13 May 2016
Turkey Maintains Anti-Dumping Duties on Pot, Pan and Teapot Lids of Glass Originating in Hong Kong and in Mainland China
Hong Kong traders with export interests in Turkey may like to know that the anti-dumping measures on pot, pan and teapot lids of glass originating in Hong Kong and in mainland China, as well as in Indonesia, are confirmed as remaining in force. This is laid down in Decree No. 2016/10 on the Prevention of Unfair Competition from Imports, published in the Turkish Official Journal No. 29687 dated 17 April 2016.
The original measures targeting the products concerned originating in mainland China, which are maintained, had been introduced as 0.91 USD/kg by Decree No. 2003/22 on the Prevention of Unfair Competition from Imports, published in the Turkish Official Journal, No. 25322, dated 20 December 2003. These measures were confirmed as remaining in force after an expiry review, combined with an anti-dumping investigation concerning the products concerned originating in Hong Kong and Indonesia, which was completed by Decree No. 2010/12 on the Prevention of Unfair Competition from Imports, published in the Turkish Official Journal, No. 27589, dated 23 May 2010.
The rates that are maintained within the framework of new Decree No. 2016/10 for pot, pan and teapot lids of glass are illustrated in the following table. These therefore continue to be applicable to imports from Hong Kong, mainland China and Indonesia as from 17 April 2016:
Within the framework of the expiry review investigation, which was initiated on 21 May 2015 in order to evaluate the likelihood of recurrence of dumping and injury should the measures be repealed, two exporting companies and three importing companies submitted their responses to the Turkish Ministry of Economy.
The findings of the investigating authority reveal that the countries under investigation had spare capacity which could, it was felt, easily be channelled to Turkey. Furthermore, it was stated that low prices were the main factor which created demand for the product concerned originating in mainland China and Indonesia.
The investigating authority’s position with regard to the imports from Hong Kong requires particular attention as the measures were maintained despite negative undercutting margins and an insignificant volume of imports. Indeed, no imports were made from Hong Kong during 2012 and 2013. Moreover, price undercutting and depression levels of the product concerned imported from Hong Kong were found to be negative. However, the investigating authority disregarded these negative margins since – they believe – the import prices from Hong Kong might not reflect the reality, given that such imports were made in low volumes in 2014.
During the investigation, Turkey’s domestic industry was found to face problems in terms of efficiency and return on investment, despite its positive performance in terms of production, capacity, capacity utilisation, domestic sales, market share, profitability, employment, cash flow and growth. The investigating authority further emphasised the fact that Turkey’s domestic industry could not reflect the increase of production costs spontaneously on its prices.
In conclusion, it was determined that the definitive measures were not sufficient to remove the injury and consequently that the Turkish domestic industry did not fully recover. Moreover, as the exporting countries were found to have spare capacity as well as the capability of easily and quickly penetrating distribution levels, the Turkish authority’s concerns were further strengthened. The latter saw these as factors demonstrating that such capacity would be channelled to Turkey at significantly low prices, which would, in turn, undercut and depress the Turkish domestic industry’s prices.
Hong Kong traders may also like to know that Turkey has introduced additional safety measures in the realm of consumer goods by banning novelty lighters from the market. This is laid down in the Decree amending the Decree on the Determination of Safety Risks for Consumer Goods published in the Turkish Official Journal No. 29701, dated 3 May 2016. Hong Kong traders should be informed that the decree provides for a definition for novelty lighters. According to the decree, a novelty lighter is one that:
- has a shape that is generally known to children younger than 51 months or resembles an object used by the latter;
- may have entertaining audio or animated effects;
- may be of appealing shape or form (e.g. cartoon characters, toys, guns, watches, phones, musical instruments, human body parts, animals, food and drinks);
- may have musical notes, flashing lights, moving objects or other entertaining features.
Pursuant to the decree, novelty lighters shall not be placed on the Turkish market as of 3 August 2016. The ban extends also to lighter-holders which are designed to hold lighters and to parts which might be fixed to the lighter at a later stage. However, lighters printed with logos, labels and ornaments, and lighters covered by artwork or with covers that can degrade due to heat are exempted from the definition of novelty lighters.