Article 1 The present Provisions are formulated in accordance with the Antidumping Regulation of the People's Republic of China (hereinafter referred to as Antidumping Regulation), with the aim to regulate the antidumping investigation of industry injury.

Article 2 The present Provisions shall apply to the activities related to the antidumping investigation of industry injury in accordance with the Antidumping Regulation.

Article 3 The Ministry of Commerce of the People's Republic of China (MOFCOM) shall take charge of the antidumping investigations of industry injury. As for the antidumping investigations of industry injury related to agricultural products, the responsibility shall be undertaken jointly by the MOFCOM and the Ministry of Agriculture.

Chapter II. Cognizance of Injury

Article 4 The term "industry injury" refers to an actual injury or a risk of actual injury to the existing domestic industry, or actual encumbrance of the establishment of a domestic industry resulted from dumped imports.
The term "actual injury" as stated in the present Provisions refers to the non-negligible injury caused by dumped imports to an established domestic industry.
The term "risk of actual injury" means that no actual injury has been caused to the domestic industry, but there is evidence showing that an actual injury to the domestic industry is clearly foreseeable and imminent unless measures are taken against it.
The term "actual encumbrance" means that the dumped imports have not resulted in actual injury or have not formed a risk of actual injury to the domestic industry, but has seriously retarded the establishing process of domestic industry.

