 772 and 773 of
the Act, the estimated dumping margins
for mattresses from China are 258.74
and 1,731.75 percent.32
Initiation of Less-Than-Fair-Value
Investigation
Based upon the examination of the
Petition, we find that the Petition meets
the requirements of section 732 of the
Act. Therefore, we are initiating an AD
investigation to determine whether
imports of mattresses from China are
being, or are likely to be, sold in the
United States at less than fair value. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
Respondent Selection
The petitioners named 55 producers/
exporters as accounting for the majority
of exports of mattresses to the United
States from China.33 In accordance with
our standard practice for respondent
selection in AD cases involving NME
countries, we intend to issue quantity
and value (Q&V) questionnaires to
producers/exporters of merchandise
subject to this investigation. In the event
Commerce determines that it cannot
individually examine each producer/
exporter, where appropriate, Commerce
intends to select mandatory respondents
based on the responses received to its
Q&V questionnaire. Commerce will
request Q&V information from known
exporters and producers identified with
complete contact information in the
Petition. In addition, Commerce will
post the Q&V questionnaire along with
filing instructions on Enforcement and
Compliance’s website at https://
www.trade.gov/enforcement/news.asp.
Producers/exporters of mattresses
from China that do not receive Q&V
questionnaires by mail may still submit
a response to the Q&V questionnaire
30 See Volume II of the Petition at 34–36 and
Exhibit 26 and Petition Supplement at 13–15 and
Exhibit 3.
31 Id.
32 See China AD Initiation Checklist.
33 See Volume I of the Petition at Exhibit I–6; see
also Petition Supplement at 1 and Exhibit 1.
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and can obtain a copy of the Q&V
questionnaire from Enforcement &
Compliance’s website. The Q&V
questionnaire response must be
submitted by the relevant Chinese
exporters/producers no later than 5:00
p.m. ET on October 23, 2018, which is
two weeks from the signature date of
this notice. All Q&V questionnaire
responses must be filed electronically
via ACCESS.
Separate Rates
In order to obtain separate-rate status
in an NME investigation, companies
must submit a separate-rate
application.34 The specific requirements
for submitting a separate-rate
application in this investigation are
outlined in detail in the application
itself, which is available on Commerce’s
website at https://enforcement.trade.gov/
nme/nme-sep-rate.html. The separaterate application will be due 30 days
after publication of this initiation
notice.35 Companies that submit a
separate-rate application and have been
selected as mandatory respondents will
be eligible for consideration for
separate-rate status only if they respond
to all parts of Commerce’s AD
questionnaire as mandatory
respondents. Commerce requires that
companies from China submit a
response to both the Q&V questionnaire
and the separate-rate application by the
respective deadlines in order to receive
consideration for separate-rate status.
Companies not filing a timely Q&V
questionnaire response will not receive
separate-rate consideration.
Use of Combination Rates
Commerce will calculate combination
rates for respondents that are eligible for
a separate rate in an NME investigation.
The Separate Rates and Combination
Rates Bulletin states:
{w}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that the Department will now assign in
its NME Investigation will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
34 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
35 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
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as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.36
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
government of China via ACCESS. To
the extent practicable, we will attempt
to provide a copy of the public version
of the Petition to each exporter named
in the Petition, as provided under 19
CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of Commerce’s
initiation, as required by section 732(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
mattresses from China are materially
injuring or threatening material injury to
a U.S. industry.37 A negative ITC
determination will result in the
investigation being terminated.38
Otherwise, the investigation will
proceed according to statutory and
regulatory time limits.
daltland on DSKBBV9HB2PROD with NOTICES
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). 19 CFR 351.301(b)
requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted 39 and, if the information is
submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
36 See Policy Bulletin 05.1 at 6 (emphasis in
original).
