[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33648-33650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13582]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-138]


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

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
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. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable June 25, 2021.

FOR FURTHER INFORMATION CONTACT: Joshua Tucker or 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) 482-2044 or (202) 482-6172, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 8, 
2021.\1\ On March 16, 2021, Commerce postponed the preliminary 
determination of this investigation to June 11, 2021.\2\ For a complete 
description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. 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 
http://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Pentafluoroethane (R-125) from the People's Republic of 
China: Initiation of Countervailing Duty Investigation, 86 FR 8589 
(February 8, 2021) (Initiation Notice).
    \2\ See Pentafluoroethane (R-125) from the People's Republic of 
China: Postponement of Preliminary Determination in the 
Countervailing Duty Investigation, 86 FR 14406 (March 16, 2021).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of 
Pentafluoroethane (R-125) from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is R-125 from China. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the preamble to Commerce's regulations, 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.\5\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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    Commerce intends to issue its preliminary decision regarding 
comments concerning the scope of the antidumping (AD) and 
countervailing duty (CVD) investigations in the preliminary 
determination of the companion AD investigation.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily 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.\6\
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    \6\ 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.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds 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 otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of R-125 from 
China based on a request made by the petitioner.\8\ Consequently, the 
final CVD determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
October 25, 2021, unless postponed.
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    \8\ See Petitioner's Letter, ``Request to Align Final 
Countervailing Duty Determination with Final Antidumping Duty 
Determination,'' dated May 21, 2021.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated individual estimated

[[Page 33649]]

countervailable subsidy rates for Zhejiang Quzhou Juxin Fluorine 
Chemical Co., Ltd. (Juxin) and Zhejiang Sanmei Chemical Ind. Co., Ltd. 
(Sanmei) that are not zero, de minimis, or based entirely on facts 
otherwise available. 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 
values for the value of their exports of subject merchandise to the 
United States.\9\
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    \9\ 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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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \10\ 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.
    \11\ 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.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Arkema Daikin Advanced Fluorochemicals (Changsu) Co.,             291.26
 Ltd....................................................
Daikin Fluorochemicals (China) Co., Ltd.................          291.26
Hongkong Richmax Ltd....................................          291.26
Weitron International Refrigeration Equipment (Kunshan)           291.26
 Co., Ltd...............................................
Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd. \10\..            3.23
Zhejiang Sanmei Chemical Ind. Co., Ltd. \11\............            2.31
All-Others..............................................            3.12
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Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance. 
Interested parties will be notified of the timeline for the submission 
of case briefs and written comments at a later date. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
seven days after the deadline date for case briefs.\12\ The deadlines 
for submitting case and rebuttal briefs on scope issues will be 
established as part of the preliminary determination in the companion 
AD investigation. Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties 
who submit case briefs or rebuttal briefs in this investigation 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.
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    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\13\
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    \13\ See 19 CFR 351.310(d).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: June 11, 2021.
Christian Marsh,
Acting 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,

[[Page 33650]]

type or purity level. R-125 has the Chemical Abstracts Service (CAS) 
registry number of 354-33-6 and the chemical formula C<INF>2</INF> 
HF<INF>5</INF>. R-125 is also referred to as Pentafluoroethane, 
Genetron HFC 125, Khladon 125, Suva 125, Freon 125, and Fc-125. 
Subject merchandise includes R-125, whether or not incorporated into 
a blend. When R-125 is blended with other products, only the R-125 
component of the mixture is covered by the scope of this 
investigation. Subject merchandise also includes R-125 and 
unpurified R-125 that is processed in a third country or otherwise 
outside the customs territory of the United States, including, but 
not limited to, purifying, blending, or any other processing that 
would not otherwise remove the merchandise from the scope of this 
investigation if performed in the country of manufacture of the in-
scope R-125. The scope also includes R-125 that is commingled with 
R-125 from sources not subject to this investigation. Only the 
subject component of such commingled products is covered by the 
scope of this investigation.
    Excluded from the current scope is merchandise covered by the 
scope of the antidumping order on hydrofluorocarbon blends from the 
People's Republic of China. See Hydrofluorocarbon Blends from the 
People's Republic of China: Antidumping Duty Order, 81 FR 55436 
(August 19, 2016).
    R-125 is classified under Harmonized Tariff Schedule of the 
United States (HTSUS) subheading 2903.39.2035. Merchandise subject 
to the scope may also be entered under HTSUS subheadings 
2903.39.2045 and 3824.78.0020. The HTSUS subheadings and CAS 
registry number are provided for convenience and customs purposes. 
The written description of the scope of the investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Conclusion

[FR Doc. 2021-13582 Filed 6-24-21; 8:45 am]
BILLING CODE 3510-DS-P