Notice2024-04330
Mattresses From Italy: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances
Primary source
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Published
March 1, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that mattresses from Italy are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2022, through June 30, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 42 (Friday, March 1, 2024)</title>
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[Federal Register Volume 89, Number 42 (Friday, March 1, 2024)]
[Notices]
[Pages 15143-15146]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-04330]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-845]
Mattresses From Italy: Preliminary Affirmative Determination of
Sales at Less Than Fair Value and Preliminary Affirmative Determination
of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that mattresses from Italy are being, or are likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation (POI) is July 1, 2022, through June 30, 2023. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable March 1, 2024.
FOR FURTHER INFORMATION CONTACT: Adam Simons, AD/CVD Operations, Office
IX, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482-6172.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on August 23,
2023.\1\ On October 23, 2023, Commerce postponed the preliminary
determination of this investigation until February 23, 2024.\2\
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\1\ See Mattresses From Bosnia and Herzegovina, Bulgaria, Burma,
India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia,
Spain, and Taiwan: Initiation of Less-Than-Fair-Value
Investigations, 88 FR 57433 (August 23, 2023) (Initiation Notice).
\2\ See Mattresses from Bosnia and Herzegovina, Bulgaria, Burma,
India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia,
Spain, and Taiwan: Postponement of Preliminary Determinations in the
Less-Than-Fair Value Investigations, 88 FR 72737 (October 23, 2023).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. 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>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Mattresses from Italy,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are mattresses from
Italy. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble,\4\ we set aside a period of time
for parties to raise issues regarding product coverage (i.e.,
scope).\5\ Certain interested parties commented on the scope of the
investigation as it appeared in the Initiation Notice. For a summary of
the product coverage comments and rebuttal responses submitted to the
record for this preliminary determination and accompanying discussion
and analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum.\6\ Commerce is not preliminarily modifying the
scope language as it appeared in the Initiation Notice. See the scope
in Appendix I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 88 FR at 57434.
\6\ See Memorandum, ``Mattresses from Bosnia and Herzegovina,
Bulgaria, Burma, India, Indonesia, Italy, Kosovo, Mexico,
Philippines, Poland, Slovenia, Spain, and Taiwan: Preliminary Scope
Decision Memorandum,'' dated concurrently with this preliminary
determination (Preliminary Scope Decision Memorandum).
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In the Preliminary Scope Decision Memorandum, Commerce established
the deadline for parties to submit scope case and rebuttal briefs.\7\
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\7\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act,
Commerce has preliminarily relied upon facts otherwise available with
adverse inferences for Gruppo Industriale Buoninfante (Buoninfante),
Silver Prince S.R.L. (Silver Prince), and Alessanderx SpA
(Alessanderx). For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
On January 24, 2024, the petitioners \8\ timely filed a critical
circumstances allegation, pursuant to section 733(e)(1) of the Act and
19 CFR 351.206(c)(1), alleging that critical circumstances exist with
respect to imports of the subject merchandise from Italy.\9\
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\8\ The petitioners are: Brooklyn Bedding LLC; Carpenter Co.;
Corsicana Mattress Company; Future Foam, Inc.; FXI, Inc.; Kolcraft
Enterprises, Inc.; Leggett & Platt, Incorporated; Serta Simmons
Bedding, LLC; Southerland, Inc.; Tempur Sealy International; the
International Brotherhood of Teamsters; and the United Steel, Paper
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
Service Workers International Union, AFL-CIO.
\9\ See Petitioners' Letter, ``Mattress Petitioners' Allegation
of Critical Circumstances,'' dated January 24, 2024.
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Section 733(e)(1) of the Act provides that Commerce will
preliminarily determine that critical circumstances exist in an LTFV
investigation if there is a reasonable basis to believe or suspect
that: (A) there is a history of dumping and material injury by reason
of dumped imports in the United States or elsewhere of the subject
merchandise, or the person by whom, or for whose account, the
merchandise was imported knew or should have known that the exporter
was selling the subject merchandise at less than its fair value and
that there was likely to be material injury by reason of such sales;
and (B) there have been massive imports of the subject merchandise over
a relatively short period. We preliminarily determine that critical
circumstances exist with respect to imports of mattresses from Italy.
For a full description of the methodology underlying the preliminary
critical circumstances determination, see the Preliminary Decision
Memorandum.
All-Others Rate
Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that
in the preliminary determination, Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act.
