Product description: Hydrofluorocarbon (HFC) Component R-32 (Difluoromethane),

HS Code: Earlier classifiable under Chapter 29, HS Code 2903 39 19; changed from January 2022 to HS Code 2903 42 00.

Country: China PR.

Applicant: SRF Limited.

Date of Initiation: 24th September 2025

Period of Investigation: 1st April 2024 to 31st March 2025 (12 months)

Injury period: 2021-22, 2022-23, 2023-24 and the period of investigation.

Recommended duties

Key Findings

1. This is a sunset review examining whether expiry of the existing anti-dumping duty on R-32 from China PR is likely to lead to continuation or recurrence of dumping and injury.
2. SRF Limited was the sole domestic producer of R-32 through the injury period.
3. Two other Indian producers- Gujarat Fluorochemicals Limited and Navin Fluorine International Limited commenced production after the POI.
4. None of the participating Chinese producers/exporters rebutted the presumption of non-market economy status for China.
5. Normal value was constructed using the CIF export price from the UAE to India, a non-subject country with significant import volumes and no anti-dumping measure in force.
6. Price undercutting by Chinese imports remained positive and significant, in the range of 20–30%, persisting through the POI.
7. Landed price of imports rose during the POI due to a temporary supply reduction from China, but still remained below the domestic industry’s cost of sales.
8. The domestic industry was profitable in the base year, declined into losses by 2023-24, and returned to reasonable profitability in the POI as import prices rose.
9. China PR holds substantial freely disposable production capacity of 413,500 MT across various HFCs, with interchangeable capacities among producers.
10. Chinese export volumes to third countries at dumped, injurious, and attractive prices exceed India’s total demand, creating strong incentive to divert exports to India if duties lapse.
11. The low volume of Chinese exports to India during the POI is attributed to a temporary government-imposed production quota withholding, not reduced dumping risk.
12. A significant share of China’s third-country exports during the POI was priced below normal value, below the price charged to India, and below the domestic industry’s non-injurious price.
13. Chinese HFC producers (including of R-32) face anti-dumping/countervailing measures in other jurisdictions such as the USA and Argentina, reflecting a consistent pattern of injurious export pricing.
14. Continuation of the duty is not against the interest of Indian consumers or the wider public interest, as the impact on downstream products (ACs, refrigerants, heat pumps) is negligible in the range of 0.14%–0.68% of end-product price.
15. The domestic industry, together with the two newer Indian producers, has adequate capacity to meet Indian market needs.