[Federal Register Volume 74, Number 86 (Wednesday, May 6, 2009)]
[Notices]
[Pages 20920-20922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-10508]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-868


Affirmative Final Determination of Circumvention of the 
Antidumping Duty Order on Folding Metal Tables and Chairs from the 
People's Republic of China

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

ACTION: Notice of Final Determination of Circumvention of Antidumping 
Duty Order

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SUMMARY: We determine that imports from the People's Republic of China 
(``PRC'') of folding metal tables with legs connected by cross-bars, so 
that the legs fold in sets, and otherwise meeting the description of 
in-scope merchandise, are within the class or kind of merchandise 
subject to the order on folding metal tables and chairs (``FMTCs'') 
from the PRC.

EFFECTIVE DATE: May 6, 2009.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Charles Riggle, 
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-
6412 or (202) 482-0650, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 27, 2008, the Department of Commerce (``Department'') 
published its preliminary affirmative determination that folding metal 
tables with cross-bars are circumventing the antidumping duty order on 
FMTCs from the PRC.\1\ We invited interested parties to comment on our 
preliminary results. On November 26, 2008, Meco Corporation (``Meco''), 
the petitioner in the underlying investigation, Cosco Home and Office 
Products (``Cosco''),\2\ an importer of subject merchandise, and 
Lifetime Products, Inc. and Lifetime (Xiamen) Plastic Products Ltd. 
(collectively, ``Lifetime''), a PRC producer/exporter of folding metal 
tables, submitted case briefs.
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    \1\ See Affirmative Preliminary Determination of Circumvention 
of the Antidumping Duty Order on Folding Metal Tables and Chairs 
from the People's Republic of China, 73 FR 63684 (October 27, 2008) 
(``Preliminary Determination'').
    \2\ Cosco submitted a revised case brief on January 7, 2009, 
with all untimely submitted new factual information, as well as all 
references and arguments based thereupon, redacted.
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    On January 12, 2009, Feili Furniture Development Limited Quanzhou 
City, Feili Furniture Development Co., Ltd., Feili Group (Fujian) Co., 
Ltd., and Feili (Fujian) Co., Ltd. (collectively ``Feili''), a PRC 
producer/exporter of folding metal tables, submitted rebuttal comments. 
On January 16, 2009, Meco, Cosco, Lifetime, and New-Tec Integration 
(Xiamen) Co., Ltd. and New-Tec Integration Co., Ltd. (collectively 
``New-Tec''), a PRC producer/exporter of folding metal tables, 
submitted rebuttal comments.

Scope of the Order

    The products covered by this order consist of assembled and 
unassembled folding tables and folding chairs made primarily or 
exclusively from steel or other metal, as described below:
    1) Assembled and unassembled folding tables made primarily or 
exclusively from steel or other metal (folding metal tables). Folding 
metal tables include square, round, rectangular, and any other shapes 
with legs affixed with rivets, welds, or any other type of fastener, 
and which are made most commonly, but not exclusively, with a hardboard 
top covered with vinyl or fabric. Folding metal tables have legs that 
mechanically fold independently of one another, and not as a set. The 
subject merchandise is commonly, but not exclusively, packed singly, in 
multiple packs of the same item, or in five piece sets consisting of 
four chairs and one table. Specifically excluded from the scope of the 
order regarding folding metal tables are the following:
    Lawn furniture;
    Trays commonly referred to as ``TV trays;''
    Side tables;
    Child-sized tables;
    Portable counter sets consisting of rectangular tables 36'' high 
and matching stools; and, Banquet tables. A banquet table is a 
rectangular table with a plastic or laminated wood table top 
approximately 28'' to 36'' wide by 48'' to 96'' long and with a set of 
folding legs at each end of the table. One set of legs is composed of 
two individual legs that are affixed together by one or more cross-
braces using welds or fastening hardware. In contrast, folding metal 
tables have legs that mechanically fold independently of one another, 
and not as a set.
    2) Assembled and unassembled folding chairs made primarily or 
exclusively from steel or other metal (folding metal chairs). Folding 
metal chairs include chairs with one or more

