Hydrofluorocarbon Blends From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order, 74150-74152 [2023-23850]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES 74150 Federal Register / Vol. 88, No. 208 / Monday, October 30, 2023 / Notices agencies to comment on proposed and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public’s reporting burden. Public comments were previously requested via the Federal Register on October 12, 2023, during a 30-day comment period. This notice allows for an additional 12 days for public comments. Agency: Bureau of Economic Analysis, Department of Commerce. OMB Control Number: 0608–0073. Form Number(s): BE–140. Type of Request: Regular submission. Estimated Number of Respondents: 1,300 annually (1,000 reporting mandatory data and 300 that would file exemption claims or voluntary responses). Estimated Time per Response: 9 hours is the average for the 600 respondents filing data by country and affiliation, 2 hours for the 400 respondents filing data by transaction type only, and 1 hour for those filing an exemption claim or other response. Hours may vary considerably among respondents because of differences in company size and complexity. Estimated Total Annual Burden Hours: 6,500. Needs and Uses: The data are needed to monitor U.S. trade in insurance services, to analyze the impact of these cross-border services on the U.S. and foreign economies, to compile and improve the U.S. economic accounts, to support U.S. commercial policy on trade in services, to conduct trade promotion, and to improve the ability of U.S. businesses to identify and evaluate market opportunities. The data are used in estimating the trade in insurance services component of the U.S. international transactions accounts (ITAs) and national income and product accounts (NIPAs). Affected Public: Business or other forprofit organizations. Frequency: Every fifth year, for reporting years ending in ‘‘3’’ and ‘‘8’’. Respondent’s Obligation: Mandatory. Legal Authority: International Investment and Trade in Services Survey Act (Pub. L. 94–472, 22 U.S.C. 3101–3108, as amended). This information collection request may be viewed at www.reginfo.gov. Follow the instructions to view the Department of Commerce collections currently under review by OMB. Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website www.reginfo.gov/ VerDate Sep<11>2014 18:18 Oct 27, 2023 Jkt 262001 public/do/PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function and entering either the title of the collection or the OMB Control Number 0608–0073. Sheleen Dumas, Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department. [FR Doc. 2023–23848 Filed 10–27–23; 8:45 am] BILLING CODE 3510–06–P DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [Order No. 2149] Reorganization and Expansion of Foreign-Trade Zone 255 Under Alternative Site Framework; Washington County, Maryland Pursuant to its authority under the Foreign-Trade Zones Act of June 18, 1934, as amended (19 U.S.C. 81a–81u), the Foreign-Trade Zones Board (the Board) adopts the following Order: Whereas, the Foreign-Trade Zones (FTZ) Act provides for ‘‘. . . the establishment . . . of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes,’’ and authorizes the Board to grant to qualified corporations the privilege of establishing foreign-trade zones in or adjacent to U.S. Customs and Border Protection ports of entry; Whereas, the Board adopted the alternative site framework (ASF) (15 CFR 400.2(c)) as an option for the establishment or reorganization of zones; Whereas, the Board of County Commissioners of Washington County, grantee of Foreign-Trade Zone 255, submitted an application to the Board (FTZ Docket B–27–2023, docketed April 13, 2023) for authority to reorganize and expand under the ASF with a service area of Washington County, Maryland, adjacent to the Baltimore Customs and Border Protection port of entry, FTZ 255’s existing Sites 1, 2, 4, 6 and 7 would be categorized as magnet sites, and the grantee proposes one initial subzone (Subzone 255A); Whereas, notice inviting public comment was given in the Federal Register (88 FR 24161–24162, April 19, 2023) and the application has been processed pursuant to the FTZ Act and the Board’s regulations; and, Whereas, the Board adopts the findings and recommendations of the PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 examiners’ report, and finds that the requirements of the FTZ Act and the Board’s regulations are satisfied; Now, therefore, the Board hereby orders: The application to reorganize and expand FTZ 255 under the ASF is approved, subject to the FTZ Act and the Board’s regulations, including section 400.13, to the Board’s standard 2,000-acre activation limit for the zone, to an ASF sunset provision for magnet sites that would terminate authority for Sites 1, 4, 6 and 7 if not activated within five years from the month of approval, and to an ASF sunset provision for subzones that would terminate authority for Subzone 255A if no foreign-status merchandise is