Mattresses From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures, 69591-69594 [2020-24300]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 85, No. 213 / Tuesday, November 3, 2020 / Notices 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 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,’’ ‘‘sofabeds,’’ ‘‘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 (February 19, 2009); Uncovered Innerspring Units from the Socialist Republic of Vietnam, 73 FR 75391 (December 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. VerDate Sep<11>2014 16:55 Nov 02, 2020 Jkt 253001 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 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. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Preliminary Negative Determination of Critical Circumstances V. MNC Provision VI. Discussion of the Methodology VII. Currency Conversion VIII. Recommendation [FR Doc. 2020–24302 Filed 11–2–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–552–827] Mattresses From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that mattresses from the Socialist Republic of Vietnam (Vietnam) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2019 through December 31, 2019. Interested parties are invited to comment on this preliminary determination. DATES: Applicable November 3, 2020. FOR FURTHER INFORMATION CONTACT: Stephen Bailey or Dakota Potts, AD/ CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: AGENCY: PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 69591 (202) 482–0193 or (202) 482–0223, respectively. SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 24, 2020.1 On August 11, 2020, Commerce postponed the preliminary determination of this investigation and the revised deadline is now October 27, 2020.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is mattresses from Vietnam. For a full description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the 1 See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR 23002 (April 24, 2020) (Initiation Notice). 2 See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the Socialist Republic of Vietnam: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations, 85 FR 48505 (August 11, 2020). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination in the Less-ThanFair-Value Investigation of Mattresses from the Socialist Republic of Vietnam,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice. E:\FR\FM\03NON1.SGM 03NON1 69592 Federal Register / Vol. 85, No. 213 / Tuesday, November 3, 2020 / Notices khammond on DSKJM1Z7X2PROD with NOTICES Initiation Notice. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.6 In the Preliminary Scope Decision Memorandum, Commerce determined that it is not preliminarily modifying the scope language as it appeared in the Initiation Notice. See the scope in Appendix I to this notice. The Preliminary Scope Decision Memorandum establishes a deadline to submit scope case briefs and indicates that there will be no further opportunity for comments on scope-related issues.7 Methodology Commerce is conducting this investigation in accordance with section 731 of the Act. Commerce has calculated export prices in accordance with section 772(a) of the Act. Because Vietnam is a non-market economy, within the meaning of section 771(18) of the Act, Commerce has calculated normal value (NV) in accordance with section 773 of the Act. Furthermore, pursuant to section 776(a) and (b) of the Act, Commerce has preliminarily relied upon facts otherwise available with adverse inferences to determine the estimated weighted-average dumping margin for Vietnam Glory Home Furnishings Co., Ltd./Glory (Viet Nam) Industry Co., Ltd. (collectively, Vietnam Glory) 8 and the Vietnam-wide entity. For a full description of the methodology underlying the preliminary determination, see the Preliminary Decision Memorandum. Combination Rates In the Initiation Notice,9 Commerce explained that it would calculate producer/exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.10 Preliminary Determination Commerce preliminarily determines that the following estimated weightedaverage dumping margins exist: Estimated weighted-average dumping margin (percent) Producer Exporter Vietnam Glory Home Furnishings Co., Ltd./Glory (Viet Nam) Industry Co., Ltd. Wanek Furniture Co., Ltd./Millennium Furniture Co., Ltd./ Comfort Bedding Company Limited. Cong Ty Tnhm Nem Thien Kim (a.k.a. Better Zs, Ltd.) .......... Cong Ty Tnhm Nem Thien Kim (a.k.a. Better Zs, Ltd.) .......... Hava’s Co., Ltd ........................................................................ Gesin Vietnam Co., Ltd ........................................................... Taimei Company Limited (a.k.a. Taimei Co., Ltd) .................. Tong Li Vietnam Industrial Co., LTD ....................................... Super Foam Vietnam Ltd ........................................................ Sinomax (Vietnam) Household Products Limited .................... Sinomax (Vietnam) Household Products Limited .................... Vietnam-wide Entity ................................................................. Vietnam Glory Home Furnishings Co., Ltd./Glory (Viet Nam) Industry Co., Ltd. Wanek Furniture Co., Ltd./Millennium Furniture Co., Ltd./ Comfort Bedding Company Limited. Dockter China Limited ............................................................. Healthcare Sleep Products Limited ......................................... Hava’s Co., Ltd ........................................................................ Hong Kong Gesin Technology Limited ................................... Taimei Company Limited (a.k.a. Taimei Co., Ltd) .................. Tong Li Vietnam Industrial Co., LTD ...................................... Super Foam Vietnam Ltd ........................................................ Sinomax International Trading Limited ................................... Sinomax Macao Commercial Offshore Limited ...................... Vietnam-wide Entity ................................................................. 989.90 190.79 190.79 190.79 190.79 190.79 190.79 190.79 190.79 190.79 190.79 989.90 Suspension of Liquidation In accordance with section 733(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise, as described in Appendix I, entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register, as discussed below. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the weighted average amount by which NV exceeds U.S. price, as indicated in the table above as follows: (1) For the producer/exporter combinations listed in the table above, the cash deposit rate is equal to the estimated weighted- average dumping margin listed for that combination in the table; (2) for all combinations of Vietnam producers/ exporters of merchandise under consideration that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the Vietnamwide entity; and (3) for all third-country exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Vietnam producer/exporter combination (or the Vietnam-wide entity) that supplied that third-country exporter. These suspension of liquidation instructions will remain in effect until further notice. Disclosure 6 See Memorandum, ‘‘Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, the Socialist Republic of Vietnam, and the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determination,’’ (Preliminary Scope Decision Memorandum), dated concurrently with this preliminary determination. 