Notice2021-28074

Multilayered Wood Flooring From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, and Intent to Rescind Review, in Part; 2019

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Published
December 27, 2021

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of multilayered wood flooring (wood flooring) from the People's Republic of China (China). The period of review (POR) is January 1, 2019, through December 31, 2019. Interested parties are invited to comment on these preliminary results of review.

Full Text

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<title>Federal Register, Volume 86 Issue 245 (Monday, December 27, 2021)</title>
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[Federal Register Volume 86, Number 245 (Monday, December 27, 2021)]
[Notices]
[Pages 73244-73247]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28074]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-971]


Multilayered Wood Flooring From the People's Republic of China: 
Preliminary Results of Countervailing Duty Administrative Review, and 
Intent to Rescind Review, in Part; 2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of multilayered wood flooring (wood flooring) from the 
People's Republic of China (China). The period of review (POR) is 
January 1, 2019, through December 31, 2019. Interested parties are 
invited to comment on these preliminary results of review.

DATES: Applicable December 27, 2021.

[[Page 73245]]


FOR FURTHER INFORMATION CONTACT: Dennis McClure, AD/CVD Operations, 
Office VIII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5973.

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 2011, Commerce issued a countervailing duty (CVD) 
order on multilayered wood flooring from China.\1\ Several interested 
parties requested that Commerce conduct an administrative review of the 
Order. On February 4, 2021, Commerce published in the Federal Register 
a notice of initiation of an administrative review of the Order.\2\ On 
March 4 and October 7, 2021, we published in the Federal Register 
additional notices of initiation of an administrative review for two 
companies that were inadvertently excluded from the February 4, 2021 
notice. Altogether, we initiated an administrative review of 171 
producers/exporters for the POR.\3\ On June 15, 2021, we rescinded this 
administrative review, in part, with respect to 88 companies, based on 
timely withdrawal of review requests.\4\ For events that occurred since 
the Initiation Notice, see the Preliminary Decision Memorandum.\5\
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    \1\ See Multilayered Wood Flooring from the People's Republic of 
China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011) 
(Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 8166 (February 4, 2021) (Initiation 
Notice).
    \3\ Metropolitan Hardwood Floors, Inc. and Kember Flooring Inc., 
a.k.a. Kember Hardwood Flooring Inc. were inadvertently omitted from 
the initiation notice that published on February 4, 2021. See also 
Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, 86 FR 12599 (March 4, 2021); and Initiation of Antidumping 
and Countervailing Duty Administrative Reviews, 86 FR 55811 (October 
7, 2021).
    \4\ See Multilayered Wood Flooring from the People's Republic of 
China: Partial Rescission of Countervailing Duty Administrative 
Review; 2019, 86 FR 31696 (June 15, 2021) (Partial Rescission).
    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results in the Countervailing Duty Administrative Review of 
Multilayered Wood Flooring from the People's Republic of China; 
2019,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order is wood flooring from China. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.

Intent To Rescind Administrative Review, in Part

    The following parties submitted no shipment certifications: Anhui 
Longhua Bamboo Product Co., Ltd. (Anhui); Benxi Flooring Factory 
(General Partnership) (Benxi); Dalian Deerfu Wooden Product Co., Ltd. 
(Deerfu); Dalian Shengyu Science and Technology Development Co., Ltd. 
(Shengyu); Dunhua Dexin Wood Industry Co., Ltd./Dunhua City Dexin Wood 
Industry Co., Ltd. (Dexin); Jiangsu Yuhui International Trade Co., Ltd. 
(Yuhui); Jiashan Fengyun Timber Co., Ltd. (Fengyun); Jiaxing Hengtong 
Wood Co., Ltd. (Hengtong); Kember Flooring, Inc. (Kember); Kingman Wood 
Industry Co., Ltd. (Kingman); Muchsee Wood (Chuzhou) Co., Ltd. 
(Muchsee); Power Dekor Group Co., Ltd. (Power Dekor); Yingyi-Nature 
(Kunshan) Wood Industry Co., Ltd. (Yingyi-Nature); Zhejiang Dadongwu 
Greenhome Wood Co., Ltd. (Dadongwu); Zhejiang Shiyou Timber Co., Ltd. 
(Shiyou); and Zhejiang Shuimojiangnan New Material Technology Co., Ltd. 
(New Material). Based on our analysis of U.S. Customs and Border 
Protection (CBP) information and comments received from interested 
parties, we preliminarily determine that eleven companies, Anhui; 
Benxi; Shengyu; Dexin; Yuhui; Kingman; Muchsee; Power Dekor; Yingyi-
Nature; Shiyou; and New Material, had no shipments of subject 
merchandise during the POR.<SUP>6 7</SUP> Absent any evidence of 
shipments placed on the record, pursuant to 19 CFR 351.213(d)(3), we 
intend to rescind the administrative review of these companies in the 
final results of review. Based on our analysis of CBP information and 
comments received from interested parties, we preliminarily determine 
that Kember, Hengtong and Dadongwu made shipments during the POR. For 
additional information regarding this determination, see the 
Preliminary Decision Memorandum.
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    \6\ See Memorandum, ``No Shipment Inquiry for Certain Companies 
During the Period 01/01/2019 through 12/31/2019,'' dated November 
17, 2021.
    \7\ We did not consider Deerfu's no shipment certification and 
Fengyun's no shipment certification because we rescinded the review 
for these companies. See Partial Rescission, 86 FR at 31697.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a financial contribution by an 
``authority'' that confers a benefit to the recipient, and that the 
subsidy is specific.\8\ For a full description of the methodology 
underlying our preliminary conclusions, including our reliance, in 
part, on adverse facts available pursuant to sections 776(a) and (b) of 
the Act, see the Preliminary Decision Memorandum.
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>. A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix I to this notice.

