[Federal Register Volume 82, Number 39 (Wednesday, March 1, 2017)]
[Notices]
[Pages 12192-12195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03961]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-044]
1,1,1,2 Tetrafluoroethane (R-134a) From the People's Republic of
China: Final Determination of Sales at Less Than Fair Value and
Affirmative Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') determines that
1,1,1,2 Tetrafluoroethane (R-134a) (``R134a'') from the People's
Republic of China (``PRC'') is being, or is likely to be, sold in the
United States at less than fair value (``LTFV''). The final weighted-
average dumping margins of sales at LTFV are listed below in the
``Final Determination Margins'' section of this notice.
DATES: Effective March 1, 2017.
FOR FURTHER INFORMATION CONTACT: Paul Stolz or Keith Haynes, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone: (202) 482-4474, and (202) 482-
5139, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 7, 2016, the Department published the Preliminary
Determination of this antidumping duty (``AD'') investigation.\1\ In
the Preliminary Determination, we postponed the final determination
until no later than 135 days after the date of publication of the
Preliminary Determination in accordance with section 735(a)(2) of the
Tariff Act of 1930, as amended (``the Act'') and invited interested
parties to comment on our preliminary findings. A summary of the events
that occurred since the Department published the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for this final determination, may be found in the accompanying
Issues and Decision Memorandum.\2\
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\1\ See 1,1,1,2-Tetrafluoroethane (R-134a) from the People's
Republic of China: Preliminary Determination of Sales at Less-Than-
Fair Value and Affirmative Determination of Critical Circumstances,
in Part, and Postponement of Final Determination, 81 FR 69786
(October 7, 2016) and accompanying Preliminary Decision Memorandum,
as later amended by 1,1,1,2-Tetrafluoroethane (R-134a) from the
People's Republic of China; Amended Preliminary Affirmative
Determination of Sales at Less-Than-Fair Value, 81 FR 86699
(December 1, 2016) (collectively, ``Preliminary Determination'').
\2\ See Memorandum to Carole Showers, Executive Director, Office
of Policy, Policy & Negotiations, (insert Carole's title), ``Issues
and Decision Memorandum for the 1,1,1,2 Tetrafluoroethane (R-134a)
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value and Affirmative Determination of Critical
Circumstances, in Part,'' dated concurrently with this notice
(``Issues and Decision Memorandum'').
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Period of Investigation
The period of investigation (``POI'') is July 1, 2015, through
December 31, 2015. This period corresponds to the two most recent
fiscal quarters prior to the month of the filing of the petition, which
was March, 2016.\3\
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\3\ See 19 CFR 351.204(b)(1) and the Initiation Notice.
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Scope Comments
In the Initiation Notice, the Department set aside a period of time
for parties to address scope issues in case briefs or other written
comments on scope issues.\4\ No interested party provided comments on
scope issues for the Preliminary Determination; however, certain
parties did submit comments on the scope of the investigation in the
case and rebuttal briefs. The Department addresses these comments in
the accompanying Issues and Decision Memorandum, but the scope of this
investigation remains unchanged for this final determination.\5\
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\4\ See 1, 1, 1, 2-Tetrafluoroethane from the People's Republic
of China: Initiation of Less Than Fair Value Investigation, 81 FR
18830 (April 1, 2016) (``Initiation Notice'').
\5\ See the Issues and Decision Memorandum at Comment 2.
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Scope of the Investigation
The product covered by this investigation is 1,1,1,2
Tetrafluoroethane (R-134a) from the PRC. For a full description of the
scope of this investigation, see the ``Scope of the Investigation,'' in
Appendix I of this notice.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by interested
parties in this investigation that are not related to the scope of this
investigation are addressed in the Issues and Decision Memorandum,
which is incorporated by reference by, and hereby adopted by, this
notice.\6\ A list of these issues is attached to this notice at
Appendix II. The Issues and Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized
[[Page 12193]]
Electronic Service System (``ACCESS''). ACCESS is available to
registered users at https://access.trade.gov. The Issues and Decision
Memorandum is available to all parties in the Central Records Unit,
room B8024 of the main Department of Commerce building. In addition, a
complete version of the Issues and Decision Memorandum is available at
http://enforcement.trade.gov/frn/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\6\ Id.
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Verification
As provided in section 782(i) of the Act, from November 9, 2016,
through November 16, 2016, we conducted a verification of the sales and
cost responses submitted by Zhejiang Sanmei Chemical Industry Co., Ltd.
(``Sanmei''). We issued a verification report on December 19, 2016.\7\
The Department used standard verification procedures, including an
examination of relevant accounting and production records and original
source documents provided by respondents.\8\
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\7\ See the Department's memorandum, ``Verification of the Sales
and Factors of Production Questionnaire Responses of Zhejiang Sanmei
Chemical Industry Co., Ltd. in the Antidumping Investigation of
1,1,1,2-Tetrafluoroethane (R-134a) from the People's Republic of
China,'' dated December 19, 2016 (``Verification Report'').
\8\ Id.
