[Federal Register Volume 88, Number 174 (Monday, September 11, 2023)]
[Notices]
[Pages 62319-62322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19490]


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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 Results and Partial Rescission of Countervailing Duty 
Administrative Review; 2020-2021

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies were provided to producers and exporters of 
wood mouldings and millwork products (millwork products) from the 
People's Republic of China (China) during the period of review (POR) 
from June 12, 2020, through December 31, 2021. Commerce is also 
rescinding the review with respect to five companies that had no 
reviewable entries during the POR.

DATES: Applicable September 11, 2023.

FOR FURTHER INFORMATION CONTACT: Faris Montgomery or Craig Matney, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1537 or (202) 482-2429, 
respectively.

SUPPLEMENTARY INFORMATION: 

[[Page 62320]]

Background

    On March 7, 2023, Commerce published the Preliminary Results.\1\ On 
July 17, 2023, we released the final verification report and invited 
parties to comment on the Preliminary Results.\2\ For a detailed 
description of the events that occurred subsequent to the Preliminary 
Results, see the Issues and Decision Memorandum.\3\ On June 14, 2023, 
in accordance with section 751(a)(3)(A) of the Tariff Act of 1930, as 
amended (the Act), Commerce extended the deadline for issuing the final 
results until September 1, 2023.\4\
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    \1\ See Wood Mouldings and Millwork Products From the People's 
Republic of China: Preliminary Results and Partial Rescission of 
Countervailing Duty Administrative Review; 2020-2021, 88 FR 14122 
(March 7, 2023) (Preliminary Results) and accompanying Preliminary 
Decision Memorandum (PDM).
    \2\ See Memoranda, ``Verification of the Questionnaire Responses 
of Fujian Yinfeng Imp & Exp Trading Co., Ltd. and Its Cross-Owned 
Companies'' dated July 17, 2023 (Yinfeng Verification Report); 
``Verification of the Questionnaire Responses of Fujian Jinquan 
Trade Co., Ltd. and Its Cross-Owned Producer'' dated July 17, 2023 
(Jinquan Verification Report); and ``Case Brief Schedule,'' dated 
July 17, 2023.
    \3\ See Memorandum, ``Wood Mouldings and Millwork Products from 
the People's Republic of China: Issues and Decision Memorandum for 
the Final Results of the 2020-2021 Countervailing Duty 
Administrative Review,'' dated concurrently with, and hereby adopted 
by, this notice (Issues and Decision Memorandum).
    \4\ See Memorandum, ``Extension of Deadline for the Final 
Results of Countervailing Duty Administrative Review; 2020-2021,'' 
dated June 14, 2023.
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Scope of the Order <SUP>5</SUP>
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    \5\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Countervailing Duty Order, 86 FR 9484 (February 
16, 2021) (Order).
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    The merchandise subject to the Order is wood mouldings and millwork 
products from China, which are primarily classifiable under subheadings 
4409.10.0500, 4409.10.1020, 4409.10.1040, 4409.10.1060, 4409.10.1080, 
4409.10.4010, 4409.10.4090, 4409.10.4500, 4409.10.5000, 4409.10.9020, 
4409.10.9040, 4409.22.0590, 4409.22.1000, 4409.22.4000, 4409.22.5000, 
4409.22.5020, 4409.22.5040, 4409.22.5060, 4409.22.5090, 4409.22.9000, 
4409.22.9020, 4409.22.9030, 4409.22.9045, 4409.22.9060, 4409.22.9090, 
4409.29.0665, 4409.29.1100, 4409.29.4100, 4409.29.5100, 4409.29.9100, 
4412.99.5115, 4412.99.9500, 4418.91.9095, and 4421.91.9780 of the of 
the Harmonized Tariff Schedule of the United States (HTSUS). WMMP may 
also enter under HTSUS numbers 4409.10.6000, 4409.10.6500, 
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4412.41.0000, 
4412.42.0000, 4412.49.0000, 4412.91.5115, 4412.92.5215, 4412.99.9700, 
4418.20.4000, 4418.20.8030, 4418.20.8060, 4418.91.9195, 4418.99.9095, 
4418.99.9195, 4421.91.9880, 4421.99.9780, and 4421.99.9880. While the 
HTSUS subheading and ASTM specification are provided for convenience 
and for customs purposes, the written description of the subject 
merchandise is dispositive. A full description of the scope of the 
Order is contained in the Issues and Decision Memorandum.

