[Federal Register Volume 85, Number 80 (Friday, April 24, 2020)]
[Notices]
[Pages 23002-23009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08758]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-555-001, A-560-836, A-557-818, A-801-002, A-549-841, A-489-841, A-
552-827]


Mattresses From Cambodia, Indonesia, Malaysia, Serbia, Thailand, 
the Republic of Turkey, and the Socialist Republic of Vietnam: 
Initiation of Less-Than-Fair-Value Investigations

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

DATES: Applicable April 20, 2020.

FOR FURTHER INFORMATION CONTACT: John McGowan at (202) 482-3019 
(Cambodia); Brian Smith at (202) 482-1766 (Indonesia); Joshua Simonidis 
at (202) 482-0608 (Malaysia); Joshua A. DeMoss at (202) 482-3362 
(Serbia); Paola Aleman Ordaz at (202) 482-4031 (Thailand); Jacob Keller 
at (202) 482-4849 (Turkey); and Dakota Potts at (202)

[[Page 23003]]

482-0223 (Vietnam); AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On March 31, 2020, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of 
mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, the 
Republic of Turkey (Turkey), and the Socialist Republic of Vietnam 
(Vietnam) filed in proper form on behalf of the petitioners,\1\ 
domestic producers of mattresses and certified unions that represent 
workers engaged in the domestic production of mattresses.\2\ The 
Petitions were accompanied by a countervailing duty (CVD) petition 
concerning imports of mattresses from the People's Republic of China 
(China).\3\
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    \1\ Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort 
Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., 
Leggett & Platt, Incorporated, the International Brotherhood of 
Teamsters, and United Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union, AFL-CIO (USW) (collectively, the petitioners).
    \2\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam--
Antidumping and Countervailing Duty Petitions,'' dated March 31, 
2020 (the Petitions).
    \3\ Id.
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    Between April 3 and 14, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in separate 
supplemental questionnaires.\4\ The petitioners filed responses to the 
supplemental questionnaires between April 8 and April 16, 2020.\5\
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    \4\ See Commerce's Letters, ``Petition for the Imposition of 
Antidumping Duties on Imports of Mattresses from Cambodia, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam and 
Countervailing Duties on Imports from China: Supplemental 
Questions,'' dated April 3, 2020 (General Issues Supplemental); and 
country-specific supplemental questionnaires: Cambodia Supplemental, 
Indonesia Supplemental, Malaysia Supplemental, Serbia Supplemental, 
Thailand Supplemental, Turkey Supplemental, and Vietnam 
Supplemental, dated April 3, 2020; see also country-specific and 
general issues memoranda regarding telephone conversation with 
counsel for the petitioners, dated April 10 and April 14, 2020.
    \5\ See Petitioners' First Country-Specific Supplemental 
Responses, dated April 8, 2020; see also Petitioners' Letter, 
``Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, 
Thailand, Turkey, and Vietnam: Responses to Petition Supplemental 
Questionnaires,'' dated April 8, 2020 (General Issues Supplement); 
Second Country-Specific Supplemental Responses, dated April 13, 
2020; and Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam--
Responses to Petition Second Supplemental Questionnaires,'' dated 
April 13, 2020 (Second General Issues Supplement); and Petitioners' 
Letter, ``Mattresses from Cambodia, China, Indonesia, Malaysia, 
Serbia, Thailand, Turkey, and Vietnam: Mattress Petitioners' 
Response to Request for Additional Information Regarding Industry 
Support,'' dated April 16, 2020 (Industry Support Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of mattresses 
from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and 
Vietnam 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 imports of such products are materially injuring, or 
threatening material injury to, the domestic mattress industry in the 
United States. Consistent with section 732(b)(1) of the Act, the 
Petitions are accompanied by information reasonably available to the 
petitioners supporting their allegations.
    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry, because the petitioners are interested 
parties, as defined in sections 771(9)(C) and (D) of the Act. Commerce 
also finds that the petitioners demonstrated sufficient industry 
support for the initiation of the requested AD investigations.\6\
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    \6\ See infra, section on ``Determination of Industry Support 
for the Petitions.''
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Period of Investigations

    Because the Petitions were filed on March 31, 2020, the period of 
investigation (POI) for the Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, and Turkey AD investigations is January 1, 2019 through 
December 31, 2019, pursuant to 19 CFR 351.204(b)(1).\7\ Because Vietnam 
is a non-market economy (NME) country, pursuant to 19 CFR 
351.204(b)(1), the POI for the Vietnam AD investigation is July 1, 2019 
through December 31, 2019.\8\
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    \7\ See 19 CFR 351.204(b)(1).
    \8\ Id.
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Scope of the Investigations

    The products covered by these investigations are mattresses from 
Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam. 
For a full description of the scope of these investigations, see the 
appendix to this notice.

