Wood Mouldings and Millwork Products From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 67-70 [2020-29105]
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Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices
4409.10.5000, 4409.22.4000,
4409.22.5000,4409.29.4100, and
4409.29.5100. Imports of wood mouldings
and millwork products may also enter under
HTSUS numbers:
4409.10.6000,4409.10.6500, 4409.22.6000,
4409.22.6500, 4409.29.6100, 4409.29.6600,
4418.20.4000, 4418.20.8030, 4418.20.8060,
4418.99.9095 and 4421.99.9780. While the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
investigation is dispositive.
Appendix II—List of Topics Discussed
in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Application of Facts Available and Use of
Adverse Inference
IV. China-Wide Rate
V. Separate Rates
VI. Adjustments for Countervailable Export
Subsidies
VII. Changes From the Preliminary
Determination
VIII. Discussion of the Issues
Comment 1: Whether to Deny Yinfeng/
Mangrove a Separate Rate
Comment 2: Whether to Deny Wuxi Boda
a Separate Rate
Comment 3: Primary Surrogate Country
Selection
Comment 4: Surrogate Value Selection for
Laminated Veneer Lumber/Plywood/
Tray Material Inputs
Comment 5: Domestic Subsidy Offset
IX. Recommendation
[FR Doc. 2020–29104 Filed 12–31–20; 8:45 am]
BILLING CODE 3510–DS–P
DC 20230; telephone: (202) 482–6905 or
(202) 482–1537, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 12, 2020, Commerce
published in the Federal Register the
Preliminary Determination.1 On August
20, 2020, Commerce published its
Amended Preliminary Determination to
revise the scope of the investigation.2
The selected mandatory respondents in
this investigation are Fujian Yinfeng
Imp & Exp Trading Co., Ltd. (Yinfeng)
and Fujian Nanping Yuanqiao WoodIndustry Co., Ltd. (Yuanqiao). In the
Preliminary Determination, in
accordance with section 705(a)(1) of the
Tariff Act of 1930, as amended (the Act),
and 19 CFR 351.210(b)(4), Commerce
aligned the final countervailing duty
(CVD) determination with the final
antidumping duty (AD) determination.
The revised deadline for the final
determination of this investigation is
now December 28, 2020. On October 19,
2020, Commerce issued its PostPreliminary Analysis.3
A summary of the events that
occurred since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum which is hereby adopted
by this notice.4 The Issues and Decision
Memorandum is a public document and
is on file electronically via Enforcement
and Compliance’s Antidumping and
Countervailing Duty Centralized
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–118]
Wood Mouldings and Millwork
Products From the People’s Republic
of China: Final Affirmative
Countervailing Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
wood mouldings and millwork products
(millwork products) from the People’s
Republic of China (China).
DATES: Applicable January 4, 2021.
FOR FURTHER INFORMATION CONTACT:
Irene Gorelik or Faris Montgomery, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
AGENCY:
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1 See Wood Mouldings and Millwork Products
from the People’s Republic of China: Preliminary
Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final
Antidumping Duty Determination, 85 FR 35900
(June 12, 2020) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
2 See Wood Mouldings and Millwork Products
from the People’s Republic of China: Amended
Preliminary Countervailing Duty Determination, 85
FR 51410 (August 20, 2020) (Amended Preliminary
Determination).
3 See Memorandum, ‘‘Post-Preliminary Analysis
of the Countervailing Duty Investigation of Wood
Mouldings and Millwork Products from the
People’s Republic of China,’’ dated October 19,
2020; see also Memorandum, ‘‘Countervailing Duty
Investigation of Wood Mouldings and Millwork
Products from the People’s Republic of China:
Preliminary Creditworthiness Determination for
Fujian Province Youxi City Mangrove Wood
Machining Co., Ltd.,’’ dated October 19, 2020; and
Memorandum, ‘‘Countervailing Duty Investigation
of Wood Mouldings and Millwork Products from
the People’s Republic of China: Post-Prelim
Calculations for Fujian Yinfeng Imp & Exp Trading
Co., Ltd.,’’ dated October 19, 2020.
4 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination of the Countervailing Duty
Investigation of Wood Mouldings and Millwork
Products from the People’s Republic of China,’’
dated concurrently with, and hereby adopted, by
this notice (Issues and Decision Memorandum).
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67
Electronic Service System (ACCESS).
ACCESS is available to registered users
at https://access.trade.gov. In addition, a
complete version of the Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/. The signed and electronic versions
of the Issues and Decision
Memorandum are identical in content.
Period of Investigation
The period of investigation (POI) is
January 1, 2019 through December 31,
2019.
Scope of the Investigation
The products covered by this
investigation are millwork products
from China. For a full description of the
scope of this investigation, see
Appendix I.