[[Page 20921]]

cross-braces, regardless of shape or size, affixed to the front and/or 
rear legs with rivets, welds or any other type of fastener. Folding 
metal chairs include: those that are made solely of steel or other 
metal; those that have a back pad, a seat pad, or both a back pad and a 
seat pad; and those that have seats or backs made of plastic or other 
materials. The subject merchandise is commonly, but not exclusively, 
packed singly, in multiple packs of the same item, or in five piece 
sets consisting of four chairs and one table. Specifically excluded 
from the scope of the order regarding folding metal chairs are the 
following:
    Folding metal chairs with a wooden back or seat, or both;
    Lawn furniture;
    Stools;
    Chairs with arms; and
    Child-sized chairs.
    The subject merchandise is currently classifiable under subheadings 
9401.71.0010, 9401.71.0030, 9401.79.0045, 9401.79.0050, 9403.20.015, 
9403.20.0030, 9403.70.8010, 9403.70.8020, and 9403.70.8030 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the Department's written description of the merchandise is 
dispositive.
    Based on a request by RPA International Pty., Ltd. and RPS, LLC 
(collectively, ``RPA''), the Department ruled on January 13, 2003, that 
RPA's poly-fold metal folding chairs are within the scope of the order 
because they are identical in all material respects to the merchandise 
described in the petition, the initial investigation, and the 
determinations of the Secretary.
    On May 5, 2003, in response to a request by Staples, the Office 
Superstore Inc. (``Staples''), the Department issued a scope ruling 
that the chair component of Staples' ``Complete Office-To-Go,'' a 
folding chair with a tubular steel frame and a seat and back of 
plastic, with measurements of: height: 32.5 inches; width: 18.5 inches; 
and depth: 21.5 inches, is covered by the scope of the order because it 
is identical in all material respects to the scope description in the 
order, but that the table component, with measurements of: width (table 
top): 43 inches; depth (table top): 27.375 inches; and height: 34.875 
inches, has legs that fold as a unit and meets the requirements for an 
exemption from the scope of the order.
    On September 7, 2004, the Department found that table styles 4600 
and 4606 produced by Lifetime Plastic Products Ltd. are within the 
scope of the order because these products have all of the components 
that constitute a folding metal table as described in the scope.
    On July 13, 2005, the Department issued a scope ruling determining 
that ``butterfly'' chairs are not within the scope of the antidumping 
duty order because they do not meet the physical description of 
merchandise covered by the scope of the order because they do not have 
cross braces affixed to the front and/or rear legs, and the seat and 
back is one piece of cloth that is not affixed to the frame with 
screws, rivets, welds, or any other type of fastener.
    On July 13, 2005, the Department issued a scope ruling determining 
that folding metal chairs imported by Korhani of America Inc. are 
within the scope of the antidumping duty order because the wooden seat 
is padded with foam and covered with fabric or polyvinyl chloride, 
attached to the tubular steel seat frame with screws, and has cross 
braces affixed to its legs.
    On May 1, 2006, the Department issued a scope ruling determining 
that ``moon chairs'' are not included within the scope of the 
antidumping duty order because moon chairs have different physical 
characteristics, different uses, and are advertised differently that 
chairs covered by the scope of the order.
    On October 4, 2007, the Department issued a scope ruling 
determining that International E-Z Up Inc.'s (``E-Z Up'') Instant Work 
Bench is not included within the scope of the antidumping duty order 
because its legs and weight do not match the description of the folding 
metal tables in the scope of the order.
    On April 18, 2008, the Department issued a scope ruling determining 
that the VIKA Twofold 2-in-1 Workbench/Scaffold (``Twofold Workbench/
Scaffold'') imported by Ignite USA, LLC from the PRC is not included 
within the scope of the antidumping duty order because its rotating leg 
mechanism differs from the folding metal tables subject to the order, 
i.e., the folding mechanisms of the Twofold Workbench/Scaffold are 
mechanisms that rotate either upward or downward at the sides of the 
top among three modes with locking devices. In storage mode, the legs 
can be folded in under either the fiberboard surface or under the 
scaffold surface. In addition, its weight is twice as much as the 
expected maximum weight for folding metal tables within the scope of 
the order.
    As a result of this affirmative final determination of 
circumvention, the Department has determined that folding metal tables 
with legs affixed with cross-bars enabling the legs to fold in sets are 
covered by the scope of the antidumping duty order on folding metal 
tables and chairs from the PRC. Such tables are distinguishable from 
banquet tables, which are not subject to the antidumping duty order 
because, but for the cross-bars located near the table top that 
connects the legs, enabling the legs to fold in sets, these tables 
otherwise meet the description of merchandise subject to the order.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
this review are addressed in the memorandum from John M. Andersen, 
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Import Administration, ``Final Analysis Memorandum for the Minor 
Alterations Anti-Circumvention Inquiry of the Antidumping Duty Order on 
Folding Metal Tables and Chairs from the People's Republic of China'' 
(February 19, 2009) (``Final Analysis Memorandum''), which is hereby 
adopted by this notice. A list of the issues that parties raised and to 
which we responded in the Final Analysis Memorandum is attached to this 
notice as an appendix. The Final Analysis Memorandum is a public 
document and is on file in the Central Records Unit (``CRU'') in room 
1117 in the main Department building, and is also accessible on the Web 
at http://ia.ita.doc.gov/frn. The paper copy and electronic version of 
the memorandum are identical in content.