Preliminary Rate for Non-Selected Companies Under Review

    As discussed above, Commerce initiated this administrative review 
on 171 producers/exporters; rescinded this administrative review, in 
part, with respect to 88 producers/exporters; and intends to rescind 
this review with respect to eleven companies that have certified no 
shipments during the POR. In addition, Commerce selected two mandatory 
respondents, Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. (Jiangsu 
Senmao) and Riverside Plywood Corp. (Riverside Plywood) for individual 
examination.\9\ For the remaining 67 companies subject this review, 
because the rates calculated for the mandatory respondents were above 
de minimis and not based entirely on facts available, we applied a 
subsidy rate based on a weighted-average of the subsidy rates 
calculated for Jiangsu Senmao and Riverside Plywood using publicly 
ranged sales data submitted by these mandatory respondents. This 
methodology to establish the all-others subsidy rate is consistent with 
our practice and section 705(c)(5)(A) of the Act. For further 
information on the calculation of the non-selected respondent rate, 
refer to the section in the Preliminary Decision Memorandum entitled 
``Non-Selected Companies Under Review.'' For a list of the non-

[[Page 73246]]

selected companies, see Appendix II to this notice.
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    \9\ Cross-owned affiliates are Baroque Timber Industries 
(Zhongshan) Co., Ltd.; Suzhou Times Flooring Co., Ltd.; and 
Zhongshan Lianjia Flooring Co., Ltd.
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Preliminary Results of the Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated a 
countervailable subsidy rate for each of the mandatory respondents, 
Jiangsu Senmao and Riverside Plywood, and their cross-owned affiliates, 
where applicable.
    We preliminarily find the countervailable subsidy rates for the 
mandatory and non-selected respondents under review to be as follows:
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    \10\ Cross-owned affiliates are Baroque Timber Industries 
(Zhongshan) Co., Ltd.; Suzhou Times Flooring Co., Ltd.; and 
Zhongshan Lianjia Flooring Co., Ltd.
    \11\ See Appendix II.

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                                                           Subsidy rate
                    Producer/exporter                        (percent)
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Riverside Plywood Corp. and its Cross-Owned Affiliates             22.70
 \10\...................................................
Jiangsu Senmao Bamboo and Wood Industry Co., Ltd........            5.50
Non-Selected Companies Under Review \11\................           15.71
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Disclosure

    We intend to disclose to interested parties the calculations 
performed for these preliminary results in accordance with 19 CFR 
351.224(b).

Verification

    As provided in section 782(i)(3) of the Act, Commerce intends to 
verify the information relied upon for its final results. Normally, 
Commerce verifies information using standard procedures, including an 
on-site examination of original accounting, financial, and sales 
documentation. However, due to current travel restrictions in response 
to the global COVID-19 pandemic, Commerce is unable to conduct on-site 
verification in this review. Accordingly, we intend to verify the 
information relied upon for the final results through alternative means 
in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. A timeline for the 
submission of case and rebuttal briefs and written comments will be 
provided to interested parties at a later date.\12\ Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information until further 
notice.\13\
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    \12\ See 19 CFR 351.309(c) and (d).
    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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    Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit 
case briefs or rebuttal briefs in this review 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, and a list of the issues to be discussed. If a request 
for a hearing is made, Commerce intends to hold the hearing at a time 
and date to be determined. Parties should confirm by telephone the date 
and time of the hearing two days before the scheduled date.
    An electronically filed document must be received successfully in 
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established 
deadline.

Final Results

    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and CBP shall assess, countervailing duties 
on all appropriate entries covered by this review. For the companies 
for which this review is rescinded, Commerce will instruct CBP to 
assess countervailing duties on all appropriate entries at a rate equal 
to the cash deposit of estimated countervailing duties required at the 
time of entry, or withdrawal from warehouse, for consumption, during 
the period January 1, 2019, through December 31, 2019, in accordance 
with 19 CFR 351.212(c)(l)(i). Commerce intends to issue assessment 
instructions to CBP no earlier than 35 days after the date of 
publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above and in Appendix II on 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of the final 
results of this administrative review. For all non-reviewed firms, we 
will instruct CBP to continue to collect cash deposits at the most 
recent company-specific or all-others rate applicable to the company. 
These cash deposit requirements, when imposed, shall remain in effect 
until further notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: December 17, 2021.
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--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Non-Selected Companies Under Review
IV. Scope of the Order
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks, Discount Rates, Inputs, Land-Use and 
Electricity Benchmarks
IX. Analysis of Programs
X. Recommendation

