[Federal Register: August 20, 2008 (Volume 73, Number 162)]
[Notices]
[Page 49162-49168]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20au08-31]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-890]
Wooden Bedroom Furniture from the People's Republic of China:
Final Results of Antidumping Duty Administrative Review and New Shipper
Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On February 13, 2008, the Department of Commerce
(``Department'') published its preliminary results and partial
rescission in the antidumping duty administrative review and new
shipper review of wooden bedroom furniture from the People's Republic
of China (``PRC''). The period of review (``POR'') for the
administrative review and the new shipper review is January 1, 2006,
through December 31, 2006. In the administrative review, we have
determined that all three mandatory respondents (i.e., Fujian Lianfu
Forestry Co./Fujian Wonder Pacific Inc./Fuzhou Huan Mei Furniture Co.,
Ltd./Jiangsu Dare Furniture Co., Ltd. (collectively, ``the Dare
Group''); Shanghai Starcorp Furniture Co., Ltd, Starcorp Furniture
(Shanghai) Co., Ltd., Orin Furniture (Shanghai) Co., Ltd., Shanghai
Star Furniture Co., Ltd., and Shanghai Xing Ding Furniture Industrial
Co., Ltd. (collectively, ``Starcorp''); and Teamway Furniture (Dong
Guan) Co., Ltd., and Brittomart Inc. (collectively ``Teamway'')) made
sales in the United States at prices below normal value. With respect
to the remaining respondents in the administrative review
(collectively, ``Separate Rate Applicants''), we determined that 27
entities have provided sufficient evidence that they are separate from
the state-controlled entity, and we have established a weighted-average
margin based on the rates for the three mandatory respondents,
excluding any that are zero, de minimis, or based entirely on adverse
facts available (``AFA''), to be applied to these separate-rate
entities. For the new shipper review, the Department also reviewed one
exporter/producer, Mei Jia Ju Furniture Industrial (Shenzhen) Co. Ltd.
(``Mei Jia Ju''). We invited interested parties to comment on our
preliminary results in these reviews. We received no comments in the
new shipper review. Based on our analysis of the comments we received
in the administrative review, we made certain changes to our
calculations for all mandatory respondents. The final dumping margins
for this review are listed in the ``Final Results Margins'' section
below.
EFFECTIVE DATE: August 20, 2008.
FOR FURTHER INFORMATION CONTACT: Paul Stolz or Robert Bolling, AD/CVD
Operations, Office 8, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4474 and (202) 482-3434, respectively.
Background
The Department published its preliminary results on February 13,
2008. See Wooden Bedroom Furniture From the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review,
Preliminary Results of New Shipper Review and Partial Rescission of
Administrative Review, 73 FR 8273 (February 13, 2008) (``Preliminary
Results''). The Department conducted verification of two of the
mandatory respondents' data in the PRC. See ``Verification'' section,
below, for additional information.
On June 23, 2008, the Department extended the deadline for the
final results of review to August 11, 2008. See Wooden Bedroom
Furniture from the People's Republic of China: Extension of Time Limits
for the Final Results of the Antidumping Duty Administrative Review and
New Shipper Reviews, 73 FR 35369 (June 23, 2008). We invited parties to
comment on the Preliminary Results. We received comments from
petitioners American Furniture Manufacturers Committee for Legal Trade
and Vaughan-Bassett Furniture Company, certain mandatory respondents,
certain Separate-Rate Applicants, and other interested parties to this
review. Interested parties submitted case and rebuttal briefs on July
18 and July 23, 2008, respectively.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this review are addressed in the memorandum from Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration, to David M.
Spooner, Assistant Secretary for Import Administration, ``Issues and
Decision Memorandum for the Final Results of the Antidumping Duty
Administrative Review and New Shipper Review of Wooden Bedroom
Furniture from the People's Republic of China,'' dated August 11, 2008,
which is hereby adopted by this notice (``Issues and Decision
Memorandum''). A list of the issues which parties raised and to which
we respond in the Issues and Decision Memorandum is attached to this
notice as an Appendix. The Issues and Decision Memorandum is a public
document and is on file in the Central Records Unit (``CRU''), Main
Commerce Building, Room 1117, and is accessible on the Web at http://
ia.ita.doc.gov/frn. The paper copy and electronic version of the
memorandum are identical in content.
Period of Review
The POR is January 1, 2006, through December 31, 2006.
Scope of the Order
The product covered by the order is wooden bedroom furniture.
Wooden bedroom furniture is generally, but not exclusively, designed,
manufactured, and offered for sale in coordinated groups, or bedrooms,
in which all of the individual pieces are of approximately the same
style and approximately the same material and/or finish. The subject
merchandise is made substantially of wood products, including both
solid wood and also engineered wood products made from wood particles,
fibers, or other wooden materials such as plywood, oriented strand
board, particle board, and fiberboard, with or without wood veneers,
wood overlays, or laminates, with or without non-wood components or
trim such as metal, marble, leather, glass, plastic, or other resins,
and whether or not assembled, completed, or finished.
