Daily Rules, Proposed Rules, and Notices of the Federal Government
The Department preliminarily determines that Huansheng and Cadman have not made sales at less than normal value ("NV"). The Department also preliminarily determines that Wanvog made sales in the United States at prices below NV. If these preliminary results are adopted in our final results of review, the Department will instruct U.S. Customs and Border Protection ("CBP") to assess antidumping duties on entries of subject merchandise during the period January 1, 2009 through December 31, 2009 (the period of review or "POR"), for which the importer-specific assessment rates are above
The antidumping duty order on wooden bedroom furniture from the PRC was published on January 4, 2005.
On March 2, 2010, the Department issued an antidumping duty questionnaire to Huansheng, Wanvog, and Cadman. From March 2010 through September 2010, the Department received timely questionnaire and supplemental questionnaire responses from Huansheng, Wanvog, and Cadman.
On April 26, 2010, the Office of Policy issued a memorandum identifying six countries as being at a level of economic development comparable to the PRC for the instant POR. The countries identified in that memorandum are India, the Philippines, Indonesia, Thailand, Ukraine, and Peru.
The POR is January 1, 2009 through December 31, 2009.
The product covered by the order is wooden bedroom furniture which 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, 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-on-chests,
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;
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.” The 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.
Consistent with the Department's practice, the Department investigated the
The Department preliminarily finds that the sales of subject merchandise made by Huansheng, Wanvog, and Cadman were made on a
In every antidumping case conducted by the Department involving the PRC, the PRC has been treated as a non-market economy (“NME”) country.
In proceedings involving NME countries, the Department has a rebuttable presumption that all companies within the country are subject to government control and thus should be assessed a single antidumping duty rate. It is the Department's policy to assign all exporters of subject merchandise 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. Exporters can demonstrate this independence through the absence of both
Wanvog provided evidence that during the POR it was a wholly foreign-owned company.
Cadman and Huansheng are wholly Chinese-owned companies and are located in the PRC. Therefore, the Department has analyzed whether they have demonstrated the absence of both
The Department considers the following
The evidence provided by Cadman and Huansheng supports a preliminary finding of
The Department considers four factors in evaluating whether each respondent is subject to
The evidence provided by Cadman and Huansheng supports a preliminary finding of
The evidence placed on the record by Cadman and Huansheng demonstrates an absence of
When the Department conducts an antidumping duty new shipper review of imports from an NME country, section 773(c)(1) of the Act directs the Department to base NV, in most circumstances, on the NME producer's FOP valued in a surrogate market-economy country or countries considered appropriate by the Department. In accordance with section 773(c)(4) of the Act, the Department will value FOP using “to the extent possible, the prices or costs of factors of production in one or more market economy countries that are—(A) at a level of economic development comparable to that of the NME country, and (B) significant producers of comparable merchandise.” Further, pursuant to 19 CFR 351.408(c)(2), the Department will normally value all FOP in a single country, except for labor.
In the instant review, the Department identified India, the Philippines, Indonesia, Thailand, Ukraine, and Peru as being at a level of economic development comparable to the PRC.
Based on the information on the record, we find that the Philippines is a significant producer of comparable merchandise. Specifically,
With respect to data considerations in selecting a surrogate country, both Petitioners and the three respondents have submitted publicly-available Philippine data for valuing FOP. In addition, the Department used the Philippines as the primary surrogate country in the second, third, and fourth administrative reviews of this proceeding.
Thus, the Department has preliminarily selected the Philippines as the primary surrogate country because the record shows that the Philippines is at a level of economic development comparable to that of the PRC and is a significant producer of merchandise comparable to subject merchandise. Moreover, the record indicates that sufficient, contemporaneous, public Philippine data are readily-available.
In accordance with section 777(A)(d) of the Act, to determine whether Cadman, Huansheng and Wanvog sold wooden bedroom furniture to the United States at less than NV, the Department compared the export price (“EP”) and constructed export price (“CEP”) of U.S. sales to NV, as described in the “U.S. Price” and “Normal Value” sections of this notice.
