Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 11962-11965 [2020-04120]

Download as PDF jbell on DSKJLSW7X2PROD with NOTICES 11962 Federal Register / Vol. 85, No. 40 / Friday, February 28, 2020 / Notices 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.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. (3) Non-wooden cabinet hardware components including metal hinges, brackets, catches, locks, drawer slides, fasteners (nails, screws, tacks, staples), handles, and knobs. (4) Medicine cabinets that meet all of the following five criteria are excluded from the scope: (1) Wall mounted; (2) assembled at the time of entry into the United States; (3) contain one or more mirrors; (4) be packaged for retail sale at time of entry; and (5) have a maximum depth of seven inches. 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 VerDate Sep<11>2014 17:27 Feb 27, 2020 Jkt 250001 subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive. DEPARTMENT OF COMMERCE International Trade Administration [C–570–107] Appendix II Issues and Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Scope of the Investigation V. Scope Comments VI. Use of Adverse Facts Available VII. Changes Since the Preliminary Determination VIII. Adjustments Under Section 777A(f) of the Act IX. Adjustments to Cash Deposit Rates for Export Subsidies X. Discussion of the Issues General Comments Comment 1: Initiation of the Investigation Comment 2: Respondent Selection Comment 3: Separate Rate Applicants Comment 4: Company Name for Supree (Fujian) Wood Co., Ltd. (Supree) Comment 5: Calculation of the Separate Rate Assigned to Non-Selected Companies Surrogate Value (SV) Comments Comment 6: Surrogate Country Comment 7: SVs for Birch and Poplar Comment 8: Calculation of Financial Ratios Comment 9: Labor Rate Calculation Company-Specific Comments Ancientree Comment 10: Whether to Apply AFA to Ancientree Comment 11: Treatment of Jiangsu Hongjia Wood Ltd. (Jiangsu Hongjia) as an Affiliate Comment 12: SV Selections Foremost Comment 13: Combination Kits Comment 14: Exempted Sales Comment 15: Early Payment Discounts Comment 16: Section 301 Duties Comment 17: Foremost’s U.S. Inland Freight Charges from the Port to the Warehouse Comment 18: Foremost’s U.S. Inland Freight Charges to the Customer Comment 19: FGI’s Acquisition Costs Comment 20: Labor Hours Comment 21: Calculation and Programing Revisions Meisen Comment 22: Total AFA for Meisen XI. Recommendation [FR Doc. 2020–04121 Filed 2–27–20; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 Wooden Cabinets and Vanities and Components Thereof From the People’s Republic of China: Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and/or exporters of wooden cabinets and vanities and componets thereof (wooden cabinets and vanities) from the People’s Republic of China (China). DATES: Applicable February 28, 2020. FOR FURTHER INFORMATION CONTACT: Justin Neuman or Benito Ballesteros, 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) 482–0486 or (202) 482–7425, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On August 12, 2019, Commerce published the Preliminary Determination in this investigation.1 The petitioner is the American Kitchen Cabinet Alliance. In addition to the Government of China (GOC), the mandatory respondents in this investigation are The Ancientree Cabinet Co., Ltd. (Ancientree), Dalian Meisen Woodworking Co., Ltd. (Meisen), and Rizhao Foremost Woodwork Manufacturing Co., Ltd. (Foremost). A summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, are discussed in the Issues and Decision Memorandum, which is hereby adopted by this notice.2 The Issues and Decision 1 See 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, 84 FR 39798 (August 12, 2019) (Preliminary Determination), and accompanying Preliminary Decision Memorandum. 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Fabricated Structural Steel from the People’s Republic of China,’’ dated concurrently with, and E:\FR\FM\28FEN1.SGM 28FEN1 Federal Register / Vol. 85, No. 40 / Friday, February 28, 2020 / Notices 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. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/ index.html. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. Period of Investigation The period of investigation (POI) is July 1, 2018 through December 31, 2018. 