[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Pages 62597-62599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24903]


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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: 
Final Determination of Sales at Less Than Fair Value

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

SUMMARY: We determine that 1,1,1,2-Tetrafluroethane 
(``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 735 of the Tariff Act of 
1930, as amended (``the Act''). This investigation's final dumping 
margins are in the ``Final Determination Margins'' section, infra.

DATES: Effective Date: October 20, 2014.

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:

Background

    On May 29, 2014, the Department of Commerce (``Department'') 
published its Preliminary Determination \1\ and postponement of the 
final determination in the LTFV investigation of tetrafluoroethane from 
the PRC and on July 1, 2014, we published an Amended Preliminary 
Determination.\2\ We invited interested parties to comment on our 
Preliminary Determination of sales at LTFV and Amended Preliminary 
Determination. For a list of the parties that filed case and rebuttal 
briefs, see the Issues and Decision Memorandum.\3\ On September 30, 
2014, the Department held a public hearing limited to issues raised in 
case and rebuttal briefs.
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    \1\ See 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, 79 FR 30817 (May 29, 2014) (Preliminary 
Determination).
    \2\ See 1,1,1,2-Tetrafluoroethane From the People's Republic of 
China: Antidumping Duty Investigation; Amended Affirmative 
Preliminary Determination of Critical Circumstances, 79 FR 37287 
(July 1, 2014) (Amended Preliminary Determination).
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Issues and Decision Memorandum for the Final Determination of the 
Antidumping Duty Investigation of 1,1,1,2-Tetrafluroethane from the 
People's Republic of China,'' dated concurrently with this notice 
(``Issues and Decision Memorandum'').
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Period of Investigation

    The period of investigation (``POI'') is April 1, 2013, through 
September 30, 2013. This period corresponds to the two most recent 
fiscal quarters prior to the month of the filing of the petition, which 
was October 2013.\4\
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    \4\ See 19 CFR 351.204(b)(1).
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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.

Verification

    As provided in section 782(i) of the Act, between June 4 and June 
20, 2014, the Department verified the information submitted by Weitron 
International Refrigeration Equipment (Kunshan) Co., Ltd. (``Weitron 
Kunshan'') and Jiangsu Bluestar Green Technology Co., Ltd. 
(``Bluestar'') for use in the final determination.\5\ We issued our 
verification reports on July 21, 2014, and July 23, 2014.\6\ The 
Department used standard verification procedures, including examination 
of relevant accounting and production records and original source 
documents provided by respondents.\7\
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    \5\ See the Department's four memoranda regarding: (1) 
``Verification of the Sales and Factors Responses of Jiangsu 
Bluestar Green Technology Co., Ltd., in the Investigation of 
1,1,1,2-Tetrafluorethane from the People's Republic of China,'' 
dated July 21, 2014; (2) ``Verification of the CEP Sales Response of 
Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. 
and Weitron, Inc. in the Investigation of 1,1,1,2 Tetrafluoroethane 
from the People's Republic of China (``PRC''),'' dated July 23, 
2014; (3) ``Verification of the Response of Weitron International 
Refrigeration Equipment (Kunshan) Co., Ltd. in the Investigation of 
1,1,1,2 Tetrafluoroethane from the People's Republic of China 
(``PRC''),'' dated July 23, 2014; and (4) ``Verification of the 
Factors Responses of Zhejiang Juhua Co., Ltd. Organic Fluorine Plant 
(``JuhuaOP'') in the Investigation of 1,1,1,2 Tetrafluoroethane from 
the People's Republic of China (``PRC''),'' dated July 23, 2014.
    \6\ Id.
    \7\ Id.
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Analysis of Comments Received

    We addressed all issues raised by parties in case and rebuttal 
briefs in the Issues and Decision Memorandum.\8\ The Appendix to this 
notice includes a list of the issues which the parties raised and to 
which the Department responded in the Issues and Decision Memorandum. 
The Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement

[[Page 62598]]

and Compliance's Antidumping and Countervailing Duty Centralized 
Electronic Service System (``IA ACCESS''). IA ACCESS is available to 
registered users at http://iaaccess.trade.gov and it 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 
Issues and Decision Memorandum is available at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \8\ See Issues and Decision Memorandum.
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Changes Since the Preliminary Determination

    Based on the Department's analysis of the comments received and our 
findings at verification, we made certain changes to Bluestar's margin 
calculations. Additionally, we determined that Weitron Kunshan was not 
an exporter of subject merchandise during the POI. Accordingly, we have 
not calculated a dumping margin based on the data reported by Weitron 
Kushan. For a discussion of these changes, see the Issues and Decision 
Memorandum.

Final Affirmative Determination of Critical Circumstances

    We determine that critical circumstances exist with respect to 
Bluestar, non-individually examined companies, and the PRC-wide 
entity.\9\
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    \9\ See the Issues and Decision Memorandum at Comment 6.
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Combination Rates

    In the Initiation Notice,\10\ 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.\11\
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    \10\ 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'').
    \11\ 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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Final Determination

    The final weighted-average antidumping duty (``AD'') margin 
percentages are as follows:
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    \12\ Jiangsu Bluestar Green Technology Co., Ltd.'s margin is the 
only calculated margin. As the only calculated margin, it is the 
margin assigned to the separate rate companies. Addtionally, as it 
is the higher of the calculated margin or the petition rate, it is 
also the PRC-Wide Entity margin.

