In a preliminary ruling on the Fuyao Glass Industry Group
anti-dumping case, the US Department of Commerce (DOC) set the
dumping rate for Fuyao at 0.13 percent.
In February 2003, the DOC imposed anti-dumping duties of 11.8
percent on Fuyao's shipments of automotive replacement windshields
to the US. The US Court of International Trade in New York asked
the DOC to remand the case for a new ruling last December.
The impact of the 0.13-percent rate can be ignored, say trade
experts.
Companies are not required to pay a cash deposit if the rate is
less than 0.5 percent.
The final ruling is expected in September and no major changes
are expected.
Su Qing, an analyst from Merchant Securities, said the ruling
will have a very positive impact on Fuyao's overseas business. "The
ruling will cut Fuyao's export costs and give it a big advantage
over its domestic counterparts."
Other domestic companies involved in the case had anti-dumping
duties higher than the 3 percent imposed.
Fuyao, listed on the Shanghai Stock Exchange, is a blue-chip
company, according to Su.
Fuyao President Cao Dewang said the case did not affect his
company's operations. "Because of the case, many auto makers placed
orders directly with us, rather than with the auto parts makers
only," he said.
The company reported revenues of 433 million yuan (US$52.3
million) in the first quarter, a rise of 48.6 percent year-on-year.
Net profit surged 48.0 percent to 76.8 million yuan (US$9.3
million).
Fuyao recorded a 54.0-percent jump in revenue last year, to 1.7
billion yuan (US$209.0 million). Net profit soared 74.0 percent, to
321 million yuan (US$38.8 million), in the same period.
The government has set a target for the nation's automobile and
components exports to reach US$15 to 20 billion next year, climbing
to US$70 to 100 billion by 2010.
A lawyer from the Beijing Junhe Law Firm said the win by Fuyao
could set a good precedent for Chinese companies. "Points in the
Fuyao case will be quoted by many Chinese companies as proof when
they are facing anti-dumping charges."
Fuyao also established a model for Chinese companies dealing
with increasing trade disputes, he said.
Fuyao Group and its US subsidiary, Greenville Glass Industries,
appealed on April 10 last year to the US Court of International
Trade in New York. The federal court specializes in appeals against
DOC anti-dumping decisions.
"We believed that right was on our side, so we spent a lot of
money to prove it," Cao said. The Fuyao Group spent US$3 million
presenting its case.
Fuyao also won an anti-dumping case in Canada in September last
year.
The Canadian International Trade Tribunal's final determination
was that the Fuyao Group had caused no injury to Canada's industry.
The decision meant that a weighted average tariff rate of 24.1
percent previously imposed on it by the Canada Customs and Revenue
Agency was nullified.
(China Daily May 12, 2004)