E7-643. Wooden Bedroom Furniture from the People's Republic of China: Initiation of Antidumping Duty Changed Circumstances Review

AGENCY:

Import Administration, International Trade Administration, Department of Commerce.

SUMMARY:

The Department of Commerce (“Department”) has received information sufficient to warrant initiation of a changed circumstances review of the antidumping duty order on wooden bedroom furniture (“WBF”) from the People's Republic of China (“PRC”). Based on a request filed by Tradewinds Furniture Ltd. (“Tradewinds Furniture”) and Tradewinds International Enterprise Ltd. (“Tradewinds International”), the Department is initiating a changed circumstances review to determine whether Tradewinds Furniture and Tradewinds International are successors-in-interest to Nanhai Jiantai Woodwork Co. (“Nanhai Jiantai”) and its affiliated exporter, Fortune Glory Industrial Limited Co. (“Fortune Glory”), respondents in the original investigation.

EFFECTIVE DATE:

January 18, 2007.

FOR FURTHER INFORMATION CONTACT:

Juanita H. Chen or Robert A. Bolling, AD/CVD Operations, Office 8, Import Administration, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230; telephone: [phone] or 202-482-3434, respectively.

SUPPLEMENTARY INFORMATION:

Background

On January 4, 2005, the Department published in the Federal Register the antidumping duty order on WBF from the PRC. 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). As part of the antidumping duty order on WBF from the PRC, Nanhai Jiantai and Fortune Glory received a separate rate of 6.65 percent. Id. at 70 FR at 331.

On November 22, 2006, Tradewinds Furniture and Tradewinds International filed a joint submission requesting that the Department conduct a changed circumstances review of the antidumping duty order on WBF from the PRC to confirm that Tradewinds Furniture and Tradewinds International are the successors-in-interest to Nanhai Jiantai and Fortune Glory. On November 30, 2006, Tradewinds Furniture and Tradewinds International filed a submission providing a public version of a chart included in their November 22, 2006 request. In their submissions, Tradewinds Furniture and Tradewinds International provided information on the events leading to the transition from Nanhai Jiantai and Fortune Glory to Tradewinds Furniture and Tradewinds International. Tradewinds Furniture and Tradewinds International also provided documentation relating to the change in name of Nanhai Jiantai to Foshian Jiantai and, thereafter, the purchase of Foshian Jiantai and establishment of Tradewinds Furniture to carry on the business of Foshian Jiantai, as well as documentation relating to the ownership structure and management, organizational structure, production facilities and equipment, supplier relationships, customer base, and production quantity, products and pricing. As part of their November 22, 2006, submission, Tradewinds Furniture and Tradewinds International also requested that the Department conduct an expedited review.

Scope of 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 armoires⁹; (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 armories^[11] ; (10) cheval mirrors^[12] ; (11) certain metal parts¹³ ; and (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.

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.

Initiation of Changed Circumstances Review

Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (“Act”), the Department will conduct a changed circumstances review upon receipt of information concerning, or a request from an interested party for a review of, an antidumping duty order, which shows changed circumstances sufficient to warrant a review of the order. Additionally, section 751(b)(4) of the Act states that the Department shall not conduct a review less than 24 months after the date of publication of the determination, in the absence of good cause.

As noted above, Tradewinds Furniture and Tradewinds International filed their request for a changed circumstances review on November 22, 2006, a little over 22 months after the publication of the amended final determination and order. 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). However, Tradewinds Furniture and Tradewinds International argue that the request is timely because it was filed more than 24 months after the date of publication of the Department's original final determination. See Final Determination of Sales at Less Than Fair Value: Wooden Bedroom Furniture From the People's Republic of China, 69 FR 67313 (November 17, 2004). Tradewinds Furniture and Tradewinds International also argue that, even if the Department were to consider the request in relation to the amended final determination, the Department has previously found that a change in corporate structure is sufficient as “good cause” to conduct a review less than 24 months after the date of publication of the determination. Citing Initiation of Antidumping Duty Changed Circumstances Review: Certain Softwood Lumber Products From Canada, 68 FR 14947, 14948 (March 27, 2003); Bulk Aspirin From the People's Republic of China; Initiation of Changed Circumstances Antidumping Duty Administrative Review, 67 FR 39344, 39345 (June 7, 2002). In this instance, the Department agrees with Tradewinds Furniture and Tradewinds International that we have previously found a change in corporate structure request for a successor-in-interest determination sufficient to warrant the initiation of a changed circumstances review. See id. Based on the information submitted by Tradewinds Furniture and Tradewinds International regarding the change in name and status of Nanhai Jiantai and Fortune Glory, the Department determines that sufficient good cause exists to conduct a changed circumstances review.

In a changed circumstances review involving a successor-in-interest determination, the Department typically examines several factors including, but not limited to, changes in: (1) Management; (2) production facilities; (3) supplier relationships; and (4) customer base. See Certain Cut-to-Length Carbon Steel Plate from Romania: Initiation and Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review, 70 FR 22847 (May 3, 2005). While no single factor or combination of factors will necessarily be dispositive, the Department generally will consider the new company to be the successor to the predecessor if the resulting operations are essentially the same as those of the predecessor company. See, e.g., Notice of Initiation of Antidumping Duty Changed Circumstances Review: Certain Forged Stainless Steel Flanges from India, 71 FR 327 (January 4, 2006). Thus, if the record demonstrates that, with respect to the production and sale of the subject merchandise, the new company operates as the same business entity as the predecessor company, the Department may assign the new company the cash deposit rate of its predecessor. See, e.g., Fresh and Chilled Atlantic Salmon from Norway: Final Results of Changed Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980 (March 1, 1999).

Based on the information provided in their submissions, Tradewinds Furniture and Tradewinds International have provided sufficient evidence to warrant a review to determine if they are the successors-in-interest to Nanhai Jiantai and Fortune Glory. Therefore, pursuant to section 751(b)(1) of the Act and 19 C.F.R. 351.216(b), we are initiating a changed circumstances review. However, although Tradewinds Furniture and Tradewinds International submitted documentation relating to their name and status change from Nanhai Jiantai and Fortune Glory, they did not provide certain supporting documentation for the elements listed above. Accordingly, the Department does not consider the information sufficient to make a preliminary finding and has determined that it would be inappropriate to expedite this action by combining the preliminary results of review with this notice of initiation, as permitted under 19 C.F.R. 351.221(c)(3)(ii). As a result, the Department is not issuing preliminary results for this changed circumstances review at this time.

Public Comment

Interested parties may submit comments that the Department will take into account in the preliminary results of this changed circumstances review. The due date for filing any such comments is no later than 15 days from publication of this notice. Responses to those comments may be submitted no later than seven days from submission of the comments. All written comments must be submitted in accordance with 19 C.F.R. 351.303. The Department will issue questionnaires requesting factual information for this changed circumstances review, and will publish in the Federal Register a notice of preliminary results of the changed circumstances review, in accordance with 19 C.F.R. 351.221(b)(4) and 351.221(c)(3)(i). This notice will set forth the factual and legal conclusions upon which our preliminary results are based and a description of any action proposed based on those results.

Pursuant to 19 C.F.R. 351.221(b)(4)(ii), interested parties will have an opportunity to comment on the preliminary results. The Department will issue its final results of this changed circumstances review in accordance with the time limits set forth in 19 C.F.R. 351.216(e). This notice is published in accordance with section 751(b)(1) of the Act and 19 C.F.R. 351.221(b).

Dated: January 10, 2007.

David M. Spooner,

Assistant Secretary for Import Administration.

Footnotes

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.

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 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, i.e., 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.

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.