[Federal Register Volume 84, Number 107 (Tuesday, June 4, 2019)]
[Notices]
[Pages 25732-25736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11577]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-092]
Mattresses From the People's Republic of China: Preliminary
Determination of Sales at Less-Than-Fair-Value, Postponement of Final
Determination and Affirmative Preliminary Determination of Critical
Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that mattresses from the People's Republic of China (China) are being,
or are likely to be, sold in the United States at less than fair value
(LTFV) for the period of investigation (POI) January 1, 2018, through
June 30, 2018. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable June 4, 2019.
FOR FURTHER INFORMATION CONTACT: Stephen Bailey at (202) 482-0193 or
Jonathan Hill at (202) 482-3518, AD/CVD Operations, Office IV,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended
[[Page 25733]]
(the Act). Commerce published the notice of initiation of this
investigation on October 17, 2018.\1\ Commerce exercised its discretion
to toll all deadlines affected by the partial federal government
closure from December 22, 2018, through the resumption of operations on
January 29, 2019.\2\ If the new deadline falls on a non-business day,
in accordance with Commerce's practice, the deadline will become the
next business day. As a result of the partial federal government
closure, the revised deadline for the preliminary determination became
April 8, 2019. On April 1, 2019, Commerce postponed the preliminary
determination of this investigation until May 28, 2019.\3\ For a
complete description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\4\ A list of
topics included in the Preliminary Decision Memorandum is included as
Appendix II to this notice.
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\1\ See Mattresses from the People's Republic of China:
Initiation of Less-Than-Fair-Value Investigation, 83 FR 52386
(October 17, 2018) (Initiation Notice).
\2\ See memorandum to the Record from Gary Taverman, Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
\3\ See Mattresses from the People's Republic of China:
Postponement of Preliminary Determination in the Less-Than-Fair-
Value Investigation, 84 FR 12198 (April 1, 2019).
\4\ See Memorandum, ``Mattresses from the People's Republic of
China: Decision Memorandum for the Preliminary Determination of
Sales at Less Than Fair Value'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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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 https://access.trade.gov,
and to all parties in the Central Records Unit, Room B8024 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
Scope of the Investigation
The products covered by this investigation are mattresses from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\6\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record of this investigation,
and accompanying discussion and analysis of comments timely received,
see Scope Decision Memorandum.\7\ Based on comments and rebuttal
comments received, Commerce is preliminarily modifying the scope
language as it appeared in the Initiation Notice. See the revised scope
in Appendix I to this notice.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice, 83 FR at 52387.
\7\ See Memorandum, ``Mattresses from the People's Republic of
China: Preliminary Scope Decision'' (Scope Decision Memorandum),
dated concurrently with this preliminary determination.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772 of the Act. Because China is a non-market
economy country within the meaning of section 771(18) of the Act,
Commerce has calculated normal value (NV) in accordance with section
773(c) of the Act. Furthermore, pursuant to sections 776(a) and (b) of
the Act, Commerce preliminarily has relied upon facts otherwise
available, with adverse inferences, for the China-wide entity, which
includes Aishu; Apex Maritime Xiamen; Beijing Kang Jie Kong; EON
Living; Foshan City Deepsung Home Furniture; Foshan Shunde Yong Heng
Package Products Co., Ltd.; Gold Gulf International Trade; Guangdong
Silique International; Guangdong Silique International GP Win Company;
Hangzhou Lintex; Hangzhou Yuchun Home Textile Company; Hangzhou Yudi
Hometextile; Hangzhou Samsung Down Products; Honour Lane Shipping;
Hubei Lianle Bedding Group Co., Ltd.; Jiangsu Tianma Textile; Jiaxing
Yuanchang Furniture Supplier; King Koil; Nantong Mengjini Home
Textiles; Ningbo Shida; Relux Mattress Co. Ltd.; Royal HK Bedding; SCM
Home Zhejiang; Shenzhen Changding Industries Co. Ltd.; Shanghai Foamemo
Furniture; Shenzhen Shenbao Industrial Co Limited; Union Capital
Enterprises; Warm Universe Home Products Company; Wong Hau Plastic
Works and Trading; Wuxi JHT Textiles; Zhejiang Crafts and Textile;
Zhejiang Huaweimei Group Co., Ltd.; and Zhejiang Shiguanghomewaare and
Tex. For a full description of the methodology underlying Commerce's
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances do not
exist with respect to imports of mattresses from China for the
mandatory respondents, Healthcare Co., Ltd. (Healthcare) and Zinus
(Xiamen) Inc. (Zinus), but that critical circumstances do exist with
respect to all non-individually-examined companies receiving a separate
rate and the China-wide entity. For a full description of the
methodology and results of Commerce's critical circumstances analysis,
see the Preliminary Affirmative Determination of Critical Circumstances
Memorandum and the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\9\
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\8\ See Initiation Notice.
