[Federal Register Volume 72, Number 145 (Monday, July 30, 2007)]
[Notices]
[Pages 41492-41495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14668]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-890]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a joint request from Tradewinds Furniture Ltd. 
(``Tradewinds Furniture'') and Tradewinds International Enterprise Ltd. 
(``Tradewinds Intl.''), the Department of Commerce (``Department'') 
initiated a changed circumstances review of the antidumping duty order 
on wooden bedroom furniture (``WBF'') from the People's Republic of 
China (``PRC''). We preliminarily find that Tradewinds Furniture is the 
successor-in-interest to Nanhai Jiantai Woodwork Co. (``Nanhai 
Jiantai''), but that Tradewinds Intl. is not the successor-in-interest 
to Nanhai Jiantai's affiliated exporter, Fortune Glory Industrial 
Limited (``Fortune Glory'').

EFFECTIVE DATE: July 30, 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

[[Page 41493]]

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. See 70 FR at 331. On November 20, 2006, the Department 
published in the Federal Register an amended final determination and 
antidumping duty order on WBF from the PRC, as a result of litigation 
and a decision by the United States Court of International Trade 
(``CIT''). See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order/Pursuant to Court Decision: 
Wooden Bedroom Furniture From the People's Republic of China, 71 FR 
67099 (November 20, 2006). As a result of the CIT's decision, Nanhai 
Jiantai and Fortune Glory received an amended separate rate of 7.24 
percent. See 71 FR at 67101.
    On November 22, 2006, Tradewinds Furniture and Tradewinds Intl. 
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 Intl. are 
the successors-in-interest to Nanhai Jiantai and Fortune Glory, 
respectively (``Joint Request''). On November 30, 2006, Tradewinds 
Furniture and Tradewinds Intl. submitted a public version of a sales 
chart provided in their November 22, 2006, request.
    On January 18, 2007, the Department published its notice of 
initiation of a changed circumstances review to determine whether 
Tradewinds Furniture and Tradewinds Intl. are successors-in-interest to 
Nanhai Jiantai and Fortune Glory, respectively. See Wooden Bedroom 
Furniture from the People's Republic of China: Initiation of 
Antidumping Duty Changed Circumstances Review, 72 FR 2262 (January 18, 
2007). As part of the notice of initiation, the Department invited 
interested parties to submit comments on the request for a changed 
circumstances review within 15 days of publication of the notice. See 
72 FR at 2264. No interested parties provided comments.
    On March 30, 2007, the Department issued a questionnaire to 
Tradewinds Furniture and Tradewinds Intl. regarding their successor-in-
interest changed circumstances review request. On April 20, 2007, 
Tradewinds Furniture and Tradewinds Intl. submitted their response to 
the Department's questionnaire (``Questionnaire Response''). On June 5, 
2007, the Department issued a supplemental questionnaire to Tradewinds 
Furniture and Tradewinds Intl. On June 12, 2007, Tradewinds Furniture 
and Tradewinds Intl. submitted their response to the supplemental 
questionnaire (``Supplemental Response'').

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 
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

[[Page 41494]]

mirrors\12\ ; (11) certain metal parts\13\ ; (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; and (13) upholstered beds\14\.
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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 (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 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. 
See Wooden Bedroom Furniture From the People's Republic of China: 
Final Results of Changed Circumstances Review and Determination To 
Revoke Order in Part, 72 FR 38621 (January 9, 2007).
    \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.
    \14\ Upholstered beds that are completely upholstered, i.e., 
containing filling material and completely covered in sewn genuine 
leather, synthetic leather, or natural or synthetic decorative 
fabric. To be excluded, the entire bed (headboards, footboards, and 
side rails) must be upholstered except for bed feet, which may be of 
wood, metal, or any other material and which are no more than nine 
inches in height from the floor. See Wooden Bedroom Furniture from 
the People's Republic of China: Final Results of Changed 
Circumstances Review and Determination to Revoke Order in Part, 72 
FR 7013 (February 14, 2007).
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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.

Preliminary Results of 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).

Tradewinds Furniture Ltd.

