[Federal Register Volume 76, Number 154 (Wednesday, August 10, 2011)]
[Notices]
[Pages 49443-49449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-20327]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-890]
Wooden Bedroom Furniture From the People's Republic of China:
Preliminary Results of Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: August 10, 2011.
SUMMARY: On February 18, 2011, the Department of Commerce (the
``Department'') initiated a new shipper review of the antidumping duty
order on wooden bedroom furniture from the People's Republic of China
(``PRC'') covering sale(s) of subject merchandise made by Dongguan
Yujia Furniture Co., Ltd. (``Yujia'').\1\
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\1\ See Wooden Bedroom Furniture From the People's Republic of
China: Initiation of Antidumping Duty New Shipper Review, 76 FR
10557 (February 25, 2011) (``Initiation Notice'').
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The Department preliminarily determines that Yujia has not made
sales at less than normal value (``NV''). Upon completion of the final
results of review, the Department will instruct U.S. Customs and Border
Protection (``CBP'') to assess antidumping duties on entries of subject
merchandise during the period January 1, 2010 through December 31, 2010
(the period of review or ``POR''), for which the importer-specific
assessment rates are above de minimis.
FOR FURTHER INFORMATION CONTACT: Patrick O'Connor or Jeff Pedersen, AD/
CVD Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0989 or (202) 482-2769, respectively.
SUPPLEMENTARY INFORMATION: The antidumping duty order on wooden bedroom
furniture from the PRC was published on January 4, 2005.\2\ On January
28, 2011, the Department received a timely request for a new shipper
review from Yujia. On February 18, 2011, the Department initiated this
new shipper review. See Initiation Notice. On February 24, 2011, the
Department issued an antidumping duty questionnaire. From March 2011
through July 2011, the Department
[[Page 49444]]
received timely questionnaire and supplemental questionnaire responses.
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\2\ See Notice of Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture
From the People's Republic of China, 70 FR 329 (January 4, 2005).
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On April 7, 2011, the Office of Policy issued a memorandum
identifying six countries as being at a level of economic development
comparable to the PRC for the instant POR. The countries identified in
that memorandum are India, the Philippines, Indonesia, Thailand,
Ukraine, and Peru.\3\ On April 12, 2011, the Department released the
Policy Memorandum to interested parties and provided parties with an
opportunity to submit comments regarding the selection of a surrogate
country in the instant review.\4\ On May 17, 2011, the American
Furniture Manufacturers Committee for Legal Trade and Vaughan-Bassett
Furniture Company, Inc. (collectively, ``Petitioners'') provided
comments on surrogate country selection and publicly available
information to value factors of production (``FOP'').\5\ On May 27,
2011, Yujia provided publicly available data to value its FOP.\6\
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\3\ See Memorandum entitled, ``Request for a List of Surrogate
Countries for New Shipper Review of the Antidumping Duty Order on
Wooden Bedroom Furniture (``Furniture'') from the People's Republic
of China (``China''),'' dated April 7, 2011 (``Policy Memorandum'').
\4\ See Letter from Howard Smith, Program Manager, Office 4, to
All Interested Parties, requesting comments from interested parties
regarding the selection of a surrogate country, dated April 12,
2011.
\5\ See Letter from Petitioners regarding, ``Wooden Bedroom
Furniture From the People's Republic of China: Submission of
Publicly Available Surrogate Values to Value Factors of
Production,'' dated May 17, 2011 (``Petitioners' Surrogate Value
Submission'').
\6\ See Submission from Yujia regarding, ``Wooden Bedroom
Furniture from People's Republic of China: Surrogate Values and
Comments for Preliminary Results'' dated May 27, 2011 (``Yujia's
Surrogate Value Submission'').
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Period of Review
The POR is January 1, 2010, through December 31, 2010.
Scope of the Order
The product covered by the order is wooden bedroom furniture
(``WBF''). WBF is generally, but not exclusively, designed,
manufactured, and offered for sale in coordinated groups, or bedrooms,
in which all of the individual pieces are of approximately the same
style and approximately the same material and/or finish. The subject
merchandise is made substantially of wood products, including both
solid wood and also engineered wood products made from wood particles,
fibers, or other wooden materials such as plywood, strand board,
particle board, and fiberboard, with or without wood veneers, wood
overlays, or laminates, with or without non-wood components or trim
such as metal, marble, leather, glass, plastic, or other resins, and
whether or not assembled, completed, or finished.
