83_FR_48067 83 FR 47883 - Certain Hardwood Plywood Products From the People's Republic of China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty and Countervailing Duty Orders

83 FR 47883 - Certain Hardwood Plywood Products From the People's Republic of China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty and Countervailing Duty Orders

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 184 (September 21, 2018)

Page Range47883-47886
FR Document2018-20609

In response to a request from the Coalition for Fair Trade in Hardwood Plywood (the petitioner), the Department of Commerce (Commerce) is initiating an anti-circumvention inquiry pursuant to section 781(d) of the Tariff Act of 1930, as amended (the Act), to determine whether certain plywood with face and back veneers of radiata and/or agathis pine that is circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain hardwood plywood products from the People's Republic of China (China).

Federal Register, Volume 83 Issue 184 (Friday, September 21, 2018)
[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47883-47886]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20609]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-051/C-570-052]


Certain Hardwood Plywood Products From the People's Republic of 
China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty 
and Countervailing Duty Orders

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

SUMMARY: In response to a request from the Coalition for Fair Trade in 
Hardwood Plywood (the petitioner), the Department of Commerce 
(Commerce) is initiating an anti-circumvention inquiry pursuant to 
section 781(d) of the Tariff Act of 1930, as amended (the Act), to 
determine whether certain plywood with face and back veneers of radiata 
and/or agathis pine that is circumventing the antidumping duty (AD) and 
countervailing duty (CVD) orders on certain hardwood plywood products 
from the People's Republic of China (China).

DATES: Applicable September 21, 2018.

FOR FURTHER INFORMATION CONTACT: Amanda Brings or Ryan Mullen, AD/CVD 
Operations, Office V, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC, 20230; telephone: (202) 482-3927 or (202) 482-5260, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2018, Commerce published in the Federal Register AD 
and CVD Orders on certain hardwood plywood products from China.\1\ On 
June 26, 2018, the petitioner filed a request that Commerce conduct an 
anti-circumvention inquiry pursuant to section 781(d) of the Act with 
respect to certain plywood with a face and back veneer of radiata and/
or agathis pine that: (1) Has a Toxic Substances Control Act (TSCA) or 
California Air Resources Board (CARB) label certifying that it is 
compliant with TSCA/CARB requirements; and (2) is made with a resin, 
the majority of which is comprised of one or more of the following 
three product types--urea formaldehyde, polyvinyl acetate, and/or 
soy.\2\ Specifically, the petitioner alleges that the inquiry 
merchandise was not commercially available prior to the initiation of 
the investigations, and that the inquiry merchandise is being marketed 
by Chinese exporters to U.S. importers as a direct substitute for 
merchandise subject to the Orders.\3\ In the alternative to an anti-
circumvention inquiry pursuant to section 781(d) of the Act, the 
petitioner requests that Commerce initiate an anti-circumvention 
inquiry pursuant to section 781(c) of the Act and find that inquiry 
merchandise constitutes subject merchandise that has undergone minor 
alterations in order to circumvent the Orders.\4\
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    \1\ See Certain Hardwood Plywood Products from the People's 
Republic of China: Amended Final Determination of Sales at Less Than 
Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018) 
and Certain Hardwood Plywood Products from the People's Republic of 
China: Countervailing Duty Order, 82 FR 513 (January 4, 2018) 
(collectively, Orders).
    \2\ See the petitioner's letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Request for Anti-
Circumvention Inquiry,'' dated June 26, 2018 (Petitioner's Request), 
at 6-8.
    \3\ Id.
    \4\ Id. at 33.
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    On July 16, 2018, we received comments objecting to the allegations 
made by the petitioner from U.S. Importers,\5\ Chinese Exporters,\6\ 
IKEA,\7\ and Shelter Forest.\8\ On July 30, 2018, we received rebuttal 
comments from the petitioner \9\ and CNFPIA.10 11
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    \5\ See East Coast Lumber Co., Elberta Crate and Box Co., 
Holland Southwest International, Inc., Laminate Technologies, Inc., 
Liberty Woods International, Inc., Masterbrand Cabinets, Inc., 
McCorry & Company Limited, MJB Wood Group, Inc., Northwest 
Hardwoods, Inc., Patriot Timber Products Inc., Sierra Forest 
Products, Inc., Taraca Pacific, Inc. and USPLY LLC (collectively, 
U.S. Importers) letter, ``Certain Hardwood Plywood Products from the 
People's Republic of China: Objection to Second Request for Anti-
Circumvention Inquiry,'' dated July 16, 2018.
    \6\ See Far East American, Inc., Fei County Hongsheng Wood 
Industry Co., Ltd, Feixian Dongqin Woodwork Co., Ltd, Feixian 
Longteng Wood Co., Ltd., Feixian Tanyi Youcheng Jiafu Plywood 
Factory, Grand Focus Intl. Ltd., Jiangsu Hanbao Building Material 
Co., Ltd, Lin Yi Huasheng Yongbin Wood Co., Lin Yi Tian He Wooden 
Industry Co., Ltd, Linyi Celtic Wood Co., Ltd, Linyi City Lanshan 
District Fubo Wood Factory, Linyi City Lanshan District Fuerda Wood 
Factory, Linyi City Lanshan District Wanmei Board Factory, Linyi 
City Shenrui International Trade Co., Ltd., Linyi Dongfang Bayley 
Wood Co. Ltd., Linyi Dongfangjuxin Wood Co. Ltd., Linyi Evergreen 
Wood Co., Ltd., Linyi Glary Plywood Co. Ltd., Linyi Hengsheng Wood 
Industry Co. Ltd., Linyi Jiahe Wood Industry Co., Ltd., Linyi Linhai 
Wooden Industry Co., Ltd., Linyi Qianfeng Wood Factory, Linyi 
Sanfortune Wood Co. Ltd Linyi Tuopu Zhixin Wooden Industry Co., 
Ltd., Shanghai Futuwood Trading Company Ltd., Sumec International 
Technology Co., Ltd., Suzhou Oriental Dragon Import And Export Corp. 
Ltd., Xu Zhou Changcheng Wood Co., Ltd., Xuzhou Camry Wood Co., 
Ltd., Xuzhou Golden River Wood Co., Ltd., and Xuzhou Jiangyang Wood 
Industries Co., Ltd., Xuzhou Longyuan Wood Industry Co., Ltd. 
(collectively, Chinese Exporters) letter, ``Hardwood Plywood from 
the People's Republic of China Comments In Opposition to Request for 
Anti-Circumvention Inquiry: Certain Softwood Species,'' dated July 
16, 2018.
    \7\ See IKEA Supply AG (IKEA) letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Comments Related to 
Petitioner's Second Anti-Circumvention Inquiry Request,'' dated July 
16, 2018.
    \8\ See Shelter Forest International Acquisition, Inc., Xuzhou 
Shelter Import & Export Co., Ltd., and Shandong Shelter Forest 
Products Co., Ltd. (collectively, Shelter Forest) letter ``Comment 
on Certain U.S. Producers' Request for Anti-Circumvention Inquiry 
Certain Hardwood Plywood Products from China,'' dated July 16, 2018.
    \9\ See China National Forest Products Industry Association and 
its members Dangshan County Gui Yang Wood Industry Co., Ltd., 
Shandong Dongfang Bayley Wood Co., Ltd., and Pingyi Jinniu Wood Co., 
Ltd., (CNFPIA) letter, ``Hardwood Plywood Products from the People's 
Republic of China: Rebuttal Comments in Opposition to Petitioner's 
Second Anti-Circumvention Inquiry Request,'' dated July 30, 2018.
    \10\ See the petitioner letter, ``Certain Hardwood Plywood 
Products from the People's Republic of China: Rebuttal Comments,'' 
dated July 30, 2018.
    \11\ After consideration of the comments filed by interested 
parties in opposition to the initiation of the petitioner's 
circumvention allegation, Commerce will address the arguments and 
factual information presented in the comments during the course of 
this anti-circumvention inquiry.
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Scope of the Orders

