[Federal Register Volume 76, Number 118 (Monday, June 20, 2011)]
[Notices]
[Pages 35832-35842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14046]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-868]


Folding Metal Tables and Chairs From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative Review 
and New Shipper Review, and Intent To Revoke Order in Part

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

SUMMARY: The Department of Commerce (``the Department'') is conducting 
an administrative review (``AR'') and a new shipper review (``NSR'') of 
the antidumping duty order on folding metal tables and chairs from the 
People's Republic of China (``PRC''). The period of review (``POR'') 
for both reviews is June 1, 2009, through May 31, 2010. The 2009-2010 
administrative review covers Feili Group (Fujian) Co., Ltd. and Feili 
Furniture Development Limited Quanzhou City (collectively, ``Feili''), 
New-Tec Integration (Xiamen) Co., Ltd. (``New-Tec''), and Lifetime Hong 
Kong Ltd. (``Lifetime''). The NSR covers Xinjiamei Furniture 
(Zhangzhou) Co., Ltd. (``Xinjiamei Furniture''). We have preliminarily 
determined that Feili and New-Tec did not make sales in the United 
States at prices below normal value (``NV'') during the period of 
review (``POR'') but that Xinjiamei Furniture did. If these preliminary 
results are adopted in our final results of these reviews, we will 
instruct U.S. Customs and Border Protection (``CBP'') to liquidate 
entries of merchandise exported by Feili and New-Tec during the POR 
without regard to antidumping duties with respect to the AR, and we 
will instruct CBP to assess antidumping duties on entries of subject 
merchandise during the POR for which the importer-specific assessment 
rates are above de minimis.
    We invite interested parties to comment on these preliminary 
results. We intend to issue the final results no

[[Page 35833]]

later than 120 days from the date of publication of this notice, 
pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as amended 
(``the Act'').

DATES: Effective Date: June 20, 2011.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Trisha Tran, 
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 and (202) 482-4852 and, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On June 27, 2002, the Department published the antidumping duty 
order on folding metal tables and chairs from the PRC. See Antidumping 
Duty Order: Folding Metal Tables and Chairs From the People's Republic 
of China, 67 FR 43277 (June 27, 2002). On June 1, 2010, the Department 
published a notice of opportunity to request an administrative review 
of this order for the period June 1, 2009, through May 31, 2010.\1\
---------------------------------------------------------------------------

    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Review, 75 FR 30383 (June 1, 2010).
---------------------------------------------------------------------------

Administrative Review Requests

    In accordance with 19 CFR 351.213(b), interested parties made the 
following requests for an administrative review: (1) On June 22, 2010, 
Meco Corporation (``Meco''), a domestic producer of the like product, 
and Cosco Home & Office Products (``Cosco''), a U.S. importer of 
subject merchandise, requested that the Department conduct 
administrative reviews of Feili and New-Tec; (2) on June 28, 2010, 
Feili and Lifetime requested that the Department conduct administrative 
reviews of their respective sales; and (3) on June 30, 2010, New-Tec 
requested that the Department conduct an administrative review of its 
sales. On July 28, 2010, the Department initiated the 2009-2010 reviews 
for Feili, New-Tec, and Lifetime.\2\ On August 4, 2010, New-Tec 
submitted its revised certification for revocation.
---------------------------------------------------------------------------

    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Requests for Revocations in Part, 75 FR 
44224 (July 28, 2010) (``Initiation Notice'').
---------------------------------------------------------------------------

    In the Initiation Notice, parties were notified that because of the 
administrative burden of reviewing each company, the Department might 
exercise its authority to limit the number of respondents selected for 
individual review in accordance with section 777A(c)(2) of the Tariff 
Act of 1930, as amended (``the Act''). Accordingly, the Department 
requested that all companies listed in the Initiation Notice wishing to 
qualify for separate rate status in this administrative review complete 
either a separate rate application (``SRA'') or certification, as 
appropriate.\3\ The Department also stated in the Initiation Notice its 
intention to select respondents based on CBP data for U.S. imports 
during the POR. On September 21 and 22, 2010, Feili and New-Tec, 
respectively, submitted their separate-rate certification. On September 
27, 2010, Lifetime submitted its separate-rate application. Thus, for 
this administrative review, based on CBP data for U.S. imports during 
the POR, the Department limited to New-Tec and Feili the respondents 
selected for individual review.\4\ Although Lifetime was not selected 
as a mandatory respondent, it submitted sections A, C, and D 
questionnaire responses. See below for the discussion of the dates of 
submission.
---------------------------------------------------------------------------

    \3\ In order to demonstrate separate rate eligibility, the 
Department requires companies for which a review was requested that 
were assigned a separate rate in the previous segment of this 
proceeding to certify that they continue to meet the criteria for 
obtaining a separate rate. See Tapered Roller Bearings and Parts 
Thereof, Finished or Unfinished, from the People's Republic of 
China: Final Results of 2005-2006 Administrative Review and Partial 
Rescission of Review, 72 FR 56724 (October 4, 2007); upheld by Peer 
Bearing Co. v. United States, Slip Op. 08-134 (CIT 2008). For 
companies that have not previously been assigned a separate rate, 
the Department requires that they demonstrate eligibility for a 
separate rate by submitting a separate rate application.
    \4\ See the Department's Memorandum entitled, ``Administrative 
Review of the 2009-2010 Antidumping Duty Order on Folding Metal 
Tables and Chairs from the People's Republic of China: Respondent 
Selection,'' dated October 21, 2010.
---------------------------------------------------------------------------

    The Department issued an antidumping duty questionnaire to Feili 
and New-Tec on November 15, 2010. On December 3, 6, and 13, 2010, 
Feili, Lifetime, and New-Tec, respectively, submitted a section A 
questionnaire response (``AQR''), and on December 21 and 22, 2010, and 
January 5, 2011, Feili, Lifetime, and New-Tec, respectively, submitted 
section C and D questionnaire responses (``CQR'' and ``DQR,'' 
respectively).

New Shipper Review Request

    June 30, 2010, Xinjiamei Furniture requested that the Department 
conduct an NSR. On July 29, 2010, the Department initiated the NSR with 
respect to Xinjiamei Furniture.\5\ On August 13, 2010, the Department 
issued an antidumping duty questionnaire to Xinjiamei Furniture. 
Between September 13 and October 4, 2010, Xinjiamei Furniture submitted 
its sections A, C, and D questionnaire responses.
---------------------------------------------------------------------------

    \5\ See Folding Metal Tables and Chairs From the People's 
Republic of China: Initiation of New Shipper Review,75 FR 44767 
(July 29, 2010).
---------------------------------------------------------------------------

    On October 13, 2010, and January 19, 2011, the Department requested 
the Office of Policy to provide a list of surrogate countries for the 
administrative review and NSR, respectively.\6\ On October 13, 2010, 
and January 31, 2011, the Office of Policy issued its list of surrogate 
countries for the administrative review and NSR, respectively.\7\
---------------------------------------------------------------------------

