Multilayered Wood Flooring From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Review, in Part, and Intent To Rescind Review, in Part; 2016

AGENCY:

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

SUMMARY:

The 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 (PRC). Interested parties are invited to comment on these preliminary results of review.

DATES:

Applicable December 28, 2018.

FOR FURTHER INFORMATION CONTACT:

Dennis McClure or Suzanne Lam, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 202-482-5973 or 202-482-0783, respectively.

SUPPLEMENTARY INFORMATION:.

Background

On December 8, 2011, Commerce issued a countervailing duty (CVD) order on multilayered wood flooring from the PRC. Interested parties requested that Commerce conduct an administrative review of the countervailing duty order, and on February 23, 2018, Commerce published in the Federal Register a notice of initiation of an administrative review of the Order on 149 producers/exporters for the period of review (POR).

Scope of the Order

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

Rescission of Administrative Review, in Part

Pursuant to 19 CFR 351.213(d)(1), the Secretary will rescind an administrative review, in whole or in part, if the parties that requested a review withdraw the request within 90 days of the date of publication of the notice of initiation of the requested review. This review was initiated on February 23, 2018. On March 14, 2018, Huzhou Jesonwood submitted a withdrawal request within the 90-day deadline. On May 7, 2018, Dalian Penghong and 15 other companies submitted withdrawal requests. The petitioner filed withdrawal requests for Dalian Penghong, Dunhua City Jisen Wood Industry Co., Ltd (Dunhua City Jisen), and Dalian Shumaike Floor Manufacturing Co., Ltd. (Dalian Shumaike). All of the withdrawal requests submitted above were within the 90-day deadline. Therefore, because there are no remaining requests to review the following companies, in accordance with 19 CFR 351.213(d)(1), and consistent with our practice, we are rescinding this review with respect to Dalian Penghong, Dalian Shumaike, Dunhau City Jisen, Fusong Jinqui, Huzhou Jesonwood, and Shanghaifloor.

Intent To Rescind Administrative Review, in Part

We received timely filed no-shipment certifications from eight companies. Commerce issued no-shipment inquiries to U.S. Customs and Border Protection (CBP) requesting any information that may contradict the no-shipment claims. We have not received information from CBP to date that contradicts Anhui Boya Bamboo & Wood Products Co., Ltd.'s, Chinafloors Timber (China) Co., Ltd.'s, Jiangsu Keri Wood Co., Ltd.'s, Jiashan On-Line Lumber Co., Ltd.'s, Kingman Floors Co., Ltd.'s, Linyi Bonn Flooring Manufacturing Co., Ltd.'s, and Zhejiang Shiyou Timber Co., Ltd.'s claims of no sales, shipments or entries of subject merchandise to the United States during the POR. Because these companies timely filed their no-shipment certifications and CBP has not provided information that contradicts the companies' claims, we preliminarily intend to rescind the review of these companies. Absent any evidence of shipments being placed on the record, pursuant to 19 CFR 351.213(d)(3), we intend to rescind the administrative review of these companies in the final results of review.

On October 29, 2018, Huzhou Muyun Wood Co., Ltd. (Muyun Wood) filed a no-shipment certification. On November 13, 2018, we rejected Muyun Wood's request for no-shipment status because the request was untimely filed. Consequently, Muyun Wood continues to be subject to this administrative review.

Hunchun Forest timely filed a no-shipment certification. However, Hunchun Forest subsequently withdrew its no-shipment submssion. Therefore, we are continuing to include Hunchun Forest in this administrative review for purposes of the preliminary results.

Methodology

Commerce is conducting this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (Act). For each of the subsidy programs found 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. For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memorandum.

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 and in the Central Records Unit, Room B8024 of the main Department building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html . The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content. A list of topics discussed in the Preliminary Decision Memorandum is included as an Appendix to this notice.

In making these preliminary results, the Commerce relied, in part, on facts otherwise available. For further information, see “Provision of Electricity for Less Than Adequate Remuneration (LTAR), Provision of Land-Use Rights to Certain Industrial Zones for LTAR, Provision of Veneers for LTAR, Provision of Cut Timber for LTAR, Export Buyers' Credit, and Other Subsidies” in the Preliminary Decision Memorandum. For further information, see “Use of Facts Otherwise Available and Application of Adverse Inferences” in the Preliminary Decision Memorandum.

