[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15928-15930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06191]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-841]


Mattresses From Thailand: 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 
mattresses from Thailand 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.

DATES: Applicable March 25, 2021.

FOR FURTHER INFORMATION CONTACT: Paola Aleman Ordaz, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4031.

SUPPLEMENTARY INFORMATION:

Background

    On November 3, 2020, Commerce published in the Federal Register its 
preliminary affirmative determination in the LTFV investigation of 
mattresses from Thailand, in which we also postponed the final 
determination until March 18, 2021.\1\ A summary of the events that 
occurred since Commerce published the Preliminary Determination, as 
well as a full discussion of the issues raised by parties for this 
final determination, may be found in the Issues and Decision 
Memorandum.\2\ The Issues and 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/.
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    \1\ See Mattresses from Thailand: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Postponement of 
Final Determination, and Extension of Provisional Measures, 85 FR 
69568 (November 3, 2020) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Less-Than-Fair-Value Investigation of 
Mattresses from Thailand,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are mattresses from 
Thailand. For a full description of the scope of this investigation, 
see Appendix I of 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.\3\ Certain interested parties commented on the scope of the 
investigation as it appeared in the Preliminary Scope Decision 
Memorandum, unchanged from the Initiation Notice.\4\ 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.\5\ 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 Appendix I to this notice.
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    \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: Scope 
Comments Decision Memorandum for the Preliminary Determination,'' 
dated October 27, 2020 (Preliminary Scope Decision Memorandum).
    \4\ 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).
    \5\ 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 Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this investigation are addressed in the Issues 
and Decision Memorandum. For a list of these issues, see Appendix II.

Verification

    As stated in the Preliminary Determination, Commerce preliminary 
relied upon total adverse facts available (AFA), pursuant to section 
776(a) and (b) of the Tariff Act of 1930, as amended (the Act), in 
determining the weighted-average dumping margins for both mandatory 
respondents in this investigation, Nisco (Thailand) Co., Ltd. (Nisco) 
and Saffron Living Co., Ltd. (Saffron). Accordingly, we did not

[[Page 15929]]

conduct verification under section 782(i) of the Act.\6\
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    \6\ See Preliminary Determination.
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    For the purposes of this final determination, Commerce is relying 
on information submitted by Saffron, and applying partial, rather than 
total, AFA to Saffron.\7\ Because Commerce was unable to conduct on-
site verification of the information relied upon in making its final 
determination in this investigation, pursuant to section 776(a)(2)(D) 
of the Act, we have relied upon the information submitted on the record 
as facts available in making our final determination.
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    \7\ See Issues and Decisions Memorandum.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
interested parties, we made certain changes to the margin calculations 
for Saffron. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Use of Adverse Facts Available

    Nisco failed to cooperate in this investigation.\8\ Therefore, in 
the Prelminary Determination, pursuant to sections 776(a)(1), 
776(a)(2)(A)-(C), and 776(b) of the Act, we assigned Nisco an estimated 
weighted-average dumping margin based on AFA. No parties filed comments 
concerning the Preliminary Determination with respect to Nisco, 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 total AFA pursuant to sections 776(a) and (b) 
of the Act is warranted with respect to Nisco. In applying total AFA, 
we continue to determine an estimated weighted-average dumping margin 
for Nisco of 763.28 percent, the highest dumping margin alleged in the 
Petition,\9\ and which Commerce corroborated to the extent practicable 
within the meaning of section 776(c) of the Act.\10\
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    \8\ See Preliminary Determination PDM at 8-10.
    \9\ See Initiation Notice; see also Checklist, ``Antidumping 
Duty Investigation Checklist,'' dated April 20, 2020 (Initiation 
Checklist).
    \10\ See Preliminary Determination PDM at 8-10.
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    In the Preliminary Determination, Commerce determined that Saffron 
significantly impeded this investigation and failed to cooperate to the 
best of its ability through its participation in a scheme to evade the 
payment of cash deposits, and (in part) on that basis applied total AFA 
to Saffron.\11\ As discussed in the accompanying Issues and Decision 
Memorandum, we continue to find that the application of AFA to Saffron 
is warranted with respect to its participation in that scheme. However, 
for this final determination, Commerce is applying partial, rather than 
total, AFA to Saffron. Specifically, as partial AFA, we have applied 
the highest petition dumping margin of 763.28 percent only to the sales 
of mattresses affected by Saffron's scheme to misrepresent the true 
producers of certain mattresses to avoid payment of cash deposits, 
weight averaged with the dumping margin calculated for Saffron's other 
sales using the reported data.\12\
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    \11\ See Memorandum, ``Preliminary Results Memorandum: 
Application of Adverse Facts Available to Saffron Living Co., 
Ltd.,'' dated October 27, 2020 at 4.
    \12\ See Memorandum, ``Final Determination Analysis Memorandum 
for Saffron Living Co., Ltd.,'' dated concurrently with this 
memorandum.
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All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, Commerce shall 
determine an estimated all-others rate for companies not individually 
examined. Generally, under section 705(c)(5)(A)(i) of the Act, this 
rate shall be an amount equal to the average of the estimated dumping 
rates established for those companies individually examined, excluding 
any zero and de minimis rates and any rates based entirely under 
section 776 of the Act. However, section 705(c)(5)(A)(ii) of the Act 
provides that if the antidumping rates established for all companies 
individually examined are zero or de minimis rates, or are determined 
entirely under section 776 of the Act, then Commerce may use ``any 
reasonable method'' to establish an all others rate.
    As explained above, the sole estimated weighted-average dumping 
margin calculated for Saffron is based entirely on facts available. In 
the specific circumstances of this case, we find that a reasonable 
method to determine the all-others rate under section 735(c)(5)(B) of 
the Act here is to apply Saffron's individual estimated antidumping 
rate as the all-others rate for companies not individually examined.

Final Determination

    Commerce determines that the weighted-average dumping margins are 
as follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Nisco (Thailand) Co., Ltd...................................      763.28
Saffron Living Co., Ltd.....................................       37.48
All Others..................................................       37.48
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Disclosure

    We intend to disclose the calculations performed in this final 
determination within five days of the date of publication of this 
notice to parties in the proceeding, in accordance with 19 CFR 351.224 
(b).

Continuation of Suspension of Liquidation

    In accordance with section 733(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of entries of subject merchandise, as described in 
Appendix I, entered, or withdrawn from warehouse, for consumption on or 
after November 3, 2020, the date of the 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), we will instruct CBP to require a cash deposit for entries 
of subject merchandise equal to the estimated weighted-average dumping 
margin or the estimated all-others rate, 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 all-others estimated weighted-average dumping margin. 
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 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding 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

[[Page 15930]]

material injury, by reason of imports of mattresses from Thailand no 
later than 45 days after this final determination. If the ITC 
determines that material injury, or threat of material injury, does not 
exit, the proceeding will be terminated, and all cash deposits will be 
refunded. If the ITC determines that such injury does exist, Commerce 
will issue an AD duty order directing CBP to assess, upon further 
instruction by Commerce, AD 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.

Notification Regarding Administrative Protective Order (APO)

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

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Discussion of the Issue
    Comment: Whether Commerce Lawfully Applied Facts Available and 
Adverse Facts Available
VI. Recommendation

[FR Doc. 2021-06191 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P