[Federal Register Volume 85, Number 167 (Thursday, August 27, 2020)]
[Notices]
[Pages 52950-52953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18811]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-121]
Difluoromethane (R-32) From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair Value
and Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that Difluoromethane (R-32) from the People's Republic of China (China)
is being, or is likely to be, sold in the United States at less than
fair value (LTFV). The period of investigation (POI) is July 1, 2019
through December 31, 2019. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable August 20, 2020.
FOR FURTHER INFORMATION CONTACT: Joshua Tucker or William Miller, 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) 482-2044 or (202)
482-3906, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February
24, 2020.\1\ On June 8, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
August 20, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included in the Preliminary
Decision Memorandum is included as Appendix II to this notice. 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 https://access.trade.gov,
and to all parties in the Central Records Unit, Room B8024 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of
the Preliminary Decision Memorandum are identical in content.
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\1\ See Difluoromethane (R-32) from the People's Republic of
China: Initiation of Less-Than-Fair-Value Investigation, 85 FR 10406
(February 24, 2020) (Initiation Notice).
\2\ See Difluorormethane {sic{time} (R-32) from the People's
Republic of China: Postponement of Preliminary Determination in the
Less-Than-Fair-Value Investigation, 85 FR 34707 (June 8, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Difluoromethane (R-32) from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is difluoromethane (R-32)
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\5\ No party commented on the
scope of the investigation. Thus, Commerce has not modified the scope
language as it appeared in the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 85 FR at 10407.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act,
Commerce has calculated normal value (NV) in accordance with section
773(c) of the Act.
In addition, Commerce has relied on facts available under section
776(a) of the Act to determine the cash deposit rate assigned to the
China-wide entity. Furthermore, pursuant to sections 776(a) and (b) of
the Act, because the China-wide entity did not cooperate to the best of
its ability in responding to Commerce's requests for data, Commerce
preliminarily has relied upon facts otherwise available, with adverse
inferences, for the China-wide entity. For a full description of the
methodology underlying Commerce's preliminary determination, see the
Preliminary Decision Memorandum.
[[Page 52951]]
Combination Rates
In the Initiation Notice,\6\ Commerce stated that it would
calculate exporter/producer combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\7\ For a list of the respondents that
established eligibility for their own separate rates and the exporter/
producer combination rates applicable to these respondents, see
Appendix III.
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\6\ See Initiation Notice, 85 FR at 10409.
\7\ 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,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated
weighted-
Producer Exporter average
dumping margin
(percent)
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Taizhou Qingsong Refrigerant Taizhou Qingsong 161.49
New Material Co., Ltd. Refrigerant New
Material Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd. Zibo Feiyuan Chemical 221.06
Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd. T.T. International Co., 221.06
Ltd.
Producers Supplying the Non- Non-Individually 196.19
Individually-Examined Examined Exporters
Exporters Receiving Separate Receiving Separate
Rates (see Appendix III). Rates (see Appendix
III).
China-Wide Entity.............. ....................... 221.06
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which NV exceeds U.S.
price, as indicated in the chart above as follows: (1) For the
producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
Chinese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Chinese producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
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.
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\8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\9\
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\9\ See Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Final Determination
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for
[[Page 52952]]
postponement of a final AD determination be accompanied by a request
for extension of provisional measures from a four-month period to a
period not more than six months in duration.
On August 13 and 14, 2020, Taizhou Qingsong Refrigerant New
Material Co., Ltd. (Taizhou Qingsong), Zibo Feiyuan Chemical Co., Ltd.
(Zibo Feiyuan), and Arkema Inc. (the petitioner), requested that
Commerce postpone the final determination and that provisional measures
be extended to a period not to exceed six months.\10\ In accordance
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii),
because: (1) The preliminary determination is affirmative; (2) the
requesting exporters account for a significant proportion of exports of
the subject merchandise; and (3) no compelling reasons for denial
exist, Commerce is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, Commerce will make its final
determination no later than 135 days after the date of publication of
this preliminary determination.
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\10\ See Taizhou Qingsong's and Zibo Feiyuan's Letter, ``Less-
Than-Fair Value Investigation of Difluoromethane (R-32) from the
People's Republic of China: Request for Extension of Final
Determination and Provisional Measures,'' dated August 13, 2020; and
Petitioner's Letter, ``Difluoromethane (R-32) from the People's
Republic of China: Petitioner's Request to Postpone Final
Determination,'' dated August 14, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: August 20, 2020.
Joseph A. Laroski Jr.,
Deputy Assistant Secretary for Policy and Negotiations.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is difluoromethane
(R-32), or its chemical equivalent, regardless of form, type or
purity level. R-32 has the Chemical Abstracts Service (CAS) registry
number of 75-10-5 and the chemical formula CH2 F2. R-32 is also
referred to as difluoromethane, HFC-32, FC-32, Freon-32, methylene
difluoride, methylene fluoride, carbon fluoride hydride, halocarbon
R32, fluorocarbon R32, and UN 3252. Subject merchandise also
includes R-32 and unpurified R-32 that are processed in a third
country or the United States, including, but not limited to,
purifying or any other processing that would not otherwise remove
the merchandise from the scope of this investigation if performed in
the country of manufacture of the in-scope R-32. R-32 that has been
blended with products other than pentafluoroethane (R-125) is
included within this scope if such blends contain 85% or more by
volume on an actual percentage basis of R-32. In addition, R-32 that
has been blended with any amount of R-125 is included within this
scope if such blends contain more than 52% by volume on an actual
percentage basis of R-32. Whether R-32 is blended with R-125 or
other products, only the R-32 component of the mixture is covered by
the scope of this investigation. The scope also includes R-32 that
is commingled with R-32 from sources not subject to this
investigation. Only the subject component of such commingled
products is covered by the scope of this investigation.
