G/SCM/N/392/CHN  
12 September  2022 
(22-6714) Page: 1/10 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SEMI -ANNUAL REPORT UNDER ARTICLE 25.11  
OF THE AGREEMENT  
CHINA 
Reproduced herewith is the semi -annual report for the period 1 January -30 June 2022 from China . 
 
_______________  
 
 
   
  G/SCM/N/392/CHN  
- 2 - 
 
Reporting Member: CHINA1 
SEMI -ANNUAL REPORT OF COUNTERVAILING DUTY ACTIONS2 
FOR THE PERIOD 1 JANUARY -30 JUNE 2022 
Original Investigations  
Country or 
customs 
territory  Product  Initiation  Provisional 
measures and 
preliminary  
determinations  Final measures  No final 
measures/  
termination  Other  Trade data  
(from published report(s))  Countervailed 
programme(s)  Definitive 
duty Undertaking  
Description; HS 
6-digit category 
covering 
investigated 
product3; 
ID number;  
(*) if investigation 
of >1 country  Date; period of 
investigation  
(S-subsidization  
I-injury)  Date of 
measures; range 
of individual 
amounts of 
subsidy;  
"other" rates;  
[range of applied 
rates if different, 
reason]  Date of 
duties; range 
of individual 
amounts of 
subsidy; 
"other" rates; 
[range of 
applied rates 
if different, 
reason]  Date of 
application; 
range of 
individual 
amounts of 
subsidy  
or minimu m 
prices  Date,  
reason  Date, 
explanation  Import 
volume or 
value (units/ 
currency); 
product 
coverage, 
period, if 
different from  
cols. 2/3  Import 
volume as % 
of apparent 
domestic 
consumption 
or as % of 
total imports  Name(s) of the subsidy 
programme(s) counter vailed  
1 2 3 4 5 6 7 8 9 10 11 
United States  Polyphenylene 
ether  
39072 9904 
20-0001  14.08.2020  
S: 01.01.2019 -
31.12.2019  
I: 01.01.2017 -
31.12.2019  Preliminary 
determination: 
14.10.2021  
Affirmative  
Measure imposed  
Gazette 2021 
No. 31 
P: 14.10.2021  
C: 15.10.2021  
17.7%  
All other rates: 
17.7%  - - Final 
determination: 
06.01.2022  
Negative  
No measure 
imposed 
Gazette 2022 
No. 02 
de minimis  The 
investigation 
time limit was 
extended to 
14.02.2022 
according to  
Gazette 2021 
No. 18, 
23.07.2021  21,848  tons 
(01.01.2019 -
31.12.2019 ) SIPDC:  
15.18%  1. Upstream Subsidies  
(a) Upstream subsidy 
programs provided by the 
federal government: 
Innovative Technology Loan 
Guarantee Program; Fossil 
Energy Research and 
Development; Expensing of 
Intangible Drilling 
Costs/Expensing Exploration 
and Development Costs for Oil, 
Gas and othe r Fuels; 
Percentage Depletion for Oil 
and Natural Gas Wells/Excess 
of Percentage over Cost  
Depletion for Oil, Gas and 
other Fuels;  
 
1 Website address where published reports on investigations are available: http://cacs.mofcom.gov.cn/index.shtml . 
2 All terms and column headings used in this format have the meanings assigned to them in the instructions.  
3 For reference purposes only.  
4 According to Customs Import and Export Tariff of People's Republic of China (2022), the HS Code of the investigated product s hould be adjusted into 39072990 .   
  G/SCM/N/392/CHN  
- 3 - 
 
