[Federal Register Volume 71, Number 234 (Wednesday, December 6, 2006)]
[Notices]
[Pages 70739-70742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20631]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-890


Wooden Bedroom Furniture from the People's Republic of China: 
Final Results of the 2004-2005 Semi-Annual New Shipper Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') published its 
preliminary results of the 2004-2005 semi-annual new shipper reviews 
and the rescission of one new shipper of the antidumping duty order on 
wooden bedroom furniture (``WBF'') from the People's Republic of China 
(``PRC'') on July 6, 2006. See Wooden Bedroom Furniture from the 
People's Republic of China: Preliminary Results of 2004-2005 Semi-
Annual New Shipper Reviews and Notice of Final Rescission of One New 
Shipper Review, 71 FR 38373 (July 6, 2006) (``Preliminary Results''). 
The period of review (``POR'') is June 24, 2004, through June 30, 2005. 
The Department invited interested parties to comment on our preliminary 
results. Based on its analysis of the comments received, the Department 
has made certain changes to our calculations. The final dumping margins 
for this review are listed in the ``Final Results of Review'' section 
below.

EFFECTIVE DATE: December 6, 2006.

FOR FURTHER INFORMATION CONTACT: Hilary E. Sadler, Esq. and Lilit 
Astvatsatrian, AD/CVD Operations, Office 8, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-4340 and 482-6412, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 8, 2005, the Department published a notice of the 
initiation of new shipper reviews for the following companies: 
Meikangchi (Nantong) Furniture Company, Ltd. (``Meikangchi''), Shenyang 
Kunyu Wood Industry Co., Ltd. (``Kunyu''), WBE Industries (Hui-Yang) 
Co., Ltd. (``WBE''), and Dongguan Landmark Furniture Products Ltd., d/
b/a Landmark Furniture Ltd. (``Landmark''). See Wooden Bedroom 
Furniture from the People's Republic of China; Initiation of New 
Shipper Reviews, 70 FR 53344 (September 8, 2005). The Department 
published its preliminary results of the 2004-2005 semi-annual new 
shipper reviews and its rescission of one new shipper review for the 
antidumping duty order on WBF from the PRC on July 6, 2006. See 
Preliminary Results. The Department invited parties to comment on its 
preliminary results. On August 7, 2006, the Department received case 
briefs from Petitioners\1\ and one respondent, Meikangchi. On August 
14, 2006, the Department received rebuttal comments from Petitioners 
and Landmark. No other interested party provided comments. The 
Department has conducted these new shipper reviews in accordance with 
section 751 of the Tariff Act of 1930, as amended (``the Act''), and 19 
CFR 351.214.
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    \1\ The Petitioners are American Furniture Manufacturers 
Committee for Legal Trade and its individual members and the Cabinet 
Makers, Millmen, and Industrial Carpenters Local 721; UBC Southern 
Council of Industrial Workers Local Union 2305; United Steel Workers 
of America Local 193U; Carpenters Industrial Union Local 2093; and 
Teamsters, Chauffeurs, Warehousemen and Helpers Local 991.
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Period of Review

    The POR is June 24, 2004 through June 30, 2005.

Scope of the Order

    The product covered is wooden bedroom furniture. Wooden bedroom 
furniture is generally, but not exclusively, designed, manufactured, 
and offered for sale in coordinated groups, or bedrooms, in which all 
of the individual pieces are of approximately the same style and 
approximately the same material and/or finish. The subject merchandise 
is made substantially of wood products, including both solid wood and 
also engineered wood products made from wood particles, fibers, or 
other wooden materials such as plywood, oriented strand board, particle 
board, and fiberboard, with or without wood veneers, wood overlays, or 
laminates, with or without non-wood components or trim such as metal, 
marble, leather, glass, plastic, or other resins, and whether or not 
assembled, completed, or finished.
    The subject merchandise includes the following items: (1) Wooden 
beds such as loft beds, bunk beds, and other beds; (2) wooden 
headboards for beds (whether stand-alone or attached to side rails), 
wooden footboards for beds, wooden side rails for beds, and wooden 
canopies for beds; (3) night tables, night stands, dressers, commodes, 
bureaus, mule chests, gentlemen's chests, bachelor's chests, lingerie 
chests, wardrobes, vanities, chessers, chifforobes, and wardrobe-type 
cabinets; (4) dressers with framed glass mirrors that are attached to, 
incorporated in, sit on, or hang over the dresser; (5) chests-on-
chests\2\,

