[Federal Register Volume 75, Number 227 (Friday, November 26, 2010)]
[Notices]
[Pages 72794-72801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29828]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-890]
Wooden Bedroom Furniture From the People's Republic of China:
Preliminary Results of Antidumping Duty New Shipper Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: November 26, 2010.
SUMMARY: On March 1, 2010, the Department of Commerce (the
``Department'') initiated three new shipper reviews of the antidumping
duty order on wooden bedroom furniture from the People's Republic of
China (``PRC'') covering sales of subject merchandise made by Dongguan
Huansheng Furniture Co., Ltd. (``Huansheng''); Hangzhou Cadman Trading
Co., Ltd. (``Cadman''); and Wanvog Furniture (Kunshan) Co., Ltd.
(``Wanvog'') (collectively ``respondents'').\1\
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\1\ See Wooden Bedroom Furniture from the People's Republic of
China: Initiation of Antidumping Duty New Shipper Reviews, 75 FR
10214 (March 5, 2010) (``Initiation Notice'').
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The Department preliminarily determines that Huansheng and Cadman
have not made sales at less than normal value (``NV''). The Department
also preliminarily determines that Wanvog made sales in the United
States at prices below NV. If these preliminary results are adopted in
our final results of review, the Department will instruct U.S. Customs
and Border Protection (``CBP'') to assess antidumping duties on entries
of subject merchandise during the period January 1, 2009 through
December 31, 2009 (the period of review or ``POR''), for which the
importer-specific assessment rates are above de minimis.
FOR FURTHER INFORMATION CONTACT: Jeff Pedersen or Rebecca Pandolph, AD/
CVD Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
2769 or (202) 482-3627, respectively.
SUPPLEMENTARY INFORMATION:
The antidumping duty order on wooden bedroom furniture from the PRC
was published on January 4, 2005.\2\ On January 21, 2010, the
Department received a timely request for a new shipper review from
Huansheng. On January 29, 2010, the Department received timely requests
for new shipper reviews from Wanvog and Cadman. On March 1, 2010, the
Department initiated new shipper reviews of Huansheng, Wanvog, and
Cadman. See Initiation Notice.
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\2\ See Notice of Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture
From the People's Republic of China, 70 FR 329 (January 4, 2005).
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On March 2, 2010, the Department issued an antidumping duty
questionnaire to Huansheng, Wanvog, and Cadman. From March 2010 through
September 2010, the Department received timely questionnaire and
supplemental questionnaire responses from Huansheng, Wanvog, and
Cadman.
On April 26, 2010, the Office of Policy issued a memorandum
identifying six countries as being at a level of economic development
comparable to the PRC for the instant POR. The countries identified in
that memorandum are India, the Philippines, Indonesia, Thailand,
Ukraine, and Peru.\3\ On April
[[Page 72795]]
27, 2010, the Department released the Policy Memorandum to interested
parties and provided parties with an opportunity to submit comments
regarding the selection of a surrogate country in the instant
review.\4\ On May 18, 2010, the American Furniture Manufacturers
Committee for Legal Trade and Vaughan-Bassett Furniture Company, Inc.
(collectively, Petitioners) provided comments on surrogate country
selection.\5\ On June 15, 2010, Petitioners, Wanvog, and Huansheng
provided publicly-available information to value factors of production
(``FOP'').\6\ On June 21, 2010, Cadman provided publicly-available data
to value its FOP.\7\ On July 29, 2010, the Department received entry
documents from CBP, which supported all three respondents' contentions
that they had not made a sale of subject merchandise prior to the POR
for these new shipper reviews. See Memorandum to the File from the Team
through Howard Smith, Program Manager, Office 4, regarding ``New
Shipper Reviews of Wooden Bedroom Furniture from the People's Republic
of China: U.S. Entry Documents,'' dated July 29, 2010.
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\3\ See Memorandum entitled, ``Request for a List of Surrogate
Countries for New Shipper Review of the Antidumping Duty Order on
Wooden Bedroom Furniture (``Furniture'') from the People's Republic
of China (``PRC''),'' dated April 26, 2010 (``Policy Memorandum'').
\4\ See Letter from Howard Smith, Program Manager, Office 4, to
All Interested Parties, requesting comments from interested parties
regarding the selection of a surrogate country, dated April 27,
2010.
\5\ See Letter from Petitioners regarding, ``Wooden Bedroom
Furniture From the People's Republic of China: Surrogate Country
Comments,'' dated May 18, 2010 (``Petitioners' Surrogate Country
Comments'').
\6\ See Letter from Petitioners regarding, ``Wooden Bedroom
Furniture From the People's Republic of China: Submission of
Publicly Available Information to Value the Factors of Production,''
dated June 15, 2010 (``Petitioners' Surrogate Value Submission'');
see Letter from Wanvog regarding, ``Wooden Bedroom Furniture from
the People's Republic of China: Submission of Publicly Available
Surrogate Values for the Factors of Production of Wanvog Furniture
(Kunshan) Co., Ltd.,'' dated June 15, 2010 (``Wanvog's Surrogate
Value Submission''); see also Letter from Dongguan Huansheng
regarding, ``Wooden Bedroom Furniture from People's Republic of
China--Dongguan Huansheng Surrogate Values for Preliminary
Determination,'' dated June 15, 2010 (``Dongguan Huansheng's
Surrogate Value Submission'').
\7\ See Letter from Hangzhou Cadman regarding, ``Wooden Bedroom
Furniture From the People's Republic of China: Hangzhou Cadman
Surrogate Value Submission,'' dated June 21, 2010 (``Cadman's
Surrogate Value Submission'').
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Period of Review
The POR is January 1, 2009 through December 31, 2009.
