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In accordance with the Regulations of the People's Republic of China on Safeguard Measures (hereinafter referred to as the Regulations on Safeguard Measures), the Ministry of Commerce (hereinafter referred to as the Investigation Authority) released Announcement No. 46 [2016] of the Ministry of Commerce on September 22, 2016, deciding to conduct a safeguard measure investigation into the imported sugar product (hereinafter referred to as the Investigated Product).

The Investigation Authority has investigated whether the quantity of the imported Investigated Product has increased, whether the increase has caused any damage to the domestic industry and the extent of the damage (if any), the causal relationship between the increase in the quantity of the imported product and the damage.

Now the investigation into the case is over. In accordance with Article 20 of the Regulations on Safeguard Measures, the Investigation Authority has made a ruling (See Appendix 1). Now the relevant matters are hereby announced as follows:

1. Ruling

The Investigation Authority has ruled that the increase in the quantity of the imported sugar has caused serious damage to the Chinese sugar industry and there was causal relationship between the increase in the quantity of the imported product and the serious damage.

2. Implementation of the Safeguard Measures

In accordance with Article 20 of the Regulations on Safeguard Measures, the Ministry of Commerce has proposed to the Customs Tariff Commission of the State Council that the safeguard measures should be implemented and the Customs Tariff Commission of the State Council has decided to implement the safeguard measures against the imported sugar as of May 22, 2017.

The Investigated Product is described in detail as follows:

Name of the Investigated Product: sugar.

English name: sugar.

Specific description: All the sweet crystalline or powdered substance mainly consisting of sucrose (molecular formula: C12H22O11) is called sugar, including raw sugar and finished sugar. Raw sugar, also called coarse sugar, is the raw material sugar obtained when sugarcanes or sugar beets are processed as the raw materials, which is not directly edible or used as an additive. Finished sugar is all kinds of sugar obtained when sugarcanes, sugar beets or raw sugar is processed as the raw material, which is directly edible or used as an additive, such as white granulated sugar, brown granulated sugar, soft sugar and brown sugar.

The product is listed under the tariff numbers of 17011200, 17011300, 17011400, 17019100, 17019910, 17019920 and 17019990 in the Customs Import and Export Tariff of the People's Republic of China (17011300 and 17011400 are listed under 17011100 in the Customs Import and Export Tariff of the People's Republic of China (2011 version)).

The method of imposing the safeguard measure tariff on the imported sugar beyond the tariff quota is applied for the safeguard measures. The implementation period will be three years, from May 22, 2017 to May 21, 2020. The measures will gradually become looser and looser in the implementation period. In the period from May 22, 2017 to May 21, 2018, the customs tariff for the safeguard measures is 45%; in the period from May 22, 2018 to May 21, 2019, the customs tariff for the safeguard measures is 40%; and in the period from May 22, 2019 to May 21, 2020, the customs tariff for the safeguard measures is 35%.

3. Method of Imposing Customs Duties for the Safeguard Measures

From May 22, 2017 on, all the import operators shall pay the corresponding customs duties at the customs of the People’s Republic of China according to the tariff for the safeguard measures when they import sugar products beyond the tariff quota. The tariff for the safeguard measures shall be determined based on the duty-paying values approved by the customs. The calculation formula is shown as follows: Customs duty amount according to the tariff for the safeguard measures = customs duty-paying value X customs tariff for the safeguard measures. The sum of the duty-paying value, the customs duty and the safeguard measure customs duty shall be taken as the taxable value and the value-added tax of import shall be calculated based on the taxable value.

4. Exclusion of Developing Countries (Regions)

The products from a developing country (region) shall not be applicable to the safeguard measures if their import shares do not exceed 3% and the import shares of these countries (regions) do not exceed 9%. The importer needs to provide a certificate of origin to prove that a product is from a country (region) not applicable to the safeguard measures. As for the list of the developing countries (regions) that are not applicable to the safeguard measures, see Appendix 2.

In the three-year safeguard measure implementation period, if the import shares of a developing country (region) that is not applicable to the safeguard measures exceed 3% in a year, the country (region) can be listed as a country (region) that is applicable to the safeguard measures next year.