In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the Anti-dumping Regulations), on July 23, 2018, the Ministry of Commerce of the People's Republic of China (hereinafter referred to as the Investigation Authority or MOFCOM) issued Announcement No. 62 of 2018, deciding to carry out anti-dumping investigation into imports of stainless steel billets and hot-rolled stainless steel plates/coils (hereinafter referred to as the Products under Investigation) originating in the EU, Japan, the Republic of Korea and Indonesia. The Investigation Authority has investigated whether there have been any dumping and dumping margin, whether the Products under Investigation have caused any damages to China's domestic industry, the extent of such damage and 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 issued a preliminary ruling announcement on March 22, 2019 and preliminarily affirmed dumping of imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia, substantial damage to China's domestic stainless steel billet and hot-rolled stainless steel plate/coil industry and the causal relationship between the dumping and the substantial damage. After the preliminary ruling was made, the Investigation Authority continued to investigate the dumping, the dumping margin, the damage, the damage extent and the causal relationship between the dumping and the damage. Now all the investigations related to the case have been completed. The Investigation Authority has made a final ruling (see the Annex) according to Article 25 of the Anti-dumping Regulations. The relevant matters are hereby announced as follows:

I. Final ruling

The Investigation Authority has finally ruled that the dumping of imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia exists, it causes substantial damage to China's domestic stainless steel billet and hot-rolled stainless steel plate/coil industry and the causal relationship between the dumping and the substantial damage exits.

II. Imposition of anti-dumping duties and price undertakings

In accordance with Article 38 of the Anti-dumping Regulations, MOFCOM suggested levying the anti-dumping duties to the Customs Tariff Commission of the State Council. According to the suggestion of MOFCOM, the Customs Tariff Commission of the State Council then decided to impose anti-dumping duties on imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia starting from July 23, 2019.

The Products under Investigation are described in detail in the following:

Scope of investigation: imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia.
 
Chinese names of the Products under Investigation: 不锈钢钢坯 and 不锈钢热轧板/卷.
English names of the Products under Investigation: stainless steel billets and hot-rolled stainless steel plates/coils.

Description of the products: stainless steel billets and hot-rolled stainless steel plates/coils are alloy steels containing a carbon content of 1.2% or less and a chromium content of 10.5% or more by weight, regardless of the contained other elements, except for cold-rolled stainless steel products. The sections of stainless steel billets are rectangular (except the billets with square sections), or stainless steel billets are other semi-finished stainless steel products. Hot-rolled stainless steel plates/coils are made of stainless steel billets after the stainless steel billets undergo hot rolling and other processes, and they are made into coils or plates, regardless of their width and thickness.

Main applications: There are mainly two applications. One application is that they can be used as the raw materials to produce cold-rolled stainless steel. After they undergo the cold-rolling processes, they are made into cold-rolled stainless steel products. Another application is that they can be directly sold and be mainly used in many different industries such as the ship industry, the container industry, the railway industry, the electric power industry, the petroleum industry and the petrochemical industry.

The products are listed under tariff numbers of 72189100, 72189900, 72191100, 72191200, 72191312, 72191319, 72191322, 72191329, 72191412, 72191419, 72191422, 72191429, 72192100, 72192200, 72192300, 72192410, 72192420, 72192430, 72201100 and 72201200 in the Customs Import and Export Tariff of the People's Republic of China.

The anti-dumping duty rates and the corresponding companies are listed as follows:

EU companies: 43.0%
Japanese companies:
1. NIPPON YAKIN KOGYO CO., LTD 18.1%
2. All others 29.0%
South Korean companies:
1. POSCO 23.1%
2. All others 103.1%
Indonesian companies: 20.2%

The Investigation Authority has accepted the Price Undertaking (See Annex 2) proposed by POSCO. The price undertaking and the final ruling will take effect at the same time. During the period of the price undertaking implementation, the company shall not export the Products under Investigation produced by it to China at any prices lower than the corresponding promised prices without any anti-dumping duties being imposed on them. If the company violates the price undertaking or anything that may terminate the price undertaking occurs, then anti-dumping duties shall be levied according to the anti-dumping duty rates determined in the final ruling.

III. Methods of levying anti-dumping duties

As of July 23, 2019, each importer is required to pay the corresponding anti-dumping duty to the Customs of the People's Republic of China when importing the stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, South Korean companies whose price undertakings have not been accepted and Indonesia. The anti-dumping duty shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: amount of the anti-dumping duty = dutiable value authorized by the Customs * anti-dumping duty rate. 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 duty as the taxable value.

IV. Retroactive application of antidumping duties

The margins paid to the Customs of the People's Republic of China by the relevant importers according to the preliminary ruling announcement in the period from March 23, 2019 to July 22, 2019, shall be calculated and levied according to the scope of the products subject to anti-dumping duties and the anti-dumping duty rates determined in the final ruling, transformed into the anti-dumping duties and used to pay the import value-added tax according to the corresponding value-added tax rate. If the margin paid by an importer in the period is more than the corresponding anti-dumping duties, the customs will return the difference between the margin and the anti-dumping duties to the importer. If an importer has paid more import value-added tax than that required in the final ruling, the customs will return the difference between them to the importer. If an importer has paid less import value-added tax than that required in the final ruling, the customs will not levy the difference between them.

The anti-dumping duties will not retroactively imposed on imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia that were imported before the provisional anti-dumping measures were implemented.

V. Anti-dumping duty imposition period and price undertaking period

The anti-dumping duties shall be imposed on imports of stainless steel billets and hot-rolled stainless steel plates/coils originating in the EU, Japan, the Republic of Korea and Indonesia or the price undertaking shall be implemented for five years starting from July 23, 2019.

VI. New exporter review

The new and eligible exporters from the EU, Japan, the Republic of Korea and Indonesia who did not export the Products under Investigation to the People’s Republic of China in the investigation period can submit written applications to the Investigation Authority for new exporter review according to Article 47 of the Anti-dumping Regulations.

VII. Interim review

During the anti-dumping duty imposition period, the stakeholders can submit written applications to the Investigation Authority for interim review according to Article 49 of the Anti-dumping Regulations.

VIII. Administrative reconsideration and administrative litigation

According to Article 53 of the Anti-dumping Regulations, any person or organization that refuses to accept the final ruling and the anti-dumping duty imposition decision in the case may apply for administrative reconsideration or initiate litigation to a people's court according to the law.

IX. The announcement shall be implemented as of July 23, 2019.

Ministry of Commerce of the People's Republic of China
July 22, 2019

Translated by Liuzhao