Recently, SAINTGOBAINABRASIVES (INC.) and EHWADIAMONDINDUSTRIALCO (LTD.) appealed to the US International Trade Court on the results of the anti-dumping case ruling. The US Court of Appeals for the Federal Circuit made a ruling on July 6 to maintain the original judgment. Supporting the conclusions of the US International Trade Commission's diamond tool companies in China and South Korea that pose a threat to the US diamond saw blade manufacturing industry.
With the end of the litigation process surrounding the threat of substantial damage, Boss Tools' US importers in the United States will continue to pay customs deposits for imported diamond circular saw blades and component products.
According to the data released by Boshen Tools, Boshen American Co., Ltd. (hereinafter referred to as “Boshen USAâ€), a wholly-owned subsidiary of the company, paid a tariff deposit of US$227,883.90 in November-December 2009, in the first half of 2010. The customs deposit paid is US$917,219.78. The reverse price of 35.51% can be used to obtain the export value of Boshen Tools to the United States during the above two periods: 641,475.71 USD for November-December 2009 and USD 2,582,990.09 for the first half of this year. Based on the average monthly export volume, it is found that the company’s exports to the US and the US in 2010 have increased by 34% compared with last year.
Tariff deposits become a double-edged sword
Under normal circumstances, the product is subject to anti-dumping duties, which is not good news for exporting enterprises, because the increase in importer costs caused by anti-dumping duties will be reflected in the increase in the selling price of the importing country, which will adversely affect the sales volume.
Why is the export of Boshen's tools to the US against the market?
The person in charge of the Boshen tool interviewed by the "Securities Daily" reporter said that the company had fully considered the factors of the anti-dumping tariff guarantee imposed by the US Customs when formulating the 2010 annual business plan, and therefore made adjustments to the US export structure, focusing more on Exported products that were not included in the anti-dumping investigation.
The more important factor driving sales growth is that the case is still in the preliminary stage, 35.51% is only the temporary tariff rate imposed on importers, and the US Department of Commerce will determine the anti-dumping tax rate in the November 2010 annual review. If the US Department of Commerce finalizes the anti-dumping tax rate higher than the current 35.51%, the importer will have to pay the difference between the two, which brings uncertain risks to the future operation of the importer.
However, if the importer chooses to purchase from Boshen, a wholly-owned subsidiary of Boshen Tools, although Boshen’s sales price in the United States is boosted by tariff guarantees, the importer can transfer the risk of being charged with anti-dumping duties. Give Boshen the United States, thus stabilizing operating costs. Driven by the ambiguity of the two evils, a large number of importers who originally purchased directly from China and South Korea turned to local procurement and placed orders in the United States.
Selective acceptance of customers
For reviewing the rainy day
The person in charge told reporters that the annual review of the US Department of Commerce, which will begin in November, will further consider whether the company's sales price is lower than the cost price. Therefore, although the number of customers who want to enter into contracts with the company is increasing day by day, the company's choice of customers is quite prudent. Some customers have lower quotations, which have left a profit margin for the company. However, the company's current attitude is to reject orders from these customers in order to maintain a high sales price and strive for an optimistic result for the review.
When the reporter asked about the expected results of the November review, the person in charge said: As early as 2006, the US International Trade Commission had concluded that the diamond saw blades of China and South Korea did not cause substantial damage to the US domestic industry; In 2007, the prosecution filed a supplementary complaint with the International Trade Commission through the judicial process, and the case continued. Years of tug-of-war, the company has accumulated rich experience in anti-dumping response, the company has also hired a team of lawyers including Chinese and American lawyers, in order to determine a lower anti-dumping tax rate or even zero tax rate in the review.
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