[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]


-----------------------------------------------------------------------

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/.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \7\ See Commerce's Letter, ``Antidumping Duty Investigation of 
Mattresses from Indonesia: Supplemental Questionnaire in Lieu of On-
Site Verification,'' dated January 19, 2021.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \11\ See Issues and Decision Memorandum at Comment 8 for a 
complete discussion and analysis.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

Final Determination

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

------------------------------------------------------------------------
                                                           Estimated
                                                       weighted-average
           Producer                   Exporter          dumping margin
                                                           (percent)
------------------------------------------------------------------------
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.
------------------------------------------------------------------------
                 Vietnam-wide entity                              668.38
------------------------------------------------------------------------

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