The subject merchandise includes the following items: (1) Wooden
beds such as loft beds, bunk beds, and other beds; (2) wooden
headboards for beds (whether stand-alone or attached to side rails),
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds; (3) night tables, night stands, dressers, commodes,
bureaus, mule chests, gentlemen's chests, bachelor's chests, lingerie
chests, wardrobes, vanities, chessers, chifforobes, and wardrobe-type
cabinets; (4) dressers with framed glass mirrors that are attached to,
incorporated in, sit on, or hang over the dresser; (5) chests-on-
chests,\7\ highboys,\8\ lowboys,\9\ chests of drawers,\10\ chests,\11\
door chests,\12\ chiffoniers,\13\ hutches,\14\ and armoires;\15\ (6)
desks, computer stands, filing cabinets, book cases, or writing tables
that are attached to or incorporated in the subject merchandise; and
(7) other bedroom furniture consistent with the above list.
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\7\ A chest-on-chest is typically a tall chest-of-drawers in two
or more sections (or appearing to be in two or more sections), with
one or two sections mounted (or appearing to be mounted) on a
slightly larger chest; also known as a tallboy.
\8\ A highboy is typically a tall chest of drawers usually
composed of a base and a top section with drawers, and supported on
four legs or a small chest (often 15 inches or more in height).
\9\ A lowboy is typically a short chest of drawers, not more
than four feet high, normally set on short legs.
\10\ A chest of drawers is typically a case containing drawers
for storing clothing.
\11\ A chest is typically a case piece taller than it is wide
featuring a series of drawers and with or without one or more doors
for storing clothing. The piece can either include drawers or be
designed as a large box incorporating a lid.
\12\ A door chest is typically a chest with hinged doors to
store clothing, whether or not containing drawers. The piece may
also include shelves for televisions and other entertainment
electronics.
\13\ A chiffonier is typically a tall and narrow chest of
drawers normally used for storing undergarments and lingerie, often
with mirror(s) attached.
\14\ A hutch is typically an open case of furniture with shelves
that typically sits on another piece of furniture and provides
storage for clothes.
\15\ An armoire is typically a tall cabinet or wardrobe
(typically 50 inches or taller), with doors, and with one or more
drawers (either exterior below or above the doors or interior behind
the doors), shelves, and/or garment rods or other apparatus for
storing clothes. Bedroom armoires may also be used to hold
television receivers and/or other audio-visual entertainment
systems.
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The scope of the order excludes the following items: (1) Seats,
chairs, benches, couches, sofas, sofa beds, stools, and other seating
furniture; (2) mattresses, mattress supports (including box springs),
infant cribs, water beds, and futon frames; (3) office furniture, such
as desks, stand-up desks, computer cabinets, filing cabinets,
credenzas, and bookcases; (4) dining room or kitchen furniture such as
dining tables, chairs, servers, sideboards, buffets, corner cabinets,
china cabinets, and china hutches; (5) other non-bedroom furniture,
such as television cabinets, cocktail tables, end tables, occasional
tables, wall systems, book cases, and entertainment systems; (6)
bedroom furniture made primarily of wicker, cane, osier, bamboo or
rattan; (7) side rails for beds made of metal if sold separately from
the headboard and footboard; (8) bedroom furniture in which bentwood
parts predominate; \16\ (9) jewelry armoies; \17\ (10) cheval mirrors;
\18\ (11) certain metal parts;\19\ (12) mirrors that do not attach to,
incorporate in, sit on, or hang over a dresser if they are not designed
and marketed to be sold in conjunction with
[[Page 49445]]
a dresser as part of a dresser-mirror set; (13) upholstered beds \20\
and (14) toy boxes.\21\
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\16\ As used herein, bentwood means solid wood made pliable.
Bentwood is wood that is brought to a curved shape by bending it
while made pliable with moist heat or other agency and then set by
cooling or drying. See CBP's Headquarters Ruling Letter 043859,
dated May 17, 1976.
\17\ Any armoire, cabinet or other accent item for the purpose
of storing jewelry, not to exceed 24 inches in width, 18 inches in
depth, and 49 inches in height, including a minimum of 5 lined
drawers lined with felt or felt-like material, at least one side
door (whether or not the door is lined with felt or felt-like
material), with necklace hangers, and a flip-top lid with inset
mirror. See Issues and Decision Memorandum from Laurel LaCivita to
Laurie Parkhill, Office Director, concerning ``Jewelry Armoires and
Cheval Mirrors in the Antidumping Duty Investigation of Wooden
Bedroom Furniture from the People's Republic of China,'' dated
August 31, 2004. See also Wooden Bedroom Furniture From the People's
Republic of China: Final Changed Circumstances Review, and
Determination To Revoke Order in Part, 71 FR 38621 (July 7, 2006).
