Wood Mouldings and Millwork Products From the People's Republic of China: Initiation of Countervailing Duty Investigation, 6513-6517 [2020-02153]
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Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices
under other HTSUS numbers including
7215.90.1000, 7215.90.5000,
7221.00.0015, 7221.00.0030,
7221.00.0045, 7222.11.0001,
7222.11.0057, 7222.11.0059,
7222.30.0001, 7227.20.0080,
7227.90.6085, 7228.20.1000, and
7228.60.6000. Specifically excluded are
plain rounds (i.e., non-deformed or
smooth rebar). Also excluded from the
scope is deformed steel wire meeting
ASTM A1064/A1064M with no bar
markings (e.g., mill mark, size or grade)
and without being subject to an
elongation test. HTSUS numbers are
provided for convenience and customs
purposes; however, the written
description of the scope remains
dispositive.
Administrative Protective Order (APO)
This notice serves as the only
reminder to parties subject to an APO of
their responsibility concerning the
return or destruction of proprietary
information disclosed under APO in
accordance with 19 CFR 351.305.
Timely notification of the return or
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
Analysis of Comments Received
Dated: January 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
All issues raised in this review,
including the likelihood of continuation
or recurrence of dumping in the event
of revocation and the magnitude of the
margin likely to prevail if the AD Order
was revoked, are addressed in the
accompanying Issues and Decision
Memorandum.6 The Issues and 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 to all
parties in the Central Records Unit,
room B8024 of the main Commerce
building. A list of the topics discussed
in the Issues and Decision
Memorandum is attached as an
appendix to this notice. In addition, a
complete version of the Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Issues and Decision
Memorandum are identical in content.
Final Results of Sunset Review
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Pursuant to sections 751(c)(1) and
752(c)(1) and (3) of the Act, we
determine that revocation of the AD
Order would be likely to lead to the
continuation or recurrence of dumping,
and that the magnitude of the dumping
margin likely to prevail for Mexico
would be a weighted-average dumping
margin up to 66.70 percent.
6 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Results of the First
Expedited Sunset Review of the Antidumping Duty
Order on Steel Concrete Reinforcing Bars from
Mexico,’’ dated concurrently with, and hereby
adopted by, this notice (Issues and Decision
Memorandum.
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Notification to Interested Parties
We are issuing and publishing the
final results and notice in accordance
with sections 751(c), 752(c), and
777(i)(1) of the Act and 19 CFR 351.218.
Appendix—List of Topics Discussed in
the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the AD Order
IV. History of the AD Order
V. Legal Framework
VI. Discussion of the Issues
1. Likelihood of the Continuation or
Recurrence of Dumping
2. Magnitude of the Margin Likely to
Prevail
VII. Final Results of Review
VIII. Recommendation
[FR Doc. 2020–02255 Filed 2–4–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–118]
Wood Mouldings and Millwork
Products From the People’s Republic
of China: Initiation of Countervailing
Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable January 28, 2020.
FOR FURTHER INFORMATION CONTACT:
Irene Gorelik at (202) 482–6905, 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 January 8, 2020, the U.S.
Department of Commerce (Commerce)
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6513
received a countervailing duty (CVD)
petition concerning imports of wood
mouldings and millwork products
(millwork products) from the People’s
Republic of China (China).1 The Petition
was filed in proper form by the
Coalition of American Millwork
Producers (the petitioner or the
Coalition).2 The Petition was
accompanied by antidumping duty (AD)
petitions concerning imports of
millwork products from Brazil and
China.
On January 10 and 17, 2020,
Commerce requested supplemental
information pertaining to certain aspects
of the Petition in separate supplemental
questionnaires and phone calls with the
petitioner.3 The petitioner responded to
the supplemental questionnaires on
January 14,4 15,5 and 22, 2020.6
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of
millwork products in China and that
imports of such products are materially
injuring, or threatening material injury
to, the domestic millwork products
industry in the United States. Consistent
with section 702(b)(1) of the Act and 19
CFR 351.202(b), for those alleged
1 See Petitioner’s Letter, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Petitions for the Imposition of
Antidumping and Countervailing Duties,’’ dated
January 8, 2020 (the Petition).
2 The Coalition of American Millwork Producers
is comprised of Bright Wood Corporation, Cascade
Wood Products, Inc., Endura Products, Inc., Sierra
Pacific Industries, Sunset Moulding, Woodgrain
Millwork, Inc., and Yuba River Moulding.
3 See Commerce’s Letters, ‘‘Petitions for the
Imposition of Antidumping Duties on Imports of
Wood Mouldings and Millwork Products from
Brazil and the People’s Republic of China and
Countervailing Duties on Imports of Wood
Mouldings and Millwork Products from the
People’s Republic of China: Supplemental
Questions,’’ dated January 10, 2020, and ‘‘Petition
for the Imposition of Countervailing Duties on
Imports of Wood Mouldings and Millwork Products
from the People’s Republic of China: Supplemental
Questions,’’ dated January 10, 2020; see also
Memorandum to the File, ‘‘Phone Call with Counsel
to the Petitioner,’’ dated January 22, 2020 (Scope
Phone Call Memo).