In accordance with section 772(a) of the Act, the Department used EP as the basis for U.S. price for Huansheng's and Cadman's sales where the first sale to unaffiliated purchasers was made prior to importation and the use of CEP was not otherwise warranted. In accordance with section 772(c) of the Act, the Department calculated EP for Huansheng and Cadman by deducting the following expenses, where applicable, from the starting price (gross unit price) charged to the first unaffiliated customer in the United States: foreign inland freight from the plant to the port of exportation, and foreign brokerage and handling. Additionally, the Department based movement expenses on surrogate values where the service was purchased from a PRC company. For details regarding our EP calculations, see the Huansheng analysis memorandum entitled, “Wooden Bedroom Furniture from the People's Republic of China: Preliminary Results Analysis Memorandum for Dongguan Huansheng Furniture Co., Ltd.,” (“Huansheng Analysis Memorandum”), dated concurrently with the preliminary results, the Cadman analysis memorandum entitled, “Wooden Bedroom Furniture from the People's Republic of China: Preliminary Results Analysis Memorandum for Hangzhou Cadman Trading Co., Ltd.,” (“Cadman Analysis Memorandum”), dated concurrently with the preliminary results and the Surrogate Value Memorandum.
In accordance with section 772(b) of the Act, the Department used CEP as the basis for U.S. price for Wanvog's sales where Wanvog first sold subject merchandise to its affiliated company in the United States, which in turn sold subject merchandise to unaffiliated U.S. customers. In accordance with section 772(b) of the Act, CEP is the price at which the merchandise under investigation is first sold (or agreed to be sold) in the United States before or after the date of importation by or for the account of the producer or exporter of such merchandise or by a seller affiliated with the producer or exporter, to a purchaser not affiliated with the producer or exporter, as adjusted under sections 772(c) and (d) of the Act. The Department calculated CEP for Wanvog based on delivered prices to unaffiliated purchasers in the United States and made deductions, where applicable, from the U.S. sales price for movement expenses in accordance with section 772(c)(2)(A) of the Act. These movement expenses included foreign inland freight from the plant to the port of exportation, brokerage and handling, international freight, marine insurance, and U.S. customs duty. In accordance with section 772(d)(1) of the Act, the Department deducted credit expenses and indirect selling expenses from the U.S. price, all of which relate to commercial activity in the United States. Finally, the Department
Section 773(c)(1) of the Act provides that the Department shall determine the NV using an FOP methodology if: (1) The merchandise is exported from an NME country; and (2) the information does not permit the calculation of NV using home-market prices, third-country prices, or constructed value under section 773(e) of the Act. When determining NV in an NME context, the Department will base NV on FOP, because the presence of government controls on various aspects of these economies renders price comparisons and the calculation of production costs invalid under our normal methodologies. Under section 773(c)(3) of the Act, FOP include, but are not limited to: (1) Hours of labor required; (2) quantities of raw materials employed; (3) amounts of energy and other utilities consumed; and (4) representative capital costs. The Department based NV on FOP reported by Huansheng, Wanvog, and Cadman for materials, energy, labor and packing.
In accordance with 19 CFR 351.408(c)(1), the Department will normally use publicly-available surrogates to value FOP, but when a producer sources an input from a market economy and pays for it in market economy currency, the Department will normally value the factor using the actual price paid for the input. However, when the Department has reason to believe or suspect that such prices may be distorted by subsidies, the Department will disregard the market economy purchase prices and use surrogate values to determine the NV.
In avoiding the use of prices that may be subsidized, the Department does not conduct a formal investigation to ensure that such prices are not subsidized, but rather relies on information that is generally available at the time of its determination.
