Saturday, 12 December 2015

Chin Well (3)

EU Renews Anti Dumping Duties on China Producers ?

Author: Icon8888   |   Publish date: Thu, 9 Apr 2015, 10:45 AM

Chin Well exports almost 75% of its products. Out of that, more than 50% are exported to the EU.

More than a decade ago, China producers had seized significant market share. To protect its own manufacturers, EU imposed anti dumping duties on China producers in 2009. Chin Well benefited from the duties as its products will also become cheaper compared to those from China (after duties).  As a result, Chin Well saw a surge in exports to EU, which contributed to majority of its profitability in recent years.

The duties expires in 2014. According to the article below, the EU has extended it for another 5 years until 2019.

In the absence of an announcement from Chin Well, I strongly advise that you undertake your own checking (with Chin Well, if possible) to make sure that the duties described in the article is indeed applicable to Chin Well's industry segment. 

Please don't blame me if the info turns out to be inaccurate or not relevant to Chin Well's products. 



27 March 2015

China Faces Renewal of EU Fastener Duties It Challenged

(Bloomberg) -- The European Union renewed for another five years tariffs on screws and bolts from China, extending protection that the Chinese government challenged at the World Trade Organization. 
The EU reimposed the duties as high as 74.1 percent on imports from China of iron or steel fasteners, used for everything from automotive parts to furniture. The levies target Chinese exporters such as Gem-Year Industrial Co. for allegedly having sold the fasteners in Europe below cost, a practice known as dumping. 
“There is a likelihood that, if measures were to lapse, dumping would recur,” the European Commission, the 28-nation EU’s trade authority in Brussels, said on Friday in the Official Journal. The five-year renewal will take effect on Saturday. 
The EU imposed the anti-dumping protection for five years in January 2009 to curb competition for European fastener manufacturers such as Italy’s Fontana Luigi SpA, prompting the Chinese government to file its first complaint against the bloc at the WTO. In December 2010, the Geneva-based global trade arbiter ruled against aspects of the European measures and gave the EU specific remedies. 
As a response, the EU in October 2012 reduced the levies to a maximum 74.1 percent from as high as 85 percent. The revised duties range from 22.9 percent to 74.1 percent, depending on the Chinese company. 

Chinese Exporters 

In mid-2011, amid the dispute with China at the WTO, the EU concluded that Chinese exporters of fasteners had shipped them to Europe via Malaysia to evade the trade protection. As a result, the bloc extended the maximum levy to Malaysia -- a move that’s also covered by the five-year renewal. 
Chinese exports of fasteners to the EU have almost evaporated since the anti-dumping duties were introduced. Chinese producers’ share of the EU market has been no more than 0.6 percent since 2010 compared with 26 percent in the 12 months through September 2007, the commission said on Friday. 
The measures don’t apply to stainless-steel screws and bolts from China. The EU applies a separate set of anti-dumping duties on those goods.

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