[Federal Register Volume 87, Number 116 (Thursday, June 16, 2022)]
[Notices]
[Pages 36305-36307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13006]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / 
Notices  

[[Page 36305]]



DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-971]


Multilayered Wood Flooring From the People's Republic of China: 
Final Results and Partial Rescission of Countervailing Duty 
Administrative Review; 2019

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

SUMMARY: The U.S. Department of Commerce (Commerce) continues to 
determine that the mandatory respondents, Riverside Plywood Corporation 
(Riverside) and Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. 
(Jiangsu Senmao), and 66 other producers and/or exporters of 
multilayered wood flooring (wood flooring) from the People's Republic 
of China (China), received countervailable subsidies during the period 
of review (POR) January 1, 2019, through December 31, 2019.

DATES: Applicable June 16, 2022.

FOR FURTHER INFORMATION CONTACT: Dennis McClure or Jonathan Schueler, 
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) 482-5973 
or (202) 482-9175, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Results of this administrative 
review in the Federal Register on December 27, 2021, and invited 
interested parties to comment.\1\ On February 18, 2022, we received 
case briefs from the following interested parties: Riverside,\2\ 
Jiangsu Senmao, Fine Furniture (Shanghai) Limited and Double F Limited 
(collectively, Fine Furniture), Lumber Liquidators Services, LLC 
(including various Chinese exporters and producers) (Lumber Liquidators 
and Foreign Exporters/Producers), the Government of the People's 
Republic of China (GOC), and the American Manufacturers of Multilayered 
Wood Flooring (the petitioner).\3\ Struxtur, Inc. & Evolutions 
Flooring, Inc. (Struxtur) and Jiaxing Hengtong Wood Co., Ltd. 
(Hengtong) submitted letters in lieu of case briefs on February 18, 
2022, concurring with the arguments of other respondent parties.\4\ On 
March 2, 2022, we received rebuttal briefs from Riverside, Fine 
Furniture, Jiangsu Senmao, and the petitioner.\5\ Zhejiang Dadongwu 
Green Home Wood Co., Ltd. (Dadongwu) and Struxtur submitted letters in 
lieu of a rebuttal case brief on March 2, 2022, incorporating the 
rebuttal comments of other respondent parties.\6\ On March 30, 2022, we 
held a public hearing to discuss the interested parties' comments.\7\ 
For a complete description of the events that occurred since the 
Preliminary Results, see the Issues and Decision Memorandum.\8\
---------------------------------------------------------------------------

    \1\ See Multilayered Wood Flooring from the People's Republic of 
China: Preliminary Results of Countervailing Duty Administrative 
Review, and Intent to Rescind Review, in Part; 2019, 86 FR 73244 
(December 27, 2021) (Preliminary Results), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ Cross-owned affiliates are Baroque Timber Industries 
(Baroque Timber), Suzhou Times Flooring Co., Ltd., and Zhongshan 
Lianjia Flooring Co., Ltd.
    \3\ See Petitioner's Letter, ``Case Brief,'' dated February 18, 
2022; see also GOC's Letter, ``Case Brief,'' dated February 18, 
2022; Riverside's Letter, ``Administrative Case Brief,'' dated 
February 22, 2022 (bracketing made final on February 22, 2022); 
Jiangsu Senmao's Letter, ``Case Brief,'' dated February 18, 2022; 
Fine Furniture's Letter, ``Case Brief,'' dated February 18, 2022; 
and Lumber Liquidators and Foreign Exporters/Producers' Letter, 
``Case Brief,'' dated February 18, 2022.
    \4\ See Struxtur's Letter, ``Case Brief;'' dated February 18, 
2022; see also Hengtong's Letter, ``CBP Data & Letter in Lieu of 
Case Brief,'' dated February 18, 2022.
    \5\ See Petitioner's Letter, ``Rebuttal Brief,'' dated March 2, 
2022; see also Fine Furniture's Letter, ``Rebuttal Brief,'' dated 
March 2, 2022; Riverside's Letter, ``Rebuttal Brief,'' dated March 
2, 2022; and Jiangsu Senmao's Letter, ``Rebuttal Brief,'' dated June 
15, 2021.
    \6\ See Struxtur's Letter, ``Rebuttal Brief,'' dated March 2, 
2022; see also Dadongwu's Letter, ``Letter in Lieu of Rebuttal 
Brief,'' dated March 2, 2022.
    \7\ See Memorandum, ``Multilayered Wood Flooring from the 
People's Republic of China--9th Administrative Review: Scheduling of 
Public Hearing,'' dated March 7, 2022; see also Submission of Neal 
R. Gross and Co., Transcript of Public Hearing, filed April 6, 2022.
    \8\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2019 Countervailing Duty Administrative Review 
of Multilayered Wood Flooring from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Order

