[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 67-70]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29105]


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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: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) 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).

DATES: Applicable January 4, 2021.

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

    On June 12, 2020, Commerce published in the Federal Register the 
Preliminary Determination.\1\ On August 20, 2020, Commerce published 
its Amended Preliminary Determination to revise the scope of the 
investigation.\2\ The selected mandatory respondents in this 
investigation are Fujian Yinfeng Imp & Exp Trading Co., Ltd. (Yinfeng) 
and Fujian Nanping Yuanqiao Wood-Industry Co., Ltd. (Yuanqiao). In the 
Preliminary Determination, in accordance with section 705(a)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), 
Commerce aligned the final countervailing duty (CVD) determination with 
the final antidumping duty (AD) determination. The revised deadline for 
the final determination of this investigation is now December 28, 2020. 
On October 19, 2020, Commerce issued its Post-Preliminary Analysis.\3\
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    \1\ See 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, 85 FR 35900 (June 12, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Amended Preliminary Countervailing Duty 
Determination, 85 FR 51410 (August 20, 2020) (Amended Preliminary 
Determination).
    \3\ See Memorandum, ``Post-Preliminary Analysis of the 
Countervailing Duty Investigation of Wood Mouldings and Millwork 
Products from the People's Republic of China,'' dated October 19, 
2020; see also Memorandum, ``Countervailing Duty Investigation of 
Wood Mouldings and Millwork Products from the People's Republic of 
China: Preliminary Creditworthiness Determination for Fujian 
Province Youxi City Mangrove Wood Machining Co., Ltd.,'' dated 
October 19, 2020; and Memorandum, ``Countervailing Duty 
Investigation of Wood Mouldings and Millwork Products from the 
People's Republic of China: Post-Prelim Calculations for Fujian 
Yinfeng Imp & Exp Trading Co., Ltd.,'' dated October 19, 2020.
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    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 which is hereby adopted by this 
notice.\4\ 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. 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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    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative 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 (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation (POI) is January 1, 2019 through 
December 31, 2019.

Scope of the Investigation

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

Scope Comments

    On August 5, 2020, we issued a Preliminary Scope Memorandum.\5\ 
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.\6\ 
Based on the comments received from interested parties, we are revising 
the scope of this investigation as it appeared in the Amended 
Preliminary Determination. The scope in Appendix I reflects these 
changes.
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    \5\ 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).
    \6\ 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).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a

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subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \7\ 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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    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one or more 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to section 776(b) of the Act. For further information, see the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.

Verification

    Commerce normally verifies information relied upon in making its 
final determination, pursuant to section 782(i)(1) of the Act. However, 
during the course of this investigation, Commerce was unable to conduct 
on-site verification due to travel restrictions.\8\ Consistent with 
section 776(a)(2)(D) of the Act, Commerce relied on the information 
submitted on the record, where appropriate, which we used in making our 
Preliminary Determination, as facts available in making our final 
determination.
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    \8\ See Memorandum, ``Cancellation of Verification and 
Establishment of the Briefing Schedule,'' dated October 23, 2020.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Yinfeng's subsidy rate 
calculations. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Determination

