[Federal Register Volume 89, Number 94 (Tuesday, May 14, 2024)]
[Notices]
[Pages 41939-41941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10512]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-971]
Multilayered Wood Flooring From the People's Republic of China:
Final Results of Countervailing Duty Administrative Review; 2021
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 12 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, 2021, through December 31, 2021.
DATES: Applicable May 14, 2024.
FOR FURTHER INFORMATION CONTACT: Craig Matney 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) 482-2429 or (202)
482-9175, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this administrative
review in the Federal Register on December 28, 2023, and invited
interested parties to comment.\1\ On February 8, 2024, we received case
briefs from the following interested parties: Riverside,\2\ Jiangsu
Senmao, the Government of the People's Republic of China (GOC), and the
American Manufacturers of Multilayered Wood Flooring (AMMWF).\3\ In
addition, Commerce received a letter from Anhui Longhua Bamboo Product
Co., Ltd.; Benxi Flooring Factory (General Partnership); Benxi Wood
Company; Dalian Jiahong Wood Industry Co., Ltd.; Dalian Shengyu Science
and Technology Development Co., Ltd.; Dongtai Fuan Universal Dynamics,
LLC; HaiLin LinJing Wooden Products Co., Ltd.; Jiangsu Mingle Flooring
Co., Ltd.; Jiangsu Simba Flooring Co., Ltd.; Jiangsu Yuhui
International Trade Co., Ltd.; Jiashan On-Line Lumber Co., Ltd.;
Kingman Wood Industry Co., Ltd.; Pinge Timber Manufacturing (Zhejiang)
Co., Ltd.; Suzhou Dongda Wood Co., Ltd.; Tongxiang Jisheng Import and
Export Co., Ltd.; Yihua Lifestyle Technology Co., Ltd.; Zhejiang Shiyou
Timber Co., Ltd.; and Lumber Liquidators Services, LLC (collectively,
CH Respondents) supporting arguments made by the mandatory respondents
and the GOC.\4\ On February 20, 2024, AMMWF, Riverside, and Jiangsu
Senmao submitted timely rebuttal briefs.\5\ Also on February 20, 2024,
Commerce received a letter from the CH Respondents supporting the
arguments presented in the rebuttal briefs by the GOC and the mandatory
respondents.\6\
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\1\ See Multilayered Wood Flooring from the People's Republic of
China: Preliminary Results and Partial Rescission of Countervailing
Duty Administrative Review; 2021, 88 FR 89664 (December 28, 2023)
(Preliminary Results), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ We previously determined Baroque Timber (Zhongshan)
Industries, Suzhou Times Flooring Co., Ltd., and Zhongshan Lianjia
Flooring Co., Ltd. to be cross-owned affiliates of Riverside. See,
e.g., Multilayered Wood Flooring from the People's Republic of
China: Final Results of Countervailing Duty Administrative Review;
2020, 88 FR 34828 (May 31, 2023).
\3\ See AMMWF's Letter, ``Case Brief,'' dated February 8, 2024;
see also GOC's Letter, ``GOC Case Brief,'' dated February 8, 2024;
Riverside's Letter, ``Administrative Case Brief,'' dated February 8,
2024; and Jiangsu Senmao's Letter, ``Case Brief on behalf of Jiangsu
Senmao Bamboo and Wood Industry Co., Ltd.,'' dated February 8, 2024.
\4\ See CH Respondents' Letter, ``Letter in Lieu of Case
Brief,'' dated February 8, 2024.
\5\ See AMMWF's Letter, ``Rebuttal Brief,'' dated February 20,
2024; see also Riverside's Letter, ``Rebuttal Brief,'' dated
February 20, 2024; and Jiangsu Senmao's Letter, ``Rebuttal Brief,''
dated February 20, 2024.
\6\ See CH Respondents' Letter, ``Letter in Lieu of Rebuttal
Brief,'' dated February 20, 2024.
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Scope of the Order
The product covered by the Order \7\ is multilayered wood flooring
from China. For a complete description of the scope of the Order, see
the Issues and Decision Memorandum.\8\
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\7\ See Multilayered Wood Flooring from the People's Republic of
China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011);
see also Multilayered Wood Flooring from the People's Republic of
China: Amended Antidumping and Countervailing Duty Orders, 77 FR
5484 (February 3, 2012); 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) (collectively, Order).
\8\ See Memorandum, ``Decision Memorandum for the Final Results
of the Countervailing Duty Administrative Review of Multilayered
Wood Flooring from the People's Republic of China; 2021,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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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, and we revised the net countervailable subsidy rates for
Riverside and Jiangsu Senmao. These changes 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.\9\ 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.
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\9\ 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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Rate for Non-Selected Companies Under Review
The statute and Commerce's regulations do not address the
establishment of a rate to be applied to companies not selected for
individual examination when 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
[[Page 41940]]
rule, to calculate the all-others rate 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.
