[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 70-72]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29103]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-853]


Wood Mouldings and Millwork Products From Brazil: Final Negative 
Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of wood mouldings and millwork products (millwork products) from Brazil 
are not being, or are not likely to be, sold in the United States at 
less than fair value (LTFV). The period of investigation (POI) is 
January 1, 2019 through December 31, 2019.

DATES: Applicable January 4, 2021.

FOR FURTHER INFORMATION CONTACT: George Ayache or Suzanne Lam, 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) 482-2623 or (202) 
482-0783, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On August 12, 2020, Commerce published the Preliminary 
Determination in the LTFV investigation of millwork products from 
Brazil.\1\ For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\2\
---------------------------------------------------------------------------

    \1\ See Wood Mouldings and Millwork Products from Brazil: 
Preliminary Negative Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination, 85 FR 48667 (August 12, 
2020) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Negative Determination in the Less-Than-Fair-Value 
Investigation of Wood Mouldings and Millwork Products from Brazil,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are millwork products 
from Brazil. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    On August 5, 2020, we issued a Preliminary Scope Memorandum.\3\ 
Several interested parties submitted case and rebuttal briefs 
concerning the scope of this investigation. For a summary of the 
product coverage comments and rebuttal comments submitted to the record 
for this final determination, and accompanying discussion and analysis 
of all comments timely received, see the Final Scope Memorandum.\4\ 
Based on the comments received from interested parties, we are revising 
the scope of this investigation as it appeared in the Preliminary 
Determination. The scope in Appendix I reflects these changes.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Wood Mouldings and Millwork Products from 
Brazil and the People's Republic of China: Preliminary Scope 
Decision Memorandum,'' dated August 5, 2020 (Preliminary Scope 
Memorandum).
    \4\ See Memorandum, ``Wood Mouldings and Millwork Products from 
Brazil and the People's Republic of China: Scope Comments Decision 
Memorandum for the Final Determinations,'' dated concurrently with, 
and hereby adopted by, this notice (Final Scope Memorandum).
---------------------------------------------------------------------------

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\5\
---------------------------------------------------------------------------

    \5\ See Commerce's Letters with attached questionnaire in lieu 
of verification, dated October 14, 2020; see also Araupel S.A.'s 
Letter, ``Wood Mouldings and Millwork Products from Brazil: 
Verification Questionnaire Response,'' dated October 22, 2020; and 
Braslumber Industria de Molduras Ltda. and Braspine Madeiras Ltda.'s 
Letter, ``Antidumping Duties on Imports of Wood Mouldings and 
Millwork Products from Brazil: BrasPine/Braslumber's Response to the 
Department's Questionnaire in Lieu of Verification,'' dated October 
22, 2020.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. For a list of the issues raised by interested 
parties and addressed in the Issues and Decision Memorandum, see 
Appendix II to this notice. The Issues and Decision Memorandum is a 
public document and is made available to the public 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 Issues 
and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
interested parties, we made certain changes to the margin calculations 
for Araupel S.A./Braslumber Industria de Molduras Ltda./BrasPine 
Madeiras Ltda. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Determination

    The final estimated weighted-average dumping margin is as follows:
---------------------------------------------------------------------------

    \6\ Commerce determines that Araupel S.A., Braslumber Industria 
de Molduras Ltda., and Braspine Madeiras Ltda. are a single entity. 
See Issues and Decision Memorandum.

------------------------------------------------------------------------
                                                            Estimated
                                                            weighted-
                   Exporter/producer                     average dumping
                                                              margin
                                                            (percent)
------------------------------------------------------------------------
Araupel S.A./Braslumber Industria de Molduras Ltda./               0.00
 BrasPine Madeiras Ltda.\6\............................
------------------------------------------------------------------------


[[Page 71]]

    Because the weighted-average dumping margin is zero, we determine 
that millwork products from Brazil are not being, or are not likely to 
be, sold in the United States at LTFV. Commerce has not calculated an 
estimated weighted-average dumping margin for all other producers and 
exporters pursuant to sections 735(c)(1)(B) and (c)(5) of the Act 
because it has not made a final affirmative determination of sales at 
LTFV.

