31244 Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Notices 

after the date of publication of these 

final results of review. 

The Department clarified its 

‘‘automatic assessment’’ regulation on 

May 6, 2003 (68 FR 23954). This 

clarification will apply to entries of 

subject merchandise during the period 

of review produced by the company 

included in these final results of review 

for which the reviewed company did 

not know their merchandise was 

destined for the United States. In such 

instances, we will instruct CBP to 

liquidate unreviewed entries at the allothers rate from the investigation if 

there is no rate for the intermediate 

company involved in the transaction. 

For a full discussion of this clarification, 

see Antidumping and Countervailing 

Duty Proceedings: Assessment of 

Antidumping Duties, 68 FR 23954 (May 

6, 2003). 

Cash Deposit Requirements 

The following deposit requirements 

will be effective upon publication of the 

final results of this administrative 

review for all shipments of subject 

merchandise entered, or withdrawn 

from warehouse, for consumption on or 

after the publication date of these final 

results, as provided by section 

751(a)(2)(C) of the Act: (1) For the 

company covered by this review, the 

cash deposit rate will be the rate listed 

above; (2) for merchandise exported by 

producers or exporters not covered in 

this review but covered in a previous 

segment of this proceeding, the cash 

deposit rate will continue to be the 

company-specific rate published in the 

most recent final results in which that 

producer or exporter participated; (3) if 

the exporter is not a firm covered in this 

review or in any previous segment of 

this proceeding, but the producer is, the 

cash deposit rate will be that established 

for the producer of the merchandise in 

these final results of review or in the 

most recent final results in which that 

producer participated; and, (4) if neither 

the exporter nor the producer is a firm 

covered in this review or in any 

previous segment of this proceeding, the 

cash deposit rate will be 7.00 percent, 

the all-others rate established in the less 

than fair value investigation. See Notice 

of Amended Final Determination and 

Antidumping Duty Order: Certain 

Welded Stainless Steel Pipe From the 

Republic of Korea, 60 FR 10064 

(February 23, 1995). 

Notification to Importers 

This notice also serves as a final 

reminder to importers of their 

responsibility under 19 CFR 351.402(f) 

of the Department’s regulations to file a 

certificate regarding the reimbursement 

of antidumping duties prior to 

liquidation of the relevant entries 

during this review period. Failure to 

comply with this requirement could 

result in the Secretary’s presumption 

that reimbursement of antidumping 

duties occurred, and in the subsequent 

assessment of double antidumping 

duties. 

Notification Regarding Administrative 

Protective Orders 

This notice is the only reminder to 

parties subject to the administrative 

protective order (APO) of their 

responsibility concerning the return or 

destruction of proprietary information 

disclosed under the APO in accordance 

with 19 CFR 351.305(a)(3) of the 

Department’s regulations. 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 the terms of an 

APO is a sanctionable violation. 

We are issuing and publishing these 

final results and this notice in 

accordance with sections 751(a)(1) and 

777(i)(1) of the Act. 

Dated: June 22, 2009. 

Ronald K. Lorentzen, 

Acting Assistant Secretary for Import 

Administration. 

Appendix I—Issues in Decision 

Memorandum 

Comment 1: Whether to Apply an 

Alternative Cost-Averaging Methodology 

a. Legal Framework and Case Precedent 

b. Significance of Cost Changes 

c. Linkage Between Costs and Sales Prices 

d. The Elimination of the Window Period 

for Price-to-Price Comparisons 

e. The Cost Recovery Test 

Comment 2: Application of the Major Input 

Rule 

Comment 3: The Treatment of Gains 

Associated With Foreign Currency Swaps 

Comment 4: The Treatment of Interest 

Income Earned on Retirement and Severance 

Deposits 

Comment 5: Whether the Department 

Should Refrain From Zeroing Negative 

Margins 

Comment 6: Calculation Issues 

[FR Doc. E9–15492 Filed 6–29–09; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–570–890] 

Wooden Bedroom Furniture From the 

People’s Republic of China: 

Preliminary Results of New Shipper 

Review 

AGENCY: Import Administration, 

International Trade Administration, 

Department of Commerce. 

SUMMARY: On September 9, 2008, the 

Department of Commerce (‘‘the 

Department’’) initiated a new shipper 

review (‘‘NSR’’) of the antidumping 

duty order on wooden bedroom 

furniture from the People’s Republic of 

China (‘‘PRC’’) covering sales of subject 

merchandise made by Shanghai Fangjia 

Industry Co., Ltd. (‘‘Fangjia’’). See 

Wooden Bedroom Furniture From the 

People’s Republic of China: Initiation of 

New Shipper Review, 73 FR 52296 

(September 9, 2008) (‘‘Initiation of 

NSR’’). 