    \6\ See Memorandum to Carole Showers, Director, Office of 
Policy, entitled, ``2009-2010 Administrative Review of the 
Antidumping Duty Order on Folding Metal Tables and Chairs from the 
People's Republic of China: Request for Surrogate Country 
Selection,'' dated October 13, 2010 and Memorandum to Carole 
Showers, Director, Office of Policy, entitled, ``2009-2010 New 
Shipper Review on Folding Metal Tables and Chairs from the People's 
Republic of China: Request for Surrogate Country Selection,'' dated 
January 11, 2011.
    \7\ See Memorandum from Carole Showers, Director, Office of 
Policy, entitled, ``Request for a List of Surrogate Countries for an 
Administrative Review of Folding Metal Tables and Chairs (``FMTC'') 
from the People's Republic of China (PRC),'' dated October 22, 2010, 
and Memorandum from Carole Showers, Director, Office of Policy, 
entitled, ``Request for a List of Surrogate Countries for a New 
Shipper Review of the Antidumping Duty Order on Folding Metal Tables 
and Chairs (``FMTC'') from the People's Republic of China (PRC),'' 
dated January 31, 2011 (collectively, ``Surrogate Country 
Memoranda'').
---------------------------------------------------------------------------

    On January 5 and February 1, 2011, the Department requested 
interested parties to submit surrogate value information and to provide 
surrogate country selection comments for the administrative review and 
NSR, respectively. On January 26, 2011, Meco and New-Tec provided 
comments on publicly available information to value the factors of 
production (``FOP''). On March 8, 2011, Xinjiamei Furniture provided 
comments on publicly available information to value the FOP. On 
February 2 and March 18, 2011, Meco, Lifetime, and New-Tec submitted 
supplemental questionnaire responses. On February 14, March 14, and 
April 4, 2011, Feili submitted supplemental questionnaire responses. On 
March 3 and April 4, 2011, New-Tec submitted supplemental questionnaire 
responses. On February 23 and April 41, 2011, Xinjiamei Furniture 
submitted supplemental questionnaire responses.
    On March 4, 2011, the Department published a notice in the Federal 
Register aligning the time limits of the administrative review and the 
NSR, and partially extending the time limit for the preliminary results 
of both reviews until no later than May 31, 2011.\8\ From April

[[Page 35834]]

18, 2011, through April 22, 2011, the Department conducted a sales and 
FOP verification of Feili, and from April 25, 2011, through April 29, 
2011, conducted a sales and FOP verification of New-Tec.\9\ In 
accordance with 19 CFR 351.301(c)(3)(ii), for the final results in an 
antidumping administrative review or new shipper review, interested 
parties may submit publicly available information to value FOPs within 
20 days after the date of publication of these preliminary results of 
review.
---------------------------------------------------------------------------

    \8\ See Folding Metal Tables and Chairs from the People's 
Republic of China: Notice of Extension of Time Limit for the 
Preliminary Results of the 2009-2010 Antidumping Duty Administrative 
and New Shipper Reviews, 76 FR 12024 (March 4, 2011).
    \9\ See Memorandum to the File from Lilit Astvatsatrian and 
Trisha Tran, Case Analysts entitled, ``Verification of the Sales and 
Factors Response of Feili in the Antidumping Review of Folding Metal 
Tables and Chairs from the Peoples Republic of China,'' dated May 
31, 2011; and Memorandum to the File from Lilit Astvatsatrian and 
Trisha Tran, Case Analysts entitled, ``Verification of the Sales and 
Factors Response of New-Tec Integration (Xiamen) Co., Ltd. in the 
Antidumping Review of Folding Metal Tables and Chairs from the 
Peoples Republic of China,'' dated May 31, 2011.
---------------------------------------------------------------------------

Periods of Review

    The PORs are June 1, 2009, through May 31, 2010, covering both the 
administrative and new shipper reviews.

Scope of 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 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, 9401.71.0011, 9401.71.0030, 9401.71.0031, 9401.79.0045, 
9401.79.0046, 9401.79.0050, 9403.20.0018, 9403.20.015, 9403.20.0030, 
9403.60.8040, 9403.70.8015, 9403.70.8020, and 9403.70.8031 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 as 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 imported 
chair has a wooden seat, which 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 than 
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

[[Page 35835]]

scope of the antidumping duty order because its rotating leg mechanism 
differs from the folding metal tables subject to the order, and its 
weight is twice as much as the expected maximum weight for folding 
metal tables within the scope of the order.
    On May 6, 2009, the Department issued a final determination of 
circumvention, determining that imports from the PRC of folding metal 
tables with legs connected by crossbars, so that the legs fold in sets, 
and otherwise meeting the description of inscope merchandise, are 
circumventing the order and are properly considered to be within the 
class or kind of merchandise subject to the order on folding metal 
tables and chairs from the PRC.
    On May 22, 2009, the Department issued a scope ruling determining 
that folding metal chairs that have legs that are not connected with 
cross-bars are within the scope of the antidumping duty order on 
folding metal tables and chairs from the PRC.
    On October 27, 2009, the Department issued a scope ruling 
determining that Lifetime Products Inc.'s (``Lifetime Products'') fold-
in-half adjustable height tables do not meet the description of 
merchandise within the scope of the antidumping duty order on folding 
metal tables and chairs from the PRC because Lifetime Products' tables 
essentially share the physical characteristics of banquet tables, which 
are expressly excluded from the scope of the order and, therefore, are 
outside the scope of the order.
    On July 27, 2010, the Department issued a scope ruling determining 
that the bistro set imported by Academy Sports & Outdoors, consisting 
of two chairs and a table, are outside the scope of the antidumping 
duty order because they constitute lawn furniture, which is expressly 
excluded from the scope of the order.
    On February 17, 2011, the Department issued two scope rulings 
determining that Lifetime Products' four-foot folding tables and six-
foot and eight-foot fold-in-half tables do not meet the description of 
merchandise within the scope of the antidumping duty order on folding 
metal tables and chairs from the PRC because Lifetime Products' tables 
essentially share the physical characteristics of banquet tables, which 
are expressly excluded from the scope of the order and, therefore, are 
outside the scope of the order.
    On May 2, 2011, the Department issued a scope ruling determining 
that Lifetime Products' 33-inch round table is outside the scope of the 
antidumping duty order on folding metal tables and chairs from the PRC 
because the legs of Lifetime Products' tables are connected at the top 
and at the bottom by cross-bars, and fold in pairs.

Non-Market Economy Country Status

    No party contested the Department's treatment of the PRC as a non-
market economy (``NME'') country, and the Department has treated the 
PRC as an NME country in all past antidumping duty investigations and 
administrative reviews.\10\ No interested party in this case has argued 
that we should do otherwise. Designation as an NME country remains in 
effect until it is revoked by the Department. See section 771(18)(C)(i) 
of the Act. As such, we continue to treat the PRC as a NME in both 
segments of this proceeding.
---------------------------------------------------------------------------

    \10\ See, e.g., Chlorinated Isocyanurates from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review, 73 FR 52645 (September 10, 2008); see also Folding Metal 
Tables and Chairs from the People's Republic of China: Final Results 
of Antidumping Duty Administrative Review, 74 FR 3560 (January 21, 
2009).
---------------------------------------------------------------------------

Surrogate Country

    Section 773(c)(1) of the Act directs the Department to base NV on 
the NME producer's FOPs, valued in a surrogate market economy country 
or countries considered to be appropriate by the Department. In 
accordance with section 773(c)(4) of the Act, in valuing the FOPs, the 
Department shall use, to the extent possible, the prices or costs of 
the FOPs in one or more market economy countries that are: (1) At a 
level of economic development comparable to that of the NME country; 
and (2) significant producers of comparable merchandise. The sources of 
the surrogate factor values are discussed under the ``Normal Value'' 
section below as well as memorandum on the record of each segment.\11\
---------------------------------------------------------------------------

