Notice2024-12840

Antidumping Duty Order on Hydrofluorocarbon Blends From the People's Republic of China: Final Affirmative Determination of Circumvention With Respect to R-410A and R-407C From Malaysia

Primary source

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Published
June 12, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) determines that imports of R-410A and R-407C, completed in Malaysia using the People's Republic of China (China)- origin hydrofluorocarbon (HFC) components, and exported from Malaysia, are circumventing the antidumping duty (AD) order on HFC blends from China.

Full Text

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<title>Federal Register, Volume 89 Issue 114 (Wednesday, June 12, 2024)</title>
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[Federal Register Volume 89, Number 114 (Wednesday, June 12, 2024)]
[Notices]
[Pages 49842-49844]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12840]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Antidumping Duty Order on Hydrofluorocarbon Blends From the 
People's Republic of China: Final Affirmative Determination of 
Circumvention With Respect to R-410A and R-407C From Malaysia

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
imports of R-410A and R-407C, completed in Malaysia using the People's 
Republic of China (China)-

[[Page 49843]]

origin hydrofluorocarbon (HFC) components, and exported from Malaysia, 
are circumventing the antidumping duty (AD) order on HFC blends from 
China.

DATES: Applicable June 12, 2024.

FOR FURTHER INFORMATION CONTACT: Jerry Xiao, 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) 482-2273.

SUPPLEMENTARY INFORMATION:

Background

    On August 19, 2016, Commerce published in the Federal Register the 
AD order on HFC blends from China.\1\ On July 7, 2023, Commerce 
initiated a country-wide circumvention inquiry pursuant to section 
781(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.226(d)(1)(ii) to determine whether imports of R-410A and R-407C, 
completed in Malaysia using HFC components manufactured in China, are 
circumventing the Order and, accordingly, should be covered by the 
scope of the Order.\2\ On December 11, 2023, Commerce published in the 
Federal Register its Preliminary Determination that imports of R-410A 
and R-407C completed in Malaysia using China-origin HFC components and 
subsequently exported from Malaysia to the United States are 
circumventing the Order.\3\
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    \1\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) 
(Order).
    \2\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Initiation of Circumvention Inquiries on the Antidumping Duty 
Order, 88 FR 43275 (July 7, 2023) (Initiation Notice).
    \3\ See Antidumping Duty Order on Hydrofluorocarbon Blends from 
the People's Republic of China: Preliminary Affirmative 
Determination of Circumvention With Respect to R-410A and R-407C 
From Malaysia, 88 FR 85876 (December 11, 2023) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
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    For a summary of events that occurred since the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for consideration in the final determination, see the Issues 
and Decision Memorandum.\4\ 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="https://access.trade.gov">https://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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    \4\ See Memorandum, ``Decision Memorandum for the Circumvention 
Inquiry of the Antidumping Duty Order on Hydrofluorocarbon Blends 
from the People's Republic of China with Respect to Imports of R-
410A and R-407C from Malaysia,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
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Scope of the Order

    The merchandise covered by the Order is certain HFC blends. For a 
complete description of the scope of the Order, see the Issues and 
Decision Memorandum.

Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers HFC blends R-410A and R-407C, 
completed in Malaysia using China-origin HFC components and 
subsequently exported from Malaysia to the United States (inquiry 
merchandise).

Methodology

    Commerce is conducting this circumvention inquiry in accordance 
with section 781(b) of the Act, and 19 CFR 351.226. See Preliminary 
Determination PDM for a full description of the methodology.\5\ We have 
continued to apply this methodology, without exception, and incorporate 
by reference this description of the methodology, for our final 
determination.
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    \5\ See Preliminary Determination PDM at 3-13.
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Analysis of Comments Received

    All issues raised in this inquiry are addressed in the Issues and 
Decision Memorandum. A list of the issues raised is attached to this 
notice in the appendix. Based on our analysis of the comments received 
from the petitioner, we made the following change to the Preliminary 
Determination: we determine to apply retroactive suspension of 
liquidation to respondent Juara Teguh Resources PLT (Juara), as well as 
on a country-wide basis, effective November 4, 2021.

