U.S. Department of Commerce Announces Preliminary Antidumping Duties on HFC Blends Imported from China

February 12, 2016

In February, the U.S. Department of Commerce published a preliminary determination finding that imports from China of Hydrofluorocarbon (HFC) blends used in air conditioning and refrigeration are being dumped in the U.S. market. HFC blends R-410A, R-404A, R-407A, R-407C and R-507 (also known as R-507A) as well as the single component HFCs R-32, R-125 and R-143a are covered in this determination.

The American Hydrofluorocarbon Coalition and its members filed an antidumping duty petition in July 2015 alleging that certain Chinese HFC blends and components were being sold at less than fair value. The Department of Commerce will make a final determination in June 2016.

Antidumping duties ranging from 91.99 percent to 210.46 percent are being imposed on imported HFC blends from China. Further, the Department of Commerce determined that certain Chinese producers and importers were attempting to build inventories of HFC blends in the U.S. market prior to the imposition of antidumping duties. Based on this evidence, the Commerce Department concluded that “critical circumstances” exist for some the Chinese producers.

As a result, antidumping duties will be applied retroactively. Imports from certain producers will be subject to antidumping duties on all imports to the U.S. that occurred after November 1, 2015. Low-priced HFC imports from China have increased by 80 percent from 2012 to 2014, and increased even after the antidumping petition was filed. Industry members see the imposition of antidumping duties as a positive step toward restoring fair trade conditions and believe that falling prices would cause the U.S. industry to be unable to maintain current production levels or to develop the next generation of refrigerants.