[Federal Register Volume 75, Number 222 (Thursday, November 18, 2010)]
[Notices]
[Pages 70714-70719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29119]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-970]
Multilayered Wood Flooring From the People's Republic of China:
Initiation of Antidumping Duty Investigation
DATES: Effective Date: November 18, 2010.
FOR FURTHER INFORMATION CONTACT: Brandon Petelin, John Hollwitz or
Charles Riggle, AD/CVD Operations, Office 8, (202) 482-8173, (202) 482-
2336 or (202) 482-0650, respectively; Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION: On October 21, 2010, the Department of
Commerce (``Department'') received a petition concerning imports of
multilayered wood flooring from the People's Republic of China
(``PRC'') filed in proper form by the Coalition for American Hardwood
Parity \1\ (``Petitioner''). See Petitions for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring from
the People's Republic of China dated October 21, 2010 (``Petition'').
On October 27, 2010, the Department issued requests for information and
clarification of certain areas of the Petition. Petitioner timely filed
additional information on October 29, 2010,\2\ November 2, 2010,\3\
November 3, 2010,\4\ November 8, 2010 \5\ and November 9, 2010.\6\
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\1\ The Coalition for American Hardwood Parity is comprised of
Anderson Hardwood Floors, LLC, Award Hardwood Floors, Baker's Creek
Wood Floors, Inc., From the Forest, Howell Hardwood Flooring,
Mannington Mills, Inc., Nydree Flooring and Shaw Industries Group,
Inc.
\2\ See Supplement to the Petition for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring
from the People's Republic of China, dated October 29, 2010
(``Supplement to the AD Petition'').
\3\ See Supplement to the Petition for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring
from the People's Republic of China, dated November 2, 2010
(``Supplement to the AD/CVD Petitions'').
\4\ See Supplement to the Petition for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring
from the People's Republic of China, dated November 3, 2010
(``Second Supplement to the AD/CVD Petitions'').
\5\ See Letter regarding the Petition for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring
from the People's Republic of China, dated November 8, 2010.
\6\ See Letter regarding the Petition for the Imposition of
Antidumping and Countervailing Duties: Multilayered Wood Flooring
from the People's Republic of China, dated November 9, 2010.
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On November 4, 2010, we received comments from Lumber Liquidators
Services, LLC (``Lumber Liquidators'') and Home Legend, LLC (``Home
Legend''), U.S. importers of multilayered wood flooring. Lumber
Liquidators and Home Legend are interested parties as defined by
section 771(9)(A) of the Tariff Act of 1930, as amended (``the Act'').
Additionally, on November 9, 2010, we received further comments filed
by Lumber Liquidators, Home Legend and U.S. Floors LLC.
Period of Investigation
The period of investigation (``POI'') is April 1, 2010, through
September 30, 2010. See 19 CFR 351.204(b)(1).
[[Page 70715]]
In accordance with section 732(b) of the Act, Petitioner alleged
that imports of multilayered wood flooring from the PRC are being, or
are likely to be, sold in the United States at less than fair value,
within the meaning of section 731 of the Act, and that such imports are
materially injuring, or threatening material injury to, an industry in
the United States.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because Petitioner is an interested party, as
defined in sections 771(9)(C), (E) and (F) of the Act, and has
demonstrated sufficient industry support with respect to the
antidumping duty investigation that Petitioner is requesting the
Department to initiate (see ``Determination of Industry Support for the
Petition'' section below).
Scope of the Investigation
The products covered by this investigation are multilayered wood
flooring from the PRC. For a full description of the scope of the
investigation, see ``Scope of Investigation,'' in Appendix I of this
notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. As a result, the
``Scope of Investigation'' language has been modified from the language
in the Petition to reflect these clarifications. Moreover, as discussed
in the preamble to the regulations (see Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)),
we are setting aside a period for interested parties to raise issues
regarding product coverage. The Department encourages interested
parties to submit such comments by Tuesday, November 30, 2010, which is
twenty calendar days from the signature date of this notice. Comments
should be addressed to Import Administration's APO/Dockets Unit, Room
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue,
NW., Washington, DC 20230. The period of scope consultations is
intended to provide the Department with ample opportunity to consider
all comments and to consult with parties prior to the issuance of the
preliminary determination.