admitted for a bona fide customs purpose within three years from the month of approval. Dated: October 24, 2023. Lisa W. Wang, Assistant Secretary for Enforcement and Compliance, Alternate Chairman, ForeignTrade Zones Board. [FR Doc. 2023–23851 Filed 10–27–23; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–028] Hydrofluorocarbon Blends From the People’s Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: In response to a request from the American HFC Coalition, a domestic interested party, the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether U.S. imports from Mexico of R–410B, which are completed in Mexico using Chinese components and further processed in the United States, are circumventing the antidumping duty (AD) order on hydrofluorocarbon (HFC) blends from the People’s Republic of China (China). DATES: Applicable October 30, 2023. FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Jerry Xiao, 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) 482–3251 or (202) 482–2273, respectively. AGENCY: SUPPLEMENTARY INFORMATION: E:\FR\FM\30OCN1.SGM 30OCN1 Federal Register / Vol. 88, No. 208 / Monday, October 30, 2023 / Notices Background On September 22, 2023, pursuant to sections 781(a) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.226(c), the American HFC Coalition 1 filed a circumvention inquiry request alleging that HFC blends completed in Mexico from Chinese components and further processed in the United States are circumventing the AD order on HFC blends from Mexico 2 and, accordingly, should be included within the scope of the Order.3 On October 17, 2023, the American HFC Coalition responded to our supplemental questionnaire.4 Scope of the Order The products subject to the Order are HFC blends. HFC blends covered by the scope of the Order are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 3827.61.0000, 3827.63.0000, 3827.64.0000, 3827.65.0000, 3827.68.0000, 3827.69.0000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive. For a full description of the scope the Order, see the attachment to the Initiation Checklist.5 Merchandise Subject to the Circumvention Inquiry The circumvention inquiry covers R– 410B from Mexico that is completed in Mexico using Chinese R–32 and R–125 and then subsequently exported to and further processed in the United States into an in-scope blend (i.e., R–410A). Initiation of Circumvention Inquiry khammond on DSKJM1Z7X2PROD with NOTICES Section 351.226(d) of Commerce’s regulations states that if Commerce determines that a request for a circumvention inquiry satisfies the requirements of 19 CFR 351.226(c), then 1 The American HFC Coalition consists of individual members, including Arkema, Inc., The Chemours Company FC LLC, Honeywell International Inc., and Mexichem Fluor Inc. (collectively, domestic interested parties). 2 See Hydrofluorocarbon Blends and Components Thereof from the People’s Republic of China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) (Order). 3 See American HFC Coalition’s Letter, ‘‘Request to Initiate Anti-Circumvention Inquiry with Respect to Imports of R–410B from Mexico Pursuant to Section 781(a) of the Act,’’ dated September 22, 2023. 4 See American HFC Coalition’s Letter, ‘‘HFC Coalition’s Response to Circumvention Supplemental Questionnaire—R–410B from Mexico,’’ dated October 17, 2023. 5 See Initiation Checklist, ‘‘Circumvention Initiation Checklist: Hydrofluorocarbon Blends from the People’s Republic of China,’’ dated concurrently with this notice (Initiation Checklist). VerDate Sep<11>2014 18:18 Oct 27, 2023 Jkt 262001 Commerce ‘‘will accept the request and initiate a circumvention inquiry.’’ Section 351.226(c)(1) of Commerce’s regulations, in turn, requires that each circumvention inquiry request allege ‘‘that the elements necessary for a circumvention determination under section 781 of the Act exist’’ and be ‘‘accompanied by information reasonably available to the interested party supporting these allegations.’’ The American HFC Coalition alleged circumvention pursuant to section 781(a) of the Act (merchandise completed or assembled in the United States). Section 781(a)(1) of the Act provides that Commerce may find circumvention of an order when merchandise of the same class or kind subject to the order is completed or assembled in the United States. In conducting a circumvention inquiry, under section 781(a)(1) of the Act, Commerce relies on the following criteria: (A) merchandise sold in the United States is of the same class or kind as any merchandise that is the subject of an AD or countervailing duty (CVD) order; (B) such merchandise sold in the United States is completed or assembled in the United States from parts or components produced in the foreign country with respect to which such order or finding applies; (C) the process of assembly or completion in the United States is minor or insignificant; and (D) the value of the parts or components referred to in subparagraph (B) is a significant portion of the total value of the merchandise. In determining