Review: Korean ceramic anti-dumping final ruling will be announced

Recently, media reported that the average tariff imposed by South Korea on anti-dumping duties imposed on Chinese ceramic tiles increased from 2.76% to 29.4%. According to informed sources, the news was not accurate enough. It is expected that the South Korean official will announce the final result today, and the South Korean Trade Commission’s proposal put forward that in the next five years, separate collection tariffs ranging from 2.76% to 29.41% will be imposed on 12 ceramic tile companies participating in the survey in the next five years, while others are not Sampled companies will be charged an average tax rate of 13.33%.

Anti-dumping tariffs have a ladder system

The Korean Trade Commission (KTC) said on the 18th that it will submit a proposal to the Ministry of Finance and Economics to impose anti-dumping duties of 2.76% to 29.41% on 12 Chinese tile companies in the next five years.

This is based on the decision made by the four companies of Datong Industries in South Korea in April this year to apply to the Trade Commission. The Trade Commission stated that last year, the export volume of ceramic tile from Chinese enterprises increased by 380% compared with 2001, and the market share in the Korean market reached 39.5%, which is believed to cause substantial damage to Korean related industries.

Among the ceramic companies involved, the minimum tax rate for companies responding or actively responding is 2.76%, with a maximum of 7.49%. Other non-sampling enterprises enjoy an average tax rate of 13.33%. Enterprises that have been named but have not participated in the case are named The high tax rate of 29.41% was adopted.

The average final tax rate is reduced by half

In late June last year, the Korean Trade Commission launched an anti-dumping investigation on Chinese exports of Korean tiles, and nine domestic ceramic companies were sampled.

At the end of last year, the Korean Trade Commission made preliminary damages to ceramic tile imported from China, levied a temporary tariff of 7.25% to 37.4% on the companies involved, and enjoyed a weighted average tariff of 27.92% on other companies, in addition to spot checks that did not send questionnaires. Enterprises and enterprises that have not filed suit have been subject to a punitive tariff of 37.4%.

Informed sources disclosed that the final Korean ruling will be announced today. The result is likely to be the same as the proposal made by the Korea Trade Commission in recent days.

According to the Korean Trade Commission's proposal, anti-dumping duties have declined from the preliminary results, for example, the weighted average tax rate has dropped by about 52%. Foshan Haohong Ceramics, Eagle Brand Holdings, Nanhai Hongtao, Shuangxi Ceramics, Xinzhongyuan, Hemei Ceramics, Xinzhongwei, and Jinbaitao enjoyed lower anti-dumping tariffs than the preliminary ones, which were 2.76%, 3.51%, and 3.97 respectively. %, 4.21%, 4.64%, 7.21%, 7.21%, 7.49%, of which Haohong Ceramics obtained the lowest tax rate.

All parties react

Ceramic Industry Association Foshan Office

It is difficult to export Korea under the average tax rate

With the joint efforts of the relevant departments and industry associations and enterprises, this anti-dumping case was more satisfactory than the initial one. However, the director of the Blue Guards of the China Ceramics Industry Association’s Foshan office still said with concern that the 13.33% anti-dumping duty rate meant for some ceramic companies that exports to South Korea are basically unprofitable.

According to reports, there are more than 300 ceramic companies involved in Foshan, and most companies enjoy a weighted average tax rate of 13.33%, and only a small number of companies enjoy lower individual tax rates. For some SMEs, the tax rate of 13.33% is basically not profitable, which may cause some companies to withdraw from the Korean market.

The Director of the Blue Guard suggested that an effective way for companies to absorb the anti-dumping tax rate is to strengthen technological innovation, produce high value-added export products, and expand market share through differentiated competition.

Hao Hong ceramics tax rate is 2.76%

The minimum tax rate comes from the standard operation

"Although raw materials are now rising and the exchange rate adjustments have been made, our foreign orders have not decreased," said Yan Yizhong, an exporter at Nanhai Haohong Ceramics Co., Ltd. In the next five years, Korea will impose anti-dumping tariffs of 2.76% to 29.41% on Chinese ceramic tile companies. Among them, Hao Hong enjoys the lowest tax rate.

In general, extensive management of the ceramic industry is a common problem in which factory managers are often mobilized and original data are difficult to preserve. Even a powerful company can hardly make it easy to register and summarize the original data of each day. However, seemingly casual efforts have helped the company. This time, they explained the relationship between product cost and sales price through a certain stage of complete source data, and added efforts to obtain the lowest tax rate. "So, in the face of anti-dumping, companies must have a positive attitude to deal with and have targeted and prepared relevant materials."

“Some irregular operations actually add moisture to the customs records.” Mr. Yan pointed out that some companies have to reduce their tariffs in order to meet the needs of customers. Obviously, they are polished tiles but they have indicated on the documents that they are glazed tiles.

Even the CNF price per square metre of bricks sold in Saudi Arabia in the Middle East is written at 1.8 dollars. At a glance, it is known that it is lower than domestic production costs. After the final results of the Korean ceramic anti-dumping case came out, different companies could realize different tariffs, which would prevent companies from vicious competition when they go out. This is a good thing.

With regard to the different tax rates obtained by other ceramic companies, he believes that due to the increase in import tariffs, the burden will increase, affecting their respective foreign market development.

However, for Hao Hong, this is undoubtedly a great good news. In the next five years, the Korean market will give them a green light.

The new source tax rate is 4.64%

Full shift to high-end production

"Our products do not have anti-dumping at all." Xinzhongyuan has now become the world's largest producer of architectural ceramics. Zheng Like, assistant to its general manager, told reporters that at the end of last year, the company had completed the adjustment of its product structure and shifted its focus from high-end to high-end. The production and sales of products are promoted in many major cities around the world. The purpose is to change from past OEM sales to production and sales of independent brands.

In the next five years, they will be required to impose a tariff of 4.64% on the tiles exported to South Korea. Zheng ** thinks this has no effect on company sales.

Baitao Group tax rate is 7.49%

Our tax rate should be lower

After knowing that his company obtained a tax rate of 7.49%, the person in charge of the Baita Group Holding Company could not tell the disappointment. Because this is a little more than 5% of what he originally envisaged.

It is understood that the company has established trade relations with South Korea from around 1995, and has established a relatively good business relationship with South Korean dealers in the past decade. He also had experience in dealing with anti-dumping in India.

After knowing that the preliminary result was 27.92% at the end of last year, they have been collecting information continuously. They said they would continue to communicate with South Korea and hope to reduce the tax rate to less than 5%.