[Federal Register Volume 73, Number 212 (Friday, October 31, 2008)]
[Notices]
[Pages 64916-64919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26036]


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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 Fourth New Shipper Reviews

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

EFFECTIVE DATE: October 31, 2008.
SUMMARY: On June 6, 2008, the Department of Commerce (the 
``Department'') published the preliminary results of these new shipper 
reviews (``NSRs'') covering the period January 1, 2007 through July 31, 
2007.\1\ See Wooden Bedroom Furniture from the People's Republic of 
China: Preliminary Results of January 1, 2007 July 31, 2007 Semi-Annual 
New Shipper Reviews; 73 FR 32292 (June 6, 2008) (``Preliminary 
Results''). Based on our analysis of the comments received, we have 
made certain changes to our calculations. The final dumping margins for 
these reviews are listed in the ``Final Results of the Reviews'' 
section below.
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    \1\ In the initiation notice of the NSRs the Department 
explained that it was expanding the period of review (``POR''), 
pursuant to 19 CFR 351.214 (f)(2)(ii), because the sale of the 
subject merchandise occurred within the POR, but the entry occurred 
after the normal POR. See Wooden Bedroom Furniture From the People's 
Republic of China: Initiation of New Shipper Reviews, 72 FR 52083 
(September 12, 2007). As a result, the POR for these NSRs is January 
1 through July 31, 2007.

FOR FURTHER INFORMATION CONTACT: Paul Stolz, AD/CVD Operations, Office 
8, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
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Washington, DC 20230; telephone: (202) 482-4474.

SUPPLEMENTARY INFORMATION:

Background

    Since the Preliminary Results, the following events have occurred. 
On June 17, 2008, Donguan Mu Si Furniture Co., Ltd. (``Mu Si'') 
submitted documents to the Department claiming that due to a 
computational error it had misreported the consumption factor for 
medium density fiberboard (``MDF'') used to produce cherry veneer 
nightstands.
    On July 7, 2008, we extended the time limit for the completion of 
the final results of these NSRs until no later than October 24, 2008. 
See Wooden Bedroom Furniture from the People's Republic of China: 
Notice of Extension of Time Limit for Final Results of New Shipper 
Reviews; 73 FR 50933 (August 29, 2008).
    On July 7, 2008, we received case briefs from Mu Si and the 
American Furniture Manufacturers Committee for Legal Trade and Vaughan-
Bassett Furniture Company Inc. (collectively ``Petitioners''). On July 
17, 2008, we received a timely rebuttal brief from Donguan Bon Ten 
Furniture Co., Ltd. (``Bon Ten'') and Mu Si.

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs by parties 
to these reviews are addressed in the ``Issues and Decision Memorandum 
for the Final Results of Antidumping Duty Administrative Review and New 
Shipper Reviews of Wooden Bedroom Furniture from the People's Republic 
of China,'' dated October 24, 2008, which is hereby adopted by this 
notice (``Issues and Decision Memo''). A list of the issues discussed 
in the Issues and Decision Memo is attached to this notice as an 
appendix. The Issues and Decision Memo is a public document and is on 
file in the Central Records Unit (``CRU''), Main Commerce Building, 
Room 1117, 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.

Scope of the 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,\2\ highboys,\3\ lowboys,\4\ chests of drawers,\5\

[[Page 64917]]

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 armoires;\12\ (10) cheval 
mirrors;\13\ (11) certain metal parts;\14\ (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.\15\
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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 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 and Notice of Amended Preliminary Determination of 
Sales at Less Than Fair Value and Amendment to the Scope: Wooden 
Bedroom Furniture from the People's Republic of China, 69 FR 54643 
(September 9, 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).
    \13\ Cheval mirrors are 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 948 (January 9, 2007).
    \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 the 
Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheading 9403.90.7000.
    \15\ 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.

