Reuters reported that the European Commission is investigating whether Chinese producers of aluminium foil are evading anti dumping duties imposed by the European Union in 2009.

The EU executive said that there was evidence that tariffs imposed in 2009 were being circumvented by China exporting rolls of foil to Europe that were then converted into the product affected by the duties.

It said the new investigation was triggered by a complaint by 4 European producers, Symetal, Eurofoil Luxembourg, Alcomet, and Hydro Aluminium Rolled Products, part of Norsk Hydro. Three years ago, the bloc imposed duties on rolls of aluminium foil 0.008 mm to 0.018 mm thick, no wider than 650 mm and weighing more than 10 kilogram from China, Brazil and Armenia.

The Commission said that the EU duties ranged from 25.6% to 47.0% on aluminium foil rolls from China, which the Commission said was produced with raw aluminium available at state controlled prices on the Shanghai Futures Exchange. Producers include companies such as Alcoa Bohai Aluminium Industries a branch of global aluminium company Alcoa, and Shandong Loften Aluminium Foil.

As Shanghai Futures Exchange physical deliveries can only take place in an approved warehouse in China, unlike with physical deliveries in other futures markets, this has the effect of making the price benefits only available to Chinese companies. The Commission said it had been given evidence that after the anti-dumping duty had been imposed there had been a significant change in the pattern of trade involving exports without sufficient due cause or justification for such a change other than the imposition of the duty.

Source - Reuters

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