[Federal Register Volume 75, Number 41 (Wednesday, March 3, 2010)]
[Notices]
[Pages 9581-9586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4422]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-890]


Wooden Bedroom Furniture from the People's Republic of China: 
Preliminary Results of Antidumping Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: March 3, 2010.
SUMMARY: On August 20, 2009, the Department of Commerce 
(``Department'') initiated a new shipper review of the antidumping duty 
order on wooden bedroom furniture from the People's Republic of China 
(``PRC'') covering sales of subject merchandise made by Zhejiang Tianyi 
Scientific & Educational Equipment Co., Ltd. (``Zhejiang Tianyi'') and 
Rise Furniture Co., Ltd. (``Rise Furniture'').\1\ On December 29, 2009, 
the Department rescinded the new shipper review with respect to Rise 
Furniture.\2\
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    \1\ See Wooden Bedroom Furniture from the People's Republic of 
China: Initiation of Antidumping New Shipper Reviews, 74 FR 43096 
(August 26, 2009) (``Initiation Notice'').
    \2\ See Wooden Bedroom Furniture from the People's Republic of 
China: Rescission of Antidumping Duty New Shipper Review, 75 FR 339 
(January 5, 2010).
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    The Department preliminary determines that Zhejiang Tianyi has not 
made sales at less than normal value (``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 June 30, 2009 (the period of review or POR), 
for which the importer-specific assessment rates are above de minimis.

FOR FURTHER INFORMATION CONTACT: Howard Smith or Rebecca Pandolph, AD/
CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
5193 or (202) 482-3627, respectively.

SUPPLEMENTARY INFORMATION: The notice announcing the antidumping duty 
order on wooden bedroom furniture from the PRC was published on January 
4, 2005.\3\ On July 31, 2009, the Department received timely requests 
for new shipper reviews from Rise Furniture and Zhejiang Tianyi. On 
August 20, 2009, the Department initiated new shipper reviews of Rise 
Furniture and Zhejiang Tianyi. See Initiation Notice.
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    \3\ See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture 
From the People's Republic of China, 70 FR 329 (January 4, 2005).
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    On August 24, 2009, the Department issued an antidumping duty 
questionnaire to Rise Furniture and Zhejiang Tianyi. On November 10, 
2009, Rise Furniture withdrew its request for a new shipper review and, 
accordingly, the Department rescinded the new shipper review with 
respect to Rise Furniture. From September 2009 through January 2010, 
the Department received timely questionnaire and supplemental 
questionnaire responses from Zhejiang Tianyi.
    On October 28, 2009, 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, Indonesia, the Philippines, Colombia, 
Thailand, and Peru.\4\ On November 2, 2009, the Department released the 
Policy Memorandum to interested parties and provided parties with an 
opportunity to submit comments regarding the selection of a surrogate 
country in the instant review.\5\ On November 16, 2009, the American 
Furniture Manufacturers Committee for Legal Trade and Vaughan-Bassett 
Furniture Company, Inc. (collectively, ``Petitioners'') provided 
publicly-available information to value factors of production 
(``FOP'').\6\ On December 29, 2009, Zhejiang Tianyi provided publicly-
available data to value its FOP.\7\
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    \4\ See Memorandum entitled, ``Request for a List of Surrogate 
Countries for a New Shipper Review of the Antidumping Duty Order on 
Wooden Bedroom Furniture (``WBF'') from the People's Republic of 
China (``PRC''),'' dated October 28, 2009 (``Policy Memorandum'').
    \5\ See Letter from Howard Smith, Program Manager, Office 4, to 
All Interested Parties, ``2009 New Shipper Reviews of Wooden Bedroom 
Furniture from the People's Republic of China (PRC),'' dated 
November 2, 2009.
    \6\ See Letter from Petitioners regarding, ``Wooden Bedroom 
Furniture From the People's Republic of China: Submission of 
Publicly Available Information to Value the Factors of Production,'' 
dated November 16, 2009 (``Petitioners' Surrogate Value 
Submission'').
    \7\ See Letter from Zhejiang Tianyi regarding, ``Wooden Bedroom 
Furniture From the People's Republic of China: Surrogate Value Data 
,'' dated December 29, 2009 (``Zhejiang Tianyi's Surrogate Value 
Submission'').
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    As explained in the memorandum from the Deputy Assistant Secretary 
for Import Administration, the Department has exercised its discretion 
to toll deadlines for the duration of the closure of the Federal 
Government from February 5, through February 12, 2010. Thus, all 
deadlines in this segment of the proceeding have been extended by seven 
days. The revised deadline for the preliminary results of this review 
is now February 23, 2010. See Memorandum to the Record from Ronald 
Lorentzen, DAS for Import Administration, regarding ``Tolling of 
Administrative Deadlines As a Result of the Government Closure During 
the Recent Snowstorm,'' dated February 12, 2010.