Scope of the Order
The product covered by the order is wooden bedroom furniture which
is generally, but not exclusively, designed, manufactured, and offered
for sale in coordinated groups, or bedrooms, in which all of the
individual pieces are of approximately the same style and approximately
the same material and/or finish. The subject merchandise is made
substantially of wood products, including both solid wood and also
engineered wood products made from wood particles, fibers, or other
wooden materials such as plywood, strand board, particle board, and
fiberboard, with or without wood veneers, wood overlays, or laminates,
with or without non-wood components or trim such as metal, marble,
leather, glass, plastic, or other resins, and whether or not assembled,
completed, or finished.
The subject merchandise includes the following items: (1) Wooden
beds such as loft beds, bunk beds, and other beds; (2) wooden
headboards for beds (whether stand-alone or attached to side rails),
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds; (3) night tables, night stands, dressers, commodes,
bureaus, mule chests, gentlemen's chests, bachelor's chests, lingerie
chests, wardrobes, vanities, chessers, chifforobes, and wardrobe-type
cabinets; (4) dressers with framed glass mirrors that are attached to,
incorporated in, sit on, or hang over the dresser; (5) chests-on-
chests,\8\ highboys,\9\ lowboys,\10\ chests of drawers,\11\ chests,\12\
door chests,\13\ chiffoniers,\14\ hutches,\15\ and armoires; \16\ (6)
desks, computer stands, filing cabinets, book cases, or writing tables
that are attached to or incorporated in the subject merchandise; and
(7) other bedroom furniture consistent with the above list.
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\8\ A chest-on-chest is typically a tall chest-of-drawers in two
or more sections (or appearing to be in two or more sections), with
one or two sections mounted (or appearing to be mounted) on a
slightly larger chest; also known as a tallboy.
\9\ A highboy is typically a tall chest of drawers usually
composed of a base and a top section with drawers, and supported on
four legs or a small chest (often 15 inches or more in height).
\10\ A lowboy is typically a short chest of drawers, not more
than four feet high, normally set on short legs.
\11\ A chest of drawers is typically a case containing drawers
for storing clothing.
\12\ A chest is typically a case piece taller than it is wide
featuring a series of drawers and with or without one or more doors
for storing clothing. The piece can either include drawers or be
designed as a large box incorporating a lid.
\13\ A door chest is typically a chest with hinged doors to
store clothing, whether or not containing drawers. The piece may
also include shelves for televisions and other entertainment
electronics.
\14\ A chiffonier is typically a tall and narrow chest of
drawers normally used for storing undergarments and lingerie, often
with mirror(s) attached.
\15\ A hutch is typically an open case of furniture with shelves
that typically sits on another piece of furniture and provides
storage for clothes.
\16\ An armoire is typically a tall cabinet or wardrobe
(typically 50 inches or taller), with doors, and with one or more
drawers (either exterior below or above the doors or interior behind
the doors), shelves, and/or garment rods or other apparatus for
storing clothes. Bedroom armoires may also be used to hold
television receivers and/or other audio-visual entertainment
systems.
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The scope of the order excludes the following items: (1) Seats,
chairs, benches, couches, sofas, sofa beds, stools, and other seating
furniture; (2) mattresses, mattress supports (including box springs),
infant cribs, water beds, and futon frames; (3) office furniture, such
as desks, stand-up desks, computer cabinets, filing cabinets,
credenzas, and bookcases; (4) dining room or kitchen furniture such as
dining tables, chairs, servers, sideboards, buffets, corner cabinets,
china cabinets, and china hutches; (5) other non-bedroom furniture,
such as television cabinets, cocktail tables, end tables, occasional
tables, wall systems, book cases, and entertainment systems; (6)
bedroom furniture made primarily of wicker, cane, osier, bamboo or
rattan; (7) side rails for beds made of metal if sold separately from
the headboard and footboard; (8) bedroom furniture in which bentwood
parts predominate; \17\ (9) jewelry armoires; \18\ (10) cheval mirrors;
\19\ (11) certain metal parts; \20\
[[Page 72796]]
(12) mirrors that do not attach to, incorporate in, sit on, or hang
over a dresser if they are not designed and marketed to be sold in
conjunction with a dresser as part of a dresser-mirror set; (13)
upholstered beds \21\ and (14) toy boxes.\22\
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\17\ As used herein, bentwood means solid wood made pliable.
Bentwood is wood that is brought to a curved shape by bending it
while made pliable with moist heat or other agency and then set by
cooling or drying. See Customs' Headquarters' Ruling Letter 043859,
dated May 17, 1976.
\18\ Any armoire, cabinet or other accent item for the purpose
of storing jewelry, not to exceed 24 in width, 18 in depth, and 49
in height, including a minimum of 5 lined drawers lined with felt or
felt-like material, at least one side door (whether or not the door
is lined with felt or felt-like material), with necklace hangers,
and a flip-top lid with inset mirror. See Issues and Decision
Memorandum from Laurel LaCivita to Laurie Parkhill, Office Director,
Concerning Jewelry Armoires and Cheval Mirrors in the Antidumping
Duty Investigation of Wooden Bedroom Furniture from the People's
Republic of China, dated August 31, 2004. See also Wooden Bedroom
Furniture from the People's Republic of China: Final Changed
Circumstances Review, and Determination To Revoke Order in Part, 71
FR 38621 (July 7, 2006).
