U.S. Dept. of Commerce Determines Critical Circumstances in China HFC Dumping

May 28, 2016

The U.S. Department of Commerce (DOC) has determined that imports of hydrofluorocarbon (HFC) blends and components from the People’s Republic of China are being, or are likely to be, sold in the United States at less than fair value. The Department of Commerce also determined that ‘critical circumstances’ exist with respect to imports of these HFCs.

By finding that critical circumstances exist, DOC is able to impose duties retroactively prior to the affirmative preliminary determination. HFC refrigerants covered in the finding include but are not limited to: R-404A, R-407A, R-410A and R-507A. The period of investigation was October 1, 2014, through March 31, 2015 and the petitioners are The American HFC Coalition and its individual members and District Lodge 154 of the International Association of Machinists and Aerospace Workers.

On February 1, 2016, the Department published its preliminary determination that sales of these HFCs from China were sold at less than fair market value. Since that time, the Department attempted to verify sales and factors of production from producers and invited comments on the preliminary determination in this investigation.

Commerce has determined weighted margin duty rates between 101.82 percent and 216.37 percent. These duties can potentially cause prices to more than double the current U.S. market prices of the refrigerants covered in this petition. U.S. International Trade Commission makes its final injury determination August 1, 2016. If the ITC makes an affirmative final determination that imports of these HFCs and the single component gases such as R-32, R-125, and R-143a from China materially injure, or threaten material injury to, the domestic industry, then the Department of Commerce will issue an anti-dumping order.