\9\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
[[Page 25734]]
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Estimated
weighted-
average
Exporter Producer dumping
margin
(percent)
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Healthcare Co., Ltd.............. Healthcare Co., Ltd..... 38.56
Zinus (Xiamen) Inc............... Zinus (Xiamen) Inc...... 84.64
Dockter China Limited............ Healthcare Co., Ltd..... 74.65
Dockter China Limited............ Huizhou Lemeijia 74.65
Household Products Co.,
Ltd. (a.k.a. Better Zs,
Ltd.).
Dockter China Limited............ Dongguan Beijianing 74.65
Household Products Co.,
Ltd. (a.k.a. Better Zs,
Ltd.).
Foshan Chiland Furniture Co., Ltd Foshan Chiland Furniture 74.65
Co., Ltd.
Foshan City Jinxingma Furniture Foshan City Jinxingma 74.65
Manufacture Co., Ltd. Furniture Manufacture
Co., Ltd.
Foshan City Kewei Furniture Co., Foshan City Kewei 74.65
Ltd. Furniture Co., Ltd.
Foshan EON Technology Industry Foshan EON Technology 74.65
Co., Ltd. Industry Co., Ltd.
Foshan Mengruo Household Foshan Mengruo Household 74.65
Furniture Co., Ltd. Furniture Co., Ltd.
Foshan Qisheng Sponge Co., Ltd... Foshan Qisheng Sponge 74.65
Co., Ltd.
Foshan Ruixin Non Woven Co., Ltd. Foshan Ruixin Non Woven 74.65
Co., Ltd.
Foshan Ziranbao Furniture Co., Foshan Ziranbao 74.65
Ltd. Furniture Co., Ltd.
Guangdong Diglant Furniture Guangdong Diglant 74.65
Industrial Co., Ltd. Furniture Industrial
Co., Ltd.
Healthcare Sleep Products Limited Healthcare Sleep 74.65
Products Limited.
Hong Kong Gesin Technology Inno Sports Co., Ltd.... 74.65
Limited.
Jiangsu Wellcare Household Jiangsu Wellcare 74.65
Articles Co., Ltd. Household Articles Co.,
Ltd.
Jiaxing Taien Springs Co., Ltd... Jiaxing Taien Springs 74.65
Co., Ltd.
Jiaxing Visco Foam Co., Ltd...... Jiaxing Visco Foam Co., 74.65
Ltd.
Jinlongheng Furniture Co., Ltd... Jinlongheng Furniture 74.65
Co., Ltd.
lnno Sports Co., Ltd............. lnno Sports Co., Ltd.... 74.65
Luen Tai Global Limited.......... Luen Tai Global Limited. 74.65
Luen Tai Group (China) Limited... Shenzhen L&T Industrial 74.65
Co., Ltd.
Man Wah Furniture Manufacturing Man Wah Household 74.65
(Hui Zhou) Co., Ltd., Man Wah Industry (Huizhou) Co.,
(MACAO Commercial Offshore), Ltd.
Ltd. and Man Wah (USA), Inc.
Ningbo Megafeat Bedding Co., Ltd. Ningbo Megafeat Bedding 74.65
Co., Ltd.
Ningbo Shuibishen Home Textile Ningbo Shuibishen Home 74.65
Technology Co., Ltd. Textile Technology Co.,
Ltd.
Nisco Co., Ltd................... Healthcare Co., Ltd..... 74.65
Quanzhou Hengang Imp. & Exp. Co., Quanzhou Hengang 74.65
Ltd. Industries Co., Ltd.
Shanghai Glory Home Furnjshings Shanghai Glory Home 74.65
Co., Ltd. Furnjshings Co., Ltd.
Sinomax Macao Commercial Offshore Dongguan Sinohome 74.65
Limited. Limited.
Sinomax Macao Commercial Offshore Sinomax (Zhejiang) 74.65
Limited. Polyurethane Technology
Ltd.
Wings Developing Co., Limited.... Quanzhou Hengang 74.65
Industries Co., Ltd.
Xianghe Kaneman Furniture Co., Xianghe Kaneman 74.65
Ltd. Furniture Co., Ltd.
Xilinmen Furniture Co., Ltd...... Xilinmen Furniture Co., 74.65
Ltd.