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of publication of this notice, in accordance with 19 CFR 
351.224(b).

Suspension of Liquidation

    In the Preliminary Determination, the weighted-average dumping 
margin for Araupel S.A./Braslumber Industria de Molduras Ltda./BrasPine 
Madeiras Ltda. was zero and, therefore, we did not suspend liquidation 
of entries of millwork products from Brazil.\7\ Because Commerce has 
made a final negative determination of sales at LTFV with regard to the 
subject merchandise, Commerce will not direct U.S. Customs and Border 
Protection to suspend liquidation or to require a cash deposit of 
estimated antidumping duties for entries of millwork products from 
Brazil.
---------------------------------------------------------------------------

    \7\ See Preliminary Determination, 85 FR at 48667.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission of our final determination. As our final 
determination is negative, this proceeding is terminated in accordance 
with section 735(c)(2) of the Act.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or 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.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: December 28, 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 or finger-jointed or edge-glued moulding or millwork 
blanks (whether or not resawn). The merchandise subject to this 
investigation can be continuously shaped along any of its edges, 
ends, or faces.
    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, stiles, interior and exterior door frames 
or jambs (including split, flat, stop applied, single--or double-
rabbeted), frame or jamb kits, and packaged door frame trim or 
casing sets, whether or not the door components are imported as part 
of a door kit or set.
    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 obscure 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 this investigation if 
performed in the country of manufacture of the in-scope product.
    Excluded from the scope of this investigation are countertop/
butcherblocks imported as a full countertop/butcherblock panel, 
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, rail 
fittings and stair stringers); picture frame components three feet 
and under in individual lengths; and lumber whether solid, finger-
jointed, or edge-glued. To be excluded from the scope, finger-
jointed or edge-glued lumber must have a nominal thickness of 1.5 
inches or greater and a certification stamp from an American Lumber 
Standard Committee-certified grading agency. The exclusion for 
lumber whether solid, finger-jointed, or edge-glued does not apply 
to screen/``surfaced on 4 sides'' (S4S) and/or ``surface 1 side, 2 
edges'' (SlS2E) stock (also called boards) that are finger-jointed 
and/or edge-glued, or to finger-jointed and/or edge-glued moulding 
or millwork blanks (whether or not resawn). Accordingly, S4S and 
S1S2E stock/boards that are not finger-jointed or edge-glued are 
excluded from the scope of this investigation.
    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, 
4418.20.4000, 4418.20.8030, 4418.20.8060, 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 the investigation is dispositive.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Changes From the Preliminary Determination
IV. Discussion of the Issues
    Comment 1: Whether Commerce Should Treat All Three Mandatory 
Respondents

[[Page 72]]

as Affiliates and Collapse Them Into a Single Entity
    Comment 2: Whether Commerce Should Revise Its CV Profit 
Calculation
    Comment 3: Whether Araupel's Log Valuations Are Inaccurate and 
Do Not Reflect an Accurate Market Price
    Comment 4: Whether Commerce Should Recalculate the Fair Value 
Adjustment for Araupel's Costs for Biological Assets Consumed during 
the POI
    Comment 5: Whether Commerce Incorrectly Decreased Araupel's 
Costs for Biological Assets Not Consumed during the POI
    Comment 6: Whether Commerce Should Apply the Major Input Rule to 
Araupel's Log Purchases
    Comment 7: Whether Unreconciled Costs Should Be Allocated to 
Production Costs
    Comment 8: Whether Araupel's Non-Prime Merchandise Should Be 
Assigned Full Production Costs
    Comment 9: Whether Commerce Should Use the Federal Reserve's 
Small Business Lending Survey Short-Term Interest Rate To Calculate 
Araupel's Credit Expenses
    Comment 10: Whether Commerce Should Use the Earlier of the 
Shipment Date or Commercial Invoice as Braslumber/BrasPine's Date of 
Sale
    Comment 11: Whether the Date of Sale Should Be Consistent 
Between the Mandatory Respondents
    Comment 12: Whether Commerce Should Include Araupel's Reported 
Other Revenue
V. Recommendation

[FR Doc. 2020-29103 Filed 12-31-20; 8:45 am]
 BILLING CODE 3510-DS-P