Period of Review

    The POR for Zhejiang Tianyi is January 1, 2009 through June 30, 
2009.

Scope of the Order

    The product covered by the order is wooden bedroom furniture. 
Wooden bedroom furniture 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

[[Page 9582]]

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,\8\ highboys,\9\ lowboys,\10\ chests of drawers,\11\ chests,\12\ 
door chests,\13\ chiffoniers,\14\ hutches,\15\ and armoires;\16\ (6) 
desks, computer stands, filing cabinets, book cases, or writing tables 
that are attached to or incorporated in the subject merchandise; and 
(7) other bedroom furniture consistent with the above list.
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    \8\ A chest-on-chest is typically a tall chest-of-drawers in two 
or more sections (or appearing to be in two or more sections), with 
one or two sections mounted (or appearing to be mounted) on a 
slightly larger chest; also known as a tallboy.
    \9\ A highboy is typically a tall chest of drawers usually 
composed of a base and a top section with drawers, and supported on 
four legs or a small chest (often 15 inches or more in height).
    \10\ A lowboy is typically a short chest of drawers, not more 
than four feet high, normally set on short legs.
    \11\ A chest of drawers is typically a case containing drawers 
for storing clothing.
    \12\ A chest is typically a case piece taller than it is wide 
featuring a series of drawers and with or without one or more doors 
for storing clothing. The piece can either include drawers or be 
designed as a large box incorporating a lid.
    \13\ A door chest is typically a chest with hinged doors to 
store clothing, whether or not containing drawers. The piece may 
also include shelves for televisions and other entertainment 
electronics.
    \14\ A chiffonier is typically a tall and narrow chest of 
drawers normally used for storing undergarments and lingerie, often 
with mirror(s) attached.
    \15\ A hutch is typically an open case of furniture with shelves 
that typically sits on another piece of furniture and provides 
storage for clothes.
    \16\ An armoire is typically a tall cabinet or wardrobe 
(typically 50 inches or taller), with doors, and with one or more 
drawers (either exterior below or above the doors or interior behind 
the doors), shelves, and/or garment rods or other apparatus for 
storing clothes. Bedroom armoires may also be used to hold 
television receivers and/or other audio-visual entertainment 
systems.
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    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;\17\ (9) jewelry armories;\18\ (10) cheval 
mirrors;\19\ (11) certain metal parts;\20\ (12) mirrors that do not 
attach to, incorporate in, sit on, or hang over a dresser if they are 
not designed and marketed to be sold in conjunction with a dresser as 
part of a dresser-mirror set; (13) upholstered beds\21\ and (14) toy 
boxes.\22\
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    \17\ As used herein, bentwood means solid wood made pliable. 
Bentwood is wood that is brought to a curved shape by bending it 
while made pliable with moist heat or other agency and then set by 
cooling or drying. See Customs' Headquarters' Ruling Letter 043859, 
dated May 17, 1976.
    \18\ Any armoire, cabinet or other accent item for the purpose 
of storing jewelry, not to exceed 24 in width, 18 in depth, and 49 
in height, including a minimum of 5 lined drawers lined with felt or 
felt-like material, at least one side door (whether or not the door 
is lined with felt or felt-like material), with necklace hangers, 
and a flip-top lid with inset mirror. See Issues and Decision 
Memorandum from Laurel LaCivita to Laurie Parkhill, Office Director, 
Concerning Jewelry Armoires and Cheval Mirrors in the Antidumping 
