Anti-Dumping and Anti-Subsidy Regulations of the People's Republic of China

(Promulgated by the State Council, March 25, 1997) Chapter I   General Provisions Article 1 These regulations are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. Article 2 If imported products 1) are subsidized or are dumped onto the domestic market and 2) cause or threaten to cause material injury to corresponding established domestic industries or create material obstacles to the establishment of corresponding domestic industries, anti-dumping and anti-subsidy measures shall be adopted in accordance with the provisions of these regulations. Chapter II   Dumping and Injury Article 3 Dumping occurs when the export price of an imported product is less than its normal value. Article 4 Normal value is determined according to the following methods: (1)   If products identical with or similar to the imported product have comparable prices in the exporting countries' marketplace, those comparable prices shall be the normal value; (2)   If products identical with or similar to the imported product do not have comparable prices in the exporting country's marketplace, the normal value shall be either 1) the comparable price of identical or similar products exported to a third country, or 2) the production cost of identical or similar products plus reasonable expenses and profit. Article 5 Export price is determined according to the following methods: (1)   The price actually paid or the price that should have been paid for the imported product is the export price; (2)   If no price is actually paid or should have been paid for the imported product, or its price cannot be determined, the export price shall be 1) the price for which the imported product is resold for the first time to an independent buyer, or 2) the price reconstructed according to a reasonable basis by MOFTEC after consultation with the Customs Bureau. Article 6 The dumping margin is the amount by which the imported product's export price is less than its normal value. In determining the dumping margin, the imported product's export price and its normal value should be compared according to fair and reasonable means. Article 7 Injury includes causing material injury or the threat of material injury to already established corresponding domestic industry or the creation of obstacles to the establishment of corresponding domestic industry by dumping. Article 8 In determining injuries cause by dumping to domestic industries, the following matters should be investigated: (1)   The quantity of product dumped, including the total quantity of product dumped or the incremental increase in its total quantity relative to identical or similar domestic products and the possibility of large increases therein; (2)   The prices of goods dumped, including reductions in the prices of goods dumped or the effect upon the prices of identical or similar domestic products; (3)   The effect of the dumped product on domestic industry; (4)   The dumping export company's production capacity, export capacity and inventory. Article 9 In an anti-dumping investigation with respect to products imported from two or more countries, a cumulative estimate of the effect of the relative imported goods may be conducted. Article 10 Domestic industries are all producers making identical or similar products within the territory of the People's Republic of China, or the producers of a large part of the total production of identical or similar domestic products. Domestic producers related to export businesses or import businesses or those who themselves import a dumped product may be excluded from the category of domestic industries. Chapter III   Anti-Dumping Investigation Article 11 Domestic producers of products identical or similar to imported goods, or their related organizations (hereinafter referred to as "the applicant"), may submit a written application for an anti-dumping investigation to MOFTEC in accordance with the provisions of these regulations. Article 12 The application should contain the following evidence: (1)   The names and addresses of the applicant(s) and the producers it represents; (2)   A designation and a description of the imported products, their Import Tariff Code numbers, and a designation and description of the identical or similar domestic products; (3)   The imported products' quantity and prices and their effect upon domestic industry; (4)   The causal relationship between dumping and injury; (5)   Other contents prescribed by MOFTEC. The necessary evidence should be attached to the application form. Article 13 After receiving an applicant's written application, MOFTEC should examine the application and attached evidence and, after consulting with the State Economic and Trade Commission, should decide whether or not to file the case for investigation. Article 14 If, under special circumstances, MOFTEC has sufficient evidence to believe that dumping, injury and a causal relationship between the two exists, it may, after consulting with the State Economic and Trade Commission, decide on its own to file a case for investigation. Article 15 The public announcement of the final ruling in an anti-dumping investigation must be made within the 12-month period beginning with the date of public announcement of the decision to file the case for investigation. Under special circumstances, that period may be extended to a total of 18 months. Article 16 MOFTEC should publicly announce its decision whether or not to file a case for investigation and notify the applicant, known exporters and importers, the exporting country's government, and other interested parties. Article 17 After the decision to file a case for investigation, MOFTEC and the Customs Bureau shall jointly investigate the existence of dumping and determine the dumping margin, and the State Economic and Trade Commission and the relevant State Council departments shall jointly investigate the existence of injuries and determine the extent of injuries. MOFTEC and the State Economic and Trade Commission shall separately make their initial rulings based upon the results of the investigation. MOFTEC shall publicly announce the initial rulings. If the initial rulings establish the existence of dumping and injury, further investigations shall be made as to the dumping, dumping margin, injuries and extent of injuries in accordance with the provisions of the preceding paragraph. MOFTEC and the State Economic and Trade Commission shall separately make their final rulings based upon the results of the subsequent investigations. MOFTEC shall publicly announce the final rulings. Article 18 An anti-dumping investigation should be terminated and such termination publicly announced by MOFTEC under the following circumstances: (1)   The applicant withdraws the application; (2)   The initial rulings do not establish the existence of dumping and injury; (3)   The final rulings do not establish the existence of dumping and injury; (4)   The dumping margin and the dumped product's imported quantity can be ignored. Article 19 When MOFTEC and the Customs Bureau or the State Economic and Trade Commission and the relevant department of the State Council jointly investigate, they may distribute interrogatories to interested parties and carry out sample surveys. When requested by an interested party, an opportunity should be provided for it to express its opinion. When MOFTEC believes it is necessary, it may