Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 39798-39801 [2019-17198]

Download as PDF 39798 Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Notices full description of the methodology underlying our conclusions, see the Preliminary Decision Memorandum. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov and in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly on the internet at https:// enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content. A list of topics discussed in the Preliminary Decision Memorandum is provided in the Appendix to this notice. Preliminary Results of the Review We preliminarily determine the following net countervailable subsidy rate for the mandatory respondent, Borusan Mannesmann Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret T.A. S ¸ ., Borusan Mannesmann Boru Yatirim Holding A.S ¸ ., and Borusan Holding A.S ¸ ., (collectively, Borusan) 9 for the period January 1, 2017, through December 31, 2017: Net subsidy rate Ad Valorem Company Borusan Mannesmann Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret T.A. S ¸ ., Borusan Mannesmann Boru Yatirim Holding A.S ¸ ., and Borusan Holding A.S¸. (collectively, Borusan). Assessment Rates Consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), upon issuance of the final results, Commerce will determine, and U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries covered by this review. We intend to issue instructions to CBP 15 days after publication of the final results of this review. Cash Deposit Requirements In accordance with section 751(a)(2)(C) of the Act, Commerce also intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amount shown above for Borusan, with regard to shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review. For all non-reviewed firms, we will instruct CBP to continue to collect cash deposits at the most recent company specific or all-others rate applicable to the company. These cash deposit requirements, when imposed, shall remain in effect until further notice. jspears on DSK3GMQ082PROD with NOTICES Disclosure and Public Comment We will disclose to parties in this review the calculations performed in reaching the preliminary results within five days of publication of these preliminary results.10 Interested parties may submit written argument (case briefs) on the preliminary results no later than 30 days from the date of publication of this Federal Register notice, and rebuttal argument (rebuttal of the Act regarding benefit; and, section 771(5A) of the Act regarding specificity. 9 Commerce has determined that Borusan Mannesmann Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret T.A. S ¸ ., Borusan Mannesmann Boru VerDate Sep<11>2014 17:16 Aug 09, 2019 Jkt 247001 1.00 percent. briefs) within five days after the time limit for filing case briefs.11 Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be limited to issues raised in the case briefs. Parties who submit arguments are requested to submit with the argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities.12 All briefs must be filed electronically using ACCESS. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, filed electronically via ACCESS by 5 p.m. Eastern Time within 30 days after the date of publication of this notice.13 Hearing requests should contain: (1) The party’s name, address, and telephone number; (2) the number of participants; and (3) a list of the issues to be discussed. Issues addressed at the hearing will be limited to those raised in the briefs. If a request for a hearing is made, parties will be notified of the date and time for the hearing to be held at the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.14 Commerce intends to issue the final results of this administrative review, including the results of our analysis of the issues raised by the parties in their comments, no later than 120 days after the date of publication of this notice, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h), unless this deadline is extended. These preliminary results and notice are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4). Dated: August 5, 2019. Christian Marsh, Deputy Assistant Secretary for Enforcement and Compliance. Yatirim Holding A.S ¸ ., and Borusan Holding A.S ¸ . are cross-owned. See Preliminary Decision Memorandum. 10 See 19 CFR 351.224(b). 11 See 19 CFR 351.309(c)(1)(ii); 351.309(d)(1); and 19 CFR 351.303 (for general filing requirements). 12 See 19 CFR 351.309(c)(2) and (d)(2). 13 See 19 CFR 351.310(c). 