Duty Investigation of Wooden Bedroom Furniture from the People's 
Republic of China, dated August 31, 2004. See also Wooden Bedroom 
Furniture From the People's Republic of China: Final Changed 
Circumstances Review, and Determination to Revoke Order in Part,71 
FR 38621 (July 7, 2006).
    \19\ Cheval mirrors are any framed, tiltable mirror with a 
height in excess of 50 that is mounted on a floor-standing, hinged 
base. Additionally, the scope of the order excludes combination 
cheval mirror/jewelry cabinets. The excluded merchandise is an 
integrated piece consisting of a cheval mirror, i.e., a framed 
tiltable mirror with a height in excess of 50 inches, mounted on a 
floor-standing, hinged base, the cheval mirror serving as a door to 
a cabinet back that is integral to the structure of the mirror and 
which constitutes a jewelry cabinet line with fabric, having 
necklace and bracelet hooks, mountings for rings and shelves, with 
or without a working lock and key to secure the contents of the 
jewelry cabinet back to the cheval mirror, and no drawers anywhere 
on the integrated piece. The fully assembled piece must be at least 
50 inches in height, 14.5 inches in width, and 3 inches in depth. 
See Wooden Bedroom Furniture From the People's Republic of China: 
Final Changed Circumstances Review and Determination To Revoke Order 
in Part, 72 FR 948 (January 9, 2007).
    \20\ Metal furniture parts and unfinished furniture parts made 
of wood products (as defined above) that are not otherwise 
specifically named in this scope (i.e., wooden headboards for beds, 
wooden footboards for beds, wooden side rails for beds, and wooden 
canopies for beds) and that do not possess the essential character 
of wooden bedroom furniture in an unassembled, incomplete, or 
unfinished form. Such parts are usually classified under the 
Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheading 9403.90.7000.
    \21\ Upholstered beds that are completely upholstered, i.e., 
containing filling material and completely covered in sewn genuine 
leather, synthetic leather, or natural or synthetic decorative 
fabric. To be excluded, the entire bed (headboards, footboards, and 
side rails) must be upholstered except for bed feet, which may be of 
wood, metal, or any other material and which are no more than nine 
inches in height from the floor. See Wooden Bedroom Furniture from 
the People's Republic of China: Final Results of Changed 
Circumstances Review and Determination to Revoke Order in Part, 72 
FR 7013 (February 14, 2007).
    \22\ To be excluded the toy box must: (1) Be wider than it is 
tall; (2) have dimensions within 16 inches to 27 inches in height, 
15 inches to 18 inches in depth, and 21 inches to 30 inches in 
width; (3) have a hinged lid that encompasses the entire top of the 
box; (4) not incorporate any doors or drawers; (5) have slow-closing 
safety hinges; (6) have air vents; (7) have no locking mechanism; 
and (8) comply with American Society for Testing and Materials 
(``ASTM'') standard F963-03. Toy boxes are boxes generally designed 
for the purpose of storing children's items such as toys, books, and 
playthings. See Wooden Bedroom Furniture from the People's Republic 
of China: Final Results of Changed Circumstances Review and 
Determination to Revoke Order in Part, 74 FR 8506 (February 25, 
2009). Further, as determined in the scope ruling memorandum 
``Wooden Bedroom Furniture from the People's Republic of China: 
Scope Ruling on a White Toy Box,'' dated July 6, 2009, the 
dimensional ranges used to identify the toy boxes that are excluded 
from the wooden bedroom furniture order apply to the box itself 
rather than the lid.
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    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.'' 
This order covers all WBF 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.

