China R-125: Commerce Issues CV Duty Final Determination

Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Feb. 14, according to a Commerce fact sheet. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.

Commerce also issued a final determination in its concurrent AD duty investigation on R-125 from China, setting AD rates ranging from 277.95% to 278.05% (see 2201070021).

Commerce Again Amends Scope Language on R-125 Blends

In its final AD/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 Except Sanmei

Commerce continued to find “critical circumstances” for all Chinese exporters except Zhejiang Sanmei Chemical, including Arkema, Daikin, Hongkong, Juxin, Weitron and the “all others” companies. Commerce will direct CBP to continue to suspend liquidation and require CV duty cash deposits for all companies except Sanmei on or after March 27, 2021. Suspension of liquidation for Sanmei remains in effect for entries on or after June 25, 2021.

CV Susp/Cash Deposit Through Oct. 22

For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from Oct. 22, 2021.

CV Liq Reinstated and No CV Cash Deposit as of Oct. 23

Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after Oct. 23, the expiration date of the 120-day “provisional measures” period during which Commerce can suspend liquidation without a CV duty order in place.

Suspension of liquidation currently remains in effect for AD duty purposes.

CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued

Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Chinese exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.

(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the “gap period” of Oct. 23 until the date an ITC final affirmative injury determination is published in the Federal Register.)

(The period of investigation is 01/01/20 - 12/31/20. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2106170024 for a summary of the preliminary determination of this investigation, and 2107090015 for the critical circumstances determination.)