[Federal Register Volume 84, Number 63 (Tuesday, April 2, 2019)]
[Notices]
[Pages 12587-12592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06388]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-106]


Wooden Cabinets and Vanities and Components Thereof From the 
People's Republic of China: Initiation of Less-Than-Fair-Value 
Investigation

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

DATES: Applicable March 26, 2019.

FOR FURTHER INFORMATION CONTACT: Amanda Brings at (202) 482-3927 or 
Rachel Greenberg at (202) 482-0652, AD/CVD Operations, Office V, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On March 6, 2019, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) Petition concerning imports of wooden 
cabinets and vanities and components thereof (wooden cabinets and 
vanities) from the People's Republic of China (China), filed in proper 
form on behalf of the American Kitchen Cabinet Alliance (the 
petitioner).\1\ The AD Petition was accompanied by a countervailing 
duty (CVD) Petition concerning imports of wooden cabinets and vanities 
from China.
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Wooden Cabinets and 
Vanities from the People's Republic of China,'' dated March 6, 2019 
(the Petition); see also Memorandum, ``Phone Call with Counsel to 
the Petitioner,'' dated March 26, 2019.
---------------------------------------------------------------------------

    Between March 11 and 20, 2019, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\2\ The 
petitioner filed responses to these requests between March 12 and 22, 
2019.\3\
---------------------------------------------------------------------------

    \2\ See Commerce's Letters, ``Re: Petitions for the Imposition 
of Antidumping and Countervailing Duties on Imports of Wooden 
Cabinets and Vanities from the People's Republic of China: 
Supplemental Questions,'' dated March 11, 2019 (General Issues 
Supplemental Questionnaire) and ``Re: Petitions for the Imposition 
of Antidumping and Countervailing Duties on Imports of Wooden 
Cabinets and Vanities from the People's Republic of China: 
Supplemental Questions,'' dated March 11, 2019 (AD Supplemental 
Questionnaire). See also Memorandum, ``Phone Call with Counsel to 
the Petitioner,'' dated March 18, 2019 (March 18, 2019 Memorandum) 
and Memorandum, ``Phone Call with U.S. Customs and Border Protection 
Officials and Counsel to the Petitioner,'' dated March 20, 2019 
(March 20, 2019 Memorandum).
    \3\ See Petitioner's Letter, ``Wooden Cabinets and Vanities from 
the People's Republic of China: Petitioner's Responses to 
Supplemental Questions Regarding Petition Volume I Injury,'' dated 
March 12, 2019 (General Issues Supplement); Petitioner's Letter, 
``Wooden Cabinets and Vanities from the People's Republic of China: 
Petitioner's Responses to Supplemental Questions Regarding Petition 
Volume II China AD,'' dated March 12, 2019 (AD Supplement); 
Petitioner's Letter, ``Wooden Cabinets and Vanities from the 
People's Republic of China: Second Supplemental Responses--Volume I 
Injury,'' dated March 20, 2019 (Second General Issues Supplement); 
Petitioner's Letter, ``Wooden Cabinets and Vanities from the 
People's Republic of China: Second Supplemental Responses--Volume II 
Injury,'' dated March 20, 2019 (Second AD Supplement); and 
Petitioner's Letter, ``Wooden Cabinets and Vanities from the 
People's Republic of China: Petitioner's Response to Department of 
Commerce's March 20, 2019 Memorandum,'' dated March 22, 2019 (Scope 
Clarification).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of wooden 
cabinets and vanities from China are being, or are likely to be, sold 
in the United States at less-than-fair value (LTFV) within the meaning 
of section 731 of the Act, and that such imports are materially 
injuring, or threatening material injury to, the domestic industry 
producing wooden cabinets and vanities in the United States. Consistent 
with section 732(b)(1) of the Act, the Petition is accompanied by 
information reasonably available to the petitioner supporting its 
allegations.
    Commerce finds that the petitioner filed this Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(E) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested AD investigation.\4\
---------------------------------------------------------------------------

    \4\ See ``Antidumping Duty Investigation Initiation Checklist: 
Wooden Cabinets and Vanities from the People's Republic of China,'' 
(AD Initiation Checklist). This checklist is dated concurrently 
with, and hereby adopted by, this notice and on file electronically 
via ACCESS. Access to documents filed via ACCESS is also available 
in the Central Records Unit, Room B8024 of the main Department of 
Commerce building.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on March 6, 2019, the period of 
investigation (POI) is July 1, 2018, through December 31, 2018.

