[Federal Register Volume 89, Number 86 (Thursday, May 2, 2024)]
[Notices]
[Pages 35782-35785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09579]


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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 and Partial Rescission 
of Countervailing Duty Administrative Review; 2022

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies were provided to producers 
and exporters of wooden cabinets and vanities and components thereof 
(wooden cabinets) from the People's Republic of China (China), during 
the period of review (POR) January 1, 2022, through December 31, 2022. 
In addition, Commerce is rescinding this review, in part, with respect 
to 28 companies. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable May 2, 2024.

FOR FURTHER INFORMATION CONTACT: Suresh Maniam 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) 482-1603 or (202) 
482-0198, respectively.

Background

    On April 21, 2020, Commerce published in the Federal Register the 
countervailing duty (CVD) order on wooden cabinets from China.\1\ On 
June 12, 2023, Commerce published in the Federal Register the notice of 
initiation of an administrative review of the Order.\2\ On August 16, 
2023, Commerce selected The Ancientree Cabinet Co., Ltd. (Ancientree) 
and Jiangsu Sunwell Cabinet Co. Ltd. (Sunwell) for individual 
examination as the mandatory respondents in this administrative 
review.\3\ Between September 13 and October 25, 2023, multiple parties 
either withdrew their requests for review or did not respond to our 
initial questionnaire.\4\ On November 13, 2023, we also selected Yixing 
Pengjia Cabinetry Co., Ltd. for individual examination as a mandatory 
respondent.\5\ During the course of this proceeding, Yixing Pengjia 
Cabinetry Co., Ltd. explained that its name changed to Yixing Pengjia 
Technology Co., Ltd. (Pengjia). On December 4, 2023, we extended the 
deadline for the preliminary results of this administrative review 
until April 26, 2024.\6\
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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, 88 FR 38021, 38033 (June 12, 2023).
    \3\ See Memorandum, ``Respondent Selection,'' dated August 16, 
2023.
    \4\ For a full description of events regarding respondent 
selection, see Memorandum ``Fourth Respondent Selection,'' dated 
November 13, 2023.
    \5\ Id.
    \6\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated 
October 30, 2023.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\7\ 
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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    \7\ 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; 2022,'' 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 of the Order, 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

[[Page 35783]]

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).\8\ For a 
full description of the methodology underlying our conclusions, 
including our reliance, in part, on adverse facts available pursuant to 
sections 776(a) and (b) of the Act, see the Preliminary Decision 
Memorandum.
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    \8\ 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

    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 for nine companies.\9\ Because the 
withdrawal requests were timely filed and no other parties requested a 
review of these companies, we are rescinding this review of the Order, 
in accordance with 19 CFR 351.213(d)(1). For a list of these companies 
with timely-filed withdrawal of review requests, see Appendix II.
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    \9\ See Letter on Behalf of Several Companies, ``Withdrawal of 
Request for Administrative Review,'' dated July 11, 2023 (on behalf 
of Shanghai Zifeng International Trading Co., Ltd. and Linyi Bonn 
Flooring Manufacture Co. Ltd.); see also Letter on Behalf of Several 
Companies, ``Withdrawal of Requests for Administrative Review,'' 
dated September 11, 2023.
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    Based on our analysis of U.S. Customs and Border Protection (CBP) 
data, we determine that 19 companies had no entries of subject 
merchandise during the POR. On August 21, 2023, we notified parties of 
our intent to rescind the administrative review with respect to 19 
companies because there are no reviewable suspended entries.\10\ No 
parties commented on the notification of intent to rescind the review, 
in part. Pursuant to 19 CFR 351.213(d)(3), we are rescinding the 
administrative review of these companies. For additional information 
regarding this determination, see the Preliminary Decision Memorandum. 
For a list of these companies with no reviewable suspended entries, see 
Appendix III.
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    \10\ See Memorandum, ``Intent to Rescind Review, in Part,'' 
dated August 21, 2023.
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Preliminary Rate for Non-Selected Companies Under Review

    There are seven 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 Ancientree and Pengjia 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 Ancientree and Pengjia, which we calculated using 
the publicly-ranged sales data.\11\ 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, see the Preliminary Decision 
Memorandum.
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    \11\ 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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Preliminary Results of Review

    We preliminarily find that Yixing Pengjia Technology Co., Ltd.'s 
claim that it is the same company as Yixing Pengjia Cabinetry Co., Ltd. 
is supported by information on the record. For a complete description, 
see the Preliminary Decision Memorandum. Parties are invited to comment 
on this issue for the final results. As a result of this administrative 
review, we preliminarily find that the following net countervailable 
subsidy rates exist for the period January 1, 2022, through December 
31, 2022:

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
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The Ancientree Cabinet Co., Ltd................                    14.23
Yixing Pengjia Technology Co., Ltd.\12\........                     0.91
Jiangsu Sunwell Cabinetry Co Ltd.\13\..........                   163.46
Taizhou Overseas Trading Company Ltd...........                   163.46
Taishan Oversea Trading Company Ltd............                   163.46
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 Review-Specific Average Rate Applicable to the Following Companies \14\
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Fujian Dushi Wooden Industry Co., Ltd..........                    17.20
Fuzhou CBM Import & Export Co., Ltd............                    17.20
KM Cabinetry Co., Ltd..........................                    17.20
Nantong Aershin Cabinet Co., Ltd...............                    17.20
Shouguang Fushi Wood Co., Ltd..................                    17.20
Weifang Fuxing Wood Co., Ltd...................                    17.20
Xiamen Adler Cabinetry Co., Ltd................                    17.20
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[[Page 35784]]

