[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Notices]
[Pages 11962-11965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04120]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-107]
Wooden Cabinets and Vanities and Components Thereof From the
People's Republic of China: Final Affirmative Countervailing Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and/or
exporters of wooden cabinets and vanities and componets thereof (wooden
cabinets and vanities) from the People's Republic of China (China).
DATES: Applicable February 28, 2020.
FOR FURTHER INFORMATION CONTACT: Justin Neuman or Benito Ballesteros,
AD/CVD Operations, Office V, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0486 or (202)
482-7425, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 12, 2019, Commerce published the Preliminary
Determination in this investigation.\1\ The petitioner is the American
Kitchen Cabinet Alliance. In addition to the Government of China (GOC),
the mandatory respondents in this investigation are The Ancientree
Cabinet Co., Ltd. (Ancientree), Dalian Meisen Woodworking Co., Ltd.
(Meisen), and Rizhao Foremost Woodwork Manufacturing Co., Ltd.
(Foremost).
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\1\ See Wooden Cabinets and Vanities and Components Thereof From
the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty Determination, 84 FR 39798
(August 12, 2019) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, are discussed in the
Issues and Decision Memorandum, which is hereby adopted by this
notice.\2\ The Issues and Decision
[[Page 11963]]
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at http://access.trade.gov, and to all parties in the
Central Records Unit, Room B8024 of the main Commerce building. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/index.html.
The signed and electronic versions of the Issues and Decision
Memorandum are identical in content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Fabricated Structural Steel from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Issues and Decision Memorandum).
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Period of Investigation
The period of investigation (POI) is July 1, 2018 through December
31, 2018.
Scope of the Investigation
The products covered by this investigation are wooden cabinets and
vanities from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
Commerce issued a Preliminary Scope Decision Memorandum.\3\ Several
interested parties submitted case and rebuttal briefs concerning the
scope of this investigation. For a summary of the product coverage
comments and rebuttal comments submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Final Scope Decision Memorandum.\4\ Based on
the comments received, Commerce is not modifying the scope language as
it appeared in the Preliminary Determination. The scope in Appendix I
remains unchanged from that which appeared in the Preliminary
Determination.
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\3\ See Memorandum, ``Certain Wooden Cabinets and Vanities and
Components Thereof from the People's Republic of China: Scope
Comments Decision Memorandum for the Preliminary Determinations,''
dated October 2, 2019 (Preliminary Scope Decision Memorandum).
\4\ See Memorandum, ``Wooden Cabinets and Vanities and
Components Thereof from the People's Republic of China: Final Scope
Comments Decision Memorandum,'' dated concurrently with this notice
(Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. A
list of the issues that parties raised is attached to this notice as
Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated subsidy rates for Ancientree, Foremost
and Meisen. Additionally, consistent with the Preliminary
Determination, we relied on adverse facts available (AFA) to assign
subsidy rates to Henan AiDiJia Furniture Co., Ltd (AiDiJia) and Deway
International Trade Co., Ltd (Deway), because they failed to respond to
Commerce's requests for information.\6\
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\6\ See Preliminary Determination PDM at 10-11 (noting that
Commerce relied on AFA to assign a subsidy rate to Deway, because it
failed to respond to our quantity and value questionnaire, and also
relied on AFA to assign a subsidy rate to AiDiJia, because it failed
to respond to our full questionnaire).
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Verification
As provided for under section 782(i) of the Act, Commerce verified
the information reported by Ancientree, Foremost, and Meisen. We used
standard verification procedures, including an examination of relevant
accounting records and original source documents provided by the
respondents.\7\
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\7\ See Memorandum, ``Verification of the Questionnaire
Responses of Dalian Meisen Woodworking Co., Ltd.,'' dated January 3,
2020; Memorandum, ``Countervailing Duty Investigation of Wooden
Cabinets and Vanities and Components Thereof from the People's
Republic of China: Verification of the Questionnaire Responses of
The Ancientree Cabinet Co., Ltd.,'' dated January 7, 2020; and
Memorandum, ``Verification of the Questionnaire Responses of Rizhao
Foremost Woodwork Manufacturing Co., Ltd.,'' dated January 7, 2020.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, minor corrections presented at verification, and our
verification findings, we made certain changes to the subsidy rate
calculations for the respondents. As a result of the changes to the
respondents' calculated rates, Commerce has revised the all-others
rate. Commerce has also revised the total AFA rate. For a discussion of
these changes, see the Issues and Decision Memorandum and the Final
Calculation Memoranda.\8\
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\8\ See Memorandum, ``Countervailing Duty Investigation of
Wooden Cabinets and Vanities and Components Thereof from the
People's Republic of China: Ancientree Final Determination
Calculation Memorandum,'' dated concurrently with this notice;
Memorandum, ``Countervailing Duty Investigation of Wooden Cabinets
and Vanities and Components Thereof from the People's Republic of
China: Foremost Final Determination Calculation Memorandum,'' dated
concurrently with this notice; and Memorandum, ``Countervailing Duty
Investigation of Wooden Cabinets and Vanities and Components Thereof
from the People's Republic of China: Meisen Final Determination
Calculation Memorandum,'' dated concurrently with this notice
(collectively, Final Calculation Memoranda).