------------------------------------------------------------------------
                                                             Weighted-
            Exporter                     Producer         average margin
                                                                (%)
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Jiangsu Bluestar Green           Jiangsu Bluestar Green      \12\ 280.67
 Technology Co., Ltd..            Technology Co., Ltd..
Shandong Dongyue Chemical Co.,   Shandong Dongyue                 280.67
 Ltd..                            Chemical Co., Ltd..
T.T. International Co., Ltd....  Sinochem Environmental           280.67
                                  Protection Chemicals
                                  (Taicang) Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Quhua Fluor-            280.67
                                  Chemistry Co., Ltd..
T.T. International Co., Ltd....  Jiangsu Bluestar Green           280.67
                                  Technology Co., Ltd..
T.T. International Co., Ltd....  Zhejiang Sanmei                  280.67
                                  Chemical Ind, Co.,
                                  Ltd..
T.T. International Co., Ltd....  Zhejiang Pujiang                 280.67
                                  Bailian Chemical Co.,
                                  Ltd..
T.T. International Co., Ltd....  Jiangsu Jinxue Group             280.67
                                  Co., Ltd..
T.T. International Co., Ltd....  Zhejiang Quzhou                  280.67
                                  Lianzhou Refrigerants
                                  Co., Ltd..
Zhejiang Sanmei Chemical         Zhejiang Sanmei                  280.67
 Industry Co., Ltd..              Chemical Industry Co.,
                                  Ltd..
Zhejiang Sanmei Chemical         Jiangsu Sanmei                   280.67
 Industry Co., Ltd..              Chemicals Co., Ltd..
PRC-Wide Entity \13\...........  .......................          280.67
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Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of the date of publication of this notice 
in accordance with 19 CFR 351.224(b).
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    \13\ This also includes Weitron International Refrigeration 
Equipment (Kunshan) Co., Ltd., 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.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(4)(A) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to continue 
to retroactively suspend liquidation of all appropriate entries of 
tetrafluoroethane from the PRC as described in the ``Scope of the 
Investigation'' section, which were entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the date on which the suspension of liquidation was first ordered 
(i.e., May 29, 2014, the date of publication in the Federal Register of 
the notice of an affirmative preliminary determination that 
tetrafluoroethane is being, or is likely to be, sold in the United 
States at LTFV). Further, pursuant to 19 CFR 351.205(d), the Department 
will instruct CBP to require a cash deposit \14\ equal to the weighted-
average amount by which the normal value exceeds U.S. price, adjusted 
where appropriate for export subsidies and estimated domestic subsidy 
pass-through, as follows: (1) For the exporter/producer combination 
listed in the table above, the cash deposit rate will be equal to the 
dumping margin which the Department determined in this final 
determination; (2) for all combinations of PRC exporters/producers of 
merchandise under consideration which have not received their own 
separate rate above, the cash deposit rate will be equal to the dumping 
margin 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 equal to 
the cash deposit rate applicable to the PRC exporter/producer 
combination that supplied that non-PRC exporter. These suspension-of-
liquidation instructions will remain in effect until further notice.
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    \14\ 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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    We did not adjust the final determination AD margins for export 
subsidies because the Department found no evidence of export subsidies 
in the

[[Page 62599]]

companion countervailing duty proceeding. Additionally, the Department 
did not adjust the final 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.

ITC Notification

    In accordance with section 735(d) of the Act, we notified the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. As the Department's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will determine, within 45 days, whether the domestic industry in 
the United States is materially injured, or threatened with material 
injury, by reason of imports of tetrafluoroethane from the PRC, or 
sales (or the likelihood of sales) for importation, of 
tetrafluoroethane from the PRC. If the ITC determines that such injury 
does not exist, this proceeding with be terminated and all securities 
posted will be refunded or canceled. If the ITC determines that such 
injury does exist, the Department will issue an antidumping duty order 
directing CBP to assess, upon further instruction by the Department, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.

Return or Destruction of Proprietary Information

    This notice also serves as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305. Timely written notification of 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation,
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: October 14, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--Issues and Decision Memorandum

Summary
Background
Use of Adverse Facts Available
Weitron Kunshan
Critical Circumstances
Margin Calculations
Discussion of the Issues
    Comment 1: Separate Rate Practice
    Comment 2: Whether Weitron Kunshan Qualifies as a Respondent
    Comment 3: Surrogate Country
    Comment 4: By-products
    Comment 5: Price Adjustments--ISO Tanks
    Comment 6: Critical Circumstances
    Comment 7: Whether to Continue to Rely on the Average-to-Average 
Margin Calculation Methodology
    Comment 8: Whether to Add an Additional USHTS Code to the Scope
    Comment 9: Whether The Department's Rejection of Minor 
Corrections Was Contrary to Law
    Comment 10: Hydrogen Fluoride Surrogate Value
    Comment 11: Color Salts Surrogate Value
    Comment 12: Caustic Potash Surrogate Value
    Comment 13: Dawson Gas Surrogate Value
    Comment 14: Whether to Categorize Catalyst, Refrigerants and 
Compressed Air as Factory Overhead
    Comment 15: Compressed Air Surrogate Value
    Comment 16: Selection of Surrogate Financial Statements
    Comment 17: Calculation of Thai-Japan Financial Ratios
    Comment 18: Inland Freight and Brokerage & Handling
    Comment 19: Bluestar R22 Supplier Distance
    Comment 20: Packing Materials
    Comment 21: Domestic Movement Expense Calculation
    Comment 22: Whether to Correct the Unit Weight of Certain 
Packing Inputs
    Comment 23: Whether to Delete Unknown Country of Origin Sales 
from Weitron's Reported Sales
    Comment 24: Whether to Apply Subsidy Offset to Weitron's Margin 
Recommendation

[FR Doc. 2014-24903 Filed 10-17-14; 8:45 am]
BILLING CODE 3510-DS-P