Notice2022-13006
Multilayered Wood Flooring From the People's Republic of China: Final Results and Partial Rescission of Countervailing Duty Administrative Review; 2019
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Published
June 16, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) continues to determine that the mandatory respondents, Riverside Plywood Corporation (Riverside) and Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. (Jiangsu Senmao), and 66 other producers and/or exporters of multilayered wood flooring (wood flooring) from the People's Republic of China (China), received countervailable subsidies during the period of review (POR) January 1, 2019, through December 31, 2019.
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<title>Federal Register, Volume 87 Issue 116 (Thursday, June 16, 2022)</title>
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[Federal Register Volume 87, Number 116 (Thursday, June 16, 2022)]
[Notices]
[Pages 36305-36307]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13006]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
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Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 /
Notices
[[Page 36305]]
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-971]
Multilayered Wood Flooring From the People's Republic of China:
Final Results and Partial Rescission of Countervailing Duty
Administrative Review; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) continues to
determine that the mandatory respondents, Riverside Plywood Corporation
(Riverside) and Jiangsu Senmao Bamboo and Wood Industry Co., Ltd.
(Jiangsu Senmao), and 66 other producers and/or exporters of
multilayered wood flooring (wood flooring) from the People's Republic
of China (China), received countervailable subsidies during the period
of review (POR) January 1, 2019, through December 31, 2019.
DATES: Applicable June 16, 2022.
FOR FURTHER INFORMATION CONTACT: Dennis McClure or Jonathan Schueler,
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
or (202) 482-9175, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the Preliminary Results of this administrative
review in the Federal Register on December 27, 2021, and invited
interested parties to comment.\1\ On February 18, 2022, we received
case briefs from the following interested parties: Riverside,\2\
Jiangsu Senmao, Fine Furniture (Shanghai) Limited and Double F Limited
(collectively, Fine Furniture), Lumber Liquidators Services, LLC
(including various Chinese exporters and producers) (Lumber Liquidators
and Foreign Exporters/Producers), the Government of the People's
Republic of China (GOC), and the American Manufacturers of Multilayered
Wood Flooring (the petitioner).\3\ Struxtur, Inc. & Evolutions
Flooring, Inc. (Struxtur) and Jiaxing Hengtong Wood Co., Ltd.
(Hengtong) submitted letters in lieu of case briefs on February 18,
2022, concurring with the arguments of other respondent parties.\4\ On
March 2, 2022, we received rebuttal briefs from Riverside, Fine
Furniture, Jiangsu Senmao, and the petitioner.\5\ Zhejiang Dadongwu
Green Home Wood Co., Ltd. (Dadongwu) and Struxtur submitted letters in
lieu of a rebuttal case brief on March 2, 2022, incorporating the
rebuttal comments of other respondent parties.\6\ On March 30, 2022, we
held a public hearing to discuss the interested parties' comments.\7\
For a complete description of the events that occurred since the
Preliminary Results, see the Issues and Decision Memorandum.\8\
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\1\ See 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, 86 FR 73244
(December 27, 2021) (Preliminary Results), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ Cross-owned affiliates are Baroque Timber Industries
(Baroque Timber), Suzhou Times Flooring Co., Ltd., and Zhongshan
Lianjia Flooring Co., Ltd.
\3\ See Petitioner's Letter, ``Case Brief,'' dated February 18,
2022; see also GOC's Letter, ``Case Brief,'' dated February 18,
2022; Riverside's Letter, ``Administrative Case Brief,'' dated
February 22, 2022 (bracketing made final on February 22, 2022);
Jiangsu Senmao's Letter, ``Case Brief,'' dated February 18, 2022;
Fine Furniture's Letter, ``Case Brief,'' dated February 18, 2022;
and Lumber Liquidators and Foreign Exporters/Producers' Letter,
``Case Brief,'' dated February 18, 2022.
\4\ See Struxtur's Letter, ``Case Brief;'' dated February 18,
2022; see also Hengtong's Letter, ``CBP Data & Letter in Lieu of
Case Brief,'' dated February 18, 2022.
