Mattresses From the People's Republic of China: Initiation of Countervailing Duty Investigation, 22998-23002 [2020-08844]

Download as PDF 22998 Federal Register / Vol. 85, No. 80 / Friday, April 24, 2020 / Notices the transaction. We intend to issue assessment instructions directly to CBP 15 days after publication of the final results of this review. Cash Deposit Requirements The following cash deposit requirements will be effective upon publication of the notice of final results of administrative review for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication of the final results of this administrative review, as provided by section 751(a)(2) of the Act: (1) The cash deposit rate for Al Jazeera will be the rate established in the final results of this administrative review, as noted above; (2) for merchandise exported by manufacturers or exporters not covered in this administrative review but covered in a prior segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published for the most recently completed segment of this proceeding; (3) if the exporter is not a firm covered in this review, a prior review, or the original investigation, but the manufacturer is, then the cash deposit rate will be the rate established for the most recently completed segment of this proceeding for the manufacturer of the subject merchandise; and (4) the cash deposit rate for all other manufacturers or exporters will continue to be 7.36 percent, the all-others rate established in the less-than-fair-value investigation.6 These cash deposit requirements, when imposed, shall remain in effect until further notice. khammond on DSKJM1Z7X2PROD with NOTICES Notification to Importers This notice serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping and/or countervailing duties prior to liquidation of the relevant entries during the POR. Failure to comply with this requirement could result in Commerce’s presumption that reimbursement of antidumping and/or countervailing duties occurred and the subsequent assessment of doubled antidumping and/or countervailing duties. Administrative Protective Order This notice also serves as a reminder to parties subject to administrative protective orders (APO) of their 6 See Circular Welded Carbon-Quality Steel Pipe from the Sultanate of Oman, Pakistan, and the United Arab Emirates: Amended Final Affirmative Antidumping Duty Determination and Antidumping Duty Orders, 81 FR 91906 (December 19, 2016). VerDate Sep<11>2014 17:03 Apr 23, 2020 Jkt 250001 responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. 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 the terms of an APO is a sanctionable violation. Notification to Interested Parties We are issuing and publishing this notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(5). Dated: April 20, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Discussion of the Issues Comment 1: Whether a Particular Market Situation (PMS) Exists in Oman Comment 2: Whether Nucor Tubular Was Prejudiced by Rejection of Untimely Comments Comment 3: Whether To Recalculate Section 232 Duties Comment 4: Whether To Apply the Affiliated Party Test V. Recommendation [FR Doc. 2020–08759 Filed 4–23–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–128] Mattresses From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. ACTION: Notice. AGENCY: On March 31, 2020, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition (Petition) concerning imports of mattresses from the People’s Republic of China (China), filed in proper form on behalf of the petitioners, domestic producers of mattresses and certified unions that represent workers engaged in the domestic production of mattresses. SUMMARY: PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 DATES: Applicable April 20, 2020. FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2631. SUPPLEMENTARY INFORMATION: The Petition On March 31, 2020, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition (Petition) concerning imports of mattresses from the People’s Republic of China (China), filed in proper form on behalf of the petitioners,1 domestic producers of mattresses and certified unions that represent workers engaged in the domestic production of mattresses.2 The petition was accompanied by antidumping (AD) petitions concerning imports of mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam.3 Between April 3 and 14, 2020, Commerce requested supplemental information pertaining to certain aspects of the Petition.4 The petitioners filed responses to these requests between April 8 and April 16, 2020.5 1 Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., Leggett & Platt, Incorporated, the International Brotherhood of Teamsters, and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL–CIO (USW) (collectively, the petitioners). 2 See Petitioners’ Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam—Antidumping and Countervailing Duty Petitions,’’ dated March 31, 2020 (the Petitions). 3 Id. 4 See Commerce’s Letter, ‘‘Petitions for the Imposition of Antidumping Duties on Imports of Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam and Countervailing Duties on Imports from China: Supplemental Questions,’’ dated April 3, 2020 (General Issues Questionnaire); Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Mattresses from the People’s Republic of China: Supplemental Questions,’’ dated April 3, 2020; Commerce’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Mattresses from the People’s Republic of China: Second Supplemental Questions,’’ dated April 10, 2020; Memorandum, ‘‘Telephone Conversation with the Petitioners regarding Antidumping Duty Petitions Covering Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam and the Countervailing Duty Petition Covering Mattresses from People’s Republic of China,’’ dated April 10, 2020 (Memorandum of Telephone Conversation); and Memorandum, ‘‘Phone Call with Counsel to the Petitioners,’’ dated April 14, 2020. 