China Launches EU Fastener Probe

Jason Sandefur

China’s Ministry of Commerce has initiated an antidumping investigation into carbon steel fasteners imported from the European Union.
An application for a probe was filed on December 1 by the fastener branch of the China General Machine Components Industry Association (CMCA) on behalf of Chinese fastener producers, according to the ministry of commerce’s website.
The Chinese fastener probe would involve carbon steel fasteners used in automobiles, electronic and electrical equipment and machinery, according to the commerce ministry.
The scope of the probe includes iron or steel fasteners, (wood screws, self-tapping screws and bolts whose shank is 6mm or larger. The investigation excludes washers (PRC Customs Import Tariff Codes 73181200, 73181400, 73181500, 73182100 and 73182200) and railway screws and bolts.
While the China probe would normally be concluded in 12 months, the ministry warned that the investigation could last until June 29, 2010.
The decision by China to pursue the antidumping investigation follows a European Committee vote in early December to adopt import duties of up to 87% on screws and bolts from China. The vote must be approved by the 27-country bloc’s trade ministers before the duties are enacted.
China had offered to impose stricter pricing controls on its steel fasteners in an attempt to avert the tariffs, a proposal EU officials rejected.
The EU decision applies to about 200 Chinese companies who collectively exported more than $800 million worth of fasteners to the EU in 2007. EU trade experts claim Chinese exporters get an unfair advantage because of suspected subsidies in China’s steel industry.
However, Chinese exporters rebuffed that claim, noting profitability for European manufacturers increased 110% between 2003 and 2007. EU fastener exports to China totaled $180 million from September 2006 to October 2007, according to trade officials in China.
China has threatened to file a complaint with the World Trade Organization if the EU tariffs are approved. �2009 FastenerNews.com