[Federal Register Volume 85, Number 213 (Tuesday, November 3, 2020)]
[Notices]
[Pages 69597-69599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24297]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-836]


Mattresses From Indonesia: Preliminary Affirmative Determination 
of Sales at Less Than Fair Value, Postponement of Final Determination, 
and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that mattresses from Indonesia are being, or are likely to be, sold in 
the United States at less than fair value (LTFV). The period of 
investigation (POI) is January 1, 2019 through December 31, 2019. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable November 3, 2020.

FOR FURTHER INFORMATION CONTACT: Janae Martin or Rebecca Trainor, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-0238 or (202) 
482-4007, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on April 24, 
2020.\1\ On August 11, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
October 27, 2020.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary Decision 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 https://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, the Republic of Turkey, and the Socialist Republic of 
Vietnam: Initiation of Less-Than-Fair-Value Investigations, 85 FR 
23002 (April 24, 2020) (Initiation Notice).
    \2\ See Mattresses from Cambodia, Indonesia, Malaysia, Serbia, 
Thailand, the Republic of Turkey, and the Socialist Republic of 
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 85 FR 48505 (August 11, 2020); see 
also Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: Request 
to Extend Preliminary Results and Align the Countervailing Duty 
Investigation with the Concurrent Antidumping Duty Investigations,'' 
dated July 30, 2020.
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination and Postponement of Final Determination in 
the Less-Than-Fair-Value Investigation of Mattresses from 
Indonesia'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is mattresses from 
Indonesia. For a full description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ In 
the Preliminary Scope Decision Memorandum, Commerce determined that it 
is not preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Mattresses from Cambodia, Indonesia, 
Malaysia, Serbia, Thailand, the Republic of Turkey, the Socialist 
Republic of Vietnam, and the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determination,'' 
(Preliminary Scope Decision Memorandum), dated concurrently with 
this preliminary determination.
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    The Preliminary Scope Decision Memorandum establishes a deadline to 
submit scope case briefs, and indicates that there will be no further 
opportunity for comments on scope-related issues.\7\
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    \7\ Case briefs, other written comments, and rebuttal briefs 
submitted in response to this preliminary determination should not 
include scope-related issues. See Preliminary Scope Decision 
Memorandum; and ``Public Comment'' section of this notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Constructed export prices 
have been calculated in accordance with section 772(b) of the Act. 
Normal value (NV) is calculated in accordance with section 773 of the 
Act. For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce

[[Page 69598]]

shall determine an estimated all-others rate for all exporters and 
producers not individually examined. This rate shall be an amount equal 
to the weighted average of the estimated weighted-average dumping 
margins established for exporters and producers individually 
investigated, excluding any zero and de minimis margins, and any 
margins determined entirely under section 776 of the Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for PT Zinus Global Indonesia (Zinus), the only 
individually examined exporter/producer in this investigation. Because 
the only individually calculated dumping margin is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
weighted-average dumping margin calculated for Zinus is the margin 
assigned to all other producers and exporters, pursuant to section 
735(c)(5)(A) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
PT Zinus Global Indonesia...................................        2.61
All Others..................................................        2.61
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin, as follows: (1) The cash deposit rate for the 
respondent listed above will be equal to the company-specific estimated 
weighted-average dumping margin determined in this preliminary 
determination; (2) if the exporter is not a respondent identified 
above, but the producer is, then the cash deposit rate will be equal to 
the company-specific estimated weighted-average dumping margin 
established for that producer of the subject merchandise; and (3) the 
cash deposit rate for all other producers and exporters will be equal 
to the all-others estimated weighted-average dumping margin. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance. 
Interested parties will be notified of a timeline for the submission of 
such case briefs and written comments at a later date. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
seven days after the deadline date for case briefs.\8\ Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information until 
further notice.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties 
who submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020); and Temporary Rule 
Modifying AD/CVD Service Requirements Due to COVID-19; Extension of 
Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On October 15, 2020, pursuant to 19 CFR 351.210(e), Zinus requested 
that Commerce postpone the final determination and that provisional 
measures be extended to a period not to exceed six months.\10\ In 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, Commerce 
will make its final determination no later than 135 days after the date 
of publication of this preliminary determination.
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    \10\ See Zinus's Letter, ``Mattresses from Indonesia: Request 
for Postponement of Final Determination,'' dated October 15, 2020.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its affirmative preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date

[[Page 69599]]

of this preliminary determination or 45 days after the final 
determination whether these imports materially injure, or threaten 
material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: October 27, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation 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 this investigation 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 and 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 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,'' ``sofabeds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers'' or a like description.
    Also excluded from the scope of this investigation 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 (February 19, 2009); Uncovered 
Innerspring Units from the Socialist Republic of Vietnam, 73 FR 
75391 (December 11, 2008).
    Also excluded from the scope of this investigation 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 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 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Particular Market Situation
VI. Recommendation

[FR Doc. 2020-24297 Filed 11-2-20; 8:45 am]
BILLING CODE 3510-DS-P