Scope Comments
On August 5, 2020, we issued a
Preliminary Scope Memorandum.5
Several interested parties submitted
case and rebuttal briefs concerning the
scope of this investigation. For a
summary of the product coverage
comments and rebuttal comments
submitted to the record for this final
determination, and accompanying
discussion and analysis of all comments
timely received, see the Final Scope
Memorandum.6 Based on the comments
received from interested parties, we are
revising the scope of this investigation
as it appeared in the Amended
Preliminary Determination. The scope
in Appendix I reflects these changes.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues raised by parties, and
to which we responded in the Issues
and Decision Memorandum, is attached
to this notice at Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Act. For each of the subsidy
programs found countervailable,
Commerce determines that there is a
5 See Memorandum, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Preliminary Scope Decision
Memorandum,’’ dated August 5, 2020 (Preliminary
Scope Memorandum).
6 See Memorandum, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Scope Comments Decision
Memorandum for the Final Determinations,’’ dated
concurrently with, and hereby adopted by, this
notice (Final Scope Memorandum).
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Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices
subsidy, i.e., a financial contribution by
an ‘‘authority’’ that gives rise to a
benefit to the recipient, and that the
subsidy is specific.7 For a full
description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce relied, in part, on facts
available pursuant to section 776(a) of
the Act. Additionally, as discussed in
the Issues and Decision Memorandum,
because one or more respondents did
not act to the best of their ability in
responding to our requests for
information, we drew adverse
inferences, where appropriate, in
selecting from among the facts
otherwise available, pursuant to section
776(b) of the Act. For further
information, see the section ‘‘Use of
Facts Otherwise Available and Adverse
Inferences’’ in the accompanying Issues
and Decision Memorandum.
Verification
Commerce normally verifies
information relied upon in making its
final determination, pursuant to section
782(i)(1) of the Act. However, during the
course of this investigation, Commerce
was unable to conduct on-site
verification due to travel restrictions.8
Consistent with section 776(a)(2)(D) of
the Act, Commerce relied on the
information submitted on the record,
where appropriate, which we used in
making our Preliminary Determination,
as facts available in making our final
determination.
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties, we
made certain changes to Yinfeng’s
subsidy rate calculations. For a
discussion of these changes, see the
Issues and Decision Memorandum.
Final Determination
In accordance with section
705(c)(l)(B)(i) of the Act, we calculated
a rate for Yinfeng, a producer/exporter
of subject merchandise selected for
individual examination in this
investigation. Commerce assigned rates
based entirely on facts otherwise
available with adverse inferences
pursuant to section 776 of the Act to
Yuanqiao, a producer/exporter of
subject merchandise selected for
7 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
8 See Memorandum, ‘‘Cancellation of Verification
and Establishment of the Briefing Schedule,’’ dated
October 23, 2020.
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17:28 Dec 31, 2020
Jkt 253001
Federal Register. In the Amended
Preliminary Determination, we revised
the scope of the investigation, notifying
parties that because certain products
were henceforth excluded from the
scope of the investigation, Commerce
instructed CBP to terminate suspension
of liquidation of those excluded
products, and to refund any cash
deposits previously posted with respect
to them.10 However, we did not revise
the estimated cash deposit rates
published in the Preliminary
Determination.
In accordance with section 703(d) of
the Act, effective October 10, 2020, we
instructed CBP to discontinue the
suspension of liquidation of all entries
at that time, but to continue the
suspension of liquidation of all entries
between June 12, 2020 and October 9,
2020.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a CVD order, reinstate the
suspension of liquidation and require a
cash deposit of estimated CVDs for such
Subsidy rate
entries of subject merchandise in the
Company
(percent)
amounts indicated above, in accordance
with section 706(a) of the Act. If the ITC
Fujian Yinfeng Imp & Exp
Trading Co., Ltd.9 .............
20.56 determines that material injury, or
threat of material injury, does not exist,
Fujian Nanping Yuanqiao
Wood Industry Co., Ltd .....
252.29 this proceeding will be terminated, and
All Others ..............................
20.56 all estimated duties deposited or
securities posted as a result of the
Disclosure
suspension of liquidation will be
refunded or canceled.
