The US Commerce Department on Monday set preliminary subsidy rates on Chinese refrigeration products whose technical name is 1, 1, 1, 2-Tetrafluoroethane, signaling that it may impose punitive duties on the products.

The department made its preliminary affirmative determination that Chinese producers and exporters of 1, 1, 1, 2- Tetrafluoroethane, received countervailable subsidies ranging from 1.35 percent to 28.74 percent.

Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (ITC) made affirmative final rulings, which are scheduled on Aug. 4 and Sept. 18, respectively. If the ITC makes a negative determination, the investigations will be terminated.

The US Commerce Department launched the anti-dumping and countervailing duties probes over Chinese refrigeration products last year requested by Mexichem Fluor, Inc., a refrigerant producer based in the US state of Louisiana.

The company alleged that these refrigeration products from China were sold below the fair value of the products in the US market with dumping margins at 198.52 percent, and Chinese producers and exporters also received improper government subsidies.

Imports of these products from China were estimated at 34.7 million US dollars last year, according to US official data.

The Chinese Ministry of Commerce has repeatedly urged Washington to abide by its commitment against protectionism and help maintain a free, open and just international trade environment.