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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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.
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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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