[Federal Register Volume 85, Number 167 (Thursday, August 27, 2020)]
[Notices]
[Pages 52950-52953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18811]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-121]


Difluoromethane (R-32) From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Difluoromethane (R-32) from the People's Republic of China (China) 
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, 2019 
through December 31, 2019. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable August 20, 2020.

FOR FURTHER INFORMATION CONTACT: Joshua Tucker or William Miller, 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) 482-2044 or (202) 
482-3906, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 
24, 2020.\1\ On June 8, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
August 20, 2020.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. 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 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 directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Difluoromethane (R-32) from the People's Republic of 
China: Initiation of Less-Than-Fair-Value Investigation, 85 FR 10406 
(February 24, 2020) (Initiation Notice).
    \2\ See Difluorormethane {sic{time}  (R-32) from the People's 
Republic of China: Postponement of Preliminary Determination in the 
Less-Than-Fair-Value Investigation, 85 FR 34707 (June 8, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of 
Difluoromethane (R-32) from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is difluoromethane (R-32) 
from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\5\ No party commented on the 
scope of the investigation. Thus, Commerce has not modified the scope 
language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 85 FR at 10407.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value (NV) in accordance with section 
773(c) of the Act.
    In addition, Commerce has relied on facts available under section 
776(a) of the Act to determine the cash deposit rate assigned to the 
China-wide entity. Furthermore, pursuant to sections 776(a) and (b) of 
the Act, because the China-wide entity did not cooperate to the best of 
its ability in responding to Commerce's requests for data, Commerce 
preliminarily has relied upon facts otherwise available, with adverse 
inferences, for the China-wide entity. For a full description of the 
methodology underlying Commerce's preliminary determination, see the 
Preliminary Decision Memorandum.

[[Page 52951]]

Combination Rates

    In the Initiation Notice,\6\ Commerce stated that it would 
calculate exporter/producer combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\7\ For a list of the respondents that 
established eligibility for their own separate rates and the exporter/
producer combination rates applicable to these respondents, see 
Appendix III.
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    \6\ See Initiation Notice, 85 FR at 10409.
    \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 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
            Producer                     Exporter             average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Taizhou Qingsong Refrigerant     Taizhou Qingsong                 161.49
 New Material Co., Ltd.           Refrigerant New
                                  Material Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd.  Zibo Feiyuan Chemical            221.06
                                  Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd.  T.T. International Co.,          221.06
                                  Ltd.
Producers Supplying the Non-     Non-Individually                 196.19
 Individually-Examined            Examined Exporters
 Exporters Receiving Separate     Receiving Separate
 Rates (see Appendix III).        Rates (see Appendix
                                  III).
China-Wide Entity..............  .......................          221.06
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this notice in the Federal Register, 
as discussed below. Further, pursuant to section 733(d)(1)(B) of the 
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the weighted average amount by which NV exceeds U.S. 
price, as indicated in the chart above as follows: (1) For the 
producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted-average dumping margin 
listed for that combination in the table; (2) for all combinations of 
Chinese producers/exporters of merchandise under consideration that 
have not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the Chinese producer/exporter combination (or the China-wide entity) 
that supplied that third-country exporter.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify information relied upon in making its final determination.

Public Comment

    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 last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than seven days after the deadline 
date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\9\
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    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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Final Determination

    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 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for

[[Page 52952]]

