[Federal Register Volume 79, Number 13 (Tuesday, January 21, 2014)]
[Notices]
[Pages 3345-3346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01053]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-928]


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

AGENCY: Enforcement and Compliance, formerly Import Administration, 
International Trade Administration, Department of Commerce.

SUMMARY: On July 11, 2013, the Department of Commerce (``the 
Department'') published the affirmative preliminary determination of 
circumvention of the antidumping duty order on uncovered innerspring 
units (``innerspring units'') from the People's Republic of China 
(``PRC'').\1\ We gave interested parties an opportunity to comment on 
the Preliminary Determination. Based on our analysis of these comments 
and the facts of record, our final determination remains unchanged from 
the Preliminary Determination.
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    \1\ See Uncovered Innerspring Units from the People's Republic 
of China: Affirmative Preliminary Determination of Circumvention of 
the Antidumping Duty Order, 78 FR 41784 (July 11, 2013) 
(``Preliminary Determination'').

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DATES: Effective Date: January 21, 2014.

FOR FURTHER INFORMATION CONTACT: Steven Hampton, Office V, Enforcement 
and Compliance, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230; telephone: (202) 482-0116.

SUPPLEMENTARY INFORMATION:

Background

    On July 11, 2013, the Department published the Preliminary 
Determination finding that innerspring units completed and assembled in 
Malaysia by Reztec Industries Sdn Bhd (``Reztec'') and exported to the 
United States are circumventing the antidumping duty order on 
innerspring units from the PRC,\2\ as provided in section 781(b) of the 
Tariff Act of 1930, as amended (``the Act''). We invited interested 
parties to comment on the Preliminary Determination. On August 19, 
2013, Reztec filed a case brief.\3\ On August 26, 2013, Leggett & 
Platt, Incorporated (``Petitioner'') submitted a rebuttal brief.\4\ The 
Department has conducted this anticircumvention inquiry in accordance 
with section 781(b) of the Act and 19 CFR 351.225.
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    \2\ Id.
    \3\ See Letter from Reztec to the Department regarding Uncovered 
Innerspring Units from the People's Republic of China: Case Brief of 
Reztec Industries Sdn Bhd dated August 19, 2013.
    \4\ See Letter from Petitioner to the Department regarding 
Uncovered Innerspring Units from the People's Republic of China 
dated August 26, 2013.
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Scope of the Antidumping Duty Order

    The merchandise subject to the order is uncovered innerspring 
units.\5\ The product is currently classified under subheading 
9404.29.9010 and has also been classified under subheadings 
9404.10.0000, 9404.29.9005, 9404.29.9011, 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.
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    \5\ For a complete description of the scope of the subject 
antidumping duty order, see Memorandum to Christian Marsh, Acting 
Assistant Secretary for Enforcement and Compliance, from James C. 
Doyle, Director, Office V, Antidumping Duty and Countervailing Duty 
Operations, entitled ``Anticircumvention Inquiry Regarding the 
Antidumping Duty Order on Uncovered Innerspring Units from the 
People's Republic of China: Issues and Decision Memorandum for the 
Final Determination'' and dated concurrently with this notice 
(``Issues and Decision Memorandum'').
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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.

Analysis of Comments Received

    All issues raised in the case briefs by parties in this 
circumvention inquiry are listed in the Appendix to this notice and 
addressed in the Issues and Decision Memorandum, which is hereby 
adopted by this notice. The Issues and Decision Memorandum can be 
accessed directly on the internet at: http://enforcement.trade.gov/frn/ 
and is on file electronically via Enforcement and Compliance'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 Issues and 
Decision Memorandum and the electronic version of the Issues and 
Decision Memorandum are identical in content.

[[Page 3346]]

Final Determination

    In the Preliminary Determination, the Department found, using 
partial adverse facts available, that innersprings units completed and 
assembled in Malaysia by Reztec using components from PRC and exported 
from Malaysia to the United States are circumventing the PRC 
Innerspring Units Order \6\, pursuant to section 781(b) of the Act. 
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 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 
PRC Innerspring Units Order. Our final determination remains unchanged 
from our Preliminary Determination. Therefore, the Department 
determines that it is appropriate to include this merchandise within 
the scope of the PRC Innerspring Units Order and to continue to 
instruct CBP to suspend all entries of innerspring units from Malaysia 
produced by Reztec.
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    \6\ See Uncovered Innerspring Units from the People's Republic 
of China: Notice of Antidumping Duty Order, 74 FR 7661 (February 19, 
2009) (``PRC Innerspring Units Order'').
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Continuation of Suspension of Liquidation

    In accordance with section 781(b) of the Act and 19 CFR 
351.225(1)(3), the Department will continue to 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 from Malaysia 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.\7\
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    \7\ See Uncovered Innerspring Units from the People's Republic 
China: Initiation of Anticircumvention Inquiry, 77 FR 30501 (May 23, 
2012).
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Notice to Parties

    This notice serves as the only reminder to parties subject to the 
administrative protection order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and terms of an APO is a violation which 
is subject to sanction.
    This final affirmative circumvention determination is published in 
accordance with section 781(b) of the Act and 19 CFR 351.225.

    Dated: January 13, 2014.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Discussion of the Issues

Comment 1: Whether the Department Should Continue to Find Reztec's 
Malaysian Production Process to be Minor or Insignificant
Comment 2: Application of Partial AFA with respect to Whether the 
Value of the Merchandise Produced in the PRC is a Significant 
Portion of the Total Value of the Merchandise that Reztec Exported 
from Malaysia to the United States
Comment 3: Whether the Department Should Provide Additional Guidance 
to Reztec Regarding Future Compliance with Any Affirmative Finding

[FR Doc. 2014-01053 Filed 1-17-14; 8:45 am]
BILLING CODE 3510-DS-P