The subject merchandise includes the following items: (1) Wooden
beds such as loft beds, bunk beds, and other beds; (2) wooden
headboards for beds (whether stand-alone or attached to side rails),
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds; (3) night tables, night stands, dressers, commodes,
bureaus, mule chests, gentlemen's chests, bachelor's chests, lingerie
chests, wardrobes, vanities, chessers, chifforobes, and wardrobe-type
cabinets; (4) dressers with framed glass mirrors that are attached to,
incorporated in, sit on, or hang over the dresser; (5) chests-
[[Page 49163]]
on-chests,\1\ highboys,\2\ lowboys,\3\ chests of drawers,\4\ chests,\5\
door chests,\6\ chiffoniers,\7\ hutches,\8\ and armoires; \9\ (6)
desks, computer stands, filing cabinets, book cases, or writing tables
that are attached to or incorporated in the subject merchandise; and
(7) other bedroom furniture consistent with the above list.
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\1\ A chest-on-chest is typically a tall chest-of-drawers in two
or more sections (or appearing to be in two or more sections), with
one or two sections mounted (or appearing to be mounted) on a
slightly larger chest; also known as a tallboy.
\2\ A highboy is typically a tall chest of drawers usually
composed of a base and a top section with drawers, and supported on
four legs or a small chest (often 15 inches or more in height).
\3\ A lowboy is typically a short chest of drawers, not more
than four feet high, normally set on short legs.
\4\ A chest of drawers is typically a case containing drawers
for storing clothing.
\5\ A chest is typically a case piece taller than it is wide
featuring a series of drawers and with or without one or more doors
for storing clothing. The piece can either include drawers or be
designed as a large box incorporating a lid.
\6\ A door chest is typically a chest with hinged doors to store
clothing, whether or not containing drawers. The piece may also
include shelves for televisions and other entertainment electronics.
\7\ A chiffonier is typically a tall and narrow chest of drawers
normally used for storing undergarments and lingerie, often with
mirror(s) attached.
\8\ A hutch is typically an open case of furniture with shelves
that typically sits on another piece of furniture and provides
storage for clothes.
\9\ An armoire is typically a tall cabinet or wardrobe
(typically 50 inches or taller), with doors, and with one or more
drawers (either exterior below or above the doors or interior behind
the doors), shelves, and/or garment rods or other apparatus for
storing clothes. Bedroom armoires may also be used to hold
television receivers and/or other audio-visual entertainment
systems.
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The scope of the order excludes the following items: (1) Seats,
chairs, benches, couches, sofas, sofa beds, stools, and other seating
furniture; (2) mattresses, mattress supports (including box springs),
infant cribs, water beds, and futon frames; (3) office furniture, such
as desks, stand-up desks, computer cabinets, filing cabinets,
credenzas, and bookcases; (4) dining room or kitchen furniture such as
dining tables, chairs, servers, sideboards, buffets, corner cabinets,
china cabinets, and china hutches; (5) other non-bedroom furniture,
such as television cabinets, cocktail tables, end tables, occasional
tables, wall systems, book cases, and entertainment systems; (6)
bedroom furniture made primarily of wicker, cane, osier, bamboo or
rattan; (7) side rails for beds made of metal if sold separately from
the headboard and footboard; (8) bedroom furniture in which bentwood
parts predominate; \10\ (9) jewelry armories; \11\ (10) cheval mirrors;
\12\ (11) certain metal parts; \13\ (12) mirrors that do not attach to,
incorporate in, sit on, or hang over a dresser if they are not designed
and marketed to be sold in conjunction with a dresser as part of a
dresser-mirror set; and (13) upholstered beds.\14\ Imports of subject
merchandise are classified under subheading 9403.50.9040 of the HTSUS
as ``wooden * * * beds'' and under subheading 9403.50.9080 of the HTSUS
as ``other * * * wooden furniture of a kind used in the bedroom.'' In
addition, wooden headboards for beds, wooden footboards for beds,
wooden side rails for beds, and wooden canopies for beds may also be
entered under subheading 9403.50.9040 of the HTSUS as ``parts of wood''
and framed glass mirrors may also be entered under subheading
7009.92.5000 of the HTSUS as ``glass mirrors * * * framed.'' This order
covers all wooden bedroom furniture meeting the above description,
regardless of tariff classification. Although the HTSUS subheadings are
provided for convenience and customs purposes, our written description
of the scope of this proceeding is dispositive.
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\10\ As used herein, bentwood means solid wood made pliable.
Bentwood is wood that is brought to a curved shape by bending it
while made pliable with moist heat or other agency and then set by
cooling or drying. See Customs' Headquarters' Ruling Letter 043859,
dated May 17, 1976.
