Pentafluoroethane (R-125) From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part, 1117-1120 [2022-00178]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 87, Number 6 (Monday, January 10, 2022)]
[Notices]
[Pages 1117-1120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00178]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-137]


Pentafluoroethane (R-125) From the People's Republic of China: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Final Affirmative Determination of Critical Circumstances, in Part

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
pentafluoroethane (R-125) 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 is July 1, 2020, through 
December 31, 2020. The final dumping margins of sales at LTFV is listed 
below in the ``Final Determination'' section of this notice.

DATES: Applicable January 10, 2022.

FOR FURTHER INFORMATION CONTACT: Alex Wood or Benjamin A. Luberda, 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) 482-1959 or (202) 
482-2185, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 17, 2021, Commerce published the Preliminary 
Determination of sales at LTFV of R-125 from China.\1\ The petitioner 
in this investigation is Honeywell International Inc. The mandatory 
respondents in this investigation are Zhejiang Sanmei Chemical Ind. 
Co., Ltd. (Sanmei) and Zhejiang Quzhou Juxin Fluorine Chemical Co., 
Ltd. (Juxin).
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    \1\ See Pentafluoroethane (R-125) from the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, in Part, Postponement of Final Determination, and 
Extension of Provisional Measures, 86 FR 45959 (August 17, 2021) 
(Preliminary Determination).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by the parties for this final determination, are discussed in 
the Issues and Decision Memorandum.\2\ The Issues and 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. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Pentafluoroethane (R-125) from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is R-125 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,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. We addressed these comments in the Preliminary 
Determination and preliminarily modified the scope of this and the 
companion countervailing duty (CVD) investigation.\5\ We established a 
period of time for parties to address scope issues in scope case and 
rebuttal briefs,\6\ and we received such comments, which we addressed 
in the Final Scope Decision Memorandum.\7\ After analyzing interested 
parties' comments, we made certain changes to the scope of this and the 
concurrent CVD investigation that published in the Preliminary 
Determination. See Appendix I to this notice.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Pentafluoroethane (R-125) from the People's Republic of 
China: Initiation of Less-Than-Fair-Value Investigation, 86 FR 8583 
(February 8, 2021) (Initiation Notice).
    \5\ See Preliminary Determination, 86 FR at 45960; see also 
Memorandum, ``Preliminary Scope Decision Memorandum,'' dated August 
10, 2021 (Preliminary Scope Decision Memorandum).
    \6\ See Preliminary Scope Decision Memorandum at 2-3.
    \7\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
concurrently with, and hereby adopted by, this notice (Final Scope 
Decision Memorandum).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised is attached to this notice as Appendix II.

[[Page 1118]]

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\8\
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    \8\ See Commerce's Letter, ``Zhejiang Sanmei Chemical Ind. Co., 
Ltd. Verification Questionnaire,'' dated September 9, 2021; see also 
Sanmei's Letter, ``Submission of Zhejiang Sanmei's Verification 
Response,'' dated September 20, 2021.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to the AD margin calculation for 
Sanmei.\9\
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    \9\ See Issues and Decision Memorandum.
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Final Affirmative Determination of Critical Circumstances

    We continue to find that critical circumstances exist for imports 
of R-125 from China for the non-selected companies receiving a separate 
rate and the China-wide entity pursuant to sections 735(a)(3)(A) and 
(B) of the Act and 19 CFR 351.206.\10\
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    \10\ See Issues and Decision Memorandum at ``VIII. Affirmative 
Determination of Critical Circumstances, in Part'' and Comment 1.
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China-Wide Entity and the Use of Adverse Facts Available

