[Federal Register Volume 73, Number 204 (Tuesday, October 21, 2008)]
[Notices]
[Pages 62479-62481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25027]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-552-803


Uncovered Innerspring Units from the Socialist Republic of 
Vietnam: Notice of Final Determination of Sales at Less Than Fair Value

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

EFFECTIVE DATE: October 21, 2008.
SUMMARY: The Department of Commerce (``the Department'') determines 
that imports of uncovered innerspring units from the Socialist Republic 
of Vietnam (``Vietnam'') are being, or are likely to be, sold in the 
United States at less than fair value, as provided in section 735 of 
the Tariff Act of 1930, as amended (``the Act''). The final weighted-
average dumping margins are listed below in the section entitled 
``Final Determination of Investigation.''

FOR FURTHER INFORMATION CONTACT: Eugene Degnan or Robert Bolling, 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-
0414 or (202) 482-3434, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2008, the Department published the preliminary 
determination of sales at less than fair value (``LTFV'') in the 
antidumping investigation of uncovered innerspring units from Vietnam. 
See Uncovered Innerspring Units from the Socialist Republic of Vietnam: 
Notice of Preliminary Determination of Sales at Less Than Fair Value, 
73 FR 45738 (August 6, 2008) (``Preliminary Determination''). We 
invited parties to comment on the Preliminary Determination. We did not 
receive any case or rebuttal briefs from any interested parties.

Period of Investigation

    The POI is April 1, 2007, through September 30, 2007. This period 
corresponds to the two most recent fiscal quarters prior to the month 
of the filing of the petition, which was December 2007. See 19 CFR 
351.204(b)(1).

Scope of Investigation

    The merchandise covered by this investigation is uncovered 
innerspring units composed of a series of individual metal springs 
joined together in sizes corresponding to the sizes of adult mattresses 
(e.g., twin, twin long, full, full long, queen, California king, and 
king) and units used in smaller constructions, such as crib and youth 
mattresses. All uncovered innerspring units are included in this scope 
regardless of width and length. Included within this definition are 
innersprings typically ranging from 30.5 inches to 76 inches in width 
and 68 inches to 84 inches in length. Innersprings for crib mattresses 
typically range from 25 inches to 27 inches in width and 50 inches to 
52 inches in length.
    Uncovered innerspring units are suitable for use as the innerspring 
component in the manufacture of innerspring mattresses, including 
mattresses that incorporate a foam encasement around the innerspring.
    Pocketed and non-pocketed innerspring units are included in this 
definition. Non-pocketed innersprings are typically joined together 
with helical wire and border rods. Non-pocketed innersprings are 
included in this definition regardless of whether they have border rods 
attached to the perimeter of the innerspring. Pocketed innersprings are 
individual coils covered by a ``pocket'' or ``sock'' of a nonwoven 
synthetic material or woven material and then glued together in a 
linear fashion.
    Uncovered innersprings are classified under subheading 9404.29.9010 
and have also been classified under subheadings 9404.10.0000, 
7326.20.00.70, 7320.20.5010, or 7320.90.5010 of the Harmonized Tariff 
Schedule of the United States (HTSUS). The HTSUS subheadings are 
provided for convenience and customs purposes only; the written 
description of the scope of this proceeding is dispositive.

Scope-Clarification Request

    Caye Home Furnishings LLC (Caye Furnishings), a U.S. manufacturer 
of living room furniture, requested that we clarify the scope language 
of the antidumping duty investigations on uncovered innerspring units 
from the People's Republic of China, South Africa, and the Socialist 
Republic of Vietnam. See August 25, 2008, letter from Caye Furnishings. 
Specifically, Caye Furnishings requested that we modify the scope of 
the investigations to exclude springs and individually

[[Page 62480]]

wrapped pocket coils for upholstery seating that are not suitable for 
mattresses or mattress supports.
    Caye Furnishings asserted that the reference to mattresses in the 
scope language makes clear that the petitioner intended to cover 
innersprings that are used in the manufacture of innerspring mattresses 
and did not intend to cover innersprings that are not suitable for use 
in mattresses or mattress supports. Caye Furnishings asserted that 
innersprings and individually wrapped pocket coils that it imports for 
use in upholstery seating in the manufacture of living room furniture 
are not suitable for mattresses or mattress supports. Caye Furnishings 
also explained that, although the products it imports are normally 
classified under subheading 7320.20.5020 of the HTSUS, which is not one 
of the HTSUS subheadings covered by the scope of the investigations, 
the scope description as written could result in the treatment of its 
imports as subject merchandise.
    In its September 11, 2008, comments on the issue, the petitioner 
stated that it believes the scope language is clear and that the 
merchandise described by Caye Furnishings is outside the scope of the 
investigations. The petitioner stated, however, that it does not object 
to the clarification of the scope for the reasons Caye Furnishings 
cited. In its September 17, 2008, comments, in response to the 
alternative versions of the scope-clarification language that we 
proposed, See Memorandum to the File, dated September 16, 2008. the 
petitioner stated that it does not object to amending the scope 
description of the investigations by excluding individual springs and 
individually wrapped pocket coils for upholstery seating (the 
petitioner stated that it objects to the proposed language which 
excludes any mention of end-use of the merchandise).
    We have considered the various alternatives on the record for 
modifications of the scope language. In addition to the difficulties 
associated with administering antidumping duty orders with end-use as a 
basis for whether certain products may be considered subject 
merchandise, we agree with the petitioner that the merchandise Caye 
Furnishings described in its request is not within the scope of the 
investigations. Therefore, we have not modified the scope language as 
suggested by any of the parties.