Bona Fide Sales Analysis

    Consistent with the Department's practice, the Department 
investigated the bona fide nature of the sales made by Zhejiang Tianyi 
for this review. In evaluating whether or not a single sale in a new 
shipper review is commercially reasonable, and therefore bona fide, the 
Department considers, inter alia, such factors as: (1) the timing of 
the sale; (2) the price and quantity; (3)

[[Page 9583]]

the expenses arising from the transaction; (4) whether the goods were 
resold at a profit; and (5) whether the transaction was made on an 
arm's-length basis. See, e.g., Tianjin Tiancheng Pharmaceutical Co., 
Ltd. v. United States, 366 F. Supp. 2d 1246, 1250 (CIT 2005). 
Accordingly, the Department considers a number of factors in its bona 
fide analysis, ``all of which may speak to the commercial realities 
surrounding an alleged sale of subject merchandise.'' See Hebei New 
Donghua Amino Acid Co., Ltd. v. United States, 374 F. Supp. 2d 1333, 
1342 (CIT 2005) (citing Fresh Garlic From the People's Republic of 
China: Final Results of Antidumping Administrative Review and 
Rescission of New Shipper Review, 67 FR 11283 (March 13, 2002)).
    The Department preliminarily finds that the sale of subject 
merchandise made by Zhejiang Tianyi was made on a bona fide basis. 
Specifically, the Department preliminarily finds that: (1) the timing 
of the sale by itself does not indicate that the sale might not be bona 
fide; (2) the price and quantity of the sale was within the range of 
the prices and quantities of other entries of subject merchandise from 
the PRC into the United States; (3) Zhejiang Tianyi and its customer(s) 
did not incur any extraordinary expenses arising from the transaction; 
(4) the new shipper sale was made between unaffiliated parties at arm's 
length; and (5) the merchandise was resold at a profit.\23\ Therefore, 
the Department has preliminarily found that Zhejiang Tianyi's sale of 
subject merchandise to the United States was bona fide for purposes of 
this new shipper review.
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    \23\ See Memorandum to Abdelali Elouaradia, Director, AD/CVD 
Operations, Office 4, regarding, ``Antidumping Duty New Shipper 
Review of Wooden Bedroom Furniture from the People's Republic of 
China: Bona fide Sales Analysis for Zhejiang Tianyi Scientific & 
Educational Equipment Co., Ltd.,'' dated February 23, 2010.
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Non-Market Economy Country Status

    In every antidumping case conducted by the Department involving the 
PRC, the PRC has been treated as a non-market economy (``NME'') 
country.\24\ In accordance with section 771(18)(C)(i) of the Tariff Act 
of 1930, as amended (the ``Act''), any determination that a foreign 
country is an NME country shall remain in effect until revoked by the 
administering authority. None of the parties to this proceeding has 
contested such treatment. Accordingly, the Department calculated NV in 
accordance with section 773(c) of the Act, which applies to NME 
countries.
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    \24\ See, e.g., Tapered Roller Bearings and Parts Thereof, 
Finished and Unfinished, From the People's Republic of China: 
Preliminary Results of 2001-2002 Administrative Review and Partial 
Rescission of Review, 68 FR 7500(February 14, 2003) (unchanged in 
the final results).
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Separate Rates

    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 de jure and de facto 
government control over export activities. The Department analyzes each 
entity exporting the subject merchandise under a test arising from the 
Final Determination of Sales at Less Than Fair Value: Sparklers From 
the People's Republic of China, 56 FR 20588 (May 6, 1991) 
(``Sparklers''), as further developed in Notice of Final Determination 
of Sales at Less Than Fair Value: Silicon Carbide From the People's 
Republic of China, 59 FR 22585, 22586-7 (May 2, 1994) (``Silicon 
Carbide''). However, if the Department determines that a company is 
wholly foreign-owned or located in a market economy, then a separate 
rate analysis is not necessary to determine whether it is independent 
from government control. See Notice of Final Determination of Sales at 
Less Than Fair Value: Creatine Monohydrate From the People's Republic 
of China, 64 FR 71104, 71104-05 (December 20, 1999) (where the 
respondent was wholly foreign-owned and, thus, qualified for a separate 
rate).
    Zhejiang Tianyi is a wholly Chinese-owned company and is located in 
the PRC. Therefore, the Department has analyzed whether it has 
demonstrated the absence of both de jure and de facto government 
control over its export activities.

