[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Notices]
[Pages 17774-17777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06994]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-051; C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Preliminary Results of Changed Circumstances Reviews, and 
Consideration of Revocation of the Antidumping and Countervailing Duty 
Orders in Part

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

SUMMARY: On October 15, 2020, the Department of Commerce (Commerce) 
received a request for revocation, in part, of the antidumping duty 
(AD) and countervailing duty (CVD) orders on certain hardwood plywood 
products (hardwood plywood) from the People's Republic of China (China) 
with respect to certain finished laminated veneer lumber (LVL) door 
stiles and rails. We preliminary determine to revoke, in part, the 
Orders with respect to these products. Interested parties are invited 
to comment on these preliminary results.

DATES: Applicable April 6, 2021.

FOR FURTHER INFORMATION CONTACT: Nicolas Mayora, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3053.

SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2018, Commerce published the AD and CVD orders on 
hardwood plywood from China.\1\ On October 15, 2020, the Coalition for 
Fair Trade in Hardwood Plywood (the petitioner) requested that Commerce 
initiate changed circumstances reviews (CCRs) to revoke, in part, the 
Orders with respect to certain LVL door stiles and rails, pursuant to 
section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), and 
19 CFR 351.216(b).\2\
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    \1\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Amended Final Determination of Sales at Less Than 
Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018); 
and Certain Hardwood Plywood Products from the People's Republic of 
China: Countervailing Duty Order, 83 FR 513 (January 4, 2018) 
(collectively, the Orders).
    \2\ See Petitioner's Letter, ``Hardwood Plywood Products from 
the People's Republic of China: Request for Changed Circumstances 
Review and Partial Revocation,'' dated October 15, 2020 (CCR 
Request); Commerce's Letter, ``Clarification of Changed 
Circumstances Review and Partial Revocation Request,'' dated 
November 12, 2020; Commerce's Letter, ``Clarification of Changed 
Circumstances Review and Partial Revocation Request,'' dated 
November 17, 2020; and Petitioner's Letter, ``Hardwood Plywood 
Products from the People's Republic of China: Response to 
Clarification of Changed Circumstances Review and Partial Revocation 
Request,'' dated December 10, 2020.

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[[Page 17775]]

    On February 9, 2021, we published the Initiation Notice for these 
CCRs in the Federal Register.\3\ We invited interested parties to 
submit comments concerning industry support for the revocation, in 
part, of the Orders, as well as comments and/or factual information 
regarding these CCRs. We also invited interested parties to comment on 
whether any of their entries are covered by the revocation request but 
enjoined from liquidation due to an injunction issued in ongoing 
litigation. On February 19, 2020, we received comments on behalf of 
importer MJB Wood Group LLC (MJB) agreeing with the proposed revocation 
and confirming that it had no such entries.\4\ We received no further 
comments on the Initiation Notice.
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    \3\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Initiation of Antidumping Duty and Countervailing 
Duty Changed Circumstances Reviews, 86 FR 8766 (February 9, 2021) 
(Initiation Notice).
    \4\ See MJB's Letter, ``Changed Circumstances Reviews of 
Hardwood Plywood Products from the People's Republic of China: 
Comments on Initiation Notice,'' dated February 19, 2021 (MJB 
Letter).
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Scope of the Orders

    The merchandise covered by these Orders is hardwood plywood from 
China. For a complete description of the scope of the Orders, see the 
appendix to this notice.

Scope of the CCRs

    The petitioner requests that Commerce revoke the Orders, in part, 
to exclude from the scope door stiles and rails made of LVL that have a 
width not to exceed 50 millimeters, a thickness not to exceed 50 
millimeters, and a length of less than 2,450 millimeters.

