[Federal Register Volume 85, Number 70 (Friday, April 10, 2020)]
[Notices]
[Pages 20248-20249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07605]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-028]
Hydrofluorocarbon Blends From the People's Republic of China:
Affirmative Preliminary Determination of Circumvention of the
Antidumping Duty Order for HFC Components; and Extension of Time Limit
for Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that imports of hydrofluorocarbon (HFC) components R-32
(difluoromethane), R-125 (pentafluoroethane), and R-143a (1,1,1-
trifluoroethane) from the People's Republic of China (China) are
circumventing the antidumping duty (AD) order on HFC blends from China.
As a result, imports of R-32, R-125, and R-143a from China will be
subject to suspension of liquidation effective June 18, 2019. We invite
interested parties to comment on this preliminary determination.
DATES: Applicable April 10, 2020.
FOR FURTHER INFORMATION CONTACT: Benjamin Luberda or Jacob Garten, 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) 482-2185 or (202)
482-3342, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 18, 2019, Commerce initiated an anti-circumvention inquiry
to determine whether imports of certain HFC components (i.e., R-32, R-
125, and R-143a) from China, that are further processed into finished
HFC blends in the United States,\1\ are circumventing the Order on HFC
blends from China.\2\ For a complete description of the events that
followed the initiation of this inquiry, see the Preliminary Decision
Memorandum.\3\
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\1\ See Hydrofluorocarbon Blends from the People's Republic of
China: Initiation of Anti-Circumvention Inquiry of Antidumping Duty
Order; Components, 84 FR 28273 (June 18, 2019).
\2\ See Hydrofluorocarbon Blends from the People's Republic of
China: Antidumping Duty Order, 81 FR 55436 (October 16, 2017)
(Order).
\3\ See Memorandum, ``Preliminary Decision Memorandum for Anti-
Circumvention Inquiry of the Antidumping Duty Order on
Hydrofluorocarbon Blends from the People's Republic of China: HFC
Components'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope of the Order
The products subject to the Order are HFC blends. HFC blends
covered by the scope are R-404A, R-407A, R-407C, R-410A, and R-507A/R-
507.\4\ HFC blends covered by the scope of the Order are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) at subheadings 3824.78.0020 and 3824.78.0050. Although the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the scope is dispositive.
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\4\ For a complete description of the scope of the order, see
Preliminary Decision Memorandum.
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Merchandise Subject to the Anti-Circumvention Inquiry
This anti-circumvention inquiry covers imports of the HFC
components R-32 (difluoromethane), R-125 (pentafluoroethane), and R-
143a (1,1,1-trifluoroethane), from China that are further processed in
the United States to create an HFC blend that would be subject to the
Order.
Methodology
Commerce made this preliminary finding of circumvention in
accordance with section 781(a) of the Tariff Act of 1930, as amended
(the Act) and 19 CFR 351.225(g). We relied on information placed on the
record by the American HFC Coalition (the petitioners); by Arkema Inc.,
BMP USA Inc., IGas USA, Inc., and their affiliated importers, National
Refrigerants, Inc. (collectively, U.S. importers and blenders); and by
Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd., Zhejiang Sanmei
Chemical Ind. Co., Ltd., and T.T. International Co., Ltd.
(collectively, Chinese producers and/or exporters). Further, because
Golden G Imports LLC and Taizhou Qingsong Refrigerant New Material Co.,
Ltd. did not cooperate to the best of their ability in responding to
Commerce's requests for information, we have based parts of our
preliminary determination on the facts available, with adverse
inferences, pursuant to sections 776(a) and (b) of the Act.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. 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 http://access.trade.gov. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content. A list of the topics discussed in the Preliminary Decision
Memorandum is attached at the Appendix to this notice.
Affirmative Preliminary Determination of Circumvention
As detailed in the Preliminary Decision Memorandum, we
preliminarily determine, pursuant to section 781(a) of the Act, that
imports of HFC components R-32, R-125, and R-143a from China, that are
further processed in the United States into finished HFC blends subject
to the Order are circumventing the Order.
Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(2), Commerce will instruct CBP
to suspend liquidation of all HFC components R-32, R-125, and R-143a
(as defined in the Merchandise Subject to the Anti-Circumvention
Inquiry section above) from China that are entered, or withdrawn from
warehouse, for consumption on or after June 18, 2019, the date of
initiation of this anti-circumvention inquiry.\5\ CBP shall require
cash deposits in accordance with those rates prevailing at the time of
entry, depending upon the exporter in question, under the HFC blends
Order. The suspension of liquidation instructions will remain in effect
until further notice.