4 See Petitioner’s Letter, ‘‘Wood Mouldings and
Millwork Products from the People’s Republic of
China: Responses to the First Supplemental
Questions on China CVD Volume IV of the
Petition,’’ dated January 14, 2020.
5 See Petitioner’s Letter, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Responses to First Supplemental
Questions on General Issues Volume I of the
Petition,’’ dated January 15, 2020 (General Issues
Supplement).
6 See Petitioner’s Letter, ‘‘Responses to Second
Supplemental Questions on General Issues Volume
I of the Petition,’’ dated January 22, 2020 (Second
General Issues Supplement).
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programs on which we are initiating a
CVD investigation, the Petition is
accompanied by information reasonably
available to the petitioner supporting its
allegations.
Commerce finds that the petitioner
filed the Petition, on behalf of the
domestic industry, because the
Coalition is an interested party under
section 771(9)(F) of the Act. Commerce
also finds that the petitioner
demonstrated sufficient industry
support necessary for the initiation of
the requested CVD investigation.7
Period of Investigation
Because the Petition was filed on
January 8, 2020, the period of
investigation (POI) is January 1, 2019
through December 31, 2019, or the most
recently completed fiscal year for the
GOC and all of the companies under
investigation, provided the GOC and the
companies have the same fiscal year.
Scope of the Investigation
The products covered by this
investigation are millwork products
from China. For a full description of the
scope of this investigation, see the
appendix to this notice.
Scope Comments
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During our review of the Petition, we
contacted the petitioner 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.8 As
a result, the scope of the Petition was
modified to clarify the description of the
merchandise covered by the Petition.
The description of the merchandise
covered by this investigation, as
described in the 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).9 Commerce will consider all
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,10 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
7 See the ‘‘Determination of Industry Support for
the Petition’’ section, infra.
8 See General Issues Supplement, Scope Phone
Call Memo, and Second General Issues Supplement.
9 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
10 See 19 CFR 351.102(b) (21) (defining ‘‘factual
information’’).
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Commerce requests that all interested
parties submit such comments by 5:00
p.m. Eastern Time (ET) on February 18,
2020, which is the next business day
after 20 calendar days from the
signature date of this notice.11 Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on February 28, 2020,
which is 10 calendar days from the
initial comments deadline.12
Commerce requests that any factual
information parties consider 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 records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically via Enforcement and
Compliance’s Antidumping Duty and
Countervailing Duty Centralized
Electronic Service System (ACCESS).13
An electronically filed document must
be received successfully in its entirety
by the time and date 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.
Consultations
Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
representatives of the GOC of the receipt
11 The current deadline for scope comments falls
on Monday, February 17, 2020, which is a federal
holiday. Therefore, in accordance with our Next
Business Day Rule, the deadline is moved to
Tuesday, February 18, 2020. 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).
12 See 19 CFR 351.303(b).
13 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,
which went into effect on 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%20
Procedures.pdf.
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of the Petition and provided them the
opportunity for consultations with
respect to the Petition.14 The GOC did
not request consultations.
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(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 702(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) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
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,15 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.16
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
14 See Commerce’s Letter, ‘‘Countervailing Duty
Petition on Wood Mouldings and Millwork
Products from the People’s Republic of China:
Invitation for Consultations,’’ dated January 8, 2020.
15 See section 771(10) of the Act.
16 See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (Ct. Int’l Trade 2001) (citing Algoma Steel
Corp., Ltd. v. United States, 688 F. Supp. 639, 644
(Ct. Int’l Trade 1988), aff’d 865 F.2d 240 (Fed. Cir.
1989)).
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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 petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigation.17 Based on our analysis of
the information submitted on the
record, we have determined that
millwork products, as defined in the
scope, constitute a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.18
On January 23, 2020, we received
comments on industry support from
Composite Technology International,
Inc. (CTI), an importer of the subject
merchandise.19 The petitioner
responded to CTI’s industry support
comments on January 27, 2020.20
In determining whether the petitioner
has standing under section 702(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 petitioner provided the 2018
production of the domestic like product
for the U.S. producers that support the
Petition.21 The petitioner estimated the
production of the domestic like product
17 See Volume I of the Petition, at 13–15; see also
General Issues Supplement, at 11–14.
18 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Countervailing Duty
Investigation Initiation Checklist: Wood Mouldings
and Millwork Products from the People’s Republic
of China (China CVD Initiation Checklist) at
Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions
Covering Wood Mouldings and Millwork Products
from Brazil and the People’s Republic of China
(Attachment II). This checklist is dated
concurrently with this notice and on file
electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central
Records Unit, Room B8024 of the main Commerce
building.
