At present, the DECOM of Ministry of Development, Industry and Foreign Commerce of Brazil published an announcement that the anti dumping investigation of the coated steel plate/coil imported from China is settled with zero tax rate, which meant WISCO won the anti dumping lawsuit lasting for one and a half years of coated steel plate/coil against Brazil. It cut punitive tax of USD 14 million for WISCO, which equals to CNY 90 million.
In April 2011, the Ministry of Development Industry and Foreign Commerce of Brazil published an announcement to initiate an anti-dumping investigation on the coated steel plate/coils imported from China during 2010. In that year, China exported USD 300 million coated steel products to Brazilian market, among which USD 45.93 million galvanized steel products are from WISCO and USD 5.69 million galvanized steel products are from Echeng Steel. The China Iron and Steel Association decided that WISCO shall take the lead in responding to the anti dumping lawsuit, Baosteel, Anshan Steel, Handan Steel and Tangshan Steel shall cooperate and give assistance, for WISCO had exported largest amount in both quantity and price among all the Chinese steel companies.
During the investigation, the Brazilian investigation department made a calculation on the normal value of the WISCO coated steel products based on the data of Korean companies, the result of which is 30% higher than the export price of WISCO. WISCO will face a high tax rate for anti dumping if they fail in responding to the anti-dumping lawsuit.
In order to win the lawsuit, WISCO set up a working group for anti-dumping and engaged powerful law firm famous for responding to anti-dumping lawsuit as their agent. Meanwhile, WISCO cooperated with other steel companies in communicating with the Ministry of Foreign Affairs and the Ministry of Commerce and appealed to Government for support. During the investigation, WISCO submitted the investigation questionnaire and other documents within 2 months as required, which provided accurate and reliable evidence for the defence.
The anti dumping lawsuit of coated steel product is settled with zero tax rate, which provides a good opportunity for WISCO to further develop the market in South America and expand exportation of steel products. In the meantime, WISCO has also consolidated its position in the iron and steel industry and set a great example for Chinese companies to cope with trading lawsuits against other countries.