[Federal Register Volume 86, Number 29 (Tuesday, February 16, 2021)]
[Notices]
[Pages 9484-9486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03150]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-118]


Wood Mouldings and Millwork Products From the People's Republic 
of China: Countervailing Duty Order

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

SUMMARY: Based on the affirmative final determinations by the 
Department of Commerce (Commerce) and the International Trade 
Commission (ITC), Commerce is issuing its countervailing duty order on 
wood mouldings and millwork products (millwork products) from the 
People's Republic of China (China).

DATES: Applicable February 16, 2021.

FOR FURTHER INFORMATION CONTACT: Irene Gorelik or Faris Montgomery, 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) 482-6905 or (202) 
482-1537, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2021, Commerce published its Final Determination in 
the countervailing duty investigation of millwork products from 
China.\1\ On February 10, 2021, the ITC notified Commerce of its final 
determination, pursuant to sections 705(b)(1)(A)(i) and 705(d) of the 
Tariff Act of 1930, as amended (the Act), that an industry in the 
United States is materially injured by reason of subsidized imports of 
millwork products from China.\2\
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    \1\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Final Affirmative Countervailing Duty 
Determination, 86 FR 67 (January 4, 2021) (Final Determination).
    \2\ See ITC Notification Letter, Investigations, Inv. Nos. 701-
TA-636 and 731-TA-1470 (Final) (February 10, 2021).
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Scope of the Order

    The products covered by this order are millwork products from 
China. For a full description of the scope of this order, see the 
appendix to this notice.

Countervailing Duty Order

    On February 10, 2021, in accordance with sections 705(b)(1)(A)(i) 
and 705(d) of the Act, the ITC notified Commerce of its final 
determination in this investigation, in which it found that an industry 
in the United States is materially injured by reason of

[[Page 9485]]

subsidized imports of millwork products from China.\3\ In accordance 
with section 705(c)(2) of the Act, Commerce is issuing this 
countervailing duty order.
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    \3\ Id.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties on unliquidated 
entries of millwork products from China entered, or withdrawn from 
warehouse, for consumption on or after June 12, 2020, the date on which 
Commerce published its preliminary countervailing duty determination in 
the Federal Register,\4\ and before October 10, 2020, the effective 
date on which Commerce instructed CBP to discontinue the suspension of 
liquidation, in accordance with section 703(d) of the Act. Section 
703(d) of the Act states that the suspension of liquidation pursuant to 
an affirmative preliminary determination may not remain in effect for 
more than four months. Therefore, entries of millwork products from 
China made on or after October 10, 2020, and prior to the date of 
publication of the ITC's final determination in the Federal Register, 
are not subject to the assessment of countervailing duties due to 
Commerce's discontinuation of the suspension of liquidation.
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    \4\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination with Final 
Antidumping Duty Determination, 85 FR 35900 (June 12, 2020) 
(Preliminary Determination).
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation of millwork products from 
China, effective the date of publication of the ITC's notice of final 
determination in the Federal Register, and to assess, upon further 
instruction by Commerce pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates for the subject 
merchandise. On or after the date of publication of the ITC's final 
injury determination in the Federal Register, CBP must require, at the 
same time as importers would deposit estimated normal customs duties on 
this merchandise, a cash deposit equal to the subsidy rates noted 
below. These instructions suspending liquidation will remain in effect 
until further notice. The all-others rate applies to all producers or 
exporters not specifically listed below.
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    \5\ As discussed in the Preliminary Determination, Commerce 
found that Fujian Province Youxi City Mangrove Wood Machining Co., 
Ltd.; Fujian Province Youxi City Mangrove Wood Machining Co., Ltd.; 
and Xicheng Branch are cross-owned affiliates of mandatory 
respondent Fujian Yinfeng Imp & Exp Trading Co., Ltd. See 
Preliminary Determination, 85 FR at 35901, unchanged in the Final 
Determination.

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                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Fujian Yinfeng Imp & Exp Trading Co., Ltd \5\...............       20.56
Fujian Nanping Yuanqiao Wood Industry Co., Ltd..............      252.29
All Others..................................................       20.56
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Provisional Measures

    Section 703(d) of the Act states that the suspension of liquidation 
pursuant to an affirmative preliminary determination may not remain in 
effect for more than four months. In the underlying investigation, 
Commerce published the Preliminary Determination on June 12, 2020.\6\ 
Therefore, entries of millwork products from China made on or after 
October 10, 2020, and prior to the date of publication of the ITC's 
final determination in the Federal Register, are not subject to the 
assessment of countervailing duties due to Commerce's discontinuation 
of the suspension of liquidation.
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    \6\ See Preliminary Determination.
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    In accordance with section 703(d) of the Act, Commerce instructed 
CBP to terminate the suspension of liquidation and to liquidate, 
without regard to countervailing duties, unliquidated entries of 
millwork products from China entered, or withdrawn from warehouse, for 
consumption on or after October 10, 2020, the date on which the 
provisional countervailing duty measures expired, through the day 
preceding the date of publication of the ITC final injury determination 
in the Federal Register. Suspension of liquidation will resume on the 
date of publication of the ITC final injury determination in the 
Federal Register.