\19\ Cheval mirrors are any framed, tiltable mirror with a
height in excess of 50 that is mounted on a floor-standing, hinged
base. Additionally, the scope of the order excludes combination
cheval mirror/jewelry cabinets. The excluded merchandise is an
integrated piece consisting of a cheval mirror, i.e., a framed
tiltable mirror with a height in excess of 50 inches, mounted on a
floor-standing, hinged base, the cheval mirror serving as a door to
a cabinet back that is integral to the structure of the mirror and
which constitutes a jewelry cabinet line with fabric, having
necklace and bracelet hooks, mountings for rings and shelves, with
or without a working lock and key to secure the contents of the
jewelry cabinet back to the cheval mirror, and no drawers anywhere
on the integrated piece. The fully assembled piece must be at least
50 inches in height, 14.5 inches in width, and 3 inches in depth.
See Wooden Bedroom Furniture From the People's Republic of China:
Final Changed Circumstances Review and Determination To Revoke Order
in Part, 72 FR 948 (January 9, 2007).
\20\ Metal furniture parts and unfinished furniture parts made
of wood products (as defined above) that are not otherwise
specifically named in this scope (i.e., wooden headboards for beds,
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds) and that do not possess the essential character
of wooden bedroom furniture in an unassembled, incomplete, or
unfinished form. Such parts are usually classified under the
Harmonized Tariff Schedule of the United States (``HTSUS'')
subheading 9403.90.7000.
\21\ Upholstered beds that are completely upholstered, i.e.,
containing filling material and completely covered in sewn genuine
leather, synthetic leather, or natural or synthetic decorative
fabric. To be excluded, the entire bed (headboards, footboards, and
side rails) must be upholstered except for bed feet, which may be of
wood, metal, or any other material and which are no more than nine
inches in height from the floor. See Wooden Bedroom Furniture from
the People's Republic of China: Final Results of Changed
Circumstances Review and Determination to Revoke Order in Part, 72
FR 7013 (February 14, 2007).
\22\ To be excluded the toy box must: (1) Be wider than it is
tall; (2) have dimensions within 16 inches to 27 inches in height,
15 inches to 18 inches in depth, and 21 inches to 30 inches in
width; (3) have a hinged lid that encompasses the entire top of the
box; (4) not incorporate any doors or drawers; (5) have slow-closing
safety hinges; (6) have air vents; (7) have no locking mechanism;
and (8) comply with American Society for Testing and Materials
(``ASTM'') standard F963-03. Toy boxes are boxes generally designed
for the purpose of storing children's items such as toys, books, and
playthings. See Wooden Bedroom Furniture from the People's Republic
of China: Final Results of Changed Circumstances Review and
Determination to Revoke Order in Part, 74 FR 8506 (February 25,
2009). Further, as determined in the scope ruling memorandum,
``Wooden Bedroom Furniture from the People's Republic of China:
Scope Ruling on a White Toy Box,'' dated July 6, 2009, the
dimensional ranges used to identify the toy boxes that are excluded
from the wooden bedroom furniture order apply to the box itself
rather than the lid.
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Imports of subject merchandise are classified under subheading
9403.50.9040 of the HTSUS as ``wooden * * * beds'' and under subheading
9403.50.9080 of the HTSUS as ``other * * * wooden furniture of a kind
used in the bedroom.'' In addition, wooden headboards for beds, wooden
footboards for beds, wooden side rails for beds, and wooden canopies
for beds may also be entered under subheading 9403.50.9040 of the HTSUS
as ``parts of wood'' and framed glass mirrors may also be entered under
subheading 7009.92.5000 of the HTSUS as ``glass mirrors * * * framed.''
The order covers all wooden bedroom furniture meeting the above
description, regardless of tariff classification. Although the HTSUS
subheadings are provided for convenience and customs purposes, our
written description of the scope of this proceeding is dispositive.
Bona Fide Sales Analysis
Consistent with the Department's practice, the Department
investigated the bona fide nature of the sales made by Huansheng,
Wanvog, and Cadman for this review. In evaluating whether or not a
single sale in a new shipper review is commercially reasonable, and
therefore bona fide, the Department considers, inter alia, such factors
as: (1) The timing of the sale; (2) the price and quantity; (3) the
expenses arising from the transaction; (4) whether the goods were
resold at a profit; and (5) whether the transaction was made on an
arm's-length basis. See, e.g., Tianjin Tiancheng Pharmaceutical Co.,
Ltd. v. United States, 366 F. Supp. 2d 1246, 1250 (CIT 2005).
Accordingly, the Department considers a number of factors in its bona
fide analysis, ``all of which may speak to the commercial realities
surrounding an alleged sale of subject merchandise.'' See Hebei New
Donghua Amino Acid Co., Ltd. v. United States, 374 F. Supp. 2d 1333,
1342 (CIT 2005) (citing Fresh Garlic From the People's Republic of
China: Final Results of Antidumping Administrative Review and
Rescission of New Shipper Review, 67 FR 11283 (March 13, 2002)).
The Department preliminarily finds that the sales of subject
merchandise made by Huansheng, Wanvog, and Cadman were made on a bona
fide basis. Specifically, the Department preliminarily finds that: (1)
The timing of the sales by themselves do not indicate that the sales
might not be bona fide; (2) the price and quantity of the sales were
within the range of the prices and quantities of other entries of
subject merchandise from the PRC into the United States; (3) Huansheng,
Wanvog, and Cadman and their customer(s) did not incur any
extraordinary expenses arising from the transaction; (4) the new
shipper sales were made between unaffiliated parties at arm's length;
and (5) the merchandise was resold at a profit.\23\ Therefore, the
Department has preliminarily found that Huansheng, Wanvog, and Cadmans'
sales of subject merchandise to the United States were bona fide for
purposes of these new shipper reviews.
