[Federal Register Volume 89, Number 167 (Wednesday, August 28, 2024)]
[Notices]
[Pages 68858-68860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19318]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-118]


Wood Mouldings and Millwork Products From the People's Republic 
of China: Final 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) determines that 
countervailable subsidies were provided to producers and exporters of 
wood mouldings and millwork products (millwork products) from the 
People's Republic of China (China) during the period of review (POR) 
from January 1, 2022, through December 31, 2022. Commerce is also 
rescinding the review with respect to one company that had no 
reviewable entries during the POR.

DATES: Applicable August 28, 2024.

FOR FURTHER INFORMATION CONTACT: Bob Palmer or Brandon James, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-9068 or (202) 482-7472, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 5, 2024, Commerce published the Preliminary Results.\1\ 
For a detailed description of the events that occurred subsequent to 
the Preliminary Results, see the Issues and Decision Memorandum.\2\ On 
July 1, 2024, in accordance with section 751(a)(3)(A) of the Tariff Act 
of 1930, as amended (the Act), Commerce extended the deadline for 
issuing the final results until July 26, 2024.\3\ On July 22, 2024, 
Commerce tolled certain deadlines in this administrative proceeding by 
seven days.\4\
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    \1\ See Wood Mouldings and Millwork Products from the Peoples 
Republic of China: Preliminary Results and Partial Rescission of 
Countervailing Duty Administrative Review; 2022, 89 FR 15816 (March 
5, 2024) (Preliminary Results), and accompanying Preliminary 
Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review Wood 
Mouldings and Millwork Products from the People's Republic of China; 
2022,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
    \3\ See Memorandum, ``Extension of Deadline for the Final 
Results of Countervailing Duty Administrative Review; 2022,'' dated 
July 1, 2024.
    \4\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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Scope of the Order 5
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    \5\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Countervailing Duty Order, 86 FR 9484 (February 
16, 2021) (Order).
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    The merchandise subject to the Order is wood mouldings and millwork 
products (WMMP) from China, which are primarily classifiable under 
subheadings 4409.10.0500, 4409.10.1020, 4409.10.1040, 4409.10.1060, 
4409.10.1080, 4409.10.4010, 4409.10.4090, 4409.10.4500, 4409.10.5000, 
4409.10.9020, 4409.10.9040, 4409.22.0590, 4409.22.1000, 4409.22.4000, 
4409.22.5000, 4409.22.5020, 4409.22.5040, 4409.22.5060, 4409.22.5090, 
4409.22.9000, 4409.22.9020, 4409.22.9030, 4409.22.9045, 4409.22.9060, 
4409.22.9090, 4409.29.0665, 4409.29.1100, 4409.29.4100, 4409.29.5100, 
4409.29.9100, 4412.99.5115, 4412.99.9500, 4418.91.9095, and 
4421.91.9780 of the of the Harmonized Tariff Schedule of the United 
States (HTSUS). WMMP may also enter under HTSUS numbers 4409.10.6000, 
4409.10.6500, 4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 
4412.41.0000, 4412.42.0000, 4412.49.0000, 4412.91.5115, 4412.92.5215, 
4412.99.9700, 4418.20.4000, 4418.20.8030, 4418.20.8060, 4418.91.9195, 
4418.99.9095, 4418.99.9195, 4421.91.9880, 4421.99.9780, and 
4421.99.9880. While the HTSUS subheading and ASTM specification are 
provided for convenience and for customs purposes, the written 
description of the subject merchandise is dispositive. A full 
description of the scope of the Order is contained in the Issues and 
Decision Memorandum.

