Notice2021-17524
Pentafluoroethane (R-125) From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 17, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that pentafluoroethane (R-125) from the People's Republic of China (China) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is July 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 86 Issue 156 (Tuesday, August 17, 2021)</title>
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[Federal Register Volume 86, Number 156 (Tuesday, August 17, 2021)]
[Notices]
[Pages 45959-45963]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17524]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-137]
Pentafluoroethane (R-125) From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair Value,
Preliminary Affirmative Determination of Critical Circumstances, in
Part, Postponement of Final Determination, and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
[[Page 45960]]
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that pentafluoroethane (R-125) from the People's Republic of China
(China) is being, or is likely to be, sold in the United States at less
than fair value (LTFV). The period of investigation is July 1, 2020,
through December 31, 2020. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable August 17, 2021.
FOR FURTHER INFORMATION CONTACT: Alex Wood or Benjamin A. Luberda, AD/
CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-1959 or (202)
482-2185, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February 8,
2021.\1\ On March 12, 2021, Commerce limited the number of respondents
selected for individual examination to the two largest R-125 producers/
exporters, by volume, that submitted a Q&V questionnaire response, and
we issued the AD questionnaire to them.\2\ These companies are Zhejiang
Quzhou Juxin Fluorine Chemical Co., Ltd., (Juxin) and Zhejiang Sanmei
Chemical Ind. Co., Ltd. (Sanmei). On May 10, 2021, Juxin informed
Commerce that it would no longer participate as a mandatory respondent
in this investigation.\3\ On June 3, 2021, Commerce postponed the
preliminary determination of this investigation and the revised
deadline is now August 10, 2021.\4\ For a complete description of the
events that followed the initiation of this investigation, see the
Preliminary Decision Memo randum.\5\ A list of topics included in the
Preliminary Decision Memorandum is included as Appendix II to this
notice. The Preliminary Decision Memorandum is a public document and is
on file electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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\1\ See Pentafluoroethane (R-125) from the People's Republic of
China: Initiation of Less-Than-Fair-Value Investigation, 86 FR 8583
(February 8, 2021) (Initiation Notice).
\2\ See Memorandum, ``Respondent Selection,'' dated March 12,
2021.
\3\ See Juxin's Letter, ``Juxin Withdrawal as a Mandatory
Respondent,'' dated May 10, 2021 (Juxin Withdrawal Letter).
\4\ See Pentafluoroethane (R-125) from the People's Republic of
China: Postponement of Preliminary Determination in the Less-Than-
Fair-Value Investigation, 86 FR 29752 (June 3, 2021).
\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Pentafluoroethane (R-125) from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is R-125 from China. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\7\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice, as well as additional language proposed by
Honeywell International, Inc. (petitioner).\8\ For a summary of the
product coverage comments and rebuttal responses submitted to the
record for this investigation, and accompanying discussion and analysis
of all comments timely received, see the Preliminary Scope Decision
Memorandum.\9\ Commerce has preliminarily modified the scope language
that appeared in the Initiation Notice. See the revised scope in
Appendix I to this notice.
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Initiation Notice at 8584.
\8\ See Petitioner's Letters, ``Scope Comments,'' dated February
22, 2021; and ``Honeywell International Inc.'s Scope Supplemental
Questionnaire Response,'' dated July 20, 2021.
\9\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export price in
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act,
Commerce has calculated normal value (NV) in accordance with section
773(c) of the Act. Furthermore, pursuant to section 776(a) and (b) of
the Act, Commerce has preliminarily relied upon the facts otherwise
available, with adverse inferences, in determining the estimated
weighted-average dumping margin for the China-wide entity. For a full
description of the methodology underlying Commerce's preliminary
determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances exist
with respect to imports of R-125 from China for the non-selected
companies receiving a separate rate and the China-wide entity,
including Juxin, but do not exist for Sanmei. For a full description of
the methodology and results of Commerce's critical circumstances
analysis, see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\10\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\11\ In this investigation, we calculated
producer/exporter combination rates for respondents eligible for
separate rates.
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\10\ See Initiation Notice, 86 FR 8587.
