[Federal Register Volume 78, Number 50 (Thursday, March 14, 2013)]
[Notices]
[Pages 16250-16252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05929]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-987]


Hardwood and Decorative Plywood From the People's Republic of 
China: Amended Preliminary Countervailing Duty Determination; and 
Alignment of Final Determination With Final Antidumping Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of hardwood and decorative plywood from the 
People's Republic of China (PRC).

DATES: Effective Date: March 14, 2013.

FOR FURTHER INFORMATION CONTACT: David Lindgren, Toni Page, or Lingjun 
Wang, AD/CVD Operations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3870, (202) 482-1398, and (202) 482-2316, respectively.

SUPPLEMENTARY INFORMATION: 

Amendment

    We released the preliminary determination to the parties on 
Wednesday, February 27, 2013. However, that version inadvertently 
included a typographical error in the ``Scope of the Investigation'' 
section. This amended preliminary determination corrects that error. 
The error was discovered prior to publication in the Federal Register, 
consequently this amended notice is being published in its place.

Alignment of Final Countervailing Duty Determination With Final 
Antidumping Duty Determination

    In addition to the countervailing duty (CVD) investigation on 
hardwood and decorative plywood, the Department also initiated an 
antidumping duty (AD) investigation of the same merchandise from the 
PRC.\1\ The CVD and AD investigations have the same scope with regard 
to the merchandise covered.
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    \1\ See Hardwood and Decorative Plywood From the People's 
Republic of China: Initiation of Antidumping Duty Investigation, 77 
FR 65172 (October 25, 2012).
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    On February 21, 2013, Petitioners submitted a letter, in accordance 
with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), 
requesting alignment of the final CVD determination with the final AD 
determination of hardwood and decorative plywood from the PRC.\2\ 
Therefore, in accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), we are aligning the final CVD determination with the 
final AD determination. Consequently, the final CVD determination will 
be issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than July 15, 2013, unless 
postponed.
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    \2\ See Letter from Petitioners to the Department 
``Countervailing Duty Investigation of Hardwood and Decorative 
Plywood from the People's Republic of China--Request to Align Final 
Determination with Antidumping Investigation,'' (February 21, 2013).
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Scope of the Investigation

    The merchandise subject to this investigation is hardwood and 
decorative plywood. Hardwood and decorative plywood is a flat panel 
composed of an assembly of two or more layers or plies of wood veneers 
in combination with a core. The veneers, along with the core, are glued 
or otherwise bonded together to form a finished product. A hardwood and 
decorative plywood panel must have face and back veneers which are 
composed of one or more species of hardwoods, softwoods, or bamboo. 
Hardwood and decorative plywood may include products that meet the 
American National Standard for Hardwood and Decorative Plywood, ANSI/
HPVA HP-1-2009.
    All hardwood and decorative plywood is included within the scope of 
this investigation, without regard to dimension (overall thickness, 
thickness of face veneer, thickness of back veneer, thickness of core, 
thickness of inner veneers, width, or length). However, the most common 
panel sizes of hardwood and decorative plywood are 1219 x 1829 
millimeters (mm) (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 
1219 x 3048 mm (48 x 120 inches).
    A ``veneer'' is a thin slice of wood which is rotary cut, sliced or 
sawed from a log, bolt or flitch. The face veneer is the exposed veneer 
of a hardwood and decorative plywood product which is of a superior 
grade than that of the back veneer, which is the other exposed veneer 
of the product (i.e., as opposed to the inner veneers). When the two 
exposed veneers are of equal grade, either one can be considered the 
face or back veneer. For products that are entirely composed of veneer, 
such as Veneer Core Platforms, the exposed veneers are to be considered 
the face and back veneers, in accordance with the descriptions above.
    The core of hardwood and decorative plywood consists of the layer 
or layers of one or more material(s) that are situated between the face 
and back veneers. The core may be composed of a range of materials, 
including but not limited to veneers, particleboard, and medium-density 
fiberboard (MDF).
    All hardwood and decorative plywood is included within the scope of 
this investigation regardless of whether or not the face and/or back 
veneers are surface coated, unless the surface coating obscures the 
grain, texture or markings of the wood. Examples of surface coatings 
which may not obscure the grain, texture or markings of the wood 
include, but are not limited to, ultra-violet light cured 
polyurethanes,