\11\ Any armoire, cabinet or other accent item for the purpose
of storing jewelry, not to exceed 24'' in width, 18'' in depth, and
49'' in height, including a minimum of 5 lined drawers lined with
felt or felt-like material, at least one side door (whether or not
the door is lined with felt or felt-like material), with necklace
hangers, and a flip-top lid with inset mirror. See Issues and
Decision Memorandum from Laurel LaCivita to Laurie Parkhill, Office
Director, Concerning Jewelry Armoires and Cheval Mirrors in the
Antidumping Duty Investigation of Wooden Bedroom Furniture from the
People's Republic of China, dated August 31, 2004. See also Wooden
Bedroom Furniture From the People's Republic of China: Notice of
Final Results of Changed Circumstances Review and Revocation in
Part, 71 FR 38621 (July 7, 2006).
\12\ Cheval mirrors are any framed, tiltable mirror with a
height in excess of 50'' that is mounted on a floor-standing, hinged
base. Additionally, the scope of the order excludes combination
cheval mirror/jewelry cabinets. The excluded merchandise is an
integrated piece consisting of a cheval mirror, i.e., a framed
tiltable mirror with a height in excess of 50 inches, mounted on a
floor-standing, hinged base, the cheval mirror serving as a door to
a cabinet back that is integral to the structure of the mirror and
which constitutes a jewelry cabinet lined with fabric, having
necklace and bracelet hooks, mountings for rings and shelves, with
or without a working lock and key to secure the contents of the
jewelry cabinet back to the cheval mirror, and no drawers anywhere
on the integrated piece. The fully assembled piece must be at least
50 inches in height, 14.5 inches in width, and 3 inches in depth.
See Wooden Bedroom Furniture From the People's Republic of China:
Final Results of Changed Circumstances Review and Determination To
Revoke Order in Part, 72 FR 948 (January 9, 2007).
\13\ Metal furniture parts and unfinished furniture parts made
of wood products (as defined above) that are not otherwise
specifically named in this scope (i.e., wooden headboards for beds,
wooden footboards for beds, wooden side rails for beds, and wooden
canopies for beds) and that do not possess the essential character
of wooden bedroom furniture in an unassembled, incomplete, or
unfinished form. Such parts are usually classified under the
Harmonized Tariff Schedule of the United States (``HTSUS'')
subheading 9403.90.7000.
\14\ Upholstered beds that are completely upholstered, i.e.,
containing filling material and completely covered in sewn genuine
leather, synthetic leather, or natural or synthetic decorative
fabric. To be excluded, the entire bed (headboards, footboards, and
side rails) must be upholstered except for bed feet, which may be of
wood, metal, or any other material and which are no more than nine
inches in height from the floor. See Wooden Bedroom Furniture From
the People's Republic of China: Final Results of Changed
Circumstances Review and Determination To Revoke Order in Part, 72
FR 7013 (February 14, 2007).
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(``Act''), we verified the information submitted by certain mandatory
respondents. See Memoranda to the File, ``Verification of the Factors
Response of {the Dare Group{time} , in the Second Administrative Review
of the Antidumping Duty Order on Wooden Bedroom Furniture from the
PRC,'' (July 10, 2008) (``Dare Group Verification Report'') and
``Verification of the Factors Response of {Teamway{time} in the Second
Administrative Review of the Antidumping Duty Order on Wooden Bedroom
Furniture from the PRC'' (July 3, 2008) (``Teamway Verification
Report''), on file in the CRU. For all verified companies, we used
standard verification procedures, including examination of relevant
accounting and production records, as well as original source documents
provided by respondents. For further details on the verifications, see
the Dare Group Verification Report and the Teamway Verification Report.
Changes Since the Preliminary Results
Based on an analysis of the comments received, the Department has
made certain changes in the margin calculations. For the final results,
the Department has made the following changes with respect to surrogate
financial ratios, surrogate values, the Dare Group and Teamway.
General Issues
Calculation of Surrogate Financial Ratios
After the Preliminary Results, the Dare Group's importer,
American Signature Inc., placed financial statements on the record for
the following four Philippine companies: (1) Berbenwood Industries,
Inc. (``Berbenwood''); (2) Antonio Bryan Development Corporation
(``Antonio Bryan''); (3) Arkane International Corporation; and (4)
Raphael Legacy Designs, Inc. For the final results, we included Antonio
Bryan and
[[Page 49164]]
Berbenwood's surrogate financial ratio calculations in the average
financial ratios. See Memorandum to The File, ``Second Administrative
Review of Wooden Bedroom Furniture from the People's Republic of China:
Factor Valuation Memorandum for the Final Results'' (``Final FOP
Memo'') and Issues and Decision Memorandum at Comment 10.
Calfurn Manufacturing Philippines, Inc. (``Calfurn''): (1)
We treated Calfurn's ``gas and oil'' as material, labor, and energy
(``ML&E'') related to respondents' reported factors of production
(``FOPs''); and (2) we treated energy related to selling, general, and
administrative (``SG&A'') expenses as SG&A. See Final FOP Memo and
Issues and Decision Memorandum at Comment 11.
