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ITIA advises members to prepare for potential anti-dumping duties on Chinese tyre imports

Following a submission to the EU Commission and subsequent correspondence with Mairead McGuinness MEP & Vice President of the European Parliament ITIA have the following advice for members;

The European Commission is currently conducting a 15-month anti-dumping and anti-subsidy investigation. An announcement of provisional measures is expected in May of this year and six months later, in November, the conclusions of the investigation will be published.

As part of this, regulation EU 2018/163 came into effect in February, 2018. From this date imports of new and retread tyres for buses and trucks originating in China are subject to registration. This does not apply to other tyres e.g. Agri, Earthmover, PCR but that is not to say that separate investigations will not be carried out in the future. Therefore, it is important that importers ensure that they are keeping accurate records of all products they are importing, and evidence of any orders cancelled. Revenue will be registering any post February 01 imports before product is released by customs, so importers will not be required to do anything different.

Clarification by May 2018 is expected on whether anti-dumping duties will be applied and at what level. Anti-subsidy duties may also be applied. The Regulation document currently details that the investigation estimates an underselling representing 26% – 37% ad valorem (to the value of) on the CIF import value of the product concerned. Therefore, we believe that members should operate based on 37% as a worst-case scenario for the time being.

A main concern relating to the outcome of this investigation is the effect on businesses of any duty applied retroactively, if imposed. It is not clear yet over how many months the retroactive duties could sbe applied but indications are from 3 to a maximum of 9 months. Again, we advise members to consider a worst-case scenario and operate based on duties applying from February 01, 2018.

ITIA will continue to outline to the EU commission the effects of this legislation on our industry. Our most effected members are importers, small wholesalers and some independent tyre dealers who import tyres from PRC directly. The effect of a retrospective charge over 3 months would create financial difficulties in these companies which would in turn cause cash flow difficulties right across every sector of our industry here in Ireland.

The Regualtion (EU 2018/163) can be read in full here

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