EU intends to investigate carbon steel fasteners from Malaysia but originating in China

Recently learned from the European law firm (Hammonds LLP) that the European Commission is preparing to launch an anti-circumvention investigation on fasteners imported from Malaysia but originating in China.

According to Eurostat data, in 2008 carbon steel fasteners imported from China were 73.1 million euros, accounting for 62.73% of the European fasteners' import share; during the same period, European products imported from Malaysia were 22.76 million euros, accounting for At 1.38%, similar products imported from Taiwan were 36,292 million euros, accounting for 19.08%. From July 2009 to June 2010, European carbon steel fasteners imported from China amounted to 51.75 million euros, which accounted for 4.97% of the European fasteners' import share; while during the same period Europe imported 75.54 million euros from Malaysia's similar products. This accounted for 13.6% of the total, and similar products imported from Taiwan accounted for 377.82 million euros, accounting for 44.99%.

It can be seen that since the EU imposed anti-dumping duties on my fastener products in February 2009, China’s exports of fasteners to Europe have dropped sharply. Conversely, exports of similar products from Malaysia and Taiwan have doubled and proliferated. These two countries and regions accounted for the EU. The share of total imports has multiplied in just over a year.

If the investigation confirms the existence of anti-circumvention of the export of carbon steel fasteners, the EU's national anti-dumping tariff rate on the implementation of our fasteners will be extended to similar products imported from Malaysia, regardless of their true origin, unless certain Malaysian companies Can be proved in the investigation that there is no circumvention. At the same time, the extension of the applicable anti-dumping duties will be retroactively initiated from the date on which the anti-circumvention investigation is initiated. If the anti-dumping measures against China are extended after the final review, the equivalent measures for Malaysia are automatically extended for the same period.

In addition, if the anti-circumvention investigation cooperates with the customs investigation procedure initiated by the EU Anti-Fraud Bureau and the customs of EU member states, importers of products imported into the EU will be retrospectively filled by the customs of each member state for products imported from Malaysia. The anti-dumping duty levy will be calculated from the date of implementation of anti-dumping measures against China on February 9, 2009. Customs in EU member states are likely to impose fines separately and even pursue the importer’s criminal liability.

Obviously, once the EU conducts anti-circumvention taxation, EU importers who have suffered losses will necessarily pursue the export of these products. In that case, many fastener companies suspected of circumvention actions will face large claims.

Of course, not all Malaysian companies (including Chinese companies investing in Malaysia) will be levied against tax avoidance. These companies can participate in the investigation and cooperate to prove that they have not engaged in circumvention through data and information and that their products can obtain local origin.

Hereby, it is important to remind fastener export enterprises that have re-exported to Europe through Malaysia that they must do a good job of preparations and preventive measures to standardize export procedures so as to calmly deal with possible anti-circumvention investigations.