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Public Accusation! The European Commission’s “double-reverse” Judgment Is Extremely Unreasonable

Dec 06, 2018

On November 20th, Mlex, a well-known investment and trade information media, published an article publicly commenting that there are some unreasonable rulings on the final ruling of the EU's “double-reverse” investigation on the Huaka Bus tires, arguing that the Chinese industry can raise relevant issues in the EU court. Litigation, seeking to reduce or terminate the "double-reverse" tax imposed.


 


 Refurbished tires should not be confused


According to Mlex, the high double-counter tax levied by the EU has caused the interests of Hankook, Xingyuan and other Chinese-related exporters to be challenged by law, and this “double-reverse” final ruling will be retreading tires and new tires. The importer has the hope of retrieving some or all of the double-reverse taxes that have been paid, such as confusing, unbalanced sampling data and re-weighting.


Chinese manufacturers say that the manufacture of new tires and the manufacture of retreaded tires are essentially different. One is to start producing tires from rubber raw materials, and the other is to work on recycling and recycling of after-sales tires. Their cost and profit structure are very different. The two are relatively independent things and industries, and should be clearly discussed separately in the survey.


Previously, the China Rubber Industry Association also organized corporate representatives to go to Europe to express their willingness to the investigation authorities. We advocate that the retreading manufacturers are not the producers of the products under investigation and cannot be classified as “EU industries”, and their data should not be damaged. The data foundation of the analysis.


"China Rubber" learned that the European Commission's investigation team firmly retained the opposite view. They have included retreaded tires in the scope from beginning to end. They think that although there may be differences in the production process, the products they ultimately get. Basically the same, it is not necessary to conduct a separate investigation of retreaded tires.


Mlex commented that, in spite of this, in the previous merger case, the committee considered new tires and retreaded tires as different products when dealing with cases involving no retread tire manufacturers, and some Chinese manufacturers considered the investigators accordingly. It is not reasonable to impose tariffs.


 


 SMEs account for imbalance


In addition, the strong reaction of Chinese manufacturers is that the European Commission has increased the proportion of data on European SMEs, and believes that this tendency may make the actual situation distorted.


Mlex said that Chinese tire manufacturers can still hold investigators' decisions in measuring some important data related to European SMEs, because in this case, SMEs are mostly refurbished tire companies, while large enterprises Most are manufacturers of new tires.


The response from the European Commission was that in the survey they had managed to get more data from large companies than from small and medium-sized enterprises.


But in fact, the result of the case is that the investigators gave the SMEs more weight in the survey database, which is said to be used to describe other small companies that cannot be sampled. These data immediately became the tire industry. Part of the evidence of unfair price damage. In other words, the basis for the decision of the organizing committee in the case is the investigation report of the changed data weight.


MLex made it clear that Chinese manufacturers have discovered these distorted facts, and they can prove to the organizing committee that their "double-reverse" investigations are based on these misinformation.


Jincheng Tongda Law Firm reminded that the Chinese industry can file a lawsuit in the European Court within three months after the final release date (the anti-dumping final ruling will be announced on October 22, and the countervailing ruling will be November 12). If the Chinese industry wins the case, the double-reaction measures may be reduced or terminated, and the importer may retrieve some or all of the double-reverse taxes already paid.


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