Insular Rattan & Native Products, Corporation (``Insular
Rattan''): (1) We treated Insular Rattan's ``fuel used'' as ML&E; and
(2) we treated energy related to SG&A operations as SG&A expenses. See
Final FOP Memo and Issues and Decision Memorandum at Comment 11.
Recalculation of Surrogate Values
For the final results, the Department corrected certain
unit conversion factors used to calculate surrogate values.
The Department calculated surrogate values for certain
FOPs using Indian import statistics.
The Department recalculated the surrogate values for
granite and leatheroid, excluding aberrational import data from the
calculations.
The Department recalculated surrogate values for certain
inputs where corrupted data was mistakenly used in the Preliminary
Results.
The Department recalculated the surrogate financial
ratios.
See Final FOP Memo.
Company-Specific Issues
The Dare Group
The Dare Group reported market economy purchase (``MEP'')
prices for paint, light, catches, poplar, and plastic. At the
Department's request, the Dare Group disaggregated these FOPs into more
specific groupings. However, the Dare Group did not report the
percentage of each of the disaggregated FOPs purchased from market
economy (``ME'') countries in ME currencies. Therefore, as partial AFA,
the Department is valuing the disaggregated MEP FOPs using surrogate
values based on Indian or Philippine import statistics, as applicable.
See Issues and Decision Memorandum at Comment 14 and the Analysis
Memorandum for the Final Results of Review: Fujian Lianfu Forestry Co.,
Ltd., Fuzhou Huan Mei Furniture Co. Ltd., and Jiangsu Dare Furniture
Co., Ltd. (``Dare Group Final Calculation Memo'').
The Department found at verification that the Dare Group
under-reported consumption of the FOP ``Plywood with Veneer.'' As
partial AFA, the Department is increasing the per-unit consumption rate
of this FOP as described in the Dare Group Final Calculation Memo. See
Issues and Decision Memorandum at Comment 16 and the Dare Group Final
Calculation Memo.
The Dare Group reported it purchased subject merchandise,
semi-finished furniture, from unaffiliated suppliers which it further
processed and subsequently sold to the United States, but did not
report the relevant FOPs which it further processed and sold to the
United States during the POR. However, the Dare Group provided
documents evidencing it attempted to obtain the FOP data from its
suppliers but its suppliers did not provide the FOPS as requested.
Therefore, as facts available, the Department is valuing semi-finished
furniture as an FOP using Indian import statistics. See Issues and
Decision Memorandum at Comment 12 and the Dare Group Final Calculation
Memo.
For the final results, the Department has treated the Dare
Group's reported per-unit ``Woodscrap'' as a by-product. See Issues and
Decision Memorandum at Comment 20 and the Dare Group Final Calculation
Memo.
The Department corrected certain clerical errors in the
Dare Group's surrogate value summary sheet with respect to notations in
the source unit, currency, and final unit columns. See Issues and
Decision Memorandum at Comment 21 and the Dare Group Final Calculation
Memo.
We have excluded certain sales of non-subject merchandise
from the Dare Group's U.S. sales database. See Issues and Decision
Memorandum at Comment 15 and the Dare Group Final Calculation Memo.
Teamway
For these final results, we applied AFA to steel screws,
nut steel, steel bar, glue, direct labor, electricity, water, and fuel/
oil/diesel from the May 5, 2008, FOP database for subcontractors for
whom Teamway provided materials. See Issues and Decision Memorandum at
Comment 26 and Analysis of the Final Results Margin Calculation for
Teamway Furniture (Dong Guan) Ltd. and Brittomart Incorporated
(``Teamway Final Calculation Memo'').
For these final results, we applied AFA to the veneers,
glue, parquet tape, direct labor, electricity, water, and fuel/oil/
diesel from the May 5, 2008, FOP database for subcontractors for whom
Teamway did not provide materials. See Issues and Decision Memorandum
at Comment 26 and Teamway Final Calculation Memo.
For these final results, for bun feet, bent wood, and
mirrors obtained from subcontractors for whom Teamway did not provide
materials, we valued these inputs with surrogate values. See Issues and
Decision Memorandum at Comment 29 and Teamway Final Calculation Memo.
For the final margin calculation, we created a new
integrated FOP database based upon the FOP databases submitted on May
5, 2008. This final integrated FOP database incorporates on the
following: (1) The May 5, 2008, Teamway in-house FOP database; (2) the
May 5, 2008, FOP database for subcontractors for whom Teamway provided
materials, as adjusted for the application of partial AFA discussed
above, and; (3) the May 5, 2008, FOP database for subcontractors for
whom Teamway did not provide materials, as adjusted for: (A) The minor
correction, which we accepted, to correct the reported water and
electricity usage rates;\15\ and (B) the application of partial AFA
discussed above. See Issues and Decision Memorandum at Comment 27 and
Teamway Final Calculation Memo.
