Petition Filed for New AD Duties on R-32 Refrigerant From China

A domestic manufacturer filed petitions on Jan. 22 with the Commerce Department and the International Trade Commission requesting new antidumping duties on difluoromethane (R-32) from China. Commerce will now decide whether to begin an AD duty investigation on the refrigerant. The investigation was requested by Arkema.

R-32 is currently not subject to any trade remedies, though it is on List 4B of the Section 301 tariffs on China, and was marked for a 15% tariff before the U.S. and China reached a “phase one” trade deal suspending the duties. R-32 was also subject to the AD duty investigation conducted in 2015 and 2016 on hydrofluorocarbon blends and components from China, but in the end only hydrofluorocarbon blends were covered by the resulting AD duty order, and components like R-32 were exempted from duties.

Proposed Scope

The petition proposes the following scope for the investigations:

The merchandise covered by this investigation is difluoromethane (“R-32”), or its chemical equivalent, regardless of form, type or purity level. R-32 has the Chemical Abstracts Service (“CAS”) registry number of 75-10-5 and the chemical formula CH2F2. R-32 is also referred to as difluoromethane, HFC-32, FC-32, Freon-32, methylene difluoride, methylene fluoride, carbon fluoride hydride, halocarbon R32, fluorocarbon R32, and UN 3252. Subject merchandise also includes R-32 and unpurified R-32 that are processed in a third country or the United States, including, but not limited to, purifying or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the in-scope R-32. R-32 that has been blended with products other than pentafluoroethane (R-125) is included within this scope if such blends contain 85% or more by volume on an actual percentage basis of R-32. In addition, R-32 that has been blended with any amount of R-125 is included within this scope if such blends contain more than 52% by volume on an actual percentage basis of R-32. Whether R-32 is blended with R-125 or other products, only the R-32 component of the mixture is covered by the scope of these orders. The scope also includes R-32 that is commingled with R-32 from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this order.

Excluded from the current scope is merchandise covered by the scope of the antidumping order on Hydrofluorocarbon Blends from the People's Republic of China. See Hydrofluorocarbon Blends from the People's Republic of China, 81 Fed. Reg. 55436 (Aug. 19, 2016) (the “Blends Order”).

R-32 is classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2903.39.2035. Other merchandise subject to the current scope, including the above-mentioned blends that are outside the scope of the Blends Order, may be classified under 2903.39.2045 and 3824.78.0020. The HTSUS subheadings and CAS registry number are provided for convenience and customs purposes. The written description of the scope of the petition is dispositive.

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 an antidumping duty investigation. Comments are due Feb. 11.

Email ITTNews@warren-news.com for a copy of the petition.