The European Union has this week initiated an official investigation into the possible circumvention of anti-dumping measures imposed on HDG from China, Kallanish learns from a note published in the Official Gazette.
As a result of the commencement of the investigation, the EU has also opened a system for the registration of such imports.
“The Commission has at its disposal sufficient evidence that the existing anti-dumping measures on imports of the product concerned originating in the People’s Republic of China are being circumvented by slight modifications of the product concerned,” the note says.
It adds that the evidence also shows that products to be imported in Europe from China have been slightly modified for the sole purpose of circumventing duties. This has been done for example “… by applying a thin oil-coating, by slightly increasing the content of carbon, aluminium, niobium, titanium, or vanadium, or by changing the coating from simple zinc or aluminium coatings to zinc-magnesium-aluminium coating,” the note continues.
AD duties of 17.2-27.8% on Chinese HDG were imposed in 2018. At the time, and following a request from carmakers, the measures were only imposed on HDG not specifically used in the automotive industry.
The current investigation will be run over a period of nine months, but meanwhile imports of HDG from China will be registered. It is interesting to notice that the current investigation comes just a few weeks after changes in the safeguard system opened new opportunities for importers of Chinese HDG. This was done by giving importers an opportunity to use quotas under the 4a group for material previously falling under the 4b group quotas.