Commerce intends to disclose to
interested parties the calculations and
International Trade Commission
analysis performed in this final
Notification
determination within five days of any
In accordance with section 705(d) of
public announcement or, if there is no
the
Act, we will notify the ITC of our
public announcement, within five days
affirmative determination that
of the date of the publication of this
countervailable subsidies are being
notice in accordance with 19 CFR
provided to producers and exporters of
351.224(b).
millwork products from China. We will
Continuation of Suspension of
allow the ITC access to all privileged
Liquidation
and business proprietary information in
our files, provided the ITC confirms that
As a result of our Preliminary
it will not disclose such information,
Determination and pursuant to section
either publicly or under an
703(d)(1)(B) and (d)(2) of the Act, we
administrative protective order (APO),
instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation without the written consent of the
Assistant Secretary for Enforcement and
of entries of subject merchandise as
Compliance. Because the final
described in the ‘‘Scope of the
determination in this proceeding is
Investigation’’ section entered, or
affirmative, in accordance with section
withdrawn from warehouse, for
705(b) of the Act, the ITC will make its
consumption, effective June 12, 2020,
final determination as to whether the
which is the date of publication of the
domestic industry in the United States
Preliminary Determination in the
is materially injured, or threatened with
9 As discussed in the Preliminary Determination,
material injury, by reason of imports of
Commerce found that Yinfeng Fujian Province
millwork products from China no later
Youxi City Mangrove Wood Machining Co., Ltd.
than 45 days after our final
and Fujian Province Youxi City Mangrove Wood
determination. If the ITC determines
Machining Co., Ltd., Xicheng Branch are crossindividual examination which failed to
participate on this investigation.
Section 705(c)(5)(A) of the Act
provides that in the final determination,
Commerce shall determine an estimated
all-others rate for companies not
individually examined. This rate shall
be an amount equal to the weighted
average of the estimated subsidy rates
established for those companies
individually examined, excluding any
zero and de minimis rates and any rates
based entirely under section 776 of the
Act.
In this investigation, Commerce
assigned a rate based entirely on facts
available for Yuanqiao. Therefore, the
only rate that is not zero, de minimis or
based entirely on facts otherwise
available is the rate calculated for
Yinfeng. Consequently, we assigned the
rate calculated for Yinfeng as the allothers rate applicable to producers and
exporters not individually examined.
Commerce determines that the
following estimated countervailable
subsidy rates exist:
owned affiliates of mandatory respondent Yinfeng.
See Preliminary Determination, 85 FR at 35901,
unchanged in the final determination.
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10 See Amended Preliminary Determination, 85
FR at 51410.
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Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices
that material injury or threat of material
injury does not exist, this proceeding
will be terminated and all cash deposits
will be refunded. If the ITC determines
that such injury does exist, Commerce
will issue a CVD order directing CBP to
assess, upon further instruction by
Commerce, CVDs on all imports of the
subject merchandise that are entered, or
withdrawn from warehouse, for
consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section.
Notification Regarding Administrative
Protective Orders
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act and 19 CFR
351.210(c).
Dated: December 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I—Scope of the Investigation
The merchandise subject to this
investigation consists of wood mouldings
and millwork products that are made of
wood (regardless of wood species), bamboo,
laminated veneer lumber (LVL), or of wood
and composite materials (where the
composite materials make up less than 50
percent of the total merchandise), and which
are continuously shaped wood or fingerjointed or edge-glued moulding or millwork
blanks (whether or not resawn). The
merchandise subject to this investigation can
be continuously shaped along any of its
edges, ends, or faces.
The percentage of composite materials
contained in a wood moulding or millwork
product is measured by length, except when
the composite material is a coating or
cladding. Wood mouldings and millwork
products that are coated or clad, even along
their entire length, with a composite
material, but that are otherwise comprised of
wood, LVL, or wood and composite materials
(where the non-coating composite materials
make up 50 percent or less of the total
merchandise) are covered by the scope.
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Jkt 253001
The merchandise subject to this
investigation consists of wood, LVL, bamboo,
or a combination of wood and composite
materials that is continuously shaped
throughout its length (with the exception of
any endwork/dados), profiled wood having a
repetitive design in relief, similar milled
wood architectural accessories, such as
rosettes and plinth blocks, and finger-jointed
or edge-glued moulding or millwork blanks
(whether or not resawn). The scope includes
continuously shaped wood in the forms of
dowels, building components such as interior
paneling and jamb parts, and door
components such as rails, stiles, interior and
exterior door frames or jambs (including
split, flat, stop applied, single- or doublerabbeted), frame or jamb kits, and packaged
door frame trim or casing sets, whether or not
the door components are imported as part of
a door kit or set.
The covered products may be solid wood,
laminated, finger-jointed, edge-glued, faceglued, or otherwise joined in the production
or remanufacturing process and are covered
by the scope whether imported raw, coated
(e.g., gesso, polymer, or plastic), primed,
painted, stained, wrapped (paper or vinyl
overlay), any combination of the
aforementioned surface coatings, treated, or
which incorporate rot-resistant elements
(whether wood or composite). The covered
products are covered by the scope whether or
not any surface coating(s) or covers obscure
the grain, textures, or markings of the wood,
whether or not they are ready for use or
require final machining (e.g., endwork/dado,
hinge/strike machining, weatherstrip or
application thereof, mitre) or packaging.
All wood mouldings and millwork
products are included within the scope even
if they are trimmed; cut-to-size; notched;
punched; drilled; or have undergone other
forms of minor processing.
