Within a decision of the European Commission (EC) published in the Official Journal, the European Union (EU) has extended the anti-dumping import duty levied on Chinese exporters of open mesh fabrics of glass fibres to exporters from Taiwan and Thailand.

The fabrics are mainly used as a reinforcement material in construction, and the 62.9% anti-dumping duty on Chinese imports was introduced originally in 2011. Its extension follows an investigation, requested in April 2012 by four EU fibre producers, into the possible circumvention of the duty by fibres consigned from Taiwan and Thailand, whether declared as originating in Taiwan and Thailand or not.

It was confirmed that the producers' request contained sufficient evidence that, following the imposition of the original duties, a significant change in the pattern of trade involving exports from China, Taiwan and Thailand to the EU occurred, for which there was insufficient due cause or economic justification other than the imposition of the duty on direct Chinese exports.

There was also evidence, it was said, that the prices of open mesh fabrics of glass fibres consigned from Taiwan and Thailand were dumped in relation to the normal value established during the original EU investigation.

Although there was no input into its investigation from China, Taiwan or Thailand, the EC's decision stated that there could be no doubt that the overall decrease of exports from China to the EU, and the parallel increase of both exports from Taiwan and Thailand to the EU and of exports from China to Taiwan and Thailand respectively, was motivated by the imposition of the duty in 2011.

Under the EU regulation, for an extension to the duty, the change in the pattern of trade should "stem from a practice, process or work for which there is insufficient due cause or economic justification other than the imposition of the duty." In this case, the conclusion was that the "change in the pattern of trade stemmed allegedly from the trans-shipment of certain open mesh fabrics of glass fibres originating in China via Taiwan and Thailand."

January 18, 2013

Source: Tax News