EU could impose duties up to 80% on China's polyester fibers - Emerging Textiles - Textile Information -

After comparing production costs in China and the United States
EU could impose duties up to 80% on China's polyester fibers

4 March 2005 - The European Union could impose additional anti-dumping duties up to 80% on imports of polyester staple fibers from China, EU's Commission just proposed following a 1-Year investigation. Duties of 21% on PSF imports from Saudi Arabia were also suggested. Taiwanese fibers would no more be punished while duties on Korean PSF could be lowered.

Brussels is going to suddenly put an end to China's threat on EU's market for polyester staple fibers.
EU's Council of Ministers will have to decide

After being petitioned by the European fibre industry association CIRFS, EU's anti-dumping team investigated for months before proposing additional duties up to 80.20% on PSF from China.

The 60-page proposed Regulation was officially sent to the Council of Ministers which will decide if anti-dumping are finally imposed.

EU's Commission also suggests to take sanctions against polyester staple fibers from Saudi Arabia by applying an anti-dumping duty of 20.90%.

In sharp contrast, duties that were already imposed on PSF from Taiwan would be removed while those slapped on Korean PSF would be substantially lowered.
Comparing with Wellmann's costs

In oder calculating dumping margins of China's exporters, EU's anti-dumping office compared production costs in China and in the United States.

More precisely, US PSF maker Wellmann supplied EU's Commission will necessary data.

The choice of a US producer was strongly criticized by three exporters in China.

Companies in the PRC which accepted transmitting their data to EU's Commission will be subject to much lower duties ranging from 4.9% for Far Eastern Industries in Shanghai to 26.30% for Cixi Jiangnan Chemical fiber (see our table below).

At the same time, anti-dumping duties on Korean PSF could be reduced, excepted for products from Huvis (5.7%). The most current anti-dumping duty could fall from 20.20% down to 10.6% or even 6%, depending on exporters.

Taiwanese producers could even be cleared of any duty in the futures, including Nan Ya and Shinkong.
China's polyester fabrics being investigated

The European Union repeatedly imposed anti-dumping duties on PSF from a series of producing countries in the past decade.

In addition to Korea and Taiwan, duties are also levied on PSF imports from Australia, Belarus, India, Indonesia and Thailand (see our table below).

EU's Commission is also investigating imports of polyester filament fabrics from China. The final decision could reflect the way Brussels will fight any surge in imports from China in the coming months and years.

Rather than using the so-called China safeguards that will expire in a few years, EU's executive arm could prefer expanding its anti-dumping actions.

Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of polyester staple fibres originating in the People's Republic of China and Saudi Arabia, amending Council Regulation (EC) No 2852/2000 imposing a definitive anti-dumping duty on imports of polyester staple fibres originating in the Republic of Korea and terminating the anti-dumping proceeding in respect of such imports originating in Taiwan (presented by the Commission) (.pdf file)