On August 8, 2013, Henan Golden Dragon Precise Copper Tube Group (Golden Dragon) held a press conference and announced the final review ruling made by the U.S. Department of Commerce on August 6. According to the ruling, the anti-dumping duty on the seamless refined copper pipe and tube imported from the Golden Dragon and its Mexican subsidiary would be 0.00%, which marked the Golden Dragon's final victory in the four-year battle.

Li Changjie, president of the Golden Dragon, told to the CIP  News journalist that the Golden Dragon, relying on patents and technologies, made an active response to the investigation and finally won it.

An active response

The case dates back to four years ago. On September 30, 2009, four U.S. copper tube manufacturers asked the U.S. International Trade Commission and the Department of Commerce to start anti-dumping investigations on four kinds of seamless refined copper pipe and tube imported from China as well as Mexico, and impose 60.6% anti-dumping duties on them.

At that time, about 50% of Golden Dragon's export products are exported to the U.S. The Board of Golden Dragon immediately set up a team and hired U.S. experienced lawyers and experts to face the investigation.

On May 6, 2010, the U.S. Department of Commerce announced its preliminary determinations in the anti-dumping duty investigations. Zhejiang Naile Copper Co., Ltd. as well as Zhejiang Hailiang Co., Ltd. received preliminary dumping rates of 34.48% and 58.69% respectively, the Golden Dragon received a rate of 10.26% from 60.6%, and all other Chinese exporters received that of 60.5%. To Li Changjie, the ruling was unfair. He explained that it was unfair because the U.S. calculated the manufacturing costs of the Golden Dragon according to that of India.

Full of confidence

Shortly after the ruling, the U.S. air conditioner makers became restless because the Golden Dragon began to stop the supply. The Golden Dragon was brave enough to do this was because it had mastered the core technology of high-quality refrigeration copper tube. Once the supply is stopped, many U.S. companies probably have to shut down.

The efficient heat-transfer threaded pipe that the Golden Dragon developed independently has minimized the volume of air conditioners by 25%, increased the energy efficiency by 15%, reduced the use of the copper pipe by 20% since 2000. Based on the technology, the Golden Dragon has possessed 98 Chinese patents, made six national standards, and formed the standard system of refined copper tube in the world. What is more, Haier, York, Samsung, Sharp and other well-known enterprises have established long-term partnerships with the Golden Dragon.

The Golden Dragon's persistence made the U.S. air conditioner manufacturers upset. On October 21, 2010, Li Changjie received a letter from the vice president of GOODMAN, a well-known U.S. air conditioner maker. The letter said that GOODMAN would continue to purchase the Golden Dragon's products, and would like to pay the $10 million anti-dumping margin to the U.S. Customs with several other U.S. air conditioner manufacturers.

A final victory

In February, 2012, the Golden Dragon applied to the U.S. Department of Commerce for an administrative review. On September 20, 2012, the U.S. Department of Commerce announced the final determinations: the duty imposed on the Golden Dragon's subsidiary in Mexico fell from 29.52% to 5.53%. Encouraged by this, the Golden Dragon continued to lodge complaints to the U.S. Department of Commerce.

In June, 2013, the U.S. Department of Commerce made its final ruling that the anti-dumping duty on the imports from the Golden Dragon and its Mexican subsidiary would be 0.00%. Meanwhile, it would refund the anti-dumping duties that the Golden Dragon and its subsidiary had paid. Accordingly, the investigation ends with the Golden Dragon's final victory.

"It is not so terrible to encounter difficulties for an enterprise. The key is to make preparations to master the core technology and possess IPRs such as patents and trademarks. Only in this way, can an enterprise overcome numerous challenges and be powerful on the way to internationalization," Li Changjie said confidently.

(China IP News)