WASHINGTON, Nov. 23, 2016 /PRNewswire/ -- The American HFC Coalition has appealed, in part, the decision by The U.S. International Trade Commission that imports of hydrofluorocarbon (HFC) components are not causing or threatening to cause material injury to the U.S. industry producing HFC components. The appeal was filed on behalf of the Coalition by the U.S. manufacturers of HFC components. The full Coalition has joined the appeal, seeking to overturn the ITC's decision regarding HFC components.
Although the American HFC Coalition was pleased by the ITC's finding that HFC blends were causing material injury to the U.S. industry, the decision regarding HFC components has the potential to create a major loophole in the antidumping order on HFC blends. After a year-long investigation by the U.S. Department of Commerce, which found that imports of HFCs from China were being dumped in the U.S. market, the ITC voted to apply antidumping duties to HFC blends, such as R-410A or R-404A, but not to the individual components the make up the blends. As a result, imports of HFC blends from China are now subject to antidumping duties ranging from 101.82 percent to 216.37 percent. Yet, antidumping duties are not being applied to imports of the individual components.
As a result of the Commission decision, various companies have already begun to import HFC components and blend those components in the United States. Blending alone can be a relatively simple process that adds little value to the finished products. Few if any U.S. jobs and insignificant investment are added by shifting the blending operations from China to the United States. Consequently, the antidumping order on HFC blends is undermined by this decision.
The pending appeal, filed at the United States Court of International Trade in New York, contests the ITC's decision to distinguish HFC components from HFC blends and to separate the U.S. industry into manufacturers and blenders. The American HFC Coalition has complained that the record evidence, the law, and common sense are at odds with the ITC determination. It is anticipated that the Court will rule on the case in six to nine months.
SOURCE The American Hydrofluorocarbon Coalition