ANTI-DUMPING AND COUNTERVAILING RULES

OF THE PEOPLE'S REPUBLIC OF CHINA

(Issued by the State Council of the People's Republic of China on　March 25, 1997 )

　　　　　　　　　　　　　　　　CONTENTS
CHAPTER ONE GENERAL PROVISIONS
CHAPTER TWO DUMPING AND INJURY
CHAPTER THREE ANTI-DUMPING INVESTIGATIONS
CHAPTER FOUR ANTI-DUMPING MEASURES
CHAPTER FIVE SPECIAL STIPULATIONS REGARDING COUNTERVAILING
CHAPTER SIX SUPPLEMENTARY ARTICLES
　　　　　　　　　　 CHAPTER ONE GENERAL PROVISIONS
Article　1 With a view to maintaining the foreign trade order　and　fair competition and protecting relevant domestic industries, these Rules are formulated　according to relevant stipulations of the Foreign Trade　Law of the People's Republic of China.
Article 2 In case that import products resort to dumping or subsidy　and subsequently　cause material injury or constitute a threat　of　material injury　to already established relevant domestic industries or　cause　a material　 impediment　 to　the　establishment　of　 relevant　 domestic industries, anti-dumping or countervailing measures shall be adopted　in accordance with the provisions of these Rules.
　　　　　　　　　　 CHAPTER TWO DUMPING AND INJURY
Article　3 Dumping shall mean that the export prices of import　products are lower than their normal value.
Article　4 Normal value shall be determined according to　the　following methods:
(1) In case that identical or similar products of an import product　has a　comparable　price　in　the market　of　the　exporting　country,　that comparable price shall be the normal value;
(2) In case that identical or similar products of an import product does not have a comparable price in the market of the exporting country,　the normal value shall be the comparable price at which identical or similar products　are　exported　to a third nation or　the　production　cost　of identical or similar products plus reasonable expenses and profits;
Article　5　The　export　price shall　be　determined　according　to　the following methods:
(1)　If　the import product has an actual payment amount　or　a　payable amount, that price shall be the export price;
(2)　If the import product does not have an actual payment amount　or　a payable amount or its price cannot be determined, the export price shall be the price at which that import product is re-sold for the first　time to　an independent buyer or the price constructed on a reasonable　basis by the MOFTEC upon consultation with the General Customs Administration.
Article 6 The difference by which the export price of an import　product is　lower than its normal value shall be the dumping margin. The　export price of the import product and the normal value shall be compared in　a fair and reasonable manner in order to determine the dumping margin.
Article　7　Injury　shall　include the material　injury　caused　to　the already-established　 relevant　domestic　industry　or　the　threat　 of engendering　the material injury, or the material impediment　caused　to the establishment of the relevant domestic industry.
Article 8 When determining the injury caused to the domestic industry by dumping, the following items shall be examined:
(1)　The　quantity　of the dumped product, inclusive　of　the　aggregate quantity　of　the　dumped product or the volume of its　growth　and　the possibility of its massive growth as compared with identical or　similar domestic products;
(2) The price of the dumped product, inclusive of the price cuts of　the dumped product or the implications on the prices of identical or similar domestic products;
(3)　The implications of the dumped product upon the domestic　industry; and
(4)　The　capacity, export capabilities and inventory of　the　exporting country of the dumped product.
Article 9 If the anti-dumping investigation involves the import products from　two　or more countries, a cumulative evaluation may　be　conducted upon the implications of the import products concerned.
Article　10　The domestic industry shall mean all the producers　of　the identical or similar products or producers whose total output accounting for　the　larger part of the aggregate output of　identical　or　similar products　within the territory of the People's Republic of　China,　with the　exception of situations whereby domestic producers　are　associated with　export operators or export operators, or they themselves　are　the import operators of the dumped product,
　　　　　　　 CHAPTER THREE ANTI-DUMPING INVESTIGATIONS
Article　11　Domestic　producers　of,　or　organizations　pertinent　 to (hereinafter　referred to as applicants), products identical or　similar to　import products may, according to the stipulations of　these　Rules, file　a　written application for anti-dumping　investigations　with　the Ministry of Foreign Trade and Economic Cooperation (MOFTEC).
