[Federal Register Volume 73, Number 204 (Tuesday, October 21, 2008)]
[Notices]
[Pages 62481-62482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25028]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-791-821


Notice of Final Determination of Sales at Less Than Fair Value: 
Uncovered Innerspring Units from South Africa

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

EFFECTIVE DATE: October 21, 2008.
SUMMARY: The Department of Commerce determines that imports of 
uncovered innerspring units from South Africa 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: Dmitry Vladimirov or Minoo Hatten, AD/
CVD Operations, Office 5, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0665 or (202) 482-1690, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 6, 2008, the Department of Commerce (the Department) 
published the preliminary determination of sales at less than fair 
value (LTFV) in the antidumping investigation of uncovered innerspring 
units from South Africa. See Notice of Preliminary Determination of 
Sales at Less Than Fair Value: Uncovered Innerspring Units from South 
Africa, 73 FR 45741 (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 period of investigation (POI) is October 1, 2006, through 
September 30, 2007.

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.\1\ Specifically, Caye Furnishings requested that 
we modify the scope of the investigations to exclude springs and 
individually wrapped pocket coils for upholstery seating that are not 
suitable for mattresses or mattress supports.
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    \1\ See August 25, 2008, letter from Caye Furnishings.
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    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,\2\ 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).
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    \2\ See Memorandum to the File, dated September 16, 2008.
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    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

[[Page 62482]]

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

    For the final determination, we continue to find that, by failing 
to provide information we requested, Bedding Component Manufacturers 
(Pty) Ltd. (BCM), the mandatory respondent in this investigation, did 
not act to the best of its ability. Thus, the Department continues to 
find that the use of adverse facts available is warranted for this 
company under sections 776(a)(2) and (b) of the Act. See Preliminary 
Determination, 73 FR at 45743.
    As we explained in the Preliminary Determination, the rate of 
121.39 percent we selected as the adverse facts-available rate for BCM 
is the single margin alleged in the petition (see Petitions on 
Uncovered Innerspring Units from China, South Africa, and Vietnam, 
dated December 31, 2007 (Petition), and January 11, 2008, supplement to 
the Petition filed on behalf of Leggett and Platt, Incorporated, (the 
petitioner)), as recalculated in the January 22, 2008, Antidumping 
Investigation Initiation Checklist: Uncovered Innerspring Units from 
South Africa, on file in Import Administration's Central Records Unit, 
Room 1117, U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW, Washington, DC 20230. 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 4822 (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 45743, 45744.

All-Others Rate

    Section 735(c)(5)(B) of the Act provides that, where the estimated 
weighted-average dumping margins established for all exporters and 
producers individually investigated are zero or de minimis margins or 
are determined entirely under section 776 of the Act, the Department 
may use any reasonable method to establish the estimated all-others 
rate for exporters and producers not individually investigated. This 
provision contemplates that, if the data do not permit weight-averaging 
margins other than the zero, de minimis, or total facts-available 
margins, the Department may use any other reasonable method. See also 
Statement of Administrative Action accompanying the Uruguay Round 
Agreements Act, H. Doc. No. 103-316, at 873 (1994).
    As discussed above, BCM is the sole respondent in this 
investigation and has been assigned a margin based on total adverse 
facts available. Because the petition contained only one estimated 
dumping margin and because there are no other respondents in this 
investigation, there are no additional estimated margins available for 
purposes of establishing an all-others rate. See Notice of Final 
Determination of Sales at Less Than Fair Value: Ferrovandium from the 
Republic of South Africa, 67 FR 71136 (November 29, 2002). Therefore, 
with this final determination we are establishing 121.39 percent as the 
all-others rate.

Final Determination of Investigation

    We determine that the following weighted-average dumping margins 
exist for the period October 1, 2006, through September 30, 2007:

------------------------------------------------------------------------
               Manufacturer or Exporter                 Margin (percent)
------------------------------------------------------------------------
Bedding Component Manufacturers (Pty) Ltd.............            121.39
All Others............................................            121.39
------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act and 19 CFR 
351.211(b)(1), we will instruct CBP to continue to suspend liquidation 
of all entries of subject merchandise from South Africa 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: (1) the rate for BCM will be 
121.39 percent; (2) if the exporter is not a firm identified in this 
investigation but the producer is, the rate will be the rate 
established for the producer of the subject merchandise; (3) the rate 
for all other producers or exporters will be 121.39 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) 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.

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. E8-25028 Filed 10-20-08; 8:45 am]
BILLING CODE 3510-DS-S