    The merchandise covered by the Orders is hardwood and decorative

[[Page 47884]]

plywood, and certain veneered panels as described below. For purposes 
of the Orders, hardwood and decorative plywood is defined as a 
generally flat, multilayered plywood or other veneered panel, 
consisting of two or more layers or plies of wood veneers and a core, 
with the face and/or back veneer made of non-coniferous wood (hardwood) 
or bamboo. The veneers, along with the core may be glued or otherwise 
bonded together. Hardwood and decorative plywood may include products 
that meet the American National Standard for Hardwood and Decorative 
Plywood, ANSI/HPVA HP1-2016 (including any revisions to that standard).
    For purposes of the Orders a ``veneer'' is a slice of wood 
regardless of thickness which is cut, sliced or sawed from a log, bolt, 
or flitch. The face and back veneers are the outermost veneer of wood 
on either side of the core irrespective of additional surface coatings 
or covers as described below.
    The core of hardwood and decorative plywood consists of the layer 
or layers of one or more material(s) that are situated between the face 
and back veneers. The core may be composed of a range of materials, 
including but not limited to hardwood, softwood, particleboard, or 
medium density fiberboard (MDF).
    All hardwood plywood is included within the scope of the Orders 
regardless of whether or not the face and/or back veneers are surface 
coated or covered and whether or not such surface coating(s) or covers 
obscures the grain, textures, or markings of the wood. Examples of 
surface coatings and covers include, but are not limited to: Ultra 
violet light cured polyurethanes; oil or oil-modified or water based 
polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; 
paints; stains; paper; aluminum; high pressure laminate; MDF; medium 
density overlay (MDO); and phenolic film. Additionally, the face veneer 
of hardwood plywood may be sanded; smoothed or given a ``distressed'' 
appearance through such methods as hand-scraping or wire brushing. All 
hardwood plywood is included within the scope even if it is trimmed; 
cut-to-size; notched; punched; drilled; or has underwent other forms of 
minor processing. All hardwood and decorative plywood is included 
within the scope of the Orders, without regard to dimension (overall 
thickness, thickness of face veneer, thickness of back veneer, 
thickness of core, thickness of inner veneers, width, or length). 
However, the most common panel sizes of hardwood and decorative plywood 
are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), 
and 1219 x 3048 mm (48 x 120 inches).
    Subject merchandise also includes hardwood and decorative plywood 
that has been further processed in a third country, including but not 
limited to trimming, cutting, notching, punching, drilling, or any 
other processing that would not otherwise remove the merchandise from 
the scope of the order if performed in the country of manufacture of 
the in-scope product. The scope of the Orders excludes the following 
items: (1) Structural plywood (also known as ``industrial plywood'' or 
``industrial panels'') that is manufactured to meet U.S. Products 
Standard PS 1-09, PS 2-09, or PS 2-10 for Structural Plywood (including 
any revisions to that standard or any substantially equivalent 
international standard intended for structural plywood), and which has 
both a face and a back veneer of coniferous wood; (2) products which 
have a face and back veneer of cork; (3) multilayered wood flooring, as 
described in the antidumping duty and countervailing duty orders on 
Multilayered Wood Flooring from the People's Republic of China, Import 
Administration, International Trade Administration. See Multilayered 
Wood Flooring from the People's Republic of China, 76 FR 76690 
(December 8, 2011) (amended final determination of sales at less than 
fair value and antidumping duty order), and Multilayered Wood Flooring 
from the People's Republic of China, 76 FR 76693 (December 8, 2011) 
(countervailing duty order), as amended by Multilayered Wood Flooring 
from the People's Republic of China: Amended Antidumping and 
Countervailing Duty Orders, 77 FR 5484 (February 3, 2012); (4) 
multilayered wood flooring with a face veneer of bamboo or composed 
entirely of bamboo; (5) plywood which has a shape or design other than 
a flat panel, with the exception of any minor processing described 
above; (6) products made entirely from bamboo and adhesives (also known 
as ``solid bamboo''); and (7) Phenolic Film Faced Plyform (PFF), also 
known as Phenolic Surface Film Plywood (PSF), defined as a panel with 
an ``Exterior'' or ``Exposure 1'' bond classification as is defined by 
The Engineered Wood Association, having an opaque phenolic film layer 
with a weight equal to or greater than 90g/m3 permanently bonded on 
both the face and back veneers and an opaque, moisture resistant 
coating applied to the edges.
    Excluded from the scope of the Orders are wooden furniture goods 
that, at the time of importation, are fully assembled and are ready for 
their intended uses. Also excluded from the scope of the Orders is 
``ready to assemble'' (RTA) furniture. RTA furniture is defined as (A) 
furniture packaged for sale for ultimate purchase by an end-user that, 
at the time of importation, includes (1) all wooden components (in 
finished form) required to assemble a finished unit of furniture, (2) 
all accessory parts (e.g., screws, washers, dowels, nails, handles, 
knobs, adhesive glues) required to assemble a finished unit of 
furniture, and 3) instructions providing guidance on the assembly of a 
finished unit of furniture; (B) unassembled bathroom vanity cabinets, 
having a space for one or more sinks, that are imported with all 
unassembled hardwood and hardwood plywood components that have been 
cut-to-final dimensional component shape/size, painted or stained prior 
to importation, and stacked within a singled shipping package, except 
for furniture feet which may be packed and shipped separately; or (C) 
unassembled bathroom vanity linen closets that are imported with all 
unassembled hardwood and hardwood plywood components that have been 
cut-to-final dimensional shape/size, painted or stained prior to 
importation, and stacked within a single shipping package, except for 
furniture feet which may be packed and shipped separately.
    Excluded from the scope of the Orders are kitchen cabinets that, at 
the time of importation, are fully assembled and are ready for their 
intended uses. Also excluded from the scope of the Orders are RTA 
kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets 
packaged for sale for ultimate purchase by an end-user that, at the 
time of importation, includes (1) all wooden components (in finished 
form) required to assemble a finished unit of cabinetry, (2) all 
accessory parts (e.g., screws, washers, dowels, nails, handles, knobs, 
hooks, adhesive glues) required to assemble a finished unit of 
cabinetry, and (3) instructions providing guidance on the assembly of a 
finished unit of cabinetry.
    Excluded from the scope of the Orders are finished table tops, 
which are table tops imported in finished form with pre-cut or drilled 
openings to attach the underframe or legs. The table tops are ready for 
use at the time of import and require no further finishing or 
processing.
    Excluded from the scope of the Orders are finished countertops that 
are imported in finished form and require no further finishing or 
manufacturing.
    Excluded from the scope of the Orders are laminated veneer lumber 
door and window components with (1) a maximum width of 44 millimeters, 
a

