Notice2022-00178
Pentafluoroethane (R-125) From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part
Primary source
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Published
January 10, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) 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. The final dumping margins of sales at LTFV is listed below in the "Final Determination" section of this notice.
Full Text
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<title>Federal Register, Volume 87 Issue 6 (Monday, January 10, 2022)</title>
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[Federal Register Volume 87, Number 6 (Monday, January 10, 2022)]
[Notices]
[Pages 1117-1120]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00178]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-137]
Pentafluoroethane (R-125) From the People's Republic of China:
Final Affirmative Determination of Sales at Less Than Fair Value and
Final Affirmative Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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. The final dumping margins of sales at LTFV is listed
below in the ``Final Determination'' section of this notice.
DATES: Applicable January 10, 2022.
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
On August 17, 2021, Commerce published the Preliminary
Determination of sales at LTFV of R-125 from China.\1\ The petitioner
in this investigation is Honeywell International Inc. The mandatory
respondents in this investigation are Zhejiang Sanmei Chemical Ind.
Co., Ltd. (Sanmei) and Zhejiang Quzhou Juxin Fluorine Chemical Co.,
Ltd. (Juxin).
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\1\ See 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, 86 FR 45959 (August 17, 2021)
(Preliminary Determination).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by the parties for this final determination, are discussed in
the Issues and Decision Memorandum.\2\ The Issues and 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="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative 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 (Issues and 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,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. We addressed these comments in the Preliminary
Determination and preliminarily modified the scope of this and the
companion countervailing duty (CVD) investigation.\5\ We established a
period of time for parties to address scope issues in scope case and
rebuttal briefs,\6\ and we received such comments, which we addressed
in the Final Scope Decision Memorandum.\7\ After analyzing interested
parties' comments, we made certain changes to the scope of this and the
concurrent CVD investigation that published in the Preliminary
Determination. See Appendix I to this notice.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ 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).
\5\ See Preliminary Determination, 86 FR at 45960; see also
Memorandum, ``Preliminary Scope Decision Memorandum,'' dated August
10, 2021 (Preliminary Scope Decision Memorandum).
\6\ See Preliminary Scope Decision Memorandum at 2-3.
\7\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with, and hereby adopted by, this notice (Final Scope
Decision Memorandum).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum.
A list of the issues raised is attached to this notice as Appendix II.
[[Page 1118]]
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Tariff Act of
1930, as amended (the Act).\8\
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\8\ See Commerce's Letter, ``Zhejiang Sanmei Chemical Ind. Co.,
Ltd. Verification Questionnaire,'' dated September 9, 2021; see also
Sanmei's Letter, ``Submission of Zhejiang Sanmei's Verification
Response,'' dated September 20, 2021.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to the AD margin calculation for
Sanmei.\9\
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\9\ See Issues and Decision Memorandum.
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Final Affirmative Determination of Critical Circumstances
We continue to find that critical circumstances exist for imports
of R-125 from China for the non-selected companies receiving a separate
rate and the China-wide entity pursuant to sections 735(a)(3)(A) and
(B) of the Act and 19 CFR 351.206.\10\
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\10\ See Issues and Decision Memorandum at ``VIII. Affirmative
Determination of Critical Circumstances, in Part'' and Comment 1.
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China-Wide Entity and the Use of Adverse Facts Available
For the reasons explained in the Preliminary Determination, we
continue to find that the use of adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act, is warranted in
determining the rate for the China-wide entity.\11\ In selecting the
AFA rate for the China-wide entity, Commerce's practice is to select a
rate that is sufficiently adverse to ensure that the uncooperative
party does not obtain a more favorable result by failing to cooperate
than if it had fully cooperated.\12\ As AFA, we assigned the China-wide
entity a dumping margin of 278.05 percent, which is the highest
transaction-specific rate calculated for Sanmei for the final
determination.\13\ Because this constitutes primary information
calculated in the normal course of the investigation, the statutory
corroboration requirement in section 776(c) of the Act does not apply.
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\11\ The China-wide entity includes those companies who did not
submit a separate rate application and Juxin, which withdrew from
participation as a mandatory respondent in this investigation.
\12\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination:
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December
27, 2004), unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland,
70 FR 28279 (May 17, 2005).
\13\ See Issues and Decision Memorandum at ``IV. Use of Adverse
Facts Available.''
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Separate Rates
For the final determination, we continue to find that Sanmei and
certain non-individually examined respondents are eligible for separate
rates. Generally, Commerce looks to section 735(c)(5)(A) of the Act,
which provides instructions for calculating the all-others rate in an
investigation, for guidance when calculating the rate for separate rate
respondents that we did not individually examine. Because the only
individually calculated dumping margin for Sanmei is not zero, de
minimis, or based entirely on facts otherwise available, the estimated
weighted-average dumping margin calculated for Sanmei is the margin
assigned to all other non-individually-examined separate rate
recipients, pursuant to section 735(c)(5)(A) of the Act
Combination Rates
In the Initiation Notice,\14\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. For a list of
the respondents that established eligibility for their own separate
rates and the exporter/producer combination rates applicable to these
respondents, see Appendix III.
