EPPA Issues Update On European Commission Anti-Dumping Regulations

27/02/2013 12:00 - 425 Views

Last week, the European Promotional Products Association (EPPA) updated its members on a European Commission regulation applying an anti-dumping duty on imports of ceramic tableware and kitchenware originating in China.

The European Commission Directorate-General for Trade had imposed the provisional anti-dumping duty—also known under number 1072/2012—in mid-November. After the European Commission enforced the provisional anti-dumping duty, EPPA filed an official comment to EU Trade Commissioner Karel de Gucht and was invited to be heard officially by the Trade Injury Team, which is in charge of the anti-dumping investigation.

The hearing took place last week in Brussels. EPPA was able to explain thoroughly what the expected consequences for the promotional products industry will be, if the provisional measures are definitively imposed.

These consequences include:

• Promotional products importers within the European Union will move their production facilities to other low-wage countries. This will provide a huge risk regarding CSR and product safety and food regulations. In the current business climate, these issues are well controlled due to the expertise in China.

• The ceramic tableware and kitchenware that is produced within the European Union is mostly high-quality ceramic and porcelain. The promotional products industry sells mainly low-cost products. Production facilities within the European Union are not capable of meeting the demand, price, delivery times and consistency of the low-cost articles the industry uses.

• Expected decrease of turnover in this specific product category as customers will choose other products due to the high prices. This expectation will not support the overall goal of the anti-dumping duty, which is to stimulate production of ceramic tableware and kitchenware within the Union.

• Another threat is that customers will choose to use other forms of advertisement instead of promotional products, which does not benefit the industry either.

The Trade Injury Team heard EPPA’s arguments and will take them under consideration. They will write their definitive findings over the next couple of weeks, after which all interested parties (including EPPA) will have 10 days to comment on the findings. Finally, the European Commission will propose to the European Council to either impose the measures definitively or terminate the case without any measures. The council will make its final decision on May 22.

February 26, 2013

Source: pubs.ppai.org