[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Notices]
[Pages 2262-2264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-643]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-890


Wooden Bedroom Furniture from the People's Republic of China: 
Initiation of Antidumping Duty Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has received 
information sufficient to warrant initiation of a changed circumstances 
review of the antidumping duty order on wooden bedroom furniture 
(``WBF'') from the People's Republic of China (``PRC''). Based on a 
request filed by Tradewinds Furniture Ltd. (``Tradewinds Furniture'') 
and Tradewinds International Enterprise Ltd. (``Tradewinds 
International''), the Department is initiating a changed circumstances 
review to determine whether Tradewinds Furniture and Tradewinds 
International are successors-in-interest to Nanhai Jiantai Woodwork Co. 
(``Nanhai Jiantai'') and its affiliated exporter, Fortune Glory 
Industrial Limited Co. (``Fortune Glory''), respondents in the original 
investigation.

EFFECTIVE DATE: January 18, 2007.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen or Robert A. Bolling, 
AD/CVD Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, 
NW, Washington, DC 20230; telephone: 202-482-1904 or 202-482-3434, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2005, the Department published in the Federal 
Register the antidumping duty order on WBF from the PRC. See Notice of 
Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order: Wooden Bedroom Furniture From the People's 
Republic of China, 70 FR 329 (January 4, 2005). As part of the 
antidumping duty order on WBF from the PRC, Nanhai Jiantai and Fortune 
Glory received a separate rate of 6.65 percent. Id. at 70 FR at 331.
    On November 22, 2006, Tradewinds Furniture and Tradewinds 
International filed a joint submission requesting that the Department 
conduct a changed circumstances review of the antidumping duty order on 
WBF from the PRC to confirm that Tradewinds Furniture and Tradewinds 
International are the successors-in-interest to Nanhai Jiantai and 
Fortune Glory. On November 30, 2006, Tradewinds Furniture and 
Tradewinds International filed a submission providing a public version 
of a chart included in their November 22, 2006 request. In their 
submissions, Tradewinds Furniture and Tradewinds International provided 
information on the events leading to the transition from Nanhai Jiantai 
and Fortune Glory to Tradewinds Furniture and Tradewinds International. 
Tradewinds Furniture and Tradewinds International also provided 
documentation relating to the change in name of Nanhai Jiantai to 
Foshian Jiantai and, thereafter, the purchase of Foshian Jiantai and 
establishment of Tradewinds Furniture to carry on the business of 
Foshian Jiantai, as well as documentation relating to the ownership 
structure and management, organizational structure, production 
facilities and equipment, supplier relationships, customer base, and 
production quantity, products and pricing. As part of their November 
22, 2006, submission, Tradewinds Furniture and Tradewinds International 
also requested that the Department conduct an expedited review.

Scope of Order

    The product covered by the order 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

[[Page 2263]]

cabinets; (4) dressers with framed glass mirrors that are attached to, 
incorporated in, sit on, or hang over the dresser; (5) chests-on-
chests\1\, highboys\2\, lowboys\3\, chests of drawers\4\, chests\5\, 
door chests\6\, chiffoniers\7\, hutches\8\, and armoires\9\; (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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    \1\ 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.
    \2\ 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).
    \3\ A lowboy is typically a short chest of drawers, not more 
than four feet high, normally set on short legs.
    \4\ A chest of drawers is typically a case containing drawers 
for storing clothing.
    \5\ 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.
    \6\ 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.
    \7\ A chiffonier is typically a tall and narrow chest of drawers 
normally used for storing undergarments and lingerie, often with 
mirror(s) attached.
    \8\ A hutch is typically an open case of furniture with shelves 
that typically sits on another piece of furniture and provides 
storage for clothes.
    \9\ 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\10\; (9) jewelry armories\11\; (10) cheval 
mirrors\12\; (11) certain metal parts\13\ ; 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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    \10\ 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.
    \11\ 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 lined with felt or felt-like material, with 
necklace hangers, and a flip-top lid with inset mirror. See Issues 
and Decision Memorandum from Laurel LaCivita to Laurie Parkhill, 
Office Director, 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 also 
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 (July 7, 2006).
    \12\ Cheval mirrors are, i.e., any framed, tiltable mirror with 
a height in excess of 50 that is mounted on a floor-
standing, hinged base. Additionally, the scope of the order excludes 
combination cheval mirror/jewelry cabinets. The excluded merchandise 
is an integrated piece consisting of a cheval mirror, i.e., a framed 
tiltable mirror with a height in excess of 50 inches, mounted on a 
floor-standing, hinged base, the cheval mirror serving as a door to 
a cabinet back that is integral to the structure of the mirror and 
which constitutes a jewelry cabinet lined with fabric, having 
necklace and bracelet hooks, mountings for rings and shelves, with 
or without a working lock and key to secure the contents of the 
jewelry cabinet back to the cheval mirror, and no drawers anywhere 
on the integrated piece. The fully assembled piece must be at least 
50 inches in height, 14.5 inches in width, and 3 inches in depth.
    \13\ 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 the 
Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheading 9403.90.7000.
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    Imports of subject merchandise are classified under subheading 
9403.50.9040 of the 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.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``Act''), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty order, which shows changed 
circumstances sufficient to warrant a review of the order. 
Additionally, section 751(b)(4) of the Act states that the Department 
shall not conduct a review less than 24 months after the date of 
publication of the determination, in the absence of good cause.
    As noted above, Tradewinds Furniture and Tradewinds International 
filed their request for a changed circumstances review on November 22, 
2006, a little over 22 months after the publication of the amended 
final determination and order. See Notice of Amended Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order: Wooden Bedroom Furniture From the People's Republic of China, 70 
FR 329 (January 4, 2005). However, Tradewinds Furniture and Tradewinds 
International argue that the request is timely because it was filed 
more than 24 months after the date of publication of the Department's 
original final determination. See Final Determination of Sales at Less 
Than Fair Value: Wooden Bedroom Furniture From the People's Republic of 
China, 69 FR 67313 (November 17, 2004). Tradewinds Furniture and 
Tradewinds International also argue that, even if the Department were 
to consider the request in relation to the amended final determination, 
the Department has previously found that a change in corporate 
structure is sufficient as ``good cause'' to conduct a review less than 
24 months after the date of publication of the determination. Citing 
Initiation of Antidumping Duty Changed Circumstances Review: Certain 
Softwood Lumber Products From Canada, 68 FR 14947, 14948 (March 27, 
2003); Bulk Aspirin From the People's Republic of China; Initiation of 
Changed Circumstances Antidumping Duty Administrative Review, 67 FR 
39344, 39345 (June 7, 2002). In this instance, the Department agrees 
with Tradewinds Furniture and Tradewinds International that we have 
previously found a change in corporate structure request for a 
successor-in-interest determination sufficient to warrant the 
initiation of a changed circumstances review. See id.