postponement of a final AD 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 August 13 and 14, 2020, Taizhou Qingsong Refrigerant New 
Material Co., Ltd. (Taizhou Qingsong), Zibo Feiyuan Chemical Co., Ltd. 
(Zibo Feiyuan), and Arkema Inc. (the petitioner), requested that 
Commerce postpone the final determination and that provisional measures 
be extended to a period not to exceed six months.\10\ In accordance 
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), 
because: (1) The preliminary determination is affirmative; (2) the 
requesting exporters account for a significant proportion of exports of 
the subject merchandise; and (3) no compelling reasons for denial 
exist, Commerce is postponing the final determination and extending the 
provisional measures from a four-month period to a period not greater 
than six months. Accordingly, Commerce will make its final 
determination no later than 135 days after the date of publication of 
this preliminary determination.
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    \10\ See Taizhou Qingsong's and Zibo Feiyuan's Letter, ``Less-
Than-Fair Value Investigation of Difluoromethane (R-32) from the 
People's Republic of China: Request for Extension of Final 
Determination and Provisional Measures,'' dated August 13, 2020; and 
Petitioner's Letter, ``Difluoromethane (R-32) from the People's 
Republic of China: Petitioner's Request to Postpone Final 
Determination,'' dated August 14, 2020.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    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: August 20, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is difluoromethane 
(R-32), or its chemical equivalent, regardless of form, type or 
purity level. R-32 has the Chemical Abstracts Service (CAS) registry 
number of 75-10-5 and the chemical formula CH2 F2. R-32 is also 
referred to as difluoromethane, HFC-32, FC-32, Freon-32, methylene 
difluoride, methylene fluoride, carbon fluoride hydride, halocarbon 
R32, fluorocarbon R32, and UN 3252. Subject merchandise also 
includes R-32 and unpurified R-32 that are processed in a third 
country or the United States, including, but not limited to, 
purifying or any other processing that would not otherwise remove 
the merchandise from the scope of this investigation if performed in 
the country of manufacture of the in-scope R-32. R-32 that has been 
blended with products other than pentafluoroethane (R-125) is 
included within this scope if such blends contain 85% or more by 
volume on an actual percentage basis of R-32. In addition, R-32 that 
has been blended with any amount of R-125 is included within this 
scope if such blends contain more than 52% by volume on an actual 
percentage basis of R-32. Whether R-32 is blended with R-125 or 
other products, only the R-32 component of the mixture is covered by 
the scope of this investigation. The scope also includes R-32 that 
is commingled with R-32 from sources not subject to this 
investigation. Only the subject component of such commingled 
products is covered by the scope of this investigation.
    Excluded from the current scope is merchandise covered by the 
scope of the antidumping order on hydrofluorocarbon blends from the 
People's Republic of China. See Hydrofluorocarbon Blends from the 
People's Republic of China: Antidumping Duty Order, 81 FR 55436 
(August 19, 2016) (the Blends Order).
    R-32 is classified under Harmonized Tariff Schedule of the 
United States (HTSUS) subheading 2903.39.2035. Other merchandise 
subject to the current scope, including the abovementioned blends 
that are outside the scope of the Blends Order, may be classified 
under 2903.39.2045 and 3824.78.0020. The HTSUS subheadings and CAS 
registry number are provided for convenience and customs purposes. 
The written description of the scope of the investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country
    C. Separate Rates
    D. Separate Rate Recipients
    E. Margin for the Separate Rate Companies
    F. Combination Rates
    G. The China-Wide Entity
    H. Date of Sale
    I. Fair Value Comparisons
    J. Export Price
    K. Normal Value
    L. Comparisons to Normal Value
VI. Currency Conversion
VII. Conclusion

