[Federal Register Volume 78, Number 184 (Monday, September 23, 2013)]
[Notices]
[Pages 58283-58285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23077]



[[Page 58283]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-987]


Hardwood and Decorative Plywood from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination; 2011

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

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

DATES: Effective Date: September 23, 2013.

FOR FURTHER INFORMATION CONTACT: David Lindgren or Toni Page, 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 or (202) 482-1398, 
respectively.

Background

    The petitioners in this investigation are the Coalition for Fair 
Trade of Hardwood Plywood (Petitioners). In addition to the Government 
of the PRC, the respondents in this investigation are: (1) Linyi City 
Dongfang Jinxin Economic & Trade Co., Ltd. (Dongfang); (2) Linyi San 
Fortune Wood Co., Ltd. (San Fortune); and (3) Shanghai Senda Fancywood 
Inc. a/k/a Shanghai Senda Fancywood Industry Co. (Senda), along with 
their affiliated companies.

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2011, through December 31, 2011.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination on March 14, 2013,\1\ are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, ``Issues and Decision Memorandum for the Final 
Affirmative Determination in the Countervailing Duty Investigation of 
Hardwood and Decorative Plywood From the People's Republic of China'' 
(Decision Memorandum), which is dated concurrently with and hereby 
adopted by this notice.
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    \1\ See 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, 78 FR 16250 (March 14, 2013) (Preliminary 
Determination), and the accompanying Preliminary Decision 
Memorandum.
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Scope Comments

    In the Preliminary Determination for the companion antidumping duty 
investigation, the Department invited interested parties to file briefs 
on scope related matters.\2\ Between May 20, and June 17, 2013, 
interested parties filed briefs and rebuttal briefs related to the 
scope of the investigation. On May 31, 2013, interested parties 
requested a hearing for scope related issues.\3\ The Department held a 
public hearing for scope issues on June 18, 2013.\4\ Based on the 
comments received from interested parties, we have updated the scope of 
the investigation for the final determination.\5\ In addition, we have 
addressed all scope comments in the Decision Memorandum.
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    \2\ See Hardwood and Decorative Plywood From the People's 
Republic of China: Antidumping Duty Investigation, 78 FR 25946, 
25952 (May 3, 2013).
    \3\ See Letter to Acting Secretary Rebecca Blank Re: Request for 
Hearing on Scope-Related Issues Hardwood and Decorative Plywood From 
China (May 31, 2013).
    \4\ See Scope Issue for the Antidumping Duty and Countervailing 
Duty Investigations on Hardwood Decorative Plywood From the People's 
Republic of China: Case Nos. A-570-986 and C-570-987 (Hearing 
Transcript) (June 26, 2013).
    \5\ See Appendix I.
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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. See Appendix I for a complete description of the scope 
of this investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Decision Memorandum. A list of subsidy programs and 
the issues that parties have raised, and to which we responded in the 
Decision Memorandum, is attached to this notice as Appendix II.
    The Decision Memorandum is a public document and is on file 
electronically via IA ACCESS. IA ACCESS is available to registered 
users at http://iaaccess.trade.gov and in the Central Records Unit, 
room 7046 of the main Department of Commerce building. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the Internet at http://www.trade.gov/ia/. The signed and the electronic 
versions of this memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Tariff Act of 
1930 (the Act), we have calculated rates for Dongfang, San Fortune and 
Senda. We determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                               Subsidy
                          Company                                rate
                                                              (percent)
------------------------------------------------------------------------
Linyi City Dongfang Jinxin Economic & Trade Co., Ltd.......         (**)
Linyi San Fortune Wood Co., Ltd............................         (**)
Shanghai Senda Fancywood Inc. a/k/a Shanghai Senda                  (**)
 Fancywood Industry Co.....................................
Asia Dekor (Heyuan) Woods Co., Ltd *.......................        27.16
Baishan Huafeng Wooden Product Co *........................        27.16
China Friend Limited *.....................................        27.16
Feixian Guangyuan Plywood Factory *........................        27.16
Feixian Xinfeng Wood Co Ltd *..............................        27.16
Huzhou Chen Hang Wood Co. Ltd *............................        27.16
Jiafeng Wood (Suzhou) Co., Ltd *...........................        27.16

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Linyi Guoxin Wood Co., Ltd *...............................        27.16
Linyi Huayuan Wood Co., Ltd *..............................        27.16
Linyi Sengong Wood Co., Ltd *..............................        27.16
Lizhong Wood Industry Limited Co *.........................        27.16
Shandong Lichen Group Co., Ltd *...........................        27.16
Wellmade Floor Industries Co. Ltd *........................        27.16
Zhejiang Dadongwu GreenHome Wood Co *......................        27.16
Zhejiang Desheng Wood Industry Co., Ltd *..................        27.16
All Others.................................................        13.58
------------------------------------------------------------------------
* Non-cooperative company to which an adverse facts available (AFA) rate
  is being applied. See the Issues and Decision Memorandum.
** de minimis.