Cash Deposit Requirements
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    \12\ This company was formerly known as Yixing Pengjia Cabinetry 
Co., Ltd. See Pengjia's Letter ``Section III,'' dated January 4, 
2024, at 2 and Exhibit 5.1.
    \13\ Commerce previously found Shanghai Beautystar Cabinetry 
Co., Ltd. to be a cross-owned affiliate with Jiangsu Sunwell 
Cabinetry Co Ltd. See 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, 
88 FR 29084 (May 5, 2023), and accompanying Preliminary Decision 
Memorandum at 33, unchanged in Wooden Cabinets and Vanities and 
Components Thereof from the People's Republic of China: Final 
Results and Partial Recission of Countervailing Duty Administrative 
Review, 2021, 88 FR 76732 (November 7, 2023).
    \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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    In accordance with 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., 20.93 
percent) \15\ 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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    \15\ See Order, 85 FR at 22135.
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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.
    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 January 
1, 2022, through December 31, 2022, in accordance with 19 CFR 
351.212(c)(l)(i). For companies remaining under 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).

Disclosure and Public Comment

    Commerce intends to disclose its calculations and analysis 
performed to interested parties for these preliminary results 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 accordance with 19 CFR 351.224(b).
    Pursuant to 19 CFR 351.309(c)(1)(ii), 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.\16\ Parties who submit case or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) a table of 
contents listing each issue; and (2) a table of authorities.\17\
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    \16\ See 19 CFR 351.309(d).
    \17\ See 19 CFR 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 review, we instead request that 
interested parties provide at the beginning of their briefs a public, 
executive summary for each issue raised in their briefs.\18\ Further, 
we request that interested parties limit their public executive summary 
of each issue to no more than 450 words, not including citations. We 
intend to use the public executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final results in this administrative review. We 
request that interested parties include footnotes for relevant 
citations in the public 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).\19\
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    \18\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \19\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069, 67077 (September 29, 2023).
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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 whether any 
participant is a foreign national; 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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Final Results

    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 26, 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

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Recission of Administrative Review, in Part
V. Non-Selected Companies Under Review
VI. Diversification of China's Economy

[[Page 35785]]

VII. Use of Facts Available and Application of Adverse Inferences
VIII. Subsidies Valuation
IX. Interest Rate, Discount Rate, Input, Electricity, and Land 
Benchmarks
X. Analysis of Programs
XI. Recommendation

Appendix II

List of Companies Which Timely Withdrew Requests for Review

1. Shanghai Zifeng International Trading Co., Ltd.
2. Linyi Bonn Flooring Manufacture Co. Ltd.
3. Linyi Bomei Furniture Co., Ltd.
4. Honsoar New Building Material Co., Ltd.
5. Qingdao Shousheng Industry Co., Ltd.
6. Jiang Su Rongxin Wood Industry Co., Ltd.
7. Weifang Yuanlin Woodenware Co., Ltd.
8. Morewood Cabinetry Co., Ltd.
9. Pizhou Ouyme Import & Export Trade Co., Ltd.

Appendix III

List of Companies Which Did Not Have Reviewable Entries During the POR

1. Changyi Zhengheng Woodwork Co. Ltd.
2. Dalian Hualing Wood Co., Ltd.
3. Dalian Meisen Woodworking Co. Ltd. and Dalian Hechang Technology 
Development Co., Ltd.
4. Fujian Leifeng Cabinetry Co., Ltd.
5. Goldenhome Living Co. Ltd.
6. Guangzhou Nuolande Import and Export Co., Ltd.
7. Jiangsu Beichen Wood Co., Ltd.
8. Jiangsu Xiangsheng Bedtime Furniture Co., Ltd.
9. Linyi Kaipu Furniture Co., Ltd.
10. Senke Manufacturing Company
11. Shandong Jinhua Wood Co., Ltd.
12. Shandong Longsen Woods Co., Ltd.
13. Suofeiya Home Collection Co., Ltd.
14. Taishan Hongxiang Trading Co., Ltd.
15. Xuzhou Yihe Wood Co., Ltd.
16. Zaozhuang New Sharp Import & Export Trading Co., Ltd.
17. Zhangzhou OCA Furniture Co., Ltd.
18. Zhongshan NU Furniture Co., Ltd.
19. Zhoushan For-Strong Wood Co. Ltd.

Appendix IV

List of Non-Selected Companies Subject to This Administrative Review

1. Fujian Dushi Wooden Industry Co., Ltd.
2. Fuzhou CBM Import & Export Co., Ltd.
3. KM Cabinetry Co., Ltd.
4. Nantong Aershin Cabinet Co., Ltd
5. Shouguang Fushi Wood Co., Ltd
6. Weifang Fuxing Wood Co., Ltd.
7. Xiamen Adler Cabinetry Co., Ltd.

[FR Doc. 2024-09579 Filed 5-1-24; 8:45 am]
 BILLING CODE 3510-DS-P