[[Page 16251]]

oil or oil-modified or water based polyurethanes, wax, epoxy-ester 
finishes, and moisture-cured urethanes. Hardwood and decorative plywood 
that has face and/or back veneers which have an opaque surface coating 
which obscures the grain, texture or markings of the wood, are not 
included within the scope of this investigation. Examples of surface 
coatings which may obscure the grain, texture or markings of wood 
include, but are not limited to, paper, aluminum, high pressure 
laminate (HPL), MDF, medium density overlay (MDO), and phenolic film. 
Additionally, the face veneer of hardwood and decorative plywood may be 
sanded, smoothed or given a ``distressed'' appearance through such 
methods as hand-scraping or wire brushing. The face veneer may be 
stained.
    The scope of the investigation excludes the following items: (1) 
Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured and stamped to meet U.S. 
Products Standard PS 1-09 for Structural Plywood (including any 
revisions to that standard or any substantially equivalent 
international standard intended for structural plywood), including but 
not limited to the ``bond performance'' requirements set forth at 
paragraph 5.8.6.4 of that Standard and the performance criteria 
detailed at Table 4 through 10 of that Standard; (2) products which 
have a face and back veneer of cork; (3) multilayered wood flooring, as 
described in the antidumping duty and countervailing duty orders on 
Multilayered Wood Flooring from the People's Republic of China, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce Investigation Nos. A-570-970 and C-570-971 (published December 
8, 2011); (4) plywood which has a shape or design other than a flat 
panel.
    Imports of the subject merchandise are provided for under the 
following subheadings of the Harmonized Tariff Schedule of the United 
States (HTSUS): 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.2510; 4412.31.2520; 4412.31.4040; 4412.31.4050; 4412.31.4060; 
4412.31.4070; 4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.5175; 
4412.31.6000; 4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0560; 
4412.32.2510; 4412.32.2520; 4412.32.3135; 4412.32.3155; 4412.32.3165; 
4412.32.3175; 4412.32.3185; 4412.32.5600; 4412.39.1000; 4412.39.3000; 
4412.39.4011; 4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 
4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 
4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030; 4412.39.5050; 
4412.94.1030; 4412.94.1050; 4412.94.3111; 4412.94.3121; 4412.94.3131; 
4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100; 4412.94.6000; 
4412.94.7000; 4412.94.8000; 4412.94.9000; 4412.99.0600; 4412.99.1020; 
4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 
4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 
4412.99.5710; 4412.99.6000; 4412.99.7000; 4412.99.8000; and 
4412.99.9000.
    While HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the subject merchandise as set 
forth herein is dispositive.

Methodology

    The Department is conducting this CVD investigation in accordance 
with section 701 of the Act. For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.\3\ The Preliminary Decision Memorandum is a public document 
and is on file electronically via Import Administration's Antidumping 
and Countervailing Duty Centralized Electronic Service System (IA 
ACCESS). IA ACCESS is available to registered users at http://iaaccess.trade.gov, and is available to all parties in the Central 
Records Unit, room 7046 of the main Department of Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly on the Internet at http://www.trade.gov/ia/. The 
signed Preliminary Decision Memorandum and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \3\ See Memorandum from Gary Taverman, Senior Advisor for 
Antidumping and Countervailing Duty Operations, to Paul Piquado, 
Assistant Secretary for Import Administration regarding ``Decision 
Memorandum for the Preliminary Determination in the Countervailing 
Duty Investigation of Hardwood and Decorative Plywood from the 
People's Republic of China,'' dated February 26, 2013 (Preliminary 
Decision Memorandum).
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    The Department notes that, in making these findings, we have 
relied, in part, on facts available and, because one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, we have drawn an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\4\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \4\ See sections 776(a) and (b) of the Act.
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Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise under investigation. We preliminarily determine the 
countervailable subsidy rates to be:

