[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]
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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.
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\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).
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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.
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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 May 8, 2024.
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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\
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\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.
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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.
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\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.
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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:
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\8\ As discussed in the Issues and Decision Memorandum, Commerce
determines PT Grantec Jaya Indonesia is cross-owned with PT Ecos
Jaya Indonesia.
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Subsidy rate (ad
Company valorem percent)
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PT Grantec Jaya Indonesia \8\................... 0.19 (de minimis).
PT Zinus Global Indonesia....................... 0.03 (de minimis).
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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.
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\9\ See Preliminary Determination, 89 FR at 58.
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[[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
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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