The Ministry of Commerce of the People’s Republic of China (the “Ministry of Commerce”) received the application for countervailing investigation formally submitted by Suzou Luosen Auxiliaries Co., Ltd. (the “Applicant”) on behalf of domestic ortho chloro para nitro aniline industry on December 16, 2016. The Applicant requested the countervailing investigation against imports of ortho chloro para nitro aniline originating in India. According to Article 16 of the Countervailing Regulation of the People’s Republic of China, the Ministry of Commerce made an invitation for negotiations to the Indian government concerning the countervailing investigation on January 5, 2017, and negotiated with the Indian government on February 10.
According to relevant provisions of the Countervailing Regulation of the People’s Republic of China, the Ministry of Commerce has examined the qualifications of the Applicant, relevant situations of the product with the investigation applied for, relevant situations of Chinese similar products, the influences of the product with the investigation applied for on domestic industry, relevant situations of the country (region) with the investigation applied for and so on.
According to evidences provided by the Applicant and the preliminary examination of the Ministry of Commerce, the ortho chloro para nitro aniline output of the Applicant in 2013, 2014, 2015 and the first half of 2016 accounted for more than 50% of the total output of Chinese similar products in the same period, which conforms to provisions on the application for the countervailing investigation for a domestic industry in Article 11 and Article 13 of the Countervailing Regulation of the People’s Republic of China.
It is claimed in the application that subsidies of the Indian government have been received for the product with the investigation applied for, and Indian ortho chloro para nitro aniline industry (enterprises) may benefit from 43 subsidy program in total. As per the evidences and information reasonably obtained, the Applicant has preliminarily estimated the subsidy amount of the product with the investigation applied for, which is not minimal subsidy. Meanwhile, it is claimed that the imports to China of the product with the investigation applied for increase largely, but prices decrease generally, lowering the prices of similar products in the domestic industry. As a result, the capacity of similar products in the domestic industry cannot be utilized effectively, and indicators such as sales quantity, market shares, the return on investment, cash flows and inventory percentage show a trend of deterioration. The domestic industry has suffered substantial damages, and there is a casual relationship between the subsidies for the product with the investigation applied for and the substantial damages of the domestic industry. Upon examination, the Ministry of Commerce believes that the application includes contents and relevant evidences required for the filing of the countervailing investigation in Article 14 and Article 15 of the Countervailing Regulation of the People’s Republic of China.
As per abovementioned examination results, the Ministry of Commerce decides, according to Article 16 of the Countervailing Regulation of the People’s Republic of China, to file the countervailing investigation against imports of ortho chloro para nitro aniline originating in India as of February 13, 2017. Relevant matters are hereby announced as below:
I. Filing of Investigation and Investigation Period
As of issue of the Announcement, the Ministry of Commerce files the countervailing investigation against imports of the ortho chloro para nitro aniline originating in India. The subsidy investigation period determined upon examination is from October 1, 2015 to September 30, 2016, and the investigation period for industrial damages is from January 1, 2013 to September 30, 2016.
II. The Product under Investigation and the Scope of Investigation
Scope of investigation: imports of the ortho chloro para nitro aniline originating in India.
Chinese name of the product under investigation: 邻氯对硝基苯胺.
English name: ortho chloro para nitro aniline.
Molecular structure:
Chemical structural formula:
Descriptions of the product: yellow crystalline powder, stable under normal temperature and pressure, soluble in ethyl alcohol, diethyl ether and benzene, slightly soluble in water and strong acid and insoluble in naphtha.
Main purposes: used to synthesize disperse dyes, organic pigments and the intermediate of corrosion inhibitor and produce niclosamide, a specific medicine preventing and treating schistosomiasis, or used as medical intermediate.
The said product is included into tariff code: 29214200 in the Customs Import and Export Tariff of the People’s Republic of China. Other products under this tariff code are not included in the scope of the investigation applied for this time.