[[Page 70740]]

highboys\3\, lowboys\4\, chests of drawers\5\, chests\6\, door 
chests\7\, chiffoniers\8\, hutches\9\, and armoires\10\; (6) desks, 
computer stands, filing cabinets, book cases, or writing tables that 
are attached to or incorporated in the subject merchandise; and (7) 
other bedroom furniture consistent with the above list.
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    \2\ A chest-on-chest is typically a tall chest-of-drawers in two 
or more sections (or appearing to be in two or more sections), with 
one or two sections mounted (or appearing to be mounted) on a 
slightly larger chest; also known as a tallboy.
    \3\ A highboy is typically a tall chest of drawers usually 
composed of a base and a top section with drawers, and supported on 
four legs or a small chest (often 15 inches or more in height).
    \4\ A lowboy is typically a short chest of drawers, not more 
than four feet high, normally set on short legs.
    \5\ A chest of drawers is typically a case containing drawers 
for storing clothing.
    \6\ A chest is typically a case piece taller than it is wide 
featuring a series of drawers and with or without one or more doors 
for storing clothing. The piece can either include drawers or be 
designed as a large box incorporating a lid.
    \7\ A door chest is typically a chest with hinged doors to store 
clothing, whether or not containing drawers. The piece may also 
include shelves for televisions and other entertainment electronics.
    \8\ A chiffonier is typically a tall and narrow chest of drawers 
normally used for storing undergarments and lingerie, often with 
mirror(s) attached.
    \9\ A hutch is typically an open case of furniture with shelves 
that typically sits on another piece of furniture and provides 
storage for clothes.
    \10\ An armoire is typically a tall cabinet or wardrobe 
(typically 50 inches or taller), with doors, and with one or more 
drawers (either exterior below or above the doors or interior behind 
the doors), shelves, and/or garment rods or other apparatus for 
storing clothes. Bedroom armoires may also be used to hold 
television receivers and/or other audio-visual entertainment 
systems.
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    The scope of the order excludes the following items: (1) Seats, 
chairs, benches, couches, sofas, sofa beds, stools, and other seating 
furniture; (2) mattresses, mattress supports (including box springs), 
infant cribs, water beds, and futon frames; (3) office furniture, such 
as desks, stand-up desks, computer cabinets, filing cabinets, 
credenzas, and bookcases; (4) dining room or kitchen furniture such as 
dining tables, chairs, servers, sideboards, buffets, corner cabinets, 
china cabinets, and china hutches; (5) other non-bedroom furniture, 
such as television cabinets, cocktail tables, end tables, occasional 
tables, wall systems, book cases, and entertainment systems; (6) 
bedroom furniture made primarily of wicker, cane, osier, bamboo or 
rattan; (7) side rails for beds made of metal if sold separately from 
the headboard and footboard; (8) bedroom furniture in which bentwood 
parts predominate\11\; (9) jewelry armories\12\; (10) cheval 
mirrors\13\ (11) certain metal parts;\14\and (12) mirrors that do not 
attach to, incorporate in, sit on, or hang over a dresser if they are 
not designed and marketed to be sold in conjunction with a dresser as 
part of a dresser-mirror set.
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    \11\ As used herein, bentwood means solid wood made pliable. 
Bentwood is wood that is brought to a curved shape by bending it 
while made pliable with moist heat or other agency and then set by 
cooling or drying. See Customs' Headquarters' Ruling Letter 043859 
dated May 17, 1976.
    \12\ Any armoire, cabinet or other accent item for the purpose 
of storing jewelry, not to exceed 24'' in width, 18'' in depth, and 
49'' in height, including a minimum of 5 lined drawers lined with 
felt or felt-like material, at least one side door (whether or not 
the door is lined with felt or felt-like material), with necklace 
hangers, and a flip-top lid with inset mirror. See Memorandum from 
Laurel LaCivita to Laurie Parkhill, Office Director, Issues and 
Decision Memorandum Concerning Jewelry Armoires and Cheval Mirrors 
in the Antidumping Duty Investigation of Wooden Bedroom Furniture 
from the People's Republic of China dated August 31, 2004. See 
Wooden Bedroom Furniture from the People's Republic of China: Notice 
of Final Results of Changed Circumstances Review and Revocation in 
Part, (71 FR 38621).
    \13\ Cheval mirrors, i.e., any framed, tiltable mirror with a 
height in excess of 50'' that is mounted on a floor-standing, hinged 
base.
    \14\ Metal furniture parts and unfinished furniture parts made 
of wood products (as defined above) that are not otherwise 
specifically named in this scope (i.e., wooden headboards for beds, 
wooden footboards for beds, wooden side rails for beds, and wooden 
canopies for beds) and that do not possess the essential character 
of wooden bedroom furniture in an unassembled, incomplete, or 
unfinished form. Such parts are usually classified under HTSUS 
subheading 9403.90.7000.
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    Imports of subject merchandise are classified under subheading 
9403.50.9040 of the Harmonized Tariff Schedule of the United States 
(``HTSUS'') as ``wooden...beds'' and under subheading 9403.50.9080 of 
the HTSUS as ``other...wooden furniture of a kind used in the 
bedroom.'' In addition, wooden headboards for beds, wooden footboards 
for beds, wooden side rails for beds, and wooden canopies for beds may 
also be entered under subheading 9403.50.9040 of the HTSUS as ``parts 
of wood'' and framed glass mirrors may also be entered under subheading 
7009.92.5000 of the HTSUS as ``glass mirrors...framed.'' This order 
covers all wooden bedroom furniture meeting the above description, 
regardless of tariff classification. Although the HTSUS subheadings are 
provided for convenience and customs purposes, our written description 
of the scope of this proceeding is dispositive.

