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MOFCOM Announcement No.18 of 2018 on Final Ruling of Countervailing Investigation against Imports of Ortho Chloro Para Nitro Aniline Originating in India

2018-2-28 11:20:42

In accordance with the Regulations of the People's Republic of China on Countervailing (hereinafter referred to as the "Countervailing Regulations"), on February 13, 2017, the Ministry of Commerce (hereinafter referred to as the "Investigation Authority" or the "MOFCOM") issued Announcement No.5 of 2017, deciding to carry out countervailing investigation against imports of ortho chloro para nitro aniline (hereinafter referred to as the “Products under Investigation”) originating in India.

The Investigation Authority has investigated into the existence of subsidy and amount thereof, the existence of damage to China’s domestic industry of ortho chloro para nitro aniline caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the subsidy and the damage. According to the investigation findings and Article 25 of the Countervailing Regulations, the Investigation Authority released on October 20, 2017, Announcement No.57, preliminarily affirming that there was subsidy of ortho chloro para nitro aniline originated in India and the domestic ortho chloro para nitro aniline industry was substantially damaged, and there was causal relationship between the subsidy and the substantive damage.

After the preliminary ruling, the Investigation Authority has continuously investigated into the existence of subsidy and amount thereof, damages and the extent of such damages, as well as the causal relationship between the subsidy and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (see the Annex) according to Article 26 of the Countervailing Regulations. Relevant matters are hereby announced as follows:

I. Final ruling

The Investigation Authority finally affirms that there was subsidy of ortho chloro para nitro aniline originated in India and the domestic ortho chloro para nitro aniline industry was substantially damaged, and there was causal relationship between the subsidy and the substantive damage.

II. Products under Investigation and the scope thereof

Scope of investigation: imports of ortho chloro para nitro aniline originating in India
Name of the Products under Investigation: 邻氯对硝基苯胺.
English name: Ortho Chloro Para Nitro Aniline.
Molecular structure:

Chemical structural formula:
Description: it is usually yellow crystalline powder that is stable under normal temperature and pressure. It is soluble in ethanol, ether and benzene, and is slightly soluble in water and strong acid and insoluble in crude gasoline.

Main purposes: It is used as an intermediate for the synthesis of disperse dyes, organic pigments and corrosion inhibitors. It is also used as a specific drug for the treatment of schistosomiasis, niclosamide, and also used as a pharmaceutical intermediate.

The product is listed under tariff number of 29214200 in the Customs Import and Export Tariff of the People’s Republic of China. Other products under the above tariff number fall beyond the scope of this investigation.

III. Levying of countervailing duties

As required by Article 39 of the Countervailing Regulations, the MOFCOM suggests the Customs Tariff Commission of the State Council to levy countervailing duties on the imports of ortho chloro para nitro aniline originating in India. The Customs Tariff Commission of the State Council decides according to the suggestions of the MOFCOM to levy countervailing duty on imports of ortho chloro para nitro aniline originating in India from February 13, 2018.Import operators shall pay relevant countervailing duty to the Customs of the People’s Republic of China at the ad valorem subsidy rate determined by this ruling for each company when importing the Products under Investigation.

Rates of ad valorem subsidy imposed on companies are as follows:

Aarti Industries Limited:　　　　　　　　　　　　　21.2%
All others: 166.8%

IV. Methods of levying countervailing duties

As of February 13, 2018, import operators shall pay relevant countervailing duties to the Customs of the People’s Republic of China according to the countervailing duty rates determined by this ruling for each company when importing ortho chloro para nitro aniline originating in India. The countervailing duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs and the formula is: countervailing duties = dutiable value authorized by China Customs * rate of countervailing duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and countervailing duties as the taxable value.

V. Retrospective collection of countervailing duties

Deposits for temporary countervailing duty provided by relevant importers to the Customs of the People’s Republic of China from October 20, 2017 to February 12, 2018 according to the announcement on the preliminary ruling, shall be transferred on the basis of scope of commodities subject to countervailing duties and the rate of countervailing duties determined by the final ruling to countervailing duties, and the import value-added tax shall also be levied at relevant rate of value-added tax. Any excess of the deposits provided by importers during this period over the countervailing duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.

Imports of ortho chloro para nitro aniline originating in India before the date of announcement on taking temporary countervailing measures will not be subject to retrospective collection of countervailing duties.

VI. Period of levying countervailing duties

Imports of ortho chloro para nitro aniline originating in India will be subject to countervailing duties for five years.

VII. Review

During the period of levying countervailing duties, relevant interested parties may apply to the Investigation Authority for review in light of the Regulations of the People's Republic of China on Countervailing.

VIII. Administrative reconsideration and administrative litigation

Any person who refuses to accept the final ruling of this case and the decision to levy countervailing duties may, according to Article 52 of the Countervailing Regulations, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

MOFCOM Announcement No.18 of 2018 on Final Ruling of Countervailing Investigation against Imports of Ortho Chloro Para Nitro Aniline Originating in India will take effect as of February 13, 2018.

Ministry of Commerce of the People's Republic of China
February 12, 2018

 

 

 

(All information published in this website is authentic in Chinese. English is provided for reference only. )