37 See section 733(a) of the Act.
38 Id.
39 See 19 CFR 351.301(b).
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19:46 Oct 16, 2018
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identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct.40 Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Interested
parties should review the regulations
prior to submitting factual information
in this investigation.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, we will inform parties in a
letter or memorandum of the deadline
(including a specified time) by which
extension requests must be filed to be
considered timely. An extension request
must be made in a separate, stand-alone
submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Parties should review Extension
of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting extension requests in this
investigation.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.41
Parties must use the certification
formats provided in 19 CFR
351.303(g).42 Commerce intends to
reject factual submissions if the
submitting party does not comply with
40 See
19 CFR 351.301(b)(2).
section 782(b) of the Act.
42 See also Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
41 See
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in this investigation
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: October 9, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
Scope of the Investigation
The scope of this investigation covers all
types of youth and adult mattresses. The term
‘‘mattress’’ denotes an assembly of materials
that at a minimum includes a ‘‘core,’’ which
provides the main support system of the
mattress, and may consist of innersprings,
foam, other resilient filling, or a combination
of these materials. Mattresses may also
contain (1) ‘‘upholstery,’’ the material
between the core and the top panel of the
ticking on a single-sided mattress, or between
the core and the top and bottom panel of the
ticking on a double-sided mattress; and/or (2)
‘‘ticking,’’ the outermost layer of fabric or
other material (e.g., vinyl) that encloses the
core and any upholstery, also known as a
cover.
The scope of this investigation is restricted
to only ‘‘adult mattresses’’ and ‘‘youth
mattresses.’’ ‘‘Adult mattresses’’ have a width
exceeding 35 inches, a length exceeding 72
inches, and a depth exceeding 3 inches on a
nominal basis. Such mattresses are frequently
described as ‘‘twin,’’ ‘‘extra-long twin,’’
‘‘full,’’ ‘‘queen,’’ ‘‘king,’’ or ‘‘California king’’
mattresses. ‘‘Youth mattresses’’ have a width
exceeding 27 inches, a length exceeding 51
inches, and a depth exceeding 1 inch (crib
mattresses have a depth of 6 inches or less
from edge to edge) on a nominal basis. Such
mattresses are typically described as ‘‘crib,’’
‘‘toddler,’’ or ‘‘youth’’ mattresses. All adult
and youth mattresses are included regardless
of actual size description.
The scope encompasses all types of
‘‘innerspring mattresses,’’ ‘‘non-innerspring
mattresses,’’ and ‘‘hybrid mattresses.’’
‘‘Innerspring mattresses’’ contain
innersprings, a series of metal springs joined
together in sizes that correspond to the
dimensions of mattresses. Mattresses that
contain innersprings are referred to as
‘‘innerspring mattresses’’ or ‘‘hybrid
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mattresses.’’ ‘‘Hybrid mattresses’’ contain two
or more support systems as the core, such as
layers of both memory foam and innerspring
units.
‘‘Non-innerspring mattresses’’ are those
that do not contain any innerspring units.
They are generally produced from foams
(e.g., polyurethane, memory (viscoelastic),
latex foam, gel-infused viscoelastic (gel
foam), thermobonded polyester,
polyethylene) or other resilient filling.
Mattresses covered by the scope of this
investigation may be imported
independently, as part of furniture or
furniture mechanisms (e.g., convertible sofa
bed mattresses, sofa bed mattresses imported
with sofa bed mechanisms, corner group
mattresses, day-bed mattresses, roll-away bed
mattresses, high risers, trundle bed
mattresses, crib mattresses), or as part of a set
in combination with a ‘‘mattress foundation.’’
‘‘Mattress foundations’’ are any base or
support for a mattress. Mattress foundations
are commonly referred to as ‘‘foundations,’’
‘‘boxsprings,’’ ‘‘platforms,’’ and/or ‘‘bases.’’
Bases can be static, foldable, or adjustable.
Only the mattress is covered by the scope if
imported as part of furniture, with furniture
mechanisms, or as part of a set in
combination with a mattress foundation.
Excluded from the scope of this
investigation are ‘‘futon’’ mattresses. A
‘‘futon’’ is a bi-fold frame made of wood,
metal, or plastic material, or any combination
thereof, that functions as both seating
furniture (such as a couch, love seat, or sofa)
and a bed. A ‘‘futon mattress’’ is a tufted
mattress, where the top covering is secured
to the bottom with thread that goes
completely through the mattress from the top
through to the bottom, and it does not
contain innersprings or foam. A futon
mattress is both the bed and seating surface
for the futon.