14 See 19 CFR 351.310(d). PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 Appendix List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Subsidies Valuation Information V. Analysis of Programs VI. Recommendation [FR Doc. 2019–17097 Filed 8–9–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–107] Wooden Cabinets and Vanities and Components Thereof From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of wooden cabinets and vanities and components thereof (wooden cabinets and vanities) from the People’s Republic of China (China). The period of investigation is January 1, 2018 through December 31, 2018. Interested parties AGENCY: E:\FR\FM\12AUN1.SGM 12AUN1 Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Notices are invited to comment on this preliminary determination. DATES: Applicable August 12, 2019. FOR FURTHER INFORMATION CONTACT: Benito Ballesteros (Ancientree), Christian Llinas (Dalian Meisen), or Justin Neuman (Rizhao Foremost), AD/ CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–7425, (202) 482–4877, and (202) 482–0486, respectively. SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 2, 2019.1 On May 17, 2019, Commerce postponed the preliminary determination of this investigation to August 5, 2019.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Preliminary Decision Memorandum are identical in content. jspears on DSK3GMQ082PROD with NOTICES Scope of the Investigation The products covered by this investigation are wooden cabinets and 1 See Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Initiation of Countervailing Duty Investigation, 84 FR 12581 (April 2, 2019) (Initiation Notice). 2 See Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Postponement of Preliminary Determination, 84 FR 22437 (May 17, 2019). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). VerDate Sep<11>2014 17:16 Aug 09, 2019 Jkt 247001 vanities from China. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. Commerce intends to issue its preliminary decision regarding comments concerning the scope of the AD and CVD investigations in the preliminary determination of the companion AD investigation. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.6 Commerce notes that, in making these findings, it relied, in part, on facts available and, because it finds that one or more respondents did not act to the best of their ability to respond to Commerce’s requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.7 For further information, see ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty (CVD) determination in this investigation with the final determination in the companion antidumping duty (AD) investigation of wooden cabinets and vanities from China based on a request made by the petitioner.8 Consequently, the final CVD determination will be 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice. 6 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 7 See sections 776(a) and (b) of the Act. 8 See Letter from the petitioner, ‘‘Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Request to Align Countervailing Duty Investigation Final Determination with Antidumping Duty Investigation Final Determination,’’ dated July 19, 2019. PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 39799 issued on the same date as the final AD determination, which is currently scheduled to be issued no later than December 16, 2019, unless postponed. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act. In this investigation, Commerce calculated estimated countervailable subsidy rates individually for The Ancientree Cabinet Company Co., Ltd. (Ancientree), Dalian Meisen Woodworking Co., Ltd. (Dalian Meisen), and Rizhao Foremost Woodwork Manufacturing Company Ltd. (Rizhao Foremost), that are not zero, de minimis, or based entirely on facts otherwise available. As calculating the all-others rate using a weighted-average of the estimated subsidy rates individually calculated for the examined respondents would reveal each company’s business proprietary sales data, we are using a simple average of the calculated subsidy rates to establish the all-others rate. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Company The Ancientree Cabinet Co., Ltd 9 ........ Dalian Meisen Woodworking Co., Ltd 10 Rizhao Foremost Woodwork Manufacturing Company Ltd 11 ....................... Henan AiDiJia Furniture Co., Ltd .......... Deway International Trade Co., Ltd ...... All Others .............................................. Subsidy rate (percent) 10.97 16.49 21.78 229.24 229.24 16.41 9 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Ancientree: Jiangsu Hongjia Wood Co., Ltd. (Jiangsu Hongjia) and Shanghai Hongjia Wood Co., Ltd. (Shanghai Hongjia). 10 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Dalian Meisen: Dalian Hechang Technology Development Co., Ltd. (Dalian Hechang). 