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 Commerce issued a Preliminary Scope Decision Memorandum.3 Several interested parties submitted case and rebuttal briefs concerning the scope of this investigation. For a summary of the product coverage comments and rebuttal comments submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, see the Final Scope Decision Memorandum.4 Based on the comments received, Commerce is not modifying the scope language as it appeared in the Preliminary Determination. The scope in Appendix I remains unchanged from that which appeared in the Preliminary Determination. jbell on DSKJLSW7X2PROD with NOTICES Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs submitted by parties in this investigation, are discussed in the Issues and Decision Memorandum. A list of the issues that parties raised is attached to this notice as Appendix II. hereby adopted by, this notice (Issues and Decision Memorandum). 3 See Memorandum, ‘‘Certain Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determinations,’’ dated October 2, 2019 (Preliminary Scope Decision Memorandum). 4 See Memorandum, ‘‘Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Final Scope Comments Decision Memorandum,’’ dated concurrently with this notice (Final Scope Decision Memorandum). VerDate Sep<11>2014 17:27 Feb 27, 2020 Jkt 250001 Methodology Commerce conducted this investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, Commerce 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.5 For a full description of the methodology underlying our final determination, see the Issues and Decision Memorandum. In accordance with section 705(c)(1)(B)(i)(I) of the Act, we calculated individual estimated subsidy rates for Ancientree, Foremost and Meisen. Additionally, consistent with the Preliminary Determination, we relied on adverse facts available (AFA) to assign subsidy rates to Henan AiDiJia Furniture Co., Ltd (AiDiJia) and Deway International Trade Co., Ltd (Deway), because they failed to respond to Commerce’s requests for information.6 Verification As provided for under section 782(i) of the Act, Commerce verified the information reported by Ancientree, Foremost, and Meisen. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided by the respondents.7 Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, minor corrections presented at verification, and our verification findings, we made certain changes to the subsidy rate calculations for the respondents. As a result of the changes to the respondents’ calculated rates, Commerce has revised the all-others 5 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. 6 See Preliminary Determination PDM at 10–11 (noting that Commerce relied on AFA to assign a subsidy rate to Deway, because it failed to respond to our quantity and value questionnaire, and also relied on AFA to assign a subsidy rate to AiDiJia, because it failed to respond to our full questionnaire). 7 See Memorandum, ‘‘Verification of the Questionnaire Responses of Dalian Meisen Woodworking Co., Ltd.,’’ dated January 3, 2020; Memorandum, ‘‘Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Verification of the Questionnaire Responses of The Ancientree Cabinet Co., Ltd.,’’ dated January 7, 2020; and Memorandum, ‘‘Verification of the Questionnaire Responses of Rizhao Foremost Woodwork Manufacturing Co., Ltd.,’’ dated January 7, 2020. PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 11963 rate. Commerce has also revised the total AFA rate. For a discussion of these changes, see the Issues and Decision Memorandum and the Final Calculation Memoranda.8 Final Determination As noted above, we calculated individual estimated subsidy rates for Ancientree, Foremost and Meisen, and relied on AFA to assign subsidy rates to AiDiJia and Deway, because they failed to respond to Commerce’s requests for information. Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. However, as we do not have publicly-ranged sales data for all three of the participating company respondents, we are using a simple average of the calculated subsidy rates to establish the all-others rate. Commerce determines the total estimated net countervailable subsidy rates to be the following: Company The Ancientree Cabinet Co., Ltd 9 ................................... Dalian Meisen Woodworking Co., Ltd 10 .......................... Subsidy rate (percent) 13.33 18.27 8 See Memorandum, ‘‘Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Ancientree Final Determination Calculation Memorandum,’’ dated concurrently with this notice; Memorandum, ‘‘Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Foremost Final Determination Calculation Memorandum,’’ dated concurrently with this notice; and Memorandum, ‘‘Countervailing Duty Investigation of Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Meisen Final Determination Calculation Memorandum,’’ dated concurrently with this notice (collectively, Final Calculation Memoranda). 