Pentafluoroethane (R-125) From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 8583-8588 [2021-02529]
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Federal Register / Vol. 86, No. 24 / Monday, February 8, 2021 / Notices
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Dated: February 3, 2021.
Sheleen Dumas,
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the Chief Information Officer, Commerce
Department.
[FR Doc. 2021–02488 Filed 2–5–21; 8:45 am]
BILLING CODE 3510–07–P
DEPARTMENT OF COMMERCE
Dated: February 2, 2021.
Andrew McGilvray,
Executive Secretary.
Foreign-Trade Zones Board
[FR Doc. 2021–02515 Filed 2–5–21; 8:45 am]
[B–05–2021]
BILLING CODE 3510–DS–P
Foreign-Trade Zone (FTZ) 265—
Conroe, Texas; Notification of
Proposed Production Activity; Bauer
Manufacturing LLC, d/b/a NEORig
(Water Well Drilling Rigs), Conroe,
Texas
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400.22) was received on February 1,
2021.
Bauer already has authority to
produce pile drivers and leads, boring
machinery, foundation construction
equipment, stationary oil/gas drilling
rigs, and related parts and assemblies
within FTZ 265. The current request
would add two finished products to the
scope of authority. Pursuant to 15 CFR
400.14(b), additional FTZ authority
would be limited to the specific finished
products described in the submitted
notification (as described below) and
subsequently authorized by the FTZ
Board.
Production under FTZ procedures
could exempt Bauer from customs duty
payments on the foreign-status
materials/components used in export
production. On its domestic sales, for
the foreign-status materials/components
in the existing scope of authority, Bauer
would be able to choose the duty rates
during customs entry procedures that
apply to water well drilling rigs, and
self-propelled water well drilling rigs
(duty-free). Bauer would be able to
avoid duty on foreign-status
components which become scrap/waste.
Customs duties also could possibly be
deferred or reduced on foreign-status
production equipment.
Public comment is invited from
interested parties. Submissions shall be
addressed to the Board’s Executive
Secretary and sent to: ftz@trade.gov. The
closing period for their receipt is March
22, 2021.
A copy of the notification will be
available for public inspection in the
‘‘Reading Room’’ section of the Board’s
website, which is accessible via
www.trade.gov/ftz.
For further information, contact
Juanita Chen at juanita.chen@trade.gov
or 202–482–1378.
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[S–217–2020]
The City of Conroe, grantee of FTZ
265, submitted a notification of
proposed production activity to the FTZ
Board on behalf of Bauer Manufacturing
LLC, d/b/a/NEORig (Bauer), located in
Conroe, Texas. The notification
conforming to the requirements of the
regulations of the FTZ Board (15 CFR
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Approval of Subzone Expansion;
Abbott Laboratories, Itasca, Illinois
On December 8, 2020, the Executive
Secretary of the Foreign-Trade Zones
(FTZ) Board docketed an application
submitted by the Illinois International
Port District, grantee of FTZ 22,
requesting an expansion of Subzone 22F
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subject to the existing activation limit of
FTZ 22, on behalf of Abbott
Laboratories, in Itasca, Illinois.
The application was processed in
accordance with the FTZ Act and
Regulations, including notice in the
Federal Register inviting public
comment (85 FR 80770–80771,
December 14, 2020). The FTZ staff
examiner reviewed the application and
determined that it meets the criteria for
approval. Pursuant to the authority
delegated to the FTZ Board Executive
Secretary (15 CFR Sec. 400.36(f)), the
application to expand Subzone 22F was
approved on February 1, 2021, subject
to the FTZ Act and the Board’s
regulations, including Section 400.13,
and further subject to FTZ 22’s 2,000acre activation limit.
Dated: February 1, 2021.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2021–02514 Filed 2–5–21; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–137]
Pentafluoroethane (R–125) From the
People’s Republic of China: Initiation
of Less-Than-Fair-Value Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable February 1, 2021.
FOR FURTHER INFORMATION CONTACT:
Benjamin A. Luberda or Alex Wood,
AD/CVD Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–2185 or (202) 482–1959,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On January 12, 2021, the U.S.
Department of Commerce (Commerce)
received an antidumping duty (AD)
petition concerning imports of
pentafluoroethane (R–125) from the
People’s Republic of China (China) filed
in proper form on behalf of Honeywell
International, Inc. (the petitioner), the
sole domestic producer of R–125.1 The
Petition was accompanied by a
countervailing duty (CVD) petition
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties: R–125 (Pentafluoroethane) from the People’s
Republic of China,’’ dated January 12, 2021 (the
Petition) at Volume I and Exhibit I–1.
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concerning imports of R–125 from
China.2
On January 14, 22, and 27, 2021,
Commerce requested supplemental
information pertaining to certain aspects
of the Petition in separate supplemental
questionnaires and a phone call with
the petitioner.3 On January 19, 25, and
28, 2021, the petitioner filed timely
responses to these requests for
additional information.4
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of R–125 from China are being, or are
likely to be, sold in the United States at
less than fair value (LTFV) within the
meaning of section 731 of the Act and
that imports of such products are
materially injuring, or threatening
material injury to, the domestic R–125
industry in the United States. Consistent
with section 732(b)(1) of the Act, the
Petition is accompanied by information
reasonably available to the petitioner
supporting the allegation.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because the
petitioner is an interested party, as
defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support for the initiation of the
requested AD investigation.5
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2 Id.
