China Difluoromethane: New AD Duty Investigation Deadlines & Scope
The Commerce Department issued a notice in the Federal Register on its recently initiated antidumping duty investigation on difluoromethane (R-32) from China (A-570-121). The agency will determine whether imports of merchandise subject to this investigation are being sold in the U.S. at less than fair value. The period of investigation is July 1, 2019, through Dec. 31, 2019.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped R-32 are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due March 9, the investigation will immediately end. Conversely, if Commerce finds dumping in the preliminary determination of this investigation, currently due in July, it will set AD duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD duties on importers and potentially change AD duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a “separate rate” will be assigned the “China-wide rate,” which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters are due on or about March 25.
Respondent Selection
Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one using the form available on the Commerce website. Responses are due Feb. 28.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation is difluoromethane (R-32), or its chemical equivalent, regardless of form, type or purity level. R-32 has the Chemical Abstracts Service (CAS) registry number of 75-10-5 and the chemical formula CH2F2. R-32 is also referred to as difluoromethane, HFC-32, FC-32, Freon-32, methylene difluoride, methylene fluoride, carbon fluoride hydride, halocarbon R32, fluorocarbon R32, and UN 3252. Subject merchandise also includes R-32 and unpurified R-32 that are processed in a third country or the United States, including, but not limited to, purifying or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the in-scope R-32. R-32 that has been blended with products other than pentafluoroethane (R-125) is included within this scope if such blends contain 85% or more by volume on an actual percentage basis of R-32. In addition, R-32 that has been blended with any amount of R-125 is included within this scope if such blends contain more than 52% by volume on an actual percentage basis of R-32. Whether R-32 is blended with R-125 or other products, only the R-32 component of the mixture is covered by the scope of this investigation. The scope also includes R-32 that is commingled with R-32 from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigation.
Excluded from the current scope is merchandise covered by the scope of the antidumping order on hydrofluorocarbon blends from the People’s Republic of China. See Hydrofluorocarbon Blends from the People’s Republic of China: Antidumping Duty Order, 81 FR 55436 (August 19, 2016) (the Blends Order).
R-32 is classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2903.39.2035. Other merchandise subject to the current scope, including the above-mentioned blends that are outside the scope of the Blends Order, may be classified under 2903.39.2045 and 3824.78.0020. The HTSUS subheadings and CAS registry number are provided for convenience and customs purposes. The written description of the scope of the investigation is dispositive.
Comments on the scope of the investigation are due by March 3.
Investigations Timetable
| Event | AD Duty |
|---|---|
| Petitions filed | 01/23/20 |
| DOC initiation date | 02/12/20 |
| ITC prelim determinations* | 03/09/20 |
| DOC prelim determinations† | 07/01/20 |
| DOC final determinations† | 09/14/20 |
| ITC final determinations‡ | 10/29/20 |
| Issuance of orders+ | 11/05/20 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 2001280020 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The Commerce Department fact sheet on the initiation of these investigations is (here).
(Federal Register 02/24/20)