Notice2022-16308
Multilayered Wood Flooring From the People's Republic of China: Preliminary Results of Antidumping Duty Changed Circumstances Review
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Published
July 29, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Zhejiang Yuhua Timber Co. Ltd. (Yuhua), A-Timber Flooring Company Limited (A-Timber), and Mullican Flooring Co. (Mullican) (collectively, Yuhua et al.), the U.S. Department of Commerce (Commerce) is issuing these preliminary results of the changed circumstances review (CCR) of the antidumping duty (AD) order on multilayered wood flooring (MLWF) from the People's Republic of China (China). Commerce preliminarily determines that the MLWF sold through A-Timber and described below is produced and exported by Yuhua; as such, it is excluded from the AD order. We invite interested parties to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 87 Issue 145 (Friday, July 29, 2022)</title>
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[Federal Register Volume 87, Number 145 (Friday, July 29, 2022)]
[Notices]
[Pages 45748-45750]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16308]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-970]
Multilayered Wood Flooring From the People's Republic of China:
Preliminary Results of Antidumping Duty Changed Circumstances Review
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Zhejiang Yuhua Timber Co. Ltd.
(Yuhua), A-Timber Flooring Company Limited (A-Timber), and Mullican
Flooring Co. (Mullican) (collectively, Yuhua et al.), the U.S.
Department of Commerce (Commerce) is issuing these preliminary results
of the changed circumstances review (CCR) of the antidumping duty (AD)
order on multilayered wood flooring (MLWF) from the People's Republic
of China (China). Commerce preliminarily determines that the MLWF sold
through A-Timber and described below is produced and exported by Yuhua;
as such, it is excluded from the AD order. We invite interested parties
to comment on these preliminary results.
DATES: Applicable July 29, 2022.
FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Max Goldman, 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) 482-6478 or (202)
482-3896, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 8, 2011, Commerce published the Order.\1\ On September
1, 2021, Yuhua, a Chinese producer and exporter of MLWF, A-Timber, an
unaffiliated company through which Yuhua's MLWF is sold to the United
States, and Mullican, an unaffiliated U.S. importer of this MLWF,
requested that Commerce initiate an expedited CCR, pursuant to section
751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19 CFR
351.216 and 351.221(c)(3).\2\ In this CCR Request, Yuhua et al.
requested that Commerce ``clearly state and provide clarifying
instruction to U.S. Customs and Border Protection (CBP) that
{MLWF{time} produced by {Yuhua{time} and sold to {Mullican{time} by
A-Timber Flooring is excluded from the {Order{time} .'' \3\
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\1\ See Multilayered Wood Flooring from the People's Republic of
China: Amended Final Affirmative Determination of Sales at Less than
Fair Value and Antidumping Duty Order, 76 FR 76690 (December 8,
2011), as amended in Multilayered Wood Flooring from the Peoples
Republic of China: Amended Antidumping and Countervailing Duty
Orders, 77 FR 5484 (February 3, 2012) (collectively, the Order).
\2\ See Yuhua et al.'s Letter, ``Request for Changed
Circumstances Review on Multi-Layered Wood Flooring,'' dated
September 1, 2021 (CCR Request).
\3\ Id. at 1-2.
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According to Yuhua et al., in the underlying less-than-fair-value
investigation of MLWF from China, Yuhua, a mandatory respondent,
reported that during the period of investigation (POI), it produced
MLWF in China and engaged A-Timber as its sales agent. Yuhua et al.
stated that A-Timber conducted all sales negotiations with unaffiliated
U.S. customers and issued the invoices, and, upon confirmation of the
sale, Yuhua exported the MLWF from China for delivery to the U.S.
customers.\4\ Based on this sales channel that Commerce examined in the
investigation, Commerce calculated a dumping margin of zero percent for
subject merchandise produced and exported by Yuhua which was sold to
the United States through A-Timber, and excluded subject merchandise
produced and exported by Yuhua from the Order. In their CCR Request,
Yuhua et al. claim that the sales channel on which Commerce based the
Final Determination has not changed since the POI.\5\ However, starting
in late 2020, CBP ceased implementing the cash deposit instructions
issued by Commerce with respect to the Final Determination, which
excluded from the Order MLWF produced and exported by Yuhua.\6\
According to Yuhua et al., CBP is now demanding the posting of cash
deposits and requiring the entry of Yuhua's MLWF to be classified as
``Type 3'' entries subject to ADs.\7\
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\4\ Id. at 4 and Exhibit 2; see also Multilayered Wood Flooring
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 76 FR 34318 (October 18, 2011) (Final
Determination), and accompanying Issues and Decision Memorandum.
