[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]
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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.
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\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.
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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\
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\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).
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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\
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\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.
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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.
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\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.
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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\
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\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).
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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.
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\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.
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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.
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\10\ See 19 CFR 351.303(b).
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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\
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\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)).
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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\
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\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).
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[[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\
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\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.
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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\
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\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).
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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.
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\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.
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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\
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\26\ See General Issues Supplement, at 15-16 and Exhibits I-
Supp-10 and I-Supp-13.
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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\
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\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).
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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\
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\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.
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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\
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\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.
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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.
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\33\ Id. at 9-10 and Exhibit II-9, Exhibit II-10.
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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\
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\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.
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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\
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\37\ See Second AD Supplement at Exhibit II-Supp-2-3; see also
AD Initiation Checklist.
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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.
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\38\ See Petition Volume I at Exhibit I-9; see also General
Issues Supplement at Exhibit I-Supp-1.
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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.
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\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.
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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.
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\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.
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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\
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\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.
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\43\ See section 733(a) of the Act.
\44\ Id.
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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.
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\45\ See 19 CFR 351.301(b).
\46\ See 19 CFR 351.301(b)(2).
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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.
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\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.
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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