[Federal Register Volume 86, Number 156 (Tuesday, August 17, 2021)]
[Notices]
[Pages 45959-45963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17524]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-137]


Pentafluoroethane (R-125) From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Affirmative Determination of Critical Circumstances, in 
Part, Postponement of Final Determination, and Extension of Provisional 
Measures

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


[[Page 45960]]


SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that pentafluoroethane (R-125) 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, 2020, 
through December 31, 2020. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable August 17, 2021.

FOR FURTHER INFORMATION CONTACT: Alex Wood or Benjamin A. Luberda, 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) 482-1959 or (202) 
482-2185, 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 8, 
2021.\1\ On March 12, 2021, Commerce limited the number of respondents 
selected for individual examination to the two largest R-125 producers/
exporters, by volume, that submitted a Q&V questionnaire response, and 
we issued the AD questionnaire to them.\2\ These companies are Zhejiang 
Quzhou Juxin Fluorine Chemical Co., Ltd., (Juxin) and Zhejiang Sanmei 
Chemical Ind. Co., Ltd. (Sanmei). On May 10, 2021, Juxin informed 
Commerce that it would no longer participate as a mandatory respondent 
in this investigation.\3\ On June 3, 2021, Commerce postponed the 
preliminary determination of this investigation and the revised 
deadline is now August 10, 2021.\4\ For a complete description of the 
events that followed the initiation of this investigation, see the 
Preliminary Decision Memo randum.\5\ 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. 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 Less-Than-Fair-Value Investigation, 86 FR 8583 
(February 8, 2021) (Initiation Notice).
    \2\ See Memorandum, ``Respondent Selection,'' dated March 12, 
2021.
    \3\ See Juxin's Letter, ``Juxin Withdrawal as a Mandatory 
Respondent,'' dated May 10, 2021 (Juxin Withdrawal Letter).
    \4\ See Pentafluoroethane (R-125) from the People's Republic of 
China: Postponement of Preliminary Determination in the Less-Than-
Fair-Value Investigation, 86 FR 29752 (June 3, 2021).
    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value 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,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\7\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice, as well as additional language proposed by 
Honeywell International, Inc. (petitioner).\8\ For a summary of the 
product coverage comments and rebuttal responses submitted to the 
record for this investigation, and accompanying discussion and analysis 
of all comments timely received, see the Preliminary Scope Decision 
Memorandum.\9\ Commerce has preliminarily modified the scope language 
that appeared in the Initiation Notice. See the revised scope in 
Appendix I to this notice.
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See Initiation Notice at 8584.
    \8\ See Petitioner's Letters, ``Scope Comments,'' dated February 
22, 2021; and ``Honeywell International Inc.'s Scope Supplemental 
Questionnaire Response,'' dated July 20, 2021.
    \9\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export price 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. Furthermore, pursuant to section 776(a) and (b) of 
the Act, Commerce has preliminarily relied upon the facts otherwise 
available, with adverse inferences, in determining the estimated 
weighted-average dumping margin for the China-wide entity. For a full 
description of the methodology underlying Commerce's preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily determines that critical circumstances exist 
with respect to imports of R-125 from China for the non-selected 
companies receiving a separate rate and the China-wide entity, 
including Juxin, but do not exist for Sanmei. For a full description of 
the methodology and results of Commerce's critical circumstances 
analysis, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\10\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\11\ In this investigation, we calculated 
producer/exporter combination rates for respondents eligible for 
separate rates.
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    \10\ See Initiation Notice, 86 FR 8587.
    \11\ 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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Separate Rates

    In addition to Sanmei, we have preliminarily granted certain non-
individually examined respondents a separate rate. Also, because Juxin 
withdrew its participation as a mandatory respondent in this 
investigation, we have preliminarily denied a separate rate to Juxin 
and are treating it as part of the China-wide entity.\12\ See the 
Preliminary Decision Memorandum for details.
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    \12\ See Juxin Withdrawal Letter.
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    In calculating the rate for non-individually examined separate rate 
respondents in a non-market economy antidumping duty (AD) 
investigation, Commerce normally looks to section 735(c)(5)(A) of the 
Act, which pertains to the calculation of the all-others rate in a 
market economy AD investigation, for guidance. Pursuant to section 
735(c)(5)(A) of the Act, normally this rate shall be an amount equal to 
the weighted average of the estimated AD rates established for those 
companies

[[Page 45961]]

individually examined, excluding zero and de minimis rates and any 
rates based entirely under section 776 of the Act. Commerce calculated 
an individual estimated weighted-average dumping margin for Sanmei, the 
only individually examined exporter/producer in this investigation. 
Because the only individually calculated weighted average dumping 
margin is not zero, de minimis, or based entirely on facts otherwise 
available, the weighted-average dumping margin calculated for Sanmei is 
the basis to determine the weighted-average dumping margin for the 
separate rate, non-examined companies, using section 735(c)(5)(A) of 
the Act for guidance, which provides for the determination of the 
estimated weighted-average dumping margin for all other producers and 
exporters in a market economy investigation. See the table in the 
``Preliminary Determination'' section of this notice.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:
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    \13\ The China-Wide Entity also includes Zhejiang Quzhou Juxin 
Fluorine Chemical Co., Ltd.

