Responding To The South Korean Anti-dumping Investigations Accounting Issues

Since China and Korea established diplomatic ties in 1992, the economic of the two countries were greatly improved. But there were more and more trade frictions between the two countries in recent years. China and Korea treat each other as the primary goal of anti-dumping. During 1995 to 2008, China ranked first in the Korean anti-dumping investigations which involving 28 countries. There have 23 investigations about Chinese export products among the all 108 surveys which Korea has launched. Meanwhile, Korea was also the top in Chinese anti-dumping investigation which involving 24 countries. There have 27 investigations about Korean export products among the all 151 surveys which China has launched. However, as concerned to Chinese enterprises, the rate of winning Korea anti-dumping issue was very low. The Chinese enterprises were suffered heavy losses by high anti-dumping tariffs.Until now, there are little essays researched in Korea anti-dumping, especially the accounting problems. Most essays are limited in the characters and reasons of anti-dumping between the two countries. Responding to the lack of research in adjustment on the financial index and accounting requirements in questionnaires, my essay is focusing on the analysis for anti-dumping accounting problems, which is from the view of interdisciplinary studies, such as accounting, laws, international trade. My goal is to find the accounting reasons related in the failure of anti-dumping lawsuits, and to give advisements and theoretical supports to help Chinese export enterprises solve anti-dumping problems.To analyze the failure reason of export enterprises in answering the charge of South Korean anti-dumping correctly, this paper first collects the cases which South Korea have launched investigations to China during 2002 to 2008, and then divides the cases into wins and loses kinds and analyzes the two kinds separately. There are three reasons for the enterprise lost a lawsuit : First, because of no understand to the anti-dumping investigation accounting standard of the investigator side, it is unable to estimate the export products normal value, the export value as well as the dumping profit margin accurately according to the investigator side requests, thus it is unable to take the corresponding measures to avoid and to deal with the anti-dumping investigation; Second, because of no understand to anti-dumping questionnaire accountant requests, it is unable to timely provide accounting data to the investigator, thus it cannot present evidence effectively with contradicts; Third, other reasons. Including lacks the early warning mechanism, the price is formulated not so reasonable, and the enterprise management has many flaws.So the fourth chapter of this paper is to solve the first failure factor as is concerned. We use the standard research method to refine its accounting standard from the South Korean anti-dumping law. The anti-dumping investigation include many factors, such as the calculation of Normal Value and Export Price, the adjustment of Normal Value and Export Price, and the calculate methods of Dumping Margin. In this paper, we compare the difference between China and South Korea about the anti-dumping investigation accounting standards, analyze the influencing factors of the differences, and provide the technical support to enterprises when there need accordant materials in the lawsuit. The fifth chapter is to solve the second failure factor. We use method which investigate and study on the spot, obtain the South Korean anti-dumping questionnaire sample from XX Company. According to this questionnaire sample and the interview to the responsible person, we analyze the questionnaire accountant requests, the method of filling in answers, and then get the conclusion of the skills when facing anti-dumping. The sixth chapter is to solve the third failure factor. In this chapter, from the accounting, the legal science, the international trade study and so on interdisciplinary studies' angle of view, we propose that the strategy of dealing with the South Korean anti-dumping investigation namely circumvention and early warning strategy. The circumvention strategy is refers to establishes the anti-dumping guidance ERP system, and must pay more attention to take the daily accounting information management and control; The early warning strategy mainly aims at the price early warning, refers to reasonable forecasts the anti-dumping risk which the export products current price possibly brings, and then according to the anti-dumping basic principle to found an export products price model based on to deal with anti-dumping. The seventh chapter carries on practice analysis of the above theory through a concrete case, is for the purpose of providing the relevant technology reference for the Export enterprise.In the conclusion of this thesis, it summarizes the innovations and limitations. The innovations mainly embodies in these aspects: Firstly, it studies the newly anti-dumping laws of Korea, deficits the contents of anti-dumping accountant standard in Korea, explains the contents especially in how to readjust the normal value and export price. Secondly, it acquires the first-hand materials of anti-dumping survey, analyses the requirement and filling methods of anti-dumping investigation accurately. Thirdly, it proposes to built an ERP system of anti-dumping, illustrates the main ideas, processes and the problems which should be pay attention to. Fourthly, it firstly proposes the anti-dumping model to export enterprise. The model can provide a reasonable price to enterprise in order to avoid anti-dumping. Fifthly, it combines actual cases with theory, attempts to provide theory assistant and practical instruction to Chinese enterprise. The mainly limitations of this thesis are: the opinions from this paper are built on enterprise's demand. It has not take government, guild and intermediaries into account. Besides, because the cost data is business secret, the surveyed data is simply handled, so the information may not sufficient. At last, because the reference materials are all foreign language, it is inevitably to make several translation mistakes.