Scope of the Investigation

    The merchandise covered by this investigation consists of wooden 
cabinets and vanities from China. For a full description of the scope 
of this investigation, see the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we contacted the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate

[[Page 12588]]

reflection of the products for which the domestic industry is seeking 
relief.\5\ As a result, the scope of the Petition was modified to 
clarify the description of the merchandise covered by the Petition. The 
description of the merchandise covered by this investigation, as 
described in the Appendix to this notice, reflects these 
clarifications.
---------------------------------------------------------------------------

    \5\ See General Issues Supplement; see also March 18, 2019 
Memorandum, March 20, 2019 Memorandum, and Scope Clarification; see 
also Memorandum, ``Phone Call with Counsel to the Petitioner,'' 
dated March 21, 2019.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\6\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\7\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on April 15, 2019, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on April 25, 2019, which is 
10 calendar days from the initial comment deadline.\8\
---------------------------------------------------------------------------

    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \7\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \8\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must also be filed 
on the record of the concurrent CVD investigation.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\9\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
---------------------------------------------------------------------------

    \9\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of wooden cabinets and 
vanities to be reported in response to Commerce's AD questionnaire. 
This information will be used to identify the key physical 
characteristics of the subject merchandise in order to report the 
relevant factors of production (FOPs) accurately, as well as to develop 
appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
comments must be filed by 5:00 p.m. ET on April 15, 2019, which is 20 
calendar days from the signature date of this notice.\10\ Any rebuttal 
comments must be filed by 5:00 p.m. ET on April 25, 2019. All comments 
and submissions to Commerce must be filed electronically using ACCESS, 
as explained above, on the record of this AD investigation.
---------------------------------------------------------------------------

    \10\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\11\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\12\
---------------------------------------------------------------------------

    \11\ See section 771(10) of the Act.
    \12\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the Petition.\13\ Based on our analysis of the information submitted 
on the record, we have determined that wooden cabinets and vanities, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\14\
---------------------------------------------------------------------------

    \13\ See Volume I of the Petition, at 18-20; see also General 
Issues Supplement, at 6-7.
    \14\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
AD Initiation Checklist, at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Wooden Cabinets and Vanities from the People's Republic of 
China (Attachment II).

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

[[Page 12589]]

    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided 
2018 shipments of the domestic like product for the U.S. producers that 
support the Petition.\15\ The petitioner estimated the production of 
the domestic like product for the entire domestic industry based on 
shipment value data, because production quantity data for the entire 
domestic industry are not available, and shipments are a close 
approximation of production in the wooden cabinets and vanities 
industry.\16\ The petitioner compared the shipments of the companies 
supporting the Petition to the estimated total 2018 shipments of the 
domestic like product for the entire domestic industry.\17\ We relied 
on data provided by the petitioner for purposes of measuring industry 
support.\18\
---------------------------------------------------------------------------

    \15\ See Volume I of the Petition, at 2-4 and Exhibits I-3, I-5, 
and I-7; see also General Issues Supplement, at 10-14 and Exhibits 
I-Supp-5, I-Supp-8 and I-Supp-12.
    \16\ See Volume I of the Petition at 3 and Exhibits I-3, I-4 and 
I-15; see also General Issues Supplement, at 9.
    \17\ See General Issues Supplement, at 10, 13, and 14.
    \18\ See Volume I of the Petition, at 2-4 and Exhibits I-3, I-4, 
I-5, and I-7; see also General Issues Supplement, at 9-14 and 
Exhibits I-Supp-5, I-Supp-8, I-Supp-10, I-Supp-11, and I-Supp-12. 
For further discussion, see AD Initiation Checklist, at Attachment 
II.
---------------------------------------------------------------------------