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\15\ See Teamway Verification Report at 2 (i.e., I. Minor
Corrections 3.b).
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As facts available, for these final results for the
merchandise that was sold, but not produced, during the POR, we
determined to use the FOPs from the final integrated FOP database
(discussed immediately above) for the most similar control number
(``CONNUM'') produced during the POR (as determined by the Department).
See Issues and Decision Memorandum at Comment 28 and Teamway Final
Calculation Memo.
For the final results, we reexamined a certain input
purchased by Teamway, and found that the volume of this input from ME
suppliers during the POR was below 33 percent of the company's total
volume of purchases of the input during the POR. Therefore, consistent
with our practice, we weight-averaged the MEP price Teamway paid for
the certain input with the appropriate surrogate value, according to
its respective shares of the total volume of purchases, as appropriate.
See Issues and Decision Memorandum at Comment 32 and Teamway Final
Calculation Memo.
For the final results, we removed packing labor from the
labor component
[[Page 49165]]
of COM, and included it only in the packing costs which we used to
calculate normal value. See Issues and Decision Memorandum at Comment
31 and Teamway Final Calculation Memo.
The U.S. sales database and the FOP databases, on which we
based our integrated FOP database that we used for these final results,
were placed on the record after the preliminary results. We found, and
corrected errors in these databases which were not raised in the
parties' briefs. A full discussion of the additional corrections we
made to the Teamway U.S. sales database and integrated FOP database we
used for these final results can be found in the Teamway Final
Calculation Memo.
Surrogate Country
In the Preliminary Results, we stated that we had selected the
Philippines as the appropriate surrogate country to use in this review
for the following reasons: (1) It is a significant producer of
comparable merchandise; (2) it is at a level of economic development
comparable to that of the PRC; and (3) we have reliable data from the
Philippines that we can use to value the FOPs. See Preliminary Results.
For the final results, we received comments regarding our selection of
a surrogate country. After reviewing those comments, we determined to
make no changes to our findings with respect to the selection of a
surrogate country. However, for certain inputs the Department
determined to use India to value those inputs. See Comment 1 of the
Issues and Decision Memorandum.
Separate Rates
In proceedings involving non-market economy (``NME'') countries,
the Department begins with a rebuttable presumption that all companies
within the country are subject to government control and, thus, should
be assigned a single antidumping duty deposit rate. It is the
Department's policy to assign all exporters of merchandise subject to
an investigation in an NME country this single rate unless an exporter
can demonstrate that it is sufficiently independent so as to be
entitled to a separate rate. See Final Determination of Sales at Less
Than Fair Value: Sparklers From the People's Republic of China, 56 FR
20588 (May 6, 1991), as amplified by Notice of Final Determination of
Sales at Less Than Fair Value: Silicon Carbide From the People's
Republic of China, 59 FR 22585 (May 2, 1994), and 19 CFR 351.107(d).
In the Preliminary Results, we stated that the Dare Group, Teamway,
and 27 Separate Rate Applicants demonstrated their eligibility for
separate-rate status. For the final results, we continue to find that
evidence placed on the record of this review only demonstrates that the
Dare Group, Teamway, and 27 of the Separate Rate Applicants provided
information that shows both a de jure and de facto absence of
government control with respect to their respective exports of the
merchandise under review, and, thus are eligible for separate-rate
status. With respect to the new shipper, Mei Jia Ju, we stated in the
Preliminary Results that we were granting a separate rate to Mei Jia
Ju. However, because Mei Jia Ju failed to provide us with necessary
information within the meaning of section 776(a) of the Act and failed
to cooperate to the best of its ability within the meaning of section
776(b) of the Act we applied total adverse facts available to Mei Jia
Ju and assigned them the PRC-wide rate of 216.01 percent. No parties
have commented on Mei Jia Ju's rate and we continue to assigned Mei Jia
Ju an AFA rate of 216.01 percent.
Affiliation
In the Preliminary Results, we stated that the Dare Group entities
(Fujian Lianfu Forestry Co. Ltd., Fujian Wonder Pacific Inc., Fuzhou
Huan Mei Furniture Co., Ltd., and Jiangsu Dare Furniture Co., Ltd.)
were affiliated pursuant to sections 771(33)(E) and (F) of the Act and
that these companies should be treated as a single entity for the
purposes of the administrative review of wooden bedroom furniture from
the PRC. See Preliminary Results, 73 FR at 8278. For the final results,
we have made no changes to our findings with respect to the Dare
Group's affiliation.
Adverse Facts Available
Sections 776(a)(1) and (2) of the Act provide that the Department
shall apply ``facts otherwise available'' if necessary information is
not on the record or an interested party or any other person (A)
withholds information that has been requested, (B) fails to provide
information within the deadlines established, or in the form and manner
requested by the Department, subject to subsections (c)(1) and (e) of
section 782, (C) significantly impedes a proceeding, or (D) provides
information that cannot be verified as provided by section 782(i) of
the Act.