New Shipper Status

    Consistent with its practice, the Department investigated whether 
the sales made by Kunyu, Landmark, and Meikangchi for these new shipper 
reviews were bona fide. See, e.g., Notice of Rescission of Antidumping 
Duty New Shipper Review: Honey from the People's Republic of China, 70 
FR 59031 (October 11, 2005). For Kunyu, Landmark, and Meikangchi, the 
Department found no evidence that the sale(s) in question are not bona 
fide sale(s). In the examination of Kunyu, Landmark, and Meikangchi's 
sales, the Department found the sales prices to be within the range of 
POR sales prices and that these entities received timely payment for 
their POR sales. Based on the investigation into the bona fide nature 
of the sales, the questionnaire responses submitted by Kunyu, Landmark, 
and Meikangchi, and the Department's verification thereof, the 
Department determines that Kunyu, Landmark, and Meikangchi have met the 
requirements to qualify as new shippers during the POR. See Memorandum 
to Wendy J. Frankel, Office Director, Antidumping Duty New Shipper 
Reviews of the Antidumping Duty Order on Wooden Bedroom Furniture from 
the People's Republic of China: Bona Fide Analysis of Shenyang Kunyu 
Wood Industry Co., Ltd. (``Kunyu''), Dongguan Landmark Furniture 
Products Ltd. (``Landmark''), and Meikangchi (Nantong) Furniture 
Company Ltd. (``Meikangchi''), dated June 26, 2006. In addition, the 
Department has determined that based on the information submitted, 
Kunyu, Landmark, and Meikangchi each made their first sale and/or 
shipment of subject merchandise to the United States during the POR, 
none of these firms exported subject merchandise during the period of 
investigation, and none was affiliated with any exporter or producer 
that had previously shipped subject merchandise to the United States. 
Therefore, for purposes of these final results of review, the 
Department is treating their respective sales of WBF to the United 
States as appropriate transactions to be examined in the context of 
these new shipper reviews. See section 751 (a)(2)(B) of the Act and 19 
CFR 351.214(a); see also ``Separate Rates'' section below.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
these reviews are addressed in the memorandum from Stephen J. Claeys, 
Deputy Assistant Secretary for Import Administration, to David M. 
Spooner, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum for the Final Results of the New Shipper Reviews of 
the Antidumping Duty Order on Wooden Bedroom Furniture from the 
People's Republic of China,'' dated November 21, 2006 (``Issues and 
Decision Memorandum''), which is hereby adopted by this notice. A list 
of the issues which parties raised and to which the Department 
responded in the Issues and Decision Memorandum is attached to this 
notice as an appendix. The Issues and Decision Memorandum is a public 
document that is on file in the Central Records Unit (``CRU'') in

[[Page 70741]]

room B-099 in the main Department building and is accessible on the Web 
at http://ia.ita.doc.gov/frn. The paper copy and electronic version of 
the memorandum are identical in content.