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\23\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD
Operations, Office 4, regarding, ``Antidumping Duty New Shipper
Review of Wooden Bedroom Furniture from the People's Republic of
China: Bona Fide Sales Analysis for Dongguan Huansheng Furniture
Co., Ltd.,'' dated concurrently with the preliminary results;
Memorandum to Abdelali Elouaradia, Director, AD/CVD Operations,
Office 4, regarding, ``Antidumping Duty New Shipper Review of Wooden
Bedroom Furniture from the People's Republic of China: Bona Fide
Sales Analysis for Hangzhou Cadman Trading Co., Ltd.,'' dated
concurrently with the preliminary results; and Memorandum to
Abdelali Elouaradia, Director, AD/CVD Operations, Office 4,
regarding, ``Antidumping Duty New Shipper Review of Wooden Bedroom
Furniture from the People's Republic of China: Bona Fide Sales
Analysis for Wanvog Furniture (Kunshan) Co., Ltd.,'' dated
concurrently with the preliminary results.
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Non-Market Economy Country Status
In every antidumping case conducted by the Department involving the
PRC, the PRC has been treated as a non-market economy (``NME'')
country.\24\ In accordance with section 771(18)(C)(i) of the Tariff Act
of 1930, as amended (``the Act''), any determination that a foreign
country is an NME country shall remain in effect until revoked by the
administering authority. None of the parties to this proceeding has
contested such treatment. Accordingly, the Department calculated NV in
accordance with section 773(c) of the Act, which applies to NME
countries.
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\24\ See, e.g., Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, From the People's Republic of China:
Preliminary Results of 2001-2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500 (February 14, 2003) (unchanged in
the final results, Tapered Rolling Bearings and Parts Thereof,
Finished and Unfinished, from the People's Republic of China: Final
Results of 2001-2002 Administrative Review and Partial Rescission of
Review, 68 FR 70488 (December 18, 2003)).
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Separate Rates
In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and thus should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of subject merchandise in an NME country this single rate
unless an exporter can demonstrate that it is sufficiently independent
so as to be entitled to a separate rate. Exporters can demonstrate this
independence through the absence of both de jure and de facto
government control over export activities. The Department analyzes each
entity exporting the subject merchandise under a test arising from the
Final Determination of Sales at Less Than Fair Value: Sparklers From
the People's Republic of China, 56 FR 20588 (May 6, 1991) (Sparklers),
as further developed in Notice of Final Determination of Sales at Less
Than Fair Value: Silicon Carbide From the People's Republic of China,
59 FR 22585, 22586-7 (May 2, 1994) (Silicon Carbide). However, if the
Department determines that a company is wholly foreign-owned or located
in a market economy, then a separate rate analysis is not necessary to
determine whether it is independent from government control. See Notice
of Final Determination of Sales at Less Than
[[Page 72797]]
Fair Value: Creatine Monohydrate From the People's Republic of China,
64 FR 71104, 71104-05 (December 20, 1999) (where the respondent was
wholly foreign-owned and, thus, qualified for a separate rate).
Separate Rate Recipients
1. Wholly Foreign-Owned
Wanvog provided evidence that during the POR it was a wholly
foreign-owned company.\25\ Therefore, consistent with the Department's
practice, further analysis is not necessary to determine whether
Wanvog's export activities are independent from government control, and
we have preliminarily granted a separate rate to Wanvog.
2. Wholly Chinese-Owned Companies
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\25\ See letter from Wanvog regarding, ``Wooden Bedroom
Furniture from the People's Republic of China: Section A
Questionnaire Response of Wanvog Furniture (Kunshan) Co., Ltd.,''
dated March 30, 2010 at A-2-A-12 and Exhibits A-3 and A-4.
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Cadman and Huansheng are wholly Chinese-owned companies and are
located in the PRC. Therefore, the Department has analyzed whether they
have demonstrated the absence of both de jure and de facto government
control over their export activities.
A. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) An absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by Cadman and Huansheng supports a
preliminary finding of de jure absence of government control based on
the following: (1) An absence of restrictive stipulations associated
with Cadman's and Huansheng's business and export licenses; \26\ (2)
applicable legislative enactments decentralizing control over PRC
companies; \27\ and (3) formal measures by the government
decentralizing control of PRC companies.\28\
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\26\ See letter from Cadman regarding, ``Wooden Bedroom
Furniture from the People's Republic of China; Section A
Questionnaire Response of Hangzhou Cadman Trading Co., Ltd.,'' dated
March 31, 2010 (``Cadman's Section A response'') at Exhibit 3; see
also letter from Dongguan Huansheng regarding, ``Wooden Bedroom
Furniture from People's Republic of China--Section A Response,''
dated March 23, 2010 (``Dongguan Huansheng's Section A response'')
at Exhibit A-2.
\27\ See Cadman's Section A response at Exhibit 2; Dongguan
Huansheng's section A response at Exhibit A-1.
\28\ See id.
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B. Absence of De Facto Control
The Department considers four factors in evaluating whether each
respondent is subject to de facto government control of its export
functions: (1) Whether the export prices are set by or are subject to
the approval of a government agency; (2) whether the respondent has
authority to negotiate and sign contracts and other agreements; (3)
whether the respondent has autonomy from the government in making
decisions regarding the selection of management; and (4) whether the
respondent retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at 22586-87; see also Notice of
Final Determination of Sales at Less Than Fair Value: Furfuryl Alcohol
From the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
The Department has determined that an analysis of de facto control is
critical in determining whether respondents are subject to a degree of
government control which would preclude the Department from assigning
separate rates.