    For the reasons explained in the Preliminary Determination, we 
continue to find that the use of adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act, is warranted in 
determining the rate for the China-wide entity.\11\ In selecting the 
AFA rate for the China-wide entity, Commerce's practice is to select a 
rate that is sufficiently adverse to ensure that the uncooperative 
party does not obtain a more favorable result by failing to cooperate 
than if it had fully cooperated.\12\ As AFA, we assigned the China-wide 
entity a dumping margin of 278.05 percent, which is the highest 
transaction-specific rate calculated for Sanmei for the final 
determination.\13\ Because this constitutes primary information 
calculated in the normal course of the investigation, the statutory 
corroboration requirement in section 776(c) of the Act does not apply.
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    \11\ The China-wide entity includes those companies who did not 
submit a separate rate application and Juxin, which withdrew from 
participation as a mandatory respondent in this investigation.
    \12\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December 
27, 2004), unchanged in Notice of Final Determination of Sales at 
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland, 
70 FR 28279 (May 17, 2005).
    \13\ See Issues and Decision Memorandum at ``IV. Use of Adverse 
Facts Available.''
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Separate Rates

    For the final determination, we continue to find that Sanmei and 
certain non-individually examined respondents are eligible for separate 
rates. Generally, Commerce looks to section 735(c)(5)(A) of the Act, 
which provides instructions for calculating the all-others rate in an 
investigation, for guidance when calculating the rate for separate rate 
respondents that we did not individually examine. Because the only 
individually calculated dumping margin for Sanmei is not zero, de 
minimis, or based entirely on facts otherwise available, the estimated 
weighted-average dumping margin calculated for Sanmei is the margin 
assigned to all other non-individually-examined separate rate 
recipients, pursuant to section 735(c)(5)(A) of the Act

Combination Rates

    In the Initiation Notice,\14\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. 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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    \14\ See Initiation Notice, 86 FR at 8587.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

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                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Producer                                 Exporter                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
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Zhejiang Sanmei Chemical Ind. Co., Ltd........  Zhejiang Sanmei Chemical Ind.             277.95          267.41
                                                 Co., Ltd.
Fujian Qingliu Dongying Chemical Ind. Co., Ltd  Zhejiang Sanmei Chemical Ind.             277.95          267.41
                                                 Co., Ltd.
Producers Supplying the Non-Individually-       Non-Individually-Examined                 277.95          267.41
 Examined Exporters Receiving Separate Rates     Exporters Receiving Separate
 (see Appendix III).                             Rates (see Appendix III).
                                                                                 -------------------------------
China-Wide Entity \15\........................  ................................          278.05          267.51
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Disclosure

    Commerce intends to disclose the calculations performed in 
connection with this final determination within five days of the date 
of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b)
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    \15\ The China-Wide Entity also includes Juxin.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of R-125 from Sanmei, 
the separate rates companies, and the China-wide entity.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce makes an affirmative determination for domestic subsidy 
pass-through or export subsidies, Commerce offsets the calculated 
estimated weighted-average dumping margin by the appropriate rate(s). 
In this case, we made a negative determination for domestic subsidy 
pass-through for all respondents,\16\ but we found export

[[Page 1119]]

subsidies for all respondents.\17\ However, suspension of liquidation 
for provisional measures in the companion CVD case has been 
discontinued; therefore, we are not instructing CBP to collect cash 
deposits based upon the adjusted estimated weighted-average dumping 
margin for those export subsidies at this time.
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    \16\ See Issues and Decision Memorandum at ``VI. Adjustment 
Under Section 777A(f) of the Act.''
    \17\ Id. at ``VII. Adjustments to Cash Deposit Rates for Export 
Subsidies.''
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    Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the 
publication of this notice, Commerce will instruct CBP to require a 
cash deposit equal to the weighted-average amount by which normal value 
exceeds U.S. price as follows: (1) The cash deposit rate for the 
exporter/producer combination listed in the table above or in Appendix 
III will be the rate identified for that combination in that table or 
Appendix III; (2) for all combinations of exporters/producers of 
merchandise under consideration that have not received their own 
separate rate, the cash deposit rate will be the cash deposit rate 
established for the China-wide entity; and (3) for all non-Chinese 
exporters of the merchandise under consideration that have not received 
their own separate rate, the cash deposit rate will be the cash deposit 
rate applicable to the Chinese exporter/producer combination that 
supplied that non-Chinese exporter. These suspension of liquidation 
instructions will remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. Because the 
final determination in this proceeding is affirmative, in accordance 
with section 735(b)(2) of the Act, the ITC will make its final 
determination as to whether the domestic industry in the United States 
is materially injured, or threatened with material injury, by reason of 
imports of R-125 from China no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated, and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an AD order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties on all 
imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an administrative protective order (APO) of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: December 30, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

