[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Notices]
[Pages 45890-45893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19700]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-028]


Hydrofluorocarbon Blends From the People's Republic of China: 
Preliminary Results of the Antidumping Duty Administrative Review and 
Preliminary Determination of No Shipments; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that sales of hydrofluorocarbon blends (HFCs), from the People's 
Republic of China (China) have been made below normal value (NV). We 
invite interested parties to comment on these preliminary results.

DATES: Applicable September 11, 2018.

FOR FURTHER INFORMATION CONTACT: Manuel Rey, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-5518.

Background

    Commerce is conducting an administrative review of the antidumping 
duty order on HFCs from China.\1\ The notice of initiation of this 
administrative review was published on

[[Page 45891]]

October 16, 2017.\2\ This review covers 12 producers and/or exporters 
of the subject merchandise. Commerce selected two exporters for 
individual examination (i.e., T.T. International Co., Ltd. (TTI); and 
Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. 
(Weitron)). The period of review (POR) is February 1, 2016, through 
July 31, 2017.
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    \1\ See Hydrofluorocarbon Blends from the People's Republic of 
China: Antidumping Duty Order, 81 FR 55436 (October 16, 2017) 
(Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 48051 (October 16, 2017) (Initiation 
Notice).
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    In April 2018, we extended the preliminary results of this review 
to no later than September 4, 2018.\3\
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    \3\ See Memorandum, ``Hydrofluorocarbon Blends from the People's 
Republic of China: Extension of Deadline for Preliminary Results of 
Antidumping Duty Administrative Review,'' dated April 13, 2018. In 
this memorandum, we noted that Commerce exercised its discretion to 
toll all deadlines affected by the closure of the Federal Government 
from January 20 through January 22, 2018. See Memorandum, 
``Deadlines Affected by the Shutdown of the Federal Government,'' 
dated January 23, 2018. As a result, the revised deadline for the 
preliminary results became September 4, 2018.

SUPPLEMENTARY INFORMATION: 

Scope of the Order

    The products subject to this order are HFC blends. HFC blends 
covered by the scope are R-404A, a zeotropic mixture consisting of 52 
percent 1,1,1 Trifluoroethane, 44 percent Pentafluoroethane, and 4 
percent 1,1,1,2-Tetrafluoroethane; R-407A, a zeotropic mixture of 20 
percent Difluoromethane, 40 percent Pentafluoroethane, and 40 percent 
1,1,1,2-Tetrafluoroethane; R-407C, a zeotropic mixture of 23 percent 
Difluoromethane, 25 percent Pentafluoroethane, and 52 percent 1,1,1,2-
Tetrafluoroethane; R-410A, a zeotropic mixture of 50 percent 
Difluoromethane and 50 percent Pentafluoroethane; and R-507A, an 
azeotropic mixture of 50 percent Pentafluoroethane and 50 percent 
1,1,1-Trifluoroethane also known as R-507. The foregoing percentages 
are nominal percentages by weight. Actual percentages of single 
component refrigerants by weight may vary by plus or minus two percent 
points from the nominal percentage identified above.\4\
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    \4\ For a complete description of the scope of the order, see 
Memorandum, ``Decision Memorandum for the Preliminary Results of the 
2016-2017 Antidumping Duty Administrative Review of 
Hydrofluorocarbon Blends from the People's Republic of China,'' 
issued concurrently with and hereby adopted by this notice 
(Preliminary Decision Memorandum).
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Preliminary Determination of No Shipments

    Based on our analysis of CBP information and information provided 
by the companies, we preliminarily determine that Daikin 
Fluorochemicals (China) Co., Ltd. and Zhejiang Yonghe Refrigerant Co., 
Ltd. had no shipments of subject merchandise during the POR. In 
addition, Commerce finds that, consistent with its assessment practice 
in non-market economy (NME) cases, it is appropriate not to rescind the 
review in part in these circumstances, but to complete the review with 
respect to these two companies and issue appropriate instructions to 
CBP based on the final results.\5\ For additional information regarding 
this determination, see the Preliminary Decision Memorandum.
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    \5\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011) and 
the ``Assessment Rates'' section, below.
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(B) of the Tariff Act of 1930, as amended (the Act). We 
calculated export prices for the sole participating mandatory 
respondent, TTI, in accordance with section 772 of the Act. Because 
China is an NME country within the meaning of section 771(18) of the 
Act, we calculated NV for TTI in accordance with section 773(c) of the 
Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and to all parties in the 
Central Records Unit, Room B8024 of the main Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be found at http://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Preliminary Decision Memorandum are 
identical in content. A list of the topics discussed in the Preliminary 
Decision Memorandum is attached as an Appendix to this notice.

