[Federal Register Volume 88, Number 87 (Friday, May 5, 2023)]
[Notices]
[Pages 29084-29086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09571]


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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: Preliminary Results of Countervailing Duty 
Administrative Review, Rescission of Administrative Review in Part, and 
Intent To Rescind in Part; 2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of wooden cabinets and vanities and components 
thereof (wooden cabinets) from the People's Republic of China (China). 
The period of review (POR) is January 1, 2021, through December 31, 
2021. Interested parties are invited to comment on these preliminary 
results.

DATES: Applicable May 5, 2023.

FOR FURTHER INFORMATION CONTACT: Konrad Ptaszynski or Michael Romani, 
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) 482-6187 or (202) 
482-0198, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On April 21, 2020, Commerce published in the Federal Register the 
countervailing duty (CVD) order on wooden cabinets from China.\1\ On 
June 9, 2022, Commerce published the notice of initiation of an 
administrative review of the Order for the period January 1, 2021, 
through December 31, 2021.\2\ On August 16, 2022, Commerce selected The 
Ancientree Cabinet Co., Ltd. (Ancientree), as the sole mandatory 
respondent in this administrative review. However, between August 30 
and September 7, 2022, multiple respondents timely withdrew their 
requests for review, including Ancientree.\3\ As a result, on September 
26, 2022, Commerce selected Fujian Dushi Wooden Industry Co. (Dushi) 
and Jiangsu Sunwell Cabinetry Co., Ltd. (Sunwell) as mandatory 
respondents in this administrative review.\4\ On December 16, 2022, 
Commerce exercised its discretion to extend the deadline for the 
preliminary results of this review by 118 days, until April 28, 
2023.\5\
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    \1\ 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).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 35165, 35176 (June 9, 2022). Although 
we received a request for review from Vivaldi Commercial, LLC d/b/a 
Superior Granite and Marble by Vivaldi, and Vivaldi Interiors, LLC 
(collectively, Vivaldi) with respect to Grand Supremacy Sdn. Bhd. 
(Grand Supremacy) a Malaysian producer and exporter of wooden 
cabinets, we did not initiate an administrative review of Grand 
Supremacy because it is located in Malaysia not China, as in the 
Order. See Vivaldi's Letter, ``Request for Administrative Review,'' 
dated May 1, 2022.
    \3\ See Ancientree's Letter, ``Withdrawal of Requests for 
Administrative Review,'' dated August 30, 2022 (Ancientree Companies 
Withdrawal); see also Senke Manufacturing Company's Letter, 
``Withdrawal of Requests for 2021 Administrative Review,'' dated 
September 7, 2022 (Senke Companies Withdrawal).
    \4\ See Memorandum, ``Second Respondent Selection,'' dated 
September 26, 2022
    \5\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of the Countervailing Duties Administrative Review; 2021,'' 
dated December 16, 2022.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\6\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included as appendix I to this notice. The Preliminary 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 http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Administrative Review of the Countervailing Duty 
Order on Wooden Cabinets and Vanities and Components Thereof from 
the People's Republic of China; 2021,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order is wooden cabinets from China. For 
a complete description of the scope, see the Preliminary Decision 
Memorandum.

Methodology

    Commerce is conducting this administrative 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, Commerce 
preliminarily finds 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).\7\
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    \7\ 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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    In making these findings, Commerce relied, in part, on facts 
available and, because it finds that one or more respondents, including 
the Government of China, did not act to the best of their ability to 
respond to Commerce's requests for information, it drew an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\8\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Rescission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. Commerce received timely-filed 
withdrawal of review requests with respect to 12 companies, pursuant to 
19 CFR 351.213(d)(1).\9\ Because the withdrawal requests were timely 
filed and no other parties requested a review of these companies, in 
accordance with 19 CFR 351.213(d)(1), Commerce is rescinding

