Tariffs on Chinese Imported R-134A Refrigerant

There was a decision today made on MexiChem’s case of anti-dumping on R-134A Refrigerant by the International Trade Commission. The gist of MexiChem’s case is that the Chinese Refrigerant is being imported in such quantity and at such a low price that it prevents American companies from competing. They filed a lawsuit to the ITC hoping that tariffs would be forced against the Chinese product which would in turn raise the cost of the imports to be on the same level as the American made product.

Well, it didn’t go so well for MexiChem’s today! (I’m happy about this as it keeps cost low for everyone.)  Click here for an article from Air Conditioning News.

The summary of this article is below:

R-134a from China Do Not Harm US Industry

TLALNEPANTLA, Mexico — Mexichem, a global specialty chemicals company that produces refrigerant gases, announced that the U.S. International Trade Commission (ITC) has ruled that imports of R-134a refrigerant from China do not harm United States industry.

This ruling, however, runs counter to the U.S. Department of Commerce’s Oct. 15, 2014 proposed final resolution regarding antidumping duties and countervailing duties on Chinese refrigerant gases imported into the United States. This proposed resolution stated that imports from China of R-134a refrigerant, also known as HFC-134a or 1,1,1,2-Tetrafluoroethane, should be subject to antidumping duties of 280.67 percent and countervailing duties averaging 11.14 percent.

The full text of the U.S. ITC ruling is available at www.usitc.gov.

Based on currently available information, Mexichem said that it is considering appealing the ruling by the U.S. International Trade Commission.

Publication date: 11/10/2014

The actual International Trade Comission’s ruling can be seen by clicking this link as well.

The article is below as well:

November 12, 2014
News Release 14-114
Inv. Nos. 701-TA-509 and 731-TA-1244 (Final)
Contact: Peg O’Laughlin, 202-205-1819

1,1,1,2-TETRAFLUORETHANE (“R-134a”) FROM CHINA DOES NOT INJURE U.S. INDUSTRY, SAYS USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of 1,1,1,2-Tetrafluorethane (“R-134a”) from China that the U.S. Department of Commerce has determined are subsidized and sold in the United States at less than fair value.

Chairman Meredith M. Broadbent, Vice Chairman Dean A. Pinkert, and Commissioners David S. Johanson and F. Scott Kieff voted in the negative. Commissioners Irving A. Williamson and Rhonda K. Schmidtlein voted in the affirmative.

As a result of the USITC’s negative determinations, no antidumping or countervailing duty orders will be issued on imports of this product from China.

The Commission’s public report 1,1,1,2-Tetrafluorethane (“R-134a”) from China (Investigation Nos. 701-TA-509 and 731-TA-1244 (Final), USITC Publication 4503, November 2014) will contain the views of the Commissioners and information developed during the investigations.

The report will be available after December 15, 2014. After that date, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

Product Description: 1,1,1,2-Tetrafluoroethane (HFC-134a or R-134a) is a clear, colorless liquid or gas, which is gaseous at normal atmospheric conditions. The chemical formula for R-134a is CF₃-CH₂F, and the Chemical Abstracts Service (“CAS”) registry number is CAS 811- 97-2. R-134a is mainly used as a refrigerant for air conditioning (“A/C”) systems. It is the primary refrigerant in mobile (e.g., automobile) A/C systems and can be blended with other chemicals for use in stationary refrigeration systems. R-134a is also used as a propellant in pharmaceutical, household cleaning, and foam expansion products.

Status of Proceedings:

1. Type of investigations: Final antidumping and countervailing duty.
2. Petitioner:  Mexichem Fluor, Inc., St. Gabriel, LA. 
3. Investigations instituted by USITC:  October 22, 2013.
4. USITC hearing:  October 15, 2014.
5. USITC vote:  November 12, 2014.
6. USITC notification of Department of Commerce:  November 24, 2014.

U.S. Industry:

1. Number of U.S. producers in 2013:  3.
2. Location of producers' plants:  Delaware, Louisiana, and Pennsylvania. 
3. Employment of production and related workers in 2013: (1)
4. U.S. producers' U.S. shipments in 2013: (1)
5. Apparent U.S. consumption in 2013: (1) 
6. Ratio of subject imports to apparent U.S. consumption in 2013: (1)

U.S. Imports in 2013:

1. From the subject country during 2013: (1)
2. From other countries during 2013: (1)
3. Leading source during 2013:  China (in terms of total value).

(1) Withheld to avoid disclosure of business proprietary information.