Preliminary Results of the CCRs and Intent To Revoke the Orders, in 
Part

    Pursuant to section 751(d)(1) of the Act, and 19 CFR 351.222(g), 
Commerce may revoke an order, in whole or in part, based on a review 
under section 751(b) of the Act (i.e., a CCR). Section 751(b)(1) of the 
Act requires a CCR to be conducted upon receipt of a request which 
shows changed circumstances sufficient to warrant a review. Section 
782(h)(2) of the Act gives Commerce the authority to revoke an order 
(in whole or in part) if it determines that producers accounting for 
substantially all of the production of the domestic like product have 
no further interest in the order, in whole or in part. Section 
351.222(g) of Commerce's regulations provides that Commerce will 
conduct a CCR of an AD or CVD order under 19 CFR 351.216, and may 
revoke an order (in whole or in part), if it concludes that: (i) 
Producers accounting for substantially all of the production of the 
domestic like product to which the order pertains have expressed a lack 
of interest in the relief provided by the order, in whole or in part; 
or (ii) if other changed circumstances sufficient to warrant revocation 
exist. Thus, both the Act and Commerce's regulations require that 
``substantially all'' domestic producers express a lack of interest in 
the order for Commerce to revoke the order, in whole or in part.\5\ In 
its administrative practice, Commerce has interpreted ``substantially 
all'' to represent producers accounting for at least 85 percent of U.S. 
production of the domestic like product.\6\
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    \5\ See Section 782(h) of the Act and 19 CFR 351.222(g).
    \6\ See, e.g., Supercalendered Paper from Canada: Final Results 
of Changed Circumstances Review and Revocation of Countervailing 
Duty Order, 83 FR 32268 (July 12, 2018).
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    The petitioner submitted a statement of lack of interest in the 
continued application of the Orders with respect to certain LVL door 
stiles and rails and requested that Commerce conduct these CCRs on an 
expedited basis.\7\ Commerce's regulations do not specify a deadline 
for the issuance of preliminary results of a CCR but provide that 
Commerce will issue the final results of the review within 270 days 
after the date on which the CCR is initiated, or within 45 days if all 
parties to the proceeding agree to the outcome of the review.\8\ 
Commerce did not issue a combined notice of initiation and preliminary 
results because the record was unclear as to whether the petitioner 
accounts for substantially all domestic production of hardwood 
plywood.\9\ Thus, Commerce did not determine in the Initiation Notice 
whether producers accounting for substantially all of the production of 
the domestic like product lacked interest. Instead, we invited 
interested parties to submit comments concerning domestic industry 
support with respect to the requested partial revocation of the 
Orders.\10\ Although Commerce received comments from MJB in response to 
initiation of these CCRs, the comments did not address the issue of 
domestic industry support.\11\ Commerce, therefore, received no 
comments on industry support. As a result, we find that the domestic 
industry has expressed no opposition with respect to the proposed 
revocation, in part, of the Orders.
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    \7\ See CCR Request at II.
    \8\ See 19 CFR 351.216 (e).
    \9\ See Initiation Notice.
    \10\ Id., 86 FR at 8767.
    \11\ See MJB Letter.
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    In light of the petitioner's statement of lack of interest, and the 
absence of comments from any interested party addressing the issue of 
domestic industry support, we preliminarily conclude that producers 
accounting for substantially all of the production of the domestic like 
product to which the Orders pertain lack interest in the relief 
provided by the Orders with respect to LVL door stiles and rails. Thus, 
we preliminarily determine that changed circumstances warrant 
revocation of the Orders, in part, with respect to certain LVL door 
stiles and rails.
    The petitioner requested that partial revocation of the Orders be 
applied retroactively to June 23, 2017, and April 25, 2017, for the AD 
and CVD orders, respectively, i.e., the dates of the preliminary 
determinations in the AD and CVD investigations.\12\ The petitioner 
also requested that Commerce instruct U.S. Customs and Border 
Protection (CBP) to discontinue the suspension of liquidation for 
imports subject to the CCR Request and entered, or withdrawn from 
warehouse, for consumption before June 12, 2020, and to liquidate all 
such entries without regard to duties.\13\
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    \12\ See CCR Request at 8.
    \13\ Id. The petitioner does not explain how this request is 
consistent with its request that Commerce revoke the Orders 
retroactive to 2017, however.
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    Section 751(d)(3) of the Act provides that ``{a{time}  
determination under this section to revoke an order . . . shall apply 
with respect to unliquidated entries of the subject merchandise which 
entered, or withdrawn from warehouse, for consumption on or after the 
date determined by the administering authority.'' Consistently, 
Commerce's general practice is to instruct CBP to liquidate without 
regard to AD and CVD duties, and to refund any estimated deposits of 
those duties, on all unliquidated entries of the merchandise covered by 
a revocation that are not covered by the final results of an 
administrative review or automatic liquidation.\14\ Commerce has 
exercised

