Global Fastener News

Report: China Fastener Cos. Preparing EU Tariff Appeal

Jason Sandefur

Members of the China Fastener Association are reportedly working to appeal the European Union’s anti-dumping sanction.

In one of the largest tariff cases that the EU has undertaken against Chinese goods, the anti-dumping committee of the European Commission voted to adopt import duties of up to 87% on screws and bolts from China.

If approved, the duties could cost China’s fastener industry over $550 million a year and put 800,000 Chinese laborers out of work, according to some estimates.

In response, Chinese fastener companies are exploring other markets to offset the penalties.

China had offered to impose stricter pricing on its steel fasteners in an attempt to avert the tariffs, an offer EU officials rejected. The vote must be approved by the 27-country bloc’s trade ministers before the duties are enacted.

The decision applies to about 200 Chinese companies collectively exporting fasteners worth more than $731 million to Europe. EU trade experts claim Chinese exporters get an unfair advantage because of suspected subsidies in China’s steel industry.

The tariffs, routinely imposed for a five-year period, will affect everything from socket and hex cap screws to self tapping and other small screws, wood and drywall screws. Nuts and threaded rod were not included in the probe. �2009 FastenerNews.com