\5\ See Petitioner's Letter, ``Rebuttal Brief,'' dated March 2,
2022; see also Fine Furniture's Letter, ``Rebuttal Brief,'' dated
March 2, 2022; Riverside's Letter, ``Rebuttal Brief,'' dated March
2, 2022; and Jiangsu Senmao's Letter, ``Rebuttal Brief,'' dated June
15, 2021.
\6\ See Struxtur's Letter, ``Rebuttal Brief,'' dated March 2,
2022; see also Dadongwu's Letter, ``Letter in Lieu of Rebuttal
Brief,'' dated March 2, 2022.
\7\ See Memorandum, ``Multilayered Wood Flooring from the
People's Republic of China--9th Administrative Review: Scheduling of
Public Hearing,'' dated March 7, 2022; see also Submission of Neal
R. Gross and Co., Transcript of Public Hearing, filed April 6, 2022.
\8\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the 2019 Countervailing Duty Administrative Review
of Multilayered Wood Flooring from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Order
The product covered by the Order \9\ is multilayered wood flooring
from China. For a complete description of the scope of the Order, see
the Issues and Decision Memorandum.
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\9\ See Multilayered Wood Flooring from the People's Republic of
China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011)
(Order); see also Multilayered Wood Flooring from the People's
Republic of China: Amended Antidumping and Countervailing Duty
Orders, 77 FR 5484 (February 3, 2012) (Amended Order); and
Multilayered Wood Flooring from the People's Republic of China:
Final Clarification of the Scope of the Antidumping and
Countervailing Duty Orders, 82 FR 27799 (June 19, 2017).
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Verification
Commerce was unable to conduct on-site verification of the
information relied upon for the final results of this review. However,
we took additional steps in lieu of an on-site verification to verify
this information, in accordance with section 782(i) of the Act.\10\
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\10\ See Commerce's Letters, ``Jiangsu Senmao Bamboo and Wood
Industry Co., Ltd. Verification Questionnaire,'' dated January 10,
2022; and ``Riverside Plywood Corp. Verification Questionnaire,''
dated January 10, 2022.
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Analysis of Comments Received
All issues raised in the parties' briefs are addressed in the
Issues and Decision Memorandum. A list of the issues addressed is
attached to this notice at Appendix I. The Issues and 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 Issues and Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
Changes Since the Preliminary Results
Based on our analysis of the case and rebuttal briefs and the
evidence on the record, we made certain changes from the Preliminary
Results. These changes
[[Page 36306]]
are explained in the Issues and Decision Memorandum.
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 find that there is a
subsidy, i.e., a government-provided financial contribution that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\11\ The Issues and Decision Memorandum contains a full
description of the methodology underlying Commerce's conclusions,
including any determination that relied upon the use of adverse facts
available pursuant to sections 776(a) and (b) of the Act.
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\11\ 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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Partial Rescission of Administrative Review
As noted in the Preliminary Results, Commerce received timely no-
shipment certifications from 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); 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 determine that eleven companies, namely, Anhui, Benxi,
Shengyu, Dexin, Yuhui, Kingman, Muchsee, Power Dekor, Yingyi-Nature,
Shiyou, and New Material, had no shipments of subject merchandise
during the POR.\12\ \13\ We inquired with CBP whether these companies
had shipped merchandise to the United States during the POR, and CBP
provided no evidence to contradict the claims of no shipments made by
these companies. Therefore, we are rescinding the administrative review
for Anhui, Benxi, Shengyu, Dexin, Yuhui, Kingman, Muchsee, Power Dekor,
Yingyi-Nature, Shiyou, and New Material because these companies had no
shipments of subject merchandise during the POR.
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\12\ See Memorandum, ``No Shipment Inquiry for Certain Companies
During the Period 01/01/2019 through 12/31/2019,'' dated November
17, 2021.
\13\ We did not consider Deerfu's no shipment certification and
Fengyun's no shipment certification because we rescinded the review
for these companies. See Multilayered Wood Flooring from the
People's Republic of China: Partial Rescission of Countervailing
Duty Administrative Review; 2019, 86 FR at 31696 (June 15, 2021).