19 See CTI’s Letter, ‘‘Wood Mouldings & Millwork
Products from Brazil and the People’s Republic of
China: Pre-Initiation Comments on Industry
Support,’’ dated January 23, 2020.
20 See Petitioner’s Letter, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Response to Pre-Initiation
Comments on Industry Support,’’ dated January 27,
2020.
21 See Volume I of the Petition, at 2–3 and
Exhibits I–3—I–5; see also General Issues
Supplement, at 16 and Exhibits I–Supp–13 and I–
Supp–14.
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for the remaining U.S. producers of
millwork products based on production
information from the Moulding and
Millwork Producers Association and the
Architectural Woodwork Institute, as
well as estimated production
information for U.S. producers that are
not members of either of these two
groups.22 The petitioner notes that 2019
production data are not yet available
and contends that 2018 calendar year
production data are a reasonable
estimate of production in 2019.23 The
petitioner compared the production of
the companies supporting the Petition
to the estimated total production of the
domestic like product for the entire
domestic industry.24 We relied on data
provided by the petitioner for purposes
of measuring industry support.25
Our review of the data provided in the
Petition, the General Issues Supplement,
the Second General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.26 First, the
Petition 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).27 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(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.28 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(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
22 See
Volume I of the Petition, at 2–4 and
Exhibits I–3, I–6, I–7, I–8, and I–9; see also General
Issues Supplement, at 16–18 and Exhibits I–Supp–
14—I–Supp–16.
23 See Second General Issues Supplement, at 7–
8.
24 See Volume I of the Petition, at 4 and Exhibit
I–3; see also General Issues Supplement, at 16 and
Exhibit I–Supp–14.
25 See Volume I of the Petition, at 2–4 and
Exhibits I–3—I–9; see also General Issues
Supplement, at 14–18 and Exhibits I–Supp–11—I–
Supp–16. For further discussion, see China CVD
Initiation Checklist, at Attachment II.
26 See China CVD Initiation Checklist, at
Attachment II.
27 See section 702(c)(4)(D) of the Act; see also
China CVD Initiation Checklist, at Attachment II.
28 See China CVD Initiation Checklist, at
Attachment II.
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6515
expressing support for, or opposition to,
the Petition.29 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act.30
Injury Test
Because China is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of the
subject merchandise from China
materially injures, or threatens material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefitting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.31
The petitioner contends 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; declining financial
performance; a decline in the domestic
industry’s capacity utilization and
production and related workers;
shuttered manufacturing facilities and
bankruptcies; and actual and potential
negative effects on cash flow.32 We have
assessed the allegations and supporting
evidence regarding material injury,
threat of material injury, causation, as
well as negligibility, and we have
determined that these allegations are
properly supported by adequate
evidence, and meet the statutory
requirements for initiation.33
Initiation of CVD Investigation
Based on the examination of the
Petition and supplemental responses,
we find that the Petition meets the
requirements of section 702 of the Act.
Therefore, we are initiating a CVD
29 Id.
30 Id.
31 See General Issues Supplement, at 18–19 and
Exhibit I–Supp–17.
32 See Volume I of the Petition, at 12–13, 15–26,
and Exhibits I–13 through I–23.
33 See China CVD Initiation Checklist, at
Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping Duty Petition Covering Wood
Mouldings and Millwork Products from Brazil and
the Republic of China (Attachment III).
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investigation to determine whether
imports of millwork products from
China benefit from countervailable
subsidies conferred by the GOC. In
accordance with section 703(b)(1) of the
Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our
preliminary determination no later than
65 days after the date of this initiation.
Based on our review of the Petition
and supplemental responses, we find
that there is sufficient information to
initiate a CVD investigation on 37 of the
38 alleged programs. For a full
discussion of the basis for our decision
to initiate on each program, see China
CVD Initiation Checklist. A public
version of the initiation checklist for
this investigation is available on
ACCESS.
Respondent Selection
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The petitioner named 92 companies
in China as producers/exporters of
millwork products.34 Following
standard practice in CVD investigations,
in the event Commerce determines that
the number of companies is large and it
cannot individually examine each
company based upon Commerce’s
resources, where appropriate,
Commerce intends to select respondents
based on U.S. Customs and Border
Protection (CBP) data for U.S. imports of
millwork products from China during
the POI under the appropriate
Harmonized Tariff Schedule of the
United States numbers listed within the
scope in the appendix, below.
On January 17, 2020, Commerce
released CBP data for U.S. imports of
millwork products from China under
Administrative Protective Order (APO)
to all parties with access to information
protected by APO and indicated that
interested parties wishing to comment
regarding the CBP data and respondent
selection must do so within three
business days of the publication date of
the notice of initiation of this CVD
investigation.35 Commerce will not
accept rebuttal comments regarding the
CBP data or respondent selection.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on the Commerce’s
website at https://enforcement.trade.gov/
apo.