The Department preliminarily 

determines that Fangjia 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 of 

review (‘‘POR’’), of January 1, 2008 

through June 30, 2008, for which the 

importer-specific assessment rates are 

above de minimis. 

DATES: Effective Date: June 30, 2009. 

FOR FURTHER INFORMATION CONTACT: Paul 

Stolz or Lori Apodaca, AD/CVD 

Operations, Office 8, Import 

Administration, International Trade 

Administration, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW., Washington, DC 20230; 

telephone: (202) 482–4474 and (202) 

482–4551, respectively. 

Background 

The Department published an 

antidumping duty order on wooden 

bedroom furniture from the PRC on 

January 4, 2005. 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) (‘‘the Order’’). On 

July 11, 2008, Fangjia requested that the 

Department conduct an NSR of its sales 

of subject merchandise during the 

January 1, 2008 through June 30, 2008 

POR. On September 9, 2008, the 

Department initiated an NSR of Fangjia. 

On September 10, 2008, the 

Department issued an antidumping duty 


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1A chest-on-chest is typically a tall chest-ofdrawers 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. 2A 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). 3A lowboy is typically a short chest of drawers, 

not more than four feet high, normally set on short 

legs. 4A chest of drawers is typically a case containing 

drawers for storing clothing. 5A 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. 6A 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. 7A chiffonier is typically a tall and narrow chest 

of drawers normally used for storing undergarments 

and lingerie, often with mirror(s) attached. 8A hutch is typically an open case of furniture 

with shelves that typically sits on another piece of 

furniture and provides storage for clothes. 9An 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 audiovisual entertainment systems. 10As 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. 

11Any 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: Notice of Final Results of Changed 

Circumstances Review and Revocation in Part, 71 

FR 38621 (July 7, 2006). 

12Cheval 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 

lined 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 Results 

of Changed Circumstances Review and 

Determination To Revoke Order in Part, 72 FR 948 

(January 9, 2007). 

13Metal 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. 

14Upholstered 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, 7015 (February 14, 2007). 

15To 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 

Continued 

questionnaire to Fangjia. Fangjia 

submitted its section A questionnaire 

response on October 9, 2008, and 

submitted its sections C and D 

questionnaire responses on November 3, 

2008. The Department subsequently 

issued a supplemental questionnaire to 

Fangjia on March 23, 2009, to which 

Fangjia responded on April 22, 2009. 

On February 27, 2009, the Department 

extended the deadline for the issuance 

of the preliminary results of the NSR 

until June 22, 2009. See Wooden 

Bedroom Furniture from the People’s 

Republic of China: Extension of Time 

for the Preliminary Results of the New 

Shipper Review, 74 FR 8906 (February 

27, 2009). 

Period of Review 

The POR is January 1, 2008, through 

June 30, 2008. 

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, oriented strand board, 

particle board, and fiberboard, with or 

without wood veneers, wood overlays, 

or laminates, with or without non-wood 

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) chestson-chests,1 highboys,2 lowboys,3 chests 

of drawers,4 chests,5 door chests,6

chiffoniers,7 hutches,8 and armoires; 9

(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. 

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; 10

(9) jewelry armoires; 11 (10) cheval 

mirrors; 12 (11) certain metal parts; 13

(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; 14 and (14) toy 

boxes.15


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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. 

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 wooden 

bedroom furniture 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 Analysis 

Consistent with the Department’s 

practice, the Department investigated 

the bona fide nature of the sales made 

by Fangjia for this review. In evaluating 

whether or not a single sale in an NSR 

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) 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’slength 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), 

and accompanying Issues and Decision 

Memorandum). 

The Department preliminarily finds 

that the new shipper sales made by 

Fangjia were made on a bona fide basis. 

Specifically, the Department 

preliminarily finds that: (1) The price 

and quantity of each new shipper sale 

was within the range of the prices and 

quantities of other entries of subject 

merchandise from the PRC into the 

United States during the POR; (2) 

Fangjia and its customer(s) did not incur 

any extraordinary expenses arising from 

the transactions; (3) each new shipper 

sale was made between unaffiliated 

parties at arm’s length; (4) there is no 

record evidence that indicates that each 

new shipper sale was not made based 

on commercial principles; (5) the 

merchandise was resold at a profit; and 

(6) the timing of each of the new shipper 

sales does not indicate the sales were 

made on a non-bona fide basis. See the 

Memorandum titled, ‘‘Antidumping 

Duty New Shipper Review of Wooden 

Bedroom Furniture from the People’s 

Republic of China: Bona Fide Nature of 

the Sale Under Review for Shanghai 

Fangjia Industry Co., Ltd.’’ dated June 

22, 2009. Therefore, the Department has 

preliminarily found that Fangjia’s sales 

of subject merchandise to the United 

States were * * * for purposes of this 

NSR. 

