Mattresses From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 52386-52391 [2018-22577]

Download as PDF 52386 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 daltland on DSKBBV9HB2PROD with NOTICES SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 (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 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 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 E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 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 daltland on DSKBBV9HB2PROD with NOTICES 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. VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 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. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 52387 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 E:\FR\FM\17OCN1.SGM 19 CFR 351.303(b). 17OCN1 52388 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 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. daltland on DSKBBV9HB2PROD with NOTICES 11 See VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 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. PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 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. E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 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. daltland on DSKBBV9HB2PROD with NOTICES 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. VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 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. PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 52389 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. E:\FR\FM\17OCN1.SGM 17OCN1 52390 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 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). VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 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 E:\FR\FM\17OCN1.SGM 17OCN1 daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 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 VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 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 Frm 00016 Fmt 4703 Sfmt 4703 E:\FR\FM\17OCN1.SGM 17OCN1

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]


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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\
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    \1\ See the petitioners' Letter, ``Mattresses from the People's 
Republic of China: Antidumping Duty Petition,'' dated September 18, 
2018 (the Petition).
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    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\
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    \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).

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[[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\
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    \3\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
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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.
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    \4\ See Petition Supplement at 3-5 and Scope Supplement at 1-3.
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    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\
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    \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).
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    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.
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    \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.
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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).
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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\
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    \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)).
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    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.
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    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\
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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.
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    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