    \11\ See Memorandum to The File entitled, ``Preliminary Results 
of the 2009-2010 Administrative Review of Folding Metal Tables and 
Chairs from the People's Republic of China: Surrogate Value 
Memorandum,'' dated concurrently with this notice and Memorandum to 
The File entitled, ``Preliminary Results of the new Shipper Review 
of Folding Metal Tables and Chairs from the People's Republic of 
China: Surrogate Value Memorandum'', dated concurrently with this 
notice (collectively, ``Surrogate Value Memoranda'').
---------------------------------------------------------------------------

    The Department determined that India, the Philippines, Indonesia, 
Thailand, Ukraine, and Peru are countries comparable to the PRC in 
terms of economic development.\12\ Once we have identified the 
countries that are economically comparable to the PRC, we select an 
appropriate surrogate country by determining whether an economically 
comparable country is a significant producer of comparable merchandise 
and whether the data for valuing FOPs are both available and reliable.
---------------------------------------------------------------------------

    \12\ See Surrogate Country Memoranda. The Department notes that 
these six countries are part of a non-exhaustive list of countries 
that are at a level of economic development comparable to the PRC.
---------------------------------------------------------------------------

    While both India and Indonesia are significant producers of 
comparable merchandise, the Department has determined that India is the 
appropriate surrogate country for use in these reviews. The Department 
based its decision on the following facts: (1) India and Indonesia are 
at levels of economic development comparable to that of the PRC; (2) 
India and Indonesia are significant producers of comparable 
merchandise; and (3) India provides the best opportunity to use 
quality, publicly available data to value the FOPs.
    On the records of these reviews, we have usable surrogate financial 
data from both India and Indonesia. We note that Meco submitted 
Indonesian data for valuing respondents' inputs in the AR and NSR. 
According to Meco, the financial statements of the Indonesian surrogate 
producer PT Lion Metal Works Tbk's (``Lion'') for the fiscal year 2009 
represent the better data compared to the Indian producer Maximaa 
Systems, Ltd.'s (``Maximaa'') for the year ending March 31, 2010, who 
incurred negative profit. Meco, subsequently, argues that the 
Department should resort to using Indonesian surrogate values. New-Tec, 
Lifetime, and Xinjiamei Furniture, on the other hand, argue that the 
Department can choose between Maximaa's financial statements for the 
year ending March 31, 2009, or another set of Indian financial 
statements from Godrej & Boyce Manufacturing Co. Ltd. for the year 
ending March 31, 2010, which are contemporaneous with the POR.
    After careful examination of the record evidence and parties' 
arguments, we have selected India as the surrogate country and 
Maximaa's financial statements for the year ending March 31, 2009.\13\ 
We agree with Meco that a negative profit would preclude us from 
selecting such financial statements, i.e., Maximaa's financial 
statements for the year ending March 31, 2009. Although Lion's 
financial statements indicate that it is also a producer of comparable 
merchandise, its annual report does not provide sufficient detail for 
the Department to discern the amount of comparable merchandise. 
Finally, the record contains more Indian data with which to value FOP 
than Indonesian data. For example, the Department has Indian surrogate 
values for truck freight

[[Page 35836]]

and natural gas, which are absent in Meco's submission of Indonesian 
surrogate values. Therefore, we find that India provides the best 
available data for valuing respondents' inputs on both reviews.
---------------------------------------------------------------------------

    \13\ \See\ \19 CFR 351.408(c)(2).\
---------------------------------------------------------------------------

Notice of Intent To Revoke Order, in Part

    As noted above, on August 4, 2010, New-Tec requested revocation of 
the antidumping duty order with respect to its sales of subject 
merchandise, pursuant to 19 CFR 351.222(e). This request was 
accompanied by certifications, pursuant to 19 CFR 351.222(e)(1) that: 
(1) New-Tec has sold the subject merchandise at not less than NV during 
the current POR and that it will not sell the merchandise at less than 
NV in the future; and (2) New-Tec sold subject merchandise to the 
United States in commercial quantities for a period of at least three 
consecutive years. New-Tec also agreed to immediate reinstatement of 
the antidumping duty order, as long as any exporter or producer is 
subject to the order, if the Department concludes that, subsequent to 
its revocation, it sold the subject merchandise at less than NV.
    Pursuant to section 751(d) of the Act, the Department ``may revoke, 
in whole or in part'' an antidumping duty order upon completion of a 
review under section 751(a) of the Act. In determining whether to 
revoke an antidumping duty order in part, the Department considers: (1) 
Whether the company in question has sold subject merchandise at not 
less than NV for a period of at least three consecutive years; (2) 
whether during each of the three consecutive years for which the 
company sold the merchandise at not less than normal value, it sold the 
merchandise to the United States in commercial quantities; and (3) the 
company has agreed in writing to its immediate reinstatement in the 
order, as long as any exporter or producer is subject to the order, if 
the Department concludes that the company, subsequent to revocation, 
sold the subject merchandise at less than NV.\14\ We have preliminarily 
determined that the request from New-Tec meets all of the criteria 
under 19 CFR 351.222(e)(1). Our preliminary margin calculation confirms 
that New-Tec sold folding metal tables and chairs at not less than NV 
during the current review period. See the ``Preliminary Results of the 
Review'' section below. In addition, we have confirmed that New-Tec 
sold folding metal tables and chairs at not less than NV in the two 
previous administrative reviews in which it was individually examined 
(i.e., its dumping margins were de minimis).\15\
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.222(e)(1).
    \15\ See Folding Metal Tables and Chairs from the People's 
Republic of China: Final Results of 2007-2008 Deferred Antidumping 
Duty Administrative Review and Final Results of 2008-2009 
Antidumping Duty Administrative Review, 76 FR 2883 (January 18, 
2011) (``2007-2008 Final Results''); see also Folding Metal Tables 
and Chairs from the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, 74 FR 68568 (December 28, 
2009).
---------------------------------------------------------------------------

    Based on our examination of the sales data submitted by New-Tec, we 
preliminarily determine that it sold the subject merchandise in the 
United States in commercial quantities in each of the consecutive years 
cited by New-Tec to support its request for revocation.\16\ Thus, we 
preliminarily find that New-Tec had de minimis dumping margins for its 
last three administrative reviews and sold subject merchandise in 
commercial quantities in each of these years. Also, we preliminarily 
determine, pursuant to section 751(d) of the Act and 19 CFR 
351.222(b)(2), that the application of the antidumping duty order with 
respect to New-Tec is no longer warranted for the following reasons: 
(1) The company had a zero or de minimis margin for a period of at 
least three consecutive years; (2) the company has agreed to immediate 
reinstatement of the order if the Department finds that it has resumed 
making sales at less than NV; and, (3) the continued application of the 
order is not otherwise necessary to offset dumping. Therefore, we 
preliminarily determine that subject merchandise produced and exported 
by New-Tec qualifies for revocation from the antidumping duty order on 
folding metal tables and chairs from the PRC and that the order with 
respect to such merchandise should be revoked. If these preliminary 
findings are affirmed in our final results, we will revoke this order, 
in part, with respect to folding metal tables and chairs produced and 
exported by New-Tec and, in accordance with 19 CFR 351.222(f)(3), 
terminate the suspension of liquidation for any of the merchandise in 
question that is entered, or withdrawn from warehouse, for consumption 
on or after June 1, 2010, and instruct CBP to release any cash deposits 
for such entries.
---------------------------------------------------------------------------

    \16\ See Memorandum to the File entitled, ``Analysis of 
Commercial Quantities for New-Tec's Request for Revocation,'' dated 
May 31, 2011.
---------------------------------------------------------------------------

