On October 15, 2014, the Department of Commerce (Commerce) announced affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of 1,1,1,2-tetrafluoroethane from the People’s Republic of China (China).  Commerce determined that imports of 1,1,1,2-tetrafluoroethane from China have been sold in the United States at the dumping margin of 280.67 percent.  Commerce also determined that these imports have received countervailable subsidies ranging from 1.87 percent to 22.75 percent.

In the AD investigation, mandatory respondent Jiangsu Bluestar Green Technology Co., Ltd. received a final dumping margin of 280.67 percent. Commerce determined that Weitron International Refrigeration Equipment (Kunshan) Co., Ltd. was not an exporter and therefore not a respondent. Three other exporters qualified for a separate rate of 280.67 percent. All other producers/exporters in China were deemed part of the China-wide entity and received a final dumping margin of 280.67 percent.

In the CVD investigation, mandatory respondents T.T. International Co., Ltd. and JUHUA (including Zhejiang Quhua Fluor-Chemistry Co., Ltd., and other Juhua Stock Companies) received a final subsidy rate of 22.75 percent and 5.71 percent, respectively. Jiangsu Bluestar Green Technology Co., Ltd., a voluntary respondent, received a final subsidy rate of 1.87 percent. All other producers/exporters in China have been assigned a final subsidy rate of 14.23 percent.

As a result of the affirmative final AD determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits equal to the applicable weighted-average dumping margins. Further, as a result of the affirmative final CVD determination, if the U.S. International Trade Commission (ITC) issues an affirmative injury determination, Commerce will order the resumption of the suspension of liquidation and require a cash deposit for CVD duties equal to the final subsidy rates for the mandatory respondents and all other producers and exporters not selected for investigation. If the ITC issues a negative injury determination, both investigations will be terminated and no producers or exporters will be subject to future cash deposits for either AD or CVD duties. In such an event, all cash deposits already collected will be refunded.

The ITC is scheduled to make its final injury determinations on or about November 28, 2014.

1,1,1,2-tetrafluoroethane is an inert gas which is primarily used as a refrigerant in domestic refrigeration and automobile air conditioners.  However, the substance is used for numerous other purposes including: cleaning solvents, propellant for delivery of pharmaceuticals and as a propellant for airsoft air-guns.  In 2013, imports of 1,1,1,2-tetrafluoroethane from China were valued at an estimated $34.7 million.

The petitioner for these investigations is Mexichem Fluor Inc.

Questions about Antidumping and Countervailing Duties? Contact Frohsin & Barger.