[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Pages 62594-62595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24912]



[[Page 62594]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-999]


Countervailing Duty Investigation of 1,1,1,2 Tetrafluoroethane 
From the People's Republic of China: Final Affirmative Countervailing 
Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') published the 
Preliminary Determination of the countervailing duty (``CVD'') 
investigation of 1,1,1,2 tetrafluoroethane (``tetrafluoroethane'') from 
the People's Republic of China (``PRC'') on April 18, 2014.\1\ The 
Department determines that countervailable subsidies are being provided 
to producers and exporters of tetrafluoroethane from the PRC. For 
information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice. The period of investigation is 
January 1, 2012-December 31, 2012.
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    \1\ See Countervailing Duty Investigation of 1,1,1,2 
Tetrafluoroethane from the People's Republic of China: Preliminary 
Determination and Alignment of Final Determination with Final 
Antidumping Determination, 79 FR 21895 (April 18, 2014) 
(``Preliminary Determination'').

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DATES: Effective Date: October 20, 2014.

FOR FURTHER INFORMATION CONTACT: Katie Marksberry or Josh Startup, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; Phone: 202-482-7906, or 
202-482-5260, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on April 18, 
2014, additionally, the Department published the Amended Preliminary 
Determination on May 30, 2014.\2\ On July 25, 2014, the Department 
released a post-preliminary determination.\3\ Between July 29 and 
August 12, 2014, we conducted a verification of the questionnaire 
responses of the Zhejiang Quhua Fluor-Chemistry Co., Ltd., and its 
cross-owned affiliates' (collectively ``Juhua Group''), Sinochem 
Environmental Protection Chemicals (Taicang) Co., Ltd., and its cross-
owned affiliates' (collectively ``Sinochem''), Jiangsu Bluestar Green 
Technology Co., Ltd (``Bluestar''), and T.T. International Co., Ltd. 
(``T.T. International''). Between September 2, 2014 and September 8, 
2014, interested parties submitted case and rebuttal briefs. A full 
discussion of the issues raised by parties for this final determination 
may be found in the I&D Memo.\4\ The I&D Memo is a public document and 
is on file electronically via Enforcement and Compliance's Antidumping 
and Countervailing Duty Centralized Electronic Service System (``IA 
ACCESS''). IA ACCESS is available to registered users at http://iaaccess.trade.gov, and is available to all parties in the Central 
Records Unit, room 7046 of the main Department of Commerce building. In 
addition, a complete version of the I&D Memo can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed I&D Memo and the 
electronic version are identical in content.
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    \2\ See id.; see also Countervailing Duty Investigation of 
1,1,1,2 Tetrafluoroethane from the People's Republic of China: 
Amended Preliminary Determination, 79 FR 31088 (May 30, 2014) 
(``Amended Preliminary Determination'').
    \3\ See Memorandum, from James C. Doyle, Director, Office V, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
Re: Post-Preliminary Analysis of Countervailing Duty Investigation: 
1,1,1,2 Tetrafluoroethane from the PRC, dated July 25, 2014 (``Post-
Prelim Determination'').
    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Countervailing Duty Investigation of 1,1,1,2 Tetrafluoroethane 
from the People's Republic of China: Issues and Decision Memorandum 
for the Final Determination,'' dated concurrently with this notice 
(``I&D Memo'').
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Scope of the Investigation

    The product subject to this investigation is 1,1,1,2-
Tetrafluoroethane, R-134a, or its chemical equivalent, regardless of 
form, type, or purity level. The chemical formula for 1,1,1,2-
tetrafluoroethane is CF3-CH2F, and the Chemical 
Abstracts Service (``CAS'') registry number is CAS 811-97-2.
    1,1,1,2-Tetrafluoroethane is sold under a number of trade names 
including Klea 134a and Zephex 134a (Mexichem Fluor); Genetron 134a 
(Honeywell); Suva 134a, Dymel 134a, and Dymel P134a (DuPont); Solkane 
134a (Solvay); and Forane 134a (Arkema). Generically, 1,1,1,2-
tetrafluoroethane has been sold as Fluorocarbon 134a, R-134a, HFC-134a, 
HF A-134a, Refrigerant 134a, and UN3159.
    Merchandise covered by the scope of this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') at subheading 2903.39.2020. Although the HTSUS subheading 
and CAS registry number are provided for convenience and customs 
purposes, the written description of the scope is dispositive.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the I&D Memo. A list of the issues that parties raised, 
and to which we responded in the I&D Memo, is attached to this notice 
as an Appendix.

