Controversial 58% crockery tax levied on Chinese ceramics

The shock "anti-dumping" tax, introduced on Thursday 15th November after just 24 hours’ notice, has been levied on Chinese ceramics imported to the EU. The move has met with ferocious criticism from most member states, including the UK.

The levy will see importers grapple with additional duties of up to 58.8% on the price of Chinese crockery. Overall the duties could amass to an estimated £231 million in added costs.

There are fears within the promotional merchandise industry that the tax will drastically increase the cost of items like mugs.

The decision by the European Commission came after a nine-month investigation into claims by an anonymous European manufacturer that Chinese producers set artificially low prices. However, the tax is unlikely to benefit European producers as they lack the capacity to meet demand and produce crockery cheaply enough. The expectation is that EU members will be forced to look for affordable ceramics in other low-cost Asian countries.

The British Retail Consortium (BRC) has reportedly said that the new EU tax is at odds with the principles of free trade and will lead to price rises for customers.

Fourteen of the EU’s 27 members voted against the tax at a meeting of trade specialists in October. Although the commission can impose provisional duties while an investigation continues, they do need to follow majority opinion of member states for definitive duties. The levy will be reviewed in May. European Importers and Chinese producers hope those EU members that voted against the measures will continue their opposition.

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