[[Page 17776]]

its discretion and deviated from this general practice if the 
particular facts of the case have implications for the effective date 
of the partial revocation selected by Commerce.\15\
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    \14\ See, e.g., Certain Pasta from Italy: Final Results of 
Countervailing Duty Changed Circumstances Review and Revocation, In 
Part, 76 FR 27634 (May 12, 2011); Stainless Steel Bar from the 
United Kingdom: Notice of Final Results of Changed Circumstances 
Review and Revocation of Order, in Part, 72 FR 65706 (November 23, 
2007); Notice of Final Results of Antidumping Duty Changed 
Circumstances Review and Revocation of Order In Part: Certain 
Corrosion-Resistant Carbon Steel Flat Products from Germany, 71 FR 
66163 (November 13, 2006); Notice of Final Results of Antidumping 
Duty Changed Circumstances Reviews and Revocation of Orders in Part: 
Certain Corrosion-Resistant Carbon Steel Flat Products from Canada 
and Germany, 71 FR 14498 (March 22, 2006); and Notice of Final 
Results of Antidumping Duty Changed Circumstances Review, and 
Determination to Revoke Order in Part: Certain Cased Pencils from 
the People's Republic of China, 68 FR 62428 (November 4, 2003).
    \15\ See section 751(d)(3) of the Act; and Itochu Building 
Products v. United States, Court No. 11-00208, Slip Op. 14-37 (CIT 
2014) (Itochu Bldg. Prod) (CIT April 8, 2014) at 12 (``The statutory 
provision, as discussed above, provides Commerce with discretion in 
the selection of the effective date for a partial revocation 
following a changed circumstances review, but that discretion may 
not be exercised arbitrarily so as to decide the question presented 
without considering the relevant and competing considerations'').
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    If we make a final determination to revoke the Orders, in part, 
Commerce intends to apply these determinations to each order as 
follows. Because we have completed administrative reviews of the 
Orders, the partial revocation will be retroactively applied to 
unliquidated entries of merchandise subject to the CCRs that were 
entered or withdrawn from warehouse, for consumption, on or after the 
day following the last day of the period covered by the most recently 
completed administrative review of the Orders, and which are not 
covered by automatic liquidation (i.e., January 1, 2020).

Public Comment

    Interested parties are invited to comment on these preliminary 
results in accordance with 19 CFR 351.309(c)(1)(ii). Written comments 
may be submitted to Commerce no later than 14 days after the date of 
publication of these preliminary results. Rebuttal comments, limited to 
issues raised in such comments, may be filed with Commerce no later 
than seven days after the comments are filed.\16\ Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information until further 
notice.\17\ All submissions must be filed electronically using the 
Enforcement and Compliance's AD and CVD Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. An electronically-filed document must be received 
successfully in its entirety in ACCESS by 5:00 p.m. Eastern Time on the 
due date set forth in this notice.
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    \16\ Submissions of rebuttal factual information must comply 
with 19 CFR 351.301(b)(2); see also Temporary Rule Modifying AD/CVD 
Service Requirements Due to COVID-19; Extension of Effective Period, 
85 FR 41363 (July 10, 2020) (Temporary Rule).
    \17\ See Temporary Rule.
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Final Results of the Changed Circumstances Reviews

    Commerce will issue its final results of these CCRs, which will 
include its analysis of any written comments, no later than 270 days 
after the date on which these reviews were initiated. If, in the final 
results of these reviews, Commerce continues to determine that changed 
circumstances warrant the revocation of the Orders, in part, we will 
instruct CBP to liquidate without regard to AD or CVD duties, and to 
refund any deposits of estimated AD and CVD duties, on all unliquidated 
entries of the merchandise covered by the revocation that are not 
covered by the final results of an administrative review or automatic 
liquidation. The current requirement for cash deposit of estimated AD 
and CVD duties on all entries of subject merchandise will continue 
unless they are modified pursuant to the final results of these CCRs.

Notification to Interested Parties

    These preliminary results of review are being issued and published 
in accordance with sections 751(b) and 777(i) of the Act, and 19 CFR 
315.216, 19 CFR 351.221(c)(3), and 19 CFR 351.222.

