A Three Act Of War Without Gunpowder

July 14th us

The case is the first "double reverse" survey launched by the United States on Chinese textiles, and the first trade remedy measure taken by the United States to Chinese textiles after the abolition of textile quota.

Some people say that it is a wonderful war film. The two sides are at a stretch and the plot is complicated.

[Disc A] title: "Yao Ming" lawsuit

Starring: Xiamen Yao Ming ribbon Jewelry Co., Ltd.

Introduction: Yao Ming ribbon is a wholly owned enterprise in Hongkong, founded in 2004, specializing in the production of polyester satin ribbon, polyester rib ribbon, polyester woven label, nylon snow ribbon, velvet belt and other products.

In recent years, the reputation and quality of products have been widely recognized by the industry. The products are exported to more than 100 countries and regions in the world.

In 2009, the United States launched the "double reverse" survey of China's narrow belt weaving products, and Yao Ming's Webbing became the largest defendant.

In July 9, 2009, BERWICK OFFRAY, a 65 year old company (compared with Witkey owre, the largest ribbon manufacturer in the United States) and its wholly owned subsidiary Lion Ribbon Company, lodged a complaint with the US Department of Commerce and the International Trade Commission, accusing Chinese enterprises of dumping the tapes exported to the United States at below normal prices. It asked for an anti-dumping investigation and countervailing investigation (i.e. "double reverse" survey) on Chinese narrow woven products from China and Taiwan, China.

The first act is next to the war.

July 10, 2009, Xiamen, China.

Yao Ming, chairman of Yao Ming webbing, came to the company early in the morning to open the computer and check the mail.

A letter from an American customer from the other side of the sea revealed BERWICK OFFRAY's complaints about the narrow ribbon products from China.

After confirming the truth of the matter, Yao Ming sat paralyzed in an office chair.

Stunned, indignant and incomprehensible.

Yao Ming told reporters about his reaction at the first time: "as a common sense, we heard" anti subsidy "and" anti dumping "investigation in news, but we don't know about its specific content.

In recent years, China has been the world's largest number of anti-dumping and countervailing investigations for many years.

Since the outbreak of the international financial crisis, world trade protectionism has risen significantly, and countervailing has gradually become a new hot spot in China's trade friction.

As a new type of trade barrier, countervailing has the characteristics of trade and industry macro policy, which has a long effect and has chain imitation effect on other countries. It has greater harm to a country's foreign trade export and economic development.

In July 23, 2009, the United States formally filed a case against the narrow range originating in the mainland of China.

In August 6, 2009, the US Department of Commerce decided to set up countervailing compulsory respondent representatives according to the top two export volume in 2008 and determine the representatives of anti-dumping compulsory respondent according to the top two exports in 2009 1-5.

As the world's largest manufacturer of polyester ribbons, ribbon printing and ribbon ornaments, Yao Ming ribbon is listed as the number one object of the US "double reverse" survey.

At the same time, Nagatai Eiki Textile Co., Ltd. became another countervailing compulsory respondent enterprise, and Ningbo Jintian Trade Co., Ltd. is another anti-dumping compulsory respondent enterprise.

The second act is survival?

On the other side of the ocean, "war" has been stirred up, while mainland enterprises have raised the "white flag".

Under the guidance of the business department and the textile association, we have gradually understood the concept of "double reverse" and related procedures.

Similar anti dumping cases have been received by domestic enterprises since 2005, and the proportion of successful cases is only about 30%.

Yao Ming analysis said that such a lawsuit is difficult and requires a higher cost. If normal management is not too standardized, it will be more cumbersome to sue, and the size of the ribbon enterprises is generally not large enough to be intimidated. In addition, many enterprises involved are traders (non manufacturers), "I can not afford to hide them," they mostly give up the ribbon business and turn to other industries.

In fact, once the tariff of the ribbon industry exceeds 30%, the American customers are basically unacceptable.

The United States is the largest export market of Yao Ming ribbon, with sales of around us $7 million, which accounts for more than 60% of the total sales of the overseas market.

To be or not to be- that is the question (survival or destruction, this is the problem)! {page_break}

Yao Ming remembered the experience of the company registered in Xiamen in 2004.

Because China's basketball star Yao Ming is the same name, the industry and Commerce Bureau can not easily approve.

Yao Ming insisted repeatedly: "I have been called" Yao Ming "since I was little, and I am older than that Yao Ming. Why not allow me to register? Finally, after being approved by the State Administration of industry and commerce," Yao Ming ribbon "was finally registered successfully.

"This is my character!" Yao Ming thought that the company had no dumping action. "We have a clear conscience, and we must fight for it at a high price."

According to the "rules of the game", American officials classify the involved enterprises into three categories: compulsory respondent enterprises, ordinary respondent enterprises, and non respondent enterprises.