5 See Petitioners’ Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Responses to Petition Supplemental Questionnaires,’’ dated April E:\FR\FM\24APN1.SGM 24APN1 Federal Register / Vol. 85, No. 80 / Friday, April 24, 2020 / Notices In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege 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 mattresses in China, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing mattresses in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition was accompanied by information reasonably available to the petitioners supporting its allegations. Commerce finds that the petitioners filed the Petition on behalf of the domestic industry because the petitioners are an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioners demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.6 Period of Investigation Because the Petition was filed on March 31, 2020, the period of investigation (POI) is January 1, 2019 through December 31, 2019.7 Scope of the Investigation The merchandise covered by this investigation is mattresses from China. For a full description of the scope of this investigation, see the Appendix to this notice. Comments on Scope of the Investigation khammond on DSKJM1Z7X2PROD with NOTICES On April 3, 2020, Commerce requested further information from 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 On April 8, 2020, the petitioners revised the scope.9 On April 10, 2020, Commerce requested further clarification from the petitioner 8, 2020 at Volume I (First General Issues Supplement) and at Volume III (First China CVD Supplement); Petitioners’ Letter, ‘‘Mattresses from China: Response to Petition Second Supplemental Questionnaire,’’ dated April 14, 2020; and Petitioners’ Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress Petitioners’ Response to Request for Additional Information Regarding Industry Support,’’ dated April 16, 2020 (Industry Support Supplement). 6 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 7 See 19 CFR 351.204(b)(2). 8 See General Issues Questionnaire. 9 See First General Issues Supplement at Exhibit I–Supp–5. VerDate Sep<11>2014 17:03 Apr 23, 2020 Jkt 250001 regarding the proposed scope.10 On April 13, 2020, the petitioner further modified the scope of the Petition to clarify the description of the merchandise covered by the Petition.11 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).12 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,13 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on May 11, 2020, which is the next business day after 20 calendar days from the signature date of this notice.14 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on May 21, 2020, which is 10 calendar days from the initial comment deadline.15 Commerce requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time 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 comments must be filed on the record of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), 10 See Memorandum of Telephone Conversation. 11 See Second General Issues Supplement at Exhibit I–Supp2–1. 12 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 13 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 14 In this case, 20 days after initiation falls on May 10, 2020, a Sunday. Where a deadline falls on a weekend or federal holiday, the appropriate deadline is the next business day. 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). 15 See 19 CFR 351.303(b). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 22999 unless an exception applies.16 An electronically filed document must be received successfully in its entirety by the time and date it is due. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the GOC of the receipt of the Petition and provided it the opportunity for consultations with respect to the Petition.17 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 16 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on 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. 17 See Commerce’s Letter, ‘‘Countervailing Duty Petition on Mattresses from the People’s Republic of China: Invitation for Consultations to Discuss the Countervailing Duty Petition,’’ dated March 31, 2020. E:\FR\FM\24APN1.SGM 24APN1 23000 Federal Register / Vol. 85, No. 80 / Friday, April 24, 2020 / Notices 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,18 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.19 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of the domestic like product distinct from the scope of the investigation.20 Based on our analysis of the information submitted on the record, we have determined that mattresses, as defined in the scope, constitutes a single domestic like product, and we have analyzed industry support in terms of that domestic like product.21 In determining whether the petitioners have 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 petitioners provided the 2019 production of the domestic like product for the U.S. producers that support the Petition.22 The petitioners estimated the production of the domestic like product for the entire domestic industry based on the production data from the ITC’s 18 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F. 2d 240 (Fed. Cir. 1989)). 20 See Volume I of the Petitions at 13–16. 21 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see China CVD Initiation Checklist at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam (Attachment II). 22 See Volume I of the Petition at 3–4, Exhibit I– 3, and Exhibit I–4; see also First General Issues Supplement at 2 and Exhibit I–Supp–1. khammond on DSKJM1Z7X2PROD with NOTICES 19 See VerDate Sep<11>2014 17:03 Apr 23, 2020 Jkt 250001 2019 report from the AD investigation of mattresses from China.23 We relied on data provided by the petitioners for purposes of measuring industry support.24 On April 9, 2020 and April 10, 2020, respectively, we received comments on industry support from Ashley Furniture Industries, Inc. (Ashley), a domestic producer and importer of merchandise subject merchandise,25 and Classic Brands, LLC (Classic Brands), an importer of subject merchandise.26 The petitioners responded to industry support comments on April 13, 2020.27 On April 17, 2020, we received surrebuttal comments from Ashley 28 and Classic Brands 29 with regard to the petitioners’ April 13, 2020 comments. The petitioners responded to these surrebuttal industry support comments on April 20, 2020.30 Our review of the data provided in the Petition, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioners have established industry support for the Petition.31 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 23 See Volume I of the Petitions at 3–4 and Exhibit I–4; see also First General Issues Supplement at 2, Exhibit I–Supp–1, and Exhibit I–Supp–2; and Mattresses from China, Inv. No. 731–TA–1424 (Final), USITC Pub. 5000 (December 2019), at 17– 25, II–1 to II–28. 24 See Volume I of the Petitions at 3–4, Exhibit I–3, and Exhibit I–4; see also First General Issues Supplement at 2, Exhibit I–Supp–1, and Exhibit I– Supp–2. For further discussion, see Attachment II of the country-specific CVD Initiation Checklists. 