Certain Hardwood Plywood Products From the People's Republic of China: Initiation of Anti-Circumvention Inquiries and Scope Inquiries on the Antidumping Duty and Countervailing Duty Orders; Vietnam Assembly, 36530-36535 [2020-13075]
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Elizabeth.Whiteman@trade.gov or (202)
482–0473.
Dated: June 11, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020–13077 Filed 6–16–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–051, C–570–052]
Certain Hardwood Plywood Products
From the People’s Republic of China:
Initiation of Anti-Circumvention
Inquiries and Scope Inquiries on the
Antidumping Duty and Countervailing
Duty Orders; Vietnam Assembly
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to allegations of
circumvention from the Coalition for
Fair Trade in Hardwood Plywood (the
petitioner), the Department of
Commerce (Commerce) is initiating
country-wide anti-circumvention
inquiries to determine whether certain
hardwood plywood products (plywood)
completed in Vietnam using plywood
components (face veneer, back veneer,
and/or either an assembled core or
individual core veneers) manufactured
in the People’s Republic of China
(China), or Chinese components
(assembled cores, multi-ply core panels,
or individual core veneers) combined in
Vietnam with other components (face
and/or back veneers) manufactured in
Vietnam or third countries, are
circumventing the antidumping duty
(AD) and countervailing duty (CVD)
orders on plywood from China. We are
also initiating scope inquiries to
determine whether any of the products
produced under various production
scenarios alleged by the petitioner are
covered by the scope of the AD/CVD
orders on plywood from China. Finally,
we are aligning the deadline for the
scope inquiries associated with a
covered merchandise referral from U.S.
Customs and Border Protection (CBP)
under the Enforce and Protect Act of
2015 (EAPA) with the
anticircumvention inquiries.
DATES: Applicable June 17, 2020.
FOR FURTHER INFORMATION CONTACT:
Kabir Archuletta, AD/CVD Operations,
Office V, Enforcement & Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230, telephone: (202) 482–2593.
SUPPLEMENTARY INFORMATION:
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AGENCY:
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Background
On January 4, 2018, Commerce issued
AD and CVD orders on plywood from
China.1 On September 16, 2019,
Commerce received an EAPA covered
merchandise referral from CBP.2 On
January 17, 2020, Commerce published
a notice of initiation of scope inquiries
related to this referral in order to
determine whether plywood produced
by Vietnam Finewood Company
Limited from China-origin materials are
covered merchandise subject to the
Orders.3
On February 25, 2020, pursuant to
section 781(b) of the Tariff Act of 1930,
as amended (the Act) and 19 CFR
351.225(c) and (h), the petitioner
requested that Commerce issue a scope
ruling, or in the alternative, an anticircumvention ruling, that plywood
completed in Vietnam using plywood
components manufactured in China,
and imported into the United States as
Vietnamese-origin plywood, are either
within the scope of the Orders or are
circumventing the Orders. Specifically,
the petitioner alleged that Chinese
plywood components are undergoing
minor assembly and finishing in
Vietnam that does not remove the
merchandise from coverage of the
Orders, and that these products are
entering the United States as
Vietnamese-origin plywood for the
express purpose of avoiding AD/CVD
duties. In the alternative to a scope
ruling, the petitioner requested that
Commerce find that these products
constitute merchandise completed or
assembled in a third country that is
circumventing, and should be included
within, the scope of the Orders.4
On March 4, 2020, Commerce
accepted the petitioner’s scope-ruling
and circumvention-ruling request and
established deadlines for interested
parties to provide comments.5 Between
1 See Certain Hardwood Plywood Products from
the People’s Republic of China: Amended Final
Determination of Sales at Less Than Fair Value,
and Antidumping Duty Order, 83 FR 504 (January
4, 2018); and Certain Hardwood Plywood Products
from the People’s Republic of China: Countervailing
Duty Order, 83 FR 513 (January 4, 2018)
(collectively, Orders).
2 See Certain Hardwood Plywood from the
People’s Republic of China: Notice of Covered
Merchandise Referral and Initiation of Scope
Inquiry, 85 FR 3024 (January 17, 2020) (EAPA
Scope Inquiry Initiation).
3 Id.
4 See Petitioner’s Letter, ‘‘Certain Hardwood
Plywood Products from the People’s Republic of
China: Request for Scope Ruling/AntiCircumvention Ruling,’’ dated February 25, 2020
(Petitioner’s Request).
5 See Memorandum, ‘‘Certain Hardwood Plywood
Products from the People’s Republic of China:
Deadline for Comments on the Vietnam Assembly
Scope Ruling Request,’’ dated March 4, 2020.
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March 18, 2020 and May 1, 2020, we
received comments from interested
parties in response to the allegations
made by the petitioner.6
On April 14, 2020, Commerce
extended the deadline for either issuing
a final scope and/or anti-circumvention
ruling or initiating a formal scope and/
or anti-circumvention inquiry to June 2,
2020.7 On May 8, 2020, we requested
additional information from the
petitioner,8 and on May 13, 2020, the
petitioner submitted its response to this
request.9 In this response, the petitioner
requested that Commerce expand its
inquiry to determine whether plywood
assembled in Vietnam from mainly
Chinese components, but also including
face and/or back veneers from Vietnam
or third countries, are within the scope
or are circumventing the Orders.10
On June 2, 2020, we again extended
the deadline to either issue a final scope
and/or anti-circumvention ruling or
6 See Vietnam Timber and Forest Product
Association’s Letter, ‘‘Certain Hardwood Plywood
Products from the People’s Republic of China:
Response Comments to Scope/Anti-Circumvention
Inquiry Requests,’’ dated March 18, 2020; see also
Truong Son Industrial Wood JSC’s Letter, ‘‘The
Petitioner’s Request for Determining Range of
Products/Anti-Circumvention Investigation into
Certain Hardwood Plywood Products,’’ dated March
20, 2020; VietBac Plywood JSC and Plywood Source
LLC’s Letter, ‘‘Certain Hardwood Plywood Products
from the People’s Republic of China: Response
Comments to Scope/Anti-Circumvention Inquiry
Requests,’’ dated March 20, 2020; TL Trung Viet
Co., Ltd.’s Letter, ‘‘Letter of Request to Consider
about Tax Imposition,’’ dated March 20, 2020;
Thanh Hoa Wood Industry Co., Ltd.’s Letter, ‘‘The
Petitioner’s Request for Determining Range of
Products/Anti-Circumvention Investigation into
Certain Hardwood Plywood Products,’’ dated March
20, 2020; DH Respondent Letter, ‘‘Hardwood
Plywood from the People’s Republic of China:
Comments to Petitioner’s Request for Scope/AntiCircumvention Inquiry,’’ dated March 20, 2020;
Importers Alliance’s Letter, ‘‘Investigation of the
Antidumping and Countervailing Duty Orders on
Hardwood Plywood Products from the People’s
Republic of China, Scope-Vietnam Assembly:
Objection to Request for Scope and AntiCircumvention Inquiry,’’ dated March 20, 2020;
Vietnam Ministry of Industry and Trade’s Letter,
‘‘The Petitioner’s Request for Scope of Ruling/AntiCircumvention Ruling for Hardwood Plywood
Products,’’ dated March 25, 2020; and Ike Trading
Co., Ltd.’s Letter, ‘‘Certain Hardwood Plywood
Products from the People’s Republic of China:
Resubmission of Ike Trading’s Scope Comments,’’
dated May 1, 2020.
7 See Commerce’s Letter, ‘‘Certain Hardwood
Plywood Products from the People’s Republic of
China: Extension of Deadline,’’ dated April 14,
2020.
8 See Commerce’s Letter, ‘‘Certain Hardwood
Plywood from the People’s Republic of China:
Clarification of Scope Ruling/Anticircumvention
Ruling Request,’’ dated May 8, 2020.
9 See Petitioner’s Letter, ‘‘Hardwood Plywood
Products from the People’s Republic of China:
Coalition’s Response to Request for Clarification,’’
dated May 12, 2020 (Petitioner’s Clarification).
10 Id.
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initiate a formal scope and/or anticircumvention inquiry to June 9, 2020.11
Scope of the Orders
The product covered by the Orders is
hardwood and decorative plywood from
China. For a complete description of the
scope of the orders, see Appendix.
Merchandise Subject to the AntiCircumvention Inquiries
These anti-circumvention inquiries
cover plywood completed in Vietnam
using plywood components (face
veneer, back veneer, and/or either an
assembled core or individual core
veneers) manufactured in China, or
Chinese components (assembled cores,
multi-ply core panels, or individual core
veneers) combined in Vietnam with
other components (face and/or back
veneers) manufactured in Vietnam or
third countries, and subsequently
exported to the United States.12
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Initiation of Anti-Circumvention
Inquiry Proceedings
Section 781(b) of the Act and 19 CFR
351.225(h) provide that Commerce may
find circumvention of an AD or CVD
order when merchandise of the same
class or kind subject to the order is
completed or assembled in another
foreign country before being exported to
the United States. In conducting anticircumvention inquiries under section
781(b)(1) of the Act, Commerce relies
upon the following criteria: (A)
Merchandise imported into the United
States is of the same class or kind as
merchandise produced in a foreign
country that is the subject of an AD or
CVD order or finding; (B) before
importation into the United States, such
imported merchandise is completed or
11 See Commerce’s Letter, ‘‘Certain Hardwood
Plywood Products from the People’s Republic of
China: Extension of Deadline,’’ dated June 2, 2020.