Article 5 In the Cognizance of the injury caused to the domestic
industry by dumped imports, the following matters shall be
investigated:
(1) The volume of the dumped imports and the consequential effect
dumped imports on the price of domestic kindred products;
(2) The consequential effect of the dumped imports on domestic
industry.
Article 6 The investigation of dumped imports shall involve whether
there has been a significant increase in dumped imports either in
absolute terms or relative to the production or the consumption of
the domestic kind products.
The investigation of the consequential impact of dumped imports on
the price of domestic like products shall involve whether there has
been a significant price reduction of the dumped imports or whether
the dumped imports have resulted in a significant depression in the
price of the domestic like product or prevented price increase of
the domestic like products that would have occurred.
Article 7 The investigation of the impact of the dumped imports on
the domestic industry shall involve an assessment of all relevant
economic factors and indicators which have influences on the
situation of the industry, including actual and potential decline in
sales, profits, output, market share, productivity, return on
investment, or equipment utilization, the factors that have
influences on domestic prices, the amplitude of the dumped imports;
the actual or potential adverse effects on the inventories,
employment, wages, growth, ability to raise capital or to make
investment etc.
Article 8 The determination of an actual injury shall be based on
the clearly foreseeable and imminent situation, in which if no
measures are taken, an actual injury will occur. The determination
of a risk of actual injury shall be based on facts, rather than
simply on complaints, conjectures or the least possibility.
Moreover, when determining a risk of actual injury, investigations
shall be made but not limited to the factors as follows:
(1) Significant increase rate showing a likely actual increase of
dumped imports;
(2) The capability of the exporters to use fully and freely or of
potential actual increase, which shows a likely actual increase of
dumped exports entering the market of the importing members. In the
use of this indicator, one should consider the factor whether there
are any other export markets that may take in any additional
exports;
(3) Whether the imported product are being imported in prices of
significant depression or suppression of prices of domestic like
product, which is likely to cause an increase of the demands of
imports;
(4) The inventories of the products under investigation.
Article 9 When determining an actual encumbrance of the
establishment of a domestic industry, the investigation shall, in
addition to the factors listed in Article 8, be made but not limited
to the factors as follows:
(1) The foundation and the related preparatory work of the domestic
industry;
(2) The increase of domestic demands and the consequential effects;
(3) The impact of the dumped imports on the domestic market;
(4) The follow-up productivity of the dumped imported product and
the development trends in the domestic market.
Article 10 like product refers to a product that is identical to, or
in the absence of such a product, one that has characteristics
closest to those of the imported dumped product in question.
Article 11 In the determination of like products, such factors shall
be taken into account as the physical characteristics of the
products, chemical features, manufacturing equipment and techniques,
purposes of use, substitutability, appraisal of consumers and
producers, distribution channels, and prices, etc.
Article 12 The influence of the dumped imports on domestic industry
shall be assessed on the basis of the separate definition of the
production of the domestic like product. If, on the basis of the
techniques of production and the producers'' sales and profits, one
cannot distinguish the production of domestic like product from the
production of other products, the influence of dumped imports shall
be determined by reference to the production of the narrowest
product group or scope which include the domestic like product
insofar as the product group or scope can provide sufficient
information.
Article 13 In the determination of a domestic industry, one should
consider all the producers of the domestic like product in China, or
the producers whose total output forms the principal part of the
total output of the domestic like product; however, if a domestic
producer is associated with an export business operator or import
business operator, or he himself is an import business operator of
the dumped imports, he may be not be considered as the domestic
industry.
The term "is associated with" mentioned above means that one party
directly or indirectly controls or influences another, or both
parties are controlled or influenced by a third party, or both
parties jointly control or influence a third party in a direct or an
indirect way.
Article 14 In the determination of a regional industry, the
following factors shall be considered:
(1) The producers sell all of or nearly all of the like products
manufactured by them in this regional market;
(2) The demands of the regional market aren''t satisfied or aren''t
mainly satisfied by the like-product producers in other domestic
areas; and
(3) Other factors.
Article 15 An accumulative evaluation of the influence of dumped
imports on the domestic industry may be made if the dumped imports
come from two or more countries (regions) and simultaneously meet
requirements as follows:
(1) The dumping margin is not less than 2% and the volume of dumped
imports isn''t negligible;
(2) It is reasonable to make an accumulative evaluation according to
the competition conditions among the dumped imports and those
between the dumped imports and the domestic like products,.
(3) The term "negligible" mentioned above means that the volume of
the dumped imports from a country (region) is considered negligible
if it accounts for below 3% of the total volume of the imported like
product, but excluding the circumstance that countries which
individually account for below 3% collectively account for more than
7% of the total volume of imports of like products.
Article 16 In an accumulative assessment, the following factors
shall be considered:
(1) The continuity and possibility of the influence of dumped
imports from different countries (regions) on the domestic industry;
(2) The substitutability between the dumped imports from different
countries and the domestic like product, including such factors as
the demands of special clients, product quality and so on;
(3) The sales prices, quoted prices of the sells and actual
transactions prices of the dumped imports from different countries
(regions) and the domestic like product in the markets of a same
area;
(4) Whether there are identical or similar distribution channels for
a dumped product imported from different countries (regions) and the
domestic like product, and whether they occur in the market
simultaneously;
(5) Other competition conditions that exist among the dumped imports
and between the dumped import product and the domestic like product;
and
(6) Other factors.
Article 17 In the investigation of industry injury, the MOFCOM shall
give users or consumers of the dumped imports an opportunity to
present their views and evidences.
Article 18 The period subject to antidumping investigation of
industry injury shall generally be 3-5 years before the
investigation commences.
Chapter III. Industry Injury Investigation
Article 19 When any interested party applies for answering the
antidumping investigation of industry injury, it shall apply to the
MOFCOM within 20 days from the day when an announcement on the
initiation of antidumping investigation of industry injury is made,
and shall carry out relevant registration formalities. At the same
time, the applicant shall offer the information related to its
productivity, output, inventories, construction and expansion plans,
the volume and amount of the product exported to China, the volume
and amount of the product imported by the import business operators.
Article 20 The interested parties may be:
(1) overseas producers, export business operators, and domestic
import business operators of the products under investigation, or
guilds or other organizations of the producers, export business
operators and import business operators of the products under
investigation;
(2) the government of the country (region) of origin and the export
country (region) of the products under investigation as well as the
representatives thereof;
(3) producers and business operators of domestic like products, or
guilds or other organizations of the producers and business
operators of the products; or
(4) others.
Article 21 An interested party who is involved in the investigation
shall present his identification certificate. In the case that the
interested party is an enterprise or any other organization, it
shall submit its business license and other registration
certificates, and the identification certificate of the legal
representative.
In the case that an interested party entrusts an agent to deal with
the matter under investigation, it shall present identification
certificate of the agent and a power of attorney. In the case that
an interested party entrusts a lawyer as his proxy, the lawyer shall
serve a law firm in China and shall practice law in China, a power
of attorney, the business license of the law firm and the
law-practice certification of the lawyer shall be presented.
Article 22 In the antidumping investigation of industry injury , the
objects of the MOFCOM include domestic producers, domestic import
business operators, domestic purchasers, domestic end consumers,
foreign export business operators and foreign producers, etc.
Article 23 The MOFCOM may, whenever necessary, consign experts in
the fields of the relevant industry, accounting, economics, trade,
and law to provide consultation services. The experts involved shall
keep the secrets.
Article 24 The MOFCOM shall take such means as questionnaires,
sampling, hearing, technical authentication, on-the-spot
investigation and so on to make an industry injury investigation.
Article 25 The questionnaires issued by the MOFCOM to the interested
parties include domestic producer questionnaires, domestic importer
questionnaires, domestic consumer questionnaires, overseas producer
and overseas exporter questionnaires, and other forms of
questionnaires
Article 26 An interested party shall submit answers to the
questionnaires according to the method and time limit as specified
in the questionnaires. If it needs to extend the time limit, it
shall, 7 days prior to the time limit for the submission of answers,
submit a written application to the MOFCOM and make an explanation.
It is for the MOFCOM to decide whether to extend the time limit or
not.
Article 27 The MOFCOM may make on-the-spot investigation to the
interested parties. Prior to the on-the-spot investigation, it shall
notify the relevant interested parties of the major purposes and
content of the examination.
Article 28 The MOFCOM may, on the requirement of the interested
parties or in need of the investigation, upon the approval of the
relevant country (region), consign persons to the country (region)
to conduct investigations on the productive capacity, investments in
expanding production, inventories, place of origin or entrepot, the
link among the enterprises and other information related to the
product.
Article 29 The MOFCOM may require the interested parties to submit
or supplement written materials according to the relevant
provisions, and the interested may offer to submit written materials
to the MOFCOM as well.
Article 30 The MOFCOM may, at the request of an interested party, or
whenever necessary, hold a hearing of industry injury.
Article 31 In the case that an interested party involved in the
industry injury investigation considers it necessary to keep the
materials and the relevant evidence secret, it shall, when
submitting the materials to the MOFCOM, attach a non-confidential
summary of the materials, or submit the confidential text and an
open text of the materials.
The non-confidential summary and open text shall contain reasonable
substantial content of the confidential information. In the absence
of substantial content, the MOFCOM may request the interested party
to supply relevant content and evidential materials.
Article 32 In the case that any interested party involved in the
industry injury investigation fails to provide a non-confidential
summary or an open texts of the materials submitted by it, or fails
to provide good reasons, the MOFCOM may refuse to take the materials
into account. If the MOFCOM does not considers it necessary to keep
the materials submitted by an interested party secret, it might
request the interested party to withdraw its application for secrecy
purposes.