Rescission of Administrative Review, in Part

    In the Preliminary Results, Commerce stated that we intended to 
further examine the rescission of this administrative review with 
respect to five companies, Aventra Inc., China Cornici Co., Ltd., Omni 
One Co., Limited, Raoping HongRong Handicrafts Co., Ltd. (d.b.a. Chen 
Chui Global Corp), and Shenzhen Xinjintai Industrial Co., Ltd., that 
submitted comments claiming that they had entries of subject 
merchandise during the POR in response to Commerce's memorandum stating 
our intent to rescind the administrate review with respect to these 
companies in the absence of evidence of suspended entries during the 
POR.\6\ We find that these companies have no reviewable entries of 
subject merchandise during the POR. As a result, we are rescinding this 
review, pursuant to 19 CFR 351.213(d)(3), with respect to these 
companies.
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    \6\ See Preliminary Results PDM at 5-6; see also Memorandum, 
``Notice of Intent to Rescind Review, In Part,'' dated June 29, 
2022; Aventra Inc.'s Letter, ``Comments on Notice of Intent to 
Rescind Review, In Part,'' dated July 13, 2022; China Cornici Co., 
Ltd.'s Letter, ``Comments on Notice of Intent to Rescind Review, In 
Part,'' dated July 13, 2022; Omni One Co., Limited's Letter, 
``Comments on Notice of Intent to Rescind Review, In Part,'' July 
13, 2022; Raoping HongRong Handicrafts Co., Ltd.'s Letter, 
``Comments on Notice of Intent to Rescind Review, In Part,'' dated 
July 13, 2022; Shenzhen Xinjintai Industrial Co., Ltd.'s Letter, 
``Comments on Notice of Intent to Rescind Review, In Part,'' dated 
July 13, 2022.
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    For further information regarding this determination, see ``Final 
Rescission of Administrative Review, In Part'' section in the Issues 
and Decision Memorandum.

Analysis of Comments Received

    All issues raised by interested parties in briefs are addressed in 
the Issues and Decision Memorandum. A list of the issues addressed in 
the Issues and Decision Memorandum is provided in Appendix I of this 
notice. 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 https://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

    Based on our review of the record and comments received from 
interested parties regarding our Preliminary Results, we made certain 
revisions to the countervailable subsidy rate calculations for Fujian 
Jinquan Trade Co., Ltd. (Jinquan) and Fujian Yinfeng Imp & Exp Trading 
Co., Ltd. (Yinfeng).\7\ As a result of the changes to Jinquan and 
Yinfeng's program rates, the final rate for the 23 non-selected 
companies under review also changed.\8\ These changes are explained in 
the Issues and Decision Memorandum.
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    \7\ See Memoranda, ``Final Results Calculations for Fujian 
Jinquan Trade Co., Ltd.,'' and ``Final Results Calculations for 
Fujian Yinfeng Imp & Exp Trading Co., Ltd.'' dated concurrently with 
this notice.
    \8\ The 23 non-selected companies under review are listed in 
Appendix III of this notice.
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Methodology

    Commerce conducted this review in accordance with section 
751(a)(1)(A) of the Act. For each of the subsidy programs found 
countervailable, we find that there is a subsidy, i.e., a government-
provided financial contribution that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\9\ The Issues and Decision 
Memorandum contains a full description of the methodology underlying 
Commerce's conclusions, including any determination that relied upon 
the use of adverse facts available pursuant to sections 776(a) and (b) 
of the Act.
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    \9\ 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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Verification

    Pursuant to section 782(i) of the Act, and 19 CFR 351.307(b)(iv), 
we conducted verification of the questionnaire responses of Jinquan and 
Yinfeng.\10\
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    \10\ See Yinfeng Verification Report and Jinquan Verification 
Report.
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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not address the

