Notice2025-03529
Mattresses From Indonesia: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Duty Investigation; Notice of Amended Final Determination; and Notice of Revocation of Antidumping Order
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
March 5, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
On February 18, 2025, the U.S. Court of International Trade (CIT) issued its final judgment in PT. Zinus et al. v. United States, Slip Op. 25-15, Consol. Ct. No. 21-277, (February 18, 2025) (PT. Zinus III), sustaining the U.S. Department of Commerce (Commerce)'s second remand redetermination pertaining to the antidumping (AD) duty investigation of mattresses from Indonesia covering the period of investigation January 1, 2019, through December 31, 2019. Commerce is notifying the public that the CIT's final judgment is not in harmony with Commerce's final determination in that investigation, and that Commerce is amending the final determination from affirmative to negative as a result of the dumping margin assigned to PT. Zinus Global Indonesia (Zinus Indonesia) changing from 2.22 percent to 0.00 percent. Thus, Commerce is revoking the AD order on mattresses from Indonesia.
Full Text
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<title>Federal Register, Volume 90 Issue 42 (Wednesday, March 5, 2025)</title>
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[Federal Register Volume 90, Number 42 (Wednesday, March 5, 2025)]
[Notices]
[Pages 11256-11257]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03529]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-560-836]
Mattresses From Indonesia: Notice of Court Decision Not in
Harmony With the Final Determination of Antidumping Duty Investigation;
Notice of Amended Final Determination; and Notice of Revocation of
Antidumping Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On February 18, 2025, the U.S. Court of International Trade
(CIT) issued its final judgment in PT. Zinus et al. v. United States,
Slip Op. 25-15, Consol. Ct. No. 21-277, (February 18, 2025) (PT. Zinus
III), sustaining the U.S. Department of Commerce (Commerce)'s second
remand redetermination pertaining to the antidumping (AD) duty
investigation of mattresses from Indonesia covering the period of
investigation January 1, 2019, through December 31, 2019. Commerce is
notifying the public that the CIT's final judgment is not in harmony
with Commerce's final determination in that investigation, and that
Commerce is amending the final determination from affirmative to
negative as a result of the dumping margin assigned to PT. Zinus Global
Indonesia (Zinus Indonesia) changing from 2.22 percent to 0.00 percent.
Thus, Commerce is revoking the AD order on mattresses from Indonesia.
DATES: Applicable February 28, 2025.
FOR FURTHER INFORMATION CONTACT: Brian Smith, 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) 482-1766.
SUPPLEMENTARY INFORMATION:
Background
On March 25, 2021, Commerce published its Final Determination in
the AD investigation of mattresses from Indonesia. Commerce calculated
a weighted-average dumping margin of 2.22 percent for Zinus Indonesia,
the sole mandatory respondent in the investigation.\1\ Commerce
subsequently published the AD order on mattresses from Indonesia.\2\
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\1\ See Final Affirmative Determination of Sales at Less Than
Fair Value, 86 FR 15899 (March 25, 2021) (Final Determination), and
accompanying Issues and Decision Memorandum (IDM).
\2\ See Mattresses from Cambodia, Indonesia, Malaysia, Serbia,
Thailand, the Republic of Turkey, and the Socialist Republic of
Vietnam: Antidumping Duty Orders and Amended Final Affirmative
Antidumping Determination for Cambodia, 86 FR 26460 (May 14, 2021)
(Order).
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Zinus Indonesia and the petitioner \3\ both appealed Commerce's
Final Determination. On March 20, 2023, the CIT sustained Commerce's
selection of financial statements for purposes of calculating profit,
the profit cap, the sales deduction adjustment made to Zinus
Indonesia's reported constructed export price (CEP) transactions, and,
Commerce's decision not to request an unnecessary reconciliation, but
remanded Commerce's U.S. sales allocation methodology for CEP inventory
sales, Zinus Indonesia's parent company's (i.e., Zinus Korea's) selling
expenses calculation, and Commerce's use of Indonesian import data from
Global Trade Atlas (GTA) data in applying the transactions disregarded
rule.\4\
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\3\ The petitioner is Brooklyn Bedding, LLC, Corsicana Mattress
Company, Elite Comfort Solutions, FXI, Inc., Innocor, Inc., Kolcraft
Enterprises Inc., Leggett & Platt, Inc., International Brotherhood
of Teamsters, and United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, AFL-CIO.
\4\ See PT. Zinus Global Indonesia et al. v. United States, 628
F. Supp. 3rd 1252 (CIT 2023) (First Remand Order or PT. Zinus I).
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In its first remand redetermination, issued on June 9, 2023,
Commerce further explained: (1) why certain models of subject
mattresses in transit should continue to be included in the U.S. sales
allocation methodology; (2) how information on the record demonstrated
that Zinus Korea's role in the sales process was minimal and the
treatment of its selling expenses had no impact on the margin
calculation results; and (3) why it remained appropriate to use GTA
data for the relevant inputs into Indonesia, rather than an average of
Indonesia's import data with that of other countries.\5\ Although the
CIT sustained Commerce's use of Indonesian import data from GTA in
applying the transactions disregarded rule, the CIT remanded for a
second time Commerce's inclusion of the in-transit mattress quantity in
the U.S. sales allocation methodology and suggested that Commerce
consider reopening the record to address missing sales data, and
inventory and in-transit mattress issues.\6\ Regarding Zinus Korea's
selling expenses, Commerce requested a remand to correct existing
deficiencies and contradictions in the record with respect to Zinus
Korea's reported selling functions.
