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Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Notices
reasonable basis to believe or suspect that alleged subsidies in the New Subsidies Allegation are inconsistent with the SCM Agreement. As a result, we preliminarily find that the criterion under section 703e1A of the Act has been met for Juxin, Sanmei, and all other exporters or producers not individually examined.

potentially inconsistent with the SCM
Agreement.
Thus, because we preliminarily find that the Export Loans from Chinese SOCBs program is export-contingent, we preliminarily find that the criterion under section 703e1A of the Act has been met for Arkema, Daikin, Hongkong, and Weitron.

Non-Responsive Companies As explained in our Preliminary Determination, we preliminarily applied total adverse facts available AFA to Arkema Daikin Advanced Fluorochemicals Changsu Co., Ltd.
Arkema; Daikin Fluorochemicals China Co., Ltd. Daikin; Hongkong Richmax Ltd. Hongkong; and Weitron International Refrigeration Equipment Kunshan Co., Ltd. Weitron, pursuant to section 776b of the Act. In applying total AFA to these four companies, we preliminarily determined that each benefited from countervailable subsidies under the Export Loans from Chinese State-Owned Commercial Banks SOCBs program.17 Although we did not make a preliminary finding as to whether the Export Loans from SOCBs program was inconsistent with the SCM Agreement in the Preliminary Determination, we now preliminarily find, pursuant to section 776b of the Act, that there is a reasonable basis to believe or suspect that the program, as alleged in the Petition and supported by information reasonably available to the petitioner, is export-contingent within the meaning of section 7715AB of the Act and, thus, inconsistent with the SCM Agreement.18 We are making the inconsistency determination with regard to this program, which is the only program which we countervailed in the Preliminary Determination alleged to be inconsistent with the SCM Agreement.
In so doing, we intend to limit the corresponding offset to the dumping margin if one is found in the companion antidumping duty investigation, which best fulfills our statutory mandate to ensure that the party does not obtain a more favorable result by failing to cooperate than if it had cooperated fully, 19 and induce future cooperation by companies in investigations where the petitioners allege the existence of programs
Massive Imports Commerce compared the import volumes of Juxins and Sanmeis reported shipments of subject merchandise for the five months immediately preceding and following the filing of the petition. Because the petition was filed on January 11, 2021, and in order to determine whether there was a massive surge in imports for the mandatory respondents, Commerce compared the total volume of shipments during the period of August 2020
through December 2020 the base period with the volume of shipments during the period of January 2021
through May 2021 the comparison period.20 We preliminarily determine that imports from both Juxin and Sanmei increased by more than 15
percent between the base and comparison periods.21
However, for purposes of our massive imports determination, we received information on the record about seasonality with respect to Sanmeis imports which we considered as part of our analysis. Sanmei stated that, while it did experience a massive surge of imports of R125 between the base and comparison periods, this surge was seasonal in nature. Sanmei also provided its shipment data for comparable periods in 20182019 and 20192020.22 Based on our analysis of Sanmeis shipment data reported for 2018 through 2021, we find that there is a consistent pattern of seasonality evidenced by a significant increase in shipments during the months of January through May in 2019, 2020, and 2021, when compared to August through December in 2018, 2019, and 2020 . As a result, we preliminarily find that the record reflects that any surge in Sanmeis imports between the base and comparison periods in this investigation can be explained by seasonal trends.
Therefore, we preliminarily determine that, although the surge in imports of R

17 See Preliminary Determination PDM at Application of AFA: Non-Responsive Q&V
Questionnaire Recipients.
18 See Countervailing Duty Investigation Initiation Checklist: Pentafluoroethane R125
from the Peoples Republic of China, dated February 1, 2021.
19 See Statement of Administrative Action accompanying the Uruguay Round Agreements Act, H.R. Doc. 103316, Vol.1 1994 at 870, reprinted in 1994 U.S.C.C.A.N. 4040, 4199.

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20 See Juxin Critical Circumstances Data; see also Sanmei Critical Circumstances Data.
21 See Memorandum, Critical Circumstances Analysis, dated July 6, 2021.
22 See Sanmei Critical Circumstances Data. Juxin did not argue that its surge in imports between the base and comparison periods was due to seasonal trends nor did it provide data to permit Commerce to perform a seasonality analysis.

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125 from Sanmei during the comparison period was massive, the import surge was massive as a result of seasonal trends and, therefore, critical circumstances do not exist for Sanmei, in accordance with section 733e1B
of the Act.23
To determine whether imports were massive for all other exporters or producers, Commerces normal practice is to subtract shipments reported by the cooperating mandatory respondents from shipment data for subject merchandise from Global Trade Atlas.24
However, as discussed in the Initiation Notice,25 the Harmonized Tariff Schedule of the United States number under which the subject merchandise enters is a basket category under which non-subject merchandise may enter.
Therefore, consistent with our practice, we preliminarily relied on the data of the mandatory respondents as facts available, in accordance with section 776a1 of the Act, to determine whether imports from all other exporters or producers were massive.26
Because we preliminary determine that imports from both Juxin and Sanmei increased by more than 15 percent between the base and comparison periods, we also preliminarily determine that imports from all other exporters or producers were massive.
Finally, for Arkema, Daikin, Hongkong, and Weitron, we preliminarily determine, pursuant to section 776b of the Act, that there was a massive surge in imports between the base and comparison periods.
Accordingly, consistent with section 703e1 of the Act, we preliminarily determine that critical circumstances exist with respect to Arkema, Daikin, Hongkong, Juxin, Weitron, and all other exporters and producers not individually examined.
Final Determination We will make a final determination concerning critical circumstances in the final determination of this investigation, which is currently scheduled for October 25, 2021.
23 Id.
24 See, e.g., Antidumping Duty Investigation on Refillable Stainless Steel Kegs from Mexico:
Preliminary Affirmative Determination of Critical Circumstances, 84 FR 18796, 18798 May 2, 2019
Kegs from Mexico Preliminary Critical Circumstances Determination.
25 See Checklist, Countervailing Duty Investigation Initiation Checklist: Pentafluoroethane R125 from the Peoples Republic of China, dated February 3, 2021 Initiation Checklist; see also Initiation Notice.
26 See, e.g., Kegs from Mexico Preliminary Critical Circumstances Determination, 84 FR at 18798.

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