In August 2003, the European Union commenced an investigation into allegedly unfair price competition by Chinese okoumé plywood manufacturers who stood accused of dumping their product in the European market place.
Goods are said to be dumped when they are sold for export at less than the price obtained for similar goods in the exporter’s home market.
The investigation has now been completed and without reasonable warning the EU‘s Anti-Dumping Committee has decided to impose punitive anti-dumping duties on all Chinese okoumé plywood based on a comparison with plywood manufactured in Morocco.
The Federation rejects this comparison on the grounds that the Moroccan board comprises okoumé veneers throughout and uses exterior grade glue, while the Chinese product consists of a plantation-grown poplar core with thin okoumé face and back veneers and different grade glues. The cost of the Chinese material is therefore considerably lower and a comparison between the two is invalid.
The threatened duty means that potentially UK buyers are either tied into contracts, which will result in their goods being unsaleable due to the increased duty, or if they cancel contracts they could face legal action from their suppliers who will have already purchased raw materials and ship space.
The duty will take effect from the date the decision is published in the Journal of the European Union, which is likely to be in approximately two weeks.
Chinese okoumé is principally a UK import and so British companies are going to be most affected by this decision. The TTF is continuing to press the DTI to try to get this measure, which we believe to be based on a technically inaccurate comparison, reversed.
If we cannot achieve a reversal, the cost to the UK trade will, we believe, be in excess of £1m.