The evidence provided by Cadman and Huansheng supports a
preliminary finding of de facto absence of government control over
their export activities based on the following: (1) Cadman and
Huansheng set their own export prices independent of the government and
without the approval of a government authority; (2) Cadman and
Huanshengs' general managers have the authority to negotiate and bind
the company in an agreement; (3) Cadman and Huansheng maintain autonomy
from the government in making decisions regarding the selection of
management; and (4) Cadman and Huansheng retain the proceeds of their
export sales and make independent decisions regarding disposition of
profits or financing of losses.\29\
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\29\ See Cadman's Section A response at A3-A17 and exhibits 4
and 13; see also Dongguan Huansheng's Section A response at A2-A11
and exhibits A-3, A-4, and A-6.
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The evidence placed on the record by Cadman and Huansheng
demonstrates an absence of de jure and de facto government control, in
accordance with the criteria identified in Sparklers and Silicon
Carbide. Accordingly, the Department has preliminarily granted separate
rates to Cadman and Huansheng.
Surrogate Country
When the Department conducts an antidumping duty new shipper review
of imports from an NME country, section 773(c)(1) of the Act directs
the Department to base NV, in most circumstances, on the NME producer's
FOP valued in a surrogate market-economy country or countries
considered appropriate by the Department. In accordance with section
773(c)(4) of the Act, the Department will value FOP using ``to the
extent possible, the prices or costs of factors of production in one or
more market economy countries that are--(A) at a level of economic
development comparable to that of the NME country, and (B) significant
producers of comparable merchandise.'' Further, pursuant to 19 CFR
351.408(c)(2), the Department will normally value all FOP in a single
country, except for labor.
In the instant review, the Department identified India, the
Philippines, Indonesia, Thailand, Ukraine, and Peru as being at a level
of economic development comparable to the PRC.\30\ Petitioners provided
comments on the selection of a surrogate country by providing a
submission from the fourth administrative review which contains an
October 2007 report published by the international research firm CSIL
Milano that demonstrates the significance of Philippine production of
wooden furniture.\31\ No other parties commented on the selection of a
surrogate country. In addition, Petitioners and the three respondents
submitted publicly-available Philippine data for valuing FOP.\32\
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\30\ See Policy Memorandum. The Department notes that these six
countries are part of a non-exhaustive list of countries that are at
a level of economic development comparable to the PRC.
\31\ See Petitioners' May 18, 2010 submission at attachment.
\32\ See Petitioners' June 15, 2010 submission; see Hangzhou
Cadman's June 21, 2010 submission; see Dongguan Huansheng's June 15,
2010 submission; see also Wanvog's June 15, 2010 submission.
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Based on the information on the record, we find that the
Philippines is a significant producer of comparable merchandise.
Specifically, The Furniture Industry in the Philippines report
indicates that in 2006, Philippine manufacturers produced furniture
valued at $813 million and the Philippines exported furniture valued at
$279 million.\33\ The State of the Sector Report on Philippine
Furniture 2006 indicates that wooden furniture has replaced rattan as
the most commonly
[[Page 72798]]
used material and accounted for 51 percent of all Philippine furniture
exports.\34\ In addition, both The Furniture Industry in the
Philippines and State of the Sector Report on Philippine Furniture 2006
describes the furniture sector as comprised of approximately 15,000
manufacturers and 800,000 workers.\35\ Thus, record evidence shows that
the Philippines is a significant producer of merchandise that is
comparable to the merchandise under review.
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\33\ See Petitioners' May 18, 2010 submission at attachment
entitled, ``2009 New Shipper Review of the Antidumping Duty Order on
Wooden Bedroom Furniture from the People's Republic of China,''
dated January 15, 2010.
\34\ See id.
\35\ See id.
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With respect to data considerations in selecting a surrogate
country, both Petitioners and the three respondents have submitted
publicly-available Philippine data for valuing FOP. In addition, the
Department used the Philippines as the primary surrogate country in the
second, third, and fourth administrative reviews of this
proceeding.\36\ Therefore, based on its experience, the Department
finds that the Philippines has, in the past, provided reliable,
publicly-available data for valuing the FOP. However, for the input
``natural gas,'' the Department has been unable to locate a suitable
surrogate value from the Philippines. Therefore, we preliminarily
determine to use India as a secondary surrogate country because the
record shows that India is at a level of economic development
comparable to that of the PRC \37\ and is a significant producer of
merchandise comparable to subject merchandise.\38\ Moreover, India has
publicly available, country-wide data that clearly identifies the
relevant time period and prices for valuing gas.\39\
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\36\ See Wooden Bedroom Furniture from the People's Republic of
China: Preliminary Results of Antidumping Duty Administrative
Review, Preliminary Results of New Shipper Review and Partial
Rescission of Administrative Review, 73 FR 8273, 8277-78 (February
13, 2008) (unchanged in Wooden Bedroom Furniture from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review and New Shipper Review, 73 FR 49162 (August 20, 2008)); see
Wooden Bedroom Furniture from the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative and New
Shipper Reviews and Partial Rescission of Review, 74 FR 6372, 6376
(February 9, 2009) (unchanged in Wooden Bedroom Furniture from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review and New Shipper Reviews, 74 FR 41374 (August
17, 2009)); see also Wooden Bedroom Furniture from the People's
Republic of China: Preliminary Results of Antidumping Duty
Administrative Review and Intent To Rescind Review in Part, 75 FR
5952 (February 5, 2010) (unchanged in Wooden Bedroom Furniture from
the People's Republic of China: Final Results and Final Rescission
in Part, 75 FR 50992 (August 18, 2010)).
\37\ See Policy Memorandum.
\38\ Memorandum to the File entitled, ``2009 New Shipper Reviews
of Wooden Bedroom Furniture from the People's Republic of China:
Surrogate Value Memorandum for the Preliminary Results,'' dated
concurrently with the preliminary results (``Surrogate Value
Memorandum'').
