Chinese Antidumping History
years, Chinese foreign trade growth rate is by far higher than that
of international trade. It is self-evident that China is a country
that has a huge market with great potentials. After China's accession
to WTO, tariff has been reduced to a quite low level, and the monopoly
and restriction to import will be gradually reduced in the near future.
This will result in the increase of import of foreign commodities
with large quantity and in high speed. Antidumping is one of the very
few methods that is allowed to protect domestic industry by WTO. Therefore,
anti-dumping is and will be an inevitable part in Chinese foreign
trade process. With the intention of protecting domestic industries,
Chinese government will consequently initiate more anti-dumping investigation.
Up to now, around 10 regulations
concerning anti-dumping issued by Chinese authorities have come into
force. Relevant authorities could protect domestic industries by adopting
anti-dumping measures. Therefore laws and practice of Chinese anti-dumping
have great influence on every foreign manufacture and trader who want
to gain interests and profits in China
Until the fall of 1997,
domestic companies never initiated a single anti-dumping procedure against
foreign products. But since then, China has started to impose anti-dumping
sanction on foreign products more frequently.
Therefore, highly qualified
and professional teams of lawyers are in urgent need and they are supposed
to give prompt response whenever the anti-dumping measures are taken.
Professional Team in Anti-dumping
Our team consists of three
lawyers and one legal assistant, together with a senior economist and
senior accountant . Every lawyer in the team will be responsible for
a certain task and complete it according to the time schedule. There
is a leading lawyer in each case. The leading lawyer will be in charge
of the whole work and is clients' primary contact.
a. Preliminary analysis
We will provide the interested
party with the Feasibility Study for free within one week after contacting
and requested by the interested parties.
b. Retainer Agreement
After signing a retainer
Agreement with clients, we enter into the formal work procedure. The
preparation period before response to the application generally requires
TB lawyers are responsible
for the investigation and the accumulation of evidence. The interested
companies shall provide us with the related information according to
the questionnaires we give within two weeks.
responding to the anti-dumping petition, we will be responsible for
providing additional evidence
according to the request by the Designed Authorities, making investigation, participating in conference or hearing, negotiating over price undertaking
if possible, till the final determination is made.
Interested Companies' Obligation
a. Appoint a contact person
in charge of this matter
b. Fill in the forms we give
c. Provide the known information
Evaluation of the Anti-dumping
a. Applicants fail to prove
the relations between the importing products and injury of domestic
b. It is regarded as fair trade, although the abundant importing products
from exporting countries;
c. Applicants fail to prove the decrease of domestic employment rate;
d. Applicants fail to prove the impact on domestic price;
e. The investment in factories and equipment gives proof to the healthy
operation of domestic industries;
f. The demand in Chinese market
Chinese Anti-dumping Law
We are trying to provide
our clients both present and potential with full information of Chinese
anti-dumping laws. Whenever an anti-dumping case is initiated by Chinese
Designated Authorities, we hope the following information will help
our clients respond in China, and our excellent elite and professional
services will certainly realize and maximize our clients' interests
ANTI-DUMPING RULES OF THE
PEOPLE'S REPUBLIC OF CHINA, Chinese leading anti-dumping law, was first
issued by the State Council of the People's Republic of China on March
25,1997 and was amended on December 10, 2001 in accordance with the
antidumping provisions in WTO agreement.
Dumping means that the export
prices of import products are lower than their normal value in the normal
course of trade.
1. The comparable
price in the market of the exporting country; and
2. The comparable price at which identical or similar products are exported
third nation; and
3. The production cost of identical or similar products plus reasonable
1. The actual amount of
payment or a payable amount; and
2. The price at which that import product is re-sold for the first time
to an independent
3. The price constructed on a reasonable basis by the MOFTEC.
MOFTEC is in charge of dumping
determination and SETC is in charge of injury determination
The dumping margin is the
difference by which the export price of an import product is lower than
its normal value.
Injury shall include
1. The material injury caused to the already-established relevant domestic
2. The threat of engendering the material injury; or
3. The material impediment caused to the establishment of the relevant
Items shall be examined
1. The quantity of the dumped product;
2. The price of the dumped product;
3. The implications of the dumped product upon the domestic industry;
4. The product capacity, export capabilities and inventory of the exporting
country of the dumped product;
injury or threat thereof cannot be based on mere
statement or conjecture.
SETC is in charge of investigation
and determination of injuries;
Agriculture department is
in charge of investigation and determination of injuries if the dumped
goods are agricultural products.
A Causal link must exist
between the material injury Beijing suffered by the Chinese industry
and the dumped imports.
