Notice2025-12373
Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Notice of Court Decision Not in Harmony With the Final Determination of Countervailing Duty Investigation; Notice of Amended Final Determination; Notice of Amended Countervailing Duty Order, In Part
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Published
July 2, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
On June 12, 2025, the U.S. Court of International Trade (CIT) issued its final judgment in Dalian Meisen Woodworking Co., Ltd. v. United States, Court no. 20-00110, sustaining the U.S. Department of Commerce (Commerce)'s third remand redetermination pertaining to the countervailing duty (CVD) investigation of wooden cabinets and vanities and components thereof (cabinets) from the People's Republic of China (China) covering the period of investigation (POI) January 1, 2018 through December 31, 2018. 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 and the resulting CVD order with respect to the countervailable subsidy rate assigned to The Ancientree Cabinet Co., Ltd. (Ancientree) and the all-others rate.
Full Text
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<title>Federal Register, Volume 90 Issue 125 (Wednesday, July 2, 2025)</title>
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[Federal Register Volume 90, Number 125 (Wednesday, July 2, 2025)]
[Notices]
[Pages 28995-28996]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12373]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-107]
Wooden Cabinets and Vanities and Components Thereof From the
People's Republic of China: Notice of Court Decision Not in Harmony
With the Final Determination of Countervailing Duty Investigation;
Notice of Amended Final Determination; Notice of Amended Countervailing
Duty Order, In Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On June 12, 2025, the U.S. Court of International Trade (CIT)
issued its final judgment in Dalian Meisen Woodworking Co., Ltd. v.
United States, Court no. 20-00110, sustaining the U.S. Department of
Commerce (Commerce)'s third remand redetermination pertaining to the
countervailing duty (CVD) investigation of wooden cabinets and vanities
and components thereof (cabinets) from the People's Republic of China
(China) covering the period of investigation (POI) January 1, 2018
through December 31, 2018. 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 and the resulting CVD order with respect to the
countervailable subsidy rate assigned to The Ancientree Cabinet Co.,
Ltd. (Ancientree) and the all-others rate.
DATES: Applicable June 22, 2025.
FOR FURTHER INFORMATION CONTACT: Kelsie Hohenberger, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2517.
SUPPLEMENTARY INFORMATION:
Background
On February 28, 2020, Commerce published its Final Determination in
the CVD investigation of cabinets from China.\1\ Commerce found that
countervailable subsidies were being provided to producers and/or
exporters of cabinets from China.\2\ Commerce subsequently published
the CVD order on cabinets from China.\3\
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\1\ See Wooden Cabinets and Vanities and Components Thereof from
the People's Republic of China: Final Affirmative Countervailing
Duty Determination, 85 FR 11962 (February 28, 2020) (Final
Determination).
\2\ Id.
\3\ See Wooden Cabinets and Vanities and Components Thereof from
the People's Republic of China: Countervailing Duty Order, 85 FR
22134 (April 21, 2020) (Order).
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Ancientree, Dalian Meisen Woodworking Co., Ltd. (Meisen), and a
U.S. importer (Cabinets to Go, LLC), appealed Commerce's Final
Determination. On May 12, 2022, the CIT remanded the Final
Determination to Commerce with respect to Commerce's application of
facts otherwise available with an adverse inference (AFA) to the two
mandatory respondents, Ancientree and Meisen, for the Export Buyer's
Credit Program (EBCP) and directed Commerce to find a practical
solution to verify the companies' claimed non-use of the program.\4\
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\4\ See Dalian Meisen Woodworking Co., Ltd. v. United States,
Court No. 20-00110, Slip Op. 22-45 (CIT May 12, 2022).
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In its first remand redetermination, issued in August 2022,
Commerce reopened the record to obtain information from Ancientree and
Meisen and their U.S. customers concerning outstanding lending during
the POI.\5\ Meisen did not provide the information; Ancientree provided
the information for some, but not all, of its customers. Accordingly,
Commerce continued to apply AFA to both companies for the EBCP. The CIT
remanded for a second time, sustaining Commerce's application of AFA to
Meisen, but again remanding the decision as it related to
Ancientree.\6\ Regarding Ancientree, the CIT found that Commerce must
attempt to verify Ancientree's submissions and either pro rate
Ancientree's subsidy rate or conclude that the company did not use the
EBCP at all, and then must also recalculate Ancientree's rate and the
all-others rate accordingly.
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\5\ See Final Results of Redetermination Pursuant to Court
Remand, Dalian Meisen Woodworking Co., Ltd. v. United States, Court
No. 20-00110, Slip Op. 22-45 (CIT May 12, 2022), dated August 5,
2022, available at <a href="https://access.trade.gov/resources/remands/22-45.pdf">https://access.trade.gov/resources/remands/22-45.pdf</a>.
