Notice2024-15264
Antidumping Duty Order on Hydrofluorocarbon Blends From the People's Republic of China: Final Affirmative Determination of Circumvention With Respect to R-410B, R-407G, and a Certain Custom Blend From the People's Republic of China
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
July 11, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that imports of R-410B, R-407G, and a custom hydrofluorocarbon (HFC) blend of 50-percent R-125 and 50-percent R-134a (custom HFC blend) which are blended in the People's Republic of China (China) and further processed in the United States, are circumventing the antidumping duty (AD) order on HFC blends from China.
Full Text
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<title>Federal Register, Volume 89 Issue 133 (Thursday, July 11, 2024)</title>
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[Federal Register Volume 89, Number 133 (Thursday, July 11, 2024)]
[Notices]
[Pages 56848-56851]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15264]
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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-410B, R-407G, and a Certain Custom
Blend From the People's Republic of China
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
imports of R-410B, R-407G, and a custom hydrofluorocarbon (HFC) blend
of 50-percent R-125 and 50-percent R-134a (custom HFC blend) which are
blended in the People's Republic of China (China) and further processed
in the United States, are circumventing the antidumping duty (AD) order
on HFC blends from China.
DATES: Applicable July 11, 2024.
FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, 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) 482-3834.
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-410B, R-407G, and
the custom HFC blend which are blended in China and further processed
in the United States, are circumventing the Order and, accordingly,
should be covered by the scope of the Order.\2\ On April 11, 2024,
Commerce published in the Federal Register its affirmative Preliminary
Determination that imports of R-410B, R-407G, and the custom HFC blend
which are blended in China using China-origin components and further
processed in 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-410B, R-407G, and a
Certain Custom Blend from the People's Republic of China, 89 FR
25568 (April 11, 2024) (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 this 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-
410B and R-407G, and a Certain Custom Blend 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 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 imports of HFC blends R-410B, R-
407G, and a certain custom HFC blend which are blended in China using
China-origin HFC components and further processed in the United States
(inquiry merchandise).
Methodology
Commerce is conducting this circumvention inquiry in accordance
with section 781(a) of the Act, and 19 CFR 351.226. See Preliminary
Determination for a full description of
[[Page 56849]]
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 4-15.
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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 Appendix I. Based on our analysis of the comments received
from interested parties, we have not made any changes to the
Preliminary Determination.
Final Circumvention Determination
We determine that imports of R-410B, R-407G, and the custom HFC
blend which are blended in China using China-origin HFC components and
further processed in the United States, would be circumventing the
Order whether such imports were by one company, or all companies.
Accordingly, we are applying our decision on a country-wide basis. As a
result, in accordance with section 781(a) of the Act, we determine that
inquiry merchandise should be included within the scope of the Order.
For a detailed explanation of our determination with respect to the
respondents, see Preliminary Determination, and the Issues and Decision
Memorandum. See the ``Suspension of Liquidation and Cash Deposit
Requirements'' section, below, for details regarding suspension of
liquidation and cash deposit requirements. See the ``Certifications''
and ``Certification Requirements'' sections below for details regarding
the use of certifications for inquiry merchandise imported from China.
Suspension of Liquidation and Cash Deposit Requirements
Based on the final affirmative country-wide determination of
circumvention for China, in accordance with section 19 CFR
351.226(I)(3)(i)-(ii), Commerce will direct U.S. Customs and Border
Protection (CBP) to continue the suspension of liquidation of
previously suspended entries and to suspend liquidation and require a
cash deposit of estimated duties on unliquidated entries of R-410B, R-
407G, and a certain custom HFC blend that were entered, or withdrawn
from warehouse, for consumption on or after July 7, 2023, the date of
publication of the initiation of this circumvention inquiry in the
Federal Register.\6\
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\6\ See Initiation Notice.
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The blends subject to this inquiry not further processed in the
United States are not subject to this inquiry. Therefore, cash deposits
are not required for such merchandise under the Order. If an importer
imports R-410B, R-407G, and a certain custom HFC blend subject to this
inquiry from China and claims that they will not be further processed
into subject merchandise in the United States, in order to not be
subject to the Order cash deposit requirements, the importer is
required to meet the certification and documentation requirements
described in the ``Certifications'' and ``Certification Requirements''
sections below.\7\
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\7\ The certification language at Appendix II, section E for
this final determination reflects a minor modification from the
certification included in the Preliminary Determination.
