Countervailing Investigation against Imports of Australia Barley Originating

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The Ministry of Commerce of the People’s Republic of China (hereinafter referred to as the “MOFCOM” or the “Ministry of Commerce”) received, on October 29, 2018, a written petition for countervailing investigation formally submitted by China Chamber of International Commerce (hereinafter referred to as “the Applicant”) on behalf of domestic barley industry, in which the Applicant requested a countervailing investigation to be conducted against imports of barley originating in Australia. According to Article 16 of the Countervailing Regulations of the People’s Republic of China, on November 26, 2018, the MOFCOM invited the Australian government for discussion on matters related to the countervailing investigation and negotiated with the Australian government on December 18.

In accordance with relevant provisions of the Countervailing Regulations of the People’s Republic of China, the MOFCOM conducted an investigation into the qualification of the Applicant, relevant situations of the products in question and the products of the same kind in China, impact of the imported products on domestic industry and the relevant situations of countries (regions) involved.

According to the evidence provided by the Applicant and the preliminary review of the MOFCOM, the annual average output of barley represented by the Applicant in 2014, 2015, 2016 and 2017 accounts for major part of that of the same kind in China for the same period, and therefore the provisions of Article 11 and Article 13 of the Countervailing Regulations of the People’s Republic of China on applying by domestic industry for countervailing investigation are met.

The application submitted states that the Australian government has been granting subsidy to the Product under Investigation, and barley industry (enterprises) in Australia may be subject to a total of 32 subsidies. In the meanwhile, it is claimed in the petition, that the products entering into Chinese market soar with price significantly going down, and therefore bring damages to domestic industry. Moreover, there are causal links between the subsidy of the underlying products and the injuries suffered by the domestic industry. Upon review, the MOFCOM believes that the petition contains the contents and relevant evidence as required in Article 14 and Article 15 of the Countervailing Regulations of the People’s Republic of China.

As per the above-mentioned results, the MOFCOM decides, according to Article 16 of the Countervailing Regulations of the People’s Republic of China, to file a countervailing investigation against imports of barley originating in Australia as of December 21, 2018.Relevant matters are hereby announced as follows:

I. Filing of Investigation and Investigation Period

As of the date hereof, the MOFCOM conducts countervailing investigations against imports of barley originating in Australia within an investigation period from October 1, 2017 to September 30, 2018, and the investigation period of industry injury is from January 1, 2014 to September 30, 2018.

II. Products under Investigation and Scope of Investigation

Scope of investigation: imports of barley originating in Australia
Name of the Products under Investigation: 大麦
English name: Barley

Main purposes: barley is a cereal crop, which is a gramineae or barley genus. It is mainly used in the production of wine, feed, etc., and can also be used as a seed, and is consumed by consumers directly or through processing.

The product is listed under tariff number of 10031000 and 10039000 in the Customs Import and Export Tariff of the People’s Republic of China.

III. Countervailing Investigation

In the application submitted, the Applicant claimed that the Australian government provided a total of 32 subsidies to barley industry in Australia. After preliminary review and considering the claims submitted by the Australian government before the filing of the case, the MOFCOM decided to investigate the following subsidies:

1. Sustainable water and infrastructure project for rural areas
2. Federal agricultural efficient irrigation promotion project
3. Three-year tax deduction on water supply facilities for primary producers
4. Infrastructure related to water resources and pest management 
5. The future of clean energy – creating opportunities on land – benefits of the expansion of carbon agriculture initiative
6. Pest and weed management in arid areas
7. Farm risk management project
8. Drought concessional loan scheme
9. Drought assistance – professional advice and planning grants
10. Farm economic projects development
11. Brand Australia global food strategy
12. Australian product upgrading plan
13. National promotion and consultation
14. Package program for funding for small exporters
15. Agricultural advanced assistance
16. Farm cooperatives and cooperation pilots
17. Farm preparation plan
18. Interest rate subsidies in special circumstances 
19. Finance concessional loan for farms
20. Sustainability fund for South Australia valley areas
21. South Australia Murray river sustainability program – irrigation efficiency improvement program
22. Adelaide food program, South Australia
23. Industry development and promotion in South Australia
24. Victoria NVIRP 2 farm project
25. Financial aid for productivity improvement of Victoria farms
26. Victorian agricultural infrastructure and employment fund
27. Victoria first farm financial aid
28. Tax exemptions and concessions for young Victorian farmers
29. Financing plans for young Victorian farmers
30. Drought recovery concessional loan scheme
31. Efficient irrigation support program in Tasmania
32. Tasmania agricultural concessional loan program

IV. Registration for Participating in the Investigation

Any interested party and governments of related countries (regions) may register with the Trade Remedy and Investigation Bureau of the Ministry of Commerce for participating in this round of countervailing investigation within 20 days after the date of release hereof. Interested parties and governments of related countries (regions) participating in the investigation are required to provide basic identity information, quantity and amount of the products under investigation exported to or importing from China, quantity and amount of similar products produced and sold and relationship and other illustrative materials based on the Reference Format of the Registration to Participate in the Investigation, which can be downloaded from the related website (URL attached, the same below).