1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           Two Year Amortization Period 
for Geological and Geophysical 
Expenditures; Percentage 
Depletion for Hard Mineral 
Fossil Fuels; Expensing of 
Exploration and Development 
Costs for Hard Mineral Fuels; 
Enhanced Oil Recovery Credit; 
Corporate Income Tax 
Exemption for Fossil Fuel 
Publicly Traded Partnerships.  
(b) Upstream subsidy 
programs provided by local 
governments: LNG Storage 
Facility Credit; Gross Value 
Reduction; Oil and Gas 
Industry Service Expenditures 
Credit; In -State Refinery Tax 
Credit; Qualified Capital 
Expenditure Credit; 
Development Credit for Sm all 
Producers and New Areas; 
Alternative Credit for 
Exploration; Percentage 
Depletion of Mineral and other 
Resources; Severance -Tax 
Exemption for Stripper 
Wells/Severance -Tax 
Reductions for Low -Volume 
Wells; Severance -Tax Oil and 
Gas Ad valorem Credit; 
Severance -Tax Exemption for 
Low-Volume Oil -Shale 
Production; Reduced Value for 
Certain Mineral Properties; 
Sales -Tax Exclusion for 
Installation of Board Roads in 
Oil-Fields; Sales Tax Exclusion 
on Drilling Rigs/Sales Tax 
Exemption for Repairs and 
Materials Us ed on Drilling Rigs; 
Excess of Percentage over Cost 
Depletion; Natural Gas 
Severance Tax Suspension for 
Horizontal Wells; Natural Gas 
Severance Tax Suspension for 
Inactive Wells; Natural Gas 
Severance Tax Suspension for 
Deep Wells;    
  G/SCM/N/392/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           Reduced Severance Tax on 
Incapable Oil Well Gas; 
Reduced Severance Tax on 
Incapable Gas Well Gas; Oil 
Deduction Severance Tax on 
Transportation Fees; 
Severance Tax Suspension on 
Oil from Horizontal Wells; 
Severance Tax Suspension on 
Oil from Inactive Wells; 
Severance Tax Suspension on 
Oil from Deep Wells; 
Severance Tax Suspension on 
Oil from Tertiary Recovery; 
Reduced Severance Tax Rate 
on Incapable Oil Wells;  
Reduced Severance Tax Rate 
on Oil from Stripper Wells; 
Severance Tax Exclusion on 
Flared or Vented Natural Gas; 
Severance Tax Exclusion for 
Natural Gas Used in Field 
Operations; Gas Gross 
Production Tax Exemptions and 
Oil Extraction Tax 
Exemptions/Reduced Tax Rate 
for Certain Wells Outside the 
Bakken and Three Forks 
Region; Sales Tax Exemption 
for Oil/Sales Tax Exemption for 
CO2 Used for Enhanced Oil 
Recovery/Sales Tax Exemption 
for Natural Gas; Sales Tax 
Exemption for Electricity Used 
in Enhanced Oil Recov ery; Cost 
of Complying with Sulphur 
Regulations; Full Expensing of 
Capital Investments in 
Qualified New Refinery 
Capacity; Gross Production Tax 
Rebate for Re -established 
Production;    
  G/SCM/N/392/CHN  
- 5 - 
 
1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           Gross Production Tax Rebate 
for Production 
Enhancement/Enhanced Oil 
Recovery Deduction; Realty -
Transfer Tax Exemption for 
Resource Leases; Sales Tax 
Exemption for Oil and Gas 
Equipment; Severance Tax 
Exemptions for Crude Oil and 
Natural Gas/Texas Shale Gas  
Production Tax Relief; Sales -
Tax Exemption for Transporting 
Drilling Rigs/Sales -Tax 
Exemption for Certain Well 
Services/Sales -Tax Exemption 
for CO2 Used in Tertiary 
Production.  
2. Direct subsidies  
Program of low -price power 
supply by the U.S. 
Government; Program of low -
price water supply by the U.S. 
Government.  
 Certain monoalkyl  
ethers of ethylene 
glycol and 
propylene glycol  
29094400, 
29094990  
20-0003 14.09.2020  
S: 01.01.2019 -
31.12.2019  
I: 01.01.2016 -
31.12.2019  Preliminary 
determination: 
18.09.2021  
16.8%  
All others:  16.8%  
Affirmative  
No measure 
imposed  
Gazette 2021 
No. 26 - - Final 
determination: 
10.01.2022  
Affirmative  
P: 10.01.2022  
No measure 
imposed  
Gazette 2022 
No. 04  
Due to specific 
circumstances 
of the case, 
China has  
decided not to 
impose a 
definitive 
measure for 
now. 
(Gazette  2022 
No. 04, 
10.01.2022)  The 
investigation 
time limit was 
extended to 
14.03.2022 
according to  
Gazette 2021 
No. 20 , 
27.08.2021  30,507 tons  
(01.2019-
12.2019)  SIPDC:  
30.08%  Upstream Subsidies:  
Federal  
1. Expensing of Intangible 
Drilling Costs  
2. Percentage Depletion for Oil 
and Natural Gas Wells  
3. Two Year Amortization 
Period for Geological & 
Geophysical Expenditures  
4. Percentage Depletion for 
Hard Mineral Fossil Fuels 
5. Deduction for Tertiary 
Injectants  
6. Exception to Passive Loss 
Limitation for Working 
Interests in Oil and Natural Gas 
Properties  
7. Enhanced Oil Recovery 
Credit  
8. Corporate Income Tax 
Exemption for Fossil Fuel 
Publicly Traded Partnerships  
9. Nat ural gas distribution 
pipelines treated as 15 -year 
property    
  G/SCM/N/392/CHN  
- 6 - 
 