Rate for Non-Examined Companies Which Are Eligible for a Separate Rate

    As indicated in the ``Preliminary Results of Review'' section 
below, we preliminarily determine that a weighted-average dumping 
margin of 283.63 percent applies to the three firms not selected for 
individual review which are eligible for a separate rate. For further 
information, see the Preliminary Decision Memorandum at ``Separate Rate 
Assigned to Non-Selected Companies.''

Preliminary Results of Review

    Six companies involved in the administrative review, including the 
mandatory respondent Weitron, did not demonstrate that they are 
entitled to a separate rate.\6\ Therefore, we preliminarily find these 
companies to be part of the China-wide entity.\7\ The rate previously 
established for the China-wide entity is 216.37 percent.
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    \6\ These six companies are: (1) Arkema Daikin Advanced 
Fluorochemicals (Changsu) Co., Ltd.; (2) Dongyang Weihua 
Refrigerants Co., Ltd.; (3) Sinochem Environmental Protection 
Chemicals (Taicang) Co., Ltd.; (4) Weitron; (5) Zhejiang Lantian 
Environmental Protection Fluoro Material Co. Ltd.; and (6) Zhejiang 
Quzhou Lianzhou Refrigerants Co., Ltd.
    \7\ See Preliminary Decision Memorandum, at ``Companies Not 
Receiving a Separate Rate.'' Pursuant to Commerce's change in 
practice, Commerce no longer considers the NME entity as an exporter 
conditionally subject to administrative reviews. See Antidumping 
Proceedings: Announcement of Change in Department Practice for 
Respondent Selection in Antidumping Duty Proceedings and Conditional 
Review of the Nonmarket Economy Entity in NME Antidumping Duty 
Proceedings, 78 FR 65963, 65970 (November 4, 2013). Under this 
practice, the NME entity will not be under review unless a party 
specifically requests, or Commerce self-initiates, a review of the 
entity. Because no party requested a review of the entity, the 
entity is not under review and the entity's rate is not subject to 
change.
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    We preliminarily determine that the following weighted-average 
dumping margins exist for the period February 1, 2016, through July 31, 
2017:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                           Exporter                             dumping
                                                                 margin
                                                               (percent)
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T.T. International Co., Ltd..................................     283.63
Shandong Huaan New Material Co., Ltd.*.......................     283.63
Zhejiang Sanmei Chemical Industry Co. Ltd.*..................     283.63
Zhejiang Yonghe Refrigerant Co., Ltd.*.......................     283.63
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* This company was not selected as a mandatory respondent but is subject
  to this administrative review and demonstrated that it qualified for a
  separate rate during the POR.

Disclosure and Public Comment

    Commerce intends to disclose calculations performed in connection 
with these preliminary results to interested parties within five days 
of the date of publication of this notice.\8\ Interested parties may 
submit case briefs to Commerce no later than seven days after the date 
of the final verification report issued in this administrative review. 
Rebuttals briefs, limited to issues raised in the case briefs, may be 
filed no later than five days after the

[[Page 45892]]

time limit for filing case briefs.\9\ Parties who submit case briefs or 
rebuttal briefs in this proceeding are encouraged to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.\10\
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    \8\ See 19 CFR 351.224(b).
    \9\ See 19 CFR 351.309(d).
    \10\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS. An electronically-filed document must be received successfully 
in its entirety by ACCESS by 5 p.m. Eastern Time within 30 days after 
the date of publication of this notice.\11\ Hearing requests should 
contain: (1) The party's name, address, and telephone number; (2) the 
number of participants; and (3) a list of the issues to be discussed. 
Issues raised in the hearing will be limited to issues raised in the 
briefs.\12\ If a request for a hearing is made, parties will be 
notified of the time and date for the hearing to be held at the U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.\13\
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    \11\ See 19 CFR 351.310(c).
    \12\ Id.
    \13\ See 19 CFR 351.310(d).
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    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis raised in any written 
briefs, not later than 120 days after the publication date of this 
notice, pursuant to section 751(a)(3)(A) of the Act, unless otherwise 
extended.\14\
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    \14\ See section 751(a)(3)(A) of the Act.
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Assessment Rates

