Pentafluoroethane (R-125) From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 1110-1112 [2022-00180]
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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Notices
the comments must be received in the
regional office within 30 days following
the meeting. Written comments may be
emailed to Sarah Villanueva at
svillanueva@usccr.gov. Persons who
desire additional information may
contact the Regional Programs Unit at
(312) 353–8311.
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Agenda
I. Welcome and Roll Call
II. Approval of Minutes: December 8,
2021
III. Discussion of Civil Asset Forfeiture
in Georgia
IV. Discussion of Next Steps
V. Public Comment
VI. Adjournment
Dated: January 4, 2022.
David Mussatt,
Supervisory Chief, Regional Programs Unit.
[FR Doc. 2022–00163 Filed 1–7–22; 8:45 am]
BILLING CODE P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–138]
Pentafluoroethane (R-125) From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and/or exporters
of pentafluoroethane (R-125) from the
People’s Republic of China (China). The
period of investigation is January 1,
2020, through December 31, 2020.
DATES: Applicable January 10, 2022.
FOR FURTHER INFORMATION CONTACT:
Adam Simons, 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) 482–6172.
khammond on DSKJM1Z7X2PROD with NOTICES
AGENCY:
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SUPPLEMENTARY INFORMATION:
Background
On June 25, 2021, Commerce
published the Preliminary
Determination.1 The petitioner in this
investigation is Honeywell
International, Inc. In addition to the
Government of China, the mandatory
respondents in this investigation are
Zhejiang Quzhou Juxin Fluorine
Chemical Co., Ltd. (Juxin) and Zhejiang
Sanmei Chemical Ind. Co., Ltd.
(Sanmei).
A summary of the events that
occurred since Commerce published the
Preliminary Determination and a full
discussion of the issues raised by parties
for this final determination are provided
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.
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 AD Preliminary
Determination and preliminarily
modified the scope of this and the
companion antidumping duty
1 See Pentafluoroethane (R-125) from the People’s
Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping
Duty Determination, 86 FR 33648 (June 25, 2021),
and accompanying Preliminary Decision
Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty 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).
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 Countervailing Duty
Investigation, 86 FR 8589 (February 8, 2021)
(Initiation Notice).
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Fmt 4703
Sfmt 4703
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.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues that parties raised is
attached to this notice as Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.8 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce relied, in part on facts
otherwise available, and because it
found that one or more respondents did
not act to the best of their ability to
respond to Commerce’s requests for
information, it drew an adverse
inference, where appropriate, in
selecting from among the facts
available.9 As described in the
Preliminary Determination, we applied
an adverse inference in the selection of
facts available for determining a subsidy
5 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) (AD
Preliminary Determination) 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).
8 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
9 See sections 776(a) and 776(b) of the Act.
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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Notices
rate for the four companies that did not
respond to Commerce’s quantity and
value (Q&V) questionnaire: Arkema
Daikin Advanced Fluorochemicals
(Changsu) Co., Ltd.; Daikin
Fluorochemicals (China) Co., Ltd.;
Hongkong Richmax Ltd.; and Weitron
International Refrigeration Equipment
(Kunshan) Co., Ltd.10 For a full
discussion of our application of adverse
facts available (AFA), see the
Preliminary Determination.11
Verification
Commerce was unable to conduct onsite 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 Act.12
Changes Since the Preliminary
Determination
Based on our review and the analysis
of the comments received from parties
and our verification findings, we made
changes to our subsidy rate calculations
for Juxin and Sanmei. As a result of
these changes, Commerce also revised
the all-others rate. Commerce also
revised the AFA rate applied to the
companies which did not respond to the
Q&V questionnaire to include the
subsidy programs included in the PostPreliminary Analysis Memo.13 For a
discussion of these changes, see the
Issues and Decision Memorandum.
