On June 14, 2021, the U.S. Department of
Commerce announced an affirmative preliminary countervailing duty ruling on
R125 Pentafluoroethane imported from China. According to the preliminary
ruling, the countervailing duty rates of Zhejiang Quzhou Juxin Fluorine
Chemical Co., Ltd. and Zhejiang Sanmei Chemical Ind. Co., Ltd. are 3.23% and
2.31% respectively. The countervailing duty rates of Arkema Daikin Advanced
Fluorochemicals (Changsu) Co., Ltd., Daikin Fluorochemicals (China) Co., Ltd.,
Hongkong Richmax Ltd., and Weitron International Refrigeration Equipment
(Kunshan) Co., Ltd. is 291.26%, and the countervailing duty rate rate of other
Chinese producers and exporters is 3.12%. The U.S. Department of Commerce will
be expected to make the final countervailing duty adjudication on October 25,
2021.
On January 12,2021, the American company
Honeywell International Inc. applied for an investigation on Chinese R125
Pentafluoroethane to the U.S. Department of Commerce and United States
International Trade Commission (ITC). On February 2, 2021, the U.S. Department
of Commerce launched an anti-dumping and countervailing action against R125
products from China. On February 25, 2021, the ITC voted for the affirmative
preliminary ruling on countervailing duties for R125 Pentafluoroethane from
China. The products subject to investigation are classified under the following
HS code: 2903.39.2035. After a vote,
U.S. Department of Commerce announced its affirmative preliminay ruling for
countervailing duties against R125 pentafluoroethane imported from China.
Hydrofluorocarbon refrigerants do not damage ozone but contribute to
global warming
Pentafluoroethane, also known as R125, is a
fluorocarbon that is commonly used in refrigeration systems and also as a
gaseous fire retardant. Pentafluoroethane is often favored for use in fire
suppression, as it is a clean agent that does not leave a residue on objects,
and as it does not damage the ozone layer. However, the United States
Environmental Protection Agency has reported that pentafluoroethane gas
contributes to global warming over 3000 times as much as carbon dioxide gas of
the same volume.
Hydrofluorocarbons mainly include R134A, a
substitute of R12 refrigerant, R125, R32, R407C, R410A, a substitute of R12
refrigerant, and R152. The ozone depletion potential of hydrofluorocarbon
refrigerants is zero, but the global warming potential is high; thus, according
to the Montreal Protocol, the service life of hydrofluorocarbon refrigerants
has no limit, and they are considered as greenhouse gases according to the
Kyoto Protocol under the United Nations Framework Convention on Climate Change.
Other anti-dumping actions towards China’s refrigerant products in the
US
In August of 2020, the U.S. Department of
Commerce released an announcement stating that a an anti-dumping duty
resolution would be applied to hydrofluorocarbon refrigerants imported to the
United States from China. However, the resolution exempted refrigerant products
containing R32, R125, and R143a from this duty. The products that were the
target of the Department of Commerce resolution were those classified under the
HS codes 3824.78.0020 and 3824.78.0050.
The Department of Commerce's resolution in
August, 2020 was the finale in a series of investigations targeted against
refrigerants imported to the United States from China. In July of 2015, the
U.S. Department of Commerce began an anti-dumping investigation into
hydrofluorocarbon refrigerants imported from China, namely those classified
under the HS codes 3824.78.0000 and 2903.39.2030. In June of 2016, the
Department of Commerce concluded its investigation by implementing an anti-dumping
final resolution against hydrofluorocarbon refrigerants imported from China. In
June of 2019, the Department of Commerce opened another investigation into
hydrofluorocarbon refrigerants imported from China after receiving an
application from the American HFC Coalition. In April of 2020, the Department
of Commerce concluded this second investigation by annoucing an
anti-circumvention final resolution on hydrofluorocarbon refrigerants imported
from China.
For more information, please check our
resources on China’s
Fluorine market.
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