Rescission of Administrative Review, In Part

    In the Preliminary Results, Commerce stated that we intended to 
further examine the rescission of this administrative review with 
respect to three companies, Anji Huaxin Bamboo

[[Page 68859]]

& Wood Products Co., Ltd. (Anji Huaxin), Composite Technology 
International, Limited (CTIL), and Homebuild Industries Co., Ltd. 
(Homebuild). Anji Huaxin and CTIL submitted comments claiming that they 
had entries of subject merchandise during the POR in response to our 
stated intent to rescind the administrate review with respect to these 
two companies in the absence of evidence of suspended entries during 
the POR.\6\ Homebuild submitted a certification of no shipments during 
the POR and, after seeking confirmation with U.S. Customs and Border 
Protection (CBP), we placed CBP's response on the record.\7\ For the 
final results, we find that Anji Huaxin and Homebuild had reviewable 
entries of subject merchandise during the POR and, accordingly, are not 
rescinding this review with respect to these two companies. However, we 
find that CTIL had no reviewable entries of subject merchandise during 
the POR. As a result, we are rescinding this review, pursuant to 19 CFR 
351.213(d)(3), with respect to this company.
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    \6\ See Preliminary Results PDM at 4-6; see also Memorandum, 
``Notice of Intent to Rescind Review, In Part,'' dated September 14, 
2023.
    \7\ See Memorandum, ``Entry Documents Requested,'' dated 
February 14, 2024.
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    For further information regarding this determination, see ``Final 
Rescission of Administrative Review, In Part'' section in the Issues 
and Decision Memorandum.

Analysis of Comments Received

    All issues raised by interested parties in briefs are addressed in 
the Issues and Decision Memorandum. A list of the issues addressed in 
the Issues and Decision Memorandum is provided in Appendix I of this 
notice. 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 review of the record and comments received from 
interested parties regarding our Preliminary Results, we made certain 
revisions to the countervailable subsidy rate calculations for Fujian 
Jinquan Trade Co., Ltd. (Jinquan) and Fujian Yinfeng Imp & Exp Trading 
Co., Ltd. (Yinfeng).\8\ As a result of the changes to Jinquan and 
Yinfeng's program rates, the final rate for the 20 non-selected 
companies under review also changed.\9\ These changes are explained in 
the Issues and Decision Memorandum.
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    \8\ See Memoranda, ``Final Results Calculations for Fujian 
Jinquan Trade Co., Ltd.,'' and ``Final Results Calculations for 
Fujian Yinfeng Imp & Exp Trading Co., Ltd.,'' dated concurrently 
with this notice.
    \9\ The 20 non-selected companies under review are listed in 
Appendix II of this notice.
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Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of 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.\10\ 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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    \10\ 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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Companies Not Selected for Individual 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(c)(2) of the Act. 
Generally, Commerce looks to section 705(c)(5) of the Act, which 
provides instructions for determining the all-others rate in an 
investigation, for guidance when calculating the rate for companies 
which were not selected for individual examination in an administrative 
review. Under section 705(c)(5)(A) of the Act, the all-others rate is 
normally an amount 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.
    As stated above, there are 20 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. For 
these non-selected companies, because the rates calculated for 
mandatory respondents Jinquan and Yinfeng were above de minimis and not 
based entirely on facts available, we applied a final subsidy rate 
based on a weighted average of the rates calculated for the two 
mandatory respondents using the publicly ranged sales data they 
submitted on the record. This methodology is consistent with our 
practice for establishing an all-others subsidy rate pursuant to 
section 705(c)(5)(A) of the Act. For a list of the non-selected 
companies, see Appendix II to this notice.

Final Results of Review

    We find the countervailable subsidy rates for the mandatory and 
non-selected respondents under review for the period of January 1, 
2022, through December 31, 2022, to be as follows:

------------------------------------------------------------------------
                                                           Subsidy rate
                    Producer/exporter                       (percent ad
                                                             valorem)
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Fujian Jinquan Trade Co., Ltd.\11\......................           21.21
Fujian Yinfeng Imp & Exp Trading Co., Ltd.\12\..........            3.11
Non-Selected Companies Under Review \13\................           14.38
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Disclosure
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    \11\ Jinquan is cross-owned with Fujian Province Youxi County 
Baiyuan Wood Machining Co., Ltd.
    \12\ The following companies are cross-owned with Yinfeng: 
Fujian Province Youxi City Mangrove Wood Machining Co., Ltd.; and 
Fujian Province Youxi City Mangrove Wood Machining Co., Ltd. Youxi 
Xicheng Branch. Fujian Province.
    \13\ See Appendix II.
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    We intend to disclose the calculations performed in connection with 
the final results of review to parties in this proceeding 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 section 751(a)(2)(C) of the Act and 19 CFR 351.212(b), 
Commerce has determined, and 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 for the POR (i.e., 
January 1, 2022, to December 31, 2022). For CTIL, for which this review 
is rescinded, Commerce 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

