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    Textile Chamber Of Commerce: Frequent Trade Remedy Cases

    2022/5/9 13:17:00 0

    TradeAnti Dumping

       In the international trade environment, many textile enterprises are troubled by the increasingly complex international trade environment. In this regard, Chinese textile and garment enterprises actively respond to this, and relying on the four body linkage response mechanism, under the leadership of the trade relief Bureau of the Ministry of Commerce and under the organization of the China Textile Import and Export Chamber of Commerce, China has won a complete victory in the anti-dumping investigation of viscose fiber yarn in India, the anti patch investigation of viscose yarn over 60 denier in India, and the investigation of clothing safeguard measures in Peru.

    In the past year, the number of trade remedy investigations encountered by China's textile and clothing industry showed a downward trend after reaching the historical peak in 2020 (22 cases in 2020) and 13 cases of trade remedy investigations were encountered, with a year-on-year decrease of 40%; The amount involved was US $2.085 billion, a year-on-year decrease of 23.6%. The anti-dumping, anti circumvention and safeguard measures investigations initiated by six countries, namely, South Korea, India, Brazil, Turkey, Argentina and Peru, involved polyester fully drawn yarn (FDY), viscose staple fiber, PU leather, polyester yarn, polyurethane impregnated textiles and other products. Among them, there were 4 new cases (3 anti-dumping cases and 1 safeguard measure), 7 Sunset Reviews and 2 anti circumvention cases.

    From the past cases, textile and clothing trade relief cases involved in the amount of tens of millions of dollars. In recent years, due to the rise of trade protectionism and the epidemic situation of new crown pneumonia, countries have strengthened the protection of domestic industries and intensified the investigation of trade remedy. In 2021, China's textile and garment industry encountered four original cases involving hundreds of millions of US dollars.

    China is Turkey's largest source of imports. According to GTF data, from 2018 to 2020, Turkmenistan imported textile and clothing products of US $1.95 billion, US $1.94 billion and US $1.58 billion respectively, accounting for 24.1%, 25.6% and 23.5% of its total imports. In order to protect the domestic industry, Turkey continued to launch trade remedy investigation on Chinese textile and garment products, and frequently launched anti circumvention investigation. So far, Turkey has launched a total of 54 trade remedy investigations against China, including 41 anti-dumping cases (including the original trial and review).

    South Korea also pays more attention to the protection of domestic industries. Since the first anti-dumping investigation on China's elastic yarn (DTY) was launched in 2005, South Korea has launched six trade remedy investigations on China's textile and clothing, mainly from 2011 to 2014, with a small amount involved (440000-4400000 US dollars), mainly focusing on DTY and oriented polyester yarn (POY) products. The anti-dumping case of US $1.7 billion was launched in China since 2026. On the basis of comprehensive enterprises' willingness to respond to the lawsuit, the case failed to organize industry defense, and five sample enterprises participated in dumping defense alone. On January 6, 2022, the investigation authorities of South Korea officially issued the final ruling announcement and decided to impose anti-dumping duties for five years.

    How to deal with the trade remedy investigation? In this regard, the textile chamber of Commerce holds that, China's textile and clothing export enterprises can enter the target market through dumping or subsidy defense (from the perspective of a single enterprise, it can prove that the export price of the product is not lower than its normal value into the target market) and the industry non injury defense (from the perspective of the industry, it can prove that there is no harm in the domestic industry of the investigating country, or there is no causal relationship between the import product and its domestic industry injury or damage threat, etc.) To answer the lawsuit. Among them, the enterprise alone dumping defense usually obtains the separate tax rate.

    At the same time, the chamber of Commerce has actively participated in the defense of the interests of the whole textile industry, and actively responded to the damage of the interests of enterprises in the whole industry. Last year, the textile chamber of Commerce organized a total of six case response coordination meetings, and successfully organized two cases of industry non injury defense -- Brazil polyester yarn anti-dumping investigation and Peru clothing second safeguard measures case. At present, the two cases are still under trial. Under the four body linkage mechanism, all parties actively cooperate. In 2020, the industry non injury defense of six cases organized by the textile chamber of Commerce has successively released the final verdict results, of which three cases (Indian viscose fiber yarn anti-dumping case, India's Viscose yarn over 60 denier anti subsidy case and Peru's clothing first safeguard measures case) have won.

    As an important part of the four body linkage mechanism, textile chamber of Commerce pays attention to early warning of trade remedy cases to help enterprises avoid export risks. After investigating the state-owned case, the textile chamber of Commerce will immediately inform the enterprises of the products involved and the progress of the case, mobilize and organize the enterprises to respond to the lawsuit, submit the defense opinions to the investigation organ after having a wide understanding of the industry and the export situation of the responding enterprises, participate in the hearing held by the investigation organ, state the anti taxation opinions, and contact the national business association of the other party Importers and downstream customers form an alliance force to jointly pressure the investigation authorities to resolve the adverse effects of bilateral textile trade friction cases, and safeguard the export operation of enterprises. In addition, the textile chamber of commerce also provides daily legal services such as technical barriers to trade services, information consultation, business training, research on laws and regulations, and early warning of foreign exchanges, so as to fully protect the interests of enterprises and safeguard the development of the industry.

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