Comments on the Scope of the Investigations

    On April 3, 2020, Commerce requested further information from the 
petitioners regarding the proposed scope to ensure that the scope 
language in the Petition is an accurate reflection of the products for 
which the domestic industry is seeking relief.\9\ On April 8, 2020, the 
petitioners revised the scope.\10\ On April 10, 2020, Commerce 
requested further clarification from the petitioners regarding the 
proposed scope.\11\ On April 13, 2020, the petitioners further modified 
the scope of the Petition to clarify the description of the merchandise 
covered by the Petition.\12\ The description of the merchandise covered 
by these investigations, as described in the appendix to this notice, 
reflects these clarifications.
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    \9\ See General Issues Questionnaire.
    \10\ See First General Issues Supplement at Exhibit I-Supp-5.
    \11\ See Memorandum of Telephone Conversation.
    \12\ See Second General Issues Supplement at Exhibit I-Supp2-1.
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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 (i.e., scope).\13\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\14\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on May 11, 2020, which is the next business day after 20 calendar 
days from the signature date of this notice.\15\ Any rebuttal comments, 
which may include factual information, must be filed by 5:00 p.m. ET on 
May 21, 2020, which is ten calendar days from the initial comment 
deadline.\16\
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    \13\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \14\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \15\ Commerce practice dictates that where a deadline falls on a 
weekend or Federal holiday, the appropriate deadline is the next 
business day (in this instance, May 11, 2020). See Notice of 
Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, As Amended, 70 FR 24533 (May 10, 2005) (Next Business Day 
Rule).
    \16\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must

[[Page 23004]]

be filed on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\17\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \17\ 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

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of mattresses to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant costs of production 
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. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe mattresses, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the physical 
characteristics in order of importance, from most important to least 
important.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on May 11, 2020, 
which is the next business day after 20 calendar days from the 
signature date of this notice.\18\ Any rebuttal comments must be filed 
by 5:00 p.m. ET on May 21, 2020. All comments and submissions to 
Commerce must be filed electronically using ACCESS, as explained above, 
on the record of each of the AD investigations.
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    \18\ See 19 CFR 351.303(b). Commerce practice dictates that 
where a deadline falls on a weekend or Federal holiday, the 
appropriate deadline is the next business day (in this instance, 
April 20, 2020). See Next Business Day Rule, 70 FR at 24533.
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Determination of Industry Support for the Petitions

    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,\19\ 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.\20\
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    \19\ See section 771(10) of the Act.
    \20\ 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 petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\21\ Based on our analysis of the information 
submitted on the record, we have determined that mattresses, as defined 
in the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\22\
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    \21\ See Volume I of the Petitions at 13-16; see also First 
General Issues Supplement, at Exhibit I-Supp-2.
    \22\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see country-specific AD Initiation Checklists at Attachment II, 
Analysis of Industry Support for the Antidumping and Countervailing 
Duty Petitions Covering Mattresses from Cambodia, China, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, and Vietnam (Attachment II).
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    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioners provided 
the 2019 production of the domestic like product for the U.S. producers 
that support the Petitions.\23\ The petitioners estimated the 
production of the domestic like product for the entire domestic 
industry based on the production data from the ITC's 2019 report from 
the AD investigation of mattresses from China.\24\ We relied on data 
provided by the petitioners for