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to millwork products from China pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: February 10, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The merchandise subject to this order consists of wood mouldings 
and millwork products that are made of wood (regardless of wood 
species), bamboo, laminated veneer lumber (LVL), or of wood and 
composite materials (where the composite materials make up less than 
50 percent of the total merchandise), and which are continuously 
shaped wood or finger-jointed or edge-glued moulding or millwork 
blanks (whether or not resawn). The merchandise subject to this 
order can be continuously shaped along any of its edges, ends, or 
faces.
    The percentage of composite materials contained in a wood 
moulding or millwork product is measured by length, except when the 
composite material is a coating or cladding. Wood mouldings and 
millwork products that are coated or clad, even along their entire 
length, with a composite material, but that are otherwise comprised 
of wood, LVL, or wood and composite materials (where the non-coating 
composite materials make up 50 percent or less of the total 
merchandise) are covered by the scope.
    The merchandise subject to this order consists of wood, LVL, 
bamboo, or a combination of wood and composite materials that is 
continuously shaped throughout its length (with the exception of any 
endwork/dados), profiled wood having a repetitive design in relief, 
similar milled wood architectural accessories, such as rosettes and 
plinth blocks, and finger-jointed or edge-glued moulding or millwork 
blanks (whether or not resawn). The scope includes continuously 
shaped wood in the forms of dowels, building components such as 
interior paneling and jamb parts, and door components such as rails, 
stiles, interior and exterior door frames or jambs (including split, 
flat, stop applied, single- or double-rabbeted), frame or jamb kits, 
and packaged door frame trim or casing sets, whether or not the door 
components are imported as part of a door kit or set.
    The covered products may be solid wood, laminated, finger-
jointed, edge-glued, face-glued, or otherwise joined in the 
production or remanufacturing process and are covered by the scope 
whether imported raw, coated (e.g., gesso, polymer, or plastic), 
primed, painted, stained, wrapped (paper or vinyl overlay), any 
combination of the aforementioned surface coatings, treated, or 
which incorporate rot-resistant elements (whether wood or 
composite). The covered products are covered by the scope whether or 
not any surface coating(s) or covers obscure the grain, textures, or 
markings of the wood, whether or not they are ready for use or 
require final machining (e.g., endwork/dado, hinge/strike machining, 
weatherstrip or application thereof, mitre) or packaging.

[[Page 9486]]

    All wood mouldings and millwork products are included within the 
scope even if they are trimmed; cut-to-size; notched; punched; 
drilled; or have undergone other forms of minor processing.
    Subject merchandise also includes wood mouldings and millwork 
products that have been further processed in a third country, 
including but not limited to trimming, cutting, notching, punching, 
drilling, coating, or any other processing that would not otherwise 
remove the merchandise from the scope of this order if performed in 
the country of manufacture of the in-scope product.
    Excluded from the scope of this order are countertop/
butcherblocks imported as a full countertop/butcherblock panel, 
exterior fencing, exterior decking and exterior siding products 
(including solid wood siding, non-wood siding (e.g., composite or 
cement), and shingles) that are not LVL or finger jointed; finished 
and unfinished doors; flooring; parts of stair steps (including 
newel posts, balusters, easing, gooseneck, risers, treads, rail 
fittings and stair stringers); picture frame components three feet 
and under in individual lengths; and lumber whether solid, finger-
jointed, or edge-glued. To be excluded from the scope, finger-
jointed or edge-glued lumber must have a nominal thickness of 1.5 
inches or greater and a certification stamp from an American Lumber 
Standard Committee-certified grading agency. The exclusion for 
lumber whether solid, finger-jointed, or edge-glued does not apply 
to screen/''surfaced on 4 sides'' (S4S) and/or ``surface 1 side, 2 
edges'' (SlS2E) stock (also called boards) that are finger-jointed 
and/or edge-glued, or to finger-jointed and/or edge-glued moulding 
or millwork blanks (whether or not resawn). Accordingly, S4S and 
S1S2E stock/boards that are not finger-jointed or edge-glued are 
excluded from the scope of this order.
    Excluded from the scope of this order are all products covered 
by the scope of the countervailing duty order on Hardwood Plywood 
from the People's Republic of China. See Certain Hardwood Plywood 
Products from the People's Republic of China: Countervailing Duty 
Order, 83 FR 513 (January 4, 2018).
    Excluded from the scope of this order are all products covered 
by the scope of the countervailing duty order on Multilayered Wood 
Flooring from the People's Republic of China. See Multilayered Wood 
Flooring from the People's Republic of China: Countervailing Duty 
Order, 76 FR 76693 (December 8, 2011).
    Excluded from the scope of this order are all products covered 
by the scope of the countervailing duty order on Wooden Cabinets and 
Vanities from the People's Republic of China. See Wooden Cabinets 
and Vanities and Components Thereof from the People's Republic of 
China: Countervailing Duty Order, 85 FR 22134 (April 21, 2020).
    Imports of wood mouldings and millwork products are primarily 
entered under the following Harmonized Tariff Schedule of the United 
States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500, 
4409.10.5000, 4409.22.4000, 4409.22.5000,4409.29.4100, and 
4409.29.5100. Imports of wood mouldings and millwork products may 
also enter under HTSUS numbers: 4409.10.6000,4409.10.6500, 
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 
4418.20.4000, 4418.20.8030, 4418.20.8060, 4418.99.9095 and 
4421.99.9780. While the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of the order is dispositive.

[FR Doc. 2021-03150 Filed 2-12-21; 8:45 am]
BILLING CODE 3510-DS-P