[Federal Register Volume 75, Number 222 (Thursday, November 18, 2010)]
[Notices]
[Pages 70714-70719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29119]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-970]


Multilayered Wood Flooring From the People's Republic of China: 
Initiation of Antidumping Duty Investigation

DATES: Effective Date: November 18, 2010.

FOR FURTHER INFORMATION CONTACT: Brandon Petelin, John Hollwitz or 
Charles Riggle, AD/CVD Operations, Office 8, (202) 482-8173, (202) 482-
2336 or (202) 482-0650, respectively; Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: On October 21, 2010, the Department of 
Commerce (``Department'') received a petition concerning imports of 
multilayered wood flooring from the People's Republic of China 
(``PRC'') filed in proper form by the Coalition for American Hardwood 
Parity \1\ (``Petitioner''). See Petitions for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring from 
the People's Republic of China dated October 21, 2010 (``Petition''). 
On October 27, 2010, the Department issued requests for information and 
clarification of certain areas of the Petition. Petitioner timely filed 
additional information on October 29, 2010,\2\ November 2, 2010,\3\ 
November 3, 2010,\4\ November 8, 2010 \5\ and November 9, 2010.\6\
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    \1\ The Coalition for American Hardwood Parity is comprised of 
Anderson Hardwood Floors, LLC, Award Hardwood Floors, Baker's Creek 
Wood Floors, Inc., From the Forest, Howell Hardwood Flooring, 
Mannington Mills, Inc., Nydree Flooring and Shaw Industries Group, 
Inc.
    \2\ See Supplement to the Petition for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring 
from the People's Republic of China, dated October 29, 2010 
(``Supplement to the AD Petition'').
    \3\ See Supplement to the Petition for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring 
from the People's Republic of China, dated November 2, 2010 
(``Supplement to the AD/CVD Petitions'').
    \4\ See Supplement to the Petition for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring 
from the People's Republic of China, dated November 3, 2010 
(``Second Supplement to the AD/CVD Petitions'').
    \5\ See Letter regarding the Petition for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring 
from the People's Republic of China, dated November 8, 2010.
    \6\ See Letter regarding the Petition for the Imposition of 
Antidumping and Countervailing Duties: Multilayered Wood Flooring 
from the People's Republic of China, dated November 9, 2010.
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    On November 4, 2010, we received comments from Lumber Liquidators 
Services, LLC (``Lumber Liquidators'') and Home Legend, LLC (``Home 
Legend''), U.S. importers of multilayered wood flooring. Lumber 
Liquidators and Home Legend are interested parties as defined by 
section 771(9)(A) of the Tariff Act of 1930, as amended (``the Act''). 
Additionally, on November 9, 2010, we received further comments filed 
by Lumber Liquidators, Home Legend and U.S. Floors LLC.

Period of Investigation

    The period of investigation (``POI'') is April 1, 2010, through 
September 30, 2010. See 19 CFR 351.204(b)(1).

[[Page 70715]]

    In accordance with section 732(b) of the Act, Petitioner alleged 
that imports of multilayered wood flooring from the PRC are being, or 
are likely to be, sold in the United States at less than fair value, 
within the meaning of section 731 of the Act, and that such imports are 
materially injuring, or threatening material injury to, an industry in 
the United States.
    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because Petitioner is an interested party, as 
defined in sections 771(9)(C), (E) and (F) of the Act, and has 
demonstrated sufficient industry support with respect to the 
antidumping duty investigation that Petitioner is requesting the 
Department to initiate (see ``Determination of Industry Support for the 
Petition'' section below).

Scope of the Investigation

    The products covered by this investigation are multilayered wood 
flooring from the PRC. For a full description of the scope of the 
investigation, see ``Scope of Investigation,'' in Appendix I of this 
notice.

Comments on Scope of the Investigation

    During our review of the Petition, we discussed the scope with 
Petitioner to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. As a result, the 
``Scope of Investigation'' language has been modified from the language 
in the Petition to reflect these clarifications. Moreover, as discussed 
in the preamble to the regulations (see Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages interested 
parties to submit such comments by Tuesday, November 30, 2010, which is 
twenty calendar days from the signature date of this notice. Comments 
should be addressed to Import Administration's APO/Dockets Unit, Room 
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue, 
NW., Washington, DC 20230. The period of scope consultations is 
intended to provide the Department with ample opportunity to consider 
all comments and to consult with parties prior to the issuance of the 
preliminary determination.