Also excluded from the scope are airbeds
(including inflatable mattresses) and
waterbeds, which consist of air- or liquidfilled bladders as the core or main support
system of the mattress.
Further, also excluded from the scope of
this investigation are any products covered
by the existing antidumping duty order on
uncovered innerspring units. See Uncovered
Innerspring Units from the People’s Republic
of China: Notice of Antidumping Duty Order,
74 FR 7661 (February 19, 2009).
The products subject to this investigation
are currently properly classifiable under
Harmonized Tariff Schedule for the United
States (HTSUS) subheadings: 9404.21.0010,
9404.21.0013, 9404.29.1005, 9404.29.1013,
9404.29.9085, and 9404.29.9087. Products
subject to this investigation may also enter
under HTSUS subheadings: 9404.21.0095,
9404.29.1095, 9404.29.9095, 9401.40.0000,
and 9401.90.5081. Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the merchandise subject to this
investigation is dispositive.
[FR Doc. 2018–22577 Filed 10–16–18; 8:45 am]
BILLING CODE 3510–DS–P
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52391
when evaluating the application. If the
requisite minimum number of
International Trade Administration
participants is not selected for a
particular mission by the recruitment
Announcement of July 2018 Approved deadline, the mission may be cancelled.
International Trade Administration
Each applicant must also certify that
Trade Missions
the products and services it seeks to
export through the mission are either
AGENCY: International Trade
produced in the United States, or, if not,
Administration, Department of
are marketed under the name of a U.S.
Commerce.
firm and have at least fifty-one percent
SUMMARY: The United States Department
U.S. content by value. In the case of a
of Commerce, International Trade
trade association or organization, the
Administration (ITA) is announcing two
applicant must certify that, for each firm
upcoming trade missions that will be
or service provider to be represented by
recruited, organized, and implemented
the association/organization, the
by ITA. These missions are:
products and/or services the
Trade Mission to India and Indo-Pacific represented firm or service provider
in Conjunction with Trade Winds
seeks to export are either produced in
Indo-Pacific—May 6–13, 2019.
the United States or, if not, marketed
Cybersecurity Business Development
under the name of a U.S. firm and have
Mission to Denmark, Norway, and
at least 51% U.S. content.
Sweden—September 23–27, 2019.
A trade association/organization
A summary of each mission is found
applicant must certify to the above for
below. Application information and
all of the companies it seeks to represent
more detailed mission information,
on the mission.
In addition, each applicant must:
including the commercial setting and
• Certify that the products and
sector information, can be found at the
trade mission website: https://export.gov/ services that it wishes to market through
the mission would be in compliance
trademissions.
For each mission, recruitment will be with U.S. export controls and
regulations;
conducted in an open and public
• Certify that it has identified any
manner, including publication in the
matter pending before any bureau or
Federal Register, posting on the
office in the Department of Commerce;
Commerce Department trade mission
• Certify that it has identified any
calendar (https://export.gov/
pending litigation (including any
trademissions) and other internet
administrative proceedings) to which it
websites, press releases to general and
is a party that involves the Department
trade media, direct mail, broadcast fax,
of Commerce; and
notices by industry trade associations
• Sign and submit an agreement that
and other multiplier groups, and
it and its affiliates (1) have not and will
publicity at industry meetings,
symposia, conferences, and trade shows. not engage in the bribery of foreign
officials in connection with a
DATES: Applicable October 17, 2018.
company’s/participant’s involvement in
FOR FURTHER INFORMATION CONTACT:
this mission, and (2) maintain and
Gemal Brangman, Trade Promotion
enforce a policy that prohibits the
Programs, Industry and Analysis,
bribery of foreign officials.
International Trade Administration,
In the case of a trade association/
U.S. Department of Commerce, 1401
organization, the applicant must certify
Constitution Avenue NW, Washington
that each firm or service provider to be
DC 20230; telephone (202) 482–3773.
represented by the association/
SUPPLEMENTARY INFORMATION:
organization can make the above
certifications.
