U.S. makes preliminary ruling on countervailing duties for R125

  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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