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Practice Areas

New AD Duties Sought on Hydrofluorocarbon Blends from China

Monday, June 29, 2015

A petition filed June 26 alleges that imports of certain hydrofluorocarbon blends and components from China are being sold at less than fair value. This product is a refrigerant used in commercial and residential air conditioners. The petitioner alleges dumping margins of 109.3 percent to 368.1 percent.

The proposed scope of this investigation covers blended HFCs and single HFC components of those blends thereof, whether or not imported for blending, including the following: R-404A, a zeotropic mixture consisting of 52 percent 1,1,1-trifluoroethane, 44 percent by weight pentafluoroethane, and 4 percent 1,1,1,2-tetrafluoroethane; R-407A, a zeotropic mixture of 20 percent difluoromethane, 40 percent pentafluoroethane and 40 percent eight 1,1,1,2-tetrafluoroethane, R-407C, a zeotropic mixture of 23 percent difluoromethane, 25 percent pentafluoroethane and 52 percent 1,1,1,2,-tetrafluoroethane; R-410A, a zeotropic mixture of 50 percent difluoromethan and 50 percent pentafluoroethane; and R-507A, an azeotropic mixture of 50 percent pentafluoroethane and 50 percent 1,1,1-trifluoroethane also known as R-507.

The proposed scope also covers the following single component HFCs used to produce the foregoing blends: R-32, R-125 and R-143a.

The petitioner has asked that the investigation include any Chinese HFC components that are blended in a third country to produce a subject HFC blend before being imported into the U.S. Also proposed for inclusion are semi-finished blends of Chinese HFC components, which are blends of one or more of the single-component Chinese HFCs used to produce the subject HFC blends, whether or not blended in China or a third country, that have not been blended to the specific proportions required to meet the definition of one of the subject HFC blends described above. Single-component HFCs and semi-finished HFC blends would not be excluded from the scope of this investigation when blended with HFCs from non-subject countries.

HFC blends proposed to be subject to this investigation are currently classified under HTSUS subheadings 3824.78.0000, and single component HFCs are currently classified under HTSUS subheading 2903.39.2030.

Proposed for exclusion from this investigation are blends of refrigerant chemicals that include products other than HFCs, such as blends including chlorofluorocarbons or hydrochlorofluorocarbons. Patented HFC blends would also be excluded.

The International Trade Administration and the International Trade Commission will next determine whether to launch AD duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.

For more information contact Kristen Smith at (202) 730-4965 or Mark Ludwikowski at (202) 730-4967.

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