82 FR 9561 - Multilayered Wood Flooring From the People's Republic of China: Initiation and Preliminary Results of Antidumping and Countervailing Duty Changed Circumstances Reviews

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 24 (February 7, 2017)

The Department of Commerce (``the Department'') is simultaneously initiating, and issuing the preliminarily results of, changed circumstances reviews of the antidumping duty (``AD'') and countervailing duty (``CVD'') orders on multilayered wood flooring (``wood flooring'') from the People's Republic of China (``PRC''). We preliminarily determine that Yihua Lifestyle Technology Co., Ltd. (``Yihua Tech'') is the successor-in-interest to Guangdong Yihua Timber Industry Co., Ltd. (``Yihua Timber'') for purposes of the AD and CVD orders on wood flooring from the PRC and, as such, is entitled to Yihua Timber's AD and CVD cash deposit rates with respect to entries of subject merchandise. Interested parties are invited to comment on this preliminary determination.

[Federal Register Volume 82, Number 24 (Tuesday, February 7, 2017)]
[Notices]
[Pages 9561-9564]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02467]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-970, C-570-971]


Multilayered Wood Flooring From the People's Republic of China: 
Initiation and Preliminary Results of Antidumping and Countervailing 
Duty Changed Circumstances Reviews

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

SUMMARY: The Department of Commerce (``the Department'') is 
simultaneously

[[Page 9562]]

initiating, and issuing the preliminarily results of, changed 
circumstances reviews of the antidumping duty (``AD'') and 
countervailing duty (``CVD'') orders on multilayered wood flooring 
(``wood flooring'') from the People's Republic of China (``PRC''). We 
preliminarily determine that Yihua Lifestyle Technology Co., Ltd. 
(``Yihua Tech'') is the successor-in-interest to Guangdong Yihua Timber 
Industry Co., Ltd. (``Yihua Timber'') for purposes of the AD and CVD 
orders on wood flooring from the PRC and, as such, is entitled to Yihua 
Timber's AD and CVD cash deposit rates with respect to entries of 
subject merchandise. Interested parties are invited to comment on this 
preliminary determination.

DATES: Effective February 7, 2017.

FOR FURTHER INFORMATION CONTACT: Jonathan Hill, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-3518.

SUPPLEMENTARY INFORMATION: 

Background

    On December 8, 2011, the Department published the AD and CVD orders 
of wooding flooring from the PRC.\1\ On July 28, 2016, Yihua Tech 
requested that the Department initiate expedited changed circumstances 
reviews (``CCR'') and determine that it is the successor-in-interest to 
Yihua Timber for purposes of determining AD and CVD liabilities.\2\ On 
September 9, 2016, the Department requested from Yihua Tech additional 
information in order to determine whether to initiate the requested 
CCRs.\3\ On November 18, 2016, Yihua Tech submitted an amendment to its 
CCR Request, which included the additional information requested by the 
Department.\4\ Thus, the 45-day time period for the Department to 
determine whether to initiate the requested changed circumstances 
review began on this date.\5\ On December 23, 2016, the Department 
determined that additional time was necessary to consider Yihua Tech's 
request for the changed circumstances reviews.\6\ Therefore, in 
accordance with 19 CFR 351.302(b), the Department extended the time 
period for determining whether to initiate the requested changed 
circumstances reviews by an additional 30 days, until February 1, 2017. 
The Department received no comments on Yihua Tech's CCR Request.
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    \1\ See Multilayered Wood Flooring from the People's Republic of 
China: Amended Final Determination of Sales at Less Than Fair Value 
and Antidumping Duty Order, 76 FR 76690 (December 8, 2011); see also 
Multilayered Wood Flooring from the People's Republic of China: 
Countervailing Duty Order, 76 FR 76692 (December 8, 2011), as 
amended, Multilayered Wood Flooring from the People's Republic of 
China: Amended Antidumping and Countervailing Duty Orders, 77 FR 
5484 (February 3, 2012) (``Orders'').
    \2\ See Letter from Yihua Tech to the Secretary of Commerce 
``Wooden Bedroom Furniture from the People's Republic of China (AD) 
and Multilayered Wood Flooring from the People's Republic of China 
(AD/CVD); Request for Changed Circumstances Review,'' dated July 28, 
2016 (``CCR Request'').
    \3\ See Letter from Howard Smith, Program Manager, AD/CVD 
Operations, Office IV, Enforcement & Compliance to Yihua Tech dated 
September 9, 2016.
    \4\ See Letter from Yihua Tech to the Secretary of Commerce 
``Wooden Bedroom Furniture from the People's Republic of China (AD) 
and Multilayered Wood Flooring from the People's Republic of China 
(AD/CVD); Amendment to Request for Changed Circumstances Review,'' 
dated November 18, 2016 (``Amendment to CCR Request'').
    \5\ See 19 CFR 351.216(b).
    \6\ See Letter from Abdelali Elouaradia, Office Director, Office 
IV, AD/CVD Operations ``Wooden Bedroom Furniture from the People's 
Republic of China (Antidumping Duty Order) and Multilayered Wood 
Flooring from the People's Republic of China (Antidumping Duty and 
Countervailing Duty Orders): Request for a Changed Circumstances 
Review,'' dated December 23, 2016.
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Scope of the Orders

