[Federal Register Volume 78, Number 133 (Thursday, July 11, 2013)]
[Notices]
[Pages 41784-41785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16674]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-928]


Uncovered Innerspring Units From the People's Republic of China: 
Affirmative Preliminary Determination of Circumvention of the 
Antidumping Duty Order

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

Preliminary Determination

    The Department has preliminarily determined that uncovered 
innerspring units (``innersprings units'') completed and assembled in 
Malaysia by Reztec Industries Sdn Bhd (``Reztec'') using components 
from the People's Republic of China (``PRC''), and exported to the 
United States, are circumventing the antidumping duty order on 
innersprings from the PRC, as provided in section 781(b) of the Tariff 
Act of 1930, as amended (``the Act'').\1\
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    \1\ See Uncovered Innerspring Units from the People's Republic 
of China: Notice of Antidumping Duty Order, 74 FR 7661 (February 19, 
2009) (``Order'').

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DATES: Effective Date: July 11, 2013.

FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit or Steven Hampton, 
Office 9, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202)

[[Page 41785]]

482-4031 or (202) 482-0116, respectively.

SUPPLEMENTARY INFORMATION: 

Scope of the Antidumping Duty Order

    The merchandise subject to the order is uncovered innerspring 
units.\2\ The product is currently classified under subheading 
9404.29.9010 and has also been classified under subheadings 
9404.10.0000, 7326.20.0070, 7320.20.5010, 7320.90.5010, or 7326.20.0071 
of the Harmonized Tariff Schedule of the United States (``HTSUS''). The 
HTSUS subheadings are provided for convenience and customs purposes 
only; the written product description of the scope of the order is 
dispositive.\3\
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    \2\ See Memorandum to Paul Piquado, Assistant Secretary for 
Import Administration, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
entitled ``Anticircumvention Inquiry Regarding the Antidumping Duty 
Order on Uncovered Innerspring Units from the People's Republic of 
China: Preliminary Determination Decision Memorandum for Reztec 
Industries Sdn Bhd'' which is dated concurrently with this notice 
(``Preliminary Decision Memorandum'') for a complete description of 
the scope of the Order.
    \3\ See Order, 74 FR at 7661.
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Scope of the Anticircumvention Inquiry

    The products covered by this inquiry are innerspring units, as 
described above, that are manufactured in Malaysia by Reztec with PRC-
origin components and other direct materials, such as helical wires, 
and that are subsequently exported from Malaysia to the United States.

Methodology

    The Department has conducted this preliminary determination of 
circumvention in accordance with section 781(b) of the Act and 19 CFR 
351.225(h). For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum can be accessed directly on the internet at http://www.trade.gov/ia/ and is on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (``IA ACCESS''). IA ACCESS is available to 
registered users at http://iaaccess.trade.gov and in the Central 
Records Unit, Room 7046 of the main Department of Commerce building. 
The signed Preliminary Decision Memorandum and the electronic version 
of the Preliminary Decision Memorandum are identical in content. The 
Preliminary Decision Memorandum is hereby adopted by this notice.

Preliminary Findings

    As detailed in the Preliminary Decision Memorandum, the Department 
has preliminarily determined, using partial adverse facts available, 
that innerspring units completed and assembled in Malaysia by Reztec 
using components from the PRC and exported from Malaysia to the United 
States are circumventing the Order. Moreover, because Reztec cannot 
distinguish between those innerspring units it is exporting to the 
United States which contain PRC-origin components and those that do 
not, the Department has preliminarily determined that it is appropriate 
to instruct U.S. Customs and Border Protection (``CBP'') to suspend 
liquidation of all entries of innerspring units from Malaysia produced 
by Reztec as subject to the Order.\4\
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    \4\ See Preliminary Decision Memorandum, at 15.
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Suspension of Liquidation

    In accordance with 19 CFR 351.225(l)(2), the Department will direct 
CBP to suspend liquidation and to require a cash deposit of estimated 
duties at the rate applicable to the exporter, on all unliquidated 
entries of innerspring units produced by Reztec that were entered, or 
withdrawn from warehouse, for consumption on or after May 23, 2012, the 
date of initiation of the anticircumvention inquiry.\5\
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    \5\ Id., at 16.
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    Should the Department conduct an administrative review in the 
future, and determine in the context of that review that Reztec did not 
produce for export innerspring units using PRC-origin innerspring 
components, the Department will consider initiating a changed 
circumstances review pursuant to section 751(b) of the Act to determine 
if the continued suspension of all innerspring units produced by Reztec 
is warranted.\6\
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    \6\ See, e.g., Certain Tissue Paper Products From the People's 
Republic of China: Affirmative Final Determination of Circumvention 
of the Antidumping Duty Order, 76 FR 47554 (August 5, 2011).
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Notification to the International Trade Commission

    The Department, consistent with section 781(e) of the Act and 19 
CFR 351.225(f)(7)(i)(B), has notified the International Trade 
Commission (``ITC'') of this preliminary determination to include the 
merchandise subject to this anticircumvention inquiry within the Order. 
Pursuant to section 781(e) of the Act, the ITC may request 
consultations concerning the Department's proposed inclusion of the 
subject merchandise. If, after consultations, the ITC believes that a 
significant injury issue is presented by the proposed inclusion, it 
will have 15 days to provide written advice to the Department.

Public Comment

    Because the Department may seek additional information, the 
Department will establish the case and rebuttal brief schedule at a 
later time and will notify parties of the briefing schedule in 
accordance with 19 CFR 351.309(b). Case and rebuttal briefs, when 
submitted, must comport with the requirements contained in 19 CFR 
351.309(c)(2) and (d)(2).
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, or to participate if one is requested, must submit a 
written request to the Assistant Secretary for Import Administration, 
filed electronically via IA ACCESS. An electronically filed document 
must be received successfully in its entirety by the Department's 
electronic records system, IA ACCESS, by 5 p.m. Eastern Standard Time 
within 30 days after the date of publication of this notice.\7\ 
Requests should contain: (1) The party's name, address and telephone 
number; (2) the number of participants; and (3) a list of issues to be 
discussed. Issues raised in the hearing will be limited to those raised 
in the respective case and rebuttal briefs.
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    \7\ See 19 CFR 351.310(c).
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Final Determination

    The final determination with respect to this anticircumvention 
inquiry, including the results of the Department's analysis of any 
written comments, will be issued no later than August 16, 2013, unless 
extended.
    This preliminary affirmative circumvention determination is 
published in accordance with section 781(b) of the Act and 19 CFR 
351.225.

    Dated: July 2, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2013-16674 Filed 7-10-13; 8:45 am]
BILLING CODE 3510-DS-P