[[Page 29085]]

this review of the Order for the 12 companies listed in appendix 
II.\10\
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    \9\ See Ancientree Companies Withdrawal; see also Senke 
Companies Withdrawal.
    \10\ See, e.g., Lightweight Thermal Paper from the People's 
Republic of China: Notice of Rescission of Countervailing Duty 
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); and 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China: Rescission of Countervailing Duty Administrative Review; 
2017, 84 FR 14650 (April 11, 2019).
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Intent To Rescind Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
countervailing duty 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.\11\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\12\ 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 calculated countervailing duty assessment rate calculated for the 
review period.\13\ According to the CBP import data on the record, 
there are seven companies, KM Cabinetry Co, Ltd., Shanghai Zifeng 
International Trading Co., Ltd, Sheen Lead International Trading 
(Shanghai) Co., Ltd., Shouguang Fushi Wood Co., Ltd., Taishan Oversea 
Trading Company Ltd., Taizhou Overseas Int'l Ltd., Xiamen Adler 
Cabinetry Co., Ltd., subject to this review that did not have 
reviewable entries of subject merchandise during the POR for which 
liquidation is suspended. Accordingly, in the absence of reviewable, 
suspended entries of subject merchandise during the POR, we intend to 
rescind this administrative review with respect to these seven 
companies, in accordance with 19 CFR 351.213(d)(3).
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    \11\ Id.
    \12\ See 19 CFR 351.212(b)(2).
    \13\ See 19 CFR 351.213(d)(3).
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Preliminary Results of Administrative Review

    As a result of this administrative review, we preliminarily find 
that the following net countervailable subsidy rates exist for the 
period January 1, 2021, through December 31, 2021:

------------------------------------------------------------------------
                                                           Subsidy rate
                        Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
Fujian Dushi Wooden Industry Co., Ltd..................           14.60
Jiangsu Sunwell Cabinetry Co., Ltd.....................            7.47
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 Review-Specific Average Rate Applicable to the Following Companies \14\
------------------------------------------------------------------------
KM Cabinetry Co, Ltd...................................           12.69
Nantong Aershin Cabinet Co., Ltd.......................           12.69
Shanghai Zifeng International Trading Co., Ltd.........           12.69
Sheen Lead International Trading (Shanghai) Co. Ltd....           12.69
Shouguang Fushi Wood Co., Ltd..........................           12.69
Taishan Oversea Trading Company Ltd....................           12.69
Taizhou Overseas Int'l Ltd.............................           12.69
Weifang Fuxing Wood Co., Ltd...........................           12.69
Xiamen Adler Cabinetry Co., Ltd........................           12.69
Yixing Pengjia Technology Co., Ltd.....................           12.69
Yixing Pengjia Cabinetry Co., Ltd......................           12.69
Zaozhuang New Sharp Import & Export Trading Co., Ltd...           12.69
Zhoushan For-strong Wood Co., Ltd......................           12.69
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Preliminary Rate for Non-Selected Companies Under Review
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    \14\ This rate is based on the rate for the respondents that 
were selected for individual review, excluding rates that are zero, 
de minimis, or based entirely on facts available. See section 
705(c)(5)(A) of the Act.
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    There are 13 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. The statute and 
Commerce's regulations do not directly address the establishment of 
rates to be applied to companies not selected for individual 
examination where Commerce limits its examination in an administrative 
review pursuant to section 777A(e)(2) of the Act. However, Commerce 
normally determines the rates for non-selected companies in reviews in 
a manner that is consistent with section 705(c)(5) of the Act, which 
provides the basis for calculating the all-others rate in an 
investigation.
    Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general 
rule, to calculate an all-others rate equal to the weighted average of 
the countervailable subsidy rates established for exporters and/or 
producers individually examined, excluding any rates that are zero, de 
minimis, or based entirely on facts available. In this review, the 
preliminary rates calculated for Dushi and Sunwell were above de 
minimis and not based entirely on facts available. Therefore, we are 
applying to the non-selected companies the average of the net subsidy 
rates calculated for Dushi and Sunwell, which we calculated using the 
publicly-ranged sales data submitted by Dushi and Sunwell.\15\ This 
methodology to establish the rate for the non-selected companies uses 
section 705(c)(5)(A) of the Act, which governs the calculation of the 
``all-others'' rate in an investigation, as guidance. For further 
information on the calculation of the non-selected respondent rate, 
refer to the section in the Preliminary Decision Memorandum entitled 
``Non-Selected Companies Under Review.''
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    \15\ With two respondents under examination, Commerce normally 
calculates: (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010).

