[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15901-15903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06187]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-818]


Mattresses From Malaysia: Final Affirmative Determination of 
Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of 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 is January 1, 2019, through December 31, 2019.

DATES: Applicable March 25, 2021.

FOR FURTHER INFORMATION CONTACT: Dennis McClure, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-5973.

SUPPLEMENTARY INFORMATION:

Background

    On November 3, 2020, Commerce published in the Federal Register the 
Preliminary Determination of sales at LTFV of mattresses from Malaysia 
and invited interested parties to comment.\1\ Commerce established a 
deadline of November 24, 2020 for the submission of case briefs in 
response to the Preliminary Determination. No case briefs were 
submitted. As no parties filed comments and no facts have changed, we 
have made no changes to the Preliminary Determination in this final 
determination, and, therefore, there is no unpublished Issues and 
Decision Memorandum accompanying this notice.
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    \1\ See Mattresses from Malaysia: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Postponement of 
Final Determination, and Extension of Provisional Measures, 85 FR 
69574-69575 (November 3, 2020) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
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Scope of the Investigation

    The products covered by this investigation are mattresses from 
Malaysia. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation,'' in the Appendix to this notice.

Scope Comments

    In Commerce's Preliminary Scope Decision Memorandum, we set aside a 
period of time for parties to raise issues regarding product coverage 
(i.e., scope) in scope case briefs or other written comments on scope 
issues.\2\ Certain interested parties commented on the scope of the 
investigation as it appeared in the Preliminary Scope Decision 
Memorandum, unchanged from the Initiation Notice.\3\ For a summary of 
the product coverage comments and rebuttal responses submitted to the 
record for this final determination, and accompanying discussion and 
analysis of all comments timely received, see the Final Scope 
Memorandum.\4\ In the Final Scope Memorandum, Commerce determined that 
it is not modifying the scope language as it appeared in the Initiation 
Notice. See the scope in the appendix to this notice.
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    \2\ 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,'' 
dated October 27, 2020 (Preliminary Scope Decision Memorandum).
    \3\ 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).
    \4\ 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: Final Scope 
Decision Memorandum,'' dated concurrently with, and hereby adopted 
by, this notice (Final Scope Memorandum).
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Verification

    As stated in the Preliminary Determination, two of the mandatory 
respondents, Delandis Furniture (M) Sdn Bhd (Delandis) and Vision Foam 
Ind. Sdn Bhd. (Vision Foam), did not participate in the investigation 
and a third mandatory respondent, Far East Foam Industries Sdn Bhd (Far 
East Foam), discontinued its participation in the investigation.\5\ 
Accordingly, Commerce based the Preliminary Determination on total 
adverse facts available (AFA), and did not conduct verification under 
section 782(i) of the Tariff Act of 1930, as amended (the Act).
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    \5\ See Preliminary Determination PDM at 5-10.
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Use of Adverse Facts Available

    The mandatory respondents Delandis, Vision Foam, and Far East Foam 
failed to cooperate in this investigation.\6\ Therefore, in the 
Preliminary Determination, pursuant to sections 776(a)(1), 
776(a)(2)(A)-(C), and 776(b) of the Act, we assigned to Delandis, 
Vision Foam and Far East Foam an estimated

[[Page 15902]]

weighted-average dumping margin based on AFA. No parties filed comments 
concerning the Preliminary Determination with respect to these 
companies, and there is no new information on the record that would 
cause us to revisit the Preliminary Determination. Accordingly, we 
continue to find that the application of AFA pursuant to sections 
776(a) and (b) of the Act is warranted with respect to Delandis, Vision 
Foam, and Far East Foam. In applying total AFA, we continue to 
determine an estimated weighted-average dumping margin for Delandis, 
Vision Foam, and Far East Foam of 42.92 percent, the highest dumping 
margin alleged in the Petition, which is the only dumping margin 
information on the record of this investigation,\7\ and which Commerce 
corroborated to the extent practicable within the meaning of section 
776(c) of the Act.\8\ In applying total AFA, we continue to determine 
an estimated weighted-average dumping margin for Delandis, Vision Foam, 
and Far East Foam of 42.92 percent, the highest dumping margin alleged 
in the Petition, which is the only dumping margin information on the 
record of this investigation,\9\ and which Commerce corroborated to the 
extent practicable within the meaning of section 776(c) of the Act.\10\
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    \6\ Id.
    \7\ See Petitioners' Letter, ``Mattresses from Cambodia, China, 
Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Antidumping and Countervailing Duty Petitions,'' dated March 31, 
2020; see also Petitioners' Letter, ``Mattresses from Cambodia, 
China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam: 
Responses to Petition Second Supplemental Questionnaires,'' dated 
April 13, 2020 (collectively, Petition). The petitioners are 
Brooklyn Bedding; Corsicana Mattress Company; Elite Comfort 
Solutions; Future Foam Inc.; 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).
    \8\ See Preliminary Determination PDM at 8-10.
    \9\ See Petition.
    \10\ See Preliminary Determination PDM at 8-10.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
estimated weighted-average dumping margin for all other producers and 
exporters on the only dumping margin alleged in the Petition,\11\ in 
accordance with section 735(c)(5)(B) of the Act. We made no changes to 
this rate for this final determination.
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    \11\ See Petition; see also Preliminary Determination, 85 FR at 
69574.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
                  Exporter or 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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Disclosure

    The estimated weighted-average dumping margins assigned to the 
mandatory respondents in this investigation in the Preliminary 
Determination are based on AFA. As these rates are based on information 
from the Petition, unchanged from the Preliminary Determination. 
Accordingly, there are no calculations to disclose for this final 
determination.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of mattresses from 
Malaysia, as described in the Appendix to this notice, which are 
entered, or withdrawn from warehouse, for consumption on or after 
November 3, 2020, the date of publication in the Federal Register of 
the affirmative Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), Commerce will instruct CBP to require a cash deposit for 
such entries of merchandise for estimated antidumping duties, as 
follows: (1) The cash deposit rate for the respondents listed above 
will be equal to the company-specific estimated weighted-average 
dumping margins determined in this final 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 estimated weighted-average 
dumping margin for all other producers and exporters.
    These suspension-of-liquidation instructions will remain in effect 
until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of mattresses from Malaysia, no later than 45 
days after this final determination. If the ITC determines that such 
injury does not exist, this proceeding will be terminated and all cash 
deposits posted will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or destruction of APO materials, or conversion to judicial 
protective order, is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: March 18, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

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

[[Page 15903]]

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); Antidumping 
Duty Order: 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.

[FR Doc. 2021-06187 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P