\18\ Cheval mirrors are any framed, tiltable mirror with a
height in excess of 50 inches that is mounted on a floor-standing,
hinged base. Additionally, the scope of the order excludes
combination cheval mirror/jewelry cabinets. The excluded merchandise
is an integrated piece consisting of a cheval mirror, i.e., a framed
tiltable mirror with a height in excess of 50 inches, mounted on a
floor-standing, hinged base, the cheval mirror serving as a door to
a cabinet back that is integral to the structure of the mirror and
which constitutes a jewelry cabinet lined with fabric, having
necklace and bracelet hooks, mountings for rings and shelves, with
or without a working lock and key to secure the contents of the
jewelry cabinet back to the cheval mirror, and no drawers anywhere
on the integrated piece. The fully assembled piece must be at least
50 inches in height, 14.5 inches in width, and 3 inches in depth.
See Wooden Bedroom Furniture From the People's Republic of China:
Final Changed Circumstances Review and Determination To Revoke Order
in Part, 72 FR 948 (January 9, 2007).
\19\ Metal furniture parts and unfinished furniture parts made
of wood products (as defined above) that are not otherwise
specifically named in this scope (i.e., wooden headboards for beds,
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds) and that do not possess the essential character
of wooden bedroom furniture in an unassembled, incomplete, or
unfinished form. Such parts are usually classified under HTSUS
subheadings 9403.90.7005, 9403.90.7010, or 9403.90.7080.
\20\ Upholstered beds that are completely upholstered, i.e.,
containing filling material and completely covered in sewn genuine
leather, synthetic leather, or natural or synthetic decorative
fabric. To be excluded, the entire bed (headboards, footboards, and
side rails) must be upholstered except for bed feet, which may be of
wood, metal, or any other material and which are no more than nine
inches in height from the floor. See Wooden Bedroom Furniture from
the People's Republic of China: Final Results of Changed
Circumstances Review and Determination to Revoke Order in Part, 72
FR 7013 (February 14, 2007).
\21\ To be excluded the toy box must: (1) Be wider than it is
tall; (2) have dimensions within 16 inches to 27 inches in height,
15 inches to 18 inches in depth, and 21 inches to 30 inches in
width; (3) have a hinged lid that encompasses the entire top of the
box; (4) not incorporate any doors or drawers; (5) have slow-closing
safety hinges; (6) have air vents; (7) have no locking mechanism;
and (8) comply with American Society for Testing and Materials
(``ASTM'') standard F963-03. Toy boxes are boxes generally designed
for the purpose of storing children's items such as toys, books, and
playthings. See Wooden Bedroom Furniture from the People's Republic
of China: Final Results of Changed Circumstances Review and
Determination to Revoke Order in Part, 74 FR 8506 (February 25,
2009). Further, as determined in the scope ruling memorandum
``Wooden Bedroom Furniture from the People's Republic of China:
Scope Ruling on a White Toy Box,'' dated July 6, 2009, the
dimensional ranges used to identify the toy boxes that are excluded
from the wooden bedroom furniture order apply to the box itself
rather than the lid.
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Imports of subject merchandise are classified under subheadings
9403.50.9042 and 9403.50.9045 of the Harmonized Tariff Schedule of the
United States (``HTSUS'') as ``wooden * * * beds'' and under subheading
9403.50.9080 of the HTSUS as ``other * * * wooden furniture of a kind
used in the bedroom.'' In addition, wooden headboards for beds, wooden
footboards for beds, wooden side rails for beds, and wooden canopies
for beds may also be entered under subheading 9403.50.9042 or
9403.50.9045 of the HTSUS as ``parts of wood.'' Subject merchandise may
also be entered under subheading 9403.50.9041 or 9403.60.8081. Further,
framed glass mirrors may be entered under subheading 7009.92.1000 or
7009.92.5000 of the HTSUS as ``glass mirrors * * * framed.'' This order
covers all WBF meeting the above description, regardless of tariff
classification. Although the HTSUS subheadings are provided for
convenience and customs purposes, our written description of the scope
of this proceeding is dispositive.
Bona Fides Sale Analysis
For this review, consistent with the Department's practice, the
Department investigated the bona fide nature of the sales(s) made by
Yujia during the POR. In evaluating whether or not a sale in a new
shipper review is commercially reasonable, and therefore bona fide, the
Department considers, inter alia, such factors as: (1) The timing of
the sale; (2) the price and quantity; (3) the expenses arising from the
transaction; (4) whether the goods were resold at a profit; and (5)
whether the transaction was made on an arm's-length basis. See, e.g.,
Tianjin Tiancheng Pharmaceutical Co., Ltd. v. United States, 366 F.
Supp. 2d 1246, 1250 (CIT 2005). Accordingly, the Department considers a
number of factors in its bona fides analysis, ``all of which may speak
to the commercial realities surrounding an alleged sale of subject
merchandise.'' See Hebei New Donghua Amino Acid Co., Ltd. v. United
States, 374 F. Supp. 2d 1333, 1342 (CIT 2005) (citing Fresh Garlic From
the People's Republic of China: Final Results of Antidumping
Administrative Review and Rescission of New Shipper Review, 67 FR 11283
(March 13, 2002)).
