34
No preliminary tariffs in
antidumping case
European Commission issues Interim Report
At the beginning of August the European Commission issued an Interim Report for disclosure to interested parties, confirming that provisional
antidumping measures would not be applied to carbon steel fasteners imported from the People’s Republic of China. The investigation will,
though, continue into the definitive phase.
The twenty six page report concluded Moldova. The Chinese Fastener Industry Asso- Forge may have trading links with one of the
“There are several crucial elements of the ciation has told this magazine that EC fastener primary complainants.
investigation which merit further careful investigators joined colleagues pursuing the According to the report, preliminary
analysis: wire investigation in visiting a number of wire calculations showed “considerable dumping
• The issue of standing still needs to be producers in China earlier in the year. margins.” It stresses, though, that these
verified against the recent allegations by the Seven companies have been accorded calculations, and also those in relation to price
importers and the lack of co-operation from ‘Individual Treatment’. These include CELO undercutting, “can only be considered
some Community producers. Suzhou Precision Fasteners Co., Ltd and Yantai approximate and need to be further
• The impact of the alleged type and quality Agrati Co., Ltd.. Another company is Hong examined.”
differences needs to be further analysed and Kong registered and four are Chinese owned. The report affirms that imports of the
quantified and properly reflected in the ‘Individual Treatment’ means that individual specified product types from P.R. China
dumping and injury calculations. submissions from these businesses are increased 180% from 2003 to 2007, resulting
• Some important issues are still unclear, considered and different tariff levels from in market share increasing from 17 to 26%. It
affecting injury and causality, such as the those set generally may eventually be applied. also notes that Community industry
amount of price undercutting and the impact The Commission provisionally concludes (EU fastener producers) market share fell by
of the dumping margins. that India, as proposed by the complainants, 8.8% in less than 3 years. The report,
• Post-Investigation Period developments in is the “most appropriate and reasonable however, emphasises that investigators have
terms of dramatic increases in raw material analogue country”. This decision is effectively not been able, at this stage, to establish
prices could lead to significant price by default since producers from Taiwan and whether the Community industry suffered
increases for the users and consumers. elsewhere, unsurprisingly given their material injury or whether such injury was
potential to gain from the application of tariffs directly as a result of imports from PRC. In its
In the light of the above it is proposed not on Chinese exports, did not respond to EC ‘causation’ section the report does suggest
to impose provisional measures and to invitations to cooperate in the investigation. investigators are also considering the
continue the investigation.” Two Indian companies - Pooja Forge Ltd., potential for future injury. The report refers to
The body of the report reviews the process Faridabad, and Mohindra Fasteners Ltd, New a “dynamically evolving situation” and goes
to date and cautiously draws preliminary Delhi - did co-operate although the report on to remark that having already lost most of
conclusions. states that only one company provided its market share to imports in some market
It confirms that market economy status sufficiently detailed data, understood to be segments the Community industry “could also
was refused to 114 Chinese producers based Pooja Forge, to be used as a basis for lose the market in its current strong products,
on detailed investigation of a sample of nine establishing normal value. The selection of if the present trends continue”.
companies. This means that domestic prices the analogue country and the normal value Representatives of associations and other
from an ‘analogue’ country (see second obtained from cooperating companies is interested parties have been invited to attend
column) will be compared to Chinese export pivotal in determining the level of eventual a hearing in Brussels, focusing on the scope
prices to determine whether dumping exists antidumping tariffs that may be applied. of products covered by the investigation and
and at what margin. Four applications for MES Distributor representatives strongly opposed the comparability of EU and Chinese products
were rejected on the basis that false or the choice of India from the beginning and for the purposes of calculating dumping and
misleading information had been provided. have reiterated those objections in response price undercutting margins.
However, the overriding reason for rejection to this report. Objections include that both The deadline for a definitive decision on
was that the cost of wire rod used to produce Indian companies “deal at the high end of the the case, which requires a majority of
fasteners in China fell significantly below automotive market”, implying that prices member states to affirm the Commission’s
world price levels. A separate investigation is obtained are not directly comparable with all decisions, is 15 months from the start of the
probing allegations of dumping of wire rod of the products included in the investigation. investigation, so before or on 8th February
from P.R. China, as well as from Turkey and There have also been suggestions that Pooja 2009.
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