For Immediate Release
February 13, 2020
Contact: Office of Public Affairs
WASHINGTON – U.S. Secretary of Commerce Wilbur Ross today announced the initiation of a new antidumping duty (AD) investigation to determine whether difluoromethane (R-32) from China is being dumped in the United States.
The petitioner is Arkema, Inc. (King of Prussia, Pa.)
During this investigation, Commerce will determine whether imports of R-32 from China are being dumped in the U.S. market at less than fair value. The alleged dumping margin is 87.98 percent.
If Commerce makes an affirmative finding in this investigation, and if the U.S. International Trade Commission (ITC) determines that dumped imports of R-32 from China are causing injury to the U.S. industry, Commerce will impose duties on those imports equal to the amount of dumping found to exist.
The petitioner estimated that imports of R-32 from China were valued at approximately $21.5 million in 2018.
Read the fact sheet on today’s initiation.
During Commerce’s AD investigation, the ITC will conduct its own investigation into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determination on or before March 9. If the ITC preliminarily determines that there is injury or threat of injury, then Commerce’s investigation will continue, with the preliminary determination scheduled to be announced on July 2, unless this deadline is extended.
If Commerce preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing R-32 from China.
The final determination by Commerce in this case is scheduled for September 14, but this date may be extended. If Commerce finds that products are not being dumped, or the ITC finds in its final determination there is no harm to the U.S. industry, then the investigation will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 201 new AD and CVD investigations – this is a 172 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfairly subsidized imports into the United States. Commerce currently maintains 516 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies, and is limited to specific enterprises or industries or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.