[Federal Register Volume 82, Number 39 (Wednesday, March 1, 2017)]
[Notices]
[Pages 12192-12195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03961]


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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: Final Determination of Sales at Less Than Fair Value and 
Affirmative Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (``Department'') determines that 
1,1,1,2 Tetrafluoroethane (R-134a) (``R134a'') 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 final weighted-
average dumping margins of sales at LTFV are listed below in the 
``Final Determination Margins'' section of this notice.

DATES: Effective March 1, 2017.

FOR FURTHER INFORMATION CONTACT: Paul Stolz or Keith Haynes, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-4474, and (202) 482-
5139, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 7, 2016, the Department published the Preliminary 
Determination of this antidumping duty (``AD'') investigation.\1\ In 
the Preliminary Determination, we postponed the final determination 
until no later than 135 days after the date of publication of the 
Preliminary Determination in accordance with section 735(a)(2) of the 
Tariff Act of 1930, as amended (``the Act'') and invited interested 
parties to comment on our preliminary findings. A summary of the events 
that occurred since the Department published the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the accompanying 
Issues and Decision Memorandum.\2\
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    \1\ See 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, 81 FR 69786 
(October 7, 2016) and accompanying Preliminary Decision Memorandum, 
as later amended by 1,1,1,2-Tetrafluoroethane (R-134a) from the 
People's Republic of China; Amended Preliminary Affirmative 
Determination of Sales at Less-Than-Fair Value, 81 FR 86699 
(December 1, 2016) (collectively, ``Preliminary Determination'').
    \2\ See Memorandum to Carole Showers, Executive Director, Office 
of Policy, Policy & Negotiations, (insert Carole's title), ``Issues 
and Decision Memorandum for the 1,1,1,2 Tetrafluoroethane (R-134a) 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value and Affirmative Determination of Critical 
Circumstances, in Part,'' dated concurrently with this notice 
(``Issues and Decision Memorandum'').
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Period of Investigation

    The period of investigation (``POI'') is July 1, 2015, through 
December 31, 2015. This period corresponds to the two most recent 
fiscal quarters prior to the month of the filing of the petition, which 
was March, 2016.\3\
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    \3\ See 19 CFR 351.204(b)(1) and the Initiation Notice.
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Scope Comments

    In the Initiation Notice, the Department set aside a period of time 
for parties to address scope issues in case briefs or other written 
comments on scope issues.\4\ No interested party provided comments on 
scope issues for the Preliminary Determination; however, certain 
parties did submit comments on the scope of the investigation in the 
case and rebuttal briefs. The Department addresses these comments in 
the accompanying Issues and Decision Memorandum, but the scope of this 
investigation remains unchanged for this final determination.\5\
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    \4\ See 1, 1, 1, 2-Tetrafluoroethane from the People's Republic 
of China: Initiation of Less Than Fair Value Investigation, 81 FR 
18830 (April 1, 2016) (``Initiation Notice'').
    \5\ See the Issues and Decision Memorandum at Comment 2.
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Scope of the Investigation

    The product covered by this investigation is 1,1,1,2 
Tetrafluoroethane (R-134a) from the PRC. For a full description of the 
scope of this investigation, see the ``Scope of the Investigation,'' in 
Appendix I of this notice.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by interested 
parties in this investigation that are not related to the scope of this 
investigation are addressed in the Issues and Decision Memorandum, 
which is incorporated by reference by, and hereby adopted by, this 
notice.\6\ A list of these issues is attached to this notice at 
Appendix II. The Issues and Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized

[[Page 12193]]

Electronic Service System (``ACCESS''). ACCESS is available to 
registered users at https://access.trade.gov. The Issues and Decision 
Memorandum 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 Issues and Decision Memorandum is available at 
http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \6\ Id.
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Verification

    As provided in section 782(i) of the Act, from November 9, 2016, 
through November 16, 2016, we conducted a verification of the sales and 
cost responses submitted by Zhejiang Sanmei Chemical Industry Co., Ltd. 
(``Sanmei''). We issued a verification report on December 19, 2016.\7\ 
The Department used standard verification procedures, including an 
examination of relevant accounting and production records and original 
source documents provided by respondents.\8\
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    \7\ See the Department's memorandum, ``Verification of the Sales 
and Factors of Production Questionnaire Responses of Zhejiang Sanmei 
Chemical Industry Co., Ltd. in the Antidumping Investigation of 
1,1,1,2-Tetrafluoroethane (R-134a) from the People's Republic of 
China,'' dated December 19, 2016 (``Verification Report'').
    \8\ Id.
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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 Sanmei's margin 
calculations. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for the respondents that are eligible for a 
separate rate in this investigation.\9\ Policy Bulletin 05.1 describes 
this practice.\10\
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    \9\ See Initiation Notice, 81 FR at18834.
    \10\ 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,'' dated 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 Affirmative Determination of Critical Circumstances, in Part