Final Circumvention Determination

    We determine that imports of R-410A and R-407C completed in 
Malaysia by Juara, using China-origin HFC components that are 
subsequently exported from Malaysia to the United States, are 
circumventing the Order. As a result, in accordance with section 781(b) 
of the Act, we determine that this merchandise should be included 
within the scope of the Order. For a detailed explanation of our 
determination with respect to Juara, see Preliminary Determination PDM, 
the Issues and Decision Memorandum, and the ``Use of Adverse Facts 
Available'' section below.
    We also determine that imports of R-410A and R-407C completed in 
Malaysia using China-origin HFC components, that are subsequently 
exported from Malaysia to the United States, are circumventing the 
Order on a country-wide basis. As a result, in accordance with section 
781(b) of the Act, we determine that this merchandise should be 
included within the scope of the Order; see the ``Suspension of 
Liquidation and Cash Deposit Requirements'' section, below, for details 
regarding suspension of liquidation and cash deposit requirements.

Use of Adverse Facts Available (AFA)

    In this inquiry, Commerce continues to find that necessary 
information is not available on the record with respect to Juara within 
the meaning of section 776(a)(1) of the Act, and that Juara withheld 
requested information, failed to provide requested information by the 
deadline or in the form or manner requested, and significantly impeded 
the inquiry pursuant to sections 776(a)(1), (A), (B), and (C) of the 
Act. Moreover, Commerce continues to find that this company failed to 
cooperate by not acting to the best of its ability to provide the 
requested information pursuant to section 776(b)(1) of the Act. 
Consequently, we continue to use adverse inferences with respect to 
Juara in selecting from among the facts otherwise available on the 
record, pursuant to sections 776(a) and (b) of the Act, for the reasons 
discussed in the Preliminary Determination and the Issues and Decision 
Memorandum.\6\ Based on AFA, we determine that Juara exported inquiry 
merchandise and that U.S. entries of that merchandise are circumventing 
the Order. Interested parties that wish to have their suspended 
entries, if any, reviewed should request an administrative review of 
the relevant suspended entries during the next anniversary month of the 
Order (i.e., August 2024).\7\
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    \6\ See Preliminary Determination PDM; see also Issues and 
Decision Memorandum at Comment 1.
    \7\ See 19 CFR 351.213(b).
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Suspension of Liquidation and Cash Deposit Requirements

    Based on the affirmative country-wide determination of 
circumvention for Malaysia, in accordance with 19 CFR 
351.226(l)(3)(iii)(A), we will direct U.S. Customs and Border 
Protection (CBP) to suspend liquidation of any unliquidated entries of 
subject merchandise from Malaysia entered, or withdrawn from

[[Page 49844]]

warehouse for consumption, prior to the date of publication of the 
notice of initiation of the inquiry, up to, and including, November 4, 
2021,\8\ which is a departure from our standard practice of applying 
the date specified in 19 CFR 351.226(l)(3)(ii) (i.e., the date of 
publication of the initiation notice).\9\ CBP shall require cash 
deposits in accordance with the rate established for the China-wide 
entity (i.e. 216.37 percent).\10\
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    \8\ November 4, 2021, was the date Commerce's circumvention 
regulations became effective. See Regulations To Improve 
Administration and Enforcement of Antidumping and Countervailing 
Duty Laws, 86 FR 52300 (September 20, 2021).
    \9\ See Issues and Decision Memorandum at Comment 1.
    \10\ See Order, 81 FR at 55438.
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    Commerce has established the following third-country case number 
for Malaysia in the Automated Commercial Environment (ACE) for such 
entries: A-557-300-000. For Juara, Commerce will direct CBP, for all 
entries of R-410A or R-407C from Malaysia produced or exported by 
Juara, to suspend liquidation and require a cash deposit at the AD cash 
deposit rate established for the China-wide entity (i.e., 216.37 
percent), under this third-country case number, A-557-300-000.
    R-410A and R-407C produced in Malaysia that is not from China-
origin HFC blends is not subject to this inquiry. Therefore, cash 
deposits are not required for such merchandise under the Order. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Opportunity To Request an Administrative Review

    Each year during the anniversary month of the publication of an AD 
or CVD order, finding, or suspended investigation, an interested party, 
as defined in section 771(9) of the Act, may request, in accordance 
with 19 CFR 351.213, that Commerce conduct an administrative review of 
that AD or CVD order, finding, or suspended investigation. An 
interested party who would like Commerce to conduct an administrative 
review should wait until Commerce announces via the Federal Register 
the next opportunity during the anniversary month of the publication of 
the Order to submit such requests. The anniversary month for this Order 
is August.

Administrative Protective Order

    This notice will serve as the only reminder to all 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 the terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(b) of the Act and 19 CFR 351.226(g)(2).

    Dated: June 5, 2024.
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

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Changes from the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Retroactive Suspension of Liquidation and Cash 
Deposit Requirement
    Comment 2: Certification Requirement
VIII. Recommendation

[FR Doc. 2024-12840 Filed 6-11-24; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on June 12, 2024.

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