whether the process of assembly or completion in the United States is minor or insignificant under section 781(a)(1)(C) of the Act, section 781(a)(2) of the Act directs Commerce to consider: (A) the level of investment in the United States; (B) the level of research and development in the United States; (C) the nature of the production process in the United States; (D) the extent of production facilities in the United States; and (E) whether the value of the processing performed in the United States represents a small proportion of the value of the merchandise sold in the United States. However, no single factor, by itself, controls Commerce’s determination of whether the process of assembly or completion in the United States is minor or insignificant.6 Accordingly, it is Commerce’s practice to evaluate each of these five factors as they exist in the United States, and to reach an affirmative or negative circumvention 6 See Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, H.R. Doc. No. 103–316, Vol. 1 (1994), at 893. PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 74151 determination based on the totality of the circumstances of the particular circumvention inquiry.7 In addition, section 781(a)(3) of the Act sets forth additional factors to consider in determining whether to include merchandise assembled or completed in the United States within the scope of an AD or CVD order. Specifically, Commerce shall take into account such factors as: (A) the pattern of trade, including sourcing patterns; (B) whether the manufacturer or exporter of the parts or components is affiliated with the person who assembles or completes the merchandise sold in the United States from the parts or components produced in the foreign country with respect to which the order applies; and (C) whether imports into the United States of the parts or components products in such foreign country have increased after the initiation of the investigation which resulted in the issuance of such order. Analysis Based on our analysis of the American HFC Coalition’s circumvention request, Commerce determines that the American HFC Coalition has satisfied the criteria under 19 CFR 351.226(c) to warrant the initiation of a circumvention inquiry of the Order. For a full discussion of the basis for our decision to initiate this circumvention inquiry, see the Initiation Checklist. As explained in the Initiation Checklist, the information provided by domestic interested parties warrants initiating this circumvention inquiry on a country-wide basis. Commerce has taken this approach in prior circumvention inquiries, where the facts warranted initiation on a country-wide basis.8 7 See Hydrofluorocarbon Blends from the People’s Republic of China: Final Negative Scope Ruling on Gujarat Fluorochemicals Ltd.’s R–410A Blend; Affirmative Final Determination of Circumvention of the Antidumping Duty Order by Indian Blends Containing CCC Components, 85 FR 61930 (October 1, 2020), and accompanying Issues and Decision Memorandum at 20 (specifying the same in the context of a section 781(b) inquiry). 8 See, e.g., Hydrofluorocarbon Blends from the People’s Republic of China: Initiation of Circumvention Inquiries on the Antidumping Duty Order, 88 FR 43275 (July 7, 2023); see also Certain Corrosion-Resistant Steel Products from the Republic of Korea and Taiwan: Initiation of AntiCircumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted); and Certain CorrosionResistant Steel Products from the People’s Republic E:\FR\FM\30OCN1.SGM Continued 30OCN1 74152 Federal Register / Vol. 88, No. 208 / Monday, October 30, 2023 / Notices Consistent with the approach in the prior circumvention inquiries that were initiated on a country-wide basis, Commerce intends to issue questionnaires to solicit information from producers and exporters in Mexico, concerning their shipments to the United States and the origin of any imported HFC blends being further processed into HFC blends subject to the Order. Respondent Selection Commerce intends to base respondent selection on U.S. Customs and Border and Protection (CBP) data. Commerce intends to place CBP data on the record within five days of the publication of the initiation notice. Comments regarding the CBP data and respondent selection should be submitted within seven days after placement of the CBP data on the record of this inquiry. Commerce intends to establish a schedule for questionnaire responses after respondent selection. A company’s failure to completely respond to Commerce’s requests for information may result in the application of partial or total facts available, pursuant to section 776(a) of the Act, which may include adverse inferences, pursuant to section 776(b) of the Act. khammond on DSKJM1Z7X2PROD with NOTICES Suspension of Liquidation Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of the initiation of this circumvention inquiry and direct CBP to continue the suspension of liquidation of entries of products subject to the circumvention inquiry that were already