\6\ See Dalian Meisen Woodworking Co., Ltd. v. United States,
Court No. 20-00110, Slip Op. 23-57 (CIT Apr. 20, 2023)
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In its second remand redetermination, issued in December 2023,
Commerce determined that, because a significant percentage of
Ancientree's customers declined (or otherwise were unable) to provide
verifiable information concerning POI lending, we were unable to
successfully verify the information regarding non-use; accordingly, we
continued to apply AFA for the EBCP.\7\ The CIT remanded for a third
time, stating that, because Commerce was able to successfully verify a
portion of the information, Commerce was required to (1) recalculate
Ancientree's total subsidy rate to reflect a revised/pro-rated EBCP
determination; (2) determine a customer-specific subsidy rate that
excludes a program rate for the EBCP for each Ancientree customer whose
non-use of the EBCP was successfully verified; and (3) recalculate the
all-other's rate accordingly.\8\
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\7\ See Final Results of Redetermination Pursuant to Court
Remand, Dalian Meisen Woodworking Co., Ltd. v. United States, Court
No. 20-00110, Slip Op. 23-57 (CIT April 20, 2023), dated December 6,
2023, available at <a href="https://access.trade.gov/Resources/remands/23-57.pdf">https://access.trade.gov/Resources/remands/23-57.pdf</a>.
\8\ See Dalian Meisen Woodworking Co., Ltd. v. United States,
Court No. 20-00110, Slip Op. 24-83 (CIT July 22, 2024).
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In its final remand redetermination, issued in November 2024, in
compliance with the CIT's order, Commerce (1) recalculated Ancientree's
subsidy rate to reflect a pro-rated benefit for Ancientree, (2)
calculated customer-specific assessment rates, and (3) revised the all-
others rate to reflect the change to Ancientree's cash deposit rate.\9\
The CIT sustained Commerce's final redetermination.\10\
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\9\ See Final Results of Redetermination Pursuant to Court
Remand, Dalian Meisen Woodworking Co., Ltd. v. United States, Court
No. 20-00110, Slip Op. 24-83 (CIT July 22, 2024), dated November 12,
2024.
\10\ See Dalian Meisen Woodworking Co., Ltd. v. United States,
Court No. 20-00110, Slip Op. 25-74 (CIT June 12, 2025).
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Timken Notice
In its decision in Timken,\11\ as clarified by Diamond
Sawblades,\12\ 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
[[Page 28996]]
publish a notice of court decision that is not ``in harmony'' with a
Commerce determination and must suspend liquidation of entries pending
a ``conclusive'' court decision. The CIT's June 12, 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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\11\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\12\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Determination and CVD Order
Because there is now a final court judgment, Commerce is amending
its Final Determination and Order with respect to Ancientree and all
other companies as follows:
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Subsidy rate
Company (percent)
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The Ancientree Cabinet Co., Ltd \13\.................... 5.06
All Others.............................................. 18.17
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Cash Deposit Requirements
Because Ancientree has a superseding cash deposit rate, i.e., there
have been final results published in a subsequent administrative
review, this notice will not affect the current cash deposit rate for
Ancientree. For the all-others rate, Commerce will issue revised cash
deposit instructions to U.S. Customs and Border Protection.
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\13\ In the investigation, Commerce found the following
companies to be cross-owned with Ancientree: Jiangsu Hongjia Wood
Co., Ltd., Shanghai Branch, and Shanghai Hongjia Wood Co., Ltd.
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Liquidation of Suspended Entries
At this time, Commerce remains enjoined by CIT order from
liquidating entries of subject merchandise that were exported by
Ancientree, and that were entered, or withdrawn from warehouse, for
consumption, during the period August 12, 2019, through December 31,
2022, excluding the period from December 10, 2019, to April 16, 2020.
Next, Commerce remains enjoined from liquidating entries produced
and/or exported by Meisen which were entered, or withdrawn from
warehouse, for consumption, during the period August 12, 2019, through
December 31, 2020, excluding the period from December 10, 2019, to
April 16, 2020.
Commerce also remains enjoined from liquidating entries produced
and/or exported by Qingdao Haiyan Drouot Household Co., Ltd., Xuzhou
Yihe Wood Co., Ltd., Kunshan Baiyulan Furniture Co., Ltd., or Jiangsu
Beichen Wood Co., Ltd., and imported by Cabinets to Go, LLC which were
entered, or withdrawn from warehouse, for consumption, during the
period August 12, 2019, through December 31, 2020, excluding the period
from December 10, 2019, to April 16, 2020.\14\
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\14\ Although Cabinets to Go, LLC's injunction also covered
entries from Senke Manufacturing Company (Senke), Senke was a
participant in the 2019-2020 administrative review and received a
subsidy rate. See Wooden Cabinets and Vanities and Components
Thereof from the People's Republic of China: Final Results and
Partial Rescission of Countervailing Duty Administrative Review;
2019-2020, 87 FR 51967 (August 24, 2022). Accordingly, the future
disposition of entries of merchandise produced and/or exported by
Senke, and entered during the 2019-2020 review period, is not
covered by Commerce's remand redetermination, and the applicable
rate for entries from this company that were imported by Cabinets to
Go, LLC is based on the outcome of the 2019-2020 review.
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These entries will remain enjoined pursuant to the terms of the
injunctions during the pendency of any appeals process.
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: June 27, 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. 2025-12373 Filed 7-1-25; 8:45 am]
BILLING CODE 3510-DS-P
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