A. Absence of De Jure Control

    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (1) an absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) legislative 
enactments decentralizing control of companies; and (3) other formal 
measures by the government decentralizing control of companies. See 
Sparklers, 56 FR at 20589.
    The evidence provided by Zhejiang Tianyi supports a preliminary 
finding of de jure absence of government control based on the 
following: (1) an absence of restrictive stipulations associated with 
Zhejiang Tianyi's business and export licenses; (2) applicable 
legislative enactments decentralizing control over PRC companies; and 
(3) formal measures by the government decentralizing control of PRC 
companies.

B. Absence of De Facto Control

    The Department considers four factors in evaluating whether each 
respondent is subject to de facto government control of its export 
functions: (1) whether the export prices are set by or are subject to 
the approval of a government agency; (2) whether the respondent has 
authority to negotiate and sign contracts and other agreements; (3) 
whether the respondent has autonomy from the government in making 
decisions regarding the selection of management; and (4) whether the 
respondent retains the proceeds of its export sales and makes 
independent decisions regarding disposition of profits or financing of 
losses. See Silicon Carbide, 59 FR at 22586-7; see also Notice of Final 
Determination of Sales at Less Than Fair Value: Furfuryl Alcohol From 
the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995). The 
Department has determined that an analysis of de facto control is 
critical in determining whether respondents are subject to a degree of 
government control which would preclude the Department from assigning 
separate rates.
    The evidence provided by Zhejiang Tianyi supports a preliminary 
finding of de facto absence of government control over its export 
activities based on the following: (1) Zhejiang Tianyi sets its own 
export prices independent of the government and without the approval of 
a government authority; (2) Zhejiang Tianyi's general manager has the 
authority to negotiate and bind the company in an agreement; (3) 
Zhejiang Tianyi maintains autonomy from the government in making 
decisions regarding the selection of management; and (4) Zhejiang 
Tianyi retains the proceeds of its export sales and makes independent 
decisions regarding disposition of profits or financing of losses.\25\
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    \25\ See Section A response at 11-16.
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    The evidence placed on the record by Zhejiang Tianyi demonstrates 
an absence of de jure and de facto government control, in accordance 
with the criteria identified in Sparklers and Silicon Carbide. 
Accordingly, the

[[Page 9584]]

Department has preliminarily granted a separate rate to Zhejiang 
Tianyi.