Comments on Product Characteristics for Antidumping Duty Questionnaires

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of multilayered wood flooring to 
be reported in response to the Department's antidumping questionnaires. 
This information will be used to identify the key physical 
characteristics of the merchandise under consideration in order to more 
accurately report the relevant factors and costs of production, as well 
as to develop appropriate product comparison criteria.
    Interested parties may provide information or comments that they 
believe are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics; and (2) the product comparison criteria. We note that 
it is not always appropriate to use all product characteristics as 
product comparison criteria. We base product comparison criteria on 
meaningful commercial differences among products. In other words, while 
there may be some physical product characteristics utilized by 
manufacturers to describe multilayered wood flooring, it may be that 
only a select few product characteristics take into account 
commercially meaningful physical characteristics. In addition, 
interested parties may comment on the order in which the physical 
characteristics should be used in product matching. Generally, the 
Department attempts to list the most important physical characteristics 
first and the least important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaires, we must 
receive comments at the above-referenced address by November 30, 2010. 
Additionally, rebuttal comments must be received by December 7, 2010.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the industry.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The ITC, which is responsible for determining 
whether ``the domestic industry'' has been injured, must also determine 
what constitutes a domestic like product in order to define the 
industry. While both the Department and the ITC must apply the same 
statutory definition regarding the domestic like product (see section 
771(10) of the Act), they do so for different purposes and pursuant to 
a separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law. See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001), citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 
639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied 
492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, Petitioner does not offer 
a definition of domestic like product distinct from the scope of the 
investigation. Based on our analysis of the information submitted on 
the record, we have determined that multilayered wood flooring 
constitutes a single domestic like product and we have analyzed 
industry support in terms of that domestic like product. For a 
discussion of the domestic like product analysis in this case, see 
Antidumping Duty Investigation Initiation Checklist: Multilayered Wood 
Flooring from the

[[Page 70716]]

People's Republic of China (``Initiation Checklist''), at Attachment 
II, Analysis of Industry Support for the Petitions Covering 
Multilayered Wood Flooring from the People's Republic of China, on file 
in the Central Records Unit (CRU), Room 7046 of the main Department of 
Commerce building.
    In determining whether Petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of Investigation'' section above. To 
establish industry support, Petitioner provided its production volume 
of the domestic like product in 2009, and compared this to the 
estimated total production volume of the domestic like product for the 
entire domestic industry. See Volume I of the Petitions, at 4-5, and 
Exhibit I-3; see also Supplement to the AD/CVD Petitions dated November 
2, 2010, at 2; Second Supplement to the AD/CVD Petitions dated November 
3, 2010, at 1-2 and Exhibit I-K. Petitioner estimated 2009 production 
volume of the domestic like product by non-petitioning companies based 
on its knowledge of the industry. We have relied upon data Petitioner 
provided for purposes of measuring industry support. For further 
discussion, see Initiation Checklist at Attachment II.
    On November 4, 2010, we received a submission on behalf of 
importers of multilayered wood flooring, interested parties to this 
proceeding as defined in section 771(9)(A) of the Act, questioning the 
industry support calculation. See Initiation Checklist at Attachment 
II. On November 8 and 9, 2010, Petitioner filed replies to the 
importers' industry support challenge. The importers filed an 
additional submission on November 9, 2010. For further discussion of 
these submissions see Initiation Checklist at Attachment II.
    Based on information provided in the Petition, supplemental 
submissions, and other information readily available to the Department, 
we determine that the domestic producers and workers have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petition account for at least 25 percent of the total production of the 
domestic like product. Because the Petition and supplemental 
submissions did not establish support from domestic producers (or 
workers) accounting for more than 50 percent of the total production of 
the domestic like product, the Department was required to take further 
action in order to evaluate industry support. See section 732(c)(4)(D) 
of the Act. In this case, the Department was able to rely on other 
information, in accordance with section 732(c)(4)(D)(i) of the Act, to 
determine industry support. See Initiation Checklist at Attachment II; 
see also Memorandum to the File from Victoria Flynn, dated November 3, 
2010. Based on information provided in the Petition, other submissions, 
and additional information obtained by the Department, the domestic 
producers and workers have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition. Accordingly, the Department determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act. See Initiation Checklist at Attachment 
II.
    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C), (E) and (F) of the Act and they have demonstrated 
sufficient industry support with respect to the antidumping duty 
investigations that they are requesting the Department initiate. Id.