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Changes Since the Preliminary Determination
Based on the Department's analysis of the comments received and our
findings at verification, we made certain changes to Sanmei's margin
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for the respondents that are eligible for a
separate rate in this investigation.\9\ Policy Bulletin 05.1 describes
this practice.\10\
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\9\ See Initiation Notice, 81 FR at18834.
\10\ 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,'' dated April 5, 2005 (``Policy Bulletin 05.1''),
available on the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Affirmative Determination of Critical Circumstances, in Part
In the Preliminary Determination, the Department found that
critical circumstances exist with respect to imports of R134a from the
PRC produced or exported by the PRC-wide entity and non-individually
reviewed producers/exporters entitled to a separate rate.\11\ We are
not modifying our findings for this final determination. Thus, pursuant
to section 735(a)(3)(B) of the Act and 19 CFR 351.206(h)(1)-(2), we
find that critical circumstances exist with respect to subject
merchandise produced or exported by the PRC-wide entity and non-
individually reviewed producers/exporters entitled to a separate
rate.\12\
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\11\ See the memorandum, ``Less Than Fair Value Investigation of
1,1,1,2 Tetrafluoroethane (``R-134a'') from the People's Republic of
China (``PRC''): Critical Circumstances Import Data,'' dated
September 29, 2016.
\12\ For a full description of the methodology and results of
our analysis, see the Issues and Decision Memorandum and see the
memorandum, ``Analysis for the Final Determination of the Less-Than-
Fair-Value Investigation of 1,1,1,2-Tetrafluoroethane (R 134a) from
the People's Republic of China,'' dated concurrently with this
notice.
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Separate Rate
Under section 735(c)(5)(A) of the Act, the rate for all other
companies that have not been individually examined is normally an
amount equal to the weighted average of the estimated weighted-average
dumping margins established for exporters and producers individually
investigated, excluding any zero and de minimis margins, and any
margins determined entirely on the basis of facts available. In this
final determination, we calculated a weighted-average dumping margin
for Sanmei (the only mandatory respondent eligible for a separate rate)
which is not zero, de minimis, or based entirely on facts available.
Accordingly, we determine to use Sanmei's weighted-average dumping
margin as the margin for the separate rate companies.
PRC-Wide Rate
In our Preliminary Determination, we found that, pursuant to
sections 776(a) and (b) of the Act, the PRC-wide entity did not respond
to the Department's requests for information, failed to provide
necessary information, withheld information requested by the
Department, failed to provide information in a timely manner, and
significantly impeded this proceeding by not submitting the requested
information. As a result, we preliminarily determined to calculate the
PRC-wide rate on the basis of adverse facts available (``AFA''). For
the final determination, we continue to calculate the PRC-wide rate on
the basis of AFA, in accordance with sections 776(a) and (b) of the
Act. We are applying Sanmei's highest calculated transaction-specific
dumping rate of 167.02 percent, as AFA, to the PRC-wide entity for this
final determination.\13\ The transaction underlying this dumping margin
is neither unusual in terms of transaction quantities nor otherwise
atypical, and does not reveal any of Sanmei's proprietary data.\14\
There is no need to corroborate the selected margin because it is based
on information submitted by Sanmei in the course of this investigation,
i.e., it is not secondary information.\15\
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\13\ See, e.g., Silica Bricks and Shapes from the People's
Republic of China: Preliminary Determination of Antidumping Duty
Investigation and Postponement of Final Determination, 78 FR 37203
(June 20, 2013), and accompanying Preliminary Decision Memorandum at
Comment 3.
\14\ See Certain Frozen Warmwater Shrimp from Thailand: Final
Results and Final Partial Rescission of Antidumping Duty
Administrative Review, 72 FR 52065 (September 12, 2007) and
accompanying Issues and Decision Memorandum at Comment 2.
\15\ See 19 CFR 351.308(c) and (d) and section 776(c) of the
Act.
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Final Determination
The Department determines that the estimated final weighted-average
dumping margins are as follows:
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Weighted-
Exporter Producer average margin
(percent)
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Zhejiang Sanmei Chemical Zhejiang Sanmei 148.79
Industry Co., Ltd. Chemical Industry Co.,
Ltd. and Jiangsu
Sanmei Chemicals Co.,
Ltd.
Jiangsu Bluestar Green Jiangsu Bluestar Green 148.79
Technology Co., Ltd. Technology Co., Ltd.
T.T. International Co., Ltd.... Electrochemical Factory 148.79
of Zhejiang Juhua Co.,
Ltd.
T.T. International Co., Ltd.... Sinochem Environmental 148.79
Protection Chemicals
(Taicang) Co., Ltd.
T.T. International Co., Ltd.... Zhejiang Quzhou 148.79
Lianzhou Refrigerants
Co., Ltd.
[[Page 12194]]
T.T. International Co., Ltd.... Zhejiang Sanmei 148.79
Chemical Ind. Co., Ltd.
T.T. International Co., Ltd.... Zhejiang Zhonglan 148.79
Refrigeration
Technology Co., Ltd.
