American HFC Coalition Appeals ITC Ruling on Chinese HFC Components

December 20, 2016

In November, the American HFC Coalition appealed part of the decision by The U.S. International Trade Commission (ITC) that imports of hydrofluorocarbon (HFC) components are not causing or threatening to cause material injury to the U.S. industry producing HFC components.

The U.S. Department of Commerce found that imports of HFCs from China were being dumped in the U.S. market. The ITC voted to apply antidumping duties to HFC blends, such as R-410A or R-404A, but not to the individual components that make up the blends. The American HFC Coalition contends that the ITC’s decision regarding HFC components may create a loophole in the antidumping order on HFC blends.

Imports of HFC blends from China are now subject to antidumping duties ranging from 101.82 percent to 216.37 percent. Individual components that compose these blends are not subject to antidumping duties. As a result of the Commission decision, some companies are importing HFC components into the U.S. and blending those components here, a process that adds little value to the finished products.

The appeal was filed on behalf of the Coalition by the U.S. manufacturers of HFC components. The full Coalition has joined the appeal, seeking to overturn the ITC’s decision regarding HFC components. The pending appeal, filed at the United States Court of International Trade, contests the ITC’s decision to distinguish HFC components from HFC blends and to separate the U.S. industry into manufacturers and blenders. It is anticipated that the Court will rule on the case in six to nine months.