\5\ Id. at 5.
\6\ Id. at 2 and Exhibit 2 (Investigation CBP Cash Deposit
Instructions). Yuhua et al. also notes that it requested a scope
ruling regarding its reported sales channel, which Commerce
rejected. Id. at Exhibit 1.
\7\ Id. at 3.
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In its CCR Request, Yuhua et al. argue that Commerce intended to
exclude from the Order MLWF produced and exported by Yuhua and sold
through A-Timber, as Commerce determined that Yuhua was the
``exporter'' for such sales. Yuhua et al. argue that any other
interpretation would mean that that Commerce was ``applying the zero
rate to a company (Yuhua) that had not issued one invoice or made one
sale to the U.S. during the POI.'' \8\ Accordingly, Yuhua et al. now
seek clarification that any MLWF sales transaction where Yuhua is the
producer and exporter, as listed in the shipping documents, and where
A-Timber is the sales agent, is excluded from the Order.\9\
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\8\ Id. at 7-8.
\9\ Id. at 7 and Exhibit 2 (containing sample sales documents
from Yuhua's response to section A of the AD questionnaire issued in
the investigation).
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On October 14, 2021, the American Manufacturers of Multilayered
Wood Flooring (the petitioner) filed a letter in support of Yuhua et
al.'s CCR Request, stating that Commerce should confirm that MLWF sold
through Yuhua's ``sales agent, A-Timber . . . is excluded from the
Order, consistent with {Commerce{time} 's prior determination . . . .''
\10\ On October 15, 2021, Commerce extended the deadline to initiate
this CCR and, on December 2, 2021, Commerce initiated this CCR, noting
that it was not combining the initiation with the preliminary results
because it was necessary to solicit additional information from Yuhua
et al. regarding A-Timber's role in the sales channel of MLWF produced
and exported by Yuhua.\11\ On February 22, 2022, Yuhua et al. responded
to Commerce's post-initiation questionnaire.\12\ In its questionnaire
response, Yuhua et al. reported, inter alia, the following information:
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\10\ See Petitioner's Letter, ``Multilayered Wood Flooring from
the People's Republic of China: Letter in Support of Request for
Changed Circumstances Review,'' dated October 14, 2021.
\11\ See Commerce's Letter, ``Request for a Changed Circumstance
Review Antidumping Duty Order on Multilayered Wood Flooring from the
People's Republic of China: Extension of Initiation Deadline,''
dated October 15, 2021; and Multilayered Wood Flooring from the
People's Republic of China: Notice of Initiation of Changed
Circumstances Review, 86 FR 68475 (December 2, 2021).
\12\ See Yuhua et al.'s Letter, ``Supplemental Questionnaire
Response,'' dated February 22, 2022.
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[[Page 45749]]
<bullet> Yuhua sells MLWF to the United States exclusively through
A-Timber and A-Timber conducts the marketing and price negotiations.
Yuhua provides A-Timber U.S. sales targets and Yuhua and A-Timber
strategize sales prices to the United States.
<bullet> The MLWF sold through A-Timber to the United States must
be produced by Yuhua.
<bullet> A-Timber represents Yuhua at sales exhibitions where both
Yuhua's and A-Timber's names are displayed on the information booths.
A-Timber also represents Yuhua's ``Parrot Brand'' trademark.
<bullet> Mullican frequently visits Yuhua's factory and Yuhua
promotes its products directly to Mullican.
<bullet> Yuhua is the exporter of record (e.g., it is listed in the
shipping documents) and ships directly to U.S. customers from its
plant. A-Timber does not take title to the merchandise.
<bullet> The sales contract is between A-Timber and Mullican.
<bullet> Yuhua issues an invoice to A-Timber, and A-Timber adds a
markup and issues its own sales invoice to Mullican.\13\
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\13\ Id.
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Scope of the Order
Multilayered wood flooring is composed of an assembly of two or
more layers or plies of wood veneer(s) \14\ in combination with a
core.\15\ The several layers, along with the core, are glued or
otherwise bonded together to form a final assembled product.
Multilayered wood flooring is often referred to by other terms, e.g.,
``engineered wood flooring'' or ``plywood flooring.'' Regardless of the
particular terminology, all products that meet the description set
forth herein are intended for inclusion within the definition of
subject merchandise.