The Department preliminarily finds that the sale(s) of subject
merchandise made by Yujia were made on a bona fide basis. Specifically,
the Department preliminarily finds that: (1) The timing of the sale(s)
by itself does not indicate that the sale(s) might not be bona fide;
(2) record evidence indicates that overall the price and quantity of
the sale(s) are commercially reasonable and not atypical of normal
business practices of wooden bedroom furniture exporters; (3) Yujia and
its customer did not incur any extraordinary expenses arising from the
transaction(s); and (4) the new shipper sale(s) were made between
unaffiliated parties at arm's length. The Department does not believe
Yujia's unaffiliated importer's failure to substantiate its claim that
it resold the goods in question at a profit \22\ overcomes the totality
of evidence described above demonstrating Yujia's sale(s) are bona
fide. Therefore, the Department has preliminarily found that Yujia's
sale(s) of subject merchandise to the United States were bona fide for
purposes of this new shipper review.
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\22\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD
Operations, Office 4, regarding, ``Antidumping Duty New Shipper
Review of Wooden Bedroom Furniture from the People's Republic of
China: Bona Fide Sales Analysis for Dongguan Yujia Furniture Co.,
Ltd.,'' dated concurrently with this notice.
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Non-Market Economy Country Status
In every antidumping case conducted by the Department involving the
PRC, the PRC has been treated as a non-market economy (``NME'')
country.\23\ In accordance with section 771(18)(C)(i) of the Tariff Act
of 1930, as amended (``the Act''), any determination that a foreign
country is an NME country shall remain in effect until revoked by the
administering authority. None of the parties to this proceeding has
contested such treatment. Accordingly, the Department calculated NV in
accordance with section 773(c) of the Act, which applies to NME
countries.
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\23\ See, e.g., Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, From the People's Republic of China:
Preliminary Results of 2001-2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500 (February 14, 2003) (unchanged in
the final results, Tapered Rolling Bearings and Parts Thereof,
Finished and Unfinished, from the People's Republic of China: Final
Results of 2001-2002 Administrative Review and Partial Rescission of
Review, 68 FR 70488 (December 18, 2003)).
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Separate Rate
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. It is the Department's policy to assign all
exporters of subject merchandise 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. 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
Final Determination of Sales at Less Than Fair Value: Sparklers From
the People's Republic of China, 56 FR 20588 (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, 22586-7 (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. See Notice
of Final Determination of Sales at Less Than Fair Value: Creatine
Monohydrate From the People's Republic of China, 64 FR 71104, 71104-05
(December 20, 1999) (where the respondent was wholly foreign-owned and,
thus, qualified for a separate rate).
Separate Rate Recipient
Yujia is a wholly Chinese-owned company and is located in the PRC.
Therefore, the Department has analyzed whether Yujia has demonstrated
the absence of both de jure and de facto government control over its
export activities.
[[Page 49446]]
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) legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by Yujia supports a preliminary finding of de
jure absence of government control based on the following: (1) An
absence of restrictive stipulations associated with Yujia's business
and export licenses; \24\ (2) applicable legislative enactments
decentralizing control over PRC companies; \25\ and (3) formal measures
by the government decentralizing control of PRC companies.\26\
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\24\ See Yujia's business license from ``Wooden Bedroom
Furniture from the People's Republic of China--Section A
Questionnaire Response'' dated March 17, 2011 (``Yujia's Section A
response'') at Exhibit A-2.
\25\ See Yujia's Section A response at Exhibit A-1.
\26\ See id.
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B. Absence of De Facto Control
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. 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).
The Department has determined that an analysis of de facto control is
critical in determining whether respondents are subject to a degree of
government control which would preclude the Department from assigning
separate rates.
The evidence provided by Yujia supports a preliminary finding of de
facto absence of government control over its export activities based on
the following: (1) Yujia set its own export prices independent of the
government and without the approval of a government authority; (2)
Yujia's general managers have the authority to negotiate and bind the
company in an agreement; (3) Yujia maintains autonomy from the
government in making decisions regarding the selection of management;
and (4) Yujia retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses.\27\
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\27\ See Yujia's Section A response from p. 3 to 11 and Exhibits
A-1, A-2, and A-3.
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The evidence placed on the record by Yujia demonstrates an absence
of de jure and de facto government control, in accordance with the
criteria identified in Sparklers and Silicon Carbide. Accordingly, the
Department has preliminarily granted a separate rate to Yujia.