3 See Commerce’s Letters, ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Pentafluoroethane (R–125) from the People’s
Republic of China: Supplemental Questions’’ and
‘‘Petitions for the Imposition of Antidumping and
Countervailing Duties on Imports of
Pentafluoroethane (R–125) from the People’s
Republic of China: Supplemental Questions,’’ both
dated January 14, 2021 (General Issues
Supplemental); see also Memorandum, ‘‘Petitions
for the Imposition of Antidumping and
Countervailing Duties on Imports of
Pentafluoroethane (R–125) from the People’s
Republic of China: Phone Call with Counsel to the
Petitioner,’’ dated January 22, 2021 (Phone Call
with Petitioner’s Counsel); and Memorandum,
‘‘Petitions for the Imposition of Antidumping and
Countervailing Duties on Imports of
Pentafluoroethane (R–125) from the People’s
Republic of China: Phone Call with Counsel to the
Petitioner,’’ dated January 27, 2021 (Second Phone
Call with Petitioner’s Counsel).
4 See Petitioner’s Letter, ‘‘R–125
(Pentafluoroethane) from the People’s Republic of
China: Honeywell International Inc.’s Supplemental
Questionnaire Response,’’ dated January 19, 2021
(Petitioner’s First Supplemental Questionnaire
Response); see also Petitioner’s Letter, ‘‘R–125
(Pentafluoroethane) from the People’s Republic of
China: Honeywell International Inc.’s Second
Supplemental Questionnaire Response,’’ dated
January 25, 2021 (Petitioner’s Second Supplemental
Questionnaire Response); and Petitioner’s Letter,
‘‘R–125 (Pentafluoroethane) from the People’s
Republic of China: Honeywell International Inc.’s
Third Supplemental Questionnaire Response,’’
dated January 28, 2021 (Petitioner’s Third
Supplemental Questionnaire Response).
5 See ‘‘Determination of Industry Support for the
Petition’’ section, infra.
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Period of Investigation
Because China is a non-market
economy (NME) country, pursuant to 19
CFR 351.204(b)(1), the period of
investigation (POI) is July 1, 2020,
through December 31, 2020.
Scope of the Investigation
The product covered by this
investigation is R–125 from China. For
a full description of the scope of this
investigation, see the appendix to this
notice.
Comments on the Scope of the
Investigation
On January 14, 22, and 27, 2021,
Commerce requested further
information from the petitioner
regarding the proposed scope to ensure
that the scope language in the Petition
is an accurate reflection of the products
for which the domestic industry is
seeking relief.6 On January 19 and 28,
2021, the petitioner revised the scope.7
The description of the merchandise
covered by this investigation, as
described in the appendix to this notice,
reflects these clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(i.e., scope).8 Commerce will consider
all comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determinations. If scope comments
include factual information, all such
factual information should be limited to
public information.9 To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit such comments by 5:00
p.m. Eastern Time (ET) on February 22,
2021, which is the next business day
after 20 calendar days from the
signature date of this notice.10 Any
rebuttal comments, which may include
factual information, must be filed by
6 See General Issues Supplemental at 3; see also
Phone Call with Petitioner’s Counsel at 1; and
Second Phone Call with Petitioner’s Counsel at 1.
7 See Petitioner’s First Supplemental
Questionnaire Response at
1–2; see also Petitioner’s Third Supplemental
Questionnaire Response at 1–2.
8 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
9 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
10 Commerce’s practice dictates that where a
deadline falls on a weekend or Federal holiday (in
this instance, February 21, 2021), the appropriate
deadline is the next business day. See Notice of
Clarification: Application of ‘‘Next Business Day’’
Rule for Administrative Determination Deadlines
Pursuant to the Tariff Act of 1930, As Amended, 70
FR 24533 (May 10, 2005) (Next Business Day Rule).
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5:00 p.m. ET on March 4, 2021, which
is 10 calendar days from the initial
comment deadline.11
Commerce requests that any factual
information parties consider relevant to
the scope of the investigation be
submitted during this period. However,
if a party subsequently finds that
additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All scope submissions
must be filed on the records of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically via Enforcement and
Compliance’s (E&C’s) Antidumping
Duty and Countervailing Duty
Centralized Electronic Service System
(ACCESS), unless an exception
applies.12 An electronically filed
document must be received successfully
in its entirety by the time and date it is
due.
Comments on Product Characteristics
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of R–125 to be reported in response to
Commerce’s AD questionnaires. This
information will be used to identify the
key physical characteristics of the
subject merchandise in order to report
the relevant factors of production
(FOPs) accurately, as well as to develop
appropriate product-comparison
criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaires, all
product characteristics comments must
be filed by 5:00 p.m. ET on February 22,
2021, which is the next business day
after 20 calendar days from the
signature date of this notice.13 Any
11 See
19 CFR 351.303(b).
Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook_on_Electronic_
Filing_Procedures.pdf.
13 See 19 CFR 351.303(b). Commerce practice
dictates that where a deadline falls on a weekend
or Federal holiday (in this instance, February 21,
12 See
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rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on March 4, 2021, which
is ten calendar days after the initial
comment deadline. All comments and
submissions to Commerce must be filed
electronically using ACCESS, as
explained above, on the record of the
AD investigation.
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Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,14 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.15
2021), the appropriate deadline is the next business
day. See Next Business Day Rule, 70 FR at 24533.
14 See section 771(10) of the Act.
15 See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp. v.
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Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigation.16 Based on our analysis of
the information submitted on the
record, we have determined that R–125,
as defined in the scope, constitutes a
single domestic like product, and we
have analyzed industry support in terms
of that domestic like product.17
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigation,’’ in the appendix to this
notice. To establish industry support,
the petitioner provided its own
production of the domestic like product
in 2020.18 The petitioner states that
there are no other known U.S. producers
of R–125; therefore, the Petition is
supported by 100 percent of the U.S.
industry.19 We relied on data provided
by the petitioner for purposes of
measuring industry support.20
Our review of the data provided in the
Petition, the Petitioner’s First
Supplemental Questionnaire Response,
and other information readily available
to Commerce indicates that the
United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
16 See Volume I of the Petition at 11–14 and
Exhibit I–3.
