Ningbo Dafa Chemical Fiber 6 Years Struggle To Win U.S. Anti-Dumping Lawsuit

In November 4, 2011, the US Department of Commerce issued the final result of the third administrative review of anti-dumping cases on polyester staple fibres in China, and the third administrative review tax rate of Ningbo Dafa Chemical Fiber Co., Ltd. was zero.

So far, the Dafa chemical fiber has been granted three zero tax rates for administrative review.

In accordance with the provisions of the US Department of Commerce, the anti-dumping administrative orders against polyester staple fibers of Dafa chemical fiber have been cancelled since then, and they can rest assured that they have opened up the US market.

The struggle that lasted for six years has come to a perfect conclusion, but the process is not easy.

In June 23, 2006, the US Department of Commerce filed an anti-dumping investigation on China's export of polyester staple fibres in the United States. This is the first major anti-dumping case against textiles in China. A total of 54 Chinese companies are involved in the case, and 19 of them are responding.

As the main producing area, polyester staple products exported to the United States account for 50% of Ningbo's total exports.

The anti-dumping case has great impact on Ningbo polyester staple export enterprises.

In April 11, 2007, the United States made a final decision on the anti-dumping case of polyester staple fiber in China, and Dafa chemical fiber was awarded a 4.86% tax rate.

Although the tax rate is not high, it can still maintain the market share of the company in the United States, but Dafa chemical fiber believes that the anti-dumping duty of the US Department of Commerce in the anti-dumping case on Dafa chemical fiber is unreasonable. Since then, the company has embarked on a long review of six years.

In the first administrative review, the focus was on the color division of raw materials.

Dafa chemical fiber learned from the lessons learned from the final investigation of anti-dumping investigations, made detailed and meticulous color classification of raw materials, and standardized and collated a large number of original documents.

In January 6, 2010, the United States issued final ruling, and Dafa chemical fiber obtained the first zero tax rate for administrative review.

In the second review, the US Department of Commerce began to increase the cost of loading and replacing the port market, which was somewhat unfavorable to the calculation of dumping rate, but the impact was limited.

In January 12, 2011, the US Department of Commerce issued the second retrial final order, and Dafa earned a zero tax rate again.

According to the provisions of the US Department of Commerce, if an enterprise participates in administrative review for three consecutive times, it will receive zero tax rate, and the anti-dumping administrative order against the company will be cancelled.

Based on this situation, the US Department of Commerce launched the on-site verification 6 months ahead of schedule, and started on-site verification procedures in March this year.

"This administrative review is both an opportunity and a challenge for us."

General manager of Dafa chemical fiber Qian Jun said that fortunately in this field verification, one of the inspectors has lived in China for more than ten years, fluent in Chinese and relatively smooth in communication, and is more receptive to our explanation of verification.

The result of the third administrative retrial at the end of the zero tax rate marks the end of the six year long road to the United States antidumping litigation. The company has been divorced from the US dumping of polyester staple in the United States.

"Because our city's export product structure is dominated by consumer goods, general trade accounts for a relatively high proportion. Under the new situation of protectionism prevailing in the international trade, the export products of our city are relatively easy to be investigated by foreign trade relief.

Over the years, many enterprises in Ningbo have taken an active part in responding to the lawsuit. Some have achieved good results, such as the European Union's lighter anti-dumping case, the United States bearing anti-dumping case, and the US battery 337 survey.

Under the current complex and changeable international economic environment, enterprises must deal with anti-dumping barriers and other trade barriers. Only by courageously facing them, actively responding to them, arguing and fighting are the real solutions.

Li Xinhua, deputy director of Municipal Foreign Trade and economic cooperation, reminded.