[[Page 62321]]

establishment of a rate to be applied to companies not selected for 
individual examination when Commerce limits its examination in an 
administrative review pursuant to section 777A(c)(2) of the Act. 
Generally, Commerce looks to section 705(c)(5) of the Act, which 
provides instructions for determining the all-others rate in an 
investigation, for guidance when calculating the rate for companies 
which were not selected for individual examination in an administrative 
review. Under section 705(c)(5)(A) of the Act, the all-others rate is 
normally an amount equal to the weighted average of the countervailable 
subsidy rates established for exporters and producers individually 
investigated, excluding any zero or de minimis countervailable subsidy 
rates, and any rates determined entirely on the basis of facts 
available.
    As stated above, there are 23 companies for which a review was 
requested and not rescinded, and which were not selected as mandatory 
respondents or found to be cross-owned with a mandatory respondent. For 
these non-selected companies, because the rates calculated for 
mandatory respondents Jinquan and Yinfeng were above de minimis and not 
based entirely on facts available, we applied a final subsidy rate 
based on a weighted average of the rates calculated for the two 
mandatory respondents using the publicly ranged sales data they 
submitted on the record. This methodology is consistent with our 
practice for establishing an all-others subsidy rate pursuant to 
section 705(c)(5)(A) of the Act. For a list of the non-selected 
companies, see Appendix III to this notice.

Final Results of Review

    We find the countervailable subsidy rates for the mandatory and 
non-selected respondents under review for the period of June 12, 2020, 
through December 31, 2021, to be as follows:
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    \11\ Jinquan is cross-owned with Fujian Province Youxi County 
Baiyuan Wood Machining Co., Ltd.
    \12\ The following companies are cross-owned with Yinfeng: 
Fujian Province Youxi City Mangrove Wood Machining Co., Ltd.; and 
Fujian Province Youxi City Mangrove Wood Machining Co., Ltd. Youxi 
Xicheng Branch. Fujian Province.
    \13\ See Appendix III.

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                                                           Subsidy rate
                                           Subsidy rate    for January 1
                                          for June 12 to    to December
            Producer/exporter              December 31,      31, 2021
                                           2020 (percent    (percent ad
                                            ad valorem)      valorem)
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Fujian Jinquan Trade Co., Ltd.\11\......           10.60           15.96
Fujian Yinfeng Imp & Exp Trading Co.,               6.63            6.46
 Ltd.\12\...............................
Non-Selected Companies Under Review \13\            7.64            8.89
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Disclosure

    We intend to disclose the calculations performed in connection with 
the final results of review to parties in this proceeding within five 
days of the date of publication of this notice in the Federal Register 
in accordance with 19 CFR 351.224(b).

Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.212(b), 
Commerce has determined, and U.S Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries of 
subject merchandise in accordance with the final results of this 
review, for the above-listed companies at the applicable ad valorem 
assessment rates listed for the corresponding time periods (i.e., June 
12, 2020, to December 31, 2020, and January 1, 2021, to December 31, 
2021). For entries made during the gap period (i.e., on or after 
October 10, 2020, through February 16, 2021), we will continue to 
instruct CBP to liquidate the entries without regard to countervailing 
duties pursuant to section 703(d) of the Act. Commerce intends to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends 
to instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for 2021, the second year covered by the 
POR, for each of the respective companies listed above on shipments of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this administrative review.\14\ For all non-reviewed firms subject to 
the Order, we will instruct CBP to continue to collect cash deposits of 
estimated countervailing duties at the most recent company-specific or 
all-others rate applicable to the company, as appropriate. These cash 
deposit requirements, effective upon publication of the final results 
of review, shall remain in effect until further notice.
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    \14\ See Comment 3 in the Issues and Decision Memorandum for 
further discussion.
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Administrative Protective Order (APO)

    This notice also serves as a reminder to parties subject to an APO 
of their responsibility concerning the return or destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3), which continues to govern business proprietary 
information in this segment of the proceeding. Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and terms of an APO is a violation which 
is subject to sanction.

Notification to Interested Parties

    We are issuing and publishing these final results of administrative 
review and notice in accordance with sections 751(a)(1) and 777(i) of 
the Act and 19 CFR 351.221(b)(5).

    Dated: September 1, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Final Rescission of Review, in Part
IV. Scope of the Order
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Application of Adverse 
Inferences

[[Page 62322]]