Non-Market Economy Country Status 

In every antidumping case conducted 

by the Department involving the PRC, 

the PRC has been treated as a nonmarket economy (‘‘NME’’) country. See, 

e.g., Brake Rotors From the People’s 

Republic of China: Final Results and 

Partial Rescission of the 2004/2005 

Administrative Review and Notice of 

Rescission of 2004/2005 New Shipper 

Review, 71 FR 66304 (November 14, 

2006). 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. 

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 merchandise 

subject to investigation 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 the Final Determination of 

Sales at Less Than Fair Value: Silicon 

Carbide from the People’s Republic of 

China, 59 FR 22585 (May 2, 1994) 

(‘‘Silicon Carbide’’). See also Policy 

Bulletin 05.1: Separate-Rates Practice 

and Application of Combination Rates 

in Antidumping Investigations 

involving Non-Market Economy 

Countries (April 5, 2005), available at 

http://ia.ita.doc.gov/policy/ at p. 6 

stating: 

[w]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. 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. 

Fangjia is a wholly Chinese-owned 

company and is located in the PRC. 

Therefore, the Department must analyze 

whether it can demonstrate 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) any legislative 

enactments decentralizing control of 

companies; and (3) other formal 

measures by the government 

decentralizing control of companies. See 

Sparklers, 56 FR at 20589. 

Throughout the course of this 

proceeding, Fangjia has placed a 

number of documents on the record to 

demonstrate absence of de jure control 

including: its articles of association, the 


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‘‘Foreign Trade Law of the People’s 

Republic of China’’ and the ‘‘The 

Company Law of the People’s Republic 

of China.’’ See Exhibits 2 and 7 of its 

Section A questionnaire response dated 

October 9, 2008 (‘‘Section A response’’). 

The evidence provided by Fangjia 

supports a preliminary finding of de 

jure absence of government control 

based on the following: (1) An absence 

of restrictive stipulations associated 

with the individual exporters’ business 

and export licenses; (2) there are 

applicable legislative enactments 

decentralizing control of the companies; 

and (3) and there are formal measures 

by the government decentralizing 

control of companies. 

B. Absence of De Facto Control 

Typically 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 

22587; 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. 

In its Section A response, Fangjia 

submitted evidence indicating an 

absence of de facto government control 

over its export activities. The evidence 

placed on the record of this review by 

Fangjia demonstrates an absence of de 

facto government control with respect to 

its exports of the merchandise under 

review, in accordance with the criteria 

identified in Sparklers and Silicon 

Carbide. Specifically, this evidence 

indicates that: (1) Fangjia sets its own 

export prices independent of the 

government and without the approval of 

a government authority; (2) Fangjia 

retains the proceeds from its sales and 

makes independent decisions regarding 

the disposition of profits or financing of 

losses; (3) Fangjia’s general manager has 

the authority to negotiate and bind the 

company in an agreement; (4) Fangjia’s 

management is selected by its owners; 

and (5) there is no restriction on 

Fangjia’s use of export revenues. See 

Section A response at 4–7. Therefore, 

because Fangjia has demonstrated a lack 

of de jure and de facto control, we have 

preliminarily determined it is eligible 

for a separate rate. 

Surrogate Country 

When the Department is reviewing 

imports from an NME country, section 

773(c)(1) of the Act directs it to base NV, 

in most circumstances, on the NME 

producer’s factors of production 

(‘‘FOPs’’), valued in a surrogate market 

economy country or countries 

considered to be appropriate by the 

Department. In accordance with section 

773(c)(4) of the Act, in valuing the 

FOPs, the Department shall utilize, to 

the extent possible, the prices or costs 

of FOPs in one or more market economy 

countries that are: (1) At a level of 

economic development comparable to 

that of the NME country; and (2) 

significant producers of comparable 

merchandise. The sources of the 

surrogate factor values are discussed 

under the ‘‘Normal Value’’ section 

below and in the Memorandum to the 

File, ‘‘New Shipper Review of Wooden 

Bedroom Furniture from the People’s 

Republic of China: Surrogate Values for 

the Preliminary Results,’’ dated June 22, 

2009 (‘‘Factor Valuation 

Memorandum’’). 