[[Page 23005]]

purposes of measuring industry support.\25\
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    \23\ See Volume I of the Petitions at 3-4, Exhibit I-3, and 
Exhibit I-4; see also First General Issues Supplement, at 2 and 
Exhibit I-Supp-1; and Industry Support Supplement, at Exhibit 2.
    \24\ See Volume I of the Petitions at 3-4 and Exhibit I-4; see 
also First General Issues Supplement at 2, Exhibit I-Supp-1, and 
Exhibit I-Supp-2; Mattresses from China, Inv. No. 731-TA-1424 
(Final), USITC Pub. 5000 (December 2019), at 17-25, II-1 to II-28; 
and Industry Support Supplement, at 2-5 and Exhibit 1.
    \25\ See Volume I of the Petitions at 3-4, Exhibit I-3, and 
Exhibit I-4; see also First General Issues Supplement at 2, Exhibit 
I-Supp-1, and Exhibit I-Supp-2; and Industry Support Supplement. For 
further discussion, see Attachment II of the country-specific AD 
Initiation Checklists.
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    On April 9, 2020 and April 10, 2020, respectively, we received 
comments on industry support from Ashley Furniture industries, Inc. 
(Ashley), a domestic producer and importer of subject merchandise,\26\ 
and Classic Brands, LLC (Classic Brands), an importer of subject 
merchandise.\27\ The petitioners responded to these industry support 
comments on April 13, 2020.\28\ On April 17, 2020, we received 
surrebuttal comments from Ashley \29\ and Classic Brands \30\ with 
regard to the petitioners' April 13, 2020 comments. The petitioners 
responded to these surrebuttal industry support comments on April 20, 
2020.\31\
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    \26\ See Ashley's Letter, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Comments on 
Industry Support,'' dated April 9, 2020.
    \27\ See Classic Brand's Letter, ``Mattresses from Cambodia, 
China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Challenge to Petitioners' Standing,'' dated April 10, 2020.
    \28\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress 
Petitioners' Response to Ashley's Industry Support Claims,'' dated 
April 13, 2020.
    \29\ See Ashley's Letter, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, Vietnam and China: Response to 
Petitioners' Comments on Industry Support,'' dated April 17, 2020.
    \30\ See Classic Brand's Letter, ``Mattresses from Cambodia, 
China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Classic Brands's Surrebuttal on Petitioners' Standing,'' dated April 
17, 2020.
    \31\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Mattress 
Petitioners' Response to Industry Support Claims Filed on April 17, 
2020 by Ashley and Classic Brands,'' dated April 20, 2020.
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    Our review of the data provided in the Petitions, the General 
Issues Supplement, Industry Support Supplement, and other information 
readily available to Commerce indicates that the petitioners have 
established industry support for the Petitions.\32\ First, the 
Petitions 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).\33\ 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 
Petitions account for at least 25 percent of the total production of 
the domestic like product.\34\ 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 Petitions 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 
Petitions.\35\ Accordingly, Commerce determines that the Petitions were 
filed on behalf of the domestic industry within the meaning of section 
732(b)(1) of the Act.\36\
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    \32\ See Attachment II of the country-specific AD Initiation 
Checklists.
    \33\ Id.; see also section 732(c)(4)(D) of the Act.
    \34\ See Attachment II of the country-specific AD Initiation 
Checklists.
    \35\ Id.
    \36\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioners allege 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 petitioners allege that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\37\
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    \37\ See Volume I of the Petitions, at 17-18 and Exhibit I-12.
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    The petitioners contend 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; declining production, capacity utilization, 
and sales volumes; declining employment variables; and a decline in 
financial performance and profitability.\38\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, as well as negligibility and cumulation, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\39\
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    \38\ See Volume I of the Petitions, at 28-46 and Exhibits I-8 
through I-18; see also First General Issues Supplement, at Exhibit 
I-Supp-2.
    \39\ See country-specific AD Initiation Checklists at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Mattresses from Cambodia, China, Indonesia, Malaysia, 
Serbia, Thailand, Turkey, and Vietnam (Attachment III).
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of mattresses from Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, Turkey, and Vietnam. 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 country-specific AD Initiation 
Checklists.