For the purposes hereof, the interested parties are individuals and organizations as defined in Article 19 of the Countervailing Regulations of the People’s Republic of China.

V. Access to Public Information

The interested parties and governments of the related countries (regions) can download the unclassified text of the application submitted by the applicants through the relevant websites, or search, read, transcribe and copy the same in the MOFCOM Trade Relief Public Information Office (Tel.: 0086-10-65197878).In the process of investigation, the interested parties and governments of related countries (regions) can refer to public information about the case through the relevant websites, or search, read, transcribe and copy the same in the MOFCOM Trade Relief Public Information Office.

VI. Comments

If any interested party or government of related countries (regions) has any comments on the product scope, qualification of the Applicant, countries (regions) covered by the investigation regarding this investigation and other related questions, it may submit its opinions in written form to Trade Remedy and Investigation Bureau of the Ministry of Commerce within 20 days after the date of release hereof.

VII. Investigation Methods

In accordance with Article 20 of the Countervailing Regulations of the People’s Republic of China, the MOFCOM may get to know the related situation and conduct investigation via questionnaire, sampling, hearing, site investigation and other manners from the interested parties and governments of related countries (regions).

In order to obtain the information required for the investigation of this case, the MOFCOM usually issues questionnaires within 10 working days from the deadline for registering for participating in the investigation as prescribed herein, to overseas importers or producers, domestic manufacturers and importers and governments of related countries (regions) set forth in the application. Interested parties and governments of the related countries (regions) registered can download the questionnaire from the related websites.

The Questionnaire for the Foreign Exporters or Producers for Barley Countervailing Case includes information on the company’s structure and operations, affiliates, production costs, sales, etc., as well as details on each specific subsidy covered by the investigation. The information inquired in the Questionnaire for Domestic Producers of the Barley Countervailing Case includes the basic information of the company, details of the domestic products of the same kind, operation and relevant information, financial and relevant information as well as other issues required to be stated. The information inquired in the Questionnaire for Domestic Importers of the Barley Countervailing Case includes the basic information of the company, the trading information of the products under investigation and relevant information. The Questionnaire for Governments for Barley Countervailing Case includes information on the Products under Investigation, industry, management structure and policies, etc., as well as details on each specific subsidy covered by the investigation.

Other interested parties and governments of related countries (regions) that do not register for participating in the investigation can download the questionnaire from the related websites, or obtain the same from the Trade Remedy and Investigation Bureau of the Ministry of Commerce and fill in the same as required.

All interested parties and governments of related countries (regions) are required to submit complete and accurate answers within the time specified. Answers shall include all the information as required by the questionnaires.

VIII. Submission and Processing of Confidential Information

Where it is necessary to keep confidential the information submitted by the interested parties and governments of related countries (regions) to the MOFCOM, they may request the MOFCOM to make confidential treatments and explain the reasons. If the MOFCOM agrees on their request, the interested parties and governments of related countries (regions) applying for confidentiality shall provide non-confidential summary of the confidential information at the same time. Non-confidential summary shall contain sufficient and meaningful information to enable other interested parties to have a reasonable understanding of the confidential information. If the non-confidential summary cannot be provided, reasons shall be made clear. If the interested parties or governments of related countries (regions) do not require for confidential treatment for the information they have submitted, the MOFCOM will consider the said information as public information.

IX. Consequences of Non-cooperation

In accordance with Article 21 of the Countervailing Regulations of the People’s Republic of China, when the MOFCOM makes an investigation, an interested party and government of related countries (regions) shall faithfully reflect situations and provide relevant materials. If an interested party or government of related countries (regions) fails to do so, fails to provide necessary information within a reasonable time, or seriously impedes an investigation in any other way, the MOFCOM may give a ruling according to facts already obtained.

X. Investigation Period

This investigation starts on December 21, 2018, and usually ends prior to December 21, 2019; however, the investigation can be extended to June 21, 2020 under special circumstances.

XI. Contact Information

Address: No.2 Dong Chang’an Avenue, Beijing, China
Postal code: 100731
Trade Remedy and Investigation Bureau of the Ministry of Commerce
Tel.: 0086-10-85093415; 65198417
Fax: 0086-10-65198415; 65198172
Related websites: the Trade Remedy and Investigation Bureau sub-website of the MOFCOM website (http://trb.mofcom.gov.cn).
China Trade Remedy Information Network (http://cacs.mofcom.gov.cn)

Regulation Source: Ministry of Commerce People’s Republic of China