Surrogate Country

    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, Indonesia, 
the Philippines, Colombia, Thailand, and Peru as being at a level of 
economic development comparable to the PRC.\26\ Neither Petitioners nor 
Zhejiang Tianyi provided comments on the selection of a surrogate 
country. However, both parties submitted publicly-available Philippine 
data for valuing Zhejiang Tianyi's FOP.\27\ On January 15, 2010, the 
Department placed information regarding the selection of a surrogate 
country on the record.\28\
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    \26\ See Policy Memorandum.
    \27\ See Petitioners' Surrogate Value Submission and Zhejiang 
Tianyi's Surrogate Value Submission.
    \28\ See Memorandum entitled, ``2009 New Shipper Review of the 
Antidumping Duty Order on Wooden Bedroom Furniture from the People's 
Republic of China,'' dated January 15, 2010.
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    Based on the information on the record, we find that the 
Philippines is a significant producer of comparable merchandise. 
Specifically, The Furniture Industry in the Philippines report 
indicates that in 2006, Philippine manufacturers produced furniture 
valued at $813 million and the Philippines exported furniture valued at 
$279 million.\29\ The State of the Sector Report on Philippine 
Furniture 2006 indicates that wooden furniture has replaced rattan as 
the most commonly used material and accounted for 51[percnt] of all 
Philippine furniture exports.\30\ In addition, both The Furniture 
Industry in the Philippines and State of the Sector Report on 
Philippine Furniture 2006 describes the furniture sector as comprised 
of approximately 15,000 manufacturers and 800,000 workers.\31\ Thus, 
record evidence shows that the Philippines is a significant producer of 
merchandise that is comparable to the merchandise under review.
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    \29\ See attachment to the memorandum entitled, ``2009 New 
Shipper Review of the Antidumping Duty Order on Wooden Bedroom 
Furniture from the People's Republic of China,'' dated January 15, 
2010.
    \30\ See id.
    \31\ See id.
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    With respect to data considerations in selecting a surrogate 
country, both Petitioners and Zhejiang Tianyi have submitted publicly-
available Philippine data for valuing Zhejiang Tianyi's FOP. In 
addition, the Department used the Philippines as the primary surrogate 
country in the second and third administrative reviews of this 
proceeding.\32\ Therefore, based on its experience, the Department 
finds that the Philippines has, in the past, provided reliable, 
publicly-available data for valuing the FOP.
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    \32\ See Wooden Bedroom Furniture From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative 
Review, Preliminary Results of New Shipper Review and Partial 
Rescission of Administrative Review, 73 FR 8273, 8277-78 (February 
13, 2008) (unchanged in the final results) and Wooden Bedroom 
Furniture From the People's Republic of China: Preliminary Results 
of Antidumping Duty Administrative and New Shipper Reviews and 
Partial Rescission of Review, 74 FR 6372, 6376 (February 9, 2009) 
(unchanged in the final results).
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    Thus, the Department has preliminarily selected the Philippines as 
the 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.\33\ 
Accordingly, we have selected the Philippines as the surrogate country 
and, accordingly, have calculated NV using Philippine prices to value 
Zhejiang Tianyi's FOP.\34\ In accordance with 19 CFR 351.301(c)(3)(ii), 
interested parties may submit publicly-available information to value 
the FOP until 20 days after the date of publication of the preliminary 
results.\35\
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    \33\ See Policy Bulletin at 4.
    \34\ See Memorandum entitled, ``2009 New Shipper Review of 
Wooden Bedroom Furniture from the People's Republic of China: 
Surrogate Value Memorandum for the Preliminary Results,'' dated 
February 23, 2010 (``Factor Valuation Memorandum'')
    \35\ In accordance with 19 CFR 351.301(c)(1), for the final 
results of this new shipper review, interested parties may submit 
factual information to rebut, clarify, or correct factual 
information submitted by an interested party less than ten days 
before, on, or after, the applicable deadline for submission of such 
factual information. However, the Department notes that 19 CFR 
351.301(c)(1) permits new information only insofar as it rebuts, 
clarifies, or corrects information placed on the record. The 
Department generally will not accept the submission of additional, 
previously absent-from-the-record alternative surrogate value 
information pursuant to 19 CFR 351.301(c)(1). See Glycine from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and Final Rescission, in Part, 72 FR 58809 
(October 17, 2007) and accompanying Issues and Decision Memorandum 
at Comment 2.
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Fair Value Comparisons

    In accordance with section 777(A)(d) of the Act, to determine 
whether Zhejiang Tianyi sold wooden bedroom furniture to the United 
States at less than NV, the Department compared Zhejiang Tianyi's 
export price (``EP'') of wooden bedroom furniture to the NV of wooden 
bedroom furniture, as described in the ``Export Price,'' and ``Normal 
Value'' sections of this notice.