Comments on Product Characteristics for Antidumping Duty Questionnaires
We are requesting comments from interested parties regarding the
appropriate physical characteristics of multilayered wood flooring to
be reported in response to the Department's antidumping questionnaires.
This information will be used to identify the key physical
characteristics of the merchandise under consideration in order to more
accurately report the relevant factors and costs of production, as well
as to develop appropriate product comparison criteria.
Interested parties may provide information or comments that they
believe are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics; and (2) the product comparison criteria. We note that
it is not always appropriate to use all product characteristics as
product comparison criteria. We base product comparison criteria on
meaningful commercial differences among products. In other words, while
there may be some physical product characteristics utilized by
manufacturers to describe multilayered wood flooring, it may be that
only a select few product characteristics take into account
commercially meaningful physical characteristics. In addition,
interested parties may comment on the order in which the physical
characteristics should be used in product matching. Generally, the
Department attempts to list the most important physical characteristics
first and the least important characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping duty questionnaires, we must
receive comments at the above-referenced address by November 30, 2010.
Additionally, rebuttal comments must be received by December 7, 2010.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The ITC, which is responsible for determining
whether ``the domestic industry'' has been injured, must also determine
what constitutes a domestic like product in order to define the
industry. While both the Department and the ITC must apply the same
statutory definition regarding the domestic like product (see section
771(10) of the Act), they do so for different purposes and pursuant to
a separate and distinct authority. In addition, the Department's
determination is subject to limitations of time and information.
Although this may result in different definitions of the like product,
such differences do not render the decision of either agency contrary
to law. See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp.
639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied
492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that multilayered wood flooring
constitutes a single domestic like product and we have analyzed
industry support in terms of that domestic like product. For a
discussion of the domestic like product analysis in this case, see
Antidumping Duty Investigation Initiation Checklist: Multilayered Wood
Flooring from the
[[Page 70716]]
People's Republic of China (``Initiation Checklist''), at Attachment
II, Analysis of Industry Support for the Petitions Covering
Multilayered Wood Flooring from the People's Republic of China, on file
in the Central Records Unit (CRU), Room 7046 of the main Department of
Commerce building.
In determining whether Petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, Petitioner provided its production volume
of the domestic like product in 2009, and compared this to the
estimated total production volume of the domestic like product for the
entire domestic industry. See Volume I of the Petitions, at 4-5, and
Exhibit I-3; see also Supplement to the AD/CVD Petitions dated November
2, 2010, at 2; Second Supplement to the AD/CVD Petitions dated November
3, 2010, at 1-2 and Exhibit I-K. Petitioner estimated 2009 production
volume of the domestic like product by non-petitioning companies based
on its knowledge of the industry. We have relied upon data Petitioner
provided for purposes of measuring industry support. For further
discussion, see Initiation Checklist at Attachment II.
On November 4, 2010, we received a submission on behalf of
importers of multilayered wood flooring, interested parties to this
proceeding as defined in section 771(9)(A) of the Act, questioning the
industry support calculation. See Initiation Checklist at Attachment
II. On November 8 and 9, 2010, Petitioner filed replies to the
importers' industry support challenge. The importers filed an
additional submission on November 9, 2010. For further discussion of
these submissions see Initiation Checklist at Attachment II.
