Uncovered Innerspring Units From the People's Republic of China: Final Affirmative Determination of Circumvention of the Antidumping Duty Order
| Published date | 21 December 2018 |
| Record Number | 2018-27677 |
| Court | International Trade Administration |
Federal Register, Volume 83 Issue 245 (Friday, December 21, 2018)
[Federal Register Volume 83, Number 245 (Friday, December 21, 2018)]
[Notices]
[Pages 65626-65627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27677]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-928]
Uncovered Innerspring Units From the People's Republic of China:
Final Affirmative Determination of Circumvention of the Antidumping
Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain
imports of uncovered innerspring units (innersprings) exported from
Macau, using materials and/or components sourced from the People's
Republic of China (China), are circumventing the antidumping duty (AD)
order on innersprings from China.
DATES: Applicable December 21, 2018.
FOR FURTHER INFORMATION CONTACT: Matthew Renkey, 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) 482-2312.
SUPPLEMENTARY INFORMATION:
Background
On August 21, 2018, Commerce published the Preliminary
Determination \1\ of circumvention of the Order.\2\ 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 http://access.trade.gov, and it is available to all parties in the Central
Records Unit, Room B8024 of the main
[[Page 65627]]
Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Issues and Decision Memorandum are identical in content.
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\1\ See Uncovered Innerspring Units from the People's Republic
of China: Preliminary Affirmative Determination of Circumvention of
the Antidumping Duty Order, 83 FR 42254 (August 21, 2018)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum and Preliminary Analysis Memorandum.
\2\ See Uncovered Innerspring Units from the People's Republic
of China: Notice of Antidumping Duty Order, 74 FR 7661 (February 19,
2009) (Order).
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Anti-Circumvention Inquiry of the Antidumping Duty Order on
Uncovered Innerspring Units from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
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Scope of the Order
The products covered by the Order are uncovered innerspring units.
For a complete description of the scope of the Order, see the Issues
and Decision Memorandum.
Scope of the Anti-Circumvention Inquiry
The products covered by this inquiry are innersprings that are
manufactured in Macau by the Macao Commercial Group \4\ with Chinese-
origin components and materials and are then subsequently exported from
Macau to the United States.
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\4\ The Macao Commercial Group is comprised of the following
companies: Macao Commercial, Tai Wa Commercial (a Macao trading
company), Tai Wa Machinery (a Macao trading company), Wa Cheong Hong
(a Macao trading company), and Heshan Tai Hua Jian Ye Machinery Co.,
Ltd. (Heshan Tai Hua) (a Chinese manufacturer). In the Preliminary
Determination, we determined that these companies are affiliated and
should be treated as a single entity. See PDM at 6-9. No party
commented on this determination. We continue to treat the Macao
Commercial Group as a single entity in this final determination.
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Methodology
Commerce is conducting this anti-circumvention inquiry in
accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act). For a full description of the methodology underlying the
Commerce's final determination, see the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this inquiry are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached to this notice as an Appendix.
Based on our analysis of the comments received, we made no changes to
the Preliminary Determination.
Final Affirmative Determination of Circumvention
As detailed in the Issues and Decision Memorandum, we determine
that innersprings exported from Macau to the United States, which were
assembled or completed in Macau by Macao Commercial and Industrial
Spring Mattress Manufacturer (Macao Commercial) and the other companies
that are part of the Macao Commercial Group, used materials and/or
components from China and are circumventing the Order. Therefore, we
determine that it is appropriate to include this merchandise within the
Order and to instruct U.S. Customs and Border Protection (CBP) to
continue to suspend any entries of innersprings from Macau, which were
manufactured in Macao by the Macao Commercial Group.
Continuation of Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(3), Commerce will direct CBP
to continue to suspend liquidation and to require a cash deposit of
estimated duties on unliquidated entries innersprings assembled or
completed by the Macao Commercial Group in Macau from Chinese-origin
components and/or materials that were entered, or withdrawn from
warehouse, for consumption on or after November 22, 2016, the date of
initiation of the anti-circumvention inquiry.
The suspension of liquidation instructions will remain in effect
until further notice. Commerce will instruct CBP to require AD cash
deposits equal to the China-wide rate of 234.51 percent, unless the
importer/exporter can demonstrate to CBP that the Chinese-origin
innersprings assembled or completed in Macau by the Macao Commercial
Group were supplied by a Chinese manufacturer with a separate rate. In
that instance, the cash deposit rate will be the rate of the Chinese
innersprings manufacturer that has its own rate.\5\
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\5\ See Glycine from the People's Republic of China: Preliminary
Partial Affirmative Determination of Circumvention of the
Antidumping Duty Order and Initiation of Scope Inquiry, 77 FR 21532,
21535 (April 10, 2012), unchanged in Glycine from the People's
Republic of China: Final Partial Affirmative Determination of
Circumvention of the Antidumping Duty Order, 77 FR 73426 (December
10, 2012).
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Notification Regarding Administrative Protective Orders
This notice will serve as the only reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction or 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 sanctionable violation.
Notification to Interested Parties
These determinations are issued and published in accordance with
section 781(b) of the Act and 19 CFR 351.225(f).
Dated: December 14, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-circumvention Inquiry
V. Changes Since the Preliminary Determination
VI. Statutory Framework
VII. Statutory Analysis
VIII. Discussion of the Issues
Comment 1: Whether the Application of Partial Adverse Facts
Available Is Appropriate
Comment 2: Whether the Nature of the Production Process and the
Extent of the Production Facilities in Macau Are Substantial
Comment 3: Whether Macao Commercial's Level of Research and
Development in Macau Is Substantial
Comment 4: Whether Increased U.S. Imports of Innersprings from
Macao and Increased Macanese Imports of Steel Wire from China Are
Indicative of Circumvention
Comment 5: Macao Commercial's Use of Non-Chinese Origin Steel
Wire
IX. Recommendation
[FR Doc. 2018-27677 Filed 12-20-18; 8:45 am]
BILLING CODE 3510-DS-P