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Where no certification is provided for an entry, and the Order
potentially applies to that entry, Commerce intends to instruct CBP to
suspend the entry and collect cash deposits: (1) for entries of R-410B,
R-407G, and a certain custom HFC blend for which the exporter has a
company-specific cash deposit rate under the AD Order, the cash deposit
rate will be the company-specific AD cash deposit rate established for
that company in the most recently completed segment of the proceeding;
(2) for all Chinese exporters of R-410B, R-407G, and a certain custom
HFC blend that do not have a company-specific cash deposit rate under
the AD Order, the AD cash deposit rate will be the cash deposit rate
for the China-wide entity (i.e., 216.37 percent); \8\ and (3) for all
non-Chinese exporters of R-410B, R-407G, and a certain custom HFC blend
which have not received their own rate, the cash deposit rate will be
the rate applicable to the Chinese exporter that supplied that non-
Chinese exporter. These suspension of liquidation instructions and cash
deposit requirements will remain in effect until further notice.
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\8\ See Order.
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Certified Entries
Entries for which the importer has met the certification
requirements described below and in Appendix II to this notice will not
be subject to either the suspension of liquidation or the cash deposit
requirements described above. Failure to comply with the applicable
requisite certification requirements may result in the merchandise
being subject to duties.
Certifications
To administer the country-wide affirmative determination of
circumvention, Commerce established importer certifications, which
allow companies to certify that specific entries of R-410B, R-407G, and
a certain custom HFC blend are not subject to suspension of liquidation
or the collection of cash deposits pursuant to this country-wide
affirmative determination of circumvention because the merchandise is
not further processed into subject HFC blends in the United States (see
Appendix II to this notice).
Importers that claim that their entries of merchandise subject to
this inquiry from China are not subject to suspension of liquidation or
the collection of cash deposits because the merchandise is not further
processed into subject merchandise in the United States must complete
the applicable certification and meet the certification and
documentation requirements described below, as well as the requirements
identified in the importer certification.
Certification Requirements
Importers are required to complete and maintain the applicable
importer certification and retain all supporting documentation. The
importer certification must be completed, signed, and dated by the time
the entry summary is filed for the relevant entry. The importer, or the
importer's agent, must submit the importer's certification to CBP as
part of the entry process by uploading it into the document imaging
system (DIS) in ACE. Where the importer uses a broker to facilitate the
entry process, the importer should obtain the entry summary number from
the broker. Agents of the importer, such as brokers, however, are not
permitted to certify on behalf of the importer.
Additionally, the claims made in the certification and any
supporting documentation are subject to verification by Commerce and/or
CBP. Importers are required to maintain the certifications and
supporting documentation until the later of: (1) the date that is five
years after the latest entry date of the entries covered by the
certification; or (2) the date that is three years after the conclusion
of any litigation in United States courts regarding such entries.
For all R-410B, R-407G, and a certain custom HFC blend from China
that was entered, or withdrawn from warehouse, for consumption during
the period July 7, 2023 (the date of initiation of this circumvention
inquiry), through the date of publication of the preliminary
determination in the Federal Register, where the entry has not been
liquidated (and entries for which liquidation has not become final),
the relevant
[[Page 56850]]
certification should already be complete and signed.
For unliquidated entries (and entries for which liquidation has not
become final) of R-410B, R-407G, and a certain custom HFC blend from
China that were declared as non-AD type entries (e.g., type 01) and
entered, or withdrawn from warehouse, for consumption in the United
States during the period July 7, 2023 (the date of initiation of this
circumvention inquiry), through the date of publication of the
preliminary determination in the Federal Register, for which no
importer certification may be made, importers must file a Post Summary
Correction with CBP, in accordance with CBP's regulations, regarding
conversion of such entries from non-AD type entries to AD type entries
(e.g., type 01 to type 03). The importer should pay cash deposits on
those entries consistent with the regulations governing post summary
corrections that require payment of additional duties, including AD/CVD
duties.
If it is determined that an importer has not met the certification
and/or related documentation requirements for certain entries, Commerce
intends to instruct CBP to suspend, pursuant to this final affirmative
country-wide determination of circumvention and the Order,\9\ all
unliquidated entries for which these requirements were not met and to
require the importer to post applicable cash deposits equal to the rate
noted above.
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\9\ See Order.
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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: July 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 I
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
Comment 3: Argument Concerning Circumvention by Additional
Companies
Comment 4: Whether the Preliminary Determination is Contrary to
Law
Comment 5: Whether the Determination with Respect to R-410B is
Supported by Substantial Evidence
VIII. Recommendation
Appendix II
Importer Certification
I hereby certify that:
A. My name is {IMPORTING COMPANY OFFICIAL'S NAME{time} and I am
an official of {NAME OF IMPORTING COMPANY{time} , located at
{ADDRESS of IMPORTING COMPANY{time} ;
B. I have direct personal knowledge of the facts regarding the
importation into the Customs territory of the United States of the
hydrofluorocarbon (HFC) blend R-410B, R-407G, and a certain custom
HFC blend produced in China that entered under the entry number(s)
identified below, and which are covered by this certification.
