[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Notices]
[Pages 42439-42442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10564]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-873]


Mattresses From Taiwan: Final Affirmative Determination of Sales 
at Less Than Fair Value and Final Affirmative Determination of Critical 
Circumstances, in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
mattresses from Taiwan 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.

DATES: Applicable May 15, 2024.

FOR FURTHER INFORMATION CONTACT: Adam Simons, AD/CVD Operations, Office 
IX, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-6172.

SUPPLEMENTARY INFORMATION:

Background

    On March 1, 2024, Commerce published in the Federal Register its 
Preliminary Determination in the LTFV investigation of mattresses from 
Taiwan and we invited interested parties to comment.\1\ On February 28, 
2024, we received a timely-filed ministerial error allegation from Cozy 
Comfort LLC (Cozy Comfort), alleging that Commerce made a significant 
ministerial error in the Preliminary Determination regarding its 
affirmative determination of critical circumstances for all other 
producers and/or exporters of subject merchandise.\2\ On March 21, 
2024, Commerce published in the Federal Register the Amended 
Preliminary Determination, finding that critical circumstances do not 
exist with regard to all other producers and/or exporters.\3\

[[Page 42440]]

No other interested party submitted comments. Consequently, as the 
final determination remains unchanged from the Amended Preliminary 
Determination, there is no Issues and Decision Memorandum accompanying 
this notice.
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    \1\ See Mattresses from Taiwan: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 89 FR 15129 
(March 1, 2024) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Cozy Comfort's Letter, ``Ministerial Error Allegation,'' 
dated February 28, 2024.
    \3\ See Mattresses from Taiwan: Amended Preliminary 
Determination of Critical Circumstances for All other Producers and/
or Exporters, 89 FR 20164 (March 21, 2024) (Amended Preliminary 
Determination). For further discussion of the ministerial error 
allegation and the Commerce's analysis of it, see Memorandum, 
``Less-Than-Fair-Value Investigation of Mattresses from Taiwan: 
Allegation of Ministerial Errors in Preliminary Determination,'' 
dated March 15, 2024.
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Scope of the Investigation

    The products covered by this investigation are mattresses from 
Taiwan. For a complete description of the scope of this investigation, 
see the appendix to this notice.

Scope Comments

    During the course of this investigation, Commerce received scope 
comments from parties. Commerce issued a Preliminary Scope Decision 
Memorandum to address these comments and set aside a period of time for 
parties to address scope issues in scope-specific case and rebuttal 
briefs.\4\ We received comments from parties on the Preliminary Scope 
Decision Memorandum, which we address in the Final Scope Decision 
Memorandum.\5\ We made changes to the scope of the investigation from 
the scope published in the Preliminary Determination, as noted in the 
appendix to this notice.
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    \4\ 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 February 23, 2024.
    \5\ See Memorandum, ``Mattresses from Bosnia and Herzegovina, 
Bulgaria, Burma, India, Indonesia, Italy, Kosovo, Mexico, 
Philippines, Poland, Slovenia, Spain, and Taiwan: Final Scope 
Decision Memorandum,'' dated concurrently with this notice.
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Final Affirmative Determination of Critical Circumstances, in Part

    We continue to find that critical circumstances exist with respect 
to imports of mattresses from Taiwan for the mandatory respondents, 
Fuyue Mattress Industry Co., Ltd. (Fuyue Mattress); Star Seeds Co., 
Ltd. (Star Seeds); and Yong Yi Cheng Co., Ltd. (Yong Yi Cheng), 
pursuant to section 735(a)(3) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.206.\6\ However, in the Amended Preliminary 
Determination, Commerce found that critical circumstances do not exist 
for all other producers and/or exporters of subject merchandise.\7\ No 
parties submitted comments on this preliminary negative determination 
of critical circumstances for all other producers and/or exporters. 
Therefore, in accordance with 735(a)(3) of the Act and 19 CFR 351.206, 
Commerce continues to find that critical circumstances do not exist for 
all other producers and/or exporters.
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    \6\ See Preliminary Determination PDM at 7-12.
    \7\ See Amended Preliminary Determination.
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Use of Adverse Facts Available (AFA)

    As stated above, aside from the ministerial error allegation, we 
received no comments from any interested party. Consequently, this 
final determination remains unchanged from the Amended Preliminary 
Determination, and no decision memorandum accompanies this notice. 
Accordingly, for this final determination, we continue to find that the 
application of AFA pursuant to sections 776(a) and (b) of the Act is 
warranted with respect to the mandatory respondents in this 
investigation, i.e., Fuyue Mattress, Star Seeds, and Yong Yi Cheng.\8\
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    \8\ See Preliminary Determination, 89 FR at 15130.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and/or 
exporters not individually investigated shall be equal to the weighted 
average of the estimated weighted-average dumping margins established 
for exporters and producers individually investigated excluding rates 
that are zero, de minimis, or determined entirely under section 776 of 
the Act.
    In the Preliminary Determination, we assigned a dumping margin of 
624.50 percent as the all-others rate based on the only calculated rate 
in the petition, pursuant to section 735(c)(5)(B) of the Act.\9\ As 
noted above, we received no comments on the preliminary use of AFA; 
thus, we continue to assign a dumping margin of 624.50 percent as the 
all-others rate for this final determination.
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    \9\ Id.
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Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist for the period, July 1, 2022, through June 30, 
2023:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
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Fuyue Mattresses Industry Co., Ltd..........................    * 624.50
Yong Yi Cheng Co., Ltd......................................    * 624.50
Star Seeds Co., ltd.........................................    * 624.50
All-Others..................................................      624.50
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* Rate based on facts available with adverse inferences.

