[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47883-47886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20609]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-051/C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty 
and Countervailing Duty Orders

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

SUMMARY: In response to a request from the Coalition for Fair Trade in 
Hardwood Plywood (the petitioner), the Department of Commerce 
(Commerce) is initiating an anti-circumvention inquiry pursuant to 
section 781(d) of the Tariff Act of 1930, as amended (the Act), to 
determine whether certain plywood with face and back veneers of radiata 
and/or agathis pine that is circumventing the antidumping duty (AD) and 
countervailing duty (CVD) orders on certain hardwood plywood products 
from the People's Republic of China (China).

DATES: Applicable September 21, 2018.

FOR FURTHER INFORMATION CONTACT: Amanda Brings or Ryan Mullen, AD/CVD 
Operations, Office V, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC, 20230; telephone: (202) 482-3927 or (202) 482-5260, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2018, Commerce published in the Federal Register AD 
and CVD Orders on certain hardwood plywood products from China.\1\ On 
June 26, 2018, the petitioner filed a request that Commerce conduct an 
anti-circumvention inquiry pursuant to section 781(d) of the Act with 
respect to certain plywood with a face and back veneer of radiata and/
or agathis pine that: (1) Has a Toxic Substances Control Act (TSCA) or 
California Air Resources Board (CARB) label certifying that it is 
compliant with TSCA/CARB requirements; and (2) is made with a resin, 
the majority of which is comprised of one or more of the following 
three product types--urea formaldehyde, polyvinyl acetate, and/or 
soy.\2\ Specifically, the petitioner alleges that the inquiry 
merchandise was not commercially available prior to the initiation of 
the investigations, and that the inquiry merchandise is being marketed 
by Chinese exporters to U.S. importers as a direct substitute for 
merchandise subject to the Orders.\3\ In the alternative to an anti-
circumvention inquiry pursuant to section 781(d) of the Act, the 
petitioner requests that Commerce initiate an anti-circumvention 
inquiry pursuant to section 781(c) of the Act and find that inquiry 
merchandise constitutes subject merchandise that has undergone minor 
alterations in order to circumvent the Orders.\4\
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    \1\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Amended Final Determination of Sales at Less Than 
Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018) 
and Certain Hardwood Plywood Products from the People's Republic of 
China: Countervailing Duty Order, 82 FR 513 (January 4, 2018) 
(collectively, Orders).
    \2\ See the petitioner's letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Request for Anti-
Circumvention Inquiry,'' dated June 26, 2018 (Petitioner's Request), 
at 6-8.
    \3\ Id.
    \4\ Id. at 33.
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    On July 16, 2018, we received comments objecting to the allegations 
made by the petitioner from U.S. Importers,\5\ Chinese Exporters,\6\ 
IKEA,\7\ and Shelter Forest.\8\ On July 30, 2018, we received rebuttal 
comments from the petitioner \9\ and CNFPIA.10 11
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    \5\ See East Coast Lumber Co., Elberta Crate and Box Co., 
