3/13/2012 7:56:00 AM
HEADLINES
EU Announces Review of Tariffs on Fasteners From China and Taiwan
The European Commission initiated a series of official reviews related to its tariffs on certain fasteners imported from China and Taiwan.
The move signals the EC’s intention to address the World Trade Organizations’s Appellate Body ruling that the duties break international trade rules and should be revised to reflect non-market economy treatment.
The official EC reviews follow news in February that the European Union had agreed on a timetable to implement WTO recommendations in the case, ending months of wrangling between the EU and China over a process to address the WTO determination. Based on the agreement, the reasonable period of time to address WTO concerns expires on October 12, 2012.
The EU may lift or lower its tariffs to comply with the WTO’s decision, according to the agreement.
A key element of the reviews include a re-evaluation of the process by which select companies received individual treatment under the duties. A key WTO concern involves the governing body’s contention that the EU’s basic regulation discouraged Chinese exporters from applying for individual treatment.
Applicants have 30 days to submit a duly substantiated application in order to be granted an official review of their company’s circumstances.
“The measures reviewed may be repealed, amended or maintained in order to comply” with WTO rulings, the EC stated.
But the EC warned that each application would be pursued.
“Parties requesting a review should be aware that if the findings require an amendment…, such amendment may result in a decrease or an increase in the level of the measures.”
The EC also indicated that once a review has been initiated, the Commission “reserves the right to finalise it even if the party requesting the review decides to withdraw” its request.
The WTO’s Appellate Body ruled in July 2011 that EU duties on fasteners from China break international trade rules in many cases and should be revised to reflect non-market economy treatment.
The EU adopted 85% antidumping duties on certain fasteners from China in February 2009.
China responded with five-year antidumping duties of 26% on steel fasteners from the EU.
China also filed an official complaint on July 31, 2009, following through on its threat to challenge the duties imposed on screw and bolt exports totaling EUR 575 million (US$755 million) a year.
The European Commission initiated a series of official reviews related to its tariffs on certain fasteners imported from China and Taiwan.
The move signals the EC’s intention to address the World Trade Organizations’s Appellate Body ruling that the duties break international trade rules and should be revised to reflect non-market economy treatment.
The official EC reviews follow news in February that the European Union had agreed on a timetable to implement WTO recommendations in the case, ending months of wrangling between the EU and China over a process to address the WTO determination. Based on the agreement, the reasonable period of time to address WTO concerns expires on October 12, 2012.
The EU may lift or lower its tariffs to comply with the WTO’s decision, according to the agreement.
A key element of the reviews include a re-evaluation of the process by which select companies received individual treatment under the duties. A WTO concern involves the governing body’s contention that the EU’s basic regulation discouraged Chinese exporters from applying for individual treatment.
Applicants have 30 days to submit a duly substantiated application in order to be granted an official review of their company’s circumstances.
“The measures reviewed may be repealed, amended or maintained in order to comply” with WTO rulings, the EC stated.
But the EC warned that each application would be pursued.
“Parties requesting a review should be aware that if the findings require an amendment…, such amendment may result in a decrease or an increase in the level of the measures.”
The EC also indicated that once a review has been initiated, the Commission “reserves the right to finalise it even if the party requesting the review decides to withdraw” its request.
The WTO’s Appellate Body ruled in July 2011 that EU duties on fasteners from China break international trade rules in many cases and should be revised to reflect non-market economy treatment.
The EU adopted 85% antidumping duties on certain fasteners from China in February 2009.
China responded with five-year antidumping duties of 26% on steel fasteners from the EU.
China also filed an official complaint on July 31, 2009, following through on its threat to challenge the duties imposed on screw and bolt exports totaling EUR 575 million (US$755 million) a year. ©2012 GlobalFastenerNews.com
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