Mexichem Asks for AD/CV Duties on Air Conditioner Refrigerant R-134a From China
Multinational chemical company Mexichem Fluor requested on Oct. 22 new antidumping and countervailing duties on 1,1,1,2-Tetrafluoroethane (also known as R-134a) from China. Mexichem alleges underselling and illegal subsidization by Chinese producers of R-134a is rapidly taking U.S. market share and injuring U.S. industry. R-134a is used as a refrigerant gas, mostly in vehicle air conditioning systems. It can also be used in stationary air conditioning units for commercial or residential buildings.
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Mexichem said domestic market share fell “significantly” during the period of review, and imports of R-134a from China accounted for all of this decline. Imports of Chinese R-134a more than tripled during the period of investigation on the back of Chinese subsidies and underselling, the petition said. This has caused U.S. producers to try to maintain market share by cutting prices, which led to falling profits. The harm is likely to continue, given that Chinese industry is still operating well under capacity, Mexichem said.
Proposed Scope
The petition did not propose specific scope language, but it said the following products should be subject to the investigation:
“The imported goods subject to the scope of this petition are described as follows: 1,1,1,2- Tetrafluoroethane (R-l34a, also described as Klea®134a or HFC 134a) or its chemical equivalent. Klea® is a trademark of the petitioner.
“The Harmonized Tariff item under which the goods subject to the scope should be imported is: 2903.39.2020 described as ‘1,1,1,2 - Tetrafluoroethane (HFC-134a) 3.7% duty rate.’
“However, for purposes of the scope, the narrative description is dispositive, not the tariff heading. … Petitioner believes that the HTS import data understates total import quantities as certain imports are being misclassified to avoid payment of the regular 3.7% tariff.”
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on R-134a from China. Comments are due by about Nov. 11.
Email ITTNews@warren-news.com for a copy of the petition.