25 See Ashley’s Letter, ‘‘Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Comments on Industry Support,’’ dated April 9, 2020. 26 See Classic Brand’s Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Challenge to Petitioners’ Standing,’’ dated April 10, 2020. 27 See Petitioner’s Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress Petitioners’ Response to Ashley’s Industry Support Claims,’’ dated April 13, 2020. 28 See Ashley’s Letter, ‘‘Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Response to Petitioners’ Comments on Industry Support,’’ dated April 17, 2020. 29 See Classic Brand’s Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Classic Brands’s Surrebuttal on Petitioners’ Standing,’’ dated April 17, 2020. 30 See Petitioners’ Letter, ‘‘Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress Petitioners’ Response to Industry Support Claims Filed on April 17, 2020 by Ashley and Classic Brands,’’ dated April 20, 2020. 31 See Attachment II of the country-specific CVD Initiation Checklists. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 required to take further action in order to evaluate industry support (e.g., polling).32 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.33 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 Petitions 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.34 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.35 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 injure, or threaten 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 petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.36 The petitioners contend that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression or suppression; lost sales and revenues; declining production, capacity utilization, and sales volumes; declining employment variables; and a decline in financial 32 Id.; see also section 702(c)(4)(D) of the Act. Attachment II of the country-specific AD Initiation Checklists. 34 Id. 35 Id. 36 See Volume I of the Petitions, at 17–18 and Exhibit I–12. 33 See E:\FR\FM\24APN1.SGM 24APN1 Federal Register / Vol. 85, No. 80 / Friday, April 24, 2020 / Notices performance and profitability.37 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility and cumulation, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.38 Initiation of CVD Investigation Based upon the examination of the Petition on mattresses from China, we find that the Petition meets the requirements of section 702 of the Act. Therefore, we are initiating a CVD investigation to determine whether imports of mattresses from China benefit from countervailable subsidies conferred by the GOC. Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 13 of the 19 alleged programs. For a full discussion of the basis for our decision to initiate (or not to initiate) on each program, see CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. 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. khammond on DSKJM1Z7X2PROD with NOTICES Respondent Selection The petitioners named 46 companies in China as producers/exporters of mattresses.39 Commerce intends to follow its standard practice in CVD investigations and calculate companyspecific subsidy rates in this investigation. 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 mattresses from China during the POI under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the appendix. On April 14, 2020, Commerce released CBP data for U.S. imports of 37 See Volume I of the Petitions, at 28–46 and Exhibits I–8 through I–18; see also First General Issues Supplement, at Exhibit I–Supp–2. 38 See country-specific CVD Initiation Checklists at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam (Attachment III). 39 See Volume I of the Petition at Exhibit I–7. VerDate Sep<11>2014 17:03 Apr 23, 2020 Jkt 250001 mattresses 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.40 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 http://enforcement.trade.gov/ apo. Comments must be filed electronically using ACCESS. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. on the date noted above, unless an exception applies. Commerce intends to finalize its decision regarding respondent selection within 20 days of the publication of this notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC via ACCESS. Furthermore, to the extent practicable, Commerce 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 Commerce will notify the ITC of its 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 mattresses from China are materially injuring or threatening material injury to a U.S. industry.41 A negative ITC determination will result in the investigation being terminated.42 Otherwise, this CVD investigation will proceed according to statutory and regulatory time limits. 40 See Memorandum to the File, ‘‘Countervailing Duty Petition on Mattresses from the People’s Republic of China: Release of Customs Data from U.S. Customs and Border Protection,’’ dated April 14, 2020. 41 See section 733(a) of the Act. 42 Id. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 23001 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). Any party, when submitting factual information, must specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 43 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.44 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. Parties wishing to submit factual information in this investigation are asked to review the regulations prior to submitting factual information in this investigation. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce 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, Commerce will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances Commerce 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), 43 See 44 See E:\FR\FM\24APN1.SGM 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 24APN1 23002 Federal Register / Vol. 85, No. 80 / Friday, April 24, 2020 / Notices available at http://www.gpo.gov/fdsys/ pkg/FR-2013-09-20/html/201322853.htm, prior to submitting extension requests or 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.45 Parties must use the certification formats provided in 19 CFR 351.303(g).46 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. Instructions for filing such applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in this investigation should ensure that they meet the requirements of 19 CFR 351.103(d) (e.g., by filing a letter of appearance). Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until May 19, 2020, unless extended.47 This notice is issued and published pursuant to sections 702 and 777(i) of the Act and 19 CFR 351.203(c). Dated: April 20, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix—Scope of the Investigation The products covered by this investigation are all types of youth and adult mattresses. The term ‘‘mattress’’ denotes an assembly of materials that at a minimum includes a ‘‘core,’’ which provides the main support system of the mattress, and may consist of innersprings, foam, other resilient filling, or a combination of these materials. Mattresses may also contain (1) ‘‘upholstery,’’ the material between the core and the top panel of the ticking on a single-sided mattress, or between the core and the top and bottom panel of the ticking on a double-sided mattress; and/or (2) ‘‘ticking,’’ the outermost layer of fabric or other material (e.g., vinyl) khammond on DSKJM1Z7X2PROD with NOTICES 45 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 http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 47 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19, 85 FR 17006 (March 26, 2020). 46 See VerDate Sep<11>2014 17:03 Apr 23, 2020 Jkt 250001 that encloses the core and any upholstery, also known as a cover. The scope of this investigation is restricted to only ‘‘adult mattresses’’ and ‘‘youth mattresses.’’ ‘‘Adult mattresses’’ are frequently described as ‘‘twin,’’ ‘‘extra-long twin,’’ ‘‘full,’’ ‘‘queen,’’ ‘‘king,’’ or ‘‘California king’’ mattresses. ‘‘Youth mattresses’’ are typically described as ‘‘crib,’’ ‘‘toddler,’’ or ‘‘youth’’ mattresses. All adult and youth mattresses are included regardless of size or size description. The scope encompasses all types of ‘‘innerspring mattresses,’’ ‘‘non-innerspring mattresses,’’ and ‘‘hybrid mattresses.’’ ‘‘Innerspring mattresses’’ contain innersprings, a series of metal springs joined together in sizes that correspond to the dimensions of mattresses. Mattresses that contain innersprings are referred to as ‘‘innerspring mattresses’’ or ‘‘hybrid mattresses.’’ ‘‘Hybrid mattresses’’ contain two or more support systems as the core, such as layers of both memory foam and innerspring units. ‘‘Non-innerspring mattresses’’ are those that do not contain any innerspring units. They are generally produced from foams (e.g., polyurethane, memory (viscoelastic), latex foam, gel-infused viscoelastic (gel foam), thermobonded polyester, polyethylene) or other resilient filling. Mattresses covered by the scope of this investigation may be imported independently, as part of furniture or furniture mechanisms (e.g., convertible sofa bed mattresses, sofa bed mattresses imported with sofa bed mechanisms, corner group mattresses, day-bed mattresses, roll-away bed mattresses, high risers, trundle bed mattresses, crib mattresses), or as part of a set in combination with a ‘‘mattress foundation.’’ ‘‘Mattress foundations’’ are any base or support for a mattress. Mattress foundations are commonly referred to as ‘‘foundations,’’ ‘‘boxsprings,’’ ‘‘platforms,’’ and/or ‘‘bases.’’ Bases can be static, foldable, or adjustable. Only the mattress is covered by the scope if imported as part of furniture, with furniture mechanisms, or as part of a set, in combination with a mattress foundation. Excluded from the scope of this investigation are ‘‘futon’’ mattresses. A ‘‘futon’’ is a bi-fold frame made of wood, metal, or plastic material, or any combination thereof, that functions as both seating furniture (such as a couch, love seat, or sofa) and a bed. A ‘‘futon mattress’’ is a tufted mattress, where the top covering is secured to the bottom with thread that goes completely through the mattress from the top through to the bottom, and it does not contain innersprings or foam. A futon mattress is both the bed and seating surface for the futon. Also excluded from the scope are airbeds (including inflatable mattresses) and waterbeds, which consist of air- or liquidfilled bladders as the core or main support system of the mattress. Also excluded is certain multifunctional furniture that is convertible from seating to sleeping, regardless of filler material or components, where that filler material or components are upholstered, integrated into the design and construction of, and PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 inseparable from, the furniture framing, and the outermost layer of the multifunctional furniture converts into the sleeping surface. Such furniture may, and without limitation, be commonly referred to as ‘‘convertible sofas,’’ ‘‘sofa beds,’’ ‘‘sofa chaise sleepers,’’ ‘‘futons,’’ ‘‘ottoman sleepers’’ or a like description. Also excluded from the scope of this investigation are any products covered by the existing antidumping duty orders on uncovered innerspring units from China or Vietnam. See Uncovered Innerspring Units from the People’s Republic of China: Notice of Antidumping Duty Order, 74 FR 7661 (Feb. 19, 2009); Uncovered Innerspring Units From the Socialist Republic of Vietnam, 73 FR 75391 (Dec. 11, 2008). Also excluded from the scope of this investigation are bassinet pads with a nominal length of less than 39 inches, a nominal width less than 25 inches, and a nominal depth of less than 2 inches. Additionally, also excluded from the scope of this investigation are ‘‘mattress toppers.’’ A ‘‘mattress topper’’ is a removable bedding accessory that supplements a mattress by providing an additional layer that is placed on top of a mattress. Excluded mattress toppers have a nominal height of four inches or less. The products subject to this investigation are currently properly classifiable under HTSUS subheadings: 9404.21.0010, 9404.21.0013, 9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products subject to this investigation may also enter under HTSUS subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000, and 9401.90.5081. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to this investigation is dispositive. [FR Doc. 2020–08844 Filed 4–23–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–555–001, A–560–836, A–557–818, A–801– 002, A–549–841, A–489–841, A–552–827] Mattresses From Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the Socialist Republic of Vietnam: Initiation of LessThan-Fair-Value Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable April 20, 2020. FOR FURTHER INFORMATION CONTACT: John McGowan at (202) 482–3019 (Cambodia); Brian Smith at (202) 482– 1766 (Indonesia); Joshua Simonidis at (202) 482–0608 (Malaysia); Joshua A. DeMoss at (202) 482–3362 (Serbia); Paola Aleman Ordaz at (202) 482–4031 (Thailand); Jacob Keller at (202) 482– 4849 (Turkey); and Dakota Potts at (202) AGENCY: E:\FR\FM\24APN1.SGM 24APN1

