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Hydrofluorocarbon Blends from China, But Not Components, Injure U.S. Industry, Says USITC

July 22, 2016
News Release 16-095
Inv. No. 731-TA-1279 (Final)
Contact: Peg O'Laughlin, 202-205-1819
Hydrofluorocarbon Blends from China, But Not Components, Injure U.S. Industry, Says USITC

The United States International Trade Commission (USITC) today announced its determinations in its final phase antidumping duty investigation concerning hydrofluorocarbon blends and components from China.

The Commission found two domestic like products in this investigation and determined that a U.S. industry is materially injured by reason of imports of hydrofluorocarbon blends from China that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.  The Commission further determined that a U.S. industry is not materially injured or threatened with material injury by reason of hydrofluorocarbon components from China that Commerce has determined are sold in the United States at less than fair value.

All six Commissioners voted in the affirmative with respect to hydrofluorocarbon blends from China and in the negative with respect to hydrofluorocarbon components from China.

As a result of the USITC’s affirmative determination, the Commerce will issue an antidumping duty order on imports of hydrofluorocarbon blends from China.  As a result of the Commission’s negative determination, no orders will be issued on imports of hydrofluorocarbon components from China.

The Commission also made negative findings with respect to critical circumstances with regard to imports of hydrofluorocarbon blends from China.  As a result, goods that entered the United States from China prior to February 1, 2016, will not be subject to retroactive antidumping duties (date is the date of the Department of Commerce’s affirmative preliminary determination).

The Commission’s public report Hydrofluorocarbon Blends and Components from China (Investigation No. 731-TA-1279 (Final), USITC Publication 4629, August 2016) will contain the views of the Commission and information developed during the investigation.

The report will be available by July 26, 2016; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Hydrofluorocarbon Blends and Components from China
Investigation No. 731-TA-1279 (Final)

Product Description: Hydrofluorocarbon blends and their hydrofluorocarbon components, whether or not the components are imported for blending, are organic chemical compounds containing only hydrogen, fluorine, and carbon. HFC blends R-404A, R-407A, R-407C, R-410A, and R-507A are composed of two or three of the following HFC components: R-32, R-125, R-134a, and R-143a. Although it is a component in multiple blends, HFC component R-134a is specifically excluded from this investigation. The three component HFCs subject to this investigation are used primarily as inputs for the subject HFC blends but also have limited applications as fire suppressants (R‐125) and propellants (R‐143a). R‐32 was approved in February 2015 for self‐contained air conditioning systems in the U.S. market. The blends are used primarily for low- and medium-temperature refrigeration and air conditioning. The most common applications are residential air conditioning and heat pumps, commercial air conditioning, commercial refrigeration (e.g., walk-in coolers and supermarket display cases), transportation refrigeration, and process refrigeration (e.g., food processing and chemical manufacturing). As they were developed to replace a single refrigerant, R-22, in these low‐ and medium‐temperature conditions, the subject blends have considerable overlap in their applications.

Status of Proceedings:
1. Type of investigation:  Final antidumping.
2. Petitioners: The American HFC Coalition and its members: Amtrol, Inc., West Warwick, RI; Arkema, Inc., King of Prussia, PA; The Chemours Company FC LLC, Wilmington, DE; Honeywell International Inc., Morristown, NJ; Hudson Technologies, Pearl River, NY; Mexichem Fluor Inc., St. Gabriel, LA; Worthington Industries, Inc., Columbus, OH; and District Lodge 154 of the International Association of Machinists and Aerospace Workers.
3. Investigation instituted by USITC: June 25, 2015.
4. USITC hearing: June 21, 2016.
5. USITC vote: July 22, 2016.
6. USITC notification of Department of Commerce: August 5, 2016.

U.S. Industry:
1. Number of component producers in 2015: Two.
2. Location of component producers’ plants:  Kentucky and Louisiana.
3. Number of blend producers in 2015: Six.
4. Location of blend producers’ plants:  Indiana, Kentucky, Louisiana, Michigan, New Jersey, and Texas.
5. Employment of production and related workers in 2015: [1]
6. Apparent U.S. consumption in 2015: 1
7. Ratio of the value of total U.S. imports to total U.S. consumption in 2015: 1

U.S. Imports:
1. From the subject country during 2015: 1
2. From other countries during 2015: 1
3. Leading sources during 2015: 1

 

[1] Withheld to avoid disclosure of business proprietary information.

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