Where the Department determines that a response to a request for
information does not comply with the request, section 782(d) of the Act
provides that the Department will so inform the party submitting the
response and will, to the extent practicable, provide that party the
opportunity to remedy or explain the deficiency. If the party fails to
remedy the deficiency within the applicable time limits and subject to
section 782(e) of the Act, the Department may disregard all or part of
the original and subsequent responses, as appropriate. Section 782(e)
of the Act provides that the Department ``shall not decline to consider
information that is submitted by an interested party and is necessary
to the determination but does not meet all applicable requirements
established by the administering authority'' if the information is
timely, can be verified, is not so incomplete that it cannot be used,
and if the interested party acted to the best of its ability in
providing the information. Where all of these conditions are met, the
statute requires the Department to use the information if it can do so
without undue difficulties.
Section 776(b) of the Act further provides that the Department may
use an adverse inference in applying the facts otherwise available when
a party has failed to cooperate by not acting to the best of its
ability to comply with a request for information. Section 776(b) of the
Act also authorizes the Department to use as AFA information derived
from the petition, the final determination, a previous administrative
review, or other information placed on the record.
Starcorp
In the Preliminary Results, we determined that because Starcorp
ceased participating in this administrative review, and requested that
the Department and all parties destroy or return its submissions
containing business proprietary information, none of Starcorp's
information could be verified. As a result, Starcorp did not
demonstrate its entitlement to a separate rate and was, therefore,
subject to the PRC-wide rate. See Preliminary Results, 73 FR at 8282.
For the final results, we made no changes to our findings with respect
to Starcorp.
The PRC-Wide Rate
Because we begin with the presumption that all companies within an
NME country are subject to government control and because only the
companies listed under the ``Final Results Margins'' section, below,
have overcome that presumption, we are applying a single antidumping
rate (i.e., the PRC-wide rate) to all other exporters of subject
merchandise from the PRC. These other companies did not demonstrate
entitlement to a separate rate. See, e.g., Synthetic Indigo From the
People's Republic of China; Notice of Final Determination of Sales at
Less
[[Page 49166]]
Than Fair Value, 65 FR 25706, 25707 (May 3, 2000). The PRC-wide rate
applies to all entries of subject merchandise except for entries from
the respondents that are listed in the ``Final Results Margins''
section, below.
The Department based the margin for the PRC-wide entity on AFA. See
Preliminary Results, 73 FR at 8282. Pursuant to section 776(a) of the
Act, the Department found that because the PRC-wide entity failed to
respond to the Department's questionnaires, withheld or failed to
provide information in a timely manner or in the form or manner
requested by the Department, submitted information that could not be
verified, or otherwise impeded the process, it was appropriate to apply
a dumping margin for the PRC-wide entity using facts otherwise
available on the record. The Department further determined that an
adverse inference was appropriate because the PRC-wide entity failed to
respond to requests for information and therefore failed to cooperate
by not acting to the best of its ability. With respect to AFA, we are
applying the highest calculated rate from the history of this
proceeding: a calculated company-specific rate in a new shipper review
of wooden bedroom furniture from the PRC. See Wooden Bedroom Furniture
from the People's Republic of China: Final Results of the 2004-2005
Semi-Annual New Shipper Reviews, 71 FR 70739 (December 6, 2006)
(``Final 04-05 New Shipper Reviews'').
Corroboration
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation or review, it shall, to the extent
practicable, corroborate that information from independent sources that
are reasonably at its disposal. Secondary information is defined as
information derived from the petition that gave rise to the
investigation or review, the final determination concerning the subject
merchandise, or any previous review under section 751 of the Act
concerning the subject merchandise. See Statement of Administrative
Action accompanying the Uruguay Round Agreements Act, H.R. Doc. No.
103-316, Vol. 1 (1994) (``SAA''), at 870. Corroborate means that the
Department will satisfy itself that the secondary information to be
used has probative value. Id. To corroborate secondary information, the
Department will, to the extent practicable, examine the reliability and
relevance of the information to be used. See Tapered Roller Bearings
and Parts Thereof, Finished and Unfinished From Japan, and Tapered
Roller Bearings, Four Inches or Less in Outside Diameter, and
Components Thereof, From Japan; Preliminary Results of Antidumping Duty
Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996) (unchanged in the final
results). Independent sources used to corroborate such evidence may
include, for example, published price lists, official import statistics
and customs data, and information obtained from interested parties
during the particular investigation. See SAA at 870; Notice of Final
Determination of Sales at Less Than Fair Value: Live Swine From Canada,
70 FR 12181, 12183 (March 11, 2005); Notice of Preliminary
Determination of Sales at Less Than Fair Value: High and Ultra-High
Voltage Ceramic Station Post Insulators from Japan, 68 FR 35627, 35628-
35629 (June 16, 2003) (unchanged in final determination).
