My tire company won the first victory in the US lawsuit

U.S. Court of Justice rejects U.S. Department of Commerce’s anti-subsidy taxation on non-road tires in China

Sinochem New Network News US Court of International Trade ruled on August 4th, local time, that the US Department of Commerce imposed double taxation on anti-dumping and countervailing duties on non-road tires produced in China, and should stop the countervailing duty on two Chinese tire companies. . Two Chinese tire companies that filed suit against the US Department of Commerce won a phased victory in this case. On August 20, people in the industry expressed opinions on this case and believed that if the Chinese company eventually won the case, not only was it the first time that Chinese companies had won the lawsuit against the US anti-subsidy case, but also it would have safeguarded the rights of other Chinese enterprises using the WTO rules. Play an exemplary role.

According to the original decision of the US Department of Commerce, the United States not only imposed anti-dumping duties on non-road tires imported from China, but also imposed countervailing duties. On August 4, the U.S. International Trade Court rejected the U.S. Department of Commerce’s decision. It is understood that countervailing duty is a kind of tax for market economy countries, and the US Department of Commerce regards China as a non-market economy country. The US court held that, in the absence of technical measures and legal basis for accurate measurement of double calculations, support for countervailing does not apply to non-market economy countries. However, this decision was limited to companies that filed lawsuits against countervailing subsidies. Only Hebei Xingmao Tire Co., Ltd. and Tianjin International United Tire & Rubber Co., Ltd. were excluded from the countervailing sanctions. And other tire companies in China must continue to pay countervailing duties.

The U.S. International Trade Court requested the U.S. Department of Commerce to reply within 30 days from August 4th. Other relevant parties may submit comments on this decision within two weeks. The U.S. International Trade Court will make a final award within three months.

According to a person familiar with the matter, the U.S. Department of Commerce has the right to file an appeal to the U.S. Federal Circuit, and eventually changes the U.S. Department of Commerce’s “double negative” decision on China’s off-road tires. It also needs to face long administrative and judicial procedures.

The industry analysts believe that if Chinese companies eventually win, it will be a major breakthrough, and will definitely consolidate the determination of Chinese companies to safeguard their own rights in accordance with the law. China can use this case as an opportunity to provide strong evidence for the WTO ruling, thereby prompting the United States to recognize China’s market economy status as soon as possible. Under the current situation of increasingly fierce international trade friction, this case will become a typical case for Chinese companies responding to the US anti-subsidy case. At the same time, people in the industry stated that domestic tire companies should participate in international competition in accordance with laws and regulations, operating methods should be more internationalized, and they must maintain fair market competition and establish a brand image of Chinese products.

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On June 18, 2007, U.S. TITAN International Tire Co. and the U.S. Steel Workers Federation filed an application for anti-dumping and countervailing investigations on non-road tyres produced in China with the US Department of Commerce and the US International Trade Commission (ITC). The investigation period was 2006. From October 1 to March 31, 2007. This case became the first anti-dumping investigation of Chinese tires by the United States. On June 29th, more than 30 major tire companies and some export distributors in the country reached an agreement: the China Minmetals Chemicals Import and Export Chamber of Commerce and the China Rubber Industry Association took the lead to conduct damage-free defense. On August 15, 2008, ITC issued an announcement of final damages for China’s non-road tire anti-dumping and anti-subsidy case, and ruled that the Chinese-made products involved in the United States would inflict substantial damage on the US industry. On September 4, 2008, the U.S. Department of Commerce issued the final order of the "double reverse" case: the subsidy tax rate of 2.45% for Guizhou Tire Co., Ltd., 14% for Hebei Xingmao Tire Co., Ltd., and 6.85 for Tianjin International Tire & Rubber Co., Ltd. %, other companies 5.62%; dumping rates Guizhou tires 5.25%, Hebei Xingmao 29.93%, Tianjin Guolian 8.44%, Xuzhou Xugong Tire Co., Ltd. does not constitute dumping, the other 23 separate respondent companies 12.91%, unreported enterprises 210.48% . Since then, Tianjin International United Tire & Rubber Co., Ltd. and Hebei Xingmao Tire Co., Ltd. have filed a lawsuit against the US International Trade Court to sue the US Department of Commerce.