Domestic producers of or organizations pertinent to, products identical
or similar to import products may file a written petition for an anti-dumping
investigation with the Ministry of Foreign Trade and Economic Cooperation
receipt of the written petition, the MOFTEC shall examine the document
and the attached evidence within 60 days and decide to initiate investigations
special circumstances, should the MOFTEC possess sufficient evidence
to think that there exist dumping, injury and causal relationship between
them, upon consultation with the SETC, may initiate investigations on
an ex-officio basis.
MOFTEC shall announce its decision, positive or negative, to initiate
investigations and notify such interested parties as the petitioner,
the known exporters, importers and the government of the exporting country.
MOFTEC and the SETC shall permit the petitioner and interested parties
to have access to materials of the case, except for confidential information.
After deciding to initiate investigations, the MOFTEC shall investigate
the dumping and the margin of dumping; the SETC shall investigate the
injury and the extent of injury; and the MOFTEC and the SETC, based
upon their investigation, separately make preliminary determinations,
which shall be announced by the MOFTEC.
there is a preliminary determination establishing dumping and injury,
there is a further investigation regarding dumping, dumping margin,
injury and the extent of injury. The MOFTEC and the SETC, based upon
their further investigation, make the final determination, which shall
be announced by the MOFTEC.
period of time for an anti-dumping investigation shall be twelve (12)
months from the date of announcement through the date of final determination;
it can be extended to eighteen (18) months under special circumstances.
one of the following scenarios occurs, the anti-dumping investigation
shall be terminated:
1. The petitioner withdraws the petition;
2. It is determined that there exist no dumping and injury;
3. The margin of dumping is less than 2% of the export price;
4. The dumping margin or the import volume of the dumped product is
5. MOFTEC and SETC decide not to continue with the investigation
1. Provisional duty;
2. Cash deposits;
3. Other forms of collateral.
Provisional duty may be
imposed on the basis of the preliminary finding recorded by the Designated
Authorities only after the expiry of 60 days from the date of initiation
The provisional duty will
remain in force only for 4 months, extendable to 9 months under certain
of the interim anti-dumping duty, the cash deposits and other forms
of collateral shall be compatible with the dumping margin as established
in the preliminary determination.
MOFTEC may, upon consultation
with SETC, suspend or terminate the investigation if the exporter concerned
furnished an undertaking to revise his price to remove the dumping or
the injurious effect of dumping as the case may be.
No undertaking can however
be accepted before preliminary determination is made.
If the export operators
or the government of the exporting country fail to implement or
withdraw commitments, the MOFTEC, upon consultation with the SETC,
may decide to resume the anti-dumping investigation.
If the final determination
establishes the existence of dumping and the consequent generation of injury to the
domestic industry, the anti-dumping duty may levied in compliance
with the stipulated procedures and an announcement made by the MOFTEC.
The levying of the anti-dumping
duty is proposed by the MOFTEC, decided upon by the Tariff Schedule
Commission under the State Council and enforced by the customs.
The taxpayers of the anti-dumping
duty shall be the import operators of the dumped products.
Anti-dumping duty shall
be determined respectively in accordance with the dumping margins of
the different exporters or producers
The amount of the anti-dumping
duty shall not exceed the dumping margin determined in the final
If the determined anti-dumping
duty is lower than the interim anti-dumping duty, the over-levied portion
shall be returned; and if the determined anti-dumping duty is higher
than the interim anti-dumping duty, the under-levied portion shall
not be collected as compensation.
The period of time for levying
the anti-dumping duty and pricing commitments according to these
Rules shall be five (5) years.
If any country
or territory take discriminatory anti-dumping or countervailing measures
against the export products of the People's Republic of China, the People's
Republic of China may, proceeding from actual situations, take corresponding
measures against that country or territory.
Review and Appeal
Within this period of time,
the MOFTEC, upon consultation with the SETC, may, on an ex-officio basis
or at the request of interested parties, conduct a re-examination of
the decision on levying the anti-dumping duty and price undertaking
and, within twelve (12) months as from the date of the initiation of
the re-examination, make a recommendation to the Tariff Schedule Commission
under the State Council upon the revision, cancellation or maintenance
of the decision on levying the anti-dumping duty and price undertaking; or the MOFTEC, upon consultation
with the SETC, makes determination upon the revision, cancellation or
maintenance of the decision on levying the anti-dumping duty and price
undertaking and announces it.
An application for administrative
review against the order of the Designated Authority may be filed or
a lawsuit may be filed with the courts.
Chinese companies' response
to the antidumping investigation initiated by foreign countries, please
see the antidumping in Chinese Version.