[Federal Register Volume 84, Number 132 (Wednesday, July 10, 2019)]
[Notices]
[Pages 32867-32870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14689]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-092]
Mattresses From the People's Republic of China: Amended
Preliminary Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is amending the
preliminary determination of the less-than-fair-value investigation of
mattresses from the People's Republic of China (China) to correct
significant ministerial errors.
DATES: Applicable July 10, 2019.
FOR FURTHER INFORMATION CONTACT: Jonathan Hill, Lilit Astvatsatrian, or
Stephen Bailey, AD/CVD Operations, Office IV, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone:
(202) 482-3518, (202) 482-6412, or (202) 482-0193, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 4, 2019, Commerce published its notice of preliminary
determination in the antidumping duty investigation of mattresses from
China.\1\ On May 30, 2019, Foshan City Shunde Haozuan Furniture Co.,
Ltd. (Foshan Haozuan) submitted comments alleging significant
ministerial errors in our preliminary determination.\2\ On May 31,
2019, Jiashan Nova Co., Ltd. (Nova) and Foshan Suilong Furniture Co.,
Ltd. (Suilong) submitted comments alleging significant ministerial
errors in our preliminary determination.\3\ On June 5, 2019, Zinus
(Xiamen) Inc. and Zinus (Zhangzhou) Inc., and their affiliated sellers
and U.S. importers (collectively, Zinus), Healthcare Co., Ltd. and its
affiliated exporters and U.S. importers (collectively, Healthcare), and
Corsicana Mattress Company, Elite Comfort Solutions, Future Foam Inc.,
FXI, Inc., Innocor, Inc., Kolcraft Enterprises Inc., Leggett & Platt,
Incorporated, Serta Simmons Bedding, LLC, and Tempur Sealy
International, Inc. (collectively, the petitioners), submitted comments
alleging significant ministerial errors in our calculation of the
preliminary margins for Healthcare and Zinus and in our assignment of
separate rates to certain companies.\4\
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\1\ See Mattresses from the People's Republic of China:
Preliminary Determination of Sales at Less Than Fair Value,
Postponement of Final Determination and Affirmative Preliminary
Determination of Critical Circumstances, 84 FR 25732 (June 4, 2019)
(Preliminary Determination) and the accompanying Preliminary
Decision Memorandum.
\2\ See letter from Foshan Haozuan, ``Antidumping Duty
Investigation of Mattresses from the People's Republic of China:
Ministerial Error Comments and Request to Immediately Correct
Federal Register Notice Prior to Publication,'' dated May 30, 2019
(Foshan Haozuan's ME Allegation).
\3\ See letter from Nova, ``Mattresses from People's Republic of
China: Omission from Notice of Preliminary Determination,'' dated
May 31, 2019 (Nova's ME Allegation); see letter from Suilong,
``Mattresses from People's Republic of China: Omission from Notice
of Preliminary Determination,'' dated May 31, 2019 (Suilong's ME
Allegation).
\4\ See letter from Zinus, ``Mattresses from the People's
Republic of China: Ministerial Error Allegation,'' dated June 5,
2019 (Zinus' ME Allegation); see letter from Healthcare,
``Mattresses from People's Republic of China: Ministerial Error
Comments for the Preliminary Determination,'' dated June 5, 2019
(Healthcare's ME Allegation); see also letter from the petitioners,
``Mattresses from the People's Republic of China: Mattress
Petitioners' Request for Correction of a Significant Ministerial
Error in the Preliminary Determination Margin Calculation of
Healthcare,'' dated June 5, 2019 (the petitioners' ME Allegation).
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Period of Investigation
The period of investigation is January 1, 2018, through June 30,
2018.
Scope of the Investigation
The product covered by this investigation is mattresses from China.
For a complete description of the scope of this investigation, see the
Appendix to this notice.
Analysis of Significant Ministerial Error Allegation
Commerce will analyze any comments received and, if appropriate,
correct any significant ministerial error by amending the preliminary
determination according to 19 CFR 351.224(e). A ministerial error is
defined in 19 CFR 351.224(f) as ``an error in addition, subtraction, or
other arithmetic function, clerical error resulting from inaccurate
copying, duplication, or the like, and any other similar type of
unintentional error which the Secretary considers ministerial.'' \5\ A
significant ministerial error is defined as a ministerial error,
[[Page 32868]]
the correction of which, singly or in combination with other errors,
would result in: (1) A change of at least five absolute percentage
points in, but not less than 25 percent of, the antidumping duty rate
calculated in the original preliminary determination; or (2) a
difference between an antidumping duty rate of zero or de minimis and
an antidumping duty rate of greater than de minimis or vice versa.\6\
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\5\ See also section 735(e) of the Tariff Act of 1930, as
amended (the Act).