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\5\ See Final Results of Redetermination Pursuant to Court
Remand, PT. Zinus Global Indonesia et al. v. United States, 628 F.
Supp. 3rd 1252 (CIT 2023), dated June 9, 2023 (First Remand
Redetermination), available at <a href="https://access.trade.gov/public/FinalRemandRedetermination.aspx">https://access.trade.gov/public/FinalRemandRedetermination.aspx</a>.
\6\ See PT. Zinus Global Indonesia et al. v. United States, 686
F. Supp. 3rd 1349 (CIT 2024) (Second Remand Order or PT. Zinus II).
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In its final remand redetermination, issued on May 16, 2024,
Commerce determined that the additional information requested from
Zinus Indonesia: (1) clearly established that the pre-existing mattress
inventory and purchase data were sufficient to cover the reported sales
and that it was no longer justified to include in-transit mattresses in
the U.S. sales allocation methodology; and (2) information clarifying
the selling functions performed by Zinus Korea and the associated
selling expenses did not ultimately affect Zinus' margin. However,
after making the above-mentioned adjustment to the U.S. sales
allocation methodology, the resulting margin calculated for Zinus
Indonesia was 0.00 percent, indicating a negative determination.\7\ The
CIT sustained Commerce's Second Remand Redetermination.\8\
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\7\ See Final Results of Redetermination Pursuant to Court
Remand, PT. Zinus Global Indonesia et al. v. United States, 686 F.
Supp. 3rd 1349 (CIT 2024), dated May 16, 2024 (Second Remand
Redetermination), available at <a href="https://access.trade.gov/public/FinalRemandRedetermination.aspx">https://access.trade.gov/public/FinalRemandRedetermination.aspx</a>.
\8\ See PT. Zinus III, Slip Op. 25-10, whereby the CIT sustained
the Commerce's Second Remand Redetermination.
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Timken Notice
In its decision in Timken,\9\ as clarified by Diamond
Sawblades,\10\ the U.S. Court of Appeals for the Federal Circuit held
that, pursuant to sections 516A(c) and (e) of the Tariff Act of 1930,
as amended (the Act), Commerce must publish a notice of court decision
that is not ``in harmony'' with a Commerce determination and must
suspend liquidation of entries pending a
[[Page 11257]]
``conclusive'' court decision. The CIT's February 18, 2025, judgment
constitutes a final decision of the CIT that is not in harmony with
Commerce's Final Determination. Thus, this notice is published in
fulfillment of the publication requirements of Timken.
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\9\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\10\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Determination
Because there is now a final court judgment, Commerce is amending
its Final Determination with respect to Zinus Indonesia's weighted-
average dumping margin as follows:
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Weighted
average
Producer/exporter dumping
margin
(percent)
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PT. Zinus Global Indonesia................................. 0.00
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Revocation of the Order
Pursuant to the CIT's decision in PT. Zinus III affirming
Commerce's decisions as described above, Commerce is revoking the AD
Order on mattresses from Indonesia pursuant to section 751(d) of the
Act and 19 CFR 351.222(b)(2). As a result of this revocation, Commerce
is discontinuing the current administrative review effective
immediately and will not initiate any new administrative reviews of the
AD Order.
Cash Deposit Requirements
Commerce will instruct U.S. Customs and Border Protection to
discontinue the collection of cash deposits for estimated antidumping
duties, effective February 28, 2025.
Pursuant to Timken, Hosiden,\11\ and Diamond Sawblades, the
suspension of all entries of mattresses from Indonesia within the scope
of the AD Order entered, or withdrawn from warehouse, for consumption
beginning on February 28, 2025, that remained unliquidated and are not
deemed liquidated as of February 28, 2025, will continue until there is
a ``final and conclusive'' court decision.
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\11\ See Hosiden Corp. v. United States, 861 F. Supp. 115 (Fed.
Cir. 1994).
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Similarly, the suspension of liquidation and cash deposits on all
entries of mattresses of Zinus Indonesia, PT Ecos Jaya Indonesia (Ecos)
and PT Grantec Jaya Indonesia (Grantec) subject to injunctions in
litigation of the investigation and the first and second administrative
review results will continue and be retained, respectively, until there
is a ``final and conclusive'' court decision on the investigation and
in accordance with the results of the respective litigations. For the
entries that are currently being administratively suspended for the
third administrative review (i.e., May 1, 2022 through April 30, 2023)
for Zinus Indonesia, Ecos and Grantec, and any entries that entered
between May 1, 2023 (i.e., the date after end of third administrative
review period) and February 28, 2025, the suspension of liquidation and
cash deposits will likewise continue and be retained, respectively,
until there is a ``final and conclusive'' court decision on the
investigation. Once there is a final and conclusive court decision on
the investigation, Commerce will take further action in accordance with
the results of the litigation.
Notification to Interested Parties
This notice is issued and published in accordance with sections
516A(c) and (e) and 777(i)(1) of the Act.
Dated: February 26, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2025-03529 Filed 3-4-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 5, 2025.
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