[Federal Register Volume 90, Number 53 (Thursday, March 20, 2025)]
[Notices]
[Pages 13142-13145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04708]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-971]


Multilayered Wood Flooring From the People's Republic of China: 
Preliminary Results and Partial Rescission of Countervailing Duty 
Administrative Review; 2022

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of multilayered wood flooring (wood flooring) 
from the People's Republic of China (China). The period of review (POR) 
is January 1, 2022, through December 31, 2022. Interested parties are 
invited to comment on these preliminary results of review.

DATES: Applicable March 20, 2025.

FOR FURTHER INFORMATION CONTACT: Jonathan Schueler or Laurel Smalley, 
AD/CVD Operations, Office VIII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-9175 
or (202) 482-1955, respectively.

SUPPLEMENTARY INFORMATION:

[[Page 13143]]

Background

    On December 8, 2011, Commerce issued a countervailing duty order on 
wood flooring from China.\1\ The American Manufacturers of Multilayered 
Wood Flooring (the petitioner) and other interested parties requested 
that Commerce conduct an administrative review of the Order. On 
February 8, 2024, Commerce published in the Federal Register a notice 
of initiation of an administrative review of the Order.\2\ We initiated 
an administrative review with respect to 14 producers/exporters of wood 
flooring from China for the POR.
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    \1\ See Multilayered Wood Flooring from the People's Republic of 
China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011); 
and Multilayered Wood Flooring from the People's Republic of China: 
Amended Antidumping and Countervailing Duty Orders, 77 FR 5484 
(February 3, 2012), wherein the scope of the order was modified 
(collectively, Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 89 FR 8641 (February 8, 2024) (Initiation 
Notice).
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    On July 22, 2024, Commerce tolled certain deadlines in this 
administrative proceeding by seven days.\3\ On August 2, 2024, Commerce 
postponed the preliminary results of this review until December 13, 
2024, in accordance with section 751(a)(3)(A) of the Act and 19 CFR 
351.213(h)(2).\4\ Additionally, on December 9, 2024, Commerce tolled 
the deadline to issue the preliminary results in this administrative 
review by 90 days.\5\ The deadline for issuing these preliminary 
results is now March 13, 2025.
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    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \4\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated August 
2, 2024.
    \5\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated December 9, 2024.
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    For events that occurred since the Initiation Notice, see the 
Preliminary Decision Memorandum.\6\ The Preliminary Decision Memorandum 
is a public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed at https://access.trade.gov/public/FRNoticesListLayout.aspx. A list of topics 
discussed in the Preliminary Decision Memorandum is included as 
Appendix I to this notice.
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    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results in the Countervailing Duty Administrative Review of 
Multilayered Wood Flooring from the People's Republic of China; 
2022,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order is wood flooring from China. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.

Final Rescission of Review, In Part

    On April 9, 2024, Commerce notified interested parties that we 
intended to rescind this administrative review with respect to the nine 
companies listed in Appendix II, in the absence of suspended entries 
during the POR.\7\ No party commented on our Intent to Rescind 
Memorandum. Therefore, we find that there are no reviewable entries of 
subject merchandise by the companies listed in Appendix II based on our 
review of the CBP data on the record. As a result, we are rescinding 
this review, in part, with respect to the nine companies listed in 
Appendix II, pursuant to 19 CFR 351.213(d)(3) and (4).
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    \7\ See Memorandum, ``Notice of Intent to Rescind Review, In 
Part,'' dated April 9, 2024 (Intent to Rescind Memorandum).
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    In addition, the following parties submitted no-shipment 
certifications: Benxi Flooring Factory (General Partnership); Dongtai 
Fuan Universal Dynamics, LLC; HaiLin LinJing Wooden Products Co., Ltd.; 
Jiashan On-Line Lumber Co., Ltd.; Pinge Timber Manufacturing (Zhejiang) 
Co., Ltd. (Pinge Timber); Suzhou Dongda Wood Co., Ltd.; Zhejiang Shiyou 
Timber Co., Ltd. All of these companies were included in the Intent to 
Rescind Memorandum, with the exception of Pinge Timber.\8\ We did not 
initiate a review with respect to Pinge Timber, thus it is not subject 
to this review. Therefore, as explained above, we are rescinding the 
review with regard to all these companies, with the exception of Pinge 
Timber because it is not under review.
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    \8\ See Intent to Rescind Memorandum.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found to be countervailable, we preliminarily 
determine that there is a subsidy, i.e., a financial contribution by an 
``authority'' that confers a benefit to the recipient, and that the 
subsidy is specific.\9\ For a full description of the methodology 
underlying our preliminary conclusions, including our reliance, in 
part, on adverse facts available pursuant to sections 776(a) and (b) of 
the Act, see the Preliminary Decision Memorandum.
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    \9\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Rate for Non-Selected Companies Under Review