11 As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Rizhao Foremost: Foremost Worldwide Co., Ltd., and Rizhao Foremost Landbridge Wood Industries Co., Ltd. E:\FR\FM\12AUN1.SGM 12AUN1 39800 Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Notices Suspension of Liquidation In accordance with section 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice in accordance with 19 CFR 351.224(b). jspears on DSK3GMQ082PROD with NOTICES Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.12 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at the U.S. 12 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). VerDate Sep<11>2014 17:16 Aug 09, 2019 Jkt 247001 Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination, whether imports of the subject merchandise are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). Dated: August 5, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I—Scope of the Investigation The merchandise subject to this investigation consists of wooden cabinets and vanities that are for permanent installation (including floor mounted, wall mounted, ceiling hung or by attachment of plumbing), and wooden components thereof. Wooden cabinets and vanities and wooden components are made substantially of wood products, including solid wood and engineered wood products (including those made from wood particles, fibers, or other wooden materials such as plywood, strand board, block board, particle board, or fiberboard), or bamboo. Wooden cabinets and vanities consist of a cabinet box (which typically includes a top, bottom, sides, back, base blockers, ends/end panels, stretcher rails, toe kicks, and/or shelves) and may or may not include a frame, door, drawers and/ or shelves. Subject merchandise includes wooden cabinets and vanities with or without wood veneers, wood, paper or other overlays, or laminates, with or without nonwood components or trim such as metal, marble, glass, plastic, or other resins, whether or not surface finished or unfinished, and whether or not completed. Wooden cabinets and vanities are covered by the investigation whether or not they are imported attached to, or in conjunction with, faucets, metal plumbing, sinks and/or sink bowls, or countertops. If wooden cabinets or vanities are imported attached to, or in conjunction with, such merchandise, only the wooden cabinet or vanity is covered by the scope. Subject merchandise includes the following wooden component parts of PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 cabinets and vanities: (1) Wooden cabinet and vanity frames (2) wooden cabinet and vanity boxes (which typically include a top, bottom, sides, back, base blockers, ends/end panels, stretcher rails, toe kicks, and/or shelves), (3) wooden cabinet or vanity doors, (4) wooden cabinet or vanity drawers and drawer components (which typically include sides, backs, bottoms, and faces), (5) back panels and end panels, (6) and desks, shelves, and tables that are attached to or incorporated in the subject merchandise. Subject merchandise includes all unassembled, assembled and/or ‘‘ready to assemble’’ (RTA) wooden cabinets and vanities, also commonly known as ‘‘flat packs,’’ except to the extent such merchandise is already covered by the scope of antidumping and countervailing duty orders on Hardwood Plywood from the People’s Republic of China. See Certain Hardwood Plywood Products from the People’s Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain Hardwood Plywood Products from the People’s Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 2018). RTA wooden cabinets and vanities are defined as cabinets or vanities packaged so that at the time of importation they may include: (1) Wooden components required to assemble a cabinet or vanity (including drawer faces and doors); and (2) parts (e.g., screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a cabinet or vanity. RTAs may enter the United States in one or in multiple packages. Subject merchandise also includes wooden cabinets and vanities and in-scope components that have been further processed in a third country, including but not limited to one or more of the following: Trimming, cutting, notching, punching, drilling, painting, staining, finishing, assembly, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product. Excluded from the scope of this investigation, if entered separate from a wooden cabinet or vanity are: (1) Aftermarket accessory items which may be added to or installed into an interior of a cabinet and which are not considered a structural or core component of a wooden cabinet or vanity. Aftermarket accessory items may be made of wood, metal, plastic, composite material, or a combination thereof that can be inserted into a cabinet and which are utilized in the function of organization/ accessibility on the interior of a cabinet; and include: • Inserts or dividers which are placed into drawer boxes with the purpose of organizing or dividing the internal portion of the drawer into multiple areas for the purpose of containing smaller items such as cutlery, utensils, bathroom essentials, etc. • Round or oblong inserts that rotate internally in a cabinet for the purpose of accessibility to foodstuffs, dishware, general supplies, etc. (2) Solid wooden accessories including corbels and rosettes, which serve the primary purpose of decoration and personalization. E:\FR\FM\12AUN1.SGM 12AUN1 Federal Register / Vol. 84, No. 155 / Monday, August 12, 2019 / Notices (3) Non-wooden cabinet hardware components including metal hinges, brackets, catches, locks, drawer