\6\ See 19 CFR 351.224(g).
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Amended Preliminary Determination
Pursuant to 19 CFR 351.224(e) and (g)(1), Commerce is amending the
Preliminary Determination to reflect the correction of seven
ministerial errors made in the calculation of the estimated weighted-
average dumping margin for Healthcare,\7\ the assignment of separate
rates for certain companies explained below, and the correction to the
China-wide rate based on a typographical error. Regarding Zinus,
although Commerce finds that two of its three claimed errors are
ministerial in nature, as defined by 19 CFR 351.224(f), the ministerial
errors are not ``significant'' in accordance with 19 CFR 351.224(g).\8\
Specifically, the combined impact of the ministerial errors represent a
change of less than 25 percent of the margin calculated in the
Preliminary Determination. Concerning Healthcare, Commerce finds that
the petitioners' claimed error is a significant ministerial error
within the meaning of 19 CFR 351.224(g), because Healthcare's weighted-
average dumping margin increases from 38.56 to 69.30 \9\ percent as a
result of correcting this ministerial error, which exceeds the
specified threshold, i.e., a change of at least five absolute
percentage points in, but not less than 25 percent of, the dumping
margin calculated in the original Preliminary Determination. Further,
in the Preliminary Determination, Commerce calculated a weighted-
average of the dumping margins of Healthcare and Zinus,\10\ and
assigned this rate to the non-examined respondents that preliminarily
received a separate rate.\11\ Accordingly, as part of this amended
preliminary determination, Commerce will amend the estimated weighted-
average dumping margin to 81.31 percent for each non-examined
respondent that preliminarily received a separate rate.\12\
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\7\ See Memorandum, ``Less-Than-Fair-Value Investigation of
Mattresses from the People's Republic of China: Allegation of
Ministerial Errors in the Preliminary Determination,'' dated
concurrently with this notice (Ministerial Error Memorandum).
\8\ See Ministerial Error Memorandum.
\9\ See Memorandum, ``Analysis for the Amended Preliminary
Determination of the Less-Than-Fair-Value Investigation of
Mattresses from the People's Republic of China for Healthcare Co.,
Ltd.,'' dated concurrently with this notice.
\10\ See Memorandum, ``Calculation of the Rate for Separate Rate
Respondents,'' dated May 28, 2019.
\11\ See Preliminary Determination, 84 FR at 25733.
\12\ As a result of the change to Healthcare's preliminary
margin the separate rate for non-selected companies also changed.
See Memorandum, ``Calculation of the Rate for Separate Rate
Respondents,'' dated July 5, 2019.
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Additionally, in the Preliminary Determination, under the section
entitled ``Preliminary Determination,'' we inadvertently did not
identify Foshan Haozuan, Nova, and Suilong as having received a
separate rate. Also, Commerce incorrectly spelled Shanghai Glory Home
Furnishings Co., Ltd. Further, Commerce inadvertently listed Healthcare
Sleep Products Limited as the producer of Healthcare Sleep Products
Limited's exports while, in fact, Healthcare Co. Ltd. is the producer
in this exporter/producer combination. Finally, Commerce inadvertently
listed Luen Tai Global Limited as the producer of Luen Tai Global
Limited's exports while, in fact, Shenzhen L&T Industrial Co., Ltd. is
the producer in this exporter/producer combination.
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist for the following exporter-
producer combinations:
------------------------------------------------------------------------
Estimated
weighted-
Exporter Producer average
dumping margin
(percent)
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Zinus (Xiamen) Inc............. Zinus (Xiamen) Inc..... 84.64
Healthcare Co., Ltd............ Healthcare Co., Ltd.... 69.30
Foshan City Shunde Haozuan Foshan City Shunde 81.31
Furniture Co., Ltd. Haozuan Furniture Co.,
Ltd.
Jiashan Nova Co., Ltd.......... Jiashan Nova Co., Ltd.. 81.31
Foshan Suilong Furniture Co. Foshan Suilong 81.31
Ltd. Furniture Co. Ltd.
Healthcare Sleep Products Healthcare Co. Ltd..... 81.31
Limited.
Luen Tai Global Limited........ Shenzhen L&T Industrial 81.31
Co., Ltd.
Dockter China Limited.......... Healthcare Co., Ltd.... 81.31
Dockter China Limited.......... Huizhou Lemeijia 81.31
Household Products
Co., Ltd. (a.k.a.
Better Zs, Ltd.).
Dockter China Limited.......... Dongguan Beijianing 81.31
Household Products
Co., Ltd. (a.k.a.
Better Zs, Ltd.).
Foshan Chiland Furniture Co., Foshan Chiland 81.31
Ltd. Furniture Co., Ltd.