Surrogate Country
When the Department conducts an antidumping duty new shipper review
of imports from an NME country, section 773(c)(1) of the Act directs
the Department to base NV, in most circumstances, on the NME producer's
FOP valued in a surrogate market-economy country or countries
considered appropriate by the Department. In accordance with section
773(c)(4) of the Act, the Department will value FOP using ``to the
extent possible, the prices or costs of factors of production in one or
more market economy countries that are--(A) At a level of economic
development comparable to that of the NME country, and (B) significant
producers of comparable merchandise.'' Further, pursuant to 19 CFR
351.408(c)(2), the Department will normally value all FOP in a single
country.
As stated previously, the Department identified India, the
Philippines, Indonesia, Thailand, Ukraine, and Peru as being at a level
of economic development comparable to the PRC.\28\ Petitioners provided
a report entitled The Furniture Industry in the Philippines published
by the international research firm CSIL Milano in October 2007 stating
that in 2006 Philippine manufacturers produced furniture valued at $813
million and the Philippines exported furniture valued at $279
million.\29\ The Furniture Industry in the Philippines states that wood
has replaced rattan as the most commonly used material in furniture
production and wooden furniture accounted for 51 percent of all
Philippine furniture exports. Additionally, The Furniture Industry in
the Philippines states that the furniture sector was comprised of
approximately 15,000 manufacturers and 800,000 workers.\30\ No other
parties commented on the selection of a surrogate country. Based on the
above, we have determined that the Philippines is a significant
producer of merchandise that is comparable to the merchandise under
review.
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\28\ See Policy Memorandum. 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.
\29\ See Petitioners' Surrogate Value Submission at Attachment
19, tab C, p. 6.
\30\ See Petitioners' Surrogate Value Submission at Attachment
19, tab C, from pp. 8-10.
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With respect to data considerations in selecting a surrogate
country, both Petitioners and Yujia have submitted publicly-available
Philippine data for valuing FOP.\31\ No other data from other potential
surrogate countries exist on this record. In addition, the Department
used the Philippines as the primary surrogate country in the second,
third, fourth, and fifth administrative reviews of this proceeding.\32\
Therefore, based on its experience, the Department finds that the
Philippines has provided reliable, publicly-available data for valuing
the FOP. Also the Philippines is the only country listed by the Office
of Policy as a potential surrogate country for the PRC for which
sufficient data exist to calculate an accurate antidumping duty margin.
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\31\ See Petitioners' Surrogate Value Submission and Yujia's
Surrogate Value Submission.
\32\ See 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, 8277-78 (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)); see
Wooden Bedroom Furniture From the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative and New
Shipper Reviews and Partial Rescission of Review, 74 FR 6372, 6376
(February 9, 2009) (unchanged in Wooden Bedroom Furniture from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review and New Shipper Reviews, 74 FR 41374 (August
17, 2009)); see also Wooden Bedroom Furniture From the People's
Republic of China: Preliminary Results of Antidumping Duty
Administrative Review and Intent To Rescind Review in Part, 75 FR
5952 (February 5, 2010) (unchanged in Wooden Bedroom Furniture From
the People's Republic of China: Final Results and Final Rescission
in Part, 75 FR 50992 (August 18, 2010)); see Wooden Bedroom
Furniture from the People's Republic of China: Preliminary Results
of Antidumping Duty Administrative Review and Intent To Rescind
Review in Part, 76 FR 7534 (February 10, 2011).
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Thus, the Department has preliminarily selected the Philippines as
the primary surrogate country because the record shows that the
Philippines is at a level of economic development
[[Page 49447]]
comparable to that of the PRC and is a significant producer of
merchandise comparable to subject merchandise. Moreover, the record
indicates that sufficient, contemporaneous, public Philippine data are
readily-available.\33\ Accordingly, we have calculated NV using
Philippine prices to value Yujia's FOP.\34\ In accordance with 19 CFR
351.301(c)(3)(ii), interested parties may submit publicly available
information to value the FOP until 20 days after the date of
publication of the preliminary results.\35\
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\33\ See Petitioners' Surrogate Value Submission and Yujia's
Surrogate Value Submission.
\34\ See 2010 New Shipper Review of Wooden Bedroom Furniture
from the People's Republic of China: Surrogate Value Memorandum for
the Preliminary Results (``Surrogate Value Memorandum'').
\35\ In accordance with 19 CFR 351.301(c)(1), for the final
results of this new shipper review, interested parties may submit
factual information to rebut, clarify, or correct factual
information submitted by an interested party less than ten days
before, on, or after, the applicable deadline for submission of such
factual information. However, the Department notes that 19 CFR
351.301(c)(1) permits new information only insofar as it rebuts,
clarifies, or corrects information placed on the record. The
Department generally will not accept the submission of additional,
previously absent-from-the-record alternative surrogate value
information pursuant to 19 CFR 351.301(c)(1). See 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.