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\14\ A ``veneer'' is a thin slice of wood, rotary cut, sliced or
sawed from a log, bolt or flitch. Veneer is referred to as a ply
when assembled.
\15\ Commerce Interpretive Note: Commerce interprets this
language to refer to wood flooring products with a minimum of three
layers.
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All multilayered wood flooring is included within the definition of
subject merchandise, without regard to: dimension (overall thickness,
thickness of face ply, thickness of back ply, thickness of core, and
thickness of inner plies; width; and length); wood species used for the
face, back and inner veneers; core composition; and face grade.
Multilayered wood flooring included within the definition of subject
merchandise may be unfinished (i.e., without a finally finished surface
to protect the face veneer from wear and tear) or ``prefinished''
(i.e., a coating applied to the face veneer, including, but not
exclusively, oil or oil-modified or water-based polyurethanes, ultra-
violet light cured polyurethanes, wax, epoxy-ester finishes, moisture-
cured urethanes and acid-curing formaldehyde finishes). The veneers may
be also soaked in an acrylic-impregnated finish. All multilayered wood
flooring is included within the definition of subject merchandise
regardless of whether the face (or back) of the product is smooth, wire
brushed, distressed by any method or multiple methods, or hand-scraped.
In addition, all multilayered wood flooring is included within the
definition of subject merchandise regardless of whether or not it is
manufactured with any interlocking or connecting mechanism (for
example, tongue-and-groove construction or locking joints). All
multilayered wood flooring is included within the definition of the
subject merchandise regardless of whether the product meets a
particular industry or similar standard.
The core of multilayered wood flooring may be composed of a range
of materials, including but not limited to hardwood or softwood veneer,
particleboard, medium-density fiberboard, high-density fiberboard
(HDF), stone and/or plastic composite, or strips of lumber placed edge-
to-edge.
Multilayered wood flooring products generally, but not exclusively,
may be in the form of a strip, plank, or other geometrical patterns
(e.g., circular, hexagonal). All multilayered wood flooring products
are included within this definition regardless of the actual or nominal
dimensions or form of the product. Specifically excluded from the scope
are cork flooring and bamboo flooring, regardless of whether any of the
sub-surface layers of either flooring are made from wood. Also excluded
is laminate flooring. Laminate flooring consists of a top wear layer
sheet not made of wood, a decorative paper layer, a core-layer of HDF,
and a stabilizing bottom layer.
Imports of the subject merchandise are provided for under the
following subheadings of the Harmonized Tariff Schedule of the United
States (HTSUS): \16\ 4412.31.0520; 4412.31.0540; 4412.31.0560;
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520;
4412.31.2610; 4412.31.2620; 4412.31.3175; 4412.31.4040; 4412.31.4050;
4412.31.4060; 4412.31.4070; 4412.31.4075; 4412.31.4080; 4412.31.4140;
4412.31.4160; 4412.31.4175; 4412.31.5125; 4412.31.5135; 4412.31.5155;
4412.31.5165; 4412.31.5175; 4412.31.5225; 4412.31.6000; 4412.31.9100;
4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0565; 4412.32.0570;
4412.32.0640; 4412.32.0665; 4412.32.2510; 4412.32.2520; 4412.32.2525;
4412.32.2530; 4412.32.2610; 4412.32.2625; 4412.32.3125; 4412.32.3135;
4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185; 4412.32.3225;
4412.32.5600; 4412.32.5700; 4412.39.1000; 4412.39.3000; 4412.39.4011;
4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 4412.39.4039;
4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062;
4412.39.4069; 4412.39.5010; 4412.39.5030; 4412.39.5050; 4412.94.1030;
4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3131;
4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100; 4412.94.5100;
4412.94.6000; 4412.94.7000; 4412.94.8000; 4412.94.9000; 4412.94.9500;
4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110;
4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160;
4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5105; 4412.99.5115;
4412.99.5710; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000;
4412.99.9500; 4418.71.2000; 4418.71.9000; 4418.72.2000; 4418.72.9500;
4418.74.2000;
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4418.74.9000; 4418.75.4000; 4418.75.7000; 4418.79.0100; and
9801.00.2500.