\11\ See Enforcement and Compliance's Policy Bulletin No. 05.1
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Separate Rates
In addition to Sanmei, we have preliminarily granted certain non-
individually examined respondents a separate rate. Also, because Juxin
withdrew its participation as a mandatory respondent in this
investigation, we have preliminarily denied a separate rate to Juxin
and are treating it as part of the China-wide entity.\12\ See the
Preliminary Decision Memorandum for details.
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\12\ See Juxin Withdrawal Letter.
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In calculating the rate for non-individually examined separate rate
respondents in a non-market economy antidumping duty (AD)
investigation, Commerce normally looks to section 735(c)(5)(A) of the
Act, which pertains to the calculation of the all-others rate in a
market economy AD investigation, for guidance. Pursuant to section
735(c)(5)(A) of the Act, normally this rate shall be an amount equal to
the weighted average of the estimated AD rates established for those
companies
[[Page 45961]]
individually examined, excluding zero and de minimis rates and any
rates based entirely under section 776 of the Act. Commerce calculated
an individual estimated weighted-average dumping margin for Sanmei, the
only individually examined exporter/producer in this investigation.
Because the only individually calculated weighted average dumping
margin is not zero, de minimis, or based entirely on facts otherwise
available, the weighted-average dumping margin calculated for Sanmei is
the basis to determine the weighted-average dumping margin for the
separate rate, non-examined companies, using section 735(c)(5)(A) of
the Act for guidance, which provides for the determination of the
estimated weighted-average dumping margin for all other producers and
exporters in a market economy investigation. See the table in the
``Preliminary Determination'' section of this notice.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\13\ The China-Wide Entity also includes Zhejiang Quzhou Juxin
Fluorine Chemical Co., Ltd.
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Estimated Cash deposit
weighted- rate (adjusted
Producer Exporter average for subsidy
dumping margin offsets)
(percent) (percent)
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Zhejiang Sanmei Chemical Ind. Co., Ltd........ Zhejiang Sanmei Chemical Ind. 280.37 280.37
Co., Ltd.
Fujian Qingliu Dongying Chemical Ind. Co., Ltd Zhejiang Sanmei Chemical Ind. 280.37 280.37
Co., Ltd.
Producers Supplying the Non-Individually- Non-Individually-Examined 280.37 280.37
Examined Exporters Receiving Separate Rates Exporters Receiving Separate
(see Appendix III). Rates (see Appendix III).
China-Wide Entity \13\........................ ................................ 280.48 280.48
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which NV exceeds U.S.
price, as indicated in the chart above as follows: (1) For the
producer/exporter combinations listed in the table above and in
Appendix III, the cash deposit rate is equal to the estimated weighted-
average dumping margin listed for that combination in the table; (2)
for all combinations of Chinese producers/exporters of subject
merchandise that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the China-wide entity;
and (3) for all third-county exporters of subject merchandise not
listed in the table above, the cash deposit rate is the cash deposit
rate applicable to the Chinese producer/exporter combination (or the
China-wide entity) that supplied that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
The date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise from the non-selected companies receiving a separate rate
and the China-wide entity. In accordance with section 733(e)(2)(A) of
the Act, the suspension of liquidation shall apply to all unliquidated
entries of merchandise from the non-selected companies receiving a
separate rate and the China-wide entity that were entered, or withdrawn
from warehouse, for consumption on or after the date that is 90 days
before the publication of this notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the Preliminary Determination section's chart of
estimated weighted-average dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire. These suspension of liquidation
instructions will remain in effect until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
[[Page 45962]]
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance.
Interested parties will be notified of the timeline for the submission
of case briefs and written comments at a later date. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
seven days after the deadline for case briefs.\14\
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\14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.309(c), interested parties may comment on
Commerce's preliminary scope decision no later than 21 days after the
publication date of the preliminary determination. Scope rebuttal
briefs, limited to issues raised in the scope case briefs, may be
submitted no later than seven days after the deadline for the scope
case briefs. These deadlines apply for both the AD and CVD
investigations. For all scope issues, parties must file separate and
identical documents on the records of both the AD and CVD
investigations. No new factual information or proprietary information
should be included in the scope case briefs and scope rebuttal briefs.
Commerce has modified certain of its requirements for serving
documents containing business proprietary information until further
notice.\15\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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\15\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On August 5, 2021, pursuant to 19 CFR 351.210(e), Sanmei requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\16\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) The preliminary determination is
affirmative; (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, the
deadline for Commerce's final determination will be no later than 135
days after the date of publication of this preliminary determination.
