Hydrofluorocarbon Blends and Components Thereof From the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value, Affirmative Preliminary Determination of Critical Circumstances, in Part, and Postponement of Final Determination
Federal Register, Volume 81 Issue 20 (Monday, February 1, 2016)
Federal Register Volume 81, Number 20 (Monday, February 1, 2016)
Notices
Pages 5098-5101
From the Federal Register Online via the Government Publishing Office www.gpo.gov
FR Doc No: 2016-01767
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DEPARTMENT OF COMMERCE
International Trade Administration
A-570-028
Hydrofluorocarbon Blends and Components Thereof From the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value, Affirmative Preliminary Determination of Critical Circumstances, in Part, and Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily determines that hydrofluorocarbon blends and components thereof (HFCs) from the People's Republic of China (PRC) are being, or are likely to be, sold in the United States at less than fair value (LTFV), as provided in section 733 of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is October 1, 2014, through March 31, 2015. The estimated margins of sales at LTFV are shown in the ``Preliminary Determination'' section of this notice. The final determination will be issued 135 days after publication of this preliminary determination in the Federal Register. Interested parties are invited to comment on this preliminary determination.
DATES: Effective date: February 1, 2016.
FOR FURTHER INFORMATION CONTACT: Dennis McClure or Elizabeth Eastwood, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
5973 or (202) 482-3874, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department initiated this investigation on July 22, 2015.\1\ For a complete description of the events that followed the initiation of this investigation, see the memorandum that is dated concurrently with this determination and hereby adopted by this notice.\2\ 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 https://access.trade.gov, and to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be found at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content.
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\1\ See Hydrofluorocarbon Blends and Components Thereof From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 80 FR 43387 (July 22, 2015) (Initiation Notice).
\2\ See ``Decision Memorandum for Preliminary Determination of the Antidumping Duty Investigation of Hydrofluorocarbon Blends and Components Thereof from the People's Republic of China,'' from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance, dated concurrently with this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are HFCs. For a full description of the scope of this investigation, see the ``Scope of the Investigation,'' in Appendix I of this notice.
Scope Comments
Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice. We have addressed some comments raised by interested parties but intend to address the rest of the comments at a later point in the investigation. For discussion of those comments, see the Preliminary Decision Memorandum.
Methodology
The Department conducted this investigation in accordance with section 731 of the Act. We calculated export prices in accordance with section 772 of the Act. Because the PRC is a non-market economy within the meaning of section 771(18) of the Act, normal value (NV) was calculated in accordance with section 773(c) of the Act.
For a full description of the methodology underlying our conclusions, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in Part
On November 30, 2015, the petitioner timely filed an amendment to the petition, pursuant to section 733(e)(1) of the Act and 19 CFR 351.206(c)(2)(i), alleging that critical circumstances exist with respect to imports of the merchandise under consideration.\3\ We
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preliminarily determine that critical circumstances do not exist for Shandong Dongyue Chemical Co., Ltd./Huantai Dongyue International Trade Co., Ltd. (Dongyue), and non-individually examined companies, but do exist with respect to T.T. International Co., Ltd. (T.T. International) and the PRC-wide entity. For a full description of the methodology and results of our analysis, see the Preliminary Decision Memorandum.
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\3\ See Letter from Petitioner to the Department, Re: ``Hydrofluorocarbon Blends and Components Thereof from the People's Republic of China: Critical Circumstances Allegation,'' November 30, 2015.
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Combination Rates
In the Initiation Notice,\4\ the Department stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.\5\
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\4\ See Initiation Notice, 80 FR at 43391.
\5\ 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 the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
The preliminary weighted-average antidumping duty (AD) margin percentages are as follows:
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Weighted-
Exporter Producer average
margin (%)
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Shandong Dongyue Chemical Co., Shandong Dongyue 92.88
Ltd/Huantai Dongyue Chemical Co., Ltd.
International Trade Co., Ltd.
Shandong Dongyue Chemical Co., Jiangsu Melian Chemical 92.88
Ltd/Huantai Dongyue Co., Ltd.
International Trade Co., Ltd.
Shandong Dongyue Chemical Co., Jiangxi Gemei Fluorine 92.88
Ltd/Huantai Dongyue Chemical Co., Ltd.