[[Page 47885]]

thickness from 30 millimeters to 72 millimeters, and a length of less 
than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a 
modulus of elasticity of 1,500,000 pounds per square inch or higher, 
(4) finger-jointed or lap-jointed core veneer with all layers oriented 
so that the grain is running parallel or with no more than 3 dispersed 
layers of veneer oriented with the grain running perpendicular to the 
other layers; and (5) top layer machined with a curved edge and one or 
more profile channels throughout.
    Imports of hardwood plywood are primarily entered under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4412.10.0500;4412.31.0520; 4412.31.0540; 4412.31.0560; 
4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 
4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 
4412.31.4075; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4160; 
4412.31.4180; 4412.31.5125; 4412.31.5135; 4412.31.5155; 4412.31.5165; 
4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5265; 4412.31.5275; 
4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 
4412.32.0540; 4412.32.0565; 4412.32.0570; 4412.32.0620; 4412.32.0640; 
4412.32.0670; 4412.32.2510; 4412.32.2525; 4412.32.2530; 4412.32.2610; 
4412.32.2630; 4412.32.3125; 4412.32.3135; 4412.32.3155; 4412.32.3165; 
4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 
4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.3235; 4412.32.3255; 
4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5700; 4412.94.1030; 
4412.94.1050; 4412.94.3105; 4412.94.3111; 4412.94.3121; 4412.94.3141; 
4412.94.3161; 4412.94.3175; 4412.94.4100; 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; 
4412.99.5115; and 4412.99.5710.
    Imports of hardwood plywood may also enter under HTSUS subheadings 
4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.10.9000; 
4412.94.5100; 4412.94.9500; and 4412.99.9500. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of the Orders is dispositive.

Merchandise Subject to the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers plywood with face and back 
veneers made of radiata and/or agathis pine that: (1) Has a TSCA or 
CARB label certifying that it is compliant with TSCA/CARB requirements; 
and (2) is made with a resin, the majority of which is comprised of one 
or more of the following three product types--urea formaldehyde, 
polyvinyl acetate, and/or soy.

Request for a Later-Developed Merchandise Anti-Circumvention Inquiry

    Section 781(d)(1) of the Act provides that Commerce may initiate an 
anti-circumvention inquiry to determine whether merchandise developed 
after an AD or CVD investigation (later-developed merchandise) is 
within the scope of the order(s). In conducting later-developed 
merchandise anti-circumvention inquiries under section 781(d)(1) of the 
Act, Commerce will evaluate whether the general physical 
characteristics of the merchandise under consideration are the same as 
subject merchandise covered by the order, whether the expectations of 
the ultimate purchasers of the merchandise under consideration are no 
different than the expectations of the ultimate purchases of subject 
merchandise, whether the ultimate use of the subject merchandise and 
the merchandise under consideration are the same, whether the channels 
of trade of both products are the same, whether there are any 
differences in the advertisement and display of both products,\12\ and 
if the merchandise under consideration was commercially available at 
the time of the investigation, i.e., the product was present in the 
commercial market or the product was tested and ready for commercial 
production.\13\
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    \12\ See section 781(d)(1) of the Act.
    \13\ See Later-Developed Merchandise Anticircumvention Inquiry 
of the Antidumping Duty Order on Petroleum Wax Candles from the 
People's Republic of China: Affirmative Preliminary Determination of 
Circumvention of the Antidumping Duty Order, 71 FR 32033, 32035 
(June 2, 2006) unchanged in Later-Developed Merchandise 
Anticircumvention Inquiry of the Antidumping Duty Order on Petroleum 
Wax Candles from the People's Republic of China: Affirmative Final 
Determination of Circumvention of the Antidumping Duty Order, 71 FR 
59075 (October 6, 2006).
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A. Physical Characteristics

    According to the petitioner, Chinese exporters who used to offer 
subject merchandise with at least one side, either face or back veneer, 
made of hardwood instead are now offering plywood with both sides made 
with radiata pine and/or agathis pine, with the same interior and 
decorative uses as subject merchandise. The petitioner further argues 
that given that the merchandise is being offered as a direct substitute 
for subject merchandise, it is, therefore, interchangeable and serve 
the same end-use.\14\ The petitioner states that inquiry merchandise 
and subject merchandise are manufactured to the same dimensions, and 
that the same equipment used to peel radiata and agathis veneers can be 
used to peel the veneers used for subject merchandise.\15\ The 
petitioner claims that the inquiry merchandise and the subject 
merchandise will likely have the same TSCA/CARB label requirements and 
use similar glue types.\16\
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    \14\ See Petitioner's Request at 26-27.
    \15\ Id. at 28.
    \16\ Id.
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B. Advertisement, Display, and Channel of Trade

    The petitioner claims that the channel of trade for merchandise 
related to the circumvention inquiry and merchandise subject to the 
Orders is the same, as the same Chinese producers are selling and 
marketing the product to the same U.S. importers who previously bought 
subject merchandise before the investigations. Online advertisement 
also describes the inquiry and subject merchandise in the same 
language, acknowledging that radiata pine plywood is ``similar'' to 
birch and oak plywood.\17\
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    \17\ Id. at 31.
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C. Commercial Availability

    While the petitioner acknowledges that plywood with either a face 
or back veneer of radiata pine and/or agathis pine was commercially 
available prior to the investigations, they claim that plywood with 
both a face and back veneer of radiata and/or agathis pine that also: 
(1) Has a TSCA or CARB label certifying that it is compliant with TSCA/
CARB requirements; and (2) is made with a resin, the majority of which 
is comprised of one or more of the following three product types--urea 
formaldehyde, polyvinyl acetate, and/or soy) was not commercially 
available.\18\
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    \18\ Id. at 22.
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    The petitioner asserts that multiple members of the Coalition for 
Fair Trade in Hardwood Plywood and their sales representatives, as well 
as the President of the Decorative Hardwoods Association (formerly the 
Hardwood Plywood and Veneer Association) all

[[Page 47886]]

confirm that they had not heard of, or seen, the inquiry merchandise 
prior to initiation of the investigations.\19\ The petitioner claims 
that a comparison between sales and marketing literature issued prior 
to the initiation of the investigations and sales and marketing 
literature issued after the initiation of the investigations 
demonstrates that the inquiry merchandise was not commercially 
available prior to the initiation of the investigations.\20\
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    \19\ Id. at 23.
    \20\ Id. at 24.
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D. Expectations of Ultimate Purchasers

    The petitioner argues that the expectations of the ultimate 
purchasers of subject merchandise and inquiry merchandise are the same. 
The petitioner states that subject merchandise is generally chosen for 
its decorative and aesthetic qualities and is used in products such as 
furniture, kitchen cabinets, architectural woodwork, wall paneling, and 
other similar products, and that the distinguishing characteristic of 
subject merchandise is that it is primarily used in interior and non-
structural applications.\21\ The petitioner claims that online offers 
of inquiry merchandise (highlighting the same characteristics as 
subject merchandise and offering inquiry merchandise for the same 
applications as subject merchandise) confirms that the expectations of 
the ultimate purchasers of inquiry merchandise and subject merchandise 
are the same.\22\ The petitioner argues that any plywood used in 
interior/decorative applications must be labeled as TSCA/CARB 
compliant, and that the ultimate purchasers would expect that both 
subject merchandise and inquiry merchandise would have certifying 
labels that the plywood is compliant with TSCA/CARB requirements.\23\
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    \21\ Id. at 28-30.
    \22\ Id.
    \23\ Id.
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E. Ultimate Use

    The petitioner asserts that the ultimate use of both the subject 
merchandise and inquiry merchandise is identical. Further, they claim 
that inquiry merchandise is offered in the same dimensions as subject 
merchandise, as well as both being offered for the same decorative or 
interior purposes, such as cabinetry, furniture, and other 
functions.\24\
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    \24\ Id. at 30.
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F. Channels of Trade

