[Federal Register Volume 86, Number 92 (Friday, May 14, 2021)]
[Notices]
[Pages 26463-26465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10237]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-128]


Mattresses From the People's Republic of China: Countervailing 
Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty (CVD) order on mattresses 
from the People's Republic of China (China).

DATES: Applicable May 14, 2021.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Mary Kolberg, AD/
CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2631 or (202) 
482-1785, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 2021, Commerce published its affirmative final 
determination in the countervailing duty investigation of mattresses 
from China.\1\ On May 10, 2021, the ITC notified Commerce of its 
affirmative final determination that pursuant to sections 
705(b)(1)(A)(i) and 705(d) of the Act, that an industry in the United 
States is materially injured by reason of

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subsidized imports of subject merchandise from China.\2\
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    \1\ See Mattresses from the People's Republic of China; Final 
Affirmative Countervailing Duty Determination, 86 FR 15910 (March 
25, 2021) (Final Determination), and accompanying Issues and 
Decision Memorandum.
    \2\ See ITC's Letter, ``Notification of ITC Final 
Determination,'' dated May 10, 2021 (ITC Notification Letter).
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Scope of the Order

    The products covered by this order are mattresses from China. For a 
complete description of the scope of this order, see the appendix to 
this notice.

Countervailing Duty Order

    As stated above, on May 10, 2021, in accordance with section 705(d) 
of the Act, the ITC notified Commerce of its final determination that 
an industry in the United States is materially injured within the 
meaning of section 705(b)(1)(A)(i) of the Act by reason of subsidized 
imports of mattresses from China.\3\ Therefore, in accordance with 
section 705(c)(2) of the Act, Commerce is issuing this CVD order. 
Therefore, in accordance with section 706(a) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to assess, upon further 
instruction by Commerce, countervailing duties for all relevant entries 
of mattresses from China which are entered, or withdrawn from 
warehouse, for consumption on or after September 11, 2020, the date of 
publication of the Preliminary Determination,\4\ but will not include 
entries occurring after the expiration of the provisional measures 
period and before the publication of the ITC's final injury 
determination under section 705(b) of the Act, as further described in 
the ``Provisional Measures'' section of this notice.
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    \3\ See ITC Notification Letter.
    \4\ See Mattresses from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 85 FR 56216 (September 11, 2020) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
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Continuation of Suspension of Liquidation and Cash Deposits

    Except as noted in the ``Provisional Measures'' section of this 
notice, in accordance with section 706(a)(1) of the Act, Commerce will 
instruct CBP to continue to suspend liquidation on all relevant entries 
of mattresses from China. These instructions suspending liquidation 
will remain in effect until further notice.
    Commerce will also instruct CBP to require cash deposits equal to 
the net countervailable subsidy rates indicated in the table below. 
Accordingly, effective on the date of publication in the Federal 
Register of the notice of the ITC's final affirmative injury 
determination, CBP must require, at the same time as importers would 
deposit estimated normal customs duties on subject merchandise, a cash 
deposit equal to the rates listed in the table below.\5\
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    \5\ See section 706(a)(3) of the Act.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Kewei Furniture Co Ltd......................................       97.78
Zinus Xiamen................................................       97.78
Ningbo Megafeat Bedding Co., Ltd./Megafeat Bedding Co Ltd...       97.78
Healthcare Co. Ltd..........................................       97.78
All Others..................................................       97.78
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Provisional Measures

    Section 703(d) of the Act states that the suspension of liquidation 
pursuant to an affirmative preliminary determination may not remain in 
effect for more than four months. Commerce published the Preliminary 
Determination on September 11, 2020.\6\
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    \6\ See Preliminary Determination.
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    The provisional measures period, beginning on the date of 
publication of the Preliminary Determination, ended on January 8, 2021. 
Therefore, in accordance with section 703(d) of the Act, Commerce will 
instruct CBP to terminate the suspension of liquidation and to 
liquidate, without regard to countervailing duties, unliquidated 
entries of mattresses from China entered, or withdrawn from warehouse, 
for consumption after January 8, 2021, the final day on which the 
provisional measures were in effect, until and through the day 
preceding the date of publication of the ITC's final affirmative injury 
determination in the Federal Register. Suspension of liquidation and 
the collection of cash deposits will resume on the date of publication 
of the ITC's final injury determination in the Federal Register.

Notification to Interested Parties

    This notice constitutes the CVD order with respect to mattresses 
from China pursuant to section 706(a) of the Act. Interested parties 
can find a list of CVD orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: May 10, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The products covered by this order 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 order 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 order 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 order are ``futon'' mattresses. 
A ``futon'' is a bi-fold

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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,'' ``sofa beds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers'' or a like description.
    Also excluded from the scope of this order 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 order 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 order 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 order 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 order 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 order is dispositive.

[FR Doc. 2021-10237 Filed 5-13-21; 8:45 am]
BILLING CODE 3510-DS-P