Tire industry responds to EU tariff ruling
20 Jun 2022
BRV: Three main scenarios following court decision to annul duties on Chinese truck & bus tires London - The European tire industry is facing a range of scenarios ahead of the deadline for an appeal against a recent EU court ruling annulling anti-dumping and countervailing duties on Chinese truck and bus tire imports. The European Commission has until mid-July to appeal, with three main options on the table, explained Yorick Lowin, MD of German tire retail association (BRV), which also runs EU tire retreaders' association BIPAVER.
The first option, said the industry official in a written statement to ERJ, is for the EC to lodge an appeal against the judgement at the European Court of Justice. In that case, the annulment ruling would be set aside until the appeal is settled, duties continuing to apply until then, said Lowin. The second option is for the EC to accept the judgement and initiate a compliance investigation to correct any errors with its original imposition of tariffs and duties in 2018.
The trade measures would then re-imposed, likely at a reduced level. The third option, said Lowin, is for the Commission to accept the judgement and not re-impose the measures if they believe that the errors identified by the court could not be rectified. "Up to now the Commission has not made a decision yet," stated Lowin, who however suggested that the second option was the most likely of the three outcomes.
If that was the case, he said, the EC could instruct customs authorities not to repay any duties until the end of any new compliance investigation. The EC could also impose "a registration of imports of Chinese tires with a view to collect retroactively duties when their new level is recalculated," Lowin further pointed out. "In case of registration, importers are informed by the customs authorities in the member states that they may revert at a later point to collect duties up to the original level of the duties."
And, if the Commission were to re-implement the duties, the European tire industry would be able to request an extension to the anti-dumping and anti-subsidy measures in 2023.
Lowin went on to say that the court ruling did not have an "immediate big effect" on the EU tire industry, as rising costs for materials and transport from Asia were driving up prices for tire imports from China.
But, he noted, "once these costs go down again, we would have a similar situation on the European retreading market as we had in 2016-2018."