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Further, in the Preliminary Results, Commerce stated its intention
to rescind the review with respect to the above-referenced companies,
except for Hengtong, Dadongwu, and Kember, in the final results.\14\
Concerning Dadongwu and Kember, we continue to find that both companies
had entries of the subject merchandise during the POR; therefore, we
are not rescinding the administrative review for these two companies.
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\14\ See Preliminary Results PDM at 4 and 5.
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Regarding Hengtong, we requested CBP to provide entry documentation
to determine whether Hengtong had no shipments during the POR.\15\
After reviewing the CBP entry documentation, we determine that the
record evidence supports Hengtong's claim of no shipments during the
POR. Therefore, we are rescinding the administrative review of
Hengtong, pursuant to 19 CFR 351.213(d)(3). For additional information
regarding this determination, see the Issues and Decision Memorandum.
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\15\ See Memorandum, ``U.S. Customs and Border Protection (CBP)
Entry Documents,'' dated February 15, 2022, at Attachment 1.
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Final Results of Administrative Review
In accordance with 19 CFR 351.221(b)(5), we calculated a final
countervailable subsidy rate for each of the mandatory respondents,
Riverside and Jiangsu Senmao. For the companies subject to this review
that were not selected for individual examination, we followed Commerce
practice, which is to base the subsidy rates on an average of the
subsidy rates calculated for those companies selected for individual
examination, excluding de minimis rates or rates based entirely on
adverse facts available. In this case, for the non-selected companies,
we calculated a rate by weight-averaging the calculated subsidy rates
of Riverside and Jiangsu Senmao using their publicly ranged sales data
for exports of subject merchandise to the United States during the
POR.\16\ We find the countervailable subsidy rates for the producers/
exporters under review to be as follows:
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\16\ See Memorandum, ``Calculation of the Non-Selected Rate for
the Final Results,'' dated June 10, 2022.
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Subsidy
Producer/exporter rate
(percent)
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Riverside Plywood Corporation and its Cross-Owned Affiliates 12.74
\17\........................................................
Jiangsu Senmao Bamboo and Wood Industry Co., Ltd............. 3.36
Non-Selected Companies Under Review \18\..................... 9.85
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Disclosure
Commerce intends to disclose the calculations and analysis
performed for these final results of review within five days of the
date of publication of this notice in the Federal Register, in
accordance with 19 CFR 351.224(b).
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\17\ Cross-owned affiliates are Baroque Timber (Zhongshan)
Industries, Suzhou Times Flooring Co., Ltd., and Zhongshan Lianjia
Flooring Co., Ltd.
\18\ See Appendix II.
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Assessment Rates
Pursuant to 19 CFR 351.212(b)(2), Commerce will determine, and CBP
shall assess, countervailing duties on all appropriate entries of
subject merchandise in accordance with the final results of this
review, for the above-listed companies at the applicable ad valorem
assessment rates listed. We intend to issue assessment instructions to
CBP 35 days after the date of publication of these final results of
review. 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).
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 POR in accordance with 19 CFR 351.212(c)(l)(i).
Cash Deposit Instructions
In accordance with section 751(a)(2)(C) of the Act, Commerce also
intends to instruct CBP to collect cash deposits of estimated
countervailing duties in the amounts shown for each of the respective
companies listed above on shipments of subject merchandise
[[Page 36307]]
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 subject to the Order, we will instruct CBP
to continue to collect cash deposits of estimated countervailing duties
at the most recent company-specific or all-others rate applicable to
the company, as appropriate. These cash deposit requirements, effective
upon publication of these final results, shall remain in effect until
further notice.
Administrative Protective Order
This notice also serves as a reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a sanctionable
violation.