Weitron International Sinochem Environmental 148.79
Refrigeration Equipment Co., Protection Chemicals
Ltd. (Taicang) Co., Ltd.
Weitron International Weitron International 148.79
Refrigeration Equipment Co., Refrigeration
Ltd. Equipment Co., Ltd.
Weitron International Zhejiang Organic Fluor- 148.79
Refrigeration Equipment Co., Chemistry Plant,
Ltd. Zhejiang Juhua Co.,
Ltd.
Weitron International Zhejiang Quhua Fluor- 148.79
Refrigeration Equipment Co., Chemistry Co., Ltd.
Ltd.
Weitron International Zhejiang Quhua Juxin 148.79
Refrigeration Equipment Co., Fluorochemical
Ltd. Industry Co., Ltd.
Weitron International Zhejiang Sanmei 148.79
Refrigeration Equipment Co., Chemical Industry Co.,
Ltd. Ltd.
PRC-Wide Entity\16\............ ....................... 167.02
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Disclosure
We intend to disclose to parties the calculations performed in this
proceeding within five days of the public announcement of this final
determination in accordance with 19 CFR 351.224(b).
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\16\ The PRC-Wide Entity includes Zhejiang Quzhou Lianzhou
Refrigerants Co., Ltd., a mandatory respondent, as well as separate
rate applicants Zhejiang Quhua Fluor-Chemistry Co., Ltd., and
Sinochem Environmental Protection Chemicals (Taicang) Co. Ltd. See
Issues and Decision Memorandum at comment 1 and Preliminary
Determination at 17.
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Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, the Department will
instruct U.S. Customs and Border Protection (``CBP'') to continue to
suspend liquidation of all entries of R134a from the PRC, which were
entered, or withdrawn from warehouse, for consumption on or after July
9, 2016 (for those entities for which we found critical circumstances
exist) or on or after October 7, 2016, the date of publication in the
Federal Register of the affirmative Preliminary Determination (for all
entities for which we did not find critical circumstances exist).
Further, pursuant to section 735(c)(1)(B)(ii) of the Act, the
Department will instruct CBP to require a cash deposit \17\ equal to
the weighted-average amount by which the normal value exceeds U.S.
price, as follows: (1) For the exporter/producer combinations listed in
the table above, the cash deposit rate will be equal to the dumping
margin which the Department determined in this final determination; (2)
for all combinations of PRC exporters/producers of merchandise under
consideration which have not received their own separate rate above,
the cash deposit rate will be equal to the dumping margin established
for the PRC-wide entity; and (3) for all non-PRC exporters of
merchandise under consideration which have not received their own
separate rate above, the cash deposit rate will be equal to the cash
deposit rate applicable to the PRC exporter/producer combination that
supplied that non-PRC exporter. The suspension of liquidation
instructions will remain in effect until further notice.
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\17\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (``ITC'') of the final affirmative
determination of sales at LTFV. Because the final determination in this
proceeding is affirmative, in accordance with section 735(b)(2) of the
Act, the ITC will determine, within 45 days, whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of imports of R134a from the PRC, or sales
(or the likelihood of sales) for importation, of R134a from the PRC. If
the ITC determines that such injury does not exist, this proceeding
will be terminated and all securities posted will be refunded or
canceled. If the ITC determines that such injury does exist, the
Department will issue an AD order directing CBP to assess, upon further
instruction by the Department, antidumping duties on all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
Notification Regarding Administrative Protective Orders
This notice also serves as a reminder to the parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of propriety information disclosed under APO
in accordance with 19 CFR 351.305(a)(3). Timely written notification of
return or 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 sanctionable violation.
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: February 21, 2017.
Carole Showers,
Executive Director, Office of Policy, Policy & Negotiations.
Appendix I
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 registry number is CAS 811-97-2.\18\
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\18\ 1,1,1,2-Tetrafluoroethane is sold under a number of trade
names including Klea 134a and Zephex 134a (Mexichem Fluor); Genetron
134a (Honeywell); FreonTM 134a, Suva 134a, Dymel 134a,
and Dymel P134a (Chemours); 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.
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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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Final Determination of Critical Circumstances, in Part
V. Changes Since the Preliminary Determination
VI. Use of Adverse Facts Available
VII. Discussion of the Issues
[[Page 12195]]
Comment 1: Whether the Department Correctly Denied Lianzhou and
Quhua a Separate Rate
Comment 2: Whether the Scope of the Investigation Overlaps With
an Existing Order
Comment 3: Whether Critical Circumstances Exist for Weitron
Comment 4: Sanmei's By-Product Offsets
Comment 5: Selection of Inland Boat Freight Surrogate Value
Comment 6: Use of the CYDSA Financial Statement in Calculation
of Surrogate Financial Ratios
Comment 7: Revision of Sanmei's Producer/Exporter Combinations
VIII. Recommendation
[FR Doc. 2017-03961 Filed 2-28-17; 8:45 am]
BILLING CODE 3510-DS-P