The compulsory respondent enterprises will enjoy a separate tax rate according to the US investigation situation; the ordinary respondent enterprises shall enjoy the average tax rate of the two compulsory respondent enterprises, and the enterprises that are not responding to the law will be subject to punitive tariffs.

Excluding 3 compulsory respondent enterprises, only more than 10 enterprises in mainland China are involved in responding.

"We are forcing the respondent enterprises to take the initiative in their own hands."

In August 21, 2009, Yao Ming personally deployed the company's "anti dumping, countervailing" work leading group and the "double anti" office, and appointed the deputy chief executive of the company as head of the group to conduct "double reverse" work in a comprehensive and coordinated way, with special responsibility for "double reverse" matters and striving to win the lawsuit.

It is regrettable that two other compulsory respondent enterprises, Rong Shu textile and Jin Tian trade, have voluntarily abandoned the opportunity to sue.

The average tax rate of ordinary respondent enterprises in China depends on the final result of compulsory respondent enterprises.

In a sense, Yao Ming's challenge is not only for himself, but also for China's textile industry.

The third act from "Purgatory" to "paradise".

In this lawsuit, Yao Ming described himself as "the newborn calf is not afraid of the tiger".

But after he really did it, he realized how difficult it was.

The "double reverse" survey of the US side is very long and cumbersome, and the respondent enterprises need to prepare detailed and detailed business data as the answer sheet, including the quantity amount questionnaire, the sales data questionnaire, and the cost data questionnaire.

"The United States will also make supplementary questions according to your answer, one or two times a week, once more than a dozen questions!" Yao Ming said that the US investigation has its own set of standards, and we should sort out the data according to their statistical caliber, audit investigation ideas and so on, so as to ensure the consistency of production, business, accounts, objects, cards and certificates.

Yao Ming ribbon every day hundreds of orders, involving a very large amount of data, the hardships of work can be imagined! "Teacher" arranged "homework", employees will have to work overtime, or even fight all night, it is possible to accurately and timely submit "homework".

Harder to deal with is the on-site verification of the US Commerce Department officials.

During the whole period of verification, the United States officials not only checked the data and actual examples, but also carried out the actual inquiries and spot checks of the operators, the field understanding and investigation at any time and anywhere, and then verified the accuracy and authenticity of the pre submitted materials so as to find out the cost price and calculate the dumping margin accordingly.

In March 8, 2010, the United States arrived at the dumping margin verification on the ground.

This is the last battle of the lawsuit and the most crucial battle.

The previous three campaigns have been successful: in December 4, 2009, the US Department of Commerce countervailing investigation preliminary ruling found that Yao Ming ribbon got 0.29% (less than 1% of the micro zero) tax rate; January 18, 2010 -19, the United States launched countervailing field verification, the effect was good; in February 6, 2010, the United States announced the anti-dumping preliminary results, Yao Ming ribbon won "zero" tariff.

However, many employees of Yao Ming's weaving belt had a psychological conflict.

"These foreigners are just looking for trouble!" the officials of the US Commerce Department cleaned up one by one according to their "verification outline", while employees were secretly talking about it behind their back.

As a result, five days of work took third days to complete the two day progress.

On the third night, the lawyer hired by Yao Ming's ribbon was no longer able to hold back.

He told Yao Ming that foreigners are very strict in their work. According to past cases, the established projects are not verified, which is very unfavorable to the final result.

Yao Ming's mood was heavy. "For this lawsuit, we put in a lot of manpower and material resources, and the actual cost is more than 3 million yuan.

We can't afford to lose all our skills. Let's clench our teeth.

The staff adjusted their mindset to actively cooperate with the US investigation.

Fourth days, overtime until 10 at night; fifth days, overtime until late at night 1.

Meals are eaten at the company and late after midnight.

The lawyer hired by Yao Ming's ribbon didn't sleep for five days.

A long wait.

In July 13, 2010, the US Department of commerce finally announced the final result: the mainland enterprises had to pay 123.83% or 247.65% of the anti-dumping duty besides Yao Ming's ribbon, and the lowest rate of anti subsidy tax was Yao Ming's ribbon, which was only 1.56%.

"This means that Yao Ming ribbon will enjoy exclusive access to the US green channel." Yao Ming is also known as China's first fighter to deal with "double opposition".

However, the countervailing duty rate has increased from 0.29% to 1.56%, so that the lawsuit can only be called "almost complete victory".

Yao Ming believes that "the US Department of Commerce may be wrong when it quotes some data". He is preparing to turn from "defendant" to "plaintiff" and appeal to the US Department of Commerce.

[Disc B] title: blow up "assembly number".

Starring: Xiamen TDC

Performance: other relevant departments in Xiamen

Introduction: in the countervailing investigation of the US Department of Commerce, the "Chinese government" is another respondent subject.