    On March 20, 2019, we received comments on industry support from 
American Home Furnishings Alliance (AHFA), an alliance representing the 
U.S. residential furniture industry, and Fabuwood Cabinetry Corp. 
(Fabuwood), a U.S. importer.\19\ On March 22, 2019, we received 
industry support comments from Huisen Furniture Longnan Co. Ltd. 
(Huisen), a Chinese producer and exporter of living room floor-standing 
furniture, and Kimball Hospitality Inc. (Kimball), a U.S. producer and 
importer of hospitality furniture.\20\ The petitioner responded to the 
industry support comments from AHFA, Fabuwood, Huisen, and Kimball on 
March 25, 2019.\21\
---------------------------------------------------------------------------

    \19\ See AHFA's Letter, ``Wooden Cabinets and Vanities from the 
People's Republic of China: Comments on Industry Support,'' dated 
March 20, 2019 (AHFA's Letter). See Fabuwood's Letter, ``Wooden 
Cabinets and Vanities from the People's Republic of China: Request 
to Dismiss Petitions or Otherwise Postpone Initiation,'' dated March 
20, 2019 (Fabuwood's Letter).
    \20\ See Huisen's Letter, ``Wooden Cabinets and Vanities from 
the People's Republic of China: Comments on Industry Support,'' 
dated March 22, 2019 (Huisen's Letter).
    \21\ See Petitioner's Letter, ``Wooden, Cabinets and Vanities 
from the People's Republic of China: Petitioners Response to Request 
to Various Parties' Requests to Dismiss or Postpone,'' dated March 
25, 2019 (Petitioner's Letter).
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, the General Issues 
Supplement, the Petitioner's Letter, and other information readily 
available to Commerce indicates that the petitioner has established 
industry support for the Petition.\22\ First, the Petition established 
support from domestic producers (or workers) accounting for more than 
50 percent of the total production of the domestic like product and, as 
such, Commerce is not required to take further action in order to 
evaluate industry support (e.g., polling).\23\ Second, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(i) of the Act because the domestic 
producers (or workers) who support the Petition account for at least 25 
percent of the total production of the domestic like product.\24\ 
Finally, the domestic producers (or workers) have met the statutory 
criteria for industry support under section 732(c)(4)(A)(ii) of the Act 
because the domestic producers (or workers) who support the Petition 
account for more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the Petition.\25\ Accordingly, Commerce 
determines that the Petition was filed on behalf of the domestic 
industry within the meaning of section 732(b)(1) of the Act.
---------------------------------------------------------------------------

    \22\ See AD Initiation Checklist, at Attachment II.
    \23\ See section 732(c)(4)(D) of the Act; see also AD Initiation 
Checklist, at Attachment II.
    \24\ See AD Initiation Checklist, at Attachment II.
    \25\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\26\
---------------------------------------------------------------------------

    \26\ See General Issues Supplement, at 15-16 and Exhibits I-
Supp-10 and I-Supp-13.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and revenues; closure of manufacturing facilities and 
hindered planned expansion efforts due to market conditions caused by 
subject imports; a decline in the domestic industry's U.S. production, 
capacity utilization, commercial shipments, employment, and financial 
performance; and the magnitude of the alleged dumping margins.\27\ We 
have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, causation, as well as 
negligibility, and we have determined that these allegations are 
properly supported by adequate evidence, and meet the statutory 
requirements for initiation.\28\
---------------------------------------------------------------------------

    \27\ See Volume I of the Petitions, at 15-18, 21-35 and Exhibits 
I-4, I-11 through I-29; see also General Issues Supplement, at 14-16 
and Exhibits I-Supp-10 and I-Supp-13.
    \28\ See AD Initiation Checklist, at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Wooden 
Cabinets and Vanities from the People's Republic of China 
(Attachment III).
---------------------------------------------------------------------------

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at LTFV 
upon which Commerce based its decision to initiate an AD investigation 
of imports of wooden cabinets and vanities from China. The sources of 
data for the deductions and adjustments relating to U.S. price and 
normal value (NV) are discussed in greater detail in the AD Initiation 
Checklist.

