1. THE TRADE REMEDY INSTITUTION, LEGAL STRUCTURE AND PRACTICE IN CHINA By Wang Xin Bureau of Fair Trade for Imports and Exports (BOFT) MOFTEC, P. R. China

2. Part I: The Trade Remedy Institution of China  Bureau of Fair Trade for Imports and Exports (BOFT)  Others:  Bureau of Injury Investigation of SETC  The Tariff Code Committee of State Council  The Head Office of Customs

3. BOFT  Before the end of 2000, trade remedy measures implemented by the Department of Treaty and Law of MOFTEC  From the end of 2000, BOFT with Department of Treaty and Law  From Nov. 1, 2001, the Bureau of Fair Trade for Imports and Exports (BOFT) set up independently under MOFTEC

4. BOFT--Functions  1, Draft the relative laws, regulations and rules about antidumping, countervailing and safeguards and other norms related to import and export trade;  2, Undertaking the tasks related to antidumping, countervailing according to the legal stipulations.l  3, Taking on safeguard matters, being in charge of safeguards tasks jointly with other organizations concerned;  4, Assuming the publication of public notice concerning antidumping, countervailing and safeguards;

5. BOFT--Functions  5, Bearing responsibilities to other works and foreign matters concerning fair trade for imports and exports;  6, Investigate the discriminatory policies, legal norms and practice taken by foreign countries against Chinese export products, and hold the concerned consultations and negotiations;  7, Guiding and coordinating the response and relative works about antidumping, countervailing and safeguards taken by foreign countries against China.

6. BOFT—Summary Work Scope  A, AD, CV and SG investigating against import products;  B, Guiding and coordinating the response to AD, CV and SG taken by other countries against China  C, Investigating and negotiating the trade and investment barriers adopted by other countries.

7. BOFT—Institution Structure  7 divisions and 1 general office  Division I for AD against Import Products  Division II for AD against Import Products  Division for CV and SG against Import Products  Division for Review

8. BOFT—Institution Structure  Division I for AD, CV and SG for Export Products  Division II for AD, CV and SG for Export Products  Division for Trade Environment Investigation  General Office

9. Part II: Legislation on AD, CV and SG Measures of China  Foreign Trade Law of the P.R.China  The Antidumping Regulations of the P.R.China  Ministerial Rules of MOFTEC, etc.

10. Legislation-- Foreign Trade Law  Article 29 Where a product is imported in such increased quantities as to cause or threaten to cause serious injury to domestic producers of like or directly competitive products, the State may take necessary safeguard measures to remove or ease such injury or threat of injury.

11. Legislation-- Foreign Trade Law  Article 30 Where a product is imported at less than normal value of the product and causes or threatens to cause material injury to an established domestic industry concerned, or materially retards the establishment of a particular domestic industry, the State may take necessary measures in order to remove or ease such injury or threat of injury or retardation.

12. Legislation-- Foreign Trade Law  Article 31 Where an imported product is subsidized in any form directly or indirectly by country of export and causes or threatens to cause material injury to an established domestic industry concerned or materially retards the establishment of a particular domestic industry, the State may take necessary measures in order to remove or ease such injury or threat of injury or retardation.

13. Legislation-- Foreign Trade Law  Article 32 In the events referred to in Article 29, Article 30 and Article 31, the authority or agency designated by the State Council shall conduct investigations and make determinations in accordance with relevant laws and administrative regulations

14. Legislation—AD, CV and SG Regulations of China  1997.3.25 The Antidumping and Countervailing Regulations of the P.R.China  6 Charters, 42 articles  Charter 5, 4 articles: Countervailing

15. Legislation—AD, CV and SG Regulations of China  2001. 12. 10, Premier Zhu Rongji signed State Council Decree No. 328, Promulgated the Antidumping Regulation of the P. R. China  2001. 12. 11, Premier Zhu Signed No. 329 Decree, Promulgated the Countervailing Regulation of the P.R.C  2001. 12. 12, No. 330 Decree, The Safeguard Measures Regulation of the P.R.C.  Three Regulations entered in force from Jan. 1, 2002, and the old AD and CV Regulation of 1997 was abolished simultaneously.

16. Legislation—Ministerial Rules concerning AD, CV and SG  11 Rules on AD  The Provisional Rule on Hearing of AD Investigation (2002. 1. 22, went into effect)  The Provisional Rule on Initiation of AD Investigation (2002. 3. 13)  The Provisional Rule on Questionnaire of AD Investigation (2002. 4. 15)

17. Legislation—Ministerial Rules concerning AD, CV and SG  The Provisional Rule on On-the-Spot Verification of AD Investigation (2002. 4. 15)  The Provisional Rule on Sampling of AD Investigation (2002. 4. 15)  The Provisional Rule on Price Undertaking of AD Investigation (2002. 4. 15)  The Provisional Rule on Information Disclosure of AD Investigation (2002. 4. 15)

18. Legislation—Ministerial Rules concerning AD, CV and SG  The Provisional Rule on Looking up the Public Information of AD Investigation (2002. 4. 15)  The Provisional Rule on Interim Review of Dumping and Dumping Margin (2002. 4. 15)  The Provisional Rule on New Exporter of AD Investigation (2002. 4. 15)  The Provisional Rule on Duty Refunding of AD Investigation (2002. 4. 15)