17 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Antidumping Duty
Investigation Initiation Checklist: Pentafluoroethane
(R–125) from the People’s Republic of China (AD
Initiation Checklist) at Attachment II, Analysis of
Industry Support for the Antidumping and
Countervailing Duty Petitions Covering
Pentafluoroethane (R–125) from the People’s
Republic of China (Attachment II). This checklist is
dated concurrently with this notice and on file
electronically via ACCESS.
18 See Petitioner’s First Supplemental
Questionnaire Response at 2–3 and Exhibit Supp–
I–10b.
19 See Volume I of the Petition at 2–4 and Exhibit
I–1; see also Petitioner’s First Supplemental
Questionnaire Response at Exhibit Supp–I–1.
20 See Volume I of the Petition at 2–4 and Exhibit
I–1; see also Petitioner’s First Supplemental
Questionnaire Response at 2–3 and Exhibits Supp–
I–1 and Supp–I–10b. For further discussion, see
Attachment II of the AD Initiation Checklist.
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petitioner has established industry
support for the Petition. First, the
Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product, and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).21 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.22 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.23 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.24
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at LTFV. In addition,
the petitioner alleges that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.25
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression and suppression; lost
sales and revenues; decline in
employment variables; declining
profitability; adverse impact on capital
expenditures and capacity utilization;
and the magnitude of the alleged
dumping margins.26 We assessed the
allegations and supporting evidence
regarding material injury, threat of
21 See Attachment II of the AD Initiation
Checklist; see also section 732(c)(4)(D) of the Act.
22 See Attachment II of the AD Initiation
Checklist.
23 Id.
24 Id.
25 See Volume I of the Petition at 14–15 and
Exhibit I–8.
26 Id. at 9–10, 14–26 and Exhibits I–2, I–7 through
I–10 and I–13.
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material injury, causation, as well as
negligibility, and we have determined
that these allegations are properly
supported by adequate evidence, and
meet the statutory requirements for
initiation.27
Allegations of Sales at LTFV
The following is a description of the
allegations of sales at LTFV upon which
Commerce based its decision to initiate
the AD investigation of imports of
R–125 from China. The sources of data
for the deductions and adjustments
relating to U.S. price and normal value
(NV) are discussed in greater detail in
the AD Initiation Checklist.
U.S. Price
The petitioner based export price (EP)
on two methodologies: (1) Information
from a sale of R–125 produced in and
exported from China by a Chinese
producer; and (2) transaction-specific
average unit values (AUVs) derived
from publicly-available import data and
tied to ship manifest data obtained from
ImportGenius and Datamyne.28 The
petitioner made adjustment for
movement and other expenses, where
appropriate.29
Normal Value
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Commerce considers China to be an
NME country.30 In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by Commerce. Therefore,
we continue to treat China as an NME
country for purposes of the initiation of
this investigation. Accordingly, NV in
China is appropriately based on FOPs
valued in a surrogate market economy
country, in accordance with section
773(c) of the Act.
The petitioner states that the Russian
Federation (Russia) is an appropriate
surrogate country because Russia is a
market economy country that is at a
level of economic development
comparable to that of China and is a
27 See AD Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering
Pentafluoroethane (R–125) from the People’s
Republic of China (Attachment III).
28 See the AD Initiation Checklist.
29 Id.
30 See, e.g., Antidumping Duty Investigation of
Certain Aluminum Foil from the People’s Republic
of China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017), and accompanying Preliminary
Decision Memorandum at ‘‘China’s Status as a NonMarket Economy,’’ unchanged in Certain
Aluminum Foil from the People’s Republic of
China: Final Determination of Sales at Less Than
Fair Value, 83 FR 9282 (March 5, 2018).
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significant producer of comparable
merchandise.31 The petitioner
submitted publicly-available
information from Russia to value all
FOPs.32 Based on the information
provided by the petitioner, we
determine that it is appropriate to use
Russia as a surrogate country for China
for initiation purposes.
Interested parties will have the
opportunity to submit comments
regarding surrogate country selections
and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs within 30
days before the scheduled date of the
preliminary determination.
Factors of Production
The petitioner used its own productspecific consumption rates as a
surrogate to value Chinese
manufacturers’ FOPs.33 Additionally,
the petitioner calculated factory
overhead; selling, general and
administrative expenses; and profit
based on the experience of a Russian
producer of R–125.34
Fair Value Comparisons
Based on the data provided by the
petitioner, there is reason to believe that
imports of R–125 from China are being,
or are likely to be, sold in the United
States at LTFV. Based on a comparison
of EP to NV, in accordance with sections
772 and 773 of the Act, the estimated
dumping margins for R–125 from China
range from 149.09 percent to 238.83
percent.35
Initiation of LTFV Investigation
Based upon our examination of the
Petition on R–125 from China and
supplemental responses, we find that
the Petition meets the requirements of
section 732 of the Act. Therefore, we are
initiating an AD investigation to
determine whether imports of R–125
from China are being, or are likely to be,
sold in the United States at LTFV. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
31 See Volume II of the Petition at 3 and Exhibits
II–1, II–2.
32 See Petitioner’s First Supplemental
Questionnaire Response at Exhibit Supp-II–11; see
also Petitioner’s Second Supplemental
Questionnaire Response at Exhibit SS–II–11.
33 See Volume II of the Petition at 6 and Exhibit
II–10; see also Petitioner’s First Supplemental
Questionnaire Response at Exhibit Supp–I–1.
34 See Volume II of the Petition at 3 and Exhibits
II–3 and II–12.
35 See Petitioner’s Second Supplemental
Questionnaire Response at Exhibit SS–II–19.
