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In case an imported product, by means of dumping or subsidies, has caused substantial damages or has constituted the threat of substantial damages to related industries that have been established in China, or has caused substantial barriers to the establishment of related industries in China, the relevant departments of the Chinese Government will adopt anti-dumping or anti-subsidy measure in accordance with the "Anti-Dumping and Anti-Subsidy Regulations of the People's Republic of China."
I. Anti-Dumping Procedures and Competent Authorities
1. The Ministry of Foreign Trade and Economic Cooperation is in charge of accepting anti-dumping applications and will decide whether to place a case on record after discussions with the State Economic and Trade Commission;
2. The Ministry of Foreign Trade and Economic Cooperation is in charge of making anti-dumping investigations together with the General Administration of Customs and issues the initial ruling; the State Economic and Trade Commission is in charge of investigating the damages and issues the initial ruling, together with relevant competent industrial departments;
3. In accordance with the investigations on the dumping and damages and the ruling, the Ministry of Foreign Trade and Economic Cooperation puts forward the proposal on whether to levy and collect the anti-dumping tax;
4. In accordance with the proposal of the Ministry of Foreign Trade and Economic Cooperation, the State Council Tariff and Tax Regulations Commission decides on whether to levy and collect the anti-dumping tax, and sets the tax rate and the collection duration; and
5. The General Administration of Customs is in charge of implementing anti-dumping measures.
II. Anti-Dumping Applications and Acceptance A domestic producer of the same products as or the similar products to imported products or a related organization both can file a written application for anti-dumping investigations to the Ministry of Foreign Trade and Economic Cooperation. The Ministry of Foreign Trade and Economic Cooperation is a competent department that accepts applications for anti-dumping investigations, and after discussions with the State Economic and Trade Commission decides whether to place a case on record and notifies related parties of interests.
III. Duration of Anti-Dumping Investigation The duration of anti-dumping investigations is 12 months from the date when the announcement on placing the case on record is made to the date when the announcement on the final ruling is made. It may be extended to 18 months under special circumstances.
IV. Forms for Anti-Dumping Investigations While making anti-dumping investigations, relevant departments in charge of anti-dumping investigations may issue questionnaires to all parties of interests and conduct a sample survey. At the request of a party of interests, they should provide the opportunities for all parties of interests to state their views.
While accepting anti-dumping investigations, all parties of interests should earnestly state circumstances and provide related data. Otherwise, the competent department may issue a ruling according to the materials it has acquired.
V. Anti-Dumping Measures
Once the initial ruling states that dumping does exist and has caused damages to a domestic industry, the following temporary anti-dumping measures may be taken:
1. Levying and collecting the temporary anti-dumping tax in accordance with prescribed procedures; the duration of the temporary anti-dumping tax is four months from the date when the announcement on the decision concerning the temporary anti-dumping measures is made, and may be extended to nine months under special circumstances.
2. Demanding that guarantee fund in cash or other forms of guarantees be provided.
A dealer in the export of dumping products or the government of the exporting country may file an application for the price commitment to the Chinese Ministry of Foreign Trade and Economic Cooperation. After discussions with the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation can decide to accept the price commitment through negotiation, thus halting anti-dumping investigations. But should the price commitment fail to be executed, anti-dumping investigations may be resumed.
Should the final ruling state that dumping does exist and has caused damages to a domestic industry, the anti-dumping tax may be levied and collected. The duration of levying and collecting such a tax and the price commitment is five years.
As China currently cannot use WTO's dispute-resolving mechanism to handle discriminatory anti-dumping imposed on Chinese products, the "Anti-Dumping and Anti-Subsidy Regulations of the People's Republic of China" defines the principle against discrimination, i.e., "Should any country or region adopt discriminatory anti-dumping or anti-subsidy measures against export products of the People's Republic of China, the People's Republic of Chin may adopt relevant measures against the country or region in accordance with actual conditions.
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Last modified: July 4,
2000