12 Specifically, these inquiries will cover
plywood completed in Vietnam using: (1) Face
veneer, back veneer, and assembled core
components manufactured in China; and (2) face
veneer, back veneer, and individual core veneers
produced in China. Additionally, these inquiries
will also examine, should such production
scenarios exist, plywood completed in Vietnam
using: (1) Fully assembled veneer core platforms
manufactured in China and face and/or back
veneers produced in Vietnam or third countries; (2)
multi-ply panels of glued core veneers
manufactured in China that are combined in
Vietnam to produce veneer core platforms and
combined with either a face and/or back veneer
produced in China, Vietnam, or a third country; and
(3) core veneers manufactured in China and
processed into a veneer core platform in Vietnam
and combined with a face and/or back veneer
produced in Vietnam or other third country. A
veneer core platform is defined as two or more
wood veneers that form the core of an otherwise
completed hardwood plywood product (i.e., a
hardwood plywood product to which the outer
(face and back) veneers have not yet been affixed
(see Petitioner’s Request at Exhibit 11).
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assembled in another foreign country
from merchandise which is produced in
the foreign country that is subject to the
order; (C) the process of assembly or
completion in another foreign country is
minor or insignificant; (D) the value of
the merchandise produced in the
foreign country to which the AD or CVD
order applies is a significant portion of
the total value of the merchandise
exported to the United States; and (E)
Commerce determines that action is
appropriate to prevent evasion of such
order or finding. As discussed below,
the petitioner provides evidence with
respect to these criteria.
A. Merchandise of the Same Class or
Kind
The petitioner states that, pursuant to
section 781(b)(1)(A) of the Act, the
inquiry merchandise being completed in
Vietnam and imported into the United
States is of the same class or kind as the
merchandise subject to the Orders.13
The petitioner further argues that the
products being completed in Vietnam
are identical to the subject merchandise
produced in China and are entering the
United States under the same
Harmonized Tariff Schedule
subheadings as subject plywood from
China.14
B. Completion of Merchandise in
Another Foreign Country
The petitioner contends that section
781(b)(1)(B)(ii) of the Act covers the
completion of plywood in Vietnam,
because the main components in the
production of plywood are
manufactured in China, the country to
which the Orders apply.15 The
petitioner also asserts that fully- or
partially-assembled cores, or individual
core veneers, produced in China that are
combined in Vietnam with face and/or
back veneers produced in Vietnam or a
third country should be covered by the
Orders; according to the petitioner, the
vast majority of the cost of the finished
plywood, in terms of materials, labor,
and investment, is related to the
production of the Chinese components
(including core veneers in particular).16
C. Minor or Insignificant Process
Under sections 781(b)(1)(C) and
781(b)(2) of the Act, Commerce will take
into account five factors to determine
whether the process of assembly or
completion of merchandise in other
13 See
Petitioner’s Request at 33–34.
14 Id. According to the petitioner, the main
components of plywood include face and back
veneers, and/or either an assembled core or
individual core veneers.
15 Id. at 34–35.
16 See Petitioner’s Clarification at 2–6.
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foreign countries is minor or
insignificant. Specifically, Commerce
will consider: (A) The level of
investment in the foreign country; (B)
the level of research and development
in the foreign country; (C) the nature of
the production process in the foreign
country; (D) the extent of production
facilities in the foreign country; and (E)
whether the value of processing
performed in the foreign country
represents a small portion of the value
of the merchandise imported into the
United States. However, no single
factor, by itself, controls Commerce’s
determination of whether the process of
assembly or completion in a third
country is minor or insignificant.17
Accordingly, it is Commerce’s practice
to evaluate each of these five factors as
they exist in the third country,
depending on the totality of the
circumstances of the particular anticircumvention inquiry.18
1. Level of Investment in the Foreign
Country
The petitioner states that, based on
the production steps that are occurring
in China and Vietnam, the relative
investment in Vietnam for the assembly
operations at issue is likely minimal.
According to the petitioner, with respect
to the plywood produced solely from
wooden components of Chinese origin,
the circumvention involves assembling
face and back veneers and/or a core
(assembled or individual core veneers)
that were manufactured in China, which
accounts for the vast majority of the cost
of production for plywood. The
petitioner asserts that the vast majority
of the production process, up through
the production of the wooden veneers,
occurs in China, and that these parts of
the production process require more
complex equipment, as well as much
more plant space, than the later
production processes that occur in
Vietnam.
With respect to the plywood
assembled in Vietnam from Chinese
components and non-Chinese face and/
or back veneers, the petitioner claims
that the cost and production related to
the face and back veneers is minimal
relative to the production of core
veneers. In particular, the petitioner
claims that the majority of the veneers
in any given plywood product are used
17 See Statement of Administrative Action
accompanying the Uruguay Round Agreements Act
(SAA), H.R. Doc. No. 103–316, vol. 1 (1994) at 893.
18 See Uncovered Innerspring Units from the
People’s Republic of China: Final Affirmative
Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December
21, 2018), and accompanying Issues and Decision
Memorandum at 4.
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for the core while the face and back
veneers each constitute only a single
veneer.19 Therefore, the petitioner
contends that, to the extent that
Commerce examines production
scenarios described above that involve a
combination of assembled cores, or
individual core veneers, produced in
China and face/back veneers produced
in Vietnam or third countries, the cost,
production, and value remains in the
Chinese components (and in the core
veneers in particular). As a result, the
petitioner maintains that the minor
processing that occurs in Vietnam also
likely requires a minimal investment in
Vietnam.20
2. Level of Research and Development
in the Foreign Country
The petitioner states that there is
likely no research and development
occurring in Vietnam because in some
cases the Vietnamese producers are just
completing the end of the plywood
production process. The petitioner
asserts that, while the research and
development required for setting up a
production facility for plywood in
China would be substantial, the level of
research and development, if any,
required for setting up an assembly
facility in Vietnam would be very
minimal.21 The petitioner estimates
that, for a fully integrated facility,
approximately 90 percent of the
research and development costs would
relate to veneer production, with the
vast majority of the veneers used for the
core, while only 10 percent of the
research and development costs would
relate to assembly operations.22
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3. Nature of the Production Process in
the Foreign Country
The petitioner states that the process
in Vietnam to complete the assembly of
Chinese face and back veneers and
Chinese core into plywood, or to apply
Vietnamese or third-country face and
back veneers to a Chinese core, or core
veneers, involves very minimal
processing compared to the production
steps in China. The production steps
that occur in China entail the majority
and most significant portion of the
production process (i.e., the production
of wooden veneers from logs, the vast
majority of which are used for the core).
The petitioner asserts that in certain
19 See
Petitioner’s Clarification at 5–6.
Petitioner’s Request at 36–37; see also
Petitioner’s Clarification at 9–10 and Exhibits 1 and
3.
21 See Petitioner’s Request at 38; see also
Petitioner’s Clarification at 10–11 and Exhibits 1
and 3.
22 See Petitioner’s Clarification at 11 and Exhibit
3.
20 See
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cases the only production steps
occurring in Vietnam are the layup of
the veneers as necessary, and the
application of glue and the assembly of
the veneers using a cold and hot press,
as well as any final trimming, sanding,
and/or finishing.23 Moreover, the
petitioner asserts that adding additional
veneers to an in-scope veneer core is
minor further processing that does not
move the completed merchandise out of
the scope.24
4. Extent of Production Facilities in the
Foreign Country
According to the petitioner, the extent
of the facilities in Vietnam is necessarily
limited because the companies in
Vietnam are simply assembling into
finished plywood the face and back
veneers and/or the core (assembled core
or individual core veneers), which are
manufactured by Chinese producers.
Moreover, the petitioner cites
information indicating that there has
been no increase in production facilities
in Vietnam, despite the massive
increase in exports of plywood to the
United States.25 The petitioner also
explains that the production facilities
required for veneer production, with the
vast majority of the veneers used for the
core, are substantial compared to those
required to assemble face and back
veneers and cores (assembled core or
individual core veneers).26
5. Value of Processing Performed in the
Foreign Country
The petitioner asserts that the value of
processing in Vietnam represents a
minority of the value of the
merchandise imported into the United
States. According to the petitioner, the
production steps that take place in
China make up the most significant
portion of the production process and
the cost of goods sold (COGS) for the
plywood. The petitioner also cites to the
investigation by the U.S. International
Trade Commission (ITC), which found
that the percentage of COGS accounted
for by raw materials alone ranged from
78.8 percent to 79.4 percent from 2014
through 2016, and that the major raw
material costs are the veneer, with the
vast majority of the veneers used for the
core, and other plywood used in the
production of plywood.27
The petitioner also provided
proprietary data to demonstrate that the
most significant portion of the
23 See
Petitioner’s Request at 38–39.
Petitioner’s Clarification at 4.
25 Id. at 40; see also Petitioner’s Clarification at
12–13 and Exhibits 1 and 4.
26 See Petitioner’s Clarification at 12–13 and
Exhibits 1 and 4.
