9/7/2010
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The World Trade Organization criticized the way the European Union assessed antidumping duties on fastener imports from China, Reuters reports.
A confidential interim report by a panel of WTO experts on the complaint reportedly affirmed China’s complaint that the EU unfairly judged China as a non-market economy when it applied duties on fasteners in January 2009.
“The panel has found that the EU discriminates against Chinese exporters compared to exporters from other countries,” a person familiar with the case told Reuters.
“It’s a big victory for China as it takes out one of the pillars of EU anti-dumping activity against China,” he said.
If confirmed, the ruling could force the EU to set individual duties on companies instead of imposing a blanket duty for the whole country.
The WTO issued the report to Brussels and Beijing on August 10.
China filed an official comp laint on July 31, 2009, following through on its threat to challenge the 85% duties imposed on screw and bolt exports totaling EUR 575 million (US$755 million) a year.
The EU 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.
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.
Several Chinese producers and European importers have challenged the duties in EU courts, including Germany’s Adolf Wuerth.
In the wake of the EU tariffs, China exports of steel and copper fasteners plunged, with export numbers showing a 45% decline in tonnage to 700,000 tons and a 43% drop in value to $1.12 billion for the first six months of 2009.
China responded by placing five-year antidumping duties on steel fasteners imported from the European Union. 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.
But the WTO panel reportedly rejected China’s claim that the EU “made unfair comparisons between high-end EU fasteners used in the car and aviation industries with low-grade Chinese screws and bolts sold in hardware shops.”
The final report is slated to be published in November, after which the EU has 60 days to appeal. ©2010 GlobalFastenerNews.com
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