    The petitioner argues that the channels of trade for inquiry 
merchandise and subject merchandise are the same, because the same 
Chinese producers and exporters and domestic importers who previously 
offered subject merchandise are now offering inquiry merchandise as a 
direct alternative to the same customers.\25\ The petitioner also 
states that online offers describe inquiry merchandise and subject 
merchandise with hardwood face and back veneers in the same manner.\26\ 
The petitioner explains that big-box retailers include inquiry 
merchandise under the ``Hardwood Plywood'' category on their 
websites.\27\
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    \25\ Id. at 31.
    \26\ Id.
    \27\ Id.
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G. Advertisement and Display

    The petitioner argues that inquiry merchandise is advertised and 
displayed in the same manner as subject merchandise, because Chinese 
producers and exporters and domestic importers are offering inquiry 
merchandise to the same customers who used to purchase subject 
merchandise with at least one side made of hardwood, as a direct 
alternative, and inquiry merchandise is being offered for the same 
applications as subject merchandise.\28\ The petitioner claims that 
inquiry merchandise is described in the same manner as subject 
merchandise in advertisements.\29\
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    \28\ Id. at 32.
    \29\ Id.
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Conclusion

    Based on the information provided by the petitioner, Commerce finds 
there is sufficient basis to initiate an anti-circumvention inquiry, 
pursuant to section 781(d) of the Act.\30\ Commerce will determine 
whether the merchandise subject to the inquiry (identified in the 
``Merchandise Subject to the Anti-Circumvention Inquiry'' section 
above) represents a later-developed product that can be considered 
subject to the Orders. Commerce will not order the suspension of 
liquidation of entries of any additional merchandise at this time. 
However, in accordance with 19 CFR 351.225(l)(2), if Commerce issues a 
preliminary affirmative determination, we will then instruct U.S. 
Customs and Border Protection to suspend liquidation and require a cash 
deposit of estimated duties, at the applicable rate, for each 
unliquidated entry of the merchandise at issue, entered or withdrawn 
from warehouse for consumption on or after the date of initiation of 
the inquiry. In the event we issue a preliminary affirmative 
determination of circumvention pursuant to section 781(d) of the act 
(later-developed merchandise), we intend to notify the International 
Trade Commission, in accordance with section 781(e)(1) of the Act and 
19 CFR 351.225(f)(7)(i)(C), if applicable. Commerce will establish a 
schedule for questionnaires and comments on the issues. In connection 
with this anti-circumvention inquiry, in order to determine the extent 
to which a country-wide finding applicable to all exports might be 
warranted, as alleged by the petitioner, Commerce will issue 
questionnaires to potential Chinese producers or exporters of inquiry 
merchandise to the United States. Companies failing to respond 
completely and timely to Commerce's questionnaire may be deemed 
uncooperative and an adverse inference may be applied in determining 
whether such companies are circumventing the Orders. See section 776 of 
the Act. Commerce intends to issue its final determination within 300 
days of this initiation, in accordance with section 781(f) of the Act.
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    \30\ Because we have determined to initiate an anti-
circumvention inquiry pursuant to section 781(d) of the Act, we do 
not address the petitioner's request to alternatively initiate an 
anti-circumvention inquiry pursuant to section 781(c) of the Act.
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    This notice is published in accordance with section 781(d) of the 
Act and 19 CFR 351.225(j).

    Dated: September 18, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-20609 Filed 9-20-18; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                           Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices                                                    47883

                                               Appendix II                                             26, 2018, the petitioner filed a request               Importers,5 Chinese Exporters,6 IKEA,7
                                               List of Topics Discussed in the Preliminary             that Commerce conduct an anti-                         and Shelter Forest.8 On July 30, 2018,
                                               Decision Memorandum                                     circumvention inquiry pursuant to                      we received rebuttal comments from the
                                                                                                       section 781(d) of the Act with respect to              petitioner 9 and CNFPIA.10 11
                                               I. Summary                                              certain plywood with a face and back
                                               II. Background                                                                                                 Scope of the Orders
                                                                                                       veneer of radiata and/or agathis pine
                                               III. Injury Test                                                                                                 The merchandise covered by the
                                               IV. Application of the CVD Law to Imports               that: (1) Has a Toxic Substances Control
                                                                                                                                                              Orders is hardwood and decorative
                                                    From the China                                     Act (TSCA) or California Air Resources
                                               V. Diversification of China’s Economy                   Board (CARB) label certifying that it is                 5 See East Coast Lumber Co., Elberta Crate and
                                               VI. Use of Facts Otherwise Available and                compliant with TSCA/CARB                               Box Co., Holland Southwest International, Inc.,
                                                    Adverse Inferences                                 requirements; and (2) is made with a                   Laminate Technologies, Inc., Liberty Woods
                                               VII. Subsidies Valuation                                resin, the majority of which is                        International, Inc., Masterbrand Cabinets, Inc.,
                                               VIII. Benchmarks and Interest Rates                                                                            McCorry & Company Limited, MJB Wood Group,
                                               IX. Analysis of Programs
                                                                                                       comprised of one or more of the                        Inc., Northwest Hardwoods, Inc., Patriot Timber
                                               X. Conclusion                                           following three product types—urea                     Products Inc., Sierra Forest Products, Inc., Taraca
                                                                                                       formaldehyde, polyvinyl acetate, and/or                Pacific, Inc. and USPLY LLC (collectively, U.S.
                                               [FR Doc. 2018–20604 Filed 9–20–18; 8:45 am]                                                                    Importers) letter, ‘‘Certain Hardwood Plywood
                                                                                                       soy.2 Specifically, the petitioner alleges             Products from the People’s Republic of China:
                                               BILLING CODE 3510–DS–P
                                                                                                       that the inquiry merchandise was not                   Objection to Second Request for Anti-
                                                                                                       commercially available prior to the                    Circumvention Inquiry,’’ dated July 16, 2018.
                                                                                                                                                                6 See Far East American, Inc., Fei County
                                               DEPARTMENT OF COMMERCE                                  initiation of the investigations, and that             Hongsheng Wood Industry Co., Ltd, Feixian
                                                                                                       the inquiry merchandise is being                       Dongqin Woodwork Co., Ltd, Feixian Longteng
                                               International Trade Administration                      marketed by Chinese exporters to U.S.                  Wood Co., Ltd., Feixian Tanyi Youcheng Jiafu
                                                                                                                                                              Plywood Factory, Grand Focus Intl. Ltd., Jiangsu
                                               [A–570–051/C–570–052]                                   importers as a direct substitute for                   Hanbao Building Material Co., Ltd, Lin Yi
                                                                                                       merchandise subject to the Orders.3 In                 Huasheng Yongbin Wood Co., Lin Yi Tian He
                                               Certain Hardwood Plywood Products                       the alternative to an anti-circumvention               Wooden Industry Co., Ltd, Linyi Celtic Wood Co.,
                                                                                                                                                              Ltd, Linyi City Lanshan District Fubo Wood
                                               From the People’s Republic of China:                    inquiry pursuant to section 781(d) of the              Factory, Linyi City Lanshan District Fuerda Wood
                                               Initiation of Anti-Circumvention Inquiry                Act, the petitioner requests that                      Factory, Linyi City Lanshan District Wanmei Board
                                               on the Antidumping Duty and                             Commerce initiate an anti-                             Factory, Linyi City Shenrui International Trade Co.,
                                               Countervailing Duty Orders                              circumvention inquiry pursuant to                      Ltd., Linyi Dongfang Bayley Wood Co. Ltd., Linyi
                                                                                                                                                              Dongfangjuxin Wood Co. Ltd., Linyi Evergreen
                                                                                                       section 781(c) of the Act and find that                Wood Co., Ltd., Linyi Glary Plywood Co. Ltd., Linyi
                                               AGENCY:   Enforcement & Compliance,
                                               International Trade Administration,                     inquiry merchandise constitutes subject                Hengsheng Wood Industry Co. Ltd., Linyi Jiahe
                                                                                                       merchandise that has undergone minor                   Wood Industry Co., Ltd., Linyi Linhai Wooden
                                               Department of Commerce.                                                                                        Industry Co., Ltd., Linyi Qianfeng Wood Factory,
                                                                                                       alterations in order to circumvent the                 Linyi Sanfortune Wood Co. Ltd Linyi Tuopu Zhixin
                                               SUMMARY: In response to a request from
                                                                                                       Orders.4                                               Wooden Industry Co., Ltd., Shanghai Futuwood
                                               the Coalition for Fair Trade in                                                                                Trading Company Ltd., Sumec International
                                               Hardwood Plywood (the petitioner), the                    On July 16, 2018, we received                        Technology Co., Ltd., Suzhou Oriental Dragon
                                               Department of Commerce (Commerce) is                    comments objecting to the allegations                  Import And Export Corp. Ltd., Xu Zhou
                                               initiating an anti-circumvention inquiry                made by the petitioner from U.S.                       Changcheng Wood Co., Ltd., Xuzhou Camry Wood
                                                                                                                                                              Co., Ltd., Xuzhou Golden River Wood Co., Ltd., and
                                               pursuant to section 781(d) of the Tariff                                                                       Xuzhou Jiangyang Wood Industries Co., Ltd.,
                                               Act of 1930, as amended (the Act), to                                                                          Xuzhou Longyuan Wood Industry Co., Ltd.
                                               determine whether certain plywood                                                                              (collectively, Chinese Exporters) letter, ‘‘Hardwood
                                                                                                                                                              Plywood from the People’s Republic of China
                                               with face and back veneers of radiata                                                                          Comments In Opposition to Request for Anti-
                                               and/or agathis pine that is                                                                                    Circumvention Inquiry: Certain Softwood Species,’’
                                               circumventing the antidumping duty                                                                             dated July 16, 2018.
                                               (AD) and countervailing duty (CVD)                                                                               7 See IKEA Supply AG (IKEA) letter, ‘‘Certain