Affiliation

    Section 771(33) of the Act states that the Department considers the 
following entities to be affiliated: (A) Members of a family, including 
brothers and sisters (whether by whole or half blood), spouse, 
ancestors, and lineal descendants; (B) Any officer or director of an 
organization and such organization; (C) Partners; (D) Employer and 
employee; (E) Any person directly or indirectly owning, controlling, or 
holding with power to vote, five percent or more of the outstanding 
voting stock or shares of any organization and such organization; (F) 
Two or more persons directly or indirectly controlling, controlled by, 
or under common control with, any person; and (G) Any person who 
controls any other person and such other person.
    For purposes of affiliation, section 771(33) of the Act states that 
a person shall be considered to control another person if the person is 
legally or operationally in a position to exercise restraint or 
direction over the other person. In order to find affiliation between 
companies, the Department must find that at least one of the criteria 
listed above is applicable to the respondents.
    To the extent that the affiliation provisions in section 771(33) of 
the Act do not conflict with the Department's application of separate 
rates and the statutory NME provisions in section 773(c) of the Act, 
the Department will determine that exporters and/or producers are 
affiliated if the facts of the case support such a finding.\17\
---------------------------------------------------------------------------

    \17\ See Certain Preserved Mushrooms From the People's Republic 
of China: Preliminary Results of Sixth New Shipper Review and 
Preliminary Results and Partial Rescission of Fourth Antidumping 
Duty Administrative Review, 69 FR 10410, 10413 (March 5, 2004) 
(unchanged in the final results).
---------------------------------------------------------------------------

    Based on our examination of the evidence presented in Xinjiamei 
Furniture's submissions, we preliminarily determine that Xinjiamei 
Furniture and Xinjiamei (Zhangzhou) Commodity Co., Ltd. (``Xinjiamei 
Commodity'') are affiliated parties within the meaning of section 
771(33) of the Act because the owners of both companies are members of 
the same family and, thus, affiliated under 771(33)(A)(B) and (E) of 
the Act.
    According to 19 CFR 351.401(f), affiliated producers of subject 
merchandise will be treated as a single entity where those producers 
share production facilities for similar or identical products that 
would not require substantial retooling of either facility in order to 
restructure manufacturing priorities, and where there is a significant 
potential for the manipulation of price or production. Based on record 
evidence, we find that Xinjiamei Commodity shares its facilities to 
produce similar merchandise with Xinjiamei Furniture. In addition, 
based on the record evidence, we find that there is a

[[Page 35837]]

significant potential for manipulation of price and production as: (1) 
Both producers share production facilities and management; and (2) the 
operations of both entities are closely intertwined. Therefore, we have 
treated Xinjiamei Furniture and Xinjiamei Commodity as a single entity 
for the purposes of these preliminary results.\18\ For ease of 
reference, we refer to both Xinjimaei Furniture and Xinjiamei Commodity 
as the single entity, ``Xinjiamei'' throughout this notice.
---------------------------------------------------------------------------

    \18\ See the Department's Memorandum entitled, ``New Shipper 
Review of Folding Metal Tables and Chairs from the People's Republic 
of China: Affiliation and Treatment of Xinjiamei Furniture 
(Zhangzhou) Co., Ltd. and Xinjiamei (Zhangzhou) Commodity Co., Ltd., 
as a Single Entity'' dated concurrently with this notice.
---------------------------------------------------------------------------

Separate Rates

    In proceedings involving NME countries, the Department has a 
rebuttable presumption that all companies within the country are 
subject to government control and, thus, should be assessed a single 
antidumping duty rate.\19\ It is the Department's policy to assign all 
exporters of merchandise subject to review in an NME country this 
single rate unless an exporter can demonstrate that it is sufficiently 
independent so as to be entitled to a separate rate.\20\ Exporters can 
demonstrate this independence through the absence of both de jure and 
de facto government control over export activities. The Department 
analyzes each entity exporting the subject merchandise under a test 
arising from the Notice of Final Determination of Sales at Less Than 
Fair Value: Sparklers from the People's Republic of China, 56 FR 20588, 
at Comment 1 (May 6, 1991) (``Sparklers''), as further developed in 
Notice of Final Determination of Sales at Less Than Fair Value: Silicon 
Carbide from the People's Republic of China, 59 FR 22585, 22587 (May 2, 
1994) (``Silicon Carbide''). However, if the Department determines that 
a company is wholly foreign-owned or located in a market economy, then 
a separate-rate analysis is not necessary to determine whether it is 
independent from government control.\21\
---------------------------------------------------------------------------

    \19\ See, e.g., Certain Coated Paper Suitable for High-Quality 
Print Graphics Using Sheet-Fed Presses From the People's Republic of 
China: Notice of Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 75 FR 24892, 
24899 (May 6, 2010).
    \20\ Id.
    \21\ See, e.g., Final Results of Antidumping Duty Administrative 
Review: Petroleum Wax Candles From the People's Republic of China, 
72 FR 52355, 52356 (September 13, 2007).
---------------------------------------------------------------------------

    Feili and Lifetime reported that they are wholly owned by market-
economy entities. Therefore, consistent with the Department's practice, 
a separate-rates analysis is not necessary to determine whether Feili's 
and Lifetime's export activities are independent from government 
control, and we have preliminarily granted a separate rate to Feili and 
Lifetime.
    New-Tec stated that it is a joint venture between Chinese and 
foreign companies. Xinjiamei stated that it is a wholly Chinese-owned 
company. Therefore, the Department must analyze whether New-Tec and 
Xinjiamei have demonstrated the absence of both de jure and de facto 
government control over export activities, and are therefore entitled 
to a separate rate.

A. Absence of De Jure Control

    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) An absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) any legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies. See 
Sparklers, 56 FR at 20589.
    New-Tec and Xinjiamei have placed documents on the records of these 
segments to demonstrate the absence of de jure control including their 
respective lists of shareholders, business licenses, and the Company 
Law of the PRC (``Company Law''). Other than limiting these companies 
to activities referenced in their business licenses, we found no 
restrictive stipulations associated with the licenses. In addition, in 
previous cases the Department has analyzed the Company Law and found 
that it establishes an absence of de jure control, lacking record 
evidence to the contrary.\22\ We have no information in these segments 
of the proceeding that would cause us to reconsider this determination. 
Therefore, based on the foregoing, we have preliminarily found an 
absence of de jure control for New-Tec and Xinjiamei.
---------------------------------------------------------------------------

    \22\ See, e.g., Certain Non-Frozen Apple Juice Concentrate from 
the People's Republic of China: Final Results, Partial Rescission 
and Termination of a Partial Deferral of the 2002-2003 
Administrative Review, 69 FR 65148, 65150 (November 10, 2004).
---------------------------------------------------------------------------

B. Absence of De Facto Control

    Typically the Department considers four factors in evaluating 
whether each respondent is subject to de facto government control of 
its export functions: (1) Whether the export prices are set by or are 
subject to the approval of a government agency; (2) whether the 
respondent has authority to negotiate and sign contracts and other 
agreements; (3) whether the respondent has autonomy from the government 
in making decisions regarding the selection of management; and (4) 
whether the respondent retains the proceeds of its export sales and 
makes independent decisions regarding disposition of profits or 
financing of losses.\23\ The Department has determined that an analysis 
of de facto control is critical in determining whether respondents are, 
in fact, subject to a degree of government control that would preclude 
the Department from assigning separate rates.\24\
---------------------------------------------------------------------------

    \23\ See Silicon Carbide, 59 FR at 22587.
    \24\ See Silicon Carbide, 59 FR at 22586-87; see also Notice of 
Final Determination of Sales at Less Than Fair Value: Furfuryl 
Alcohol From the People's Republic of China, 60 FR 22544, 22545 (May 
8, 1995).
---------------------------------------------------------------------------