    Dated: March 30, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Orders

    The merchandise subject to these Orders is hardwood and 
decorative plywood, and certain veneered panels as described below. 
For purposes of this proceeding, hardwood and decorative plywood is 
defined as a generally flat, multilayered plywood or other veneered 
panel, consisting of two or more layers or plies of wood veneers and 
a core, with the face and/or back veneer made of non-coniferous wood 
(hardwood) or bamboo. The veneers, along with the core may be glued 
or otherwise bonded together. Hardwood and decorative plywood may 
include products that meet the American National Standard for 
Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2016 (including any 
revisions to that standard).
    For purposes of this proceeding a ``veneer'' is a slice of wood 
regardless of thickness which is cut, sliced or sawed from a log, 
bolt, or flitch. The face and back veneers are the outermost veneer 
of wood on either side of the core irrespective of additional 
surface coatings or covers as described below.
    The core of hardwood and decorative plywood consists of the 
layer or layers of one or more material(s) that are situated between 
the face and back veneers. The core may be composed of a range of 
materials, including but not limited to hardwood, softwood, 
particleboard, or medium-density fiberboard (MDF).
    All hardwood plywood is included within the scope of these 
Orders regardless of whether or not the face and/or back veneers are 
surface coated or covered and whether or not such surface coating(s) 
or covers obscures the grain, textures, or markings of the wood. 
Examples of surface coatings and covers include, but are not limited 
to: Ultra violet light cured polyurethanes; oil or oil-modified or 
water based polyurethanes; wax; epoxy-ester finishes; moisture-cured 
urethanes; paints; stains; paper; aluminum; high pressure laminate; 
MDF; medium density overlay (MDO); and phenolic film. Additionally, 
the face veneer of hardwood plywood may be sanded; smoothed or given 
a ``distressed'' appearance through such methods as hand-scraping or 
wire brushing. All hardwood plywood is included within the scope 
even if it is trimmed; cut-to-size; notched; punched; drilled; or 
has underwent other forms of minor processing.
    All hardwood and decorative plywood is included within the scope 
of these Orders, without regard to dimension (overall thickness, 
thickness of face veneer, thickness of back veneer, thickness of 
core, thickness of inner veneers, width, or length). However, the 
most common panel sizes of hardwood and decorative plywood are 1219 
x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 
1219 x 3048 mm (48 x 120 inches).
    Subject merchandise also includes hardwood and decorative 
plywood that has been further processed in a third country, 
including but not limited to trimming, cutting, notching, punching, 
drilling, or any other processing that would not otherwise remove 
the merchandise from the scope of the Orders if performed in the 
country of manufacture of the in-scope product.
    The scope of the Orders excludes the following items: (1) 
Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured to meet U.S. Products 
Standard PS 1-09, PS 2-09, or PS 2-10 for Structural Plywood 
(including any revisions to that standard or any substantially 
equivalent international standard intended for structural plywood), 
and which has both a face and a back veneer of coniferous wood; (2) 
products which have a face and back veneer of cork; (3) multilayered 
wood flooring, as described in the antidumping duty and 
countervailing duty orders on Multilayered Wood Flooring from the 
People's Republic of China, Import Administration, International 
Trade Administration. See Multilayered Wood Flooring from the 
People's Republic of China, 76 FR 76690 (December 8, 2011) (amended 
final determination of sales at less than fair value and antidumping 
duty order), and Multilayered Wood Flooring from the People's 
Republic of China, 76 FR 76693 (December 8, 2011) (countervailing 
duty order), as amended by Multilayered Wood Flooring from the 
People's Republic of China: Amended Antidumping and Countervailing 
Duty Orders, 77 FR 5484 (February 3, 2012); (4) multilayered wood 
flooring with a face

