8/4/2009
HEADLINES
China Files WTO Complaint Against EU Screw Tariffs

China filed an official complaint with the World Trade Organization over fastener tariffs from the European Union, following through on its threat to challenge the 85% duties imposed in January on screws and bolts exports, the Associated Press reports.

China claims the tariffs were “neither impartial nor transparent,” and that they hurt over 1,700 Chinese fastener manufacturers.

The European Union adopted antidumping duties on certain fasteners from China after concluding that Chinese producers had flooded the market with fasteners at 30% to 50% below European prices.

The general tariff for a range of imported fasteners, including hex bolts, socket screws, small screws and washers, is 85%.

Products involved are covered by 10 CN tariff codes, including woodscrews, drywall screws, self tapping screws, machine screws, various other small screws, mild steel and high tensile hex bolts and screws, socket screws, bolts with other heads, spring and flat washers.

In the wake of the EU tariffs, China exports of steel and copper fasteners have plunged, with export numbers showing a 45% decline in tonnage to 570,000 tons and a 40% drop in value to $917 million for the first five months of 2009.

China has responded to the EU tariffs with an antidumping investigation into EU carbon steel fasteners imports.

China’s complaint starts a 60-day consultation period, after which China can request a WTO investigative panel be established.

The suit is the first time China has challenged an antidumping duty at the WTO, which could dismiss the complaint or give China the right to impose higher import tariffs on some EU goods by the end of 2010. ©2009 GlobalFastenerNews.com

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