    With regard to de facto control, New-Tec and Xinjiamei reported 
that: (1) They independently set prices for sales to the United States 
through negotiations with customers and these prices are not subject to 
review by any government organization; (2) they did not coordinate with 
other exporters or producers to set the price or to determine to which 
market the companies will sell subject merchandise; (3) the PRC Chamber 
of Commerce did not coordinate the export activities of New-Tec or 
Xinjiamei; (4) their general managers have the authority to 
contractually bind them to sell subject merchandise; (5) their boards 
of directors appoint their general managers; (6) there are no 
restrictions on their use of export revenues; (7) their shareholders 
ultimately determine the disposition of their respective profits, and 
they have not had a loss in the last two years; and (8) none of New-
Tec's and Xinjiamei's board members or managers is a government 
official. Furthermore, our analysis of New-Tec's and Xinjiamei's 
questionnaire responses reveals no information indicating government 
control of their export activities. Therefore, based on the information 
on the record, we preliminarily determine that there is an absence of 
de facto government control with respect to New-Tec's and Xinjiamei's 
export functions and that New-Tec and Xinjiamei have met the criteria 
for the application of a separate rate.
    The evidence placed on the records of these reviews by New-Tec and 
Xinjiamei demonstrates an absence of de jure and de facto government 
control with respect to its exports of subject merchandise, in 
accordance with the criteria identified in Sparklers, 56 FR at 20589; 
and Silicon Carbide, 59 FR at

[[Page 35838]]

22587. Accordingly, we have preliminarily granted a separate rate to 
the companies.

Date of Sale

    According to 19 CFR 351.401(i), in identifying the date of sale of 
the subject merchandise or foreign like product, the Secretary normally 
will use the date of invoice, as recorded in the exporter or producer's 
records kept in the ordinary course of business. However, the Secretary 
may use a date other than the date of invoice if the Secretary is 
satisfied that a different date better reflects the date on which the 
exporter or producer establishes the material terms of sale. See also 
Allied Tube and Conduit Corp. v. United States, 132 F. Supp. 2d 1087, 
1090-1092 (CIT 2001) (upholding the Department's rebuttable presumption 
that invoice date is the appropriate date of sale). After examining the 
questionnaire responses and the sales documentation placed on the 
record by Feili, New-Tec, and Xinjiamei we preliminarily determine that 
invoice date is the most appropriate date of sale for Feili, New-Tec, 
and Xinjiamei. Nothing on the records of these segments rebuts the 
presumption that invoice date should be the date of sale.

Normal Value Comparisons

    To determine whether sales of folding metal tables and chairs to 
the United States by Feili, New-Tec, and Xinjiamei were made at less 
than NV, we compared export price (``EP'') to NV, as described in the 
``Export Price,'' and ``Normal Value'' sections of this notice, 
pursuant to section 771(35) of the Act.

Export Price

    Because Feili, New-Tec, and Xinjiamei sold subject merchandise to 
unaffiliated purchasers in the United States prior to importation into 
the United States or to unaffiliated resellers outside the United 
States with knowledge that the merchandise was destined for the United 
States, and use of a constructed export price methodology is not 
otherwise indicated, we have used EP for Feili, New-Tec, and Xinjiamei 
in accordance with section 772(a) of the Act.
    We calculated EP based on the free-on-board or delivered price to 
unaffiliated purchasers for Feili, New-Tec, and Xinjiamei. From this 
price, we deducted amounts for foreign inland freight and brokerage and 
handling, as applicable, pursuant to section 772(c)(2)(A) of the 
Act.\25\
---------------------------------------------------------------------------

    \25\ See Memorandum to The File entitled, ``Analysis for the 
Preliminary Results of the 2009-2010 Administrative Review of 
Folding Metal Tables and Chairs from the People's Republic of China: 
New-Tec Integration (Xiamen) Co. Ltd. (``New-Tec''),'' dated May 31, 
2011 (``New-Tec Preliminary Analysis Memorandum''); Memorandum to 
The File entitled, ``Analysis for the Preliminary Results of the 
2009-2010 Administrative Review of Folding Metal Tables and Chairs 
from the People's Republic of China: Feili Group (Fujian) Co., Ltd. 
and Feili Furniture Development Limited Quanzhou City,'' dated May 
31, 2011 (``Feili Preliminary Analysis Memorandum''); and Memorandum 
to The File entitled, ``Analysis for the Preliminary Results of the 
2009-2010 New Shipper Review of Folding Metal Tables and Chairs from 
the People's Republic of China: Xinjiamei Furniture (Zhangzhou) Co., 
Ltd. and Xinjiamei Commodity (Zhangzhou) Co., Ltd.,'' dated May 31, 
2011 (``Xinjiamei Preliminary Analysis Memorandum'') (collectively, 
``Preliminary Analysis Memoranda).
---------------------------------------------------------------------------

    The Department valued brokerage and handling using a price list of 
export procedures necessary to export a standardized cargo of goods in 
India. The price list is compiled based on a survey case study of the 
procedural requirements for trading a standard shipment of goods by 
ocean transport in India that is in Doing Business 2010: India, 
published by the World Bank.\26\
---------------------------------------------------------------------------

    \26\ See Surrogate Value Memoranda and Preliminary Analysis 
Memoranda.
---------------------------------------------------------------------------

Zero-Priced Transactions

    In the final results of previous administrative reviews of folding 
metal tables and chairs, we included New-Tec's and Feili's zero-priced 
transactions in the margin calculation because the record demonstrated 
that respondents provided the same merchandise in significant 
quantities, indicating that these ``samples'' did not primarily serve 
for evaluation or testing of the merchandise.\27\ Additionally, 
respondents provided ``samples'' to the same customers to whom they 
were selling the same products in commercial quantities.\28\ As a 
result, we concluded that these transactions were not what we consider 
to be samples because respondents were providing these products to 
strengthen their customer relationships and to promote future sales.
---------------------------------------------------------------------------

    \27\ See Folding Metal Tables and Chairs from the People's 
Republic of China; Final Results of Antidumping Duty Administrative 
Review, 71 FR 2905 (January 18, 2006), and accompanying Issues and 
Decision Memorandum at Comment 4; Folding Metal Tables and Chairs 
from the People's Republic of China: Final Results of Antidumping 
Duty Administrative Review, 71 FR 71509 (December 11, 2006), and 
accompanying Issues and Decision Memorandum at Comment 4; and 
Folding Metal Tables and Chairs from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review, 72 FR 71355 
(December 17, 2007), and accompanying Issues and Decision Memorandum 
at Comments 10 and 11.
    \28\ Id.
---------------------------------------------------------------------------

    The U.S. Court of Appeals for the Federal Circuit (``CAFC'') has 
not required the Department to exclude zero-priced or de minimis sales 
from its analysis but, rather, has defined a sale, as used in section 
772 of the Act, as requiring ``both a transfer of ownership to an 
unrelated party and consideration.'' \29\ The Court of International 
Trade (``CIT'') in NSK Ltd. v. United States stated that it saw 
``little reason in supplying and re-supplying and yet re-supplying the 
same product to the same customer in order to solicit sales if the 
supplies are made in reasonably short periods of time,'' and that ``it 
would be even less logical to supply a sample to a client that has made 
a recent bulk purchase of the very item being sampled by the client.'' 
\30\ Moreover, even where the Department does not ask a respondent for 
specific information to demonstrate that a transaction is a sample, the 
respondent has the burden of presenting the information in the first 
place to demonstrate that its transactions qualify for exclusion as a 
sample.\31\
---------------------------------------------------------------------------

