EU set new ceramics duty rate

The European Union have set definitive anti-dumping duties on ceramic table and kitchenware originating from China this month. This follows on from the shock anti-dumping tax which was introduced, after just 24 hours notice, in November 2012. The provisional duties imposed on Chinese ceramics were up to 58.8%.

EPPA filed an official complaint with the EU Trade Commissioner, resulting in the meeting with the Trade Injury Team. One of these meetings was also attended by the BPMA to explain the expected consequences for the UK/European promotional products industry.

Following the opposition the European Commission recommended a reduced duty rate and the definitive anti-dumping duties now range from 13.1% and 23.4% for cooperating Chinese companies (representing around 400 companies) and 36.1% for non-cooperating companies. New exporters will be subject to a duty rate of 17.9%.

Anti-dumping taxes are imposed to stop companies exporting a product to the EU at prices lower than the normal value of the product (the domestic prices of the product or the cost of production) in its own domestic market. In this case, however, many have argued that the tax is unlikely to benefit European producers as they lack the capacity to meet demand and produce crockery cheaply enough. The reduced duty rate may appear to be a small victory but it remains to be seen how it will affect promotional merchandise suppliers and the market overall. The duties may result in EU members looking for affordable ceramics in other low-cost Asian countries.

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