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Final Determination
As noted above, we calculated individual estimated subsidy rates
for Ancientree, Foremost and Meisen, and relied on AFA to assign
subsidy rates to AiDiJia and Deway, because they failed to respond to
Commerce's requests for information.
Section 705(c)(5)(A)(i) of the Act states that, for companies not
individually investigated, Commerce will determine an all-others rate
equal to the weighted-average countervailable subsidy rates established
for exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act. However, as we do not
have publicly-ranged sales data for all three of the participating
company respondents, we are using a simple average of the calculated
subsidy rates to establish the all-others rate.
Commerce determines the total estimated net countervailable subsidy
rates to be the following:
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\9\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Ancientree: Jiangsu Hongjia Wood Co., Ltd., Jiangsu Hongjia Wood
Co., Ltd. Shanghai Branch, and Shanghai Hongjia Wood Co., Ltd.
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with
Dalian Meisen: Dalian Hechang Technology Development Co., Ltd.
\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Rizhao Foremost: Foremost Worldwide Co., Ltd., and Rizhao Foremost
Landbridge Wood Industries Co., Ltd.
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Subsidy rate
Company (percent)
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The Ancientree Cabinet Co., Ltd \9\..................... 13.33
Dalian Meisen Woodworking Co., Ltd \10\................. 18.27
[[Page 11964]]
Rizhao Foremost Woodwork Manufacturing Company Ltd \11\. 31.18
Deway International Trade Co., Ltd...................... 293.45
Henan AiDiJia Furniture Co., Ltd........................ 293.45
All Others.............................................. 20.93
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Disclosure
We intend to disclose to parties the calculations performed in this
proceeding within five days of any public announcement of this notice
in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise entered, or withdrawn from warehouse, for
consumption on or after August 12, 2019, the date of publication of the
Preliminary Determination in the Federal Register. In accordance with
section 703(d) of the Act, we issued instructions to CBP to discontinue
the suspension of liquidation for subject merchandise entered, or
withdrawn from warehouse, on or after December 9, 2019, but to continue
the suspension of liquidation of all entries from August 12, 2019
through December 8, 2019.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue a countervailing
duty (CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require a cash deposit of estimated
countervailing duties for entries of subject merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated
and all estimated duties deposited or securities posted as a result of
the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports of wooden
cabinets and vanities from China no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, the proceeding will be terminated and
all cash deposits will be refunded. If the ITC determines that such
injury does exist, Commerce will issue a CVD order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Order (APO)
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: February 21, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
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, 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
[[Page 11965]]
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.
(4) Medicine cabinets that meet all of the following five
criteria are excluded from the scope: (1) Wall mounted; (2)
assembled at the time of entry into the United States; (3) contain
one or more mirrors; (4) be packaged for retail sale at time of
entry; and (5) have a maximum depth of seven inches.
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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Adverse Facts Available
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
Comment 1: Initiation of the Investigation
Comment 2: Whether Commerce Should Apply AFA to the Provision of
Electricity for Less than Adequate Remuneration (LTAR) Program
Comment 3: Whether Commerce Should Apply AFA to Find the Export
Buyer's Credit (EBC) Program Countervailable
Comment 4: Whether the Policy Loans to the Wooden Cabinet and
Vanity Industry Program Is Countervailable
Comment 5: Whether Land Prices in Thailand Provide a Suitable
Benchmark for Land Prices in China
Comment 6: Whether Commerce Should Apply AFA to the Provision of
Inputs for LTAR
Comment 7: Whether Commerce Should Apply AFA to Self-Reported
Subsidies
Comment 8: Whether Commerce Should Adjust Its Plywood Benchmark
Comment 9: Whether Commerce Should Apply AFA to Meisen
Comment 10: Whether Commerce Should Continue to Find that Meisen
Was Uncreditworthy
Comment 11: Whether Commerce Should Countervail Subsidies
Received by Foremost's Tolling Companies
Comment 12: Whether Commerce Should Continue to Find that
Foremost Was Uncreditworthy
IX. Recommendation
[FR Doc. 2020-04120 Filed 2-27-20; 8:45 am]
BILLING CODE 3510-DS-P