U.S. Price

    For all countries, the petitioners based EP on the average unit 
value (AUV) of publicly available import data; \40\ no adjustments were 
made to the U.S. price before comparing it to NV.
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    \40\ See country-specific AD Initiation Checklists.
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Normal Value 41
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    \41\ In accordance with section 773(b)(2) of the Act, for these 
investigations, Commerce will request information necessary to 
calculate the constructed value and cost of production (COP) to 
determine whether there are reasonable grounds to believe or suspect 
that sales of the foreign like product have been made at prices that 
represent less than the COP of the product. Commerce no longer 
requires a COP allegation to conduct this analysis.
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    For Cambodia, Indonesia, Malaysia, Serbia, Thailand, and Turkey, 
the petitioners were unable to obtain home market prices for mattresses 
produced and sold in the subject countries. Therefore, for these 
countries, the petitioners based NV on AUVs of publicly available 
export data for exports of mattresses from the subject countries to 
third countries.\42\ For each of the countries, the petitioners also 
provided information showing that the AUVs were below the COP and, 
therefore, the petitioners calculated NV based on constructed value 
(CV).\43\
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    \42\ See country-specific AD Initiation Checklists for Cambodia, 
Indonesia, Malaysia, Serbia, Thailand, and Turkey.
    \43\ Id.
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    For further discussion of CV, see the section ``Normal Value Based 
on Constructed Value.''
    Commerce considers Vietnam to be an NME country.\44\ In accordance 
with section 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 Vietnam as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
Vietnam is appropriately based on factors of production (FOPs) valued 
in a surrogate market economy country, in

[[Page 23006]]

accordance with section 773(c) of the Act.\45\
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    \44\ See Certain Frozen Fish Fillets from the Socialist Republic 
of Vietnam: Final Results, and Final Results of No Shipments of the 
Antidumping Duty Administrative Review; 2016-2017, 84 FR 18007 
(April 29, 2019).
    \45\ See Vietnam AD Initiation Checklist.
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    The petitioners claim that India is an appropriate surrogate 
country for Vietnam because India is a market economy country that is 
at a level of economic development comparable to that of Vietnam and it 
is a significant producer of comparable merchandise.\46\ The 
petitioners provided publicly available information from India to value 
all FOPs. Based on the information provided by the petitioners, we 
determine that it is appropriate to use India as a surrogate country 
for initiation purposes.
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    \46\ See Volume IX of the Petition at 2-4 and Exhibit IX-4.
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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 
Vietnamese producers/exporters was not reasonably available, the 
petitioners used their own product-specific consumption rates as a 
surrogate to estimate Vietnamese manufacturers' FOPs.\47\ The 
petitioners valued the estimated FOPs using surrogate values from 
India.\48\ The petitioners calculated factory overhead, selling, 
general and administrative expenses, and profit based on the experience 
of an Indian producer of mattresses.\49\
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    \47\ See Volume IX of the Petition at 5 and Exhibit IX-6; see 
also Petitioners' Letter, ``Supplemental Petition Questionnaire,'' 
dated April 8, 2020, at Exhibits IX-Supp-5 and IX-Supp-10 (Vietnam 
AD Supplement); Petitioners' Letter, ``Second Supplemental 
Questionnaire on the Petition,'' dated April 13, 2020, at Exhibit 
IX-Supp2-1 (Second Vietnam AD Supplement).
    \48\ See Volume IX of the Petition at 5-6 and Exhibits IX-5 and 
IX-7; see also Vietnam AD Supplement at 8-9 and Exhibits IX-Supp-5 
and IX-Supp-10; Second Vietnam AD Supplement at Exhibit IX-Supp2-1.
    \49\ See Volume IX of the Petition at 6-7 and Exhibit IX-10; see 
also Vietnam AD Supplement at Exhibit IX-Supp-5 and IX-Supp-10; 
Second Vietnam AD Supplement at Exhibit IX-Supp2-1.
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Normal Value Based on Constructed Value