The Department has determined that 

India, Indonesia, the Philippines, 

Colombia, and Thailand are comparable 

to the PRC in terms of economic 

development. See the Memorandum 

titled, ‘‘Request for a List of Surrogate 

Countries for a 2008 New Shipper 

Review of the Antidumping Duty Order 

on Wooden Bedroom Furniture from the 

People’s Republic of China,’’ dated 

September 15, 2008. It is the 

Department’s practice to select from 

among these countries based on the 

availability and reliability of data. See 

Department Policy Bulletin No. 04.1: 

Non-Market Economy Surrogate 

Country Selection Process (March 1, 

2004). 

The Department is preliminarily 

selecting the Philippines as the 

surrogate country for the PRC. The 

Philippines is at a level of economic 

development comparable to that of the 

PRC, it is a significant producer of 

comparable merchandise, and the 

Department has reliable, publicly 

available data from the Philippines that 

it can use to value the FOPs. 

Fair Value Comparisons 

To determine whether sales of the 

subject merchandise made by Fangjia to 

the United States were at prices below 

NV, the Department compared Fangjia’s 

export price (‘‘EP’’) to NV, as described 

below. 

Export Price 

In accordance with section 772(a) of 

the Act, the Department calculated the 

EP for sales to the United States for 

Fangjia because the first sale to an 

unaffiliated party was made before the 

date of importation and the use of 

constructed export price (i.e., CEP) was 

not otherwise warranted. The 

Department calculated EP based on the 

price to unaffiliated purchasers in the 

United States. In accordance with 

section 772(c) of the Act, as appropriate, 

the Department deducted from the 

starting price to unaffiliated purchasers 

foreign inland freight, and brokerage 

and handling. For Fangjia, each of these 

services was either provided by an NME 

vendor or paid for using an NME 

currency. Thus, the Department based 

the deduction of these movement 

charges on surrogate values. See Factor 

Valuation Memorandum for details 

regarding the surrogate values for 

movement expenses. 

Normal Value 

Section 773(c)(1) of the Act provides 

that the Department shall determine 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(a) of the Act. See also 19 

CFR 351.408. When determining NV in 

an NME context, the Department will 

base NV on FOPs 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) of the Act, FOPs 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 used FOPs reported by 

respondents for materials, energy, labor 

and packing. 

In accordance with 19 CFR 

351.408(c)(1), the Department will 

normally use publicly available 

information to find an appropriate SV to 

value FOPs, but when a producer 

sources an input from a market 

economy and pays for it in marketVerDate Nov<24>2008 19:55 Jun 29, 2009 Jkt 217001 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 E:\FR\FM\30JNN1.SGM 30JNN1

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31248 Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Notices 

economy currency, the Department may 

value the factor using the actual price 

paid for the input. See Lasko Metal 

Products, Inc. v. United States, 43 F.3d 

1442, 1446 (Fed. Cir. 1994). 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 SVs 

to determine the NV. See Brake Rotors 

From the People’s Republic of China: 

Final Results of Antidumping Duty 

Administrative and New Shipper 

Reviews and Partial Rescission of the 

2005–2006 Administrative Review, 72 

FR 42386 (August 2, 2007) (‘‘Brake 

Rotors’’), and accompanying Issues and 

Decision Memorandum at Comment 1. 

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. See Omnibus Trade and 

Competitiveness Act of 1988, 

Conference Report to Accompany H.R. 

3, H.R. Rep. 100–576, at 590–91 (1988), 

reprinted in 1988 U.S.C.C.A.N. 1547, 

1623–24. It is the Department’s practice 

to find a that there is reason to believe 

or suspect that inputs may be 

subsidized if the facts developed in the 

United States or third country 

countervailing duty findings indicate 

the existence of subsidies that appear to 

be used generally (in particular, broadly 

available, non-industry-specific export 

subsidies). See Brake Rotors and China 

National Machinery Imp. & Exp. Corp. 

v. United States, 293 F. Supp. 2d 1334, 

1338–39 (CIT 2003). The Department 

has reason to believe or suspect that 

prices of inputs from India, Indonesia, 

South Korea, and Thailand may have 

been subsidized. Through other 

proceedings, the Department has 

learned that these countries maintain 

broadly available, non-industry specific 

export subsidies and, therefore, finds it 

reasonable to infer that all exports to all 

markets from these countries may be 

subsidized. See, e.g., Brake Rotors at 

Comment 1. Accordingly, the 

Department has disregarded prices from 

India, Indonesia, South Korea, and 

Thailand in calculating the Philippine 

import-based SVs. 

