[Federal Register Volume 85, Number 12 (Friday, January 17, 2020)]
[Notices]
[Pages 3024-3026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00742]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-051, C-570-052]
Certain Hardwood Plywood From the People's Republic of China:
Notice of Covered Merchandise Referral and Initiation of Scope Inquiry
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Pursuant to the Enforce and Protect Act of 2015 (EAPA), the
Department of Commerce (Commerce) received a covered merchandise
referral from U.S. Customs and Border Protection (CBP) in connection
with a CBP EAPA investigation concerning the antidumping duty (AD) and
countervailing duty (CVD) orders on certain hardwood plywood from the
People's Republic of China (China). In accordance with EAPA, Commerce
intends to determine whether the merchandise subject to the referral is
covered by the scope of these orders and promptly transmit its
determination to CBP. Commerce is providing notice of the referral and
inviting participation from interested parties.
DATES: Applicable January 17, 2020.
FOR FURTHER INFORMATION CONTACT: Kabir Archuletta or Nicolas Mayora,
AD/CVD Operations, Office V, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230, telephone: (202) 482-2593 or (202)
482-3053, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 24, 2016, the Trade Facilitation and Trade Enforcement
Act of 2015 was signed into law, which contains Title IV--Prevention of
Evasion of Antidumping and Countervailing Duty Orders (short title
``Enforce and Protect Act of 2015'' or ``EAPA'') (Pub. L. 114-125, 130
Stat. 122, 155, Feb. 24, 2016). Effective August 22, 2016, section 421
of the EAPA added section 517 to the Tariff Act of 1930, as amended
(the Act), which establishes a formal process for CBP to investigate
allegations of the evasion of AD/CVD orders. Section 517(b)(4)(A) of
the Act provides that if, during the course of an EAPA investigation,
CBP is unable to determine whether the merchandise at issue is covered
merchandise within the meaning of section 517(a)(3) of the Act, it
shall refer the matter to Commerce to make such a determination.
Section 517(a)(3) of the Act defines covered merchandise as merchandise
that is subject to an AD order issued under section 736 of the Act or a
CVD order issued under section 706 of the Act. Section 517(b)(4)(B) of
the Act states that Commerce, after receiving a covered merchandise
referral from CBP, shall determine whether the merchandise is covered
merchandise and promptly transmit its determination to CBP. The Act
does not establish a deadline within which Commerce must issue its
determination.
On September 16, 2019, Commerce received a covered merchandise
referral from CBP regarding CBP EAPA Investigation No. 7252 \1\ which
concerns the Orders \2\ on certain hardwood plywood from China.
Specifically, based on an allegation by Plywood Source, a company
located in California, CBP has requested that Commerce issue a
determination as to whether certain hardwood plywood products produced
by Vietnam Finewood Company Limited (Finewood) from China-origin
materials is covered merchandise subject to the Orders.
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\1\ See CBP's Letter, ``Scope Referral Request for Merchandise
under EAPA Cons. Investigation 7252, Imported by Far East America,
Inc., CIEL Group, American Pacific Plywood, Interglobal Forest, and
Liberty Woods International, Inc., (Importers) and Concerning the
Investigation of Evasion of the Antidumping and Countervailing Duty
Orders on Hardwood Plywood from the People's Republic of China (A-
570-051 and C-570-052),'' dated September 16, 2019. Commerce intends
to make available this document and any supporting documents on
Enforcement and Compliance's Antidumping Duty and Countervailing
Duty Centralized Electronic Service System (ACCESS) within five days
of publication of this notice.
\2\ See Certain Hardwood Plywood 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); see also
Certain Hardwood Plywood from the People's Republic of China:
Countervailing Duty Order, 83 FR 513 (January 4, 2018)
(collectively, Orders).