In accordance with section 773(c) of the Act, we calculated NV based on FOP reported by Huansheng, Wanvog, and Cadman for the POR. To calculate NV, the Department multiplied the reported per-unit factor quantities by publicly-available Philippine and Indian surrogate values. In selecting the surrogate values, the Department considered the quality, specificity, and contemporaneity of the data. As appropriate, the Department adjusted input prices by including freight costs to make them delivered prices. Specifically, the Department added to Philippine import surrogate values a surrogate freight cost using the shorter of the reported distance from the domestic supplier to the respondent's factory or the distance from the nearest seaport to the respondent's factory where appropriate (
Where market-economy purchases of inputs were not made in significant quantities, we used import values for the POR from the Philippines National Statistics Office (“Philippines NSO”) reported in U.S. dollars on a cost, insurance, and freight (“CIF”) basis to value the following inputs: Woods (
Where we could not obtain publicly-available information contemporaneous with the POR with which to value FOP, we inflated (or deflated) the surrogate values using the Philippine Wholesale Price Index or the Indian Wholesale Price Index as published in the
On May 14, 2010, the Court of Appeals for the Federal Circuit (“CAFC”) in
For the preliminary results of these new shipper reviews, the Department is valuing labor using a simple average industry-specific wage rate using earnings or wage data reported under Chapter 5B by the International Labor Organization (“ILO”). To achieve an industry-specific labor value, we relied on industry-specific labor data from the countries we determined to be both economically comparable to the PRC and significant producers of comparable merchandise. A full description of the industry-specific wage rate calculation methodology is provided in the Surrogate Value Memorandum. The Department calculated a simple average industry-specific wage rate of $1.20 for these preliminary results. Specifically, for this review, the Department has calculated the wage rate using a simple average of the data provided to the ILO under Sub-Classification 36 of the ISIC-Revision 3 standard by countries determined to be both economically comparable to the PRC and significant producers of comparable merchandise. The Department finds the two-digit description under International Standard Industrial Classification—Revision 3 (“Manufacture of furniture; manufacturing n.e.c.”) to be the best available wage rate surrogate value on the record because it is specific and derived from industries that produce merchandise comparable to the subject merchandise. Consequently, we averaged the ILO industry-specific wage rate data or earnings data available from the following countries found to be economically comparable to the PRC and significant producers of comparable merchandise: Ecuador, Egypt,
We valued electricity using contemporaneous Philippine data from
We valued natural gas using April through June 2002 data from the Gas Authority of India Ltd. (“GAIL”). To be contemporaneous with the POR, the Department inflated this factor value using the POR-average wholesale price index for India.
We calculated the value of domestic brokerage and handling using World Bank's
We calculated the surrogate value for truck freight using Philippine data from
We valued factory overhead, selling, general, and administrative (“SG&A”) expenses, and profit, using the audited financial statements for the fiscal year ending December 31, 2008, from the following producers: APY Cane International; Arkane International Corporation; Berbenwood Industries Inc.; Clear Export Industries, Inc.; Diretso Design Furnitures, Inc.; Heritage Muebles Mirabile Export Inc.; Horizon International Manufacturing, Inc.; Insular Rattan and Native Products Corp.; Interior Crafts Of The Islands, Inc.; Las Palmas Furniture, Inc.; and Wicker & Vine, Inc., which are Philippine producers of merchandise identical to subject merchandise that received no countervailable subsidies and that earned a before-tax profit in 2008. From this information, we were able to determine factory overhead costs as a percentage of the total raw materials, labor and energy (“ML&E”) costs; SG&A expenses as a percentage of ML&E plus overhead costs (
We made currency conversions into U.S. dollars, in accordance with section 773A(a) of the Act, based on the exchange rates in effect on the dates of the U.S. sales as certified by the Federal Reserve Bank.
The Department preliminarily determines that the following weighted-average dumping margins exist for the period January 1, 2009, through December 31, 2009:
The Department will disclose calculations performed for these preliminary results to the parties within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b).
Interested parties may submit written comments no later than 30 days after the date of publication of these preliminary results of review.
The Department will issue the final results of these new shipper reviews, which will include the results of its analysis of any issues raised in written comments, within 90 days of the date on which these preliminary results are issued, in accordance with 19 CFR 351.214(i)(1), unless the time limit is extended.
Pursuant to 19 CFR 351.212(b), the Department will determine, and CBP shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of these reviews. For assessment purposes, the Department will calculate importer-specific (or customer)
The following cash deposit requirements will be effective upon publication of the final results of these new shipper reviews for shipments of subject merchandise from Huansheng, Wanvog, and Cadman entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided by section 751(a)(2)(C) of the Act: (1) The cash deposit rate for the exporter/producer combinations listed in the table above will be the cash deposit rate established for that combination in the final results of these reviews; (2) for subject merchandise exported by Huansheng but not produced by Huansheng, exported by Wanvog but not produced by Wanvog, and exported by Cadman but not produced by Haining Changbei Furniture Co., Ltd. (“Haining Changbei”), the cash deposit rate will continue to be the PRC-wide rate of 216.01 percent; (3) for subject merchandise produced by Huansheng but not exported by Huansheng or produced by Wanvog but not exported by Wanvog, the cash deposit rate will be the rate applicable to the exporter; and (4) for subject merchandise produced by Haining Changbei but not exported by Cadman, the cash deposit rate will be the rate applicable to the exporter. If the cash deposit rate calculated in the final results of these reviews is zero or
This notice serves as a 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 POR. Failure to comply with this requirement could result in the Secretary's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
The Department is issuing and publishing this determination in accordance with sections 751(a)(2)(B) and 777(i) of the Act, and 19 CFR 351.214(h) and 351.221(b)(4).