[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15889-15892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06194]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-827]
Mattresses From the Socialist Republic of Vietnam: 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 the Socialist Republic of Vietnam (Vietnam) are
being, or are likely to be, sold in the United States at less than fair
value (LTFV). The period of investigation (POI) is July 1, 2019,
through December 31, 2019.
DATES: Applicable March 25, 2021.
FOR FURTHER INFORMATION CONTACT: Stephen Bailey or Dakota Potts, 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) 482-0193 or (202) 482-0223,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 3, 2020, Commerce published the Preliminary
Determination in the LTFV investigation of mattresses from Vietnam, in
which we also postponed the final determination until March 18,
2021.\1\ 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'')
(collectively, the petitioners). The mandatory respondents in this
investigation are Wanek Furniture Co., Ltd., Millennium Furniture Co.,
Ltd., and Comfort Bedding Co., Ltd. (collectively, Ashley Group) and
Vietnam Glory Home Furnishings Co., Ltd. and Glory (Viet Nam) Industry
Co., Ltd. (collectively, Vietnam Glory). We invited interested parties
to comment on the Preliminary Determination.\2\ A summary of the events
that occurred since Commerce published the Preliminary Determination
may be found in the Issues and Decision Memorandum.\3\ 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 http://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 the Socialist Republic of Vietnam:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures, 85 FR 69591 (November 3, 2020) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(Preliminary Decision Memorandum).
\2\ Id.
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Mattresses from the Socialist Republic of
Vietnam,'' 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
Vietnam. For a full description of the scope of this investigation, see
the ``Scope of the Investigation,'' at 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.\4\ Certain interested parties commented on the scope of the
investigation as it appeared in the Preliminary Scope Decision
Memorandum, unchanged from the Initiation Notice.\5\ For a summary of
the product coveragecomments 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.\6\ In the Final
[[Page 15890]]
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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\4\ SeeMemorandum, ``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).
\5\ 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).
\6\ 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 that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice at Appendix II.
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).\7\
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\7\ See Commerce's Letter, ``Antidumping Duty Investigation of
Mattresses from Indonesia: Supplemental Questionnaire in Lieu of On-
Site Verification,'' dated January 19, 2021.
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Methodology
Commerce conducted this investigation in accordance with section
731 of the Act. Export price was calculated in accordance with section
772(a) of the Act. Constructed export price was calculated in
accordance with section 772(b) of the Act. Because Vietnam is a non-
market economy within the meaning of section 771(18) of the Act, normal
value was calculated in accordance with section 773(c) of the Act. For
a full description of the methodology underlying Commerce's
determination, see the Preliminary Decision Memorandum; see also the
Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our analysis of the comments received and the information
received in lieu of on-site verification, we made certain changes to
the margin calculation for Ashley Group. For a discussion of these
changes, see the Issues and Decision Memorandum.
Vietnam-Wide Entity and Use of Adverse Facts Available
For the reasons explained in the Preliminary Determination, we
continue to find that the use of adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act, is warranted in
determining the rate for the mandatory respondent, Vietnam Glory, and
for the Vietnam-wide entity. In selecting the AFA rate for Vietnam
Glory and the Vietnam-wide entity, Commerce's practice is to select a
rate that is sufficiently adverse to ensure that the uncooperative
party does not obtain a more favorable result by failing to cooperate
than if it had fully cooperated.\8\ For the final determination, we are
unable to corroborate the two highest dumping margins calculated in the
petition, i.e., 989.90 and 686.59 percent. However, we are able to
corroborate the third highest margin calculated in the petition, i.e.,
668.38 percent, by examining the U.S. price and normal value that are
the basis of the dumping margins alleged in the petition compared to
the U.S. prices reported by Ashley Group and the normal values
calculated for Ashley Group in this investigation. For the final
determination, we are assigning Vietnam Glory and the Vietnam-wide
entity, as AFA, the highest dumping margin calculated in the petition
which we are able to corroborate using the component method and Ashley
Group's record data, a dumping margin of 668.38 percent. For further
discussion, see the Issues and Decision Memorandum at ``Use of Adverse
Facts Available'' \9\ and the proprietary memorandum accompanying the
Issues and Decision Memorandum for a full proprietary analysis.\10\
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\8\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination:
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December
27, 2004), unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland,
70 FR 28279 (May 17, 2005).
\9\ See Issues and Decision Memorandum.
\10\ See Memorandum, ``Corroboration of the Adverse Facts
Available Rate for the Final Determination in the Less-Than-Fair-
Value Investigation of Mattresses from the Socialist Republic of
Vietnam,'' dated concurrently with, and hereby adopted by, this
notice.
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Separate Rates
We received one comment about our decision in the Preliminary
Determination to grant separate rate status to 11 companies, including
Ashley Group and Vietnam Glory. However, we have not changed our
decision from the Preliminary Determination for the final
determination.\11\ The exporters granted separate rate status in this
final determination are listed in the table in the ``Final
Determination'' section of this notice. We continue to assign the
estimated weighted-average dumping margin for Ashley Group to the
exporters not individually examined that are entitled to a separate
rate. The companies denied a separate rate will be treated as part of
the Vietnam-wide entity.
