The National Average Tax Rate Of Diamond Saw Blade Enterprises Get Zero Tax Rate!

At the beginning of the new year, Beijing Chang'an Law Firm ushered in a good start. The international trade team of Chang'an Institute led by Dr. Ye Xiaoming and lawyer Hou Xiaohua and the law team of Fox Rothschild LLP of the United States Institute, acting as the sole mandatory respondent, Chengdu Huifeng New Material Technology Co., Ltd. ("Chengdu Huifeng"), obtained the preliminary zero tax rate in the ninth review of the anti-dumping of diamond saw blades against China in response to the lawsuit of the United States, thus making the enterprises with the national average tax rate all obtain zero tax rate. This is the spring breeze at the beginning of 2020 and the pride of the international trade team of Chang'an Institute, Chengdu Huifeng and the diamond tool industry in China.

Although the two military powers of China and the United States did not have a positive armed conflict in the era of peace, the economic and trade war never stopped. The United States government has set up various trade barriers to block China's high-quality and low-cost products outside the country, in order to protect the development of the domestic industry in the United States. Among them, the United States has issued nearly 200 effective anti-dumping and countervailing orders and investigations against China. This means that China's exporters and producers in nearly 200 industries are fighting with the United States. The United States has never recognized China's market economy status. When calculating the dumping margin in the anti-dumping investigation, it does not recognize the production cost of Chinese enterprises at all, but uses alternative parameters to construct the so-called normal value. This calculation method of dumping margin makes it extremely difficult for Chinese enterprises to obtain a tax rate that can achieve sales to the United States, and it is even more difficult to obtain zero anti-dumping tax rate.

Since the 301 investigation authorized by US President Trump in August 2017, the Sino-US trade war has entered a white-hot phase. The international trade team of Chang'an Institute and the lawyer team of Fox Rothschild LLP of the United States Institute represented Chengdu Huifeng three times in 2017, 2018 and 2019 to respond to the 7th, 8th and 9th administrative review of the United States against the anti-dumping of diamond saw blades produced in China. The United States government abused its administrative power in the trade war. In the seventh review, it imposed a punitive tax rate of 82.05% on all Chinese enterprises that were forced to respond to the lawsuit and allowed all Chinese enterprises with average tax rate to apply the punitive tax rate. The overall failure of the 7th review has seriously hit the confidence of the entire diamond industry. In the 8th review, the US Department of Commerce has selected two groups of exporters of China's diamond saw blades with the largest annual export volume as compulsory respondent enterprises, none of which responded to the lawsuit. As an enterprise with average tax rate, Chengdu Huifeng failed to be selected as a compulsory respondent. The United States Department of Commerce again abused its administrative power and continued to impose a punitive tax rate of 82.05% on all enterprises with average tax rate actively responding to the lawsuit. Many enterprises have abandoned the United States market, which has been painstakingly exploited, or turned to other countries and regions to invest and set up factories. The diamond saw blade industry can only reduce production and lay off workers, and a large number of workers are unemployed. So far, the whole diamond saw blade industry has fallen into the most difficult and darkest moment.

The international trade team of Chang'an Institute and Chengdu Huifeng have not given up and will never give up. Chengdu Huifeng refused to accept the ruling. The 7th and 8th review were both appealed to the United States Court of International Trade by the International Trade Team of Chang'an Institute and the lawyer team of Fox Rothschild LLP of the United States Institute. On September 23, 2019, Chengdu Huifeng won the stage victory of the seventh review appeal. The International Trade Court ruled that the United States Department of Commerce abused its discretion, rejected the ruling of the United States Department of Commerce, and demanded that Chengdu Huifeng recalculate the tax rate. The 8th review will also have a new outcome due to the change of tax rate in the 7th review. At the same time, Chengdu Huifeng, as the only mandatory respondent to the ninth review, continued to respond to the anti-dumping review of the United States and accepted the on-site inspection of the United States Department of Commerce under the agency of the international trade team of Chang'an Institute and the lawyer team of Fox Rothschild LLP of the United States Institute. All members of the international trade team of Chang'an Institute have made every effort to respond to the lawsuit, carefully considered the precise response to each anti-dumping questionnaire question, constantly improved the calculation method of product cost at each step, countered the provocation and attack of each comment of the prosecution, and carefully searched for the best alternative parameters of each potential alternative country. Dr. Ye Xiaoming, the senior consultant of the international trade team of Chang'an Institute, visited Chengdu to guide the response to the lawsuit many times. He not only made strategic decisions, but also revised the reply to the US Department of Commerce and the rebuttal to the US prosecution's comments word by word, and calculated the extent of the dumping again and again with alternative parameters, working diligently and diligently. The international trade team of Chang'an Institute and Chengdu Huifeng trust each other, unite with each other, jointly resist the criticism and doubt from the outside world, unite, forge ahead, and look forward to the rebirth of Nirvana.
After more than 200 days and nights of arduous efforts, the international trade team of Chang'an Institute and Chengdu Huifeng finally ushered in the good news of the spring of 2020: zero tax rate! The grand pass is really like iron, and now we are stepping forward from the beginning. The zero tax rate of diamond saw blades in the 9th review of the United States against China is not only applicable to Chengdu Huifeng, but also to other enterprises with average tax rate. The whole diamond tool industry has moved from the darkest moment to the bright and bright. This victory also provides a strong shot for China's responding parties in all trade wars. On the way to fight against American imperialism, there is a long way to go. The international trade team of Chang'an Institute will continue to work hard, remain unchanged at the beginning and have a solid faith.