The Following Conditions for
Participation Will Be Used for Each
The Following Selection Criteria Will
Mission
Be Used for Each Mission
Applicants must submit a completed
Targeted mission participants are U.S.
and signed mission application and
firms, services providers and trade
supplemental application materials,
associations/organizations providing or
including adequate information on their promoting U.S. products and services
products and/or services, primary
that have an interest in entering or
market objectives, and goals for
expanding their business in the
participation. If the Department of
mission’s destination country. The
Commerce receives an incomplete
following criteria will be evaluated in
application, the Department may either: selecting participants:
• Suitability of the applicant’s (or in
Reject the application, request
the case of a trade association/
additional information/clarification, or
take the lack of information into account organization, represented firm or service
DEPARTMENT OF COMMERCE
PO 00000
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]]>Agencies
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)]
[Notices]
[Pages 52386-52391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22577]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-092]
Mattresses From the People's Republic of China: Initiation of
Less-Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable October 9, 2018.
FOR FURTHER INFORMATION CONTACT: Stephen Bailey or Lilit Astvatsatrian
at (202) 482-0193 or (202) 482-6412, respectively; AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
The Petition
On September 18, 2018, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) Petition concerning imports of
mattresses from the People's Republic of China (China), filed in proper
form on behalf of Corsicana Mattress Company, Elite Comfort Solutions,
Future Foam Inc., FXI, Inc., Innocor, Inc., Kolcraft Enterprises Inc.,
Leggett & Platt, Incorporated, Serta Simmons Bedding, LLC, and Tempur
Sealy International, Inc. (the petitioners).\1\
---------------------------------------------------------------------------
\1\ See the petitioners' Letter, ``Mattresses from the People's
Republic of China: Antidumping Duty Petition,'' dated September 18,
2018 (the Petition).
---------------------------------------------------------------------------
On September 25, 2018, October 2, and October 5, 2018, the
petitioners filed responses to a supplemental questionnaire issued by
Commerce and a request for revisions to their surrogate financial ratio
calculation and scope, respectively.\2\
---------------------------------------------------------------------------
\2\ See Commerce's Letter, ``Petition for the Imposition of
Antidumping Duties on Imports of Mattresses from the People's
Republic of China: Supplemental Questions,'' dated September 21,
2018; the petitioner's letter, ``Mattresses from the People's
Republic of China: Response to the Department of Commerce's
September 21, 2018 Supplemental Questions,'' dated September 25,
2018 (Petition Supplement); Memorandum, ``Phone Conversation
Regarding Surrogate Financial Ratio Calculations,'' dated October 2,
2018; the petitioner's letter, ``Mattresses from the People's
Republic of China: Request for Revised Normal Value and Dumping
Margin Calculations,'' dated October 2, 2018 (Second Supplement) and
the petitioner's letter, ``Mattresses from the People's Republic of
China: Modification to Scope Language,'' dated October 5, 2018
(Scope Supplement).
---------------------------------------------------------------------------
[[Page 52387]]
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that imports of mattresses
from China are being, or are likely to be, sold in the United States at
less than fair value within the meaning of section 731 of the Act, and
that such imports are materially injuring, or threatening material
injury to, the domestic industry producing mattresses in the United
States. Consistent with section 732(b)(1) of the Act, the Petition is
accompanied by information reasonably available to the petitioners
supporting their allegation.
Commerce finds that the petitioners filed the Petition on behalf of
the domestic industry because the petitioners are interested parties as
defined in section 771(9)(C) of the Act. Commerce also finds that the
petitioners demonstrated sufficient industry support with respect to
the initiation of the investigation that the petitioners are
requesting.\3\
---------------------------------------------------------------------------
\3\ See the ``Determination of Industry Support for the
Petition'' section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because China is a non-market economy (NME) country, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) is January 1,
2018, through June 30, 2018.
Scope of the Investigation
The product covered by this investigation is mattresses from China.