Appendix II--Non-Selected Companies Under Review

1. Anhui Boya Bamboo & Wood Products Co., Ltd.

[[Page 73247]]

2. Anhui Yaolong Bamboo & Wood Products Co. Ltd.
3. Armstrong Wood Products (Kunshan) Co., Ltd.
4. Benxi Wood Company
5. Changzhou Hawd Flooring Co., Ltd.
6. Dalian Guhua Wooden Product Co., Ltd.
7. Dalian Huilong Wooden Products Co., Ltd.
8. Dalian Jaenmaken Wood Industry Co., Ltd.
9. Dalian Jiahong Wood Industry Co., Ltd.
10. Dalian Kemian Wood Industry Co., Ltd.
11. Dalian Penghong Floor Products Co., Ltd.
12. Dalian Qianqiu Wooden Product Co., Ltd.
13. Dalian Shumaike Floor Manufacturing Co., Ltd.
14. Dalian T-Boom Wood Products Co., Ltd.
15. Dongtai Fuan Universal Dynamics, LLC
16. Dun Hua Sen Tai Wood Co., Ltd.
17. Dunhua City Hongyuan Wood Industry Co., Ltd.
18. Dunhua City Jisen Wood Industry Co., Ltd.
19. Dunhua Shengda Wood Industry Co., Ltd.
20. Fine Furniture (Shanghai) Limited
21. Fusong Jinlong Wooden Group Co., Ltd.
22. Fusong Jinqiu Wooden Product Co., Ltd.
23. Fusong Qianqiu Wooden Product Co., Ltd.
24. Guangdong Yihua Timber Industry Co., Ltd.
25. Guangzhou Homebon Timber Manufacturing Co., Ltd.
26. HaiLin LinJing Wooden Products Co., Ltd.
27. Hangzhou Hanje Tec Company Limited
28. Hangzhou Zhengtian Industrial Co., Ltd.
29. Hunchun Forest Wolf Wooden Industry Co., Ltd.
30. Hunchun Xingjia Wooden Flooring Inc.
31. Huzhou Chenghang Wood Co., Ltd.
32. Huzhou Fulinmen Imp. & Exp. Co., Ltd.
33. Huzhou Jesonwood Co., Ltd.
34. Huzhou Sunergy World Trade Co., Ltd.
35. Jiangsu Guyu International Trading Co., Ltd.
36. Jiangsu Keri Wood Co., Ltd.
37. Jiangsu Mingle Flooring Co., Ltd.
38. Jiangsu Simba Flooring Co., Ltd.
39. Jiashan HuiJiaLe Decoration Material Co., Ltd.
40. Jiashan On-Line Lumber Co., Ltd.
41. Jiaxing Brilliant Import & Export Co., Ltd.
42. Jiaxing Hengtong Wood Co., Ltd.
43. Jilin Xinyuan Wooden Industry Co., Ltd.
44. Karly Wood Product Limited
45. Kember Flooring, Inc., a.k.a. Kember Hardwood Flooring, Inc.
46. Kemian Wood Industry (Kunshan) Co., Ltd.
47. Kingman Floors Co., Ltd.
48. Lauzon Distinctive Hardwood Flooring
49. Linyi Anying Wood Co., Ltd.
50. Linyi Youyou Wood Co., Ltd. (successor-in-interest to Shanghai 
Lizhong Wood Products Co., Ltd.) (a/k/a The Lizhong Wood Industry 
Limited Company of Shanghai)
51. Metropolitan Hardwood Floors, Inc.
52. Pinge Timber Manufacturing (Zhejiang) Co., Ltd.
53. Power Dekor North America Inc.
54. Scholar Home (Shanghai) New Material Co. Ltd.
55. Shanghaifloor Timber (Shanghai) Co., Ltd.
56. Sino-Maple (Jiangsu) Co., Ltd.
57. Suzhou Dongda Wood Co., Ltd.
58. Tongxiang Jisheng Import and Export Co., Ltd.
59. Xiamen Yung De Ornament Co., Ltd.
60. Xuzhou Shenghe Wood Co., Ltd.
61. Yekalon Industry, Inc.
62. Yihua Lifestyle Technology Co., Ltd.
63. Zhejiang Dadongwu GreenHome Wood Co., Ltd. (a.k.a. Zhejiang 
Dadongwu Greenhome Wood Co., Ltd. and Zhejiang Dadongwu Green Home 
Wood Co., Ltd.)
64. Zhejiang Fuerjia Wooden Co., Ltd.
65. Zhejiang Jiechen Wood Industry Co., Ltd.
66. Zhejiang Longsen Lumbering Co., Ltd.
67. Zhejiang Simite Wooden Co., Ltd.

[FR Doc. 2021-28074 Filed 12-23-21; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on December 27, 2021.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.