27 See Petitioner’s Request at 41.
24 See
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production costs is incurred in China
from the production of veneers, and that
a very small proportion of the value is
accounted for by the assembly of the
veneers in Vietnam.28 The petitioner
stated that, to the extent that assembled
cores, or individual core veneers,
produced in China that are being
combined with Vietnam or thirdcountry origin face/back veneers, the
cost and production related to the face/
back veneers is minimal relative to the
production of core veneers and, thus,
the vast majority of the cost, production,
and value would still remain with the
core veneers.29
D. Value of Merchandise Produced in
the Foreign Country Is a Significant
Portion of the Value of the Merchandise
The petitioner emphasizes that the
overwhelming majority of the
production and costs are accounted for
by the raw materials (i.e., the wooden
veneers and core that are produced in
China and shipped to Vietnam for
assembly). According to the petitioner,
this demonstrates that the value of the
merchandise produced in China, which
include the face veneer, back veneer,
and/or core (assembled or individual
core veneers), accounts for a significant
portion of the total value of the
merchandise ultimately exported to the
United States.30
As noted above, the petitioner stated
that, for plywood made from core
veneers produced in China and further
processed and combined with face and/
or back veneers produced in Vietnam or
a third country, the vast majority of the
value of the merchandise exported
remains in the core veneers from
China.31
E. Factors To Consider in Determining
Whether Action Is Necessary
Section 781(b)(1)(E) of the Act states
that Commerce will determine whether
action is appropriate to prevent evasion
of an AD or CVD order, and section
781(b)(3) of the Act identifies additional
factors that Commerce shall consider in
determining whether to include parts or
components in an AD or CVD order as
part of an anti-circumvention inquiry,
including: (A) The pattern of trade,
including sourcing patterns; (B) whether
the manufacturer or exporter of the
merchandise described in section
781(b)(1)(B) of the Act is affiliated with
the person who uses the merchandise
described in (1)(B) to assemble or
complete in the foreign country the
28 Id.
at 42.
Petitioner’s Clarification at 5–6.
30 Id. at 44.
31 See Petitioner’s Clarification at 5–6.
29 See
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merchandise that is subsequently
imported in the United States; and (C)
whether imports into the foreign
country of the merchandise described in
(1)(B) have increased after initiation of
the investigation which resulted in the
issuance of such order or finding.
1. Pattern of Trade
The petitioner argues that the pattern
of trade demonstrates circumvention of
the Orders.32 The petitioner asserts that,
since the investigations and imposition
of the Orders, Chinese exports of
plywood to the United States have
decreased substantially. The petitioner
further states that U.S imports of
plywood from Vietnam have increased
by approximately 950 percent while
Chinese exports of plywood to Vietnam
have effectively doubled since 2015. In
addition, trade data submitted by the
petitioner indicate that Chinese exports
of wood veneers to Vietnam have
increased by more than 350 percent over
the same period.33 The petitioner also
points out that the Vietnamese
government not only has recognized the
nature of these trade trends, but it also
suspects that the surge in exports of
plywood products to the United States
from Vietnam is a result of Chinese
companies improperly seeking to avoid
tariffs.34
2. Affiliation
The petitioner asserts that it has
reason to believe that some of the
Chinese producers/exporters and
Vietnamese assembly operators are
affiliated. It argues that importers that
previously imported Chinese plywood
to the United States are now importing
significant quantities of plywood from
Vietnam from certain Vietnamese
producers/exporters. The petitioner
claims that this suggests that there may
be a relationship between the prior
Chinese producers/exporters and the
entities that are now importing from
Vietnam.35
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Petitioner’s Request at 46–47.
Petitioner’s Clarification at Exhibit 2.
34 See Petitioner’s Request at 46–47.
35 Id. at 48.
36 Id. at 49.
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at Exhibit 6.
e.g., Certain Corrosion-Resistant Steel
Products from the Republic of Korea and Taiwan:
Initiation of Anti-Circumvention Inquiries on the
Antidumping Duty and Countervailing Duty Orders,
83 FR 37785 (August 2, 2018); Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of
China: Initiation of Anti-Circumvention Inquiry on
the Antidumping Duty Order, 82 FR 40556, 40560
(August 25, 2017) (stating at initiation that
Commerce would evaluate the extent to which a
country-wide finding applicable to all exports
might be warranted); and Certain CorrosionResistant Steel Products from the People’s Republic
of China: Initiation of Anti-Circumvention Inquiries
on the Antidumping Duty and Countervailing Duty
Orders, 81 FR 79454, 79458 (November 14, 2016)
(stating at initiation that Commerce would evaluate
the extent to which a country-wide finding
applicable to all exports might be warranted).
39 See Petitioner’s Request at 21–31.
38 See,
The petitioner presents evidence
indicating that Chinese exports of
plywood to the United States have
decreased substantially since the
implementation of the Orders.36 The
evidence also shows that U.S imports of
plywood from Vietnam have
skyrocketed since 2015, increasing by
approximately 950 percent. At the same
33 See
Conclusion
Based on the available information
provided by the petitioner, we
determine that there is sufficient basis
to initiate anti-circumvention inquiries,
pursuant to section 781(b) of the Act
and 19 CFR 351.225(h). Commerce will
determine whether the merchandise
subject to the inquiries (as described in
the ‘‘Merchandise Subject to the AntiCircumvention Inquiry’’ section supra)
is circumventing the Orders such that it
should be considered to be within the
scope of the Orders.
We find that the available information
warrants initiating these anticircumvention inquiries on a countrywide basis.37 Commerce has taken this
approach in prior anti-circumvention
inquiries, where the facts warranted
initiation on a country-wide basis.38
Consistent with the approach in these
prior anti-circumvention inquiries
initiated on a country-wide basis,
Commerce intends to request comments
from interested parties regarding
respondent selection and to issue
questionnaires to solicit information
from producers and exporters in
Vietnam concerning their shipments of
plywood to the United States and the
origin of any plywood components
being processed into completed
plywood. A company’s failure to
respond completely and timely to
Commerce’s requests for information
may result in the application of partial
or total facts available, pursuant to
section 776(a) of the Act, which may
include adverse inferences, pursuant to
section 776(b) of the Act.
Additionally, as part of these anticircumvention inquiries, we intend to
examine the scope inquiry requests filed
by the petitioner under 19 CFR
351.225(c), as discussed below.39 Our
final findings in these anticircumvention inquiries will include a
37 Id.
3. Subsequent Import Volume
32 See
time, Chinese exports of plywood to
Vietnam have doubled.
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36533
final finding with regard to the scope
inquiries to the extent that they
determine whether any of the
production scenarios identified by the
petitioner are properly considered
subject to the scope of the Orders.
Additionally, Commerce is aligning the
deadline to issue a final determination
in the EAPA scope inquiries with the
deadline associated with these anticircumvention inquiries.40
In accordance with 19 CFR
351.225(l)(2), if Commerce issues
preliminary affirmative determinations,
we will instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated duties, at the applicable rate,
for each unliquidated entry of the
merchandise at issue, entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiries.
Before issuance of any affirmative
determination, Commerce intends to
notify the ITC of any proposed inclusion
of the inquiry merchandise under the
scope of the Orders, in accordance with
section 781(e)(1)(B) of the Act. Pursuant
to section 781(f) of the Act, Commerce
intends to issue its final determinations
within 300 days of the date of
publication of this notice of initiation.
Initiation of Scope Inquiries
The scope of the Orders states that the
scope ‘‘includes hardwood and
decorative plywood that has been
further processed in a third country,
including but not limited to trimming,
cutting, notching, punching, drilling, or
any other processing that would not
otherwise remove the merchandise from
the scope of the Orders if performed in
the country of manufacture of the inscope product.’’ 41
The petitioner requests that
Commerce confirm that, where Chinese
producers and/or exporters are shipping
the main components of plywood that
are manufactured in China, as explained
above, to Vietnam for assembly into
completed plywood before being
imported to the United States, such
further processing does not remove the
merchandise from the coverage of the
Orders.42 Because the scope of the
Orders provides that certain types of
further processing do not remove the
merchandise from the Orders, we find it
appropriate to also initiate scope
inquiries, in accordance with 19 CFR
351.225(e), to determine if any of the
products made in the production
40 See
EAPA Scope Inquiry Initiation.
Appendix.
42 See Petitioner’s Request at 21–30.
41 See
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scenarios described by the petitioner are
covered by the scope of the Orders.
Notification to Interested Parties
This notice is published in
accordance with sections 781(b) of the
Act and 19 CFR 351.225(e) and (h).
Dated: June 9, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
khammond on DSKJM1Z7X2PROD with NOTICES
Appendix—Scope of the Orders
The merchandise covered by the Orders is
hardwood and decorative plywood, and
certain veneered panels as described below.
For purposes of this proceeding, hardwood
and decorative plywood is defined as a
generally flat, multilayered plywood or other
veneered panel, consisting of two or more
layers or plies of wood veneers and a core,
with the face and/or back veneer made of
non-coniferous wood (hardwood) or bamboo.
The veneers, along with the core may be
glued or otherwise bonded together.
Hardwood and decorative plywood may
include products that meet the American
National Standard for Hardwood and
Decorative Plywood, ANSI/HPVA HP–1–
2016 (including any revisions to that
standard).
For purposes of the Orders, a ‘‘veneer’’ is
a slice of wood regardless of thickness which
is cut, sliced or sawed from a log, bolt, or
flitch. The face and back veneers are the
outermost veneer of wood on either side of
the core irrespective of additional surface
coatings or covers as described below.
The core of hardwood and decorative
plywood consists of the layer or layers of one
or more material(s) that are situated between
the face and back veneers. The core may be
composed of a range of materials, including
but not limited to hardwood, softwood,
particleboard, or medium-density fiberboard
(MDF).
All hardwood plywood is included within
the scope of the Orders regardless of whether
or not the face and/or back veneers are
surface coated or covered and whether or not
such surface coating(s) or covers obscures the
grain, textures, or markings of the wood.
