[Federal Register Volume 79, Number 75 (Friday, April 18, 2014)]
[Notices]
[Pages 21895-21897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-08932]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-999]


Countervailing Duty Investigation of 1,1,1,2-Tetrafluoroethane 
From the People's Republic of China: Preliminary Affirmative 
Determination and Alignment of Final Determination With Final 
Antidumping Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of 1,1,1,2-Tetrafluoroethane 
(``tetrafluoroethane'') from the People's Republic of China (the 
``PRC''). We invite interested parties to comment on this preliminary 
determination.

DATES: Effective Date: April 18, 2014.

FOR FURTHER INFORMATION CONTACT: Katie Marksberry and Josh Startup, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone 202.482.7906 
or 202.482.5260, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The product subject to this investigation is 1,1,1,2-
Tetrafluoroethane, R-134a, or its chemical equivalent, regardless of 
form, type, or purity level. The chemical formula for 1,1,1,2-
tetrafluoroethane is CF3-CH2F, and the Chemical 
Abstracts Service (``CAS'') registry number is CAS 811-97-2.
    1,1,1,2-Tetrafluoroethane is sold under a number of trade names 
including Klea 134a and Zephex 134a (Mexichem Fluor); Genetron 134a 
(Honeywell); Suva 134a, Dymel 134a, and Dymel P134a (DuPont); Solkane 
134a (Solvay); and Forane 134a (Arkema). Generically, 1,1,1,2-
tetrafluoroethane has been sold as Fluorocarbon 134a, R-134a, HFC-134a, 
HF A-134a, Refrigerant 134a, and UN3159.
    Merchandise covered by the scope of this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') at subheading 2903.39.2020. Although the HTSUS subheading 
and CAS registry number are provided for convenience and customs 
purposes, the written description of the scope is dispositive.

Methodology

    The Department is conducting this countervailing duty (``CVD'') 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the ``Act''). For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memo.\1\ The Preliminary Decision Memo is a public document and is on 
file electronically via Enforcement and Compliance's Antidumping and

[[Page 21896]]

Countervailing Duty Centralized Electronic Service System (``IA 
ACCESS''). IA ACCESS is available to registered users at http://iaaccess.trade.gov, and is available to all parties in the Central 
Records Unit, room 7046 of the main Department of Commerce building. In 
addition, a complete version of the Preliminary Decision Memo can be 
accessed directly on the Internet at http://trade.gov/enforcement. The 
signed Preliminary Decision Memo and the electronic versions of the 
Preliminary Decision Memo are identical in content.
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    \1\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Countervailing Duty Investigation of 1,1,1,2-Tetrafluoroethane 
from the People's Republic of China: Decision Memorandum for the 
Preliminary Determination,'' dated concurrently with this notice 
(``Preliminary Decision Memo'').
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    The Department notes that, in making these findings, we relied, in 
part, on facts available and, because one or more respondents did not 
act to the best of their ability to respond to the Department's 
requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\2\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memo.
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    \2\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memo, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion antidumping duty (``AD'') investigation 
of 1,1,1,2-Tetrafluoroethane from the PRC.\3\ Consequently, the final 
CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
August 4, 2014, unless postponed.
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    \3\ See 1,1,1,2-Tetrafluoroethane from the People's Republic of 
China: Initiation of Antidumping Duty Investigation, 78 FR 73832 
(December 9, 2013).
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated. We preliminarily determine the 
countervailable subsidy rates to be:

------------------------------------------------------------------------
               Company                            Subsidy rate
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T.T. International Co., Ltd..........  28.74 percent.
JUHUA (including Zhejiang Quhua Fluor- 4.04 percent.
 Chemistry Co., Ltd., and other Juhua
 Stock Companies).
Jiangsu Bluestar Green Technology      1.35 percent.
 Co., Ltd.
All Others...........................  16.39 percent.
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    In accordance with sections 703(d)(1)(B) and (2) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation of 
all entries of tetrafluoroethane from the PRC that are entered, or 
withdrawn from warehouse, for consumption on or after the date of the 
publication of this notice in the Federal Register, and to require a 
cash deposit for such entries of merchandise in the amounts indicated 
above.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all-others'' rate, which is 
normally calculated by weighting the subsidy rates of the individual 
companies selected as respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(i) of 
the Act, the all-others rate should exclude zero and de minimis rates 
calculated for the exporters and producers individually investigated. 
Where the rates for the investigated companies are all zero or de 
minimis, section 705(c)(5)(A)(ii) of the Act instructs the Department 
to establish an all-others rate using ``any reasonable method.'' 
Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we 
have not calculated the ``all-others'' rate by weight averaging the 
rates of the two individually investigated respondents, because doing 
so risks disclosure of proprietary information. Therefore, and 
consistent with the Department's practice, for the ``all-others'' rate, 
we calculated a simple average of the two responding firms' rates.\4\
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    \4\ See, e.g., Countervailing Duty Investigation of Chlorinated 
Isocyanurates From the People's Republic of China: Preliminary 
Determination and Alignment of Final Determination With Final 
Antidumping Determination, 79 FR 10097 (February 24, 2014).
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Disclosure and Public Comment

    The Department intends to disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination 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.\5\ A table of contents, list of 
authorities used and an executive summary of issues should accompany 
any briefs submitted to the Department. This summary should be limited 
to five pages total, including footnotes.
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    \5\ 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, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically using IA ACCESS. An electronically filed document 
must be received successfully in its entirety by the Department's 
electronic records system, IA ACCESS, by 5:00 p.m. Eastern Standard 
Time, within 30 days after the date of publication of this notice.\6\ 
Requests should contain the party's name, address, and telephone 
number; the number of participants; and a list of the issues to be 
discussed. 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 date, time and 
location to be determined. Parties will be notified of the date, time 
and location of any hearing.
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    \6\ See 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (``ITC'') of our determination. In 
addition, we are making available to the ITC all non-privileged and 
non-proprietary information relating to this investigation. We will 
allow the ITC access to all privileged and business proprietary 
information in our files, provided the ITC confirms that it will not 
disclose such information, either publicly or under an administrative

[[Page 21897]]

protective order, without the written consent of the Assistant 
Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: April 11, 2014.
Paul Piquado,
Assistant Secretary, for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memo

1. Summary
2. Background
3. Scope Comments
4. Scope of the Investigation
5. Alignment
6. Respondent Selection
7. Injury Test
8. Application of Countervailing Duty Law to Imports From the PRC
9. Subsidies Valuation
10. Benchmarks and Discount Rates
11. Use of Facts Otherwise Available and Adverse Inferences
12. Analysis of Programs
13. Verification
14. Conclusion

[FR Doc. 2014-08932 Filed 4-17-14; 8:45 am]
BILLING CODE 3510-DS-P