In accordance with the Anti-dumping Regulations of the People's Republic of China (the "Anti-dumping Regulations"), on August 18, 2017, the Ministry of Commerce of the People's Republic of China (the "Investigation Authority") issued Announcement No.39 of 2017, deciding to carry out anti-dumping investigation against imports of broiler products (hereinafter referred to as the "Products under Investigation") originating in Brazil.
The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China's domestic industry caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the dumping and the damage. According to the investigation findings and Article 24 of the Anti-dumping Regulations, the Investigation Authority released on June 8, 2018, an announcement on the preliminary ruling, affirming that there was dumping of broiler products originating in Brazil and the domestic broiler industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.
Upon the preliminary ruling, the Investigation Authority continued its investigation into the dumping and dumping margin, the damage and the extent of such damage, as well as the causal relationship between the dumping and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (see Annex 1) according to Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:
I. Final Ruling
The Investigation Authority finally ruled that there was dumping of broiler products originating in Brazil and the domestic broiler industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.
II. Products under Investigation and the Scope Covered
Details of the Products under Investigation and products covered are as follows:
Scope: imports of broiler products originating in Brazil.
Name of the Products under Investigation: 白羽肉鸡产品.
Names in English: Broiler Products or Chicken Products
Description: broiler products are those that have been processed after living broiler is slaughtered in, including the whole chicken, the segmentation and by-products thereof, whether fresh, cold or frozen. Live chicken, broiler products canned and packaged or stored in other similar manners, chicken sausage and similar products, cooked chicken products are not within the scope of imported products to be applied for investigation.
Main purposes: broiler products are basically used for human consumption in domestic market and are usually sold to consumers directly or indirectly through the farmers' markets, supermarkets and other wholesale or retail manners, food and beverage and other channels.
The product is listed under tariff numbers of 02071100, 02071200, 02071311, 02071319, 02071321, 02071329, 02071411, 02071419, 02071421, 02071422, 02071429 and 05040021 in the Customs Import and Export Tariff of the People’s Republic of China. Chicken wings can be subdivided into whole wings, wing roots, wing middle joints, two-joint wings and wing tips. Whole wing refers to the part of chicken wings that is divided from the whole chicken along the shoulder joint, also called the three-joint wing; wing root refers to the part close to the root when being cut from the elbow joint; wing middle joint refers to the middle part when being cut from the elbow joint and wrist joints; two-joint wings refer to the part connecting wing middle joints and wing tips, or that connecting to the wing root and wing middle joints. Chicken knee cartilage in chicken giblets is the cartilage that connects chicken drumsticks and chicken thigh.
III. Levying of Anti-dumping Duties and Price Undertakings
The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on the levy of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of February 17, 2019, to impose anti-dumping duties on imports of broiler products originating in Brazil. Rates of anti-dumping duties imposed on companies are set forth in Annex 2 hereto.
After the initial ruling, 14 companies including JBS Group (SEARA ALIMENTOS LTDA, JBS AVES LTDA, AGRICOLA JANDELLE S/A, SEARA COMERCIO DE ALIMENTOS LTDA), C.Vale - Cooperativa Agroindustrial, Brazilian Food Company (BRF S.A., SHB COMERCIO E INDUSTRIA DE ALIMENTOS S.A., COMPANHIA MINUANO DE ALIMENTOS), Copacol - Cooperativa Agroindustrial Consolata, Cooperativa Central Aurora Alimentos, BELLO ALIMENTOS LTDA., LAR COOPERATIVA AGROINDUSTRIAL, COOPAVEL COOPERATIVA AGROINDUSTRIAL, São Salvador Alimentos S/A, RIVELLI ALIMENTOS S/A, GONCALVES & TORTOLA S/A, COOPERATIVA AGROINDUSTRIAL COPAGRIL, VIBRA AGROINDUSTRIAL S/A, KAEFER AGRO INDUSTRIAL LTDA, submitted an application for price undertakings to the Investigation Authority. The Investigation Authority reviewed the price undertakings and considered acceptable. According to the Anti-dumping Regulations, the Investigation Authority decided to accept the application for the price undertakings submitted by the foregoing companies (Annex 3), and the undertakings are effective at the same time as the final decision. During the term of the price undertakings, the Products under Investigation produced by the foregoing companies will not be subject to anti-dumping duties if they are exported to China at a price not lower than the promised price; in the event of a breach of price undertakings or other circumstances triggering the termination thereof, the anti-dumping duties will be imposed at the rate decided in the final ruling.
IV. Methods of Levying Anti-dumping Duties
As of February 17, 2019, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing broiler products originating in Brazil from Brazilian companies that have not signed price undertaking or companies that have been identified violating the foregoing undertakings. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: anti-dumping duties = dutiable value authorized by China Customs * rate of anti-dumping 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 anti-dumping duties as the taxable value.
V. Retrospective Collection of Anti-dumping Duties
Deposits provided by relevant importers to the Customs of the People’s Republic of China from June 9, 2018 to October 8, 2018 according to the announcement on the preliminary ruling, shall be transferred on the basis of detailed description of commodities taxable and the rate of anti-dumping duties determined by the final ruling to anti-dumping 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 anti-dumping duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.
Anti-dumping duties are not retroactively imposed on imports of broiler products originating in Brazil before June 9, 2018 and during the period starting from October 9, 2018 and ending on February 16, 2019.
VI. Period of Levying Anti-dumping duties and Price Undertakings
Imports of broiler products originating in Brazil will be subject to anti-dumping duties and price undertakings for five years as of February 17, 2019.
VII. New Exporter Review
Any new exporter in Brazil that does not export the Products under Investigation to the People's Republic of China during the investigation period, if qualified, may apply in writing to the Investigating Authority for a new exporter review according to Article 47 of the Anti-dumping Regulations.
VIII. Interim Review
During the period of levying anti-dumping duties, relevant interested parties may apply in writing to the Investigation Authority for review in light of Article 49 of the Anti-dumping Regulations.
IX. Administrative Reconsideration and Administrative Litigation
Any person who refuses to accept the final ruling of this case and the decision to levy anti-dumping duties may, according to Article 53 of the Anti-dumping Regulations, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.
MOFCOM Announcement No.6 of 2019 on Final Ruling on the Anti-dumping Investigation against Imports of Broiler Products Originating in Brazil will take effect as of February 17, 2019.
Ministry of Commerce of the People's Republic of China
February 15, 2019
(All information published in this website is authentic in Chinese. English is provided for reference only. )