Export Price

    The petitioner based export price (EP) on an offer for sale for 
wooden cabinets produced in China and offered for sale to a customer in 
the United States.\29\ The petitioner made deductions from U.S. price 
for foreign inland freight and foreign brokerage and handling 
charges.\30\
---------------------------------------------------------------------------

    \29\ See Volume II of the Petition, at 3 and Exhibit II-2; see 
also AD Supplement, at 1 and Exhibit II-Supp-2.
    \30\ See Volume II of the Petition, at 5-7 and Exhibit II-3, 
Exhibit II-7, Exhibit II-12; see also AD Supplement, at 3 and 
Exhibit II-Supp-3, Exhibit II-Supp-4, Exhibit II-Supp-5.
---------------------------------------------------------------------------

Normal Value

    With respect to China, Commerce considers China to be an NME 
country.\31\ In accordance with section

[[Page 12590]]

771(18)(C)(i) of the Act, any determination that a foreign country is 
an NME country shall remain in effect until revoked by Commerce. 
Therefore, we continue to treat China as an NME country for purposes of 
the initiation of this investigation. Accordingly, NV in China is 
appropriately based on FOPs valued in a surrogate market economy 
country, in accordance with section 773(c) of the Act.\32\
---------------------------------------------------------------------------

    \31\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 83 FR 9282 (March 5, 2018).
    \32\ See AD Initiation Checklist.
---------------------------------------------------------------------------

    The Petition claims that Brazil is an appropriate surrogate country 
for China because it is a market economy that is at a level of economic 
development comparable to that of China and it is a significant 
producer of comparable merchandise.\33\ The petitioner provided 
publicly available information from Brazil to value all FOPs. Based on 
the information provided by the petitioner, we determine that it is 
appropriate to use Brazil as a surrogate country for initiation 
purposes.
---------------------------------------------------------------------------

    \33\ Id. at 9-10 and Exhibit II-9, Exhibit II-10.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by the 
Chinese producer/exporter was not reasonably available, the Petition 
used the product-specific consumption rates of a U.S. wooden cabinets 
and vanities producer as a surrogate to estimate the Chinese 
manufacturer's FOPs.\34\ The Petition valued the estimated FOPs using 
surrogate values from Brazil, as noted above. \35\ The Petition used an 
average exchange rate to convert the data to U.S. dollars, where 
applicable. The petitioner calculated factory overhead, selling, 
general and administrative expenses, and profit based on the experience 
of a Brazilian producer of wooden cabinets.\36\
---------------------------------------------------------------------------

    \34\ Id. at 2, 10-11 and Exhibit II-11, Exhibit II-12.
    \35\ Id. at 14-17.
    \36\ See Volume II of the Petition at 15-17 and Exhibit II-21 
and Exhibit II-22.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the Petition, there is reason to 
believe that imports of wooden cabinets and vanities from China are 
being, or are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV, in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for wooden cabinets and vanities 
from China range from 177.36 to 262.18 percent.\37\
---------------------------------------------------------------------------

    \37\ See Second AD Supplement at Exhibit II-Supp-2-3; see also 
AD Initiation Checklist.
---------------------------------------------------------------------------

Initiation of LTFV Investigation

    Based upon the examination of the Petition on wooden cabinets and 
vanities from China, we find that the Petition meets the requirements 
of section 732 of the Act. Therefore, we are initiating an AD 
investigation to determine whether imports of wooden cabinets and 
vanities from China are being, or are likely to be, sold in the United 
States at LTFV. In accordance with section 733(b)(1)(A) of the Act and 
19 CFR 351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 140 days after the date of this initiation.

Respondent Selection

    The petitioner named 727 companies in China as producers/exporters 
of wooden cabinets and vanities.\38\ After considering our resources, 
Commerce has determined that we do not have sufficient administrative 
resources to issue quantity and value (Q&V) questionnaires to all 727 
identified producers and exporters. Therefore, Commerce has determined 
to limit the number of Q&V questionnaires we will send out to exporters 
and producers identified in U.S. Customs and Border Protection (CBP) 
data for U.S. imports of wooden cabinets and vanities during the POI 
under the appropriate Harmonized Tariff Schedule of the United States 
numbers listed in the ``Scope of the Investigation,'' in the Appendix. 
Accordingly, Commerce will send Q&V questionnaires to the largest 
producers and exporters that are identified in the CBP data for which 
there is address information on the record.
---------------------------------------------------------------------------

