The European Commission has published its ‘Definitive’ ruling on the tariff levels that it proposes to apply to aerial work platforms made in China when they are imported into the European Union. Or to use its own terminology: “AD698 - Anti-dumping investigation relating to imports of mobile access equipment from the People’s Republic of China.”
The move follows a complaint from the ‘Coalition to Restore a Level Playing Field in the EU Mobile Access Equipment Sector’, which appears to be made up of Manitou and Haulotte. See: EU anti-dumping investigation into Chinese platform manufacturers and the earlier announcement - EU AWP dumping - tariffs set
The original complaint stated that “Chinese manufacturers have been selling aerial work platforms in Europe at ‘dumping’ prices, which has the potential to damage European based industry, reducing their revenues, profitability and employment levels.”
The 'Definitive' and one assumes final ruling, was published on Tuesday and comprises 48 pages of closely typed legalistic text. It seems to indicate that it the commission did not initially find clear cut evidence of dumping prices being applied. But after further submissions or ‘evidence’ and direction, from the European manufacturers, as well as extensive input from Chinese manufacturers, mostly those that were investigated or ‘sampled’ - JLG and Genie, Sinoboom and Dingli - along with the Chinese government, Chinese Chamber of Commerce for import and export of Machinery and Electrical products (‘CCCME’) Romanian sales company Construct Machines and German distributor Norbert Wienold - both of which sell Genie products - and French rental company Kiloutou, it has reached a conclusion.
After listening to and reviewing all of the submissions it has deemed that there was some evidence of dumping, but its main evidence appears to be the rapid surge in sales of Chinese built products over the period being investigated. But it also compared Chinese manufacturing costs with those of Brazilian manufacturer Madal Palfinger in Brazil stating that the Brazilian manufacturing environment was the closest Market Economy to China, even though Madal only makes a few truck mounted lifts, and the Brazilian steel industry is quite different to China’s, while dismissing the suggestion from China that Malaysia was a more representative comparative market when it comes to operating costs etc...
However, as a result of this process it has reduced most of the tariff levels that it originally proposed.
The final duties will be:
Retroactive tariffs
In June the Commission implemented a ‘Registration’ measure that instructed custom authorities to register all imports of Chinese aerial lifts and assemblies, on the basis of a claim by the complaints, that imports had spiked in the months since the investigation was launched and that showed that Chinese manufacturers were stockpiling machines in Europe prior to the completion of the process, in order to avoid potential duties in the short to medium term.
The Commission has now accepted or ruled that the spike in imports were related to seasonal variations and that it found no evidence of stockpiling. As a result, the implementation of retroactive duties will not go ahead. A additional investigation prompted by the complainant into possible government subsidies of some of the larger companies is however, ongoing.
Start date
As far as we could see the document was not clear when these tariffs kick in, perhaps given that the investigation into the government subsidy of some manufacturers is ongoing, the application will not come into force immediately. And it is likely that the European Parliament will have the final say and it could - if it so decides - ignore it completely or use it as a bargaining chip for other issues.
Time will tell.
UPDATE
We now have confirmation that interested parties have three weeks from publication date to comment on the ruling and flag any errors etc... and assuming nothing earth shattering occures, the tariffs will be applied from January 11th 2025.
chinkinthearmour
Dingli seem like straight shooters, that probably helped.
hairy
Unlike Sinoboom and the rest of the Chinese-owned companies, Dingli got a sweet deal.