Article 33 In the industry injury investigation, any interested party involved shall faithfully provide the information and offer relevant materials. If any interested party fails to do so, or fails to provide necessary information within a reasonable time limit, or seriously intervene with the investigation by any other means, the MOFCOM may make a ruling based on the facts it has already obtained and the best information available.

Chapter IV. Supplementary Provisions

Article 34 As an interested party involved in the industry injury investigation submits any document or evidential material to the MOFCOM, it shall submit the original Chinese text in quintuplicate accompanied by the corresponding electronic text (computer floppy disks or CDs) in triplicate.

Article 35 Chinese language prescribed by the administrative department of languages of the state is considered as the formal language by the industry injury investigation of the MOFCOM. Any document, materials or information offered by an interested party shall be written in standard Chinese. As for any materials in any other language, a Chinese translation and the original text shall be submitted, and the Chinese version shall prevail. Any materials in any non-prevailing language without attaching a Chinese version shall not be considered as valid and lawful evidential material.

Article 36 The authority to interpret the present Provisions shall remain with the Ministry of Commerce.

Article 37 The present Provisions shall go into effect 30 days after the date of promulgation. At the same time when the present Provisions are implemented, the Provisions on the Antidumping Investigation of Industry Injury and Award (Order No. 45 (2002) of the former State Economic and Trade Commission shall be repealed.

Bright Jon, Attorney-at-law   Fax: +86-512-53516040   email@colaw.cn
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