III. Programs under the Countervailing Investigation
In the submitted application, the Applicant claims that the Indian government has provided 43 subsidy programs in total for the ortho chloro para nitro aniline industry of India. Upon preliminary examination and the lawful consideration of claims put forward by the Indian government and evidentiary materials attached during negotiations before the filing of the case, the Ministry of Commerce decides to investigate the following subsidy programs this time:
(I) Subsidy programs of the Indian central government
1. the incentive program for exporters with outstanding performance
2. the promotion program for exports of capital goods
3. the program for major products
4. the program for major markets
5. the program for major products linked to market
6. the Indian program for export commodities
7. the program for exemption of enterprises in special economic zones from tariffs of imported goods
8. the program for exemption of enterprises in special economic zones from consumption tax of goods procured at home
9. the program for reduction and relief of the income tax of export revenue for enterprises in special economic zones
10. the program for exemption of enterprises in special economic zones from central sales tax
11. the program for exemption of enterprises in special economic zones from service tax
12. the program for exemption of enterprises in special economic zones from the stamp duty of real estate transactions
13. the program for exemption of enterprises in special economic zones from electricity tax and surcharge
14. the program for exemption of enterprises in special economic zones from alternative minimum tax
15. the program for exemption of export-oriented enterprises from tariffs of imported goods
16. the program for exemption of export-oriented enterprises from the central consumption tax of goods procured at home
17. the program for rebate of the central sales tax of goods procured at home for export-oriented enterprises
18. the market access program and the market expansion support program
19. the program for interest subsidies for export credits
20. the program for tax reduction and relief for investment projects in the Income Tax Act
(II) Subsidy programs of local governments of India
21. the program of Gujarat for exemption of enterprises in special economic zones from the stamp duty and registration fees of land transactions, loans, credit extension and mortgage
22. the program of Gujarat for exemption of enterprises in special economic zones from payable taxes of sales and transactions
23. the program of Gujarat for exemption of enterprises in special economic zones from consumption tax and other taxes of domestic procurement
24. the program of Gujarat for interest subsidies to reward investment enterprises
25. the program of Gujarat for value-added tax rebate to reward investment enterprises
26. the program of Gujarat for investment and capital donation for micro, small and medium-sized enterprises
27. the program of Gujarat for interest subsidies for micro, small and medium-sized enterprises
28. the program of Gujarat for capital injection or loan provision for micro, small and medium-sized enterprises with innovative technologies
29. the program of Gujarat for quality certification subsidies for micro, small and medium-sized enterprises
30. the program of Gujarat for technology introduction expense subsidies for micro, small and medium-sized enterprises
31. the program of Gujarat for patent application expense subsidies for micro, small and medium-sized enterprises
32. the program of Gujarat for energy and water saving expense subsidies for micro, small and medium-sized enterprises
33. the program of Gujarat for investment platform expense subsidies for small and medium-sized enterprises
34. the program of Gujarat for international exhibition expense subsidies for micro, small and medium-sized enterprises
35. the subsidy program of Gujarat for the investment of private enterprises in core infrastructures in industrial parks
36. the program of Maharashtra for value-added tax and central sales tax rebate to reward investment enterprises
37. the program of Maharashtra for exemption from stamp duty to reward investment enterprises
38. the program of Maharashtra for exemption from electricity tax to reward investment enterprises
39. the program of Maharashtra for interest subsidies to reward investment enterprises
40. the program of Maharashtra for electricity price subsidies to reward investment enterprises
41. the program of Maharashtra for water and energy saving expense subsidies to reward investment enterprises
42. the program of Maharashtra for other subsidies to reward investment enterprises
43. the program of Maharashtra for special subsidies for large or super-large projects
IV. Registry of Participation in the Investigation
Within 20 days after the release of the Announcement, an interested party or the government of the interested country (region) may be registered at the Trade Remedy and Investigation Bureau of the Ministry of Commerce for participation in the countervailing investigation. An interested party or the government of the interested country (region) participating in the investigation shall provide basic identity information, the quantity and amount of the investigated product exported to or imported by China, the quantity and amount of similar products produced and sold, relationships and other explanatory materials according to the Reference Format for Registry of Participation in Investigation. The Reference Format for Registry of Participation in Investigation may be downloaded from relevant websites (attached below, the same below).
For purpose of the Announcement, interested parties refer to individuals and organizations specified in Article 19 of the Countervailing Regulation of the People’s Republic of China.
V. Inquiry of Public Information
Interested parties and the government of the interested country (region) may download from relevant websites or look up, read, transcribe and copy the non-confidential text of the application submitted by the Applicant at the Trade Remedy Public Information Room of the Ministry of Commerce (Tel.: 0086-10-65197878). In the course of the investigation, any interested party or the government of the interested country (region) may look up any public information on the case at relevant websites, or look up, read, transcribe and copy any public information on the case at the Trade Remedy Public Information Room of the Ministry of Commerce.