dispatch personnel to the relevant countries to investigate, provided the relevant countries do not object. Article 20 When MOFTEC and the Customs Bureau or the State Economic and Trade Commission and the relevant department of the State Council jointly investigate, the interested parties shall accurately report the situation and supply the relevant materials. If they do not accurately report the situation and supply the relevant materials, or by other means hinder the investigation, MOFTEC and the State Economic and Trade Commission may make their rulings based upon the materials available to them. Article 21 MOFTEC and the State Economic and Trade Commission shall allow the applicant and interested parties access to the case materials, provided the materials are not secret. Chapter IV   Anti-Dumping Measures Article 22 If the initial ruling establishes the existence of dumping and of resultant injuries to corresponding domestic industries, the following temporary anti-dumping measures may be adopted: (1)   According to prescribed procedure, a temporary anti-dumping tax may be imposed; (2)   The provision of a cash deposit or other forms of guarantee may be required. The amount of temporary anti-dumping tax, cash deposit and other forms of guarantee should be consistent with the dumping margin determined by the initial ruling. MOFTEC may propose and the State Council's Custom Tax Policy Commission shall decide upon the imposition of any temporary anti-dumping tax. MOFTEC shall decide whether to require the provision of cash deposits and other forms of guarantee. Article 23 MOFTEC shall publicly announce decisions to adopt temporary anti-dumping measures, and the Customs Bureau shall implement them. Article 24 The period for the imposition of anti-dumping taxes is the 4-month period beginning with the date of public announcement of the decision to impose the temporary measures. Under special circumstances, the period may be extended to a total of 9 months. Article 25 If the exporter dumping the products or the exporting country's government promises to adopt effective measures to eliminate the injury caused to domestic industry, MOFTEC, after consulting with the State Economic and Trade Commission , may decide to suspend the anti-dumping investigation. It should publicly announce the decision. MOFTEC may require the exporter or the government of the exporting country mentioned in the preceding paragraph to regularly supply relevant data on the fulfillment of their commitments. Article 26 If the exporter dumping the product or the exporting country's government fails to fulfill or withdraws the commitments, MOFTEC, after consulting the State Economic and Trade Commission, may decide to resume the anti- dumping investigation. Article 27 If the final ruling establishes the existence of dumping and of the resultant injury to domestic industry, an anti-dumping tax may be imposed according to prescribed procedures, and MOFTEC shall public announce the decision. MOFTEC may propose, the State Council's Customs Tariff Policy Commission shall decide upon, and the Customs Bureau shall implement the imposition of any anti- dumping tax. Article 28 The antidumping taxpayer is the importer of the dumped product. Article 29 The amount of the anti-dumping tax must not exceed the dumping margin determined by the final ruling. Article 30 If the amount of the anti-dumping tax determined by the final ruling is lower than the amount of the temporary anti-dumping tax, the excess tax paid shall be refunded. If the amount of the anti-dumping tax determined by the final ruling is higher than the amount of the temporary anti-dumping tax, the balance of the two taxes need not be paid. Article 31 If the final ruling does not impose an anti-dumping tax, the temporary anti-dumping tax collected, the cash deposit and other forms of guarantee shall be refunded. Article 32 When the following two circumstances both exist the State Council's Tariff Policy Commission, based upon MOFTEC proposals, may decide to retroactively impose the anti-dumping tax on the dumped goods imported within the 90-day period previous to the public announcement of the decision to adopt temporary measures: (1)   There a) is a history of the dumped product causing injury to domestic industry; or b) the importer of the dumped product knew of should have known that the product's exporter was dumping the product and that the dumping would cause injury to domestic industry; and, (2)   A large quantity of the product dumped was imported within a short period and has already caused injury to domestic industry. Article 33 The time period for the imposition of anti-dumping taxes and price commitments prescribed pursuant to these regulations is five years. Within this time period, MOFTEC, after consulting with the State Economic and Trade Commission, on its own or upon the requests of interested parties, may carry out a reexamination of decisions imposing anti-dumping taxes. Within a period of 12 months from the date that the reexamination begins, MOFTEC may propose to the State Council's Customs Tariff Policy Commission that the anti-dumping tax decision be modified, revoked or maintained. The State Council's Custom Tariff Policy Commission shall make the reexamination decision, and MOFTEC shall publicly announce the decision. Article 34 If an importer of the dumped product has evidence proving that the amount of the anti-dumping tax it has already paid exceeds the dumping margin, it may apply to MOFTEC for a tax refund. MOFTEC and the Customs Bureau shall jointly investigate and verify the facts. Thereafter, MOFTEC may submit a tax refund proposal to the State Council's Customs Tariff Policy Commission. The State Council's Customs Tariff Policy Commission shall decide whether to grant the refund request and the Customs Bureau shall implement the decision. Article 35 MOFTEC, the State Economic and Trade Commission, and the relevant State Council departments may adopt appropriate measures to prevent activities to evade anti-dumping taxes. Chapter V   Special Anti-Subsidy Provisions Article 36 A subsidy is a financial support or benefit directly or indirectly provided to an industry or enterprise by a foreign government or public organization for industries and enterprises. Article 37 These regulations apply to subsidized imported products. However, these regulations do not apply to imported products utilizing subsidies only for industrial research and development, support for backward regions, environmental protection, etc. Article 38 The net amount of subsidies received by a product is the subsidy amount. The subsidy amount shall be calculated using fair and reasonable methods. Article 39 The relevant provisions of Chapters Two, Three and Four of these regulations shall apply to injuries caused by subsidies, anti-subsidy investigations and the enforcement of anti-subsidy measures. Chapter VI   Supplementary Provisions Article 40 Based upon actual circumstances, the People's Republic of China may adopt corresponding measures against any country or region adopting discriminatory anti-dumping or anti-subsidy measures against its exports. Article 41 MOFTEC, the State Economic and Trade Commission, and the relevant State Council departments may formulate specific measures in accordance with these regulations. Article 42 These regulations are effective upon the date of issuance.

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