    \29\ See NSK Ltd. v. United States, 115 F.3d 965, 975 (Fed. Cir. 
1997).
    \30\ See NSK Ltd. v. United States, 217 F. Supp. 2d 1291, 1311-
1312 (CIT 2002).
    \31\ See NTN Bearing Corp. of America v. United States, 997 F.2d 
1453, 1458 (Fed. Cir. 1993).
---------------------------------------------------------------------------

    An analysis of Feili's and New-Tec's section C computer sales 
listings reveals that in some cases they provided zero-priced 
merchandise to customers to whom they already are selling the same 
products in commercial quantities, indicating that Feili and New-Tec 
were not providing this zero-priced merchandise for a customer's 
evaluation and testing, with the hope of future sales. Consequently, 
based on the facts cited above, the guidance of past court decisions, 
and our previous decisions, we have not excluded these zero-priced 
transactions from the margin calculations for Feili and New-Tec for the 
preliminary results of this review. However, we found that, in some 
instances, both Feili and New-Tec shipped merchandise to customers for 
the first time in non-commercial quantities. Therefore, we have treated 
these sales as samples for the preliminary results.\32\
---------------------------------------------------------------------------

    \32\ See Feili Preliminary Analysis Memorandum and New-Tec 
Preliminary Analysis Memorandum.
---------------------------------------------------------------------------

Billing Adjustments

    We have not adjusted Feili's U.S. sales price with its reported 
billing adjustments for brokerage and handling charges incurred in 
China and reimbursed by its U.S. customers in U.S. dollars. After 
careful examination of this issue, we have preliminarily determined 
that these charges are not included within the Department's surrogate 
value for brokerage and handling and,

[[Page 35839]]

therefore, do not warrant an offset to the brokerage and handling 
expense.\33\
---------------------------------------------------------------------------

    \33\ See Feili Preliminary Analysis Memorandum.
---------------------------------------------------------------------------

Normal Value

    Section 773(c)(1) of the Act provides that, in the case of an NME, 
the Department shall determine NV using an FOP methodology if the 
merchandise is exported from an NME and the information does not permit 
the calculation of NV using home-market prices, third-country prices, 
or constructed value under section 773(a) of the Act.
    The Department bases NV on FOPs because the presence of government 
controls on various aspects of NME economies renders price comparisons 
and the calculation of production costs invalid under our normal 
methodologies. Therefore, in these preliminary results, we have 
calculated NV based on FOPs in accordance with sections 773(c)(3) and 
(4) of the Act and 19 CFR 351.408(c). The FOPs include: (1) Hours of 
labor required; (2) quantities of raw materials employed; (3) amounts 
of energy and other utilities consumed; and (4) representative capital 
costs. In accordance with 19 CFR 351.408(c)(1), the Department normally 
uses publicly available information to value the FOPs. However, when a 
producer sources a meaningful amount of an input from a market-economy 
country and pays for it in market-economy currency, the Department may 
value the factor using the actual price paid for the input.\34\
---------------------------------------------------------------------------

    \34\ See 19 CFR 351.408(c)(1); see also Lasko Metal Products v. 
United States, 43 F.3d 1442, 1445-1446 (Fed. Cir. 1994) (affirming 
the Department's use of market-based prices to value certain FOPs).
---------------------------------------------------------------------------

    In accordance with the OTCA 1988 legislative history, the 
Department continues to apply its long-standing practice of 
disregarding surrogate values if it has a reason to believe or suspect 
the source data may be subsidized.\35\ In this regard, the Department 
has previously found that it is appropriate to disregard such prices 
from India, Indonesia, South Korea and Thailand because we have 
determined that these countries maintain broadly available, non-
industry specific export subsidies.\36\ Based on the existence of these 
subsidy programs that were generally available to all exporters and 
producers in these countries at the time of the POR, the Department 
finds that it is reasonable to infer that all exporters from India, 
Indonesia, South Korea and Thailand may have benefitted from these 
subsidies.
---------------------------------------------------------------------------

    \35\ See Omnibus Trade and Competitiveness Act of 1988, Conf. 
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd 
Sess. (1988) (``OTCA 1988'') at 590.
    \36\ See, e.g., Expedited Sunset Review of the Countervailing 
Duty Order on Carbazole Violet Pigment 23 from India, 75 FR 13257 
(March 19, 2010) and accompanying Issues and Decision Memorandum at 
pages 4-5; Expedited Sunset Review of the Countervailing Duty Order 
on Certain Cut-to-Length Carbon Quality Steel Plate from Indonesia, 
70 FR 45692 (August 8, 2005) and accompanying Issues and Decision 
Memorandum at page 4; See also Corrosion-Resistant Carbon Steel Flat 
Products from the Republic of Korea: Final Results of Countervailing 
Duty Administrative Review, 74 FR 2512 (January 15, 2009) and 
accompanying Issues and Decision Memorandum at pages 17, 19-20; See 
also Certain Hot-Rolled Carbon Steel Flat Products from Thailand: 
Final Results of Countervailing Duty Determination, 66 FR 50410 
(October 3, 2001), and accompanying Issues and Decision Memorandum 
at page 23.
---------------------------------------------------------------------------

Factor Valuations

    In accordance with section 773(c) of the Act, we calculated NV 
based on the FOPs reported by Feili and New-Tec for the AR, and 
Xinjiamei for the NSR, during the respective PORs. To calculate NV, we 
multiplied the reported per-unit factor quantities by publicly 
available Indian surrogate values (except as noted below). In selecting 
the surrogate values, we considered the quality, specificity, public 
availability, and contemporaneity of the data. As appropriate, we 
adjusted input prices by including freight costs to render them 
delivered prices. Specifically, we added to Indian import surrogate 
values a surrogate freight cost using the shorter of the reported 
distance from the domestic supplier to the factory or the distance from 
the nearest seaport to the factory where appropriate (i.e., where the 
sales terms for the market-economy inputs were not delivered to the 
factory). This adjustment is in accordance with the decision of the 
CAFC in Sigma Corp. v. United States, 117 F. 3d 1401, 1408 (Fed. Cir. 
1997). For a detailed description of all surrogate values used for 
Feili, New-Tec and Xinjiamei, see the Surrogate Value Memoranda.
    For the preliminary results, except where noted below, we used data 
from the Indian Import Statistics in the Global Trade Atlas (``GTA'') 
and other publicly available Indian sources in order to calculate SVs 
for Feili, New-Tec, and Xinjiamei's FOPs (i.e., direct materials, 
energy, and packing materials) and certain movement expenses. As India 
is the primary surrogate country, we used Indian data. In selecting the 
best available information for valuing FOPs in accordance with section 
773(c)(1) of the Act, the Department's practice is to select, to the 
extent practicable, SVs which are non-export average values, most 
contemporaneous with the POR, product-specific, and tax-exclusive.\37\ 
The record shows that data in the Indian Import Statistics are 
contemporaneous with the POR, product-specific, and tax-exclusive.\38\ 
In those instances where we could not obtain publicly available 
information contemporaneous to the POR with which to value factors, we 
adjusted the SVs using, where appropriate, the Indonesian Wholesale 
Price Index (``WPI'') as published in the IMF's International Financial 
Statistics.\39\
---------------------------------------------------------------------------