Based on information provided in the Petition, supplemental
submissions, and other information readily available to the Department,
we determine that the domestic producers and workers have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petition account for at least 25 percent of the total production of the
domestic like product. Because the Petition and supplemental
submissions did not establish support from domestic producers (or
workers) accounting for more than 50 percent of the total production of
the domestic like product, the Department was required to take further
action in order to evaluate industry support. See section 732(c)(4)(D)
of the Act. In this case, the Department was able to rely on other
information, in accordance with section 732(c)(4)(D)(i) of the Act, to
determine industry support. See Initiation Checklist at Attachment II;
see also Memorandum to the File from Victoria Flynn, dated November 3,
2010. Based on information provided in the Petition, other submissions,
and additional information obtained by the Department, the domestic
producers and workers have met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition. Accordingly, the Department determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act. See Initiation Checklist at Attachment
II.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C), (E) and (F) of the Act and they have demonstrated
sufficient industry support with respect to the antidumping duty
investigations that they are requesting the Department initiate. Id.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal value (``NV''). In addition, Petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.
Petitioner contends that the industry's injured condition is
illustrated by reduced market share, reduced production, reduced
shipments, reduced capacity and capacity utilization, underselling and
price depression or suppression, reduced employment, hours worked, and
wages paid, decline in financial performance, lost sales and revenue,
and increase in import penetration. See Vol. I of the Petition, at 16-
60. We have assessed the allegations and supporting evidence regarding
material injury, threat of material injury, and causation, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Checklist at Attachment III, Injury.
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate this investigation of imports of multilayered wood flooring
from the PRC. The sources of data for the deductions and adjustments
relating to the U.S. price and the factors of production are also
discussed in the initiation checklist. See Initiation Checklist.
U.S. Price
Petitioner calculated export price (``EP'') based on documentation
of offers for sales obtained from a proprietary source. See Initiation
Checklist; see also Volume II of the Petition, at 1-2 and Exhibit II-1.
Normal Value
Petitioner claims the PRC is a non-market economy (``NME'') country
and that no determination to the contrary has been made by the
Department. See Volume II of the Petition, at 3. The presumption of NME
status for the PRC has not been revoked by the Department and,
therefore, in accordance with section 771(18)(C)(i) of the Act, remains
in effect for purposes of the initiation of this investigation.
Accordingly, the NV of the product for the PRC investigation is
appropriately based on factors of production valued in a surrogate
market-economy country in accordance with section 773(c) of the Act. In
the course of this investigation, all parties, including the public,
will have the opportunity to provide relevant information related to
the issue of the PRC's NME status and the granting of separate rates to
individual exporters.
Petitioner contends that Indonesia is the appropriate surrogate
country for the PRC because: (1) It is at a level of economic
development comparable to that of the PRC and (2) it is a significant
producer of comparable merchandise. See Volume II of the Petition, at
3-6, and Exhibits II-2, II-3, and II-4. Based on the information
provided by Petitioner, we believe that it is appropriate to use
Indonesia as a surrogate country for initiation purposes. After
initiation of the investigation, interested parties will have the
opportunity to submit comments regarding surrogate country selection
and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an
opportunity to submit publicly available information to value factors
of production within 40 days after the date
[[Page 70717]]
of publication of the preliminary determination.
Petitioner calculated NV and the dumping margins using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. In calculating NV, Petitioner based the quantity of
each of the inputs used to manufacture multilayered wood flooring in
the PRC on product-specific consumption rates of a multilayered wood
flooring producer in the United States (``Surrogate Domestic
Producer'') for identical or similar merchandise during the POI. See
Volume II of the Petition, at 6-8 and Exhibits II-5 and II-6.
Petitioner states that the actual usage rates of the foreign
manufacturers of multilayered wood flooring are not reasonably
available; however, Petitioner notes that according to the information
available, the production of multilayered wood flooring in the PRC
relies on similar production methods to the Surrogate Domestic
Producer. See Volume II of the Petition, at 6-7 and Exhibit II-5.
As noted above, Petitioner determined the consumption quantities of
all raw materials based on the production experience of the Surrogate
Domestic Producer. Petitioner valued most of the factors of production
based on reasonably available, public surrogate country data,
specifically, Indonesian import statistics from the Global Trade Atlas
(``GTA''). See Volume II of the Petition, at 8-12 and Exhibits II-6 and
II-7; see also Supplement to the AD Petition, at Supplemental Exhibit
II-B. Petitioner excluded from these import statistics imports from
countries previously determined by the Department to be NME countries.
