Wood Mouldings and Millwork Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
| Citation | 85 FR 35900 |
| Published date | 12 June 2020 |
| Record Number | 2020-12752 |
| Section | Notices |
| Court | International Trade Administration |
Federal Register, Volume 85 Issue 114 (Friday, June 12, 2020)
[Federal Register Volume 85, Number 114 (Friday, June 12, 2020)]
[Notices]
[Pages 35900-35902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12752]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-118]
Wood Mouldings and Millwork Products From the People's Republic
of China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of wood mouldings and millwork products (millwork products)
from the People's Republic of China (China). The period of
investigation is January 1, 2019 through December 31, 2019. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable June 12, 2020.
FOR FURTHER INFORMATION CONTACT: Irene Gorelik or Faris Montgomery, 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) 482-6905 or (202)
482-1537, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February 5,
2020.\1\ On March 12, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
June 8, 2020.\2\ For a complete description of the events that followed
the initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
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. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content.
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\1\ See Wood Mouldings and Millwork Products from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
85 FR 6513 (February 5, 2020) (Initiation Notice).
\2\ See Wood Mouldings and Millwork Products from the People's
Republic of China: Postponement of Preliminary Determination of
Antidumping Duty Investigation, 85 FR 15433 (March 12, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Wood
Mouldings and Millwork Products from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are millwork products
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
(AD) and countervailing (CVD) investigations of millwork products from
Brazil and China with the preliminary determinations of the AD
investigations.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\6\
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of millwork
products from China based on a request made by the petitioner.\8\
Consequently, the final CVD determination will be issued on the same
date as the final AD determination, which is currently scheduled to be
issued no later than October 19, 2020, unless postponed.
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\8\ See Petitioner's Letter, ``Request to Align Countervailing
Duty Investigation Final Determination with Antidumping Duty
Investigation Final Determination,'' dated May 4, 2020.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act. In this investigation, as discussed in the Preliminary
Decision Memorandum, Commerce preliminarily assigned a rate based
entirely on facts available to Fujian Nanping Yuanqiao Wood-Industry
Co., Ltd. Therefore, the only preliminary rate that is not zero, de
minimis or based entirely on facts otherwise available is the rate
calculated for Fujian Yinfeng Imp & Exp Trading Co., Ltd. (Yinfeng).
Consequently, the preliminary rate calculated for Yinfeng is also
assigned as the preliminary rate for all other producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\9\ As discussed in the Preliminary Decision Memorandum,
Commerce determines that Yinfeng Fujian Province Youxi City Mangrove
Wood Machining Co., Ltd. and Fujian Province Youxi City Mangrove
Wood Machining Co., Ltd., Xicheng Branch are cross-owned affiliates
of mandatory respondent Yinfeng.
[[Page 35901]]
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Subsidy
Company rate
(percent)
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Fujian Yinfeng Imp & Exp Trading Co., Ltd \9\................ 13.61
Fujian Nanping Yuanqiao Wood-Industry Co., Ltd............... 245.34
All Others................................................... 13.61
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
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\10\ See, generally, 19 CFR 351.309 and 19 CFR 351.303 (for
general filing requirements). See also Temporary Rule Modifying AD/
CVD Service Requirements Due to COVID-19, 85 FR 17006 (March 26,
2020) and Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will make its final
determination before the later of 120 days after the date of this
preliminary determination or 45 days after Commerce's final
determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: June 8, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation consists of wood
mouldings and millwork products that are made of wood (regardless of
wood species), bamboo, laminated veneer lumber (LVL), or of wood and
composite materials (where the composite materials make up less than
50 percent of the total merchandise), and which are continuously
shaped wood that undergoes additional manufacturing or finger-
jointed or edge-glued moulding or millwork blanks (whether or not
resawn).
The percentage of composite materials contained in a wood
moulding or millwork product is measured by length, except when the
composite material is a coating or cladding. Wood mouldings and
millwork products that are coated or clad, even along their entire
length, with a composite material, but that are otherwise comprised
of wood, LVL, or wood and composite materials (where the non-coating
composite materials make up 50 percent or less of the total
merchandise) are covered by the scope.
The merchandise subject to this investigation consists of wood,
LVL, bamboo, or a combination of wood and composite materials that
is continuously shaped throughout its length (with the exception of
any endwork/dados), profiled wood having a repetitive design in
relief, similar milled wood architectural accessories, such as
rosettes and plinth blocks, and finger-jointed or edge-glued
moulding or millwork blanks (whether or not resawn). The scope
includes continuously shaped wood in the forms of dowels, building
components such as interior paneling and jamb parts, and door
components such as rails and stiles.
The covered products may be solid wood, laminated, finger-
jointed, edge-glued, face-glued, or otherwise joined in the
production or remanufacturing process and are covered by the scope
whether imported raw, coated (e.g., gesso, polymer, or plastic),
primed, painted, stained, wrapped (paper or vinyl overlay), any
combination of the aforementioned surface coatings, treated, or
which incorporate rot-resistant elements (whether wood or
composite). The covered products are covered by the scope whether or
not any surface coating(s) or covers obscures the grain, textures,
or markings of the wood, whether or not they are ready for use or
require final machining (e.g., endwork/dado, hinge/strike machining,
weatherstrip or application thereof, mitre) or packaging.
All wood mouldings and millwork products are included within the
scope even if they are trimmed; cut-to-size; notched; punched;
drilled; or have undergone other forms of minor processing.
Subject merchandise also includes wood mouldings and millwork
products that have been further processed in a third country,
including but not limited to trimming, cutting, notching, punching,
drilling, coating, or any other processing that would not otherwise
remove the merchandise from the scope of the investigation if
performed in the country of manufacture of the in-scope product.
Excluded from the scope of this investigation are exterior
fencing, exterior decking and exterior siding products (including
solid wood siding, non-wood siding (e.g., composite or cement), and
shingles) that are not LVL or finger jointed; finished and
unfinished doors; flooring; parts of stair steps (including newel
posts, balusters, easing, gooseneck, risers, treads and rail
fittings); and picture frame components three feet and under in
individual lengths.
Excluded from the scope of this investigation are all products
covered by the scope of the antidumping and countervailing duty
orders on Hardwood Plywood from the People's Republic of China. See
Certain Hardwood Plywood Products from the People's Republic of
China: Amended Final Determination of Sales at Less Than Fair Value,
and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain
Hardwood Plywood Products from the People's Republic of China:
Countervailing Duty Order, 83 FR 513 (January 4, 2018).
[[Page 35902]]
Excluded from the scope of this investigation are all products
covered by the scope of the antidumping and countervailing duty
orders on Multilayered Wood Flooring from the People's Republic of
China. See Multilayered Wood Flooring from the People's Republic of
China: Amended Final Determination of Sales at Less Than Fair Value
and Antidumping Duty Order, 76 FR 76690 (December 8, 2011);
Multilayered Wood Flooring from the People's Republic of China:
Countervailing Duty Order, 76 FR 76693 (December 8, 2011).
Imports of wood mouldings and millwork products are primarily
entered under the following Harmonized Tariff Schedule of the United
States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500,
4409.10.5000, 4409.22.4000, 4409.22.5000, 4409.29.4100, and
4409.29.5100. Imports of wood mouldings and millwork products may
also enter under HTSUS numbers: 4409.10.6000, 4409.10.6500,
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095
and 4421.99.9780. While the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Alignment
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2020-12752 Filed 6-11-20; 8:45 am]
BILLING CODE 3510-DS-P