    The product covered by the Order \9\ is multilayered wood flooring 
from China. For a complete description of the scope of the Order, see 
the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \9\ See Multilayered Wood Flooring from the People's Republic of 
China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011) 
(Order); see also Multilayered Wood Flooring from the People's 
Republic of China: Amended Antidumping and Countervailing Duty 
Orders, 77 FR 5484 (February 3, 2012) (Amended Order); and 
Multilayered Wood Flooring from the People's Republic of China: 
Final Clarification of the Scope of the Antidumping and 
Countervailing Duty Orders, 82 FR 27799 (June 19, 2017).
---------------------------------------------------------------------------

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon for the final results of this review. However, 
we took additional steps in lieu of an on-site verification to verify 
this information, in accordance with section 782(i) of the Act.\10\
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    \10\ See Commerce's Letters, ``Jiangsu Senmao Bamboo and Wood 
Industry Co., Ltd. Verification Questionnaire,'' dated January 10, 
2022; and ``Riverside Plywood Corp. Verification Questionnaire,'' 
dated January 10, 2022.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the parties' briefs are addressed in the 
Issues and Decision Memorandum. A list of the issues addressed is 
attached to this notice at Appendix I. 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on our analysis of the case and rebuttal briefs and the 
evidence on the record, we made certain changes from the Preliminary 
Results. These changes

[[Page 36306]]

are explained in the Issues and Decision Memorandum.

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we find that there is a 
subsidy, i.e., a government-provided financial contribution that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\11\ The Issues and Decision Memorandum contains a full 
description of the methodology underlying Commerce's conclusions, 
including any determination that relied upon the use of adverse facts 
available pursuant to sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

    \11\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Partial Rescission of Administrative Review

    As noted in the Preliminary Results, Commerce received timely no-
shipment certifications from Anhui Longhua Bamboo Product Co., Ltd. 
(Anhui); Benxi Flooring Factory (General Partnership) (Benxi); Dalian 
Deerfu Wooden Product Co., Ltd. (Deerfu); Dalian Shengyu Science and 
Technology Development Co., Ltd. (Shengyu); Dunhua Dexin Wood Industry 
Co., Ltd./Dunhua City Dexin Wood Industry Co., Ltd. (Dexin); Jiangsu 
Yuhui International Trade Co., Ltd. (Yuhui); Jiashan Fengyun Timber 
Co., Ltd. (Fengyun); Hengtong; Kember Flooring, Inc. (Kember); Kingman 
Wood Industry Co., Ltd. (Kingman); Muchsee Wood (Chuzhou) Co., Ltd. 
(Muchsee); Power Dekor Group Co., Ltd. (Power Dekor); Yingyi-Nature 
(Kunshan) Wood Industry Co., Ltd. (Yingyi-Nature); Zhejiang Dadongwu 
Greenhome Wood Co., Ltd. (Dadongwu); Zhejiang Shiyou Timber Co., Ltd. 
(Shiyou); and Zhejiang Shuimojiangnan New Material Technology Co., Ltd. 
(New Material). Based on our analysis of U.S. Customs and Border 
Protection (CBP) information and comments received from interested 
parties, we determine that eleven companies, namely, Anhui, Benxi, 
Shengyu, Dexin, Yuhui, Kingman, Muchsee, Power Dekor, Yingyi-Nature, 
Shiyou, and New Material, had no shipments of subject merchandise 
during the POR.\12\ \13\ We inquired with CBP whether these companies 
had shipped merchandise to the United States during the POR, and CBP 
provided no evidence to contradict the claims of no shipments made by 
these companies. Therefore, we are rescinding the administrative review 
for Anhui, Benxi, Shengyu, Dexin, Yuhui, Kingman, Muchsee, Power Dekor, 
Yingyi-Nature, Shiyou, and New Material because these companies had no 
shipments of subject merchandise during the POR.
---------------------------------------------------------------------------

