[Federal Register Volume 83, Number 43 (Monday, March 5, 2018)]
[Notices]
[Pages 9277-9278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04393]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Hydrofluorocarbon Blends From the People's Republic of China: 
Notice of Covered Merchandise Referral

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

SUMMARY: Pursuant to the Enforce and Protect Act of 2015 (EAPA), the 
Department of Commerce (Commerce) received a covered merchandise 
referral from U.S. Customs and Border Protection (CBP) in connection 
with a CBP Enforce and Protect Act (EAPA) investigation concerning the 
antidumping duty (AD) order on hydrofluorocarbon (HFC) blends from the 
People's Republic of China (China). In accordance with EAPA, Commerce 
intends to determine whether the merchandise subject to the referral is 
covered by the scope of the order and promptly transmit its 
determination to CBP. Commerce is providing notice of the referral and 
inviting participation from interested parties.

DATES: Applicable March 5, 2018.

FOR FURTHER INFORMATION CONTACT: Manuel Rey at (202) 482-5518, AD/CVD 
Operations Office II, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On February 24, 2016, the Trade Facilitation and Trade Enforcement 
Act of 2015 was signed into law, which contains Title IV-Prevention of 
Evasion of Antidumping and Countervailing Duty Orders (short title 
``Enforce and Protect Act of 2015'' or ``EAPA'') (Pub. L. 114-125, 130 
Stat. 122, 155, Feb. 24, 2016). Effective August 22, 2016, section 421 
of the EAPA added section 517 to the Tariff Act of 1930, as amended 
(the Act), which establishes a formal process for CBP to investigate 
allegations of the evasion of antidumping and countervailing duty (AD/
CVD) orders. Section 517(b)(4)(A) of the Act provides a procedure 
whereby if, during the course of an EAPA investigation, CBP is unable 
to determine whether the merchandise at issue is covered merchandise 
within the meaning of section 517(a)(3) of the Act, it shall refer the 
matter to Commerce to make such a determination. Section 517(a)(3) of 
the Act defines covered merchandise as merchandise that is subject to 
an antidumping duty order issued under section 736 of the Act or a 
countervailing duty order issued under section 706 of the Act. Section 
517(b)(4)(B) of the Act states that Commerce, after receiving a covered 
merchandise referral from CBP, shall determine whether the merchandise 
is covered merchandise and promptly transmit its determination to CBP. 
The Act does not establish a deadline within which Commerce must issue 
its determination.
    On December 4, 2017, Commerce received a covered merchandise 
referral from CBP regarding CBP EAPA Investigation No. 7212 \1\ which 
concerns the AD order on HFCs from China.\2\ Specifically, based on an 
allegation by RMS of Georgia d/b/a Choice
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    \1\ See Letter from CBP, ``EAPA Case Number: 7212; Scope 
Referral Request for merchandise under EAPA Investigation 7212, 
imported by LM Supply, Inc. and concerning the investigation of 
evasion of the antidumping duty order on hydrofluorocarbon blends 
from the People's Republic of China (A-570-028),'' dated December 4, 
2017. This document and any supporting documents will be available 
electronically on Enforcement and Compliance's Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS) 
within five days of publication of this notice.
    \2\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016).
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    Refrigerants, CBP has requested that Commerce issue a determination 
as to whether certain merchandise imported by LM Supply, Inc. (LM 
Supply) is subject to the AD order on HFCs from China. Specifically, 
CBP asked Commerce to clarify: (1) If the scope exclusion for 
Choice[supreg] R-421A is limited to only merchandise that is licensed 
by the rights holder or does it apply to any HFC blends that satisfy 
the terms of the patents, and (2) if the scope exclusion is limited to 
only that merchandise that also carries the trademarks indicated in the 
scope exclusion.

Notification to Interested Parties

    Commerce is hereby notifying interested parties that it has 
received the covered merchandise referral referenced above, will begin 
a new segment of the proceeding, and intends to issue a determination 
regarding whether the merchandise subject to the referral is covered 
merchandise within the meaning of section 517(a)(3) of the Act. 
Additionally, Commerce intends to provide interested parties with the 
opportunity to participate in this segment of the proceeding, including 
through the submission of comments, and, if appropriate, new factual 
information and verification. Specifically, Commerce will notify 
parties on the segment-specific service list for this segment of the 
proceeding of a schedule for comments. In addition, Commerce may 
request factual information from any person to assist in making its 
determination and may verify submissions of factual information, if 
Commerce determines that such verification is appropriate. Commerce 
intends to issue a final determination within 120 days of the 
publication of this notice (this deadline

[[Page 9278]]

may be extended if it is not practicable to complete the final 
determination within 120 days), and will promptly transmit its final 
determination to CBP in accordance with section 517(b)(4)(B) of the 
Act.
    Parties are also hereby notified that this is the only notice that 
Commerce intends to publish in the Federal Register concerning this 
covered merchandise referral. Therefore, interested parties that wish 
to participate in this segment of the proceeding, and receive notice of 
the final determination, must submit their letters of appearance, as 
discussed below. Further, any party desiring access to business 
proprietary information in this segment of the proceeding must file an 
application for access to business proprietary information under 
administrative protective order (APO), as discussed below.
    Finally, we note that covered merchandise referrals constitute a 
new type of segment of a proceeding at Commerce and, therefore, 
Commerce will continue to develop its practice and procedures in this 
area. Additionally, we note that Commerce has received a scope ruling 
request concerning merchandise which may be similar to the merchandise 
at issue in the covered merchandise referral referenced above.\3\ Thus, 
Commerce may consider any potential overlapping issues in these 
separate segments of the proceeding.
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    \3\ See Letter on behalf of Kenneth Ponder and Choice 
Refrigerants ``Application for Scope Ruling on Exclusion of Patented 
HFC Blends from Antidumping Duty Order A-570-028: Hydrofluorocarbon 
Blends and Components Thereof from the People's Republic of China,'' 
dated November 30, 3017.
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Scope of the AD Order Hydrofluorocarbon Blends From People's Republic 
of China

