More than 1,000 fastener companies in China encounter EU anti-dumping "stick"

With the further spread of the financial crisis, the EU began to raise the big stick of anti-dumping to protect domestic enterprises in disguise.

Yesterday, the Shanghai Securities News learned from Zhejiang Haiyan Fastener Industry Chamber of Commerce, December 3, the EU anti-dumping committee voted in Brussels to impose anti-dumping import duties of up to 87% on Chinese steel fastener products, is expected to be formally implemented on February 8, 2009, when 1700 Chinese fastener enterprises will be affected.

Scramble to limit export price commitments

"Once Chinese fasteners are imposed anti-dumping duties of up to 87%, then the door of the EU will slowly close to Chinese enterprises." At present, it is a difficult time for Chinese fasteners. The export of Chinese fasteners to Europe has basically stopped, of which Ningbo is more affected; Sea salt comes in second, with about 25 to 30 percent of total exports affected." Xu Deren, executive vice president of Haiyan Fastener Industry Chamber of Commerce, stressed: "The impact of anti-dumping may spread. In the future, it is not ruled out that the United States will also raise anti-dumping sticks on Chinese fasteners."

It is understood that domestic fastener companies are looking for countermeasures. Xu Deren said that in mid-November, a number of fastener companies, industry associations and lawyers from Beijing Jintiancheng Law Firm, including Ningbo fastener companies, held a symposium and came up with a plan. That is, the "limit export price commitment" was reached, and the EU did not impose anti-dumping duties on fastener products priced at $1,300 / ton to $1,400 / ton. As for the specific price, both sides need to further confirm.

It is understood that the current anti-dumping involves too many fastener products, some product prices are higher than 1300 US dollars/ton. If the EU accepts a commitment to limit export prices, it will be better than the current imposition of anti-dumping duties, and the pressure on Chinese fastener companies will be reduced. As things stand, it is possible that the EU will accept a cap on export price commitments if it tries hard.

Eu officials said the bloc was studying a Chinese offer to cap export prices. If this commitment is accepted, the qualified fastener products will no longer be subject to anti-dumping duties.

"If the EU does not accept the export restriction commitment, we will have to find other ways, such as opening up new markets," Mr Suh said.

Eu companies in China will not be affected

Xu Deren told the Shanghai Securities News: "The situation is not good for China's fastener enterprises. 87 percent is also a relatively high punitive tariff that was previously expected."

In November 2007, the EU launched an anti-dumping investigation on steel fasteners such as bolts and nuts produced in China. On November 4, 2008, the European Commission recommended to the Council of the European Union that anti-dumping duties ranging from 63% to 87% be imposed on Chinese steel fasteners exported to the EU in the next five years.

Like most anti-dumping cases, the anti-dumping tax rate imposed by the responding enterprises is relatively low; Enterprises that do not respond to the lawsuit shall be levied at the relatively high anti-dumping tax rate of the responding enterprise. According to the information disclosed by the EU: Among the enterprises participating in the response, the tax rate of Shanghai Jiyou Company is 69.9%, Changshu City standard Parts Factory 63.1%, Dongguan Jinma Company 26.5%, Kunshan Chenghe Company 82.6%, Ningbo Jinding Company 67.3%, Ningbo Yonghong Company 81.5%, Yantai Anguo Special and Suzhou CELO tax rate is 0, and the tax rate of other responding enterprises is 78.1%. Enterprises that do not respond to the lawsuit will be charged a higher tax rate of 87.3%. There are about 1,700 fastener companies in China identified by the EU.

Xu Deren pointed out: "The two companies with a zero tax rate are both branches of EU fastener manufacturers in China. It shows that anti-dumping is unfair."