[Federal Register Volume 89, Number 133 (Thursday, July 11, 2024)]
[Notices]
[Pages 56848-56851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15264]


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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: Final Affirmative Determination of 
Circumvention With Respect to R-410B, R-407G, and a Certain Custom 
Blend From the People's Republic of China

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
imports of R-410B, R-407G, and a custom hydrofluorocarbon (HFC) blend 
of 50-percent R-125 and 50-percent R-134a (custom HFC blend) which are 
blended in the People's Republic of China (China) and further processed 
in the United States, are circumventing the antidumping duty (AD) order 
on HFC blends from China.

DATES: Applicable July 11, 2024.

FOR FURTHER INFORMATION CONTACT: Benjamin Nathan, 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) 482-3834.

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 pursuant to section 
781(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.226(d)(1)(ii) to determine whether imports of R-410B, R-407G, and 
the custom HFC blend which are blended in China and further processed 
in the United States, are circumventing the Order and, accordingly, 
should be covered by the scope of the Order.\2\ On April 11, 2024, 
Commerce published in the Federal Register its affirmative Preliminary 
Determination that imports of R-410B, R-407G, and the custom HFC blend 
which are blended in China using China-origin components and further 
processed in the United States are circumventing the Order.\3\
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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 Antidumping Duty Order on Hydrofluorocarbon Blends from 
the People's Republic of China: Preliminary Affirmative 
Determination of Circumvention with Respect to R-410B, R-407G, and a 
Certain Custom Blend from the People's Republic of China, 89 FR 
25568 (April 11, 2024) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
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    For a summary of events that occurred since the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for consideration in this final determination, see the Issues 
and Decision Memorandum.\4\ 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 
https://access.trade.gov. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Circumvention 
Inquiry of the Antidumping Duty Order on Hydrofluorocarbon Blends 
from the People's Republic of China with Respect to Imports of R-
410B and R-407G, and a Certain Custom Blend 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 Order

    The merchandise covered by the Order is certain HFC blends. For a 
complete description of the scope of the Order, see the Issues and 
Decision Memorandum.

Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers imports of HFC blends R-410B, R-
407G, and a certain custom HFC blend which are blended in China using 
China-origin HFC components and further processed in the United States 
(inquiry merchandise).

Methodology

    Commerce is conducting this circumvention inquiry in accordance 
with section 781(a) of the Act, and 19 CFR 351.226. See Preliminary 
Determination for a full description of

[[Page 56849]]

the methodology.\5\ We have continued to apply this methodology, 
without exception, and incorporate by reference this description of the 
methodology, for our final determination.
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    \5\ See Preliminary Determination PDM at 4-15.
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Analysis of Comments Received

    All issues raised in this inquiry are addressed in the Issues and 
Decision Memorandum. A list of the issues raised is attached to this 
notice in Appendix I. Based on our analysis of the comments received 
from interested parties, we have not made any changes to the 
Preliminary Determination.

Final Circumvention Determination

    We determine that imports of R-410B, R-407G, and the custom HFC 
blend which are blended in China using China-origin HFC components and 
further processed in the United States, would be circumventing the 
Order whether such imports were by one company, or all companies. 
Accordingly, we are applying our decision on a country-wide basis. As a 
result, in accordance with section 781(a) of the Act, we determine that 
inquiry merchandise should be included within the scope of the Order. 
For a detailed explanation of our determination with respect to the 
respondents, see Preliminary Determination, and the Issues and Decision 
Memorandum. See the ``Suspension of Liquidation and Cash Deposit 
Requirements'' section, below, for details regarding suspension of 
liquidation and cash deposit requirements. See the ``Certifications'' 
and ``Certification Requirements'' sections below for details regarding 
the use of certifications for inquiry merchandise imported from China.

Suspension of Liquidation and Cash Deposit Requirements

    Based on the final affirmative country-wide determination of 
circumvention for China, in accordance with section 19 CFR 
351.226(I)(3)(i)-(ii), Commerce will direct U.S. Customs and Border 
Protection (CBP) to continue the suspension of liquidation of 
previously suspended entries and to suspend liquidation and require a 
cash deposit of estimated duties on unliquidated entries of R-410B, R-
407G, and a certain custom HFC blend 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.\6\
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    \6\ See Initiation Notice.
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    The blends subject to this inquiry not further processed in the 
United States are not subject to this inquiry. Therefore, cash deposits 
are not required for such merchandise under the Order. If an importer 
imports R-410B, R-407G, and a certain custom HFC blend subject to this 
inquiry from China and claims that they will not be further processed 
into subject merchandise in the United States, in order to not be 
subject to the Order cash deposit requirements, the importer is 
required to meet the certification and documentation requirements 
described in the ``Certifications'' and ``Certification Requirements'' 
sections below.\7\
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    \7\ The certification language at Appendix II, section E for 
this final determination reflects a minor modification from the 
certification included in the Preliminary Determination.
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    Where no certification is provided for an entry, and the Order 
potentially applies to that entry, Commerce intends to instruct CBP to 
suspend the entry and collect cash deposits: (1) for entries of R-410B, 
R-407G, and a certain custom HFC blend for which the exporter has a 
company-specific cash deposit rate under the AD Order, the cash deposit 
rate will be the company-specific AD cash deposit rate established for 
that company in the most recently completed segment of the proceeding; 
(2) for all Chinese exporters of R-410B, R-407G, and a certain custom 
HFC blend that do not have a company-specific cash deposit rate under 
the AD Order, the AD cash deposit rate will be the cash deposit rate 
for the China-wide entity (i.e., 216.37 percent); \8\ and (3) for all 
non-Chinese exporters of R-410B, R-407G, and a certain custom HFC blend 
which have not received their own rate, the cash deposit rate will be 
the rate applicable to the Chinese exporter that supplied that non-
Chinese exporter. These suspension of liquidation instructions and cash 
deposit requirements will remain in effect until further notice.
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    \8\ See Order.
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Certified Entries

