MOFCOM Revised Anti-Dumping and Countervailing Regulations

The government has incorporated some radical changes to certain rules, specially in the midterm review. Let’s have a look at the three revisions.

Revision I – Midterm Review of Dumping and Dumping Margins

Dumping is under strict surveillance as there are certain rules and regulations on the dumping and dumping margins. This set of regulations will determine future exports in China. As per the new regulations, the investigation authority will monitor if there is any injury sustained by the Chinese Domestic Industry by the dumping. The anti-dumping duty carried out by the officials shall not last more than 5 years unless there are instances of injuries sustained by the Domestic Industry.

Within these 5 years, the petitioner may carry out an investigation focusing on the changes in the normal value, export price and lastly dumping margin. This midterm review of dumping and dumping margins, is absolutely legal and right of the petitioner. This rule however depends on certain things, which are:

  • The petitioner must produce a minimum volume of a product or has to be powerful enough to convince other producers of the same product to take part in the investigation.
  • As per 2017 draft revision, the petitioner do not require the representativeness of the original petitioner to carry out a midterm review against foreign exporters.
  • The petitioner must provide significant evidence when submitting a midterm review application.
  • The applicant must prove the change in the dumping margins and provide valid reasons behind that change.
  • When a midterm review is initiated, each party is obliged to file their comments in the initiation. If the applicant under review is a foreign exporter then the Chinese Domestic industry or the petitioner from the same shall enjoy these rights. Same thing goes the other way around.

Revision 2 – Regulations on Hearing for Anti-Dumping and Countervailing Investigations

This revision resulted the formation of the Trade Remedy and Investigation Bureau. This is the amalgamation of two dominant investigation institutions namely – Fair Trade Bureau of MOFCOM and Industry Investigation Bureau of MOFCOM, which are in charge of the dumping and injury investigations.

In this regard, there were primarily three rules – Preliminary Regulations on Hearings for Anti-Dumping Investigations, Preliminary Regulations on Hearings for Countervailing Investigations, and Preliminary Regulations on Hearings for Industry Injury Investigations. These three rules have been incorporated into the new rules which are – Regulations on Hearings for Anti-Dumping and Countervailing Investigations. The regulations on hearing are mentioned below:

  • As per the 2002 Regulations, there was not any time limit. However as per the new rule, the application must be submitted within four months after the initiation of the case. For hearing, the application must be submitted within 30 days.
  • The investigating authority may reject a hearing under the below circumstances.

                   1. If the application is not prepared with the legal requirements.

                   2. If the authority thinks that a hearing is unnecessary.

                   3. The investigation procedures will be significantly impeded if a hearing is held.

  • Each interested party must enrol and participate in the hearing.
  • As per the new law, the chairperson of the hearing has the right to warn a certain party, if there is any violation in the hearing procedures. In such cases, the violators can be expelled from the hearing.

Revision 3Regulations on the Disclosure Questionnaire for Anti-Dumping Investigations

There are certain changes on the Regulations on the Disclosure Questionnaire for Anti-Dumping Investigations, which are mentioned below:

  • If there is no official enrolment, the investigating authority may not investigate the disclosure questionnaire responses individually.
  • The authority may reject the documents of a party, whose non-confidential summary is not provided within the said time limits. The documents can also be subjected to rejection if the non-confidential summary fails to meet the desired requirements.
  • The authority requires two duplicate copies of the public and confidential versions.
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