[Federal Register Volume 79, Number 103 (Thursday, May 29, 2014)]
[Notices]
[Pages 30817-30819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12484]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-998]


1,1,1,2-Tetrafluroethane From the People's Republic of China: 
Antidumping Duty Investigation, 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.

DATES: Effective Date: May 29, 2014.
SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that 1,1,1,2-Tetrafluoroethane (``tetrafluoroethane'') from 
the People's Republic of China (``PRC'') is being, or is 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 April 1, 2013, through 
September 30, 2013. 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.

FOR FURTHER INFORMATION CONTACT: Frances Veith or Bob Palmer, 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-
4295 or (202) 482-9068, 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 conducted this investigation in accordance with 
section 731 of the Act. We calculated export prices and constructed 
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 hereby adopted by 
this notice.\1\ The Preliminary Decision Memorandum is a public 
document and is on file electronically via Enforcement and Compliance's

[[Page 30818]]

Antidumping and 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 
Memorandum can be accessed directly on the Internet at http://trade.gov/enforcement//. The signed Preliminary Decision Memorandum and 
the electronic version of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See ``Decision Memorandum for Preliminary Determination for 
the Antidumping Duty Investigation of 1,1,1,2-Tetrafluoroethane 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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Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    On February 19, 2014, 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.\2\ We 
preliminarily determine that critical circumstances do not exist for 
Bluestar but do exist with respect to Weitron, non-individually 
examined companies, 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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    \2\ See Letter from Petitioner to the Department, Re: ``1,1,1,2 
Tetrafluoroethane from The People's Republic of China: Critical 
Circumstances Allegation,'' February 19, 2014.
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Combination Rates

    In the Initiation Notice,\3\ 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.\4\
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    \3\ See 1,1,1,2-Tetrafluoroethane from the People's Republic of 
China: Initiation of Antidumping Duty Investigation, 77 FR 73832, 
73836 (December 9, 2013) (``Initiation Notice'').
    \4\ 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:

------------------------------------------------------------------------
                                                             Weighted-
            Exporter                     Producer         average margin
                                                                (%)
------------------------------------------------------------------------
Weitron International            Zhejiang Quhua Fluor-            133.47
 Refrigeration Equipment          Chemistry Co., Ltd.
 (Kunshan) Co., Ltd.
Weitron International            Sinochem Environmental           133.47
 Refrigeration Equipment          Protection Chemicals
 (Kunshan) Co., Ltd.              (Taicang) Co., Ltd.
Jiangsu Bluestar Green           Jiangsu Bluestar Green           237.33
 Technology Co., Ltd.             Technology Co., Ltd.
Shandong Dongyue Chemical Co.,   Shandong Dongyue                 187.48
 Ltd.                             Chemical Co., Ltd.
T.T. International Co., Ltd....  Sinochem Environmental           187.48
                                  Protection Chemicals
                                  (Taicang) Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Quhua Fluor-            187.48
                                  Chemistry Co., Ltd.
T.T. International Co., Ltd....  Jiangsu Bluestar Green           187.48
                                  Technology Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Sanmei                  187.48
                                  Chemical Ind, Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Pujiang                 187.48
                                  Bailian Chemical Co.,
                                  Ltd.
T.T. International Co., Ltd....  Jiangsu Jinxue Group             187.48
                                  Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Quzhou                  187.48
                                  Lianzhou Refrigerants
                                  Co., Ltd.
Zhejiang Sanmei Chemical         Zhejiang Sanmei                  187.48
 Industry Co., Ltd.               Chemical Industry Co.,
                                  Ltd.
Zhejiang Sanmei Chemical         Jiangsu Sanmei                   187.48
 Industry Co., Ltd.               Chemicals Co., Ltd.
PRC-Wide Entity \5\............                                   237.33
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Disclosure and Public Comment

