Mattresses From the People's Republic of China: Initiation of Countervailing Duty Investigation, 22998-23002 [2020-08844]
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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entered, or withdrawn from warehouse,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.
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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).
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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:
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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
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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
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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.
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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).
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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.
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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.
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19 See
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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.
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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
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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.
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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.
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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 https://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.
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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 https://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 https://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
https://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.
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[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\
---------------------------------------------------------------------------
\6\ See ``Determination of Industry Support for the Petition''
section, infra.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\7\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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\
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\36\ See Volume I of the Petitions, at 17-18 and Exhibit I-12.
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The petitioners contend that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
lost sales and revenues; 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 https://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).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, 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 https://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
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Commerce website at https://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