1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           States  
Alaska  
1. LNG Storage Facility Credit  
2. Gross Value Reduction  
3. Oil and Gas Industry Service 
Expenditures Credit  
4. In-State Refinery Tax Credit  
5. Qualified Capital Expenditure 
Credit  
6. Development Credit for 
Small Producers and New 
Areas  
7. Alternative Credit for 
Exploration  
8. Taxable Per Barrel Credit  
Califor nia 
1. Percentage Depletion of 
Mineral and Other Resources  
Colorado  
1. Severance -Tax Exemption 
for Stripper Wells/Severance -
Tax Reductions for Low -Volume 
Wells  
2. Severance -Tax Oil and Gas 
Ad Valorem Credit  
3. Severance -Tax Exemption 
for Low-Volume Oil -Shale 
Production  
4. Reduced Value for Certain 
Mineral Properties  
Louisiana  
1. Sales -Tax Exclusion for 
Installation of Board Roads in 
Oil-fields  
2. Sales -Tax Exclusion on 
Drilling Rigs/Sales -Tax 
Exemption for Repairs and 
Materials Used on Dri lling Rigs  
3. Excess of Percentage over 
Cost Depletion  
4. Natural Gas Severance Tax 
Suspension for Horizontal Wells  
5. Natural Gas Severance Tax 
Suspension for Inactive Wells  
6. Natural Gas Severance Tax 
Suspension for Deep Wells  
7. Reduced Severance Tax on 
Incapable Oil Well Gas  
8.Reduced Severance Tax on 
Incapable Gas Well Gas    
  G/SCM/N/392/CHN  
- 7 - 
 
1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           9. Oil Deduction Severance Tax 
on Transportation Fees  
10. Severance Tax Suspension 
on Oil from Horizontal Wells  
11. Severance Tax Suspension 
on Oil from Inactive Wells  
12. Severance Tax Suspension 
on Oil from Deep Wells  
13. Severance Tax Suspension 
on Oil from Tertiary Recover  
14. Reduced Severance Tax 
Rate on Incapable Oil Wells  
15. Reduced Severance Tax 
Rate on Oil f rom Stripper Wells  
16. Severance Tax Exclusion 
on Flared or Vented Natural 
Gas 
17. Severance Tax Exclusion 
for Natural Gas Used in Field 
Operations  
North Dakota  
1. Gas Gross Production Tax 
Exemptions + Oil Extraction 
Tax Exemptions/Reduced Tax 
Rate for Cer tain Wells Outside 
the Bakken and Three Forks 
Region  
2. Sales tax exemption for 
oil/Sales tax exemption for CO 2 
used for enhance oil 
recovery/Sales tax exemption 
for natural gas  
Oklahoma  
1. Sales Tax Exemption for 
Electricity Used in Enhanced Oil 
Recovery  
2. Cost of Complying with 
Sulphur Regulations  
3. Full Expensing of Capital 
Investments in Qualified New 
Refinery Capacity  
4. Gross Production Tax Rebate 
for Re -established Production  
5. Gross Production Tax Rebate 
for Production 
Enhancement/Enha nced Oil 
Recovery Deduction  
6. Gross Production Tax Rebate 
for 3D Seismic Wells    
  G/SCM/N/392/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United States 
(Cont'd)           7. Gross Production Tax 
Exemption for O&G Owned by 
Government  
8. Gas Marketing Deduction 
Against Gross Production Tax  
9. Gross Production Tax Rebate 
for Horizontally Drilled Wells  
10. Gross Production Tax 
Rebate for New Discovery 
Wells  
Pennsylvania  
1. Realty -Transfer Tax 
Exemption for Resource Leases  
Texas  
1. Sales Tax Exemption for Oil 
& Gas Equipment  
2. Severance Tax Exemptions 
for Crude Oil and Natural Gas  
West Virginia  
1. Exclusion of Low Volume Oil 
& Gas Wells  
Wyoming  
1. Sales -Tax Exemption for 
Transporting Drilling 
Rigs/Sales -Tax Exemption for 
Certain Well Services/Sales -
Tax Exemption for  CO2 Us ed in 
Tertiary Production  
2. Severance -Tax Reduction for 
Stripper Wells  
Direct Subsidies:  
1. Research and development 
grants of DOE  
2. Texas Economic 
Development Act  
3. Texas Enterprise Fund  
4. Centers of Energy Excellence 
Program  
5. Industrial Tax Exemption 
Program  
6. MEGA Job Creation Tax 
Credits  
7.Industrial Facilities 
Exemption -P.A.198  
8. Payment in Lieu of Tax, 
PILOT  
9. FastTrack Economic 
Development Fund Grants    
  G/SCM/N/392/CHN  
- 9 - 
 