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 Wood Co., Ltd. Shanghai Branch, and Shanghai Hongjia Wood Co., Ltd. 10 As discussed in the Preliminary Decision Memorandum, Commerce has found the following company to be cross-owned with Dalian Meisen: Dalian Hechang Technology Development Co., Ltd. 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\28FEN1.SGM 28FEN1 11964 Federal Register / Vol. 85, No. 40 / Friday, February 28, 2020 / Notices material injury, by reason of imports of wooden cabinets and vanities from China no later than 45 days after our Rizhao Foremost Woodwork final determination. If the ITC Manufacturing Company determines that material injury or threat 11 Ltd ................................. 31.18 of material injury does not exist, the Deway International Trade Co., Ltd ............................. 293.45 proceeding will be terminated and all cash deposits will be refunded. If the Henan AiDiJia Furniture Co., Ltd ..................................... 293.45 ITC determines that such injury does All Others .............................. 20.93 exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, Disclosure countervailing duties on all imports of We intend to disclose to parties the the subject merchandise entered, or calculations performed in this withdrawn from warehouse, for proceeding within five days of any consumption on or after the effective public announcement of this notice in date of the suspension of liquidation, as accordance with 19 CFR 351.224(b). discussed above in the ‘‘Continuation of Continuation of Suspension of Suspension of Liquidation’’ section. Liquidation Notification Regarding Administrative As a result of our Preliminary Protective Order (APO) Determination and pursuant to sections In the event that the ITC issues a final 703(d)(1)(B) and (d)(2) of the Act, negative injury determination, this Commerce instructed U.S. Customs and notice will serve as the only reminder Border Protection (CBP) to suspend to parties subject to the APO of their liquidation of entries of subject responsibility concerning the merchandise entered, or withdrawn destruction of proprietary information from warehouse, for consumption on or disclosed under APO in accordance after August 12, 2019, the date of with 19 CFR 351.305(a)(3). Timely publication of the Preliminary written notification of the return/ Determination in the Federal Register. destruction of APO materials or In accordance with section 703(d) of the conversion to judicial protective order is Act, we issued instructions to CBP to hereby requested. Failure to comply discontinue the suspension of with the regulations and terms of an liquidation for subject merchandise APO is a violation which is subject to entered, or withdrawn from warehouse, sanction. on or after December 9, 2019, but to Notification to Interested Parties continue the suspension of liquidation of all entries from August 12, 2019 This determination is issued and through December 8, 2019. published pursuant to sections 705(d) If the U.S. International Trade and 777(i) of the Act, and 19 CFR Commission (ITC) issues a final 351.210(c). affirmative injury determination, we Dated: February 21, 2020. intend to issue a countervailing duty (CVD) order, reinstate the suspension of Jeffrey I. Kessler, Assistant Secretary for Enforcement and liquidation under section 706(a) of the Compliance. Act, and require a cash deposit of estimated countervailing duties for Appendix I entries of subject merchandise in the Scope of the Investigation amounts indicated above. If the ITC The merchandise subject to this determines that material injury, or investigation consists of wooden cabinets threat of material injury, does not exist, and vanities that are for permanent this proceeding will be terminated and installation (including floor mounted, wall all estimated duties deposited or mounted, ceiling hung or by attachment of securities posted as a result of the plumbing), and wooden components thereof. suspension of liquidation will be Wooden cabinets and vanities and wooden refunded or canceled. components are made substantially of wood Company Subsidy rate (percent) jbell on DSKJLSW7X2PROD with NOTICES ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. Because the final determination in this proceeding is affirmative, in accordance with section 705(b) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with VerDate Sep<11>2014 17:27 Feb 27, 2020 Jkt 250001 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 PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 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 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 E:\FR\FM\28FEN1.SGM 28FEN1 Federal Register / Vol. 85, No. 40 / Friday, February 28, 2020 / Notices 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. (3) Non-wooden cabinet hardware components including metal hinges, brackets, catches, locks, drawer slides, fasteners (nails, screws, tacks, staples), handles, and knobs. (4) Medicine cabinets that meet all of the following five criteria are excluded from the scope: (1) Wall mounted; (2) assembled at the time of entry into the United States; (3) contain one or more mirrors; (4) be packaged for retail sale at time of entry; and (5) have a maximum depth of seven inches. 