                                               orders on certain hardwood plywood                                                                             Hardwood Plywood Products from the People’s
                                                                                                                                                              Republic of China: Comments Related to
                                               products from the People’s Republic of                                                                         Petitioner’s Second Anti-Circumvention Inquiry
                                               China (China).                                                                                                 Request,’’ dated July 16, 2018.
                                                                                                                                                                8 See Shelter Forest International Acquisition,
                                               DATES: Applicable September 21, 2018.
                                                                                                                                                              Inc., Xuzhou Shelter Import & Export Co., Ltd., and
                                               FOR FURTHER INFORMATION CONTACT:                                                                               Shandong Shelter Forest Products Co., Ltd.
                                               Amanda Brings or Ryan Mullen, AD/                                                                              (collectively, Shelter Forest) letter ‘‘Comment on
                                               CVD Operations, Office V, Enforcement                                                                          Certain U.S. Producers’ Request for Anti-
                                                                                                                                                              Circumvention Inquiry Certain Hardwood Plywood
                                               & Compliance, International Trade                                                                              Products from China,’’ dated July 16, 2018.
                                               Administration, U.S. Department of                                                                               9 See China National Forest Products Industry

                                               Commerce, 1401 Constitution Avenue                                                                             Association and its members Dangshan County Gui
                                               NW, Washington, DC, 20230; telephone:                                                                          Yang Wood Industry Co., Ltd., Shandong Dongfang
                                                                                                                                                              Bayley Wood Co., Ltd., and Pingyi Jinniu Wood Co.,
                                               (202) 482–3927 or (202) 482–5260,                                                                              Ltd., (CNFPIA) letter, ‘‘Hardwood Plywood
                                               respectively.                                           Determination of Sales at Less Than Fair Value,        Products from the People’s Republic of China:
                                                                                                       and Antidumping Duty Order, 83 FR 504 (January         Rebuttal Comments in Opposition to Petitioner’s
                                               SUPPLEMENTARY INFORMATION:                              4, 2018) and Certain Hardwood Plywood Products         Second Anti-Circumvention Inquiry Request,’’
                                               Background                                              from the People’s Republic of China: Countervailing    dated July 30, 2018.
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                                                                                                       Duty Order, 82 FR 513 (January 4, 2018)                  10 See the petitioner letter, ‘‘Certain Hardwood

                                                 On January 4, 2018, Commerce                          (collectively, Orders).                                Plywood Products from the People’s Republic of
                                               published in the Federal Register AD                       2 See the petitioner’s letter, ‘‘Certain Hardwood   China: Rebuttal Comments,’’ dated July 30, 2018.
                                                                                                                                                                11 After consideration of the comments filed by
                                               and CVD Orders on certain hardwood                      Plywood Products from the People’s Republic of
                                                                                                                                                              interested parties in opposition to the initiation of
                                               plywood products from China.1 On June                   China: Request for Anti-Circumvention Inquiry,’’
                                                                                                                                                              the petitioner’s circumvention allegation,
                                                                                                       dated June 26, 2018 (Petitioner’s Request), at 6–8.
                                                                                                                                                              Commerce will address the arguments and factual
                                                 1 See Certain Hardwood Plywood Products from             3 Id.
                                                                                                                                                              information presented in the comments during the
                                               the People’s Republic of China: Amended Final              4 Id. at 33.                                        course of this anti-circumvention inquiry.



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                                               47884                       Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices

                                               plywood, and certain veneered panels                    1219 x 2438 mm (48 x 96 inches), and                  Also excluded from the scope of the
                                               as described below. For purposes of the                 1219 x 3048 mm (48 x 120 inches).                     Orders is ‘‘ready to assemble’’ (RTA)
                                               Orders, hardwood and decorative                            Subject merchandise also includes                  furniture. RTA furniture is defined as
                                               plywood is defined as a generally flat,                 hardwood and decorative plywood that                  (A) furniture packaged for sale for
                                               multilayered plywood or other veneered                  has been further processed in a third                 ultimate purchase by an end-user that,
                                               panel, consisting of two or more layers                 country, including but not limited to                 at the time of importation, includes (1)
                                               or plies of wood veneers and a core,                    trimming, cutting, notching, punching,                all wooden components (in finished
                                               with the face and/or back veneer made                   drilling, or any other processing that                form) required to assemble a finished
                                               of non-coniferous wood (hardwood) or                    would not otherwise remove the                        unit of furniture, (2) all accessory parts
                                               bamboo. The veneers, along with the                     merchandise from the scope of the order               (e.g., screws, washers, dowels, nails,
                                               core may be glued or otherwise bonded                   if performed in the country of                        handles, knobs, adhesive glues) required
                                               together. Hardwood and decorative                       manufacture of the in-scope product.                  to assemble a finished unit of furniture,
                                               plywood may include products that                       The scope of the Orders excludes the                  and 3) instructions providing guidance
                                               meet the American National Standard                     following items: (1) Structural plywood               on the assembly of a finished unit of
                                               for Hardwood and Decorative Plywood,                    (also known as ‘‘industrial plywood’’ or              furniture; (B) unassembled bathroom
                                               ANSI/HPVA HP1–2016 (including any                       ‘‘industrial panels’’) that is                        vanity cabinets, having a space for one
                                               revisions to that standard).                            manufactured to meet U.S. Products                    or more sinks, that are imported with all
                                                  For purposes of the Orders a ‘‘veneer’’              Standard PS 1–09, PS 2–09, or PS 2–10                 unassembled hardwood and hardwood
                                               is a slice of wood regardless of thickness              for Structural Plywood (including any                 plywood components that have been
                                               which is cut, sliced or sawed from a log,               revisions to that standard or any                     cut-to-final dimensional component
                                               bolt, or flitch. The face and back veneers              substantially equivalent international                shape/size, painted or stained prior to
                                               are the outermost veneer of wood on                     standard intended for structural                      importation, and stacked within a
                                               either side of the core irrespective of                 plywood), and which has both a face                   singled shipping package, except for
                                               additional surface coatings or covers as                and a back veneer of coniferous wood;                 furniture feet which may be packed and
                                               described below.                                        (2) products which have a face and back               shipped separately; or (C) unassembled
                                                  The core of hardwood and decorative                  veneer of cork; (3) multilayered wood                 bathroom vanity linen closets that are
                                               plywood consists of the layer or layers                 flooring, as described in the                         imported with all unassembled
                                               of one or more material(s) that are                     antidumping duty and countervailing                   hardwood and hardwood plywood
                                               situated between the face and back                      duty orders on Multilayered Wood                      components that have been cut-to-final
                                               veneers. The core may be composed of                    Flooring from the People’s Republic of                dimensional shape/size, painted or
                                               a range of materials, including but not                 China, Import Administration,                         stained prior to importation, and
                                               limited to hardwood, softwood,                          International Trade Administration. See               stacked within a single shipping
                                               particleboard, or medium density                        Multilayered Wood Flooring from the                   package, except for furniture feet which
                                               fiberboard (MDF).                                       People’s Republic of China, 76 FR 76690               may be packed and shipped separately.
                                                  All hardwood plywood is included                     (December 8, 2011) (amended final                        Excluded from the scope of the Orders
                                               within the scope of the Orders                          determination of sales at less than fair              are kitchen cabinets that, at the time of
                                               regardless of whether or not the face                   value and antidumping duty order), and                importation, are fully assembled and are
                                               and/or back veneers are surface coated                  Multilayered Wood Flooring from the                   ready for their intended uses. Also
                                               or covered and whether or not such                      People’s Republic of China, 76 FR 76693               excluded from the scope of the Orders
                                               surface coating(s) or covers obscures the               (December 8, 2011) (countervailing duty               are RTA kitchen cabinets. RTA kitchen
                                               grain, textures, or markings of the wood.               order), as amended by Multilayered                    cabinets are defined as kitchen cabinets
                                               Examples of surface coatings and covers                 Wood Flooring from the People’s                       packaged for sale for ultimate purchase
                                               include, but are not limited to: Ultra                  Republic of China: Amended                            by an end-user that, at the time of
                                               violet light cured polyurethanes; oil or                Antidumping and Countervailing Duty                   importation, includes (1) all wooden
                                               oil-modified or water based                             Orders, 77 FR 5484 (February 3, 2012);                components (in finished form) required
                                               polyurethanes; wax; epoxy-ester                         (4) multilayered wood flooring with a                 to assemble a finished unit of cabinetry,
                                               finishes; moisture-cured urethanes;                     face veneer of bamboo or composed                     (2) all accessory parts (e.g., screws,
                                               paints; stains; paper; aluminum; high                   entirely of bamboo; (5) plywood which                 washers, dowels, nails, handles, knobs,
                                               pressure laminate; MDF; medium                          has a shape or design other than a flat               hooks, adhesive glues) required to
                                               density overlay (MDO); and phenolic                     panel, with the exception of any minor                assemble a finished unit of cabinetry,
                                               film. Additionally, the face veneer of                  processing described above; (6) products              and (3) instructions providing guidance
                                               hardwood plywood may be sanded;                         made entirely from bamboo and                         on the assembly of a finished unit of
                                               smoothed or given a ‘‘distressed’’                      adhesives (also known as ‘‘solid                      cabinetry.
                                               appearance through such methods as                      bamboo’’); and (7) Phenolic Film Faced                   Excluded from the scope of the Orders
                                               hand-scraping or wire brushing. All                     Plyform (PFF), also known as Phenolic                 are finished table tops, which are table
                                               hardwood plywood is included within                     Surface Film Plywood (PSF), defined as                tops imported in finished form with pre-
                                               the scope even if it is trimmed; cut-to-                a panel with an ‘‘Exterior’’ or ‘‘Exposure            cut or drilled openings to attach the
                                               size; notched; punched; drilled; or has                 1’’ bond classification as is defined by              underframe or legs. The table tops are
                                               underwent other forms of minor                          The Engineered Wood Association,                      ready for use at the time of import and
                                               processing. All hardwood and                            having an opaque phenolic film layer                  require no further finishing or
                                               decorative plywood is included within                   with a weight equal to or greater than                processing.
                                               the scope of the Orders, without regard                 90g/m3 permanently bonded on both                        Excluded from the scope of the Orders
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                                               to dimension (overall thickness,                        the face and back veneers and an                      are finished countertops that are
                                               thickness of face veneer, thickness of                  opaque, moisture resistant coating                    imported in finished form and require
                                               back veneer, thickness of core, thickness               applied to the edges.                                 no further finishing or manufacturing.
                                               of inner veneers, width, or length).                       Excluded from the scope of the Orders                 Excluded from the scope of the Orders
                                               However, the most common panel sizes                    are wooden furniture goods that, at the               are laminated veneer lumber door and
                                               of hardwood and decorative plywood                      time of importation, are fully assembled              window components with (1) a
                                               are 1219 x 1829 mm (48 x 72 inches),                    and are ready for their intended uses.                maximum width of 44 millimeters, a


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                                                                           Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices                                                     47885