Foshan City Jinxingma Furniture Foshan City Jinxingma 81.31
Manufacture Co., Ltd. Furniture Manufacture
Co., Ltd.
Foshan City Kewei Furniture Foshan City Kewei 81.31
Co., Ltd. Furniture Co., Ltd.
Foshan EON Technology Industry Foshan EON Technology 81.31
Co., Ltd. Industry Co., Ltd.
Foshan Mengruo Household Foshan Mengruo 81.31
Furniture Co., Ltd. Household Furniture
Co., Ltd.
Foshan Qisheng Sponge Co., Ltd. Foshan Qisheng Sponge 81.31
Co., Ltd.
Foshan Ruixin Non Woven Co., Foshan Ruixin Non Woven 81.31
Ltd. Co., Ltd.
Foshan Ziranbao Furniture Co., Foshan Ziranbao 81.31
Ltd. Furniture Co., Ltd.
Guangdong Diglant Furniture Guangdong Diglant 81.31
Industrial Co., Ltd. Furniture Industrial
Co., Ltd.
Hong Kong Gesin Technology Inno Sports Co., Ltd... 81.31
Limited.
lnno Sports Co., Ltd........... lnno Sports Co., Ltd... 81.31
Jiangsu Wellcare Household Jiangsu Wellcare 81.31
Articles Co., Ltd. Household Articles
Co., Ltd.
Jiaxing Taien Springs Co., Ltd. Jiaxing Taien Springs 81.31
Co., Ltd.
Jiaxing Visco Foam Co., Ltd.... Jiaxing Visco Foam Co., 81.31
Ltd.
Jinlongheng Furniture Co., Ltd. Jinlongheng Furniture 81.31
Co., Ltd.
Luen Tai Group (China) Limited. Shenzhen L&T Industrial 81.31
Co., Ltd.
[[Page 32869]]
Man Wah Furniture Manufacturing Man Wah Household 81.31
(Hui Zhou) Co., Ltd., Man Wah Industry (Huizhou)
(MACAO Commercial Offshore), Co., Ltd.
Ltd. and Man Wah (USA), Inc.
Ningbo Megafeat Bedding Co., Ningbo Megafeat Bedding 81.31
Ltd. Co., Ltd.
Ningbo Shuibishen Home Textile Ningbo Shuibishen Home 81.31
Technology Co., Ltd. Textile Technology
Co., Ltd.
Nisco Co., Ltd................. Healthcare Co., Ltd.... 81.31
Quanzhou Hengang Imp. & Exp. Quanzhou Hengang 81.31
Co., Ltd. Industries Co., Ltd.
Shanghai Glory Home Furnishings Shanghai Glory Home 81.31
Co., Ltd. Furnishings Co., Ltd.
Sinomax Macao Commercial Dongguan Sinohome 81.31
Offshore Limited. Limited.
Sinomax Macao Commercial Sinomax (Zhejiang) 81.31
Offshore Limited. Polyurethane
Technology Ltd.
Wings Developing Co., Limited.. Quanzhou Hengang 81.31
Industries Co., Ltd.
Xianghe Kaneman Furniture Co., Xianghe Kaneman 81.31
Ltd. Furniture Co., Ltd.
Xilinmen Furniture Co., Ltd.... Xilinmen Furniture Co., 81.31
Ltd.
Zhejiang Glory Home Furnishings Zhejiang Glory Home 81.31
Co., Ltd. Furnishings Co., Ltd.
China-wide Entity.............. China-wide Entity...... 1,731.75
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Amended Cash Deposits and Suspension of Liquidation
The collection of cash deposits and suspension of liquidation will
be revised according to the rates calculated in this amended
preliminary determination. Because Healthcare's amended rate and the
consequent amended separate rate for non-selected companies result in
increased cash deposits, these amended rates will be effective on the
publication date of this amended preliminary determination. As Commerce
preliminarily found that critical circumstances exist for imports of
subject merchandise from the non-examined respondents that
preliminarily received a separate rate, and the China-wide entity,\13\
the amended rate for these entities will be effective on the
publication date of this amended preliminary determination. Entities
subject to critical circumstances in the Preliminary Determination
(i.e., separate rate companies and the China-wide entity) will continue
to be subject to a rate of 74.65 percent effective March 6, 2019, i.e.,
90 days before the publication of the Preliminary Determination, until
the effective date of this amended preliminary determination. Parties
will be notified of this determination, in accordance with section
733(d) and (f) of the Act.
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\13\ See Preliminary Determination, 84 FR at 25732 and
Preliminary Decision Memorandum, at 4-5.
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Disclosure
We intend to disclose the calculations performed to parties in this
proceeding within five days after public announcement of the amended
preliminary determination, in accordance with 19 CFR 351.224.
