[Federal Register Volume 86, Number 11 (Tuesday, January 19, 2021)]
[Notices]
[Pages 5136-5139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01014]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-121]
Difluoromethane (R-32) From the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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 is July 1, 2019 through
December 31, 2019. The final dumping margins of sales at LTFV are
listed below in the ``Final Determination'' section of this notice.
DATES: Applicable January 19, 2021.
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
On August 27, 2020, Commerce published the Preliminary
Determination of sales at LTFV of R-32 from China,\1\ in which we also
postponed the final determination to January 11, 2021. The petitioner
in this investigation is Arkema Inc. The mandatory respondents in this
investigation are Taizhou Qingsong Refrigerant New Material Co., Ltd.
(Taizhou Qingsong) and Zibo Feiyuan Chemical Co., Ltd. (Zibo Feiyuan).
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\1\ See 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, 85 FR 52950
(August 27, 2020) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by the parties for this final determination are discussed in the
Issues and Decision Memorandum.\2\ 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/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative 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 (Issues and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is R-32 from China. For a
complete description of the scope of this investigation, see Appendix
I.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum.
A list of the issues raised is attached to this notice as Appendix II.
Verification
Commerce normally verifies information relied upon in making its
final determination, pursuant to section 782(i)(1) of the Tariff Act of
1930, as amended (the Act). However, due to current travel restrictions
in response to the global COVID-19 pandemic, Commerce was unable to
conduct on-site verification in this investigation.\3\ Consistent with
section 776(a)(2)(D) of the Act, Commerce relied on the information
submitted on the record, which we used in making our Preliminary
Determination, as facts available in making our final determination.
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\3\ See Memorandum, ``Cancelation of Verification and Briefing
Schedule,'' dated October 21, 2020.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made no changes to the antidumping duty margin calculations
for Taizhou Qingsong and Zibo Feiyuan.
China-Wide Entity and the Use of Adverse Facts Available
We continue to find that the use of adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act, is warranted in
determining the rate for the China-wide entity.\4\ In selecting the AFA
rate for the China-wide entity, Commerce's practice is to select a rate
that is sufficiently adverse to ensure that the uncooperative party
does not obtain a more favorable result by failing to cooperate than if
it had fully cooperated.\5\ As AFA, we assigned the
[[Page 5137]]
China-wide entity a dumping margin of 221.06 percent, which is the
highest calculated rate in this investigation. Because this constitutes
primary information, the statutory corroboration requirement in section
776(c) of the Act does not apply.
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\4\ The China-wide entity includes those companies who did not
submit a separate rate application, and those companies Commerce
determined were ineligible to receive a separate rate.
\5\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination:
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December
27, 2004), unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland,
70 FR 28279 (May 17, 2005).
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Separate Rates
For the final determination, we continue to find that Taizhou
Qingsong, Zibo Feiyuan, Icool International (Hong Kong) Limited, Ninhua
Group Co., Ltd., Shandong Huaan New Material Co., Ltd., T.T.
International Co., Ltd., and Zhejiang Sanmei Chemical Ind. Co. Ltd. are
eligible for separate rates. Generally, Commerce looks to section
735(c)(5)(A) of the Act, which provides instructions for calculating
the all-others rate in an investigation, for guidance when calculating
the rate for separate rate respondents that we did not individually
examine. Section 735(c)(5)(A) of the Act states that the estimated all-
others rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding zero or de minimis
margins, and any margins determined entirely under section 776 of
Act.\6\ In this proceeding, Commerce calculated above de minimis rates
that are not based entirely on facts available for Taizhou Qingsong and
Zibo Feiyuan, the two mandatory respondents under individual
examination. Thus, looking to section 735(c)(5)(A) of the Act for
guidance, and consistent with our practice,\7\ based on publicly ranged
sales data, we assigned the weighted-average of these mandatory
respondents' rates as the rate for non-individually examined companies
that have qualified for a separate rate.
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\6\ See, e.g., Ball Bearings and Parts Thereof from France,
Germany, Italy, Japan, and the United Kingdom: Final Results of
Antidumping Duty Administrative Reviews and Rescission of Reviews in
Part, 73 FR 52823, 52824 (September 11, 2008), and accompanying
Issues and Decision Memorandum at Comment 16.
\7\ See, e.g., Preliminary Determination of Sales at Less Than
Fair Value and Partial Affirmative Determination of Critical
Circumstances: Certain Polyester Staple Fiber from the People's
Republic of China, 71 FR 77373, 77377 (December 26, 2006), unchanged
in Final Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances: Certain
Polyester Staple Fiber from the People's Republic of China, 72 FR
19690 (April 19, 2007).
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Combination Rates
In the Initiation Notice,\8\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. 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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\8\ See Initiation Notice, 84 FR at 7335.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
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Estimated
weighted-
Producer Exporter average
dumping margin
(percent)
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Taizhou Qingsong Refrigerant New Taizhou Qingsong 161.49
Material Co., Ltd.. Refrigerant New
Material Co., Ltd..