    The merchandise covered by the orders includes wood flooring, 
subject to certain exceptions. Imports of the subject merchandise are 
provided for under the following subheadings of the Harmonized Tariff 
Schedule of the United States (``HTSUS''): 4412.31.0520; 4412.31.0540; 
4412.31.0560; 4412.31.2510; 4412.31.2520; 4412.31.3175; 4412.31.4040; 
4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4075; 4412.31.4080; 
4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 4412.31.5175; 
4412.31.6000; 4412.31.9100; 4412.32.0520; 4412.32.0540; 4412.32.0560; 
4412.32.0565; 4412.32.0570; 4412.32.2510; 4412.32.2520; 4412.32.2525; 
4412.32.2530; 4412.32.3125; 4412.32.3135; 4412.32.3155; 4412.32.3165; 
4412.32.3175; 4412.32.3185; 4412.32.5600; 4412.39.1000; 4412.39.3000; 
4412.39.4011; 4412.39.4012; 4412.39.4019; 4412.39.4031; 4412.39.4032; 
4412.39.4039; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 
4412.39.4062; 4412.39.4069; 4412.39.5010; 4412.39.5030; 4412.39.5050; 
4412.94.1030; 4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 
4412.94.3131; 4412.94.3141; 4412.94.3160; 4412.94.3171; 4412.94.4100; 
4412.94.5100; 4412.94.6000; 4412.94.7000; 4412.94.8000; 4412.94.9000; 
4412.94.9500; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 
4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 
4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5105; 
4412.99.5115; 4412.99.5710; 4412.99.6000; 4412.99.7000; 4412.99.8000; 
4412.99.9000; 4412.99.9500; 4418.71.2000; 4418.71.9000; 4418.72.2000; 
4418.72.9500; and 9801.00.2500.
    While HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the subject merchandise is 
dispositive.\7\
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    \7\ For a complete description of the Scope of the Orders, 
please see memorandum from Gary Taverman, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance ``Multilayered Wood Flooring from the People's Republic 
of China: Preliminary Decision Memorandum of Antidumping and 
Countervailing Duty Changed Circumstances Reviews,'' dated 
concurrently with this notice (``Preliminary Decision Memorandum'').
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Initiation of Changed Circumstances Reviews

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``the Act''), and the Department's regulations (19 CFR 351.216 and 
351.221(c)(3)), the Department will conduct a changed circumstances 
review of an order upon receipt of information concerning, or a request 
from an interested party for a review of, an order which shows changed 
circumstances sufficient to warrant a review of the order. In the past, 
the Department has used CCRs to address the applicability of cash 
deposit rates after there have been changes in the name of a 
respondent, (``successor-in-interest'' or ``successorship'' 
determinations). The information submitted by Yihua Tech claiming that 
it is Yihua Timber's successor-in-interest relates to a name change. 
Specifically, Yihua Tech reported that effective May 17, 2016, the 
Guangdong Provincial Administration for Industry and Commerce approved 
Yihua Tech's change of name from Guangdong Yihua Timber Industry Co., 
Ltd. to Yihua Lifestyle Technology Co., Ltd., and approved a minor 
modification to Yihua Timber's business scope.\8\ Thus, consistent with 
Department practice, the information submitted by Yihua Tech 
demonstrates changed circumstances sufficient to warrant a review.\9\ 
Therefore, in accordance with section

