Argentina Announced No Anti-dumping Duties On China HFC Refrigerants In Preliminary Rules

- Sep 10, 2019-


The Argentine Ministry of Production and Labor issued Resolution 2019/96 on August 5, 2019, and decided to continue anti-dumping investigations on HFC compounded refrigerants originating in China without temporary anti-dumping duties. The HS. Code of the HFC refrigerants is: 3824.78.10 and 3242.479.00.

The preliminary ruling announcement is as follows:


MINISTRY OF PRODUCTION AND WORK

SECRETARIAT OF FOREIGN TRADE

Resolution 96/2019

RESOL-2019-96-APN-SCE # MPYT

City of Buenos Aires, 08/02/2019

HAVING SEEN File No. EX-2018-61016579- -APN-DGD # MPYT, and

CONSIDERING:

That, through the file cited in the Seen, the company FRÍO INDUSTRIAS ARGENTINAS S.A. requested the initiation of an investigation for alleged dumping in export operations to the ARGENTINE REPUBLIC of mixtures containing tetrafluoroethane and pentafluoroethane and mixtures containing difluoromethane and pentafluoroethane, originating in the CHINESE POPULAR REPUBLIC, goods classified in the tariff positions of the Common Nomenclature MERCOSUR (NCM) 3824.78.10 and 3824.78.90.

That by means of Resolution No. 7 dated February 21, 2019 of the SECRETARIAT OF FOREIGN TRADE of the MINISTRY OF PRODUCTION AND LABOR, the investigation was initiated for alleged dumping of the product originating in the PEOPLE'S REPUBLIC OF CHINA.

That the Ministry of Foreign Trade of the aforementioned Ministry prepared, on May 20, 2019, the corresponding Report on the Preliminary Determination of the Dumping Margin, IF-2019-47534939-APN-SCE # MPYT, stating that there are elements that allow preliminary determination the existence of a dumping margin in the export to the ARGENTINE REPUBLIC of 'mixtures containing tetrafluoroethane and pentafluoroethane and mixtures containing difluoromethane and pentafluoroethane, originating in the PEOPLE'S REPUBLIC OF CHINA.

That, from the Report mentioned in the preceding instant recital, it follows that the dumping margin determined for this stage of the investigation is THIRTY-THREE EIGH ZERO EIGHT PERCENT (33.08%) for export operations to the ARGENTINE REPUBLIC of the product in question originating in the REPUBLIC OF CHINA.

That within the framework of Article 21 of Decree No. 1,393 dated September 2, 2008, the aforementioned Secretariat sent a copy of the aforementioned Report to the NATIONAL COMMITTEE ON FOREIGN TRADE, a decentralized body within the scope of said Secretariat.

That, on the other hand, the aforementioned NATIONAL COMMITTEE ON FOREIGN TRADE, was issued with respect to damage and causality through the Board of Directors Act No. 2175 dated July 5, 2019, IF-2019-60803439-APN-CNCE # MPYT , preliminary determining that the “'mixtures containing tetrafluoroethane and pentafluoroethane' originating in the People's Republic of China find a similar product in the 'chlorodifluoromethane (R22)' of national production” and that the ““ mixtures containing difluoromethane and pentafluoroethane ”originating from the People's Republic of China find a similar product in the 'mixtures containing difluoromethane and pentafluoroethane (R410)' of national production ”.

That, likewise, the aforementioned National Commission concluded that with the information available at this stage of the investigation, it does not have the necessary elements to be issued positively in the scope of its respective competencies, nor to determine the closure of the investigation, recommending that continue the investigation until its final stage, as established in Article 23 of Decree No. 1393/08

That the said body, through the Note dated July 5, 2019, which as NO-2019-60805512-APN-CNCE # MPYT looks in the reference file, sent a synthesis of the considerations related to the determinations made in the aforementioned Minutes.

That, in this regard, the aforementioned National Commission indicated that imports of substitute mixtures originating in the CHINESE POPULAR REPUBLIC, although they increased both in absolute terms and relative to apparent consumption and national production in 2017, decreased in the year 2018, and even between the end of the whole years, both in volume and in its participation in the market.

That, in this context, the volume indicators of the national production showed, in general, the same behavior, showing a loss of market share throughout the entire period.

That, all this occurred in a context of apparent consumption, also oscillating in which the market share lost by both the investigated imports and the national production was obtained by the rest of the imports, within which those of the UNITED STATES OF AMERICA earned THREE (3) percentage points and those of R22 (of all origins), SEVEN (7) percentage points.

That, likewise, the aforementioned National Commission observed that the price of the imported product was both below and above the national product, depending on the price comparison considered.

That, in addition, the NATIONAL COMMITTEE ON FOREIGN TRADE reported, regarding refrigerang Gas R410, that imports by volume also showed an oscillating behavior, although increasing in 2018 and between the end of the entire years analyzed.

That, in terms of national production, the ratio increased in 2017 but decreased in 2018, at levels below those of 2016, although showing very significant percentages at all times.

That, on the other hand, in relation to apparent consumption, after a slight decrease in 2017, recovered at the end of the period, its initial participation of NINETY AND FOUR PERCENT (94%).

That, the indicators of the national industry showed oscillating behaviors and in several inverse cases, with increases and increases depending on the variable analyzed

That, in this framework, the participation in the market of the company FRIO INDUSTRIAS ARGENTINAS S.A. It increased in 2017, to reach its maximum participation of THREE PERCENT (3%) and decreased in 2018, although it should not be overlooked that such participation was always very insignificant.

