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Notice2023-11473

Multilayered Wood Flooring From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2020

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Published
May 31, 2023

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 18 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, 2020, through December 31, 2020.

Full Text

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<title>Federal Register, Volume 88 Issue 104 (Wednesday, May 31, 2023)</title>
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[Federal Register Volume 88, Number 104 (Wednesday, May 31, 2023)]
[Notices]
[Pages 34828-34830]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11473]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-971]


Multilayered Wood Flooring From the People's Republic of China: 
Final Results of Countervailing Duty Administrative Review; 2020

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 18 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, 2020, through December 31, 2020.

DATES: Applicable May 31, 2023.

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 22, 2022, and invited 
interested parties to comment.\1\ On January 30, 2023, we received case 
briefs from the following interested parties: Riverside,\2\ Jiangsu 
Senmao, 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\ Fine Furniture (Shanghai) Limited and Double F Limited 
(collectively, Fine Furniture); and Zhejiang Longsen Lumbering Co., 
Ltd., Huzhou Chenghang Wood Co., Ltd., Hunchun Xingjia Wooden Flooring 
Inc., Huzhou Fulinmen Imp. & Exp. Co., Ltd., Zhejiang Fuerjia Wooden 
Co., Ltd, and Dun Hua Sen Tai Wood Co., Ltd, (collectively, CTL Group) 
submitted letters in lieu of case briefs on January 30, 2023, 
concurring with the arguments of other respondent parties.\4\ On 
February 13, 2023, we received rebuttal briefs from Riverside, Jiangsu 
Senmao, and the petitioner.\5\ Fine Furniture and Lumber Liquidators 
and Foreign Exporters/Producers submitted letters in lieu of a rebuttal 
case brief on February 13, 2023, incorporating the rebuttal comments of 
other respondent parties.\6\ On May 3, 2023, we held a public hearing 
to discuss the interested parties' comments.\7\
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    \1\ See Multilayered Wood Flooring from the People's Republic of 
China: Preliminary Results and Partial Rescission of Countervailing 
Duty Administrative Review; 2020, 87 FR 78644 (December 22, 2022) 
(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 January 30, 
2023; see also GOC's Letter, ``Case Brief,'' dated January 30, 2023; 
Riverside's Letter, ``Administrative Case Brief,'' dated January 30, 
2023; Jiangsu Senmao's Letter, ``Case Brief,'' dated January 30, 
2023; and Lumber Liquidators' Letter, ``Case Brief,'' dated January 
30, 2023.
    \4\ See Fine Furniture's Letter, ``Letter in Lieu of Case 
Brief;'' dated January 30, 2023; see also CTL Group's Letter, 
``Letter in Lieu of Case Brief,'' dated January 30, 2023.
    \5\ See Petitioner's Letter, ``Rebuttal Brief,'' dated February 
13, 2023; see also Riverside's Letter, ``Rebuttal Brief,'' dated 
February 13, 2023; and Jiangsu Senmao's Letter, ``Rebuttal Brief,'' 
dated February 13, 2023.
    \6\ See Fine Furniture's Letter, ``Letter in Lieu of Rebuttal 
Brief,'' dated February 13, 2023; see also Lumber Liquidators and 
Foreign Exporters/Producers Letter, ``Letter in Lieu of Rebuttal 
Brief,'' dated February 13, 2023.
    \7\ See Memorandum, ``Scheduling of Public Hearing,'' dated 
April 17, 2023; see also Submission of Neal R. Gross and Co., 
Transcript of Public Hearing, filed May 10, 2023.
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Scope of the Order

    The product covered by the Order \8\ is multilayered wood flooring 
from China.

[[Page 34829]]

For a complete description of the scope of the Order, see the Issues 
and Decision Memorandum.\9\
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    \8\ 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).
    \9\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2020 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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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 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.\10\ 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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    \10\ 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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Rate for Non-Selected Companies Under Review

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
individual examination when Commerce limits its examination in an 
administrative review pursuant to section 777A(e)(2) of the Act. 
However, Commerce normally determines the rates for non-selected 
companies in reviews in a manner that is consistent with section 
705(c)(5) of the Act, which provides the basis for calculating the all-
others rate in an investigation. Section 705(c)(5)(A)(i) of the Act 
instructs Commerce, as a general rule, to calculate the all-others rate 
equal to the weighted average of the countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero or de minimis countervailable subsidy rates, and any 
rates determined entirely on the basis of facts available.
    There are 18 companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent. For these non-
selected companies, because the rates calculated for the participating 
mandatory respondents in this review, Riverside and Jiangsu Senmao, 
were above de minimis and not entirely based on facts available, 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.\11\ 
 
