Oct 20, 2020
On September 4, 2020, the European Commission issued an announcement stating that it has made a final anti-circumvention ruling on tungsten electrodes originating in China, ruling that tungsten electrodes originating in China and re-exported through Laos and Thailand have circumvention behavior. Therefore, it has decided to take action against Chinese tungsten electrodes. 63.5% of anti-dumping duties are levied retrospectively on electrodes; the anti-circumvention investigation on tungsten electrodes originating in China and re-exported through India (regardless of whether it is indicated as originating in India) is terminated. The EU CN (Combined Nomenclature) codes of the products involved are ex 8101 99 10 and ex 8515 90 80 (TARIC codes are 8101 99 10 11, 8101 99 10 12, 8515 90 80 11 and 8515 90 80 12).
On December 17, 2005, the European Union initiated an anti-dumping investigation on tungsten electrodes originating in China. On March 13, 2007, the EU made a final affirmative ruling on this case. On March 9, 2012, the European Union conducted the first anti-dumping sunset review investigation on tungsten electrodes originating in China. On June 4, 2013, the European Union made its first anti-dumping sunset review final ruling on tungsten electrodes originating in China. On May 31, 2018, the European Commission issued an announcement stating that it will conduct the second anti-dumping sunset review investigation on tungsten electrodes originating in China. On December 17, 2019, the European Commission issued an announcement stating that it independently initiated an anti-circumvention investigation on tungsten electrodes originating in China.
The third-country re-export method can only be applied after the exporter and the importer have fully communicated and reached an agreement. It is absolutely impossible for one of the parties to conceal the other and use the third-country re-export method alone.
For exporters, the packaging of the product must be prepared for re-export. Therefore, the outer packaging of the product can only use neutral packaging or indicate that the third country must not have Chinese words or labels. Because the exporting country declared by the importer at the time of import is the third country that issued the document. He must be well aware that the customs clearance documents are from the re-export country or neighboring countries and regions when the import is declared, but the actual origin of the goods is China. If the settlement is by letter of credit, the letter of credit must indicate the acceptable text of the third-party document.
Therefore, in actual operation, there are cases where importers actively require exporters to provide certificates of origin in a third country for customs clearance, and there are cases where importers recommend to exporters to use third country documents for customs clearance, or both importers and exporters are subject to quotas. Or the two major obstacles to anti-dumping duties hinder the trade process, and have to resort to the third country's origin.
Of course, this re-export logistics method is not a mainstream logistics method. Only part of the export-restricted products choose this export method. In terms of how to deal with foreign anti-circumvention investigations, exporters or importers choose a suitable transit method. Countries or transit areas, choose the export documents declared by the manufacturers of the third country, and at the same time, assess the authenticity and completeness of the third country’s export documents, which are all necessary measures to effectively avoid risks.
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