Final Determination
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated subsidy
rates for Juxin and Sanmei. Section
705(c)(5)(A)(i) of the Act states that, for
companies not individually
investigated, Commerce will determine
an all-others rate equal to the weightedaverage countervailable subsidy rates
established for exporters and/or
producers individually investigated,
excluding any zero and de minimis
countervailable subsidy rates, and any
rates determined entirely under section
776 of the Act. Therefore, Commerce
calculated the all-others rate using a
weighted average of the individual
estimated subsidy rates calculated for
the examined respondents using each
company’s publicly ranged sales data.14
Commerce determines that the
following total estimated net
countervailable subsidy rates exist:
Subsidy rate
(percent)
Company
Arkema Daikin Advanced Fluorochemicals (Changsu) Co., Ltd .........................................................................................................
Daikin Fluorochemicals (China) Co., Ltd .............................................................................................................................................
Hongkong Richmax Ltd .......................................................................................................................................................................
Weitron International Refrigeration Equipment (Kunshan) Co., Ltd ....................................................................................................
Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd15 ........................................................................................................................
Zhejiang Sanmei Chemical Ind. Co., Ltd16 .........................................................................................................................................
All Others .............................................................................................................................................................................................
Disclosure
Continuation of Suspension of
Liquidation
As a result of our Preliminary
Determination, and pursuant to sections
703(d)(1)(B) and (d)(2) of the Act,
Commerce instructed U.S. Customs and
Border Protection (CBP) to suspend
liquidation of entries of subject
merchandise as described in the scope
of the investigation section, that were
entered, or withdrawn from warehouse,
for consumption on or after June 25,
2021, the date of publication of the
Preliminary Determination in the
Federal Register. In accordance with
section 703(d) of the Act, we instructed
10 See
Preliminary Decision Memorandum at 6–
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18.
11 Id. at ‘‘Use of Facts Otherwise Available and
Adverse Inferences.’’
12 See Juxin’s Letter, ‘‘Submission of In-Lieu-ofVerification (ILOV) Questionnaire Response,’’ dated
September 23, 2021; and Sanmei’s Letter,
‘‘Submission of In-Lieu-of-Verification (ILOV)
Questionnaire Response,’’ dated October 8, 2021.
13 See Memorandum, ‘‘Post-Preliminary Analysis
in the Countervailing Duty Investigation of
Pentafluoroethane (R-125) from the People’s
Republic of China,’’ dated September 9, 2021 (PostPreliminary Analysis Memo); see also Issues and
Decision Memorandum at Appendix II for the
revised AFA rate calculation.
14 With two respondents under examination,
Commerce normally calculates: (A) a weighted-
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306.57
306.57
306.57
306.57
14.66
12.75
14.43
CBP to discontinue the suspension of
liquidation for subject merchandise
entered, or withdrawn from warehouse,
on or after October 23, 2021.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a countervailing duty (CVD)
order, reinstate the suspension of
liquidation under section 706(a) of the
Act, and require cash deposit of
estimated countervailing duties for such
entries of subject merchandise in the
amounts indicated above. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated, and
all estimated duties deposited, or
securities posted as a result of the
suspension of liquidation will be
refunded or canceled.
average of the estimated subsidy rates calculated for
the examined respondents using each company’s
proprietary U.S. sale quantities for the merchandise
under consideration; (B) a simple average of the
estimated subsidy rates calculated for the examined
respondents; and (C) a weighted-average of the
estimated subsidy rates calculated for the examined
respondents using each company’s publicly-ranged
U.S. sale values for the merchandise under
consideration. Commerce then compares (B) and (C)
to (A) and selects the rate closest to (A) as the most
appropriate rate for all other producers and
exporters. See, e.g., Ball Bearings and Parts Thereof
from France, Germany, Italy, Japan, and the United
Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of ChangedCircumstances Review, and Revocation of an Order
in Part, 75 FR 53661, 53663 (September 1, 2010).
15 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
companies to be cross owned with Juxin: Juhua
Group Corporation; Zhejiang Juhua Co., Ltd.;
Ningbo Juhua Chemical & Science Co., Ltd.;
Zhejiang Quzhou Fluoxin Chemicals Co., Ltd.; and
Zhejiang Juhua Chemical Mining Co., Ltd.