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\5\ See, e.g., Anti-circumvention Inquiry of the Antidumping
Duty Order on Certain Pasta from Italy: Affirmative Preliminary
Determination of Circumvention of the Antidumping Duty Order, 63 FR
18364, 18366 (April 15, 1998), unchanged in Anti-Circumvention
Inquiry of the Antidumping Duty Order on Certain Pasta from Italy:
Affirmative Final Determination of Circumvention of the Antidumping
Duty Order, 63 FR 54672, 54675-6 (October 13, 1998).
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We received comments from multiple parties with respect to
certification regimes to exclude certain imports of
[[Page 20249]]
HFC components from the Order.\6\ At this time, we have not included a
certification requirement; however, we invite further comments on this
issue, and based upon any such comments, we may consider such a
certification requirement for the final determination.
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\6\ See, e.g., Hudson Technologies Company's Letter,
``Hydrofluorocarbon Blends from the People's Republic of China,
Anti-Circumvention Inquiry--HFC Components (A-570-028): Hudson
Technology Company's Pre-Preliminary Determination Comments,'' dated
March 6, 2020.
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Public Comment
Interested parties may submit case briefs to Commerce no later than
14 days after the date of publication of this notice.\7\ Rebuttal
briefs, limited to issues raised in the case briefs, may be filed no
later than seven days after the time limit for filing case briefs.\8\
Parties who submit case briefs or rebuttal briefs in this proceeding
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.\9\ Case and rebuttal briefs should be filed electronically
via ACCESS.\10\ Note that Commerce has temporarily modified certain of
its requirements for serving documents containing business proprietary
information, until May 19, 2020, unless extended.\11\
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\7\ Commerce is exercising its discretion, under 19 CFR
351.309(c)(1)(ii), to alter the time limit for filing of case
briefs.
\8\ Commerce is exercising its discretion, under 19 CFR
351.309(d)(1), to alter the time limit for filing of rebuttal
briefs.
\9\ See 19 CFR 351.309(c)(2) and (d)(2).
\10\ See 19 CFR 351.303.
\11\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing must submit a written request to the Assistant
Secretary for Enforcement and Compliance, filed electronically and
received successfully in its entirety, via ACCESS by 5:00 p.m. Eastern
Time within 14 days after the date of publication of this notice.\12\
Hearing requests should contain: (1) The party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. Issues raised in the hearing will be limited to
issues raised in the briefs. If a request for a hearing is made,
parties will be notified of the date and time for the hearing to be
held at the U.S. Department of Commerce, 1401 Constitution Avenue NW,
Washington, DC 20230.\13\
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\12\ See 19 CFR 351.310(c).
\13\ Id.
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Postponement of Final Determination
Section 781(f) of the Act provides that, to the maximum extent
practicable, Commerce shall make its anti-circumvention determinations
within 300 days from the date of initiation of the inquiry. We
determine that it is not practicable to make a final determination in
this anti-circumvention inquiry by the current deadline of April 13,
2020, because Commerce will require additional time to notify the U.S.
International Trade Commission (ITC), and to review and analyze case
and rebuttal briefs. Therefore, we are extending the time period for
issuing the final determination in this inquiry by 80 days, to July 2,
2020.
Notification to the ITC
Consistent with section 781(e) of the Act, Commerce is notifying
the ITC of this affirmative preliminary determination to include the
merchandise subject to this inquiry within the AD order on HFC blends
from China. Pursuant to section 781(e) of the Act, the ITC may request
consultations concerning Commerce's proposed inclusion of the subject
merchandise. These consultations must be concluded within 15 days after
the date of the request. If, after consultations, the ITC believes that
a significant injury issue is presented by the proposed inclusion, it
will have 60 days to provide written advice to Commerce.
Notification to Interested Parties
This notice is published in accordance with section 781(a) of the
Act and 19 CFR 351.225(g).
Dated: April 3, 2020.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Merchandise Subject to the Anti-Circumvention Inquiry
IV. Scope of the Order
V. Period of Anti-Circumvention Inquiry
VI. Surrogate Countries and Methodology for Valuing Inputs From
China
VII. Statutory and Regulatory Framework for Anti-Circumvention
Inquiry
VIII. Use of Facts Available With An Adverse Inference
IX. Allegations of Circumvention as Identified in the Initiation of
Inquiry
X. Anti-Circumvention Analysis
XI. Intent to Consider Certification Requirement
XII. Country-Wide Determination
XIII. Recommendation
[FR Doc. 2020-07605 Filed 4-9-20; 8:45 am]
BILLING CODE 3510-DS-P