HFC Coalition Continues to Strongly Oppose U.S. International Trade Commission Allowing Chinese Imports of Dumped HFC Components to Evade Relief - Damage to U.S. Industry Increases

WASHINGTON, May 9, 2018 /PRNewswire/ -- In July of 2016, the U.S. International Trade Commission (ITC) determined that U.S. hydrofluorocarbon (HFC) producers were being injured by Chinese imports of HFC blends and that remedial duties should be imposed, but it also allowed the components of such blends to evade duties. The American HFC Coalition appealed that decision and strongly disagreed with the ITC's conclusion that components were not causing or threatening to cause material injury to U.S. HFC producers. In February 2018, the U.S. Court of International Trade remanded the case to the ITC for reconsideration. However, on May 2, 2018, the ITC issued a new decision reaching the same result – allowing HFC components to evade duties. The American HFC Coalition strongly disagrees with the new ITC decision and believes it is inconsistent with the facts and unsupported by the administrative record.

The American HFC Coalition will continue to oppose the ITC's refusal to correct its decision because imports of unfairly traded HFC components from China continue to increase. Following the imposition of antidumping duties on HFC blends, Chinese HFC producers are shipping the components to the United States and, in many cases, simply blending the components directly from ISO tanks in the parking lot at the importers' locations. Chinese components are also being shipped to third countries, such as India and Mexico, where they are blended and then re-exported to the U.S. market.

Few, if any, U.S. jobs are added by the relatively simple blending operations that are now routine in the United States. Chinese HFC producers are causing significant injuries to the U.S. HFC-blends industry by continuing to sell HFC blends in the U.S. market at prices that are substantially below fair market value.  The only difference now is that the components are being imported in separate containers and blended after arrival in the United States. As a result, the antidumping order on HFC blends is seriously undermined by the ITC's decision.

The Court will review the ITC's recent decision and decide whether to send it back again to the ITC for reconsideration. It is anticipated that the Court will rule on this latest decision by the ITC by the end of the year. The American HFC Coalition's position continues to be that the ITC must reconsider its decision, and find that both dumped HFC blends and dumped HFC components are subject to antidumping duties.

SOURCE The American HFC Coalition