[[Page 68860]]

accordance with 19 CFR 351.212(c)(l)(i). Commerce intends to issue 
assessment instructions to CBP for these companies no earlier than 35 
days after the publication of the preliminary 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).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends 
to instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for the POR 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 the final results of review, shall remain in effect 
until further notice.

Administrative Protective Order (APO)

    This notice also serves as a reminder to parties subject to an 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 terms of an APO is a violation which 
is subject to sanction.

Notification to Interested Parties

    We are issuing and publishing these final results of administrative 
review and notice in accordance with sections 751(a)(1) and 777(i) of 
the Act, and 19 CFR 351.221(b)(5).

    Dated: August 15, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Final Rescission of Review, in Part
IV. Scope of the Order
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Discussion of the Issues
    Comment 1: Whether Commerce Should Change Its Preliminary 
Findings Regarding the Export Buyer's Credit Program (EBCP)
    Comment 2: Whether the Electricity for Less Than Adequate 
Remuneration (LTAR) Program Is Specific
    Comment 3: Whether Certain Input Suppliers Are Government 
Authorities
    A. Whether Information Is Missing From the Record
    B. Whether Two Suppliers Provided Sufficient Information
    Comment 4: Whether Commerce Properly Excluded Respondents' 
Benchmark Data
    A. Whether Commerce Should Use All of Respondents' Benchmark 
Data
    B. Whether Commerce Should Revise the Cut Timber Benchmark
    Comment 5: Whether Commerce Should Revise the Paint Benchmark
    Comment 6: Whether Commerce Should Revise the Ocean Freight 
Benchmark
    A. Whether Commerce Should Include Drewry Data
    B. Whether Commerce Should Adjust Its Averaging Methodology
    C. Whether To Include Certain Surcharges
    Comment 7: Whether Commerce Should Rely on Respondents' Reported 
Inland Freight Data
    Comment 8: Whether Commerce Should Exclude Sales Not Related to 
Production Activities
    Comment 9: Whether Commerce Should Rely on Malaysian Land 
Benchmarks
IX. Recommendation

Appendix II--Non-Selected Companies Under Review

1. Anji Huaxin Bamboo & Wood Products Co., Ltd.
2. Fotiou Frames Limited
3. Fujian Hongjia Craft Products Co., Ltd.
4. Fujian Wangbin Decorative Material Co., Ltd.
5. Fujian Youxi Best Arts & Crafts Co. Ltd.
6. Homebuild Industries Co., Ltd.
7. Huaan Longda Wood Industry Co., Ltd.
8. Jiangsu Wenfeng Wood Co., Ltd.
9. Longquan Jiefeng Trade Co., Ltd.
10. Nanping Huatai Wood & Bamboo Co., Ltd.
11. Nanping Huatai Wood and Bamboo Co., Ltd.
12. Putian Yihong Wood Industry Co., Ltd.
13. Shandong Miting Household Co., Ltd.
14. Shaxian Hengtong Wood Industry Co., Ltd.
15. Shaxian Shiyiwood, Ltd.
16. Shuyang Kevin International Co., Ltd.
17. Shuyang Zhongding Decoration Materials Co., Ltd.
18. Suqian Sulu Import & Export Trading Co., Ltd.
19. Zhangzhou Wangjiamei Industry & Trade Co., Ltd.
20. Zhangzhou Yihong Industrial Co., Ltd.

[FR Doc. 2024-19318 Filed 8-27-24; 8:45 am]
BILLING CODE 3510-DS-P