Export Price

    In accordance with section 772(a) of the Act, the Department 
considered the U.S. prices of sales to the United States made by 
Zhejiang Tianyi to be EPs because the first sale to an unaffiliated 
party was made before the date of importation and the use of 
constructed export price was not otherwise warranted.
    The Department calculated EP based on the price to unaffiliated 
purchaser(s) in the United States. The Department deducted movement 
expenses from the gross unit U.S. sales price in accordance with 
section 772(c) of the Act. These movement expenses include foreign 
inland freight from the plant/warehouse to the port of exit, and 
foreign brokerage and handling. For a detailed description of these 
adjustments, see the Zhejiang Tianyi analysis memorandum entitled, 
``Wooden Bedroom Furniture from the People's Republic of China: 
Preliminary Results Analysis Memorandum for Zhejiang Tianyi Scientific 
& Educational Equipment Co., Ltd.,'' (``Zhejiang Tianyi Analysis 
Memorandum''), dated February 23, 2010.

Normal Value

    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)

[[Page 9585]]

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 Zhejiang Tianyi 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.\36\ Where the 
facts developed in either U.S. or third-country countervailing duty 
findings include the existence of subsidies that appear to be used 
generally (in particular, broadly available, non-industry specific 
export subsidies), the Department will have reason to believe or 
suspect that prices of the inputs from the country granting the 
subsidies may be subsidized.\37\
---------------------------------------------------------------------------

    \36\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China; Final Results of 
1998-1999 Administrative Review, Partial Rescission of Review, and 
Determination Not To Revoke Order in Part, 66 FR 1953 (January 10, 
2001) (``TRBs 1998-1999''), and accompanying Issues and Decision 
Memorandum at Comment 1.
    \37\ See TRBs 1998-1999 at Comment 1; see also China Nat'l. 
Machinery Imp. & Exp. Corp. v. United States, 293 F. Supp. 2d 1334, 
1338-39 (Ct. Int'l Trade 2003).
---------------------------------------------------------------------------

    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.\38\
---------------------------------------------------------------------------

    \38\ See H.R. Rep. 100-576, at 590 (1988), reprinted in 1988 
U.S.C.C.A.N. 1547, 1623-24.
---------------------------------------------------------------------------

Factor Valuations

    In accordance with section 773(c) of the Act, we calculated NV 
based on FOP reported by Zhejiang Tianyi for the POR. To calculate NV, 
the Department multiplied the reported per-unit factor quantities by 
publicly-available Philippine surrogate values (except as noted below). 
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 (i.e., where the sales terms for the market-
economy inputs were not delivered to the factory). This adjustment is 
in accordance with the decision of the Federal Circuit in Sigma Corp. 
v. United States, 117 F.3d 1401, 1407-08 (Fed. Cir. 1997).
    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 basis to value the following inputs: 
abrasive cloth, bolt, drawer guide, glue, leg pad with nail, leveling 
adjuster, nuts, paints, pine wood, plywood, pull knob for drawer, 
sandpaper, screw, staple, stopper, washer, wooden pin, non-adjustable 
wrench, and packing materials (i.e., corrugated paper, polyfoam, EPE 
sheet, and adhesive tape). The Philippines NSO is the only data source 
on the record that provides data on a net weight basis, which is the 
same basis as reported by Zhejiang Tianyi in reporting its FOP. For a 
detailed description of all surrogate values used to value the reported 
FOP, see Factor Valuation Memorandum.
    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 as published in the International Financial Statistics of the 
International Monetary Fund.
    Consistent with 19 CFR 351.408(c)(3), we valued labor using the PRC 
regression-based wage rate as reported on Import Administration's home 
page, Import Library, Expected Wages of Selected NME Countries, revised 
in December 2009, available at http://ia.ita.doc.gov/wages/index.html. 
Because this regression-based wage rate does not separate the labor 
rates into different skill levels or types of labor, we have applied 
the same wage rate to all skill levels and types of labor reported by 
the respondent. If the NME wage rates are updated by the Department 
prior to issuance of the final results, we will use the updated wage 
rate in the final results. See Factor Valuation Memorandum.
    We valued electricity using contemporaneous Philippine data from 
The Cost of Doing Business in Camarines Sur, which is available at the 
Philippine government's website for the province: http://www.camarinessur.gov.ph. This data pertained only to industrial 
consumption. See Factor Valuation Memorandum.
    We calculated the value of domestic brokerage and handling using 
brokerage fees on the website of the Republic of the Philippines Tariff 
Commission, http://www.tariffcommission.gov.ph/cao01-2001.html.
    We calculated the surrogate value for truck freight using 
Philippine data from two sources: 1) The Cost of Doing Business in 
Camarines Sur, available at the Philippine government's website for the 
province: http://www.camarinessur.gov.ph; and 2) a news article from 
the Manila Times entitled ``Government Mulls Cut in Export Target.''
    We valued factory overhead, selling, general, and administrative 
expenses (``SG&A''), and profit, using the audited financial statements 
for the fiscal year ending December 31, 2008, from the following 
producers: Tequesta International Inc.; Insular Rattan and Native 
Products Corp.; Horizon International Manufacturing, Inc.; Arkane 
International Corporation; and Casa Cebuana Incorada, 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 as a percentage of the total raw materials, labor and 
energy (``ML&E'') costs; SG&A as a percentage of ML&E plus overhead 
(i.e., cost of manufacture); and the profit rate as a percentage of the 
cost of manufacture plus SG&A. For further discussion, see Factor 
Valuation Memorandum.