Allegations and Evidence of Material Injury and Causation

    Petitioner alleges that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the imports of the subject merchandise 
sold at less than normal value (``NV''). In addition, Petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.
    Petitioner contends that the industry's injured condition is 
illustrated by reduced market share, reduced production, reduced 
shipments, reduced capacity and capacity utilization, underselling and 
price depression or suppression, reduced employment, hours worked, and 
wages paid, decline in financial performance, lost sales and revenue, 
and increase in import penetration. See Vol. I of the Petition, at 16-
60. We have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, and causation, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation. See 
Checklist at Attachment III, Injury.

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department based its decision to 
initiate this investigation of imports of multilayered wood flooring 
from the PRC. The sources of data for the deductions and adjustments 
relating to the U.S. price and the factors of production are also 
discussed in the initiation checklist. See Initiation Checklist.

U.S. Price

    Petitioner calculated export price (``EP'') based on documentation 
of offers for sales obtained from a proprietary source. See Initiation 
Checklist; see also Volume II of the Petition, at 1-2 and Exhibit II-1.

Normal Value

    Petitioner claims the PRC is a non-market economy (``NME'') country 
and that no determination to the contrary has been made by the 
Department. See Volume II of the Petition, at 3. The presumption of NME 
status for the PRC has not been revoked by the Department and, 
therefore, in accordance with section 771(18)(C)(i) of the Act, remains 
in effect for purposes of the initiation of this investigation. 
Accordingly, the NV of the product for the PRC investigation is 
appropriately based on factors of production valued in a surrogate 
market-economy country in accordance with section 773(c) of the Act. In 
the course of this investigation, all parties, including the public, 
will have the opportunity to provide relevant information related to 
the issue of the PRC's NME status and the granting of separate rates to 
individual exporters.
    Petitioner contends that Indonesia is the appropriate surrogate 
country for the PRC because: (1) It is at a level of economic 
development comparable to that of the PRC and (2) it is a significant 
producer of comparable merchandise. See Volume II of the Petition, at 
3-6, and Exhibits II-2, II-3, and II-4. Based on the information 
provided by Petitioner, we believe that it is appropriate to use 
Indonesia as a surrogate country for initiation purposes. After 
initiation of the investigation, interested parties will have the 
opportunity to submit comments regarding surrogate country selection 
and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an 
opportunity to submit publicly available information to value factors 
of production within 40 days after the date

[[Page 70717]]