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                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Producer                                 Exporter                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
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Zhejiang Sanmei Chemical Ind. Co., Ltd........  Zhejiang Sanmei Chemical Ind.             280.37          280.37
                                                 Co., Ltd.
Fujian Qingliu Dongying Chemical Ind. Co., Ltd  Zhejiang Sanmei Chemical Ind.             280.37          280.37
                                                 Co., Ltd.
Producers Supplying the Non-Individually-       Non-Individually-Examined                 280.37          280.37
 Examined Exporters Receiving Separate Rates     Exporters Receiving Separate
 (see Appendix III).                             Rates (see Appendix III).
China-Wide Entity \13\........................  ................................          280.48          280.48
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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 and in 
Appendix III, 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 subject 
merchandise 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 subject merchandise 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.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
The date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise from the non-selected companies receiving a separate rate 
and the China-wide entity. In accordance with section 733(e)(2)(A) of 
the Act, the suspension of liquidation shall apply to all unliquidated 
entries of merchandise from the non-selected companies receiving a 
separate rate and the China-wide entity that were entered, or withdrawn 
from warehouse, for consumption on or after the date that is 90 days 
before the publication of this notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the Preliminary Determination section's chart of 
estimated weighted-average dumping margins above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire. 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

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

[[Page 45962]]

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 for case briefs.\14\
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    \14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.309(c), interested parties may comment on 
Commerce's preliminary scope decision no later than 21 days after the 
publication date of the preliminary determination. Scope rebuttal 
briefs, limited to issues raised in the scope case briefs, may be 
submitted no later than seven days after the deadline for the scope 
case briefs. These deadlines apply for both the AD and CVD 
investigations. For all scope issues, parties must file separate and 
identical documents on the records of both the AD and CVD 
investigations. No new factual information or proprietary information 
should be included in the scope case briefs and scope rebuttal briefs.
    Commerce has modified certain of its requirements for serving 
documents containing business proprietary information until further 
notice.\15\ 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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    \15\ 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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    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 date and time to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    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 postponement of a final antidumping 
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 5, 2021, pursuant to 19 CFR 351.210(e), Sanmei requested 
that Commerce postpone the final determination and that provisional 
measures be extended to a period not to exceed six months.\16\ 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 exporter accounts 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, the 
deadline for Commerce's final determination will be no later than 135 
days after the date of publication of this preliminary determination.
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    \16\ See Sanmei's Letter, ``Request to Postpone the Final 
Determination,'' dated August 5, 2021.
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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 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 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 10, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is 
pentafluoroethane (R-125), or its chemical equivalent, regardless of 
form, type or purity level. R-125 has the Chemical Abstracts Service 
(CAS) registry number of 354-33-6 and the chemical formula 
C2HF5. R-125 is also referred to as 
Pentafluoroethane, Genetron HFC 125, Khladon 125, Suva 125, Freon 
125, and Fc-125.
    R-125 that has been blended with other products is included 
within the scope if such blends contain 85% or more by volume R-125, 
on an actual percentage basis. However, R-125 incorporated into a 
blend that conforms to ANSI/ASHRAE Standard 34 is excluded from the 
scope of this investigation. When R-125 is blended with other 
products and otherwise falls under the scope of this investigation, 
only the R-125 component of the mixture is covered by the scope of 
this investigation.
    Subject merchandise also includes purified 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 scope is merchandise covered by the scope of 
the antidumping order on Hydrofluorocarbon Blends from the People's 
Republic of China, including merchandise subject to the affirmative 
anti-circumvention determination in Hydrofluorocarbon Blends from 
the People's Republic of China: Affirmative Final Determination of 
Circumvention of the Antidumping Duty Order; Unfinished R-32/R-125 
Blends, 85 FR 15428 (March 18, 2020). See Hydrofluorocarbon Blends 
from the People's Republic of China: Antidumping Duty Order, 81 FR 
55436 (August 19, 2016) (the Blends Order).
    R-125 is classified under Harmonized Tariff Schedule of the 
United States (HTSUS) subheading 2903.39.2035 and 2903.39.2938. 
Merchandise subject to the scope may also be entered under HTSUS 
subheadings 2903.39.2045, 3824.78.0020, and 3824.78.0050. 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.

[[Page 45963]]

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Adjustment Under Section 777(A)(f) of the Act
IX. Adjustments to Cash Deposit Rates for Export Subsidies
X. ITC Notification
XI. Recommendation

Appendix III
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    \17\ Commerce preliminarily determines that T.T. International 
Co., Ltd. and T.T. International Co., Limited are a single entity. 
See Memorandum, ``Less-Than-Fair-Value Investigation of 
Pentafluoroethane (R-125) from the People's Republic of China: 
Affiliation and Single Entity Status--T.T. International Co., 
Ltd.,'' dated concurrently with this notice.

                     List of Separate Rate Companies
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                 Exporter                             Producer
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                                            Producers supplying the non-
   Non-individually- examined exporters         individually-examined
         receiving separate rates           exporters receiving separate
                                                        rates
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Huantai Dongyue International Trade Co.     Jinhua Binglong Chemical
 Ltd.                                        Technology Co., Ltd.
Shandong Dongyue Chemical Co., Ltd........  Shandong Dongyue Chemical
                                             Co., Ltd.
Shandong Huaan New Material Co., Ltd......  Shandong Huaan New Material
                                             Co., Ltd.
T.T. International Co., Ltd./T.T.           Sinochem Environmental
 International Co., Limited \17\.            Protection Chemicals
                                             (Taicang) Co., Ltd.
T.T. International Co., Ltd./T.T.           Zhejiang Quhua Fluor-
 International Co., Limited.                 Chemistry Co., Ltd.
T.T. International Co., Ltd./T.T.           Zhejiang Sanmei Chemical
 International Co., Limited.                 Industry. Co., Ltd.
Zhejiang Yonghe Refrigerant Co., Ltd......  Jinhua Yonghe Fluorochemical
                                             Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd............  Zibo Feiyuan Chemical Co.,
                                             Ltd.
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[FR Doc. 2021-17524 Filed 8-16-21; 8:45 am]
BILLING CODE 3510-DS-P