subject to the suspension of liquidation under the Order and to apply the cash deposit rate that would be applicable if the product was determined to be covered by the scope of the Order. Should Commerce issue a preliminary or final circumvention determination, Commerce will follow the suspension of liquidation rules under 19 CFR 351.226(l)(2)–(4). Notification to Interested Parties In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, Commerce determines that the American HFC Coalition’s request for this circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying all interested parties of the initiation of this circumvention inquiry to determine of China: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted). VerDate Sep<11>2014 18:18 Oct 27, 2023 Jkt 262001 whether U.S. imports from Mexico of R– 410B that are completed in Mexico using Chinese components and then blended into in-scope R–410A in the United States are circumventing the Order. In addition, we included a description of the product that is the subject of this inquiry and an explanation of the reasons for Commerce’s decision to initiate this inquiry as provided above and in the accompanying Initiation Checklist. In accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its preliminary determination no later than 150 days from the date of publication of the notice of initiation of this circumvention inquiry in the Federal Register. This notice is published in accordance with section 781(a) of the Act and 19 CFR 351.226(d)(1)(ii). Dated: October 23, 2023. Lisa W. Wang, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2023–23850 Filed 10–27–23; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–552–833] Raw Honey From the Socialist Republic of Vietnam: Initiation of Antidumping Duty Changed Circumstances Review Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) is initiating a changed circumstances review (CCR) of the antidumping duty (AD) order on raw honey from the Socialist Republic of Vietnam (Vietnam) to examine whether Vietnam remains a non-market economy (NME) country for purposes of the application of the AD law. DATES: Applicable October 30, 2023. FOR FURTHER INFORMATION CONTACT: Chien-Min Yang or Leah Wils-Owens, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5484 or (202) 482–4203, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On September 8, 2023, the Government of Vietnam (GOV) submitted a letter requesting that PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 Commerce conduct a review of Vietnam’s status as an NME country 1 within the context of a CCR of the AD order on raw honey from Vietnam.2 In the CCR Request, the GOV describes changes that have occurred in Vietnam in recent years as they relate to each of the statutory criteria Commerce uses to evaluate a country’s market economy status. Specifically, in the CCR Request, the GOV contends that the Vietnamese dong is transparently convertible into other foreign currencies based on market principles, fairness, and nondiscrimination.3 In the CCR Request, the GOV argues that bargaining between labor and management on wage rates in Vietnam is free, and that Vietnam now possesses a clear legal framework to ensure employees’ basic rights.4 With regard to foreign direct investment, the GOV states in the CCR Request that Vietnam has made improvements in the investment environment, stating that no differences exist in how foreign and domestic investors are treated.5 In the CCR Request, the GOV also provides information on the reduction of government ownership and control over the means of production in Vietnam and maintains that private sector development, state-owned enterprise restructuring and divestment, and land reform initiatives have all been taken.6 As to the allocation of resources and the government’s role in price and output decisions, the GOV states in the CCR Request that the GOV does not possess significant control over these areas.7 In the CCR Request, the GOV also identifies other factors that have been important to market-oriented reforms, including the establishment of a legal framework for bankruptcy, greater transparency in corporate governance, the launch of a legal framework for a state audit, a unified legal system, and diversified foreign economic relations.8 On October 6, 2023, the American Honey Producers Association and Sioux Honey Association (the petitioners) submitted comments in opposition to CCR Request.9 On October 17, 2023, the GOV submitted rebuttal comments in 1 See GOV’s Letter, ‘‘Request for Changed Circumstances Review,’’ dated September 8, 2023 (CCR Request). 2 See Raw Honey from Argentina, Brazil, India, and the Socialist Republic of Vietnam: Antidumping Duty Orders, 87 FR 35501 (June 10, 2023). 3 See CCR Request at 3. 4 Id. at 7–8. 5 Id. at 10–14. 6 Id. at 14–16. 7 Id. at 16–20. 8 Id. at 20–23. 9 See Petitioners’ Letter, ‘‘Petitioners’ Response to Vietnam’s Request for Market Economy Treatment,’’ dated October 6, 2023 (Petitioners’ Comments). E:\FR\FM\30OCN1.SGM 30OCN1

