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    The Maximum Tax Rate Is 15%! Indonesia'S Anti-Dumping Investigation Of Polyester Yarn In China

    2019/9/2 14:21:00 14

    Tax RatePolyesterYarnAnti-Dumping InvestigationResults

    In August 6th, the Indonesian Ministry of Finance issued 115/2019 notice to impose anti-dumping duties on polyester yarn products originating in China. The tax order comes into force on August 20th, and the tax term is three years. The final confirmation confirms that the highest tax rate for Chinese enterprises is 15%.

    The enterprises involved are concentrated in Jiangsu, Zhejiang and Fujian.

    The final judgment of the case confirms that the tax rate of Chinese enterprises is:

    The case was formally filed in October 27, 2017. The investigation period was from January 2016 to December 2016, and the customs code for the products involved was 54024700. According to customs statistics, the total amount of products exported to Indonesia during the survey period was about US $16 million 510 thousand, and the companies involved were concentrated in Zhejiang, Jiangsu and Fujian.

    Bachrul Chairi, chairman of the Indonesian anti dumping Committee (KADI), said it would introduce anti-dumping duties on the spin drawn yarn/SDY from China. There is some evidence that the export line of synthetic filament made by Chinese exporters to Indonesia has soared. This tax measure was stipulated in the 115th ministerial regulations of 2019, and came into force in August 20th to the next three years.

    Polymer fiber

    In addition to the synthetic filament yarn, the Indonesian government also imposed anti-dumping duties on polyester staple fiber (PSF) products or cut into a certain length of polymer fiber and included in the tariff item 5503.20.00. Indonesia has imposed additional import duties on polyester staple fibres from Taiwan, India and China, and will take effect from August 19th to the next three years. The policy stipulates that in the 114th ministerial Finance Ordinance 2019, this is the extension of the seventy-third ministerial finance minister act 2016.

    Bachrul said that the Indonesian government has studied carefully that the technology and products used by some countries or regions are not very different from that in the country, but the price is far lower than that in the domestic market. This situation causes the sales of domestic industrial products to be lower than the cost of production, resulting in adverse effects on domestic industries.

    China becomes a target country of global anti-dumping

    Since the establishment of WTO, China has been the country with the most anti-dumping cases for more than 20 years. Data show that in the past 1995-2016 years, China has accounted for nearly 1217 1/4 cases of anti-dumping cases. The rate of anti-dumping enforcement carried out by China is greater than that of the global level. The five countries and regions with the most anti-dumping investigations against China are India, the United States, the European Union, Argentina and Brazil.

    According to the data, 18 kinds of Chinese export products, except animal and vegetable oils and fats, have all been subjected to anti-dumping. Among them, steel, aluminum and other base metals and their products, chemical products and mechanical and electrical products are the 3 products that have suffered the most anti-dumping from abroad.

    In addition, the implementation period of anti-dumping measures is usually 5 years, and the anti-dumping countries will carry out reexamination before the expiry of the 5 year period. If it is deemed necessary, the anti-dumping measures for second 5 years will continue to be extended. 10 years, the impact on the development of the entire industry is huge, and the amount involved is more than ten billion.

    Why has China become the target country of global anti-dumping?

    There are several main reasons.

    First, China's export trade has expanded rapidly and its trade surplus has been increasing. India is China's primary source of anti-dumping. China's exports to India increased by 76.4 times in 22 years, and the surplus also expanded rapidly, with a surplus of 46 billion 651 million US dollars in 2016.

    Second, at present, the United States, the European Union, India and Mexico and more than 70 countries and regions have not yet recognized China's market economy status. Generally speaking, these countries do not recognize the price of the domestic market when they initiate anti-dumping in a non market economy country, so as to find an alternative country for price comparison, making foreign countries have a higher success rate of anti-dumping against China.

    Third, China's export products are mainly labor-intensive products with low added value, low price advantages and easy dumping. In the past, China only paid attention to price competition, and the response to anti-dumping was not active. Most export enterprises took a shot for another place. That is to say, the United States turned anti-dumping on China and turned to Europe or other areas, but now this condition has ceased to exist.

    Fourth, Chinese enterprises did not pay enough attention to anti-dumping, and did not understand the anti-dumping policies and practices of other countries. In 1997, China began to initiate anti-dumping actions against other countries and lacked deterrence against other countries' anti-dumping duties against China.

    Some experts pointed out that China's anti-dumping and countervailing investigations will be more serious in the future. Therefore, China needs to respond positively to foreign anti-dumping actions against China.

    First of all, we must adjust the traditional export trade mode. Export goals and concepts, product mix, competition strategy and export trade mode should be adjusted.

    Second, we should attach importance to and actively respond to developing countries such as India. We should strengthen the understanding of its anti-dumping policies and regulations and the practice of anti dumping in China, or through the conclusion of free trade agreements or the establishment of a free trade area, and the establishment of an early warning mechanism against anti-dumping against the major sponsors.

    At the same time, efforts should be made to reduce the global anti-dumping success rate to China and reduce the losses caused by anti-dumping. China's enterprises should actively respond to anti-dumping initiated by foreign countries, and strive for the early recognition of China's full market economy status by the major sponsor countries, and also seek fair and reasonable verdict results by resorting to the WTO dispute settlement body.

    At the same time, we should moderately strengthen China's anti-dumping. As soon as possible, the domestic anti-dumping legal system should be perfected, so that the main anti-dumping countries should moderately strengthen anti-dumping and enhance the deterrence of anti-dumping.

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