    In the Preliminary Determination, the Department found that 
critical circumstances exist with respect to imports of R134a from the 
PRC produced or exported by the PRC-wide entity and non-individually 
reviewed producers/exporters entitled to a separate rate.\11\ We are 
not modifying our findings for this final determination. Thus, pursuant 
to section 735(a)(3)(B) of the Act and 19 CFR 351.206(h)(1)-(2), we 
find that critical circumstances exist with respect to subject 
merchandise produced or exported by the PRC-wide entity and non-
individually reviewed producers/exporters entitled to a separate 
rate.\12\
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    \11\ See the memorandum, ``Less Than Fair Value Investigation of 
1,1,1,2 Tetrafluoroethane (``R-134a'') from the People's Republic of 
China (``PRC''): Critical Circumstances Import Data,'' dated 
September 29, 2016.
    \12\ For a full description of the methodology and results of 
our analysis, see the Issues and Decision Memorandum and see the 
memorandum, ``Analysis for the Final Determination of the Less-Than-
Fair-Value Investigation of 1,1,1,2-Tetrafluoroethane (R 134a) from 
the People's Republic of China,'' dated concurrently with this 
notice.
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Separate Rate

    Under section 735(c)(5)(A) of the Act, the rate for all other 
companies that have not been individually examined is normally an 
amount equal to the weighted average of the estimated weighted-average 
dumping margins established for exporters and producers individually 
investigated, excluding any zero and de minimis margins, and any 
margins determined entirely on the basis of facts available. In this 
final determination, we calculated a weighted-average dumping margin 
for Sanmei (the only mandatory respondent eligible for a separate rate) 
which is not zero, de minimis, or based entirely on facts available. 
Accordingly, we determine to use Sanmei's weighted-average dumping 
margin as the margin for the separate rate companies.

PRC-Wide Rate

    In our Preliminary Determination, we found that, pursuant to 
sections 776(a) and (b) of the Act, the PRC-wide entity did not respond 
to the Department's requests for information, failed to provide 
necessary information, withheld information requested by the 
Department, failed to provide information in a timely manner, and 
significantly impeded this proceeding by not submitting the requested 
information. As a result, we preliminarily determined to calculate the 
PRC-wide rate on the basis of adverse facts available (``AFA''). For 
the final determination, we continue to calculate the PRC-wide rate on 
the basis of AFA, in accordance with sections 776(a) and (b) of the 
Act. We are applying Sanmei's highest calculated transaction-specific 
dumping rate of 167.02 percent, as AFA, to the PRC-wide entity for this 
final determination.\13\ The transaction underlying this dumping margin 
is neither unusual in terms of transaction quantities nor otherwise 
atypical, and does not reveal any of Sanmei's proprietary data.\14\ 
There is no need to corroborate the selected margin because it is based 
on information submitted by Sanmei in the course of this investigation, 
i.e., it is not secondary information.\15\
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    \13\ See, e.g., Silica Bricks and Shapes from the People's 
Republic of China: Preliminary Determination of Antidumping Duty 
Investigation and Postponement of Final Determination, 78 FR 37203 
(June 20, 2013), and accompanying Preliminary Decision Memorandum at 
Comment 3.
    \14\ See Certain Frozen Warmwater Shrimp from Thailand: Final 
Results and Final Partial Rescission of Antidumping Duty 
Administrative Review, 72 FR 52065 (September 12, 2007) and 
accompanying Issues and Decision Memorandum at Comment 2.
    \15\ See 19 CFR 351.308(c) and (d) and section 776(c) of the 
Act.
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Final Determination

    The Department determines that the estimated final weighted-average 
dumping margins are as follows:

------------------------------------------------------------------------
                                                             Weighted-
            Exporter                     Producer         average margin
                                                             (percent)
------------------------------------------------------------------------
Zhejiang Sanmei Chemical         Zhejiang Sanmei                  148.79
 Industry Co., Ltd.               Chemical Industry Co.,
                                  Ltd. and Jiangsu
                                  Sanmei Chemicals Co.,
                                  Ltd.
Jiangsu Bluestar Green           Jiangsu Bluestar Green           148.79
 Technology Co., Ltd.             Technology Co., Ltd.
T.T. International Co., Ltd....  Electrochemical Factory          148.79
                                  of Zhejiang Juhua Co.,
                                  Ltd.
T.T. International Co., Ltd....  Sinochem Environmental           148.79
                                  Protection Chemicals
                                  (Taicang) Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Quzhou                  148.79
                                  Lianzhou Refrigerants
                                  Co., Ltd.