Examples of surface coatings and covers
include, but are not limited to: Ultra violet
light cured polyurethanes; oil or oil-modified
or water based polyurethanes; wax; epoxyester finishes; moisture-cured urethanes;
paints; stains; paper; aluminum; high
pressure laminate; MDF; medium density
overlay (MDO); and phenolic film.
Additionally, the face veneer of hardwood
plywood may be sanded; smoothed or given
a ‘‘distressed’’ appearance through such
methods as hand-scraping or wire brushing.
All hardwood plywood is included within
the scope even if it is trimmed; cut-to-size;
notched; punched; drilled; or has underwent
other forms of minor processing.
All hardwood and decorative plywood is
included within the scope of the Orders,
without regard to dimension (overall
thickness, thickness of face veneer, thickness
of back veneer, thickness of core, thickness
of inner veneers, width, or length). However,
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the most common panel sizes of hardwood
and decorative plywood are 1,219 x 1,829
mm (48 x 72 inches), 1,219 x 2,438 mm (48
x 96 inches), and 1,219 x 3,048 mm (48 x 120
inches).
Subject merchandise also includes
hardwood and decorative plywood that has
been further processed in a third country,
including but not limited to trimming,
cutting, notching, punching, drilling, or any
other processing that would not otherwise
remove the merchandise from the scope of
the Orders if performed in the country of
manufacture of the in-scope product.
The scope of the orders excludes the
following items: (1) Structural plywood (also
known as ‘‘industrial plywood’’ or
‘‘industrial panels’’) that is manufactured to
meet U.S. Products Standard PS 1–09, PS 2–
09, or PS 2–10 for Structural Plywood
(including any revisions to that standard or
any substantially equivalent international
standard intended for structural plywood),
and which has both a face and a back veneer
of coniferous wood; (2) products which have
a face and back veneer of cork; (3)
multilayered wood flooring, as described in
the antidumping duty and countervailing
duty orders on Multilayered Wood Flooring
from the People’s Republic of China, Import
Administration, International Trade
Administration. See Multilayered Wood
Flooring from the People’s Republic of China,
76 FR 76690 (December 8, 2011) (amended
final determination of sales at less than fair
value and antidumping duty order), and
Multilayered Wood Flooring from the
People’s Republic of China, 76 FR 76693
(December 8, 2011) (countervailing duty
order), as amended by Multilayered Wood
Flooring from the People’s Republic of China:
Amended Antidumping and Countervailing
Duty Orders, 77 FR 5484 (February 3, 2012);
(4) multilayered wood flooring with a face
veneer of bamboo or composed entirely of
bamboo; (5) plywood which has a shape or
design other than a flat panel, with the
exception of any minor processing described
above; (6) products made entirely from
bamboo and adhesives (also known as ‘‘solid
bamboo’’); and (7) Phenolic Film Faced
Plyform (PFF), also known as Phenolic
Surface Film Plywood (PSF), defined as a
panel with an ‘‘Exterior’’ or ‘‘Exposure 1’’
bond classification as is defined by The
Engineered Wood Association, having an
opaque phenolic film layer with a weight
equal to or greater than 90g/m3 permanently
bonded on both the face and back veneers
and an opaque, moisture resistant coating
applied to the edges.
Excluded from the scope of the orders are
wooden furniture goods that, at the time of
importation, are fully assembled and are
ready for their intended uses. Also excluded
from the scope of the Orders is ‘‘ready to
assemble’’ (RTA) furniture. RTA furniture is
defined as (A) furniture packaged for sale for
ultimate purchase by an end-user that, at the
time of importation, includes (1) all wooden
components (in finished form) required to
assemble a finished unit of furniture, (2) all
accessory parts (e.g., screws, washers,
dowels, nails, handles, knobs, adhesive
glues) required to assemble a finished unit of
furniture, and (3) instructions providing
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Fmt 4703
Sfmt 4703
guidance on the assembly of a finished unit
of furniture; (B) unassembled bathroom
vanity cabinets, having a space for one or
more sinks, that are imported with all
unassembled hardwood and hardwood
plywood components that have been cut-tofinal dimensional component shape/size,
painted or stained prior to importation, and
stacked within a singled shipping package,
except for furniture feet which may be
packed and shipped separately; or (C)
unassembled bathroom vanity linen closets
that are imported with all unassembled
hardwood and hardwood plywood
components that have been cut-to-final
dimensional shape/size, painted or stained
prior to importation, and stacked within a
single shipping package, except for furniture
feet which may be packed and shipped
separately.
Excluded from the scope of the orders are
kitchen cabinets that, at the time of
importation, are fully assembled and are
ready for their intended uses. Also excluded
from the scope of the Orders are RTA kitchen
cabinets. RTA kitchen cabinets are defined as
kitchen cabinets packaged for sale for
ultimate purchase by an end-user that, at the
time of importation, includes (1) all wooden
components (in finished form) required to
assemble a finished unit of cabinetry, (2) all
accessory parts (e.g., screws, washers,
dowels, nails, handles, knobs, hooks,
adhesive glues) required to assemble a
finished unit of cabinetry, and (3)
instructions providing guidance on the
assembly of a finished unit of cabinetry.
Excluded from the scope of the orders are
finished table tops, which are table tops
imported in finished form with pre-cut or
drilled openings to attach the underframe or
legs. The table tops are ready for use at the
time of import and require no further
finishing or processing.
Excluded from the scope of the orders are
finished countertops that are imported in
finished form and require no further
finishing or manufacturing.
Excluded from the scope of the orders are
laminated veneer lumber door and window
components with (1) a maximum width of 44
millimeters, a thickness from 30 millimeters
to 72 millimeters, and a length of less than
2,413 millimeters (2) water boiling point
exterior adhesive, (3) a modulus of elasticity
of 1,500,000 pounds per square inch or
higher, (4) finger-jointed or lap-jointed core
veneer with all layers oriented so that the
grain is running parallel or with no more
than 3 dispersed layers of veneer oriented
with the grain running perpendicular to the
other layers; and (5) top layer machined with
a curved edge and one or more profile
channels throughout.
Imports of hardwood plywood are
primarily entered under the following
Harmonized Tariff Schedule of the United
States (HTSUS) subheadings: 4412.10.0500;
4412.31.0520; 4412.31.0540; 4412.31.0560;
4412.31.0620; 4412.31.0640; 4412.31.0660;
4412.31.2510; 4412.31.2520; 4412.31.2610;
4412.31.2620; 4412.31.4040; 4412.31.4050;
4412.31.4060; 4412.31.4075; 4412.31.4080;
4412.31.4140; 4412.31.4150; 4412.31.4155;
4412.31.4160; 4412.31.4180; 4412.31.5125;
4412.31.5135; 4412.31.5155; 4412.31.5165;
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Federal Register / Vol. 85, No. 117 / Wednesday, June 17, 2020 / Notices
4412.31.5175; 4412.31.5235; 4412.31.5255;
4412.31.5265; 4412.31.5275; 4412.31.6000;
4412.31.6100; 4412.31.9100; 4412.31.9200;
4412.32.0520; 4412.32.0540; 4412.32.0565;
4412.32.0570; 4412.32.0620; 4412.32.0640;
4412.32.0670; 4412.32.2510; 4412.32.2525;
4412.32.2530; 4412.32.2610; 4412.32.2630;
4412.32.3125; 4412.32.3135; 4412.32.3155;
4412.32.3165; 4412.32.3175; 4412.32.3185;
4412.32.3235; 4412.32.3255; 4412.32.3265;
4412.32.3275; 4412.32.3285; 4412.32.5600;
4412.32.3235; 4412.32.3255; 4412.32.3265;
4412.32.3275; 4412.32.3285; 4412.32.5700;
4412.33.0620; 4412.33.0640; 4412.33.0670;
4412.33.2630; 4412.33.3235; 4412.33.3255;
4412.33.3265; 4412.33.3275; 4412.33.3285;
4412.33.5700; 4412.34.2600; 4412.34.3235;
4412.34.3255; 4412.34.3265; 4412.34.3275;
4412.34.3285; 4412.34.5700; 4412.39.1000;
4412.39.3000; 4412.39.4011; 4412.39.4012;
4412.39.4019; 4412.39.4031; 4412.39.4032;
4412.39.4039; 4412.39.4051; 4412.39.4052;
4412.39.4059; 4412.39.4061; 4412.39.4062;
4412.39.4069; 4412.39.5010; 4412.39.5030;
4412.39.5050; 4412.94.1030; 4412.94.1050;
4412.94.3105; 4412.94.3111; 4412.94.3121;
4412.94.3141; 4412.94.3161; 4412.94.3175;
4412.94.4100; 4412.99.0600; 4412.99.1020;
4412.99.1030; 4412.99.1040; 4412.99.3110;
4412.99.3120; 4412.99.3130; 4412.99.3140;
4412.99.3150; 4412.99.3160; 4412.99.3170;
4412.99.4100; 4412.99.5115; and
4412.99.5710.
Imports of hardwood plywood may also
enter under HTSUS subheadings
4412.10.9000; 4412.94.5100; 4412.94.9500;
4412.99.6000; 4412.99.7000; 4412.99.8000;
4412.99.9000; 4412.99.9500; 9403.90.7005;
9403.90.7010; and 9403.90.7080. While the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of these
orders is dispositive.
[FR Doc. 2020–13075 Filed 6–16–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XA207]
Fisheries of the Gulf of Mexico;
Southeast Data, Assessment, and
Review (SEDAR); Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of a public meeting.
