9/28/2010
HEADLINES
Report: European Commission To Investigate Malaysian Circumventing

According to a source close to Brussels the European Commission is in the final stages of obtaining support from EU member states to initiate a circumvention investigation relating to fasteners imported from Malaysia, Fastener+Fixing Magazine reports.  

The Commission is understood to have amassed sufficient evidence to justify initiating the investigation, which will probe the transshipment via Malaysia of Chinese produced fasteners. In January 2009 the EC applied anti dumping tariffs of up to 85% on imports of carbon steel fasteners from the People’s Republic of China.  

 

The Commission is believed to be arguing for the investigation on its own initiative rather than in response to an external complaint. To meet the conditions of the EU Antidumping Circumvention Regulation, the Commission is likely to have presented evidence of changes in trade patterns for fasteners between Malaysia and the EU and possibly also between China and Malaysia. It will have to demonstrate that such changes are the result of the imposition of the anti dumping duty on China and not due to other economic factors and also that the circumvented product is entering the EU at “dumped prices.” The Regulation also requires evidence that the “remedial effects” of the anti dumping duties are being undermined by the alleged circumvention.  

 

Objections to circumvention investigations from European member states are understood to be rare so the probability of the investigation going ahead is high. There is no current indication of the date on which the Regulation announcing an investigation may be published in the EU Official Journal but the Commission would appear to have little reason to delay, assuming it obtains the support of the member states, so it is feasible an announcement may be made before the end of the month.

 

From the date the investigation is formally announced by a Council Regulation investigators can technically take up to 15 months to reach a conclusion but the timescale for previous circumvention investigations indicates that a decision will be reached more quickly. 

 

From the date the investigation is announced European Customs authorities will be required to register all imports alleged to circumvent the measures. This data provides the basis for the retroactive application of a duty on the importers involved should circumvention be found and the Commission&rsq uo;s final ruling deem it appropriate.

 

Producers and exporters in the country under investigation will have to cooperate with the Commission in order to establish that they are not involved in transhipment or other circumvention activity. Failure to cooperate, in effect to clear their name, would leave their products vulnerable to the anti dumping tariff. 

Earlier this year Malaysian authorities are known to have investigated fourteen exporters at the request of the European Union’s investigatory body, OLAF. There have also been indications from several EU member states that Customs authorities have already been scrutinising fastener imports from Malaysia. UK importers have been notified for some months that Customs is checking the status of the originating exporter with Malaysian authorities. 

There are also unconfirmed suggestions that custom authorities in Sweden may have taken action against fastener importers for circumvention.  ©2010 GlobalFastenerNews.com and Fastener + Fixing Magazine