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Home > In News > Final Finding issued in Anti-dumping investigation concerning imports of ‘Hydrofluorocarbon (HFC) Component R-32’ originating in or exported from China PR (23.09.2021)

Final Finding issued in Anti-dumping investigation concerning imports of ‘Hydrofluorocarbon (HFC) Component R-32’ originating in or exported from China PR (23.09.2021)

Product description – The product under consideration (PUC) is “Hydrofluorocarbon

Component R-32” or “Difluoromethane”. It has the chemical formula CH2F2 and is registered as CAS No. 75-10-5. It is also known as HFC-32, FC-32, Freon- 32, Methylene difluoride, Methylene fluoride, Carbon fluoride hydride, halocarbon R32, fluorocarbon R32, and IIN 3252.

HS Codes – 290339.

Uses – HFC Component R-32 is used in residential air conditioning systems.

Countries involved – China PR

Applicant – M/s. SRF Limited

Date of Initiation – 28th September, 2020

Period of Investigation – 1st April 2019 to 31st March 2020 (12 months)

Injury Period – 2016-17, 2017-18, 2018 –19 and the period of investigation

Dumping margin, Injury Margin & Proposed Duty – The following exporter specific dumping margin, injury margin and proposed duty has been determined by the Designated Authority.

Country Producers Dumping Margin (Range) Injury Margin (Range) Proposed Duty (US$/ MT)
Shandong Dongyue Chemical Co. Ltd. 50-60 60-70 1,171.78
China PR Zhejiang Quzhou Juxin Fluorine Chemical Co. Ltd. 70-80 80-90 1,394.96
Jiangsu Sanmei Chemical Ind. Co. Ltd. and Fujian Qingliu Dongying Chemical Ind. Co. Ltd. 70-80 70-80 1,344.60
Zibo Feiyuan Chemical Co. Ltd. 60-70 60-70 1,255.05
Any other 90-100 90-100 1,519.70

Key findings –

  1. The dumping and injury margins were calculated as weighted average of the margins calculated for packed and unpacked forms of the PUC.
  2. The questionnaire responses filed by Mihama India Pvt. Ltd., Stallion India Fluorochemicals Pvt. Ltd., and MPCL Indsutries Ltd. were rejected since they failed to provide a meaningful summary of the confidential submissions in the form of non-confidential version.
  3. The interested parties have not established impact of proposed ADD on the user industry with verifiable information. Even if there is an impact, it will be grossly insignificant on the eventual product.
  4. Fair competition in the Indian market will not be reduced by the ADD. Imposition of ADD will also not restrict imports.
  5. Normal value for all the producers/exporters from China has been determined on the basis of cost of production in India, after addition of SGA expenses and reasonable profit.
  6. Taixing Meilan New Materials Co. Ltd. and Taizhou Qingsong Refrigerant New Materials Co. Ltd. were treated non-cooperative since information wasn’t available for significant imports due to non-cooperation of an exporter, namely Honeywell Trading (Shanghai) Co. Ltd.
  7. The subject imports increased in absolute as well as relative terms and constituted 100% of all imports of the PUC into India. The subject imports are also undercutting, depressing, and underselling the prices of the domestic industry.
  8. The capacity utilisation of the domestic industry declined significantly and inventories increased. The performance of the domestic industry deteriorated in terms of profitability, profits, cash profits, and return on capital employed.
  9. There exists a causal link between the dumping of the subject goods and the injury to the domestic industry.
  10. The domestic industry has the potential to meet the demand in India however, is unable to do so due to the unfair imports.