[Federal Register Volume 87, Number 163 (Wednesday, August 24, 2022)]
[Notices]
[Pages 51967-51969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18250]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-107]


Wooden Cabinets and Vanities and Components Thereof From the 
People's Republic of China: Final Results and Partial Rescission of 
Countervailing Duty Administrative Review; 2019-2020

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to the producers and 
exporters subject to the administrative review of wooden cabinets and 
vanities and components thereof (cabinets) from the People's Republic 
of China (China) during the period of review (POR) August 12, 2019, 
through December 31, 2020. Commerce is also rescinding the review with 
respect to four companies that had no reviewable entries during the 
POR.

DATES: Applicable August 24, 2022.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer, 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) 482-0410.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the Preliminary Results of this administrative 
review in the Federal Register on May 6, 2022, and invited interested 
parties to comment.\1\ On June 6, 2022, we received timely case briefs 
from the American Kitchen Cabinet Alliance (the petitioner) and Dalian 
Hualing Wood Co., Ltd. (Hualing). On June 13, 2022, we received timely 
rebuttal briefs from the petitioner and from Hualing. For a complete 
description of the events that occurred since the Preliminary Results, 
see the Issues and Decision Memorandum.\2\
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    \1\ See Wooden Cabinets and Vanities and Components Thereof from 
the People's Republic of China: Preliminary Results of 
Countervailing Duty Administrative Review, Rescission and Intent To 
Rescind Administrative Review, in Part; 2019-2020, 87 FR 27099 (May 
6, 2022) (Preliminary Results), and accompanying Preliminary 
Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review of 
Wooden Cabinets and Vanities and Components Thereof from the 
People's Republic of China; 2019-2020,'' dated concurrently with, 
and hereby adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Order 3
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    \3\ See Wooden Cabinets and Vanities and Components Thereof from 
the People's Republic of China: Countervailing Duty Order, 85 FR 
22134 (April 21, 2020) (Order).
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    The product covered by the Order is cabinets from China. A full 
description of the scope of the Order is contained in the Issues and 
Decision Memorandum.

Analysis of Comments Received

    All issues raised by interested parties in briefs are addressed in 
the Issues and Decision Memorandum accompanying this notice. A list of 
the issues raised by interested parties and to which Commerce responded 
in the Issues and Decision Memorandum is provided in the Appendix to 
this notice. 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 comments in case and rebuttal briefs and record evidence, 
Commerce made certain changes from the Preliminary Results with regard 
to the calculation of Hualing's program rates. As a result of the 
changes to Hualing's program rates, the final rate for Jiangsu 
Xiangsheng Bedtime Furniture Co., Ltd., and Senke Manufacturing Company 
(i.e., the non-selected respondents) and the final total adverse facts 
available (AFA) rates for Nantong Aershin Cabinet Co., Ltd. (i.e., the 
non-cooperative mandatory respondent) also changed. These changes are 
explained in the Issues and Decision Memorandum.

Methodology

    Commerce conducted this administrative review in accordance with 
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). 
For each subsidy program found to be countervailable, Commerce finds 
that there is a subsidy, i.e., a financial contribution from a 
government or public entity that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\4\ For a full description 
of the methodology underlying all of Commerce's conclusions, including 
any determination that relied upon the use of AFA pursuant to section 
776(a) and (b) of the Act, see the Issues and Decision Memorandum.
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    \4\ 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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Rescission of Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
CVD order, pursuant to 19 CFR 351.213(d)(3), when there are no 
reviewable entries of subject merchandise during the POR for which 
liquidation is suspended.\5\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the CVD 
assessment rate calculated for the review period.\6\ Therefore, for an 
administrative review of a company to be conducted, there must be a 
reviewable, suspended entry that Commerce can instruct U.S. Customs and 
Border Protection (CBP) to liquidate at the CVD assessment rate 
calculated for the review period.\7\
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    \5\ Id.
    \6\ See 19 CFR 351.212(b)(2).
    \7\ See 19 CFR 351.213(d)(3).
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    As noted in the Preliminary Results, according to the CBP import 
data, the following four companies subject to this review did not have 
reviewable entries of subject merchandise during the POR for which 
liquidation is suspended: (1) Guangzhou Nuolande Import and Export Co., 
Ltd.; (2) Linyi Kaipu Furniture Co., Ltd.; (3) Shandong Longsen Woods 
Co., Ltd.; and (4) Zhoushan For-strong Wood Co., Ltd. Accordingly, in 
the Preliminary Results, Commerce stated its intention to rescind the 
review with respect to these companies in the final results. We 
continue to find these companies had no reviewable entries of subject 
merchandise during the POR for which liquidation is suspended. Because 
there is no evidence on the record of this segment of the proceeding to 
indicate that these companies had entries, exports, or sales of subject 
merchandise to the United States during the POR, we are rescinding this 
review with respect to these companies, consistent with 19 CFR 
351.213(d)(3).