Factor Valuations 

In accordance with section 773(c) of 

the Act, the Department calculated NV 

based on FOPs reported by respondents 

for the POR. To calculate NV, the 

Department multiplied the reported perunit factor consumption quantities by 

publicly available Philippine SVs 

(except as noted below). In selecting the 

SVs, 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 SVs a surrogate 

freight cost using the shorter of the 

reported distance from the domestic 

supplier to the factory or the distance 

from the nearest seaport to the 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 U.S. Court of Appeals for 

the Federal Circuit in Sigma Corp. v. 

United States, 117 F.3d 1401, 1407–08 

(Fed. Cir. 1997). The Department 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 U.S. Federal Reserve 

Bank. For a detailed description of all 

SVs used to value the respondents’ 

reported FOPs, see Factor Valuation 

Memorandum. 

Fangjia’s producer, Jiangsu Danyang 

Brilliant Furniture Co., Ltd., 

(‘‘Brilliant’’) purchased all reported 

FOPs from NME sources. Therefore, to 

calculate SVs, the Department used 

contemporaneous import data from the 

World Trade Atlas online, published by 

the Philippines National Statistics 

Office. Among the FOPs for which the 

Department calculated SVs using 

Philippine Import Statistics are 

plywood, screws, wood plugs, glue, 

lacquer, hinges, bolts, and packing 

materials. For a complete listing of all 

of the inputs and the valuation for each 

input, see Factor Valuation 

Memorandum. 

Where the Department could not 

obtain information contemporaneous 

with the POR with which to value FOPs, 

the Department adjusted the SVs using, 

where appropriate, the Philippine 

Wholesale Price Index (‘‘WPI’’) available 

at the Web site of the Philippines 

National Statistics Office at http:// 

www.census.gov.ph/data/sectordata/ 

datawpi.html. See Factor Valuation 

Memorandum. 

For direct labor, indirect labor, and 

packing labor, consistent with 19 CFR 

351.408(c)(3), the Department used the 

PRC regression-based wage rate as 

reported on Import Administration’s 

Web site, Import Library, Expected 

Wages of Selected NME Countries, 

revised in May 2008, using 2005 data, 

http://ia.ita.doc.gov/wages/05wages/ 

05wages-051608.html#table1. The 

source of these wage-rate data is the 

International Labour Organization, 

Geneva, Labour Statistics Database, 

Copyright International Labour 

Organization, 1998–2007 Yearbook, 

Selection: years: 2004–2005, Chapter 

5B: Wages in Manufacturing. Because 

this regression-based wage rate does not 

separate the labor rates into different 

skill levels or types of labor, the 

Department has applied the same wage 

rate to all skill levels and types of labor 

reported by the respondents. See Factor 

Valuation Memorandum. 

To value electricity, we used data 

from Doing Business in the Philippines, 

published by SGV & Co. See Factor 

Valuation Memorandum. 

To calculate the value for domestic 

brokerage and handling, the Department 

used brokerage fees available at the 

website of the Republic of the 

Philippines Tariff Commission, http:// 

www.tariffcommission.gov.ph/cao01– 

2001.html. 

We calculated the SV for truck freight 

using Philippine data from three 

sources, (1) The Cost of Doing Business 

in Camarines Sur, available at the 

Philippine government’s Web site for 

the province http:// 

www.camarinessur.gov.ph, (2) Province 

of Misamis Oriental: Cost of Doing 

Business, available at the Web site 

http://www.orobpc.org.ph:8080/pdf/ 

costmor.pdf, and (3) a news article from 

the Manila Times entitled ‘‘Government 

Mulls Cut in Export Target.’’ See Factor 

Valuation Memorandum. 

To value factory overhead, selling, 

general, and administrative expenses 

(‘‘SG&A’’), and profit, we used the 

audited financial statements for the 

fiscal year ending December 31, 2007, 

from the following producers: MaitlandSmith Cebu, Inc.; Casa Cebuana 

Incorporated; Global Classic Designs, 

Inc.; Diretso Design Furniture Inc.; and 

Las Palmas Furniture, Inc., all of which 

are Philippine producers of comparable 

merchandise. 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. 

