6
Anti-dumping proposal published
On 6 January the European Commission Directorate for Trade Defence published its ‘Proposal for a
Council Regulation’ imposing a definitive anti-dumping on imports of certain iron and steel fasteners
originating in the People’s Republic of China. Ministerial consideration of the proposal was scheduled for
26 January so the probability is that, by the time you read this, a final decision in the AD525 fastener
case will have been published so we recommend checking at www.fastenerfair.com News for the latest
information.
Whatever the outcome of the case the proposal document is worth studying. It is similar to the proposal on
which trade representatives of the members states voted on 3 December, with an 15 to 12 majority in favour
of the Commission’s recommendation. The document provides a detailed insight into the investigation, the
counterarguments and the Commission’s analysis and decisions.
Products covered
Tariffs are proposed across all ten of the CN codes cited in the original complaint accepted for investigation in
November 2007. The codes and typical product types included are shown in Table 1(below).
Table one
CN Codes and general description for fasteners of iron or steel other than
stainless steel included in the proposal for definitive antidumping duties
CN Code Description
7318 12 90 Woodscrews other than coachscrews
7318 14 91 Spaced thread screws
7318 14 99 Self tapping screws
7318 15 59 Slot and cross recessed screws (with or without nuts or washers)
7318 15 69 Hexagon socket head screws
7318 15 81 Hexagon screws and bolts <800MPa
7318 15 89 Hexagon screws and bolts = or > 800MPa
7318 15 90 Screws and bolts with heads other than hexagonal
7318 21 00 Spring and lock washers
7318 22 00 Other washers
Important: These descriptions are not exhaustive and must not be considered
as definitive. It is essential to check under which CN code products have
previously been imported. If necessary advice should be taken from Customs
Proposed anti-dumping duty levels
The anti-dumping duty proposed for companies that did not cooperate with the investigation or were
accorded individual treatment, is 87.3%.
Imports from approximately 100 Chinese factories, which did cooperate, have a 78% duty proposed. Specific
duty levels are also proposed for nine companies accorded ‘individual treatment’. These include subsidiaries of
two European producers for which a 0% tariff is proposed. One Hong Kong registered company has a proposed
26.5% tariff. For the remaining Chinese factories accorded IT duties range between 63.1% and 81.5%.
Key issues
The proposal reveals the complexity of the investigation and the depths to which Commission investigators
delved to arrive at the recommendations. Some pivotal decisions are highlighted here.
No differentiation between fastener types
The proposal clearly notes: “Based on their basic physical and technical characteristics and end uses, all
fasteners are considered to constitute a single product for the purpose of the proceeding.” This ruling is significant.
Opponents argued that products destined for the DIY market should be excluded on the grounds they were not
substitutable from European manufacturing sources. Arguments were also presented that there were different
physical and technical characteristics for fasteners imported from China that meant they were destined for lower
end applications and not appropriate for high end use. The Commission proposal dedicates seventeen paragraphs
to refuting these and related counterarguments concluding: “the fasteners produced and sold by the Community
industry in the Community, fasteners produced and sold on the domestic market in the PRC and those produced
and sold on the domestic market in India, which served as an analogue country, and fasteners produced in the
PRC and sold to the Community are alike within the meaning of Article 1(4) of the basic Regulation.”
Cost of steel wire rod
The difference in the cost of wire rod between China and the rest of the world was identified as a major
factor. After consideration of market economy applications the Commission says: “it is undisputable that prices
of steel wire rod on the Chinese domestic market are significantly below prices on other markets” adding, “it is
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