    \12\ See Memorandum, ``No Shipment Inquiry for Certain Companies 
During the Period 01/01/2019 through 12/31/2019,'' dated November 
17, 2021.
    \13\ We did not consider Deerfu's no shipment certification and 
Fengyun's no shipment certification because we rescinded the review 
for these companies. See Multilayered Wood Flooring from the 
People's Republic of China: Partial Rescission of Countervailing 
Duty Administrative Review; 2019, 86 FR at 31696 (June 15, 2021).
---------------------------------------------------------------------------

    Further, in the Preliminary Results, Commerce stated its intention 
to rescind the review with respect to the above-referenced companies, 
except for Hengtong, Dadongwu, and Kember, in the final results.\14\ 
Concerning Dadongwu and Kember, we continue to find that both companies 
had entries of the subject merchandise during the POR; therefore, we 
are not rescinding the administrative review for these two companies.
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    \14\ See Preliminary Results PDM at 4 and 5.
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    Regarding Hengtong, we requested CBP to provide entry documentation 
to determine whether Hengtong had no shipments during the POR.\15\ 
After reviewing the CBP entry documentation, we determine that the 
record evidence supports Hengtong's claim of no shipments during the 
POR. Therefore, we are rescinding the administrative review of 
Hengtong, pursuant to 19 CFR 351.213(d)(3). For additional information 
regarding this determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \15\ See Memorandum, ``U.S. Customs and Border Protection (CBP) 
Entry Documents,'' dated February 15, 2022, at Attachment 1.
---------------------------------------------------------------------------

Final Results of Administrative Review

    In accordance with 19 CFR 351.221(b)(5), we calculated a final 
countervailable subsidy rate for each of the mandatory respondents, 
Riverside and Jiangsu Senmao. For the companies subject to this review 
that were not selected for individual examination, we followed Commerce 
practice, which is to base the subsidy rates on an average of the 
subsidy rates calculated for those companies selected for individual 
examination, excluding de minimis rates or rates based entirely on 
adverse facts available. In this case, for the non-selected companies, 
we calculated a rate by weight-averaging the calculated subsidy rates 
of Riverside and Jiangsu Senmao using their publicly ranged sales data 
for exports of subject merchandise to the United States during the 
POR.\16\ We find the countervailable subsidy rates for the producers/
exporters under review to be as follows:
---------------------------------------------------------------------------

    \16\ See Memorandum, ``Calculation of the Non-Selected Rate for 
the Final Results,'' dated June 10, 2022.

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                           rate
                                                               (percent)
------------------------------------------------------------------------
Riverside Plywood Corporation and its Cross-Owned Affiliates       12.74
 \17\........................................................
Jiangsu Senmao Bamboo and Wood Industry Co., Ltd.............       3.36
Non-Selected Companies Under Review \18\.....................       9.85
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose the calculations and analysis 
performed for these final results of review within five days of the 
date of publication of this notice in the Federal Register, in 
accordance with 19 CFR 351.224(b).
---------------------------------------------------------------------------

    \17\ Cross-owned affiliates are Baroque Timber (Zhongshan) 
Industries, Suzhou Times Flooring Co., Ltd., and Zhongshan Lianjia 
Flooring Co., Ltd.
    \18\ See Appendix II.
---------------------------------------------------------------------------

Assessment Rates

    Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and CBP 
shall assess, countervailing duties on all appropriate entries of 
subject merchandise in accordance with the final results of this 
review, for the above-listed companies at the applicable ad valorem 
assessment rates listed. We intend to issue assessment instructions to 
CBP 35 days after the date of publication of these final results of 
review. If a timely summons is filed at the U.S. Court of International 
Trade, the assessment instructions will direct CBP not to liquidate 
relevant entries until the time for parties to file a request for a 
statutory injunction has expired (i.e., within 90 days of publication).
    For the companies for which this review is rescinded, Commerce will 
instruct CBP to assess countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the POR in accordance with 19 CFR 351.212(c)(l)(i).

