[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:
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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