16 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
company to be cross owned with Sanmei: Fujian
Qingliu Dongying Chemical Ind. Co. Ltd.
Commerce intends to disclose its calculations and
analysis performed in this final determination to
interested parties within five days of the date of
public announcement to parties in this proceeding
or, if there is no public announcement, within five
days of publication of this notice in accordance
with 19 CFR 351.224(b).
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Fmt 4703
Sfmt 4703
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. Because the final
determination in this proceeding is
affirmative, in accordance with section
705(b) 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.
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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Notices
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
material injury or threat of material
injury does exist, Commerce will issue
a CVD order directing CBP to assess,
upon further instruction by Commerce,
countervailing 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 Order
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to administrative
protective order (APO) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and the terms of an
APO is a sanctionable violation.
Notification to Interested Parties
This notice is issued and published in
accordance with sections 705(d) and
777(i) of the Act.
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.
khammond on DSKJM1Z7X2PROD with NOTICES
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 Fc125.
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.17 However, R17 ‘‘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
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125 incorporated into a blend that conforms
to ANSI/ASHRAE Standard 34 is excluded
from the scope of this investigation. When R125 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.
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 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 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 anticircumvention 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 this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memo
I. Summary
II. Background
III. Scope Comments
IV. Final Affirmative Determination of
Critical Circumstances
V. Subsidies Valuation Information
VI. Use of Facts Otherwise Available and
Adverse Inferences
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Application of Adverse Facts
Available (AFA) to the Export Buyer’s
Credit Program (EBCP)
Comment 2: Application of AFA to the
Provision of Electricity for Less-ThanAdequate-Renumeration (LTAR) Program
Comment 3: Application of AFA to Other
Subsidy Programs
which contains 35% R-125 by volume is covered by
the scope of the investigations if no other
component part of the blend equals or exceeds 35%
of the volume of the blend.
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Comment 4: Ministerial Error in the
Subsidy Rate Calculation for the
Electricity for LTAR Program for Sanmei
Comment 5: Selection of Fluorspar for
LTAR Benchmark Prices
Comment 6: Creditworthiness of Juhua
Group Corporation (Juhua Group)
Comment 7: Undervaluation of the
Renminbi (RMB)
Comment 8: Seasonality in the Critical
Circumstances Analysis
IX. Recommendation
[FR Doc. 2022–00180 Filed 1–7–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–876]
Welded Line Pipe From the Republic of
Korea: Notice of Court Decision Not in
Harmony With the Results of
Antidumping Administrative Review;
Notice of Amended Final Results
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: On January 3, 2022, the U.S.
Court of International Trade (CIT)
issued its final judgment in Husteel Co.,
Ltd. v. United States, Consol. Court No.
19–00112, sustaining the Department of
Commerce (Commerce)’s second
remand results pertaining to the
administrative review of the
antidumping duty (AD) order on welded
line pipe (WLP) from the Republic of
Korea (Korea) covering the period
December 1, 2016, through November
30, 2017. Commerce is notifying the
public that the CIT’s final judgment is
not in harmony with Commerce’s final
results of the administrative review, and
that Commerce is amending the final
results with respect to the dumping
margins assigned to NEXTEEL Co., Ltd.
(NEXTEEL), SeAH Steel Corporation
(SeAH), and non-selected respondents.
DATES: Applicable January 13, 2022.
FOR FURTHER INFORMATION CONTACT:
David Goldberger, 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) 482–4136.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On June 14, 2019, Commerce
published its final results in the 2016–
2017 AD administrative review of WLP
from Korea.1 Commerce calculated
1 See Welded Line Pipe from the Republic of
Korea: Final Results of Antidumping Duty
Administrative Review and Final Determination of
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]]>Agencies
[Federal Register Volume 87, Number 6 (Monday, January 10, 2022)]
[Notices]
[Pages 1110-1112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00180]
=======================================================================
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-138]
Pentafluoroethane (R-125) From the People's Republic of China:
Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and/or
exporters of pentafluoroethane (R-125) from the People's Republic of
China (China). The period of investigation is January 1, 2020, through
December 31, 2020.