Adverse Facts Available

    As we explained in the Preliminary Determination, the Department 
issued a quantity and value (``Q&V'') questionnaire (via DHL) to all 
exporters identified in the petition. Out of the eleven exporters to 
whom the Department issued its Q&V questionnaire, only three responded 
(i.e., Yang Ching Enterprise Co., Ltd. (``Yang Ching''), Uu Viet Co., 
Ltd. (``Uu Viet''), and Dong Bang Stainless Steel Co. Ltd (``Dong 
Bang'')). Each of the responding exporters stated that they did not 
export innersprings to the United States during the POI. Also, 
according to DHL's tracking system the remaining eight exporters 
received the Department's Q&V questionnaire. Record evidence indicates 
there were imports into the United States of innersprings from Vietnam. 
Based on the above facts, we have determined that there were exports of 
the subject merchandise under investigation from Vietnamese producers/
exporters that did not respond to the Department's questionnaire, and 
we are treating these Vietnamese producers/exporters as part of the 
countrywide entity. Additionally, because we have determined that the 
non-responding companies are part of the Vietnam-wide entity, the 
Vietnam-wide entity is under investigation. Further, pursuant to 
section 776(a)(2) of the Act, we find that because the Vietnam-wide 
entity (including the eight companies discussed above) failed to 
respond to the Department's Q&V questionnaire, withheld or failed to 
provide information in a timely manner or in the form or manner 
requested by the Department, and otherwise impeded the proceeding, it 
is, therefore, appropriate to apply a dumping margin to the Vietnam-
wide entity using the facts otherwise available on the record pursuant 
to section 776(a)(2) of the Act. See Preliminary Determination, 73 FR 
at 45740. Additionally, because these parties failed to respond to our 
requests for information and did not act to the best of their ability, 
we find an adverse inference is appropriate, pursuant to section 776(b) 
of the Act.
    As we explained in the Preliminary Determination, the rate of 
116.31 percent that we selected as the adverse facts-available rate for 
the Vietnam-wide entity is the margin alleged in the petition. See 
Petitions on Uncovered Innerspring Units from China, South Africa, and 
Vietnam, dated (December 31, 2007) (``Petition''); Supplement to the 
Petition (January 11, 2008); and Antidumping Investigation Initiation 
Checklist: Uncovered Innerspring Units from South Africa, (January 22, 
2008), which is on file in Import Administration's Central Records 
Unit, Room 1117, of the main Department of Commerce building. See also 
Uncovered Innerspring Units From the People's Republic of China, South 
Africa, and the Socialist Republic of Vietnam: Initiation of 
Antidumping Duty Investigations, 73 FR 4817 (January 28, 2008). 
Further, as discussed in the Preliminary Determination, we corroborated 
the adverse facts-available rate pursuant to section 776(c) of the Act. 
See Preliminary Determination, 73 FR at 45741.

Final Determination

    The weighted-average dumping margin is as follows:

------------------------------------------------------------------------
                Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
Vietnam-Wide Rate...................................              116.31
------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act and 19 CFR 351.211(b), 
we will instruct U.S. Customs and Border Protection (``CBP'') to 
continue to suspend liquidation of all entries of subject merchandise 
from Vietnam entered, or withdrawn from warehouse, for consumption on 
or after August 6, 2008, the date of publication of the Preliminary 
Determination. We will instruct CBP to require a cash deposit or the 
posting of a bond equal to the weighted-average margin, as follows: the 
rate for all producers or exporters will be 116.31 percent. These 
suspension-of-liquidation instructions will remain in effect until 
further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our final determination. As our 
final determination is affirmative and in accordance with section 
735(b)(2)(B) of the Act, the ITC will determine, within 45 days, 
whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports or 
sales (or the likelihood of sales) for importation of the subject 
merchandise. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all securities posted will be refunded or canceled. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing CBP to assess antidumping duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

[[Page 62481]]

Notification Regarding APO

    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act.

    Dated: October 14, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-25027 Filed 10-20-08; 8:45 am]
BILLING CODE 3510-DS-S