Final Ruling

    In the case of an allegation of a ``minor alteration'' claim under 
section 781(c) of the Tariff Act of 1930, as amended (``the Act''), it 
is the Department's practice to look at the five factors listed in the 
Senate Finance Committee report to determine if circumvention exists in 
a particular case.\3\ Because each anti-circumvention inquiry is highly 
dependent on the facts on the record, and must be analyzed in light of 
those specific facts, the Department has historically analyzed several 
additional criteria to determine

[[Page 20922]]

if circumvention of the order is taking place.\4\
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    \3\ See Omnibus Trade Act of 1987, Report of the Senate Finance 
Committee, S. Rep. No. 71, 100th Cong., 1st Sess., at 100 (1987) 
(``Senate Finance Committee Report''), which explained that in 
circumvention inquiries regarding minor alterations, the Department 
should consider such criteria as the overall physical 
characteristics of the merchandise, the expectations of the ultimate 
users, the use of the merchandise, the channels of marketing and the 
cost of any modification relative to the total value of the imported 
products.
    \4\ See, e.g., Preliminary Determination of Circumvention of 
Antidumping Order; Cut-to-Length Carbon Steel Plate from Canada, 65 
FR 64926, 64929-31 (October 31, 2000).
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    For this final determination, we continue to rely on the criteria 
that we considered in making our preliminary determination.\5\ Based on 
our review of the record evidence and our analysis of the comments 
received, the Department continues to find that imports from the PRC of 
folding metal tables with legs connected by cross-bars, so that the 
legs fold in sets, and otherwise meet the description of in-scope 
merchandise, are circumventing the order and are properly considered to 
be within the class or kind of merchandise subject to the order on 
FMTCs from the PRC. For a complete discussion of the Department's 
analysis, see the Final Analysis Memorandum, dated concurrently with 
this notice.
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    \5\ See Preliminary Determination, 73 FR 63684.
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    As explained in the Final Analysis Memorandum in Comment 2, we 
determine that the folding metal tables with cross-bars at issue in 
this case are not expressly excluded from the order. The order 
expressly excluded banquet tables. No party has argued that these 
folding metal tables with cross-bars are banquet tables. As a result of 
our analysis of the overall physical characteristics of the products 
subject to this inquiry, we find that the PRC producers and exporters 
produce and export to the United States folding metal tables that match 
the physical description of folding metal tables in the scope of the 
FMTCs order except for the presence of cross-bars connecting the legs 
placed near the table top.\6\ But for the addition of these cross-bars, 
these tables would be within the scope of the order.
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    \6\ See Final Analysis Memorandum; see also Preliminary Analysis 
Memorandum for the Minor Alterations Circumvention Inquiry of the 
Antidumping Duty Order on Folding Metal Tables and Chairs from the 
People's Republic of China, at 12 (October 20, 2008) (``Preliminary 
Analysis Memo'').
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    There are no significant differences in the expectations of the 
ultimate users,\7\ uses of the merchandise,\8\ and channels of 
marketing between folding metal tables with and without cross-bars.\9\ 
None of the companies, either producers or customers, provided evidence 
of customer involvement in the design of the tables with cross-
bars.\10\ As explained in the Final Analysis Memorandum, there are also 