34 See Volume I of the Petitions, at Exhibit I–11;
see also General Issues Supplement at Exhibit I–
Supp–1.
35 See Memorandum, ‘‘Wood Mouldings and
Millwork Products from the People’s Republic of
China Countervailing Duty Petition: Release of
Customs Data from U.S. Customs and Border
Protection,’’ dated January 17, 2020.
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Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version
of the Petition have been provided to
the GOC 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 our
initiation, as required by section 702(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
millwork products from China are
materially injuring, or threatening
material injury to, a U.S. industry.36 A
negative ITC determination will result
in the investigation being terminated.37
Otherwise, this CVD investigation will
proceed according to statutory and
regulatory time limits.
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). Section 351.301(b)
of Commerce’s regulations requires any
party, when submitting factual
information, to specify under which
subsection of 19 CFR 351.102(b)(21) the
information is being submitted 38 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.39 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
36 See
section 703(a)(2) of the Act.
section 703(a)(1) of the Act.
38 See 19 CFR 351.301(b).
39 See 19 CFR 351.301(b)(2).
37 See
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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
Commerce. 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
the letter or memorandum setting forth
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/201322853.htm, prior to submitting factual
information 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.40
Parties must use the certification
formats provided in 19 CFR
351.303(g).41 Commerce intends to
reject factual submissions if the
submitting party does not comply with
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
40 See
section 782(b) of the Act.
Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
41 See
E:\FR\FM\05FEN1.SGM
05FEN1
Federal Register / Vol. 85, No. 24 / Wednesday, February 5, 2020 / Notices
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 702(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: January 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
jbell on DSKJLSW7X2PROD with NOTICES
Appendix
Scope of the Investigation
The merchandise subject to this
investigation consists of wood mouldings
and millwork products that are made of
wood (regardless of wood species), bamboo,
laminated veneer lumber (LVL), or of wood
and composite materials (where the
composite materials make up less than 50
percent of the total merchandise), and which
are continuously shaped wood that
undergoes additional manufacturing or
finger-jointed or edge-glued moulding or
millwork blanks (whether or not resawn).
The percentage of composite materials
contained in a wood moulding or millwork
product is measured by length, except when
the composite material is a coating or
cladding. Wood mouldings and millwork
products that are coated or clad, even along
their entire length, with a composite
material, but that are otherwise comprised of
wood, LVL, or wood and composite materials
(where the non-coating composite materials
make up 50 percent or less of the total
merchandise) are covered by the scope.
The merchandise subject to this
investigation consists of wood, LVL, bamboo,
or a combination of wood and composite
materials that is continuously shaped
throughout its length (with the exception of
any endwork/dados), profiled wood having a
repetitive design in relief, similar milled
wood architectural accessories, such as
rosettes and plinth blocks, and finger-jointed
or edge-glued moulding or millwork blanks
(whether or not resawn). The scope includes
continuously shaped wood in the forms of
dowels, building components such as interior
paneling and jamb parts, and door
components such as rails and stiles.
The covered products may be solid wood,
laminated, finger-jointed, edge-glued, faceglued, or otherwise joined in the production
or remanufacturing process and are covered
by the scope whether imported raw, coated
(e.g., gesso, polymer, or plastic), primed,
painted, stained, wrapped (paper or vinyl
overlay), any combination of the
aforementioned surface coatings, treated, or
which incorporate rot-resistant elements
(whether wood or composite). The covered
products are covered by the scope whether or
not any surface coating(s) or covers obscures
the grain, textures, or markings of the wood,
whether or not they are ready for use or
require final machining (e.g., endwork/dado,
hinge/strike machining, weatherstrip or
application thereof, mitre) or packaging.
All wood mouldings and millwork
products are included within the scope even
VerDate Sep<11>2014
18:54 Feb 04, 2020
Jkt 250001
if they are trimmed; cut-to-size; notched;
punched; drilled; or have undergone other
forms of minor processing.
Subject merchandise also includes wood
mouldings and millwork products that have
been further processed in a third country,
including but not limited to trimming,
cutting, notching, punching, drilling, coating,
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 are exterior fencing, exterior
decking and exterior siding products
(including solid wood siding, non-wood
siding (e.g., composite or cement), and
shingles) that are not LVL or finger jointed;
finished and unfinished doors; flooring; parts
of stair steps (including newel posts,
balusters, easing, gooseneck, risers, treads
and rail fittings); and picture frame
components three feet and under in
individual lengths.
Excluded from the scope of this
investigation are 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).
Excluded from the scope of this
investigation are all products covered by the
scope of the antidumping and countervailing
duty orders on Multilayered Wood Flooring
from the People’s Republic of China. See
Multilayered Wood Flooring from the
People’s Republic of China: Amended Final
Determination of Sales at Less Than Fair
Value and Antidumping Duty Order, 76 FR
76690 (December 8, 2011); Multilayered
Wood Flooring from the People’s Republic of
China: Countervailing Duty Order, 76 FR
76693 (December 8, 2011).