    \38\ See Petition Volume I at Exhibit I-9; see also General 
Issues Supplement at Exhibit I-Supp-1.
---------------------------------------------------------------------------

    On March 26, 2019, Commerce released CBP data on imports of wooden 
cabinets and vanities from China under APO to all parties with access 
to information protected by APO and indicated that interested parties 
wishing to comment on the CBP data must do so within three business 
days of the publication date of the notice of initiation of this 
investigation.\39\ We further stated that we will not accept rebuttal 
comments.
---------------------------------------------------------------------------

    \39\ See Memorandum, ``Less-Than-Fair-Value Investigation of 
Wooden Cabinets and Vanities from China: Release of U.S. Customs and 
Border Protection Data;'' dated March 26, 2019.
---------------------------------------------------------------------------

    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on the Enforcement and Compliance website at http://www.trade.gov/enforcement/news.asp. In accordance with our standard 
practice for respondent selection in AD cases involving NME countries, 
we intend to base respondent selection on the responses to the Q&V 
questionnaire that we receive.
    Producers/exporters of wooden cabinets and vanities from China that 
do not receive Q&V questionnaires by mail may still submit a response 
to the Q&V questionnaire and can obtain a copy from the Enforcement & 
Compliance website. The Q&V response must be submitted by the relevant 
China exporters/producers no later than April 15, 2019. All Q&V 
responses must be filed electronically via ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\40\ 
The specific requirements for submitting a separate-rate application in 
the China investigation are outlined in detail in the application 
itself, which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice.\41\ Exporters and producers who submit a separate-rate 
application and have been selected as mandatory respondents will be 
eligible for consideration for separate-rate status only if they 
respond to all parts of Commerce's AD questionnaire as mandatory 
respondents. Commerce requires that companies from China submit a 
response to both the Q&V questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Companies not filing a timely 
Q&V response will not receive separate rate consideration.
---------------------------------------------------------------------------

    \40\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \41\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
---------------------------------------------------------------------------

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME

[[Page 12591]]

investigation. The Separate Rates and Combination Rates Bulletin 
states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\42\
---------------------------------------------------------------------------

    \42\ See Policy Bulletin 05.1 at 6 (emphasis added).

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the government of China via ACCESS. Because of the 
particularly large number of producers/exporters identified in the 
Petition, Commerce considers the service of the public version of the 
Petition to the foreign producers/exporters satisfied by delivery of 
the public version to the government of China, consistent with 19 CFR 
351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of wooden cabinets and vanities from China are 
materially injuring or threatening material injury to a U.S. 
industry.\43\ A negative ITC determination will result in the 
investigation being terminated.\44\ Otherwise, this investigation will 
proceed according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \43\ See section 733(a) of the Act.
    \44\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \45\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\46\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Please review the regulations prior to 
submitting factual information in this investigation.
---------------------------------------------------------------------------

    \45\ See 19 CFR 351.301(b).
    \46\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\47\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\48\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \47\ See section 782(b) of the Act.
    \48\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective order (APO) in accordance with 19 CFR 
351.305. On January 22, 2008, Commerce published Antidumping and 
Countervailing Duty Proceedings: Documents Submission Procedures; APO 
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to 
participate in this investigation should ensure that they meet the 
requirements of these procedures (e.g., the filing of letters of 
appearance as discussed in 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: March 28, 2019.
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.

Appendix

Scope of the Investigation

    The merchandise subject to this investigation consists of wooden 
cabinets and vanities that are for permanent installation (including 
floor mounted, wall mounted, ceiling hung or by attachment of 
plumbing), and wooden components thereof. Wooden cabinets and 
vanities and wooden components are made substantially of wood 
products, including solid wood and engineered wood products 
(including those made from wood particles, fibers, or other wooden 
materials such as plywood, strand board, block board, particle 
board, or fiberboard), or bamboo. Wooden cabinets and vanities 
consist of a cabinet box (which typically includes a top, bottom, 
sides, back, base blockers, ends/end panels, stretcher rails, toe 
kicks, and/or shelves) and may or may not include a frame, door, 
drawers and/or shelves. Subject merchandise includes wooden cabinets 
and vanities with or without wood veneers, wood, paper or other 
overlays, or laminates, with or without non-wood components or trim 
such as metal, marble, glass, plastic, or other resins,

