[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15892-15894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06192]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-801-002]


Mattresses From Serbia: Final Affirmative Determination of Sales 
at Less Than Fair Value, and Final Negative Finding of Critical 
Circumstances

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of mattresses from Serbia are being, or are likely to be, sold in the 
United States at less than fair value (LTFV) during the period of 
investigation January 1, 2019, through December 31, 2019.

DATES: Applicable March 25, 2021.

FOR FURTHER INFORMATION CONTACT: Joshua DeMoss, AD/CVD Operations, 
Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3362, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 3, 2020, Commerce published the Preliminary 
Determination of sales at LTFV of mattresses from Serbia, in which we 
also postponed the final determination to March 18, 2021.\1\ We invited 
interested parties to comment on the Preliminary Determination. The 
mandatory respondent in this investigation is Healthcare Europe DOO 
Ruma (Healthcare). For a complete description of the events that 
followed the Preliminary Determination, see 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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Mattresses from Serbia: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Preliminary Negative 
Determination of Critical Circumstances, Postponement of Final 
Determination, and Extension of Provisional Measures, 85 FR 69589 
(November 3, 2020) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Mattresses from Serbia,'' 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 
Indonesia. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation'' in Appendix I.

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

[[Page 15893]]

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 by parties in 
this investigation are discussed in the Issues and Decision Memorandum. 
A list of topics included in the Issues and Decision Memorandum is 
included as Appendix II to this notice.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\6\
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    \6\ See Commerce's Letter, Questionnaire In-Lieu-of-Onsite-
Verification, dated February 3, 2021; see also Healthcare's Letter, 
``Investigation of Mattresses from Serbia: Healthcare's Response to 
the Department's Questionnaire in Lieu of On-Site Verification,'' 
dated February 11, 2021.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received, we made certain 
changes to the margin calculations for Healthcare. For a complete 
discussion of these changes, see the Issues and Decision Memorandum. We 
have also revised the all-others rate.

Final Negative Determination of Critical Circumstances

    Commerce preliminarily determined that critical circumstances did 
not exist with respect to imports of mattresses from Healthcare and 
that critical circumstances did not exist with respect to all other 
exporters or producers not individually examined.\7\ We have not 
modified our critical circumstances finding for Healthcare for the 
final determination. Thus, pursuant to section 735(a)(3) of the Act, we 
find that critical circumstances do not exist with respect to imports 
of mattresses from Serbia. For a full description of the methodology 
and results of Commerce's critical circumstances analysis, see the 
Issues and Decision Memorandum.
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    \7\ See Preliminary Determination, 85 FR at 69589, and 
accompanying PDM at 5-7.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others 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 any zero or de 
minimis margins, and margins determined entirely under section 776 of 
the Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for Healthcare, the only individually examined exporter/
producer in this investigation. Because the only individually 
calculated dumping margin is not zero, de minimis, or based entirely on 
facts otherwise available, the estimated weighted-average dumping 
margin calculated for Healthcare is the margin assigned to all other 
producers and exporters, pursuant to section 735(c)(5)(A) of the Act.

Final Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Healthcare Europe DOO Ruma..................................      112.11
All Others..................................................      112.11
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Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed for this final determination within five days of any public 
announcement or, if there is no public announcement, within five days 
of the date of publication of this notice in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to continue to suspend 
liquidation of all entries of mattresses from Serbia, as described in 
Appendix I of this notice, which were entered, or withdrawn from 
warehouse, for consumption on or after November 3, 2020, the date of 
publication of the affirmative Preliminary Determination in the Federal 
Register.
    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 equal 
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for the company 
listed above will be equal to the company-specific estimated weighted-
average dumping margin 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 
International Trade Commission (ITC) of the final affirmative 
determinations 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 determinations 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 Serbia no later than 45 days 
after our final determination. If the ITC determines that such injury 
does not exist, these proceedings will be terminated, and all cash 
deposits will be refunded. If the ITC determines that such injury does 
exist, Commerce will issue antidumping duty orders 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

[[Page 15894]]

date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a final 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 written 
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. Final Negative Determination of Critical Circumstances
V. Changes Since the Preliminary Determination
VI. Discussion of the Issues
    Comment 1: Whether Commerce's Application of the Major Input and 
Transactions Disregarded Rule Is Unreasonable and Flawed
    Comment 2: Whether Commerce Should Continue to Find Healthcare 
and EverRest are Affiliated
    Comment 3: Whether Commerce Appropriately Initiated an MNC 
Provision Inquiry
    Comment 4: Whether Commerce Appropriately Denied Healthcare's 
Level of Trade Adjustment
VII. Recommendation

[FR Doc. 2021-06192 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P