[Federal Register Volume 89, Number 1 (Tuesday, January 2, 2024)]
[Notices]
[Pages 57-59]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28843]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-839]


Mattresses From Indonesia: Preliminary Negative Countervailing 
Duty Determination and Alignment of Final Determination With the Final 
Antidumping Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are not being provided to 
producers and exporters of mattresses from Indonesia. The period of 
investigation (POI) is January 1, 2022, through December 31, 2022. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable January 2, 2024.

FOR FURTHER INFORMATION CONTACT: Natasia Harrison or Harrison Tanchuck, 
AD/CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1240 or (202) 
482-7421, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on August 23, 2023.\1\ On October 5, 2023, Commerce 
postponed the preliminary determination until December 26, 2023.\2\
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    \1\ See Mattresses from Indonesia: Initiation of Countervailing 
Duty Investigation, 88 FR 57412 (August 23, 2023) (Initiation 
Notice).
    \2\ See Mattresses from Indonesia: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 88 FR 69132 
(October 5, 2023).
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    For a complete description of events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\3\ A 
list of topics discussed in the Preliminary Decision Memorandum is 
included as Appendix II to this notice. The Preliminary 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 Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Negative Determination of the Countervailing Duty Investigation of 
Mattresses from Indonesia,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

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

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ We received 
comments concerning the scope of the concurrent antidumping duty (AD) 
investigations of mattresses as it appeared in the Initiation 
Notice.\6\ We are currently evaluating the scope comments filed by the 
interested parties and intend to issue our preliminary decision 
regarding the scope of the AD and CVD investigations prior to or 
concurrently with the AD preliminary determinations. We will 
incorporate the scope decisions from the AD investigations into the 
scope of the final CVD determination for this investigation, after 
considering any relevant comments submitted in scope case and rebuttal 
briefs.\7\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 88 FR at 57413.
    \6\ See Preliminary Decision Memorandum at 5-6.
    \7\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.

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[[Page 58]]

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each subsidy program found to be 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\8\ For a full description of the methodology underlying our 
preliminary determination, see the Preliminary Decision Memorandum.
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    \8\ 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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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final CVD determination in this 
investigation with the final determination in the concurrent AD 
investigations of mattresses from Bosnia and Herzegovina, Bulgaria, 
Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, 
Spain, and Taiwan based on a request made by the petitioners.\9\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled to be 
issued no later than May 8, 2024, unless postponed.
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    \9\ The petitioners are: Brooklyn Bedding LLC; Carpenter Co.; 
Corsicana Mattress Company; Future Foam, Inc.; FXI, Inc.; Kolcraft 
Enterprises, Inc.; Leggett & Platt, Incorporated; Serta Simmons 
Bedding, LLC; Southerland, Inc.; Tempur Sealy International; the 
International Brotherhood of Teamsters; and the United Steel, Paper 
and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union, AFL-CIO. See Petitioners' 
Letter, ``Mattress Petitioners' Request for Alignment of the 
Countervailing Duty Investigation with Concurrent Antidumping Duty 
Investigations,'' dated November 13, 2023.
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Preliminary Determination

    For this preliminary determination, Commerce calculated de minimis 
estimated countervailable subsidies for each individually examined 
producer(s)/export(s) of the subject merchandise. Consistent with 
section 703(b)(4)(A) of the Act, Commerce is disregarding the de 
minimis rates and we preliminarily determine that countervailable 
subsidies are not being provided to producers/exporters of the subject 
merchandise in Indonesia.
    Commerce preliminarily determines that the following estimated net 
countervailable subsidy rates exist:

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                  Company                       Subsidy rate (percent)
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PT Grantec Jaya Indonesia \10\.............  0.20 (de minimis).
PT Zinus Global Indonesia..................  0.03 (de minimis).
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    Consistent with section 703(d) of the Act, Commerce has not 
calculated an estimated weighted-average subsidy rate for all other 
producers and exporters because it has not made an affirmative 
preliminary determination.
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    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce preliminarily determines PT Grantec Jaya Indonesia is 
cross-owned with PT Ecos Jaya Indonesia.
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Disclosure

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

Suspension of Liquidation

    Because Commerce preliminarily determines that no countervailable 
subsidies are being provided to the production or exportation of 
subject merchandise, Commerce will not direct U.S. Customs and Border 
Protection to suspend liquidation of any such entries.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the AD and CVD investigations. The deadlines to submit scope 
case and rebuttal briefs will be provided in the preliminary scope 
decision memorandum. For all scope case and rebuttal briefs, parties 
must file identical documents simultaneously on the records of the 
ongoing AD and CVD investigations. No new factual information or 
business proprietary information may be included in either scope case 
or rebuttal briefs.
    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance. 
Interested parties will be notified of the timeline for the submission 
of case briefs and written comments at a later date. Rebuttal briefs, 
limited to issues raised in the case briefs, may be filed not later 
than five days after the date for filing case briefs.\11\ Interested 
parties who submit case briefs or rebuttal briefs in this proceeding 
must submit: (1) a table of contents listing each issue; and (2) a 
table of authorities.\12\
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    \11\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \12\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\13\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\14\
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    \13\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \14\ See APO and Service Final Rule.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\15\
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    \15\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S.

