On September 17, the European Union (EU) imposed anti-dumping duties ranging from 14.1 percent to 56.2 percent on certain finished polyester filament fabrics from China. The decision was made after a nine-month investigation into the effect of these goods on the European market.

 

The announcement was made on September 16, according to China Chamber of Commerce for Import and Export of Textiles (CCCT).

 

The EU's official journal listed anti-dumping duties for 45 Chinese textile enterprises, most of which are subject to duties of 14.1 percent or 37.1 percent.

 

One company, Wujiang Canhua Import and Export Co Ltd, will face a tariff of 56.2 percent.

 

The anti-dumping duties are payable for five years.

 

The decision was made after a nine-month investigation into the effect of these goods on the European market.

 

The output and market share of European products dropped by 20 percent in the EU market from April 2003 to last March, according to a Xinhua News Agency report.

 

Xinhua quoted the EU's investigation as saying that Europe's demand for polyester filament fabrics remained stable for the whole period at around 732 million running meters, while China's exports of the product to the EU grew from 135 million running meters in 2000 to 288 million running meters during the investigation period.

 

"The anti-dumping duty of 56.2 percent effectively puts an end to Wujiang's exports to Europe," said Sun Huaibin, spokesman for the China Textile Industry Council.

 

Other lower tariffs will also have a huge impact on the affected Chinese firms, Sun said.

 

He added that the profits for Chinese textile enterprises are already very low, partly due to the revaluation of the Renminbi, and the increasing costs of energy, raw materials and labor.

 

"These enterprises are facing a very difficult situation," Sun said.

 

The EU first made dumping charges on March 15 this year, which resulted in protests from Chinese producers. These firms submitted an application to the Chinese Ministry of Commerce (MOFCOM) to challenge the ruling with the World Trade Organization.

 

The EU's preliminary decision was to levy duties of 20 percent on 25 enterprises granted market economy status, and duties ranging from 26.7 percent to 85.3 percent on another 31 firms.

 

(China Daily September 22, 2005)