China R-125: Commerce Issues AD Duty Final Determination
The Commerce Department issued its final determination in the antidumping duty investigation on pentafluoroethane (R-125) from China (A-570-137). Cash deposit rates set in this final determination take effect Jan. 10.
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The next step is for the International Trade Commission to make its final injury determination, currently scheduled for Feb. 14, according to a Commerce fact sheet. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.
Commerce is also issuing its final determination in the concurrent countervailing duty investigation on R-125 from China (see 2201070023), setting CV duty rates ranging from 12.75% to 306.57%. Collection of CV duties is on hold pending the ITC's final injury determination.
Commerce Again Amends Scope Language on R-125 Blends
In its final ADD/CVD investigations, Commerce is again amending provisions of the scope on blends that contain R-125. While in the preliminary determination Commerce had said that such blends must have 85% R-125 content to be subject to AD/CV duties, Commerce is now amending the scope to say that blends with a relative majority of subject R-125 are covered by the AD/CV duty orders. The new language is as follows:
“R-125 contained in blends that do not conform to ANSI/ASHRAE Standard 34 is included in the scope of these investigations when R-125 constitutes the largest relative component by volume, on an actual percentage basis, of the blend.”
Critical Circumstances for All Chinese Companies, Cash Deposits Retroactive 90 Days
Commerce continued to find that all Chinese companies under investigation except Sanmei increased their exports to the U.S. in the runup to the preliminary determination. Commerce will continue to retroactively suspend liquidation for all Chinese companies except Sanmei back to 90 days before the preliminary determination, i.e., on or about May 19, 2021.
For Sanmei, suspension of liquidation and cash deposit requirements takes effect Aug. 17, 2021. Sanmei is also not subject to Commerce's critical circumstances finding in the concurrent CV duty investigation.
Estimated AD Cash Deposit Rates
Commerce will instruct CBP to continue to suspend liquidation for AD duty purposes and collect cash deposits for subject merchandise entered on or after the dates listed below, and set cash deposit rates as follows:
| Producer | Exporter | AD Rate | Adjusted* | Sus. Liq. |
|---|---|---|---|---|
| Zhejiang Sanmei Chemical Ind. Co., Ltd. | Zhejiang Sanmei Chemical Ind. Co., Ltd. | 277.95% | 267.41% | 08/17/21 |
| Fujian Qingliu Dongying Chemical Ind. Co., Ltd. | Zhejiang Sanmei Chemical Ind. Co., Ltd. | 277.95% | 267.41% | 08/17/21 |
| Shandong Dongyue Chemical Co., Ltd. | Shandong Dongyue Chemical Co., Ltd. | 277.95% | 267.41% | 05/19/21 |
| Shandong Huaan New Material Co., Ltd. | Shandong Huaan New Material Co., Ltd. | 277.95% | 267.41% | 05/19/21 |
| Sinochem Environmental Protection Chemicals (Taicang) Co., Ltd. | T.T. International Co., Ltd./T.T. International Co., Limited | 277.95% | 267.41% | 05/19/21 |
| Zhejiang Quhua Fluor-Chemistry Co., Ltd | T.T. International Co., Ltd./T.T. International Co., Limited | 277.95% | 267.41% | 05/19/21 |
| Zhejiang Sanmei Chemical Industry. Co., Ltd | T.T. International Co., Ltd./T.T. International Co., Limited | 277.95% | 267.41% | 05/19/21 |
| Jinhua Yonghe Fluorochemical Co., Ltd. | Zhejiang Yonghe Refrigerant Co., Ltd. | 277.95% | 267.41% | 05/19/21 |
| Zibo Feiyuan Chemical Co., Ltd. | Zibo Feiyuan Chemical Co., Ltd. | 277.95% | 267.41% | 05/19/21 |
| China-wide entity | 278.05% | 267.51% | 05/19/21 |
*As adjusted for export subsidies found in the CV duty investigation. This AD duty rate will serve as the AD duty cash deposit rate if and when CV duties are back in effect after Commerce issues its CV duty order. For now, the column marked “AD Rate” is the cash deposit rate.
(The period of investigation is 07/01/20 - 12/31/20. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 2108170028 for Commerce's preliminary determination.)