AGENCY:
The SEDAR 70 stock
assessment process for Gulf of Mexico
greater amberjack will consist of a series
of data and assessment webinars. See
SUPPLEMENTARY INFORMATION.
DATES: The SEDAR 70 Assessment
Webinar I for Gulf of Mexico greater
amberjack will be held July 2, 2020,
from 1 p.m. to 3 p.m., Eastern Time.
ADDRESSES:
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:44 Jun 16, 2020
Jkt 250001
Meeting address: The meeting will be
held via webinar. The webinar is open
to members of the public. Those
interested in participating should
contact Julie A. Neer at SEDAR (See
Contact Information Below) to request
an invitation providing webinar access
information. Please request webinar
invitations at least 24 hours in advance
of each webinar.
SEDAR address: 4055 Faber Place
Drive, Suite 201, North Charleston, SC
29405.
Julie
A. Neer, SEDAR Coordinator; (843) 571–
4366; email: Julie.neer@safmc.net.
FOR FURTHER INFORMATION CONTACT:
The Gulf
of Mexico, South Atlantic, and
Caribbean Fishery Management
Councils, in conjunction with NOAA
Fisheries and the Atlantic and Gulf
States Marine Fisheries Commissions
have implemented the Southeast Data,
Assessment and Review (SEDAR)
process, a multi-step method for
determining the status of fish stocks in
the Southeast Region. SEDAR is a multistep process including: (1) Data
Workshop, (2) a series of assessment
webinars, and (3) A Review Workshop.
The product of the Data Workshop is a
report that compiles and evaluates
potential datasets and recommends
which datasets are appropriate for
assessment analyses. The assessment
webinars produce a report that describes
the fisheries, evaluates the status of the
stock, estimates biological benchmarks,
projects future population conditions,
and recommends research and
monitoring needs. The product of the
Review Workshop is an Assessment
Summary documenting panel opinions
regarding the strengths and weaknesses
of the stock assessment and input data.
Participants for SEDAR Workshops are
appointed by the Gulf of Mexico, South
Atlantic, and Caribbean Fishery
Management Councils and NOAA
Fisheries Southeast Regional Office,
HMS Management Division, and
Southeast Fisheries Science Center.
Participants include data collectors and
database managers; stock assessment
scientists, biologists, and researchers;
constituency representatives including
fishermen, environmentalists, and
NGO’s; International experts; and staff
of Councils, Commissions, and state and
federal agencies.
The items of discussion during the
Assessment Webinar are as follows:
1. Using datasets and initial
assessment analysis recommended from
the data webinars, panelists will employ
assessment models to evaluate stock
status, estimate population benchmarks
SUPPLEMENTARY INFORMATION:
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36535
and management criteria, and project
future conditions.
2. Participants will recommend the
most appropriate methods and
configurations for determining stock
status and estimating population
parameters.
Although non-emergency issues not
contained in this agenda may come
before this group for discussion, those
issues may not be the subject of formal
action during this meeting. Action will
be restricted to those issues specifically
identified in this notice and any issues
arising after publication of this notice
that require emergency action under
section 305(c) of the Magnuson-Stevens
Fishery Conservation and Management
Act, provided the public has been
notified of the intent to take final action
to address the emergency.
Special Accommodations
The meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to the
Council office (see ADDRESSES) at least 5
business days prior to each workshop.
NOTE: The times and sequence
specified in this agenda are subject to
change.
Authority: 16 U.S.C. 1801 et seq.
Dated: June 12, 2020.
Tracey L. Thompson,
Acting Deputy Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2020–13007 Filed 6–16–20; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XQ011]
Permits; Foreign Fishing
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of application for
transshipment permit; request for
comments.
AGENCY:
NMFS publishes for public
review and comment information
regarding a permit application for
transshipment of farmed salmon from
aquaculture operations in Maine to
processing plants in Canada by
Canadian flagged vessels. The
application for a transshipment permit
is submitted under provisions of the
Magnuson-Stevens Fishery
Conservation and Management Act
SUMMARY:
E:\FR\FM\17JNN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 117 (Wednesday, June 17, 2020)]
[Notices]
[Pages 36530-36535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13075]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-051, C-570-052]
Certain Hardwood Plywood Products From the People's Republic of
China: Initiation of Anti-Circumvention Inquiries and Scope Inquiries
on the Antidumping Duty and Countervailing Duty Orders; Vietnam
Assembly
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to allegations of circumvention from the Coalition
for Fair Trade in Hardwood Plywood (the petitioner), the Department of
Commerce (Commerce) is initiating country-wide anti-circumvention
inquiries to determine whether certain hardwood plywood products
(plywood) completed in Vietnam using plywood components (face veneer,
back veneer, and/or either an assembled core or individual core
veneers) manufactured in the People's Republic of China (China), or
Chinese components (assembled cores, multi-ply core panels, or
individual core veneers) combined in Vietnam with other components
(face and/or back veneers) manufactured in Vietnam or third countries,
are circumventing the antidumping duty (AD) and countervailing duty
(CVD) orders on plywood from China. We are also initiating scope
inquiries to determine whether any of the products produced under
various production scenarios alleged by the petitioner are covered by
the scope of the AD/CVD orders on plywood from China. Finally, we are
aligning the deadline for the scope inquiries associated with a covered
merchandise referral from U.S. Customs and Border Protection (CBP)
under the Enforce and Protect Act of 2015 (EAPA) with the
anticircumvention inquiries.
DATES: Applicable June 17, 2020.
FOR FURTHER INFORMATION CONTACT: Kabir Archuletta, AD/CVD Operations,
Office V, Enforcement & Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230, telephone: (202) 482-2593.
SUPPLEMENTARY INFORMATION:
Background
On January 4, 2018, Commerce issued AD and CVD orders on plywood
from China.\1\ On September 16, 2019, Commerce received an EAPA covered
merchandise referral from CBP.\2\ On January 17, 2020, Commerce
published a notice of initiation of scope inquiries related to this
referral in order to determine whether plywood produced by Vietnam
Finewood Company Limited from China-origin materials are covered
merchandise subject to the Orders.\3\
---------------------------------------------------------------------------
\1\ See Certain Hardwood Plywood Products from the People's
Republic of China: Amended Final Determination of Sales at Less Than
Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018);
and Certain Hardwood Plywood Products from the People's Republic of
China: Countervailing Duty Order, 83 FR 513 (January 4, 2018)
(collectively, Orders).
\2\ See Certain Hardwood Plywood from the People's Republic of
China: Notice of Covered Merchandise Referral and Initiation of
Scope Inquiry, 85 FR 3024 (January 17, 2020) (EAPA Scope Inquiry
Initiation).
\3\ Id.
---------------------------------------------------------------------------
On February 25, 2020, pursuant to section 781(b) of the Tariff Act
of 1930, as amended (the Act) and 19 CFR 351.225(c) and (h), the
petitioner requested that Commerce issue a scope ruling, or in the
alternative, an anti-circumvention ruling, that plywood completed in
Vietnam using plywood components manufactured in China, and imported
into the United States as Vietnamese-origin plywood, are either within
the scope of the Orders or are circumventing the Orders. Specifically,
the petitioner alleged that Chinese plywood components are undergoing
minor assembly and finishing in Vietnam that does not remove the
merchandise from coverage of the Orders, and that these products are
entering the United States as Vietnamese-origin plywood for the express
purpose of avoiding AD/CVD duties. In the alternative to a scope
ruling, the petitioner requested that Commerce find that these products
constitute merchandise completed or assembled in a third country that
is circumventing, and should be included within, the scope of the
Orders.\4\
---------------------------------------------------------------------------
\4\ See Petitioner's Letter, ``Certain Hardwood Plywood Products
from the People's Republic of China: Request for Scope Ruling/Anti-
Circumvention Ruling,'' dated February 25, 2020 (Petitioner's
Request).
---------------------------------------------------------------------------
On March 4, 2020, Commerce accepted the petitioner's scope-ruling
and circumvention-ruling request and established deadlines for
interested parties to provide comments.\5\ Between March 18, 2020 and
May 1, 2020, we received comments from interested parties in response
to the allegations made by the petitioner.\6\
---------------------------------------------------------------------------
\5\ See Memorandum, ``Certain Hardwood Plywood Products from the
People's Republic of China: Deadline for Comments on the Vietnam
Assembly Scope Ruling Request,'' dated March 4, 2020.
\6\ See Vietnam Timber and Forest Product Association's Letter,
``Certain Hardwood Plywood Products from the People's Republic of
China: Response Comments to Scope/Anti-Circumvention Inquiry
Requests,'' dated March 18, 2020; see also Truong Son Industrial
Wood JSC's Letter, ``The Petitioner's Request for Determining Range
of Products/Anti-Circumvention Investigation into Certain Hardwood
Plywood Products,'' dated March 20, 2020; VietBac Plywood JSC and
Plywood Source LLC's Letter, ``Certain Hardwood Plywood Products
from the People's Republic of China: Response Comments to Scope/
Anti-Circumvention Inquiry Requests,'' dated March 20, 2020; TL
Trung Viet Co., Ltd.'s Letter, ``Letter of Request to Consider about
Tax Imposition,'' dated March 20, 2020; Thanh Hoa Wood Industry Co.,
Ltd.'s Letter, ``The Petitioner's Request for Determining Range of
Products/Anti-Circumvention Investigation into Certain Hardwood
Plywood Products,'' dated March 20, 2020; DH Respondent Letter,
``Hardwood Plywood from the People's Republic of China: Comments to
Petitioner's Request for Scope/Anti-Circumvention Inquiry,'' dated
March 20, 2020; Importers Alliance's Letter, ``Investigation of the
Antidumping and Countervailing Duty Orders on Hardwood Plywood
Products from the People's Republic of China, Scope-Vietnam
Assembly: Objection to Request for Scope and Anti-Circumvention
Inquiry,'' dated March 20, 2020; Vietnam Ministry of Industry and
Trade's Letter, ``The Petitioner's Request for Scope of Ruling/Anti-
Circumvention Ruling for Hardwood Plywood Products,'' dated March
25, 2020; and Ike Trading Co., Ltd.'s Letter, ``Certain Hardwood
Plywood Products from the People's Republic of China: Resubmission
of Ike Trading's Scope Comments,'' dated May 1, 2020.