The AFA rate that the Department is now using was determined in a
previously published final results of new shipper review. See Final 04-
05 New Shipper Reviews. In that new shipper review, the Department
calculated a company-specific rate, which was above the PRC-wide rate
established in the investigation. Because this rate is a company-
specific calculated rate concerning subject merchandise, we have
determined this rate to be reliable.
With respect to the relevance aspect of corroboration, the
Department will consider information reasonably at its disposal to
determine whether a margin continues to have relevance. Where
circumstances indicate that the selected margin is not appropriate as
AFA, the Department will disregard the margin and determine an
appropriate margin. See Fresh Cut Flowers From Mexico; Final Results of
Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February 22,
1996) (the Department disregarded the highest margin in that case as
adverse best information available (the predecessor to facts available)
because the margin was based on another company's uncharacteristic
business expense resulting in an unusually high margin). Similarly, the
Department does not apply a margin that has been discredited. See D&L
Supply Co. v. United States, 113 F.3d 1220, 1221 (Fed. Cir. 1997)
(ruling that the Department will not use a margin that has been
judicially invalidated). To assess the relevancy of the rate used, the
Department compared that rate to the margin calculations of the
mandatory respondents in the current administrative and new shipper
reviews. The Department found that the margin of 216.01 percent was
within the range of the highest margins calculated on the record of
this administrative review. Because the record of this administrative
review contains margins within the range of 216.01 percent, we
determine that the rate from the Final 04-05 New Shipper Reviews
continues to be relevant for use as AFA in the current administrative
and new shipper reviews.
As the adverse margin is both reliable and relevant, we determine
that it has probative value. Accordingly, we determine that this rate
meets the corroboration criterion established in section 776(c) of the
Act, that secondary information have probative value. As a result, the
Department determines that the margin is corroborated for the purposes
of these administrative reviews and may reasonably be applied to Mei
Jia Ju, and the PRC-wide entity as AFA.
Final Results Margins
We determine that the following weighted-average percentage margins
exist for the POR:
Wooden Bedroom Furniture From the PRC
------------------------------------------------------------------------
Weighted-average
Exporter margin (percent)
------------------------------------------------------------------------
Fujian Lianfu Forestry Co., Ltd., aka Fujian 17.93
Wonder Pacific Inc. (Dare Group)..............
Fuzhou Huan Mei Furniture Co., Ltd. (Dare 17.93
Group)........................................
Jiangsu Dare Furniture Co., Ltd. (Dare Group).. 17.93
Teamway Furniture (Dong Guan) Co. Ltd., 19.93
Brittomart Inc................................
BNBM Co., Ltd. (aka Beijing New Material Co., 18.82
Ltd)..........................................
Classic Furniture Global Co., Ltd.............. 18.82
[[Page 49167]]
Dalian Guangming Furniture Co., Ltd............ 18.82
Decca Furniture Ltd., aka Decca................ 18.82
Dong Guan Golden Fortune Houseware Co., Ltd.... 18.82
Dongguan Mingsheng Furniture Co., Ltd.......... 18.82
Dongguan Yihaiwei Furniture Limited............ 18.82
Fortune Furniture Ltd. and its affiliate, 18.82
Dongguan Fortune Furniture Ltd................
Gaomi Yatai Wooden Ware Co., Ltd., Team 18.82
Prospect International Ltd., Money Gain
International Co..............................
Guangming Group Wumahe Furniture Co., Ltd...... 18.82
Inni Furniture................................. 18.82
Mei Jia Ju Furniture Industrial (Shenzhen) Co. 216.01
Ltd...........................................
Meikangchi (Nantong) Furniture Company Ltd..... 18.82
Nanjing Nanmu Furniture Co., Ltd............... 18.82
Po Ying Industrial Co.......................... 18.82
Qingdao Beiyuan-Shengli Furniture Co., Ltd., 18.82
Qingdao Beiyuan Industry Trading Co. Ltd......
Shenzhen Tiancheng Furniture Co., Ltd., 18.82
Winbuild Industrial Ltd., Red Apple Furniture
Co., Ltd. and Red Apple Trading Co., Ltd......