[[Page 2264]]

Based on the information submitted by Tradewinds Furniture and 
Tradewinds International regarding the change in name and status of 
Nanhai Jiantai and Fortune Glory, the Department determines that 
sufficient good cause exists to conduct a changed circumstances review.
    In a changed circumstances review involving a successor-in-interest 
determination, the Department typically examines several factors 
including, but not limited to, changes in: (1) Management; (2) 
production facilities; (3) supplier relationships; and (4) customer 
base. See Certain Cut-to-Length Carbon Steel Plate from Romania: 
Initiation and Preliminary Results of Changed Circumstances Antidumping 
Duty Administrative Review, 70 FR 22847 (May 3, 2005). While no single 
factor or combination of factors will necessarily be dispositive, the 
Department generally will consider the new company to be the successor 
to the predecessor if the resulting operations are essentially the same 
as those of the predecessor company. See, e.g., Notice of Initiation of 
Antidumping Duty Changed Circumstances Review: Certain Forged Stainless 
Steel Flanges from India, 71 FR 327 (January 4, 2006). Thus, if the 
record demonstrates that, with respect to the production and sale of 
the subject merchandise, the new company operates as the same business 
entity as the predecessor company, the Department may assign the new 
company the cash deposit rate of its predecessor. See, e.g., Fresh and 
Chilled Atlantic Salmon from Norway: Final Results of Changed 
Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980 
(March 1, 1999).
    Based on the information provided in their submissions, Tradewinds 
Furniture and Tradewinds International have provided sufficient 
evidence to warrant a review to determine if they are the successors-
in-interest to Nanhai Jiantai and Fortune Glory. Therefore, pursuant to 
section 751(b)(1) of the Act and 19 C.F.R. 351.216(b), we are 
initiating a changed circumstances review. However, although Tradewinds 
Furniture and Tradewinds International submitted documentation relating 
to their name and status change from Nanhai Jiantai and Fortune Glory, 
they did not provide certain supporting documentation for the elements 
listed above. Accordingly, the Department does not consider the 
information sufficient to make a preliminary finding and has determined 
that it would be inappropriate to expedite this action by combining the 
preliminary results of review with this notice of initiation, as 
permitted under 19 C.F.R. 351.221(c)(3)(ii). As a result, the 
Department is not issuing preliminary results for this changed 
circumstances review at this time.

Public Comment

    Interested parties may submit comments that the Department will 
take into account in the preliminary results of this changed 
circumstances review. The due date for filing any such comments is no 
later than 15 days from publication of this notice. Responses to those 
comments may be submitted no later than seven days from submission of 
the comments. All written comments must be submitted in accordance with 
19 C.F.R. 351.303. The Department will issue questionnaires requesting 
factual information for this changed circumstances review, and will 
publish in the Federal Register a notice of preliminary results of the 
changed circumstances review, in accordance with 19 C.F.R. 
351.221(b)(4) and 351.221(c)(3)(i). This notice will set forth the 
factual and legal conclusions upon which our preliminary results are 
based and a description of any action proposed based on those results.
    Pursuant to 19 C.F.R. 351.221(b)(4)(ii), interested parties will 
have an opportunity to comment on the preliminary results. The 
Department will issue its final results of this changed circumstances 
review in accordance with the time limits set forth in 19 C.F.R. 
351.216(e). This notice is published in accordance with section 
751(b)(1) of the Act and 19 C.F.R. 351.221(b).

    Dated: January 10, 2007.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E7-643 Filed 1-17-07; 8:45 am]
BILLING CODE 3510-DS-S