Agencies

[Federal Register Volume 88, Number 208 (Monday, October 30, 2023)]
[Notices]
[Pages 74150-74152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23850]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Hydrofluorocarbon Blends From the People's Republic of China: 
Initiation of Circumvention Inquiry on the Antidumping Duty Order

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

SUMMARY: In response to a request from the American HFC Coalition, a 
domestic interested party, the U.S. Department of Commerce (Commerce) 
is initiating a country-wide circumvention inquiry to determine whether 
U.S. imports from Mexico of R-410B, which are completed in Mexico using 
Chinese components and further processed in the United States, are 
circumventing the antidumping duty (AD) order on hydrofluorocarbon 
(HFC) blends from the People's Republic of China (China).

DATES: Applicable October 30, 2023.

FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Jerry Xiao, 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) 482-3251 or (202) 482-2273, 
respectively.

SUPPLEMENTARY INFORMATION: 

[[Page 74151]]

Background

    On September 22, 2023, pursuant to sections 781(a) of the Tariff 
Act of 1930, as amended (the Act) and 19 CFR 351.226(c), the American 
HFC Coalition \1\ filed a circumvention inquiry request alleging that 
HFC blends completed in Mexico from Chinese components and further 
processed in the United States are circumventing the AD order on HFC 
blends from Mexico \2\ and, accordingly, should be included within the 
scope of the Order.\3\ On October 17, 2023, the American HFC Coalition 
responded to our supplemental questionnaire.\4\
---------------------------------------------------------------------------

    \1\ The American HFC Coalition consists of individual members, 
including Arkema, Inc., The Chemours Company FC LLC, Honeywell 
International Inc., and Mexichem Fluor Inc. (collectively, domestic 
interested parties).
    \2\ See Hydrofluorocarbon Blends and Components Thereof from the 
People's Republic of China: Antidumping Duty Order, 81 FR 55436 
(August 19, 2016) (Order).
    \3\ See American HFC Coalition's Letter, ``Request to Initiate 
Anti-Circumvention Inquiry with Respect to Imports of R-410B from 
Mexico Pursuant to Section 781(a) of the Act,'' dated September 22, 
2023.
    \4\ See American HFC Coalition's Letter, ``HFC Coalition's 
Response to Circumvention Supplemental Questionnaire--R-410B from 
Mexico,'' dated October 17, 2023.
---------------------------------------------------------------------------

Scope of the Order

    The products subject to the Order are HFC blends. HFC blends 
covered by the scope of the Order are currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 
3827.61.0000, 3827.63.0000, 3827.64.0000, 3827.65.0000, 3827.68.0000, 
3827.69.0000. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the scope 
is dispositive. For a full description of the scope the Order, see the 
attachment to the Initiation Checklist.\5\
---------------------------------------------------------------------------

    \5\ See Initiation Checklist, ``Circumvention Initiation 
Checklist: Hydrofluorocarbon Blends from the People's Republic of 
China,'' dated concurrently with this notice (Initiation Checklist).
---------------------------------------------------------------------------

Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers R-410B from Mexico that is 
completed in Mexico using Chinese R-32 and R-125 and then subsequently 
exported to and further processed in the United States into an in-scope 
blend (i.e., R-410A).

Initiation of Circumvention Inquiry

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
circumvention inquiry request allege ``that the elements necessary for 
a circumvention determination under section 781 of the Act exist'' and 
be ``accompanied by information reasonably available to the interested 
party supporting these allegations.'' The American HFC Coalition 
alleged circumvention pursuant to section 781(a) of the Act 
(merchandise completed or assembled in the United States).
    Section 781(a)(1) of the Act provides that Commerce may find 
circumvention of an order when merchandise of the same class or kind 
subject to the order is completed or assembled in the United States. In 
conducting a circumvention inquiry, under section 781(a)(1) of the Act, 
Commerce relies on the following criteria: (A) merchandise sold in the 
United States is of the same class or kind as any merchandise that is 
the subject of an AD or countervailing duty (CVD) order; (B) such 
merchandise sold in the United States is completed or assembled in the 
United States from parts or components produced in the foreign country 
with respect to which such order or finding applies; (C) the process of 
assembly or completion in the United States is minor or insignificant; 
and (D) the value of the parts or components referred to in 
subparagraph (B) is a significant portion of the total value of the 
merchandise.
    In determining whether the process of assembly or completion in the 
United States is minor or insignificant under section 781(a)(1)(C) of 
the Act, section 781(a)(2) of the Act directs Commerce to consider: (A) 
the level of investment in the United States; (B) the level of research 
and development in the United States; (C) the nature of the production 
process in the United States; (D) the extent of production facilities 
in the United States; and (E) whether the value of the processing 
performed in the United States represents a small proportion of the 
value of the merchandise sold in the United States. However, no single 
factor, by itself, controls Commerce's determination of whether the 
process of assembly or completion in the United States is minor or 
insignificant.\6\ Accordingly, it is Commerce's practice to evaluate 
each of these five factors as they exist in the United States, and to 
reach an affirmative or negative circumvention determination based on 
the totality of the circumstances of the particular circumvention 
inquiry.\7\
---------------------------------------------------------------------------

    \6\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994), 
at 893.
    \7\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Final Negative Scope Ruling on Gujarat Fluorochemicals Ltd.'s 
R-410A Blend; Affirmative Final Determination of Circumvention of 
the Antidumping Duty Order by Indian Blends Containing CCC 
Components, 85 FR 61930 (October 1, 2020), and accompanying Issues 
and Decision Memorandum at 20 (specifying the same in the context of 
a section 781(b) inquiry).
---------------------------------------------------------------------------