Zibo Feiyuan Chemical Co., Ltd.... Zibo Feiyuan 221.06
Chemical Co., Ltd..
Zibo Feiyuan Chemical Co., Ltd.... T.T. International 221.06
Co., Ltd..
Producers Supplying the Non- Non-Individually 196.19
Individually--Examined Exporters Examined Exporters
Receiving Separate Rates (see Receiving Separate
Appendix III). Rates (see Appendix
III).
China-Wide Entity................. .................... 221.06
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Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a final determination, in accordance with
19 CFR 351.224(b). However, because Commerce made no changes to its
Preliminary Determination margin calculations for the mandatory
respondents in this investigation, there are no calculations to
disclose.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of R-32 from Taizhou
Qingsong and Zibo Feiyuan, the separate rates companies, and the China-
wide entity.
Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the
publication of this notice, Commerce will instruct CBP to require a
cash deposit equal to the weighted-average amount by which NV exceeds
U.S. price as follows: (1) The cash deposit rate for the exporter/
producer combination listed in the table above or in Appendix III will
be the rate identified for that combination in that table or Appendix
III; (2) for all combinations of exporters/producers of merchandise
under consideration that have not received their own separate rate, the
cash deposit rate will be the cash deposit rate established for the
China-wide entity; and (3) for all non-Chinese exporters of the
merchandise under consideration which have not received their own
separate rate, the cash deposit rate will be the cash deposit rate
applicable to the Chinese exporter/producer combination that supplied
that non-Chinese exporter. These suspension of liquidation instructions
will remain in effect until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of our determination. Because the
final determination in this proceeding is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will 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-32 from China no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, the proceeding will be terminated and
all cash deposits will be refunded. If the ITC determines that such
injury does exist, Commerce will issue an antidumping duty order
directing CBP to assess, upon further instruction by Commerce,
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, as discussed above in the
``Continuation of Suspension of Liquidation'' section.
[[Page 5138]]
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an administrative protective order (APO) of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/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 violation which is
subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: January 11, 2021.
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 Issues and Decision Memorandum
I. Summary
II. Background
III. China-Wide Rate
IV. Calculation Changes Since the Preliminary Determination
V. Discussion of the Issues
Comment 1: Whether to Apply Partial AFA to Taizhou Qingsong and
Zibo Feiyuan for Reporting Issues
Comment 2: Selection of the Primary Surrogate Country
Comment 3: Calculation of the Surrogate Value for Russian Truck
Freight
VI. Recommendation
Appendix III
Separate Rate Companies
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Exporter Producer
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Producers supplying the non-
Non-individually examined exporters individually--examined exporters
receiving separate rates receiving separate rates
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Icool International (Hong Kong) Changshu 3F Zhonghao New Chemical
Limited. Materials Co., Ltd.
Icool International (Hong Kong) Zhejiang Zhiyang Chemical Co., Ltd.
Limited.
Icool International (Hong Kong) Taizhou Huasheng New Refrigeration
Limited. Material Co., Ltd.
Icool International (Hong Kong) Zhejiang Lishui Fuhua Chemical Co.,
Limited. Ltd.
Icool International (Hong Kong) Zibo Feiyuan Chemical Co., Ltd.
Limited.
Icool International (Hong Kong) Jiangsu Meilan Chemical Co., Ltd.
Limited.
Icool International (Hong Kong) Taizhou Qingsong Refrigerant New
Limited. Material Co., Ltd.
Icool International (Hong Kong) Zhejiang Sanmei Chemical Industry
Limited. Co., Ltd.
Icool International (Hong Kong) Shandong Huaan New Material Co.,
Limited. Ltd.
Icool International (Hong Kong) Liaocheng Fuer New Materials
Limited. Technology Co., Ltd.
Icool International (Hong Kong) Ruyuan Dongyangguang Fluorine Co.,
Limited. Ltd.
Icool International (Hong Kong) Shandong Xinlong Science Technology
Limited. Co., Ltd.
Icool International (Hong Kong) Linhai Limin Chemicals Co., Ltd.
Limited.
Icool International (Hong Kong) Dongyang Weihua Refrigerants Co.,
Limited. Ltd.
Icool International (Hong Kong) Zhejiang Fulai Refrigerant Co.,
Limited. Ltd.
Icool International (Hong Kong) Zhejiang Guomao Industrial Co.,
Limited. Ltd.
Icool International (Hong Kong) Zhejiang Yonghe Refrigerant Co.,
Limited. Ltd.
Icool International (Hong Kong) Shanghai Aohong Chemical Co., Ltd.
Limited.
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.
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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., Shandong Huaan New Material Co.,
Ltd. 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., Jiangsu Sanmei Chemical Ind. Co.,
Ltd. Ltd.
Zhejiang Sanmei Chemical Ind. Co., Fujian Qingliu Dongying Chemical
Ltd. Co., Ltd.
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[FR Doc. 2021-01014 Filed 1-15-21; 8:45 am]
BILLING CODE 3510-DS-P