VII. Subsidies Valuation Information
VIII. Analysis of Programs
IX. Discussion of the Issues
    Comment 1: Whether Commerce Should Change Its Preliminary 
Findings Regarding the Export Buyer's Credit Program (EBCP)
    Comment 2: Whether Commerce Should Rescind the Administrative 
Review for Certain Companies
    Comment 3: Whether Commerce Should Average the Respondents' 2020 
and 2021 Total Ad Valorem Subsidy Rates for Use as a Cash Deposit 
Rate
    Comment 4: Whether Certain Purchases of Upstream Inputs Should 
Have Been Reported and/or Countervailed
    Comment 5: Whether Commerce Should Apply Adverse Facts Available 
(AFA) to Jinquan for Its Cross-Owned Producer's Unreported Purchases 
of Primer for Less Than Adequate Remuneration (LTAR) and Wood Glues 
and Adhesives (Adhesives) for LTAR
    Comment 6: Whether Commerce Should Rely on Certain Inland 
Freight Data in Calculating Benchmarks for Inputs for LTAR
    Comment 7: Whether the GOC's Provision of Electricity for LTAR 
Is Specific
    Comment 8: Whether Individually Owned Input Suppliers Are 
Government Authorities
    Comment 9: Whether Commerce Should Use the Respondents' Revised 
Sales Data From Verification in the Final Results
    Comment 10: Whether Commerce Should Make Changes to Its 
Benchmark Calculations for Ocean Freight
    A. Whether Commerce Should Use Certain Ocean Freight Data in 
Calculating Benchmarks
    B. Whether Commerce Should Adjust Its Averaging Methodology
    Comment 11: Whether Commerce Should Rely on Certain Land 
Benchmark Data
    Comment 12: Whether Commerce Should Adjust Its Calculation of 
Electricity for LTAR Benefits
    Comment 13: Whether Commerce Should Correct Certain Errors in 
Yinfeng's Preliminary Rate Calculation
    Comment 14: Whether Commerce Should Correct Errors in Jinquan's 
Preliminary Calculation of Benefit for Land for LTAR
X. Recommendation

Appendix II

Companies for Which the Review Is Rescinded Due to No Reviewable/
Suspended Entries

1. Aventra Inc.
2. China Cornici Co., Ltd.
3. Omni One Co., Limited
4. Raoping HongRong Handicrafts Co., Ltd. (d.b.a. Chen Chui Global 
Corp.)
5. Shenzhen Xinjintai Industrial Co., Ltd.

Appendix III

Table of Rates for Non Selected Companies Under Review

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                                                                 Net countervailable       Net countervailable
                                                              subsidy rate for June 12  subsidy rate for January
                      Producer/exporter                         to December 31, 2020     1 to December 31, 2021
                                                                (percent ad valorem)      (percent ad valorem)
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Anji Huaxin Bamboo & Wood Products Co., Ltd.................                     7.64                      8.89
Baixing Import and Export Trading Co., Ltd. Youxi Fujian....                     7.64                      8.89
Bel Trade Wood Industrial Co................................                     7.64                      8.89
Bel Trade Wood Industrial Co., Ltd. Youxi Fujian............                     7.64                      8.89
Cao County Hengda Wood Products Co., Ltd....................                     7.64                      8.89
Fotiou Frames Limited.......................................                     7.64                      8.89
Fujian Hongjia Craft Products Co., Ltd......................                     7.64                      8.89
Fujian Shunchang Shengsheng Wood Industry Limited Company...                     7.64                      8.89
Fujian Wangbin Decorative Material Co., Ltd.................                     7.64                      8.89
Fujian Youxi Best Arts & Crafts Co., Ltd....................                     7.64                      8.89
Fujian Zhangping Kimura Forestry Products Co., Ltd..........                     7.64                      8.89
Homebuild Industries Co., Ltd...............................                     7.64                      8.89
Jiangsu Chensheng Forestry Development Co., Ltd.............                     7.64                      8.89
Jiangsu Wenfeng Wood Co., Ltd...............................                     7.64                      8.89
Longquan Jiefeng Trade Co., Ltd.............................                     7.64                      8.89
Nanping Huatai Wood & Bamboo Co., Ltd.......................                     7.64                      8.89
Putian Yihong Wood Industry Co., Ltd........................                     7.64                      8.89
Shaxian Hengtong Wood Industry Co., Ltd.....................                     7.64                      8.89
Shaxian Shiyiwood, Ltd......................................                     7.64                      8.89
Shuyang Kevin International Co., Ltd........................                     7.64                      8.89
Wuxi Boda Bamboo & Wood Industrial Co., Ltd.................                     7.64                      8.89
Zhangzhou Wangjiamei Industry & Trade Co., Ltd..............                     7.64                      8.89
Zhangzhou Yihong Industrial Co., Ltd........................                     7.64                      8.89
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[FR Doc. 2023-19490 Filed 9-8-23; 8:45 am]
BILLING CODE 3510-DS-P