    Entries for which the importer has met the certification 
requirements described below and in Appendix II to this notice will not 
be subject to either the suspension of liquidation or the cash deposit 
requirements described above. Failure to comply with the applicable 
requisite certification requirements may result in the merchandise 
being subject to duties.

Certifications

    To administer the country-wide affirmative determination of 
circumvention, Commerce established importer certifications, which 
allow companies to certify that specific entries of R-410B, R-407G, and 
a certain custom HFC blend are not subject to suspension of liquidation 
or the collection of cash deposits pursuant to this country-wide 
affirmative determination of circumvention because the merchandise is 
not further processed into subject HFC blends in the United States (see 
Appendix II to this notice).
    Importers that claim that their entries of merchandise subject to 
this inquiry from China are not subject to suspension of liquidation or 
the collection of cash deposits because the merchandise is not further 
processed into subject merchandise in the United States must complete 
the applicable certification and meet the certification and 
documentation requirements described below, as well as the requirements 
identified in the importer certification.

Certification Requirements

    Importers are required to complete and maintain the applicable 
importer certification and retain all supporting documentation. The 
importer certification must be completed, signed, and dated by the time 
the entry summary is filed for the relevant entry. The importer, or the 
importer's agent, must submit the importer's certification to CBP as 
part of the entry process by uploading it into the document imaging 
system (DIS) in ACE. Where the importer uses a broker to facilitate the 
entry process, the importer should obtain the entry summary number from 
the broker. Agents of the importer, such as brokers, however, are not 
permitted to certify on behalf of the importer.
    Additionally, the claims made in the certification and any 
supporting documentation are subject to verification by Commerce and/or 
CBP. Importers are required to maintain the certifications and 
supporting documentation until the later of: (1) the date that is five 
years after the latest entry date of the entries covered by the 
certification; or (2) the date that is three years after the conclusion 
of any litigation in United States courts regarding such entries.
    For all R-410B, R-407G, and a certain custom HFC blend from China 
that was entered, or withdrawn from warehouse, for consumption during 
the period July 7, 2023 (the date of initiation of this circumvention 
inquiry), through the date of publication of the preliminary 
determination in the Federal Register, where the entry has not been 
liquidated (and entries for which liquidation has not become final), 
the relevant

[[Page 56850]]

certification should already be complete and signed.
    For unliquidated entries (and entries for which liquidation has not 
become final) of R-410B, R-407G, and a certain custom HFC blend from 
China that were declared as non-AD type entries (e.g., type 01) and 
entered, or withdrawn from warehouse, for consumption in the United 
States during the period July 7, 2023 (the date of initiation of this 
circumvention inquiry), through the date of publication of the 
preliminary determination in the Federal Register, for which no 
importer certification may be made, importers must file a Post Summary 
Correction with CBP, in accordance with CBP's regulations, regarding 
conversion of such entries from non-AD type entries to AD type entries 
(e.g., type 01 to type 03). The importer should pay cash deposits on 
those entries consistent with the regulations governing post summary 
corrections that require payment of additional duties, including AD/CVD 
duties.
    If it is determined that an importer has not met the certification 
and/or related documentation requirements for certain entries, Commerce 
intends to instruct CBP to suspend, pursuant to this final affirmative 
country-wide determination of circumvention and the Order,\9\ all 
unliquidated entries for which these requirements were not met and to 
require the importer to post applicable cash deposits equal to the rate 
noted above.
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    \9\ See Order.
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Opportunity To Request an Administrative Review

    Each year during the anniversary month of the publication of an AD 
or CVD order, finding, or suspended investigation, an interested party, 
as defined in section 771(9) of the Act, may request, in accordance 
with 19 CFR 351.213, that Commerce conduct an administrative review of 
that AD or CVD order, finding, or suspended investigation. An 
interested party who would like Commerce to conduct an administrative 
review should wait until Commerce announces via the Federal Register 
the next opportunity during the anniversary month of the publication of 
the Order to submit such requests. The anniversary month for this Order 
is August.

