Update: Commerce Announces Preliminary Determination of R-32 Dumping After Reversing Decision on Duties for HFC Blend Components

BY Alex Ayers
9/16/2020 - HVAC Government Affairs

Update: The U.S. Department of Commerce announced the preliminary determination on a request for antidumping duties on R-32 refrigerant from China. The Commerce Department has determined that exporters from China have dumped R-32 refrigerant, referred to as difluoromethane by the department, in the US with margins between 161 and 221 percent.

The final determination on this case will be announced in early November and the International Trade Commission will make a final injury determination in Mid-December. Both Commerce and ITC will need to make affirmative determinations to issue the anti-dumping order.

Original Post: Last week the U.S. Department of Commerce announced the final determination on a request for anti-circumvention duties on imports of HFC components used in making blends. Specifically, the inquiry looked at imports of R-32, R-125, and R-143a from China that were then processed into HFC blends including R-404A, R-407A, R-407C, R-410A, and R-507A. These blends are already under an order for anti-dumping duties when imported as a blend from China.

Earlier this year the department released a preliminary determination that these components were circumventing the anti-dumping duties put on the blends. However, after the preliminary decision was released the International Trade Commission released a written statement reiterating an earlier finding that component imports were not found to cause injury to the domestic industry. For this reason, Commerce did not add the components to the duties order on blends from China.

The preliminary decision caused volatility in the HFC refrigerant market earlier this year. With this final order, any duties paid after the preliminary decision must be refunded to the importers.

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We will continue to update you as we receive more information. Please reach out to Alex Ayers with any questions.