Subject merchandise also includes wood
mouldings and millwork products that have
been further processed in a third country,
including but not limited to trimming,
cutting, notching, punching, drilling, coating,
or any other processing that would not
otherwise remove the merchandise from the
scope of this investigation if performed in the
country of manufacture of the in-scope
product.
Excluded from the scope of this
investigation are countertop/butcherblocks
imported as a full countertop/butcherblock
panel, exterior fencing, exterior decking and
exterior siding products (including solid
wood siding, non-wood siding (e.g.,
composite or cement), and shingles) that are
not LVL or finger jointed; finished and
unfinished doors; flooring; parts of stair steps
(including newel posts, balusters, easing,
gooseneck, risers, treads, rail fittings and stair
stringers); picture frame components three
feet and under in individual lengths; and
lumber whether solid, finger-jointed, or edgeglued. To be excluded from the scope, fingerjointed or edge-glued lumber must have a
nominal thickness of 1.5 inches or greater
and a certification stamp from an American
Lumber Standard Committee-certified
grading agency. The exclusion for lumber
whether solid, finger-jointed, or edge-glued
does not apply to screen/‘‘surfaced on 4
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69
sides’’ (S4S) and/or ‘‘surface 1 side, 2 edges’’
(SlS2E) stock (also called boards) that are
finger-jointed and/or edge-glued, or to fingerjointed and/or edge-glued moulding or
millwork blanks (whether or not resawn).
Accordingly, S4S and S1S2E stock/boards
that are not finger-jointed or edge-glued are
excluded from the scope of this investigation.
Excluded from the scope of this
investigation are all products covered by the
scope of the countervailing duty order on
Hardwood Plywood from the People’s
Republic of China. See Certain Hardwood
Plywood Products from the People’s Republic
of China: Countervailing Duty Order, 83 FR
513 (January 4, 2018).
Excluded from the scope of this
investigation are all products covered by the
scope of the countervailing duty order on
Multilayered Wood Flooring from the
People’s Republic of China. See Multilayered
Wood Flooring from the People’s Republic of
China: Countervailing Duty Order, 76 FR
76693 (December 8, 2011).
Excluded from the scope of this
investigation are all products covered by the
scope of the countervailing duty order on
Wooden Cabinets and Vanities from the
People’s Republic of China. See Wooden
Cabinets and Vanities and Components
Thereof from the People’s Republic of China:
Countervailing Duty Order, 85 FR 22134
(April 21, 2020).
Imports of wood mouldings and millwork
products are primarily entered under the
following Harmonized Tariff Schedule of the
United States (HTSUS) numbers:
4409.10.4010, 4409.10.4090, 4409.10.4500,
4409.10.5000, 4409.22.4000,
4409.22.5000,4409.29.4100, and
4409.29.5100. Imports of wood mouldings
and millwork products may also enter under
HTSUS numbers:
4409.10.6000,4409.10.6500, 4409.22.6000,
4409.22.6500, 4409.29.6100, 4409.29.6600,
4418.20.4000, 4418.20.8030, 4418.20.8060,
4418.99.9095 and 4421.99.9780. While the
HTSUS subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
investigation is dispositive.
Appendix II—List of Topics Discussed
in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and
Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Calculation of the All-Others
Rate
Comment 2: Whether To Continue To
Apply Adverse Facts Available (AFA) to
the Export Buyer’s Credit (EBC) Program
Comment 3: Whether the Provision of
Electricity for Less Than Adequate
Remuneration (LTAR) Is Countervailable
Comment 4: Calculation of the Electricity
for LTAR Benefit
Comment 5: Whether Individual-Owned
Sawn Wood and Plywood Input
Suppliers Are Government Authorities
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Comment 6: Whether Commerce Should
Countervail Imported Sawn Wood
Purchased From Domestic Trading
Companies
Comment 7: Whether the Provision of
Primer, Including Gesso, for LTAR
Program Was Unlawfully Expanded
Comment 8: Whether Zeroing of Negative
LTAR Benefits Must Be Eliminated
Comment 9: Whether To Include Land
Purchased From an Individual in the
Benefits Calculation
Comment 10: Provision of Land-Use Rights
for LTAR Benchmarks
Comment 11: Adjustment to Ocean Freight
Data
Comment 12: Calculation of Mangrove’s
Creditworthiness
Comment 13: Benchmark Data
VII. Recommendation
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2623 or
(202) 482–0783, respectively.
SUPPLEMENTARY INFORMATION:
determination in this investigation.