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Respondent Selection
In the Petition, the petitioner named
11 companies in China as producers
and/or exporters of R–125.36
In accordance with our standard
practice for respondent selection in AD
investigations involving NME countries,
Commerce selects respondents based on
quantity and value (Q&V)
questionnaires in cases where it has
determined that the number of
companies is large and it cannot
individually examine each company
based upon its resources. Therefore,
considering the number of producers
and exporters identified in the Petition,
Commerce will solicit Q&V information
that can serve as a basis for selecting
exporters for individual examination in
the event that Commerce decides to
limit the number of respondents
individually examined pursuant to
section 777A(c)(2) of the Act. Because
there are 11 producers and/or exporters
identified in the Petition, Commerce has
determined that it will issue Q&V
questionnaires to each potential
respondent for which the petitioner has
provided a complete address.
In addition, Commerce will post the
Q&V questionnaire along with filing
instructions on E&C’s website at https://
enforcement.trade.gov/questionnaires/
questionnaires-ad.html. Producers/
exporters of R–125 from China that do
not receive Q&V questionnaires may
still submit a response to the Q&V
questionnaire and can obtain a copy of
the Q&V questionnaire from E&C’s
website. In accordance with the
standard practice for respondent
selection in AD cases involving NME
countries, in the event Commerce
decides to limit the number of
respondents individually investigated,
Commerce intends to base respondent
selection on the responses to the Q&V
questionnaire that it receives.
Responses to the Q&V questionnaire
must be submitted by the relevant
Chinese producers/exporters no later
than 5:00 p.m. ET on February 17, 2021.
All Q&V questionnaire responses must
be filed electronically via ACCESS. An
electronically filed document must be
received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the deadline noted above.
Interested parties must submit
applications for disclosure under
Administrative Protective Order (APO)
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on E&C’s website at
https://enforcement.trade.gov/apo.
Commerce intends to finalize its
36 See Volume I of the Petition at 9 and Exhibit
I–11.
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08FEN1
Federal Register / Vol. 86, No. 24 / Monday, February 8, 2021 / Notices
decisions regarding respondent
selection within 20 days of publication
of this notice.
Separate Rates
In order to obtain separate-rate status
in an NME investigation, exporters and
producers must submit a separate-rate
application.37 The specific requirements
for submitting a separate-rate
application in a China investigation are
outlined in detail in the application
itself, which is available on E&C’s
website at https://enforcement.trade.gov/
nme/nme-sep-rate.html. The separaterate application will be due 30 days
after publication of this initiation
notice.38 Producers/exporters who
submit a separate-rate application and
have been selected as mandatory
respondents will be eligible for
consideration for separate-rate status
only if they respond to all parts of
Commerce’s AD questionnaire as
mandatory respondents. Commerce
requires that respondents from China
submit a response to both the Q&V
questionnaire and the separate-rate
application by the respective deadlines
in order to receive consideration for
separate-rate status. Companies not
filing a timely Q&V questionnaire
response will not receive separate rate
consideration.
Use of Combination Rates
Commerce will calculate combination
rates for certain respondents that are
eligible for a separate rate in an NME
investigation. The Separate Rates and
Combination Rates Bulletin states:
jbell on DSKJLSW7X2PROD with NOTICES
{w}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that the {Commerce} will now assign in
its NME Investigation will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
37 See Policy Bulletin 05.1: ‘‘Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving NME
Countries,’’ (April 5, 2005), available at https://
enforcement.trade.gov/policy/bull05-1.pdf (Policy
Bulletin 05.1).
38 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
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20:48 Feb 05, 2021
Jkt 253001
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.39
Distribution of Copies of the AD
Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
Government of China via ACCESS.
Furthermore, to the extent practicable,
Commerce will attempt to provide a
copy of the public version of the
Petition to each exporter named in the
Petition, as provided under 19 CFR
351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
R–125 from China are materially
injuring, or threatening material injury
to, a U.S. industry.40 A negative ITC
determination will result in the
investigation being terminated.41
Otherwise, the investigation will
proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). Section 351.301(b)
of Commerce’s regulations requires any
party, when submitting factual
information, to specify under which
subsection of 19 CFR 351.102(b)(21) the
information is being submitted 42 and, if
the information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.43 Time limits for the
submission of factual information are
39 See
40 See
Policy Bulletin 05.1 at 6 (emphasis added).
section 733(a) of the Act.
41 Id.
42 See
43 See
PO 00000
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
Frm 00010
Fmt 4703
Sfmt 4703
8587
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Interested parties should
review the regulations prior to
submitting factual information in this
investigation.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301 or as otherwise specified by
Commerce. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, Commerce will inform
parties in a letter or memorandum of the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. An extension
request must be made in a separate,
stand-alone submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Parties should review Extension
of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting factual information in this
investigation.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.44
Parties must use the certification
formats provided in 19 CFR
351.303(g).45 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
44 See
section 782(b) of the Act.
Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
45 See
E:\FR\FM\08FEN1.SGM
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8588
Federal Register / Vol. 86, No. 24 / Monday, February 8, 2021 / Notices
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in this investigation
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)). Note
that Commerce has temporarily
modified certain of its requirements for
serving documents containing business
proprietary information until further
notice.46
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: February 1, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement
and Compliance.
jbell on DSKJLSW7X2PROD with NOTICES
Appendix
Scope of the Investigation
The merchandise covered by this
investigation is pentafluoroethane (R–125), or
its chemical equivalent, regardless of form,
type or purity level. R–125 has the Chemical
Abstracts Service (CAS) registry number of
354–33–6 and the chemical formula C2HF5.
R–125 is also referred to as
Pentafluoroethane, Genetron HFC 125,
Khladon 125, Suva 125, Freon 125, and Fc125. Subject merchandise includes R–125,
whether or not incorporated into a blend.
When R–125 is blended with other products,
only the R–125 component of the mixture is
covered by the scope of this investigation.