Zhejiang Glory Home Furnishings Zhejiang Glory Home 74.65
Co., Ltd. Furnishings Co., Ltd.
China-wide Entity................ China-wide Entity....... 1.731.75
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the table above as follows: (1) For
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
China producers/exporters of subject merchandise that have not
established eligibility for their own separate rates, the cash deposit
rate will be equal to the estimated weighted-average dumping margin
established for the China-wide entity; and (3) for all third-country
exporters of the subject merchandise not listed in the table above, the
cash deposit rate is the cash deposit rate applicable to the China
producer/exporter combination (or the China-wide entity) that supplied
that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances do not exist for imports of subject
merchandise from Healthcare and Zinus, but that critical circumstances
do exist for all non-individually-examined companies receiving a
separate rate and the China-wide entity. In accordance with section
733(e)(2)(A) of the Act, the suspension of liquidation shall apply to
all unliquidated entries of merchandise from the exporter/producer
combinations identified above that were entered, or withdrawn from
warehouse, for consumption on or after the date which is 90 days before
the publication of this notice.
These suspension of liquidation will remain in effect until further
notice.
[[Page 25735]]
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its 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).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments, on all issues other than
scope issues, may be submitted to the Assistant Secretary for
Enforcement and Compliance no later than seven days after the date on
which the last final verification report is issued in this
investigation, unless the Secretary alters the time limit. Rebuttal
case briefs, limited to issues raised in case briefs, may be submitted
no later than five days after the deadline date for case briefs.\10\
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Interested parties may address Commerce's preliminary scope
determination in scope briefs which may be submitted to the Assistant
Secretary for Enforcement and Compliance no later than 30 days after
the publication of the preliminary AD determination in the Federal
Register. Rebuttal scope briefs, limited to issues raised in scope
briefs, may be submitted no later than five days after the deadline
date for scope briefs. Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On March 29, 2019, pursuant to 19 CFR 351.210(e)(1), Zinus
requested that Commerce postpone the final determination, and that
provisional measures be extended to a period not to exceed six
months.\11\ In accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii) and (e)(2), because (1) the preliminary
determination is affirmative; (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make the final determination no later than 135 days after
the date of publication of this preliminary determination, pursuant to
section 735(a)(2) of the Act.\12\
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\11\ See Letter from Zinus, ``Mattresses from the People's
Republic of China: Request for Postponement of Final Determination
and Extension of Provisional Measures Period,'' dated March 29,
2019.
\12\ See 19 CFR 351.210(e).
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: May 28, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers 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 may also 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'' have a
width exceeding 35 inches, a length exceeding 72 inches, and a depth
exceeding 3 inches on a nominal basis. Such mattresses are
frequently described as ``twin,'' ``extra-long twin,'' ``full,''
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth
mattresses'' have a width exceeding 27 inches, a length exceeding 51
inches, and a depth exceeding 1 inch (crib mattresses have a depth
of 6 inches or less from edge to edge) on a nominal basis. Such
mattresses are typically described as ``crib,'' ``toddler,'' or
``youth'' mattresses. All adult and youth mattresses are included
regardless of actual size description.
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
[[Page 25736]]
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.
Further, also excluded from the scope of this investigation are
any products covered by the existing antidumping duty order on
uncovered innerspring units. See Uncovered Innerspring Units from
the People's Republic of China: Notice of Antidumping Duty Order, 74
FR 7661 (February 19, 2009).
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.
The products subject to this investigation are currently
properly classifiable under Harmonized Tariff Schedule for the
United States (HTSUS) subheadings: 9404.21.0010, 9404.21.0013,
9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products
subject to this investigation may also enter under HTSUS
subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000,
and 9401.90.5081. 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Critical Circumstances
V. Postponement of Final Determination and Extension of Provisional
Measures
VI. Scope Comments
VII. Scope of the Investigation
VIII. Selection of Respondents
IX. Discussion of the Methodology
A. Non-Market Economy Country
B. Surrogate Country and Surrogate Value Comments
C. Separate Rates
D. Dumping Margin for the Separate Rate Companies Not
Individually Examined
E. Combination Rates
F. The China-Wide Entity
G. Application of Facts Available and Adverse Inferences
H. Date of Sale
I. Fair Value Comparisons
J. U.S. Price
K. Normal Value
L. Factor Valuation Methodology
X. Currency Conversion
XI. Verification
XII. Conclusion
[FR Doc. 2019-11577 Filed 6-3-19; 8:45 am]
BILLING CODE 3510-DS-P