    \37\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Negative Preliminary Determination of Critical 
Circumstances and Postponement of Final Determination: Certain 
Frozen and Canned Warmwater Shrimp From the Socialist Republic of 
Vietnam, 69 FR 42672, 42682 (July 16, 2004), unchanged in Final 
Determination of Sales at Less Than Fair Value: Certain Frozen and 
Canned Warmwater Shrimp from the Socialist Republic of Vietnam, 69 
FR 71005 (December 8, 2004).
    \38\ See Surrogate Value Memoranda.
    \39\ See, e.g., Certain Kitchen Appliance Shelving and Racks 
From the People's Republic of China: Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final 
Determination, 74 FR 9591, 9600 (March 5, 2009), unchanged in 
Certain Kitchen Appliance Shelving and Racks From the People's 
Republic of China: Final Determination of Sales at Less than Fair 
Value, 74 FR 36656 (July 24, 2009).
---------------------------------------------------------------------------

    We further adjusted material input values to account for freight 
costs incurred between the supplier and respondent. We used the freight 
rates published by http://www.infobanc.com, ``The Great Indian Bazaar, 
Gateway to Overseas Markets.'' The logistics section of the Web site 
contains inland freight truck rates between many large Indian cities. 
The truck freight rates are for the period June 2008 through July 2009.
    Feili and New-Tec each reported raw materials purchases sourced 
from market-economy suppliers and paid for in a market-economy currency 
during the POR. In accordance with our practice outlined in Antidumping 
Methodologies: Market Economy Inputs,\40\ when at least 33 percent of 
an input is sourced from market-economy suppliers and purchased in a 
market-economy currency, the Department will use actual market-economy 
purchase prices to value these inputs.\41\ Therefore, the Department 
has valued certain inputs using the market-economy purchase prices 
reported by Feili and New-Tec, where appropriate.
---------------------------------------------------------------------------

    \40\ See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717-19 (October 19, 2006) (``Antidumping 
Methodologies: Market Economy Inputs'').
    \41\ For a detailed description of all actual values used for 
market-economy inputs, see New-Tec Preliminary Analysis Memorandum 
and Feili Preliminary Analysis Memorandum.
---------------------------------------------------------------------------

    To value diesel, we used per-kilogram values obtained from Indian 
Oil

[[Page 35840]]

Corporation Ltd., published June 6, 2007. We made adjustments to 
account for inflation.\42\
---------------------------------------------------------------------------

    \42\ See Surrogate Value Memoranda for the administrative and 
new shipper reviews.
---------------------------------------------------------------------------

    To value electricity, we used price data for small, medium, and 
large industries, as published by the Central Electricity Authority of 
the Government of India in its publication entitled ``Electricity 
Tariff & Duty and Average Rates of Electricity Supply in India,'' dated 
March 2008. These electricity rates represent actual country-wide, 
publicly-available information on tax-exclusive electricity rates 
charged to industries in India. We did not inflate this value because 
utility rates represent current rates, as indicated by the effective 
dates listed for each of the rates provided.\43\
---------------------------------------------------------------------------

    \43\ See id.
---------------------------------------------------------------------------

    To value water, we used the revised Maharashtra Industrial 
Development Corporation water rates available at http://www.midcindia.com/water-supply, which we did not adjust for inflation 
because the surrogate value is contemporaneous with the POR.\44\
---------------------------------------------------------------------------

    \44\ See Surrogate Value Memoranda for the administrative 
review.
---------------------------------------------------------------------------

    To value natural gas, we used the surrogate value obtained from Gas 
Authority of India Ltd. We have inflated the surrogate value because 
they represent April through June 2002 values.\45\
---------------------------------------------------------------------------

    \45\ See id.
---------------------------------------------------------------------------

    On May 14, 2010, the CAFC in Dorbest Ltd. v. United States, 604 
F.3d 1363, 1372 (Fed. Cir. 2010) (``Dorbest IV''), found that the 
regression-based method for calculating wage rates, as stipulated by 19 
CFR 351.408(c)(3), uses data not permitted by the statutory 
requirements laid out in section 773 of the Act. The Department is 
continuing to evaluate options for determining labor values in light of 
the recent CAFC decision. See Antidumping Methodologies in Proceedings 
Involving Non-Market Economies: Valuing the Factor of Production: 
Labor; Request for Comment, 76 FR 9544 (February 18, 2011). However, 
for these preliminary results, we have calculated an hourly wage rate 
to use in valuing respondents' reported labor input by averaging 
industry-specific earnings and/or wages in countries that are 
economically comparable to the PRC and that are significant producers 
of comparable merchandise.
    For the preliminary results of this administrative and new shipper 
review, the Department is valuing labor using a simple average 
industry-specific wage rate using earnings or wage data reported under 
Chapter 5B by the International Labor Organization (``ILO''). To 
achieve an industry-specific labor value, we relied on industry-
specific labor data from the countries we determined to be both 
economically comparable to the PRC, and significant producers of 
comparable merchandise. A full description of the industry-specific 
wage rate calculation methodology is provided in the Surrogate Value 
Memoranda. The Department calculated a simple average industry-specific 
wage rate of $1.19 for these preliminary results. Specifically, for 
these reviews, the Department has calculated the wage rate using a 
simple average of the data provided to the ILO under Sub-Classification 
36 of the ISIC-Revision 3 standard by countries determined to be both 
economically comparable to the PRC and significant producers of 
comparable merchandise. The Department finds the two-digit description 
under ISIC-Revision 3 (``Manufacture of Furniture; Manufacturing NEC'') 
to be the best available wage rate surrogate value on the record 
because it is specific and derived from industries that produce 
merchandise comparable to the subject merchandise. Consequently, we 
averaged the ILO industry-specific wage rate data or earnings data 
available from the following countries found to be economically 
comparable to the PRC and are significant producers of comparable 
merchandise: Ecuador, Egypt, Arab Rep., Indonesia, Jordan, Peru, 
Philippines, Thailand, and Ukraine. For further information on the 
calculation of the wage rate, see Surrogate Value Memoranda.
    During the verification of Feili and New-Tec, the Department 
discovered that both respondents have under-reported their indirect 
labor.\46\ Therefore, we have increased Feili's and New-Tec's indirect 
labor by adding the labor hours from the unreported labor 
categories.\47\
---------------------------------------------------------------------------

    \46\ See the Department's memorandum entitled, ``Verification of 
the Sales and Factors Response of Feili in the Antidumping Review of 
Folding Metal Tables and Chairs From the People's Republic of 
China,'' dated May 31, 2011, and the Department's memorandum 
entitled, ``Verification of the Sales and Factors Response of New-
Tec in the Antidumping Review of Folding Metal Tables and Chairs 
from the Peoples Republic of China,'' dated May 31, 2011.
    \47\ See Feili Preliminary Analysis Memorandum and New-Tec 
Preliminary Analysis Memorandum.
---------------------------------------------------------------------------

    For factory overhead, selling, general, and administrative expenses 
(``SG&A''), and profit values, Meco submitted financial statements of 
Lion on the record of both the AR and NSR, New-Tec submitted the 
financial statements of Maximaa and Godrej on the record of the AR, 
whereas Xinjiamei submitted the financial statements of Maximaa on the 
record of the NSR. The Department examined these financial statements 
in the 2008-2009 administrative review of this order and found that 
Maximaa produced a greater proportion of comparable merchandise than 
Godrej, and represented the surrogate financial ratio source from the 
primary surrogate country and, therefore, best met the Department's 
criteria for surrogate financial ratios.\48\ With the exception of the 
issue of contemporaneity, we still find that Maximaa produced a greater 
proportion of comparable merchandise than other potential surrogate 
companies whose financial statements were placed on the respective 
records, and we find that Maximaa continues to be the best available 
information with which to determine factory overhead as a percentage of 
the total raw materials, labor and energy (``ML&E'') costs; SG&A as a 
percentage of ML&E plus overhead (i.e., cost of manufacture); and the 
profit rate as a percentage of the cost of manufacture plus SG&A.
---------------------------------------------------------------------------

    \48\ See 2007-2008 Final Results and accompanying Issues and 
Decision Memorandum at Comment 2.A, D, and E.
---------------------------------------------------------------------------

    For packing materials, we used the per-kilogram values obtained 
from the GTA and made adjustments to account for freight costs incurred 
between the PRC supplier and New-Tec, Xinjinamei, and Feili's 
plants.\49\
---------------------------------------------------------------------------

    \49\ See Surrogate Value Memoranda.
---------------------------------------------------------------------------

Currency Conversion

    We made currency conversions into U.S. dollars, where appropriate, 
in accordance with section 773A(a) of the Act, based on the exchange 
rates in effect on the dates of the U.S. sales, as certified by the 
Federal Reserve Bank.