Changes Since the Preliminary Results

    Based on our analysis of information on the record of these NSRs, 
and comments received from the interested parties, we have made the 
following changes to the margin calculations for Bon Ten and Mu Si.
     We employed facts available in order to calculate Mu Si's 
per-unit consumption of MDF used to produce cherry veneer nightstands. 
See the ``Facts Available'' section of this notice, below.
     We corrected average unit value calculations for certain 
factors of production (``FOPs''). See the Issues and Decision Memo at 
Comment 2 and the memorandum to the file ``New Shipper Review of Wooden 
Bedroom Furniture from the People's Republic of China: Surrogate Values 
for the Final Results'' (``FOP memorandum'') dated October 24, 2008.
     We corrected the calculation of domestic movement 
expenses. See the Issues and Decision Memo at Comment 3 and the FOP 
memorandum.
     We corrected the conversion of weight measurements for 
certain FOPs. See the Issues and Decision Memo at Comment 4 and the FOP 
memorandum.
     We recalculated the surrogate financial ratios using the 
financial statements of four Indian producers of comparable 
merchandise. See the Issues and Decision Memo at Comment 5 and the FOP 
memorandum.

Facts Available

    Sections 776(a)(1) and (2) of the Tariff Act of 1930 as amended 
(``the Act'') provide that the Department shall apply ``facts otherwise 
available'' if necessary information is not on the record or an 
interested party or any other person (A) withholds information that has 
been requested, (B) fails to provide information within the deadlines 
established, or in the form and manner requested by the Department, 
subject to subsections (c)(1) and (e) of section 782, (C) significantly 
impedes a proceeding, or (D) provides information that cannot be 
verified as provided by section 782(i) of the Act.
    Where the Department determines that a response to a request for 
information does not comply with the

[[Page 64918]]

request, section 782(d) of the Act provides that the Department will so 
inform the party submitting the response and will, to the extent 
practicable, provide that party the opportunity to remedy or explain 
the deficiency. If the party fails to remedy the deficiency within the 
applicable time limits and subject to section 782(e) of the Act, the 
Department may disregard all or part of the original and subsequent 
responses, as appropriate. Section 782(e) of the Act provides that the 
Department ``shall not decline to consider information that is 
submitted by an interested party and is necessary to the determination 
but does not meet all applicable requirements established by the 
administering authority'' if the information is timely, can be 
verified, is not so incomplete that it cannot be used, and if the 
interested party acted to the best of its ability in providing the 
information. Where all of these conditions are met, the statute 
requires the Department to use the information if it can do so without 
undue difficulties.
    Mu Si claimed that it misreported its consumption factor for MDF 
used to produce cherry veneer nightstands. Mu Si explained this error 
and proposed a correction in a submission it made to the Department on 
June 17, 2008, subsequent to publication of the preliminary results in 
the Federal Register, and again in its case brief. However, Mu Si's 
proposed correction of the MDF consumption factor is incomplete based 
on additional evidence on the record.
    Given the late stage of the review when Mu Si claimed it 
misreported MDF consumption (i.e. after the preliminary results), the 
Department was unable to seek additional information from Mu Si to 
complete the record. Thus, the Department has incomplete information on 
the record and must rely on facts available to calculate the MDF 
consumption for control number 2, cherry veneer nightstands. See 
Section 776(a) of the Act. There is no evidence on the record of this 
segment of the proceeding that Mu Si failed to cooperate during these 
NSRs, thus the Department has not relied on adverse inferences under 
section 776(b) of the Act. As facts available, we employed Mu Si's 
original MDF consumption calculation as corrected for the alleged 
transposition error with respect to MDF, 12 mm thickness. Please see 
the Issues and Decision Memo at Comment 5 and the FOP memorandum for 
further discussion of this issue.

Surrogate Country

    In the Preliminary Results, we stated that although we 
preliminarily selected the Philippines as the surrogate country in the 
on-going administrative review of the wooden bedroom furniture 
antidumping duty order, there is no information on the record of these 
NSRs which would enable us to consider the Philippines as a surrogate 
country. See Preliminary Results at 73 FR 32295. As a result, we 
selected India as the surrogate country. Id. Since the Preliminary 
Results, no additional information has been placed on the record of 
this segment of the proceeding and no interested party has commented on 
the selection of India as the surrogate country. Therefore, we continue 
to determine that India is the appropriate surrogate country for the 
final results of these NSRs.