However, we took additional steps in
lieu of an on-site verification to verify
the information relied upon in making
this final determination, in accordance
with section 782(i) of the Tariff Act of
1930, as amended (the Act).5
Background
Analysis of Comments Received
On August 12, 2020, Commerce
published the Preliminary
Determination in the LTFV investigation
of millwork products from Brazil.1 For
a complete description of the events that
followed the Preliminary Determination,
see the Issues and Decision
Memorandum.2
All issues raised in the case and
rebuttal briefs that were submitted by
parties in this investigation are
addressed in the Issues and Decision
Memorandum. For a list of the issues
raised by interested parties and
addressed in the Issues and Decision
Memorandum, see Appendix II to this
notice. The Issues and Decision
Memorandum is a public document and
is made available to the public 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 Issues and Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/
index.html. The signed and electronic
versions of the Issues and Decision
Memorandum are identical in content.
Scope of the Investigation
[FR Doc. 2020–29105 Filed 12–31–20; 8:45 am]
The products covered by this
investigation are millwork products
from Brazil. For a complete description
of the scope of this investigation, see
Appendix I.
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Scope Comments
[A–351–853]
Wood Mouldings and Millwork
Products From Brazil: Final Negative
Determination of Sales at Less Than
Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that imports of
wood mouldings and millwork products
(millwork products) from Brazil are not
being, or are not 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.
DATES: Applicable January 4, 2021.
FOR FURTHER INFORMATION CONTACT:
George Ayache or Suzanne Lam, AD/
CVD Operations, Office VIII,
AGENCY:
On August 5, 2020, we issued a
Preliminary Scope Memorandum.3
Several interested parties submitted
case and rebuttal briefs concerning the
scope of this investigation. For a
summary of the product coverage
comments and rebuttal comments
submitted to the record for this final
determination, and accompanying
discussion and analysis of all comments
timely received, see the Final Scope
Memorandum.4 Based on the comments
received from interested parties, we are
revising the scope of this investigation
as it appeared in the Preliminary
Determination. The scope in Appendix
I reflects these changes.
Verification
Commerce was unable to conduct onsite verification of the information
relied upon in making its final
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from interested
parties, we made certain changes to the
margin calculations for Araupel S.A./
Braslumber Industria de Molduras
Ltda./BrasPine Madeiras Ltda. For a
discussion of these changes, see the
Issues and Decision Memorandum.
Final Determination
The final estimated weighted-average
dumping margin is as follows:
Exporter/producer
Estimated
weightedaverage
dumping
margin
(percent)
Araupel S.A./Braslumber Industria de Molduras Ltda./BrasPine Madeiras Ltda.6 .............................................................................
0.00
1 See Wood Mouldings and Millwork Products
from Brazil: Preliminary Negative Determination of
Sales at Less Than Fair Value and Postponement
of Final Determination, 85 FR 48667 (August 12,
2020) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Negative Determination
in the Less-Than-Fair-Value Investigation of Wood
Mouldings and Millwork Products from Brazil,’’
dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
3 See Memorandum, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
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17:28 Dec 31, 2020
Jkt 253001
Republic of China: Preliminary Scope Decision
Memorandum,’’ dated August 5, 2020 (Preliminary
Scope Memorandum).
4 See Memorandum, ‘‘Wood Mouldings and
Millwork Products from Brazil and the People’s
Republic of China: Scope Comments Decision
Memorandum for the Final Determinations,’’ dated
concurrently with, and hereby adopted by, this
notice (Final Scope Memorandum).
5 See Commerce’s Letters with attached
questionnaire in lieu of verification, dated October
14, 2020; see also Araupel S.A.’s Letter, ‘‘Wood
Mouldings and Millwork Products from Brazil:
Verification Questionnaire Response,’’ dated
PO 00000
Frm 00022
Fmt 4703
Sfmt 4703
October 22, 2020; and Braslumber Industria de
Molduras Ltda. and Braspine Madeiras Ltda.’s
Letter, ‘‘Antidumping Duties on Imports of Wood
Mouldings and Millwork Products from Brazil:
BrasPine/Braslumber’s Response to the
Department’s Questionnaire in Lieu of
Verification,’’ dated October 22, 2020.
6 Commerce determines that Araupel S.A.,
Braslumber Industria de Molduras Ltda., and
Braspine Madeiras Ltda. are a single entity. See
Issues and Decision Memorandum.
E:\FR\FM\04JAN1.SGM
04JAN1
Agencies
[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 67-70]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29105]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-118]
Wood Mouldings and Millwork Products From the People's Republic
of China: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of wood mouldings and millwork products (millwork products) from the
People's Republic of China (China).
DATES: Applicable January 4, 2021.