Shenyang Kunyu Wood Industry Co., Ltd.......... 18.82
Shenzhen Xingli Furniture Co., Ltd............. 18.82
Tianjin First Wood Co., Ltd.................... 18.82
Union Friend International Trade Co., Ltd...... 18.82
Winmost Enterprises Limited.................... 18.82
Winny Overseas, Ltd............................ 18.82
Yangchen Hengli Co., Ltd....................... 18.82
Yichun Guangming Furniture Co., Ltd............ 18.82
Zhong Cheng Furniture Co., Ltd................. 18.82
PRC-Wide Rate.................................. 216.01
------------------------------------------------------------------------
Assessment Rates
The Department will determine, and U.S. Customs and Border
Protection (``CBP'') shall assess, antidumping duties on all
appropriate entries. For customers/importers of the respondents that
did not report entered value, we have calculated customer/importer-
specific antidumping duty assessment amounts based on the ratio of the
total amount of antidumping duties calculated for the examined sales of
subject merchandise to the total quantity of subject merchandise sold
in those transactions. For customers/importers of the respondents that
reported entered value, we have calculated customer-specific
antidumping duty assessment amounts based on customer/importer-specific
ad valorem rates in accordance with 19 CFR 351.212(b)(1). For the
companies receiving a separate rate that were not selected for
individual review (i.e., separate rate companies), we have calculated
an assessment rate based on the weighted average of the cash deposit
rates calculated for the companies selected for individual review
excluding any that are zero, de minimis, or based entirely on AFA,
pursuant to section 735(c)(5)(B) of the Act. The Department intends to
issue assessment instructions to CBP 15 days after the date of
publication of these final results of administrative and new shipper
reviews.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of these final results of this administrative review and
new shipper review for all shipments of the subject merchandise
entered, or withdrawn from warehouse, for consumption on or after the
publication date, as provided for by section 751(a)(2)(C) of the Act:
(1) For the exporters listed above, the cash deposit rate will be the
rates shown for those companies; (2) for previously investigated or
reviewed PRC and non-PRC exporters not listed above that have separate
rates, the cash deposit rate will continue to be the exporter-specific
rate published for the most recent period; (3) for all PRC exporters of
subject merchandise which have not been found to be entitled to a
separate rate, the cash deposit rate will be the PRC-wide rate of
216.01 percent; and (4) for all non-PRC exporters of subject
merchandise which have not received their own rate, the cash deposit
rate will be the rate applicable to the PRC exporters that supplied
that non-PRC exporter. These deposit requirements shall remain in
effect until further notice.
Notification of Interested Parties
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of the antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This notice also serves as a reminder to parties subject to
administrative protective orders (``APOs'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under the APO in accordance with 19 CFR 351.305(a)(3), which
continues to govern business proprietary information in this segment of
the proceeding. Timely written notification of the return/destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
We are issuing and publishing these final results and notice in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
[[Page 49168]]
Dated: August 11, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix II
Cross-Cutting Issues
Comment 1: Surrogate Country
A. Economic Comparability
B. Significant Producer
C. Financial Statements
D. Data Considerations
Comment 2: Combination Rates
Comment 3: New NME Wage Rate
Comment 4: Zeroing
I. Surrogate Values
Comment 5: Wrong Standard for Accepting Respondents Proposed HTS
Classifications
Comment 6: Indian Surrogate Values Information Has Been Provided for
Teamway and the Dare Group
A. Effective Date
B. India & South Korea
C. Inherent Error in Calculation
Comment 7: Brokerage And Handling, Diesel Fuel, Water, Electricity,
and Freight
Comment 8: Accurate Conversion Factors for Lumber and Board
Comment 9: Accurate Average Unit Values
Comment 10: Philippine Financial Statements
Comment 11: Treatment of Certain Expense Items in the Financial
Ratios
III. Dare Group
Comment 12: Whether to Apply Partial AFA to the Dare Group's
Purchases of Semi-Finished Furniture from Unaffiliated Suppliers
Comment 13: Incorrect Allocation for Indirect Materials, Labor,
Energy, Water, and Scrap
Comment 14: Use of Disaggregated Factors of Production and Correct
Market Economy Purchase Prices
Comment 15: Exclude Certain Piece Types
Comment 16: Adjust Direct Materials for Unreported Consumption
Comment 17: Modify Assessment Rate Calculation
Comment 18: Conversion Rate for Semi-Finished Furniture Inputs
Comment 19: Raw Material Converters for Plywood
Comment 20: Woodscrap By-Product
Comment 21: Clerical Errors
Comment 22: Corruption of Certain WTA Philippines Import Data
Comment 23: Eliminate Aberrational Values
Comment 24: Change Certain Philippine HTS Categories in Valuing The
Dare Group's Inputs
Comment 25: Use Most Updated Datasets
IV. Teamway
Comment 26: Whether to Apply Total AFA to Teamway
Comment 27: Whether and How to Combine the FOP Datasets from May 5,
2008 and May 16, 2008
Comment 28: Whether to Apply an Adverse Inference to Value
Merchandise Sold, but not Produced, During the POR
Comment 29: Valuation of Certain Subcontracted Factors
Comment 30: Bun Feet Variance
Comment 31: Packing Labor
Comment 32: Use Market Economy Purchases for Certain Inputs
V. Starcorp
Comment 33: Assign Total AFA
[FR Doc. E8-19303 Filed 8-19-08; 8:45 am]
BILLING CODE 3510-DS-P