slides, fasteners (nails, screws, tacks, staples), handles, and knobs. Also excluded from the scope of this investigation are: (1) All products covered by the scope of the antidumping duty order on Wooden Bedroom Furniture from the People’s Republic of China. See Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture from the People’s Republic of China, 70 FR 329 (January 4, 2005). (2) All products covered by the scope of the antidumping and countervailing duty orders on Hardwood Plywood from the People’s Republic of China. See Certain Hardwood Plywood Products from the People’s Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain Hardwood Plywood Products from the People’s Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 2018). Imports of subject merchandise are classified under Harmonized Tariff Schedule of the United States (HTSUS) statistical numbers 9403.40.9060 and 9403.60.8081. The subject component parts of wooden cabinets and vanities may be entered into the United States under HTSUS statistical number 9403.90.7080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive. Appendix II—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Alignment VI. Injury Test VII. Diversification of China’s Economy VIII. Use of Facts Otherwise Available and Adverse Inferences IX. Subsidies Valuation X. Benchmarks and Interest Rates XI. Analysis of Programs XII. ITC Notification XIII. Recommendation [FR Doc. 2019–17198 Filed 8–9–19; 8:45 am] jspears on DSK3GMQ082PROD with NOTICES BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–580–903, A–201–852, A–523–813] Notice of Extension of the Deadline for Determining the Adequacy of the Antidumping Duty Petitions: Polyethylene Terephthalate Sheet From the Republic of Korea, Mexico, and the Sultanate of Oman Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable July 29, 2019. FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit at (202) 482–4031 (Mexico and the Sultanate of Oman (Oman)); Charles Doss at (202) 482–4474 (the Republic of Korea (Korea)); AD/ CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: Extension of Initiation of Investigations The Petitions On July 9, 2019, the Department of Commerce (Commerce) received antidumping duty petitions filed by Advanced Extrusion Inc.; Ex-Tech Plastics, Inc.; and Multi-Plastics Extrusions, Inc. (collectively, the petitioners) on behalf of the domestic industry producing polyethylene terephthalate sheet.1 Determination of Industry Support for the Petitions Section 732(b)(1) of the Tariff Act of 1930, as amended (the Act), requires that a petition be filed by or on behalf of the domestic industry. To determine that the petition has been filed by or on behalf of the industry, section 732(c)(4)(A) of the Act requires that 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 1 See Petitioners’ Letter, ‘‘Polyethylene Terephthalate Sheet from the Republic of Korea, Mexico, and the Sultanate of Oman—Petitions for the Imposition of Antidumping Duties,’’ dated July 9, 2019 (the Petitions). VerDate Sep<11>2014 17:16 Aug 09, 2019 Jkt 247001 PO 00000 Frm 00006 Fmt 4703 Sfmt 9990 39801 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, determine industry support using a statistically valid sampling method to poll the industry. Extension of Time Section 732(c)(1)(A) of the Act provides that within 20 days of the filing of an antidumping duty petition, Commerce will determine, inter alia, whether the petition has been filed by or on behalf of the U.S. industry producing the domestic like product. Section 732(c)(1)(B) of the Act provides that the deadline for the initiation determination, in exceptional circumstances, may be extended by 20 days in any case in which Commerce must ‘‘poll or otherwise determine support for the petition by the industry.’’ Because it is not clear from the Petitions whether the industry support criteria have been met, Commerce has determined it should extend the time for initiating investigations in order to further examine the issue of industry support. Commerce will need additional time to gather and analyze additional information regarding industry support. Therefore, it is necessary to extend the deadline for determining the adequacy of the Petitions for a period not to exceed 40 days from the filing of the Petitions. Because the extended initiation determination deadline of August 18, 2019, falls on a Sunday, a non-business day, Commerce’s initiation determination will now be due no later than August 19, 2019, the next business day.2 International Trade Commission Notification Commerce will contact the International Trade Commission (ITC) and will make this extension notice available to the ITC. Dated: July 29, 2019. James Maeder, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2019–17098 Filed 8–9–19; 8:45 am] BILLING CODE 3510–DS–P 2 See Notice of Clarification: Application of ‘‘Next Business Day’’ Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005). E:\FR\FM\12AUN1.SGM 12AUN1