Holland Southwest International, Inc., Laminate Technologies, Inc., 
Liberty Woods International, Inc., Masterbrand Cabinets, Inc., 
McCorry & Company Limited, MJB Wood Group, Inc., Northwest 
Hardwoods, Inc., Patriot Timber Products Inc., Sierra Forest 
Products, Inc., Taraca Pacific, Inc. and USPLY LLC (collectively, 
U.S. Importers) letter, ``Certain Hardwood Plywood Products from the 
People's Republic of China: Objection to Second Request for Anti-
Circumvention Inquiry,'' dated July 16, 2018.
    \6\ See Far East American, Inc., Fei County Hongsheng Wood 
Industry Co., Ltd, Feixian Dongqin Woodwork Co., Ltd, Feixian 
Longteng Wood Co., Ltd., Feixian Tanyi Youcheng Jiafu Plywood 
Factory, Grand Focus Intl. Ltd., Jiangsu Hanbao Building Material 
Co., Ltd, Lin Yi Huasheng Yongbin Wood Co., Lin Yi Tian He Wooden 
Industry Co., Ltd, Linyi Celtic Wood Co., Ltd, Linyi City Lanshan 
District Fubo Wood Factory, Linyi City Lanshan District Fuerda Wood 
Factory, Linyi City Lanshan District Wanmei Board Factory, Linyi 
City Shenrui International Trade Co., Ltd., Linyi Dongfang Bayley 
Wood Co. Ltd., Linyi Dongfangjuxin Wood Co. Ltd., Linyi Evergreen 
Wood Co., Ltd., Linyi Glary Plywood Co. Ltd., Linyi Hengsheng Wood 
Industry Co. Ltd., Linyi Jiahe Wood Industry Co., Ltd., Linyi Linhai 
Wooden Industry Co., Ltd., Linyi Qianfeng Wood Factory, Linyi 
Sanfortune Wood Co. Ltd Linyi Tuopu Zhixin Wooden Industry Co., 
Ltd., Shanghai Futuwood Trading Company Ltd., Sumec International 
Technology Co., Ltd., Suzhou Oriental Dragon Import And Export Corp. 
Ltd., Xu Zhou Changcheng Wood Co., Ltd., Xuzhou Camry Wood Co., 
Ltd., Xuzhou Golden River Wood Co., Ltd., and Xuzhou Jiangyang Wood 
Industries Co., Ltd., Xuzhou Longyuan Wood Industry Co., Ltd. 
(collectively, Chinese Exporters) letter, ``Hardwood Plywood from 
the People's Republic of China Comments In Opposition to Request for 
Anti-Circumvention Inquiry: Certain Softwood Species,'' dated July 
16, 2018.
    \7\ See IKEA Supply AG (IKEA) letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Comments Related to 
Petitioner's Second Anti-Circumvention Inquiry Request,'' dated July 
16, 2018.
    \8\ See Shelter Forest International Acquisition, Inc., Xuzhou 
Shelter Import & Export Co., Ltd., and Shandong Shelter Forest 
Products Co., Ltd. (collectively, Shelter Forest) letter ``Comment 
on Certain U.S. Producers' Request for Anti-Circumvention Inquiry 
Certain Hardwood Plywood Products from China,'' dated July 16, 2018.
    \9\ See China National Forest Products Industry Association and 
its members Dangshan County Gui Yang Wood Industry Co., Ltd., 
Shandong Dongfang Bayley Wood Co., Ltd., and Pingyi Jinniu Wood Co., 
Ltd., (CNFPIA) letter, ``Hardwood Plywood Products from the People's 
Republic of China: Rebuttal Comments in Opposition to Petitioner's 
Second Anti-Circumvention Inquiry Request,'' dated July 30, 2018.
    \10\ See the petitioner letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Rebuttal Comments,'' 
dated July 30, 2018.
    \11\ After consideration of the comments filed by interested 
parties in opposition to the initiation of the petitioner's 
circumvention allegation, Commerce will address the arguments and 
factual information presented in the comments during the course of 
this anti-circumvention inquiry.
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Scope of the Orders

