[Federal Register Volume 81, Number 207 (Wednesday, October 26, 2016)]
[Notices]
[Pages 74393-74395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25901]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-970]


Multilayered Wood Flooring From the People's Republic of China: 
Rescission of Antidumping Duty New Shipper Reviews; 2014-2015

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Department) finds that the sale 
made by Dongtai Zhangshi Wood Industry Co., Ltd. (Zhangshi) and the 
sale made by Huzhou Muyun Wood Co., Ltd. (Muyun) are non-bona fide. 
Therefore, we are rescinding these new shipper reviews (NSRs).

DATES: Effective October 26, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Galantucci (202-482-2923) or 
Aleksandras Nakutis (202-482-3147), AD/CVD Operations, Office IV, 
Enforcement and Compliance, International Trade Administration, 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published its Preliminary Rescission of the NSRs of 
the antidumping duty order on multilayered wood flooring from the 
People's Republic of China (PRC) on May 31, 2016.\1\ We preliminarily 
found that the sale made by Zhangshi and the sale made by Muyun were 
not bona fide, and announced our preliminary intent to rescind the 
NSRs.
---------------------------------------------------------------------------

    \1\ See Multilayered Wood Flooring From the People's Republic of 
China: Preliminary Rescission of 2014-2015 Antidumping Duty New 
Shipper Reviews, 81 FR 34310 (May 31, 2016) (Preliminary 
Rescission); see also Memorandum from Robert Galantucci to Abdelali 
Elouaradia, ``Antidumping Duty New Shipper Review of Multilayered 
Wood Flooring from the People's Republic of China: Bona Fide Sale 
Analysis for Dongtai Zhangshi Wood Industry Co., Ltd.,'' dated May 
20, 2016 (Zhangshi Prelim Bona Fide Memo); Memorandum from 
Aleksandras Nakutis to Abdelali Elouaradia, ``Antidumping Duty New 
Shipper Review of Multilayered Wood Flooring from the People's 
Republic of China: Bona Fide Sale Analysis for Huzhou Muyun Wood 
Co., Ltd.,'' dated May 20, 2016 (Muyun Prelim Bona Fide Memo).
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
publication of the Preliminary Rescission, see the Issues and Decision 
Memorandum.\2\ The Issues and Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping Duty (AD) and Countervailing Duty (CVD) Centralized 
Electronic Service System (ACCESS). ACCESS is available to registered 
users at http://access.trade.gov and in the Central Records Unit, room 
B8024 of the main Department of Commerce building. In addition, a 
complete version of the Issues and Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/index.html. The signed 
Issues and Decision Memorandum and the electronic version of the Issues 
and Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \2\ See Memorandum from Christian Marsh to Ronald K. Lorentzen, 
``Multilayered Wood Flooring from the People's Republic of China: 
Issues and Decision Memorandum for the Final Rescission of the 2014-
2015 New Shipper Reviews'' issued concurrently with and hereby 
adopted by this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Order

    The merchandise covered by the order is multilayered wood flooring, 
which is

[[Page 74394]]

composed of an assembly of two or more layers or plies of wood veneers 
\3\ in combination with a core.\4\ Merchandise covered by this review 
is classifiable under subheadings 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; 4412.31.4075; 4412.31.4080; 4412.31.5125; 
4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.6000; 4412.31.9100; 
4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0565; 4412.32.0570; 
4412.32.2510; 4412.32.2520; 4412.32.2525; 4412.32.2530; 4412.32.3125; 
4412.32.3135; 4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185; 
4412.32.5600; 4412.39.1000; 4412.39.3000; 4412.39.4011; 4412.39.4012; 
4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039; 4412.39.4051; 
4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 
4412.39.5010; 4412.39.5030; 4412.39.5050; 4412.94.1030; 4412.94.1050; 
4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3131; 4412.94.3141; 
4412.94.3160; 4412.94.3171; 4412.94.4100; 4412.94.5100; 4412.94.6000; 
4412.94.7000; 4412.94.8000; 4412.94.9000; 4412.94.9500; 4412.99.0600; 
4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 
4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 
4412.99.4100; 4412.99.5100; 4412.99.5105; 4412.99.5115; 4412.99.5710; 
4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 
4418.71.2000; 4418.71.9000; 4418.72.2000; 4418.72.9500; and 
9801.00.2500 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheadings are provided for convenience 
and customs purposes, our written description of the scope of the order 
is dispositive.
---------------------------------------------------------------------------

    \3\ A ``veneer'' is a thin slice of wood, rotary cut, sliced or 
sawed from a log, bolt or flitch. Veneer is referred to as a ply 
when assembled.
    \4\ For a complete description of the scope of the order, see 
the Issues and Decision Memorandum.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case briefs by parties are addressed in 
the Issues and Decision Memorandum.\5\ A list of the issues which 
parties raised is attached to this notice as an Appendix.
---------------------------------------------------------------------------