Imports of wood mouldings and millwork
products are primarily entered under the
following Harmonized Tariff Schedule of the
United States (HTSUS) numbers:
4409.10.4010, 4409.10.4090, 4409.10.4500,
4409.10.5000, 4409.22.4000, 4409.22.5000,
4409.29.4100, and 4409.29.5100. Imports of
wood mouldings and millwork products may
also enter under HTSUS numbers:
4409.10.6000,4409.10.6500, 4409.22.6000,
4409.22.6500, 4409.29.6100, 4409.29.6600,
4418.99.9095 and 4421.99.9780. While the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of this
investigation is dispositive.
[FR Doc. 2020–02153 Filed 2–4–20; 8:45 am]
BILLING CODE 3510–DS–P
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
6517
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XA027]
North Pacific Fishery Management
Council; Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meeting.
AGENCY:
The North Pacific Fishery
Management Council (Council) Scallop
Plan Team will meet on February 19,
2020, in Kodiak, AK.
DATES: The meeting will be held on
Wednesday, February 19, 2020, from 9
a.m. to 5 p.m. Alaska Standard Time.
ADDRESSES: The meeting will be held at
the Alaska Department of Fish and
Game Office, 351 Research Ct., Kodiak,
AK 99615. Teleconference line is: (907)
271–2896.
Council address: North Pacific
Fishery Management Council, 1007
West Third, Suite 400, Anchorage, AK
99501–2252; telephone: (907) 271–2809.
FOR FURTHER INFORMATION CONTACT: Jim
Armstrong, Council staff; telephone:
(907) 271–2809.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Agenda
Wednesday, February 19, 2020
The Council’s Scallop Plan Team will
update the status of the Statewide
Scallop Stocks and Stock Assessment
and Fishery Evaluation (SAFE) report,
including catch specification
recommendations for the 2020 fishing
year. Additionally, there will be
discussion of survey results and the
scallop assessment program, survey
plans for 2020, and a review and update
of scallop research priorities. The
agenda is subject to change and will be
posted at https://meetings.npfmc.org/
Meeting/Details/1283.
Public Comment
Public comment letters will be
accepted and should be submitted either
electronically at: https://
meetings.npfmc.org/Meeting/Details/
1283 or through the mail: North Pacific
Fishery Management Council, 1007
West Third, Suite 400, Anchorage, AK
99501–2252.
Special Accommodations
The meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to
E:\FR\FM\05FEN1.SGM
05FEN1
]]>Agencies
[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Notices]
[Pages 6513-6517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02153]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-118]
Wood Mouldings and Millwork Products From the People's Republic
of China: Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable January 28, 2020.
FOR FURTHER INFORMATION CONTACT: Irene Gorelik at (202) 482-6905, 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 January 8, 2020, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
wood mouldings and millwork products (millwork products) from the
People's Republic of China (China).\1\ The Petition was filed in proper
form by the Coalition of American Millwork Producers (the petitioner or
the Coalition).\2\ The Petition was accompanied by antidumping duty
(AD) petitions concerning imports of millwork products from Brazil and
China.
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Wood Mouldings and Millwork
Products from Brazil and the People's Republic of China: Petitions
for the Imposition of Antidumping and Countervailing Duties,'' dated
January 8, 2020 (the Petition).
\2\ The Coalition of American Millwork Producers is comprised of
Bright Wood Corporation, Cascade Wood Products, Inc., Endura
Products, Inc., Sierra Pacific Industries, Sunset Moulding,
Woodgrain Millwork, Inc., and Yuba River Moulding.
---------------------------------------------------------------------------
On January 10 and 17, 2020, Commerce requested supplemental
information pertaining to certain aspects of the Petition in separate
supplemental questionnaires and phone calls with the petitioner.\3\ The
petitioner responded to the supplemental questionnaires on January
14,\4\ 15,\5\ and 22, 2020.\6\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping Duties on Imports of Wood Mouldings and Millwork
Products from Brazil and the People's Republic of China and
Countervailing Duties on Imports of Wood Mouldings and Millwork
Products from the People's Republic of China: Supplemental
Questions,'' dated January 10, 2020, and ``Petition for the
Imposition of Countervailing Duties on Imports of Wood Mouldings and
Millwork Products from the People's Republic of China: Supplemental
Questions,'' dated January 10, 2020; see also Memorandum to the
File, ``Phone Call with Counsel to the Petitioner,'' dated January
22, 2020 (Scope Phone Call Memo).
\4\ See Petitioner's Letter, ``Wood Mouldings and Millwork
Products from the People's Republic of China: Responses to the First
Supplemental Questions on China CVD Volume IV of the Petition,''
dated January 14, 2020.