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\11\ See Issues and Decision Memorandum at Comment 8 for a
complete discussion and analysis.
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Combination Rates
As explained in the Initiation Notice and implemented in the
Preliminary Determination, we have continued to calculate producer/
exporter combination rates for the respondents that are eligible for a
separate rate.\12\ Policy Bulletin 05.1 describes this practice.\13\
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\12\ See Initiation Notice; see also Preliminary Determination.
\13\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
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Estimated
weighted-average
Producer Exporter dumping margin
(percent)
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Cong Ty Tnhn Nem Thien Kim Dockter China Limited 144.92
(a.k.a. Better Z's, Ltd.).
Hava's Co., Ltd.............. Hava's Co., Ltd...... 144.92
Cong Ty Tnhn Nem Thien Kim Healthcare Sleep 144.92
(a.k.a. Better Z's, Ltd.). Products Limited.
Gesin Vietnam Co., Ltd....... Hong Kong Gesin 144.92
Technology Limited.
Sinomax (Vietnam) Household Sinomax International 144.92
Products Limited. Trading Limited.
Sinomax (Vietnam) Household Sinomax Macao 144.92
Products Limited. Commercial Offshore
Limited.
Super Foam Vietnam Ltd....... Super Foam Vietnam 144.92
Ltd.
[[Page 15891]]
Taimei Company Limited Taimei Company 144.92
(a.k.a. Taimei Co., Ltd). Limited (a.k.a.
Taimei Co., Ltd).
Tong Li Vietnam Industrial Tong Li Vietnam 144.92
Co., LTD. Industrial Co., LTD.
Vietnam Glory Home Vietnam Glory Home 668.38
Furnishings Co., Ltd./Glory Furnishings Co.,Ltd./
(Viet Nam) Industry Co., Ltd. Glory (Viet Nam)
Industry Co., Ltd.
Wanek Furniture Co., Ltd./ Wanek Furniture Co., 144.92
Millennium Furniture Co., Ltd./Millennium
Ltd./Comfort Bedding Company Furniture Co., Ltd./
Limited. Comfort Bedding
Company Limited.
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Vietnam-wide entity 668.38
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Disclosure
We intend to disclose to interested parties under Administrative
Protective Order (APO), the calculations performed in connection with
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 the notice of final determination in the Federal
Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of mattresses from
Indonesia, as described in Appendix I of this notice, which are
entered, or withdrawn from warehouse, for consumption on or after
November 3, 2020, the date of publication of the Preliminary
Determination in the Federal Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon publication of this notice, Commerce will instruct CBP
to require a cash deposit for estimated antidumping duties for such
entries as follows: (1) for the exporter/producer combinations listed
in the table above, the cash deposit rate is equal to the estimated
weighted-average dumping margin listed for that combination in the
table; (2) for all combinations of Vietnamese exporters/producers not
listed in the above table, the cash deposit rate is equal to the
estimated weighted-average dumping margin listed in the table for the
Vietnam-wide entity; and (3) for all non-Vietnamese exporters not
listed in the table above, the cash deposit rate is equal to the cash
deposit rate applicable to the Vietnamese exporter/producer combination
(or the Vietnam-wide entity) that supplied that non-Vietnamese
exporter.
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 the 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 subject mattresses, 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 deposited for
antidumping duties 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 APO
This notice serves as a reminder to the parties subject to 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 the return or destruction
of APO materials or, alternatively, conversion to judicial protective
order, is hereby requested. Failure to comply with the regulations and
terms of an APO is a violation that is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to 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
[[Page 15892]]
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. Use of Adverse Facts Available
V. Changes Since the Preliminary Determination
VI. Discussion of the Issues
Comment 1: Whether to Continue to Apply Total AFA to Vietnam
Glory
Comment 2: Whether to Continue to Use Emirates Sleep Financial
Statements to Calculate Surrogate Financial Ratios
Comment 3: Whether to Continue to Use Indian Harmonized Tariff
Schedule (HTS) Code 9404.20.90 to Value Innerspring Units
Comment 4: Whether to Base Prices for Sleeper Sofa Mattresses on
Market Values
Comment 5: Surrogate Value (SV) Classification of Certain Ashley
Group Inputs
Comment 6: SAS Programming Errors for U.S. Sales Expenses
Related to Sleeper Sofa Mattresses
Comment 7: SAS Programming Errors for Ocean Freight, Marine
Insurance, Brokerage and Handling, and Packing Glue
Comment 8: Whether Commerce Should Include Ashley Furniture
Industries (AFI) and Ashley Furniture Trading Company (AFTC) in
Ashley Group's Combination Cash Deposit Rate
VII. Recommendation
[FR Doc. 2021-06194 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P