Agencies

[Federal Register Volume 84, Number 155 (Monday, August 12, 2019)]
[Notices]
[Pages 39798-39801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17198]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-107]


Wooden Cabinets and Vanities and Components Thereof From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, and Alignment of Final Determination With Final 
Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of wooden cabinets and vanities and components thereof 
(wooden cabinets and vanities) from the People's Republic of China 
(China). The period of investigation is January 1, 2018 through 
December 31, 2018. Interested parties

[[Page 39799]]

are invited to comment on this preliminary determination.

DATES: Applicable August 12, 2019.

FOR FURTHER INFORMATION CONTACT: Benito Ballesteros (Ancientree), 
Christian Llinas (Dalian Meisen), or Justin Neuman (Rizhao Foremost), 
AD/CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-7425, (202) 482-
4877, and (202) 482-0486, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on April 2, 
2019.\1\ On May 17, 2019, Commerce postponed the preliminary 
determination of this investigation to August 5, 2019.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov, and is available to all parties in the Central 
Records Unit, Room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at https://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Preliminary Decision Memorandum 
are identical in content.
---------------------------------------------------------------------------

    \1\ See Wooden Cabinets and Vanities and Components Thereof from 
the People's Republic of China: Initiation of Countervailing Duty 
Investigation, 84 FR 12581 (April 2, 2019) (Initiation Notice).
    \2\ See Countervailing Duty Investigation of Wooden Cabinets and 
Vanities and Components Thereof from the People's Republic of China: 
Postponement of Preliminary Determination, 84 FR 22437 (May 17, 
2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Wooden 
Cabinets and Vanities and Components Thereof from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are wooden cabinets and 
vanities from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce intends to issue its preliminary 
decision regarding comments concerning the scope of the AD and CVD 
investigations in the preliminary determination of the companion AD 
investigation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of wooden cabinets and vanities from China 
based on a request made by the petitioner.\8\ Consequently, the final 
CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
December 16, 2019, unless postponed.
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    \8\ See Letter from the petitioner, ``Wooden Cabinets and 
Vanities and Components Thereof from the People's Republic of China: 
Request to Align Countervailing Duty Investigation Final 
Determination with Antidumping Duty Investigation Final 
Determination,'' dated July 19, 2019.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated estimated 
countervailable subsidy rates individually for The Ancientree Cabinet 
Company Co., Ltd. (Ancientree), Dalian Meisen Woodworking Co., Ltd. 
(Dalian Meisen), and Rizhao Foremost Woodwork Manufacturing Company 
Ltd. (Rizhao Foremost), that are not zero, de minimis, or based 
entirely on facts otherwise available. As calculating the all-others 
rate using a weighted-average of the estimated subsidy rates 
individually calculated for the examined respondents would reveal each 
company's business proprietary sales data, we are using a simple 
average of the calculated subsidy rates to establish the all-others 
rate.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Ancientree: Jiangsu Hongjia Wood Co., Ltd. (Jiangsu Hongjia) and 
Shanghai Hongjia Wood Co., Ltd. (Shanghai Hongjia).
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Dalian Meisen: Dalian Hechang Technology Development Co., Ltd. 
(Dalian Hechang).
    \11\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Rizhao Foremost: Foremost Worldwide Co., Ltd., and Rizhao Foremost 
Landbridge Wood Industries Co., Ltd.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
The Ancientree Cabinet Co., Ltd \9\.........................       10.97
Dalian Meisen Woodworking Co., Ltd \10\.....................       16.49
Rizhao Foremost Woodwork Manufacturing Company Ltd \11\.....       21.78
Henan AiDiJia Furniture Co., Ltd............................      229.24
Deway International Trade Co., Ltd..........................      229.24
All Others..................................................       16.41
------------------------------------------------------------------------


[[Page 39800]]