Reviews/Other subsequent  proceedings  
Country or 
customs 
territory  Product  Initiation  Preliminary 
results/ 
determination  Final results  Revocation 
of Measures  Other (e.g., 
procedures 
not affecting 
the duty level)  Trade Data  
(if available from 
published report(s) on 
proceeding)  Countervailed 
programme(s)  Definitive duty  Undertaking  
Description; HS 6 -digit 
category covering 
investigated product3; 
ID number;  
(*) if investigation of 
>1 country  Date, Type of 
Review or 
Procedure 
(code), Period 
Covered  Effective date; 
range of individual 
amounts of subsidy;  
"other" rates;  
[range of applied 
rates if different, 
reason]  Effective date, 
range of 
individual 
amounts of 
subsidy;  
"other" rates; 
[range of applied 
rates if different, 
reason]  Effective date; 
range of 
individual 
amounts of 
subsidy or 
minimum 
prices;  
or other 
outcome (code) Date,  
reason  Date,  
explanation  Import 
volume or 
value (units/ 
currency); 
product 
coverage, 
period, if 
different from 
cols. 2/3  Import 
volume as % 
of apparent 
domestic 
consumption 
or as % of 
total imports  Name(s) of the 
subsidy 
programme(s) 
countervailed  
1 2 3 4 5 6 7 8 9 10 11 
United States  Distillers dried grains 
with or without solubles  
23033000  
16-0001 12.01.2022  
Sunset/Expiry 
review  
S: 01.07.2020 -
30.06.2021  
I: 01.01.2017 -
30.06.2021  - - - - Duty remains in 
force pending 
the outcome of 
the review  
11.01.2022 (P)  
12.01.2022 (C)  
Measure 
extended up to: 
11.01.2023  - - - 
P - Publication date  
C - Date of commencement of duty collection  
SIPDC  - Subsidized imports as % of domestic consumption  
 G/SCM/N/392/CHN  
- 10 - 
  ANNEXES  
DEFINITIVE COUNTERVAILING MEASURES IN FORCE  
AS OF 30 JUNE 2022 
Country/Customs 
Territory  Product,  
investigation  
ID number  Measure(s)  Date of original 
imposition; 
publication 
reference  Date(s) of 
extension; 
publication 
reference(s)  
Australia  Barley  
18-0003 Duties  19.05.2020  
Gazette, 2020 No. 15 
of 18.05.2020  - 
European Union1 Potato starch  
10-0001 Duties  17.09.2011  
Gazette, 2011 No. 54 
of 17.09.2011  15.09.2017  
Gazette, 2017 No.  38 
of 15.09.2017  
India Ortho chloro para 
nitroaniline  
17-0001 Duties  13.02.2018  
Gazette, 2018 No. 18 
of 13.02.2018  - 
United Kingdom  Potato starch  
10-0001-UK2 Duties  01.01.2021  
Gazette, 2011 No. 54 
of 01.01.2021  - 
United States  Solar-grade polysilicon  
12-0007 Duties  20.01.2014  
Gazette, 2014 No. 04 
of 20.01.2014  20.01.2020  
Gazette, 2020 No.  02 
of 20.01.2020  
 Distillers dried grains 
with or without solubles  
16-0001 Duties  12.01.2017  
Gazette, 2016 No. 80 
of 12.01.2017  12.01.2022*  
Gazette , 2022 No.  06 
of 11.01.2022  
 n-Propanol (NPA)  
19-0001 Duties  18.11.2020  
Gazette, 2020 No. 47 
of 17.11.2020  - 
(*) Duty extended pending outcome of the final findings of the Sunset Review investigation.  
 
TERMINATION OF MEASURES DURING THE PERIOD  
1 JANUARY THROUGH 30 JUNE 2022  
Country/Customs 
Territory  Product,  
investigation ID number  Date of termination  Reason for 
termination  
NIL 
 
__________  
 
1 European Union (27 member States ). 
2 Accordin g to the Public Notice of the Ministry of Commerce of the People's Republic of China 
(Gazette  2021 No. 03), the trade remedy measures applied to the European Union before 31  December 2020 
would continue to apply to the United Kingdom with the implementatio n period unchanged.