    The merchandise covered by the Orders is hardwood and decorative

[[Page 47884]]

plywood, and certain veneered panels as described below. For purposes 
of the Orders, hardwood and decorative plywood is defined as a 
generally flat, multilayered plywood or other veneered panel, 
consisting of two or more layers or plies of wood veneers and a core, 
with the face and/or back veneer made of non-coniferous wood (hardwood) 
or bamboo. The veneers, along with the core may be glued or otherwise 
bonded together. Hardwood and decorative plywood may include products 
that meet the American National Standard for Hardwood and Decorative 
Plywood, ANSI/HPVA HP1-2016 (including any revisions to that standard).
    For purposes of the Orders a ``veneer'' is a slice of wood 
regardless of thickness which is cut, sliced or sawed from a log, bolt, 
or flitch. The face and back veneers are the outermost veneer of wood 
on either side of the core irrespective of additional surface coatings 
or covers as described below.
    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 hardwood, softwood, particleboard, or 
medium density fiberboard (MDF).
    All hardwood plywood is included within the scope of the Orders 
regardless of whether or not the face and/or back veneers are surface 
coated or covered and whether or not such surface coating(s) or covers 
obscures the grain, textures, or markings of the wood. Examples of 
surface coatings and covers include, but are not limited to: Ultra 
violet light cured polyurethanes; oil or oil-modified or water based 
polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; 
paints; stains; paper; aluminum; high pressure laminate; MDF; medium 
density overlay (MDO); and phenolic film. Additionally, the face veneer 
of hardwood plywood may be sanded; smoothed or given a ``distressed'' 
appearance through such methods as hand-scraping or wire brushing. All 
hardwood plywood is included within the scope even if it is trimmed; 
cut-to-size; notched; punched; drilled; or has underwent other forms of 
minor processing. All hardwood and decorative plywood is included 
within the scope of the Orders, 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).
    Subject merchandise also includes hardwood and decorative plywood 
that has been further processed in a third country, including but not 
limited to trimming, cutting, notching, punching, drilling, or any 
other processing that would not otherwise remove the merchandise from 
the scope of the order if performed in the country of manufacture of 
the in-scope product. The scope of the Orders excludes the following 
items: (1) Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured 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), and which has 
both a face and a back veneer of coniferous wood; (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. See Multilayered 
Wood Flooring from the People's Republic of China, 76 FR 76690 
(December 8, 2011) (amended final determination of sales at less than 
fair value and antidumping duty order), and Multilayered Wood Flooring 
from the People's Republic of China, 76 FR 76693 (December 8, 2011) 
(countervailing duty order), as amended by Multilayered Wood Flooring 
from the People's Republic of China: Amended Antidumping and 
Countervailing Duty Orders, 77 FR 5484 (February 3, 2012); (4) 
multilayered wood flooring with a face veneer of bamboo or composed 
entirely of bamboo; (5) plywood which has a shape or design other than 
a flat panel, with the exception of any minor processing described 
above; (6) products made entirely from bamboo and adhesives (also known 
as ``solid bamboo''); and (7) Phenolic Film Faced Plyform (PFF), also 
known as Phenolic Surface Film Plywood (PSF), defined as a panel with 
an ``Exterior'' or ``Exposure 1'' bond classification as is defined by 
The Engineered Wood Association, having an opaque phenolic film layer 
with a weight equal to or greater than 90g/m3 permanently bonded on 
both the face and back veneers and an opaque, moisture resistant 
coating applied to the edges.
    Excluded from the scope of the Orders are wooden furniture goods 
that, at the time of importation, are fully assembled and are ready for 
their intended uses. Also excluded from the scope of the Orders is 
``ready to assemble'' (RTA) furniture. RTA furniture is defined as (A) 
furniture packaged for sale for ultimate purchase by an end-user that, 
at the time of importation, includes (1) all wooden components (in 
finished form) required to assemble a finished unit of furniture, (2) 
all accessory parts (e.g., screws, washers, dowels, nails, handles, 
knobs, adhesive glues) required to assemble a finished unit of 
furniture, and 3) instructions providing guidance on the assembly of a 
finished unit of furniture; (B) unassembled bathroom vanity cabinets, 
having a space for one or more sinks, that are imported with all 
unassembled hardwood and hardwood plywood components that have been 
cut-to-final dimensional component shape/size, painted or stained prior 
to importation, and stacked within a singled shipping package, except 
for furniture feet which may be packed and shipped separately; or (C) 
unassembled bathroom vanity linen closets that are imported with all 
unassembled hardwood and hardwood plywood components that have been 
cut-to-final dimensional shape/size, painted or stained prior to 
importation, and stacked within a single shipping package, except for 
furniture feet which may be packed and shipped separately.
    Excluded from the scope of the Orders are kitchen cabinets that, at 
the time of importation, are fully assembled and are ready for their 
intended uses. Also excluded from the scope of the Orders are RTA 
kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets 
packaged for sale for ultimate purchase by an end-user that, at the 
time of importation, includes (1) all wooden components (in finished 
form) required to assemble a finished unit of cabinetry, (2) all 
accessory parts (e.g., screws, washers, dowels, nails, handles, knobs, 
hooks, adhesive glues) required to assemble a finished unit of 
cabinetry, and (3) instructions providing guidance on the assembly of a 
finished unit of cabinetry.
    Excluded from the scope of the Orders are finished table tops, 
which are table tops imported in finished form with pre-cut or drilled 
openings to attach the underframe or legs. The table tops are ready for 
use at the time of import and require no further finishing or 
processing.
    Excluded from the scope of the Orders are finished countertops that 
are imported in finished form and require no further finishing or 
manufacturing.
    Excluded from the scope of the Orders are laminated veneer lumber 
door and window components with (1) a maximum width of 44 millimeters, 
a