[[Page 17777]]

veneer of bamboo or composed entirely of bamboo; (5) plywood which 
has a shape or design other than a flat panel, with the exception of 
any minor processing described above; (6) products made entirely 
from bamboo and adhesives (also known as ``solid bamboo''); and (7) 
Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface 
Film Plywood (PSF), defined as a panel with an ``Exterior'' or 
``Exposure 1'' bond classification as is defined by The Engineered 
Wood Association, having an opaque phenolic film layer with a weight 
equal to or greater than 90g/m3 permanently bonded on both the face 
and back veneers and an opaque, moisture resistant coating applied 
to the edges.
    Excluded from the scope of these Orders are wooden furniture 
goods that, at the time of importation, are fully assembled and are 
ready for their intended uses. Also excluded from the scope of these 
Orders is ``ready to assemble'' (RTA) furniture. RTA furniture is 
defined as (A) furniture packaged for sale for ultimate purchase by 
an end-user that, at the time of importation, includes (1) all 
wooden components (in finished form) required to assemble a finished 
unit of furniture, (2) all accessory parts (e.g., screws, washers, 
dowels, nails, handles, knobs, adhesive glues) required to assemble 
a finished unit of furniture, and (3) instructions providing 
guidance on the assembly of a finished unit of furniture; (B) 
unassembled bathroom vanity cabinets, having a space for one or more 
sinks, that are imported with all unassembled hardwood and hardwood 
plywood components that have been cut-to-final dimensional component 
shape/size, painted or stained prior to importation, and stacked 
within a singled shipping package, except for furniture feet which 
may be packed and shipped separately; or (C) unassembled bathroom 
vanity linen closets that are imported with all unassembled hardwood 
and hardwood plywood components that have been cut-to-final 
dimensional shape/size, painted or stained prior to importation, and 
stacked within a single shipping package, except for furniture feet 
which may be packed and shipped separately.
    Excluded from the scope of these Orders are kitchen cabinets 
that, at the time of importation, are fully assembled and are ready 
for their intended uses. Also excluded from the scope of these 
Orders are RTA kitchen cabinets. RTA kitchen cabinets are defined as 
kitchen cabinets packaged for sale for ultimate purchase by an end-
user that, at the time of importation, includes (1) all wooden 
components (in finished form) required to assemble a finished unit 
of cabinetry, (2) all accessory parts (e.g., screws, washers, 
dowels, nails, handles, knobs, hooks, adhesive glues) required to 
assemble a finished unit of cabinetry, and (3) instructions 
providing guidance on the assembly of a finished unit of cabinetry.
    Excluded from the scope of these Orders are finished table tops, 
which are table tops imported in finished form with pre-cut or 
drilled openings to attach the underframe or legs. The table tops 
are ready for use at the time of import and require no further 
finishing or processing.
    Excluded from the scope of these Orders are finished countertops 
that are imported in finished form and require no further finishing 
or manufacturing.
    Excluded from the scope of these Orders are laminated veneer 
lumber door and window components with (1) a maximum width of 44 
millimeters, a thickness from 30 millimeters to 72 millimeters, and 
a length of less than 2413 millimeters (2) water boiling point 
exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds 
per square inch or higher, (4) finger-jointed or lap-jointed core 
veneer with all layers oriented so that the grain is running 
parallel or with no more than 3 dispersed layers of veneer oriented 
with the grain running perpendicular to the other layers; and (5) 
top layer machined with a curved edge and one or more profile 
channels throughout.
    Imports of hardwood plywood are primarily entered under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 
4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 
4412.31.4050; 4412.31.4060; 4412.31.4075; 4412.31.4080; 
4412.31.4140; 4412.31.4150; 4412.31.4160; 4412.31.4180; 
4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 
4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5265; 
4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 
4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0565; 
4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 
4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.2610; 
4412.32.2630; 4412.32.3125; 4412.32.3135; 4412.32.3155; 
4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.3235; 
4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 
4412.32.5600; 4412.32.3235; 4412.32.3255; 4412.32.3265; 
4412.32.3275; 4412.32.3285; 4412.32.5700; 4412.94.1030; 
4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 
4412.94.3141; 4412.94.3161; 4412.94.3175; 4412.94.4100; 
4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 
4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 
4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 
4412.99.5115; and 4412.99.5710.
    Imports of hardwood plywood may also enter under HTSUS 
subheadings 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 
4412.10.9000; 4412.94.5100; 4412.94.9500; and 4412.99.9500. While 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of these Orders is 
dispositive.

[FR Doc. 2021-06994 Filed 4-5-21; 8:45 am]
BILLING CODE 3510-DS-P