[Federal Register Volume 89, Number 140 (Monday, July 22, 2024)]
[Notices]
[Pages 59050-59053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15983]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-839]


Mattresses From Indonesia: Final Negative Countervailing Duty 
Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are not being provided to producers and 
exporters of mattresses from Indonesia. The period of investigation is 
January 1, 2022, through December 31, 2022.

DATES: Applicable July 22, 2024.

FOR FURTHER INFORMATION CONTACT: Natasia Harrison or Harriston 
Tanchuck, AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1240 
or (202) 482-7421, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 2, 2024, Commerce published the Preliminary 
Determination in the Federal Register.\1\ Subsequently, on April 3, 
2024, Commerce released its Post-Preliminary Analysis.\2\ For a 
complete description of the events that followed the Preliminary 
Determination, see the Issues and Decision Memorandum.\3\ The Issues 
and

[[Page 59051]]

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 Issues and Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------

    \1\ See Mattresses from Indonesia: Preliminary Negative 
Countervailing Duty Determination and Alignment of Final 
Determination with the Final Antidumping Duty Determination, 89 FR 
57 (January 2, 2024) (Preliminary Determination).
    \2\ See Memorandum, ``Post-Preliminary Analysis,'' dated April 
3, 2024.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Negative Determination in the Countervailing Duty 
Investigation of Mattresses from Indonesia,'' dated concurrently 
with, and hereby adopted by, this notice (Issues and Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

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

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 addressed 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 
Appendix I.
---------------------------------------------------------------------------

    \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 May 8, 2024.
---------------------------------------------------------------------------

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs that were submitted by parties in this 
investigation, are discussed in the Issues and Decision Memorandum. For 
a list of the issues raised by interested parties and addressed in the 
Issues and Decision Memorandum, see Appendix II.

Verification

    Commerce conducted verification of the information relied upon in 
making its final determination in this investigation, in accordance 
with section 782(i) of the Tariff Act of 1930, as amended (the Act). 
Specifically, we conducted on-site verifications of the Government of 
Indonesia, PT Grantec Jaya Indonesia (Grantec), and PT Zinus Global 
Indonesia (PT Zinus) between February 19 and March 1, 2024, as well as 
of the Government of Korea and Zinus Inc. (Korea) in May 2024, using 
standard verification procedures, including an examination of relevant 
sales and accounting records, and original source documents provided by 
the respondents.\6\
---------------------------------------------------------------------------

    \6\ See Memoranda, ``Verification of PT Grantec Jaya Indonesia 
Questionnaire Responses,'' dated April 9, 2024; ``Verification of PT 
Zinus Global Indonesia Questionnaire Responses,'' dated April 9, 
2024; ``Verification of the Government of Indonesia Questionnaire 
Responses,'' dated April 9, 2024; ``Verification of the Government 
of the Republic of Korea's New Subsidy Allegations Questionnaire 
Response,'' dated June 5, 2024; and ``Verification of PT Zinus 
Global Indonesia New Subsidy Allegations Questionnaire Responses 
regarding Zinus Inc. (Korea),'' dated June 5, 2024.
---------------------------------------------------------------------------

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce determines that there is a subsidy, i.e., a 
financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient, and that the subsidy is specific.\7\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see also section 771(5)(E) of the Act 
regarding benefit; and section 771(5A) of the Act regarding 
specificity.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    Based on our findings at verification, and our review and analysis 
of the comments received from parties, for this final determination, we 
made certain changes to the countervailable subsidy rate calculations 
for Grantec. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period January 1, 2022, through December 
31, 2022:
---------------------------------------------------------------------------

    \8\ As discussed in the Issues and Decision Memorandum, Commerce 
determines PT Grantec Jaya Indonesia is cross-owned with PT Ecos 
Jaya Indonesia.

------------------------------------------------------------------------
                                                     Subsidy rate (ad
                     Company                         valorem percent)
------------------------------------------------------------------------
PT Grantec Jaya Indonesia \8\...................  0.19 (de minimis).
PT Zinus Global Indonesia.......................  0.03 (de minimis).
------------------------------------------------------------------------

    Consistent with section 703(d) of the Act, Commerce has not 
calculated an estimated weighted-average subsidy rate for all other 
producers and exporters because it has not made an affirmative final 
determination.

Disclosure

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

Suspension of Liquidation

    In the Preliminary Determination, the total net countervailable 
subsidy rates for the individually examined respondents were de minimis 
and, therefore, we did not suspend liquidation of entries of mattresses 
from Indonesia.\9\ Because Commerce determines that no countervailable 
subsidies are being provided to the production or exportation of 
subject merchandise, Commerce will not direct U.S. Customs and Border 
Protection to suspend liquidation of any such entries.
---------------------------------------------------------------------------

    \9\ See Preliminary Determination, 89 FR at 58.

---------------------------------------------------------------------------

[[Page 59052]]

International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final determination that countervailable subsidies are 
not being provided to producers and exporters of mattresses from 
Indonesia. Because Commerce's final determination is negative, this 
proceeding is terminated in accordance with section 705(c)(2) of the 
Act.

Administrative Protective Order

    This notice will serve as the only reminder to parties subject to 
an 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/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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: July 15, 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.
    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 diecut 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 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

[[Page 59053]]

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.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Changes Since the Preliminary Determination
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether Commerce Should Have Investigated the 
Exemption of Value-Added Tax (VAT) on Imported and Domestically-
Sourced Machinery for Bonded Zone Companies
    Comment 2: Whether to Attribute to PT Zinus Subsidies Received 
by PT Zinus Dream Indonesia (Zinus Dream)
    Comment 3: Whether the Government of the Republic of Korea (GOK) 
Provided Export Subsidies and Subsidized Loans to PT Zinus Through 
GOK-Owned Banks
VIII. Recommendation

[FR Doc. 2024-15983 Filed 7-19-24; 8:45 am]
BILLING CODE 3510-DS-P