19. Legislation—Ministerial Rules concerning AD, CV and SG  4 Rules on CV  The Provisional Rule on Initiation of Countervailing Investigation (2002.3.13)  The Provisional Rule on Hearing of Countervailing Investigation (2002.3.13)  The Provisional Rule on Questionnaire of Countervailing Investigation (2002.4.15)  The Provisional Rule on On-the-Spot Verification of Countervailing Investigation (2002.4.15)

20. Legislation—Ministerial Rules concerning AD, CV and SG  2 Rules on SG measures  The Provisional Rule on Initiation of Safeguard Measures Investigation (2002.3.13)  The Provisional Rule on Hearing of Safeguard Measures Investigation (2002.3.13)

21. Part III: The Practice of Trade Remedy Measures in China  1, The Principle and Position for the Trade Remedy Measures Implementation:  A, Implementing measures firmly and strictly according to the principles and stipulations provided by the Foreign Trade Law of P.R.C and the Antidumping Regulation, Countervailing Regulation and Safeguard Measures Regulation, maintain the fair foreign trade order, be opposite the unjust and unfair trade practice of foreign countries.

22. The Practice of Trade Remedy Measures in China  The Principle and Position for the Trade Remedy Measures Implementation:  B, Use for reference the experience of other countries on the legislation and practice concerning AD, CV and SG, adopt the international practice, on the basis of the WTO rules, take trade remedy measures to avoid the domestic industry from injury caused by the dumped, subsidized products and increased imported products, to protect the just and legal interests of the enterprises.

23. The Practice of Trade Remedy Measures in China  The Principle and Position for the Trade Remedy Measures Implementation:  C, Base on fact and take the law as the criterion, make the just and fair decision and determination on the basis of full investigation.

24. The Practice of Trade Remedy Measures in China  2, The Outline of Trade Remedy Measures Practice:  A, Antidumping measures  From 1997. 12. 10 up to now, China has initiated 19 antidumping cases. They are:

25. The Practice of Trade Remedy Measures--Antidumping  Newsprint, initiated on Dec. 10, 1997, Korea, U.S, Canada involved.—First AD case of China.  Cold rolled silicon steel, 1999.3.12, Russia  Ployester film, 1999.4.16, Korea.  Cold rolled stainless steel sheet, 1999.6.17, Korea, Japan.  Acrylate, 1999.12.10, U.S. Japan, Germany  Methylene Chloride, 2000.12.20, France, Germany, Switzerland, U.K., U.S., Korea.

26. The Practice of Trade Remedy Measures--Antidumping  Ploystyrene, 2001.2.9, Japan, Korea, Thailand.  L-Lysine, 2001.6.19, U.S., Korea, Indonesia.  Ployester Chip, 2001.8.3, Korea.  Ployesterstaple fiber, 2001.8.3, Korea.  Acrylates, 2001.10.10, Korea, Malaysia, Singapore, Indonesia.  Caprolactam, 2001.12.7, Japan, Switzerland, Belgium, Germany, Russia.

27. The Practice of Trade Remedy Measures--Antidumping  Coated art paper, 2002.2.6, Korea, Japan, U.S., Finland.  Catechol, 2002.3.1., EU.  Pathalic anhydride, 2002.3.6, India, Korea, Japan.  Styrene Butadiene Rubber (SBR), 2002.3.19, Russia, Korea, Japan.  Cold Rolled steel products, 2002.3.23., Russia, Korea, Ukraine, Kazakhstan, Taiwan.  Tolune Di-isocyanate—TDI, 2002.5.22, U.S., Japan, Korea.

28. The Practice of Trade Remedy Measures--Antidumping  5 of 19 cases has made final determination and collected antidumping duty.  1 case terminated because of no injury.  1 case has make provisional determination  Other 12 cases are pending.

29. The Practice of Trade Remedy Measures--Antidumping  5 cases which has final determination are:  Newsprint, 9-78% antidumping duty  Cold rolled silicon steel, 0-6-62% duty  Ployester film, 13-46% duty.  Cold rolled stainless steel sheet, 4-58% duty.  Acrylate, 31-69% duty, terminated investigation to Germany because of its minimum export.

30. The Practice of Trade Remedy Measures--Antidumping  1 case was terminated because of no injury to domestic industry: Ploystyrene, 2001.2.9, Japan, Korea, Thailand.  1 case has made provisinal determination: Methylene Chloride, 7-75% provisional measure.

31. The Practice of Trade Remedy Measures--Antidumping  19 cases involved products: Chemicals, Chemical fibers, Steel and Iron, Papers.  Around US$ 5.5 billions importation.  20 countries and districts involved.

32. The Practice of Trade Remedy Measures--Countervailing  Up to now, no countervailing measures are taken by China

33. The Practice of Trade Remedy Measures—Safeguard Measures  2002.5.20, MOFTEC published public notice, initiated safeguard measures investigation against Steel and Iron from other countries.  2002.5.21, MOFTEC published public notice, took provisional safeguard measure against steel and iron form other countries.

34.  Bureau of Fair Trade for Imports and Exports (BOFT)  MOFTEC  No.2, Dong Chang An Ave., Beijing, P.R.C  100731 B O F T