    In the Joint Request, Tradewinds Furniture claims that it is the 
successor-in-interest to Nanhai Jiantai. Tradewinds Furniture submitted 
documentation showing that in February 2004, a government change in 
administrative boundaries resulted in a change in name for Nanhai 
Jiantai to Foshan Jiantai Woodwork Co. (``Foshan Jiantai''). Tradewinds 
Furniture provided documentation showing that this change was in name 
only, including the State Council of the PRC's approval of the 
adjustment to the administrative region in Foshan City (see Joint 
Request, at Exhibit 1), the People's Government of Guangdong Province's 
mandate for implementation of the change (see Joint Request, at Exhibit 
2), and the alteration detail (see Joint Request, at Exhibit 4). 
Tradewinds Furniture also provided the business licenses and 
certificates of approval for both Nanhai Jiantai and Foshan Jiantai, in 
support of its claim that, other than a name change, all other 
information remained the same. See Joint Request, at Exhibits 3 and 5.
    Tradewinds Furniture reported that, thereafter, a company (whose 
name is reported as proprietary, hereinafter referred to as ``Company 
A'') purchased the majority of assets of Foshan Jiantai in August 2004. 
See Joint Request, at Exhibit 6; Questionnaire Response, at Exhibit 22 
(Asset Transfer Contract). Company A established Tradewinds Furniture 
to take over Foshan Jiantai's furniture production operations. 
Tradewinds Furniture provided the PRC certificate of approval, as well 
as the Foshan City registration and business license, in support of 
this contention. See Joint Request, at Exhibits 7-8; Questionnaire 
Response, at 1. Tradewinds Furniture reported that Foshan Jiantai is no 
longer producing WBF or providing any services. See Questionnaire 
Response, at 3. Tradewinds Furniture also stated that it has taken over 
complete operational control of the furniture production operations 
from Foshan Jiantai. See Supplemental Response, at 1.
    Tradewinds Furniture gave a written description of the ownership 
and management changes from Nanhai Jiantai through to Tradewinds 
Furniture, which included a discussion of the board of director 
changes, and noted that 16 out of 19 key management employees of Nanhai 
Jiantai remain with Tradewinds Furniture. See Joint Request, at 6-7 and 
Exhibits 11-12; Questionnaire Response, at 2; Supplemental Response, at 
2-3. Tradewinds Furniture also provided flowcharts in support, which 
outline these changes from Nanhai Jiantai, through the name change to 
Foshan Jiantai, and its subsequent acquisition by Company A, through to 
the establishment of Tradewinds Furniture. See Joint Request, at 
Exhibit 10; Questionnaire Response, at Exhibit 23; Supplemental 
Response, at Exhibit 28. Tradewinds Furniture also provided charts and 
descriptions of the changes to the organizational structure, lists of 
the assets and equipment that were part of Company A's acquisition of 
Foshan Jiantai, and compared the production facilities and offices used 
by Nanhai Jiantai to those used by Tradewinds Furniture. See Joint 
Request, at 8-9 and Exhibits 13-16; Questionnaire Response, at 4-5.
    In addition, Tradewinds Furniture provided a comparison chart of 
the international suppliers for Nanhai Jiantai and Tradewinds 
Furniture, as well as copies of purchase orders placed by both, 
explaining that changes in suppliers were due to standard

[[Page 41495]]

reevaluations of the relationship, as well as non-competitive pricing. 
See Joint Request, at 9-10 and Exhibits 17-18. Further, Tradewinds 
Furniture stated that it has ``substantially the same'' customer base 
as Nanhai Jiantai, provided a customer comparison chart, and explained 
that the loss of customers and addition of new customers is typical for 
any company. See Joint Request, at 10 and Exhibit 19. Finally, 
Tradewinds Furniture provided shipping records for Foshan Jiantai and 
Tradewinds Furniture and stated that there is ``significant parity of 
shipment quantities and values'' (both in pieces and in sales). See 
Joint Request, at 11-12 and Exhibits 20-21.
    Upon review of the submitted information and material, we 
preliminarily find that Tradewinds Furniture has provided sufficient 
evidence in support of its claim that it is the successor-in-interest 
to Nanhai Jiantai. The name change from Nanhai Jiantai to Foshan 
Jiantai, Company A's acquisition of the majority of Foshan Jiantai's 
assets, the creation of Tradewinds Furniture by Company A, and 
Tradewinds Furniture's current operational control of the furniture 
production resulted in minimal changes. In their totality, we 
preliminarily find that Tradewinds Furniture's management, production 
facilities, supplier relationships and customer base remain essentially 
the same as that of Nanhai Jiantai. Based upon the above, we 
preliminarily determine that Tradewinds Furniture is the successor-in-
interest to Nanhai Jiantai and, therefore, should be given the same 
antidumping duty treatment as Nanhai Jiantai.
    The cash deposit determination from this changed circumstances 
review will apply to all entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this changed circumstances review. 
See Notice of Final Results of Antidumping Duty Changed Circumstances 
Review; Certain Forged Stainless Steel Flanges From India, 71 FR 31156 
(June 1, 2006). This cash deposit rate shall remain in effect until 
further notice.