    \5\ See Issues and Decision Memorandum. The Department has also 
issued business proprietary discussions of the comments raised, as 
many of the comments relied heavily on business proprietary 
information (BPI). See Memorandum to Abdelali Elouaradia, ``Final 
Results of the Antidumping Duty New Shipper Review--Multilayered 
Wood Flooring from the People's Republic of China: Business 
Proprietary Information Discussion of the Comments Regarding Dongtai 
Zhangshi Wood Industry Co., Ltd.,'' dated October 17, 2016 (BPI 
Discussion of Zhangshi's Comments); Memorandum to Abdelali 
Elouaradia, ``Final Results of the Antidumping Duty New Shipper 
Review--Multilayered Wood Flooring from the People's Republic of 
China: Business Proprietary Information Discussion of the Comments 
Regarding Huzhou Muyun Wood Co., Ltd.,'' dated October 17, 2016 (BPI 
Discussion of Muyun's Comments).
---------------------------------------------------------------------------

Bona Fide Analysis

    For the Preliminary Rescission, the Department analyzed the bona 
fides of Zhangshi's single sale and Muyun's single sale and 
preliminarily found that they were not bona fide sales.\6\ Based on the 
Department's complete analysis of all of the information and comments 
on the record of this review, the Department continues to find 
Zhangshi's and Muyun's sales not bona fide, and thus not reviewable 
pursuant to section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as 
amended (the Act). The Department reached this conclusion with respect 
to Zhangshi based on its consideration of the totality of 
circumstances, including: The sale price, the timing of the payment, a 
comparison between the payment and the invoiced amount, the parties' 
implementation of the terms of sale, statements regarding the customer/
importer's affiliations, and the single sale. The Department reached 
this conclusion with respect to Muyun based on its consideration of the 
totality of circumstances, including: The sale price, the timing of the 
payment, and the single sale. For a complete discussion, see the Issues 
and Decision Memorandum as well as the BPI Discussion of Zhangshi's 
Comments and the BPI Discussion of Muyun's Comments.
---------------------------------------------------------------------------

    \6\ See Zhangshi Prelim Bona Fide Memo; Muyun Prelim Bona Fide 
Memo.
---------------------------------------------------------------------------

Rescission of New Shipper Reviews

    For the foregoing reasons, the Department continues to find that 
Zhangshi's sale and Muyun's sale are not bona fide, and that the sales 
do not provide a reasonable or reliable basis for calculating a dumping 
margin. Accordingly, the Department is rescinding these NSRs.

Assessment

    As the Department is rescinding these NSRs, we are not making a 
determination as to whether or not Zhangshi or Muyun qualify for a 
separate rate. Therefore, these companies remain part of the PRC-
entity. The PRC-entity is not under review in the ongoing review 
covering the 2014-2015 period. Accordingly, these companies' entries 
will be assessed at rates equal to the cash deposit of, or bond for, 
estimated antidumping duties required on their merchandise at the time 
of entry, or withdrawal from warehouse, for consumption. The Department 
intends to issue liquidation instructions for any entries during the 
relevant period made by Zhangshi and Muyun 15 days after publication of 
this rescission notice.

Cash Deposit Requirements

    Effective upon publication of this notice of final rescission of 
the NSRs of Zhangshi and Muyun, the Department will instruct U.S. 
Customs and Border Protection to discontinue the option of posting a 
bond or security in lieu of a cash deposit for entries of subject 
merchandise from Zhangshi and Muyun.\7\ Because we did not review 
Zhangshi or Muyun, we will instruct CBP to continue to collect the cash 
deposit previously ordered which was the cash deposit rate for the PRC-
wide entity of 25.62 percent. These cash deposit requirements shall 
remain in effect until further notice.
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.214(e).
---------------------------------------------------------------------------

Administrative Protective Order

    This notice also serves as a 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, which continues 
to govern business proprietary information in these segments of the 
proceeding. 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 which is subject to sanction.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(2)(B) and 777(i) of the Act and 19 CFR 351.214.

    Dated: October 17, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--Issues and Decision Memorandum

Summary
Background
Scope of the Order

[[Page 74395]]

Discussion of the Issues
Comment 1: Whether the Department should revise its analysis with 
respect to Zhangshi's sales price and quantity.
Comment 2: Whether the Department should revise its analysis 
regarding Zhangshi's customer's resale of the subject merchandise.
Comment 3: Whether the Department should revise its analysis 
regarding Zhangshi's implementation of the terms of sale.
Comment 4: Whether the Department should revise its analysis 
regarding the circumstances surrounding Zhangshi's receipt of 
payment.
Comment 5: Whether the Department made procedural errors in 
conducting this review.
Comment 6: Whether Muyun's sale was resold at a profit.
Comment 7: Whether the timing of Muyun's sale was consistent with 
normal commercial practices.
Comment 8: Whether Muyun's sale price was based on normal commercial 
considerations.
Comment 9: Whether the totality of the circumstances indicates that 
Muyun's sale was bona fide.
Recommendation

[FR Doc. 2016-25901 Filed 10-25-16; 8:45 am]
 BILLING CODE 3510-DS-P