Two Chinese tire companies slammed US Department of Commerce

After marathon lawsuits, the Chinese tire industry finally breathed a sigh of relief. Recently, the United States National Trade Tribunal ruled that China's Hebei Xingmao Company and Tianjin United Tire & Rubber Co., Ltd. sued the US Department of Commerce for the success. The US Department of Commerce imposed illegal anti-dumping duties and countervailing duties on Chinese-made tires and must stop corresponding actions. Analysts pointed out that this judgment will not only benefit the two companies, but also will play a demonstration role for other enterprises in our country.

U.S. Department of Commerce sets Oolong

It is understood that in June 2007, TitanTire of the Iowa State and the American Labor Union complained to the US Department of Commerce and the US International Trade Commission that some of the non-road tires imported by China had been subsidized in the United States due to lower subsidies than normal values. , causing damage to related industries in the United States. On July 30 of that year, the U.S. Department of Commerce initiated anti-dumping and anti-subsidy investigations on certain non-road tires originating in China. On September 4, 2008, the U.S. Department of Commerce announced the final ruling that the dumping margin of China's Hebei Xingmao Tire Co., Ltd. was 29.93% and the subsidy rate was 14%.

Subsequently, China's Hebei Xingmao Company and Tianjin United Tire & Rubber filed a lawsuit against the US National Trade Court and sued the US Department of Commerce. According to the court’s ruling, the US Department of Commerce’s practice of simultaneously imposing anti-dumping duties and countervailing duties on Chinese tires constitutes double taxation. Since the countervailing duty is a kind of tax for market economy countries, the US Department of Commerce regards China as a "non-market economy country" and must abandon countervailing duties on Chinese products.

Judgment or demonstration

According to the Chinese attorney, Daniel Porter, the reason why the U.S. Department of Commerce lost the lawsuit is not only to regard China as a market economy but also as a non-market economy country. It is unable to completely understand whether anti-dumping duties and countervailing duties are levied at the same time. There is a double taxation. This is also the case with the US Department of Commerce in many cases similar to Chinese products.

Analysts pointed out that the success of this case not only benefited the two companies producing non-road tires, but also had a demonstration role for other Chinese export companies. When Chinese companies encounter irrational trade investigations by the United States, they will know how to apply WTO rules, actively respond to them, and safeguard their rights.

However, the Chinese attorney stated that due to the greater impact of the case, the US Department of Commerce may appeal to the US Court of Appeals.

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