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    \11\ See Memorandum, ``Calculation of the Non-Selected Rate for 
the Final Results,'' dated concurrently with this notice.
    \12\ Cross-owned affiliates are Baroque Timber (Zhongshan) 
Industries, Suzhou Times Flooring Co., Ltd., and Zhongshan Lianjia 
Flooring Co., Ltd.
    \13\ See Appendix II.
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    This is the same methodology Commerce applied in the Preliminary 
Results for determining a rate for companies not selected for 
individual examination. However, due to changes in the calculations for 
Riverside and Jiangsu Senmao, we revised the non-selected rate 
accordingly. Consequently, for the 18 non-selected companies for which 
a review was requested and not rescinded, we are applying an ad valorem 
subsidy rate of 13.04 percent.

Final Results of Administrative Review

    We determine the countervailable subsidy rates for the mandatory 
and non-selected respondents under review for the period of January 1, 
2020, through December 31, 2020, are as follows:

------------------------------------------------------------------------
                                                           Subsidy rate
                    Producer/exporter                        (percent)
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Riverside Plywood Corporation and its Cross-Owned                  17.06
 Affiliates \12\........................................
Jiangsu Senmao Bamboo and Wood Industry Co., Ltd........            3.26
Non-Selected Companies Under Review \13\................           13.04
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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).

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).

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 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

[[Page 34830]]

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: May 23, 2023.
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. Non-Selected Companies Under 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 to Apply Adverse Facts Available Regarding 
the Countervailability of the Provision of Electricity for Less Than 
Adequate Remuneration
    Comment 3: Whether 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 Commerce Should Treat Pine Integrated Boards 
as Veneers
    Comment 6: Whether Commerce Should Weight International Tropical 
Timber Organization Pricing Data Differently for the Wood Input 
Benchmarks
    Comment 7: Whether to Include Certain Harmonized Schedule 
Subheadings in the Glue, Paint, and Plywood Benchmark Price 
Calculations
    A. Wood Glue and Adhesives Benchmark: Whether to Include 3906.10
    B. Paint, Primer, and Stain Benchmark: Whether to Exclude 
3208.10; 3208.90; and 3209.90
    C. Plywood Benchmark: Whether to Exclude All UN Comtrade Data 
and Use ITTO Prices for Specific Grades
    Comment 8: Whether to Include UN Comtrade Data for China and 
ASEAN in the Input for Less Than Adequate Remuneration Benchmarks
    Comment 9: Whether to Include Domestic ITTO Pricing Data in Tier 
Two World Market Benchmark Prices
    Comment 10: Whether to Rely on Certain Ocean Freight Benchmark 
Data Used to Calculate the Ocean Freight Benchmarks
    Comment 11: Whether to Use the Respondents' Inland Freight Costs 
for the Inland Freight Benchmark
    Comment 12: Whether Commerce Correctly Calculated Baroque 
Timber's Backboard Veneer Benefit
    Comment 13: Whether Commerce Made Ministerial Errors in the 
Subsidy Rate Calculations Pertaining to Various Provision of Inputs 
for Less Than Adequate Remuneration Programs
XI. Recommendation

Appendix II--Non-Selected Companies Under Review

1. Benxi Flooring Factory (General Partnership)
2. Dalian Kemian Wood Industry Co., Ltd.
3. Dalian Penghong Floor Products Co., Ltd.
4. Dalian Qianqiu Wooden Product Co., Ltd.
5. Dalian Shumaike Floor Manufacturing Co., Ltd.
6. Dun Hua Sen Tai Wood Co., Ltd.
7. Dunhua Shengda Wood Industry Co., Ltd.
8. Fine Furniture (Shanghai) Limited
9. Fusong Jinlong Wooden Group Co., Ltd.
10. Fusong Jinqiu Wooden Product Co., Ltd.
11. Fusong Qianqiu Wooden Product Co., Ltd.
12. Huzhou Jesonwood Co., Ltd
13. Jiangsu Guyu International Trading Co., Ltd.
14. Jiashan HuiJiaLe Decoration Material Co., Ltd.
15. Kingman Wood Industry Co., Ltd.
16. Metropolitan Hardwood Floors, Inc.
17. Samling Elegant Living Trading (Labuan) Ltd.
18. Zhejiang Fuerjia Wooden Co., Ltd.

[FR Doc. 2023-11473 Filed 5-30-23; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on May 31, 2023.

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