Chinese fastener companies unite to repel the high anti-dumping tax rate of the European Union


Release time:

2022-09-27

The EU order that has been away for 7 years has returned! In the past two days, the first batch of fasteners sent by Haitang Standard Parts Factory in Haiyan County to the EU market began to be shipped one after another. After a seven-year cross-border tug of war, Chinese fastener companies have finally joined forces to repel the EU's high anti-dumping tariffs and return to the EU market.

The EU order that has been away for 7 years has returned! In the past two days, the first batch of fasteners sent by Haitang Standard Parts Factory in Haiyan County to the EU market began to be shipped one after another. After a seven-year cross-border tug of war, Chinese fastener companies have finally joined forces to repel the EU's high anti-dumping tariffs and return to the EU market.
"We have been working hard for 7 years for this moment, and victory is hard won!" exclaimed Fu Shengbo, the general manager of Haitang, one of the "staunch enterprises" actively participating in collective litigation. On February 27th this year, the European Commission decided to officially lift anti-dumping measures against Chinese steel fasteners. As soon as the announcement is released, the European "little partners" who have been cooperating with the seawall for more than ten years will immediately turn around. Other fastener companies in Jiaxing have also returned to Europe one after another.
"This is a prolonged cross-border lawsuit," said Qian Yueping, Secretary General of Jiaxing Fastener Association. In 2009, the European Union began imposing anti-dumping duties of up to 85% on China's fastener products, directly affecting China's exports to Europe of nearly 1 billion US dollars. As the main area involved in the case, Jiaxing's fastener industry has suffered a heavy blow. According to data from the Municipal Bureau of Commerce, from 2008 to 2015, the export value of fasteners from the city to the European Union decreased from 332.88 million US dollars to 154.28 million US dollars, a decrease of 54%; The export value of the involved product to the European Union decreased from $141.49 million to $9.85 million, a decrease of 93%. Many companies are forced to withdraw from the EU market.
Faced with unfair anti-dumping duties, Chinese fastener companies represented by Jiaxing enterprises have risen up to fight back, pushing the Ministry of Commerce to resort to the WTO dispute resolution mechanism for EU related legislation and anti-dumping measures. On July 15, 2011, the World Trade Organization ruled in favor of China and demanded that the EU complete relevant legal amendments by the end of 2012. China has won its first battle against the European Union in the World Trade Organization.
However, the EU only reduced the anti-dumping duty to 74.1% during the enforcement of the ruling, and adjusting the tax rate was just a scratch, while other rulings were not enforced. In October 2013, the Chinese side launched another "enforcement lawsuit" and won the lawsuit again on January 18 of this year.
"Winning is difficult, but clean!" Zhang Jiansheng, Director of the Municipal Bureau of Commerce, believes that this victory means that the highest barrier built for our city's fastener enterprises will be shattered, and the door to the EU market will be opened again.
"In addition to bringing substantial benefits to enterprises, this case also has significant institutional significance." According to Li Ye, a lawyer at Jintiancheng (Beijing) Law Firm who undertook the litigation, this case is the first in China to challenge the EU's abuse of substitute countries in the WTO dispute and achieve a complete victory. This case has shaken the anti-dumping legislation implemented by the European Union against China for a long time, and has also changed the unreasonable practices in EU anti-dumping investigations. It will be beneficial for Chinese enterprises to improve their effectiveness in responding to EU anti-dumping investigations.
"The fastener industry is large but not strong, but it is truly commendable that the entire industry can actively respond, not retreat or give up!" Chen Fuli, Deputy Director of the Legal Department of the Ministry of Commerce, said that the Jiaxing experience of the "four body linkage" between the Ministry of Commerce, local commerce authorities, industry associations, and involved enterprises in the China Europe fastener anti-dumping case has become an effective experience for China's commerce department to cope with international trade frictions.