    We will 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.\6\ 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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    \5\ This also includes Zhejiang Bailian Industry and Trade, 
Jiangsu Jin Xue Group Co., Ltd., SC Ningbo International Ltd, 
Sinochem Environmental Protection Chemicals (Taichang) Co., Ltd., 
Sinochem Ningbo Ltd., Zhejiang Quhua Fluor-Chemistry Co., Ltd., 
Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd. and Aerospace 
Communications Holdings, Co. Ltd.
    \6\ See 19 CFR 351.309.
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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 at Enforcement and Compliance's electronic records 
system, 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.\7\ Hearing requests 
should contain the party's name, address, and telephone number, the 
number of participants, and a list of the issues you 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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    \7\ See 19 CFR 351.310(c).
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    Pursuant to section 735(a)(1) of the Act, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination.

[[Page 30819]]

Suspension of Liquidation

    In accordance with section 733(d) of the Act the Department will 
instruct U.S. Customs and Border Protection (``CBP'') to suspend 
liquidation of all entries of tetrafluoroethane from the PRC, as 
described in the ``Scope of the Investigation'' section, entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.
    Pursuant to 19 CFR 351.205(d), the Department will instruct CBP to 
require a cash deposit \8\ equal to the weighted-average amount by 
which NV exceeds U.S. price, adjusted where appropriate for export 
subsidies and estimated domestic subsidy pass-through,\9\ 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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    \8\ 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).
    \9\ See sections 772(c)(1)(C) and 777A(f) of the Act, 
respectively. Unlike in administrative reviews, the Department 
calculates the adjustment for export subsidies in investigations not 
in the margin calculation program, but in the cash deposit 
instructions issued to CBP. See Notice of Final Determination of 
Sales at Less Than Fair Value, and Negative Determination of 
Critical Circumstances: Certain Lined Paper Products from India, 71 
FR 45012 (August 8, 2006), and accompanying Issues and Decision 
Memorandum at Comment 1.
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    We did not adjust the preliminary determination AD margins for 
export subsidies because the Department found no evidence of export 
subsidies in the companion countervailing duty (``CVD'') proceeding. 
Additionally, the Department did not adjust the preliminary 
determination AD margins for estimated domestic subsidy pass-through 
because respondents provided no information to support an adjustment 
pursuant to section 777A(f) of the Act.\10\
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    \10\ See Preliminary Decision Memorandum.
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Postponement of Final Determination and Extension of Provisional 
Measures

    Pursuant to a request from Weitron, we are postponing the final 
determination and extending the provisional measures from a four-month 
period to no more than six months. Accordingly, we will make 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.\11\
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    \11\ See also 19 CFR 351.210(e).
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International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we notified the ITC 
of our preliminary affirmative 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 
tetrafluoroethane, or sales (or the likelihood of sales) for 
importation, of the merchandise under consideration within 45 days of 
our final determination.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: May 21, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

List of Topics Discussed in the Preliminary Decision Memorandum

1. Initiation
2. Period of Investigation
3. Postponement of Preliminary Determination
4. Scope of the Investigation
5. Scope Comments
6. Selection of Respondents
7. Critical Circumstances
8. Discussion of the Methodology
    a. Non-Market Economy Country
    b. Surrogate Country
    c. Surrogate Value Comments
    d. Separate Rates
    e. Margin for the Separate Rate Companies
    f. Combination Rates
    g. The PRC-Wide Entity
    h. Application of Facts Available and Adverse Facts Available
    i. Affiliation
    j. Date of Sale
    k. Fair Value Comparisons
    l. Export Price
    m. Constructed Export Price
    n. Normal Value
    o. Factor Valuations Methodology
    p. Comparison to Normal Value
    q. Currency Conversion
9. Verification
10. Section 777A(f) of the Act
11. International Trade Commission Notification
12. Conclusion

[FR Doc. 2014-12484 Filed 5-28-14; 8:45 am]
BILLING CODE 3510-DS-P