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Anti-dumping Actions

Commodity: Threaded tube or pipe cast fittings, of malleable cast iron, excluding bodies of compression fittings using ISO DIN 13 metric thread and malleable iron threaded circular junction boxes without having a lid, currently falling within CN code ex 7307 19 10 (TARIC code 7307191010).

Countries/Economies: The Chinese mainland and Thailand.

Action: On 8 May 2018, the European Commission published a notice of initiation of an expiry review of the anti-dumping measures applicable to imports of threaded tube or pipe cast fittings, of malleable cast iron, originating in the Chinese mainland and Thailand. The request was lodged on 13 February 2018 by four EU producers (‘the applicants’), said to be representing more than 95% of the total Union production of the product under review. The measures currently in force are a definitive anti-dumping duty imposed by Council Implementing Regulation 430/2013. The applicants have claimed that it is not appropriate to use domestic prices and costs in the Chinese mainland due to the existence of significant distortions. To substantiate their allegations, the applicants referred to the Commission staff working document dated 20 December 2017 titled ‘Report on Significant Distortions in the Economy of the PRC for the purposes of the trade defence investigations’, describing the specific circumstances in the countries concerned and, in particular, the market distortions for ferrous and non-ferrous metal sector, gas and electricity. In light of the information available, the Commission considers that there is sufficient evidence to show that, due to significant distortions affecting prices and costs, the use of domestic prices and costs in the country concerned is inappropriate, thus warranting the initiation of an investigation on the basis of Art 2(6a) of the Basic Regulation. The Commission may use the sampling procedure.

Dates: Subject to the provisions of the notice, all interested parties have been invited to make their views known, submit information and provide supporting evidence. Unless otherwise specified, such information and supporting evidence must reach the Commission within 37 days of the date of publication of the notice. All interested parties may request to be heard by the Commission investigation services. Any request to be heard must be made in writing and must specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation the request must be submitted within 15 days of the date of publication of the notice. Thereafter, a request to be heard must be submitted within the specific deadlines set by the Commission in its communication with the parties. The investigation will be concluded within 15 months of the date of the publication of the notice.

 

Commodity: Certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121, currently falling within CN codes 4011 20 90 and ex 4012 12 00 (TARIC code 4012120010).

Countries/Economies: The Chinese mainland.

Action: On 7 May 2018, the Official Journal published Commission Regulation 2018/683 imposing a provisional anti-dumping duty on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the Chinese mainland, and amending Implementing Regulation 2018/163. It may be recalled that on 30 June 2017, the coalition against unfair tyres imports (‘the complainant’) lodged a complaint on behalf of producers said to be representing more than 45% of the total Union production of new and retreaded tyres for buses or lorries. The anti-dumping investigation was launched on 11 August 2017. On 14 October 2017, the Commission initiated an anti-subsidy investigation with respect to the product concerned and started a separate investigation. On 2 February 2018, the Commission published Implementing Regulation 2018/163 (‘the registration regulation’) making imports of the product concerned subject to registration as of 3 February 2018 onwards. The Commission decided to select Brazil as the most appropriate analogue country for the calculation of normal value. As regards injury to the Union industry, overall, the injury indicators showed the Commission that the Union industry as a whole has been under intensive pressure. The Regulation notes that there was a reduction of production capacity, investment and employment over the period of investigation and a significant loss of market share despite decreasing sales prices. Market share was gained by imports of the product concerned at the expense of the Union industry, irrespective of segmentation, resulting in over 4,200 jobs lost. While still around 14% for the industry as a whole, profitability declined by 1.9 percentage points between 2014 and the investigation period (IP) and by 3 percentage points between 2015 and the IP. Moreover, the relative trend in profitability for the entire Union industry is also decreasing. On the basis of the conclusions reached by the Commission on dumping, injury, causation and Union interest, provisional measures have been imposed.

Rates: The provisional anti-dumping duties applicable in EUR per item of the product concerned ranges from EUR 52.85 to EUR 82.17 for named entities and is EUR 82.17 for all other companies.

Dates: Commission Regulation 2018/683 entered into force on the day following that of its publication in the Official Journal. Article 1 of the Regulation, stipulating the applicable rates of duty, shall apply for a period of six months.

 

Commodity: Cycles, with pedal assistance, with an auxiliary electric motor, currently falling within CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711609010).

Countries/Economies: The Chinese mainland.

Action: On 3 May 2018, the Official Journal published Commission Implementing Regulation 2018/671 making imports of electric bicycles originating in the Chinese mainland subject to registration. It will be recalled that on 20 October 2017 and on 21 December 2017 the European Commission announced the initiation of an anti-dumping proceeding and of an  anti-subsidy proceeding respectively, with regard to the product  concerned. This followed complaints lodged by the European Bicycle Manufacturers Association (‘the complainant’ or ‘EBMA’) on behalf of producers said to be representing more than 25% of the total Union production of electric bicycles. The complainant requested that imports of the product concerned be made subject to registration so that measures may subsequently be applied against those imports from the date of such registration, provided all conditions set out in the basic Regulations for doing so are met. According to the complainant, registration is justified as the product concerned is being dumped and subsidised, and significant injury to the Union industry is being caused by an acceleration of low-priced imports which will undermine the remedial effect of potential definitive duties by allowing stockpiling ahead of the 2018 selling season. The Commission has concluded that there is sufficient evidence to justify making the imports of the product concerned subject to registration. This is done for the purpose of ensuring that, should the investigations result in findings leading to the imposition of anti-dumping and/or countervailing duties, those duties can, if the necessary conditions are fulfilled, be levied retroactively on the registered imports in accordance with the applicable legal provisions.

Dates: Commission Implementing Regulation 2018/671 entered into force on the day following that of its publication in the Official Journal. Registration shall expire nine months following the date of entry into force. All interested parties have been invited to make their views known in writing, to provide supporting evidence or to request to be heard within 21 days from the date of publication of the Regulation.

Content provided by Picture: HKTDC Research
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