Chinese Antidumping History

In recent 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

This 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 one month.

c. Evidence-accumulating

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.

d. After 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 Case

a. Applicants fail to prove the relations between the importing products and injury of domestic industries;
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
g. Others

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 and profits.

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

Dumping means that the export prices of import products are lower than their normal value in the normal course of trade.

Normal Value

1. The comparable price　in　the market　of　the　exporting country; and
2. The comparable price at which identical or similar products are exported to a
third nation; and
3. The production cost of identical or similar products plus reasonable expenses and
profits.

Export Price

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
buyer; and
3. The price constructed on a reasonable basis by the MOFTEC.

Authorities

MOFTEC is in charge of dumping determination and SETC is in charge of injury determination

Dumping Margin

The dumping margin is the difference by which the export price of an import product is lower than its normal value.

Injury

Injury shall include
1. The material　injury caused to the already-established relevant domestic industry; or
2. The threat of engendering the material injury; or
3. The material impediment caused to the establishment of the relevant domestic industry.

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;
5. Others.

The material injury or threat thereof cannot be based on mere

llegation, statement or conjecture.

Authorities

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.

Causal Link

A Causal link must exist between the material injury Beijing suffered by the Chinese industry and the dumped imports.

Procedures

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 (MOFTEC).

Upon receipt of the written petition, the MOFTEC shall examine the document and the attached evidence within 60 days and decide to initiate investigations or not.

In 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.

The 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.

The 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.

Where 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.

The 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.

If 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 negligible.
5. MOFTEC and SETC decide not to continue with the investigation

Measures

Provisional measures

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 of investigation.

The provisional duty will remain in force only for 4 months, extendable to 9 months under certain circumstances.

The amount 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.

Price Undertaking

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.

Anti-dumping Duties

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 determination.

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