    As discussed above, Commerce initiated this administrative review 
with respect to 14 producers/exporters. We are rescinding the review 
for nine companies listed in Appendix II that had no suspended entries 
during the POR. As discussed above, this group includes six companies 
that certified no shipments during the POR. In addition, Commerce 
selected three mandatory respondents, Riverside Plywood Corp. 
(Riverside Plywood), Tongxiang Jisheng Import and Export Co., Ltd., 
(Tongxiang Jisheng) and Huzhou Fulinmen Imp. & Exp. Co., Ltd. (Huzhou 
Fulinmen) for individual examination.\10\ For the remaining two 
companies subject to this review, but not selected for individual 
examination (i.e., Benxi Wood Company and Dalian Jaenmaken Wood 
Industry Co., Ltd.), because only the rate calculated for mandatory 
respondent Riverside Plywood is above de minimis and not based entirely 
on facts available, we assigned the subsidy rate calculated for 
Riverside Plywood to Benxi Wood Company and Dalian Jaenmaken Wood 
Industry Co., Ltd. For further information on the calculation of the 
non-selected respondent rate, see Preliminary Decision Memorandum at 
section entitled ``Non-Selected Companies Under Review.''
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    \10\ See Memoranda, ``Respondent Selection,'' dated March 14, 
2024, and ``Selection of Additional Mandatory Respondent,'' dated 
April 16, 2024.
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Rate for Non-Responsive Companies

    As noted above, Huzhou Fulinmen, and Tongxiang Jisheng were 
selected as mandatory respondents in this review, however, neither 
company responded to Commerce's initial CVD questionnaires. We find 
that by not responding to Commerce's requests for information, these 
companies withheld requested information and significantly impeded this 
proceeding. Thus, in reaching our preliminary results, pursuant to 
sections 776(a)(2)(A) and (C) of the Act, we are basing the CVD subsidy 
rates for these non-responsive companies on facts otherwise available.
    Further, we preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's initial CVD questionnaire,

[[Page 13144]]

these two non-responsive companies did not cooperate to the best of 
their ability in this review. Accordingly, we preliminarily find that 
an adverse inference is warranted to ensure that the non-responsive 
companies will not obtain a more favorable result than if they had 
fully complied with Commerce's request for information. For more 
information on the application of adverse facts available to these two 
non-responsive companies, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.

Preliminary Results of the Review

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily find 
the following net countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                     Producer/exporter                       (percent ad
                                                               valorem)
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Riverside Plywood Corp. and its Cross-Owned Affiliates \11\        11.17
Huzhou Fulinmen Imp. & Exp. Co., Ltd.......................     * 430.38
Tongxiang Jisheng Import and Export Co., Ltd...............     * 430.38
Benxi Wood Company.........................................        11.17
Dalian Jaenmaken Wood Industry Co., Ltd....................        11.17
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* Rate based entirely on facts available with adverse inferences.

