DeHeng Help XINYI SOLAR Win the Anti-dumping
Investigation Initiated by Indian Authority
2019-1-24
On the basis of complete petition submitted by M/s Gujarat Borosil Limited (hereinafter also referred to as the Petitioner or Applicant), the Directorate General of Trade Remedies (hereinafter also referred to as the DGTR or the Authority), Ministry of Commerce and Industry, India, initiated an anti-dumping investigation against solar glass originating in or exported from Malaysia in February 2018. DeHeng Law Offices (hereinafter also referred to as DeHeng) was appointed by XINYI SOLAR Holdings Ltd. (hereinafter also referred to as XINYI SOLAR Group) to represent its subsidiary XINYI SOLAR (Malaysia) Sdn. Bhd. (hereinafter also referred to as XINYI (Malaysia)) in the investigation. On January 17, 2019, the Authority published the final finding notification in which XINYI (Malaysia)'s exports were evaluated as non-dumped and hence shall not be liable for an anti-dumping measure. However, for the non-cooperating producers/exporters, the Authority recommended imposition of definitive anti-dumping duty of $114.58/MT for five years.
In fact, this is not the first time that DeHeng Law Offices has represented XINYI SOLAR Group in trade remedy investigations. Back in June 2016, the Indian Authority initiated an anti-dumping investigation concerning imports of solar glass originated in or exported from China. With the assistance of DeHeng, XINYI PV Products (Anhui) Holdings Co., Ltd. (XINYI (Anhui)), another subsidiary of XINYI SOLAR Group, actively cooperated with the Authority in the investigation and finally obtained minimum duty rate. It is also worth mentioning that earlier 2013, DeHeng represented XINYI (Anhui) in the anti-dumping, countervailing and anti-absorption investigations successively initiated by EU against solar glass originated in or exported from China, and sued the European Commission to the European Court of Justice for refusing to give Chinese enterprises the market economy treatment. XINYI (Anhui)'s claims were upheld in the first instance and the retrial upon the European Commission’s appeal is still ongoing. Following the anti-dumping measures against China taken by the Indian and the EU Authorities, XINYI SOLAR Group took DeHeng's advice and decided to exploit Malaysian Market by adding new solar glass production lines to hedge risks. It also explains why the Indian Authority targeted at XINYI (Malaysia) and initiated the instant investigation.
Listed on the main board of the Hong Kong Stock Exchange in 2013, XINYI SOLAR Group is a global leading manufacturer of solar glass. Currently it has three solar glass production bases with a daily production capacity of 6,800 tons, accounting for nearly 30% of the global market share. Upon entrustment by XINYI SOLAR Group, DeHeng quickly mapped out an overall response scheme for XINYI (Malaysia) at the very beginning of the investigation. The company’s sound financial management system and highly competent staff, coupled with DeHeng's well-crafted defense strategy, refuted the Applicant's groundless accusations, and ultimately won zero duty rate for XINYI (Malaysia).
In terms of dumping defense, DeHeng lawyers made full use of the advantages of Malaysia's market economy status and assisted XINYI (Malaysia) in preparation of the Exporter's Questionnaire Response as well as supporting documents so as to ensure that the normal value should be constructed in an accurate, fair and impartial manner. Especially, the DGTR decided not to procced to XINYI (Malaysia)'s premises to do on-site verification but carried out "table verification" instead. Unable to communication instantly with the Officers, DeHeng had to be very precise with the timely response as well as the completeness of evidence.
In terms of injury defense, by pointing out deficiencies in the economic parameters submitted by the Petitioner, DeHeng proved that the performance of Indian Domestic Industry has been overall improved during the POI and the injury period. On behalf of XINYI (Malaysia), the lawyers further submitted that Gujarat Borosil Limited, as the sole manufacturer of solar glass on Indian market, preferred exports over domestic supply in order to gain more revenue, which aggravated its inadequacy to meet the demand of the home market. In the name of trade remedies, the Applicant's real attempt was to achieve trade protectionism.
Following thorough investigation, the Authority ruled that India's domestic industry did suffer certain material injury, but the injury was due to various factors including imports of subject goods from Malaysia. As XINYI (Malaysia) was not found to be dumping, only the residual category of producers/exporters were recommended for levy of anti-dumping duty.
Remarks:
REN Yongzhong, Partner of Beijing DeHeng Law Offices, held the following points shall be paid attention to in response to anti-dumping investigation: 1) Be well familiar with the Client's situation, especially the corporate affiliations; 2) Be no less serious with the "table verification" than on-site verification; 3) Be rather cooperative with both lawyers and the Authority.