    As noted above, the petitioners demonstrated that the third country 
export AUVs for Cambodia, Indonesia, Malaysia, Serbia, Thailand, and 
Turkey were below COP. Accordingly, the petitioners based NV on CV.\50\ 
Pursuant to section 773(e) of the Act, the petitioners calculated CV as 
the sum of the cost of manufacturing, selling, general, and 
administrative expenses, financial expenses, and profit.\51\
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    \50\ See country-specific AD Initiation Checklists for Cambodia, 
Indonesia, Malaysia, Serbia, Thailand, and Turkey for details of 
calculations.
    \51\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of mattresses from Cambodia, Indonesia, Malaysia, 
Serbia, Thailand, Turkey, and Vietnam are being, or are likely to be, 
sold in the United States at LTFV. Based on comparisons of EP or CEP, 
as applicable, to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for mattresses for each of the 
countries covered by this initiation are as follows: (1) Cambodia, 
326.49-675.83 percent; (2) Indonesia, 213.44-429.74 percent; (3) 
Malaysia, 42.92 percent; (4) Serbia, 57.37-183.16 percent; (5) 
Thailand, 414.77-763.28 percent; (6) Turkey, 267.55-609.51 percent; and 
(7) Vietnam, 481.72-989.90 percent.\52\
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    \52\ Id.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating AD investigations to determine 
whether imports of mattresses from Cambodia, Indonesia, Malaysia, 
Serbia, Thailand, Turkey, and Vietnam 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 determinations no later than 140 days after 
the date of this initiation.

Respondent Selection

    In the Petitions, the petitioners named 8 companies in Cambodia, 13 
companies in Indonesia, 21 companies in Malaysia, 12 companies in 
Serbia, 19 companies in Thailand, and 29 companies in Turkey \53\ as 
producers/exporters of mattresses.
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    \53\ See Volume I of the Petitions at page 22 and Exhibit I-7.
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    Following standard practice in AD investigations involving market 
economy countries, in the event Commerce determines that the number of 
companies is large and that Commerce cannot individually examine each 
company based upon Commerce's resources, where appropriate, Commerce 
intends to select mandatory respondents in Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, and Turkey based on U.S. Customs and Border 
Protection (CBP) data for U.S. imports under the appropriate Harmonized 
Tariff Schedule of the United States numbers listed in the ``Scope of 
the Investigations,'' in the appendix.
    For each country, on April 14, 2020, Commerce released CBP data on 
imports of mattresses to all parties with access to information 
protected by Administrative Protective Order (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 these investigations.\54\ Commerce will not accept rebuttal comments 
regarding the CBP data or respondent selection.
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    \54\ See country-specific memoranda, ``Release of Customs Data 
from U.S. Customs and Border Protection.''
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at http://enforcement.trade.gove/apo.
    With respect to Vietnam, the petitioners named 10 companies in 
Vietnam as producers/exporters of mattresses.\55\ In accordance with 
our standard practice for respondent selection in AD investigations 
involving NME countries, Commerce selects respondents based on quantity 
and value (Q&V) questionnaires in cases where it has determined that 
the number of companies is large and it cannot individually examine 
each company based upon its resources. Therefore, considering the 
number of producers and exporters identified in the Petition, Commerce 
will solicit Q&V information that can serve as a basis for selecting 
exporters for individual examination in the event that Commerce decides 
to limit the number of respondents individually examined pursuant to 
section 777A(c)(2) of the Act. Given that there are 10 producers and 
exporters identified in the Petition, Commerce has determined that it 
will issue Q&V questionnaires to each potential respondent for which 
the petitioners have provided a complete address.
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    \55\ See Volume I of the Petition at Exhibit I-7.
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    In addition, Commerce will post the Q&V questionnaire along with 
filing instructions on Enforcement and Compliance's website at http://www.trade.gov/enforcement/news.asp. Producers/exporters of mattresses 
from

[[Page 23007]]