International Trade Commission Notification
In accordance with section 733(f) of the Act, we will notify the
International Trade Commission of our amended preliminary
determination.
Notification to Interested Parties
This amended preliminary determination is issued and published
pursuant to sections 733(f) and 777(i) of the Act and 19 CFR
351.224(e).
Dated: July 3, 2019.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix
Scope of the Investigation
The scope of this investigation covers all types of youth and
adult mattresses. The term ``mattress'' denotes an assembly of
materials that at a minimum includes a ``core,'' which provides the
main support system of the mattress, and may consist of
innersprings, foam, other resilient filling, or a combination of
these materials. Mattresses may also contain (1) ``upholstery,'' the
material between the core and the top panel of the ticking on a
single-sided mattress, or between the core and the top and bottom
panel of the ticking on a double-sided mattress; and/or (2)
``ticking,'' the outermost layer of fabric or other material (e.g.,
vinyl) that encloses the core and any upholstery, also known as a
cover.
The scope of this investigation is restricted to only ``adult
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' have a
width exceeding 35 inches, a length exceeding 72 inches, and a depth
exceeding 3 inches on a nominal basis. Such mattresses are
frequently described as ``twin,'' ``extra-long twin,'' ``full,''
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth
mattresses'' have a width exceeding 27 inches, a length exceeding 51
inches, and a depth exceeding 1 inch (crib mattresses have a depth
of 6 inches or less from edge to edge) on a nominal basis. Such
mattresses are typically described as ``crib,'' ``toddler,'' or
``youth'' mattresses. All adult and youth mattresses are included
regardless of actual size description.
The scope encompasses all types of ``innerspring mattresses,''
``non-innerspring mattresses,'' and ``hybrid mattresses.''
``Innerspring mattresses'' contain innersprings, a series of metal
springs joined together in sizes that correspond to the dimensions
of mattresses. Mattresses that contain innersprings are referred to
as ``innerspring mattresses'' or ``hybrid mattresses.'' ``Hybrid
mattresses'' contain two or more support systems as the core, such
as layers of both memory foam and innerspring units.
``Non-innerspring mattresses'' are those that do not contain any
innerspring units. They are generally produced from foams (e.g.,
polyurethane, memory (viscoelastic), latex foam, gel-infused
viscoelastic (gel foam), thermobonded polyester, polyethylene) or
other resilient filling.
Mattresses covered by the scope of this investigation may be
imported independently, as part of furniture or furniture mechanisms
(e.g., convertible sofa bed mattresses, sofa bed mattresses imported
with sofa bed mechanisms, corner group mattresses, day-bed
mattresses, roll-away bed mattresses, high risers, trundle bed
mattresses, crib mattresses), or as part of a set in combination
with a ``mattress foundation.'' ``Mattress foundations'' are any
base or support for a mattress. Mattress foundations are commonly
referred to as ``foundations,'' ``boxsprings,'' ``platforms,'' and/
or ``bases.'' Bases can be static, foldable, or adjustable. Only the
mattress is covered by the scope if imported as part of furniture,
with furniture mechanisms, or as part of a set in combination with a
mattress foundation.
Excluded from the scope of this investigation are ``futon''
mattresses. A ``futon'' is a bi-fold frame made of wood, metal, or
plastic material, or any combination thereof, that functions as both
seating furniture (such as a couch, love seat, or sofa) and a bed. A
``futon mattress'' is a tufted mattress, where the top covering is
secured to the bottom with thread that goes
[[Page 32870]]
completely through the mattress from the top through to the bottom,
and it does not contain innersprings or foam. A futon mattress is
both the bed and seating surface for the futon.
Also excluded from the scope are airbeds (including inflatable
mattresses) and waterbeds, which consist of air- or liquid-filled
bladders as the core or main support system of the mattress.
Further, also excluded from the scope of this investigation are
any products covered by the existing antidumping duty order on
uncovered innerspring units. See Uncovered Innerspring Units from
the People's Republic of China: Notice of Antidumping Duty Order, 74
FR 7661 (February 19, 2009).
Additionally, also excluded from the scope of this investigation
are ``mattress toppers.'' A ``mattress topper'' is a removable
bedding accessory that supplements a mattress by providing an
additional layer that is placed on top of a mattress. Excluded
mattress toppers have a height of four inches or less.
The products subject to this investigation are currently
properly classifiable under Harmonized Tariff Schedule for the
United States (HTSUS) subheadings: 9404.21.0010, 9404.21.0013,
9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products
subject to this investigation may also enter under HTSUS
subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000,
and 9401.90.5081. Although the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
merchandise subject to this investigation is dispositive.
[FR Doc. 2019-14689 Filed 7-9-19; 8:45 am]
BILLING CODE 3510-DS-P