Notification to Interested Parties
We are issuing and publishing these final results in accordance
with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: June 10, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Final Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Period of Review
VI. Subsidies Valuation Information
VII. Changes Since the Preliminary Results
VIII. Use of Facts Otherwise Available
IX. Analysis of Programs
X. Discussion of Comments
Comment 1: Whether to Apply Adverse Facts Available to the
Export Buyer's Credit Program
Comment 2: Whether There Is a Basis to Apply Adverse Facts
Available Regarding the Countervailability of the Provision of
Electricity for Less Than Adequate Remuneration
Comment 3: Whether There Is a Basis to Apply Adverse Facts
Available to Specificity Regarding the Countervailability of the
Provision of Inputs for Less Than Adequate Remuneration
Comment 4: Whether Individually-Owned Suppliers Are Government
Authorities
Comment 5: Whether to Include New Zealand Trade Data in the
Valuation of Benchmark Prices
Comment 6: Whether Commerce Should Treat Pine Integrated Boards
as Veneers and Apply Adverse Facts Available or Neutral Facts
Available
Comment 7: Which Density Estimates to Use in the Benefit
Calculations for the Provision of Veneers, Plywood, and Fiberboard
for Less Than Adequate Remuneration
Comment 8: Whether to Include Certain Harmonized Tariff Schedule
Subheadings and International Tropical Timber Organization Prices in
the Glue, Fiberboard, Paint, Plywood, and Veneers Benchmark Price
Calculations
Comment 9: Whether to Rely on Drewry Ocean Freight Benchmark
Data and Input-Specific Sources of Ocean Freight Used to Calculate
the Ocean Freight Benchmarks for Veneers, Plywood, Fiberboard, Cut
Timber, Sawn Wood, Paint, and Glue
Comment 10: Whether to Revise Inland Freight Cost Calculation
Methodology to Include Border Fees and Port Charges
Comment 11: Whether to Include All Receipts to Determine the
Measurability of the Participation of Standard Draft Program
Comment 12: Whether to Base the Electricity Benchmark Prices on
the Highest Prices When Tariff Schedules for Different Time Periods
Exist
Comment 13: Whether to Countervail Loans Based on a Financial
Lease Back
Comment 14: Whether to Rescind the Review, In Part, Based on CBP
Information
Comment 15: Whether Commerce Made Ministerial Errors in the
Subsidy Rate Calculations Pertaining to Various Programs
XI. Recommendation
Appendix II
Non-Selected Companies Under Review
1. Anhui Boya Bamboo & Wood Products Co., Ltd.
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. Jilin Xinyuan Wooden Industry Co., Ltd.
43. Karly Wood Product Limited
44. Kember Flooring, Inc., a.k.a. Kember Hardwood Flooring, Inc.
45. Kemian Wood Industry (Kunshan) Co., Ltd.
46. Kingman Floors Co., Ltd.
47. Lauzon Distinctive Hardwood Flooring
48. Linyi Anying Wood Co., Ltd.
49. 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)
50. Metropolitan Hardwood Floors, Inc.
51. Pinge Timber Manufacturing (Zhejiang) Co., Ltd.
52. Power Dekor North America Inc.
53. Scholar Home (Shanghai) New Material Co. Ltd.
54. Shanghaifloor Timber (Shanghai) Co., Ltd.
55. Sino-Maple (Jiangsu) Co., Ltd.
56. Suzhou Dongda Wood Co., Ltd.
57. Tongxiang Jisheng Import and Export Co., Ltd.
58. Xiamen Yung De Ornament Co., Ltd.
59. Xuzhou Shenghe Wood Co., Ltd.
60. Yekalon Industry, Inc.
61. Yihua Lifestyle Technology Co., Ltd.
62. Zhejiang Dadongwu GreenHome Wood Co., Ltd. (a.k.a. Zhejiang
Dadongwu Greenhome Wood Co., Ltd. and Zhejiang Dadongwu Green Home
Wood Co., Ltd.)
63. Zhejiang Fuerjia Wooden Co., Ltd.
64. Zhejiang Jiechen Wood Industry Co., Ltd.
65. Zhejiang Longsen Lumbering Co., Ltd.
66. Zhejiang Simite Wooden Co., Ltd.
[FR Doc. 2022-13006 Filed 6-15-22; 8:45 am]
BILLING CODE 3510-DS-P
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