[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15910-15912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06189]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-128]


Mattresses From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of mattresses from the People's Republic of China (China).

DATES: Applicable March 25, 2021.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Mary Kolberg, AD/
CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2631 or (202) 
482-1785, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are 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). In 
addition to the Government of China, the selected mandatory respondents 
in this investigation are Kewei Furniture Co Ltd., Zinus Xiamen, Ningbo 
Megafeat Bedding Co., Ltd./Megafeat Bedding Co Ltd, and Healthcare Co. 
Ltd.
    On September 11, 2020, Commerce published in the Federal Register 
the Preliminary Determination of this investigation.\1\ In the 
Preliminary Determination, in accordance with section 705(a)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), 
Commerce aligned the final countervailing duty (CVD) determination in 
this investigation with the final antidumping duty (AD) determination 
in the companion AD investigations of mattresses from Cambodia, 
Indonesia, Malaysia, Serbia, Thailand, the Republic of Turkey, and the 
Socialist Republic of Vietnam. The revised deadline for the final 
determination of this investigation is now March 18, 2021. We received 
no comments regarding the Preliminary Determination, and, therefore, 
there is no unpublished Issues and Decision Memorandum accompanying 
this notice.
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    \1\ See Mattresses from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 85 FR 56216 (September 11, 2020) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The products covered by this investigation are mattresses from 
China. For a full description of the scope of this investigation, see 
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. Certain interested parties commented on the scope of the 
investigation as it appeared in the Preliminary Scope Decision 
Memorandum, unchanged from the Initiation Notice.\2\ 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.\3\ In the Final Scope Memorandum, Commerce

[[Page 15911]]

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 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).
    \3\ 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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Analysis of Subsidy Programs--Adverse Facts Available (AFA)

    For purposes of this final determination, we relied solely on facts 
available pursuant to section 776 of the Act, because neither the 
Government of China, nor any of the selected mandatory respondents, 
participated in this investigation. Further, because the mandatory 
respondents and the Government of China did not cooperate to the best 
of their abilities in responding to our requests for information in 
this investigation, we drew adverse inferences in selecting from among 
the facts otherwise available, in accordance with sections 776(a)-(b) 
of the Act. Therefore, consistent with the Preliminary 
Determination,\4\ we continue to apply AFA to the mandatory 
respondents. No interested party submitted comments on the Preliminary 
Determination. Thus, we made no changes to the subsidy rates for the 
final determination. A detailed discussion of our application of AFA is 
provided in the Preliminary Determination.\5\
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    \4\ See Preliminary Determination PDM at 6-17.
    \5\ Id.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
selection of the all-others rate on the countervailable subsidy rate 
established for the mandatory respondents, in accordance with section 
705(c)(5)(A)(ii) of the Act.\6\ We made no changes to the selection of 
the all-others rate for this final determination.
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    \6\ See Preliminary Determination, 85 FR at 56217.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Kewei Furniture Co Ltd......................................       97.78
Zinus Xiamen................................................       97.78
Ningbo Megafeat Bedding Co., Ltd./Megafeat Bedding Co Ltd...       97.78
Healthcare Co. Ltd..........................................       97.78
All Others..................................................       97.78
------------------------------------------------------------------------

Disclosure

    The subsidy rate calculations in the Preliminary Determination were 
based on AFA.\7\ As noted above, there are no changes to the 
calculations for the Final Determination. Thus, no additional 
disclosure is necessary for this final determination.
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    \7\ Id.
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise as described in the ``Scope of the Investigation'' 
section entered, or withdrawn from warehouse, for consumption, on or 
after September 11, 2020, which is the date of publication of the 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, effective January 9, 2021, we instructed CBP 
to discontinue the suspension of liquidation of all entries at that 
time, but to continue the suspension of liquidation of all entries from 
September 11, 2020 through January 8, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation and require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above, in accordance with section 706(a) of the Act. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated, and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of mattresses 
from China. Because the final determination in this proceeding is 
affirmative, in accordance with section 705(b) 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 of corrosion inhibitors from China no 
later than 45 days after our final determination. If the ITC determines 
that material injury or threat of material injury does not exist, this 
proceeding will be terminated and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a CVD order directing CBP to assess, upon further instruction by 
Commerce, countervailing duties on all imports of the subject 
merchandise that are 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 Order (APO)

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) 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 
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

[[Page 15912]]

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, gelinfused 
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. 2021-06189 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P