Notice2024-15986
Mattresses From Mexico: Final Affirmative Determination of Sales at Less-Than-Fair Value
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 22, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that imports of mattresses from Mexico are being, or are likely to be, sold in the United States at less-than-fair value (LTFV). The period of investigation is July 1, 2022, through June 30, 2023.
Full Text
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<title>Federal Register, Volume 89 Issue 140 (Monday, July 22, 2024)</title>
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[Federal Register Volume 89, Number 140 (Monday, July 22, 2024)]
[Notices]
[Pages 59062-59065]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15986]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-859]
Mattresses From Mexico: Final Affirmative Determination of Sales
at Less-Than-Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of mattresses from Mexico are being, or are likely to be, sold
in the United States at less-than-fair value (LTFV). The period of
investigation is July 1, 2022, through June 30, 2023.
DATES: Applicable July 22, 2024.
FOR FURTHER INFORMATION CONTACT: Dakota Potts or Benjamin Blythe, AD/
CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0223 and (202)
482-3457, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 1, 2024, Commerce published the preliminary determination
in this LTFV investigation of mattresses from Mexico.\1\ Commerce
invited interested parties to comment on the Preliminary
Determination.\2\
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\1\ See Mattresses from Mexico: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, 89 FR 15152 (March
1, 2024) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum.
\2\ See Preliminary Determination, 89 FR at 15153.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\3\ 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>.
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of Sales at Less Than Fair Value in
the Investigation of Mattresses from Mexico,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation are mattresses from
Mexico. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from parties. Commerce issued a Preliminary Scope Decision
Memorandum to address these comments and set aside a period of time for
parties to address scope issues in scope-specific case and rebuttal
briefs.\4\ We received comments from parties on the Preliminary Scope
Decision Memorandum, which we addressed in the Final Scope Decision
Memorandum.\5\ We made changes to the scope of the investigation from
the scope published in the Preliminary Determination, as noted in
Appendix I.
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\4\ 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 February 23, 2024 (Preliminary Scope
Decision Memorandum).
\5\ See Memorandum, ``Mattresses from Bosnia and Herzegovina,
Bulgaria, Burma, India, Indonesia, Italy, Kosovo, Mexico,
Philippines, Poland, Slovenia, Spain, and Taiwan: Final Scope
Decision Memorandum,'' dated May 8, 2024 (Final Scope Decision
Memorandum).
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Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation, in accordance
with section 782(i) of the Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of the home market
sales, U.S. sales, and cost of production responses submitted by
Ureblock S.A. de C.V. and Espumas de Oriente S.A. de C.V.
(collectively, Ureblock/Espumas), using standard verification
procedures, including an examination of relevant sales and accounting
records, and original source documents provided by the respondents.\6\
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\6\ See Memoranda, ``Verification of the Sales Response of
Ureblock S.A. de C.V. and its affiliates in the Less-Than-Fair-Value
Investigation of Mattresses from Mexico,'' and ``Verification of the
Cost Response of Ureblock S.A. de CV in the Antidumping Duty
Investigation of Mattresses from Mexico,'' dated April 16 and 23,
2024, respectively.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by the
interested parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues
[[Page 59063]]
addressed in the Issues and Decision Memorandum is attached to this
notice as Appendix II.
Changes Since the Preliminary Determination
We have made certain changes to the margin calculations for
Ureblock/Espumas since the Preliminary Determination. For a discussion
of these changes, see the Issues and Decision Memorandum.
Use of Adverse Facts Available (AFA)
As discussed in the Preliminary Determination, Commerce assigned a
mandatory respondent in this investigation, GAIM Regiomontana S.A. de
C.V. (GAIM), and a voluntary respondent in this investigation,
Colchones Wendy S.A. de C.V. (Wendy), an estimated weighted-average
dumping margin on the basis of AFA, pursuant to sections 776(a) and (b)
of the Act.\7\ There is no new information on the record that would
cause us to revisit our decision in the Preliminary Determination.
Accordingly, for the reasons explained in the Preliminary
Determination, and consistent with Commerce's practice, as AFA, we
assigned GAIM and Wendy the highest corroborated dumping margin alleged
in the petition.\8\
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\7\ See Preliminary Determination, 89 FR at 15153.
\8\ See, e.g., Welded Stainless Pressure Pipe from Thailand:
Final Determination of Sales at Less Than Fair Value, 79 FR 31093
(May 30, 2014), and accompanying Issues and Decision Memorandum
(IDM) at Comment 3; see also Petitioners' Letter, ``Antidumping and
Countervailing Duty Petitions,'' dated July 28, 2023, at 16-19; and
Checklist, ``Antidumping Duty Investigation Initiation Checklist,''
dated August 17, 2023; and Petitioner's Letter, ``Mattress
Petitioners' Response to the Department of Commerce's Supplemental
Questions,'' dated August 7, 2023, at Exhibit 3.
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All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act.
In this investigation, Commerce assigned a rate based entirely on
facts available to Wendy and GAIM. Therefore, the only rate that is not
zero, de minimis, or based entirely on facts otherwise available is the
rate calculated for Ureblock/Espumas. Consequently, the rate calculated
for Ureblock/Espumas is also assigned as the rate for all other
producers and exporters.