Pursuant to section 735(c)(5)(B) of the Act, if the estimated
weighted-average dumping margins established for all exporters and
producers individually examined are zero, de minimis, or determined
based entirely on facts otherwise available, Commerce may use any
reasonable method to establish the estimated weighted-average dumping
margin for all other producers and exporters. Commerce has
preliminarily determined the estimated weighted-average dumping margin
for each of the individually examined respondents under section 776 of
the Act. Although, pursuant to section 735(c)(5)(B) of the Act,
Commerce's normal practice under these circumstances has been to
calculate the all-others rate as a simple average of the alleged
dumping margins from the petition,\10\ the petitioners calculated only
one estimated dumping margin in the petition (i.e., 257.06
percent).\11\ Therefore, consistent with Commerce's practice, we have
preliminary assigned the dumping margin of 257.06 percent as the all-
others rate in this investigation.
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\10\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value: Sodium Nitrite from the Federal Republic of
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8,
2008), and accompanying Issues and Decision Memorandum at Comment 2;
see also Notice of Final Determination of Sales at Less Than Fair
Value: Raw Flexible Magnets from Taiwan, 73 FR 39673, 39674 (July
10, 2008); Steel Threaded Rod from Thailand: Preliminary
Determination of Sales at Less Than Fair Value and Affirmative
Preliminary Determination of Critical Circumstances, 78 FR 79670,
79671 (December 31, 2013), unchanged in Steel Threaded Rod from
Thailand: Final Determination of Sales at Less Than Fair Value and
Affirmative Final Determination of Critical Circumstances, 79 FR
14476, 14477 (March 14, 2014).
\11\ See Initiation Notice, 88 FR at 57436.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Weighted-
average
Producer/exporter dumping
margin
(percent)
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Gruppo Industriale Buoninfante S.P.A........................ * 257.06
Silver Prince S.R.L......................................... * 257.06
Alessanderx SpA............................................. * 257.06
All Others.................................................. 257.06
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*Adverse Facts Available (AFA).
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption, as discussed below.
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), Commerce will instruct CBP to require a cash deposit equal
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) the cash deposit rate for the respondents
listed above will be equal to the company-specific estimated weighted-
average dumping margins determined in this preliminary determination;
(2) if the exporter is not a respondent identified above, but the
producer is, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for that
producer of the subject merchandise; and (3) the cash deposit rate for
all other producers and exporters will be equal to the all-others
estimated weighted-average dumping margin.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced or exported by the mandatory respondents and all
other producers and/or exporters of mattresses from Italy.\12\ In
accordance with section 733(e)(2)(A) of the Act, the suspension of
liquidation shall apply to all unliquidated entries of subject
merchandise from all producers and exporters of mattresses from Italy
that
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were entered, or withdrawn from warehouse, for consumption on or after
the date which is 90 days before the publication of this notice in the
Federal Register. These suspension of liquidation instructions will
remain in effect until further notice.
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\12\ See Preliminary Decision Memorandum.
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Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a preliminary determination within five
days of any public announcement or, if there is no public announcement,
within five days of the date of publication of the notice of
preliminary determination in the Federal Register, in accordance with
19 CFR 351.224(b). However, because Commerce preliminarily applied AFA
to each of the individually examined companies in this investigation,
in accordance with section 776 of the Act, and the applied AFA rate is
based solely on the petition, there are no calculations to disclose.
Verification
Because the individually examined respondents in this investigation
did not provide information requested by Commerce, and Commerce
preliminarily determines each of the examined respondents to have been
uncooperative, we will not conduct verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of the preliminary
determination.\13\ Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\14\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\15\
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\13\ Commerce is exercising its discretion under 19 CFR
351.309(c)(1)(i) to alter the time limit for the filing of case
briefs.
\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Final Service Rule).
\15\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2), in prior proceedings we
have encouraged interested parties to provide a summary of their
arguments in their brief that should be limited to five pages total,
including footnotes. In this investigation, we instead request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\16\ Further,
we request that interested parties limit their executive summary of
each issue to no more than 450 words, not including citations. We
intend to use the executive summaries as the basis of the comment
summaries included in the issues and decision memorandum that will
accompany the final determination in this investigation. We request
that interested parties include footnotes for relevant citations in the
executive summary of each issue. Note that Commerce has amended certain
of its requirements pertaining to the service of documents in 19 CFR
351.303(f).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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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, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce will inform parties of the time and date for the hearing.
Parties should confirm by telephone the date, time, and location of the
hearing two days before the scheduled date.
Final Determination
Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination. Accordingly, Commerce will make
its final determination no later than 75 days after the signature date
of this preliminary determination.
U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: February 23, 2024.
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
Scope of the Investigation
The products covered by this investigation are all types of
youth and adult mattresses. The term ``mattress'' denotes an
assembly of materials that at a minimum includes a ``core,'' which
provides the main support system of the mattress, and may consist of
innersprings, foam, other resilient filling, or a combination of
these materials. Mattresses also may contain: (1) ``upholstery,''
the material between the core and the top panel of the ticking on a
single-sided mattress, or between the core and the top and bottom
panel of the ticking on a double-sided mattress; and/or (2)
``ticking,'' the outermost layer of fabric or other material (e.g.,
vinyl) that encloses the core and any upholstery, also known as a
cover.