For a full description of the scope of this investigation, see the
Appendix to this notice.
Scope Comments
During our review of the Petition, we contacted the petitioners
regarding the proposed scope to ensure that the scope language in the
Petition is an accurate reflection of the products for which the
domestic industry is seeking relief.\4\ As a result, the scope of the
Petition was modified to clarify the description of merchandise covered
by the Petition. The description of the merchandise covered by this
investigation, in the Appendix to this notice, reflects these
clarifications.
---------------------------------------------------------------------------
\4\ See Petition Supplement at 3-5 and Scope Supplement at 1-3.
---------------------------------------------------------------------------
As discussed in the preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\5\ Commerce will consider all scope comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\6\ all
such factual information should be limited to public information. To
facilitate preparation of the AD questionnaire, Commerce requests that
all interested parties submit scope comments by 5:00 p.m. Eastern Time
(ET) on October 29, 2018, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on November 8, 2018, which
is 10 calendar days from the initial comments deadline.\7\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\7\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information considered by
parties to be relevant to the scope of the investigation be submitted
during this period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party may contact Commerce and
request permission to submit the additional information. All such
submissions must be filed on the record of the AD investigation.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\8\ An electronically
filed document must be received successfully in its entirety by the
time and date that it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
---------------------------------------------------------------------------
\8\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------
Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of mattresses to be
reported in response to Commerce's AD questionnaire. This information
will be used to identify the key physical characteristics of the
merchandise under consideration in order to report the relevant factors
of production (FOP) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaire, all
product characteristics comments must be filed by 5:00 p.m. ET on
October 29, 2018, which is 20 calendar days from the signature date of
this notice. Any rebuttal comments must be filed by 5:00 p.m. ET on
November 8, 2018. All comments and submissions to Commerce must be
filed electronically on the record of this investigation using ACCESS,
as explained above.\9\
---------------------------------------------------------------------------
\9\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) if there is a large number of producers in the industry, determine
industry support using a statistically valid sampling method to poll
the ``industry.''
[[Page 52388]]
Section 771(4)(A) of the Act defines the ``industry'' as the
producers, as a whole, of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\10\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\11\
---------------------------------------------------------------------------
\10\ See section 771(10) of the Act.
\11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petition).
With regard to the domestic like product, the petitioners do not
offer a definition of the domestic like product distinct from the scope
of the Petition. Based on our analysis of the information submitted on
the record, we have determined that mattresses, as defined in the
scope, constitute a single domestic like product, and we have analyzed
industry support in terms of that domestic like product.\12\
---------------------------------------------------------------------------
\12\ For a discussion of the domestic like product analysis, see
Antidumping Duty Investigation Initiation Checklist: Mattresses from
the People's Republic of China (China AD Initiation Checklist) at
Attachment II, Analysis of Industry Support for the Antidumping Duty
Petition Covering Mattresses from the People's Republic of China
(Attachment II). This checklist is dated concurrently with, and
hereby adopted by, this notice and is on file electronically via
ACCESS. Access to documents filed via ACCESS is also available in
the Central Records Unit, Room B8024 of the main Department of
Commerce building.
---------------------------------------------------------------------------
In determining whether the petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the Appendix to
this notice. To establish industry support, the petitioners provided
their own shipments of the domestic like product in 2017, and compared
this to the estimated total shipments of the domestic like product for
the entire domestic industry.\13\ Because total industry production
data for the domestic like product for 2017 are not reasonably
available to the petitioners, and the petitioners have established that
shipments are a reasonable proxy for production data,\14\ we have
relied on the data the petitioners provided for purposes of measuring
industry support.\15\
---------------------------------------------------------------------------
\13\ See Petition Supplement at 8-10 and Exhibits 3 through 6.
\14\ See Volume I of the Petition at 5.
\15\ Id. at 5; see also Volume II of the Petition at Exhibits 3
and 16; see also Petition Supplement at 8-10 and Exhibits 3 through
6. For further discussion, see China AD Initiation Checklist at
Attachment II.