of publication of the preliminary determination.
    Petitioner calculated NV and the dumping margins using the 
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C) 
and 19 CFR 351.408. In calculating NV, Petitioner based the quantity of 
each of the inputs used to manufacture multilayered wood flooring in 
the PRC on product-specific consumption rates of a multilayered wood 
flooring producer in the United States (``Surrogate Domestic 
Producer'') for identical or similar merchandise during the POI. See 
Volume II of the Petition, at 6-8 and Exhibits II-5 and II-6. 
Petitioner states that the actual usage rates of the foreign 
manufacturers of multilayered wood flooring are not reasonably 
available; however, Petitioner notes that according to the information 
available, the production of multilayered wood flooring in the PRC 
relies on similar production methods to the Surrogate Domestic 
Producer. See Volume II of the Petition, at 6-7 and Exhibit II-5.
    As noted above, Petitioner determined the consumption quantities of 
all raw materials based on the production experience of the Surrogate 
Domestic Producer. Petitioner valued most of the factors of production 
based on reasonably available, public surrogate country data, 
specifically, Indonesian import statistics from the Global Trade Atlas 
(``GTA''). See Volume II of the Petition, at 8-12 and Exhibits II-6 and 
II-7; see also Supplement to the AD Petition, at Supplemental Exhibit 
II-B. Petitioner excluded from these import statistics imports from 
countries previously determined by the Department to be NME countries. 
Petitioner also excluded import statistics from India, the Republic of 
Korea and Thailand, as the Department has previously excluded prices 
from these countries because they maintain broadly available, non-
industry-specific export subsidies. See Volume II of the Petition, at 
Exhibit II-7. In addition, Petitioner made currency conversions, where 
necessary, based on the POI-average rupiah/U.S. dollar exchange rate, 
as reported on the Department's Web site. See Volume II of the 
Petition, at 8 and Exhibit II-6. Petitioner determined labor costs 
using the labor consumption, in hours, derived from the Surrogate 
Domestic Producer's experience. See Volume II of the Petition, at 8 and 
Exhibit II-5. For purposes of initiation, the Department determines 
that the surrogate values used by Petitioner are reasonably available 
and, thus, acceptable for purposes of initiation.
    Petitioner determined energy and utility costs using the usage 
rates derived from the Surrogate Domestic Producer's experience. See 
Volume II of the Petition, at 10 and Exhibit II-6. However, when 
constructing the NV of the subject merchandise, Petitioner did not 
individually incorporate the diesel fuel, electricity, and water inputs 
into the normal value calculation, because Petitioner could not 
segregate energy costs from the surrogate financial statements, and so 
accounted for the diesel fuel, electricity, and water costs in the 
calculation of surrogate financial ratios. Id. This is consistent with 
the Department's recent decision in Citric Acid and Certain Citrate 
Salts From the People's Republic of China: Final Affirmative 
Determination of Sales at Less Than Fair Value, 74 FR 16838 (April 13, 
2009), and accompanying Issues and Decision Memorandum at Comment 2. 
See Volume II of the Petition, at 11 and Exhibit II-6; see also 
Supplement to the AD Petition, at Supplemental Exhibit II-B.
    Petitioner determined labor costs using data from Chapter 5B of the 
International Labour Organization's database to calculate a simple 
average of industry-specific wage rates from a basket of countries that 
are economically comparable to the PRC and are significant exporters of 
the like merchandise. See Supplement to the AD Petition at 3, and 
Supplemental Exhibit II-C; see also Letter regarding the Petition for 
the Imposition of Antidumping and Countervailing Duties on Imports of 
Multilayered Wood Flooring From the People's Republic of China: 
Supplemental Questions, dated October 27, 2010.
    Petitioner determined packing costs using consumption rates derived 
from the Surrogate Domestic Producer's experience, valued using data 
from the GTA. See Volume II of the Petition, at 12 and Exhibits II-6 
and II-7.
    Petitioner based factory overhead, selling, general and 
administrative expenses, and profit on data from PT Tirta Mahakam 
Resources, Tbk., an Indonesian manufacturer of multilayered wood 
flooring, for the 2009 fiscal year. See Volume II of the Petition, at 
11-12 and Exhibit II-12.

Fair-Value Comparisons

    Based on the data provided by Petitioner, there is reason to 
believe that imports of multilayered wood flooring from the PRC are 
being, or are likely to be, sold in the United States at less than fair 
value. Based on a comparison of U.S. prices and NV calculated in 
accordance with section 773(c) of the Act, as described above, the 
estimated dumping margins for multilayered wood flooring from the PRC 
range from 194.49 percent to 280.60 percent. See Initiation Checklist 
and Supplement to the AD Petition at Exhibit II-B.

Initiation of Antidumping Investigation

    Based upon the examination of the Petition on multilayered wood 
flooring from the PRC, the Department finds the Petition meets the 
requirements of section 732 of the Act. Therefore, we are initiating an 
antidumping duty investigation to determine whether imports of 
multilayered wood flooring from the PRC are being, or are likely to be, 
sold in the United States at less than fair value. In accordance with 
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 140 
days after the date of this initiation.

Targeted Dumping Allegations

    On December 10, 2008, the Department issued an interim final rule 
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the 
regulatory provisions governing the targeted dumping analysis in 
antidumping duty investigations, and the corresponding regulation 
governing the deadline for targeted dumping allegations, 19 CFR 
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing 
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930 
(December 10, 2008). The Department stated that ``withdrawal will allow 
the Department to exercise the discretion intended by the statute and, 
thereby, develop a practice that will allow interested parties to 
pursue all statutory avenues of relief in this area.'' Id. at 74931.
    In order to accomplish this objective, if any interested party 
wishes to make a targeted dumping allegation in this investigation 
pursuant to section 777A(d)(1)(B) of the Act, such allegation is due no 
later than 45 days before the scheduled date of the preliminary 
determination.