VI. Comments on Filing of the Case
If any interested party or the government of the interested country (region) needs to give comments on the scope of the product under the investigation, the qualifications of the Applicant, the investigated country (region) and other relevant issues, the said interested party or the government of the interested country (region) may submit written opinions thereof to the Trade Remedy and Investigation Bureau of the Ministry of Commerce within 20 days after the date of release of the Announcement.
VII. Investigation Methods
According to Article 20 of the Countervailing Regulation of the People’s Republic of China, the Ministry of Commerce may learn about conditions from interested parties and the government of the interested country (region), and make the investigation by means of questionnaires, sampling, hearings, on-site inspections, etc.
With the view of obtaining the information necessary for the case, the Ministry of Commerce usually distributes questionnaires to foreign exporters or producers involved in the case, domestic producers and importers as well as the government of the interested country (region) set out in the application within ten working days as of the deadline of registry of participation in the investigation set out hereunder. Interested party and the government of the interested country (region) registered for participation in the investigation may download questionnaires from relevant websites.
The inquiry information in the Questionnaire for Foreign Exporters or Producers Involved in the Countervailing Case of Ortho Chloro Para Nitro Aniline includes corporate structure and operation, affiliated companies, production costs, sales and other information, as well as the detailed information of each concrete subsidy program investigated. The inquiry information in the Questionnaire for Domestic Producers Involved in the Countervailing Case of Ortho Chloro Para Nitro Aniline includes corporate basic information, situations of domestic similar products, business and relevant information, finance and relevant information and other issues needing to be described. The inquiry information in the Questionnaire for Domestic Importers Involved in the Countervailing Case of Ortho Chloro Para Nitro Aniline includes corporate basic information, trade of the product under the investigation and relevant information. The inquiry information in the Questionnaire for the Government Involved in the Countervailing Case of Ortho Chloro Para Nitro Aniline includes situations of the product with the investigation applied for, industrial situations, management structure and policies, as well as the detailed information of each concrete subsidy program investigated.
Other interested parties and the government of the interested country (region) not registered for participation in the investigation may directly download questionnaires from relevant websites, or ask for them from the Trade Remedy and Investigation Bureau of the Ministry of Commerce and fill in and submit them according to requirements.
All companies and the government of the interested country (region) shall submit questionnaires with complete and accurate answers within a prescribed time. The answer sheets shall include all the information required by the questionnaires.
VIII. Submission and Processing of Confidential Information
If it is necessary to keep confidential the information submitted by an interested party or the government of the interested country (region) to the Ministry of Commerce, the said interested party or the government of the interested country (region) may make a request to the Ministry of Commerce for confidential treatment of relevant information and give reasons. If the Ministry of Commerce agrees about the said request, the interested party or the government of the interested country (region) applying for confidentiality shall provide the non-confidential summary of the said confidential information. The non-confidential summary shall include full and meaningful information, so that other interested parties can reasonably understand the confidential information. If the non-confidential summary cannot be provided, a specific reason shall be given. If the information submitted by an interested party or the government of the interested country (region) does not state that it is necessary to keep it confidential, the Ministry of Commerce will deem the said information as public information.
IX. Consequences of Non-cooperation
According to Article 21 of the Countervailing Regulation of the People’s Republic of China, when the Ministry of Commerce makes investigations, an interested party or the government of the interested country (region) shall faithfully reflect situations and provide relevant materials. If an interested party or the government of the interested country (region) fails to faithfully reflect situations or provide necessary information, or fails to provide necessary information within a reasonable time, or seriously impedes an investigation in any other way, the Ministry of Commerce may give a ruling according to available facts.
X.Investigation Period
The investigation will start from February 13, 2017, and generally end before February 13, 2018. In a special circumstance, the deadline may be extended to August 13, 2018.
XI.Contact
Address: No. 2 Dong Chang'an Avenue, Beijing, China
Postcode: 100731
Trade Remedy and Investigation Bureau of the Ministry of Commerce
Tel.: 0086-10-65198417, 65198473
Fax: 0086-10-65198415
Relevant websites: sub-website of the Trade Remedy and Investigation Bureau of the Ministry of Commerce (http://trb.mofcom.gov.cn)
China Trade Remedy Information (http://www.cacs.mofcom.gov.cn)
Ministry of Commerce
February 13, 2017
(All information published in this website is authentic in Chinese. English is provided for reference only. )
Zhang Yongming Chairman ...
Promoting international trade, promoting utilization of foreign investment, prom...
CCPIT Beijing, a foreign economic and trade organization composed of representat...