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the Petition
Supplement, and other information readily available to Commerce
indicates that the petitioners have established industry support for
the Petition.\16\ First, the petitioners established support from
domestic producers (or workers) accounting for more than 50 percent of
the total production of the domestic like product and, as such,
Commerce is not required to take further action in order to evaluate
industry support (e.g., polling).\17\ Second, the domestic producers
(or workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(i) of the Act because the domestic producers (or
workers) who support the Petition account for at least 25 percent of
the total production of the domestic like product.\18\ Finally, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petition account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition.\19\ Accordingly, Commerce determines that
the Petition was filed on behalf of the domestic industry within the
meaning of section 732(b)(1) of the Act.
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\16\ See China AD Initiation Checklist at Attachment II.
\17\ See section 732(c)(4)(D) of the Act; see also China AD
Initiation Checklist at Attachment II.
\18\ See China AD Initiation Checklist at Attachment II.
\19\ Id.
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Commerce finds that the petitioners filed the Petition on behalf of
the domestic industry because they are interested parties as defined in
section 771(9)(C) of the Act, and they have demonstrated sufficient
industry support with respect to the investigation that they are
requesting that Commerce initiate.\20\
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\20\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioners allege that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (NV). In addition, the
petitioners allege that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\21\
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\21\ See Volume I of the Petition at 16; see also Volume II of
the Petition at Exhibit 10.
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The petitioners contend that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports,
reduced market share, underselling and price depression or suppression,
lost sales and revenues, and declines in the domestic industry's
production, U.S. shipments, production-related workers, and financial
performance.\22\ We have assessed the allegations and supporting
evidence regarding material injury, threat of material injury, and
causation, and we have determined that these allegations are properly
supported by adequate evidence, and meet the statutory requirements for
initiation.\23\
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\22\ See Volume I of the Petition at 1-3, 13, 16-31, see also
Volume II of the Petition at Exhibits 3 and 10 through 20.
\23\ See China AD Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping Duty Petition Covering Mattresses from
the People's Republic of China.
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which Commerce based its decision to initiate this
investigation. The sources of U.S. prices and data relating to NV are
discussed in greater detail in the China AD Initiation Checklist.
Export Price
The petitioners based export price (EP) on an actual invoice price
for mattresses produced in, and exported from, China and sold or
offered for sale in the United States, and on the average unit value
(AUV) of publicly available
[[Page 52389]]
import data.\24\ No adjustments were made to the U.S. prices before
comparing them to NV.\25\
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\24\ See China AD Initiation Checklist.
\25\ Id.
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Normal Value
Commerce considers China to be an NME country.\26\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we are continuing to treat China as an NME country
for purposes of initiating this investigation. Accordingly, NV in China
is appropriately based on FOPs valued in a surrogate market economy
country, in accordance with section 773(c) of the Act.\27\
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\26\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and
accompanying decision memorandum, titled China's Status as a Non-
Market Economy (unchanged in Certain Aluminum Foil from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, 83 FR 9282 (March 5, 2018)).
\27\ See China AD Initiation Checklist.
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The petitioners claim that Mexico is an appropriate surrogate
country for China because it is a market economy country that is at a
level of economic development comparable to that of China and it is a
significant producer of comparable merchandise.\28\ The petitioners
provided publicly available information from Mexico, including
financial statements of a Mexican producer of mattresses, to value all
FOPs.\29\ Based on the information provided by the petitioners, we
determine that it is appropriate to use Mexico as the primary surrogate
country for initiation purposes.
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\28\ See Volume II of the Petition at 32-34 and Exhibits 24.
\29\ Id. at 34-36 and Exhibits 26-30.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
FOPs
The petitioners asserted that information regarding the types and
volumes of inputs that are consumed by Chinese companies in producing
mattresses is not reasonably available to them; thus, the petitioners
used the consumption rates of a U.S. mattress producer to estimate the
Chinese manufacturers' FOPs.\30\ The petitioners valued the estimated
FOPs using surrogate values from Mexico, as noted above.\31\
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\30\ See Volume II of the Petition at 34-36 and Exhibit 26 and
Petition Supplement at 13-15 and Exhibit 3.