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. jbell on DSKJLSW7X2PROD with NOTICES Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Scope Comments V. Use of Adverse Facts Available VI. Subsidies Valuation Information VerDate Sep<11>2014 17:27 Feb 27, 2020 Jkt 250001 VII. Analysis of Programs VIII. Analysis of Comments Comment 1: Initiation of the Investigation Comment 2: Whether Commerce Should Apply AFA to the Provision of Electricity for Less than Adequate Remuneration (LTAR) Program Comment 3: Whether Commerce Should Apply AFA to Find the Export Buyer’s Credit (EBC) Program Countervailable Comment 4: Whether the Policy Loans to the Wooden Cabinet and Vanity Industry Program Is Countervailable Comment 5: Whether Land Prices in Thailand Provide a Suitable Benchmark for Land Prices in China Comment 6: Whether Commerce Should Apply AFA to the Provision of Inputs for LTAR Comment 7: Whether Commerce Should Apply AFA to Self-Reported Subsidies Comment 8: Whether Commerce Should Adjust Its Plywood Benchmark Comment 9: Whether Commerce Should Apply AFA to Meisen Comment 10: Whether Commerce Should Continue to Find that Meisen Was Uncreditworthy Comment 11: Whether Commerce Should Countervail Subsidies Received by Foremost’s Tolling Companies Comment 12: Whether Commerce Should Continue to Find that Foremost Was Uncreditworthy IX. Recommendation [FR Doc. 2020–04120 Filed 2–27–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–533–891, A–580–904] Forged Steel Fittings From India and the Republic of Korea: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable February 28, 2020. FOR FURTHER INFORMATION CONTACT: Caitlin Monks at (202) 482–2670, AD/ CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: Background On November 12, 2019, the Department of Commerce (Commerce) initiated less-than-fair-value (LTFV) investigations of imports of forged steel fittings from India and the Republic of Korea.1 Currently, the preliminary 1 See Forged Steel Fittings from India and the Republic of Korea: Initiation of Less-Than-Fair- PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 11965 determinations are due no later than March 31, 2020. Postponement of Preliminary Determinations Section 733(b)(1)(A) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in an LTFV investigation within 140 days after the date on which Commerce initiated the investigation. However, section 733(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) The petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request. On February 5, 2020, the petitioners 2 submitted timely requests that Commerce postpone the preliminary determinations in these LTFV investigations.3 The petitioners request postponement because ‘‘based on the complexity of the process for selecting mandatory respondents in this investigation, Commerce will not have complete questionnaire responses and sufficient information to issue preliminary determinations if the deadlines are not extended.’’ 4 For the reasons stated above and because there are no compelling reasons to deny the request, Commerce, in accordance with section 733(c)(1)(A) of the Act, is postponing the deadline for the preliminary determinations by 50 days (i.e., 190 days after the date on which these investigations were initiated). As a result, Commerce will issue its preliminary determinations no later than May 20, 2020. In accordance with section 735(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the Value Investigations, 84 FR 64265 (November 21, 2019). 2 The petitioners are Bonney Forge Corporation and the United Steel, Paper and Forestry, Rubber Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). 3 See Petitioner’s Letters, ‘‘Forged Steel Fittings from India: Request for Extension of Preliminary Determination,’’ and ‘‘Forged Steel Fittings from Korea: Request for Extension of Preliminary Determination,’’ both dated February 5, 2020. 4 Id. E:\FR\FM\28FEN1.SGM 28FEN1