The scope of this investigation is restricted to only ``adult
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' are
frequently described as ``twin,'' ``extra-long twin,'' ``full,''
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth
mattresses'' are typically described as ``crib,'' ``toddler,'' or
``youth'' mattresses. All adult and youth mattresses are included
regardless of size and size description or how they are described
(e.g., frameless futon mattress and tri-fold mattress).
The scope encompasses all types of ``innerspring mattresses,''
``non-innerspring mattresses,'' and ``hybrid mattresses.''
``Innerspring mattresses'' contain innersprings, a series of metal
springs joined together in sizes that correspond to the dimensions
of mattresses. Mattresses that contain innersprings are referred to
as ``innerspring mattresses'' or ``hybrid mattresses.'' ``Hybrid
mattresses'' contain two or more support systems as the core, such
as layers of both memory foam and innerspring units.
``Non-innerspring mattresses'' are those that do not contain any
innerspring units. They are generally produced from foams (e.g.,
polyurethane, memory (viscoelastic), latex foam, gel infused
viscoelastic (gel foam), thermobonded polyester, polyethylene) or
other resilient filling.
Mattresses covered by the scope of this investigation may be
imported independently, as part of furniture or furniture mechanisms
(e.g., convertible sofa bed mattresses, sofa bed mattresses imported
with sofa bed mechanisms, corner group mattresses, day-bed
mattresses, roll-away bed mattresses, high risers, trundle bed
mattresses, crib mattresses), or as part of a set (in combination
with a ``mattress foundation''). ``Mattress foundations'' are any
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base or support for a mattress. Mattress foundations are commonly
referred to as ``foundations,'' ``boxsprings,'' ``platforms,'' and/
or ``bases.'' Bases can be static, foldable, or adjustable. Only the
mattress is covered by the scope if imported as part of furniture,
with furniture mechanisms, or as part of a set, in combination with
a mattress foundation.
Excluded from the scope of this investigation are ``futon''
mattresses. A ``futon'' is a bi-fold frame made of wood, metal, or
plastic material, or any combination thereof, that functions as both
seating furniture (such as a couch, love seat, or sofa) and a bed. A
``futon mattress'' is a tufted mattress, where the top covering is
secured to the bottom with thread that goes completely through the
mattress from the top through to the bottom, and it does not contain
innersprings or foam. A futon mattress is both the bed and seating
surface for the futon.
Also excluded from the scope are airbeds (including inflatable
mattresses) and waterbeds, which consist of air- or liquid-filled
bladders as the core or main support system of the mattress.
Also excluded is certain multifunctional furniture that is
convertible from seating to sleeping, regardless of filler material
or components, where such filler material or components are
upholstered, integrated into the design and construction of, and
inseparable from, the furniture framing, and the outermost layer of
the multifunctional furniture converts into the sleeping surface.
Such furniture may, and without limitation, be commonly referred to
as ``convertible sofas,'' ``sofabeds,'' ``sofa chaise sleepers,''
``futons,'' ``ottoman sleepers,'' or a like description.
Also excluded from the scope of this investigation are any
products covered by the existing antidumping duty orders on
uncovered innerspring units from the People's Republic of China,
South Africa, and the Socialist Republic of Vietnam. See Uncovered
Innerspring Units from the People's Republic of China, South Africa,
and Socialist Republic of Vietnam: Continuation of Antidumping Duty
Orders, 84 FR 55285 (October 16, 2019).
Also excluded from the scope of this investigation are bassinet
pads with a nominal length of less than 39 inches, a nominal width
of less than 25 inches, and a nominal depth of less than 2 inches.
Additionally, also excluded from the scope of this investigation
are ``mattress toppers.'' A ``mattress topper'' is a removable
bedding accessory that supplements a mattress by providing an
additional layer that is placed on top of a mattress. Excluded
mattress toppers have a height of four inches or less.
The products subject to this investigation are currently
classifiable under Harmonized Tariff Schedule of the United States
(HTSUS) subheadings: 9404.21.0010, 9404.21.0013, 9404.21.0095,
9404.29.1005, 9404.29.1013, 9404.29.1095, 9404.29.9085,
9404.29.9087, and 9404.29.9095. Products subject to this
investigation may also enter under HTSUS subheadings: 9401.41.0000,
9401.49.0000, and 9401.99.9081. Although the HTSUS subheadings are
provided for convenience and customs purposes, the written
description of the merchandise subject to this investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Application of Facts Available With Adverse Inferences
V. Preliminary Determination of Critical Circumstances
VI. Recommendation
[FR Doc. 2024-04330 Filed 2-29-24; 8:45 am]
BILLING CODE 3510-DS-P
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