Rate for Non-Selected Companies Under Review

There are 132 companies for which a review was requested and not rescinded, and which were not selected as mandatory respondents or found to be cross-owned with a mandatory respondent. For these companies, we are preliminarily applying the average of the rates calculated for the mandatory respondents, Jiangsu Senmao Bamboo Wood Industry Co., Ltd. (Jiangsu Senmao) and Riverside Plywood Corp. (Riverside Plywood), which are above de minimis. For further information on the calculation of the non-selected respondent rate, refer to the section in the Preliminary Decision Memorandum entitled “Preliminary Ad Valorem Rate for Non-Selected Companies Under Review.”

Preliminary Results of the Review

In accordance with 19 CFR 351.221(b)(4)(i), we calculated a countervailable subsidy rate for each of the mandatory respondents, Jiangsu Senmao and Riverside Plywood, and their cross-owned affiliates where applicable.

We preliminarily find the countervailable subsidy rates for the mandatory and non-selected respondents under review to be as follows:

Disclosure and Public Comment

We will disclose to parties in this proceeding the calculations performed in reaching the preliminary results within five days of publication of these preliminary results. Interested parties may submit written comments (case briefs) on the preliminary results no later than 30 days from the date of publication of this Federal Register notice, and rebuttal comments (rebuttal briefs) within five days after the time limit for filing case briefs. Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be limited to issues raised in the case briefs. Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this review are requested to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities.

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 within 30 days of the date of publication of this notice. Requests should contain: (1) The party's name, address and telephone number; (2) the number of participants; and (3) a list of issues parties intend to discuss. Issues raised in the hearing will be limited to those raised in the respective case and rebuttal briefs. If a request for a hearing is made, Commerce intends to hold the hearing at the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a date and time to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.

Parties are reminded that briefs and hearing requests are to be filed electronically using ACCESS and that electronically filed documents must be received successfully in their entirety by 5 p.m. Eastern Time on the due date.

Unless the deadline is extended pursuant to section 751(a)(3)(A) of the Act, we intend to issue the final results of this administrative review, including the results of our analysis of the issues raised by the parties in their comments, within 120 days after publication of these preliminary results.

Assessment Rates

In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily assigned subsidy rates in the amounts shown above for the producer/exporters shown above. 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 U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries covered by this review. We intend to issue instructions directly to CBP 15 days after publication of the final results of 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, 2016, through December 31, 2016, in accordance with 19 CFR 351.212(c)(l)(i). Commerce intends to issue appropriate assessment instructions directly to CBP 15 days after publication of this notice.

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 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).

Appendix—List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary

II. Background

A. Case History

B. Postponement of Preliminary Results

C. Period of Review

D. Rescission of Review, In Part

E. Intent To Rescind, in Part, the Administrative Review

III. Scope of the Order

IV. Use of Facts Otherwise Available and Application of Adverse Inferences

A. Legal Standard

B. Application of AFA: Provision of Electricity for LTAR

C. Application of AFA: Provision of Land-Use Rights to Certain Industrial Zones for LTAR

D. Application of AFA: Provision of Veneers for LTAR

E. Application of AFA: Provision of Cut Timber for LTAR

F. Application of AFA: Export Buyers' Credit

G. Application of AFA: “Other Subsidies”

V. Subsidies Valuation

A. Allocation Period

B. Attribution of Subsidies

C. Denominators

VI. Interest Rate Benchmarks, Discount Rates, Inputs, Land-Use and Electricity

VII. Analysis of Programs

A. Programs Preliminarily Determined To Be Countervailable

B. Programs Preliminarily Determined Not To Confer a Countervailable Benefit

C. Programs Preliminarily Determined Not To Confer a Measurable Benefit

D. Programs Preliminarily Determined Not To Be Used

VIII. Preliminary Ad Valorem Rate for Non-Selected Companies Under Review

IX. Recommendation