Petitioner also excluded import statistics from India, the Republic of
Korea and Thailand, as the Department has previously excluded prices
from these countries because they maintain broadly available, non-
industry-specific export subsidies. See Volume II of the Petition, at
Exhibit II-7. In addition, Petitioner made currency conversions, where
necessary, based on the POI-average rupiah/U.S. dollar exchange rate,
as reported on the Department's Web site. See Volume II of the
Petition, at 8 and Exhibit II-6. Petitioner determined labor costs
using the labor consumption, in hours, derived from the Surrogate
Domestic Producer's experience. See Volume II of the Petition, at 8 and
Exhibit II-5. For purposes of initiation, the Department determines
that the surrogate values used by Petitioner are reasonably available
and, thus, acceptable for purposes of initiation.
Petitioner determined energy and utility costs using the usage
rates derived from the Surrogate Domestic Producer's experience. See
Volume II of the Petition, at 10 and Exhibit II-6. However, when
constructing the NV of the subject merchandise, Petitioner did not
individually incorporate the diesel fuel, electricity, and water inputs
into the normal value calculation, because Petitioner could not
segregate energy costs from the surrogate financial statements, and so
accounted for the diesel fuel, electricity, and water costs in the
calculation of surrogate financial ratios. Id. This is consistent with
the Department's recent decision in Citric Acid and Certain Citrate
Salts From the People's Republic of China: Final Affirmative
Determination of Sales at Less Than Fair Value, 74 FR 16838 (April 13,
2009), and accompanying Issues and Decision Memorandum at Comment 2.
See Volume II of the Petition, at 11 and Exhibit II-6; see also
Supplement to the AD Petition, at Supplemental Exhibit II-B.
Petitioner determined labor costs using data from Chapter 5B of the
International Labour Organization's database to calculate a simple
average of industry-specific wage rates from a basket of countries that
are economically comparable to the PRC and are significant exporters of
the like merchandise. See Supplement to the AD Petition at 3, and
Supplemental Exhibit II-C; see also Letter regarding the Petition for
the Imposition of Antidumping and Countervailing Duties on Imports of
Multilayered Wood Flooring From the People's Republic of China:
Supplemental Questions, dated October 27, 2010.
Petitioner determined packing costs using consumption rates derived
from the Surrogate Domestic Producer's experience, valued using data
from the GTA. See Volume II of the Petition, at 12 and Exhibits II-6
and II-7.
Petitioner based factory overhead, selling, general and
administrative expenses, and profit on data from PT Tirta Mahakam
Resources, Tbk., an Indonesian manufacturer of multilayered wood
flooring, for the 2009 fiscal year. See Volume II of the Petition, at
11-12 and Exhibit II-12.
Fair-Value Comparisons
Based on the data provided by Petitioner, there is reason to
believe that imports of multilayered wood flooring from the PRC are
being, or are likely to be, sold in the United States at less than fair
value. Based on a comparison of U.S. prices and NV calculated in
accordance with section 773(c) of the Act, as described above, the
estimated dumping margins for multilayered wood flooring from the PRC
range from 194.49 percent to 280.60 percent. See Initiation Checklist
and Supplement to the AD Petition at Exhibit II-B.
Initiation of Antidumping Investigation
Based upon the examination of the Petition on multilayered wood
flooring from the PRC, the Department finds the Petition meets the
requirements of section 732 of the Act. Therefore, we are initiating an
antidumping duty investigation to determine whether imports of
multilayered wood flooring from the PRC are being, or are likely to be,
sold in the United States at less than fair value. In accordance with
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determination no later than 140
days after the date of this initiation.
Targeted Dumping Allegations
On December 10, 2008, the Department issued an interim final rule
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the
regulatory provisions governing the targeted dumping analysis in
antidumping duty investigations, and the corresponding regulation
governing the deadline for targeted dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930
(December 10, 2008). The Department stated that ``withdrawal will allow
the Department to exercise the discretion intended by the statute and,
thereby, develop a practice that will allow interested parties to
pursue all statutory avenues of relief in this area.'' Id. at 74931.