International Trade Co., Ltd.
Shandong Dongyue Chemical Co., Liaocheng Fuer New 92.88
Ltd/Huantai Dongyue Material Technology
International Trade Co., Ltd. Co., Ltd.
Shandong Dongyue Chemical Co., Zhejiang Quzhou Juxin 92.88
Ltd/Huantai Dongyue Fluorine Chemical Co.,
International Trade Co., Ltd. Ltd.
Shandong Dongyue Chemical Co., Zhejiang Sanmei 92.88
Ltd/Huantai Dongyue Chemical Ind. Co., Ltd.
International Trade Co., Ltd.
T.T. International Co., Ltd.... Sinochem Environmental 91.99
Protection Chemicals
(Taicang) Co., Ltd.
T.T. International Co., Ltd.... Zhejiang Lantian 91.99
Environmental
Protection Fluorine
Materials Co., Ltd.
T.T. International Co., Ltd.... Jinhua Yonghe 91.99
Fluorochemical Co.,
Ltd.
T.T. International Co., Ltd.... Zhejiang Sanmei 91.99
Chemical Industry Co.,
Ltd.
T.T. International Co., Ltd.... Shandong Huaan New 91.99
Material Co., Ltd.
T.T. International Co., Ltd.... Zhejiang Zhonglan 91.99
Refrigeration
Technology Co., Ltd.
T.T. International Co., Ltd.... Dongyang Weihua 91.99
Refrigerants Co., Ltd.
Daikin Fluorochemicals (China) Daikin Fluorochemicals 92.60
Co., Ltd. (China) Co., Ltd.
Jinhua Yonghe Fluorochemical Zhejiang Yonghe 92.60
Co., Ltd. Refrigerant Co., Ltd.
Shandong Huaan New Material Shandong Huaan New 92.60
Co., Ltd. Material Co., Ltd.
Weitron International Zhejiang Lantian 92.60
Refrigeration Equipment Environmental
(Kunshan) Co., Ltd. Protection Fluoro
Material Co., Ltd.
Weitron International Sinochem Environmental 92.60
Refrigeration Equipment Protection Chemicals
(Kunshan) Co., Ltd. (Taicang) Co., Ltd.
Weitron International Zhejiang Quzhou 92.60
Refrigeration Equipment Lianzhou Refrigerants
(Kunshan) Co., Ltd. Co., Ltd.
Weitron International Zhejiang Sanmei 92.60
Refrigeration Equipment Chemical Industry Co.,
(Kunshan) Co., Ltd. Ltd.
Zhejiang Yonghe Refrigerant Jinhua Yonghe 92.60
Co., Ltd. Fluorochemical Co.,
Ltd.
Zhejiang Sanmei Chemical Zhejiang Sanmei 92.60
Industry Co., Ltd. Chemical Industry Co.,
Ltd.
Zhejiang Sanmei Chemical Jiangsu Sanmei 92.60
Industry Co., Ltd. Chemicals Co., Ltd.
PRC-Wide Entity \6\............ ....................... 210.46
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Disclosure and Public Comment
We intend to disclose the calculations performed to parties in this proceeding within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the final verification report is issued in this proceeding and rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.\7\ A table of contents, list of authorities used, and an executive summary of issues should accompany any briefs submitted to the Department.
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\6\ This also includes Sinchem Lantian Trade Co., Ltd., Sinochem Environmental Protection Chemicals (Taicang) Co. Ltd., Zhejiang Lantian Environmental Protection Fluoro Material Co., Ltd., Zhejiang Quhua Fluor-Chemistry Co., Ltd., and Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd.
\7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements).
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Interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, filed electronically at Enforcement and Compliance's electronic records system, ACCESS. An electronically-filed document must be received successfully in its entirety by the Department's electronic records system, ACCESS, by 5:00 p.m. Eastern Standard Time, within 30 days after the date of publication of this notice.\8\ Hearing requests should contain the party's name, address, and telephone number, the number of participants, and a list of the issues you
Page 5100
intend to present at the hearing. If a request for a hearing is made, the Department intends to hold the hearing at the U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230, at a time and location to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.
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\8\ See 19 CFR 351.310(c).