Subject merchandise also includes R–125
and unpurified R–125 that is processed in a
third country or otherwise outside the
customs territory of the United States,
including, but not limited to, purifying,
blending, 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–125. The scope also includes R–125 that is
commingled with R–125 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–125 is classified under Harmonized
Tariff Schedule of the United States (HTSUS)
subheading 2903.39.2035. Merchandise
subject to the scope may also be entered
under HTSUS subheadings 2903.39.2045 and
3824.78.0020. The HTSUS subheadings and
CAS registry number are provided for
convenience and customs purposes. The
46 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19; Extension
of Effective Period, 85 FR 41363 (July 10, 2020).
VerDate Sep<11>2014
20:48 Feb 05, 2021
Jkt 253001
written description of the scope of the
investigation is dispositive.
[FR Doc. 2021–02529 Filed 2–5–21; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–552–831]
Seamless Refined Copper Pipe and
Tube From the Socialist Republic of
Vietnam: Postponement of Final
Determination of Less-Than-Fair-Value
Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) is postponing the deadline
for issuing the final determination in the
less-than-fair-value (LTFV) investigation
of imports of seamless refined copper
pipe and tube (copper pipe and tube)
from the Socialist Republic of Vietnam
(Vietnam) until June 16, 2021, and is
extending the provisional measures
from a four-month period to a period of
not more than six months.
DATES: Applicable February 8, 2021.
FOR FURTHER INFORMATION CONTACT:
Ariela Garvett, AD/CVD Operations,
Office IV, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–3609.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On July 20, 2020, Commerce initiated
the LTFV investigation of imports of
copper pipe and tube from Vietnam.1
The period of investigation is October 1,
2019, through March 31, 2020. On
February 1, 2021, Commerce published
its Preliminary Determination in this
LTFV investigation.2
Postponement of the Final
Determination
Section 735(a)(2) of the Tariff Act of
1930, as amended (the Act), and 19 CFR
351.210(b)(2) provide that a final
determination may be postponed until
not later than 135 days after the date of
the publication of the preliminary
1 See Seamless Refined Copper Pipe and Tube
from the Socialist Republic of Vietnam: Initiation of
Less-Than-Fair-Value Investigation, 85 FR 47181
(August 4, 2020).
2 See Seamless Refined Copper Pipe and Tube
from the Socialist Republic of Vietnam: Preliminary
Affirmative Determination of Sales at Less Than
Fair Value and Preliminary Negative Determination
of Critical Circumstances, 86 FR 7698 (February 1,
2021) (Preliminary Determination).
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
determination if, in the event of an
affirmative preliminary determination, a
request for such postponement is made
by the exporters or producers who
account for a significant portion of
exports of the subject merchandise, or in
the event of a negative preliminary
determination, a request for such
postponement is made by the petitioner.
Further, 19 CFR 351.210(e)(2) requires
that such postponement requests by
exporters be accompanied by a request
for extension of provisional measures
from a four-month period to a period of
not more than six months, in
accordance with section 733(d) of the
Act.
On January 28, 2021, Hailiang
(Vietnam) Copper Manufacturing
Company Limited/Hongkong Hailiang
Metal Trading Limited (also known as
Hong Kong Hailiang Metal Trading
Limited) (Hailiang Vietnam/Hongkong
Hailiang), the sole mandatory
respondent in this investigation,
requested that Commerce postpone the
deadline for the final determination
until no later than 135 days from the
publication of the Preliminary
Determination and extend the
application of the provisional measures
from a four-month period to a period of
not more than six months.3
Additionally, on January 28, 2021, the
American Copper Tube Coalition and its
constituent members 4 (the petitioners)
requested that Commerce postpone the
deadline for the final determination.5 In
accordance with section 735(a)(2)(A) of
the Act and 19 CFR 351.210(b)(2)(ii),
because: (1) The preliminary
determination was affirmative; (2) the
request was made by the exporter and
producer who accounts for a significant
proportion of exports of the subject
merchandise; and (3) no compelling
reasons for denial exist, Commerce is
postponing the final determination until
no later than 135 days after the date of
the publication of the Preliminary
Determination and extending the
provisional measures from a four-month
period to a period of not more than six
months. Accordingly, Commerce will
3 See Hailiang Vietnam/Hongkong Hailiang’s
Letter, ‘‘Hailiang Request to Postpone Final
Determination in the Less-Than-Fair-Value
Investigation of Seamless Refined Copper Pipe and
Tube from the Socialist Republic of Vietnam: (A–
552–831),’’ dated January 28, 2021.
4 The members of the American Copper Tube
Coalition are Mueller Copper Tube Products, Inc.,
Mueller Copper Tube West Co., Mueller Copper
Tube Company, Inc., Howell Metal Company, and
Linesets, Inc. (collectively, Mueller Group) and
Cerro Flow Products, LLC.
5 See Petitioners’ Letter, ‘‘Seamless Refined
Copper Pipe and Tube from Vietnam: Confirmation
of No Objection to Extension of Final Results,’’
dated January 28, 2021.
E:\FR\FM\08FEN1.SGM
08FEN1
Agencies
[Federal Register Volume 86, Number 24 (Monday, February 8, 2021)]
[Notices]
[Pages 8583-8588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02529]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-137]
Pentafluoroethane (R-125) From the People's Republic of China:
Initiation of Less-Than-Fair-Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable February 1, 2021.
FOR FURTHER INFORMATION CONTACT: Benjamin A. Luberda or Alex Wood, AD/
CVD Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2185 or (202) 482-1959,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On January 12, 2021, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
pentafluoroethane (R-125) from the People's Republic of China (China)
filed in proper form on behalf of Honeywell International, Inc. (the
petitioner), the sole domestic producer of R-125.\1\ The Petition was
accompanied by a countervailing duty (CVD) petition
[[Page 8584]]
concerning imports of R-125 from China.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties: R-125 (Pentafluoroethane)
from the People's Republic of China,'' dated January 12, 2021 (the
Petition) at Volume I and Exhibit I-1.