Currency Conversion

    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.

Preliminary Results of Review

    The Department preliminarily determines that the following 
weighted-average dumping margin exists for the period January 1, 2009, 
through June 30, 2009:

------------------------------------------------------------------------
                                                            Weighted-
                        Exporter                          average margin
                                                            (percent)
------------------------------------------------------------------------
Zhejiang Tianyi Scientific & Educational Equipment Co.,              0
 Ltd...................................................
------------------------------------------------------------------------


[[Page 9586]]

Disclosure

    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).

Public Comment

    Interested parties may submit written comments no later than 30 
days after the date of publication of these preliminary results of 
review. See 19 CFR 351.309(c). Rebuttals to written comments must be 
limited to the issues raised in the written comments and may be filed 
no later than five days after the deadline for filing case briefs. See 
19 CFR 351.309(d). Further, parties submitting written comments and 
rebuttal comments are requested to provide the Department with an 
additional copy of those comments on diskette. Any interested party may 
request a hearing within 30 days of publication of these preliminary 
results. See 19 CFR 351.310(c). If requested, a hearing normally will 
be held two days after the scheduled date for submission of rebuttal 
comments. See 19 CFR 351.310(d). Parties should confirm by telephone 
the date, time, and location of the hearing two days before the 
scheduled date.
    The Department will issue the final results of this new shipper 
review, 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. See 19 CFR 
351.214(i)(2).

Assessment Rates

    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 this 
review. For assessment purposes, the Department will calculate 
importer-specific (or customer) ad valorem duty assessment rates based 
on the ratio of the total amount of the dumping margins calculated for 
the examined sales to the total entered value of those same sales. The 
Department will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review if any importer-specific 
assessment rate calculated in the final results of this review is above 
de minimis. The Department intends to issue assessment instructions to 
CBP 15 days after the date of publication of the final results of 
review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this new shipper review for 
shipments of subject merchandise from Zhejiang Tianyi 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) For subject 
merchandise produced and exported by Zhejiang Tianyi, the cash deposit 
rate will be that established in the final results of this review; (2) 
for subject merchandise exported by Zhejiang Tianyi but not produced by 
Zhejiang Tianyi, the cash deposit rate will continue to be the PRC-wide 
rate of 216.01 percent; (3) for subject merchandise produced by 
Zhejiang Tianyi, and exported by any party but itself, the cash deposit 
rate will be the rate applicable to the exporter. If the cash deposit 
rate calculated in the final results is zero or de minimis, no cash 
deposit will be required for those entries of subject merchandise both 
produced and exported by Zhejiang Tianyi. These cash deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification to Interested Parties

    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).

    Dated: February 23, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-4422 Filed 3-2-10; 8:45 am]
BILLING CODE 3510-DS-S