Agencies

[Federal Register Volume 85, Number 80 (Friday, April 24, 2020)]
[Notices]
[Pages 22998-23002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08844]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-128]


Mattresses From the People's Republic of China: Initiation of 
Countervailing Duty Investigation

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

ACTION: Notice.

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SUMMARY: On March 31, 2020, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition (Petition) concerning 
imports of mattresses from the People's Republic of China (China), 
filed in proper form on behalf of the petitioners, domestic producers 
of mattresses and certified unions that represent workers engaged in 
the domestic production of mattresses.

DATES: Applicable April 20, 2020.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2631.

SUPPLEMENTARY INFORMATION: 

The Petition

    On March 31, 2020, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition (Petition) concerning 
imports of mattresses from the People's Republic of China (China), 
filed in proper form on behalf of the petitioners,\1\ domestic 
producers of mattresses and certified unions that represent workers 
engaged in the domestic production of mattresses.\2\ The petition was 
accompanied by antidumping (AD) petitions concerning imports of 
mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, 
Turkey, and Vietnam.\3\
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    \1\ Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort 
Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., 
Leggett & Platt, Incorporated, the International Brotherhood of 
Teamsters, and United Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union, AFL-CIO (USW) (collectively, the petitioners).
    \2\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam--
Antidumping and Countervailing Duty Petitions,'' dated March 31, 
2020 (the Petitions).
    \3\ Id.
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    Between April 3 and 14, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\4\ The 
petitioners filed responses to these requests between April 8 and April 
16, 2020.\5\
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    \4\ See Commerce's Letter, ``Petitions for the Imposition of 
Antidumping Duties on Imports of Mattresses from Cambodia, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam and 
Countervailing Duties on Imports from China: Supplemental 
Questions,'' dated April 3, 2020 (General Issues Questionnaire); 
Commerce's Letter, ``Petition for the Imposition of Countervailing 
Duties on Imports of Mattresses from the People's Republic of China: 
Supplemental Questions,'' dated April 3, 2020; Commerce's Letter, 
``Petition for the Imposition of Countervailing Duties on Imports of 
Mattresses from the People's Republic of China: Second Supplemental 
Questions,'' dated April 10, 2020; Memorandum, ``Telephone 
Conversation with the Petitioners regarding Antidumping Duty 
Petitions Covering Mattresses from Cambodia, Indonesia, Malaysia, 
Serbia, Thailand, Turkey, and Vietnam and the Countervailing Duty 
Petition Covering Mattresses from People's Republic of China,'' 
dated April 10, 2020 (Memorandum of Telephone Conversation); and 
Memorandum, ``Phone Call with Counsel to the Petitioners,'' dated 
April 14, 2020.
    \5\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Responses to Petition Supplemental Questionnaires,'' dated April 8, 
2020 at Volume I (First General Issues Supplement) and at Volume III 
(First China CVD Supplement); Petitioners' Letter, ``Mattresses from 
China: Response to Petition Second Supplemental Questionnaire,'' 
dated April 14, 2020; and Petitioners' Letter, ``Mattresses from 
Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and 
Vietnam: Mattress Petitioners' Response to Request for Additional 
Information Regarding Industry Support,'' dated April 16, 2020 
(Industry Support Supplement).