Respondent Selection

    For this investigation, the Department will request quantity and 
value information from known exporters and producers identified with 
complete contact information in the Petition. The quantity and value 
data received from NME exporters/producers will be used as the basis to 
select the mandatory respondents.
    The Department requires that the respondents submit a response to 
both the quantity and value questionnaire and the separate-rate 
application by the

[[Page 70718]]

respective deadlines in order to receive consideration for separate-
rate status. See Circular Welded Austenitic Stainless Pressure Pipe 
from the People's Republic of China: Initiation of Antidumping Duty 
Investigation, 73 FR 10221, 10225 (February 26, 2008); Initiation of 
Antidumping Duty Investigation: Certain Artist Canvas From the People's 
Republic of China, 70 FR 21996, 21999 (April 28, 2005). On the date of 
the publication of this initiation notice in the Federal Register, the 
Department will post the quantity and value questionnaire along with 
the filing instructions on the Import Administration Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html, and a response to the 
quantity and value questionnaire is due no later than December 3, 2010. 
Also, the Department will send the quantity and value questionnaire to 
those PRC companies identified in Volume I of the Petition, at Exhibit 
I-6.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.

Separate Rates Application

    In order to obtain separate-rate status in NME investigations, 
exporters and producers must submit a separate-rate status application. 
See Policy Bulletin 05.1: Separate-Rates Practice and Application of 
Combination Rates in Antidumping Investigations involving Non-Market 
Economy Countries, dated April 5, 2005 (``Policy Bulletin''), available 
on the Department's Web site at http://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in processing the separate-rate 
applications in previous antidumping duty investigations, we have 
modified the application for this investigation to make it more 
administrable and easier for applicants to complete. See, e.g., 
Initiation of Antidumping Duty Investigation: Certain New Pneumatic 
Off-the-Road Tires From the People's Republic of China, 72 FR 43591, 
43594-95 (August 6, 2007). The specific requirements for submitting the 
separate-rate application in this investigation are outlined in detail 
in the application itself, which will be available on the Department's 
Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the 
date of publication of this initiation notice in the Federal Register. 
The separate-rate application will be due 60 days after publication of 
this initiation notice. For exporters and producers who submit a 
separate-rate status application and subsequently are selected as 
mandatory respondents, these exporters and producers will no longer be 
eligible for consideration for separate rate status unless they respond 
to all parts of the questionnaire as mandatory respondents. As noted in 
the ``Respondent Selection'' section above, the Department requires 
that respondents submit a response to both the quantity and value 
questionnaire and the separate rate application by the respective 
deadlines in order to receive consideration for separate-rate status.

Use of Combination Rates in an NME Investigation

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in this 
investigation. The Policy Bulletin states:

    {W{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that the Department will 
now assign in its NME investigations will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the weighted-average of the individually calculated rates. 
This practice is referred to as the application of ``combination 
rates'' because such rates apply to specific combinations of 
exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the 
firm in question and produced by a firm that supplied the exporter 
during the period of investigation.

See Policy Bulletin at 6 (emphasis added).

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public versions of the Petition have been 
provided to the representatives of the Government of the PRC. Because 
of the large number of producers/exporters identified in the Petition, 
the Department considers the service of the public version of the 
Petition to the foreign producers/exporters satisfied by the delivery 
of the public version to the Government of the PRC, consistent with 19 
CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, no later than December 6, 
2010, whether there is a reasonable indication that imports of 
multilayered wood flooring from the PRC are materially injuring, or 
threatening material injury to a U.S. industry. A negative ITC 
determination will result in the investigation being terminated; 
otherwise, this investigation will proceed according to statutory and 
regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: November 10, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I--Scope of the Investigation