\39\ See ``Factor Valuations'' below for further details.
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Thus, the Department has preliminarily selected the Philippines as
the primary surrogate country because the record shows that the
Philippines is at a level of economic development comparable to that of
the PRC and is a significant producer of merchandise comparable to
subject merchandise. Moreover, the record indicates that sufficient,
contemporaneous, public Philippine data are readily-available.\40\
Accordingly, we have selected the Philippines as the surrogate country
and, accordingly, have calculated NV using Philippine prices to value
Cadman's, Huansheng's and Wanvog's FOP.\41\ In accordance with 19 CFR
351.301(c)(3)(ii), interested parties may submit publicly-available
information to value the FOP until 20 days after the date of
publication of the preliminary results.\42\
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\40\ See Petitioners' Surrogate Value Submission, Wanvog's
Surrogate Value Submission, Dongguan Huansheng's Surrogate Value
Submission, and Cadman's Surrogate Value Submission.
\41\ See Surrogate Value Memorandum.
\42\ In accordance with 19 CFR 351.301(c)(1), for the final
results of this new shipper review, interested parties may submit
factual information to rebut, clarify, or correct factual
information submitted by an interested party less than ten days
before, on, or after, the applicable deadline for submission of such
factual information. However, the Department notes that 19 CFR
351.301(c)(1) permits new information only insofar as it rebuts,
clarifies, or corrects information placed on the record. The
Department generally will not accept the submission of additional,
previously absent-from-the-record alternative surrogate value
information pursuant to 19 CFR 351.301(c)(1). See Glycine from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review and Final Rescission, in Part, 72 FR 58809
(October 17, 2007) and accompanying Issues and Decision Memorandum
at Comment 2.
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Fair Value Comparisons
In accordance with section 777(A)(d) of the Act, to determine
whether Cadman, Huansheng and Wanvog sold wooden bedroom furniture to
the United States at less than NV, the Department compared the export
price (``EP'') and constructed export price (``CEP'') of U.S. sales to
NV, as described in the ``U.S. Price'' and ``Normal Value'' sections of
this notice.
U.S. Price
In accordance with section 772(a) of the Act, the Department used
EP as the basis for U.S. price for Huansheng's and Cadman's sales where
the first sale to unaffiliated purchasers was made prior to importation
and the use of CEP was not otherwise warranted. In accordance with
section 772(c) of the Act, the Department calculated EP for Huansheng
and Cadman by deducting the following expenses, where applicable, from
the starting price (gross unit price) charged to the first unaffiliated
customer in the United States: foreign inland freight from the plant to
the port of exportation, and foreign brokerage and handling.
Additionally, the Department based movement expenses on surrogate
values where the service was purchased from a PRC company. For details
regarding our EP calculations, see the Huansheng analysis memorandum
entitled, ``Wooden Bedroom Furniture from the People's Republic of
China: Preliminary Results Analysis Memorandum for Dongguan Huansheng
Furniture Co., Ltd.,'' (``Huansheng Analysis Memorandum''), dated
concurrently with the preliminary results, the Cadman analysis
memorandum entitled, ``Wooden Bedroom Furniture from the People's
Republic of China: Preliminary Results Analysis Memorandum for Hangzhou
Cadman Trading Co., Ltd.,'' (``Cadman Analysis Memorandum''), dated
concurrently with the preliminary results and the Surrogate Value
Memorandum.
In accordance with section 772(b) of the Act, the Department used
CEP as the basis for U.S. price for Wanvog's sales where Wanvog first
sold subject merchandise to its affiliated company in the United
States, which in turn sold subject merchandise to unaffiliated U.S.
customers. In accordance with section 772(b) of the Act, CEP is the
price at which the merchandise under investigation is first sold (or
agreed to be sold) in the United States before or after the date of
importation by or for the account of the producer or exporter of such
merchandise or by a seller affiliated with the producer or exporter, to
a purchaser not affiliated with the producer or exporter, as adjusted
under sections 772(c) and (d) of the Act. The Department calculated CEP
for Wanvog based on delivered prices to unaffiliated purchasers in the
United States and made deductions, where applicable, from the U.S.
sales price for movement expenses in accordance with section
772(c)(2)(A) of the Act. These movement expenses included foreign
inland freight from the plant to the port of exportation, brokerage and
handling, international freight, marine insurance, and U.S. customs
duty. In accordance with section 772(d)(1) of the Act, the Department
deducted credit expenses and indirect selling expenses from the U.S.
price, all of which relate to commercial activity in the United States.
Finally, the Department
[[Page 72799]]
deducted CEP profit, in accordance with sections 772(d)(3) and 772(f)
of the Act. For details regarding the CEP calculation, see the Wanvog
analysis memorandum entitled, ``Wooden Bedroom Furniture from the
People's Republic of China: Preliminary Results Analysis Memorandum for
Wanvog Furniture (Kunshan) Co., Ltd.,'' (``Wanvog Analysis
Memorandum''), dated concurrently with these preliminary results.
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine the NV using an FOP methodology if: (1) The merchandise is
exported from an NME country; and (2) the information does not permit
the calculation of NV using home-market prices, third-country prices,
or constructed value under section 773(e) of the Act. When determining
NV in an NME context, the Department will base NV on FOP, because the
presence of government controls on various aspects of these economies
renders price comparisons and the calculation of production costs
invalid under our normal methodologies. Under section 773(c)(3) of the
Act, FOP include, but are not limited to: (1) Hours of labor required;
(2) quantities of raw materials employed; (3) amounts of energy and
other utilities consumed; and (4) representative capital costs. The
Department based NV on FOP reported by Huansheng, Wanvog, and Cadman
for materials, energy, labor and packing.
