[Federal Register Volume 88, Number 236 (Monday, December 11, 2023)]
[Notices]
[Pages 85876-85878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27129]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Antidumping Duty Order on Hydrofluorocarbon Blends From the 
People's Republic of China: Preliminary Affirmative Determination of 
Circumvention With Respect to R-410A and R-407C From Malaysia

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that imports of R-410A and R-407C, completed in Malaysia 
using the People's Republic of China (China)-origin components, and 
exported from Malaysia, as specified below, are circumventing the 
antidumping duty (AD) order on hydrofluorocarbon blends (HFC blends) 
from China.

DATES: Applicable December 11, 2023.

FOR FURTHER INFORMATION CONTACT: Jerry Xiao, 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) 482-2273.

SUPPLEMENTARY INFORMATION:

Background

    On August 19, 2016, Commerce published in the Federal Register the 
AD order on HFC blends from China.\1\ On July 7, 2023, Commerce 
initiated a country-wide circumvention inquiry to determine whether 
imports of R-410A and R-407C, completed in Malaysia using HFC 
components, R-32 (difluoromethane), R-125 (pentafluoroethane), and R-
134a (1,1,1,2 tetrafluoroethane) (collectively, China-origin 
components) manufactured in China, are circumventing the Order and, 
accordingly, should be covered by the scope of the Order.\2\ The sole 
respondent in this circumvention inquiry is Juara Teguh Resources PLT 
(Juara) \3\ For a complete description of the events that followed the 
initiation of this circumvention inquiry, see the Preliminary Decision 
Memorandum.\4\
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    \1\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) 
(Order).
    \2\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Initiation of Circumvention Inquiries on the Antidumping Duty 
Order, 88 FR 43275 (July 7, 2023) (Initiation Notice).
    \3\ See Memorandum, ``Respondent Selection,'' dated August 14; 
see also Commerce's Letter, ``Custom Blends from Malaysia Initial 
Questionnaire,'' dated August 23, 2023 (Initial Questionnaire).
    \4\ See Memorandum, ``Hydrofluorocarbon Blends from the People's 
Republic of China: Preliminary Decision Memorandum for the 
Circumvention Inquiry of the Antidumping Duty Order with Respect to 
Imports of R-410A and R-407C from Malaysia,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Order

    The merchandise covered by the Order is certain HFC blends. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.\5\
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    \5\ Id. at 2-3.
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Merchandise Subject to the Circumvention Inquiries

    This circumvention inquiry covers R-410A and R-407C, completed in 
Malaysia using China-origin HFC components and subsequently exported 
from Malaysia to the United States.

Methodology

    Commerce is conducting this circumvention inquiry in accordance 
with section 781(b) of the Tariff Act of 1930, as amended (the Act), 
and 19 CFR 351.226. For a complete description of the methodology 
underlying this circumvention inquiry, see the Preliminary Decision 
Memorandum. A list of topics discussed in the Preliminary Decision 
Memorandum is included in the appendix 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 https://access.trade.gov/public/FRNoticesListLayout.aspx.

Preliminary Circumvention Determination

    As detailed in the Preliminary Decision Memorandum, and based on 
the ``Use of Adverse Facts Available (AFA)'' section, Commerce 
preliminarily determines that R-410A and R-407C completed in Malaysia 
using HFC components from China, that are subsequently exported from 
Malaysia to the United States, are circumventing the Order on a 
country-wide basis. As a result, in accordance with section 781(b) of 
the Act, we preliminarily determine that the inquiry merchandise should 
be included within the scope of the Order. See the ``Suspension of 
Liquidation and Cash Deposit Requirements'' section below for details 
regarding suspension of liquidation and cash deposit requirements. See 
the ``Certified Entries'' section below for details regarding 
Commerce's preliminary decision concerning certifications for inquiry 
merchandise exported from Malaysia.

Use of AFA

    Pursuant to section 776(a) of the Act, if the necessary information 
is not available on the record, or an interested party withholds 
requested information, fails to provide requested information by the 
deadline or in the form and manner requested, or significantly impedes 
a proceeding, Commerce shall use the facts otherwise available in 
reaching the applicable determination. Moreover, pursuant to section 
776(b) of the Act, Commerce may use inferences adverse to the interests 
of an interested party in selecting from among the facts otherwise 
available if the party fails to cooperate by not acting to the best of 
its ability to provide requested information.
    We requested information from Juara. In the Initial Questionnaire, 
Commerce explained that, if the company to which Commerce issued the 
questionnaire fails to respond to the questionnaire, or fails to 
provide the requested information, Commerce may find that the company 
failed to cooperate by not acting to the best of its ability to comply 
with the