    The merchandise covered by this order is HFC blends. HFC blends 
covered by the scope are R-404A, a zeotropic mixture consisting of 52 
percent 1,1,1 Trifluoroethane, 44 percent Pentafluoroethane, and 4 
percent 1,1,1,2-Tetrafluoroethane; R-407A, a zeotropic mixture of 20 
percent Difluoromethane, 40 percent Pentafluoroethane, and 40 percent 
1,1,1,2-Tetrafluoroethane; R-407C, a zeotropic mixture of 23 percent 
Difluoromethane, 25 percent Pentafluoroethane, and 52 percent 1,1,1,2-
Tetrafluoroethane; R-410A, a zeotropic mixture of 50 percent 
Difluoromethane and 50 percent Pentafluoroethane; and R-507A, a 
zeotropic mixture of 50 percent Pentafluoroethane and 50 percent 1,1,1-
Trifluoroethane also known as R-507. The foregoing percentages are 
nominal percentages by weight. Actual percentages of single component 
refrigerants by weight may vary by plus or minus two percent points 
from the nominal percentage identified above.\4\
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    \4\ R-404A is sold under various trade names, including 
Forane[supreg] 404A, Genetron[supreg] 404A, Solkane[supreg] 404A, 
Klea[supreg] 404A, and Suva[supreg]404A. R-407A is sold under 
various trade names, including Forane[supreg] 407A, Solkane[supreg] 
407A, Klea[supreg]407A, and Suva[supreg]407A. R-407C is sold under 
various trade names, including Forane[supreg] 407C, Genetron[supreg] 
407C, Solkane[supreg] 407C, Klea[supreg] 407C and Suva[supreg] 407C. 
R-410A is sold under various trade names, including EcoFluor R410, 
Forane[supreg] 410A, Genetron[supreg] R410A and AZ-20, 
Solkane[supreg] 410A, Klea[supreg] 410A, Suva[supreg] 410A, and 
Puron[supreg]. R-507A is sold under various trade names, including 
Forane[supreg] 507, Solkane[supreg] 507, Klea[supreg]507, 
Genetron[supreg]AZ-50, and Suva[supreg]507. R-32 is sold under 
various trade names, including Solkane[supreg]32, Forane[supreg]32, 
and Klea[supreg]32. R-125 is sold under various trade names, 
including Solkane[supreg]125, Klea[supreg]125, Genetron[supreg]125, 
and Forane[supreg]125. R-143a is sold under various trade names, 
including Solkane[supreg]143a, Genetron[supreg]143a, and 
Forane[supreg]125.
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    Any blend that includes an HFC component other than R-32, R-125, R-
143a, or R-134a is excluded from the scope of this order.
    Excluded from this order are blends of refrigerant chemicals that 
include products other than HFCs, such as blends including 
chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), 
hydrocarbons (HCs), or hydrofluoroolefins (HFOs).
    Also excluded from this order are patented HFC blends, including, 
but not limited to, ISCEON[supreg] blends, including MO99TM 
(R-438A), MO79 (R-422A), MO59 (R-417A), MO49PlusTM (R-437A) 
and MO29TM (R-4 22D), Genetron[supreg] 
PerformaxTM LT (R-407F), Choice[supreg] R-421A, and 
Choice[supreg] R-421B.
    HFC blends covered by the scope of this order are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) at subheadings 3824.78.0020 and 3824.78.0050. Although the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope is dispositive.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
ACCESS.\5\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due. Documents 
exempted from the electronic submission requirements must be filed 
manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230, and stamped with the date 
of receipt by the applicable deadlines.
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    \5\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement 
and Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Letters of Appearance and Administrative Protective Order

    Interested parties that wish to participate in this segment of the 
proceeding and be added to the public service list for this segment of 
the proceeding must file a letter of appearance in accordance with 19 
CFR 351.103(d)(1), with one exception: The parties publicly identified 
by CBP in the covered merchandise referral (referenced above) are not 
required to submit a letter of appearance, and will be added to the 
public service list for this segment of the proceeding by Commerce.
    Commerce placed an APO on the record on December 22, 2017,\6\ 
(amended on January 16, 2018),\7\ and established the APO service list 
for use in this segment. Commerce intends to place the business 
proprietary versions of the documents contained in the covered 
merchandise referral on the record of this proceeding in ACCESS within 
five days of publication of this notice.
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    \6\ See the Administrative Protective Order ``In the Matter of 
the Scope Inquiry of the Antidumping Duty Order on Hydrofluorocarbon 
Blends (A-570-028) (CBP EAPA Inv. No. 7212),'' dated December 22, 
2017.
    \7\ See Amendment of the Administrative Protective Order ``In 
the Matter of the Scope Inquiry of the Antidumping Duty Order on 
Hydrofluorocarbon Blends (A-570-028) (CBP EAPA Inv. No. 7212),'' 
dated January 16, 2018.
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    Interested parties must submit applications for disclosure under 
the APO in accordance with the procedures outlined in Commerce's 
regulations at 19 CFR 351.305. Those procedures apply to this segment 
of the proceeding, with one exception: APO applicants representing the 
parties that have been identified by CBP as an importer in the covered 
merchandise referral (referenced above) are exempt from the additional 
filing requirements for importers pursuant to 19 CFR 351.305(d).

    Dated: February 22, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-04393 Filed 3-2-18; 8:45 am]
 BILLING CODE 3510-DS-P