Final Determination
The final estimated dumping margins are as follows:
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Ureblock S.A. de C.V./Espumas de Oriente S.A. de C.V........ 37.59
GAIM Regiomontana S.A. de C.V............................... * 61.97
Colchones Wendy S.A. de C.V................................. * 61.97
All Others.................................................. 37.59
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination within five
days of any public announcement, or if there is no public announcement,
within five days of the date of the publication of this notice in the
Federal Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of subject merchandise as described in Appendix I
of this notice, which were entered, or withdrawn from warehouse, for
consumption, on or after March 1, 2024, the date of publication of the
Preliminary Determination in the Federal Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon the publication of this notice, we will instruct CBP
to require a cash deposit for estimated antidumping duties for such
entries as follows: (1) the cash deposit rates for the respondents
listed in the table above are the company-specific estimated weighted-
average dumping margins listed for the respondents in the table; (2) if
the exporters are not the respondents listed in the table above, but
the producers are, then the cash deposit rate will be the company-
specific estimated weighted-average dumping margins listed for the
producer of the subject merchandise in the table above; and (3) the
cash deposit rate for all other producers and exporters is the all-
others estimated weighted-average dumping margin listed in the table
above.
These suspension of liquidation instructions will remain in effect
until further notice.
International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, Commerce will notify
the ITC of its final affirmative determination of sales at LTFV.
Because Commerce's final determination is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports or sales (or the likelihood of sales) for importation of
mattresses no later than 45 days after this final determination. If the
ITC determines that such injury does not exist, this proceeding will be
terminated, all cash deposits posted will be refunded, and suspension
of liquidation will be lifted. If the ITC determines that such injury
does exist, Commerce will issue an antidumping duty order directing CBP
to assess, upon further instruction by Commerce, antidumping duties on
all imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed in the ``Continuation of
Suspension of Liquidation'' section above.
Administrative Protective Order (APO)
This notice serves as the only reminder to parties subject to an
APO of their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely 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 the terms of an
APO is a violation subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: July 15, 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
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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
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.
Also excluded from the scope are the following hospital and
patient care setting surfaces. Products that fall within the below
categories and meet all of the exclusion factors in the respective
category qualify for such exclusion, regardless of whether they may
be referenced as a mattress.
Air Surfaces with all of the following characteristics: with the
foot end comprised of either die-cut construction foam or air
bladders to allow extension and retraction of the surface; enclosed
in a fluid-resistant polyurethane-coated ticking with a zipper; with
welded seams on the ticking, which are two or more layers of coated
material thermally fused together with a permanent bond; with the
core including air bladders, with or without foam inside; with a
unique device identifier label for medical devices issued by an FDA-
accredited agency and listed in the FDA-administered Global Unique
Device Identification Database.
Stretcher Surfaces with all of the following characteristics:
with a nominal thickness of 5 inches or less; with the foam core
width tapered at one end; enclosed in a fluid-resistant
polyurethane-coated ticking with a zipper; with welded seams on the
ticking, which are two or more layers of coated material thermally
fused together with a permanent bond; with the exterior of the
ticking containing a welded flap to cover the ticking zipper; with
loop velcro attached to the ticking to allow for the stretcher
surface to be firmly affixed to the stretcher; with a unique device
identifier label for medical devices issued by an FDA-accredited
agency and listed in the FDA-administered Global Unique Device
Identification Database.
Birthing Bed Surfaces with all of the following characteristics:
with a nominal thickness of 5 inches or less; with a foam core in
two pieces that have either a V-shaped cutout or U-Shaped cutout;
enclosed in a fluid-resistant polyurethane-coated ticking with a
zipper; with welded seams on the ticking, which are two or more
layers of coated material thermally fused together with a permanent
bond; with attachment fasteners extending from the bottom of the
surface comprised of snaps or plastic hook(s); with a unique device
identifier label for medical devices issued by an FDA-accredited
agency and listed in the FDA-administered Global Unique Device
Identification Database.
Foam Surfaces with all the following characteristics: with a
nominal thickness of 6.5 inches or less; with a foam core that has
articulation lines cut into the foam and/or die-cut construction in
a portion of the foam to allow movement of the surface; enclosed in
a fluid-resistant polyurethane-coated ticking with a zipper; with
the ticking made of material meeting ASTM F1671B-07 requirements for
porosity and ISO 10993 requirements for biocompatibility; with
welded seams on the ticking, which are two or more layers of coated
material thermally fused together with a permanent bond; with
brackets or attachment knobs embedded in the surface core to allow
the surface to be firmly affixed to the hospital bed frame; with a
unique device identifier label for medical devices issued by an FDA-
accredited agency and listed in the FDA-administered Global Unique
Device Identification Database, where the label includes the
manufacturer's name and address as well as the product's name, date
of manufacture, serial number, and Global Trade Identification
Number (GTIN).
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 Issues and Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Changes Since the Preliminary Determination
VI. Affiliation/Single Entity
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Make a Level of Trade (LOT)
Adjustment for Certain Retail Sales in the Home Market
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Comment 2: Whether Certain Ureblock/Espumas Record Data Issues
Warrant the Use of Adverse Facts Available (AFA)
Comment 3: Whether Commerce Should Correct Two Ministerial
Errors in its Analysis of Ureblock's Databases
Comment 4: Whether Commerce Should Apply GAIM's AFA Rate to Kuka
Comment 5: Whether Commerce Should Select Kuka as the Second
Mandatory Respondent in the Investigation
VIII. Recommendation
[FR Doc. 2024-15986 Filed 7-19-24; 8:45 am]
BILLING CODE 3510-DS-P
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