    In addition, section 781(a)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in the United States within the scope of an AD 
or CVD order. Specifically, Commerce shall take into account such 
factors as: (A) the pattern of trade, including sourcing patterns; (B) 
whether the manufacturer or exporter of the parts or components is 
affiliated with the person who assembles or completes the merchandise 
sold in the United States from the parts or components produced in the 
foreign country with respect to which the order applies; and (C) 
whether imports into the United States of the parts or components 
products in such foreign country have increased after the initiation of 
the investigation which resulted in the issuance of such order.

Analysis

    Based on our analysis of the American HFC Coalition's circumvention 
request, Commerce determines that the American HFC Coalition has 
satisfied the criteria under 19 CFR 351.226(c) to warrant the 
initiation of a circumvention inquiry of the Order. For a full 
discussion of the basis for our decision to initiate this circumvention 
inquiry, see the Initiation Checklist. As explained in the Initiation 
Checklist, the information provided by domestic interested parties 
warrants initiating this circumvention inquiry on a country-wide basis. 
Commerce has taken this approach in prior circumvention inquiries, 
where the facts warranted initiation on a country-wide basis.\8\
---------------------------------------------------------------------------

    \8\ See, e.g., Hydrofluorocarbon Blends from the People's 
Republic of China: Initiation of Circumvention Inquiries on the 
Antidumping Duty Order, 88 FR 43275 (July 7, 2023); see also Certain 
Corrosion-Resistant Steel Products from the Republic of Korea and 
Taiwan: Initiation of Anti-Circumvention Inquiries on the 
Antidumping Duty and Countervailing Duty Orders, 83 FR 37785 (August 
2, 2018); Carbon Steel Butt-Weld Pipe Fittings from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiry on the 
Antidumping Duty Order, 82 FR 40556, 40560 (August 25, 2017) 
(stating at initiation that Commerce would evaluate the extent to 
which a country-wide finding applicable to all exports might be 
warranted); and Certain Corrosion-Resistant Steel Products from the 
People's Republic of China: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 
FR 79454, 79458 (November 14, 2016) (stating at initiation that 
Commerce would evaluate the extent to which a country-wide finding 
applicable to all exports might be warranted).

---------------------------------------------------------------------------

[[Page 74152]]

    Consistent with the approach in the prior circumvention inquiries 
that were initiated on a country-wide basis, Commerce intends to issue 
questionnaires to solicit information from producers and exporters in 
Mexico, concerning their shipments to the United States and the origin 
of any imported HFC blends being further processed into HFC blends 
subject to the Order.

Respondent Selection

    Commerce intends to base respondent selection on U.S. Customs and 
Border and Protection (CBP) data. Commerce intends to place CBP data on 
the record within five days of the publication of the initiation 
notice. Comments regarding the CBP data and respondent selection should 
be submitted within seven days after placement of the CBP data on the 
record of this inquiry.
    Commerce intends to establish a schedule for questionnaire 
responses after respondent selection. A company's failure to completely 
respond to Commerce's requests for information may result in the 
application of partial or total facts available, pursuant to section 
776(a) of the Act, which may include adverse inferences, pursuant to 
section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of the 
initiation of this circumvention inquiry and direct CBP to continue the 
suspension of liquidation of entries of products subject to the 
circumvention inquiry that were already subject to the suspension of 
liquidation under the Order and to apply the cash deposit rate that 
would be applicable if the product was determined to be covered by the 
scope of the Order. Should Commerce issue a preliminary or final 
circumvention determination, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, 
Commerce determines that the American HFC Coalition's request for this 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of this circumvention inquiry to determine whether U.S. 
imports from Mexico of R-410B that are completed in Mexico using 
Chinese components and then blended into in-scope R-410A in the United 
States are circumventing the Order. In addition, we included a 
description of the product that is the subject of this inquiry and an 
explanation of the reasons for Commerce's decision to initiate this 
inquiry as provided above and in the accompanying Initiation Checklist. 
In accordance with 19 CFR 351.226(e)(1), Commerce intends to issue its 
preliminary determination no later than 150 days from the date of 
publication of the notice of initiation of this circumvention inquiry 
in the Federal Register.
    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: October 23, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-23850 Filed 10-27-23; 8:45 am]
BILLING CODE 3510-DS-P

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