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from the PRC (with the exception of entries made by 
Dongfang, San Fortune, and Senda) that were entered, or withdrawn from 
warehouse, for consumption on or after March 14, 2013, the date of the 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we issued instructions to 
CBP to discontinue the suspension of liquidation for countervailing 
duty (CVD) purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after July 12, 2013, but to continue the suspension of 
liquidation of all entries from March 14, 2013, through July 11, 2013. 
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.
    If the International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation for the relevant companies 
under section 706(a) of the Act, and we will require a cash deposit of 
estimated CVDs for such entries of merchandise in the amounts indicated 
above. If the ITC determines that material injury, or threat of 
material injury, does not exist, this proceeding will be terminated and 
all estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not individually investigated, we apply an ``all-others'' 
rate, which is normally calculated by weight averaging the subsidy 
rates of the individually investigated companies. Under section 
705(c)(5)(i) of the Act, the ``all-others'' rate excludes zero and de 
minimis rates and rates based entirely on facts available for the 
exporters and producers individually investigated. Where the rates for 
the individually investigated companies are all zero or de minimis or 
based on facts available, section 705(c)(5)(A)(ii) of the Act instructs 
the Department to establish an ``all-others'' rate using ``any 
reasonable method.''
    For purposes of this final determination, we find that a reasonable 
method for establishing the ``all-others'' rate is to calculate a 
simple average margin based on the rates assigned to the three 
mandatory respondents (zero percent) and the AFA rate assigned to the 
non-responsive companies (27.16 percent). We have limited the number of 
AFA rates used in the average, based on failures to respond to the 
quantity and value (Q&V) questionnaires, to the same number of 
companies that we determined we could reasonably examine in this 
investigation, which was three. Accordingly, we determined the ``all-
others'' rate by taking the simple average of the rates calculated for 
the three selected mandatory respondents and three AFA rates for 
companies that failed to respond to the Q&V questionnaire. Thus, we are 
assigning an ``all-others'' rate of 13.58 percent.\6\
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    \6\ See Decision Memorandum at ``All-Others Rate''.
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ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination.

Return or Destruction of Proprietary Information

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and terms of an APO is a violation that 
is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: September 16, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I

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 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

[[Page 58285]]

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 in a permanent manner. 
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, 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 a permanent and opaque surface coating which 
obscures the grain, texture or markings of the wood, are not 
included within the scope of this investigation. Examples of 
permanently affixed 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, PS 2-09, or PS 2-10 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), and additionally, multilayered wood flooring with a face 
veneer of bamboo or composed entirely of bamboo; (4) plywood which 
has a shape or design other than a flat panel; (5) products made 
entirely from bamboo and adhesives (also known as ``solid bamboo'').
    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; 4412.99.9000; 4412.10.9000; 
4412.31.4080; 4412.32.0570; 4412.32.2530; 4412.94.5100; 
4412.94.9500; 4412.99.5115; and 4412.99.9500.
    While HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the subject merchandise as set 
forth herein is dispositive.

Appendix II

Issues and Decision Memorandum

I. Summary
II. Background
III. Subsidy Valuation Information
    A. Period of Investigation
    B. Allocation Period
    C. Attribution of Subsidies
    D. Denominators
IV. Use of Facts Otherwise Available and Adverse Inferences
    A. Application of AFA: Non-Cooperative Companies
    B. Application of AFA: Provision of Electricity for Less Than 
Adequate Remuneration
V. Analysis of Programs
    A. Programs Determined To Be Countervailable
    1. Provision of Electricity for LTAR
    B. Programs Determined Not To Be Used or Not to Confer a Benefit 
During the POI
    1. Tax Exemptions and Reductions for ``Productive'' Foreign 
Invested Enterprises (FIEs)
    2. Provincial Tax Exemptions and Reductions for ``Productive'' 
FIEs
    3. Tax Reduction for FIEs in Designated Geographic Locations
    4. Value Added Tax and Tariff Exemptions on Imported Equipment
VI. Analysis of Comments
    Comment 1: Application of Adverse Facts Available
    Comment 2: ``All-Others'' Rate
    Comment 3: Provision of Electricity
    Comment 4: Initiation of the Investigation was Unlawful
    Comment 5A: Solid Bamboo Products
    Comment 5B: Bamboo Flooring
    Comment 5C: Structural Plywood
    Comment 5D: Very Thin Plywood
    Comment 5E: Other Scope Issues
    Comment 5F: Plywood with a Surface Other Than Wood
VII. Recommendation
[FR Doc. 2013-23077 Filed 9-20-13; 8:45 am]
BILLING CODE 3510-DS-P