    In accordance with section 705(c)(l)(B)(i) of the Act, we 
calculated a rate for Yinfeng, a producer/exporter of subject 
merchandise selected for individual examination in this investigation. 
Commerce assigned rates based entirely on facts otherwise available 
with adverse inferences pursuant to section 776 of the Act to Yuanqiao, 
a producer/exporter of subject merchandise selected for individual 
examination which failed to participate on this investigation.
    Section 705(c)(5)(A) of the Act provides that in the final 
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, Commerce assigned a rate based entirely on 
facts available for Yuanqiao. Therefore, the only rate that is not 
zero, de minimis or based entirely on facts otherwise available is the 
rate calculated for Yinfeng. Consequently, we assigned the rate 
calculated for Yinfeng as the all-others rate applicable to producers 
and exporters not individually examined.
    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \9\ As discussed in the Preliminary Determination, Commerce 
found 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. See Preliminary Determination, 85 FR 
at 35901, unchanged in the final determination.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Fujian Yinfeng Imp & Exp Trading Co., Ltd.\9\...........           20.56
Fujian Nanping Yuanqiao Wood Industry Co., Ltd..........          252.29
All Others..............................................           20.56
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Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of the publication of this notice in accordance 
with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed 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, 
effective June 12, 2020, which is the date of publication of the 
Preliminary Determination in the Federal Register. In the Amended 
Preliminary Determination, we revised the scope of the investigation, 
notifying parties that because certain products were henceforth 
excluded from the scope of the investigation, Commerce instructed CBP 
to terminate suspension of liquidation of those excluded products, and 
to refund any cash deposits previously posted with respect to them.\10\ 
However, we did not revise the estimated cash deposit rates published 
in the Preliminary Determination.
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    \10\ See Amended Preliminary Determination, 85 FR at 51410.
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    In accordance with section 703(d) of the Act, effective October 10, 
2020, we instructed CBP to discontinue the suspension of liquidation of 
all entries at that time, but to continue the suspension of liquidation 
of all entries between June 12, 2020 and October 9, 2020.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation and require a cash deposit of estimated 
CVDs for such entries of subject merchandise in the amounts indicated 
above, in accordance with section 706(a) of the Act. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated, and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our affirmative determination that countervailable subsidies are 
being provided to producers and exporters of millwork products from 
China. We will allow the ITC access to all privileged and business 
proprietary information in our files, provided the ITC confirms that it 
will not disclose such information, either publicly or under an 
administrative protective order (APO), without the written consent of 
the Assistant Secretary for Enforcement and Compliance. Because the 
final determination in this proceeding is affirmative, in accordance 
with section 705(b) of the Act, the ITC will make its final 
determination as to whether the domestic industry in the United States 
is materially injured, or threatened with material injury, by reason of 
imports of millwork products from China no later than 45 days after our 
final determination. If the ITC determines

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that material injury or threat of material injury does not exist, this 
proceeding will be terminated and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a CVD order directing CBP to assess, upon further instruction by 
Commerce, CVDs on all imports of the subject merchandise that are 
entered, or withdrawn from warehouse, for consumption on or after the 
effective date of the suspension of liquidation, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an 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 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.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) 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.
    Excluded from the scope of this investigation are all products 
covered by the scope of the countervailing duty order on Hardwood 
Plywood from the People's Republic of China. See Certain Hardwood 
Plywood Products from the People's Republic of China: Countervailing 
Duty Order, 83 FR 513 (January 4, 2018).
    Excluded from the scope of this investigation are all products 
covered by the scope of the countervailing duty order on 
Multilayered Wood Flooring from the People's Republic of China. See 
Multilayered Wood Flooring from the People's Republic of China: 
Countervailing Duty Order, 76 FR 76693 (December 8, 2011).
    Excluded from the scope of this investigation are all products 
covered by the scope of the countervailing duty order on Wooden 
Cabinets and Vanities from the People's Republic of China. See 
Wooden Cabinets and Vanities and Components Thereof from the 
People's Republic of China: Countervailing Duty Order, 85 FR 22134 
(April 21, 2020).
    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. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Calculation of the All-Others Rate
    Comment 2: Whether To Continue To Apply Adverse Facts Available 
(AFA) to the Export Buyer's Credit (EBC) Program
    Comment 3: Whether the Provision of Electricity for Less Than 
Adequate Remuneration (LTAR) Is Countervailable
    Comment 4: Calculation of the Electricity for LTAR Benefit
    Comment 5: Whether Individual-Owned Sawn Wood and Plywood Input 
Suppliers Are Government Authorities

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    Comment 6: Whether Commerce Should Countervail Imported Sawn 
Wood Purchased From Domestic Trading Companies
    Comment 7: Whether the Provision of Primer, Including Gesso, for 
LTAR Program Was Unlawfully Expanded
    Comment 8: Whether Zeroing of Negative LTAR Benefits Must Be 
Eliminated
    Comment 9: Whether To Include Land Purchased From an Individual 
in the Benefits Calculation
    Comment 10: Provision of Land-Use Rights for LTAR Benchmarks
    Comment 11: Adjustment to Ocean Freight Data
    Comment 12: Calculation of Mangrove's Creditworthiness
    Comment 13: Benchmark Data
VII. Recommendation

[FR Doc. 2020-29105 Filed 12-31-20; 8:45 am]
 BILLING CODE 3510-DS-P