FOR FURTHER INFORMATION CONTACT: Irene Gorelik or Faris Montgomery, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-6905 or (202)
482-1537, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 12, 2020, Commerce published in the Federal Register the
Preliminary Determination.\1\ On August 20, 2020, Commerce published
its Amended Preliminary Determination to revise the scope of the
investigation.\2\ The selected mandatory respondents in this
investigation are Fujian Yinfeng Imp & Exp Trading Co., Ltd. (Yinfeng)
and Fujian Nanping Yuanqiao Wood-Industry Co., Ltd. (Yuanqiao). In the
Preliminary Determination, in accordance with section 705(a)(1) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4),
Commerce aligned the final countervailing duty (CVD) determination with
the final antidumping duty (AD) determination. The revised deadline for
the final determination of this investigation is now December 28, 2020.
On October 19, 2020, Commerce issued its Post-Preliminary Analysis.\3\
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\1\ See Wood Mouldings and Millwork Products from the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination with Final
Antidumping Duty Determination, 85 FR 35900 (June 12, 2020)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Wood Mouldings and Millwork Products from the People's
Republic of China: Amended Preliminary Countervailing Duty
Determination, 85 FR 51410 (August 20, 2020) (Amended Preliminary
Determination).
\3\ See Memorandum, ``Post-Preliminary Analysis of the
Countervailing Duty Investigation of Wood Mouldings and Millwork
Products from the People's Republic of China,'' dated October 19,
2020; see also Memorandum, ``Countervailing Duty Investigation of
Wood Mouldings and Millwork Products from the People's Republic of
China: Preliminary Creditworthiness Determination for Fujian
Province Youxi City Mangrove Wood Machining Co., Ltd.,'' dated
October 19, 2020; and Memorandum, ``Countervailing Duty
Investigation of Wood Mouldings and Millwork Products from the
People's Republic of China: Post-Prelim Calculations for Fujian
Yinfeng Imp & Exp Trading Co., Ltd.,'' dated October 19, 2020.
---------------------------------------------------------------------------
A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum which is hereby adopted by this
notice.\4\ The Issues and 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 Issues and Decision Memorandum can
be accessed directly at https://enforcement.trade.gov/frn/. The signed
and electronic versions of the Issues and Decision Memorandum are
identical in content.
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\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Wood Mouldings and Millwork Products from the
People's Republic of China,'' dated concurrently with, and hereby
adopted, by this notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is January 1, 2019 through
December 31, 2019.
Scope of the Investigation
The products covered by this investigation are millwork products
from China. For a full description of the scope of this investigation,
see Appendix I.
Scope Comments
On August 5, 2020, we issued a Preliminary Scope Memorandum.\5\
Several interested parties submitted case and rebuttal briefs
concerning the scope of this investigation. For a summary of the
product coverage comments and rebuttal comments submitted to the record
for this final determination, and accompanying discussion and analysis
of all comments timely received, see the Final Scope Memorandum.\6\
Based on the comments received from interested parties, we are revising
the scope of this investigation as it appeared in the Amended
Preliminary Determination. The scope in Appendix I reflects these
changes.
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\5\ See Memorandum, ``Wood Mouldings and Millwork Products from
Brazil and the People's Republic of China: Preliminary Scope
Decision Memorandum,'' dated August 5, 2020 (Preliminary Scope
Memorandum).
\6\ See Memorandum, ``Wood Mouldings and Millwork Products from
Brazil and the People's Republic of China: Scope Comments Decision
Memorandum for the Final Determinations,'' dated concurrently with,
and hereby adopted by, this notice (Final Scope Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties, and to which we responded in the Issues and Decision
Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found countervailable,
Commerce determines that there is a
[[Page 68]]
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\7\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\7\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making this final determination, Commerce relied, in part, on
facts available pursuant to section 776(a) of the Act. Additionally, as
discussed in the Issues and Decision Memorandum, because one or more
respondents did not act to the best of their ability in responding to
our requests for information, we drew adverse inferences, where
appropriate, in selecting from among the facts otherwise available,
pursuant to section 776(b) of the Act. For further information, see the
section ``Use of Facts Otherwise Available and Adverse Inferences'' in
the accompanying Issues and Decision Memorandum.
Verification
Commerce normally verifies information relied upon in making its
final determination, pursuant to section 782(i)(1) of the Act. However,
during the course of this investigation, Commerce was unable to conduct
on-site verification due to travel restrictions.\8\ Consistent with
section 776(a)(2)(D) of the Act, Commerce relied on the information
submitted on the record, where appropriate, which we used in making our
Preliminary Determination, as facts available in making our final
determination.
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\8\ See Memorandum, ``Cancellation of Verification and
Establishment of the Briefing Schedule,'' dated October 23, 2020.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to Yinfeng's subsidy rate
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Final Determination
In accordance with section 705(c)(l)(B)(i) of the Act, we
calculated a rate for Yinfeng, a producer/exporter of subject
merchandise selected for individual examination in this investigation.
Commerce assigned rates based entirely on facts otherwise available
with adverse inferences pursuant to section 776 of the Act to Yuanqiao,
a producer/exporter of subject merchandise selected for individual
examination which failed to participate on this investigation.
Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined. This rate shall be an amount
equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce assigned a rate based entirely on
facts available for Yuanqiao. Therefore, the only rate that is not
zero, de minimis or based entirely on facts otherwise available is the
rate calculated for Yinfeng. Consequently, we assigned the rate
calculated for Yinfeng as the all-others rate applicable to producers
and exporters not individually examined.
Commerce determines that the following estimated countervailable
subsidy rates exist:
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\9\ As discussed in the Preliminary Determination, Commerce
found that Yinfeng Fujian Province Youxi City Mangrove Wood
Machining Co., Ltd. and Fujian Province Youxi City Mangrove Wood
Machining Co., Ltd., Xicheng Branch are cross-owned affiliates of
mandatory respondent Yinfeng. See Preliminary Determination, 85 FR
at 35901, unchanged in the final determination.
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Fujian Yinfeng Imp & Exp Trading Co., Ltd.\9\........... 20.56
Fujian Nanping Yuanqiao Wood Industry Co., Ltd.......... 252.29
All Others.............................................. 20.56
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of the publication of this notice in accordance
with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise as described in the ``Scope of the Investigation''
section entered, or withdrawn from warehouse, for consumption,
effective June 12, 2020, which is the date of publication of the
Preliminary Determination in the Federal Register. In the Amended
Preliminary Determination, we revised the scope of the investigation,
notifying parties that because certain products were henceforth
excluded from the scope of the investigation, Commerce instructed CBP
to terminate suspension of liquidation of those excluded products, and
to refund any cash deposits previously posted with respect to them.\10\
However, we did not revise the estimated cash deposit rates published
in the Preliminary Determination.
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\10\ See Amended Preliminary Determination, 85 FR at 51410.
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In accordance with section 703(d) of the Act, effective October 10,
2020, we instructed CBP to discontinue the suspension of liquidation of
all entries at that time, but to continue the suspension of liquidation
of all entries between June 12, 2020 and October 9, 2020.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation and require a cash deposit of estimated
CVDs for such entries of subject merchandise in the amounts indicated
above, in accordance with section 706(a) of the Act. If the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated, and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our affirmative determination that countervailable subsidies are
being provided to producers and exporters of millwork products from
China. We will allow the ITC access to all privileged and business
proprietary information in our files, provided the ITC confirms that it
will not disclose such information, either publicly or under an
administrative protective order (APO), without the written consent of
the Assistant Secretary for Enforcement and Compliance. Because the
final determination in this proceeding is affirmative, in accordance
with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of millwork products from China no later than 45 days after our
final determination. If the ITC determines
[[Page 69]]
that material injury or threat of material injury does not exist, this
proceeding will be terminated and all cash deposits will be refunded.
If the ITC determines that such injury does exist, Commerce will issue
a CVD order directing CBP to assess, upon further instruction by
Commerce, CVDs on all imports of the subject merchandise that are
entered, or withdrawn from warehouse, for consumption on or after the
effective date of the suspension of liquidation, as discussed above in
the ``Continuation of Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: December 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise subject to this investigation consists of wood
mouldings and millwork products that are made of wood (regardless of
wood species), bamboo, laminated veneer lumber (LVL), or of wood and
composite materials (where the composite materials make up less than
50 percent of the total merchandise), and which are continuously
shaped wood or finger-jointed or edge-glued moulding or millwork
blanks (whether or not resawn). The merchandise subject to this
investigation can be continuously shaped along any of its edges,
ends, or faces.
The percentage of composite materials contained in a wood
moulding or millwork product is measured by length, except when the
composite material is a coating or cladding. Wood mouldings and
millwork products that are coated or clad, even along their entire
length, with a composite material, but that are otherwise comprised
of wood, LVL, or wood and composite materials (where the non-coating
composite materials make up 50 percent or less of the total
merchandise) are covered by the scope.
The merchandise subject to this investigation consists of wood,
LVL, bamboo, or a combination of wood and composite materials that
is continuously shaped throughout its length (with the exception of
any endwork/dados), profiled wood having a repetitive design in
relief, similar milled wood architectural accessories, such as
rosettes and plinth blocks, and finger-jointed or edge-glued
moulding or millwork blanks (whether or not resawn). The scope
includes continuously shaped wood in the forms of dowels, building
components such as interior paneling and jamb parts, and door
components such as rails, stiles, interior and exterior door frames
or jambs (including split, flat, stop applied, single- or double-
rabbeted), frame or jamb kits, and packaged door frame trim or
casing sets, whether or not the door components are imported as part
of a door kit or set.