There are 12 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. Because the rates
calculated for the participating mandatory respondents in this review,
Riverside and Jiangsu Senmao, were above de minimis and not entirely
based on facts available, we calculated a rate for these 12 non-
selected companies 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.\10\
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\10\ See Memorandum, ``Calculation of the Non-Selected Rate for
the Final Results,'' dated concurrently with this notice.
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This is the same methodology Commerce applied in the Preliminary
Results for determining a rate for companies not selected for
individual examination. However, due to changes in the calculations for
Riverside and Jiangsu Senmao, we revised the non-selected rate
accordingly. Consequently, for the 12 non-selected companies for which
a review was requested and not rescinded, we are applying an ad valorem
subsidy rate of 21.97 percent.
Final Results of Administrative Review
We determine the countervailable subsidy rates for the mandatory
and non-selected respondents under review for the period of January 1,
2021, through December 31, 2021, are as follows:
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Subsidy rate
Producer/exporter (percent ad
valorem)
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Riverside Plywood Corporation and Its Cross-Owned 30.85
Affiliate\11\..........................................
Jiangsu Senmao Bamboo and Wood Industry Co., Ltd........ 5.39
Non-Selected Companies Under Review\12\................. 21.97
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Disclosure
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\11\ Cross-owned affiliates are Baroque Timber (Zhongshan)
Industries, Suzhou Times Flooring Co., Ltd., and Zhongshan Lianjia
Flooring Co., Ltd.
\12\ See Appendix II.
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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).
Assessment Rates
Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and U.S.
Customs and Border Protection (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).
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 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, and 19 CFR
351.221(b)(5).
Dated: May 7, 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 Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Non-Selected Companies Under 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 the Issues
Comment 1: Whether to Apply Adverse Facts Available (AFA) to the
Export Buyer's Credit Program
Comment 2: Whether to Apply AFA Regarding the Countervailability
of the Provision of Electricity for Less Than Adequate Remuneration
(LTAR)
Comment 3: Whether to Apply AFA to Specificity Regarding the
Countervailability of the Provision of Inputs for LTAR
Comment 4: Whether Individually-Owned Suppliers Are Government
Authorities
Comment 5: Whether Commerce Should Exclude Certain International
Tropical Timber Organization (ITTO) Data or Weight These Data
Differently for the Wood Input Benchmarks
A. Whether to Exclude Certain ITTO Data
B. Whether Commerce Should Rely Only on the Tropical Timber
Market Report (TTMR) Grade-Specific Prices to Value Plywood
C. Whether to Weight the ITTO's TTMR and Biennial Review
Statistics (BRS) Data Using Country-Specific Averages
[[Page 41941]]
D. Whether to Include Domestic Brazilian Pricing Data in Tier
Two World Market Benchmark Prices
Comment 6: Whether to Revise the Veneer for LTAR Benchmark
A. Whether to Include Harmonized System (HS) Subheading 4408.31
B. Whether to Exclude HS Subheadings 4407.10 and 4407.11
C. Whether to Exclude Certain Allegedly Aberrational Data from
Singapore
Comment 7: Whether to Revise the Plywood for LTAR Benchmark
Comment 8: Whether to Rely on Certain Ocean Freight Benchmark
Data Used to Calculate the Ocean Freight Benchmarks
Comment 9: Whether Loans from Non-Chinese Owned Banks Are
Countervailable
Comment 10: Whether Commerce Made Ministerial Errors in the
Subsidy Rate Calculations Pertaining to Various Provision of Inputs
for LTAR Programs
XI. Recommendation
Appendix II--Non-Selected Companies Under Review
1. Dalian Penghong Floor Products Co., Ltd.
2. Dalian Shumaike Floor Manufacturing Co., Ltd.
3. Fine Furniture (Shanghai) Limited \13\
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\13\ Commerce previously found Great Wood (Tonghua) Ltd. and
Fine Furniture Plantation (Shishou) Ltd. to be cross-owned with Fine
Furniture (Shanghai) Limited. See Multilayered Wood Flooring from
the People's Republic of China: Final Affirmative Countervailing
Duty Determination,76 FR 64313 (October 18, 2011).
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4. Fusong Jinlong Wooden Group Co., Ltd.
5. Fusong Qianqiu Wooden Product Co., Ltd.
6. Huzhou Fulinmen Imp. & Exp. Co., Ltd.
7. Huzhou Jesonwood Co., Ltd.
8. Jiangsu Guyu International Trading Co., Ltd.
9. Jiashan HuiJiaLe Decoration Material Co., Ltd.
10. Metropolitan Hardwood Floors, Inc.
11. Pinge Timber Manufacturing (Zhejiang) Co., Ltd.
12. Zhejiang Fuerjia Wooden Co., Ltd.
[FR Doc. 2024-10512 Filed 5-13-24; 8:45 am]
BILLING CODE 3510-DS-P