no differences in the manner in which the folding metal tables with 
cross-bars are advertised or displayed compared with folding metal 
tables without cross-bars.\11\ Furthermore, producers of such tables in 
the PRC acknowledged that the cost of adding cross-bars to tables in 
the course of production is negligible.\12\ Moreover, we find that test 
results -- purported to demonstrate improvements to the tables as a 
result of the addition of cross-bars -- do not demonstrate that the 
addition of cross-bars improved the strength or stability of folding 
metal tables. Furthermore, although parties alluded to other supposed 
advantages attributable to the addition of cross-bars, i.e., 
elimination of pinch points and quicker folding time, the record 
demonstrates that companies' advertisements for folding metal tables do 
not indicate that a cross-bar exists, much less that it represents an 
advantage over tables without cross-bars.\13\ Therefore, we do not find 
that the cross-bars that are located near the table top provide a 
significant advantage.
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    \7\ See id., at 13.
    \8\ See id., at 15.
    \9\ See id., at 16.
    \10\ See id., at 21.
    \11\ See Final Analysis Memorandum, at 18-20; see also 
Preliminary Analysis Memorandum, at 18-19.
    \12\ See Preliminary Analysis Memorandum, at 17.
    \13\ See Final Analysis Memo at 13-18; see also Preliminary 
Analysis Memorandum, at 24.
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    As a result of our inquiry, we determine that imports from the PRC 
of folding metal tables with legs connected by cross-bars, so that the 
legs fold in sets, and otherwise meeting the description of in-scope 
merchandise, are circumventing the order and are properly considered to 
be within the class or kind of merchandise subject to the order on 
FMTCs from the PRC. See Section 781(c) of the Act.

Continuation of Suspension of Liquidation

    In accordance with section 351.225(i) of the Department's 
regulations, for folding metal tables meeting the description of the 
folding metal tables described in the scope of the FMTCs order except 
that they have cross-bars connecting the legs, so that the legs fold in 
sets, we are directing U.S. Customs and Border Protection (``CBP'') to 
continue to suspend liquidation and to require a cash deposit of 
estimated duties at the applicable rates for each unliquidated entry of 
the product entered, or withdrawn from warehouse, for consumption on or 
after June 1, 2007. With a final affirmative determination of 
circumvention, the Department normally instructs CBP to continue the 
suspension of liquidation that was directed in the affirmative 
preliminary determination of circumvention, pursuant to 19 CFR 
351.225(l)(3). However, because doing so in the instant inquiry would 
include merchandise that entered during a completed review period, we 
will instruct CBP to continue to suspend liquidation for entries made 
on or after July 1, 2007, the first day of the only pending 
administrative review period of this order.
    This final determination of circumvention is in accordance with 
section 781(c) of the Act and 19 CFR 351.225.

    Dated: April 28, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

APPENDIX

List of Comments and Final Analysis Memorandum

Comment 1:Whether the Department Should Terminate the Anti-
Circumvention Inquiry
Comment 2:Whether Folding Metal Tables with Cross-Bars Are Expressly 
Excluded from the Scope
Comment 3:Whether Folding Metal Tables with Cross-Bars Are 
Significantly Different from the In-Scope Merchandise
Comment 4:Whether Folding Metal Tables with Cross-Bars Represent a 
Significant Improvement over Folding Metal Tables with Independently 
Folding Legs
Comment 5:Whether to Deny Feili's Partial Revocation Request
[FR Doc. E9-10508 Filed 5-5-09; 8:45 am]
BILLING CODE 3510-DS-S