7 Case briefs, other written comments, and rebuttal briefs submitted in response to this preliminary determination should not include scope-related issues. See Preliminary Scope Decision Memorandum; and ‘‘Public Comment’’ section of this notice. 8 Commerce has preliminarily determined to collapse the following companies: Vietnam Glory Home Furnishings Co., Ltd. and Glory (Viet Nam) Industry Co., Ltd. (collectively, Vietnam Glory). See Memorandum, ‘‘Vietnam Glory Preliminary Collapsing Memorandum,’’ dated concurrently with this notice. 9 See Initiation Notice, 85 FR 23007. 10 See Policy Bulletin No. 05.1, ‘‘Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,’’ (April 5, 2005) (Policy Bulletin 05.1), available on Commerce’s website at https://enforcement.trade.gov/policy/bull05-1.pdf. VerDate Sep<11>2014 16:55 Nov 02, 2020 Jkt 253001 PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). Because Commerce preliminarily applied adverse facts available to determine the estimated weightedaverage dumping margin for Vietnam Glory, in according with section 776 of the Act, and the applied AFA rate is based solely on the highest margin alleged on the Petition, there are no calculations to disclose for Vietnam Glory. E:\FR\FM\03NON1.SGM 03NON1 Federal Register / Vol. 85, No. 213 / Tuesday, November 3, 2020 / Notices Verification Commerce is currently unable to conduct on-site verification of the information relied upon in making its final determination in this investigation. Accordingly, we intend to take additional steps in lieu of on-site verification. Commerce will notify interested parties of any additional documentation or information required. khammond on DSKJM1Z7X2PROD with NOTICES Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance. A timeline for the submission of case briefs and written comments on non-scope issues will be announced at a later date. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline for case briefs.11 Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information, until further notice.12 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm by telephone the date and time of the hearing two days before the scheduled date of the hearing. Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the 11 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). 12 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19, 85 FR 17006 (March 26, 2020); and Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). VerDate Sep<11>2014 16:55 Nov 02, 2020 Jkt 253001 preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioner. Section 351.210(e)(2) of Commerce’s regulations requires that a request by exporters for postponement of the final determination be accompanied by a request for extension of provisional measures from a four-month period to a period not more than six months in duration. On October 13, 2020, pursuant to 19 CFR 351.210(e), Vietnam Glory and the Ashley Group 13 requested that Commerce postpone the final determination and that provisional measures be extended to a period not to exceed six months.14 In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is affirmative; (2) the requesting exporters account for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, Commerce is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, Commerce will make its final determination no later than 135 days after the date of publication of this preliminary determination. International Trade Commission Notification In accordance with section 733(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its preliminary determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether these imports materially injure, or threaten material injury to, the U.S. industry. 13 Commerce has preliminary determined to collapse the following companies: Wanek Furniture Co., Ltd.; Millennium Furniture Co., Ltd.; and Comfort Bedding Company Limited (collectively, the Ashley Group). See Memorandum, ‘‘Ashley Group Preliminary Collapsing Memorandum,’’ dated concurrently with this notice. 14 See Ashley Group’s Letter, ‘‘Mattresses from the Socialist Republic of Vietnam: Request to Postpone Final Determination,’’ dated October 13, 2020; see also Vietnam Glory’s Letter, ‘‘Mattresses from the Socialist Republic of Vietnam: Request for Extension of Time of Final Determination,’’ dated October 13, 2020. PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 69593 Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c). Dated: October 27, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I 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 and 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. E:\FR\FM\03NON1.SGM 03NON1 khammond on DSKJM1Z7X2PROD with NOTICES 69594 Federal Register / Vol. 85, No. 213 / Tuesday, November 3, 2020 / Notices 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 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,’’ ‘‘sofabeds,’’ ‘‘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 (February 19, 2009); Uncovered Innerspring Units from the Socialist Republic of Vietnam, 73 FR 75391 (December 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 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. VerDate Sep<11>2014 16:55 Nov 02, 2020 Jkt 253001 Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Postponement of the Final Determination V. Single Entity Treatment VI. Application of Facts Available and Use of Adverse Facts Available VII. Discussion of the Methodology VIII. Currency Conversion IX. Recommendation [FR Doc. 2020–24300 Filed 11–2–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–555–001] Mattresses From Cambodia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that mattresses from Cambodia are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2019 through December 31, 2019. Interested parties are invited to comment on this preliminary determination. DATES: Applicable November 3, 2020. FOR FURTHER INFORMATION CONTACT: John McGowan or Preston Cox, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3019 or (202) 482–5041, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 24, 2020.1 On August 11, 2020, Commerce postponed the preliminary 1 See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR 23002 (April 24, 2020) (Initiation Notice). PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 determination of this investigation, and the revised deadline is now October 27, 2020.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is mattresses from Cambodia. For a full description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.6 In the Preliminary Scope Decision Memorandum, Commerce determined 2 See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the Socialist Republic of Vietnam: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations, 85 FR 48505 (August 11, 2020). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Affirmative Determination in the Less-Than-Fair-Value Investigation of Mattresses from Cambodia,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice. 6 See Memorandum, ‘‘Mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, the Socialist Republic of Vietnam, and the People’s Republic of China: Scope Comments Decision Memorandum for the Preliminary Determination,’’ (Preliminary Scope Decision Memorandum), dated concurrently with this preliminary determination. E:\FR\FM\03NON1.SGM 03NON1