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination, whether imports of the subject 
merchandise are materially injuring, or threaten material injury to, 
the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: August 5, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise subject to this investigation consists of wooden 
cabinets and vanities that are for permanent installation (including 
floor mounted, wall mounted, ceiling hung or by attachment of 
plumbing), and wooden components thereof. Wooden cabinets and 
vanities and wooden components are made substantially of wood 
products, including solid wood and engineered wood products 
(including those made from wood particles, fibers, or other wooden 
materials such as plywood, strand board, block board, particle 
board, or fiberboard), or bamboo. Wooden cabinets and vanities 
consist of a cabinet box (which typically includes a top, bottom, 
sides, back, base blockers, ends/end panels, stretcher rails, toe 
kicks, and/or shelves) and may or may not include a frame, door, 
drawers and/or shelves. Subject merchandise includes wooden cabinets 
and vanities with or without wood veneers, wood, paper or other 
overlays, or laminates, with or without non-wood components or trim 
such as metal, marble, glass, plastic, or other resins, whether or 
not surface finished or unfinished, and whether or not completed.
    Wooden cabinets and vanities are covered by the investigation 
whether or not they are imported attached to, or in conjunction 
with, faucets, metal plumbing, sinks and/or sink bowls, or 
countertops. If wooden cabinets or vanities are imported attached 
to, or in conjunction with, such merchandise, only the wooden 
cabinet or vanity is covered by the scope.
    Subject merchandise includes the following wooden component 
parts of cabinets and vanities: (1) Wooden cabinet and vanity frames 
(2) wooden cabinet and vanity boxes (which typically include a top, 
bottom, sides, back, base blockers, ends/end panels, stretcher 
rails, toe kicks, and/or shelves), (3) wooden cabinet or vanity 
doors, (4) wooden cabinet or vanity drawers and drawer components 
(which typically include sides, backs, bottoms, and faces), (5) back 
panels and end panels, (6) and desks, shelves, and tables that are 
attached to or incorporated in the subject merchandise.
    Subject merchandise includes all unassembled, assembled and/or 
``ready to assemble'' (RTA) wooden cabinets and vanities, also 
commonly known as ``flat packs,'' except to the extent such 
merchandise is already covered by the scope of antidumping and 
countervailing duty orders on Hardwood Plywood from the People's 
Republic of China. See Certain Hardwood Plywood Products from the 
People's Republic of China: Amended Final Determination of Sales at 
Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 
4, 2018); Certain Hardwood Plywood Products from the People's 
Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 
2018). RTA wooden cabinets and vanities are defined as cabinets or 
vanities packaged so that at the time of importation they may 
include: (1) Wooden components required to assemble a cabinet or 
vanity (including drawer faces and doors); and (2) parts (e.g., 
screws, washers, dowels, nails, handles, knobs, adhesive glues) 
required to assemble a cabinet or vanity. RTAs may enter the United 
States in one or in multiple packages.
    Subject merchandise also includes wooden cabinets and vanities 
and in-scope components that have been further processed in a third 
country, including but not limited to one or more of the following: 
Trimming, cutting, notching, punching, drilling, painting, staining, 
finishing, assembly, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in the country of manufacture of the in-scope product.
    Excluded from the scope of this investigation, if entered 
separate from a wooden cabinet or vanity are:
    (1) Aftermarket accessory items which may be added to or 
installed into an interior of a cabinet and which are not considered 
a structural or core component of a wooden cabinet or vanity. 
Aftermarket accessory items may be made of wood, metal, plastic, 
composite material, or a combination thereof that can be inserted 
into a cabinet and which are utilized in the function of 
organization/accessibility on the interior of a cabinet; and 
include:
     Inserts or dividers which are placed into drawer boxes 
with the purpose of organizing or dividing the internal portion of 
the drawer into multiple areas for the purpose of containing smaller 
items such as cutlery, utensils, bathroom essentials, etc.
     Round or oblong inserts that rotate internally in a 
cabinet for the purpose of accessibility to foodstuffs, dishware, 
general supplies, etc.
    (2) Solid wooden accessories including corbels and rosettes, 
which serve the primary purpose of decoration and personalization.

[[Page 39801]]

    (3) Non-wooden cabinet hardware components including metal 
hinges, brackets, catches, locks, drawer slides, fasteners (nails, 
screws, tacks, staples), handles, and knobs.
    Also excluded from the scope of this investigation are:
    (1) All products covered by the scope of the antidumping duty 
order on Wooden Bedroom Furniture from the People's Republic of 
China. See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture 
from the People's Republic of China, 70 FR 329 (January 4, 2005).
    (2) All products covered by the scope of the antidumping and 
countervailing duty orders on Hardwood Plywood from the People's 
Republic of China. See Certain Hardwood Plywood Products from the 
People's Republic of China: Amended Final Determination of Sales at 
Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 
4, 2018); Certain Hardwood Plywood Products from the People's 
Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 
2018).
    Imports of subject merchandise are classified under Harmonized 
Tariff Schedule of the United States (HTSUS) statistical numbers 
9403.40.9060 and 9403.60.8081. The subject component parts of wooden 
cabinets and vanities may be entered into the United States under 
HTSUS statistical number 9403.90.7080. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this investigation is 
dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Diversification of China's Economy
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Subsidies Valuation
X. Benchmarks and Interest Rates
XI. Analysis of Programs
XII. ITC Notification
XIII. Recommendation

[FR Doc. 2019-17198 Filed 8-9-19; 8:45 am]
 BILLING CODE 3510-DS-P

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