\5\ See Petitioner's Letter, ``Wood Mouldings and Millwork
Products from Brazil and the People's Republic of China: Responses
to First Supplemental Questions on General Issues Volume I of the
Petition,'' dated January 15, 2020 (General Issues Supplement).
\6\ See Petitioner's Letter, ``Responses to Second Supplemental
Questions on General Issues Volume I of the Petition,'' dated
January 22, 2020 (Second General Issues Supplement).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of millwork products
in China and that imports of such products are materially injuring, or
threatening material injury to, the domestic millwork products industry
in the United States. Consistent with section 702(b)(1) of the Act and
19 CFR 351.202(b), for those alleged
[[Page 6514]]
programs on which we are initiating a CVD investigation, the Petition
is accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petition, on behalf of
the domestic industry, because the Coalition is an interested party
under section 771(9)(F) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support necessary for the
initiation of the requested CVD investigation.\7\
---------------------------------------------------------------------------
\7\ See the ``Determination of Industry Support for the
Petition'' section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on January 8, 2020, the period of
investigation (POI) is January 1, 2019 through December 31, 2019, or
the most recently completed fiscal year for the GOC and all of the
companies under investigation, provided the GOC and the companies have
the same fiscal year.
Scope of the Investigation
The products covered by this investigation are millwork products
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 petitioner
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.\8\ As a result, the scope of the
Petition was modified to clarify the description of the merchandise
covered by the Petition. The description of the merchandise covered by
this investigation, as described in the appendix to this notice,
reflects these clarifications.
---------------------------------------------------------------------------
\8\ See General Issues Supplement, Scope Phone Call Memo, and
Second General Issues Supplement.
---------------------------------------------------------------------------
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).\9\ Commerce will consider all 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,\10\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on February 18, 2020, which is the next business day after 20
calendar days from the signature date of this notice.\11\ Any rebuttal
comments, which may include factual information, must be filed by 5:00
p.m. ET on February 28, 2020, which is 10 calendar days from the
initial comments deadline.\12\
---------------------------------------------------------------------------
\9\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b) (21) (defining ``factual
information'').
\11\ The current deadline for scope comments falls on Monday,
February 17, 2020, which is a federal holiday. Therefore, in
accordance with our Next Business Day Rule, the deadline is moved to
Tuesday, February 18, 2020. 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).
\12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information parties consider
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 records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\13\ An electronically
filed document must be received successfully in its entirety by the
time and date 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.
---------------------------------------------------------------------------
\13\ 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, which went into effect on 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.
---------------------------------------------------------------------------
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified representatives of the GOC of the receipt of the Petition and
provided them the opportunity for consultations with respect to the
Petition.\14\ The GOC did not request consultations.
---------------------------------------------------------------------------
\14\ See Commerce's Letter, ``Countervailing Duty Petition on
Wood Mouldings and Millwork Products from the People's Republic of
China: Invitation for Consultations,'' dated January 8, 2020.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(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 702(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) determine industry support using a statistically valid sampling
method to poll the ``industry.''
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,\15\ 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.\16\
---------------------------------------------------------------------------
\15\ See section 771(10) of the Act.
\16\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (Ct.
Int'l Trade 2001) (citing Algoma Steel Corp., Ltd. v. United States,
688 F. Supp. 639, 644 (Ct. Int'l Trade 1988), aff'd 865 F.2d 240
(Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product
[[Page 6515]]
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 petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\17\ Based on our analysis of the information
submitted on the record, we have determined that millwork products, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\18\
---------------------------------------------------------------------------
\17\ See Volume I of the Petition, at 13-15; see also General
Issues Supplement, at 11-14.
\18\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Countervailing Duty Investigation Initiation Checklist: Wood
Mouldings and Millwork Products from the People's Republic of China
(China CVD Initiation Checklist) at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Wood Mouldings and Millwork Products from Brazil
and the People's Republic of China (Attachment II). This checklist
is dated concurrently with this notice and on file electronically
via ACCESS. Access to documents filed via ACCESS is also available
in the Central Records Unit, Room B8024 of the main Commerce
building.
---------------------------------------------------------------------------
On January 23, 2020, we received comments on industry support from
Composite Technology International, Inc. (CTI), an importer of the
subject merchandise.\19\ The petitioner responded to CTI's industry
support comments on January 27, 2020.\20\
---------------------------------------------------------------------------
\19\ See CTI's Letter, ``Wood Mouldings & Millwork Products from
Brazil and the People's Republic of China: Pre-Initiation Comments
on Industry Support,'' dated January 23, 2020.
\20\ See Petitioner's Letter, ``Wood Mouldings and Millwork
Products from Brazil and the People's Republic of China: Response to
Pre-Initiation Comments on Industry Support,'' dated January 27,
2020.