Preliminary Results of Reviews

    We preliminarily determine that the following weighted-average 
dumping margins exist:

------------------------------------------------------------------------
           Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
NEW-TEC INTEGRATION (XIAMEN) CO., LTD.....  0.00

[[Page 35841]]

 
FEILI GROUP (FUJIAN) CO., LTD., FEILI       0.03
 FURNITURE DEVELOPMENT LIMITED QUANZHOU     (de minimis)
 CITY.
LIFETIME HONG KONG LTD....................  1.50
XINJIAMEI FURNITURE (ZHANGZHOU) CO., LTD.,  26.06
 XINJIAMEI (ZHANGZHOU) COMMODITY CO., LTD.
------------------------------------------------------------------------

Rate for Lifetime

    The statute and the Department's regulations do not address the 
establishment of a rate to be applied to individual companies not 
selected for examination where the Department limited its examination 
in an administrative review pursuant to section 777A(c)(2) of the Act. 
Generally, we have looked to section 735(c)(5) of the Act, which 
provides instructions for calculating the all-others rate in an 
investigation, for guidance when calculating the rate for respondents 
we did not examine in an administrative review. For the exporters 
subject to a review that were determined to be eligible for separate 
rate status, but were not selected as mandatory respondents (i.e., 
Lifetime), the Department generally weight-averages the rates 
calculated for the mandatory respondents, excluding any rates that are 
zero, de minimis, or based entirely on FA.\50\ For this administrative 
review, the Department has not calculated a margin for mandatory 
respondents, Feili and New-Tec. Therefore, for these preliminary 
results, consistent with our practice, the Department has preliminarily 
established a margin for Lifetime based on the last above de minimis 
calculated margin for any respondent in this proceeding.\51\
---------------------------------------------------------------------------

    \50\ See, e.g., Wooden Bedroom Furniture From the People's 
Republic of China: Preliminary Results of Antidumping Duty 
Administrative Review, Preliminary Results of New Shipper Review and 
Partial Rescission of Administrative Review, 73 FR 8273, 8279 
(February 13, 2008) (unchanged in Wooden Bedroom Furniture From the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and New Shipper Review, 73 FR 49162 (August 
20, 2008)).
    \51\ See Folding Metal Tables and Chairs From the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review, 72 FR 71355 (December 17, 2007).
---------------------------------------------------------------------------

Disclosure

    We will disclose the calculations used in our analysis to parties 
to this proceeding within five days of the publication date of this 
notice. See 19 CFR 351.224(b). Interested parties are invited to 
comment on the preliminary results and may submit case briefs and/or 
written comments within 30 days of the date of publication of this 
notice. See 19 CFR 351.309(c). Interested parties may file rebuttal 
briefs and rebuttals to written comments, limited to issues raised in 
such briefs or comments, no later than five days after the date on 
which the case briefs are due. See 19 CFR 351.309(d). The Department 
requests that parties submitting written comments provide an executive 
summary and a table of authorities as well as an additional copy of 
those comments electronically.
    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). If a request for a 
hearing is made, parties will be notified of the time and date for the 
hearing to be held at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230. See 19 CFR 351.310(d). 
The Department will issue the final results of this administrative 
review, which will include the results of its analysis of issues raised 
in any such comments, within 120 days of publication of these 
preliminary results, pursuant to section 751(a)(3)(A) of the Act.

Deadline for Submission of Publicly Available Surrogate Value 
Information

    In accordance with 19 CFR 351.301(c)(3)(ii), the deadline for 
submission of publicly available information to value FOPs under 19 CFR 
351.408(c) is 20 days after the date of publication of the preliminary 
results. In accordance with 19 CFR 351.301(c)(1), if an interested 
party submits factual information less than ten days before, on, or 
after (if the Department has extended the deadline), the applicable 
deadline for submission of such factual information, an interested 
party has ten days to submit factual information to rebut, clarify, or 
correct the factual information no later than ten days after such 
factual information is served on the interested party. However, the 
Department generally will not accept in the rebuttal submission 
additional or alternative surrogate value information not previously on 
the record, if the deadline for submission of surrogate value 
information has passed.\52\ Furthermore, the Department generally will 
not accept business proprietary information in either the surrogate 
value submissions or the rebuttals thereto, as the regulation regarding 
the submission of surrogate values allows only for the submission of 
publicly available information. See 19 CFR 351.301(c)(3).
---------------------------------------------------------------------------

    \52\ See, e.g., Glycine from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review and Final 
Rescission, in Part, 72 FR 58809 (October 17, 2007), and 
accompanying Issues and Decision Memorandum at Comment 2.
---------------------------------------------------------------------------

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by these reviews. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of these reviews. In accordance with 19 CFR 351.212(b)(1), we 
calculated exporter/importer (or customer)-specific assessment rates 
for the merchandise subject to these reviews.
    Where the respondent reports reliable entered values, we calculate 
importer (or customer)-specific ad valorem rates by aggregating the 
dumping margins calculated for all U.S. sales to each importer (or 
customer) and dividing this amount by the total entered value of the 
sales to each importer (or customer). See 19 CFR 351.212(b)(1). Where 
an importer (or customer)-specific ad valorem rate is greater than de 
minimis, we will apply the assessment rate to the entered value of the 
importers'/customers' entries during the POR. See 19 CFR 351.212(b)(1). 
Where we do not have entered values for all U.S. sales, we calculate a 
per-unit assessment rate by aggregating the antidumping duties due for 
all U.S. sales to each importer (or customer) and dividing this amount 
by the total quantity sold to that importer (or customer).
    To determine whether the duty assessment rates are de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer (or customer)-specific ad valorem ratios based on 
the estimated entered value. Where an importer (or customer)-specific 
ad valorem rate is zero or de minimis, we will instruct CBP to 
liquidate appropriate entries without regard to

[[Page 35842]]

antidumping duties. See 19 CFR 351.106(c)(2).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of these administrative reviews 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 New-Tec, 
Lifetime, Feili, and Xinjiamei the cash deposit rate will be the 
company-specific rate established in the final results of the 2009-2010 
reviews (except, if the rate is zero or de minimis, no cash deposit 
will be required); (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 published 
for the most recent period; (3) for all PRC exporters of subject 
merchandise that have not been found to be entitled to a separate rate, 
the cash deposit rate will be the PRC-wide rate of 70.71 percent; and 
(4) for all non-PRC exporters of subject merchandise that 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, when imposed, shall remain in effect until 
further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) 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 antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-14046 Filed 6-17-11; 8:45 am]
BILLING CODE 3510-DS-P