Tradewinds International Enterprise Ltd.

    In the Joint Request, Tradewinds Intl. claims that it is the 
successor-in-interest to Fortune Glory. Tradewinds Intl. states that 
``Fortune Glory continues to operate as the exporter for Tradewinds 
Furniture'' and outlined its current functions and operations. See 
Joint Request, at 2; Questionnaire Response, at 3 and Exhibit 25. 
Tradewinds Intl. provided a flowchart that indicated board of director 
changes from Fortune Glory to Tradewinds Intl. See Questionnaire 
Response, at Exhibit 23; Supplemental Response, at Exhibit 28. 
Tradewinds Intl. elaborated on and provided various documentation on 
certain name changes, which resulted in the name Tradewinds Intl. See 
Joint Request, at 5 and Exhibit 9; Questionnaire Response, at 4 and 
Exhibit 26. Tradewinds Intl. also provided the business registration 
certificates for Fortune Glory and Tradewinds Intl. See Questionnaire 
Response, at 3-4 and Exhibits 24 and 27. Tradewinds Intl. claims that 
Fortune Glory will transfer its export functions to Tradewinds Intl. 
when it is named as the successor-in-interest to Fortune Glory, and 
that ``{n{time} o structural, management, employee, supplier, customer, 
or other changes are anticipated as a result of the transfer.'' See 
Questionnaire Response, at 4.
    Upon review of the submitted information and material, we 
preliminarily find that Tradewinds Intl. has failed to provide 
sufficient evidence in support of its claim that it is the successor-
in-interest to Fortune Glory. Tradewinds Intl. admits that Fortune 
Glory remains the exporter for Tradewinds Furniture and has not 
transferred its export functions to Tradewinds Intl. 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 Stainless Steel Flanges From 
India, 71 FR 31156. As Tradewinds Intl. has not yet taken over the 
export functions of Fortune Glory, its current operations are not 
essentially the same as those of Fortune Glory. While Tradewinds Intl. 
claims that no changes are anticipated to the structure, management, 
employees, suppliers, customers, or otherwise, such a claim is 
speculative at this time, and therefore premature. Based upon the 
above, we preliminarily determine that Tradewinds Intl. is not the 
successor-in-interest to Fortune Glory at this time and, therefore, 
should not be given the same antidumping duty treatment as Fortune 
Glory.

Public Comment

    Interested parties are invited to submit case briefs on these 
preliminary results no later than seven days after publication of this 
notice. Rebuttal briefs, limited to arguments raised in the case 
briefs, may be filed no later than five days after the case brief 
deadline. Parties are requested to submit with their briefs: (1) a 
statement of the issue, and (2) a brief summary of the argument. Briefs 
must be served on interested parties in accordance with 19 C.F.R. 
351.309. Any interested party may request a hearing within 20 days of 
publication of this notice. Any hearing, if requested, will be held no 
later than 25 days after publication of this notice, unless the 
Department alters this time limit, pursuant to 19 C.F.R. 351.310(d).
    In accordance with 19 C.F.R. 351.216(e), the Department intends to 
issue the final results of this changed circumstances review no later 
than 270 days after the date on which this review was initiated.
    This notice is issued and published in accordance with sections 
751(b)(1) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 
C.F.R. 351.216 and 19 C.F.R. 351.221(c)(3).

    Dated: July 23, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-14668 Filed 7-27-07; 8:45 am]
Billing Code: 3510-DS-S