MOFCOM Announcement No. 41 of 2016 on Ruling on Expiry Review of Countervailing Measures against Imports of Broiler Products or Chicken Products Originated in the U.S.

August 24, 2016 - 09:04 BJT (16:04 GMT)   MOFCOM

On August 29, 2010, the Ministry of Commerce of the People's Republic of China (hereinafter referred to as the "Investigation Authority") released the Announcement [2010] No.52, deciding to impose the countervailing measures on imports of broiler products or chicken products originated in the U.S. for a period of five years as of August 30, 2010. In August 2013, the Ministry of Commerce released the Announcement [2013] No.56, determining the matters concerning the renaming of the relevant companies in accordance with the law. In July 2014, the Ministry of Commerce released the Announcement [2014] No.44, publishing the ruling of the re-investigation on the countervailing measures, and adjusting the countervailing duty rate.

On August 28, 2015, in response to the application from the industry of broiler products or chicken products in China, the Investigation Authority released an announcement, deciding to conduct expiry review investigation into the countervailing measures applicable to imports of broiler products or chicken products.

The Investigation Authority conducted investigation into the possibility of continuation or reoccurrence of the subsidies to imports of broiler products or chicken products originated in the U.S. and injury to the industry of broiler products or chicken products in China in case of terminating the original countervailing measures against imports of broiler products or chicken products originated in the U.S. Based on the findings and in accordance with Article 47 of the Countervailing Regulations of the People's Republic of China (hereinafter referred to as the “Countervailing Regulations”), the Investigation Authority made the ruling on the review (See Annex I). Relevant matters are hereby announced as follows:

I. Ruling

The Investigation Authority ruled that subsidies to imports of broiler products or chicken products originated in the U.S. may continue or reoccur, and the injury therefrom to the industry of broiler products or chicken products in China may continue or reoccur if the original countervailing measures were terminated.

II. Countervailing Measures

In accordance with Article 49 of the Countervailing Regulations, the Investigation Authority submitted proposals on implementation of countervailing measures to the Customs Tariff Commission of the State Council based on findings of the investigation, which decided according to the proposal of the Investigation Authority to continue to levy the countervailing duties against imports of broiler products or chicken products originated in the U.S. for a period of five years since August 30, 2016.

The products under investigation in the expiry review of the countervailing measures are the ones which the original countervailing measures are applicable to, the same as set out in the MOFOCOM Announcements No. 52 of 2010 and No.44 of 2014 with details as below:

Name of the products under Investigation: Broiler Products or Chicken Products.
Description of the products under investigation: chicken products processed by slaughtering live white feather chicken, including whole chicken, split chicken and byproducts, fresh, cold or frozen. Live chicken or chicken products, chicken sausage and similar products packed or reserved in cans or other similar ways and cooked chicken products are not included in the scope of investigation.

Main usage: broiler products or chicken products in domestic market are generally used for human consumption, and they are directly or indirectly faced to consumers through channels such as wholesale or retail sales in farm product market, supermarkets or catering channels.

The products under investigation are listed under tariff numbers of 02071100, 02071200, 02071311, 02071319, 02071321, 02071329, 02071411, 02071419, 02071421, 02071422, 02071429 and 05040021in the Customs Import and Export Tariff of the People's Republic of China.

The rate of countervailing duties applicable to the products under investigation in the expiry review of the countervailing measures is the same as set out in the MOFCOM Announcement No.44 of 2014. The rates of countervailing duties against companies are set out in Annex 2 attached hereto.

III. Methods of Levying Countervailing Duties

As of August 30, 2016, import operators shall pay relevant countervailing duties to the Customs of the People’s Republic of China when importing broiler products or chicken products originated in the U.S. The countervailing duties shall be levied by means of ad valorem on the basis of dutiable value authorized by the China Customs, and the formula is: Countervailing duties = dutiable value authorized by the China Customs x rate of countervailing duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by the China Customs plus the tariff and countervailing duties as the taxable value.

IV. Administrative Reconsideration and Administrative Litigation

Where any party refuses to accept the review decision, it may, in accordance with Article 52 of the Countervailing Regulations, apply for an administrative reconsideration or institute legal proceedings in the people’s court according to the law.

V. The MOFCOM Announcement No. 41 of 2016 on Ruling on Expiry Review of Countervailing Measures against Imports of Broiler Products or Chicken Products Originated in the U.S will come into force as of August 30, 2016.

Ministry of Commerce of the People's Republic of China

August 22, 2016

(All information published in this website is authentic in Chinese. English is provided for reference only. )