[[Page 9563]]

751(b)(1) of the Act and 19 CFR 351.216(d), the Department is 
initiating changed circumstances reviews to determine whether Yihua 
Tech is the successor-in-interest to Yihua Timber.
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    \8\ See CCR Request at Attachment 1.
    \9\ See 19 CFR 351.216(d).
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Preliminary Results

    When it concludes that expedited action is warranted, the 
Department may publish the notice of initiation and preliminary results 
of a CCR concurrently.\10\ The Department has combined the notice of 
initiation and preliminary results in successor-in-interest cases when 
sufficient documentation has been provided supporting the request to 
make a preliminary determination.\11\ In this instance, because we have 
on the record the information necessary to support the request for a 
preliminary determination, we find that expedited action is warranted, 
and we are combining the notice of initiation and the notice of 
preliminary results, in accordance with 19 CFR 351.221(c)(3)(ii).
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    \10\ See 19 CFR 351.221(c)(3)(ii).
    \11\ See, e.g., Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review: Crystalline Silicon 
Photovoltaic Cells, Whether or Not Assembled Into Modules, from the 
People's Republic of China, 81 FR 76561 (November 3, 2016) (``Solar 
Cells PRC 2016''), unchanged in Crystalline Silicon Photovoltaic 
Cells, Whether or Not Assembled Into Modules, from the People's 
Republic of China: Final Results of Changed Circumstances Review, 81 
FR 91909 (December 19, 2016).
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AD Methodology

    In a CCR, we generally consider a company to be the successor to 
another company for AD cash deposit purposes if the operations of the 
successor are not materially dissimilar from those of its 
predecessor.\12\ In making this determination, the Department examines 
a number of factors including, but not limited to, changes in: (1) 
Management; (2) production facilities; (3) suppliers; and (4) customer 
base.\13\ While no one or several of these factors will necessarily 
provide a dispositive indication of succession, the Department will 
generally consider one company to be the successor to another company 
if its resulting operation is essentially the same as that of its 
predecessor.\14\ Thus, if the evidence demonstrates that, with respect 
to the production and sale of the subject merchandise, the new company 
operates as the same business entity as the prior company, the 
Department will assign the new company the cash deposit rate of its 
predecessor.\15\
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    \12\ Id.
    \13\ See Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review: Multilayered Wood Flooring from the 
People's Republic of China, 79 FR 48117,48118 (August 15, 2014), 
unchanged in Multilayered Wood Flooring from the People's Republic 
of China: Final Results of Changed Circumstances Review, 79 FR 58740 
(September 30, 2014).
    \14\ Id.
    \15\ See Solar Cells PRC 2016 at 76562.
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    In its CCR Request (and its Amendment), Yihua Tech provided 
evidence demonstrating that its operations are not materially 
dissimilar from those of its predecessor.\16\ Specifically, Yihua Tech 
is managed and operated by the same management teams as those of Yihua 
Timber, with the exception of the change to the general manager, which 
occurred prior to the name change, and was unrelated to the name 
change.\17\ Further, Yihua has not added, or discontinued use of, wood 
flooring production facilities as a result of the change in name.\18\ 
Finally, there have been non-material changes to the company's 
suppliers,\19\ and no changes to the company's customer base.\20\ Based 
on the foregoing, which is explained in greater detail in the 
Preliminary Decision Memorandum, we preliminarily determine that Yihua 
Tech is the successor-in-interest to Yihua Timber and, as such, that it 
is entitled to Yihua Timber's AD cash deposit rate with respect to 
entries of subject merchandise.
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    \16\ See generally CCR Request and Amendment to CCR Request.
    \17\ See CCR Request at Attachments 1 and 5 and Amendment to CCR 
Request at Attachments 2 and 3.
    \18\ See CCR Request at 4 and Attachment 4 and Amendment to CCR 
Request at 2-4 and Attachment 1.
    \19\ See CCR Request at Attachment 9 and Amendment to CCR 
Request at Attachment 4.
    \20\ See CCR Request at Attachment 10.
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CVD Methodology