Changes Since the Preliminary Results

    Based on its analysis of comments received, the Department has made 
changes in the margin calculations for Kunyu, Landmark, and Meikangchi.
 The Department is no longer using the Evergreen International 
Limited and Jayaraja Furniture Group financial statements in the 
calculation of the surrogate financial ratios. See Issues and Decision 
Memorandum at Comments 1 and 2.
 The Department included depreciation expense in the numerator 
of the factory overhead ratio and included interest expenses in the 
numerator of the selling, general, and administrative (``SG&A'') 
expense ratio in the calculation of Indian Furniture Products, Ltd. 
(``IFP'') 2004-2005 financial ratios. See Issues and Decision 
Memorandum at Comment 3.
 The Department excluded changes in finished goods inventory 
from the material portion of the cost of manufacturing and included the 
changes in ``work in progress'' in the material portion of the cost of 
manufacturing in the calculation of IFP's 2004-2005 numerator of 
factory overhead ratio. See Issues and Decision Memorandum at Comment 
4.
 The Department moved IFP's 2004-2005 ``Labour charges'' from 
the labor portion of the cost of manufacturing to factory overhead in 
calculating of IFP's 2004-2005 numerator for the factory overhead 
ratio. See Issues and Decision Memorandum at Comment 6.
 The Department added the remaining portion of depreciation 
expense for Raghbir Interiors Pvt. Ltd.'s (``Raghbir'') ``Furniture and 
Fixtures'' and ``Computers'' to Raghbir's factory overhead. See Issues 
and Decision Memorandum at Comment 7.
 The Department did not offset the numerator of the SG&A ratio 
by the interest income for the surrogate companies where the Department 
could not confirm the short-term nature of interest income. See Issues 
and Decision Memorandum at Comment 9.
 The Department reversed the classification of ``job work 
expenses'' and ``salaries'' in Fusion Design Private, Ltd.'s financial 
statements by moving ``job work expenses'' into the labor portion of 
the cost of manufacturing and by moving ``salaries'' into SG&A 
expenses. See Issues and Decision Memorandum at Comment 10.
 The Department moved ``Wages to staff'' from factory overhead 
to the labor portion of cost of manufacturing in the calculation of 
D'nD Fine Furniture's financial ratios. See Issues and Decision 
Memorandum at Comment 12.
 The Department excluded packing materials from the calculation 
of IFP's 2004-2005 surrogate financial ratios. See Issues and Decision 
Memorandum at Comment 14.

Surrogate Country

    In the preliminary results, the Department stated that it treats 
the PRC as a non-market economy (``NME'') country, and therefore, the 
Department calculated normal value in accordance with section 773(c) of 
the Act which applies to NME countries. Also, the Department stated 
that it had selected India as the appropriate surrogate country to use 
in this review for the following reasons: (1) It is at a similar level 
of economic development; and (2) it is a significant producer of 
comparable merchandise, pursuant to section 773(c)(4) of the Act. See 
Preliminary Results. For the final results, the Department made no 
changes to its findings with respect to the selection of a surrogate 
country.

Separate Rates

    In proceedings involving NME countries, the Department begins with 
a rebuttable presumption that all companies within the country are 
subject to government control and thus should be assigned a single 
antidumping duty deposit rate. It is the Department's policy to assign 
all exporters of merchandise subject to review in an NME country this 
single rate unless an exporter can demonstrate that it is free of de 
jure and de facto control over its export decisions, so as to be 
entitled to a separate rate.
    In the preliminary results, the Department found that Kunyu, 
Landmark, and Meikangchi demonstrated their eligibility for separate-
rate status. For the final results, the Department continues to find 
that the evidence placed on the record of these new shipper reviews by 
Kunyu, Landmark, and Meikangchi demonstrates an absence of government 
control, both in law and in fact, with respect to their exports of the 
merchandise under review and thus determine Kunyu, Landmark, and 
Meikangchi are eligible for separate-rate status.
    Weighted-Average Dumping Margins
    The weighted-average dumping margins are as follows:

                  Wooden Bedroom Furniture from the PRC
------------------------------------------------------------------------
                                                       Weighted-Average
           Producer/Manufacturer/Exporter              Margin (Percent)
------------------------------------------------------------------------
Kunyu...............................................              216.01
Landmark............................................                0.00
Meikangchi..........................................                1.17
------------------------------------------------------------------------

Assessment Rates

    The Department intends to issue assessment instructions to U.S. 
Customs and Border Protection (``CBP'') 15 days after the date of 
publication of these final results of review. In accordance with 19 CFR 
351.212(b)(1), the Department has calculated importer-specific 
assessment rates for merchandise subject to this review. For Kunyu, 
Landmark, and Meikangchi, the Department divided the total dumping 
margins of each company's reviewed sales by the total entered value of 
its reviewed sales for each applicable importer to calculate ad valorem 
assessment rates. The Department will direct CBP to assess the 
resulting assessment rates against the entered customs values for the 
subject merchandise on Kunyu, Landmark, and Meikangchi's entries under 
the relevant order during the POR.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), the 
Department calculated importer-specific ad valorem rates. For Kunyu, 
Landmark, and Meikangchi, the Department aggregated the dumping margins 
calculated for all U.S. sales to each importer and divided this amount 
by the entered value of the sales to each importer. For further details 
see Final Analysis Memorandum. Where an importer-specific ad valorem 
rate is de minimis, the Department will order CBP to liquidate 
appropriate entries without regard to antidumping duties.

Cash-Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of new shipper reviews for 
all shipments of wooden bedroom furniture from the PRC entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication, as provided by section 751(2)(c) of the Act: (1) Because 
the cash deposit rate for Landmark is zero, no cash deposit shall be 
required.

[[Page 70742]]

However, for Kunyu and Meikangchi, the cash deposit rates will be the 
rates shown above; (2) for previously reviewed or investigated 
companies not listed above that have a separate rate, the cash deposit 
rate will continue to be the company-specific rate published for the 
most recent period; (3) the cash deposit rate for all other PRC 
exporters will be 198.08 percent, the current PRC-wide rate; and (4) 
the cash deposit rate for all non-PRC exporters will be the rate 
applicable to the PRC exporter that supplied that exporter. These 
deposit requirements, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of the antidumping duties occurred and the subsequent 
assessment of double antidumping duties. This notice also serves as a 
reminder to parties subject to administrative protective orders 
(``APOs'') of their responsibility concerning the return or destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305. 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.
    The Department is issuing and publishing this determination and 
notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 21, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.

APPENDIX

List of Comments and Issues in the Decision Memorandum

Comment 1: Use of Financial Statements of Evergreen International 
Limited for Calculation of the Surrogate Financial Ratios
Comment 2: Use of Financial Statements of Jayaraja Furniture Group for 
Calculation of the Surrogate Financial Ratios
Comment 3: Exclusion of Certain Expenses from the Calculation of the 
Cost of Manufacturing and Selling, General, and Administrative Expenses
Comment 4: Exclusion of Finished Goods Inventory from the Cost of 
Manufacturing
Comment 5: Treatment of the Sale of Scrap Offset in the Surrogate 
Financial Statements
Comment 6: Reclassification of Certain Labor Charges as Selling, 
General, and Administrative Expenses
Comment 7: Omission of Depreciation Expenses from the Surrogate 
Financial Ratios
Comment 8: Reclassification of ``Diesel & Petrol'' Expense as Selling, 
General, and Administrative Expense
Comment 9: Inclusion of Interest Income in the Calculation of Cost of 
Manufacturing
Comment 10: Treatment of ``Job Work Expenses'' in the Calculation of 
Surrogate Financial Ratios
Comment 11: Treatment of ``Sawing Charges Expenses'' in the Calculation 
of Surrogate Financial Ratios
Comment 12: Treatment of ``Wages to Staff'' in the Calculation of 
Surrogate Financial Ratios
Comment 13: Treatment of Certain Labor Costs in the Calculation of 
Surrogate Financial Ratios
Comment 14: Inclusion of Packing Materials in Selling, General, and 
Administrative Expense Using a Surrogate Company's Financial Statements
[FR Doc. E6-20631 Filed 12-5-06; 8:45 am]
BILLING CODE: 3510-DS-S