\31\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioners, there is reason to
believe that imports of mattresses from China are being, or are likely
to be, sold in the United States at less than fair value. Based on
comparisons of EP to NV in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for mattresses from China are 258.74
and 1,731.75 percent.\32\
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\32\ See China AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigation
Based upon the examination of the Petition, we find that the
Petition meets the requirements of section 732 of the Act. Therefore,
we are initiating an AD investigation to determine whether imports of
mattresses from China are being, or are likely to be, sold in the
United States at less than fair value. In accordance with section
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we
will make our preliminary determination no later than 140 days after
the date of this initiation.
Respondent Selection
The petitioners named 55 producers/exporters as accounting for the
majority of exports of mattresses to the United States from China.\33\
In accordance with our standard practice for respondent selection in AD
cases involving NME countries, we intend to issue quantity and value
(Q&V) questionnaires to producers/exporters of merchandise subject to
this investigation. In the event Commerce determines that it cannot
individually examine each producer/exporter, where appropriate,
Commerce intends to select mandatory respondents based on the responses
received to its Q&V questionnaire. Commerce will request Q&V
information from known exporters and producers identified with complete
contact information in the Petition. In addition, Commerce will post
the Q&V questionnaire along with filing instructions on Enforcement and
Compliance's website at https://www.trade.gov/enforcement/news.asp.
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\33\ See Volume I of the Petition at Exhibit I-6; see also
Petition Supplement at 1 and Exhibit 1.
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Producers/exporters of mattresses from China that do not receive
Q&V questionnaires by mail may still submit a response to the Q&V
questionnaire and can obtain a copy of the Q&V questionnaire from
Enforcement & Compliance's website. The Q&V questionnaire response must
be submitted by the relevant Chinese exporters/producers no later than
5:00 p.m. ET on October 23, 2018, which is two weeks from the signature
date of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
companies must submit a separate-rate application.\34\ The specific
requirements for submitting a separate-rate application in this
investigation are outlined in detail in the application itself, which
is available on Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 days
after publication of this initiation notice.\35\ Companies that submit
a separate-rate application and have been selected as mandatory
respondents will be eligible for consideration for separate-rate status
only if they respond to all parts of Commerce's AD questionnaire as
mandatory respondents. Commerce requires that companies from China
submit a response to both the Q&V questionnaire and the separate-rate
application by the respective deadlines in order to receive
consideration for separate-rate status. Companies not filing a timely
Q&V questionnaire response will not receive separate-rate
consideration.
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\34\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\35\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for respondents that are
eligible for a separate rate in an NME investigation. The Separate
Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well
[[Page 52390]]
as the pool of non-investigated firms receiving the weighted-average
of the individually calculated rates. This practice is referred to
as the application of ``combination rates'' because such rates apply
to specific combinations of exporters and one or more producers. The
cash-deposit rate assigned to an exporter will apply only to
merchandise both exported by the firm in question and produced by a
firm that supplied the exporter during the period of
investigation.\36\
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\36\ See Policy Bulletin 05.1 at 6 (emphasis in original).
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the government of China via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petition to each exporter named in the Petition, as provided under
19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of Commerce's initiation, as required by
section 732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of mattresses from China are materially
injuring or threatening material injury to a U.S. industry.\37\ A
negative ITC determination will result in the investigation being
terminated.\38\ Otherwise, the investigation will proceed according to
statutory and regulatory time limits.
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\37\ See section 733(a) of the Act.
\38\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). 19 CFR 351.301(b) requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
\39\ and, if the information is submitted to rebut, clarify, or correct
factual information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\40\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Interested parties should review the
regulations prior to submitting factual information in this
investigation.
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\39\ See 19 CFR 351.301(b).
\40\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests
in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\41\
Parties must use the certification formats provided in 19 CFR
351.303(g).\42\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\41\ See section 782(b) of the Act.