Article 12 The application shall include the following contents:
(1)　The　names　and　addresses of the applicant　and　the　producer　it represents;
(2) The name, category, tariff line in the tariff schedule of the import product　and　the　name and category of identical　or　similar　domestic products;
(3)　The　quantity　and　price of the dumped　product　as　well　as its implication upon the domestic industry;
(4) The causal link between dumping and injury; and
(5) Other contents as provided for by the MOFTEC. The application　shall be attached with necessary evidence.
Article 13 Upon receipt of the written application from the application, the MOFTEC shall examine the application and the attached evidence　and, upon consultation with the State Economic and Trade Commission　(SETC), decide to initiate investigations or not.
Article　14 In case of special circumstances, should the MOFTEC　possess sufficient　evidence　to think that there exist dumping and　injury　and that　there　is a causal link between them, upon consultation　with　the SETC, may initiate investigations on an ex-officio basis.
Article 15 The period of time for an anti-dumping investigation shall be twelve　(12)　months from the date of announcement through the　date　of final　adjudication;　it can be extended to eighteen (18)　months　under special circumstances.
Article 16 The MOFTEC shall announce its decision, positive or negative, to　initiate　investigations and notify such interested parties　as　the applicant,　the　known　export operators and import　operators　and　the government of the exporting country.
Article　17 After deciding to initiate investigations, the MOFTEC　works cooperatively　with　the General Customs Administration　to　investigate into　the dumping and the margin of dumping; the SETC, in　concert　with competent　authorities　under the State Council, investigates　into　the injury and the extent of injury; and the MOFTEC and the SETC, based upon the　investigative　results, separately make　preliminary　adjudication, which　are to be announced by the MOFTEC. Where there is　a　preliminary adjudication establishing dumping and injury, it shall be imperative　to further investigate into the dumping, the dumping margin, injury and the extent　of　injury;　and　the　MOFTEC　and　the　SETC,　based　upon　the investigative　results,　make　the final adjudication, which　is　to　be announced by the MOFTEC.
Article　18　If one of the following scenarios occur,　the　anti-dumping investigation　shall　be terminated and an announcement be made　by　the MOFTEC.
(1) The applicant withdraws the application;
(2)　It　is adjudicated preliminarily that there exist　no　dumping　and injury;
(3)　It is adjudicated finally that there exist no dumping　and　injury; and
(4)　The dumping margin or the import volume of the dumped　product　are negligible.
Article　19　When　the MOFTEC works jointly　with　the　General　Customs Administration　 and　when　the　SETC　works　jointly　 with　 competent authorities under the State Council in the conduct of the investigation,
they　may　issue　questionnaires and take　sampling　of　the　interested parties;　at the request of interested parties, opportunities　shall　be granted to various interested parties to state their viewpoints. When it deems　necessary,　the　MOFTEC may dispatch　relevant　staff-members　to conduct an investigation in the countries concerned, with the　exception of　situations　whereby　the　countries concerned　come　forward　　with opposition.
Article　20　When　the MOFTEC works jointly　with　the　General　Customs Administration　 and　when　the　SETC　works　jointly　 with　 competent authorities under the State Council in the conduct of the investigation,
interested　parties　shall　provide　authentic　information　and　supply relevant　materials.　If interested parties fail　to　provide　authentic information and supply relevant materials or hamper the investigation in other forms, the MOFTEC and the SETC may make an adjudication based upon existing materials.
Article　21　The　MOFTEC and the SETC shall　permit　the　applicant　and interested　parties　to　have access materials of　the　case,　with　the exception of confidential ones.
　　　　　　　　　 CHAPTER FOUR ANTI-DUMPING MEASURES
Article　22　In　the event of a　preliminary　adjudication　establishing dumping　and　consequent　injury caused to the　domestic　industry,　the following interim anti-dumping measures may be applied:
(1)　To　levy　the　interim anti-dumping duty　in　accordance　with　the stipulated procedures; and
(2)　To　request　the　provision of cash　deposits　or　other　forms　of collateral.　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　adjudication.　The MOFTEC　proposes,　and the Tariff Schedule Commission　under　the　State Council decides upon, the levying of the interim anti-dumping duty.　The request for the provision of cash deposits or other forms of　collateral is to be decided upon by the MOFTEC.
