[Federal Register Volume 81, Number 195 (Friday, October 7, 2016)]
[Notices]
[Pages 69786-69788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24358]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-044]


1,1,1,2-Tetrafluoroethane (R-134a) From the People's Republic of 
China: Preliminary Determination of Sales at Less-Than-Fair Value and 
Affirmative Determination of Critical Circumstances, in Part, and 
Postponement of Final Determination

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

DATES: Effective October 7, 2016.
SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that 1,1,1,2-Tetrafluoroethane (``R-134a'') 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''). The period of 
investigation (``POI'') is July 1, 2015, through December 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 75 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: Keith Haynes or Paul Stolz, 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-
5139 or, (202) 482-4474 respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The product subject to this investigation is 1,1,1,2-
Tetrafluoroethane, R-134a. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I.

Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Tariff Act of 1930, as amended (``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 hereby adopted by 
this notice.\1\ 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 is available 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 accessed 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 ``Decision Memorandum for Preliminary Determination for 
the Antidumping Duty Investigation of 1,1,1,2-Tetrafluoroethane (R-
134a) from the People's Republic of China,'' dated concurrently with 
this notice (``Preliminary Decision Memorandum'').
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Preliminary Affirmative Determination of Critical Circumstances

    On September 9, 2016, Petitioners filed a timely critical 
circumstances allegation pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206 with respect to imports of the subject merchandise.\2\ 
We preliminarily determine that critical circumstances exist for the 
non-selected separate rate respondents and the PRC-wide entity, but do 
not exist for the mandatory respondent, Zhejiang Sanmei Chemical 
Industry Co., Ltd.\3\ For a full description of the methodology and the 
results of our analysis, see the Preliminary Decision Memorandum.
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    \2\ See Petitioners' letter, ``1.1.1.2 Tetrafluoroethane (R-
134a) from the People's Republic of China: Critical Circumstances 
Allegation,'' dated September 9, 2016.
    \3\ See Preliminary Decision Memorandum at ``Application of 
Facts Available and Adverse Inferences.''
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Use of Adverse Facts Available

    The Department preliminarily finds that the PRC-wide entity, which 
includes certain PRC exporters and/or producers that did not respond to 
the Department's requests for information, withheld information 
requested by the Department and significantly impeded this proceeding 
by not submitting requested information. Specifically, 26 companies 
within the PRC-wide entity failed to respond to the Department's 
request for quantity and value (``Q&V'') information.\4\ Furthermore, 
the Department finds that the PRC-wide entity's lack of participation, 
including the failure of certain parts of the PRC-wide entity to submit 
Q&V information, constitutes circumstances under which it is reasonable 
to conclude that the PRC-wide entity as a whole failed to cooperate to 
the best of its ability to comply with the Department's request for 
information.\5\
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    \4\ Id.
    \5\ See Nippon Steel Corporation v. United States, 337 F.3d 
1373, 1383 (Fed. Cir. 2003) (noting that the Department need not 
show intentional conduct existed on the part of the respondent, but 
merely that a ``failure to cooperate to the best of a respondent's 
ability'' existed (i.e., information was not provided ``under 
circumstances in which it is reasonable to conclude that less than 
full cooperation has been shown.'')).
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    Therefore, we preliminarily find that an adverse inference is 
warranted in selecting from among the facts otherwise available with 
respect to the PRC-wide entity in accordance with sections 776(a) and 
776(b) of the Act and 19 CFR 351.308(a). As adverse facts available, we 
have preliminarily assigned the PRC-wide entity a rate of 187.71 
percent. Further, with respect to critical circumstances, we have 
preliminarily determined, again, based on adverse facts available, that 
the PRC-wide entity dumped ``massive imports'' over a ``relatively 
short period.'' For further explanation and analysis, see the 
Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\6\ the Department stated that it would 
calculate combination rates for the respondents that are eligible for a

[[Page 69787]]