                                               thickness from 30 millimeters to 72                     the written description of the scope of               either face or back veneer, made of
                                               millimeters, and a length of less than                  the Orders is dispositive.                            hardwood instead are now offering
                                               2413 millimeters, (2) water boiling point                                                                     plywood with both sides made with
                                                                                                       Merchandise Subject to the Anti-
                                               exterior adhesive, (3) a modulus of                                                                           radiata pine and/or agathis pine, with
                                                                                                       Circumvention Inquiry
                                               elasticity of 1,500,000 pounds per                                                                            the same interior and decorative uses as
                                               square inch or higher, (4) finger-jointed                  This anti-circumvention inquiry                    subject merchandise. The petitioner
                                               or lap-jointed core veneer with all layers              covers plywood with face and back                     further argues that given that the
                                               oriented so that the grain is running                   veneers made of radiata and/or agathis                merchandise is being offered as a direct
                                               parallel or with no more than 3                         pine that: (1) Has a TSCA or CARB label               substitute for subject merchandise, it is,
                                               dispersed layers of veneer oriented with                certifying that it is compliant with                  therefore, interchangeable and serve the
                                               the grain running perpendicular to the                  TSCA/CARB requirements; and (2) is                    same end-use.14 The petitioner states
                                               other layers; and (5) top layer machined                made with a resin, the majority of which              that inquiry merchandise and subject
                                               with a curved edge and one or more                      is comprised of one or more of the                    merchandise are manufactured to the
                                               profile channels throughout.                            following three product types—urea                    same dimensions, and that the same
                                                 Imports of hardwood plywood are                       formaldehyde, polyvinyl acetate, and/or               equipment used to peel radiata and
                                               primarily entered under the following                   soy.                                                  agathis veneers can be used to peel the
                                               Harmonized Tariff Schedule of the                       Request for a Later-Developed                         veneers used for subject merchandise.15
                                               United States (HTSUS) subheadings:                      Merchandise Anti-Circumvention                        The petitioner claims that the inquiry
                                               4412.10.0500;4412.31.0520;                              Inquiry                                               merchandise and the subject
                                               4412.31.0540; 4412.31.0560;                                                                                   merchandise will likely have the same
                                               4412.31.0620; 4412.31.0640;                                Section 781(d)(1) of the Act provides
                                                                                                       that Commerce may initiate an anti-                   TSCA/CARB label requirements and use
                                               4412.31.0660; 4412.31.2510;                                                                                   similar glue types.16
                                               4412.31.2520; 4412.31.2610;                             circumvention inquiry to determine
                                               4412.31.2620; 4412.31.4040;                             whether merchandise developed after                   B. Advertisement, Display, and Channel
                                               4412.31.4050; 4412.31.4060;                             an AD or CVD investigation (later-                    of Trade
                                               4412.31.4075; 4412.31.4080;                             developed merchandise) is within the                    The petitioner claims that the channel
                                               4412.31.4140; 4412.31.4150;                             scope of the order(s). In conducting
                                                                                                                                                             of trade for merchandise related to the
                                               4412.31.4160; 4412.31.4180;                             later-developed merchandise anti-
                                                                                                                                                             circumvention inquiry and merchandise
                                               4412.31.5125; 4412.31.5135;                             circumvention inquiries under section
                                                                                                                                                             subject to the Orders is the same, as the
                                               4412.31.5155; 4412.31.5165;                             781(d)(1) of the Act, Commerce will
                                                                                                                                                             same Chinese producers are selling and
                                               4412.31.5175; 4412.31.5235;                             evaluate whether the general physical
                                                                                                                                                             marketing the product to the same U.S.
                                               4412.31.5255; 4412.31.5265;                             characteristics of the merchandise under
                                                                                                                                                             importers who previously bought
                                               4412.31.5275; 4412.31.6000;                             consideration are the same as subject
                                                                                                                                                             subject merchandise before the
                                               4412.31.6100; 4412.31.9100;                             merchandise covered by the order,
                                                                                                                                                             investigations. Online advertisement
                                               4412.31.9200; 4412.32.0520;                             whether the expectations of the ultimate
                                                                                                                                                             also describes the inquiry and subject
                                               4412.32.0540; 4412.32.0565;                             purchasers of the merchandise under
                                                                                                       consideration are no different than the               merchandise in the same language,
                                               4412.32.0570; 4412.32.0620;                                                                                   acknowledging that radiata pine
                                               4412.32.0640; 4412.32.0670;                             expectations of the ultimate purchases
                                                                                                       of subject merchandise, whether the                   plywood is ‘‘similar’’ to birch and oak
                                               4412.32.2510; 4412.32.2525;                                                                                   plywood.17
                                               4412.32.2530; 4412.32.2610;                             ultimate use of the subject merchandise
                                               4412.32.2630; 4412.32.3125;                             and the merchandise under                             C. Commercial Availability
                                               4412.32.3135; 4412.32.3155;                             consideration are the same, whether the
                                                                                                                                                                While the petitioner acknowledges
                                               4412.32.3165; 4412.32.3175;                             channels of trade of both products are
                                                                                                                                                             that plywood with either a face or back
                                               4412.32.3185; 4412.32.3235;                             the same, whether there are any
                                                                                                                                                             veneer of radiata pine and/or agathis
                                               4412.32.3255; 4412.32.3265;                             differences in the advertisement and
                                                                                                                                                             pine was commercially available prior
                                               4412.32.3275; 4412.32.3285;                             display of both products,12 and if the
                                                                                                                                                             to the investigations, they claim that
                                               4412.32.5600; 4412.32.3235;                             merchandise under consideration was
                                                                                                                                                             plywood with both a face and back
                                               4412.32.3255; 4412.32.3265;                             commercially available at the time of
                                                                                                                                                             veneer of radiata and/or agathis pine
                                               4412.32.3275; 4412.32.3285;                             the investigation, i.e., the product was
                                                                                                                                                             that also: (1) Has a TSCA or CARB label
                                               4412.32.5700; 4412.94.1030;                             present in the commercial market or the
                                                                                                                                                             certifying that it is compliant with
                                               4412.94.1050; 4412.94.3105;                             product was tested and ready for
                                                                                                                                                             TSCA/CARB requirements; and (2) is
                                               4412.94.3111; 4412.94.3121;                             commercial production.13
                                                                                                                                                             made with a resin, the majority of which
                                               4412.94.3141; 4412.94.3161;                             A. Physical Characteristics                           is comprised of one or more of the
                                               4412.94.3175; 4412.94.4100;                                                                                   following three product types—urea
                                               4412.99.0600; 4412.99.1020;                               According to the petitioner, Chinese
                                                                                                       exporters who used to offer subject                   formaldehyde, polyvinyl acetate, and/or
                                               4412.99.1030; 4412.99.1040;                                                                                   soy) was not commercially available.18
                                               4412.99.3110; 4412.99.3120;                             merchandise with at least one side,
                                                                                                                                                                The petitioner asserts that multiple
                                               4412.99.3130; 4412.99.3140;                               12 See                                              members of the Coalition for Fair Trade
                                                                                                                section 781(d)(1) of the Act.
                                               4412.99.3150; 4412.99.3160;                               13 See Later-Developed Merchandise                  in Hardwood Plywood and their sales
                                               4412.99.3170; 4412.99.4100;                             Anticircumvention Inquiry of the Antidumping          representatives, as well as the President
                                               4412.99.5115; and 4412.99.5710.                         Duty Order on Petroleum Wax Candles from the          of the Decorative Hardwoods
                                                 Imports of hardwood plywood may                       People’s Republic of China: Affirmative Preliminary
                                                                                                                                                             Association (formerly the Hardwood
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                                                                                                       Determination of Circumvention of the
                                               also enter under HTSUS subheadings                      Antidumping Duty Order, 71 FR 32033, 32035 (June      Plywood and Veneer Association) all
                                               4412.99.6000; 4412.99.7000;                             2, 2006) unchanged in Later-Developed
                                               4412.99.8000; 4412.99.9000;                             Merchandise Anticircumvention Inquiry of the            14 See    Petitioner’s Request at 26–27.
                                               4412.10.9000; 4412.94.5100;                             Antidumping Duty Order on Petroleum Wax                 15 Id.
                                                                                                       Candles from the People’s Republic of China:                     at 28.
                                               4412.94.9500; and 4412.99.9500. While                   Affirmative Final Determination of Circumvention
                                                                                                                                                               16 Id.

                                               the HTSUS subheadings are provided                      of the Antidumping Duty Order, 71 FR 59075              17 Id.   at 31.
                                               for convenience and customs purposes,                   (October 6, 2006).                                      18 Id.   at 22.