Article　23　The decision upon interim anti-dumping measures is　to　 be announced by the MOFTEC and enforced by the customs posts.
Article 24 The period of time for the interim anti-dumping duty shall be four　(4)　months starting from the date of decision　upon　the　interim anti-dumping　measures;　in　case of special circumstances,　it　can　be extended to nine (9) months.
Article　25 If the export operators or the government of　the　exporting country make commitments of taking proposed effective measures in　order to　eliminate　the injury caused to the domestic industry,　the　MOFTEC, upon　consultation　with　the SETC, may decide to　terminate　the　anti-dumping　investigation and make an announcement. The MOFTEC may　request the　export operators or the government of the exporting country　listed in　the　previous paragraph to provide, on a　regular　basis,　materials pertinent to fulfillment of commitments.
Article　26 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.
Article　27　If　the final adjudication　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 by made by the　MOFTEC.　The levying of the anti-dumping duty is proposed by the MOFTEC, decided upon by the Tariff Schedule Commission and enforced by the customs posts.
Article　28 The taxpayers of the anti-dumping duty shall be　the　import operators of the dumped products.
Article　29　The amount of the anti-dumping duty shall　not　exceed　the dumping margin determined in the final adjudication.
Article 30 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.
Article　31　If　it is decided not to levy the　anti-dumping　duty,　the levied　interim anti-dumping duty, the received cash deposits　or　other forms of collateral shall be returned.
Article　32 If the following tow scenarios coexist, the Tariff　Schedule Commission　under　the　State　Council　may,　in　accordance　with　 the recommendation　of　the　MOFTEC, decide to levy　the　retroactive　anti-dumping　duty　on the dumped product imported within　ninety　(90)　days prior to　the date of announcement on the decision upon　interim　 anti-dumping measures:
(1)　The dumped product has a history of dumping causing injury　to　the domestic industry, or the import operators of the dumped product know or should　know　that the export operator of the this　product　is　dumping products and that dumping would lead to injury to the domestic industry;
(2)　The dumped product is massively imported within a short　period　of time and has caused injury to the domestic industry.
Article　33　The period of time for levying the　anti-dumping　duty　and pricing　commitments according to these Rules shall be five　(5)　years. 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, 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; it is　up to　the Tariff Schedule Commission under the State Council to　make　the re-examination decision and up to the MOFTEC to announce it.
Article　34　If the import operator of the dumped product　has　evidence showing　that the amount of the already-paid anti-dumping　duty　exceeds the dumping margin, it can apply for tax rebates with the MOFTEC.　After working　cooperatively　with　the　General　Customs　Administration　for examination　and　verification, tax rebates are to be　proposed　by　the MOFTEC,　decided　by　the Tariff Schedule　Commission　under　the　State Council　and enforced by the customs posts. The decision on tax　rebates listed　in　the previous paragraph shall be made　within　eighteen　(18) months as from the date of receipt of the tax rebate application.
Article　35　The MOFTEC, the SETC and competent　authorities　under　the State　Council　may adopt appropriate measures with a view　to　averting attempts to circumvent the anti-dumping measures.
　　　 CHAPTER FIVE SPECIAL STIPULATIONS REGARDING COUNTERVAILING
Article　36　Subsidy　shall mean the financial　assistance　or　interest granted　directly　or　indirectly to industries　and　enterprises　by　a foreign government or public institutions.
Article　37　If an import product is subsidized, these　Rules　shall　be applicable.　However, these Rules shall not apply if the import　product is only subsidized in such forms as industrial research and development, support for the backward areas and environmental protection.
Article 38 The net value of subsidies received by the subsidized product shall be the value of subsidy. The value of subsidy shall be　calculated in accordance with a fair and reasonable approach.
Article 39 Relevant stipulations as contained in Chapters Two, Three and Four　of　these　Rules　shall be applicable　to　the　injury　caused　by subsidies,　the countervailing investigation and the enforcement of　the countervailing measures.
　　　　　　　　　 CHAPTER SIX SUPPLEMENTARY ARTICLES
Article 40 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.
Article　41　The MOFTEC, the SETC and competent　authorities　under　the State Council may formulate relevant specific methods according to these Rules.
Article　42　These　Rules　shall go into effect　as　from　the　date　of promulgation.