[Federal Register Volume 74, Number 124 (Tuesday, June 30, 2009)]
[Notices]
[Pages 31244-31249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15495]


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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 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

[[Page 31245]]

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) chests-on-
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.
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    \1\ 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.
    \2\ 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).
    \3\ A lowboy is typically a short chest of drawers, not more 
than four feet high, normally set on short legs.
    \4\ A chest of drawers is typically a case containing drawers 
for storing clothing.
    \5\ 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.
    \6\ 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.
    \7\ A chiffonier is typically a tall and narrow chest of drawers 
normally used for storing undergarments and lingerie, often with 
mirror(s) attached.
    \8\ A hutch is typically an open case of furniture with shelves 
that typically sits on another piece of furniture and provides 
storage for clothes.
    \9\ 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; \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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    \10\ 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.
    \11\ 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: Notice of 
Final Results of Changed Circumstances Review and Revocation in 
Part, 71 FR 38621 (July 7, 2006).
    \12\ Cheval mirrors are any framed, tiltable mirror with a 
height in excess of 50<gr-thn-eq> 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).
    \13\ 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.
    \14\ 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, 7015 (February 14, 2007).
    \15\ 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.

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[[Page 31246]]

    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'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), 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 non-market 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

[[Page 31247]]

``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 market-

[[Page 31248]]

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 per-unit 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: Maitland-Smith 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 
weighted-average dumping margin exists for the period January 1, 2008, 
through June 30, 2008:

[[Page 31249]]



                  Wooden Bedroom Furniture From the PRC
------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                     Exporter/producer                         margin
                                                              (percent)
------------------------------------------------------------------------
Shanghai Fangjia Industry Co., Ltd./Jiangsu Danyang                0.00
 Brilliant Furniture Co., Ltd.............................
------------------------------------------------------------------------

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