[[Page 12194]]

 
T.T. International Co., Ltd....  Zhejiang Sanmei                  148.79
                                  Chemical Ind. Co., Ltd.
T.T. International Co., Ltd....  Zhejiang Zhonglan                148.79
                                  Refrigeration
                                  Technology Co., Ltd.
Weitron International            Sinochem Environmental           148.79
 Refrigeration Equipment Co.,     Protection Chemicals
 Ltd.                             (Taicang) Co., Ltd.
Weitron International            Weitron International            148.79
 Refrigeration Equipment Co.,     Refrigeration
 Ltd.                             Equipment Co., Ltd.
Weitron International            Zhejiang Organic Fluor-          148.79
 Refrigeration Equipment Co.,     Chemistry Plant,
 Ltd.                             Zhejiang Juhua Co.,
                                  Ltd.
Weitron International            Zhejiang Quhua Fluor-            148.79
 Refrigeration Equipment Co.,     Chemistry Co., Ltd.
 Ltd.
Weitron International            Zhejiang Quhua Juxin             148.79
 Refrigeration Equipment Co.,     Fluorochemical
 Ltd.                             Industry Co., Ltd.
Weitron International            Zhejiang Sanmei                  148.79
 Refrigeration Equipment Co.,     Chemical Industry Co.,
 Ltd.                             Ltd.
PRC-Wide Entity\16\............  .......................          167.02
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Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of the public announcement of this final 
determination in accordance with 19 CFR 351.224(b).
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    \16\ The PRC-Wide Entity includes Zhejiang Quzhou Lianzhou 
Refrigerants Co., Ltd., a mandatory respondent, as well as separate 
rate applicants Zhejiang Quhua Fluor-Chemistry Co., Ltd., and 
Sinochem Environmental Protection Chemicals (Taicang) Co. Ltd. See 
Issues and Decision Memorandum at comment 1 and Preliminary 
Determination at 17.
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Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, the Department will 
instruct U.S. Customs and Border Protection (``CBP'') to continue to 
suspend liquidation of all entries of R134a from the PRC, which were 
entered, or withdrawn from warehouse, for consumption on or after July 
9, 2016 (for those entities for which we found critical circumstances 
exist) or on or after October 7, 2016, the date of publication in the 
Federal Register of the affirmative Preliminary Determination (for all 
entities for which we did not find critical circumstances exist). 
Further, pursuant to section 735(c)(1)(B)(ii) of the Act, the 
Department will instruct CBP to require a cash deposit \17\ equal to 
the weighted-average amount by which the normal value exceeds U.S. 
price, as follows: (1) For the exporter/producer combinations 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. The suspension of liquidation 
instructions will remain in effect until further notice.
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    \17\ 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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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (``ITC'') of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding 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 R134a from the PRC, or sales 
(or the likelihood of sales) for importation, of R134a from the PRC. If 
the ITC determines that such injury does not exist, this proceeding 
will 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 AD 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.

Notification Regarding Administrative Protective Orders

    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(a)(3). 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: February 21, 2017.
Carole Showers,
Executive Director, Office of Policy, Policy & Negotiations.

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.\18\
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    \18\ 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.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Determination of Critical Circumstances, in Part
V. Changes Since the Preliminary Determination
VI. Use of Adverse Facts Available
VII. Discussion of the Issues

[[Page 12195]]

    Comment 1: Whether the Department Correctly Denied Lianzhou and 
Quhua a Separate Rate
    Comment 2: Whether the Scope of the Investigation Overlaps With 
an Existing Order
    Comment 3: Whether Critical Circumstances Exist for Weitron
    Comment 4: Sanmei's By-Product Offsets
    Comment 5: Selection of Inland Boat Freight Surrogate Value
    Comment 6: Use of the CYDSA Financial Statement in Calculation 
of Surrogate Financial Ratios
    Comment 7: Revision of Sanmei's Producer/Exporter Combinations
VIII. Recommendation

[FR Doc. 2017-03961 Filed 2-28-17; 8:45 am]
BILLING CODE 3510-DS-P