China R-125: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on pentafluoroethane (R-125) from China (A-570-137/C-570-138). The CV duty investigation covers entries Jan. 1, 2020, through Dec. 31, 2020. The AD duty investigation covers entries July 1, 2020, through Dec. 31, 2020.
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized R-125 from China are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Feb. 26, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due in April for CV duties and June for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CV duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
If duties are imposed, Chinese producers and exporters that do not demonstrate independence from government control and request eligibility for a “separate rate” will be assigned the antidumping duty “China-wide rate,” which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters will be available (here), and are due on or about March 10.
AD/CVD Respondent Selection
For both its AD and CV duty investigations, Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Exporters that don't get a quantity and value questionnaire can still submit one using the form available on the Commerce website. Responses are due Feb. 16.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation is pentafluoroethane (R-125), or its chemical equivalent, regardless of form, type or purity level. R-125 has the Chemical Abstracts Service (CAS) registry number of 354-33-6 and the chemical formula C2HF5. R-125 is also referred to as Pentafluoroethane, Genetron HFC 125, Khladon 125, Suva 125, Freon 125, and Fc-125. Subject merchandise includes R-125, whether or not incorporated into a blend. When R-125 is blended with other products, only the R-125 component of the mixture is covered by the scope of this investigation. Subject merchandise also includes R-125 and unpurified R-125 that is processed in a third country or otherwise outside the customs territory of the United States, including, but not limited to, purifying, blending 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-125. The scope also includes R-125 that is commingled with R-125 from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigation.
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: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) (the Blends Order).
R-125 is classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2903.39.2035. Merchandise subject to the scope may also be entered under HTSUS subheadings 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 investigation is dispositive.
Comments on the scope of these investigations are due by Feb. 22.
Investigations Timetable
| Event | CV Duty | AD Duty |
|---|---|---|
| Petitions filed | 01/12/21 | 01/12/21 |
| DOC initiation date | 02/01/21 | 02/01/21 |
| ITC prelim determinations | 02/26/21 | 02/26/21 |
| DOC prelim determinations | 04/07/21 | 06/21/21 |
| DOC final determinations | 06/21/21 | 09/07/21 |
| ITC final determinations | 08/05/21 | 10/22/21 |
| Issuance of orders | 08/12/21 | 10/29/21 |
These deadlines may, and usually are, extended. The Commerce Department fact sheet on the initiation of these investigations is (here). See 2101150035 for a summary of the petition requesting these investigations.