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[[Page 22999]]

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege 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 mattresses in 
China, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing mattresses in the 
United States. Consistent with section 702(b)(1) of the Act and 19 CFR 
351.202(b), for those alleged programs on which we are initiating a CVD 
investigation, the Petition was accompanied by information reasonably 
available to the petitioners supporting its allegations.
    Commerce finds that the petitioners filed the Petition on behalf of 
the domestic industry because the petitioners are an interested party, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioners demonstrated sufficient industry support with respect 
to the initiation of the requested CVD investigation.\6\
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    \6\ See ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because the Petition was filed on March 31, 2020, the period of 
investigation (POI) is January 1, 2019 through December 31, 2019.\7\
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    \7\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation

    The merchandise covered by this investigation is mattresses from 
China. For a full description of the scope of this investigation, see 
the Appendix to this notice.

Comments on Scope of the Investigation

    On April 3, 2020, Commerce requested further information from 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\ On April 8, 2020, the 
petitioners revised the scope.\9\ On April 10, 2020, Commerce requested 
further clarification from the petitioner regarding the proposed 
scope.\10\ On April 13, 2020, the petitioner further modified the scope 
of the Petition to clarify the description of the merchandise covered 
by the Petition.\11\ The description of the merchandise covered by this 
investigation, as described in the Appendix to this notice, reflects 
these clarifications.
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    \8\ See General Issues Questionnaire.
    \9\ See First General Issues Supplement at Exhibit I-Supp-5.
    \10\ See Memorandum of Telephone Conversation.
    \11\ See Second General Issues Supplement at Exhibit I-Supp2-1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\12\ 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,\13\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on May 11, 2020, which is the next business day after 20 calendar 
days from the signature date of this notice.\14\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
May 21, 2020, which is 10 calendar days from the initial comment 
deadline.\15\
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    \12\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \13\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \14\ In this case, 20 days after initiation falls on May 10, 
2020, a Sunday. Where a deadline falls on a weekend or federal 
holiday, the appropriate deadline is the next business day. 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).
    \15\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time 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 comments must be filed on 
the record of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\16\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \16\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOC of the receipt of the Petition and provided it the 
opportunity for consultations with respect to the Petition.\17\ The GOC 
did not request consultations.
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    \17\ See Commerce's Letter, ``Countervailing Duty Petition on 
Mattresses from the People's Republic of China: Invitation for 
Consultations to Discuss the Countervailing Duty Petition,'' dated 
March 31, 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

[[Page 23000]]

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,\18\ 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.\19\
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    \18\ See section 771(10) of the Act.
    \19\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\20\ Based on our analysis of the information 
submitted on the record, we have determined that mattresses, as defined 
in the scope, constitutes a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\21\
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    \20\ See Volume I of the Petitions at 13-16.
    \21\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
China CVD Initiation Checklist at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Mattresses from Cambodia, China, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, and Vietnam (Attachment II).
---------------------------------------------------------------------------

    In determining whether the petitioners have 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 petitioners provided 
the 2019 production of the domestic like product for the U.S. producers 
that support the Petition.\22\ The petitioners estimated the production 
of the domestic like product for the entire domestic industry based on 
the production data from the ITC's 2019 report from the AD 
investigation of mattresses from China.\23\ We relied on data provided 
by the petitioners for purposes of measuring industry support.\24\
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    \22\ See Volume I of the Petition at 3-4, Exhibit I-3, and 
Exhibit I-4; see also First General Issues Supplement at 2 and 
Exhibit I-Supp-1.
    \23\ See Volume I of the Petitions at 3-4 and Exhibit I-4; see 
also First General Issues Supplement at 2, Exhibit I-Supp-1, and 
Exhibit I-Supp-2; and Mattresses from China, Inv. No. 731-TA-1424 
(Final), USITC Pub. 5000 (December 2019), at 17-25, II-1 to II-28.
    \24\ See Volume I of the Petitions at 3-4, Exhibit I-3, and 
Exhibit I-4; see also First General Issues Supplement at 2, Exhibit 
I-Supp-1, and Exhibit I-Supp-2. For further discussion, see 
Attachment II of the country-specific CVD Initiation Checklists.
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    On April 9, 2020 and April 10, 2020, respectively, we received 
comments on industry support from Ashley Furniture Industries, Inc. 
(Ashley), a domestic producer and importer of merchandise subject 
merchandise,\25\ and Classic Brands, LLC (Classic Brands), an importer 
of subject merchandise.\26\ The petitioners responded to industry 
support comments on April 13, 2020.\27\ On April 17, 2020, we received 
surrebuttal comments from Ashley \28\ and Classic Brands \29\ with 
regard to the petitioners' April 13, 2020 comments. The petitioners 
responded to these surrebuttal industry support comments on April 20, 
2020.\30\
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    \25\ See Ashley's Letter, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Comments on 
Industry Support,'' dated April 9, 2020.
    \26\ See Classic Brand's Letter, ``Mattresses from Cambodia, 
China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Challenge to Petitioners' Standing,'' dated April 10, 2020.
    \27\ See Petitioner's Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress 
Petitioners' Response to Ashley's Industry Support Claims,'' dated 
April 13, 2020.
    \28\ See Ashley's Letter, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Response to 
Petitioners' Comments on Industry Support,'' dated April 17, 2020.
    \29\ See Classic Brand's Letter, ``Mattresses from Cambodia, 
China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Classic Brands's Surrebuttal on Petitioners' Standing,'' dated April 
17, 2020.
    \30\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress 
Petitioners' Response to Industry Support Claims Filed on April 17, 
2020 by Ashley and Classic Brands,'' dated April 20, 2020.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petition.\31\ 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).\32\ 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.\33\ 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 Petitions 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.\34\ 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.\35\
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    \31\ See Attachment II of the country-specific CVD Initiation 
Checklists.
    \32\ Id.; see also section 702(c)(4)(D) of the Act.
    \33\ See Attachment II of the country-specific AD Initiation 
Checklists.
    \34\ Id.
    \35\ Id.
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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 
injure, or threaten 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 petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.\36\
---------------------------------------------------------------------------