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\16\ On October 31, 2018 and March 10, 2022, we added the
following HTSUS subheadings to update the ACE Case Reference File:
4412.33.0640, 4412.33.0665, 4412.33.0670, 4412.33.2625,
4412.33.2630, 4412.33.3225, 4412.33.3235, 4412.33.3255,
4412.33.3275, 4412.33.3285, 4412.33.5700, 4412.34.2600,
4412.34.3225, 4412.34.3235, 4412.34.3255, 4412.34.3275,
4412.34.3285, 4412.34.5700, 4412.51.1030, 4412.51.1050,
4412.51.3105, 4412.51.4100, 4412.51.5100, 4412.52.1030,
4412.52.1050, 4412.52.3105, 4412.52.4100, 4412.52.5100,
4412.59.6000, 4412.59.7000, 4412.59.8000, 4412.59.9000,
4412.59.9500, 4412.91.0600, 4412.91.1030, 4412.91.1040,
4412.91.3110, 4412.91.3120, 4412.91.3130, 4412.91.3140,
4412.91.3160, 4412.91.3170, 4412.91.5105, 4412.92.0700,
4412.92.1130, 4412.92.1140, 4412.92.3120, 4412.92.3160,
4412.92.3170, 4412.92.4200, 4412.92.5205, 4412.99.5800,
4412.99.6100, 4412.99.7100, 4412.99.8100, 4412.99.9100,
4412.99.9700, 4418.74.2000, 4412.74.9000, 4418.75.4000, and
4418.75.7000. See Memoranda ``Request from Customs and Border
Protection to Update the ACE AD/CVD Case Reference File,'' dated
October 31, 2018; and ``Request from Customs and Border Protection
to Update the ACE AD/CVD Case Reference File,'' dated March 10,
2022.
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While HTSUS subheadings are provided for convenience and customs
purposes, the written description of the subject merchandise is
dispositive.
Preliminary Results of Changed Circumstances Reviews
Commerce's Final Determination specified that entries produced and
exported by Yuhua are excluded from the Order.\17\ After reviewing the
information on the record of this CCR, e.g., that Yuhua et al.'s sales
channel has not changed from that which we examined in the
investigation, Commerce preliminarily determines that Yuhua is the
producer and exporter of MLWF sold to the United States through A-
Timber.
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\17\ See CCR Request at Exhibit 2 (Investigation CBP Cash
Deposit Instructions).
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Should we reach the same determination in the final results, we
will instruct CBP that, because Yuhua is the producer and exporter of
MLWF sold through A-Timber, Yuhua's exclusion from the Order applies to
entries of such merchandise. That is, the exclusion would not apply to
MLWF produced and/or exported by a Chinese entity other than Yuhua and
sold through A-Timber. We also preliminarily determine that it is
appropriate to terminate any suspension of liquidation on MLWF produced
and exported by Yuhua and sold through A-Timber, and retroactively
apply this determination to all unliquidated entries of such
merchandise. We intend to release draft CBP instructions to parties at
the same time as these preliminary results and allow a period of time
for comments.
Public Comment
Interested parties may submit case briefs not later than 14 days
after the date of publication of this notice.\18\ Rebuttal briefs,
which must be limited to issues raised in case briefs, may be filed not
later than seven days after the due date for case briefs.\19\ All
submissions must be filed electronically using 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>. An electronically filed document must be
received successfully in its entirety in ACCESS by 5:00 p.m. Eastern
Time on the deadlines set forth in this notice.
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\18\ Commerce is exercising its discretion under 19 CFR
351.309(c)(1)(ii) to alter the time limit for filing of case briefs.
\19\ Commerce is exercising its discretion under 19 CFR
351.309(d)(1) to alter the time limit for filing of rebuttal briefs.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to the issues raised in the case and
rebuttal briefs, must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically via
ACCESS. An electronically-filed request must be received successfully
in its entirely by 5:00 p.m. Eastern Time within 14 days of publication
of this notice.\20\ Requests should contain: (1) the party's name,
address, and telephone number; (2) the number of participants; and (3)
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.\21\ Parties should confirm the date, time and location of
the hearing by telephone two days before the scheduled date.
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\20\ See 19 CFR 351.310(c).
\21\ See 19 CFR 351.310(d).
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Unless extended, consistent with 19 CFR 351.216(e), we intend to
issue the final results of this CCR no later than 270 days after the
date on which this review was initiated.
Notification to Interested Parties
This notice is published in accordance with sections 751(b)(1) and
777(i)(1) of the Act, and 19 CFR 351.216 and 351.221(c)(3)(i).
Dated: July 22, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-16308 Filed 7-28-22; 8:45 am]
BILLING CODE 3510-DS-P
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