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[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
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