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                                               47886                           Federal Register / Vol. 83, No. 184 / Friday, September 21, 2018 / Notices

                                               confirm that they had not heard of, or                      merchandise and subject merchandise                     withdrawn from warehouse for
                                               seen, the inquiry merchandise prior to                      are the same, because the same Chinese                  consumption on or after the date of
                                               initiation of the investigations.19 The                     producers and exporters and domestic                    initiation of the inquiry. In the event we
                                               petitioner claims that a comparison                         importers who previously offered                        issue a preliminary affirmative
                                               between sales and marketing literature                      subject merchandise are now offering                    determination of circumvention
                                               issued prior to the initiation of the                       inquiry merchandise as a direct                         pursuant to section 781(d) of the act
                                               investigations and sales and marketing                      alternative to the same customers.25 The                (later-developed merchandise), we
                                               literature issued after the initiation of                   petitioner also states that online offers               intend to notify the International Trade
                                               the investigations demonstrates that the                    describe inquiry merchandise and                        Commission, in accordance with section
                                               inquiry merchandise was not                                 subject merchandise with hardwood                       781(e)(1) of the Act and 19 CFR
                                               commercially available prior to the                         face and back veneers in the same                       351.225(f)(7)(i)(C), if applicable.
                                               initiation of the investigations.20                         manner.26 The petitioner explains that                  Commerce will establish a schedule for
                                               D. Expectations of Ultimate Purchasers                      big-box retailers include inquiry                       questionnaires and comments on the
                                                                                                           merchandise under the ‘‘Hardwood                        issues. In connection with this anti-
                                                 The petitioner argues that the                            Plywood’’ category on their websites.27                 circumvention inquiry, in order to
                                               expectations of the ultimate purchasers                                                                             determine the extent to which a
                                               of subject merchandise and inquiry                          G. Advertisement and Display
                                                                                                                                                                   country-wide finding applicable to all
                                               merchandise are the same. The                                 The petitioner argues that inquiry                    exports might be warranted, as alleged
                                               petitioner states that subject                              merchandise is advertised and                           by the petitioner, Commerce will issue
                                               merchandise is generally chosen for its                     displayed in the same manner as subject                 questionnaires to potential Chinese
                                               decorative and aesthetic qualities and is                   merchandise, because Chinese                            producers or exporters of inquiry
                                               used in products such as furniture,                         producers and exporters and domestic                    merchandise to the United States.
                                               kitchen cabinets, architectural                             importers are offering inquiry                          Companies failing to respond
                                               woodwork, wall paneling, and other                          merchandise to the same customers who                   completely and timely to Commerce’s
                                               similar products, and that the                              used to purchase subject merchandise                    questionnaire may be deemed
                                               distinguishing characteristic of subject                    with at least one side made of                          uncooperative and an adverse inference
                                               merchandise is that it is primarily used                    hardwood, as a direct alternative, and                  may be applied in determining whether
                                               in interior and non-structural                              inquiry merchandise is being offered for                such companies are circumventing the
                                               applications.21 The petitioner claims                       the same applications as subject                        Orders. See section 776 of the Act.
                                               that online offers of inquiry                               merchandise.28 The petitioner claims                    Commerce intends to issue its final
                                               merchandise (highlighting the same                          that inquiry merchandise is described in                determination within 300 days of this
                                               characteristics as subject merchandise                      the same manner as subject                              initiation, in accordance with section
                                               and offering inquiry merchandise for the                    merchandise in advertisements.29                        781(f) of the Act.
                                               same applications as subject
                                                                                                           Conclusion                                                 This notice is published in
                                               merchandise) confirms that the
                                                                                                                                                                   accordance with section 781(d) of the
                                               expectations of the ultimate purchasers                        Based on the information provided by                 Act and 19 CFR 351.225(j).
                                               of inquiry merchandise and subject                          the petitioner, Commerce finds there is
                                               merchandise are the same.22 The                             sufficient basis to initiate an anti-                     Dated: September 18, 2018.
                                               petitioner argues that any plywood used                     circumvention inquiry, pursuant to                      Gary Taverman,
                                               in interior/decorative applications must                    section 781(d) of the Act.30 Commerce                   Deputy Assistant Secretary for Antidumping
                                               be labeled as TSCA/CARB compliant,                          will determine whether the                              and Countervailing Duty Operations,
                                               and that the ultimate purchasers would                      merchandise subject to the inquiry                      performing the non-exclusive functions and
                                               expect that both subject merchandise                        (identified in the ‘‘Merchandise Subject                duties of the Assistant Secretary for
                                               and inquiry merchandise would have                                                                                  Enforcement and Compliance.
                                                                                                           to the Anti-Circumvention Inquiry’’
                                               certifying labels that the plywood is                                                                               [FR Doc. 2018–20609 Filed 9–20–18; 8:45 am]
                                                                                                           section above) represents a later-
                                               compliant with TSCA/CARB                                    developed product that can be                           BILLING CODE 3510–DS–P
                                               requirements.23                                             considered subject to the Orders.
                                               E. Ultimate Use                                             Commerce will not order the suspension
                                                                                                           of liquidation of entries of any                        DEPARTMENT OF COMMERCE
                                                  The petitioner asserts that the                          additional merchandise at this time.
                                               ultimate use of both the subject                                                                                    National Institute of Standards and
                                                                                                           However, in accordance with 19 CFR                      Technology
                                               merchandise and inquiry merchandise                         351.225(l)(2), if Commerce issues a
                                               is identical. Further, they claim that                      preliminary affirmative determination,
                                               inquiry merchandise is offered in the                                                                               Proposed Information Collection;
                                                                                                           we will then instruct U.S. Customs and                  Comment Request; Baldrige Executive
                                               same dimensions as subject                                  Border Protection to suspend
                                               merchandise, as well as both being                                                                                  Fellows Program
                                                                                                           liquidation and require a cash deposit of
                                               offered for the same decorative or                          estimated duties, at the applicable rate,               AGENCY: National Institute of Standards
                                               interior purposes, such as cabinetry,                                                                               and Technology, Commerce.
                                                                                                           for each unliquidated entry of the
                                               furniture, and other functions.24                                                                                   ACTION: Notice.
                                                                                                           merchandise at issue, entered or
                                               F. Channels of Trade
                                                                                                             25 Id.   at 31.                                       SUMMARY:    The Department of
                                                 The petitioner argues that the                              26 Id.                                                Commerce, as part of its continuing
daltland on DSKBBV9HB2PROD with NOTICES




                                               channels of trade for inquiry                                 27 Id.                                                effort to reduce paperwork and
                                                 19 Id.
                                                                                                             28 Id.   at 32.                                       respondent burden, invites the general
                                                        at 23.
                                                 20 Id. at 24.
                                                                                                             29 Id.
                                                                                                                                                                   public and other Federal agencies to
                                                                                                             30 Because we have determined to initiate an anti-
                                                 21 Id. at 28–30.                                                                                                  take this opportunity to comment on
                                                                                                           circumvention inquiry pursuant to section 781(d) of
                                                 22 Id.
                                                                                                           the Act, we do not address the petitioner’s request
                                                                                                                                                                   proposed and/or continuing information
                                                 23 Id.
                                                                                                           to alternatively initiate an anti-circumvention         collections, as required by the
                                                 24 Id. at 30.                                             inquiry pursuant to section 781(c) of the Act.          Paperwork Reduction Act of 1995.


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Document Created: 2018-09-21 00:23:57
Document Modified: 2018-09-21 00:23:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable September 21, 2018.
ContactAmanda Brings or Ryan Mullen, AD/CVD Operations, Office V, Enforcement & Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC, 20230; telephone: (202) 482-3927 or (202) 482-5260, respectively.
FR Citation83 FR 47883 

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