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Fair Value Comparisons
In accordance with section 777(A)(d) of the Act, to determine
whether Yujia sold wooden bedroom furniture to the United States at
less than NV, the Department compared the export price (``EP'') of U.S.
sales to NV, as described in the ``U.S. Price'' and ``Normal Value''
sections of this notice.
U.S. Price
In accordance with section 772(a) of the Act, the Department used
EP as the basis for U.S. price for Yujia's sale(s) where the first sale
to unaffiliated purchasers was made prior to importation and the use of
constructed export price was not otherwise warranted. In accordance
with section 772(c) of the Act, the Department calculated EP for Yujia
by deducting the following expenses, where applicable, from the
starting price (gross unit price) charged to the first unaffiliated
customer in the United States: foreign inland freight from the plant to
the port of exportation, and foreign brokerage and handling.
Additionally, the Department based movement expenses on surrogate
values (``SV'') where the service was purchased from a PRC company. For
details regarding our EP calculations, see the memoranda entitled,
``Wooden Bedroom Furniture from the People's Republic of China:
Preliminary Results Analysis Memorandum for Dongguan Yujia Furniture
Co., Ltd.'' (``Yujia Analysis Memorandum'') and the Surrogate Value
Memorandum, both dated concurrently with the preliminary results.
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine the NV using an FOP methodology if: (1) The merchandise is
exported from an NME country; and (2) the information does not permit
the calculation of NV using home-market prices, third-country prices,
or constructed value under section 773(e) of the Act. When determining
NV in an NME context, the Department will base NV on FOP, because the
presence of government controls on various aspects of these economies
renders price comparisons and the calculation of production costs
invalid under our normal methodologies. Under section 773(c)(3) of the
Act, FOP include, but are not limited to: (1) Hours of labor required;
(2) quantities of raw materials employed; (3) amounts of energy and
other utilities consumed; and (4) representative capital costs. The
Department based NV on FOP reported by Yujia for materials, energy,
labor and packing.
In accordance with 19 CFR 351.408(c)(1), the Department will
normally use publicly-available surrogates to value FOP, but when a
producer sources an input from a market economy and pays for it in
market economy currency, the Department will normally value the factor
using the actual price paid for the input. However, when the Department
has reason to believe or suspect that such prices may be distorted by
subsidies, the Department will disregard the market economy purchase
prices and use surrogate values to determine the NV.\36\ Where the
facts developed in either U.S. or third-country countervailing duty
findings include the existence of subsidies that appear to be used
generally (in particular, broadly available, non-industry specific
export subsidies), the Department will have reason to believe or
suspect that prices of the inputs from the country granting the
subsidies may be subsidized.\37\
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\36\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, From the People's Republic of China; Final Results of
1998-1999 Administrative Review, Partial Rescission of Review, and
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10,
2001) (``TRBs 1998-1999''), and accompanying Issues and Decision
Memorandum at Comment 1.
\37\ See TRBs 1998-1999 at Comment 1; see also China Nat'l.
Machinery Imp. & Exp. Corp. v. United States, 293 F. Supp. 2d 1334,
1338-39 (Ct. Int'l Trade 2003).
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In avoiding the use of prices that may be subsidized, the
Department does not conduct a formal investigation to ensure that such
prices are not subsidized, but rather relies on information that is
generally available at the time of its determination.\38\
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\38\ See H.R. Rep. 100-576, at 590 (1988), reprinted in 1988
U.S.C.C.A.N. 1547, 1623-24.
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Factor Valuation
In accordance with section 773(c) of the Act, we calculated NV
based on FOP reported by Yujia for the POR. To calculate NV, the
Department multiplied the reported per-unit factor quantities by
publicly-available Philippine SV (except as noted below). In selecting
the SV, the Department considered the quality, specificity, and
contemporaneity of the data. As appropriate, the Department adjusted
input prices by including freight costs to make them delivered prices.
Specifically, the Department added to Philippine import SV a surrogate
freight cost using the shorter of the reported distance from the
domestic supplier to the respondent's factory or the distance from the
nearest seaport to the respondent's factory where appropriate (i.e.,
where the sales terms for the market economy inputs indicate they were
not delivered to the factory). This adjustment is in accordance with
the decision of the Court of Appeals for the Federal Circuit (``CAFC'')
in Sigma Corp. v. United States, 117 F.3d 1401, 1407-08 (Fed.
Cir.1997). Due to the extensive number of SV in this new shipper
review, we present only a brief discussion of the main FOP in this
notice. For a detailed description of all SV used to value Yujia's
reported FOP, see Surrogate Value Memorandum.
Yujia reported that one of its raw material inputs was produced in
a market economy country and paid for in market economy currencies.
