The EU has opened a "high price" tariff I ceramic industry is facing reshuffle

Recently, the results of the preliminary anti-dumping case of the EU's largest anti-dumping case against China Ceramics were announced, and a “heavy rifle” was thrown into the Chinese ceramics industry. The preliminary results show that none of the Chinese companies obtained market economy status, three Chinese ceramics companies received case processing, and most of the rest of the companies were subject to a 73% high tax rate. According to the EU's anti-dumping regulations, temporary customs duties will be implemented from March 18, 2011 to the end of the final ruling, and it is expected that the final ruling will be announced on September 17, 2011.

Mr. Chen Rongjian, manager of Foshan Woma Glass Products Co., Ltd., was completely surprised. "73% of the tariffs have blocked the company's road to Europe." Chen Rongjian told reporters that as a result, the company had to make strategic adjustments to reduce its excessive dependence on the European market. At present, Wal-Mart's nearly 20% to 30% of its products are exported to the European market. Chen Rongjian pointed out that the company will rapidly begin to expand the market in the United States and Southeast Asia and explore “export to domestic sales”. “But at the beginning of production and design, the positioning of related products was already very clear. Exports to domestic sales may not be in line with the appetites of Chinese consumers.” Chen Rongjian lamented that domestic channels have been solidified and it is not easy to win a share.

Industry sources pointed out that the ceramic industry, Foshan City, Guangdong Province will become the "hard-hit area" of the sanctions, a group of ceramic companies will be expelled from the EU market. However, there are also views that, given that this result is only a "preliminary ruling," companies still have "a trace of hope" for turning over at the final ruling.

Ceramic companies suffer a heavy blow

According to the European Union’s announcement, the three companies that have obtained separate tax rates are Guangdong Xinruncheng Ceramics Co., Ltd., Shandong Yadi Ceramics Co., Ltd. and Guangdong Weimei Ceramics Co., Ltd., and the tax rates are 35.5%, 36.6%, and 26.2%, respectively. The corporate tax rate for cooperation but not drawn is 32.3%, and other ceramic companies have a general tax rate of 73%.

The China Ceramics Industry Office in Foshan revealed that due to the anti-dumping case, it is estimated that 15% of the enterprises will be closed down, affecting tens of thousands of employees. In Chen Rongjian's view, this figure is still somewhat conservative. Many SMEs will face the worry of reshuffle. It is reported that there are currently more than 1,500 Chinese ceramic companies affected, and foreign trade companies engaged in ceramic-related industries will also be affected to varying degrees.

The Minmetals Chamber of Commerce’s legal department told this reporter that in all the responding companies, except for the 3 companies that were selected, the remaining cooperative companies must pay a 32.3% average tax. "Companies that have to pay 73% of the tariffs are enterprises that have not participated in the response. It will be the tragic fate of the EU market to greet them." The source further pointed out that it can be confirmed that there are about 115 Chinese-related companies participating in the response. However, the survey found that nearly 1,500 Chinese companies exported tiles to Europe. Most of them were trading companies. If these companies could not provide valid certification, they would be dragged into 73% of the "minefield."

However, for responding companies, tariffs of 20% or even 30% are still “abnormally high”. Chen Rongjian told reporters that high tariffs will undoubtedly force companies to raise export prices and thus lose competitiveness in the European market. Chen Rongjian believes that there is no doubt that the company has lost more customers.

Final decision or reversal hope

According to sources, the China Minmetals Chamber of Commerce and the Ceramic Industry Association will continue to negotiate and engage with the EU to resolve the anti-dumping crisis. Chen Rongjian bluntly stated that he is most worried about the outcome of the final ruling and "maintains the original verdict." As a result, companies are bound to fall into desperation under high tariffs of 5 years or more.

Then, can the EU's final ruling result show a "turnaround"? When interviewed by this reporter, Fu Donghui, director of the Beijing Jintiancheng Law Firm and a senior EU market lawyer, frankly stated that as long as the main contradiction of the problem is grasped in the next defense, the method and strategy are appropriate, the company still has the opportunity to stand up. Fu Donghui said that at least on the "sampling method", the EU's relevant measures are very opaque, and they are heavily doped with water. Fu Donghui further pointed out that the representation of these drawn companies in terms of "scale" and "export volume" is being questioned. If enterprises can grasp the key points in defense, and seize the time to prove, there is hope of turning over.

The relevant Minmetals Chamber of Commerce officials also confirmed to reporters that at present, the chamber of commerce and the China Ceramic Industry Association will continue to organize more than 30 companies to respond to the damage and other defenses, and timely request the European Union to hold hearings and strive to hold a hearing in the EU On the realization of "overturned" goal.