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, the Department will instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of HFCs from the PRC, as described in Appendix I of this notice, entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register.
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. We preliminarily find that critical circumstances exist for imports of HFCs from the PRC produced or exported by the T.T. International Co., Ltd. and the PRC-
wide entity. Accordingly, for T.T. International Co., Ltd. and the PRC-
wide entity, in accordance with section 733(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice.
Pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will instruct CBP to require a cash deposit \9\ equal to the weighted-average amount by which NV exceeds U.S. price, as indicated in the chart above, as follows: (1) The cash deposit rate for the exporter/producer combinations listed in the table above will be the rate the Department determines in this preliminary determination; (2) for all combinations of PRC exporters/producers of merchandise under consideration that have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate established for the PRC-wide entity; and (3) for all non-PRC exporters of merchandise under consideration which have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate applicable to the PRC exporter/producer combination that supplied that non-PRC exporter.
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\9\ See Modification of Regulations Regarding the Practice of Accepting Bonds During the Provisional Measures Period in Antidumping and Countervailing Duty Investigations, 76 FR 61042 (October 3, 2011).
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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 petitioner. 19 CFR 351.210(e)(2) requires that requests by respondents for postponement of a final 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.
Respondents Dongyue and T.T. International requested that, in the event of an affirmative preliminary determination in this investigation, the Department postpone its final determination by 60 days (i.e., to 135 days after publication of the preliminary determination), and agreed to extend the application of the provisional measures prescribed under section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-month period to a period not to exceed six months.\10\ In addition, the petitioners \11\ also requested that, in the event of a negative preliminary determination, the Department postpone its final determination to 135 days after the date of publication of the preliminary determination.\12\
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\10\ See letters from Dongyue and T.T. International, respectively, entitled, ``Request for Postponement of Final Determination: Antidumping Duty Investigation on Hydrofluorocarbon Blends and Components Thereof from the People's Republic of China,'' dated January 13, 2016, and ``Hydroflourocarbon Blends and Componenents Thereof from the People's Republic of China: Request to Postpone Final Determination,'' dated January 14, 2016.
\11\ The petitioners in this proceeding are American HFC Coalition and District Lodge 154 of the International Association of Machinists and Aerospace Workers.
\12\ See letter from the petitioners entitled, ``Hydrofluorocarbon Blends and Components Thereof from the People's Republic of China: Petitioner's Request for Extension of the Antidumping Investigation Final Determination,'' dated January 13, 2016.
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In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) our preliminary determination is affirmative; (2) the requesting exporters account for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, we are postponing the final determination until no later than 135 days after the publication of this notice in the Federal Register and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, we will issue our final determination no later than 135 days after the date of publication of this preliminary determination, pursuant to section 735(a)(2) of the Act.\13\
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\13\ See 19 CFR 351.210(b)(2) and (e).
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International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, we are notifying the ITC of our affirmative preliminary determination of sales at LTFV. Section 735(b)(2) of the Act requires the ITC to 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 HFCs, or sales (or the likelihood of sales) for importation, of the merchandise under consideration before the later of 120 days after the date of this preliminary determination or 45 days after our final determination. Because we are postponing the deadline for our final determination to 135 days from the date of publication of this preliminary determination, as discussed above, the ITC will make its final determination no later than 45 days after our final determination.
