Refrigerant Dumping Investigation


121913blog

by Jacques Gordon

The U.S. International Trade Commission has opened an investigation into allegations of refrigerant dumping by manufacturers in China. Dumping refers to the practice of selling a product in a foreign market below its home-market price, sometimes even below its actual production cost. While not specifically prohibited, dumping is “condemned” by the World Trade Organization (WTO) because it is typically done to drive competitors out of their own local market. The 159-member organization, which includes both the United States and China, has established rules and procedures for dealing with dumping through the General Agreement on Tariffs and Trade (GATT).

The U.S. International Trade Commission has determined there is “a reasonable indication” that U.S. refrigerant producers are being “materially injured” by imports of 1,1,1,2- Tetrafluoroethane from China being sold here at less than fair market value. That chemical is used primarily as the refrigerant R-134a and as aerosol can propellant. Principal manufacturers in the U.S. are DuPont and the U.S. arm of Mexichem, the company that petitioned the Trade Commission to open the investigation. As a result of the Commission’s determination, the U.S. Department of Commerce will now conduct their own investigation and presumably issue a “preliminary countervailing duty order” in January 2014 and a “preliminary antidumping duty order” in March. If upheld, these actions would add duty (import taxes) to raise the price of the product to something approximating the prevailing market price. The duty would be paid to the U.S. government by the foreign companies and/or the Chinese government.

In response, the Chinese government has formally requested, through the WTO Secretariat, consultations with the United States to discuss the way in which anti-dumping investigations are carried out when Chinese products are involved. While the U.S. has initiated anti-dumping activities and engaged in similar consultations over the years with other governments, including Korea, Viet Nam, the EU and Brazil, according to the WTO this is the eighth case filed by China against anti-dumping activities adopted by the US, and the fourth just this year. This may simply be a reflection of the level of trade between the two countries, but it may also indicate deeper differences. Some of the other products involved are automobiles, boiler parts, shrimp, saw blades, grain and steel.

 

The 34th annual Mobile Air Conditioning Society (MACS) Worldwide Training Conference and Trade Show, Power Up  will take place January 16-18 2014 at the Sheraton New Orleans. Go here to register.

The Mobile Air Conditioning Society’s blog has been honored as the best business to business blog in the Automotive Aftermarket by the Automotive Communications Awards and the Car Care Council Women’s Board!

When having your mobile A/C system professionally serviced, insist on proper repair procedures and quality replacement parts. Insist on recovery and recycling so that refrigerant can be reused and not released into the atmosphere.

If you’re a service professional and not a MACS member yet, you should be, http://bit.ly/10zvMYg for more information.

You can E-mail us at macsworldwide@macsw.org . To locate a Mobile Air Conditioning Society member repair shop in your area. Click here  to find out more about your car’s mobile A/C and engine cooling system.

 

 

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About macsworldwide

Mobile Air Conditioning Society (MACS) Worldwide Founded in 1981, MACS is the leading non-profit trade association for the mobile air conditioning, heating and engine cooling system segment of the automotive aftermarket. Since 1991, MACS has assisted more than 600,000 technicians to comply with the 1990 U.S. EPA Clean Air Act requirements for certification in refrigerant recovery and recycling to protect the environment. The Mobile Air Conditioning Society (MACS) Worldwide’s mission is clear and focused--as the recognized global authority on mobile air conditioning and heat transfer industry issues. www.macsw.org
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