[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)
------------------------------------------------------------------------
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
------------------------------------------------------------------------

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