Excluded from the current scope is merchandise covered by the
scope of the antidumping order on hydrofluorocarbon blends from the
People's Republic of China. See Hydrofluorocarbon Blends from the
People's Republic of China: Antidumping Duty Order, 81 FR 55436
(August 19, 2016) (the Blends Order).
R-32 is classified under Harmonized Tariff Schedule of the
United States (HTSUS) subheading 2903.39.2035. Other merchandise
subject to the current scope, including the abovementioned blends
that are outside the scope of the Blends Order, may be classified
under 2903.39.2045 and 3824.78.0020. The HTSUS subheadings and CAS
registry number are provided for convenience and customs purposes.
The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
A. Non-Market Economy Country
B. Surrogate Country
C. Separate Rates
D. Separate Rate Recipients
E. Margin for the Separate Rate Companies
F. Combination Rates
G. The China-Wide Entity
H. Date of Sale
I. Fair Value Comparisons
J. Export Price
K. Normal Value
L. Comparisons to Normal Value
VI. Currency Conversion
VII. Conclusion
Appendix III
List of Separate Rate Companies
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Exporter Producer
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Producers Supplying the Non-
Non-Individually Examined Exporters Individually-Examined Exporters
Receiving Separate Rates Receiving Separate Rates
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Icool International (Hong Kong) Limited Changshu 3F Zhonghao New
Chemical Materials Co., Ltd.
Icool International (Hong Kong) Limited Zhejiang Zhiyang Chemical Co.,
Ltd.
Icool International (Hong Kong) Limited Taizhou Huasheng New
Refrigeration Material Co.,
Ltd.
Icool International (Hong Kong) Limited Zhejiang Lishui Fuhua Chemical
Co., Ltd.
Icool International (Hong Kong) Limited Zibo Feiyuan Chemical Co., Ltd.
Icool International (Hong Kong) Limited Jiangsu Meilan Chemical Co.,
Ltd.
Icool International (Hong Kong) Limited Taizhou Qingsong Refrigerant
New Material Co., Ltd.
Icool International (Hong Kong) Limited Zhejiang Sanmei Chemical
Industry Co., Ltd.
Icool International (Hong Kong) Limited Shandong Huaan New Material
Co., Ltd.
Icool International (Hong Kong) Limited Liaocheng Fuer New Materials
Technology Co., Ltd.
Icool International (Hong Kong) Limited Ruyuan Dongyangguang Fluorine
Co., Ltd.
Icool International (Hong Kong) Limited Shandong Xinlong Science
Technology Co., Ltd.
Icool International (Hong Kong) Limited Linhai Limin Chemicals Co.,
Ltd.
Icool International (Hong Kong) Limited Dongyang Weihua Refrigerants
Co., Ltd.
Icool International (Hong Kong) Limited Zhejiang Fulai Refrigerant Co.,
Ltd.
[[Page 52953]]
Icool International (Hong Kong) Limited Zhejiang Guomao Industrial Co.,
Ltd.
Icool International (Hong Kong) Limited Zhejiang Yonghe Refrigerant
Co., Ltd.
Icool International (Hong Kong) Limited Shanghai Aohong Chemical Co.,
Ltd.
Ninhua Group Co., Ltd.................. Changshu 3F Zhonghao New
Chemical Materials Co., Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Zhiyang Chemical Co.,
Ltd.
Ninhua Group Co., Ltd.................. Taizhou Huasheng New
Refrigeration Material Co.,
Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Lishui Fuhua Chemical
Co., Ltd.
Ninhua Group Co., Ltd.................. Zibo Feiyuan Chemical Co., Ltd.
Ninhua Group Co., Ltd.................. Jiangsu Meilan Chemical Co.,
Ltd.
Ninhua Group Co., Ltd.................. Taizhou Qingsong Refrigerant
New Material Co., Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Sanmei Chemical
Industry Co., Ltd.
Ninhua Group Co., Ltd.................. Shandong Huaan New Material
Co., Ltd.
Ninhua Group Co., Ltd.................. Liaocheng Fuer New Materials
Technology Co., Ltd.
Ninhua Group Co., Ltd.................. Ruyuan Dongyangguang Fluorine
Co., Ltd.
Ninhua Group Co., Ltd.................. Shandong Xinlong Science
Technology Co., Ltd.
Ninhua Group Co., Ltd.................. Linhai Limin Chemicals Co.,
Ltd.
Ninhua Group Co., Ltd.................. Dongyang Weihua Refrigerants
Co., Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Fulai Refrigerant Co.,
Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Guomao Industrial Co.,
Ltd.
Ninhua Group Co., Ltd.................. Zhejiang Yonghe Refrigerant
Co., Ltd.
Ninhua Group Co., Ltd.................. Shanghai Aohong Chemical Co.,
Ltd.
Shandong Huaan New Material Co., Ltd... Shandong Huaan New Material
Co., Ltd.
T.T. International Co., Ltd............ Sinochem Lantian Fluoro
Materials Co., Ltd.
T.T. International Co., Ltd............ Zhejiang Sanmei Chemical
Industry Co., Ltd.
T.T. International Co., Ltd............ Shandong Huaan New Material
Co., Ltd.
Zhejiang Sanmei Chemical Ind. Co., Ltd. Jiangsu Sanmei Chemical Ind.
Co., Ltd.
Zhejiang Sanmei Chemical Ind. Co., Ltd. Fujian Qingliu Dongying
Chemical Co., Ltd.
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[FR Doc. 2020-18811 Filed 8-26-20; 8:45 am]
BILLING CODE 3510-DS-P