    \36\ See Volume I of the Petitions, at 17-18 and Exhibit I-12.
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and revenues; declining production, capacity utilization, 
and sales volumes; declining employment variables; and a decline in 
financial

[[Page 23001]]

performance and profitability.\37\ We assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, causation, as well as negligibility and cumulation, and we have 
determined that these allegations are properly supported by adequate 
evidence, and meet the statutory requirements for initiation.\38\
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    \37\ See Volume I of the Petitions, at 28-46 and Exhibits I-8 
through I-18; see also First General Issues Supplement, at Exhibit 
I-Supp-2.
    \38\ See country-specific CVD Initiation Checklists at 
Attachment III, Analysis of Allegations and Evidence of Material 
Injury and Causation for the Antidumping and Countervailing Duty 
Petitions Covering Mattresses from Cambodia, China, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, and Vietnam (Attachment III).
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Initiation of CVD Investigation

    Based upon the examination of the Petition on mattresses from 
China, we find that the Petition meets the requirements of section 702 
of the Act. Therefore, we are initiating a CVD investigation to 
determine whether imports of mattresses from China benefit from 
countervailable subsidies conferred by the GOC. Based on our review of 
the Petition, we find that there is sufficient information to initiate 
a CVD investigation on 13 of the 19 alleged programs. For a full 
discussion of the basis for our decision to initiate (or not to 
initiate) on each program, see CVD Initiation Checklist. A public 
version of the initiation checklist for this investigation is available 
on ACCESS. 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.

Respondent Selection

    The petitioners named 46 companies in China as producers/exporters 
of mattresses.\39\ Commerce intends to follow its standard practice in 
CVD investigations and calculate company-specific subsidy rates in this 
investigation. 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 mattresses from China during the POI under the 
appropriate Harmonized Tariff Schedule of the United States numbers 
listed in the ``Scope of the Investigation,'' in the appendix.
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    \39\ See Volume I of the Petition at Exhibit I-7.
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    On April 14, 2020, Commerce released CBP data for U.S. imports of 
mattresses 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.\40\ 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 http://enforcement.trade.gov/apo.
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    \40\ See Memorandum to the File, ``Countervailing Duty Petition 
on Mattresses from the People's Republic of China: Release of 
Customs Data from U.S. Customs and Border Protection,'' dated April 
14, 2020.
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    Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. on the date noted above, 
unless an exception applies. Commerce intends to finalize its decision 
regarding respondent selection within 20 days of the publication of 
this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS.
    Furthermore, to the extent practicable, Commerce 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

    Commerce will notify the ITC of its 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 mattresses from China are materially 
injuring or threatening material injury to a U.S. industry.\41\ A 
negative ITC determination will result in the investigation being 
terminated.\42\ Otherwise, this CVD investigation will proceed 
according to statutory and regulatory time limits.
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    \41\ See section 733(a) of the Act.
    \42\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \43\ 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.\44\ 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. Parties wishing to submit factual 
information in this investigation are asked to review the regulations 
prior to submitting factual information in this investigation.
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    \43\ See 19 CFR 351.301(b).
    \44\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce 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, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone submission; under limited circumstances Commerce 
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),

[[Page 23002]]

available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting extension requests or 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.\45\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\46\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \45\ See section 782(b) of the Act.
    \46\ 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 
http://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. Instructions for filing such 
applications may be found on the Commerce website at http://enforcement.trade.gov/apo. Parties wishing to participate in this 
investigation should ensure that they meet the requirements of 19 CFR 
351.103(d) (e.g., by filing a letter of appearance). Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information, until May 19, 
2020, unless extended.\47\
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    \47\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).