Cash Deposit Instructions

    In accordance with section 751(a)(2)(C) of the Act, Commerce also 
intends to instruct CBP to collect cash deposits of estimated 
countervailing duties in the amounts shown for each of the respective 
companies listed above on shipments of subject merchandise

[[Page 36307]]

entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the final results of this administrative review. 
For all non-reviewed firms subject to the Order, we will instruct CBP 
to continue to collect cash deposits of estimated countervailing duties 
at the most recent company-specific or all-others rate applicable to 
the company, as appropriate. These cash deposit requirements, effective 
upon publication of these final results, shall remain in effect until 
further notice.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary 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 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    We are issuing and publishing these final results in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 10, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Period of Review
VI. Subsidies Valuation Information
VII. Changes Since the Preliminary Results
VIII. Use of Facts Otherwise Available
IX. Analysis of Programs
X. Discussion of Comments
    Comment 1: Whether to Apply Adverse Facts Available to the 
Export Buyer's Credit Program
    Comment 2: Whether There Is a Basis to Apply Adverse Facts 
Available Regarding the Countervailability of the Provision of 
Electricity for Less Than Adequate Remuneration
    Comment 3: Whether There Is a Basis to Apply Adverse Facts 
Available to Specificity Regarding the Countervailability of the 
Provision of Inputs for Less Than Adequate Remuneration
    Comment 4: Whether Individually-Owned Suppliers Are Government 
Authorities
    Comment 5: Whether to Include New Zealand Trade Data in the 
Valuation of Benchmark Prices
    Comment 6: Whether Commerce Should Treat Pine Integrated Boards 
as Veneers and Apply Adverse Facts Available or Neutral Facts 
Available
    Comment 7: Which Density Estimates to Use in the Benefit 
Calculations for the Provision of Veneers, Plywood, and Fiberboard 
for Less Than Adequate Remuneration
    Comment 8: Whether to Include Certain Harmonized Tariff Schedule 
Subheadings and International Tropical Timber Organization Prices in 
the Glue, Fiberboard, Paint, Plywood, and Veneers Benchmark Price 
Calculations
    Comment 9: Whether to Rely on Drewry Ocean Freight Benchmark 
Data and Input-Specific Sources of Ocean Freight Used to Calculate 
the Ocean Freight Benchmarks for Veneers, Plywood, Fiberboard, Cut 
Timber, Sawn Wood, Paint, and Glue
    Comment 10: Whether to Revise Inland Freight Cost Calculation 
Methodology to Include Border Fees and Port Charges
    Comment 11: Whether to Include All Receipts to Determine the 
Measurability of the Participation of Standard Draft Program
    Comment 12: Whether to Base the Electricity Benchmark Prices on 
the Highest Prices When Tariff Schedules for Different Time Periods 
Exist
    Comment 13: Whether to Countervail Loans Based on a Financial 
Lease Back
    Comment 14: Whether to Rescind the Review, In Part, Based on CBP 
Information
    Comment 15: Whether Commerce Made Ministerial Errors in the 
Subsidy Rate Calculations Pertaining to Various Programs
XI. Recommendation

