[Federal Register Volume 89, Number 42 (Friday, March 1, 2024)]
[Notices]
[Pages 15152-15155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04323]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-859]


Mattresses From Mexico: Preliminary Affirmative Determination of 
Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that mattresses (mattresses) from Mexico are being, or are 
likely to be, sold in the United States at less than fair value (LTFV). 
The period of investigation (POI) is July 1, 2022, through June 30, 
2023. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable March 1, 2024.

FOR FURTHER INFORMATION CONTACT: Dakota Potts or Benjamin Blythe, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-0223 or (202) 
482-3457, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 23, 
2023.\1\ On October 23, 2023, Commerce postponed the preliminary 
determination of this investigation until February 23, 2024.\2\
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    \1\ See Mattresses from Bosnia and Herzegovina, Bulgaria, Burma, 
India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, 
Spain, and Taiwan: Initiation of Less-Than-Fair-Value 
Investigations, 88 FR 57433 (August 23, 2023) (Initiation Notice).
    \2\ See Mattresses From Bosnia and Herzegovina, Bulgaria, Burma, 
India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, 
Spain, and Taiwan: Postponement of Preliminary Determinations in the 
Less-Than-Fair-Value Investigations, 88 FR 72737 (October 23, 2023).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II 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 https://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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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of Sales at Less Than Fair Value in the 
Investigation of Mattresses from Mexico,'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The products covered by this investigation are mattresses from 
Mexico. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the Preamble,\4\ we set aside a period of time 
for parties to raise issues regarding product coverage (i.e., 
scope).\5\ Certain interested parties commented on the scope of the 
investigation as it appeared in the Initiation Notice. For a summary of 
the product coverage comments and rebuttal responses submitted to the 
record for this preliminary determination and accompanying discussion 
and analysis of all comments timely received, see the Preliminary Scope 
Decision Memorandum.\6\ Commerce is not preliminarily modifying the 
scope language as it appeared in the Initiation Notice. See the scope 
in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 88 FR at 57434.
    \6\ See Memorandum, ``Mattresses from Bosnia and Herzegovina, 
Bulgaria, Burma, India, Indonesia, Italy, Kosovo, Mexico, 
Philippines, Poland, Slovenia, Spain, and Taiwan: Preliminary Scope 
Decision Memorandum,'' dated concurrently with this preliminary 
determination (Preliminary Scope Decision Memorandum).

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[[Page 15153]]

    In the Preliminary Scope Decision Memorandum, Commerce established 
the deadline for parties to submit scope case and rebuttal briefs.\7\
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    \7\ Id.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce calculated export prices in accordance 
with sections 772(a) and (b) of the Act. Normal value is calculated in 
accordance with section 773 of the Act. For a full description of the 
methodology underlying the preliminary determination, see the 
Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce calculated an estimated weighted-
average dumping margin above de minimis for one mandatory respondent, 
Ureblock S.A. de C.V. (Ureblock), and applied the preliminary estimated 
weighted-average dumping margin for one mandatory respondent and one 
voluntary respondent, GAIM Regiomontana SA De CV (GAIM) and Wendy 
Colchones S.A. de C.V. (Wendy), respectively, under section 776 of the 
Act. Therefore, consistent with our practice,\8\ for the all-others 
rate in this investigation, we preliminarily assigned the above-de 
minimis dumping margin calculated for Ureblock as the all-others rate.
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    \8\ See Paper File Folders from India: Final Affirmative 
Determination of Sales at Less Than Fair Value, 88 FR 69138 (October 
5, 2023).
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                     dumping margin
                                                             (percent)
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Ureblock S.A. de C.V./Espumas de Oriente S.A. de C.V.\9\           41.29
GAIM Regiomontana SA De CV..............................         * 61.97
Wendy Colchones S.A. de C.V.............................         * 61.97
All Others..............................................           41.29
------------------------------------------------------------------------
* Adverse Facts Available (AFA)