[[Page 51968]]

Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
examination when Commerce limits its examination in an administrative 
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce 
looks to section 705(c)(5) of the Act, which provides instructions for 
determining the all-others rate in an investigation, for guidance when 
calculating the rate for companies which were not selected for 
individual examination in an administrative review. Under section 
705(c)(5)(A) of the Act, the all-others rate is normally ``an amount 
equal to the weighted average of the countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero or de minimis countervailable subsidy rates, and any 
rates determined entirely {on the basis of facts available{time} .''
    There are two companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross owned with a mandatory respondent: (1) Jiangsu 
Xiangsheng Bedtime Furniture Co., Ltd., and (2) Senke Manufacturing 
Company. For these non-selected companies, we are basing the subsidy 
rate on the subsidy rate calculated for Hualing, the only mandatory 
respondent with a final subsidy rate that is not zero, de minimis, or 
based entirely on facts available.\8\ This methodology to establish the 
non-selected subsidy rate is consistent with our practice with regard 
to the all-others rate, pursuant to section 705(c)(5)(A)(i) of the Act.
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    \8\ See Issues and Decision Memorandum at 5.
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Final Results of Administrative Review

    In accordance with 19 CFR 351.221(b)(5), Commerce calculated the 
following net countervailable subsidy rates for the period August 12, 
2019, through December 31, 2020:
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    \9\ This company was selected as a mandatory respondent but did 
not respond to Commerce's initial questionnaire. Accordingly, the 
rate for this company was based on facts available with an adverse 
inference pursuant to sections 776(a) and (b) of the Act. For a 
detailed discussion, see Preliminary Results PDM.

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                                                                   Subsidy Rate--2019       Subsidy Rate--2020
                            Company                               (percent ad valorem)     (percent ad valorem)
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Dalian Hualing Wood Co., Ltd..................................                     8.44                     2.78
Nantong Aershin Cabinet Co., Ltd \9\..........................                   144.63                   144.63
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                       Review-Specific Average Rate Applicable to the Following Companies
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Jiangsu Xiangsheng Bedtime Furniture Co., Ltd.................                     8.44                     2.78
Senke Manufacturing Company...................................                     8.44                     2.78
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Disclosure

    We intend to disclose the calculations performed in connection with 
these final results to parties in this proceeding within five days 
after public announcement of the final results or, if there is no 
public announcement, within five days of the date of publication of the 
notice of final results in the Federal Register, in accordance with 19 
CFR 351.224(b).

Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce will determine, CBP shall assess, 
countervailing duties on all appropriate entries of subject merchandise 
covered by this review. 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)(1) of the Act, Commerce 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 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 an 
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

    Commerce is issuing and publishing these final results in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(5).

    Dated: August 18, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Changes Since the Preliminary Results
V. Rescission of the Administrative Review, In Part
VI. Non-Selected Companies Under Review
VII. Subsidies Valuation Information
VIII. Interest Rates, Discount Rates, and Benchmarks
IX. Use of Facts Otherwise Available and Application of Adverse 
Inferences
X. Analysis of Programs
XI. Analysis of Comments

[[Page 51969]]

    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) to the Export Buyer's Credit (EBC) Program
    Comment 2: Whether Producers of Certain Inputs Are Authorities
    Comment 3: Whether the Provision of Electricity Provided a 
Financial Contribution and Is Specific
    Comment 4: Whether Commerce Should Apply AFA to ``Other 
Subsidies''
    Comment 5: Whether Commerce Should Adjust the Benchmark for 
Plywood
    Comment 6: Whether Commerce Should Adjust the Benchmark for Sawn 
Wood and Shaped Wood
XII. Recommendation

[FR Doc. 2022-18250 Filed 8-23-22; 8:45 am]
BILLING CODE 3510-DS-P