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\16\ See Sanmei's Letter, ``Request to Postpone the Final
Determination,'' dated August 5, 2021.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the final determination whether imports of the subject
merchandise are materially injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: August 10, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is
pentafluoroethane (R-125), or its chemical equivalent, regardless of
form, type or purity level. R-125 has the Chemical Abstracts Service
(CAS) registry number of 354-33-6 and the chemical formula
C<INF>2</INF>HF<INF>5</INF>. R-125 is also referred to as
Pentafluoroethane, Genetron HFC 125, Khladon 125, Suva 125, Freon
125, and Fc-125.
R-125 that has been blended with other products is included
within the scope if such blends contain 85% or more by volume R-125,
on an actual percentage basis. However, R-125 incorporated into a
blend that conforms to ANSI/ASHRAE Standard 34 is excluded from the
scope of this investigation. When R-125 is blended with other
products and otherwise falls under the scope of this investigation,
only the R-125 component of the mixture is covered by the scope of
this investigation.
Subject merchandise also includes purified and unpurified R-125
that is processed in a third country or otherwise outside the
customs territory of the United States, including, but not limited
to, purifying, blending, or any other processing that would not
otherwise remove the merchandise from the scope of this
investigation if performed in the country of manufacture of the in-
scope R-125. The scope also includes R-125 that is commingled with
R-125 from sources not subject to this investigation. Only the
subject component of such commingled products is covered by the
scope of this investigation.
Excluded from the scope is merchandise covered by the scope of
the antidumping order on Hydrofluorocarbon Blends from the People's
Republic of China, including merchandise subject to the affirmative
anti-circumvention determination in Hydrofluorocarbon Blends from
the People's Republic of China: Affirmative Final Determination of
Circumvention of the Antidumping Duty Order; Unfinished R-32/R-125
Blends, 85 FR 15428 (March 18, 2020). See Hydrofluorocarbon Blends
from the People's Republic of China: Antidumping Duty Order, 81 FR
55436 (August 19, 2016) (the Blends Order).
R-125 is classified under Harmonized Tariff Schedule of the
United States (HTSUS) subheading 2903.39.2035 and 2903.39.2938.
Merchandise subject to the scope may also be entered under HTSUS
subheadings 2903.39.2045, 3824.78.0020, and 3824.78.0050. The HTSUS
subheadings and CAS registry number are provided for convenience and
customs purposes. The written description of the scope of the
investigation is dispositive.
[[Page 45963]]
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Adjustment Under Section 777(A)(f) of the Act
IX. Adjustments to Cash Deposit Rates for Export Subsidies
X. ITC Notification
XI. Recommendation
Appendix III
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\17\ Commerce preliminarily determines that T.T. International
Co., Ltd. and T.T. International Co., Limited are a single entity.
See Memorandum, ``Less-Than-Fair-Value Investigation of
Pentafluoroethane (R-125) from the People's Republic of China:
Affiliation and Single Entity Status--T.T. International Co.,
Ltd.,'' dated concurrently with this notice.
List of Separate Rate Companies
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Exporter Producer
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Producers supplying the non-
Non-individually- examined exporters individually-examined
receiving separate rates exporters receiving separate
rates
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Huantai Dongyue International Trade Co. Jinhua Binglong Chemical
Ltd. Technology Co., Ltd.
Shandong Dongyue Chemical Co., Ltd........ Shandong Dongyue Chemical
Co., Ltd.
Shandong Huaan New Material Co., Ltd...... Shandong Huaan New Material
Co., Ltd.
T.T. International Co., Ltd./T.T. Sinochem Environmental
International Co., Limited \17\. Protection Chemicals
(Taicang) Co., Ltd.
T.T. International Co., Ltd./T.T. Zhejiang Quhua Fluor-
International Co., Limited. Chemistry Co., Ltd.
T.T. International Co., Ltd./T.T. Zhejiang Sanmei Chemical
International Co., Limited. Industry. Co., Ltd.
Zhejiang Yonghe Refrigerant Co., Ltd...... Jinhua Yonghe Fluorochemical
Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd............ Zibo Feiyuan Chemical Co.,
Ltd.
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[FR Doc. 2021-17524 Filed 8-16-21; 8:45 am]
BILLING CODE 3510-DS-P
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