In accordance with 19 CFR 351.408(c)(1), the Department will
normally use publicly-available surrogates to value FOP, but when a
producer sources an input from a market economy and pays for it in
market economy currency, the Department will normally value the factor
using the actual price paid for the input. However, when the Department
has reason to believe or suspect that such prices may be distorted by
subsidies, the Department will disregard the market economy purchase
prices and use surrogate values to determine the NV.\43\ Where the
facts developed in either U.S. or third-country countervailing duty
findings include the existence of subsidies that appear to be used
generally (in particular, broadly available, non-industry specific
export subsidies), the Department will have reason to believe or
suspect that prices of the inputs from the country granting the
subsidies may be subsidized.\44\
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\43\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, From the People's Republic of China; Final Results of
1998-1999 Administrative Review, Partial Rescission of Review, and
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10,
2001) (``TRBs 1998-1999''), and accompanying Issues and Decision
Memorandum at Comment 1.
\44\ See TRBs 1998-1999 at Comment 1; see also China Nat'l.
Machinery Imp. & Exp. Corp. v. United States, 293 F. Supp. 2d 1334,
1338-39 (Ct. Int'l Trade 2003).
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In avoiding the use of prices that may be subsidized, the
Department does not conduct a formal investigation to ensure that such
prices are not subsidized, but rather relies on information that is
generally available at the time of its determination.\45\
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\45\ See H.R. Rep. 100-576, at 590 (1988), reprinted in 1988
U.S.C.C.A.N. 1547, 1623-24.
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Factor Valuations
In accordance with section 773(c) of the Act, we calculated NV
based on FOP reported by Huansheng, Wanvog, and Cadman for the POR. To
calculate NV, the Department multiplied the reported per-unit factor
quantities by publicly-available Philippine and Indian surrogate
values. In selecting the surrogate values, the Department considered
the quality, specificity, and contemporaneity of the data. As
appropriate, the Department adjusted input prices by including freight
costs to make them delivered prices. Specifically, the Department added
to Philippine import surrogate values a surrogate freight cost using
the shorter of the reported distance from the domestic supplier to the
respondent's factory or the distance from the nearest seaport to the
respondent's factory where appropriate (i.e., where the sales terms for
the market-economy imports were not delivered to the factory). This
adjustment is in accordance with the decision of the Federal Circuit in
Sigma Corp. v. United States, 117 F.3d 1401, 1407-08 (Fed. Cir. 1997).
Where market-economy purchases of inputs were not made in
significant quantities, we used import values for the POR from the
Philippines National Statistics Office (``Philippines NSO'') reported
in U.S. dollars on a cost, insurance, and freight (``CIF'') basis to
value the following inputs: Woods (e.g., pine, particleboard, etc.),
adhesives and finishing materials (e.g., glue, paints, sealer, lacquer,
etc.), hardware (e.g., nails, staples, screws, bolts, knobs, pulls,
drawer slides, hinges, clasps, etc.), other materials (e.g., mirrors,
glass, leather, cloth, sponge, etc.), and packing materials (e.g.,
cardboard, cartons, plastic film, labels, tape, etc.). The Philippines
NSO is the only data source on the record that provides data on a net
weight basis, which is the same basis as reported by Huansheng, Wanvog,
and Cadman in reporting FOP. For a detailed description of all
surrogate values used to value the reported FOP, see Surrogate Value
Memorandum.
Where we could not obtain publicly-available information
contemporaneous with the POR with which to value FOP, we inflated (or
deflated) the surrogate values using the Philippine Wholesale Price
Index or the Indian Wholesale Price Index as published in the
International Financial Statistics of the International Monetary Fund.
On May 14, 2010, the Court of Appeals for the Federal Circuit
(``CAFC'') in Dorbest Ltd. v. United States, 604 F.3d 1363, 1372 (CAFC
2010) (``Dorbest IV''), found that the ``{regression-based{time}
method for calculating wage rates {as stipulated by 19 CFR
351.408(c)(3){time} uses data not permitted by {the statutory
requirements laid out in section 773 of the Act (i.e., 19 U.S.C.
1677b(c)){time} .'' The Department is continuing to evaluate options
for determining labor values in light of the recent CAFC decision.
For the preliminary results of these new shipper reviews, the
Department is valuing labor using a simple average industry-specific
wage rate using earnings or wage data reported under Chapter 5B by the
International Labor Organization (``ILO''). To achieve an industry-
specific labor value, we relied on industry-specific labor data from
the countries we determined to be both economically comparable to the
PRC and significant producers of comparable merchandise. A full
description of the industry-specific wage rate calculation methodology
is provided in the Surrogate Value Memorandum. The Department
calculated a simple average industry-specific wage rate of $1.20 for
these preliminary results. Specifically, for this review, the
Department has calculated the wage rate using a simple average of the
data provided to the ILO under Sub-Classification 36 of the ISIC-
Revision 3 standard by countries determined to be both economically
comparable to the PRC and significant producers of comparable
merchandise. The Department finds the two-digit description under
International Standard Industrial Classification--Revision 3
(``Manufacture of furniture; manufacturing n.e.c.'') to be the best
available wage rate surrogate value on the record because it is
specific and derived from industries that produce merchandise
comparable to the subject merchandise. Consequently, we averaged the
ILO industry-specific wage rate data or earnings data available from
the following countries found to be economically comparable to the PRC
and significant producers of comparable merchandise: Ecuador, Egypt,
[[Page 72800]]
Indonesia, Jordan, Peru, the Philippines, Thailand, and Ukraine. For
further information on the calculation of the wage rate, see Surrogate
Value Memorandum.
