US anti-dumping investigation results on China and South Korea diamond saw blades announced

On November 4, 2009, the US Department of Commerce issued an anti-dumping tax order. Since January 23, 2009, import tariff deposits have been imposed on imported diamond saw blades and their components originating in China and South Korea. On November 9, 2009, the US Court of Appeals for the Federal Circuit rejected the Chinese and Korean companies such as SAINT-GOBAIN ABRASIVES INC., EHAWA DIAMOND INDUSTRY CO. LTD, and Boshen Tools Co., Ltd. Request to suspend the execution of the imposition of import tariff deposits. So far, the anti-dumping tax order issued by the US Department of Commerce for diamond saw blades and components originating in China and South Korea has come into effect and has been implemented.

1. The main contents of the anti-dumping tax order are as follows:

1. Involving product range: diamond saw blade production finished product, semi-finished product, diamond saw blade base and cutter head.

2. Effective time: January 23, 2009
3. Specific tax rate: Aetna Technology and its holding subsidiary Beijing Antai Steel Research Superhard Materials Co., Ltd. (95% of the company's shareholding) tax rate is 2.82%. The average tax rate for Chinese companies is 21.43%, and the average tax rate for Korean companies is 16.39%.

Second, the impact of anti-dumping tax orders on the company
Beijing Antai Steel Research Superhard Materials Co., Ltd., a subsidiary of the company, is mainly engaged in the production and sales of diamond saw blades. The company is committed to the development of high-end product technology, and more than 90% of diamond saw blades are used for export.

In 2008, the company's US market exports amounted to 65.677 million yuan, accounting for 34.0% of the same period, accounting for 24.19% of the company's total sales revenue during the same period. From January to October 2009, the US market exported 45.593 million yuan, accounting for 35.5% of the same period, accounting for 30.06% of the company's total sales revenue during the same period.

At present, South Korea's Erhe Company and Saint-Gobain have appealed to the US Court of Appeals for the Federal Circuit. If the case is won, the customs deposit imposed by the US Customs will be returned.

The company will fulfill its information disclosure obligations in a timely manner depending on the progress of the litigation.  

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