EU Repeals Fastener Anti-Dumping Duties
FEATURE
EU Repeals Fastener Anti-Dumping Duties
The European Commission published Regulation EU 2016/278 “repealing the definitive anti-dumping duty imposed on imports of certain iron or steel fasteners originating in the People’s Republic of China, Europe’s Fastener + Fixing Magazine reported.
The anti-dumping repeal extends to imports of certain iron or steel fasteners consigned from Malaysia, whether declared as originating in Malaysia or not.
The new European regulation states: “In view of the findings (of the WTO Dispute Settlement Body) the Commission considers that in accordance with Article 1(1)(a) of the WTO enabling Regulation it is appropriate to repeal the anti-dumping duties imposed by Regulation (EC) No 91/2009, as amended by Implementing Regulation (EU) No 924/2012 and maintained by Implementing Regulation (EU) 2015/519.”
It also makes it clear there is no entitlement for refund of duties: “The repeal of the anti-dumping duties …shall take effect from the date of the entry into force of this Regulation (28th February) … and shall not serve as a basis for the reimbursement of the duties collected prior to that date.”
The Regulation comes in force the day after publication in the Official Journal on February 28, 2016.
The European Union appears to be removing anti-dumping duties on iron and steel fasteners from China rather than pay punitive retaliatory measures, the Fastener + Fixing Magazine reported.
The European Commission operate behind “sealed doors” in making changes, the Fastener + Fixing reported.
The World Trade Organization’s appellate body on Dispute DS397 published last month was more critical of the EU process of calculating anti-dumping duty levels based on an analogue country than previous rulings from the Dispute Settlement Body.
In the final stage in a seven-year dispute with China over the legitimacy of Regulation 91/2009, the WTO rules require the EU to bring its measures into compliance or face retaliatory measures from China. Those retaliations would likely to hit far more sensitive imports than fasteners.
Media statements from Chinese officials anticipated the EU action to remove the anti-dumping duties. China had been expected to demand the right to apply tough retaliatory measures unless the EU has taken action.
A simple majority of member states is required to approve a Commission’s proposal. Rejection requires a qualified majority, which means sixteen member states representing 65% of the EU population must vote against.
European fastener manufacturers have expressed concern about the developments – as are many importers holding inventory likely to be devalued by re-entry of China to the EU market.
The European Industrial Fasteners Institute, representing fastener makers, had urged members to energetically lobby against repeal of the anti-dumping duties on the basis this would be extremely damaging to their businesses.
Member states face the dilemma that protecting their fastener manufacturing industry would bring Chinese retaliatory measures on other more sensitive industries.
Repeal of the measures would make it probable the EIFI lodges new anti-dumping, and possibly anti-subsidy, complaints against imports from China based on the threat of dumping and material injury recurring. There is a delay between termination of measures and the Commission agreeing to new investigations, but in this case it could well be sympathetic to manufacturers’ concerns and act much more quickly, F+F reported.
That scenario means a repeal would not represent an unqualified ‘green light’ for importers to recommence trade with Chinese factories. While provisional duties, albeit almost certainly at a lower level, might not be determined for the normal nine months, the danger to importers could well be exacerbated if the Commission determines the risk of injury as so great to warrant making provisions to back date the duties.
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