    Dated: April 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigation

    The products covered by this investigation are all types of 
youth and adult mattresses. The term ``mattress'' denotes an 
assembly of materials that at a minimum includes a ``core,'' which 
provides the main support system of the mattress, and may consist of 
innersprings, foam, other resilient filling, or a combination of 
these materials. Mattresses may also contain (1) ``upholstery,'' the 
material between the core and the top panel of the ticking on a 
single-sided mattress, or between the core and the top and bottom 
panel of the ticking on a double-sided mattress; and/or (2) 
``ticking,'' the outermost layer of fabric or other material (e.g., 
vinyl) that encloses the core and any upholstery, also known as a 
cover.
    The scope of this investigation is restricted to only ``adult 
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' are 
frequently described as ``twin,'' ``extra-long twin,'' ``full,'' 
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth 
mattresses'' are typically described as ``crib,'' ``toddler,'' or 
``youth'' mattresses. All adult and youth mattresses are included 
regardless of size or size description.
    The scope encompasses all types of ``innerspring mattresses,'' 
``non-innerspring mattresses,'' and ``hybrid mattresses.'' 
``Innerspring mattresses'' contain innersprings, a series of metal 
springs joined together in sizes that correspond to the dimensions 
of mattresses. Mattresses that contain innersprings are referred to 
as ``innerspring mattresses'' or ``hybrid mattresses.'' ``Hybrid 
mattresses'' contain two or more support systems as the core, such 
as layers of both memory foam and innerspring units.
    ``Non-innerspring mattresses'' are those that do not contain any 
innerspring units. They are generally produced from foams (e.g., 
polyurethane, memory (viscoelastic), latex foam, gel-infused 
viscoelastic (gel foam), thermobonded polyester, polyethylene) or 
other resilient filling.
    Mattresses covered by the scope of this investigation may be 
imported independently, as part of furniture or furniture mechanisms 
(e.g., convertible sofa bed mattresses, sofa bed mattresses imported 
with sofa bed mechanisms, corner group mattresses, day-bed 
mattresses, roll-away bed mattresses, high risers, trundle bed 
mattresses, crib mattresses), or as part of a set in combination 
with a ``mattress foundation.'' ``Mattress foundations'' are any 
base or support for a mattress. Mattress foundations are commonly 
referred to as ``foundations,'' ``boxsprings,'' ``platforms,'' and/
or ``bases.'' Bases can be static, foldable, or adjustable. Only the 
mattress is covered by the scope if imported as part of furniture, 
with furniture mechanisms, or as part of a set, in combination with 
a mattress foundation.
    Excluded from the scope of this investigation are ``futon'' 
mattresses. A ``futon'' is a bi-fold frame made of wood, metal, or 
plastic material, or any combination thereof, that functions as both 
seating furniture (such as a couch, love seat, or sofa) and a bed. A 
``futon mattress'' is a tufted mattress, where the top covering is 
secured to the bottom with thread that goes completely through the 
mattress from the top through to the bottom, and it does not contain 
innersprings or foam. A futon mattress is both the bed and seating 
surface for the futon.
    Also excluded from the scope are airbeds (including inflatable 
mattresses) and waterbeds, which consist of air- or liquid-filled 
bladders as the core or main support system of the mattress.
    Also excluded is certain multifunctional furniture that is 
convertible from seating to sleeping, regardless of filler material 
or components, where that filler material or components are 
upholstered, integrated into the design and construction of, and 
inseparable from, the furniture framing, and the outermost layer of 
the multifunctional furniture converts into the sleeping surface. 
Such furniture may, and without limitation, be commonly referred to 
as ``convertible sofas,'' ``sofa beds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers'' or a like description.
    Also excluded from the scope of this investigation are any 
products covered by the existing antidumping duty orders on 
uncovered innerspring units from China or Vietnam. See Uncovered 
Innerspring Units from the People's Republic of China: Notice of 
Antidumping Duty Order, 74 FR 7661 (Feb. 19, 2009); Uncovered 
Innerspring Units From the Socialist Republic of Vietnam, 73 FR 
75391 (Dec. 11, 2008).
    Also excluded from the scope of this investigation are bassinet 
pads with a nominal length of less than 39 inches, a nominal width 
less than 25 inches, and a nominal depth of less than 2 inches.
    Additionally, also excluded from the scope of this investigation 
are ``mattress toppers.'' A ``mattress topper'' is a removable 
bedding accessory that supplements a mattress by providing an 
additional layer that is placed on top of a mattress. Excluded 
mattress toppers have a nominal height of four inches or less.
    The products subject to this investigation are currently 
properly classifiable under HTSUS subheadings: 9404.21.0010, 
9404.21.0013, 9404.29.1005, 9404.29.1013, 9404.29.9085, and 
9404.29.9087. Products subject to this investigation may also enter 
under HTSUS subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 
9401.40.0000, and 9401.90.5081. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written 
description of the merchandise subject to this investigation is 
dispositive.

[FR Doc. 2020-08844 Filed 4-23-20; 8:45 am]
 BILLING CODE 3510-DS-P