In order to accomplish this objective, if any interested party
wishes to make a targeted dumping allegation in this investigation
pursuant to section 777A(d)(1)(B) of the Act, such allegation is due no
later than 45 days before the scheduled date of the preliminary
determination.
Respondent Selection
For this investigation, the Department will request quantity and
value information from known exporters and producers identified with
complete contact information in the Petition. The quantity and value
data received from NME exporters/producers will be used as the basis to
select the mandatory respondents.
The Department requires that the respondents submit a response to
both the quantity and value questionnaire and the separate-rate
application by the
[[Page 70718]]
respective deadlines in order to receive consideration for separate-
rate status. See Circular Welded Austenitic Stainless Pressure Pipe
from the People's Republic of China: Initiation of Antidumping Duty
Investigation, 73 FR 10221, 10225 (February 26, 2008); Initiation of
Antidumping Duty Investigation: Certain Artist Canvas From the People's
Republic of China, 70 FR 21996, 21999 (April 28, 2005). On the date of
the publication of this initiation notice in the Federal Register, the
Department will post the quantity and value questionnaire along with
the filing instructions on the Import Administration Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html, and a response to the
quantity and value questionnaire is due no later than December 3, 2010.
Also, the Department will send the quantity and value questionnaire to
those PRC companies identified in Volume I of the Petition, at Exhibit
I-6.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.
Separate Rates Application
In order to obtain separate-rate status in NME investigations,
exporters and producers must submit a separate-rate status application.
See Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries, dated April 5, 2005 (``Policy Bulletin''), available
on the Department's Web site at http://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in processing the separate-rate
applications in previous antidumping duty investigations, we have
modified the application for this investigation to make it more
administrable and easier for applicants to complete. See, e.g.,
Initiation of Antidumping Duty Investigation: Certain New Pneumatic
Off-the-Road Tires From the People's Republic of China, 72 FR 43591,
43594-95 (August 6, 2007). The specific requirements for submitting the
separate-rate application in this investigation are outlined in detail
in the application itself, which will be available on the Department's
Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the
date of publication of this initiation notice in the Federal Register.
The separate-rate application will be due 60 days after publication of
this initiation notice. For exporters and producers who submit a
separate-rate status application and subsequently are selected as
mandatory respondents, these exporters and producers will no longer be
eligible for consideration for separate rate status unless they respond
to all parts of the questionnaire as mandatory respondents. As noted in
the ``Respondent Selection'' section above, the Department requires
that respondents submit a response to both the quantity and value
questionnaire and the separate rate application by the respective
deadlines in order to receive consideration for separate-rate status.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Policy Bulletin states:
{W{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME investigations will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.
See Policy Bulletin at 6 (emphasis added).
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petition have been
provided to the representatives of the Government of the PRC. Because
of the large number of producers/exporters identified in the Petition,
the Department considers the service of the public version of the
Petition to the foreign producers/exporters satisfied by the delivery
of the public version to the Government of the PRC, consistent with 19
CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than December 6,
2010, whether there is a reasonable indication that imports of
multilayered wood flooring from the PRC are materially injuring, or
threatening material injury to a U.S. industry. A negative ITC
determination will result in the investigation being terminated;
otherwise, this investigation will proceed according to statutory and
regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 10, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Appendix I--Scope of the Investigation
Multilayered wood flooring is composed of an assembly of two or
more layers or plies of wood veneer(s) \7\ in combination with a
core. The several layers, along with the core, are glued or
otherwise bonded together to form a final assembled product.
Multilayered wood flooring is often referred to by other terms,
e.g., ``engineered wood flooring'' or ``plywood flooring.''
Regardless of the particular terminology, all products that meet the
description set forth herein are intended for inclusion within the
definition of subject merchandise.
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\7\ A ``veneer'' is a thin slice of wood, rotary cut, sliced or
sawed from a log, bolt or flitch. Veneer is referred to as a ply
when assembled.