That, on the other hand, the aforementioned National Commission indicated that price comparisons resulted in decreasing undervaluations, notwithstanding which, it was also observed in one of the alternatives made overvaluation at the end of the period.

That, the aforementioned National Commission indicated that, without prejudice to the behavior of the variables described above, there are relevant factors when assessing the existence of damage to the domestic industry, both of R22 and of the mixtures containing difluoromethane and pentafluoroethane (R410) that require deeper investigation.

That said technical body continued to point out that, in fact, although more information has been incorporated in this instance regarding the impact of the Montreal Protocol and the corresponding legislation on the market, the Board of Directors considered that it is still necessary to have more information regarding of the evolution of the variables within the framework of these restrictions.

That, this analysis would require the inclusion of information from a longer period of time, by way of reference, that allows interpreting the behavior of the market, of imports and of national production in a more finished way.

That, likewise, the NATIONAL COMMITTEE ON FOREIGN TRADE indicated that, from the new information available, it emerged that it is necessary to deepen with respect to certain mixtures and their relationship with R22, in particular with regard to the possibility of substitution with all the mixtures analyzed , especially considering what was exposed with respect to R404.

That, on the other hand, the aforementioned agency, with respect to R410, indicated that the fact that the petitioner has made imports during the entire period under investigation is not less important, so it is also necessary to deepen this aspect, especially considering the arguments that the company gave to explain its supply of Chinese product, a circumstance that, if extended over time, would prevent the domestic industry from consolidating its position in the market.

 

That, in this context, its very low participation in apparent consumption due to its low production and sales levels must be taken into account.

That, also, the aforementioned National Commission indicated that, as stated above, it is also necessary to inquire in a later instance regarding the data related to the production costs of the R410 of the firm FRIO INDUSTRIAS ARGENTINAS SA, because the evolution of certain components would be, in principle, atypical, considering the possibilities presented by the “in situ” verification instance to verify both the data provided, and the methodology used in order to ascertain the accuracy of the information provided.

That, finally, the aforementioned agency pointed out that in order to have more information regarding the price comparisons of R410, it is necessary to obtain more details regarding the differences that the type of packaging generates in the conformation of costs and prices of the national product.

That, in this context, the NATIONAL COMMITTEE ON FOREIGN TRADE indicated that it is also important to note that in the next stage, information will be incorporated from companies that were not considered in this instance because they did not comply with the necessary requirements within the period established for that purpose.

That, both this information and the new data that can be generated from the greater required deepening could provide an important critical mass in order to assess the existence of damage to the domestic industry.

That, in that regard, the aforementioned body indicated that it should not be overlooked that the conclusions reached regarding the issues described above will have effects on the analysis to be carried out as to the effect of the dumped imports on the industry national of R22 and R410.

That, the NATIONAL COMMITTEE ON FOREIGN TRADE indicated that for all the foregoing, in this instance of the investigation, it does not have sufficient elements to be issued positively about the existence of damage to the national production branch of R22 and the branch of National production of mixtures containing difluoromethane and pentafluoroethane (R410), as well as to determine the closure of the investigation, resulting in the deepening, in the next stage, of the aforementioned aspects.

That, in view of the reasons set forth, the aforementioned National Commission concludes that, from the point of view of its competence, it is necessary to continue with the investigation until its final stage, as established in Article 23 of Decree No. 1393/08.

That, the aforementioned body observed that, by virtue of the foregoing conclusion, it is not appropriate to issue a causal relationship.

That, finally, the aforementioned National Commission indicated that, pursuant to the provisions of Article 1 of Resolution No. 381 dated May 30, 2019 of the MINISTRY OF PRODUCTION AND LABOR, based on the analysis performed, it recommends continuing the investigation , as established in Article 23 of Decree No. 1393/08.

That, in accordance with the foregoing recitals, the extremes required by the Agreement Relating to the Application of Article VI of the General Agreement on Tariffs and Trade of 1994, incorporated into our legal system through Law No. 24,425, are assembled, to continue the investigation without the application of provisional anti-dumping measures, to the export operations to the ARGENTINE REPUBLIC of mixtures containing tetrafluoroethane and pentafluoroethane and mixtures containing difluoromethane and pentafluoroethane originating in the CHINESE PEOPLE'S REPUBLIC.

That the competent areas in the field have taken part.

That the General Directorate of Legal Affairs of the MINISTRY OF PRODUCTION AND LABOR has taken the intervention that corresponds to it.

That this resolution is issued in use of the powers conferred by the Law of Ministries (text ordered by Decree No. 438/92) and its amendments, and Decree No. 1,393/08.

Thus,

THE SECRETARY OF FOREIGN TRADE

RESOLVES:

ARTICLE 1.- Continue the investigation for alleged dumping in the export operations towards the ARGENTINE REPUBLIC of mixtures containing tetrafluoroethane and pentafluoroethane and mixtures containing difluoromethane and pentafluoroethane originating in the PEOPLE'S REPUBLIC OF CHINA, goods classified in the tariff positions of the Common Nomen of MERCOSUR (NCM) 3824.78.10 and 3824.78.90, without the application of provisional anti-dumping duties.

ARTICLE 2.- Comply with the relevant notifications under the Agreement Relating to the Application of Article VI of the General Agreement on Tariffs and Trade of 1994, incorporated into our legal system through Law No. 24,425, regulated by Decree No. 1,393 / 08.

ARTICLE 3.- The present resolution will be effective as of the day following its publication in the Official Gazette.

ARTICLE 4.- Communicate, publish, give yourself to the NATIONAL ADDRESS OF THE OFFICIAL REGISTRATION and file. Delia Marisa Bircher