Agencies

[Federal Register Volume 85, Number 213 (Tuesday, November 3, 2020)]
[Notices]
[Pages 69591-69594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24300]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-827]


Mattresses From the Socialist Republic of Vietnam: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that mattresses from the Socialist Republic of Vietnam (Vietnam) are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV). The period of investigation (POI) is July 1, 2019 through 
December 31, 2019. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable November 3, 2020.

FOR FURTHER INFORMATION CONTACT: Stephen Bailey or Dakota Potts, AD/CVD 
Operations, Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0193 or (202) 482-0223, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on April 24, 
2020.\1\ On August 11, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
October 27, 2020.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at https://enforcement.trade.gov/frn/. The signed 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, the Republic of Turkey, and the Socialist Republic of 
Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR 
23002 (April 24, 2020) (Initiation Notice).
    \2\ See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, the Republic of Turkey, and the Socialist Republic of 
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 48505 (August 11, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Mattresses from the Socialist Republic of Vietnam,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is mattresses from 
Vietnam. For a full description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the

[[Page 69592]]

Initiation Notice. For a summary of the product coverage comments and 
rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ In 
the Preliminary Scope Decision Memorandum, Commerce determined that it 
is not preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, the Republic of Turkey, the Socialist 
Republic of Vietnam, and the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determination,'' 
(Preliminary Scope Decision Memorandum), dated concurrently with 
this preliminary determination.
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    The Preliminary Scope Decision Memorandum establishes a deadline to 
submit scope case briefs and indicates that there will be no further 
opportunity for comments on scope-related issues.\7\
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    \7\ Case briefs, other written comments, and rebuttal briefs 
submitted in response to this preliminary determination should not 
include scope-related issues. See Preliminary Scope Decision 
Memorandum; and ``Public Comment'' section of this notice.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because Vietnam is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value (NV) in accordance with section 
773 of the Act. Furthermore, pursuant to section 776(a) and (b) of the 
Act, Commerce has preliminarily relied upon facts otherwise available 
with adverse inferences to determine the estimated weighted-average 
dumping margin for Vietnam Glory Home Furnishings Co., Ltd./Glory (Viet 
Nam) Industry Co., Ltd. (collectively, Vietnam Glory) \8\ and the 
Vietnam-wide entity. For a full description of the methodology 
underlying the preliminary determination, see the Preliminary Decision 
Memorandum.
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    \8\ Commerce has preliminarily determined to collapse the 
following companies: Vietnam Glory Home Furnishings Co., Ltd. and 
Glory (Viet Nam) Industry Co., Ltd. (collectively, Vietnam Glory). 
See Memorandum, ``Vietnam Glory Preliminary Collapsing Memorandum,'' 
dated concurrently with this notice.
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Combination Rates