Pursuant to 19 CFR 351.408(c)(1), when a respondent sources inputs from
a market economy supplier in meaningful quantities (i.e., not
insignificant quantities) and pays for the inputs in a market economy
currency, we use the actual price paid by the respondent for the inputs
to value the inputs, except when prices may have been distorted by
findings of dumping by the PRC and/or subsidies.\39\ Yujia reported
information
[[Page 49448]]
demonstrating that the quantity of certain raw materials it purchased
from market economy suppliers is significant. Thus, in accordance with
our statement of policy as outlined in Antidumping Methodologies:
Market Economy Inputs, we have used the actual purchases of these
inputs to value the inputs.\40\
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\39\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27366 (May 19, 1997).
\40\ See Antidumping Methodologies: Market Economy Inputs,
Expected Non-Market Economy Wages, Duty Drawback; and Request for
Comments, 71 FR 61716, 61717 (October 19, 2006) (``Antidumping
Methodologies: Market Economy Inputs''); see also Yujia Analysis
Memorandum.
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Where market economy purchases of inputs were not made in
significant quantities during the POR, we used, in total or in part,
import values for the POR from the Philippines National Statistics
Office (``Philippines NSO'') reported in U.S. dollars on a cost,
insurance, and freight (``CIF'') basis to value the inputs.
Specifically, we used Philippines NSO data to value the following
inputs: wood (e.g., medium-density fiberboard, wood veneer, etc.),
adhesives and finishing materials (e.g., glue, paint, pigment, thinner,
etc.), hardware (e.g., steel screws, bolts, nails, metal fittings,
etc.), other materials (e.g., sand paper, sand cloth, sand sponge,
wrench, etc.), and packing materials (e.g., carton box, poly bag,
adhesive tape, polyfoam, extended polythene, etc.). The Philippines NSO
provides data on a net weight basis, which is the same basis used by
Yujia in reporting FOP.\41\ For a detailed description of all SV used
to value the reported FOP, see Surrogate Value Memorandum.
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\41\ Yujia submitted Harmonized Tariff Schedule (``HTS'') number
44219099 for the Department's consideration in the valuation of wood
sticks used in the production of wooden furniture. However, this HTS
classification is valued on a per-piece basis. Because Yujia
reported its consumption of wood sticks by weight, we based the
surrogate value for wood sticks on all 8 digit categories within the
4421 heading that were on a per-kilogram basis.
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Previously, the Department used regression-based wages that
captured the worldwide relationship between per capita Gross National
Income (``GNI'') and hourly manufacturing wages, pursuant to 19 CFR
351.408(c)(3), to value the respondent's cost of labor. However, on May
14, 2010, the CAFC in Dorbest Ltd. v. United States, 604 F.3d 1363,
1372 (Fed. Cir. 2010) (``Dorbest''), invalidated 19 CFR 351.408(c)(3).
As a consequence of the CAFC's ruling in Dorbest, the Department no
longer relies on the regression-based wage rate methodology described
in its regulations. On February 18, 2011, the Department published in
the Federal Register a request for public comment on the interim
methodology, and the data sources. See Antidumping Methodologies in
Proceedings Involving Non-Market Economies: Valuing the Factor of
Production: Labor, Request for Comment, 76 FR 9544 (Feb. 18, 2011).
On June 21, 2011, the Department revised its methodology for
valuing the labor input in NME antidumping proceedings. See Antidumping
Methodologies in Proceedings Involving Non-Market Economies: Valuing
the Factor of Production: Labor, 76 FR 36092 (June 21, 2011) (``Labor
Methodologies''). In Labor Methodologies, the Department determined
that the best methodology to value the labor input is to use industry-
specific labor rates from the primary surrogate country. Additionally,
the Department determined that the best data source for industry-
specific labor rates is Chapter 6A: Labor Cost in Manufacturing, from
the International Labor Organization (ILO) Yearbook of Labor Statistics
(``Yearbook'').
In these preliminary results, the Department calculated the labor
input using the wage method described in Labor Methodologies. To value
Yujia's labor input, the Department relied on data reported by the
Philippines to the ILO in Chapter 6A of the Yearbook. The Department
further finds the two-digit description under International Standard
Industrial Classification (``ISIC'') Revision 3.1 (``Manufacture of
Furniture; Manufacturing n.e.c.'') to be the best available information
on the record because it is specific to the industry being examined,
and is therefore derived from industries that produce comparable
merchandise. Accordingly, relying on Chapter 6A of the Yearbook, the
Department calculated the labor input using labor data reported by the
Philippines to the ILO under Sub-Classification 36 of the ISIC-Revision
3.1 standard, in accordance with Section 773(c)(4) of the Act. For
these preliminary results, the calculated industry-specific wage rate
is 78 Philippine pesos. A more detailed description of the wage rate
calculation methodology is provided in the Surrogate Value Memorandum.
