Sumitomo sues Chinese provincial government
( 2003-07-12 13:15) (China Daily)
A leading Japanese firm has
launched legal action against a provincial government authority, claiming it
allowed the sale of fake goods. Yesterday, the public hearing of the case began
at the Xi'an Intermediate People's Court in Xian, capital of Northwest China's
Shaanxi Province.
A lawyer said: "We brought the lawsuit against Shaanxi
Provincial Quality and Technology Supervision Bureau because we refused to
accept the administrative decision to rescind an order issued by the bureau on
our product Meothrin."
Japan Sumitomo Chemical Company Ltd is one of the
top 10 producers of farm chemicals in the world and its product Meothrin, a
high-quality farm chemical is widely sold.
In June, Sumitomo filed a
complaint with the Xi'an Intermediate People's Court.
It stated that
Sumitomo exports Meothrin to China and entrusts Chinese factories to process 20%
emulsion Meothrin based on Sumitomo's raw chemicals. The Japanese producer does
not allow any other similar raw chemicals that it does not produce to be
included in the product. However, Sumitomo discovered in April 2002 that a type
of 20% emulsion Meothrin processed by Shandong Maiyingde Chemical Company and
sold by Shaanxi Kangtai Farm Materials Company contained other chemicals not
produced by Sumitomo.
The company instructed its Shanghai joint-venture
to inform the bureau that the Shaanxi firm was selling a fake product of
Meothrin.
On April 26, 2002 after receiving the report from Sumitomo
Chemical (Shanghai) Company Ltd, the bureau impounded 517 boxes of 20% emulsion
Meothrin from Shaanxi Kangtai Farm Materials Company. A report subsequently
revealed that most of the seized Meothrin contained raw chemicals not produced
by Sumitomo.
On January 22, 2003, the bureau delivered an administrative
punishment on Shaanxi Kangtai Farm Materials Company, ordered them to stop
selling the fake Meothrin, confiscated 417 boxes of the fake product and fined
the company 62,497 yuan (US$7,530).
But the company appealed to the
bureau. On March 21, 2003, the bureau rescinded the punishment, on the ground
that the product is of good quality. Sumitomo, however, maintained that the
quality of the product is not the issue. It is still fake, because it is sold
under the name of Meothrin.
|
