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Chinese ceramics anti-dumping investigation

09 Oct 2012

Anti-Dumping Duty (ADD) is an import duty charged in addition to normal customs duty and is applied by many countries around the world. The objective is to protect the home markets and avoid imported goods being sold for less than their normal value.

In March 2012, the EU launched an anti-dumping investigation against ceramic import products from China.

To avoid high anti-dumping taxes and the risk of bankruptcy, some Chinese production facilities may consider relocation to Africa or Eastern Europe, however such investment is out of reach for SMEs who would probably suffer a huge lack of revenue.

The EU originally launched an anti-dumping investigation in June 2010 of Chinese-made ceramic tiles involving exports worth $310 million and more than 1,400 exporters mainly from South China's Guangdong province.

In 2011, the EU levied 73% anti-dumping tax against Chinese ceramic tile imports. South Korea also taxes Chinese ceramic producers and exporters at 9.14% to 29.41%. In addition, Brazil is expected to launch a new anti-dumping investigation against Chinese unglazed tiles in the latter half of 2012.

To reduce the 73% provisional tax rate published on March 17, 2012 by the EU, Chinese enterprises and industrial associations have appealed and hope to reach an agreement for anti-dumping taxes of between 26.3 % and 69.7 %.

On 16 February 2012, the Official Journal published a notice of initiation of an anti-dumping procedure concerning imports of ceramic tableware and kitchenware originating in the Chinese mainland.

A provisional decision will be taken on November 15, 2012 with immediate application. A final decision should be released on May 15, 2013.