[[Page 59]]

International Trade Commission (ITC) of its determination. If the final 
determination is affirmative, the ITC will determine before the later 
of 120 days after the date of this preliminary determination or 45 days 
after the final determination whether imports of mattresses from 
Indonesia are materially injuring, or threaten material injury to, the 
U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: December 26, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are all types of 
youth and adult mattresses. The term ``mattress'' denotes an 
assembly of materials that at a minimum includes a ``core,'' which 
provides the main support system of the mattress, and may consist of 
innersprings, foam, other resilient filling, or a combination of 
these materials. Mattresses also may contain: (1) ``upholstery,'' 
the material between the core and the top panel of the ticking on a 
single-sided mattress, or between the core and the top and bottom 
panel of the ticking on a double-sided mattress; and/or (2) 
``ticking,'' the outermost layer of fabric or other material (e.g., 
vinyl) that encloses the core and any upholstery, also known as a 
cover.
    The scope of this investigation is restricted to only ``adult 
mattresses'' and ``youth mattresses.'' ``Adult mattresses'' are 
frequently described as ``twin,'' ``extra-long twin,'' ``full,'' 
``queen,'' ``king,'' or ``California king'' mattresses. ``Youth 
mattresses'' are typically described as ``crib,'' ``toddler,'' or 
``youth'' mattresses. All adult and youth mattresses are included 
regardless of size and size description or how they are described 
(e.g., frameless futon mattress and tri-fold mattress).
    The scope encompasses all types of ``innerspring mattresses,'' 
``non-innerspring mattresses,'' and ``hybrid mattresses.'' 
``Innerspring mattresses'' contain innersprings, a series of metal 
springs joined together in sizes that correspond to the dimensions 
of mattresses. Mattresses that contain innersprings are referred to 
as ``innerspring mattresses'' or ``hybrid mattresses.'' ``Hybrid 
mattresses'' contain two or more support systems as the core, such 
as layers of both memory foam and innerspring units.
    ``Non-innerspring mattresses'' are those that do not contain any 
innerspring units. They are generally produced from foams (e.g., 
polyurethane, memory (viscoelastic), latex foam, gel infused 
viscoelastic (gel foam), thermobonded polyester, polyethylene) or 
other resilient filling.
    Mattresses covered by the scope of this investigation may be 
imported independently, as part of furniture or furniture mechanisms 
(e.g., convertible sofa bed mattresses, sofa bed mattresses imported 
with sofa bed mechanisms, corner group mattresses, day-bed 
mattresses, roll-away bed mattresses, high risers, trundle bed 
mattresses, crib mattresses), or as part of a set (in combination 
with a ``mattress foundation''). ``Mattress foundations'' are any 
base or support for a mattress. Mattress foundations are commonly 
referred to as ``foundations,'' ``boxsprings,'' ``platforms,'' and/
or ``bases.'' Bases can be static, foldable, or adjustable. Only the 
mattress is covered by the scope if imported as part of furniture, 
with furniture mechanisms, or as part of a set, in combination with 
a mattress foundation.
    Excluded from the scope of this investigation are ``futon'' 
mattresses. A ``futon'' is a bi-fold frame made of wood, metal, or 
plastic material, or any combination thereof, that functions as both 
seating furniture (such as a couch, love seat, or sofa) and a bed. A 
``futon mattress'' is a tufted mattress, where the top covering is 
secured to the bottom with thread that goes completely through the 
mattress from the top through to the bottom, and it does not contain 
innersprings or foam. A futon mattress is both the bed and seating 
surface for the futon.
    Also excluded from the scope are airbeds (including inflatable 
mattresses) and waterbeds, which consist of air- or liquid-filled 
bladders as the core or main support system of the mattress.
    Also excluded is certain multifunctional furniture that is 
convertible from seating to sleeping, regardless of filler material 
or components, where such filler material or components are 
upholstered, integrated into the design and construction of, and 
inseparable from, the furniture framing, and the outermost layer of 
the multifunctional furniture converts into the sleeping surface. 
Such furniture may, and without limitation, be commonly referred to 
as ``convertible sofas,'' ``sofabeds,'' ``sofa chaise sleepers,'' 
``futons,'' ``ottoman sleepers,'' or a like description.
    Also excluded from the scope of this investigation are any 
products covered by the existing antidumping duty orders on 
uncovered innerspring units from the People's Republic of China, 
South Africa, and the Socialist Republic of Vietnam. See Uncovered 
Innerspring Units from the People's Republic of China, South Africa, 
and Socialist Republic of Vietnam: Continuation of Antidumping Duty 
Orders, 84 FR 55285 (October 16, 2019).
    Also excluded from the scope of this investigation are bassinet 
pads with a nominal length of less than 39 inches, a nominal width 
of less than 25 inches, and a nominal depth of less than 2 inches.
    Additionally, also excluded from the scope of this investigation 
are ``mattress toppers.'' A ``mattress topper'' is a removable 
bedding accessory that supplements a mattress by providing an 
additional layer that is placed on top of a mattress. Excluded 
mattress toppers have a height of four inches or less.
    The products subject to this investigation are currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings: 9404.21.0010, 9404.21.0013, 9404.21.0095, 
9404.29.1005, 9404.29.1013, 9404.29.1095, 9404.29.9085, 
9404.29.9087, and 9404.29.9095. Products subject to this 
investigation may also enter under HTSUS subheadings: 9401.41.0000, 
9401.49.0000, and 9401.99.9081. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written 
description of the merchandise subject to this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Injury Test
VI. Subsidies Valuation
VII. Benchmark Interest Rates and Discount Rates
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2023-28843 Filed 12-29-23; 8:45 am]
BILLING CODE 3510-DS-P