The EU Trade Commission will meet in the near future to discuss the elimination of punitive tariff proposals for imports of energy-saving lamps from China. If the proposal is passed, it means that the European Union has temporarily put an end to the six-year sanctions imposed by Chinese manufacturers. Previously, Chinese companies were ruled to have anti-dumping duties ranging from 0 to 66.1%.
According to media reports, due to tariff barriers, the price of energy-saving light bulbs imported into the EU market in China has risen by 66% in the EU.
Although foreign media have attributed energy conservation and environmental protection to the important cause of this incident, in fact, “this tariff has led to a sharp increase in the price of energy-saving light bulbs imported from China†is the real reason for the EU to cancel the anti-dumping tax rate. According to data provided by Philips to the European Commission, in the past five years, the price of energy-saving lamps in the EU has increased by 25% due to anti-dumping investigations conducted by the Chinese energy-saving lamp industry.
In fact, many energy-saving lamp importers are very clear that high prices do not protect Osram, the largest EU manufacturer of energy-saving bulbs in Germany, but have increased the cost of living for the local people in the EU. This is similar to the fact that the United States has launched several rounds of anti-dumping investigations on Chinese products but found that the American consumer index is rising. Chinese products have become a staple of many American family lives. Anti-dumping duties have affected the standard of living of EU residents.
Anti-dumping duties levied for up to 6 years
China has always been a major exporter of lighting products with an export share of over 45%. In 2006, the export delivery value of China's lighting products was 56.479 billion yuan, a year-on-year increase of 18.28%.
However, the EU sanctions that began in 2001 have been the heartache of many export companies. A person from Changzhou Hongri Electric Company stated that since 2001, the company no longer exports energy-saving lamps to Europe. Its main markets are in South Africa, Iran, and other African and Middle Eastern countries. “The EU anti-dumping tax rate is too high. â€
In 2001, except for the exemption of a Chinese company, the European Union imposed an anti-dumping tax on the export prices of 8 energy-saving lamps in China from 0 to 59.6%, and all Chinese companies except 8 have a tax rate of 66.1%. Anti-dumping duties.
In June last year, OSRAM in Germany once again accused Chinese companies of dumping energy-saving lamps. As a result, the European Union initiated a review of companies such as Shenzhen Zhongdian Lighting, requesting companies to return their questionnaires by November 16. In the near future, the review investigation will end.
EU Trade Commissioner Peter Mandelson will submit an anti-dumping tax proposal to cancel the product on the 26th of this month, which will be discussed by trade experts from EU countries and may be submitted to the Council of Ministers in September.
Chen Yansheng, chairman of the China Lighting Association, told the “First Financial Daily†on the phone yesterday that before 2000, many companies exported energy-saving light bulbs to the EU, but after the sanctions were issued, exports started to fall. “The tax rate for Chinese companies being sanctioned varies. Some factories with lower tax rates continue to export after negotiating a reasonable price with local traders.â€
Enterprises take a wait-and-see attitude toward eliminating tariffs
Xiamen Donglin Electronics Co., Ltd. and Zhejiang Sunshine Group Co., Ltd. (600261.SH, hereinafter referred to as “Zhejiang Sunshineâ€) that exported energy-saving lamps to Europe have recently received cancellation notices from the European Union.
A Miss Zhu of Sunshine Zhejiang, who was in charge of foreign trade, revealed to the “First Financial Daily†yesterday that the notice did not specify when the anti-dumping duties would be formally cancelled, and their company's tax rate for the past six years has been 35%.
Ms. Zhu also stated that the anti-dumping duty collection is mainly directed at local EU importers. How the importer operates in the EU is not clear as a domestic company. "But if this tax rate is canceled, it will undoubtedly increase the amount of procurement in China."
Jia Qiang, chairman of Xiamen Dong Lin, said externally that the EU was once the company’s main overseas market. After anti-dumping duties were collected, the number of energy-saving lamps exported to the EU by the company was reduced by more than 70%.
However, if the tax rate is completely eliminated, not all companies will seize the European market.
The above-mentioned persons from Changzhou Hongri also stated that it is hard to say whether the company will enter Europe. "Companies need to get a lot of strict local certifications in Europe. There are many procedures for these certifications and they are expensive. We may not be able to afford them."
Mr. Gao of Zhejiang Zhengming Electric Co., Ltd. said that the energy-saving lamp industry has reached a peak, and even if the anti-dumping tax is cancelled, they do not intend to enter.
Factors such as environmental protection are expected to contribute to tax exemption
Chen Yansheng, chairman of the China Lighting Association, analyzed with this reporter that a variety of reasons are expected to promote EU tax adjustment or exemption for Chinese products.
First of all, the EU attaches great importance to environmental protection issues. In early March of this year, leaders of EU member states signed an environmental protection agreement with the general goal of striving to reduce the EU’s total emissions by 2020 by another 20% on a 1990 basis. At the same time, the EU Spring Summit has reached an agreement that within two years, European countries will gradually replace energy-efficient old incandescent bulbs with energy-saving fluorescent lamps to reduce greenhouse gas emissions.
Another important reason is that this sanction also includes Philips' joint venture in China. Since most of Philips' products need to be exported from China to Europe, Philips joined the Chinese company's camp with no hesitation compared to OSRAM, which strongly demanded EU sanctions against Chinese companies. GE, which has previously supported OSRAM, recently agreed to cancel the anti-dumping duties on China, again making OSRAM more vulnerable.
Chen Yansheng analyzed that OSRAM always insists that the reason why Chinese products cause dumping in the EU is that OSRAM and Philips have different production bases in Europe. The products produced by the company in China are not directly exported to Europe.