---------------------------------------------------------------------------
On April 14, 2020, Commerce extended the deadline for either
issuing a final scope and/or anti-circumvention ruling or initiating a
formal scope and/or anti-circumvention inquiry to June 2, 2020.\7\ On
May 8, 2020, we requested additional information from the
petitioner,\8\ and on May 13, 2020, the petitioner submitted its
response to this request.\9\ In this response, the petitioner requested
that Commerce expand its inquiry to determine whether plywood assembled
in Vietnam from mainly Chinese components, but also including face and/
or back veneers from Vietnam or third countries, are within the scope
or are circumventing the Orders.\10\
---------------------------------------------------------------------------
\7\ See Commerce's Letter, ``Certain Hardwood Plywood Products
from the People's Republic of China: Extension of Deadline,'' dated
April 14, 2020.
\8\ See Commerce's Letter, ``Certain Hardwood Plywood from the
People's Republic of China: Clarification of Scope Ruling/
Anticircumvention Ruling Request,'' dated May 8, 2020.
\9\ See Petitioner's Letter, ``Hardwood Plywood Products from
the People's Republic of China: Coalition's Response to Request for
Clarification,'' dated May 12, 2020 (Petitioner's Clarification).
\10\ Id.
---------------------------------------------------------------------------
On June 2, 2020, we again extended the deadline to either issue a
final scope and/or anti-circumvention ruling or
[[Page 36531]]
initiate a formal scope and/or anti-circumvention inquiry to June 9,
2020.\11\
---------------------------------------------------------------------------
\11\ See Commerce's Letter, ``Certain Hardwood Plywood Products
from the People's Republic of China: Extension of Deadline,'' dated
June 2, 2020.
---------------------------------------------------------------------------
Scope of the Orders
The product covered by the Orders is hardwood and decorative
plywood from China. For a complete description of the scope of the
orders, see Appendix.
Merchandise Subject to the Anti-Circumvention Inquiries
These anti-circumvention inquiries cover plywood completed in
Vietnam using plywood components (face veneer, back veneer, and/or
either an assembled core or individual core veneers) manufactured in
China, or Chinese components (assembled cores, multi-ply core panels,
or individual core veneers) combined in Vietnam with other components
(face and/or back veneers) manufactured in Vietnam or third countries,
and subsequently exported to the United States.\12\
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\12\ Specifically, these inquiries will cover plywood completed
in Vietnam using: (1) Face veneer, back veneer, and assembled core
components manufactured in China; and (2) face veneer, back veneer,
and individual core veneers produced in China. Additionally, these
inquiries will also examine, should such production scenarios exist,
plywood completed in Vietnam using: (1) Fully assembled veneer core
platforms manufactured in China and face and/or back veneers
produced in Vietnam or third countries; (2) multi-ply panels of
glued core veneers manufactured in China that are combined in
Vietnam to produce veneer core platforms and combined with either a
face and/or back veneer produced in China, Vietnam, or a third
country; and (3) core veneers manufactured in China and processed
into a veneer core platform in Vietnam and combined with a face and/
or back veneer produced in Vietnam or other third country. A veneer
core platform is defined as two or more wood veneers that form the
core of an otherwise completed hardwood plywood product (i.e., a
hardwood plywood product to which the outer (face and back) veneers
have not yet been affixed (see Petitioner's Request at Exhibit 11).
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Initiation of Anti-Circumvention Inquiry Proceedings
Section 781(b) of the Act and 19 CFR 351.225(h) provide that
Commerce may find circumvention of an AD or CVD order when merchandise
of the same class or kind subject to the order is completed or
assembled in another foreign country before being exported to the
United States. In conducting anti-circumvention inquiries under section
781(b)(1) of the Act, Commerce relies upon the following criteria: (A)
Merchandise imported into the United States is of the same class or
kind as merchandise produced in a foreign country that is the subject
of an AD or CVD order or finding; (B) before importation into the
United States, such imported merchandise is completed or assembled in
another foreign country from merchandise which is produced in the
foreign country that is subject to the order; (C) the process of
assembly or completion in another foreign country is minor or
insignificant; (D) the value of the merchandise produced in the foreign
country to which the AD or CVD order applies is a significant portion
of the total value of the merchandise exported to the United States;
and (E) Commerce determines that action is appropriate to prevent
evasion of such order or finding. As discussed below, the petitioner
provides evidence with respect to these criteria.
A. Merchandise of the Same Class or Kind
The petitioner states that, pursuant to section 781(b)(1)(A) of the
Act, the inquiry merchandise being completed in Vietnam and imported
into the United States is of the same class or kind as the merchandise
subject to the Orders.\13\ The petitioner further argues that the
products being completed in Vietnam are identical to the subject
merchandise produced in China and are entering the United States under
the same Harmonized Tariff Schedule subheadings as subject plywood from
China.\14\
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\13\ See Petitioner's Request at 33-34.
\14\ Id. According to the petitioner, the main components of
plywood include face and back veneers, and/or either an assembled
core or individual core veneers.
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B. Completion of Merchandise in Another Foreign Country
The petitioner contends that section 781(b)(1)(B)(ii) of the Act
covers the completion of plywood in Vietnam, because the main
components in the production of plywood are manufactured in China, the
country to which the Orders apply.\15\ The petitioner also asserts that
fully- or partially-assembled cores, or individual core veneers,
produced in China that are combined in Vietnam with face and/or back
veneers produced in Vietnam or a third country should be covered by the
Orders; according to the petitioner, the vast majority of the cost of
the finished plywood, in terms of materials, labor, and investment, is
related to the production of the Chinese components (including core
veneers in particular).\16\
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\15\ Id. at 34-35.
\16\ See Petitioner's Clarification at 2-6.
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C. Minor or Insignificant Process
Under sections 781(b)(1)(C) and 781(b)(2) of the Act, Commerce will
take into account five factors to determine whether the process of
assembly or completion of merchandise in other foreign countries is
minor or insignificant. Specifically, Commerce will consider: (A) The
level of investment in the foreign country; (B) the level of research
and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether the value of
processing performed in the foreign country represents a small portion
of the value of the merchandise imported into the United States.
However, no single factor, by itself, controls Commerce's determination
of whether the process of assembly or completion in a third country is
minor or insignificant.\17\ Accordingly, it is Commerce's practice to
evaluate each of these five factors as they exist in the third country,
depending on the totality of the circumstances of the particular anti-
circumvention inquiry.\18\
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\17\ See Statement of Administrative Action accompanying the
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316, vol. 1
(1994) at 893.
\18\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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1. Level of Investment in the Foreign Country
The petitioner states that, based on the production steps that are
occurring in China and Vietnam, the relative investment in Vietnam for
the assembly operations at issue is likely minimal. According to the
petitioner, with respect to the plywood produced solely from wooden
components of Chinese origin, the circumvention involves assembling
face and back veneers and/or a core (assembled or individual core
veneers) that were manufactured in China, which accounts for the vast
majority of the cost of production for plywood. The petitioner asserts
that the vast majority of the production process, up through the
production of the wooden veneers, occurs in China, and that these parts
of the production process require more complex equipment, as well as
much more plant space, than the later production processes that occur
in Vietnam.
With respect to the plywood assembled in Vietnam from Chinese
components and non-Chinese face and/or back veneers, the petitioner
claims that the cost and production related to the face and back
veneers is minimal relative to the production of core veneers. In
particular, the petitioner claims that the majority of the veneers in
any given plywood product are used
[[Page 36532]]
for the core while the face and back veneers each constitute only a
single veneer.\19\ Therefore, the petitioner contends that, to the
extent that Commerce examines production scenarios described above that
involve a combination of assembled cores, or individual core veneers,
produced in China and face/back veneers produced in Vietnam or third
countries, the cost, production, and value remains in the Chinese
components (and in the core veneers in particular). As a result, the
petitioner maintains that the minor processing that occurs in Vietnam
also likely requires a minimal investment in Vietnam.\20\
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\19\ See Petitioner's Clarification at 5-6.
\20\ See Petitioner's Request at 36-37; see also Petitioner's
Clarification at 9-10 and Exhibits 1 and 3.
---------------------------------------------------------------------------
2. Level of Research and Development in the Foreign Country
The petitioner states that there is likely no research and
development occurring in Vietnam because in some cases the Vietnamese
producers are just completing the end of the plywood production
process. The petitioner asserts that, while the research and
development required for setting up a production facility for plywood
in China would be substantial, the level of research and development,
if any, required for setting up an assembly facility in Vietnam would
be very minimal.\21\ The petitioner estimates that, for a fully
integrated facility, approximately 90 percent of the research and
development costs would relate to veneer production, with the vast
majority of the veneers used for the core, while only 10 percent of the
research and development costs would relate to assembly operations.\22\
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\21\ See Petitioner's Request at 38; see also Petitioner's
Clarification at 10-11 and Exhibits 1 and 3.