    Multilayered wood flooring is composed of an assembly of two or 
more layers or plies of wood veneer(s) \7\ in combination with a 
core. The several layers, along with the core, are glued or 
otherwise bonded together to form a final assembled product. 
Multilayered wood flooring is often referred to by other terms, 
e.g., ``engineered wood flooring'' or ``plywood flooring.'' 
Regardless of the particular terminology, all products that meet the 
description set forth herein are intended for inclusion within the 
definition of subject merchandise.
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    \7\ A ``veneer'' is a thin slice of wood, rotary cut, sliced or 
sawed from a log, bolt or flitch. Veneer is referred to as a ply 
when assembled.
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    All multilayered wood flooring is included within the definition 
of subject merchandise, without regard to: Dimension (overall 
thickness, thickness of face ply, thickness of back ply, thickness 
of core, and thickness of inner plies; width; and length); wood 
species used for the face, back and inner veneers; core composition; 
and face grade. Multilayered wood flooring included within the 
definition of subject merchandise may be unfinished (i.e., without a 
finally finished surface to protect the face veneer from wear and 
tear) or ``prefinished'' (i.e., a coating applied to the face 
veneer, including, but not exclusively, oil or oil-modified or 
water-based polyurethanes, ultra-violet light cured polyurethanes, 
wax, epoxy-ester finishes, moisture-cured urethanes and acid-curing 
formaldehyde finishes.) The veneers may be also soaked in an 
acrylic-impregnated finish. All multilayered wood flooring is 
included within the definition of subject merchandise regardless of 
whether the face (or back) of the product is smooth, wire brushed, 
distressed by any method or multiple methods, or hand-scraped. In 
addition, all multilayered wood flooring is included within the 
definition of subject merchandise regardless of whether or not it is 
manufactured with any interlocking or connecting mechanism (for 
example, tongue-and-groove construction or locking joints). All 
multilayered wood flooring is included within the definition of the 
subject merchandise regardless of whether the product meets a 
particular industry or similar standard.

[[Page 70719]]

    The core of multilayered wood flooring may be composed of a 
range of materials, including but not limited to hardwood or 
softwood veneer, particleboard, medium-density fiberboard (MDF), 
high-density fiberboard (HDF), stone and/or plastic composite, or 
strips of lumber placed edge-to-edge.
    Multilayered wood flooring products generally, but not 
exclusively, may be in the form of a strip, plank, or other 
geometrical patterns (e.g., circular, hexagonal). All multilayered 
wood flooring products are included within this definition 
regardless of the actual or nominal dimensions or form of the 
product.
    Specifically excluded from the scope are cork flooring and 
bamboo flooring, regardless of whether any of the sub-surface layers 
of either flooring are made from wood. Also excluded is laminate 
flooring. Laminate flooring consists of a top wear layer sheet not 
made of wood, a decorative paper layer, a core-layer of high-density 
fiberboard, and a stabilizing bottom layer.
    Imports of the subject merchandise are provided for under the 
following subheadings of the Harmonized Tariff Schedule of the 
United States (HTSUS): 4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.2510; 4412.31.2520; 4412.31.4040; 4412.31.4050; 
4412.31.4060; 4412.31.4070; 4412.31.5125; 4412.31.5135; 
4412.31.5155; 4412.31.5165; 4412.31.3175; 4412.31.6000; 
4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0560; 
4412.32.2510; 4412.32.2520; 4412.32.3125; 4412.32.3135; 
4412.32.3155; 4412.32.3165; 4412.32.3175; 4412.32.3185; 
4412.32.5600; 4412.39.1000; 4412.39.3000; 4412.39.4011; 
4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 
4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059; 
4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5010; 
4412.39.5030; 4412.39.5050; 4412.94.1030; 4412.94.1050; 
4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3131; 
4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100; 
4412.94.5100; 4412.94.6000; 4412.94.7000; 4412.94.8000; 
4412.94.9000; 4412.94.9500; 4412.99.0600; 4412.99.1020; 
4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 
4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 
4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5710; 
4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 
4412.99.9500; 4418.71.2000; 4418.71.9000; 4418.72.2000; and 
4418.72.9500.
    In addition, imports of subject merchandise may enter the U.S. 
under the following HTSUS subheadings: 4409.10.0500; 4409.10.2000; 
4409.29.0515; 4409.29.0525; 4409.29.0535; 4409.29.0545; 
4409.29.0555; 4409.29.0565; 4409.29.2530; 4409.29.2550; 
4409.29.2560; 4418.71.1000; 4418.79.0000; and 4418.90.4605.
    While HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the subject merchandise is 
dispositive.
[FR Doc. 2010-29119 Filed 11-17-10; 8:45 am]
BILLING CODE 3510-DS-P