separate rate in this investigation. Policy Bulletin 05.1 describes 
this practice.\7\
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    \6\ See 1,1,1,2-Tetrafluoroethane (R-134a) from the People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation, 
81 FR 18830 (April 1, 2016) (``Initiation Notice'').
    \7\ 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-
                                                               Average
             Exporter                       Producer            Margin
                                                              (percent)
------------------------------------------------------------------------
Zhejiang Sanmei Chemical Industry   Zhejiang Sanmei               137.23
 Co., Ltd.                           Chemical Industry Co.,
                                     Ltd. and Jiangsu
                                     Sanmei Chemicals Co.,
                                     Ltd.
Jiangsu Bluestar Green Technology   Jiangsu Bluestar Green        137.23
 Co., Ltd.                           Technology Co., Ltd.
T.T. International Co., Ltd.......  Electrochemical Factory       137.23
                                     of Zhejiang Juhua Co.,
                                     Ltd.
T.T. International Co., Ltd.......  Sinochem Environmental        137.23
                                     Protection Chemicals
                                     (Taicang) Co., Ltd.
T.T. International Co., Ltd.......  Zhejiang Quzhou               137.23
                                     Lianzhou Refrigerants
                                     Co., Ltd.
T.T. International Co., Ltd.......  Zhejiang Sanmei               137.23
                                     Chemical Ind. Co., Ltd.
T.T. International Co., Ltd.......  Zhejiang Zhonglan             137.23
                                     Refrigeration
                                     Technology Co., Ltd.
Weitron International               Sinochem Environmental        137.23
 Refrigeration Equipment Co., Ltd.   Protection Chemicals
                                     (Taicang) Co., Ltd.
Weitron International               Weitron International         137.23
 Refrigeration Equipment Co., Ltd.   Refrigeration
                                     Equipment Co., Ltd.
Weitron International               Zhejiang Organic Fluor-       137.23
 Refrigeration Equipment Co., Ltd.   Chemistry Plant,
                                     Zhejiang Juhua Co.,
                                     Ltd.
Weitron International               Zhejiang Quhua Fluor-         137.23
 Refrigeration Equipment Co., Ltd.   Chemistry Co., Ltd.
Weitron International               Zhejiang Quhua Juxin          137.23
 Refrigeration Equipment Co., Ltd.   Fluorochemical
                                     Industry Co., Ltd.
Weitron International               Zhejiang Sanmei               137.23
 Refrigeration Equipment Co., Ltd.   Chemical Industry Co.,
                                     Ltd.
PRC-Wide Entity...................  .......................       188.94
------------------------------------------------------------------------

    As detailed further in the Preliminary Decision Memorandum, 
Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd., a mandatory respondent 
in this investigation, did not demonstrate that it was entitled to a 
separate rate. Accordingly, we consider this company to be part of the 
PRC-wide entity.

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 R-134a from the PRC, as described in the 
``Scope of the Investigation'' in Appendix I, 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 R-134a from the PRC 
produced and exported by the separate rate respondents, and the PRC-
wide entity. Accordingly, for the separate rate respondents 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 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 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. These suspension of liquidation instructions 
will remain in effect until further notice.
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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).
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Disclosure and Public Comment

    We intend to disclose the calculations performed to parties in this 
proceeding within five days after public announcement of the 
preliminary 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.\9\ 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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    \9\ 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 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.\10\ Hearing requests 
should contain the party's name, address, and telephone number, the 
number of

[[Page 69788]]

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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    \10\ See 19 CFR 351.310(c).
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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 
Petitioners. 19 CFR 351.210(e)(2) requires that requests by respondents 
for postponement of a final antidumping 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.
    On September 29, 2016, pursuant to 19 CFR 351.210(b) and (e), 
Sanmei requested that, contingent upon an affirmative preliminary 
determination of sales at LTFV for the respondents, the Department 
postpone the final determination and that provisional measures be 
extended to a period not to exceed six months.\11\
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    \11\ See Letter from Sanmei, ``1,1,1,2-Tetrafluoroethane (R134a) 
from the People's Republic of China: Request for Extension to 
Supplemental Section C&D Response,'' dated September 29, 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 exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater 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.\12\
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    \12\ 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 R-
134a, 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 and 19 CFR 351.205(c).

    Dated: September 29, 2016.
Paul Piquado,
Assistant Secretary, for Enforcement and Compliance.

Appendix I

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 registry number is CAS 811-97-2.\13\
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    \13\ 1,1,1,2-Tetrafluoroethane is sold under a number of trade 
names including Klea 134a and Zephex 134a (Mexichem Fluor); Genetron 
134a (Honeywell); FreonTM 134a, Suva 134a, Dymel 134a, 
and Dymel P134a (Chemours); 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.
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    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.

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Selection of Respondents
IV. Period of Investigation
V. Scope Comments
VI. Scope of the Investigation
VII. Postponement of Preliminary Determination
VIII. Postponement of Final Determination and Extension of 
Provisional Measures
IX. Product Characteristics
X. Critical Circumstances
XI. Affiliation Determination
XII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Separate Rates
    C. Separate Rate Recipients
    D. Companies Not Receiving a Separate Rate
    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. Surrogate Country and Surrogate Value Data
    J. Date of Sale
    K. Fair Value Comparisons
    L. Export Price
    M. Value-Added Tax
    N. Normal Value
    O. Factor Valuations
    P. Comparisons to Normal Value
    Q. Currency Conversion
XIII. Verification
XIV. U.S. International Trade Commission Notification
XV. Conclusion

[FR Doc. 2016-24358 Filed 10-6-16; 8:45 am]
 BILLING CODE 3510-DS-P