The covered products may be solid wood, laminated, finger-
jointed, edge-glued, face-glued, or otherwise joined in the
production or remanufacturing process and are covered by the scope
whether imported raw, coated (e.g., gesso, polymer, or plastic),
primed, painted, stained, wrapped (paper or vinyl overlay), any
combination of the aforementioned surface coatings, treated, or
which incorporate rot-resistant elements (whether wood or
composite). The covered products are covered by the scope whether or
not any surface coating(s) or covers obscure the grain, textures, or
markings of the wood, whether or not they are ready for use or
require final machining (e.g., endwork/dado, hinge/strike machining,
weatherstrip or application thereof, mitre) or packaging.
All wood mouldings and millwork products are included within the
scope even if they are trimmed; cut-to-size; notched; punched;
drilled; or have undergone other forms of minor processing.
Subject merchandise also includes wood mouldings and millwork
products that have been further processed in a third country,
including but not limited to trimming, cutting, notching, punching,
drilling, coating, or any other processing that would not otherwise
remove the merchandise from the scope of this investigation if
performed in the country of manufacture of the in-scope product.
Excluded from the scope of this investigation are countertop/
butcherblocks imported as a full countertop/butcherblock panel,
exterior fencing, exterior decking and exterior siding products
(including solid wood siding, non-wood siding (e.g., composite or
cement), and shingles) that are not LVL or finger jointed; finished
and unfinished doors; flooring; parts of stair steps (including
newel posts, balusters, easing, gooseneck, risers, treads, rail
fittings and stair stringers); picture frame components three feet
and under in individual lengths; and lumber whether solid, finger-
jointed, or edge-glued. To be excluded from the scope, finger-
jointed or edge-glued lumber must have a nominal thickness of 1.5
inches or greater and a certification stamp from an American Lumber
Standard Committee-certified grading agency. The exclusion for
lumber whether solid, finger-jointed, or edge-glued does not apply
to screen/``surfaced on 4 sides'' (S4S) and/or ``surface 1 side, 2
edges'' (SlS2E) stock (also called boards) that are finger-jointed
and/or edge-glued, or to finger-jointed and/or edge-glued moulding
or millwork blanks (whether or not resawn). Accordingly, S4S and
S1S2E stock/boards that are not finger-jointed or edge-glued are
excluded from the scope of this investigation.
Excluded from the scope of this investigation are all products
covered by the scope of the countervailing duty order on Hardwood
Plywood from the People's Republic of China. See Certain Hardwood
Plywood Products from the People's Republic of China: Countervailing
Duty Order, 83 FR 513 (January 4, 2018).
Excluded from the scope of this investigation are all products
covered by the scope of the countervailing duty order on
Multilayered Wood Flooring from the People's Republic of China. See
Multilayered Wood Flooring from the People's Republic of China:
Countervailing Duty Order, 76 FR 76693 (December 8, 2011).
Excluded from the scope of this investigation are all products
covered by the scope of the countervailing duty order on Wooden
Cabinets and Vanities from the People's Republic of China. See
Wooden Cabinets and Vanities and Components Thereof from the
People's Republic of China: Countervailing Duty Order, 85 FR 22134
(April 21, 2020).
Imports of wood mouldings and millwork products are primarily
entered under the following Harmonized Tariff Schedule of the United
States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500,
4409.10.5000, 4409.22.4000, 4409.22.5000,4409.29.4100, and
4409.29.5100. Imports of wood mouldings and millwork products may
also enter under HTSUS numbers: 4409.10.6000,4409.10.6500,
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600,
4418.20.4000, 4418.20.8030, 4418.20.8060, 4418.99.9095 and
4421.99.9780. While the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of the investigation is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Calculation of the All-Others Rate
Comment 2: Whether To Continue To Apply Adverse Facts Available
(AFA) to the Export Buyer's Credit (EBC) Program
Comment 3: Whether the Provision of Electricity for Less Than
Adequate Remuneration (LTAR) Is Countervailable
Comment 4: Calculation of the Electricity for LTAR Benefit
Comment 5: Whether Individual-Owned Sawn Wood and Plywood Input
Suppliers Are Government Authorities
[[Page 70]]
Comment 6: Whether Commerce Should Countervail Imported Sawn
Wood Purchased From Domestic Trading Companies
Comment 7: Whether the Provision of Primer, Including Gesso, for
LTAR Program Was Unlawfully Expanded
Comment 8: Whether Zeroing of Negative LTAR Benefits Must Be
Eliminated
Comment 9: Whether To Include Land Purchased From an Individual
in the Benefits Calculation
Comment 10: Provision of Land-Use Rights for LTAR Benchmarks
Comment 11: Adjustment to Ocean Freight Data
Comment 12: Calculation of Mangrove's Creditworthiness
Comment 13: Benchmark Data
VII. Recommendation
[FR Doc. 2020-29105 Filed 12-31-20; 8:45 am]
BILLING CODE 3510-DS-P