The European Union Renewed Tariffs on Stainless-Steel Screws and Bolts

The European Union renewed tariffs on stainless-steel screws and bolts from Chinese Mainland and Taiwan for another five years to curb competition for EU manufacturers including Italy's Bontempi Vibo SpA. The EU reimposed the import duties as high as 27.4 percent on stainless-steel fasteners, seeking to aid European producers that also include Bulnava Srl of Italy, Germany's Reisser Schraubentechnik GmbH and France's Ugivis SA. The levies punish Chinese and Taiwanese exporters for selling the fasteners in Europe below cost, a practice known as dumping. "There is a likelihood of continuation of dumping on the union market in case the current anti-dumping measures are removed, " the 27-nation EU said in a decision on Jan 6, 2012 in Brussels. The five-year renewal will take effect after being published in the EU Official Journal. The combined Chinese and Taiwanese share of the EU market for stainless-steel fasteners was 7.2 percent in the 12 months through September 2010 compared with 6.9 percent in 2007, according to the bloc. The anti-dumping duty rates are up to 23.6 percent for Taiwan and as high as 27.4 percent for Chinese Mainland, depending on the company. The renewal is the outcome of an EU investigation opened in November 2010, when the levies were originally due to expire. The duties automatically stayed in place during the probe into whether to prolong them. EU Market Share When it started the expiry review, the EU let lapse separate anti-dumping duties on stainless-steel fasteners from Indonesia, Thailand and Vietnam. Other countries that export these fasteners to Europe include India, the Philippines and Malaysia, whose combined share of the EU market was 36 percent in the 12 months through September 2010 compared with 22.6 percent in 2007, according to the bloc. "It appears that exporters in other third countries, particularly India, the Philippines and Malaysia, have profited from the existence of anti-dumping measures" against Chinese Mainland and Taiwan, the EU said on Jan 6, 2012. In January 2009, the EU imposed separate anti-dumping duties as high as 85 percent on iron or steel fasteners from China. That case, which excludes fasteners made of stainless steel, prompted the Chinese government later that year to file its first complaint against the EU at the World Trade Organization. In December 2010, the WTO ruled against aspects of the European duties and gave the EU specific remedies. Source:chinafastener.com