\2\ Id.
---------------------------------------------------------------------------
On January 14, 22, and 27, 2021, Commerce requested supplemental
information pertaining to certain aspects of the Petition in separate
supplemental questionnaires and a phone call with the petitioner.\3\ On
January 19, 25, and 28, 2021, the petitioner filed timely responses to
these requests for additional information.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Petition for the Imposition of
Antidumping Duties on Imports of Pentafluoroethane (R-125) from the
People's Republic of China: Supplemental Questions'' and ``Petitions
for the Imposition of Antidumping and Countervailing Duties on
Imports of Pentafluoroethane (R-125) from the People's Republic of
China: Supplemental Questions,'' both dated January 14, 2021
(General Issues Supplemental); see also Memorandum, ``Petitions for
the Imposition of Antidumping and Countervailing Duties on Imports
of Pentafluoroethane (R-125) from the People's Republic of China:
Phone Call with Counsel to the Petitioner,'' dated January 22, 2021
(Phone Call with Petitioner's Counsel); and Memorandum, ``Petitions
for the Imposition of Antidumping and Countervailing Duties on
Imports of Pentafluoroethane (R-125) from the People's Republic of
China: Phone Call with Counsel to the Petitioner,'' dated January
27, 2021 (Second Phone Call with Petitioner's Counsel).
\4\ See Petitioner's Letter, ``R-125 (Pentafluoroethane) from
the People's Republic of China: Honeywell International Inc.'s
Supplemental Questionnaire Response,'' dated January 19, 2021
(Petitioner's First Supplemental Questionnaire Response); see also
Petitioner's Letter, ``R-125 (Pentafluoroethane) from the People's
Republic of China: Honeywell International Inc.'s Second
Supplemental Questionnaire Response,'' dated January 25, 2021
(Petitioner's Second Supplemental Questionnaire Response); and
Petitioner's Letter, ``R-125 (Pentafluoroethane) from the People's
Republic of China: Honeywell International Inc.'s Third Supplemental
Questionnaire Response,'' dated January 28, 2021 (Petitioner's Third
Supplemental Questionnaire Response).
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of R-125 from
China are being, or are likely to be, sold in the United States at less
than fair value (LTFV) within the meaning of section 731 of the Act and
that imports of such products are materially injuring, or threatening
material injury to, the domestic R-125 industry in the United States.
Consistent with section 732(b)(1) of the Act, the Petition is
accompanied by information reasonably available to the petitioner
supporting the allegation.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party, as
defined in section 771(9)(C) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support for the initiation
of the requested AD investigation.\5\
---------------------------------------------------------------------------
\5\ See ``Determination of Industry Support for the Petition''
section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because China is a non-market economy (NME) country, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) is July 1, 2020,
through December 31, 2020.
Scope of the Investigation
The product covered by this investigation is R-125 from China. For
a full description of the scope of this investigation, see the appendix
to this notice.
Comments on the Scope of the Investigation
On January 14, 22, and 27, 2021, Commerce requested further
information from the petitioner regarding the proposed scope to ensure
that the scope language in the Petition is an accurate reflection of
the products for which the domestic industry is seeking relief.\6\ On
January 19 and 28, 2021, the petitioner revised the scope.\7\ The
description of the merchandise covered by this investigation, as
described in the appendix to this notice, reflects these
clarifications.
---------------------------------------------------------------------------
\6\ See General Issues Supplemental at 3; see also Phone Call
with Petitioner's Counsel at 1; and Second Phone Call with
Petitioner's Counsel at 1.
\7\ See Petitioner's First Supplemental Questionnaire Response
at 1-2; see also Petitioner's Third Supplemental Questionnaire
Response at 1-2.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\8\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information, all such
factual information should be limited to public information.\9\ To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on February 22, 2021, which is the next business day after 20
calendar days from the signature date of this notice.\10\ Any rebuttal
comments, which may include factual information, must be filed by 5:00
p.m. ET on March 4, 2021, which is 10 calendar days from the initial
comment deadline.\11\
---------------------------------------------------------------------------
\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ Commerce's practice dictates that where a deadline falls on
a weekend or Federal holiday (in this instance, February 21, 2021),
the appropriate deadline is the next business day. See Notice of
Clarification: Application of ``Next Business Day'' Rule for
Administrative Determination Deadlines Pursuant to the Tariff Act of
1930, As Amended, 70 FR 24533 (May 10, 2005) (Next Business Day
Rule).
\11\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information parties consider
relevant to the scope of the investigation be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All scope submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's (E&C's) Antidumping Duty and
Countervailing Duty Centralized Electronic Service System (ACCESS),
unless an exception applies.\12\ An electronically filed document must
be received successfully in its entirety by the time and date it is
due.
---------------------------------------------------------------------------
\12\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------
Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of R-125 to be reported in
response to Commerce's AD questionnaires. This information will be used
to identify the key physical characteristics of the subject merchandise
in order to report the relevant factors of production (FOPs)
accurately, as well as to develop appropriate product-comparison
criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaires, all
product characteristics comments must be filed by 5:00 p.m. ET on
February 22, 2021, which is the next business day after 20 calendar
days from the signature date of this notice.\13\ Any
[[Page 8585]]
rebuttal comments, which may include factual information, must be filed
by 5:00 p.m. ET on March 4, 2021, which is ten calendar days after the
initial comment deadline. All comments and submissions to Commerce must
be filed electronically using ACCESS, as explained above, on the record
of the AD investigation.
