A news release issued by the Ministry of Commerce website on September 23 stated that the U.S. International Trade Court ruled that the U.S. Department of Commerce’s “double counter†investigation on Hebei Xingmao tires was unreasonable. The court asked the US Department of Commerce to re-evaluate the case and submit it to the court for review within 90 days. The Ministry of Commerce of China welcomes this ruling, and the head of the Fair Trade Bureau of the Ministry of Commerce stated that this undoubtedly marks a breakthrough for Chinese companies in opposing US trade protectionism and seeking fair treatment.
U.S. Department of Commerce was sentenced to investigate unreasonable
According to reports, the United States Court of International Trade ruled in the case of Hebei Xingmao Tyre Co., Ltd. v. US Department of Commerce Anti-dumping and Countervailing Investigations that the US Department of Commerce calculated and imposed anti-dumping duties on Chinese products using alternative countries for non-market countries. The imposition of a countervailing duty is likely to lead to double counting of tax rates.
The court requested the U.S. Department of Commerce to re-evaluate the case within 90 days and submit it to the court for review. It also pointed out that the U.S. Department of Commerce should “take away from the countervailing duty on Chinese products or modify the anti-dumping and countervailing investigations for non-market economy countries. Policies and Procedures."
The person in charge of the Fair Trade Bureau of the Ministry of Commerce of China pointed out that the investigation agencies in the United States did not recognize the status of China’s market economy and conducted anti-dumping and anti-subsidy merger investigations on Chinese products, which did not comply with the relevant provisions of the WTO and the U.S. The unfair treatment of Chinese companies has harmed the legitimate export interests of Chinese companies.
"Xingmao Hebei" case twists and turnsThe reporter learned from the interview that Hebei Xingmao Tyre Co., Ltd. (hereinafter referred to as “Hebei Xingmaoâ€) is a wholly foreign-owned enterprise established after GPX International Tire Co., Ltd. acquired the assets of Hebei Tire Co., Ltd. and is also a US GPX International Tire Company. The only production plant in China.
Hebei Xingmao Wheel specializes in the production of specialty tires, with an annual tire production capacity of 1.5 million pieces. There are three types of biased tires, radial tires and solid tires, which can produce more than 200 specifications in eight series including load-bearing tires, industrial vehicle tires, construction machinery tires, agricultural tires, light truck tires, special-purpose tires, and car tires.
On June 18, 2007, US-based Titan Union workers filed a complaint requesting anti-dumping duties on imported products. Bridgestone, the world’s largest tire and rubber manufacturer, also expressed support for this.
One year later, on July 8, the U.S. Department of Commerce ruled that: In addition to Xuzhou Xugong Tire Co., Ltd. being considered as having no dumping margin, Hebei Xingmao, Guizhou Tyre Co., Ltd. and Tianjin International Union Tire & Rubber Co., Ltd. were ruled respectively to be 19.15. Dumping margins of %, 4.08%, and 8.09%, and 14%, 2.45%, and 6.85% subsidies. The remaining Chinese companies are considered to have a general dumping rate of 210.48%, and they generally enjoy a subsidy rate of 5.62%.
On August 15, 2008, the United States International Trade Commission (ITC) issued a final result of affirmative damages on the case: the subsidy tax rate remained unchanged, the dumping rate was 28.69% for Hebei Xingmao, 5.25% for Guizhou Tire, 8.44% for Tianjin, and others. Twenty-five companies responded individually to the case of 12.58%, and the punitive tax rate of unreported companies was still 210.48%.
GPX and Hebei Xingmao disagreed with this result, and the latter commissioned the above-mentioned law firm to appeal.
In the final decision on September 18, CIT made a more specific specific decision: (The US Department of Commerce's new legal interpretation (that allows the use of non-market economic methodology to collect anti-subsidy and anti-dumping) is "irrational". It is therefore "illegal".
Chinese enterprises have made breakthroughs in opposing US trade protectionismThe person in charge of the Chinese Ministry of Commerce believes that although the ruling still requires the US Department of Commerce to take action to implement it, the US Department of Commerce may also appeal to the court of second instance, but this undoubtedly marks a breakthrough in Chinese companies’ opposition to US trade protectionism and fair treatment. . According to the relevant person in charge of Winston Law Institute, the CIT ruling marked a huge victory for Chinese companies, which means that under the court’s special judgment, the US Department of Commerce must “take back the decision to impose countervailing duties on Chinese imports or modify it.†Non-market economy anti-dumping and countervailing policies and procedures."
Hebei Xingmao: Actively Respond on the One Hand, Actively Exploit the Domestic Market on the One HandThe reporter learned from the interview that Hebei Xingmao Company is located at No. 788 Zhongxing West Street, Xingtai City. In the face of a series of anti-dumping and anti-subsidy investigations, Hebei Xingmao actively responded to the lawsuit. On the other hand, it actively explored the domestic market and the European market, and tried to minimize the adverse effects of the investigation.
View related topics: China and the United States tire special security case
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