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.
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    \9\ Commerce preliminarily determines that Ureblock and Espumas 
de Oriente S.A. de C.V. (Espumas) are affiliated pursuant to section 
771(33)(A) of the Act, and further that these companies should be 
treated as a single entity pursuant to 19 CFR 351.401(f). For 
further discussion, see Preliminary Decision Memorandum; see also 
Memorandum, ``Preliminary Determination Affiliation and Single 
Entity Memorandum for Ureblock S.A. de C.V. and Espumas de Oriente, 
S.A. de C.V.,'' dated concurrently with this notice.
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    Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) the cash deposit rates for the respondents 
listed above will be equal to the company-specific estimated weighted-
average dumping margins determined in this preliminary determination; 
(2) if the exporter is not a respondent identified above, but the 
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that 
producer of the subject merchandise; and (3) the cash deposit rate for 
all other producers and exporters will be equal to the all-others 
estimated weighted-average dumping margin.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in the Federal Register, in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than seven days after the date on which the last verification 
report is issued in this investigation.\10\ Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed not later than five days 
after the date for filing case briefs.\11\ Interested parties who 
submit case briefs or rebuttal briefs in this proceeding must submit: 
(1) a table of contents listing each issue; and (2) a table of 
authorities.\12\
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    \10\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \11\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \12\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\13\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\14\
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    \13\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \14\ See APO and Service Final Rule.
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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, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the

[[Page 15154]]

number of participants, whether any participant is a foreign national, 
and a list of the issues to be discussed. If a request for a hearing is 
made, Commerce will inform parties of the time and date for the 
hearing. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination in the Federal Register 
if, in the event of an affirmative preliminary determination, a request 
for such postponement is made by exporters who account for a 
significant proportion of exports of the subject merchandise, or in the 
event of a negative preliminary determination, a request for such 
postponement is made by the petitioners.\15\ Section 351.210(e)(2) of 
Commerce's regulations requires that a request by an exporter for 
postponement of the final determination be accompanied by a request for 
extension of provisional measures from a four-month period to a period 
not more than six months in duration.\16\
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    \15\ The petitioners are Brooklyn Bedding LLC; Carpenter Co.; 
Corsicana Mattress Company; Future Foam, Inc.; FXI, Inc.; Kolcraft 
Enterprises, Inc.; Leggett & Platt, Incorporated; Serta Simmons 
Bedding, LLC; Southerland, Inc.; Tempur Sealy International; the 
International Brotherhood of Teamsters; and the United Steel, Paper 
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union, AFL-CIO.
    \16\ See 19 CFR 351.210(e)(2).
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    Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination. On February 6, 2024, pursuant to 19 
CFR 351.210(e), the petitioners requested that Commerce postpone the 
final determination in accordance with 19 CFR 351.210(b)(2)(i) if the 
preliminary determination in the investigation is negative. However, 
since the preliminary determination is affirmative, the petitioners' 
request for postponement is not applicable.

U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports of mattresses from Mexico are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This preliminary determination is issued and published in 
accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 
351.205(c).

    Dated: February 23, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation 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 also may 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 investigation 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 or how they are described 
(e.g., frameless futon mattress and tri-fold mattress).
    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 investigation 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 investigation are ``futon'' 
mattresses. A ``futon'' is a bi-fold 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 such 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,'' ``sofabeds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers,'' or a like description.
    Also excluded from the scope of this investigation are any 
products covered by the existing antidumping duty orders on 
uncovered innerspring units from the People's Republic of China, 
South Africa, and the Socialist Republic of Vietnam. See Uncovered 
Innerspring Units from the People's Republic of China, South Africa, 
and Socialist Republic of Vietnam: Continuation of Antidumping Duty 
Orders, 84 FR 55285 (October 16, 2019).
    Also excluded from the scope of this investigation are bassinet 
pads with a nominal length of less than 39 inches, a nominal width 
of less than 25 inches, and a nominal depth of less than 2 inches.
    Additionally, also excluded from the scope of this investigation 
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 investigation are currently 
classifiable under Harmonized

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Tariff Schedule of the United States (HTSUS) subheadings: 
9404.21.0010, 9404.21.0013, 9404.21.0095, 9404.29.1005, 
9404.29.1013, 9404.29.1095, 9404.29.9085, 9404.29.9087, and 
9404.29.9095. Products subject to this investigation may also enter 
under HTSUS subheadings: 9401.41.0000, 9401.49.0000, and 
9401.99.9081. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
merchandise subject to this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Use of Facts Available With Adverse Inferences
V. Affiliation and Single Entity Treatment
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Recommendation

[FR Doc. 2024-04323 Filed 2-29-24; 8:45 am]
BILLING CODE 3510-DS-P