Disclosure

    Normally, Commerce will disclose to the parties in a proceeding the 
calculations performed in connection with a final 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). 
However, because Commerce received no comments on the Preliminary 
Determination, it is adopting the Preliminary Determination as the 
final determination in this investigation. Consequently, there are no 
new calculations to disclose.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(4) of the Act, because Commerce 
continues to find that critical circumstances exist for Fuyue Mattress, 
Star Seeds, and Yong Yi Cheng, we will instruct U.S. Customs and Border 
Protection (CBP) to continue to suspend liquidation of all entries of 
mattresses from Taiwan, as described in the appendix to this notice, 
which were entered, or withdrawn from warehouse for consumption on or 
after December 2, 2023, which is 90 days before the publication of the 
Preliminary Determination in the Federal Register, at the cash deposit 
rate indicated above. For all other producers and/or exporters, we will 
instruct CBP to continue to suspend liquidation of all entries of 
subject merchandise, as described in the appendix to this notice, which 
were entered, or withdrawn from warehouse for consumption on or after 
March 1, 2024, which is the date of publication of the affirmative 
Preliminary Determination in the Federal Register, at the cash deposit 
rate indicated above.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), where appropriate, 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 rate 
for the respondents listed above will be equal to the company-specific 
estimated weighted-average dumping margin determined in this

[[Page 42441]]

final 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. These 
suspension of liquidation instructions will remain in effect until 
further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of mattresses from Taiwan no later than 45 days 
after this final determination. If the ITC determines that such injury 
does not exist, this proceeding will be terminated, and all cash 
deposits posted will be refunded and suspension of liquidation will be 
lifted. If the ITC determines that such injury does exist, Commerce 
will issue an antidumping duty order directing CBP to assess, upon 
further instruction by Commerce, antidumping duties on all imports of 
the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. 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 
the terms of an APO is a sanctionable violation.

Notification of Interested Parties

    This final determination and notice are issued and published in 
accordance with sections 735(d) and 777(i) of the Act, and 19 CFR 
351.210(c).

    Dated: May 8, 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

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.
    Also excluded from the scope are the following hospital and 
patient care setting surfaces. Products that fall within the below 
categories and meet all the exclusion factors in the respective 
category qualify for such exclusion, regardless of whether they may 
be referenced as a mattress.
    Air Surfaces with all of the following characteristics: with the 
foot end comprised of either die-cut construction foam or air 
bladders to allow extension and retraction of the surface; enclosed 
in a fluid-resistant polyurethane-coated ticking with a zipper; with 
welded seams on the ticking, which are two or more layers of coated 
material

[[Page 42442]]

thermally fused together with a permanent bond; with the core 
including air bladders, with or without foam inside; with a unique 
device identifier label for medical devices issued by an FDA-
accredited agency and listed in the FDA-administered Global Unique 
Device Identification Database.
    Stretcher Surfaces with all of the following characteristics: 
with a nominal thickness of 5 inches or less; with the foam core 
width tapered at one end; enclosed in a fluid-resistant 
polyurethane-coated ticking with a zipper; with welded seams on the 
ticking, which are two or more layers of coated material thermally 
fused together with a permanent bond; with the exterior of the 
ticking containing a welded flap to cover the ticking zipper; with 
loop velcro attached to the ticking to allow for the stretcher 
surface to be firmly affixed to the stretcher; with a unique device 
identifier label for medical devices issued by an FDA-accredited 
agency and listed in the FDA-administered Global Unique Device 
Identification Database.
    Birthing Bed Surfaces with all of the following characteristics: 
with a nominal thickness of 5 inches or less; with a foam core in 
two pieces that have either a V-shaped cutout or U-Shaped cutout; 
enclosed in a fluid-resistant polyurethane-coated ticking with a 
zipper; with welded seams on the ticking, which are two or more 
layers of coated material thermally fused together with a permanent 
bond; with attachment fasteners extending from the bottom of the 
surface comprised of snaps or plastic hook(s); with a unique device 
identifier label for medical devices issued by an FDA-accredited 
agency and listed in the FDA-administered Global Unique Device 
Identification Database.
    Foam Surfaces with all the following characteristics: with a 
nominal thickness of 6.5 inches or less; with a foam core that has 
articulation lines cut into the foam and/or die-cut construction in 
a portion of the foam to allow movement of the surface; enclosed in 
a fluid-resistant polyurethane-coated ticking with a zipper; with 
the ticking made of material meeting ASTM F1671B-07 requirements for 
porosity and ISO 10993 requirements for biocompatibility; with 
welded seams on the ticking, which are two or more layers of coated 
material thermally fused together with a permanent bond; with 
brackets or attachment knobs embedded in the surface core to allow 
the surface to be firmly affixed to the hospital bed frame; with a 
unique device identifier label for medical devices issued by an FDA-
accredited agency and listed in the FDA-administered Global Unique 
Device Identification Database, where the label includes the 
manufacturer's name and address as well as the product's name, date 
of manufacture, serial number, and Global Trade Identification 
Number (GTIN).
    The products subject to this investigation are currently 
classifiable under Harmonized 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.
[FR Doc. 2024-10564 Filed 5-14-24; 8:45 am]
BILLING CODE 3510-DS-P