Separate Rates

    The Department found in the preliminary results that Bon Ten and Mu 
Si demonstrated a lack of de jure and de facto government control with 
respect to their export activities, and preliminarily determined they 
were eligible for separate rates. See Preliminary Results at 73 FR 
32294-95. No information has been placed on the record of this segment 
of the proceeding since the preliminary results to contradict our 
preliminary separate-rates determination. Therefore, for the final 
results, the Department continues to determine that Bon Ten and Mu Si 
are eligible for separate rates.

Final Results of the New Shipper Reviews

    The Department has determined that the following final dumping 
margins exist for the period January 1, 2007 through July 31, 2007:

                  Wooden Bedroom Furniture from the PRC
------------------------------------------------------------------------
                                                            Weighted-
                   Exporter/Producer                      Average Margin
                                                            (Percent)
------------------------------------------------------------------------
Dongguan Bon Ten Furniture Co., Ltd. / Dongguan Bon Ten           0.00
 Furniture Co., Ltd....................................
Dongguan Mu Si Furniture Co., Ltd. / Dongguan Mu Si              33.01
 Furniture Co., Ltd....................................
------------------------------------------------------------------------

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. For customers/importers of the respondents that 
did not report entered value, we have calculated customer/importer-
specific antidumping duty assessment amounts based on the ratio of the 
total amount of antidumping duties calculated for the examined sales of 
subject merchandise to the total quantity of subject merchandise sold 
in those transactions. For customers/importers of the respondents that 
reported entered value, we have calculated customer-specific 
antidumping duty assessment amounts based on customer/importer-specific 
ad valorem rates in accordance with 19 CFR 351.212(b)(1). The 
Department intends to issue assessment instructions to CBP 15 days 
after the date of publication of these final results of NSRs.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of these final results of NSRs for all shipments of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the publication date, as provided for by 
section 751(a)(2)(C) of the Act: 1) for the exporter/producer 
combinations listed above, the cash deposit rate will be the rates 
shown for those companies; 2) for previously investigated or reviewed 
PRC and non-PRC exporters not listed above that have separate rates, 
the cash deposit rate will continue to be the exporter-specific rate or 
combination rate published for the most recent period; 3) for all PRC 
exporters of subject merchandise which have not been found to be 
entitled to a separate rate, the cash deposit rate will be the PRC-wide 
rate of 216.01 percent; and 4) for all non-PRC exporters of subject 
merchandise which have not received their own rate, the cash deposit 
rate will be the rate applicable to the PRC exporters that supplied 
that non-PRC exporter. These deposit requirements shall remain in 
effect until further notice.

Notification of Interested Parties

    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.

[[Page 64919]]

    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 the APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. 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.

Disclosure

    We will disclose the calculations performed for these final results 
within five days of the date of publication of this notice to 
interested parties in accordance with 19 CFR 351.224(b).
    We are issuing and publishing these final results and notice in 
accordance with sections 751(a)(2)(B), 751(a)(2)(C), and 777(i)(1) of 
the Act and 19 CFR 351.221(b)(5).

    Dated: October 24, 2008.
Stephen J. Claeys,
Acting Assistant Secretaryfor Import Administration.

Appendix: Issues Covered in the Issues and Decision Memo

    Issue 1: Whether the Department Should Correct a Computational 
Error Made by Dongguan Mu Si Furniture Co., Ltd. in its calculation of 
Medium Density Fiberboard Consumption.
    Issue 2: Whether the Department Should Correct Average Unit Values 
(``AUVs'') for Certain Factors of Production (``FOP'').
    Issue 3: Whether the Department Should Correct Domestic Movement 
Expenses.
    Issue 4: Whether the Department Should Convert Units of Measure for 
Certain FOPs.
    Issue 5: Whether the Department Should Continue to Use the 
Financial Statements of 13 Indian Companies to Calculate Surrogate 
Financial Ratios.
[FR Doc. E8-26036 Filed 10-30-08; 8:45 am]
BILLING CODE 3510-DS-S