    As a general rule, in a CVD CCR, the Department will make an 
affirmative CVD successorship finding (i.e., that the respondent 
company is the same subsidized entity for CVD cash deposit purposes as 
the predecessor company) where there is no evidence of significant 
changes in: (1) The respondent's operations; (2) ownership; and (3) 
corporate or legal structure during the relevant period (i.e., the 
``look-back window'') that could have affected the nature and extent of 
the respondent's subsidy levels.\21\ Where the Department makes an 
affirmative CVD successorship finding, the successor's merchandise will 
be entitled to enter under the predecessor's cash deposit rate.\22\
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    \21\ See Certain Lined Paper Products from India: Notice of 
Initiation and Preliminary Results of Countervailing Duty Changed 
Circumstances Review, 79 FR 38011, 38012 (July 3, 2014).
    \22\ Id; Certain Pasta from Turkey: Preliminary Results of 
Countervailing Duty Changed Circumstances Review, 74 FR 47225 
(September 15, 2009).
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    As explained in greater detail in the Preliminary Decision 
Memorandum, we find no evidence of significant changes between Yihua 
Tech's and Yihua Timber's operations, ownership, or its corporate or 
legal structure that could have had an impact on Yihua Tech's subsidies 
levels. Accordingly, we preliminarily determine that Yihua Tech is the 
successor-in-interest to Yihua Timber and, as such, that it is entitled 
to Yihua Timber's CVD cash deposit rate with respect to entries of 
subject merchandise.
    Should our final results remain the same as these preliminary 
results, we will instruct U.S. Customs and Border Protection to assign 
entries of subject merchandise exported by Yihua Tech the AD and CVD 
cash-deposit rates applicable to Yihua Timber, effective the date of 
publication of the final results.

Public Comment

    Interested parties may submit case briefs not later than 14 days 
after the date of publication of this notice.\23\ Rebuttal briefs, 
which must be limited to issues raised in such briefs, may be filed not 
later than seven days after the date of publication of this notice.\24\ 
Parties who submit case briefs or rebuttal briefs in these changed 
circumstances reviews are requested to submit with each argument: (1) A 
statement of the issue; and (2) a brief summary of the argument with an 
electronic version included.\25\
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    \23\ The Department is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \24\ The Department is exercising its discretion under 19 CFR 
351.309(d)(I) to alter the time limit for the filing of rebuttal 
briefs.
    \25\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Any interested party may request a hearing within 14 days of 
publication of this notice.\26\ Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations at the hearing will be limited to 
issues raised in the briefs. If a request for a hearing is made, 
parties will be notified of the time and date for the hearing to be 
held at the U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230 in a room to be determined.\27\
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    \26\ The Department is exercising its discretion under 19 CFR 
351.310(c) to alter the time limit for requesting a hearing.
    \27\ See 19 CFR 351.310(d).
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    All submissions, with limited exceptions, must be filed 
electronically using Enforcement and Compliance's

[[Page 9564]]

Antidumping and Countervailing Duty Centralized Electronic Service 
System (``ACCESS'').\28\ An electronically filed document must be 
received successfully in its entirety by 5 p.m. Eastern Time (``ET'') 
on the due date. Documents excepted from the electronic submission 
requirements must be filed manually (i.e., in paper form) with the APO/
Dockets Unit in Room 18022 and stamped with the date and time of 
receipt by 5 p.m. ET on the due date.\29\
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    \28\ ACCESS is available to registered users at https://access.trade.gov and available to all parties in the Central Records 
Unit, room B8024 of the main Department of Commerce building.
    \29\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures: Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011).
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    Unless extended, consistent with 19 CFR 351.216(e), we intend to 
issue the final results of these changed-circumstances reviews no later 
than 270 days after the date on which these reviews were initiated or 
within 45 days if all parties agree to the outcome of the reviews. We 
intend to issue and publish this initiation and preliminary results 
notice in accordance with sections 751(b)(1) and 777(i)(1) of the Act 
and 19 CFR 351.216 and 351.221(c)(3) of the Departments regulations.

     Dated: February 1, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2017-02467 Filed 2-6-17; 8:45 am]
 BILLING CODE 3510-DS-P