As stated above, the Department used the Philippines ILO data
reported under Chapter 6A of the Yearbook, which reflects all costs
related to labor, including wages, benefits, housing, training, etc.
Since certain financial statements used to calculate the surrogate
financial ratios include itemized details of indirect labor costs such
as benefits, bonuses, pensions, and other items for staff welfare, the
Department made adjustments to the surrogate financial ratios by moving
costs from manufacturing and overhead to labor. See Labor
Methodologies.
We valued electricity using Philippine data from The Cost of Doing
Business in Camarines Sur, which is available at the Philippine
government's Web site for the province: http://www.camarinessur.gov.ph.
These data pertain only to the cost of electricity for industrial
consumption.\42\
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\42\ See Surrogate Value Memorandum.
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We valued inland freight and brokerage and handling using
Philippine data from the World Bank's 2011 Doing Business in the
Philippines report. The 2011 World Bank report includes data
contemporaneous with the POR.\43\
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\43\ See Ibid.
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We valued factory overhead, selling, and general, and
administrative (``SG&A'') expenses, and profit, using the audited
financial statements for the fiscal year ending December 31, 2009, from
the following companies: APY Cane International; Arkane International,
Corp.; Berbenwood Industries Inc.; Betis Crafts, Inc.; Clear Export
Industries, Inc.; Heritage Muebles Mirabile Export Inc.; Insular Rattan
& Native Products Corporation; Interior Crafts Of The Islands, Inc.;
Las Palmas Furniture, Inc.; Maple and Pine International, Inc.;
Stonesets International Inc.; and Wicker & Vine, Inc., which are
Philippine producers of merchandise identical to subject merchandise
that received no countervailable subsidies and that earned a before-tax
profit in 2009. From this information, we were able to determine
factory overhead costs as a percentage of the total raw materials,
labor and energy (``ML&E'') costs; SG&A expenses as a percentage of
ML&E plus overhead costs (i.e., cost of manufacture); and the profit
rate as a percentage of the cost of manufacture plus SG&A expenses. For
further discussion, see Surrogate Value Memorandum.
Currency Conversion
We made currency conversions into U.S. dollars, 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 Review
The Department preliminarily determines that the following
weighted-average dumping margin exists for the period January 1, 2010,
through December 31, 2010:
[[Page 49449]]
------------------------------------------------------------------------
Weighted-
average
Exporter/Producer margin
(percent)
------------------------------------------------------------------------
Dongguan Yujia Furniture Co., Ltd......................... 0.00
------------------------------------------------------------------------
Disclosure
The Department will disclose calculations performed for these
preliminary results to the parties within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Public Comment
Interested parties may submit written comments no later than 30
days after the date of publication of these preliminary results of
review. See 19 CFR 351.309(c). Rebuttals to written comments must be
limited to the issues raised in the written comments and may be filed
no later than five days after the deadline for filing case briefs. See
19 CFR 351.309(d). Further, parties submitting written comments and
rebuttal comments are requested to provide the Department with an
additional copy of those comments on a compact disk. Any interested
party may request a hearing within 30 days of publication of these
preliminary results. See 19 CFR 351.310(c). If requested, a hearing
normally will be held two days after the scheduled date for submission
of rebuttal comments. See 19 CFR 351.310(d). Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
The Department will issue the final results of this new shipper
review, which will include the results of its analysis of any issues
raised in written comments, within 90 days of the date on which these
preliminary results are issued, in accordance with 19 CFR
351.214(i)(1), unless the time limit is extended. See 19 CFR
351.214(i)(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 this review. The Department intends to issue assessment
instructions to CBP 15 days after the publication date of the final
results of this review. In accordance with 19 CFR 351.212(b)(1), we are
calculating importer- (or customer-) specific assessment rates for the
merchandise subject to this review. Where the respondent has reported
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).
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, pursuant to 19 CFR
351.212(b)(1).
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this new shipper review for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date, as
provided for by section 751(a)(2)(C) of the Act: (1) For the exporter
listed above, the cash deposit rate will be the rate established in the
final results of this review (except, if the rate is zero or de
minimis, i.e., less than 0.5 percent, a zero cash deposit rate will be
required for that company); (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
216.01 percent; and (4) for all non-PRC exporters of subject
merchandise which have not received their own rate, the cash deposit
rate will be the rate applicable to the PRC exporter(s) that supplied
that non-PRC exporter. These deposit requirements, when imposed, shall
remain in effect until further notice.
Notification to Interested Parties
This notice serves as a reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this POR. 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.
The Department is issuing and publishing this determination in
accordance with sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR
351.214(h) and 351.221(b)(4).
Dated: August 3, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-20327 Filed 8-9-11; 8:45 am]
BILLING CODE 3510-DS-P