"The road to China's tire exports to the United States has been sealed!"

The U.S. Department of Commerce recently issued a “double anti-tax” tax on Chinese passenger car and light truck tires. The industry’s interpretation of tire “double reverse” continues to deepen, and similar pessimistic sounds appear more and more frequently. As the largest export destination for Chinese tires, the US market really has to be completely abandoned. Is there no chance for Chinese tire exports?

Recently, Yang Yanchen, a Chinese lawyer who learned from the US “double reverse” case, was informed: “Even if China loses, Chinese tire companies still have the opportunity to return to the US market in recent years.”

"Margin" may be refunded

If the U.S. government will refund the money after it is returned, it is estimated that no one will believe it, but lawyers say this is possible.

"All countries in the world, including China, each country's "double anti-" costs are called taxes, only the United States called the deposit." Yang Chen told the tire world network, the reason is the margin rather than taxes, because the United States in the implementation of It is an annual administrative review system.

It is understood that the United States conducts a review of its taxable products every year. As far as the “double reaction” to China’s tires is concerned, according to the timeline, the United States will begin its first annual administrative review in July or August next year. There are two main functions of the annual review: first, determine how much of the company’s paid deposit should be converted into “double reverse” taxes; second, determine the percentage of margin required for the company to pay in the next year.

It is reported that in the issue of margin taxation, different standards are also implemented at different stages. During the “double reverse” investigation stage (prior to the publication date of the initial rate to the date of the finalization of the rate of taxation), the deposit paid after the first annual administrative review adopts the principle of “multiple return, less pay, and no compensation;” and the deposit paid after the final award is After the annual review, the principle of "multiple return and less compensation" was adopted.

By this time next year, some companies may have already received money from Americans.

There are "opportunities" for a well-prepared company

It is understood that during the initial investigation of the case, anti-dumping deposits were bundled, and exporters and manufacturers corresponded one by one. After the annual administrative review, the tax rate is no longer bundled, and traders and exporters do not need to bundle the manufacturers.

Yang Chen stated that if an export company is a trader, the tax rate is already zero when the annual administrative review is conducted, and it can purchase the goods of any one manufacturer.

In addition, the annual review no longer conducts investigations of damage to the U.S. industry. Only dumping and subsidy investigations are conducted to determine the extent of dumping and the extent of subsidies for manufacturers. By then, each company needs to participate in its own defense, rather than by compelling responding companies to get the corresponding tax rate.

“This is a very important part! If the respondent does not respond well to the original survey, he may consider returning to the US market through the annual administrative review.” Yang Chen reminded that at this time, the company can do a good job of preparation and calculation. How much of the deposit paid for export goods in the past should be converted into taxes, how much deposit should be paid for future export goods, and the opportunity for annual reexamination should be used to initiate an active appeal.

The reporter observed that the difference in the margin ratio of the “double counter” responding companies was not too great. The main reason for this is that the investigation at this stage is an “encounter”. Most companies are not ready for the project. Temporary responses and time constraints are required. The survey content is sales in the past half year or one year. Data cannot be adjusted. There are cases of passive response.

The time to the annual administrative review is different. During this time, the company has time to make some adjustments, including price adjustments, sales model changes, and so on. In addition, companies can also do a lot of work in terms of cost control.

Avoiding anti-dumping is a "digital game"

Due to the fierce competition in the homogeneity of Chinese tire manufacturing companies, the gap in production costs among various companies is small. However, in Yang Chen’s view, there is another hole in the sky, and even to a certain extent, anti-dumping and evading anti-dumping are sometimes “digital games”.

“Under normal circumstances, there will not be much difference in the production cost of many products. However, if you put it in anti-dumping investigations, the gap will be very large,” he said.

The reporter learned of a typical anti-dumping case. In an anti-dumping investigation, the two companies involved were all in Shandong Province and the products they produced were xanthan gum (MSG upstream product). The production processes of the two companies are exactly the same and all are made from corn fermentation. There are no actual differences in the costs of materials, procurement, and transportation. But the final result is that the dumping margin of a company is 12%, another company is 128% without penalties, and the industry-wide average tax rate is 70%.

This result, so that the above-mentioned first enterprise earned "full of overflowing." Because the raw material industry is rather special, the US market is in short supply. Only two or three companies in China have exported to the United States, and the final export price has sharply increased by 60%.

Yang Chen analysis said that in the anti-dumping response process, if Chinese tire companies can properly adjust the coping method, coupled with the improvement of production technology and cost control, it is not impossible to use the annual review to return to the United States.

From this perspective, the road to China's tire exports to the United States may not have all been sealed.

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