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.
    R-125 contained in blends that do not conform to ANSI/ASHRAE 
Standard 34 is included in the scope of this investigation when R-
125 constitutes the largest relative component by volume, on an 
actual percentage basis, of the blend.\18\ However, R-125 
incorporated into a blend that conforms to ANSI/ASHRAE Standard 34 
is excluded from the scope of this investigation. When R-125 is 
blended with other products and otherwise falls under the scope of 
this investigation, only the R-125 component of the mixture is 
covered by the scope of this investigation.
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    \18\ ``Largest relative component by volume, on an actual 
percentage basis'' means that the percentage of R-125 contained in a 
blend is larger than the individual percentages of all the other 
components. For example, R-125 contained in a blend that does not 
conform to ANSI/ASHRAE Standard 34 and which contains 35% R-125 by 
volume is covered by the scope of the investigation if no other 
component part of the blend equals or exceeds 35% of the volume of 
the blend.
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    Subject merchandise also includes purified 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 the 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 scope is merchandise covered by the scope of 
the antidumping order on Hydrofluorocarbon Blends from the People's 
Republic of China, including merchandise subject to the affirmative 
anti-circumvention determination in Hydrofluorocarbon Blends from 
the People's Republic of China: Affirmative Final Determination of 
Circumvention of the Antidumping Duty Order; Unfinished R-32/R-125 
Blends, 85 FR 15428 (March 18, 2020). 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 and 2903.39.2038. 
Merchandise subject to the scope may also be entered under HTSUS 
subheadings 2903.39.2045, 3824.78.0020, and 3824.78.0050. 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Adverse Facts Available
V. Changes Since the Preliminary Determination
VI. Adjustment Under Section 777A(f) of the Act
VII. Adjustments to Cash Deposit Rates for Export Subsidies
VIII. Affirmative Determination of Critical Circumstances, in Part
IX. Discussion of the Issues
    General Issues
    Comment 1: Critical Circumstances
    Sanmei-Specific Issues
    Comment 2: Whether To Exclude Sanmei's Sales to T.T. 
International Co., Ltd.
    Comment 3: Commerce's Preliminary Application of Facts Available
    Comment 3A: Application of Adverse Facts Available
    Comment 3B: Valuation of the Intermediate Input Anhydrous 
Fluoride
    Comment 3C: Valuation of Sanmei's Steam Input
    Comment 3D: By-Product Offsets
    Comment 3E: Whether Sanmei Properly Reported Factors of 
Production
    Comment 3F: Added Inland Movement Expense for Imported 
Perchloroethylene
    Comment 4: Sanmei's Market Economy Purchases
    Surrogate Values

[[Page 1120]]

    Comment 5: Calculation of the Truck Freight Surrogate Value
    Comment 6: Financial Statements
X. Recommendation

Appendix III

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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Huantai Dongyue International Trade Co.  Jinhua Binglong Chemical
 Ltd.                                     Technology Co., Ltd.
Shandong Dongyue Chemical Co., Ltd.....  Shandong Dongyue Chemical Co.,
                                          Ltd.
Shandong Huaan New Material Co., Ltd...  Shandong Huaan New Material
                                          Co., Ltd.
T.T. International Co., Ltd./T.T.        Sinochem Environmental
 International Co., Limited \19\.         Protection Chemicals (Taicang)
                                          Co., Ltd.
T.T. International Co., Ltd./T.T.        Zhejiang Quhua Fluor-Chemistry
 International Co., Limited.              Co., Ltd.
T.T. International Co., Ltd./T.T.        Zhejiang Sanmei Chemical
 International Co., Limited.              Industry. Co., Ltd.
Zhejiang Yonghe Refrigerant Co., Ltd...  Jinhua Yonghe Fluorochemical
                                          Co., Ltd.
Zibo Feiyuan Chemical Co., Ltd.........  Zibo Feiyuan Chemical Co., Ltd.
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[FR Doc. 2022-00178 Filed 1-7-22; 8:45 am]
BILLING CODE 3510-DS-P