6/27/2016 2:25:00 PM
NEWS BRIEFS
EU Introduces Fastener Import Licensing
The European Union has begun requiring fastener companies to obtain a license to import a range of steel fasteners and some stainless steel fasteners from any country outside the EU.
The surveillance system, reports Fastener + Fixing Magazine, is part of wider ranging measures on steel imports, which EU Trade Commissioner Cecilia Malmstrom says will “assist the Commission to better monitor market developments in the steel sector and will give a strong political message to third countries that the EU is actively following the situation.”
Licenses are required for fasteners imported from the United States impacting subsidiaries of US Corporations operating in the EU.
EU countries are required to administer licensing and report import data to the Commission within ten days of the month end – far quicker than normal compilation of Eurostat import data.
In February the EU was forced to repeal anti dumping duties of up to 74.1% on steel fasteners from China, following a series of negative rulings by the WTO dispute body.
At the time the European Commission assured member states and fastener manufacturers it would listen sympathetically to a new complaint on Chinese dumping but said it could not initiate a new investigation under its own initiative for legal reasons.
The EU simply cannot afford to burn its fingers on fasteners at the WTO again, F+FM executive editor Phil Matten explained. The surveillance system is designed to accelerate building a picture of the change in the pattern of trade following the removal of the anti dumping duties.
Matten finds the current volatility of steel prices in China makes most EU importers wary of switching purchases to the country on anything other than the basic products, where there are large cost savings. Major importers of high tensile bolting and other core fastener ranges are generally holding firm to supply relationships in Taiwan and Vietnam.
This means it may we some while before the EU sees a sufficiently clear upswing in Chinese imports to feel confident it can justify a new investigation, which could then take up to 15 months to reach definitive conclusions, according to Matten.
Implementation of the import licensing system has been patchy across EU member states, Mattan observed. In the UK, an electronic system issues licenses generally within the hour, according to distributor association BIAFD. Its members, though, report additional administration and costs to comply. A similarly effective electronic system is operating in the Netherlands and Swedish importers also report smooth issue of licenses.
Germany’s electronic system is not yet operational, overloading the small licensing branch with applications that must be processed manually, resulting in long delays for importers to receive licenses. France is also processing licenses manually but appears to be turning them round within the five-day limit required by the European Commission.
Processes in Italy and Spain are reportedly more challenging with the former requiring tight adherence to correct paperwork.
The worst hit importers appear to be in Poland, where authorities have been slow and reportedly obstructive in implementing the measure, Mattan said.
BIAFD also reports concerns over the European Commission’s motivations despite assurances from Commissioner Malmstrom that her department “made specific efforts to ensure that it would not impose a disproportionate burden on importers or disrupt normal trade flows in any way. These efforts include encouraging electronic procedures and avoiding any unnecessary administrative requirements.”
The BIAFD says it learned from UK trade officials that the original draft regulation from the Commission expected the licensing requirement to come into force the day after publication. Representation from the UK and other member states eventually obtained a 21-day working day period before implementation. The original draft proposed a paperwork-based system, including model documents, rather than the electronic approach the Commission claims to have championed.
EU manufacturers supplementing their own production range are also obliged to obtain licenses for each consignment over 2.5 tons per tariff code. © 2016 GlobalFastenerNews and Fastener + Fixing Magazine
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