Disclosure and Public Comment
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    \11\ Cross-owned affiliates are: Baroque Timber Industries 
(Zhongshan) Co., Ltd.; Suzhou Times Flooring Co., Ltd.; and 
Zhongshan Lianjia Flooring Co., Ltd.
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    We intend to disclose the calculations performed to parties within 
five days after the date of publication of this notice.\12\ Case briefs 
or other written comments may be submitted to the Assistant Secretary 
for Enforcement and Compliance. Pursuant to 19 CFR 351.309(c)(1)(ii), 
we have modified the deadline for interested parties to submit case 
briefs to Commerce to no later than 21 days after the date of the 
publication of this notice.\13\ Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed not later than five days after 
the date for filing case briefs.\14\ Interested parties who submit case 
briefs or rebuttal briefs in this proceeding must submit: (1) a table 
of contents listing each issue; and (2) a table of authorities.\15\
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    \12\ See 19 CFR 351.224(b).
    \13\ See 19 CFR 351.309.
    \14\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \15\ See 19 CFR 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this review, we instead request that 
interested parties provide at the beginning of their briefs a public, 
executive summary for each issue raised in their briefs.\16\ Further, 
we request that interested parties limit their executive summary of 
each issue to no more than 450 words, not including citations. We 
intend to use the executive summaries as the basis of the comment 
summaries included in the issues and decision memorandum that will 
accompany the final results in this administrative review. We request 
that interested parties include footnotes for relevant citations in the 
executive summary of each issue. Note that Commerce has amended certain 
of its requirements pertaining to the service of documents in 19 CFR 
351.303(f).\17\
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    \16\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \17\ See APO and Service Final Rule.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS. 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 briefs. If a request for a hearing 
is made, Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm the date and time of the hearing two 
days before the scheduled date. Parties are reminded that all briefs 
and hearing requests must be filed electronically using ACCESS \18\ and 
must be served on interested parties.\19\ Electronically filed 
documents must be received successfully in their entirety by 5:00 p.m. 
Eastern Time within 30 days after the date of publication of this 
notice.
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    \18\ See 19 CFR 351.303.
    \19\ See 19 CFR 351.303(f).
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Final Results

    Unless the deadline is extended, we intend to issue the final 
results of this administrative review, which will include the results 
of our analysis of the issues raised in the case briefs, within 120 
days of publication of these preliminary results in the Federal 
Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 
351.213(h).

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we are preliminarily 
assigning subsidy rates in the amounts shown above for the producer/
exporters subject to review. Upon completion of the administrative 
review, consistent with section 751(a)(1) of the Act and 19 CFR 
351.212(b)(2), Commerce shall determine, and CBP shall assess, 
countervailing duties on all appropriate entries covered by this 
review.
    For the companies for which this review is rescinded, Commerce will 
instruct CBP to assess countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period January 1, 2022, through December 31, 
2022, in accordance with 19 CFR 351.212(c)(l)(i). Commerce intends to 
issue assessment instructions to CBP no earlier than 35 days after the 
date of publication of the preliminary results of this review in the 
Federal Register.
    For the companies for which this review is not rescinded, Commerce 
intends to issue assessment instructions to CBP no earlier than 35 days 
after the date of publication of the final results of this review in 
the Federal Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above and in Appendix III on 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of the final 
results of this administrative review. For all non-reviewed firms, we 
will instruct CBP to continue to collect cash deposits at the most 
recent company-specific or all-others rate applicable to the company. 
These cash deposit requirements, when imposed, shall remain in effect 
until further notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).


[[Page 13145]]


    Dated: March 13, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Non-Selected Companies Under Review
IV. Scope of the Order
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks, Discount Rates, Inputs, Land-Use 
Benchmarks, and Electricity Benchmarks
IX. Analysis of Programs
X. Recommendation

Appendix II

Companies for Which Commerce Is Rescinding the Review

1. Benxi Flooring Factory (General Partnership)
2. Dongtai Fuan Universal Dynamics, LLC
3. HaiLin LinJing Wooden Products Co., Ltd.
4. Hunchun Xingjia Wooden Flooring Inc.
5. Jiangsu Mingle Flooring Co., Ltd.
6. Jiashan On-Line Lumber Co., Ltd.
7. Suzhou Dongda Wood Co., Ltd.
8. Zhejiang Longsen Lumbering Co., Ltd.
9. Zhejiang Shiyou Timber Co., Ltd.

[FR Doc. 2025-04708 Filed 3-19-25; 8:45 am]
BILLING CODE 3510-DS-P