------------------------------------------------------------------------
                Company                            Subsidy rate
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Linyi City Dongfang Jinxin Economic &    de minimis.
 Trade Co., Ltd.
Linyi San Fortune Wood Co., Ltd.         de minimis.
Shanghai Senda Fancywood Inc. a/k/a      de minimis.
 Shanghai Senda Fancywood Industry Co.
Asia Dekor (Heyuan) Woods Co., Ltd.*     27.16 percent.
Baishan Huafeng Wooden Product Co.*      27.16 percent.
China Friend Limited*                    27.16 percent.
Feixian Guangyuan Plywood Factory.*      27.16 percent.
Feixian Xinfeng Wood Co Ltd.*            27.16 percent.
Huzhou Chen Hang Wood Co. Ltd.*          27.16 percent.
Jiafeng Wood (Suzhou) Co., Ltd.*         27.16 percent.
Linyi Guoxin Wood Co., Ltd.*             27.16 percent.
Linyi Huayuan Wood Co., Ltd.*            27.16 percent.
Linyi Sengong Wood Co., Ltd.*            27.16 percent.
Lizhong Wood Industry Limited Co.*       27.16 percent.
Shandong Lichen Group Co., Ltd.*         27.16 percent.
Wellmade Floor Industries Co. Ltd.*      27.16 percent.
Zhejiang Dadongwu GreenHome Wood Co.*    27.16 percent.
Zhejiang Desheng Wood Industry Co.,      27.16 percent.
 Ltd.*
All Others                               22.63 percent.
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* Non-cooperative company to which an adverse facts available rate is
  being applied. See ``Use of Facts Otherwise Available and Adverse
  Inferences'' in the Preliminary Decision Memorandum.

    In accordance with sections 703(d)(1)(B) and (2) of the Act, with 
the exception of Linyi City Dongfang Jinxin Economic & Trade Co., Ltd 
(Dongfang), Linyi San Fortune Wood Co., Ltd. (San Fortune), and 
Shanghai Senda Fancywood Co., Ltd. (Senda), we are

[[Page 16252]]

directing U.S. Customs and Border Protection to suspend liquidation of 
all entries of hardwood and decorative plywood from the PRC that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of the publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. Because the subsidy rates for Dongfang, San Fortune, 
and Senda are de minimis, liquidation will not be suspended and no cash 
deposits will be required for merchandise that are produced and 
exported by Dongfang, San Fortune, and Senda.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all-others'' rate, which is 
normally calculated by weighting the subsidy rates of the individual 
companies selected as respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(i) of 
the Act, the all-others rate should exclude zero and de minimis rates 
calculated for the exporters and producers individually investigated. 
Where the rates for the investigated companies are all zero or de 
minimis, section 705(c)(5)(A)(ii) of the Act instructs the Department 
to establish an all-others rate using ``any reasonable method.'' We 
preliminarily determine that a reasonable method for establishing the 
all-others rate is to calculate a simple average of the subsidy rates 
for all companies to which an individual subsidy rate was applied.

Disclosure and Public Comment

    The Department will disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). Case briefs or other written comments for all non-scope 
issues may be submitted to the Assistant Secretary for Import 
Administration no later than seven days after the date on which the 
final verification report is issued in this proceeding, and rebuttal 
briefs, limited to issues raised in case briefs, may be submitted no 
later than five days after the deadline date for case briefs.\5\ 
Following the publication of the preliminary determination in the 
companion AD investigation, the Department will establish a separate 
briefing schedule for scope issues. Parties must file separate and 
identical documents on both the AD and CVD records for any briefs 
related to scope only. Additionally, the Department intends to address 
specific scope exclusion requests in the preliminary determination of 
the companion AD investigation. A table of contents, list of 
authorities used and an executive summary of issues should accompany 
any briefs submitted to the Department. This summary should be limited 
to five pages total, including footnotes.
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    \5\ See 19 CFR 351.309.
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    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, U.S. Department of Commerce, filed 
electronically using IA ACCESS. An electronically filed document must 
be received successfully in its entirety by the Department's electronic 
records system, IA ACCESS, by 5:00 p.m. Eastern Standard Time, within 
30 days after the date of publication of this notice.\6\ Requests 
should contain the party's name, address, and telephone number; the 
number of participants; and a list of the issues to be discussed. If a 
request for a hearing is made, the Department intends to hold the 
hearing at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230, at a date, time and 
location to be determined. Parties will be notified of the date, time 
and location of any hearing.
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    \6\ See 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order, without the written consent of the Assistant Secretary for 
Import Administration.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act.

    Dated: March 7, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.



List of Topics Discussed in the Preliminary Decision Memorandum

    1. Scope Comments.
    2. Scope of the Investigation.
    3. Respondent Selection.
    4. Injury Test.
    5. Application of Countervailing Duty Law to Imports from the 
PRC.
    6. Subsidies Valuation.
    7. Use of Facts Otherwise Available and Adverse Inferences.
    8. Analysis of Programs.
    9. Verification.

[FR Doc. 2013-05929 Filed 3-13-13; 8:45 am]
BILLING CODE 3510-DS-P