[Federal Register Volume 85, Number 213 (Tuesday, November 3, 2020)]
[Notices]
[Pages 69574-69576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24298]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-557-818]
Mattresses From Malaysia: 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 Malaysia 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: Joshua Simonidis or Dennis McClure,
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) 482-0608
or (202) 482-5973, 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).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Mattresses from Malaysia,'' 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
Malaysia. 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. Pursuant to section 776(a) and (b) of the Act,
Commerce has preliminarily relied upon facts otherwise available with
adverse inferences to determine the estimated weighted-average dumping
margin for Delandis Furniture (M) Sdn Bhd (Delandis), Far East Foam
Industries Sdn Bhd (Far East Foam), and Vision Foam Ind. Sdn Bhd.
(Vision Foam). 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 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 rates that
are zero, de minimis, or determined entirely under section 776 of the
Act.
In situations where no estimated weighted-average dumping margins
other than zero, de minimis, or those determined entirely under section
776 of the Act have been established for individually examined
entities, in accordance with section 735(c)(5)(B) of the Act, Commerce
may use ``any reasonable method to establish the estimated all-others
rate for exporters and producers not individually investigated,
including averaging the estimated weighted average dumping margins
determined for the exporters and producers individually investigated.''
In this investigation, Commerce has preliminarily determined the
estimated weighted-average dumping margin for Delandis, Far East Foam,
and Vision Foam entirely under section 776 of the Act. Therefore, in
the absence of another estimated weighted-average dumping margin on the
record of this investigation, as the all-others rate, we are
preliminarily assigning the sole dumping margin alleged in the
Petition, which is 42.92 percent. For a
[[Page 69575]]
full description of the methodology underlying Commerce's analysis, see
the Preliminary Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Delandis Furniture (M) Sdn Bhd.............................. 42.92
Far East Foam Industries Sdn Bhd............................ 42.92
Vision Foam Ind. Sdn Bhd.................................... 42.92
All Others.................................................. 42.92
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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
respondents 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
Normally, Commerce discloses to interested parties the calculations
performed in connection with a 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 the notice of
preliminary determination in the Federal Register, in accordance with
19 CFR 351.224(b). However, because Commerce preliminarily applied
adverse facts available (AFA) to determine the estimated weighted-
average dumping margin for each of the individually examined companies,
i.e., Delandis, Far East Foam and Vision Foam, in this investigation,
in accordance with section 776 of the Act, and the applied AFA rate is
based solely on the Petition, there are no calculations to disclose.
Verification
Because the examined respondents in this investigation did not
provide information requested by Commerce, and Commerce preliminarily
determines each of the examined respondents to have been uncooperative,
we will not conduct verification.
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. Note that Commerce
has modified certain of its requirements for serving documents
containing business proprietary information until further notice.\8\
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 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 16, 2020, pursuant to 19 CFR 351.210(e), Far East Foam
requested that Commerce postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\9\ 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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\9\ See Far East Foam's Letter, ``Antidumping Duties on Imports
of Mattresses from Malaysia: Request to Extend Final
Determination,'' dated October 16, 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 preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date 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).
[[Page 69576]]
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. Application of Facts Available and Use of Adverse Inference
V. Recommendation
[FR Doc. 2020-24298 Filed 11-2-20; 8:45 am]
BILLING CODE 3510-DS-P