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: January 21, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The products subject to this investigation are blended hydrofluorocarbons (HFCs) and single HFC components of those blends thereof, whether or not imported for blending. HFC blends covered by the scope are R-404, a zeotropic mixture consisting of 52 percent 1,1,1 Trifluoroethane, 44 percent Pentafluoroethane, and 4 percent 1,1,1,2-Tetrafluoroethane; R-407A, a zeotropic mixture of 20 percent Difluoromethane, 40 percent Pentafluoroethane, and 40 percent 1,1,1,2-Tetrafluoroethane; R-407C, a zeotropic mixture of 23 percent
Page 5101
Difluoromethane, 25 percent Pentafluoroethane, and 52 percent 1,1,1,2-Tetrafluoroethane; R-410A, a zeotropic mixture of 50 percent Difluoromethane and 50 percent Pentafluoroethane; and R-507A, an azeotropic mixture of 50 percent Pentafluoroethane and 50 percent 1,1,1-Trifluoroethane also known as R-507. The foregoing percentages are nominal percentages by weight. Actual percentages of single component refrigerants by weight may vary by plus or minus two percent points from the nominal percentage identified above.\14\
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\14\ R-404A is sold under various trade names, including Foranesupreg 404A, Genetronsupreg 404A, Solkanesupreg 404A, Kleasupreg 404A, and Suvasupreg 404A. R-407A is sold under various trade names, including Foranesupreg 407A, Solkanesupreg 407A, Kleasupreg 407A, and Suvasupreg 407A. R-407C is sold under various trade names, including Foranesupreg 407C, Genetronsupreg 407C, Solkanesupreg 407C, Kleasupreg 407C and Suvasupreg 407C. R-410A is sold under various trade names, including EcoFluor R410, Foranesupreg 410A, Genetronsupreg R410A and AZ-20, Solkanesupreg 410A, Kleasupreg 410A, Suvasupreg 410A, and Puronsupreg. R-507A is sold under various trade names, including Foranesupreg 507, Solkanesupreg 507, Kleasupreg 507, Genetronsupreg AZ-50, and Suvasupreg 507. R-32 is sold under various trade names, including Solkanesupreg 32, Foranesupreg32, and Kleasupreg 32. R-125 is sold under various trade names, including Solkanesupreg 125, Kleasupreg 125, Genetronsupreg125, and Foranesupreg 125. R-143a is sold under various trade names, including Solkanesupreg 143a, Genetronsupreg 143a, and Foranesupreg 125.
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The single component HFCs covered by the scope are R-32, R-125, and R-143a. R-32 or Difluoromethane has the chemical formula CH2F2, and is registered as CAS No. 75-10-5. It may also be known as HFC-
32, FC-32, Freon-32, Methylene difluoride, Methylene fluoride, Carbon fluoride hydride, halocarbon R32, fluorocarbon R32, and UN 3252. R-125 or 1,1,1,2,2- Pentafluoroethane has the chemical formula CF3CHF2 and is registered as CAS No. 354-33-6. R-125 may also be known as R-125, HFC-125, Pentafluoroethane, Freon 125, and Fc-125, R-125. R-143a or 1,1,1-Trifluoroethane has the chemical formula CF3CH3 and is registered as CAS No. 420-46-2. R-143a may also be known as R-143a, HFC-143a, Methylfluoroform, 1,1,1-Trifluoroform, and UN2035.
Excluded from this investigation are blends of refrigerant chemicals that include products other than HFCs, such as blends including chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs).
Also excluded from this investigation are patented HFC blends, such as ISCEONsupreg blends, including MO99TM (RR-
438A), MO79 (R-422A), MO59 (R-417A), MO49PlusTM (R-437A) and MO29TM (R-4 22D), Genetronsupreg PerformaxTM LT (R-407F), Choicesupreg R-421A, and Choicesupreg R-421B.
HFC blends covered by the scope of this investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 3824.78.0020 and 3824.78.0050. Single component HFCs are currently classified at subheadings 2903.39.2035 and 2903.39.2045, HTSUS.\15\ Although the HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes, the written description of the scope is dispositive.
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\15\ We note that HFC blends were classified at HTSUS subheading 3824.78.0020 and single component HFCs were classified at HTSUS subheading 2903.39.2030 in 2015.
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Appendix II--List of Topics Discussed in the Preliminary Decision Memorandum
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Summary
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Background
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Period of Investigation
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Scope of the Investigation
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Scope Comments
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Selection of Respondents and Treatment of Voluntary Respondents
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Critical Circumstances
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Discussion of the Methodology
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Non-market Economy Country
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Surrogate Country
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Surrogate Value Comments
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Separate Rates
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Margin for the Separate Rate Companies
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Combination Rates
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The PRC-Wide Entity
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Application of Facts Available and Adverse Inferences
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Date of Sale
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Fair Value Comparisons
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Export Price
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Normal Value
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Factor Valuation Methodology
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By-Products
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Comparisons to Normal Value
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Currency Conversion
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Verification
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Conclusion
FR Doc. 2016-01767 Filed 1-29-16; 8:45 am
BILLING CODE 3510-DS-P