``Direct personal knowledge'' refers to facts the certifying party
is expected to have in its own records. For example, the importer
should have direct personal knowledge of the importation of the
product, including the exporter's and/or foreign seller's identity
and location;
C. If the importer is acting on behalf of the first U.S.
customer, include the following sentence as paragraph C of this
certification:
The R-410B, R-407G, and a certain custom HFC blend covered by
this certification were imported by {NAME OF IMPORTING
COMPANY{time} on behalf of {NAME OF U.S. CUSTOMER{time} , located
at {ADDRESS OF U.S. CUSTOMER{time} .
If the importer is not acting on behalf of the first U.S.
customer, include the following sentence as paragraph C of this
certification:
{NAME OF IMPORTING COMPANY{time} is not acting on behalf of the
first U.S. customer.
D. The R-410B, R-407G, and a certain custom HFC blend covered by
this certification was shipped to {NAME OF PARTY IN THE UNITED
STATES TO WHOM THE MERCHANDISE WAS FIRST SHIPPED{time} located at
{U.S. ADDRESS TO WHICH MERCHANDISE WAS SHIPPED{time} .
E. Select the appropriate statement below:
__ I have direct personal knowledge of the facts regarding the
end use of the imported products covered by this certification
because my company is the end user of the imported product covered
by this certification and I certify that the R-410B, R-407G, and a
certain custom HFC blend will not be used to produce subject
merchandise. ``Direct Personal knowledge'' includes information
contained within my company's books and records.
__ My company is not the end user of the imported product
covering this certification, however, I have personal knowledge of
the facts regarding the end use of the imported products covered by
this certification. I have been able to contact the end user of the
imported product and confirm that it will not use this product to
produce subject merchandise. The end user of the imported product is
{COMPANY NAME{time} located at {ADDRESS{time} . ``Personal
knowledge'' includes facts obtained from another party (e.g.,
correspondence received by the importer from the end user of the
product).
F. This certification applies to the following entries (repeat
this block as many times as necessary):
Entry Summary #:
Entry Summary Line Item #:
Foreign Seller:
Foreign Seller's Address:
Foreign Seller's Invoice #:
Foreign Seller's Invoice Line Item #:
Producer:
Producer's Address:
G. I understand that {NAME OF IMPORTING COMPANY{time} is
required to maintain a copy of this certification and sufficient
documentation supporting this certification (i.e., documents
maintained in the normal course of business, or documents obtained
by the certifying party, for example, product data sheets, chemical
testing specifications, productions records, invoices, etc.) for the
later of: (1) the date that is five years after the date of the
latest entry covered by the certification or; (2) the date that is
three years after the conclusion of any litigation in the United
States courts regarding such entries;
H. I understand that {IMPORTING COMPANY{time} is required to
submit a copy of the importer certification as part of the entry
summary by uploading them into the document imaging system (DIS) in
ACE, and
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to provide U.S. Customs and Border Protection (CBP) and/or the U.S.
Department of Commerce (Commerce) with the importer certification,
and any supporting documentation, upon request of either agency;
I. I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce;
J. I understand that failure to maintain the required
certification and supporting documentation, or failure to
substantiate the claims made herein, or not allowing CBP and/or
Commerce to verify the claims made herein, may result in a de facto
determination that all entries to which this certification applies
are within the scope of the antidumping duty (AD) order on HFC
blends from China. I understand that such finding will result in:
(i) suspension of liquidation of all unliquidated entries (and
entries for which liquidation has not become final) for which these
requirements were not met;
(ii) the importer being required to post the cash deposits
determined by Commerce; and
(iii) the importer no longer being allowed to participate in the
certification process.
K. I understand that agents of the importer, such as brokers,
are not permitted to make this certification. Where a broker or
other party was used to facilitate the entry process, {NAME OF
IMPORTING COMPANY{time} obtained the entry summary number and date
of entry summary from that party.
L. This certification was completed and signed on, or prior to,
the date of the entry summary if the entry date is more than 14 days
after the date of publication of the notice of Commerce's
preliminary determination of circumvention in the Federal Register.
If the entry date is on or before the 14th day after the date of
publication of the notice of Commerce's preliminary determination of
circumvention in the Federal Register, this certification was
completed and signed by no later than 45 days after publication of
the notice of Commerce's preliminary determination of circumvention
in the Federal Register.
M. I am aware that U.S. law (including, but not limited to, 18
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly
and willfully make materially false statements to the U.S.
government.
Signature
{NAME OF COMPANY OFFICIAL{time}
{TITLE OF COMPANY OFFICIAL{time}
{DATE{time}
[FR Doc. 2024-15264 Filed 7-10-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on July 11, 2024.
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