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
702(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 petitioner provided the
2018 production of the domestic like product for the U.S. producers
that support the Petition.\21\ The petitioner estimated the production
of the domestic like product for the remaining U.S. producers of
millwork products based on production information from the Moulding and
Millwork Producers Association and the Architectural Woodwork
Institute, as well as estimated production information for U.S.
producers that are not members of either of these two groups.\22\ The
petitioner notes that 2019 production data are not yet available and
contends that 2018 calendar year production data are a reasonable
estimate of production in 2019.\23\ The petitioner compared the
production of the companies supporting the Petition to the estimated
total production of the domestic like product for the entire domestic
industry.\24\ We relied on data provided by the petitioner for purposes
of measuring industry support.\25\
---------------------------------------------------------------------------
\21\ See Volume I of the Petition, at 2-3 and Exhibits I-3--I-5;
see also General Issues Supplement, at 16 and Exhibits I-Supp-13 and
I-Supp-14.
\22\ See Volume I of the Petition, at 2-4 and Exhibits I-3, I-6,
I-7, I-8, and I-9; see also General Issues Supplement, at 16-18 and
Exhibits I-Supp-14--I-Supp-16.
\23\ See Second General Issues Supplement, at 7-8.
\24\ See Volume I of the Petition, at 4 and Exhibit I-3; see
also General Issues Supplement, at 16 and Exhibit I-Supp-14.
\25\ See Volume I of the Petition, at 2-4 and Exhibits I-3--I-9;
see also General Issues Supplement, at 14-18 and Exhibits I-Supp-
11--I-Supp-16. For further discussion, see China CVD Initiation
Checklist, at Attachment II.
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the General Issues
Supplement, the Second General Issues Supplement, and other information
readily available to Commerce indicates that the petitioner has
established industry support for the Petition.\26\ First, the Petition
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).\27\ Second, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 702(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.\28\ Finally, the domestic producers (or workers) have met the
statutory criteria for industry support under section 702(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.\29\
Accordingly, Commerce determines that the Petition was filed on behalf
of the domestic industry within the meaning of section 702(b)(1) of the
Act.\30\
---------------------------------------------------------------------------
\26\ See China CVD Initiation Checklist, at Attachment II.
\27\ See section 702(c)(4)(D) of the Act; see also China CVD
Initiation Checklist, at Attachment II.
\28\ See China CVD Initiation Checklist, at Attachment II.
\29\ Id.
\30\ Id.
---------------------------------------------------------------------------
Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injures, or threatens material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\31\
---------------------------------------------------------------------------
\31\ See General Issues Supplement, at 18-19 and Exhibit I-Supp-
17.
---------------------------------------------------------------------------
The petitioner contends 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; declining financial performance; a decline in
the domestic industry's capacity utilization and production and related
workers; shuttered manufacturing facilities and bankruptcies; and
actual and potential negative effects on cash flow.\32\ We have
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as negligibility,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\33\
---------------------------------------------------------------------------
\32\ See Volume I of the Petition, at 12-13, 15-26, and Exhibits
I-13 through I-23.
\33\ See China CVD Initiation Checklist, at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping Duty Petition Covering Wood Mouldings
and Millwork Products from Brazil and the Republic of China
(Attachment III).
---------------------------------------------------------------------------
Initiation of CVD Investigation
Based on the examination of the Petition and supplemental
responses, we find that the Petition meets the requirements of section
702 of the Act. Therefore, we are initiating a CVD
[[Page 6516]]
investigation to determine whether imports of millwork products from
China benefit from countervailable subsidies conferred by the GOC. In
accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our preliminary determination no later
than 65 days after the date of this initiation.
Based on our review of the Petition and supplemental responses, we
find that there is sufficient information to initiate a CVD
investigation on 37 of the 38 alleged programs. For a full discussion
of the basis for our decision to initiate on each program, see China
CVD Initiation Checklist. A public version of the initiation checklist
for this investigation is available on ACCESS.
Respondent Selection
The petitioner named 92 companies in China as producers/exporters
of millwork products.\34\ Following standard practice in CVD
investigations, in the event Commerce determines that the number of
companies is large and it cannot individually examine each company
based upon Commerce's resources, where appropriate, Commerce intends to
select respondents based on U.S. Customs and Border Protection (CBP)
data for U.S. imports of millwork products from China during the POI
under the appropriate Harmonized Tariff Schedule of the United States
numbers listed within the scope in the appendix, below.
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\34\ See Volume I of the Petitions, at Exhibit I-11; see also
General Issues Supplement at Exhibit I-Supp-1.
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On January 17, 2020, Commerce released CBP data for U.S. imports of
millwork products from China under Administrative Protective Order
(APO) to all parties with access to information protected by APO and
indicated that interested parties wishing to comment regarding the CBP
data and respondent selection must do so within three business days of
the publication date of the notice of initiation of this CVD
investigation.\35\ Commerce will not accept rebuttal comments regarding
the CBP data or respondent selection. Interested parties must submit
applications for disclosure under APO in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
the Commerce's website at https://enforcement.trade.gov/apo.
