[Federal Register Volume 85, Number 161 (Wednesday, August 19, 2020)]
[Notices]
[Pages 51018-51019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18158]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Anti-Circumvention Inquiry of Antidumping Duty Order on 
Hydrofluorocarbon Blends From the People's Republic of China--HFC 
Components: Final Determination Not To Include Within the Scope of the 
Order

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

SUMMARY: The Department of Commerce (Commerce) determines not to 
include hydrofluorocarbon (HFC) components R-32 (difluoromethane), R-
125 (pentafluoroethane), and R-143a (1,1,1,-trifluoroethane), imported 
into the United States from the People's Republic of China (China), 
within the scope of the antidumping duty (AD) order on HFC blends from 
the China.

DATES: Applicable August 19, 2020.

FOR FURTHER INFORMATION CONTACT: Benjamin Luberda or Melissa Kinter, 
AD/CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2185 or (202) 
482-1413, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 10, 2020, Commerce published the Preliminary Determination 
\1\ of circumvention of the antidumping duty order on HFC blends from 
China with respect to HFC components R-32, R-125, and R-143a that are 
imported from China and further processed into HFC blends subject to 
the Order.\2\ A summary of the events that occurred since Commerce 
published the Preliminary Determination are discussed in the Issues and 
Decision Memorandum.\3\ The Issues and 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 http://access.trade.gov. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly 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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    \1\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Affirmative Preliminary Determination of Circumvention of the 
Antidumping Duty Order for HFC Components; and Extension of the Time 
Limit for Final Determination, 85 FR 20248 (April 10, 2020) 
(Preliminary Determination).
    \2\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) 
(Order).
    \3\ See Memorandum, ``Final Issues and Decision Memorandum for 
Anti-Circumvention Inquiry of the Antidumping Duty Order on 
Hydrofluorocarbon Blends from the People's Republic of China: HFC 
Components,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Order

    The products subject to the Order are 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, an 
azeotropic 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 the Order.
    Excluded from the 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 the 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 the 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.\5\
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    \5\ See Order.
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Merchandise Subject to the Anti-Circumvention Inquiry

    The anti-circumvention inquiry covers imports of HFC components R-
32 (difluoromethane), R-125 (pentafluoroethane), and R-143a (1,1,1-
trifluoroethane) from China that are further processed in the United 
States to create an HFC blend that would be subject to the Order.\6\
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    \6\ As detailed in the ``Scope of the Order'' section of this 
notice, the Order covers five HFC blends (i.e., R-404A, R-407A, R-
407C, R-410A, and R-507/R-507A).
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Final Determination

    In the Preliminary Determination, we determined that imports of HFC 
components R-32, R-125, and R-143a

[[Page 51019]]

from China were circumventing the Order. Specifically, we determined 
that imports of HFC components R-32, R-125, and R-143a from China are 
being finished and sold in the United States pursuant to the statutory 
and regulatory criteria laid out in section 781(a) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.225(g). We based our 
Preliminary Determination upon record evidence submitted by the 
petitioners,\7\ Arkema,\8\ BMP,\9\ National Refrigerants, Inc., T.T. 
International Co., Ltd., Zhejiang Quzhou Juxin Fluorine Chemical Co., 
Ltd., Zhejiang Sanmei Chemical Ind. Co., Ltd., and other interested 
parties. For a complete discussion of the evidence which led to our 
preliminary determination, see the Preliminary Determination.
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    \7\ The petitioner in this anti-circumvention inquiry is the 
American HFC Coalition, which is comprised of the following 
companies: Arkema, Inc. (Arkema); The Chemours Company FC LLC; 
Honeywell International Inc.; and Mexichem Fluor Inc.
    \8\ In addition to its membership in the American HFC Coalition, 
Arkema was selected as one of the mandatory respondents in this 
inquiry. See Memorandum, ``Anti-Circumvention Inquiry of the 
Antidumping Duty Order on Hydrofluorocarbon Blends from the People's 
Republic of China: Hydrofluorocarbon Components--Respondent 
Selection,'' dated December 18, 2019.
    \9\ BMP USA, Inc., iGas USA Inc., Assured Comfort A/C Inc., BMP 
International, Inc., LM Supply Inc., and Cool Master U.S.A., L.L.C. 
(collectively, BMP).
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    Subsequently, on July 6, 2020, the United States International 
Trade Commission (ITC), pursuant to section 781(e)(3) of the Act, 
informed Commerce that it believed that an affirmative final 
determination by Commerce on HFC components from China would raise a 
significant injury issue.\10\ Specifically, the ITC stated in its 
written advice:
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    \10\ See ITC's Letter, ``Anticircumvention Inquiry of the 
Antidumping Duty Order on Hydrofluorocarbon Blends from the People's 
Republic of China, A-570-028; HFC Components from China,'' dated 
July 6, 2020.

    {T{time} he {ITC{time}  believes a final determination by 
Commerce that HFC components from China are covered by the scope of 
the HFC blends from China antidumping duty order under the anti-
circumvention provisions of the statute would be inconsistent with 
the {ITC{time} 's final determination in its original HFCs 
investigation that the domestic HFC component industry in the United 
States was not materially injured or threatened with material injury 
by imports of those same components from China.\11\
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    \11\ Id.

    Based on the ITC's advice, we determine that the merchandise 
subject to this anti-circumvention inquiry should not be included 
within the scope of the Order. Thus, for the final determination, we 
have determined not to include HFC components R-32 (difluoromethane), 
R-125 (pentafluoroethane), and R-143a (1,1,1-trifluoroethane) from 
China that are further processed in the United States to produce 
subject HFC blends to be within the scope of the Order.

Discontinuation of Suspension of Liquidation

    As a result of this determination, and consistent with 19 CFR 
351.225(l)(3), we intend to direct U.S. Customs and Border Protection 
to discontinue suspension of liquidation and to refund all cash 
deposits of estimated antidumping duties for unliquidated entries of 
merchandise subject to this inquiry that are entered, or withdrawn from 
warehouse, for consumption on or after June 18, 2019, the date of 
initiation of this anti-circumvention inquiry.\12\
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    \12\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Initiation of Anti-Circumvention Inquiry of Antidumping Duty 
Order; Components, 84 FR 28273, 28275 (June 18, 2019).
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Notification Regarding Administrative Protective Order

    This notice also serves as a reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 781(a) of the Act and 19 CFR 351.225(f)(4)-(5).

    Dated: August 13, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Merchandise Subject to the Anti-Circumvention Inquiry
IV. Scope of the Order
V. Discussion of the Issues
    A. Legal Framework
    B. Relevant Factual Background
    C. Arguments from Interested Parties
    D. Commerce's Position
VI. Recommendation

[FR Doc. 2020-18158 Filed 8-18-20; 8:45 am]
BILLING CODE 3510-DS-P