6/28/2010
NEWS BRIEFS
China Places Final Tariffs on EU Fasteners
Claiming “substantial damage” to its fastener industry, China announced final five-year antidumping duties on steel fasteners imported from the European Union, AFP reports.
The tariffs on certain carbon fasteners range from 6.1% to 26%, and affect about EUR 140 million (US$240 million) worth of fasteners. Affected EU carbon fasteners include wood screws, self-tapping screws, screws and bolts (with or without nut and wash, excluding screws applied in railway and the screws and bolts which are shorter than 6 mm) and washers. CN codes include 73181200, 73181400, 73181500, 73182100 and 73182200. Nut were excluded from the tariff order.
The move follows China’s decision in December 2009 to apply tariffs on EU fasteners in retaliation to the European Commission’s adoption of antidumping duties averaging 87% on certain Chinese fasteners. The EC concluded in February 2009 that Chinese producers had flooded the market with fasteners at 30% to 50% below European prices.
Both the EU and China have appealed the tariffs to the World Trade Organization, which is conducting consultations between both parties.
The EU is challenging how China calculates the extent of dumping and the resulting penalty taxes imposed on imports.
Chinese fastener manufacturers have responded to the EU tariffs by transshipping fasteners to Europe through Malaysia, a country whose monthly fastener exports to the EU reportedly quadrupled after the tariffs were applied.
Some Malaysian companies reportedly are providing repacking services for Chinese fasteners and shipping them with their generalized system of preferences (GSP) and made-in-Malaysia certificate of origin documents, allowing them to enter Europe with respective duties of 1.2% and 3.7%.
Fastener exports from Malaysia nearly doubled to 99,000 tons in 2009, based on information from the Ministry of International Trade and Industry (Miti).
In response, Malaysia’s trade ministry has responded by requiring all exporters to provide a letter of indemnity for non-involvement in transshipments of Chinese fasteners to the EU.
There is evidence that transshipping is hurting legitimate Malaysian fastener manufacturers who say cheaper China-made fasteners have cost them market share in Europe and forced them to cut prices by 20% or more at a time when they could have achieved double-digit prices increases. ©2010 GlobalFastenerNews.com
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