    Upon completion of the administrative review, Commerce shall 
determine, and U.S. Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries.
    For TTI, we will calculate importer- (or customer-) specific ad 
valorem duty assessment rates based on the ratio of the total amount of 
dumping calculated for each importer's (or customer's) examined sales 
to the total entered value of those sales, in accordance with 19 CFR 
351.212(b)(1). Where either the respondent's weighted-average dumping 
margin is zero or de minimis within the meaning of 19 CFR 
351.106(c)(1), or an importer- (or customer-) specific rate is zero or 
de minimis, we will instruct CBP to liquidate the appropriate entries 
without regard to antidumping duties. We intend to instruct CBP to take 
into account the ``provisional measures deposit cap,'' in accordance 
with 19 CFR 351.212(d).
    Pursuant to Commerce's assessment practice, for entries that were 
not reported in the U.S. sales data submitted by TTI, we will instruct 
CBP to liquidate such entries at the China-wide rate. Additionally, if 
we determine that an exporter had no shipments of the subject 
merchandise, any suspended entries that entered under that exporter's 
case number (i.e., at that exporter's cash deposit rate) will be 
liquidated at the China-wide rate.\15\
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    \15\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011).
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    For the respondents which were not selected for individual 
examination in this administrative review and which qualified for a 
separate rate, the assessment rate will be equal to the weighted-
average dumping margin determined for the non-examined respondent in 
the final results of this administrative review. We will also instruct 
CBP to take into account the ``provisional measures deposit cap'' in 
accordance with 19 CFR 351.212(d).
    For the final results, if we continue to treat the six exporters 
preliminarily found not to qualify for separate rates as part of the 
China-wide entity, we will instruct CBP to apply an ad valorem 
assessment rate of 216.37 percent, the current rate established for the 
China-wide entity, to all entries of subject merchandise during the POR 
which were exported by those companies.\16\
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    \16\ For a full discussion of this practice, see Non-Market 
Economy Antidumping Proceedings: Assessment of Antidumping Duties, 
76 FR 65694 (October 24, 2011).
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    We intend to issue assessment instructions to CBP 15 days after the 
publication of the final results of this review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For the exporters 
listed above which have a separate rate, the cash deposit rate will be 
equal to the weighted-average dumping margin established in the final 
results of this review (except, if the rate is zero or de minimis, then 
a cash deposit rate of zero will be established for that company); (2) 
for previously investigated or reviewed Chinese and non-Chinese 
exporters not listed above that have separate rates, the cash deposit 
rate will continue to be equal to the exporter/producer-specific 
weighted-average dumping margin published for the most recently-
completed segment of this proceeding; (3) for all Chinese exporters of 
subject merchandise that have not been found to be entitled to a 
separate rate, the cash deposit rate will be the cash deposit rate 
established for the China-wide entity, 216.37 percent; and (4) for all 
non-Chinese exporters of subject merchandise which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the Chinese exporter that supplied that non-Chinese exporter. These 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    We are issuing and publishing these preliminary results of review 
in accordance with sections 751(a)(1), and 777(i)(1) of the Act, and 19 
CFR 351.221(b)(4).

    Dated: August 31, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Discussion of the Methodology
    a. Preliminary Determination of No Shipments
    b. Non-Market Economy Country Status
    c. Separate Rates
    i. Separate Rate Recipients
    1. Wholly Foreign-Owned Companies
    2. Wholly China-Owned Companies and Joint Ventures
    a. Absence of De Jure Control
    b. Absence of De Facto Control
    3. Companies Not Receiving a Separate Rate
    a. Weitron
    b. Companies Who Did Not File Separate Rate Applications

[[Page 45893]]

    c. Separate Rate Assigned to Non-Selected Companies
    d. The China-Wide Entity
    e. Surrogate Country
    f. Date of Sale
    g. Normal Value Comparisons
    h. Determination of Comparison Method
    i. Export Price
    i. Irrecoverable Value-Added Tax
    ii. TTI
    j. Normal Value
    i. Factor Valuations
    ii. By-Products
    iii. Currency Conversion
    iv. Verification
5. Recommendation

[FR Doc. 2018-19700 Filed 9-10-18; 8:45 am]
 BILLING CODE 3510-DS-P