Appendix II

Non-Selected Companies Under Review

1. Anhui Boya Bamboo & Wood Products Co., Ltd.
2. Anhui Yaolong Bamboo & Wood Products Co. Ltd.
3. Armstrong Wood Products (Kunshan) Co., Ltd.
4. Benxi Wood Company
5. Changzhou Hawd Flooring Co., Ltd.
6. Dalian Guhua Wooden Product Co., Ltd.
7. Dalian Huilong Wooden Products Co., Ltd.
8. Dalian Jaenmaken Wood Industry Co., Ltd.
9. Dalian Jiahong Wood Industry Co., Ltd.
10. Dalian Kemian Wood Industry Co., Ltd.
11. Dalian Penghong Floor Products Co., Ltd.
12. Dalian Qianqiu Wooden Product Co., Ltd.
13. Dalian Shumaike Floor Manufacturing Co., Ltd.
14. Dalian T-Boom Wood Products Co., Ltd.
15. Dongtai Fuan Universal Dynamics, LLC
16. Dun Hua Sen Tai Wood Co., Ltd.
17. Dunhua City Hongyuan Wood Industry Co., Ltd.
18. Dunhua City Jisen Wood Industry Co., Ltd.
19. Dunhua Shengda Wood Industry Co., Ltd.
20. Fine Furniture (Shanghai) Limited
21. Fusong Jinlong Wooden Group Co., Ltd.
22. Fusong Jinqiu Wooden Product Co., Ltd.
23. Fusong Qianqiu Wooden Product Co., Ltd.
24. Guangdong Yihua Timber Industry Co., Ltd.
25. Guangzhou Homebon Timber Manufacturing Co., Ltd.
26. HaiLin LinJing Wooden Products Co., Ltd.
27. Hangzhou Hanje Tec Company Limited
28. Hangzhou Zhengtian Industrial Co., Ltd.
29. Hunchun Forest Wolf Wooden Industry Co., Ltd.
30. Hunchun Xingjia Wooden Flooring Inc.
31. Huzhou Chenghang Wood Co., Ltd.
32. Huzhou Fulinmen Imp. & Exp. Co., Ltd.
33. Huzhou Jesonwood Co., Ltd.
34. Huzhou Sunergy World Trade Co., Ltd.
35. Jiangsu Guyu International Trading Co., Ltd.
36. Jiangsu Keri Wood Co., Ltd.
37. Jiangsu Mingle Flooring Co., Ltd.
38. Jiangsu Simba Flooring Co., Ltd.
39. Jiashan HuiJiaLe Decoration Material Co., Ltd.
40. Jiashan On-Line Lumber Co., Ltd.
41. Jiaxing Brilliant Import & Export Co., Ltd.
42. Jilin Xinyuan Wooden Industry Co., Ltd.
43. Karly Wood Product Limited
44. Kember Flooring, Inc., a.k.a. Kember Hardwood Flooring, Inc.
45. Kemian Wood Industry (Kunshan) Co., Ltd.
46. Kingman Floors Co., Ltd.
47. Lauzon Distinctive Hardwood Flooring
48. Linyi Anying Wood Co., Ltd.
49. Linyi Youyou Wood Co., Ltd. (successor-in-interest to Shanghai 
Lizhong Wood Products Co., Ltd.) (a/k/a The Lizhong Wood Industry 
Limited Company of Shanghai)
50. Metropolitan Hardwood Floors, Inc.
51. Pinge Timber Manufacturing (Zhejiang) Co., Ltd.
52. Power Dekor North America Inc.
53. Scholar Home (Shanghai) New Material Co. Ltd.
54. Shanghaifloor Timber (Shanghai) Co., Ltd.
55. Sino-Maple (Jiangsu) Co., Ltd.
56. Suzhou Dongda Wood Co., Ltd.
57. Tongxiang Jisheng Import and Export Co., Ltd.
58. Xiamen Yung De Ornament Co., Ltd.
59. Xuzhou Shenghe Wood Co., Ltd.
60. Yekalon Industry, Inc.
61. Yihua Lifestyle Technology Co., Ltd.
62. Zhejiang Dadongwu GreenHome Wood Co., Ltd. (a.k.a. Zhejiang 
Dadongwu Greenhome Wood Co., Ltd. and Zhejiang Dadongwu Green Home 
Wood Co., Ltd.)
63. Zhejiang Fuerjia Wooden Co., Ltd.
64. Zhejiang Jiechen Wood Industry Co., Ltd.
65. Zhejiang Longsen Lumbering Co., Ltd.
66. Zhejiang Simite Wooden Co., Ltd.

[FR Doc. 2022-13006 Filed 6-15-22; 8:45 am]
BILLING CODE 3510-DS-P