Administrative Protective Order

    This notice will serve as the only reminder to all 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 or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and the terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(b) of the Act and 19 CFR 351.226(g)(2).

    Dated: July 5, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Changes from the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Retroactive Suspension of Liquidation and Cash 
Deposit Requirement
    Comment 2: Certification Requirement
    Comment 3: Argument Concerning Circumvention by Additional 
Companies
    Comment 4: Whether the Preliminary Determination is Contrary to 
Law
    Comment 5: Whether the Determination with Respect to R-410B is 
Supported by Substantial Evidence
VIII. Recommendation

Appendix II

Importer Certification

    I hereby certify that:
    A. My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I am 
an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS of IMPORTING COMPANY{time} ;
    B. I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of the 
hydrofluorocarbon (HFC) blend R-410B, R-407G, and a certain custom 
HFC blend produced in China that entered under the entry number(s) 
identified below, and which are covered by this certification. 
``Direct personal knowledge'' refers to facts the certifying party 
is expected to have in its own records. For example, the importer 
should have direct personal knowledge of the importation of the 
product, including the exporter's and/or foreign seller's identity 
and location;
    C. If the importer is acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    The R-410B, R-407G, and a certain custom HFC blend covered by 
this certification were imported by {NAME OF IMPORTING 
COMPANY{time}  on behalf of {NAME OF U.S. CUSTOMER{time} , located 
at {ADDRESS OF U.S. CUSTOMER{time} .
    If the importer is not acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    {NAME OF IMPORTING COMPANY{time}  is not acting on behalf of the 
first U.S. customer.
    D. The R-410B, R-407G, and a certain custom HFC blend covered by 
this certification was shipped to {NAME OF PARTY IN THE UNITED 
STATES TO WHOM THE MERCHANDISE WAS FIRST SHIPPED{time}  located at 
{U.S. ADDRESS TO WHICH MERCHANDISE WAS SHIPPED{time} .
    E. Select the appropriate statement below:
    __ I have direct personal knowledge of the facts regarding the 
end use of the imported products covered by this certification 
because my company is the end user of the imported product covered 
by this certification and I certify that the R-410B, R-407G, and a 
certain custom HFC blend will not be used to produce subject 
merchandise. ``Direct Personal knowledge'' includes information 
contained within my company's books and records.
    __ My company is not the end user of the imported product 
covering this certification, however, I have personal knowledge of 
the facts regarding the end use of the imported products covered by 
this certification. I have been able to contact the end user of the 
imported product and confirm that it will not use this product to 
produce subject merchandise. The end user of the imported product is 
{COMPANY NAME{time}  located at {ADDRESS{time} . ``Personal 
knowledge'' includes facts obtained from another party (e.g., 
correspondence received by the importer from the end user of the 
product).
    F. This certification applies to the following entries (repeat 
this block as many times as necessary):

Entry Summary #:
Entry Summary Line Item #:
Foreign Seller:
Foreign Seller's Address:
Foreign Seller's Invoice #:
Foreign Seller's Invoice Line Item #:
Producer:
Producer's Address:

    G. I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, product data sheets, chemical 
testing specifications, productions records, invoices, etc.) for the 
later of: (1) the date that is five years after the date of the 
latest entry covered by the certification or; (2) the date that is 
three years after the conclusion of any litigation in the United 
States courts regarding such entries;
    H. I understand that {IMPORTING COMPANY{time}  is required to 
submit a copy of the importer certification as part of the entry 
summary by uploading them into the document imaging system (DIS) in 
ACE, and

[[Page 56851]]

to provide U.S. Customs and Border Protection (CBP) and/or the U.S. 
Department of Commerce (Commerce) with the importer certification, 
and any supporting documentation, upon request of either agency;
    I. I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce;
    J. I understand that failure to maintain the required 
certification and supporting documentation, or failure to 
substantiate the claims made herein, or not allowing CBP and/or 
Commerce to verify the claims made herein, may result in a de facto 
determination that all entries to which this certification applies 
are within the scope of the antidumping duty (AD) order on HFC 
blends from China. I understand that such finding will result in:
    (i) suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met;
    (ii) the importer being required to post the cash deposits 
determined by Commerce; and
    (iii) the importer no longer being allowed to participate in the 
certification process.
    K. I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    L. This certification was completed and signed on, or prior to, 
the date of the entry summary if the entry date is more than 14 days 
after the date of publication of the notice of Commerce's 
preliminary determination of circumvention in the Federal Register. 
If the entry date is on or before the 14th day after the date of 
publication of the notice of Commerce's preliminary determination of 
circumvention in the Federal Register, this certification was 
completed and signed by no later than 45 days after publication of 
the notice of Commerce's preliminary determination of circumvention 
in the Federal Register.
    M. I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make materially false statements to the U.S. 
government.

Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE OF COMPANY OFFICIAL{time} 
{DATE{time} 

[FR Doc. 2024-15264 Filed 7-10-24; 8:45 am]
BILLING CODE 3510-DS-P