On August 22, 2022, the Management Executive Committee of the Foreign Trade Commission of the Brazilian Ministry of Economy (GECEX) issued Resolution No. 385 of 2022, which includes synthetic fiber monofilaments originating in China and India, including fineness below 67 decitex. Polyester fiber yarn (other than sewing thread), not put up for retail sale, (Portuguese: fiosde filamentos sintéticos texturizados de poliésteres (exceto linhas para costurar), não acondicionados para venda a retalho, incluindo os monofilamentos sintéticos de título inferior a 67 decitex ) made an affirmative final anti-dumping ruling and decided to impose anti-dumping duties on the products involved in China and India for a period of five years. For details of the taxation, see the attached table (Brazil’s anti-dumping final ruling on China-related polyester fiber yarns). The Mercosur tax numbers of the products involved are 5402.33.10, 5402.33.20 and 5402.33.90. In view of public interest considerations in Brazil, the implementation of the measures has been suspended for one year. This resolution shall take effect from the date of issuance. On March 5, 2021, the Brazilian Foreign Trade Secretariat issued Announcement No. 18 of 2021 in the Official Gazette of the Federal Government, stating that in response to the application of the Brazilian Association of Man-made and Synthetic Fiber Products (Associação Brasileira de Produtos de Fibras Artificiais e Sintéticas (Abrafas)), An anti-dumping investigation has been launched against polyester fiber yarn (except sewing thread) originating in China and India, including synthetic fiber monofilaments with a fineness of less than 67 decitex, not for retail use. On September 30, 2021, the Brazilian Foreign Trade Secretariat issued Announcement No. 64 of 2021 in the Gazette of the Federal Government, stating that it made a preliminary anti-dumping ruling on the case, and initially ruled that the products involved in the above-mentioned countries were dumped and that the dumping caused damage to Brazil’s domestic industry. , but no temporary measures will be taken for the time being. After receiving the early warning information on this case on February 26, 2021, we will send the early warning information to the Trade Remedy Bureau of the Ministry of Commerce and relevant provincial departments. After receiving the official filing announcement of this case, we will promptly report it to the Ministry of Trade Remedy Bureau and notify the provincial departments involved in the case, hold a response coordination meeting, and finally successfully organize Zhejiang Hengyi Petrochemical Co., Ltd., Tongkun Group Co., Ltd. and Zhejiang Xinfengming Eight companies including Import and Export Co., Ltd. launched industry non-injury defense. At 9 pm on November 8, 2021, Beijing time, the Brazilian Trade Protection and Public Interest Bureau (SDCOM) held an anti-dumping investigation hearing on Brazilian polyester textured yarn. Vice President Wang Yu of our association participated in this hearing on behalf of the China Chamber of Commerce for Import and Export of Textiles and issued a defense opinion. In addition, the Economic and Commercial Office of the Chinese Embassy in Brazil and Zhejiang Hengyi Petrochemical Co., Ltd. also participated in this hearing. The final tax rate in this case has dropped compared with the initial ruling. We will continue to track the subsequent development of this case and notify the company in a timely manner.
Attached table: Brazil’s final anti-dumping tax schedule for China-related polyester fiber yarns