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\35\ See Memorandum, ``Wood Mouldings and Millwork Products from
the People's Republic of China Countervailing Duty Petition: Release
of Customs Data from U.S. Customs and Border Protection,'' dated
January 17, 2020.
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Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version of the Petition have been
provided to the GOC 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 our initiation, as required by section
702(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 millwork products from China are materially
injuring, or threatening material injury to, a U.S. industry.\36\ A
negative ITC determination will result in the investigation being
terminated.\37\ Otherwise, this CVD investigation will proceed
according to statutory and regulatory time limits.
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\36\ See section 703(a)(2) of the Act.
\37\ See section 703(a)(1) of the Act.
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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). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \38\ 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.\39\ 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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\38\ See 19 CFR 351.301(b).
\39\ 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 Commerce. 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 the letter or memorandum setting
forth 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 factual information 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.\40\
Parties must use the certification formats provided in 19 CFR
351.303(g).\41\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\40\ See section 782(b) of the Act.
\41\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, 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
[[Page 6517]]
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 702(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: January 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise subject to this investigation consists of wood
mouldings and millwork products that are made of wood (regardless of
wood species), bamboo, laminated veneer lumber (LVL), or of wood and
composite materials (where the composite materials make up less than
50 percent of the total merchandise), and which are continuously
shaped wood that undergoes additional manufacturing or finger-
jointed or edge-glued moulding or millwork blanks (whether or not
resawn).
The percentage of composite materials contained in a wood
moulding or millwork product is measured by length, except when the
composite material is a coating or cladding. Wood mouldings and
millwork products that are coated or clad, even along their entire
length, with a composite material, but that are otherwise comprised
of wood, LVL, or wood and composite materials (where the non-coating
composite materials make up 50 percent or less of the total
merchandise) are covered by the scope.
The merchandise subject to this investigation consists of wood,
LVL, bamboo, or a combination of wood and composite materials that
is continuously shaped throughout its length (with the exception of
any endwork/dados), profiled wood having a repetitive design in
relief, similar milled wood architectural accessories, such as
rosettes and plinth blocks, and finger-jointed or edge-glued
moulding or millwork blanks (whether or not resawn). The scope
includes continuously shaped wood in the forms of dowels, building
components such as interior paneling and jamb parts, and door
components such as rails and stiles.
The covered products may be solid wood, laminated, finger-
jointed, edge-glued, face-glued, or otherwise joined in the
production or remanufacturing process and are covered by the scope
whether imported raw, coated (e.g., gesso, polymer, or plastic),
primed, painted, stained, wrapped (paper or vinyl overlay), any
combination of the aforementioned surface coatings, treated, or
which incorporate rot-resistant elements (whether wood or
composite). The covered products are covered by the scope whether or
not any surface coating(s) or covers obscures the grain, textures,
or markings of the wood, whether or not they are ready for use or
require final machining (e.g., endwork/dado, hinge/strike machining,
weatherstrip or application thereof, mitre) or packaging.
All wood mouldings and millwork products are included within the
scope even if they are trimmed; cut-to-size; notched; punched;
drilled; or have undergone other forms of minor processing.
Subject merchandise also includes wood mouldings and millwork
products that have been further processed in a third country,
including but not limited to trimming, cutting, notching, punching,
drilling, coating, 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 are exterior
fencing, exterior decking and exterior siding products (including
solid wood siding, non-wood siding (e.g., composite or cement), and
shingles) that are not LVL or finger jointed; finished and
unfinished doors; flooring; parts of stair steps (including newel
posts, balusters, easing, gooseneck, risers, treads and rail
fittings); and picture frame components three feet and under in
individual lengths.
Excluded from the scope of this investigation are 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).
Excluded from the scope of this investigation are all products
covered by the scope of the antidumping and countervailing duty
orders on Multilayered Wood Flooring from the People's Republic of
China. See Multilayered Wood Flooring from the People's Republic of
China: Amended Final Determination of Sales at Less Than Fair Value
and Antidumping Duty Order, 76 FR 76690 (December 8, 2011);
Multilayered Wood Flooring from the People's Republic of China:
Countervailing Duty Order, 76 FR 76693 (December 8, 2011).
Imports of wood mouldings and millwork products are primarily
entered under the following Harmonized Tariff Schedule of the United
States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500,
4409.10.5000, 4409.22.4000, 4409.22.5000, 4409.29.4100, and
4409.29.5100. Imports of wood mouldings and millwork products may
also enter under HTSUS numbers: 4409.10.6000,4409.10.6500,
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095
and 4421.99.9780. While the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
[FR Doc. 2020-02153 Filed 2-4-20; 8:45 am]
BILLING CODE 3510-DS-P