Agencies

[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Notices]
[Pages 11962-11965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04120]


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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: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and/or 
exporters of wooden cabinets and vanities and componets thereof (wooden 
cabinets and vanities) from the People's Republic of China (China).

DATES: Applicable February 28, 2020.

FOR FURTHER INFORMATION CONTACT: Justin Neuman or Benito Ballesteros, 
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) 482-0486 or (202) 
482-7425, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On August 12, 2019, Commerce published the Preliminary 
Determination in this investigation.\1\ The petitioner is the American 
Kitchen Cabinet Alliance. In addition to the Government of China (GOC), 
the mandatory respondents in this investigation are The Ancientree 
Cabinet Co., Ltd. (Ancientree), Dalian Meisen Woodworking Co., Ltd. 
(Meisen), and Rizhao Foremost Woodwork Manufacturing Co., Ltd. 
(Foremost).
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    \1\ See 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, 84 FR 39798 
(August 12, 2019) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, are discussed in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\ The Issues and Decision

[[Page 11963]]

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. 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.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Fabricated Structural Steel from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation (POI) is July 1, 2018 through December 
31, 2018.

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

    Commerce issued a Preliminary Scope Decision Memorandum.\3\ Several 
interested parties submitted case and rebuttal briefs concerning the 
scope of this investigation. For a summary of the product coverage 
comments and rebuttal comments submitted to the record for this final 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Final Scope Decision Memorandum.\4\ Based on 
the comments received, Commerce is not modifying the scope language as 
it appeared in the Preliminary Determination. The scope in Appendix I 
remains unchanged from that which appeared in the Preliminary 
Determination.
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    \3\ See Memorandum, ``Certain Wooden Cabinets and Vanities and 
Components Thereof from the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determinations,'' 
dated October 2, 2019 (Preliminary Scope Decision Memorandum).
    \4\ See Memorandum, ``Wooden Cabinets and Vanities and 
Components Thereof from the People's Republic of China: Final Scope 
Comments Decision Memorandum,'' dated concurrently with this notice 
(Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by parties in this 
investigation, are discussed in the Issues and Decision Memorandum. A 
list of the issues that parties raised is attached to this notice as 
Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce 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.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \5\ 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.
---------------------------------------------------------------------------

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated individual estimated subsidy rates for Ancientree, Foremost 
and Meisen. Additionally, consistent with the Preliminary 
Determination, we relied on adverse facts available (AFA) to assign 
subsidy rates to Henan AiDiJia Furniture Co., Ltd (AiDiJia) and Deway 
International Trade Co., Ltd (Deway), because they failed to respond to 
Commerce's requests for information.\6\
---------------------------------------------------------------------------

    \6\ See Preliminary Determination PDM at 10-11 (noting that 
Commerce relied on AFA to assign a subsidy rate to Deway, because it 
failed to respond to our quantity and value questionnaire, and also 
relied on AFA to assign a subsidy rate to AiDiJia, because it failed 
to respond to our full questionnaire).
---------------------------------------------------------------------------

Verification

    As provided for under section 782(i) of the Act, Commerce verified 
the information reported by Ancientree, Foremost, and Meisen. We used 
standard verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.\7\
---------------------------------------------------------------------------

    \7\ See Memorandum, ``Verification of the Questionnaire 
Responses of Dalian Meisen Woodworking Co., Ltd.,'' dated January 3, 
2020; Memorandum, ``Countervailing Duty Investigation of Wooden 
Cabinets and Vanities and Components Thereof from the People's 
Republic of China: Verification of the Questionnaire Responses of 
The Ancientree Cabinet Co., Ltd.,'' dated January 7, 2020; and 
Memorandum, ``Verification of the Questionnaire Responses of Rizhao 
Foremost Woodwork Manufacturing Co., Ltd.,'' dated January 7, 2020.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, minor corrections presented at verification, and our 
verification findings, we made certain changes to the subsidy rate 
calculations for the respondents. As a result of the changes to the 
respondents' calculated rates, Commerce has revised the all-others 
rate. Commerce has also revised the total AFA rate. For a discussion of 
these changes, see the Issues and Decision Memorandum and the Final 
Calculation Memoranda.\8\
---------------------------------------------------------------------------

    \8\ See Memorandum, ``Countervailing Duty Investigation of 
Wooden Cabinets and Vanities and Components Thereof from the 
People's Republic of China: Ancientree Final Determination 
Calculation Memorandum,'' dated concurrently with this notice; 
Memorandum, ``Countervailing Duty Investigation of Wooden Cabinets 
and Vanities and Components Thereof from the People's Republic of 
China: Foremost Final Determination Calculation Memorandum,'' dated 
concurrently with this notice; and Memorandum, ``Countervailing Duty 
Investigation of Wooden Cabinets and Vanities and Components Thereof 
from the People's Republic of China: Meisen Final Determination 
Calculation Memorandum,'' dated concurrently with this notice 
(collectively, Final Calculation Memoranda).
---------------------------------------------------------------------------