\42\ See also Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in this investigation should ensure that
they meet the requirements of these procedures (e.g., the filing of
letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: October 9, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The scope of this investigation covers all types of youth and
adult mattresses. The term ``mattress'' denotes an assembly of
materials that at a minimum includes a ``core,'' which provides the
main support system of the mattress, and may consist of
innersprings, foam, other resilient filling, or a combination of
these materials. Mattresses may also contain (1) ``upholstery,'' the
material between the core and the top panel of the ticking on a
single-sided mattress, or between the core and the top and bottom
panel of the ticking on a double-sided mattress; and/or (2)
``ticking,'' the outermost layer of fabric or other material (e.g.,
vinyl) that encloses the core and any upholstery, also known as a
cover.
The scope of this investigation is restricted to only ``adult
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' have a
width exceeding 35 inches, a length exceeding 72 inches, and a depth
exceeding 3 inches on a nominal basis. Such mattresses are
frequently described as ``twin,'' ``extra-long twin,'' ``full,''
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth
mattresses'' have a width exceeding 27 inches, a length exceeding 51
inches, and a depth exceeding 1 inch (crib mattresses have a depth
of 6 inches or less from edge to edge) on a nominal basis. Such
mattresses are typically described as ``crib,'' ``toddler,'' or
``youth'' mattresses. All adult and youth mattresses are included
regardless of actual size description.
The scope encompasses all types of ``innerspring mattresses,''
``non-innerspring mattresses,'' and ``hybrid mattresses.''
``Innerspring mattresses'' contain innersprings, a series of metal
springs joined together in sizes that correspond to the dimensions
of mattresses. Mattresses that contain innersprings are referred to
as ``innerspring mattresses'' or ``hybrid
[[Page 52391]]
mattresses.'' ``Hybrid mattresses'' contain two or more support
systems as the core, such as layers of both memory foam and
innerspring units.
``Non-innerspring mattresses'' are those that do not contain any
innerspring units. They are generally produced from foams (e.g.,
polyurethane, memory (viscoelastic), latex foam, gel-infused
viscoelastic (gel foam), thermobonded polyester, polyethylene) or
other resilient filling.
Mattresses covered by the scope of this investigation may be
imported independently, as part of furniture or furniture mechanisms
(e.g., convertible sofa bed mattresses, sofa bed mattresses imported
with sofa bed mechanisms, corner group mattresses, day-bed
mattresses, roll-away bed mattresses, high risers, trundle bed
mattresses, crib mattresses), or as part of a set in combination
with a ``mattress foundation.'' ``Mattress foundations'' are any
base or support for a mattress. Mattress foundations are commonly
referred to as ``foundations,'' ``boxsprings,'' ``platforms,'' and/
or ``bases.'' Bases can be static, foldable, or adjustable. Only the
mattress is covered by the scope if imported as part of furniture,
with furniture mechanisms, or as part of a set in combination with a
mattress foundation.
Excluded from the scope of this investigation are ``futon''
mattresses. A ``futon'' is a bi-fold frame made of wood, metal, or
plastic material, or any combination thereof, that functions as both
seating furniture (such as a couch, love seat, or sofa) and a bed. A
``futon mattress'' is a tufted mattress, where the top covering is
secured to the bottom with thread that goes completely through the
mattress from the top through to the bottom, and it does not contain
innersprings or foam. A futon mattress is both the bed and seating
surface for the futon.
Also excluded from the scope are airbeds (including inflatable
mattresses) and waterbeds, which consist of air- or liquid-filled
bladders as the core or main support system of the mattress.
Further, also excluded from the scope of this investigation are
any products covered by the existing antidumping duty order on
uncovered innerspring units. See Uncovered Innerspring Units from
the People's Republic of China: Notice of Antidumping Duty Order, 74
FR 7661 (February 19, 2009).
The products subject to this investigation are currently
properly classifiable under Harmonized Tariff Schedule for the
United States (HTSUS) subheadings: 9404.21.0010, 9404.21.0013,
9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products
subject to this investigation may also enter under HTSUS
subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000,
and 9401.90.5081. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
merchandise subject to this investigation is dispositive.
[FR Doc. 2018-22577 Filed 10-16-18; 8:45 am]
BILLING CODE 3510-DS-P