[[Page 85877]]

request for information, and may use an inference that is adverse to 
the company's interests in selecting from the facts otherwise 
available.\6\ Juara received, but failed to respond to, Commerce's 
questionnaire.\7\
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    \6\ See Initial Questionnaire at 3.
    \7\ See Memorandum, ``Delivery Confirmation,'' dated September 
1, 2023.
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    Therefore, we preliminarily find that Juara failed to provide 
requested information by the deadline or in the form and manner 
requested, and significantly impeded this inquiry. Moreover, we find 
that Juara failed to cooperate to the best of its ability to provide 
the requested information because it did not provide a response to 
Commerce's initial questionnaire. Consequently, we used adverse 
inferences with respect to Juara in selecting from among the facts 
otherwise available on the record, pursuant to sections 776(a) and (b) 
of the Act. For details regarding the AFA used in this preliminary 
determination, see the Preliminary Decision Memorandum.
    As detailed in the Preliminary Decision Memorandum, based on AFA, 
we preliminarily determine that Juara exported inquiry merchandise and 
that U.S. entries of that merchandise are circumventing the Order.

Suspension of Liquidation and Cash Deposit Requirements

    Based on the preliminary affirmative country-wide determination of 
circumvention for Malaysia in accordance with 19 CFR 351.226(l)(2), we 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation and require a cash deposit of estimated duties on 
unliquidated entries of R-410A and R0407C, completed in Malaysia using 
China-origin components, that were entered, or withdrawn from 
warehouse, for consumption on or after July 7, 2023, the date of 
publication of the initiation of this circumvention inquiry in the 
Federal Register.\8\ CBP shall require cash deposits in accordance with 
the rate established for the China-wide entity, i.e., 216.37 
percent,\9\ for entries of such merchandise produced in Malaysia.
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    \8\ See Initiation Notice, 88 FR at 43275.
    \9\ See Order, 81 FR at 55438.
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    Commerce has established the following third-country case number 
for Malaysia in the Automated Commercial Environment (ACE) for such 
entries: A-557-300-000. For Juara, Commerce will direct CBP, for all 
entries of R-410A or R-407C from Malaysia produced or exported by 
Juara, to suspend liquidation and require a cash deposit at the rate 
established for the China-wide entity, i.e., 216.37 percent, under this 
third country case number.
    R-410A and R-407C produced in Malaysia that is not from China-
origin HFC blends is not subject to this inquiry. Therefore, cash 
deposits are not required for such merchandise under the Order. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Certified Entries

    At this time, Commerce has not included a certification 
requirement. We invite interested parties to comment on this matter.

Public Comment

    Interested parties may submit case briefs to Commerce no later than 
14 days after the date of publication of this notice.\10\ Rebuttal 
briefs, limited to issues raised in the case briefs, may be filed no 
later than five days after the date for filing case briefs.\11\ 
Interested parties who submit case briefs or rebuttal briefs in these 
proceedings must submit: (1) a statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.\12\
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    \10\ Commerce is exercising its discretion, under 19 CFR 
351.309(C)(1)(ii), to alter the time limit for filing case briefs.
    \11\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023).
    \12\ See 19 CFR 351.309(c)(2)(d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In these circumvention inquiries, we 
instead request that interested parties provide at the beginning of 
their briefs a public, executive summary for each issue raised in their 
briefs.\13\ Further, we request that interested parties limit their 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the executive summaries as the 
basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
circumvention inquiry. We request that interested parties include 
footnotes for relevant citations in the executive summary of each 
issue. Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\14\
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    \13\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \14\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings; Final 
Rule, 88 FR 67069 (September 29, 2023).
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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 in the Federal Register. 
Requests should contain: (1) the requesting party's name, address, and 
telephone number; (2) the number of individuals from the requesting 
party that will attend the hearing and whether any of those individuals 
is a foreign national; and (3) a list of the issues that the party 
intends to discuss at the hearing. 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 of the 
hearing.

U.S. International Trade Commission Notification

    Consistent with section 781(e) of the Act, Commerce will notify the 
U.S. International Trade Commission (ITC) of this preliminary 
determination to include the merchandise subject to this circumvention 
inquiry within the Order. Pursuant to section 781(e) of the Act, the 
ITC may request consultations concerning Commerce's proposed inclusion 
of the inquiry merchandise. If, after consultations, the ITC believes 
that a significant injury issue is presented by the proposed inclusion, 
it will have 60 days from the date of notification by Commerce to 
provide written advice.

Notification to Interested Parties

    Commerce is issuing and publishing this determination in accordance 
with section 781(b) of the Act and 19 CFR 351.226(g)(1).

    Dated: December 4, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of the Circumvention Inquiry
VI. Application of Facts Available and Use of

[[Page 85878]]

Adverse Inferences
VII. Statutory and Regulatory Framework for the Circumvention 
Inquiry
VIII. Analysis of Statutory Criteria for the Circumvention Inquiry
IX. Summary of Statutory Analysis
X. Country-Wide Affirmative Determination of Circumvention
XI. Recommendation

[FR Doc. 2023-27129 Filed 12-8-23; 8:45 am]
BILLING CODE 3510-DS-P