DATES: Applicable January 10, 2022.
FOR FURTHER INFORMATION CONTACT: Adam Simons, 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) 482-6172.
SUPPLEMENTARY INFORMATION:
Background
On June 25, 2021, Commerce published the Preliminary
Determination.\1\ The petitioner in this investigation is Honeywell
International, Inc. In addition to the Government of China, the
mandatory respondents in this investigation are Zhejiang Quzhou Juxin
Fluorine Chemical Co., Ltd. (Juxin) and Zhejiang Sanmei Chemical Ind.
Co., Ltd. (Sanmei).
---------------------------------------------------------------------------
\1\ See Pentafluoroethane (R-125) from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 86 FR 33648 (June 25, 2021), and accompanying
Preliminary Decision Memorandum.
---------------------------------------------------------------------------
A summary of the events that occurred since Commerce published the
Preliminary Determination and a full discussion of the issues raised by
parties for this final determination are provided 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.
---------------------------------------------------------------------------
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty 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).
---------------------------------------------------------------------------
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 AD
Preliminary Determination and preliminarily modified the scope of this
and the companion antidumping duty 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.
---------------------------------------------------------------------------
\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 Countervailing Duty Investigation, 86 FR 8589
(February 8, 2021) (Initiation Notice).
\5\ 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) (AD
Preliminary Determination) 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).
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised is attached to this notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\8\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
In making this final determination, Commerce relied, in part on
facts otherwise available, and because it found that one or more
respondents did not act to the best of their ability to respond to
Commerce's requests for information, it drew an adverse inference,
where appropriate, in selecting from among the facts available.\9\ As
described in the Preliminary Determination, we applied an adverse
inference in the selection of facts available for determining a subsidy
[[Page 1111]]
rate for the four companies that did not respond to Commerce's quantity
and value (Q&V) questionnaire: Arkema Daikin Advanced Fluorochemicals
(Changsu) Co., Ltd.; Daikin Fluorochemicals (China) Co., Ltd.; Hongkong
Richmax Ltd.; and Weitron International Refrigeration Equipment
(Kunshan) Co., Ltd.\10\ For a full discussion of our application of
adverse facts available (AFA), see the Preliminary Determination.\11\
---------------------------------------------------------------------------
\9\ See sections 776(a) and 776(b) of the Act.
\10\ See Preliminary Decision Memorandum at 6-18.
\11\ Id. at ``Use of Facts Otherwise Available and Adverse
Inferences.''
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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 Act.\12\
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\12\ See Juxin's Letter, ``Submission of In-Lieu-of-Verification
(ILOV) Questionnaire Response,'' dated September 23, 2021; and
Sanmei's Letter, ``Submission of In-Lieu-of-Verification (ILOV)
Questionnaire Response,'' dated October 8, 2021.
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Changes Since the Preliminary Determination
Based on our review and the analysis of the comments received from
parties and our verification findings, we made changes to our subsidy
rate calculations for Juxin and Sanmei. As a result of these changes,
Commerce also revised the all-others rate. Commerce also revised the
AFA rate applied to the companies which did not respond to the Q&V
questionnaire to include the subsidy programs included in the Post-
Preliminary Analysis Memo.\13\ For a discussion of these changes, see
the Issues and Decision Memorandum.
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\13\ See Memorandum, ``Post-Preliminary Analysis in the
Countervailing Duty Investigation of Pentafluoroethane (R-125) from
the People's Republic of China,'' dated September 9, 2021 (Post-
Preliminary Analysis Memo); see also Issues and Decision Memorandum
at Appendix II for the revised AFA rate calculation.
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Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated individual estimated subsidy rates for Juxin and Sanmei.