Final Determination

    As noted above, we calculated individual estimated subsidy rates 
for Ancientree, Foremost and Meisen, and relied on AFA to assign 
subsidy rates to AiDiJia and Deway, because they failed to respond to 
Commerce's requests for information.
    Section 705(c)(5)(A)(i) of the Act states that, for companies not 
individually investigated, Commerce will determine an all-others rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and/or producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act. However, as we do not 
have publicly-ranged sales data for all three of the participating 
company respondents, we are using a simple average of the calculated 
subsidy rates to establish the all-others rate.
    Commerce determines the total estimated net countervailable subsidy 
rates to be the following:
---------------------------------------------------------------------------

    \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 Wood 
Co., Ltd. Shanghai Branch, and Shanghai Hongjia Wood Co., Ltd.
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with 
Dalian Meisen: Dalian Hechang Technology Development Co., Ltd.
    \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 rate
                         Company                             (percent)
------------------------------------------------------------------------
The Ancientree Cabinet Co., Ltd \9\.....................           13.33
Dalian Meisen Woodworking Co., Ltd \10\.................           18.27

[[Page 11964]]

 
Rizhao Foremost Woodwork Manufacturing Company Ltd \11\.           31.18
Deway International Trade Co., Ltd......................          293.45
Henan AiDiJia Furniture Co., Ltd........................          293.45
All Others..............................................           20.93
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of any public announcement of this notice 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after August 12, 2019, the date of publication of the 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, we issued instructions to CBP to discontinue 
the suspension of liquidation for subject merchandise entered, or 
withdrawn from warehouse, on or after December 9, 2019, but to continue 
the suspension of liquidation of all entries from August 12, 2019 
through December 8, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we intend to issue a countervailing 
duty (CVD) order, reinstate the suspension of liquidation under section 
706(a) of the Act, and require a cash deposit of estimated 
countervailing duties for entries of subject merchandise in the amounts 
indicated above. If the ITC determines that material injury, or threat 
of material injury, does not exist, this proceeding will be terminated 
and all estimated duties deposited or securities posted as a result of 
the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. Because the final determination in this 
proceeding is affirmative, in accordance with section 705(b) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of wooden 
cabinets and vanities from China no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a CVD order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Order (APO)

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
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.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: February 21, 2020.
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

[[Page 11965]]

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.
    (3) Non-wooden cabinet hardware components including metal 
hinges, brackets, catches, locks, drawer slides, fasteners (nails, 
screws, tacks, staples), handles, and knobs.
    (4) Medicine cabinets that meet all of the following five 
criteria are excluded from the scope: (1) Wall mounted; (2) 
assembled at the time of entry into the United States; (3) contain 
one or more mirrors; (4) be packaged for retail sale at time of 
entry; and (5) have a maximum depth of seven inches.
    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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Adverse Facts Available
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Initiation of the Investigation
    Comment 2: Whether Commerce Should Apply AFA to the Provision of 
Electricity for Less than Adequate Remuneration (LTAR) Program
    Comment 3: Whether Commerce Should Apply AFA to Find the Export 
Buyer's Credit (EBC) Program Countervailable
    Comment 4: Whether the Policy Loans to the Wooden Cabinet and 
Vanity Industry Program Is Countervailable
    Comment 5: Whether Land Prices in Thailand Provide a Suitable 
Benchmark for Land Prices in China
    Comment 6: Whether Commerce Should Apply AFA to the Provision of 
Inputs for LTAR
    Comment 7: Whether Commerce Should Apply AFA to Self-Reported 
Subsidies
    Comment 8: Whether Commerce Should Adjust Its Plywood Benchmark
    Comment 9: Whether Commerce Should Apply AFA to Meisen
    Comment 10: Whether Commerce Should Continue to Find that Meisen 
Was Uncreditworthy
    Comment 11: Whether Commerce Should Countervail Subsidies 
Received by Foremost's Tolling Companies
    Comment 12: Whether Commerce Should Continue to Find that 
Foremost Was Uncreditworthy
IX. Recommendation

[FR Doc. 2020-04120 Filed 2-27-20; 8:45 am]
BILLING CODE 3510-DS-P

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