    In the Initiation Notice,\9\ Commerce explained that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\10\
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    \9\ See Initiation Notice, 85 FR 23007.
    \10\ See Policy Bulletin No. 05.1, ``Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigations 
involving Non-Market Economy Countries,'' (April 5, 2005) (Policy 
Bulletin 05.1), available on Commerce's website at https://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                           Estimated
                                                        weighted-average
           Producer                    Exporter          dumping margin
                                                           (percent)
------------------------------------------------------------------------
Vietnam Glory Home Furnishings  Vietnam Glory Home                989.90
 Co., Ltd./Glory (Viet Nam)      Furnishings Co.,
 Industry Co., Ltd.              Ltd./Glory (Viet
                                 Nam) Industry Co.,
                                 Ltd.
Wanek Furniture Co., Ltd./      Wanek Furniture Co.,              190.79
 Millennium Furniture Co.,       Ltd./Millennium
 Ltd./Comfort Bedding Company    Furniture Co., Ltd./
 Limited.                        Comfort Bedding
                                 Company Limited.
Cong Ty Tnhm Nem Thien Kim      Dockter China Limited             190.79
 (a.k.a. Better Zs, Ltd.).
Cong Ty Tnhm Nem Thien Kim      Healthcare Sleep                  190.79
 (a.k.a. Better Zs, Ltd.).       Products Limited.
Hava's Co., Ltd...............  Hava's Co., Ltd......             190.79
Gesin Vietnam Co., Ltd........  Hong Kong Gesin                   190.79
                                 Technology Limited.
Taimei Company Limited (a.k.a.  Taimei Company                    190.79
 Taimei Co., Ltd).               Limited (a.k.a.
                                 Taimei Co., Ltd).
Tong Li Vietnam Industrial      Tong Li Vietnam                   190.79
 Co., LTD.                       Industrial Co., LTD.
Super Foam Vietnam Ltd........  Super Foam Vietnam                190.79
                                 Ltd.
Sinomax (Vietnam) Household     Sinomax International             190.79
 Products Limited.               Trading Limited.
Sinomax (Vietnam) Household     Sinomax Macao                     190.79
 Products Limited.               Commercial Offshore
                                 Limited.
Vietnam-wide Entity...........  Vietnam-wide Entity..             989.90
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register, as discussed below. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the weighted average amount by which NV exceeds U.S. price, as 
indicated in the table above as follows: (1) For the producer/exporter 
combinations listed in the table above, the cash deposit rate is equal 
to the estimated weighted-average dumping margin listed for that 
combination in the table; (2) for all combinations of Vietnam 
producers/exporters of merchandise under consideration that have not 
established eligibility for their own separate rates, the cash deposit 
rate will be equal to the estimated weighted-average dumping margin 
established for the Vietnam-wide entity; and (3) for all third-country 
exporters of merchandise under consideration not listed in the table 
above, the cash deposit rate is the cash deposit rate applicable to the 
Vietnam producer/exporter combination (or the Vietnam-wide entity) that 
supplied that third-country exporter. These suspension of liquidation 
instructions will remain in effect until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b). Because Commerce 
preliminarily applied adverse facts available to determine the 
estimated weighted-average dumping margin for Vietnam Glory, in 
according with section 776 of the Act, and the applied AFA rate is 
based solely on the highest margin alleged on the Petition, there are 
no calculations to disclose for Vietnam Glory.

[[Page 69593]]

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. A timeline for the 
submission of case briefs and written comments on non-scope issues will 
be announced at a later date. Rebuttal briefs, limited to issues raised 
in case briefs, may be submitted no later than seven days after the 
deadline for case briefs.\11\ Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\12\ Pursuant to 
19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or 
rebuttal briefs in this investigation are encouraged to submit with 
each argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date and time of 
the hearing two days before the scheduled date of the hearing.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On October 13, 2020, pursuant to 19 CFR 351.210(e), Vietnam Glory 
and the Ashley Group \13\ requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\14\ In accordance with section 735(a)(2)(A) of 
the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary 
determination is affirmative; (2) the requesting exporters account for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
---------------------------------------------------------------------------

    \13\ Commerce has preliminary determined to collapse the 
following companies: Wanek Furniture Co., Ltd.; Millennium Furniture 
Co., Ltd.; and Comfort Bedding Company Limited (collectively, the 
Ashley Group). See Memorandum, ``Ashley Group Preliminary Collapsing 
Memorandum,'' dated concurrently with this notice.
    \14\ See Ashley Group's Letter, ``Mattresses from the Socialist 
Republic of Vietnam: Request to Postpone Final Determination,'' 
dated October 13, 2020; see also Vietnam Glory's Letter, 
``Mattresses from the Socialist Republic of Vietnam: Request for 
Extension of Time of Final Determination,'' dated October 13, 2020.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports materially injure, or threaten material injury 
to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: October 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

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 and 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.

[[Page 69594]]

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,'' ``sofabeds,'' ``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 (February 19, 2009); Uncovered 
Innerspring Units from the Socialist Republic of Vietnam, 73 FR 
75391 (December 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 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of the Final Determination
V. Single Entity Treatment
VI. Application of Facts Available and Use of Adverse Facts 
Available
VII. Discussion of the Methodology
VIII. Currency Conversion
IX. Recommendation

[FR Doc. 2020-24300 Filed 11-2-20; 8:45 am]
BILLING CODE 3510-DS-P
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