\22\ See Petitioner's Clarification at 11 and Exhibit 3.
---------------------------------------------------------------------------
3. Nature of the Production Process in the Foreign Country
The petitioner states that the process in Vietnam to complete the
assembly of Chinese face and back veneers and Chinese core into
plywood, or to apply Vietnamese or third-country face and back veneers
to a Chinese core, or core veneers, involves very minimal processing
compared to the production steps in China. The production steps that
occur in China entail the majority and most significant portion of the
production process (i.e., the production of wooden veneers from logs,
the vast majority of which are used for the core). The petitioner
asserts that in certain cases the only production steps occurring in
Vietnam are the layup of the veneers as necessary, and the application
of glue and the assembly of the veneers using a cold and hot press, as
well as any final trimming, sanding, and/or finishing.\23\ Moreover,
the petitioner asserts that adding additional veneers to an in-scope
veneer core is minor further processing that does not move the
completed merchandise out of the scope.\24\
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\23\ See Petitioner's Request at 38-39.
\24\ See Petitioner's Clarification at 4.
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4. Extent of Production Facilities in the Foreign Country
According to the petitioner, the extent of the facilities in
Vietnam is necessarily limited because the companies in Vietnam are
simply assembling into finished plywood the face and back veneers and/
or the core (assembled core or individual core veneers), which are
manufactured by Chinese producers. Moreover, the petitioner cites
information indicating that there has been no increase in production
facilities in Vietnam, despite the massive increase in exports of
plywood to the United States.\25\ The petitioner also explains that the
production facilities required for veneer production, with the vast
majority of the veneers used for the core, are substantial compared to
those required to assemble face and back veneers and cores (assembled
core or individual core veneers).\26\
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\25\ Id. at 40; see also Petitioner's Clarification at 12-13 and
Exhibits 1 and 4.
\26\ See Petitioner's Clarification at 12-13 and Exhibits 1 and
4.
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5. Value of Processing Performed in the Foreign Country
The petitioner asserts that the value of processing in Vietnam
represents a minority of the value of the merchandise imported into the
United States. According to the petitioner, the production steps that
take place in China make up the most significant portion of the
production process and the cost of goods sold (COGS) for the plywood.
The petitioner also cites to the investigation by the U.S.
International Trade Commission (ITC), which found that the percentage
of COGS accounted for by raw materials alone ranged from 78.8 percent
to 79.4 percent from 2014 through 2016, and that the major raw material
costs are the veneer, with the vast majority of the veneers used for
the core, and other plywood used in the production of plywood.\27\
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\27\ See Petitioner's Request at 41.
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The petitioner also provided proprietary data to demonstrate that
the most significant portion of the production costs is incurred in
China from the production of veneers, and that a very small proportion
of the value is accounted for by the assembly of the veneers in
Vietnam.\28\ The petitioner stated that, to the extent that assembled
cores, or individual core veneers, produced in China that are being
combined with Vietnam or third-country origin face/back veneers, the
cost and production related to the face/back veneers is minimal
relative to the production of core veneers and, thus, the vast majority
of the cost, production, and value would still remain with the core
veneers.\29\
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\28\ Id. at 42.
\29\ See Petitioner's Clarification at 5-6.
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D. Value of Merchandise Produced in the Foreign Country Is a
Significant Portion of the Value of the Merchandise
The petitioner emphasizes that the overwhelming majority of the
production and costs are accounted for by the raw materials (i.e., the
wooden veneers and core that are produced in China and shipped to
Vietnam for assembly). According to the petitioner, this demonstrates
that the value of the merchandise produced in China, which include the
face veneer, back veneer, and/or core (assembled or individual core
veneers), accounts for a significant portion of the total value of the
merchandise ultimately exported to the United States.\30\
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\30\ Id. at 44.
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As noted above, the petitioner stated that, for plywood made from
core veneers produced in China and further processed and combined with
face and/or back veneers produced in Vietnam or a third country, the
vast majority of the value of the merchandise exported remains in the
core veneers from China.\31\
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\31\ See Petitioner's Clarification at 5-6.
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E. Factors To Consider in Determining Whether Action Is Necessary
Section 781(b)(1)(E) of the Act states that Commerce will determine
whether action is appropriate to prevent evasion of an AD or CVD order,
and section 781(b)(3) of the Act identifies additional factors that
Commerce shall consider in determining whether to include parts or
components in an AD or CVD order as part of an anti-circumvention
inquiry, including: (A) The pattern of trade, including sourcing
patterns; (B) whether the manufacturer or exporter of the merchandise
described in section 781(b)(1)(B) of the Act is affiliated with the
person who uses the merchandise described in (1)(B) to assemble or
complete in the foreign country the
[[Page 36533]]
merchandise that is subsequently imported in the United States; and (C)
whether imports into the foreign country of the merchandise described
in (1)(B) have increased after initiation of the investigation which
resulted in the issuance of such order or finding.
1. Pattern of Trade
The petitioner argues that the pattern of trade demonstrates
circumvention of the Orders.\32\ The petitioner asserts that, since the
investigations and imposition of the Orders, Chinese exports of plywood
to the United States have decreased substantially. The petitioner
further states that U.S imports of plywood from Vietnam have increased
by approximately 950 percent while Chinese exports of plywood to
Vietnam have effectively doubled since 2015. In addition, trade data
submitted by the petitioner indicate that Chinese exports of wood
veneers to Vietnam have increased by more than 350 percent over the
same period.\33\ The petitioner also points out that the Vietnamese
government not only has recognized the nature of these trade trends,
but it also suspects that the surge in exports of plywood products to
the United States from Vietnam is a result of Chinese companies
improperly seeking to avoid tariffs.\34\
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\32\ See Petitioner's Request at 46-47.
\33\ See Petitioner's Clarification at Exhibit 2.
\34\ See Petitioner's Request at 46-47.
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2. Affiliation
The petitioner asserts that it has reason to believe that some of
the Chinese producers/exporters and Vietnamese assembly operators are
affiliated. It argues that importers that previously imported Chinese
plywood to the United States are now importing significant quantities
of plywood from Vietnam from certain Vietnamese producers/exporters.
The petitioner claims that this suggests that there may be a
relationship between the prior Chinese producers/exporters and the
entities that are now importing from Vietnam.\35\
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\35\ Id. at 48.
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3. Subsequent Import Volume
The petitioner presents evidence indicating that Chinese exports of
plywood to the United States have decreased substantially since the
implementation of the Orders.\36\ The evidence also shows that U.S
imports of plywood from Vietnam have skyrocketed since 2015, increasing
by approximately 950 percent. At the same time, Chinese exports of
plywood to Vietnam have doubled.
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\36\ Id. at 49.
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Conclusion
Based on the available information provided by the petitioner, we
determine that there is sufficient basis to initiate anti-circumvention
inquiries, pursuant to section 781(b) of the Act and 19 CFR 351.225(h).
Commerce will determine whether the merchandise subject to the
inquiries (as described in the ``Merchandise Subject to the Anti-
Circumvention Inquiry'' section supra) is circumventing the Orders such
that it should be considered to be within the scope of the Orders.
We find that the available information warrants initiating these
anti-circumvention inquiries on a country-wide basis.\37\ Commerce has
taken this approach in prior anti-circumvention inquiries, where the
facts warranted initiation on a country-wide basis.\38\ Consistent with
the approach in these prior anti-circumvention inquiries initiated on a
country-wide basis, Commerce intends to request comments from
interested parties regarding respondent selection and to issue
questionnaires to solicit information from producers and exporters in
Vietnam concerning their shipments of plywood to the United States and
the origin of any plywood components being processed into completed
plywood. A company's failure to respond completely and timely to
Commerce's requests for information may result in the application of
partial or total facts available, pursuant to section 776(a) of the
Act, which may include adverse inferences, pursuant to section 776(b)
of the Act.
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\37\ Id. at Exhibit 6.
\38\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China: Initiation of Anti-Circumvention
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August
25, 2017) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted); and Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
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Additionally, as part of these anti-circumvention inquiries, we
intend to examine the scope inquiry requests filed by the petitioner
under 19 CFR 351.225(c), as discussed below.\39\ Our final findings in
these anti-circumvention inquiries will include a final finding with
regard to the scope inquiries to the extent that they determine whether
any of the production scenarios identified by the petitioner are
properly considered subject to the scope of the Orders. Additionally,
Commerce is aligning the deadline to issue a final determination in the
EAPA scope inquiries with the deadline associated with these anti-
circumvention inquiries.\40\
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\39\ See Petitioner's Request at 21-31.
\40\ See EAPA Scope Inquiry Initiation.
---------------------------------------------------------------------------
In accordance with 19 CFR 351.225(l)(2), if Commerce issues
preliminary affirmative determinations, we will instruct U.S. Customs
and Border Protection to suspend liquidation and require a cash deposit
of estimated duties, at the applicable rate, for each unliquidated
entry of the merchandise at issue, entered or withdrawn from warehouse
for consumption on or after the date of initiation of the inquiries.
Before issuance of any affirmative determination, Commerce intends
to notify the ITC of any proposed inclusion of the inquiry merchandise
under the scope of the Orders, in accordance with section 781(e)(1)(B)
of the Act. Pursuant to section 781(f) of the Act, Commerce intends to
issue its final determinations within 300 days of the date of
publication of this notice of initiation.