[[Page 47885]]

thickness from 30 millimeters to 72 millimeters, and a length of less 
than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a 
modulus of elasticity of 1,500,000 pounds per square inch or higher, 
(4) finger-jointed or lap-jointed core veneer with all layers oriented 
so that the grain is running parallel or with no more than 3 dispersed 
layers of veneer oriented with the grain running perpendicular to the 
other layers; and (5) top layer machined with a curved edge and one or 
more profile channels throughout.
    Imports of hardwood plywood are primarily entered under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4412.10.0500;4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 
4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 
4412.31.4075; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4160; 
4412.31.4180; 4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 
4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5265; 4412.31.5275; 
4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 
4412.32.0540; 4412.32.0565; 4412.32.0570; 4412.32.0620; 4412.32.0640; 
4412.32.0670; 4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.2610; 
4412.32.2630; 4412.32.3125; 4412.32.3135; 4412.32.3155; 4412.32.3165; 
4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 
4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.3235; 4412.32.3255; 
4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5700; 4412.94.1030; 
4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3141; 
4412.94.3161; 4412.94.3175; 4412.94.4100; 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; 
4412.99.5115; and 4412.99.5710.
    Imports of hardwood plywood may also enter under HTSUS subheadings 
4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.10.9000; 
4412.94.5100; 4412.94.9500; and 4412.99.9500. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of the Orders is dispositive.

Merchandise Subject to the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers plywood with face and back 
veneers made of radiata and/or agathis pine that: (1) Has a TSCA or 
CARB label certifying that it is compliant with TSCA/CARB requirements; 
and (2) is made with a resin, the majority of which is comprised of one 
or more of the following three product types--urea formaldehyde, 
polyvinyl acetate, and/or soy.

Request for a Later-Developed Merchandise Anti-Circumvention Inquiry

    Section 781(d)(1) of the Act provides that Commerce may initiate an 
anti-circumvention inquiry to determine whether merchandise developed 
after an AD or CVD investigation (later-developed merchandise) is 
within the scope of the order(s). In conducting later-developed 
merchandise anti-circumvention inquiries under section 781(d)(1) of the 
Act, Commerce will evaluate whether the general physical 
characteristics of the merchandise under consideration are the same as 
subject merchandise covered by the order, whether the expectations of 
the ultimate purchasers of the merchandise under consideration are no 
different than the expectations of the ultimate purchases of subject 
merchandise, whether the ultimate use of the subject merchandise and 
the merchandise under consideration are the same, whether the channels 
of trade of both products are the same, whether there are any 
differences in the advertisement and display of both products,\12\ and 
if the merchandise under consideration was commercially available at 
the time of the investigation, i.e., the product was present in the 
commercial market or the product was tested and ready for commercial 
production.\13\
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    \12\ See section 781(d)(1) of the Act.
    \13\ See Later-Developed Merchandise Anticircumvention Inquiry 
of the Antidumping Duty Order on Petroleum Wax Candles from the 
People's Republic of China: Affirmative Preliminary Determination of 
Circumvention of the Antidumping Duty Order, 71 FR 32033, 32035 
(June 2, 2006) unchanged in Later-Developed Merchandise 
Anticircumvention Inquiry of the Antidumping Duty Order on Petroleum 
Wax Candles from the People's Republic of China: Affirmative Final 
Determination of Circumvention of the Antidumping Duty Order, 71 FR 
59075 (October 6, 2006).
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A. Physical Characteristics