Section 705(c)(5)(A)(i) of the Act states that, for companies not
individually investigated, Commerce will determine an all-others rate
equal to the weighted-average countervailable subsidy rates established
for exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act. Therefore, Commerce
calculated the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly ranged sales data.\14\
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\14\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents using each company's
proprietary U.S. sale quantities for the merchandise under
consideration; (B) a simple average of the estimated subsidy rates
calculated for the examined respondents; and (C) a weighted-average
of the estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged U.S. sale values
for the merchandise under consideration. Commerce then compares (B)
and (C) to (A) and selects the rate closest to (A) as the most
appropriate rate for all other producers and exporters. See, e.g.,
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan,
and the United Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010).
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Commerce determines that the following total estimated net
countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Arkema Daikin Advanced Fluorochemicals (Changsu) Co., 306.57
Ltd....................................................
Daikin Fluorochemicals (China) Co., Ltd................. 306.57
Hongkong Richmax Ltd.................................... 306.57
Weitron International Refrigeration Equipment (Kunshan) 306.57
Co., Ltd...............................................
Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd\15\.... 14.66
Zhejiang Sanmei Chemical Ind. Co., Ltd\16\.............. 12.75
All Others.............................................. 14.43
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Disclosure
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\15\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross owned with
Juxin: Juhua Group Corporation; Zhejiang Juhua Co., Ltd.; Ningbo
Juhua Chemical & Science Co., Ltd.; Zhejiang Quzhou Fluoxin
Chemicals Co., Ltd.; and Zhejiang Juhua Chemical Mining Co., Ltd.
\16\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following company to be cross owned with
Sanmei: Fujian Qingliu Dongying Chemical Ind. Co. Ltd.
Commerce intends to disclose its calculations and analysis
performed in this final determination to interested parties within
five days of the date of public announcement to parties in this
proceeding or, if there is no public announcement, within five days
of publication of this notice in accordance with 19 CFR 351.224(b).
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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise as described in the scope of the investigation
section, that were entered, or withdrawn from warehouse, for
consumption on or after June 25, 2021, the date of publication of the
Preliminary Determination in the Federal Register. In accordance with
section 703(d) of the Act, we instructed CBP to discontinue the
suspension of liquidation for subject merchandise entered, or withdrawn
from warehouse, on or after October 23, 2021.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
(CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require cash deposit of estimated countervailing
duties for such entries of subject merchandise in the amounts indicated
above. If the ITC determines that material injury, or threat of
material injury, does not exist, this proceeding will be terminated,
and all estimated duties deposited, or securities posted as a result of
the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) 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.
[[Page 1112]]
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 material injury
or threat of material injury does exist, Commerce will issue a CVD
order directing CBP to assess, upon further instruction by Commerce,
countervailing 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 Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to administrative protective order (APO) of their
responsibility concerning the disposition of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of return/destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and the terms of an APO is a sanctionable
violation.
Notification to Interested Parties
This notice is issued and published in accordance with sections
705(d) and 777(i) of the Act.
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.\17\ 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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\17\ ``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 investigations 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 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 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 this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memo
I. Summary
II. Background
III. Scope Comments
IV. Final Affirmative Determination of Critical Circumstances
V. Subsidies Valuation Information
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Discussion of the Issues
Comment 1: Application of Adverse Facts Available (AFA) to the
Export Buyer's Credit Program (EBCP)
Comment 2: Application of AFA to the Provision of Electricity
for Less-Than-Adequate-Renumeration (LTAR) Program
Comment 3: Application of AFA to Other Subsidy Programs
Comment 4: Ministerial Error in the Subsidy Rate Calculation for
the Electricity for LTAR Program for Sanmei
Comment 5: Selection of Fluorspar for LTAR Benchmark Prices
Comment 6: Creditworthiness of Juhua Group Corporation (Juhua
Group)
Comment 7: Undervaluation of the Renminbi (RMB)
Comment 8: Seasonality in the Critical Circumstances Analysis
IX. Recommendation
[FR Doc. 2022-00180 Filed 1-7-22; 8:45 am]
BILLING CODE 3510-DS-P