---------------------------------------------------------------------------
\13\ See 19 CFR 351.303(b). Commerce practice dictates that
where a deadline falls on a weekend or Federal holiday (in this
instance, February 21, 2021), the appropriate deadline is the next
business day. See Next Business Day Rule, 70 FR at 24533.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
---------------------------------------------------------------------------
\14\ See section 771(10) of the Act.
\15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp. v. United States, 688 F. Supp. 639,
644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\16\ Based on our analysis of the information
submitted on the record, we have determined that R-125, as defined in
the scope, constitutes a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\17\
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\16\ See Volume I of the Petition at 11-14 and Exhibit I-3.
\17\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Antidumping Duty Investigation Initiation Checklist:
Pentafluoroethane (R-125) from the People's Republic of China (AD
Initiation Checklist) at Attachment II, Analysis of Industry Support
for the Antidumping and Countervailing Duty Petitions Covering
Pentafluoroethane (R-125) from the People's Republic of China
(Attachment II). This checklist is dated concurrently with this
notice and on file electronically via ACCESS.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2020.\18\ The petitioner
states that there are no other known U.S. producers of R-125;
therefore, the Petition is supported by 100 percent of the U.S.
industry.\19\ We relied on data provided by the petitioner for purposes
of measuring industry support.\20\
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\18\ See Petitioner's First Supplemental Questionnaire Response
at 2-3 and Exhibit Supp-I-10b.
\19\ See Volume I of the Petition at 2-4 and Exhibit I-1; see
also Petitioner's First Supplemental Questionnaire Response at
Exhibit Supp-I-1.
\20\ See Volume I of the Petition at 2-4 and Exhibit I-1; see
also Petitioner's First Supplemental Questionnaire Response at 2-3
and Exhibits Supp-I-1 and Supp-I-10b. For further discussion, see
Attachment II of the AD Initiation Checklist.
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Our review of the data provided in the Petition, the Petitioner's
First Supplemental Questionnaire Response, and other information
readily available to Commerce indicates that the petitioner has
established industry support for the Petition. First, the Petition
established support from domestic producers (or workers) accounting for
more than 50 percent of the total production of the domestic like
product, and, as such, Commerce is not required to take further action
in order to evaluate industry support (e.g., polling).\21\ Second, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 732(c)(4)(A)(i) of the Act because the
domestic producers (or workers) who support the Petition account for at
least 25 percent of the total production of the domestic like
product.\22\ Finally, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(ii)
of the Act because the domestic producers (or workers) who support the
Petition account for more than 50 percent of the production of the
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petition.\23\
Accordingly, Commerce determines that the Petition was filed on behalf
of the domestic industry within the meaning of section 732(b)(1) of the
Act.\24\
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\21\ See Attachment II of the AD Initiation Checklist; see also
section 732(c)(4)(D) of the Act.
\22\ See Attachment II of the AD Initiation Checklist.
\23\ Id.
\24\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\25\
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\25\ See Volume I of the Petition at 14-15 and Exhibit I-8.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression and
suppression; lost sales and revenues; decline in employment variables;
declining profitability; adverse impact on capital expenditures and
capacity utilization; and the magnitude of the alleged dumping
margins.\26\ We assessed the allegations and supporting evidence
regarding material injury, threat of
[[Page 8586]]
material injury, causation, as well as negligibility, and we have
determined that these allegations are properly supported by adequate
evidence, and meet the statutory requirements for initiation.\27\
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\26\ Id. at 9-10, 14-26 and Exhibits I-2, I-7 through I-10 and
I-13.
\27\ See AD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering
Pentafluoroethane (R-125) from the People's Republic of China
(Attachment III).
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate the AD investigation
of imports of R-125 from China. The sources of data for the deductions
and adjustments relating to U.S. price and normal value (NV) are
discussed in greater detail in the AD Initiation Checklist.
U.S. Price
The petitioner based export price (EP) on two methodologies: (1)
Information from a sale of R-125 produced in and exported from China by
a Chinese producer; and (2) transaction-specific average unit values
(AUVs) derived from publicly-available import data and tied to ship
manifest data obtained from ImportGenius and Datamyne.\28\ The
petitioner made adjustment for movement and other expenses, where
appropriate.\29\
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\28\ See the AD Initiation Checklist.
\29\ Id.
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Normal Value
Commerce considers China to be an NME country.\30\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of this investigation. Accordingly, NV in
China is appropriately based on FOPs valued in a surrogate market
economy country, in accordance with section 773(c) of the Act.
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\30\ See, e.g., Antidumping Duty Investigation of Certain
Aluminum Foil from the People's Republic of China: Affirmative
Preliminary Determination of Sales at Less-Than-Fair Value and
Postponement of Final Determination, 82 FR 50858, 50861 (November 2,
2017), and accompanying Preliminary Decision Memorandum at ``China's
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 83 FR 9282 (March 5, 2018).
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The petitioner states that the Russian Federation (Russia) is an
appropriate surrogate country because Russia is a market economy
country that is at a level of economic development comparable to that
of China and is a significant producer of comparable merchandise.\31\
The petitioner submitted publicly-available information from Russia to
value all FOPs.\32\ Based on the information provided by the
petitioner, we determine that it is appropriate to use Russia as a
surrogate country for China for initiation purposes.
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\31\ See Volume II of the Petition at 3 and Exhibits II-1, II-2.
\32\ See Petitioner's First Supplemental Questionnaire Response
at Exhibit Supp-II-11; see also Petitioner's Second Supplemental
Questionnaire Response at Exhibit SS-II-11.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selections and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
The petitioner used its own product-specific consumption rates as a
surrogate to value Chinese manufacturers' FOPs.\33\ Additionally, the
petitioner calculated factory overhead; selling, general and
administrative expenses; and profit based on the experience of a
Russian producer of R-125.\34\
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\33\ See Volume II of the Petition at 6 and Exhibit II-10; see
also Petitioner's First Supplemental Questionnaire Response at
Exhibit Supp-I-1.
