[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33648-33650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13582]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-138]
Pentafluoroethane (R-125) From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of pentafluoroethane (R-125) from the People's Republic of
China (China). The period of investigation is January 1, 2020, through
December 31, 2020. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable June 25, 2021.
FOR FURTHER INFORMATION CONTACT: Joshua Tucker or Adam Simons, 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) 482-6172,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February 8,
2021.\1\ On March 16, 2021, Commerce postponed the preliminary
determination of this investigation to June 11, 2021.\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 discussed 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
http://access.trade.gov. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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\1\ See Pentafluoroethane (R-125) from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 86 FR 8589
(February 8, 2021) (Initiation Notice).
\2\ See Pentafluoroethane (R-125) from the People's Republic of
China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 86 FR 14406 (March 16, 2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of
Pentafluoroethane (R-125) 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 R-125 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, the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice.\5\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Commerce intends to issue its preliminary decision regarding
comments concerning the scope of the antidumping (AD) and
countervailing duty (CVD) investigations in the preliminary
determination of the companion AD investigation.
Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\6\
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of R-125 from
China based on a request made by the petitioner.\8\ Consequently, the
final CVD determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
October 25, 2021, unless postponed.
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\8\ See Petitioner's Letter, ``Request to Align Final
Countervailing Duty Determination with Final Antidumping Duty
Determination,'' dated May 21, 2021.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
[[Page 33649]]
countervailable subsidy rates for Zhejiang Quzhou Juxin Fluorine
Chemical Co., Ltd. (Juxin) and Zhejiang Sanmei Chemical Ind. Co., Ltd.
(Sanmei) that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using a
weighted average of the individual estimated subsidy rates calculated
for the examined respondents using each company's publicly ranged
values for the value of their exports of subject merchandise to the
United States.\9\
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\9\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents using each company's
proprietary U.S. sale quantities for the merchandise under
consideration; (B) a simple average of the estimated subsidy rates
calculated for the examined respondents; and (C) a weighted-average
of the estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged U.S. sale values
for the merchandise under consideration. Commerce then compares (B)
and (C) to (A) and selects the rate closest to (A) as the most
appropriate rate for all other producers and exporters. See, e.g.,
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan,
and the United Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010).
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Juxin: Juhua Group Corporation; Zhejiang Juhua Co., Ltd.; Ningbo
Juhua Chemical & Science Co., Ltd.; Zhejiang Quzhou Fluoxin
Chemicals Co., Ltd.; and Zhejiang Juhua Chemical Mining Co., Ltd.
\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross-owned with
Sanmei: Fujian Qingliu Dongying Chemical Ind. Co. Ltd.
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Subsidy rate
Company (percent)
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Arkema Daikin Advanced Fluorochemicals (Changsu) Co., 291.26
Ltd....................................................
Daikin Fluorochemicals (China) Co., Ltd................. 291.26
Hongkong Richmax Ltd.................................... 291.26
Weitron International Refrigeration Equipment (Kunshan) 291.26
Co., Ltd...............................................
Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd. \10\.. 3.23
Zhejiang Sanmei Chemical Ind. Co., Ltd. \11\............ 2.31
All-Others.............................................. 3.12
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Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries 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. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date 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 the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance.
Interested parties will be notified of the timeline for the submission
of case briefs and written comments at a later date. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\12\ The deadlines
for submitting case and rebuttal briefs on scope issues will be
established as part of the preliminary determination in the companion
AD investigation. 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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\12\ 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, and a list of the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, parties will be notified of
the time and date for the hearing.\13\
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\13\ See 19 CFR 351.310(d).
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. 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 these imports are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: June 11, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is
pentafluoroethane (R-125), or its chemical equivalent, regardless of
form,
[[Page 33650]]
type or purity level. R-125 has the Chemical Abstracts Service (CAS)
registry number of 354-33-6 and the chemical formula C2
HF5. R-125 is also referred to as Pentafluoroethane,
Genetron HFC 125, Khladon 125, Suva 125, Freon 125, and Fc-125.
Subject merchandise includes R-125, whether or not incorporated into
a blend. When R-125 is blended with other products, only the R-125
component of the mixture is covered by the scope of this
investigation. Subject merchandise also includes R-125 and
unpurified R-125 that is processed in a third country or otherwise
outside the customs territory of the United States, including, but
not limited to, purifying, blending, 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-125. The scope also includes R-125 that is commingled with
R-125 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).
R-125 is classified under Harmonized Tariff Schedule of the
United States (HTSUS) subheading 2903.39.2035. Merchandise subject
to the scope may also be entered under HTSUS subheadings
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. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion
[FR Doc. 2021-13582 Filed 6-24-21; 8:45 am]
BILLING CODE 3510-DS-P