Preliminary Results of Review 

The Department preliminarily 

determines that the following weightedaverage dumping margin exists for the 

period January 1, 2008, through June 30, 

2008: 


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Federal Register / Vol. 74, No. 124 / Tuesday, June 30, 2009 / Notices 31249 

WOODEN BEDROOM FURNITURE FROM

THE PRC 

Exporter/producer 

Weightedaverage 

margin 

(percent) 

Shanghai Fangjia Industry Co., 

Ltd./Jiangsu Danyang Brilliant Furniture Co., Ltd .......... 0.00 

Disclosure and Public Comment 

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). 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 may be filed no later than 

five days after the written comments are 

filed. 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). 

The Department intends to issue the 

final results of this NSR, 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 

Upon completion of the final results, 

pursuant to 19 CFR 351.212(b), the 

Department will determine, and CBP 

shall assess, antidumping duties on all 

appropriate entries. The Department 

intends to issue assessment instructions 

to CBP 15 days after the date of 

publication of the final results of 

review. If these preliminary results are 

adopted in our final results of review, 

the Department shall determine, and 

CBP shall assess, antidumping duties on 

all appropriate entries. Pursuant to 19 

CFR 351.212(b)(1), 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. 

Cash Deposit Requirements 

On August 17, 2006, the Pension 

Protection Act of 2006 (‘‘H.R. 4’’) was 

signed into law. Section 1632 of H.R. 4 

temporarily suspends the authority of 

the Department to instruct CBP to 

collect a bond or other security in lieu 

of a cash deposit in NSRs. Therefore, the 

posting of a bond under section 

751(a)(1)(B)(iii) of the Act in lieu of a 

cash deposit is not available in this case. 

The following cash deposit 

requirements will be effective upon 

publication of the final results of this 

NSR for shipments of subject 

merchandise from Fangjia 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 by Brilliant and exported by 

Fangjia, the cash deposit rate will be 

that established in the final results of 

this review; (2) for subject merchandise 

exported by Fangjia but not produced by 

Fangjia, the cash deposit rate will 

continue to be the PRC-wide rate of 

216.01 percent; (3) for subject 

merchandise exported by Fangjia and 

produced by Fangjia, the cash deposit 

rate will continue to be the PRC-wide 

rate of 216.01 percent; (4) for subject 

merchandise produced by Fangjia, and 

exported by any party but itself, the 

cash deposit rate will be the rate 

applicable to the exporter. These cash 

deposit requirements, when imposed, 

shall remain in effect until further 

notice. 

Notification to Interested Parties 

This notice serves as a preliminary 

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: June 22, 2009. 

Ronald K Lorentzen, 

Acting Assistant Secretary for Import 

Administration. 

[FR Doc. E9–15495 Filed 6–29–09; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–588–850] 

Certain Large Diameter Carbon and 

Alloy Seamless Standard, Line, and 

Pressure Pipe From Japan: Rescission 

of Antidumping Duty Administrative 

Review 

AGENCY: Import Administration, 

International Trade Administration, 

Department of Commerce. 

SUMMARY: On July 30, 2008, the U.S. 

Department of Commerce (the 

Department) published a notice of 

initiation of an administrative review of 

the antidumping duty order on certain 

large diameter carbon and alloy 

seamless standard, line, and pressure 

pipe from Japan. The review covers four 

manufacturers/exporters: JFE Steel 

Corporation; Nippon Steel Corporation; 

NKK Tubes; and Sumitomo Metal 

Industries, Ltd. (SMI). The period of 

review (POR) is June 1, 2007, through 

May 31, 2008. Following the receipt of 

a certification of no shipments from all 

four respondents, we notified the 

domestic interested party of the 

Department’s intent to rescind this 

review and provided an opportunity to 

comment on the rescission. We received 

no comments. Therefore, we are 

rescinding this administrative review. 

DATES: Effective Date: Insert date of 

publication in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Alexander Montoro, AD/CVD 

Operations, Office 1, Import 

Administration, International Trade 

Administration, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW., Washington, DC 20230; 

telephone: (202) 482–0238. 

SUPPLEMENTARY INFORMATION: 

Background 

On June 30, 2007, United States Steel 

Corporation (U.S. Steel), a domestic 

producer of the subject merchandise, 

made a timely request that the 

Department conduct an administrative 

review of JFE Steel Corporation, Nippon 

Steel Corporation, NKK Tubes, and SMI. 

On July 30, 2008, in accordance with 

section 751(a) of the Tariff Act of 1930, 

as amended (the Act), the Department 

published in the Federal Register a 


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