Appendix III

                     List of Separate Rate Companies
------------------------------------------------------------------------
                Exporter                             Producer
------------------------------------------------------------------------
                                           Producers Supplying the Non-
  Non-Individually Examined Exporters    Individually-Examined Exporters
        Receiving Separate Rates             Receiving Separate Rates
------------------------------------------------------------------------
Icool International (Hong Kong) Limited  Changshu 3F Zhonghao New
                                          Chemical Materials Co., Ltd.
Icool International (Hong Kong) Limited  Zhejiang Zhiyang Chemical Co.,
                                          Ltd.
Icool International (Hong Kong) Limited  Taizhou Huasheng New
                                          Refrigeration Material Co.,
                                          Ltd.
Icool International (Hong Kong) Limited  Zhejiang Lishui Fuhua Chemical
                                          Co., Ltd.
Icool International (Hong Kong) Limited  Zibo Feiyuan Chemical Co., Ltd.
Icool International (Hong Kong) Limited  Jiangsu Meilan Chemical Co.,
                                          Ltd.
Icool International (Hong Kong) Limited  Taizhou Qingsong Refrigerant
                                          New Material Co., Ltd.
Icool International (Hong Kong) Limited  Zhejiang Sanmei Chemical
                                          Industry Co., Ltd.
Icool International (Hong Kong) Limited  Shandong Huaan New Material
                                          Co., Ltd.
Icool International (Hong Kong) Limited  Liaocheng Fuer New Materials
                                          Technology Co., Ltd.
Icool International (Hong Kong) Limited  Ruyuan Dongyangguang Fluorine
                                          Co., Ltd.
Icool International (Hong Kong) Limited  Shandong Xinlong Science
                                          Technology Co., Ltd.
Icool International (Hong Kong) Limited  Linhai Limin Chemicals Co.,
                                          Ltd.
Icool International (Hong Kong) Limited  Dongyang Weihua Refrigerants
                                          Co., Ltd.
Icool International (Hong Kong) Limited  Zhejiang Fulai Refrigerant Co.,
                                          Ltd.

[[Page 52953]]

 
Icool International (Hong Kong) Limited  Zhejiang Guomao Industrial Co.,
                                          Ltd.
Icool International (Hong Kong) Limited  Zhejiang Yonghe Refrigerant
                                          Co., Ltd.
Icool International (Hong Kong) Limited  Shanghai Aohong Chemical Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Changshu 3F Zhonghao New
                                          Chemical Materials Co., Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Zhiyang Chemical Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Taizhou Huasheng New
                                          Refrigeration Material Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Lishui Fuhua Chemical
                                          Co., Ltd.
Ninhua Group Co., Ltd..................  Zibo Feiyuan Chemical Co., Ltd.
Ninhua Group Co., Ltd..................  Jiangsu Meilan Chemical Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Taizhou Qingsong Refrigerant
                                          New Material Co., Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Sanmei Chemical
                                          Industry Co., Ltd.
Ninhua Group Co., Ltd..................  Shandong Huaan New Material
                                          Co., Ltd.
Ninhua Group Co., Ltd..................  Liaocheng Fuer New Materials
                                          Technology Co., Ltd.
Ninhua Group Co., Ltd..................  Ruyuan Dongyangguang Fluorine
                                          Co., Ltd.
Ninhua Group Co., Ltd..................  Shandong Xinlong Science
                                          Technology Co., Ltd.
Ninhua Group Co., Ltd..................  Linhai Limin Chemicals Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Dongyang Weihua Refrigerants
                                          Co., Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Fulai Refrigerant Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Guomao Industrial Co.,
                                          Ltd.
Ninhua Group Co., Ltd..................  Zhejiang Yonghe Refrigerant
                                          Co., Ltd.
Ninhua Group Co., Ltd..................  Shanghai Aohong Chemical Co.,
                                          Ltd.
Shandong Huaan New Material Co., Ltd...  Shandong Huaan New Material
                                          Co., Ltd.
T.T. International Co., Ltd............  Sinochem Lantian Fluoro
                                          Materials Co., Ltd.
T.T. International Co., Ltd............  Zhejiang Sanmei Chemical
                                          Industry Co., Ltd.
T.T. International Co., Ltd............  Shandong Huaan New Material
                                          Co., Ltd.
Zhejiang Sanmei Chemical Ind. Co., Ltd.  Jiangsu Sanmei Chemical Ind.
                                          Co., Ltd.
Zhejiang Sanmei Chemical Ind. Co., Ltd.  Fujian Qingliu Dongying
                                          Chemical Co., Ltd.
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[FR Doc. 2020-18811 Filed 8-26-20; 8:45 am]
BILLING CODE 3510-DS-P