Recently, Pakistan’s investigation authority rendered a final award on Pakistan’s anti-dumping investigation into tiles imported from China. China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC) represented by JT&N reached a price commitment with the investigation authority. This is the first time that Pakistan’s anti-dumping investigation into products imported from China has been concluded by reaching a price commitment. JT&N partners Chen YANG and Lin LI acted as the lawyers in charge of the project.
On October 11, 2017, Pakistan’s investigation authority (hereinafter the "Investigation Authority") issued a final award on the anti-dumping investigation into tiles imported from China. JT&N, acting as the agent of China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (“CCCMC”), assisted 257 Chinese tile manufacturers and exporters in reaching a price commitment with the Investigation Authority.
On February 19, 2016, the Investigation Authority decided to carry out an anti-dumping investigation into tiles imported from China (mostly wall and floor tiles regardless of whether they are glazed or non-glazed, polished or non-polished; the customs codes involved include 69071000, 69079000, 69081000, 69089010 and 69089090). During the investigation, tiles worth RMB116 million were imported from China to Pakistan, involving more than 100 export enterprises.
After the case was filed, JT&N responded to the lawsuit as the agent of CCCMC. During the proceedings, many tile manufacturers and export enterprises applied for participation in the industry response organized by CCCMC, and many other tile manufacturers participated in a separate anti-dumping response.
On February 18, 2017, the Investigation Authority rendered a preliminary award, affirming that dumped products imported from China had caused substantial damage to Pakistan’s domestic industry, and decided to impose a 5.21% - 59.18% temporary anti-dumping duty on tiles imported from China. More importantly, all Chinese trade exporters were imposed the highest duty rate of 59.18%, which was extremely unfavorable to China’s tile industry in which trading companies are exporters.
After the preliminary award was issued, JT&N worked with lawyers of the Pakistani side to actively communicate with the Investigation Authority over the plan to conclude the case by means of price commitment, and submitted the plan to the Investigation Authority for many times. Subsequently, CCCMC organized a delegation consisting of CCCMC, Foshan Bureau of Commerce, Foshan Ceramics Industry Association, Hunan Entry-Exit Inspection and Quarantine Bureau, enterprise representatives, and JT&N.
Group photo of the delegation
During July 31-August 2, 2017, the delegation went to Pakistan to negotiate with the Investigation Authority, during which it received strong assistance from the business office of the Chinese embassy in Pakistan.
After the talks, the parties shook hands and wished that a price commitment would be reached as soon as possible.
After a series of arduous negotiations and communication, overcoming the extrajudicial factors before the issuance of the final award, such as the lawsuit brought in the Pakistani court, the Chinese side signed a price commitment agreement with the Pakistan’s Investigation Authority on September 29, 2017.
Most of price requirements raised by the Chinese side were met and took effect as of the date of the final award. The price commitment agreement stipulates that a participating enterprise exporting its products to Pakistan at a price higher than the price committed may be exempted from the anti-dumping duty, which will greatly reduce the impact of the anti-dumping investigation into tiles imported from China to Pakistan.
This case is another achievement made by JT&N’s International Trade Relief Team in responding to foreign anti-dumping investigations for and on behalf of China’s tile industry following its efforts to conclude the Brazil’s anti-dumping investigation into tiles imported from China by reaching a price commitment, Colombia’s anti-dumping investigation into tiles imported from China with the Colombian side taking no anti-dumping measures and Mexico’s anti-dumping investigation into tiles imported from China by reaching the first price commitment in history.
Lawyers in charge