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[[Page 29086]]

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts calculated 
in the final results of this review for 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. If the rate calculated in 
the final results is zero or de minimis, no cash deposit will be 
required on shipments of the subject merchandise entered or withdrawn 
from warehouse, for consumption on or after the date of publication of 
the final results of this review. For all non-reviewed companies, CBP 
will continue to collect cash deposits of estimated countervailing 
duties at the all-others rate (i.e., 41.17 percent) \16\ or the most 
recent company-specific rate applicable to the company, as appropriate. 
These cash deposit requirements, when imposed, shall remain in effect 
until further notice.
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    \16\ See Order, 85 FR at 19928.
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Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Consistent with section 751(a)(1) of the Act and 
19 CFR 351.212(b)(2), upon issuance of the final results, Commerce 
shall determine, and CBP shall assess, countervailing duties on all 
appropriate entries covered by this review. We intend to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review in the Federal 
Register. 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 with these 
preliminary results, we 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 period July 13, 
2020, through December 31, 2021, in accordance with 19 CFR 
351.212(c)(l)(i).

Disclosure and Public Comment

    We will disclose the calculations performed for these preliminary 
results to parties in this proceeding within five days after public 
announcement of the preliminary results in accordance with 19 CFR 
351.224(b). Pursuant to 19 CFR 351.309(c), interested parties may 
submit case briefs no later than 30 days after the date of publication 
of this notice. Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed no later than seven days after the date for filing 
case briefs.\17\ Parties who submit case or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) a statement 
of the issue, (2) a brief summary of the argument, and (3) a table of 
authorities.\18\ Commerce has temporarily modified certain of its 
requirements for serving documents containing business proprietary 
information.\19\
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    \17\ See 19 CFR 351.309(d).
    \18\ See 19 CFR 351.309(c)(2) and (d)(2).
    \19\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, filed electronically via ACCESS. An 
electronically filed document must be received successfully in its 
entirety by Commerce's electronic records system, ACCESS, by 5:00 p.m. 
Eastern Time within 30 days after the date of publication of this 
notice.\20\ Requests should contain: (1) The party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. If a request for a hearing is made, we will 
inform parties of the scheduled date and time for the hearing.
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    \20\ See 19 CFR 351.310(c).
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    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in case briefs, within 120 days after the date of 
publication of these preliminary results in the Federal Register, 
pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Notification to Interested Parties

    These preliminary results and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.213 and 351.221(b)(4).

    Dated: April 28, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under Review
V. Intent to Rescind Administrative Review, In Part
VI. Partial Rescission of Administrative Review
VII. Diversification of China's Economy
VIII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
IX. Subsides Valuation
X. Interest Rate, Discount Rate, Input, Electricity, and Land 
Benchmarks
XI. Analysis of Programs
XII. Recommendation

Appendix II

List of Companies for Which Requests for Review Were Timely Withdrawn

1. Anhui Xinyuanda Cupboard Co., Ltd
2. Guangzhou Nuolande Import and Export Co., Ltd.
3. Jiang Su Rongxin Wood Industry Co., Ltd
4. Jiang Su Rongxin Cabinets Ltd
5. Jiangsu Weisen Houseware Co., Ltd
6. Linyi Bomei Furniture Co., Ltd
7. Linyi Kaipu Furniture Co., Ltd.
8. Qufu Xinyu Furniture Co., Ltd.
9. Senke Manufacturing Company
10. Shandong Longsen Woods Co., Ltd.
11. The Ancientree Cabinet Co., Ltd.
12. Yichun Dongmeng Wood Co., Ltd

[FR Doc. 2023-09571 Filed 5-4-23; 8:45 am]
BILLING CODE 3510-DS-P