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All multilayered wood flooring is included within the definition
of subject merchandise, without regard to: Dimension (overall
thickness, thickness of face ply, thickness of back ply, thickness
of core, and thickness of inner plies; width; and length); wood
species used for the face, back and inner veneers; core composition;
and face grade. Multilayered wood flooring included within the
definition of subject merchandise may be unfinished (i.e., without a
finally finished surface to protect the face veneer from wear and
tear) or ``prefinished'' (i.e., a coating applied to the face
veneer, including, but not exclusively, oil or oil-modified or
water-based polyurethanes, ultra-violet light cured polyurethanes,
wax, epoxy-ester finishes, moisture-cured urethanes and acid-curing
formaldehyde finishes.) The veneers may be also soaked in an
acrylic-impregnated finish. All multilayered wood flooring is
included within the definition of subject merchandise regardless of
whether the face (or back) of the product is smooth, wire brushed,
distressed by any method or multiple methods, or hand-scraped. In
addition, all multilayered wood flooring is included within the
definition of subject merchandise regardless of whether or not it is
manufactured with any interlocking or connecting mechanism (for
example, tongue-and-groove construction or locking joints). All
multilayered wood flooring is included within the definition of the
subject merchandise regardless of whether the product meets a
particular industry or similar standard.
[[Page 70719]]
The core of multilayered wood flooring may be composed of a
range of materials, including but not limited to hardwood or
softwood veneer, particleboard, medium-density fiberboard (MDF),
high-density fiberboard (HDF), stone and/or plastic composite, or
strips of lumber placed edge-to-edge.
Multilayered wood flooring products generally, but not
exclusively, may be in the form of a strip, plank, or other
geometrical patterns (e.g., circular, hexagonal). All multilayered
wood flooring products are included within this definition
regardless of the actual or nominal dimensions or form of the
product.
Specifically excluded from the scope are cork flooring and
bamboo flooring, regardless of whether any of the sub-surface layers
of either flooring are made from wood. Also excluded is laminate
flooring. Laminate flooring consists of a top wear layer sheet not
made of wood, a decorative paper layer, a core-layer of high-density
fiberboard, and a stabilizing bottom layer.
Imports of the subject merchandise are provided for under the
following subheadings of the Harmonized Tariff Schedule of the
United States (HTSUS): 4412.31.0520; 4412.31.0540; 4412.31.0560;
4412.31.2510; 4412.31.2520; 4412.31.4040; 4412.31.4050;
4412.31.4060; 4412.31.4070; 4412.31.5125; 4412.31.5135;
4412.31.5155; 4412.31.5165; 4412.31.3175; 4412.31.6000;
4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0560;
4412.32.2510; 4412.32.2520; 4412.32.3125; 4412.32.3135;
4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185;
4412.32.5600; 4412.39.1000; 4412.39.3000; 4412.39.4011;
4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032;
4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059;
4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5010;
4412.39.5030; 4412.39.5050; 4412.94.1030; 4412.94.1050;
4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3131;
4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100;
4412.94.5100; 4412.94.6000; 4412.94.7000; 4412.94.8000;
4412.94.9000; 4412.94.9500; 4412.99.0600; 4412.99.1020;
4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120;
4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160;
4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5710;
4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000;
4412.99.9500; 4418.71.2000; 4418.71.9000; 4418.72.2000; and
4418.72.9500.
In addition, imports of subject merchandise may enter the U.S.
under the following HTSUS subheadings: 4409.10.0500; 4409.10.2000;
4409.29.0515; 4409.29.0525; 4409.29.0535; 4409.29.0545;
4409.29.0555; 4409.29.0565; 4409.29.2530; 4409.29.2550;
4409.29.2560; 4418.71.1000; 4418.79.0000; and 4418.90.4605.
While HTSUS subheadings are provided for convenience and customs
purposes, the written description of the subject merchandise is
dispositive.
[FR Doc. 2010-29119 Filed 11-17-10; 8:45 am]
BILLING CODE 3510-DS-P