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The Chinese Anti-Dumping Investigation: An Update

The Chinese Anti-Dumping Investigation: An Update. Presented by Doug Bassett Spokesman for Committee For Legal Trade and V-P of Sales at Vaughan-Bassett Furniture Company. What is Dumping?. Selling a product below cost in another country

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The Chinese Anti-Dumping Investigation: An Update

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  1. The Chinese Anti-Dumping Investigation: An Update Presented by Doug Bassett Spokesman for Committee For Legal Trade and V-P of Sales at Vaughan-Bassett Furniture Company

  2. What is Dumping? • Selling a product below cost in another country • Dumping that causes injury to a domestic industry (injurious dumping) is an ILLEGALtrade practice, condemned by the W.T.O. and its 147 member nations. • China and the U.S. are members of the W.T.O. • Both China and the U.S. impose anti-dumping duties against illegally traded product

  3. Proving Dumping Against China • China is a NON-MARKET ECONOMY – a fact recognized by the U.S., the W.T.O. and China • China does not play by the rules of fair trade • In non-market economies, actual costs and prices are not used in determining dumping • We do NOT have to prove China’s costs • Surrogate countries (market economy countries at a similar level of development) are used. • In our case, INDIA was the surrogate country.

  4. 4 Elements of An Anti-Dumping Investigation • 1. Sufficient Industry Support: (WON) • 2. Injury: 35,000 wood furniture jobs lost since 2000, which is 29% of U.S. workforce • 3. Causation: China shipped $430 million in 2000 China shipped $1.4 billion in 2003 – a 221% increase 4. Dumping: Commerce ruled that China IS DUMPING

  5. Preliminary Dumping Ruling • Lacquer Craft 4.9% • Shing Mark 6.6% • Dongguan Lung Dong 7.0% • Markor 8.4% • Tech Lane 9.4% • Rui Feng 19.2% • Starcorp 24.3% All Others Rate: 10.9% China-Wide Rate: 198%

  6. What Happens Now? • Oct. 31, 2003: Petition Filed • Dec. 10, 2003: Commerce grants standing and formally initiates investigation • Jan. 9, 2004: I.T.C. issues preliminary ruling of evidence of injury and causation • June 18, 2004: Commerce issues preliminary ruling that China is guilty of dumping • Nov. 5, 2004: Final Commerce Ruling on Dumping • Dec. 20, 2004: Final I.T.C. Ruling on Injury and Causation

  7. What Will The Final Duties Be? • These are HALF-TIME RESULTS. • The results are based on the Honor System. None of China’s responses have been VERIFIED. • All 7 Chinese companies have FAILED to provide Commerce with info requested. • Commerce has viewed data in light most favorable to Chinese. THEREFORE, FINAL DUTIES WILL LIKELY CHANGE…..

  8. What Does This Mean To YOU? • China IS CHEATING • What would the death of American furniture manufacturing mean to you? • Over 500 Furniture Suppliers Attended a Forum in Greensboro last August. • Most companies gave between $1000 -$10,000 to our legal defense fund. • Our legal bills will run over $1.5 million…

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