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\14\ See Initiation Notice, 86 FR at 8587.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
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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. 277.95 267.41
Co., Ltd.
Fujian Qingliu Dongying Chemical Ind. Co., Ltd Zhejiang Sanmei Chemical Ind. 277.95 267.41
Co., Ltd.
Producers Supplying the Non-Individually- Non-Individually-Examined 277.95 267.41
Examined Exporters Receiving Separate Rates Exporters Receiving Separate
(see Appendix III). Rates (see Appendix III).
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China-Wide Entity \15\........................ ................................ 278.05 267.51
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination within five days of the date
of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b)
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\15\ The China-Wide Entity also includes Juxin.
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of R-125 from Sanmei,
the separate rates companies, and the China-wide entity.
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 CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce makes an affirmative determination for domestic subsidy
pass-through or export subsidies, Commerce offsets the calculated
estimated weighted-average dumping margin by the appropriate rate(s).
In this case, we made a negative determination for domestic subsidy
pass-through for all respondents,\16\ but we found export
[[Page 1119]]
subsidies for all respondents.\17\ However, suspension of liquidation
for provisional measures in the companion CVD case has been
discontinued; therefore, we are not instructing CBP to collect cash
deposits based upon the adjusted estimated weighted-average dumping
margin for those export subsidies at this time.
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\16\ See Issues and Decision Memorandum at ``VI. Adjustment
Under Section 777A(f) of the Act.''
\17\ Id. at ``VII. Adjustments to Cash Deposit Rates for Export
Subsidies.''
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Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the
publication of this notice, Commerce will instruct CBP to require a
cash deposit equal to the weighted-average amount by which normal value
exceeds U.S. price as follows: (1) The cash deposit rate for the
exporter/producer combination listed in the table above or in Appendix
III will be the rate identified for that combination in that table or
Appendix III; (2) for all combinations of exporters/producers of
merchandise under consideration that have not received their own
separate rate, the cash deposit rate will be the cash deposit rate
established for the China-wide entity; and (3) for all non-Chinese
exporters of the merchandise under consideration that have not received
their own separate rate, the cash deposit rate will be the cash deposit
rate applicable to the Chinese exporter/producer combination that
supplied that non-Chinese exporter. These suspension of liquidation
instructions will remain in effect until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of our determination. Because the
final determination in this proceeding is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of R-125 from China no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, the proceeding will be terminated, and
all cash deposits will be refunded. If the ITC determines that such
injury does exist, Commerce will issue an AD order directing CBP to
assess, upon further instruction by Commerce, antidumping duties on all
imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an administrative protective order (APO) of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return or destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a sanctionable
violation.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: December 30, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
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 contained in blends that do not conform to ANSI/ASHRAE
Standard 34 is included in the scope of this investigation when R-
125 constitutes the largest relative component by volume, on an
actual percentage basis, of the blend.\18\ 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.
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\18\ ``Largest relative component by volume, on an actual
percentage basis'' means that the percentage of R-125 contained in a
blend is larger than the individual percentages of all the other
components. For example, R-125 contained in a blend that does not
conform to ANSI/ASHRAE Standard 34 and which contains 35% R-125 by
volume is covered by the scope of the investigation if no other
component part of the blend equals or exceeds 35% of the volume of
the blend.
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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 the 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 2903.39.2038.
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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Adverse Facts Available
V. Changes Since the Preliminary Determination
VI. Adjustment Under Section 777A(f) of the Act
VII. Adjustments to Cash Deposit Rates for Export Subsidies
VIII. Affirmative Determination of Critical Circumstances, in Part
IX. Discussion of the Issues
General Issues
Comment 1: Critical Circumstances
Sanmei-Specific Issues
Comment 2: Whether To Exclude Sanmei's Sales to T.T.
International Co., Ltd.
Comment 3: Commerce's Preliminary Application of Facts Available
Comment 3A: Application of Adverse Facts Available
Comment 3B: Valuation of the Intermediate Input Anhydrous
Fluoride
Comment 3C: Valuation of Sanmei's Steam Input
Comment 3D: By-Product Offsets
Comment 3E: Whether Sanmei Properly Reported Factors of
Production
Comment 3F: Added Inland Movement Expense for Imported
Perchloroethylene
Comment 4: Sanmei's Market Economy Purchases
Surrogate Values
[[Page 1120]]
Comment 5: Calculation of the Truck Freight Surrogate Value
Comment 6: Financial Statements
X. Recommendation
Appendix III
Separate Rate Companies
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Exporter Producer
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Producers supplying the non-
Non-individually-examined exporters individually-examined exporters
receiving separate rates 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 \19\. Protection Chemicals (Taicang)
Co., Ltd.
T.T. International Co., Ltd./T.T. Zhejiang Quhua Fluor-Chemistry
International Co., Limited. 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. 2022-00178 Filed 1-7-22; 8:45 am]
BILLING CODE 3510-DS-P
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