    According to the petitioner, Chinese exporters who used to offer 
subject merchandise with at least one side, either face or back veneer, 
made of hardwood instead are now offering plywood with both sides made 
with radiata pine and/or agathis pine, with the same interior and 
decorative uses as subject merchandise. The petitioner further argues 
that given that the merchandise is being offered as a direct substitute 
for subject merchandise, it is, therefore, interchangeable and serve 
the same end-use.\14\ The petitioner states that inquiry merchandise 
and subject merchandise are manufactured to the same dimensions, and 
that the same equipment used to peel radiata and agathis veneers can be 
used to peel the veneers used for subject merchandise.\15\ The 
petitioner claims that the inquiry merchandise and the subject 
merchandise will likely have the same TSCA/CARB label requirements and 
use similar glue types.\16\
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    \14\ See Petitioner's Request at 26-27.
    \15\ Id. at 28.
    \16\ Id.
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B. Advertisement, Display, and Channel of Trade

    The petitioner claims that the channel of trade for merchandise 
related to the circumvention inquiry and merchandise subject to the 
Orders is the same, as the same Chinese producers are selling and 
marketing the product to the same U.S. importers who previously bought 
subject merchandise before the investigations. Online advertisement 
also describes the inquiry and subject merchandise in the same 
language, acknowledging that radiata pine plywood is ``similar'' to 
birch and oak plywood.\17\
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    \17\ Id. at 31.
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C. Commercial Availability

    While the petitioner acknowledges that plywood with either a face 
or back veneer of radiata pine and/or agathis pine was commercially 
available prior to the investigations, they claim that plywood with 
both a face and back veneer of radiata and/or agathis pine that also: 
(1) Has a TSCA or CARB label certifying that it is compliant with TSCA/
CARB requirements; and (2) is made with a resin, the majority of which 
is comprised of one or more of the following three product types--urea 
formaldehyde, polyvinyl acetate, and/or soy) was not commercially 
available.\18\
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    \18\ Id. at 22.
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    The petitioner asserts that multiple members of the Coalition for 
Fair Trade in Hardwood Plywood and their sales representatives, as well 
as the President of the Decorative Hardwoods Association (formerly the 
Hardwood Plywood and Veneer Association) all

[[Page 47886]]

confirm that they had not heard of, or seen, the inquiry merchandise 
prior to initiation of the investigations.\19\ The petitioner claims 
that a comparison between sales and marketing literature issued prior 
to the initiation of the investigations and sales and marketing 
literature issued after the initiation of the investigations 
demonstrates that the inquiry merchandise was not commercially 
available prior to the initiation of the investigations.\20\
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    \19\ Id. at 23.
    \20\ Id. at 24.
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D. Expectations of Ultimate Purchasers

    The petitioner argues that the expectations of the ultimate 
purchasers of subject merchandise and inquiry merchandise are the same. 
The petitioner states that subject merchandise is generally chosen for 
its decorative and aesthetic qualities and is used in products such as 
furniture, kitchen cabinets, architectural woodwork, wall paneling, and 
other similar products, and that the distinguishing characteristic of 
subject merchandise is that it is primarily used in interior and non-
structural applications.\21\ The petitioner claims that online offers 
of inquiry merchandise (highlighting the same characteristics as 
subject merchandise and offering inquiry merchandise for the same 
applications as subject merchandise) confirms that the expectations of 
the ultimate purchasers of inquiry merchandise and subject merchandise 
are the same.\22\ The petitioner argues that any plywood used in 
interior/decorative applications must be labeled as TSCA/CARB 
compliant, and that the ultimate purchasers would expect that both 
subject merchandise and inquiry merchandise would have certifying 
labels that the plywood is compliant with TSCA/CARB requirements.\23\
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    \21\ Id. at 28-30.
    \22\ Id.
    \23\ Id.
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E. Ultimate Use