Use of Adverse Facts Available

    The Department notes that, in making these findings, we relied, in 
part, on facts available and, because one or more respondents did not 
act to the best of their ability to respond to the Department's 
requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\5\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the I&D Memo.
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    \5\ See sections 776(a) and (b) of the Act.
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Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each company respondent. Section 705(c)(5)(A)(i) 
of the Act states that, for companies not individually investigated, we 
will determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all-others'' rate, which is 
normally calculated by weighting the subsidy rates of the individual 
companies selected as respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(A)(i) 
of the Act, the all-others rate should exclude zero and de minimis 
rates calculated for the exporters and producers individually 
investigated. Where the rates for the investigated companies are all 
zero or de minimis, section 705(c)(5)(A)(ii) of the Act instructs the 
Department to establish an all-others rate using ``any reasonable 
method.'' Notwithstanding the language of section 705(c)(5)(A)(i) of 
the Act, we have not calculated the ``all-others'' rate by weight 
averaging the rates of the two individually investigated respondents, 
because doing so risks disclosure of proprietary

[[Page 62595]]

information. Therefore, and consistent with the Department's practice, 
for the ``all-others'' rate, we calculated a simple average of the two 
mandatory respondents' rates.\6\
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    \6\ See, e.g., Countervailing Duty Investigation of Chlorinated 
Isocyanurates from the People's Republic of China: Preliminary 
Determination and Alignment of Final Determination With Final 
Antidumping Determination, 79 FR 10097 (February 24, 2014). We did 
not include Bluestar in the ``all-others'' rate because it was not a 
mandatory respondent.
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    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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T.T. International Co., Ltd.............................           22.75
JUHUA (including Zhejiang Quhua Fluor-Chemistry Co.,                5.71
 Ltd., and other Juhua Stock Companies).................
Jiangsu Bluestar Green Technology Co., Ltd..............            1.87
All Others..............................................           14.23
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    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of merchandise 
under consideration from the PRC that were entered or withdrawn from 
warehouse, for consumption on or after April 18, 2014, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we issued instructions to 
CBP to discontinue the suspension of liquidation for CVD purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
August 16, 2014, but to continue the suspension of liquidation of all 
entries from April 18, 2014, through August 15, 2014.
    If the U.S. International Trade Commission (``ITC'') issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
merchandise in the amounts indicated above. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (``APO''), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    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 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.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: October 14, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix--Issues and Decision Memorandum

1. Whether Loans Provided by Banks Other Than the ``Big Four'' Are 
Countervailable
2. Whether the Department is Properly Countervailing Loans to 
Companies Producing a Disfavored Product
3. Whether AFA is Warranted With Regard to the Fluorospar for LTAR 
Program & Whether the Program is Countervailable
4. Whether Partial AFA is Warranted For the Mining Rights for LTAR 
Program
5. Whether the Department Should Calculate a Separate Combination 
Rate for Weitron
6. Whether the Department Correctly Treated the Tax and VAT Programs 
as Recurring Subsidies
7. Bluestar's Minor Corrections With Regard to Electricity
8. Whether the Department Correctly Calculated the Electricity 
Benchmark
9. Whether the Department Correctly Included Purchases Made for 
Trading Purchases in its Fluorspar Calculation for JUHUA
10. Whether the Department Correctly Included Purchases Made From 
Trading Companies in its Fluorspar Calculation for JUHUA
11. Whether Certain Types of Financing are Countervailable
12. Whether the Department Used the Correct Denominator for Juhua 
Mining
13. Whether the Department Correctly Attributed Subsidies for 
Sinochem Taicang
14. Whether the Department Correctly Calculated the Benchmark for 
Loan Programs
15. Whether the Department Double Counted Loans Received by Sinochem 
Lantian
16. Whether the Department Correctly Calculated the Acidspar 
Benchmark
17. Whether the Department Should Cumulate the Subsidy Rates of 
Three AHF Suppliers to Sinochem
18. Whether the Attribution of Subsidies Received by Authorities is 
a Departure from Department Practice and Results in Double Counting 
of Subsidy Benefits
19. Whether the Department Properly Rejected Sinochem's August 1, 
2014, Submission as Untimely
20. Whether the Department Should Apply the Program-Wide Change Rule 
and Not Calculate a Subsidy Rate for the Two-Free Three-Half Program

[FR Doc. 2014-24912 Filed 10-17-14; 8:45 am]
BILLING CODE 3510-DS-P