MOFCOM Announcement No. 44 of 2014 on Re-investigation of Anti-dumping and Countervailing Measures against Imports of Broiler Products or Chicken Products Originated in the U.S.

July 10, 2014 - 10:39 BJT (17:39 GMT)   MOFCOM

In order to carry out the ruling and proposal in the panel report of WTO Dispute Settlement Body on the case that the U.S. complained on China’s anti-dumping and countervailing measures against broiler products or chicken products originated in the U.S. (hereinafter referred to Case DS427), in accordance with the provisions of Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), Countervailing Regulations of the People's Republic of China (hereinafter referred to as the “Countervailing Regulations”) and Interim Rules for the Implementation of the World Trade Organization Rulings on Trade Remedy Disputes of the Ministry of Commerce (hereinafter referred to as the “Interim Rules on Trade Remedy Disputes”), the Ministry of Commerce issued annual Announcement No. 88 on December 25, 2013, deciding to conduct re-investigations on applicable anti-dumping and countervailing measures against imports of broiler products or chicken products originated in the U.S.

Broiler products or chicken products (hereinafter referred to as the “products under investigation”) are listed under tariff codes: 02071100, 02071200, 02071311, 02071319, 02071321, 02071329, 02071411, 02071419, 02071421, 02071422, 02071429 and 05040021 in the Customs Import and Export Tariff of the People’s Republic of China.

Based on the evidence submitted by all the interested parties and collected by the investigation authority during the original trial and re-investigation of the case and according to the proposal of the panel, the investigation authority conducted re-investigations to some procedures, on which the original anti-dumping and countervailing measures were based, as well as substantial issues. According to the results of re-investigation and in accordance with the provisions of the Anti-dumping Regulations, the Countervailing Regulations and the Interim Rules on Trade Remedy Disputes, the Ministry of Commerce has made the ruling of re-investigation (see Annex 1). Relevant matters are hereby announced as follows:

I. Rulings of re-investigation

Upon re-investigation, the Ministry of Commerce ruled that, there were dumping of and subsidies for imports of broiler products or chicken products originated in the U.S. The domestic industry of broiler products or chicken products in China was substantially damaged, and there was causal relation between the dumping, subsidies and the substantive damages.

II. Scope of investigation and the products under investigation

Scope of investigation: imports of broiler products or chicken products originated in U.S.
The details of the products under investigation are as follows:
Name of the products under investigation: broiler products or chicken products.

Detailed 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 codes: 02071100, 02071200, 02071311, 02071319, 02071321, 02071329, 02071411, 02071419, 02071421, 02071422, 02071429 and 05040021 in the Customs Import and Export Tariff of the People’s Republic of China.

III. Adjustment of rates of anti-dumping duties

According to the provisions of the Anti-dumping Regulations and the Interim Rules on Trade Remedy Dispute, the Ministry of Commerce proposed suggestions on adjustment of the rates of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of July 9, 2014, to impose anti-dumping duties on imports of broiler products or chicken products originated in the U.S. based on adjusted rates. The rates of anti-dumping duties against companies are set out in Annex 2 attached to the Announcement.

As of July 9, 2014, import operators shall pay relevant anti-dumping duties based on adjusted rates to the Customs of the People’s Republic of China when importing the broiler products or chicken products originated in the U.S.. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Anti-dumping duties = (dutiable value authorized by China Customs x rate of anti-dumping duties). The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Adjustment of rates of countervailing duties

According to the Countervailing Regulations and the Interim Rules on Trade Remedy Dispute, the Ministry of Commerce proposed suggestions on adjustment of the rates of countervailing duties to the Customs Tariff Commission of the State Council, which then decided, as of July 9, 2014, to impose countervailing duties on imports of broiler products or chicken products originated in the U.S. based on adjusted rates. The rates of countervailing duties against companies are set out in Annex 3 attached to the Announcement.

As of July 9, 2014, import operators shall pay relevant countervailing duties based on adjusted rates to the Customs of the People’s Republic of China when importing the 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 China Customs, and the formula is: countervailing duties = (dutiable value authorized by 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 China Customs plus the tariff and countervailing duties as the taxable value.

V. Administrative Reconsideration and administrative litigation

Any person who refuses to accept the ruling of re-investigation and adjustment of the rates of anti-dumping and countervailing duties, according to the provisions of Article 53 of the Anti-dumping Regulations and Article 52 of Countervailing Regulations, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

VI. The Announcement shall come into force as of July 9, 2014.

Translated by Hou Zuowei

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