Vietnam that do not receive Q&V questionnaires may still submit a 
response to the Q&V questionnaire and can obtain a copy of the Q&V 
questionnaire from Enforcement and Compliance's website. In accordance 
with the standard practice for respondent selection in AD cases 
involving NME countries, in the event Commerce decides to limit the 
number of respondents individually investigated, Commerce intends to 
base respondent selection on the responses to the Q&V questionnaire 
that it receives.
    Responses to the Q&V questionnaire must be submitted by the 
relevant Vietnamese producers/exporters no later than 5:00 p.m. ET on 
May 6, 2020. All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above. Commerce intends to finalize its 
decisions regarding respondent selection within 20 days of publication 
of this notice.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\56\ 
The specific requirements for submitting a separate-rate application in 
a Vietnam 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.\57\ 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 Vietnam 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 questionnaire response will not receive separate rate 
consideration.
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    \56\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving NME Countries (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
    \57\ 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 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.\58\
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    \58\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the AD Petitions have been 
provided to the governments of Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, Turkey, and Vietnam via ACCESS. To the extent practicable, we 
will attempt to provide a copy of the public version of the AD 
Petitions to each exporter named in the AD Petitions, as provided under 
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 AD Petitions were filed, whether there is a reasonable 
indication that imports of mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, Turkey, and/or Vietnam are materially 
injuring, or threatening material injury to, a U.S. industry.\59\ A 
negative ITC determination for any country will result in the 
investigation being terminated with respect to that country.\60\ 
Otherwise, these AD investigations will proceed according to statutory 
and regulatory time limits.
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    \59\ See section 733(a) of the Act.
    \60\ 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). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \61\ 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.\62\ 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. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
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    \61\ See 19 CFR 351.301(b).
    \62\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 504 of the Trade Preferences Extension Act of 2015 amended 
the Act by adding the concept of particular market situation (PMS) for 
purposes of CV under section 773(e) of the Act.\63\ Section 773(e) of 
the Act states that ``if a particular market situation exists such that 
the cost of materials and fabrication or other processing of any kind 
does not accurately reflect the cost of production in the ordinary 
course of trade, the administering authority may use another 
calculation methodology under this subtitle or any other calculation 
methodology.'' When an interested party submits a PMS allegation 
pursuant to section 773(e) of the Act, Commerce will respond to such a 
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds 
that a PMS exists under section 773(e) of the Act, then it will modify 
its dumping calculations appropriately.
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    \63\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
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    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), 
sets a deadline for the submission of PMS allegations and supporting 
factual information. However, in order to administer section 773(e) of 
the Act, Commerce must

[[Page 23008]]

receive PMS allegations and supporting factual information with enough 
time to consider the submission. Thus, should an interested party wish 
to submit a PMS allegation and supporting new factual information 
pursuant to section 773(e) of the Act, it must do so no later than 20 
days after submission of a respondent's initial section D questionnaire 
response.

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 Commerce. 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.\64\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\65\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \64\ See section 782(b) of the Act.
    \65\ See 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 
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 these investigations should ensure 
that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed at 19 CFR 351.103(d)). Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
May 19, 2020, unless extended.\66\
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    \66\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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    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: April 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigations

    The products covered by these investigations are 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 these investigations is restricted to only ``adult 
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' are 
frequently described as ``twin,'' ``extra-long twin,'' ``full,'' 
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth 
mattresses'' are typically described as ``crib,'' ``toddler,'' or 
``youth'' mattresses. All adult and youth mattresses are included 
regardless of size or 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 these investigations 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 these investigations 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 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.
    Also excluded is certain multifunctional furniture that is 
convertible from seating to sleeping, regardless of filler material 
or components, where that filler material or components are 
upholstered, integrated into the design and construction of, and 
inseparable from, the furniture framing, and the outermost layer of 
the multifunctional furniture converts into the sleeping surface. 
Such furniture may, and without limitation, be commonly referred to 
as ``convertible sofas,'' ``sofa beds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers'' or a like description.
    Also excluded from the scope of these investigations are any 
products covered by the existing antidumping duty orders on 
uncovered innerspring units from China or Vietnam. See Uncovered 
Innerspring Units from the People's Republic of China: Notice of 
Antidumping Duty Order, 74 FR 7661 (Feb. 19, 2009); Uncovered 
Innerspring Units From the Socialist Republic of Vietnam, 73 FR 
75391 (Dec. 11, 2008).
    Also excluded from the scope of these investigations are 
bassinet pads with a nominal length of less than 39 inches, a 
nominal width less than 25 inches, and a nominal depth of less than 
2 inches.
    Additionally, also excluded from the scope of these 
investigations are ``mattress

[[Page 23009]]

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 
nominal height of four inches or less.
    The products subject to these investigations are currently 
properly classifiable under HTSUS subheadings: 9404.21.0010, 
9404.21.0013, 9404.29.1005, 9404.29.1013, 9404.29.9085, and 
9404.29.9087. Products subject to these investigations 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 these 
investigations is dispositive.

[FR Doc. 2020-08758 Filed 4-23-20; 8:45 am]
 BILLING CODE 3510-DS-P