[[Page 12592]]

whether or not surface finished or unfinished, and whether or not 
completed.
    Wooden cabinets and vanities are covered by the investigation 
whether or not they are imported attached to, or in conjunction 
with, faucets, metal plumbing, sinks and/or sink bowls, or 
countertops. If wooden cabinets or vanities are imported attached 
to, or in conjunction with, such merchandise, only the wooden 
cabinet or vanity is covered by the scope.
    Subject merchandise includes the following wooden component 
parts of cabinets and vanities: (1) Wooden cabinet and vanity frames 
(2) wooden cabinet and vanity boxes (which typically include a top, 
bottom, sides, back, base blockers, ends/end panels, stretcher 
rails, toe kicks, and/or shelves), (3) wooden cabinet or vanity 
doors, (4) wooden cabinet or vanity drawers and drawer components 
(which typically include sides, backs, bottoms, and faces), (5) back 
panels and end panels, (6) and desks, shelves, and tables that are 
attached to or incorporated in the subject merchandise.
    Subject merchandise includes all unassembled, assembled and/or 
``ready to assemble'' (RTA) wooden cabinets and vanities, also 
commonly known as ``flat packs,'' except to the extent such 
merchandise is already covered by the scope of antidumping and 
countervailing duty orders on Hardwood Plywood from the People's 
Republic of China. 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); Certain Hardwood Plywood Products from the People's 
Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 
2018). RTA wooden cabinets and vanities are defined as cabinets or 
vanities packaged so that at the time of importation they may 
include: (1) Wooden components required to assemble a cabinet or 
vanity (including drawer faces and doors); and (2) parts (e.g., 
screws, washers, dowels, nails, handles, knobs, adhesive glues) 
required to assemble a cabinet or vanity. RTAs may enter the United 
States in one or in multiple packages.
    Subject merchandise also includes wooden cabinets and vanities 
and in-scope components that have been further processed in a third 
country, including but not limited to one or more of the following: 
trimming, cutting, notching, punching, drilling, painting, staining, 
finishing, assembly, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in the country of manufacture of the in-scope product.
    Excluded from the scope of this investigation, if entered 
separate from a wooden cabinet or vanity are:
    (1) Aftermarket accessory items which may be added to or 
installed into an interior of a cabinet and which are not considered 
a structural or core component of a wooden cabinet or vanity. 
Aftermarket accessory items may be made of wood, metal, plastic, 
composite material, or a combination thereof that can be inserted 
into a cabinet and which are utilized in the function of 
organization/accessibility on the interior of a cabinet; and 
include:
     Inserts or dividers which are placed into drawer boxes 
with the purpose of organizing or dividing the internal portion of 
the drawer into multiple areas for the purpose of containing smaller 
items such as cutlery, utensils, bathroom essentials, etc.
     Round or oblong inserts that rotate internally in a 
cabinet for the purpose of accessibility to foodstuffs, dishware, 
general supplies, etc.
    (2) Solid wooden accessories including corbels and rosettes, 
which serve the primary purpose of decoration and personalization.
    (3) Non-wooden cabinet hardware components including metal 
hinges, brackets, catches, locks, drawer slides, fasteners (nails, 
screws, tacks, staples), handles, and knobs.
    Also excluded from the scope of this investigation are:
    (1) All products covered by the scope of the antidumping duty 
order on Wooden Bedroom Furniture from the People's Republic of 
China. 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).
    (2) All products covered by the scope of the antidumping and 
countervailing duty orders on Hardwood Plywood from the People's 
Republic of China. 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); Certain Hardwood Plywood Products from the People's 
Republic of China: Countervailing Duty Order, 83 FR. 513 (January 4, 
2018).
    Imports of subject merchandise are classified under Harmonized 
Tariff Schedule of the United States (HTSUS) statistical numbers 
9403.40.9060 and 9403.60.8081. The subject component parts of wooden 
cabinets and vanities may be entered into the United States under 
HTSUS statistical number 9403.90.7080. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this investigation is 
dispositive.

[FR Doc. 2019-06388 Filed 4-1-19; 8:45 am]
BILLING CODE 3510-DS-P