Notice2024-15986

Mattresses From Mexico: Final Affirmative Determination of Sales at Less-Than-Fair Value

Primary source

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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

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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:

------------------------------------------------------------------------
                                                               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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Indexed from Federal Register on July 22, 2024.

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