Specifically, all the departments involved in the business related government subsidy are the subjects of investigation, led by the competent commercial departments of the enterprises where the respondent is located.

In the case of "Yao Ming" lawsuit, the Xiamen TDC also sounded the "assembly" of the battle. The ten departments involved in the investigation, such as the Municipal Finance Bureau, the Economic Development Bureau and the Jimei district government, were charged with assault.

In 2009, there were 3 cases of countervailing cases involving Xiamen. Among them, the US "narrow double webbing" survey of China's narrow webbing has become the "double anti" case that Xiamen first dealt with.

Lin Zhen Ya is the director of the World Trade Office of TDC in Xiamen.

On the one hand, she was delighted and pleased that Yao Ming's weaving belt was responding to the lawsuit. "Chinese enterprises are finally ambitious"; on the other hand, the reply of Yao Ming's weaving belt directly pushed the TDC to the cusp of the "double anti" investigation, "the next time is busy enough."

The first act is timely {page_break}

In this competition, Xiamen TDC is both "coach" and "player".

When "coach", we must encourage enterprises to actively respond to complaints and introduce their experience. When "players" are due to the fact that the Chinese government is also one of the respondent subjects of the US countervailing investigation, the Ministry of commerce is responsible for the Chinese government's response to the case, and the Xiamen trade and Export Bureau is responsible for organizing the government's answer sheet of the Xiamen subsidy project.

"Although the Chinese government is also the principal respondent, the final result of the US Department of Commerce has no direct impact on the government, and the enterprise is the only main body of the" double anti "investigation results.

Lin Zhen Ya said, "enterprises should pay a considerable price for responding to lawsuits, and whether the government departments respond well or not directly affects the effect of responding to enterprises.

We must take this responsibility! "

To deal with trade remedy cases, enterprises need to spend a lot of manpower and material resources.

When the staff of Yao Ming ribbons are physically and mentally exhausted, the support from the government can be described as "timely help."

"Two counter two guarantees" is a trade protection measure, but after understanding and applying the rules of the game properly, it is possible to find survival opportunities in it. It may even be the biggest "winner" from the biggest "defendant"! It is the encouragement of Lin Zhen Ya and his colleagues that Yao Ming ribbon has eaten a "reassurance".

In the meantime, the Xiamen TDC itself has to play the "match" as well as the "team leader" role in Yao Ming's webbing.

The survey lasted four months, including ten departments, including the TDC, the Finance Bureau, the economic and Trade Bureau, the science and Technology Bureau, the Land Bureau, the development and Reform Commission, the price bureau, the power supply bureau and the Jimei district government. The survey involved a number of economic support measures in Xiamen.

In these sectors, the TDC is the lead unit.

The second act is unity of strength.

However, at present, there are discordant notes within the ranks of the enemy.

As the first respondent, plus the countervailing investigation involving more departments, more difficult collaboration, lack of protection of the working mechanism, the relevant departments involved in the lack of participation and coordination, affecting the efficiency of coping.

Some government departments are lack of cognition and enthusiasm.

The heart can not gather together, and the force will not make one place.

In August 2009, the Xiamen municipal government convened a coordination meeting in time.

"What does the US government want us to provide evidence? What policies we have to introduce is our business, but also the Americans!" at a coordination meeting, a leader of a department was filled with anger.

And his views represent the voice of many people.

The US side requests to provide a large amount of information. Because of the long time span, wide coverage, and the change and custody of personnel within the unit, it is very troublesome to check certain work materials, and many staff members are too lazy to move.

"It is understandable that we do not want to provide evidence."

Lin Zhen Ya's argument changed, "but in the countervailing case, the governments and enterprises in the investigated countries are also the subjects of litigation. If the government does not cooperate with them, it will make the enterprises fall into the disadvantage of being punitive tariffs, which is especially unfair to the enterprises that are actively responding."

Gradually clarified the "rules of the game", gradually understand the drawbacks of passive complaints, the attitude of the relevant departments has changed 180 degrees.

"What can we do for enterprises?" most departments began to think actively.

In response to countervailing measures, the Ministry of Commerce has hired professional lawyers from home and abroad to guide the response. The provincial foreign economic and trade department has actively guided the relevant factors. The Xiamen municipal government has also attached great importance to the deployment of relevant responses by the deputy mayor and deputy secretary general. Xiamen's TDC has organized and coordinated the relevant departments, and has successfully completed the government's questionnaire response.

In summing up the successful experience, Yao Ming listed one: "rely on government support".

In July 13, 2010, the United States announced final results.

Yao Ming's weaving has become the focus of attention both at home and abroad, and a group of people, such as Lin Zhen ya, has finally been relieved.