    The petitioner asserts that the ultimate use of both the subject 
merchandise and inquiry merchandise is identical. Further, they claim 
that inquiry merchandise is offered in the same dimensions as subject 
merchandise, as well as both being offered for the same decorative or 
interior purposes, such as cabinetry, furniture, and other 
functions.\24\
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    \24\ Id. at 30.
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F. Channels of Trade

    The petitioner argues that the channels of trade for inquiry 
merchandise and subject merchandise are the same, because the same 
Chinese producers and exporters and domestic importers who previously 
offered subject merchandise are now offering inquiry merchandise as a 
direct alternative to the same customers.\25\ The petitioner also 
states that online offers describe inquiry merchandise and subject 
merchandise with hardwood face and back veneers in the same manner.\26\ 
The petitioner explains that big-box retailers include inquiry 
merchandise under the ``Hardwood Plywood'' category on their 
websites.\27\
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    \25\ Id. at 31.
    \26\ Id.
    \27\ Id.
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G. Advertisement and Display

    The petitioner argues that inquiry merchandise is advertised and 
displayed in the same manner as subject merchandise, because Chinese 
producers and exporters and domestic importers are offering inquiry 
merchandise to the same customers who used to purchase subject 
merchandise with at least one side made of hardwood, as a direct 
alternative, and inquiry merchandise is being offered for the same 
applications as subject merchandise.\28\ The petitioner claims that 
inquiry merchandise is described in the same manner as subject 
merchandise in advertisements.\29\
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    \28\ Id. at 32.
    \29\ Id.
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Conclusion

    Based on the information provided by the petitioner, Commerce finds 
there is sufficient basis to initiate an anti-circumvention inquiry, 
pursuant to section 781(d) of the Act.\30\ Commerce will determine 
whether the merchandise subject to the inquiry (identified in the 
``Merchandise Subject to the Anti-Circumvention Inquiry'' section 
above) represents a later-developed product that can be considered 
subject to the Orders. Commerce will not order the suspension of 
liquidation of entries of any additional merchandise at this time. 
However, in accordance with 19 CFR 351.225(l)(2), if Commerce issues a 
preliminary affirmative determination, we will then instruct U.S. 
Customs and Border Protection to suspend liquidation and require a cash 
deposit of estimated duties, at the applicable rate, for each 
unliquidated entry of the merchandise at issue, entered or withdrawn 
from warehouse for consumption on or after the date of initiation of 
the inquiry. In the event we issue a preliminary affirmative 
determination of circumvention pursuant to section 781(d) of the act 
(later-developed merchandise), we intend to notify the International 
Trade Commission, in accordance with section 781(e)(1) of the Act and 
19 CFR 351.225(f)(7)(i)(C), if applicable. Commerce will establish a 
schedule for questionnaires and comments on the issues. In connection 
with this anti-circumvention inquiry, in order to determine the extent 
to which a country-wide finding applicable to all exports might be 
warranted, as alleged by the petitioner, Commerce will issue 
questionnaires to potential Chinese producers or exporters of inquiry 
merchandise to the United States. Companies failing to respond 
completely and timely to Commerce's questionnaire may be deemed 
uncooperative and an adverse inference may be applied in determining 
whether such companies are circumventing the Orders. See section 776 of 
the Act. Commerce intends to issue its final determination within 300 
days of this initiation, in accordance with section 781(f) of the Act.
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    \30\ Because we have determined to initiate an anti-
circumvention inquiry pursuant to section 781(d) of the Act, we do 
not address the petitioner's request to alternatively initiate an 
anti-circumvention inquiry pursuant to section 781(c) of the Act.
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    This notice is published in accordance with section 781(d) of the 
Act and 19 CFR 351.225(j).

    Dated: September 18, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-20609 Filed 9-20-18; 8:45 am]
 BILLING CODE 3510-DS-P