We valued electricity using contemporaneous Philippine data from
The Cost of Doing Business in Camarines Sur, which is available at the
Philippine government's Web site for the province: http://www.camarinessur.gov.ph. These data pertain only to industrial
consumption. See Surrogate Value Memorandum.
We valued natural gas using April through June 2002 data from the
Gas Authority of India Ltd. (``GAIL''). To be contemporaneous with the
POR, the Department inflated this factor value using the POR-average
wholesale price index for India.
We calculated the value of domestic brokerage and handling using
World Bank's Doing Business in the Philippines report.
We calculated the surrogate value for truck freight using
Philippine data from The Cost of Doing Business in Camarines Sur, which
we have printed from the Philippine government's Web site for the
province http://www.camarinessur.gov.ph) and placed upon the record
with the Surrogate Value Memorandum.
We valued factory overhead, selling, general, and administrative
(``SG&A'') expenses, and profit, using the audited financial statements
for the fiscal year ending December 31, 2008, from the following
producers: APY Cane International; Arkane International Corporation;
Berbenwood Industries Inc.; Clear Export Industries, Inc.; Diretso
Design Furnitures, Inc.; Heritage Muebles Mirabile Export Inc.; Horizon
International Manufacturing, Inc.; Insular Rattan and Native Products
Corp.; Interior Crafts Of The Islands, Inc.; Las Palmas Furniture,
Inc.; and Wicker & Vine, Inc., which are Philippine producers of
merchandise identical to subject merchandise that received no
countervailable subsidies and that earned a before-tax profit in 2008.
From this information, we were able to determine factory overhead costs
as a percentage of the total raw materials, labor and energy (``ML&E'')
costs; SG&A expenses as a percentage of ML&E plus overhead costs (i.e.,
cost of manufacture); and the profit rate as a percentage of the cost
of manufacture plus SG&A expenses. For further discussion, see
Surrogate Value Memorandum.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales as certified by the Federal Reserve Bank.
Preliminary Results of Review
The Department preliminarily determines that the following
weighted-average dumping margins exist for the period January 1, 2009,
through December 31, 2009:
------------------------------------------------------------------------
Weighted-
Exporter/manufacturer average margin
(percent)
------------------------------------------------------------------------
Exported and Produced by Dongguan Huansheng Furniture 0
Co., Ltd...............................................
Exported and Produced by Wanvog Furniture (Kunshan) Co., 2.69
Ltd....................................................
Exported by Hangzhou Cadman Trading Co., Ltd. and 0
Produced by Haining Changbei Furniture Co., Ltd........
------------------------------------------------------------------------
Disclosure
The Department will disclose calculations performed for these
preliminary results to the parties within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Public Comment
Interested parties may submit written comments no later than 30
days after the date of publication of these preliminary results of
review. See 19 CFR 351.309(c). Rebuttals to written comments must be
limited to the issues raised in the written comments and may be filed
no later than five days after the deadline for filing case briefs. See
19 CFR 351.309(d). Further, parties submitting written comments and
rebuttal comments are requested to provide the Department with an
additional copy of those comments on a compact disk. Any interested
party may request a hearing within 30 days of publication of these
preliminary results. See 19 CFR 351.310(c). If requested, a hearing
normally will be held two days after the scheduled date for submission
of rebuttal comments. See 19 CFR 351.310(d). Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
The Department will issue the final results of these new shipper
reviews, which will include the results of its analysis of any issues
raised in written comments, within 90 days of the date on which these
preliminary results are issued, in accordance with 19 CFR
351.214(i)(1), unless the time limit is extended. See 19 CFR
351.214(i)(2).
Assessment Rates
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries of
subject merchandise in accordance with the final results of these
reviews. For assessment purposes, the Department will calculate
importer-specific (or customer) ad valorem duty assessment rates based
on the ratio of the total amount of the dumping margins calculated for
the examined sales to the total entered value of those same sales. The
Department will instruct CBP to assess antidumping duties on all
appropriate entries covered by these reviews if any importer-specific
assessment rate calculated in the final results of these reviews is
above de minimis. The Department intends to issue assessment
instructions to CBP 15 days after the date of publication of the final
results of these reviews.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of these new shipper reviews for
shipments of subject merchandise from Huansheng, Wanvog, and Cadman
entered, or withdrawn from warehouse, for consumption on or after the
publication date, as provided by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for the exporter/producer combinations listed in
the table above will be the cash deposit rate established for that
combination in the final results of these reviews; (2) for subject
merchandise exported by Huansheng but not produced by Huansheng,
exported by Wanvog but not produced by Wanvog, and exported by Cadman
but not produced by Haining Changbei Furniture Co., Ltd. (``Haining
Changbei''), the cash deposit rate will continue to be the PRC-wide
rate of 216.01 percent; (3) for subject merchandise produced by
Huansheng but not exported by Huansheng or produced by Wanvog but not
exported by Wanvog, the cash deposit rate will be the rate applicable
to the exporter; and (4) for subject merchandise produced by Haining
Changbei but not exported by Cadman, the cash deposit rate will be the
rate applicable to the exporter. If the cash deposit rate calculated in
the final results of these reviews is zero or de minimis, for one of
the exporter/producer combinations listed in the table above, no cash
deposit will be required for entries of subject merchandise from that
exporter/
[[Page 72801]]
producer combination. These cash deposit requirements, when imposed,
shall remain in effect until further notice.
Notification to Interested Parties
This notice serves as a reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this POR. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
The Department is issuing and publishing this determination in
accordance with sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR
351.214(h) and 351.221(b)(4).
Dated: November 16, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-29828 Filed 11-24-10; 8:45 am]
BILLING CODE 3510-DS-P