Initiation of Scope Inquiries
The scope of the Orders states that the scope ``includes hardwood
and decorative plywood that has been further processed in a third
country, including but not limited to trimming, cutting, notching,
punching, drilling, or any other processing that would not otherwise
remove the merchandise from the scope of the Orders if performed in the
country of manufacture of the in-scope product.'' \41\
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\41\ See Appendix.
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The petitioner requests that Commerce confirm that, where Chinese
producers and/or exporters are shipping the main components of plywood
that are manufactured in China, as explained above, to Vietnam for
assembly into completed plywood before being imported to the United
States, such further processing does not remove the merchandise from
the coverage of the Orders.\42\ Because the scope of the Orders
provides that certain types of further processing do not remove the
merchandise from the Orders, we find it appropriate to also initiate
scope inquiries, in accordance with 19 CFR 351.225(e), to determine if
any of the products made in the production
[[Page 36534]]
scenarios described by the petitioner are covered by the scope of the
Orders.
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\42\ See Petitioner's Request at 21-30.
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Notification to Interested Parties
This notice is published in accordance with sections 781(b) of the
Act and 19 CFR 351.225(e) and (h).
Dated: June 9, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Orders
The merchandise covered by the Orders is hardwood and decorative
plywood, and certain veneered panels as described below. For
purposes of this proceeding, hardwood and decorative plywood is
defined as a generally flat, multilayered plywood or other veneered
panel, consisting of two or more layers or plies of wood veneers and
a core, with the face and/or back veneer made of non-coniferous wood
(hardwood) or bamboo. The veneers, along with the core may be glued
or otherwise bonded together. Hardwood and decorative plywood may
include products that meet the American National Standard for
Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2016 (including any
revisions to that standard).
For purposes of the Orders, a ``veneer'' is a slice of wood
regardless of thickness which is cut, sliced or sawed from a log,
bolt, or flitch. The face and back veneers are the outermost veneer
of wood on either side of the core irrespective of additional
surface coatings or covers as described below.
The core of hardwood and decorative plywood consists of the
layer or layers of one or more material(s) that are situated between
the face and back veneers. The core may be composed of a range of
materials, including but not limited to hardwood, softwood,
particleboard, or medium-density fiberboard (MDF).
All hardwood plywood is included within the scope of the Orders
regardless of whether or not the face and/or back veneers are
surface coated or covered and whether or not such surface coating(s)
or covers obscures the grain, textures, or markings of the wood.
Examples of surface coatings and covers include, but are not limited
to: Ultra violet light cured polyurethanes; oil or oil-modified or
water based polyurethanes; wax; epoxy-ester finishes; moisture-cured
urethanes; paints; stains; paper; aluminum; high pressure laminate;
MDF; medium density overlay (MDO); and phenolic film. Additionally,
the face veneer of hardwood plywood may be sanded; smoothed or given
a ``distressed'' appearance through such methods as hand-scraping or
wire brushing. All hardwood plywood is included within the scope
even if it is trimmed; cut-to-size; notched; punched; drilled; or
has underwent other forms of minor processing.
All hardwood and decorative plywood is included within the scope
of the Orders, without regard to dimension (overall thickness,
thickness of face veneer, thickness of back veneer, thickness of
core, thickness of inner veneers, width, or length). However, the
most common panel sizes of hardwood and decorative plywood are 1,219
x 1,829 mm (48 x 72 inches), 1,219 x 2,438 mm (48 x 96 inches), and
1,219 x 3,048 mm (48 x 120 inches).
Subject merchandise also includes hardwood and decorative
plywood that has been further processed in a third country,
including but not limited to trimming, cutting, notching, punching,
drilling, or any other processing that would not otherwise remove
the merchandise from the scope of the Orders if performed in the
country of manufacture of the in-scope product.
The scope of the orders excludes the following items: (1)
Structural plywood (also known as ``industrial plywood'' or
``industrial panels'') that is manufactured to meet U.S. Products
Standard PS 1-09, PS 2-09, or PS 2-10 for Structural Plywood
(including any revisions to that standard or any substantially
equivalent international standard intended for structural plywood),
and which has both a face and a back veneer of coniferous wood; (2)
products which have a face and back veneer of cork; (3) multilayered
wood flooring, as described in the antidumping duty and
countervailing duty orders on Multilayered Wood Flooring from the
People's Republic of China, Import Administration, International
Trade Administration. See Multilayered Wood Flooring from the
People's Republic of China, 76 FR 76690 (December 8, 2011) (amended
final determination of sales at less than fair value and antidumping
duty order), and Multilayered Wood Flooring from the People's
Republic of China, 76 FR 76693 (December 8, 2011) (countervailing
duty order), as amended by Multilayered Wood Flooring from the
People's Republic of China: Amended Antidumping and Countervailing
Duty Orders, 77 FR 5484 (February 3, 2012); (4) multilayered wood
flooring with a face veneer of bamboo or composed entirely of
bamboo; (5) plywood which has a shape or design other than a flat
panel, with the exception of any minor processing described above;
(6) products made entirely from bamboo and adhesives (also known as
``solid bamboo''); and (7) Phenolic Film Faced Plyform (PFF), also
known as Phenolic Surface Film Plywood (PSF), defined as a panel
with an ``Exterior'' or ``Exposure 1'' bond classification as is
defined by The Engineered Wood Association, having an opaque
phenolic film layer with a weight equal to or greater than 90g/m3
permanently bonded on both the face and back veneers and an opaque,
moisture resistant coating applied to the edges.
Excluded from the scope of the orders are wooden furniture goods
that, at the time of importation, are fully assembled and are ready
for their intended uses. Also excluded from the scope of the Orders
is ``ready to assemble'' (RTA) furniture. RTA furniture is defined
as (A) furniture packaged for sale for ultimate purchase by an end-
user that, at the time of importation, includes (1) all wooden
components (in finished form) required to assemble a finished unit
of furniture, (2) all accessory parts (e.g., screws, washers,
dowels, nails, handles, knobs, adhesive glues) required to assemble
a finished unit of furniture, and (3) instructions providing
guidance on the assembly of a finished unit of furniture; (B)
unassembled bathroom vanity cabinets, having a space for one or more
sinks, that are imported with all unassembled hardwood and hardwood
plywood components that have been cut-to-final dimensional component
shape/size, painted or stained prior to importation, and stacked
within a singled shipping package, except for furniture feet which
may be packed and shipped separately; or (C) unassembled bathroom
vanity linen closets that are imported with all unassembled hardwood
and hardwood plywood components that have been cut-to-final
dimensional shape/size, painted or stained prior to importation, and
stacked within a single shipping package, except for furniture feet
which may be packed and shipped separately.
Excluded from the scope of the orders are kitchen cabinets that,
at the time of importation, are fully assembled and are ready for
their intended uses. Also excluded from the scope of the Orders are
RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen
cabinets packaged for sale for ultimate purchase by an end-user
that, at the time of importation, includes (1) all wooden components
(in finished form) required to assemble a finished unit of
cabinetry, (2) all accessory parts (e.g., screws, washers, dowels,
nails, handles, knobs, hooks, adhesive glues) required to assemble a
finished unit of cabinetry, and (3) instructions providing guidance
on the assembly of a finished unit of cabinetry.
Excluded from the scope of the orders are finished table tops,
which are table tops imported in finished form with pre-cut or
drilled openings to attach the underframe or legs. The table tops
are ready for use at the time of import and require no further
finishing or processing.
Excluded from the scope of the orders are finished countertops
that are imported in finished form and require no further finishing
or manufacturing.
Excluded from the scope of the orders are laminated veneer
lumber door and window components with (1) a maximum width of 44
millimeters, a thickness from 30 millimeters to 72 millimeters, and
a length of less than 2,413 millimeters (2) water boiling point
exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds
per square inch or higher, (4) finger-jointed or lap-jointed core
veneer with all layers oriented so that the grain is running
parallel or with no more than 3 dispersed layers of veneer oriented
with the grain running perpendicular to the other layers; and (5)
top layer machined with a curved edge and one or more profile
channels throughout.
Imports of hardwood plywood are primarily entered under the
following Harmonized Tariff Schedule of the United States (HTSUS)
subheadings: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560;
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510;
4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040;
4412.31.4050; 4412.31.4060; 4412.31.4075; 4412.31.4080;
4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160;
4412.31.4180; 4412.31.5125; 4412.31.5135; 4412.31.5155;
4412.31.5165;
[[Page 36535]]
4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5265;
4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100;
4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0565;
4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670;
4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.2610;
4412.32.2630; 4412.32.3125; 4412.32.3135; 4412.32.3155;
4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.3235;
4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285;
4412.32.5600; 4412.32.3235; 4412.32.3255; 4412.32.3265;
4412.32.3275; 4412.32.3285; 4412.32.5700; 4412.33.0620;
4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235;
4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285;
4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255;
4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700;
4412.39.1000; 4412.39.3000; 4412.39.4011; 4412.39.4012;
4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039;
4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061;
4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030;
4412.39.5050; 4412.94.1030; 4412.94.1050; 4412.94.3105;
4412.94.3111; 4412.94.3121; 4412.94.3141; 4412.94.3161;
4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020;
4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120;
4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160;
4412.99.3170; 4412.99.4100; 4412.99.5115; and 4412.99.5710.
Imports of hardwood plywood may also enter under HTSUS
subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000;
4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500;
9403.90.7005; 9403.90.7010; and 9403.90.7080. While the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of these orders is dispositive.
[FR Doc. 2020-13075 Filed 6-16-20; 8:45 am]
BILLING CODE 3510-DS-P