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Notification to Interested Parties
Commerce is hereby notifying interested parties that it has
received the covered merchandise referral referenced above, will begin
a new segment of the proceeding by initiating a scope inquiry in
accordance with 19 CFR 351.225(b), and based on our finding in that
scope inquiry, intends to notify CBP as to whether the merchandise
subject to the referral is covered merchandise within the meaning of
section 517(a)(3) of the Act. Additionally, Commerce intends to provide
interested parties with the opportunity to participate in this segment
of the proceeding, including through the submission of comments, and,
if appropriate, new factual information and verification. Specifically,
Commerce will notify parties on the segment-specific service list for
this segment of the proceeding of a schedule for comments. In addition,
Commerce may request factual information from any person to assist in
making its determination, including soliciting information directly
from Finewood to conduct our analysis, and may verify submissions of
factual information, if Commerce determines that such verification is
appropriate. Commerce intends to issue a final determination within 120
days of the publication of this notice (this deadline may be extended
if it is not practicable to complete the final determination within 120
days) and will promptly transmit its final determination to CBP in
accordance with section 517(b)(4)(B) of the Act.
In addition, Commerce may consider conducting a separate
anticircumvention inquiry regarding
[[Page 3025]]
this covered merchandise referral if parties submit the necessary
information addressing the criteria for an anticircumvention inquiry in
accordance with section 781 of the Act. Interested parties are
requested to file such comments and information onto the record of this
proceeding within 30 days of the publication of this notice in the
Federal Register.
Interested parties that wish to participate in this segment of the
proceeding, and receive notice of the final determination, must submit
their letters of appearance as discussed below. Further, any party
desiring access to business proprietary information in this segment of
the proceeding must file an application for access to business
proprietary information under administrative protective order (APO), as
discussed below.
Finally, we note that covered merchandise referrals constitute a
new type of segment of a proceeding at Commerce. Commerce intends to
develop its practice and procedures in this area as it gains more
experience.
Scope of the Orders on Hardwood Plywood From China
For a complete description of the scope of the orders, see the
appendix to this notice.
Filing Requirements
All submissions to Commerce must be filed electronically using
ACCESS.\3\ An electronically filed document must be received
successfully in its entirety by the time and date it is due. Documents
exempted from the electronic submission requirements must be filed
manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 18022, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230, and stamped with the date
of receipt by the applicable deadlines.
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\3\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement
and Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements. Information on help using ACCESS can be found at
https://access.trade.gov/help.aspx and a handbook can be found at
https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Letters of Appearance and APO
Interested parties that wish to participate in this segment of the
proceeding and be added to the public service list for this segment of
the proceeding must file a letter of appearance in accordance with 19
CFR 351.103(d)(1), with one exception: The parties publicly identified
by CBP in the covered merchandise referral (referenced above) are not
required to submit a letter of appearance, and will be added to the
public service list for this segment of the proceeding by Commerce.
Within 24 hours of this notice being signed, Commerce placed a
request for an APO segment on the record \4\ and established an APO
segment for use in this proceeding. Commerce intends to place the
business proprietary versions of the documents contained in the covered
merchandise referral on the record of this proceeding in ACCESS within
five days of publication of this notice.
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\4\ See Memorandum, ``Request for Establishment of
Administrative Protective Order: Hardwood Plywood from the People's
Republic of China (A-570-051 and C-570-052).''
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Interested parties must submit applications for disclosure under
the APO in accordance with the procedures outlined in Commerce's
regulations at 19 CFR 351.305. Those procedures apply to this segment
of the proceeding, with one exception: APO applicants representing the
parties that have been identified by CBP as an importer in the covered
merchandise referral (referenced above) are exempt from the additional
filing requirements for importers pursuant to 19 CFR 351.305(d).
Dated: January 13, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Orders
The merchandise covered by the Orders is hardwood and decorative
plywood, and certain veneered panels as described below. For
purposes of this proceeding, 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 HP-1-2016 (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 Orders 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
[[Page 3026]]
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 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.
[FR Doc. 2020-00742 Filed 1-16-20; 8:45 am]
BILLING CODE 3510-DS-P