\34\ See Volume II of the Petition at 3 and Exhibits II-3 and
II-12.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of R-125 from China are being, or are likely to
be, sold in the United States at LTFV. Based on a comparison of EP to
NV, in accordance with sections 772 and 773 of the Act, the estimated
dumping margins for R-125 from China range from 149.09 percent to
238.83 percent.\35\
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\35\ See Petitioner's Second Supplemental Questionnaire Response
at Exhibit SS-II-19.
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Initiation of LTFV Investigation
Based upon our examination of the Petition on R-125 from China and
supplemental responses, we find that the Petition meets the
requirements of section 732 of the Act. Therefore, we are initiating an
AD investigation to determine whether imports of R-125 from China are
being, or are likely to be, sold in the United States at LTFV. In
accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 140 days after the date of this initiation.
Respondent Selection
In the Petition, the petitioner named 11 companies in China as
producers and/or exporters of R-125.\36\
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\36\ See Volume I of the Petition at 9 and Exhibit I-11.
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In accordance with our standard practice for respondent selection
in AD investigations involving NME countries, Commerce selects
respondents based on quantity and value (Q&V) questionnaires in cases
where it has determined that the number of companies is large and it
cannot individually examine each company based upon its resources.
Therefore, considering the number of producers and exporters identified
in the Petition, Commerce will solicit Q&V information that can serve
as a basis for selecting exporters for individual examination in the
event that Commerce decides to limit the number of respondents
individually examined pursuant to section 777A(c)(2) of the Act.
Because there are 11 producers and/or exporters identified in the
Petition, Commerce has determined that it will issue Q&V questionnaires
to each potential respondent for which the petitioner has provided a
complete address.
In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at https://enforcement.trade.gov/questionnaires/questionnaires-ad.html. Producers/exporters of R-125
from China that do not receive Q&V questionnaires may still submit a
response to the Q&V questionnaire and can obtain a copy of the Q&V
questionnaire from E&C's website. In accordance with the standard
practice for respondent selection in AD cases involving NME countries,
in the event Commerce decides to limit the number of respondents
individually investigated, Commerce intends to base respondent
selection on the responses to the Q&V questionnaire that it receives.
Responses to the Q&V questionnaire must be submitted by the
relevant Chinese producers/exporters no later than 5:00 p.m. ET on
February 17, 2021. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
Administrative Protective Order (APO) in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
E&C's website at https://enforcement.trade.gov/apo. Commerce intends to
finalize its
[[Page 8587]]
decisions regarding respondent selection within 20 days of publication
of this notice.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\37\
The specific requirements for submitting a separate-rate application in
a China investigation are outlined in detail in the application itself,
which is available on E&C's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30
days after publication of this initiation notice.\38\ Producers/
exporters who submit a separate-rate application and have been selected
as mandatory respondents will be eligible for consideration for
separate-rate status only if they respond to all parts of Commerce's AD
questionnaire as mandatory respondents. Commerce requires that
respondents from China submit a response to both the Q&V questionnaire
and the separate-rate application by the respective deadlines in order
to receive consideration for separate-rate status. Companies not filing
a timely Q&V questionnaire response will not receive separate rate
consideration.
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\37\ See Policy Bulletin 05.1: ``Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving NME Countries,'' (April 5, 2005), available at https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
\38\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the {Commerce{time} will
now assign in its NME Investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\39\
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\39\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the Government of China via ACCESS. Furthermore, to the
extent practicable, Commerce will attempt to provide a copy of the
public version of the Petition to each exporter named in the Petition,
as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of R-125 from China are materially injuring, or
threatening material injury to, a U.S. industry.\40\ A negative ITC
determination will result in the investigation being terminated.\41\
Otherwise, the investigation will proceed according to statutory and
regulatory time limits.
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\40\ See section 733(a) of the Act.
\41\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \42\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\43\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in this investigation.
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\42\ See 19 CFR 351.301(b).
\43\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301 or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\44\
Parties must use the certification formats provided in 19 CFR
351.303(g).\45\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\44\ See section 782(b) of the Act.
\45\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On
[[Page 8588]]
January 22, 2008, Commerce published Antidumping and Countervailing
Duty Proceedings: Documents Submission Procedures; APO Procedures, 73
FR 3634 (January 22, 2008). Parties wishing to participate in this
investigation should ensure that they meet the requirements of these
procedures (e.g., the filing of letters of appearance as discussed at
19 CFR 351.103(d)). Note that Commerce has temporarily modified certain
of its requirements for serving documents containing business
proprietary information until further notice.\46\
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\46\ 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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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: February 1, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise covered by this investigation is
pentafluoroethane (R-125), or its chemical equivalent, regardless of
form, type or purity level. R-125 has the Chemical Abstracts Service
(CAS) registry number of 354-33-6 and the chemical formula
C2HF5. R-125 is also referred to as
Pentafluoroethane, Genetron HFC 125, Khladon 125, Suva 125, Freon
125, and Fc-125. Subject merchandise includes R-125, whether or not
incorporated into a blend. When R-125 is blended with other
products, only the R-125 component of the mixture is covered by the
scope of this investigation. Subject merchandise also includes R-125
and unpurified R-125 that is processed in a third country or
otherwise outside the customs territory of the United States,
including, but not limited to, purifying, blending, 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-125. The scope also includes R-125
that is commingled with R-125 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-125 is classified under Harmonized Tariff Schedule of the
United States (HTSUS) subheading 2903.39.2035. Merchandise subject
to the scope may also be entered under HTSUS subheadings
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.
[FR Doc. 2021-02529 Filed 2-5-21; 8:45 am]
BILLING CODE 3510-DS-P