[Federal Register Volume 86, Number 56 (Thursday, March 25, 2021)]
[Notices]
[Pages 15899-15901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06195]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-560-836]


Mattresses From Indonesia: 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 Indonesia are being, or are likely to be, sold in 
the United States at less than fair value (LTFV) for the period of 
investigation January 1, 2019, through December 31, 2019.

DATES: Applicable March 25, 2021.

FOR FURTHER INFORMATION CONTACT: Janae Martin or Brian Smith, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-0238 or (202) 
482-1766, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 3, 2020, Commerce published the Preliminary 
Determination in the LTFV investigation of mattresses from Indonesia, 
in which we also postponed the final determination until March 18, 
2021.\1\ We invited interested parties to comment on the Preliminary 
Determination. A summary of the events that occurred since Commerce 
published the Preliminary 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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html.
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    \1\ See Mattresses from Indonesia: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Postponement of 
Final Determination, and Extension of Provisional Measures, 85 FR 
69597 (November 3, 2020) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Mattresses from Indonesia,'' 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 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 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 Appendix I.
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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 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 provided in 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).\6\
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    \6\ 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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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
interested parties, we made adjustments to PT Zinus Global Indonesia's 
(Zinus) cost of production and U.S. sales prices. For a discussion of 
these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. Commerce calculated an individual estimated weighted-average 
dumping margin for Zinus, 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 Zinus is the margin assigned to all other 
producers and

[[Page 15900]]

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)
------------------------------------------------------------------------
PT Zinus Global Indonesia...................................        2.22
All-Others..................................................        2.22
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination 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, 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 equal to the estimated weighted-average 
dumping margin or the estimated all-others rate, as follows: (1) The 
cash deposit rate for the respondent 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 
determination 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 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 mattresses from Indonesia 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 
deposits posted will be refunded and suspension of liquidation will be 
lifted. 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 Administrative Protective Orders (APO)

    This notice will serve as a reminder to the parties subject to 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 return or 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 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

[[Page 15901]]

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. Changes From the Preliminary Determination
V. Discussion of the Issues
    Comment 1: Zinus' Reporting of Constructed Export Price (CEP) 
Inventory Sales
    Comment 2: Zinus' Reporting of Sales Deductions
    Comment 3: Transactions Disregarded Adjustments
    Comment 4: Financial Statements Used To Value Constructed Value 
(CV) Profit and Selling Expenses
    Comment 5: Startup Adjustment
    Comment 6: Region in Cohen's d Test
    Comment 7: Level of Trade (LOT) in Cohens d Test
    Comment 8: Treatment of Intra-Company Payments
    Comment 9: Clerical Error Corrections
VI. Recommendation

[FR Doc. 2021-06195 Filed 3-24-21; 8:45 am]
BILLING CODE 3510-DS-P