BRV: Three Main Scenarios Following Court Ruling to Cancel Duties on Chinese Truck and Bus Tires
LONDON – The European tire industry faces a range of scenarios ahead of the deadline for appeal against a recent EU court ruling reversing anti-dumping and countervailing duties on Chinese imports of truck and bus tyres.
The European Commission has until mid-July to appeal, with three main options on the table, explained Yorick Lowin, director general of the German tire retail and vulcanization association (BRV), which leads also the European association of tire retreaders BIPAVER.
The first option, the industry official said in a written statement to erjis for the EC to appeal against the judgment to the Court of Justice of the European Communities.
In that case, the rescission decision would be reversed until the appeal is resolved, with rights continuing to apply until then, Lowin said.
The second option is for the EC to accept the judgment and open a compliance investigation to correct any errors in its initial imposition of tariffs and duties in 2018. The trade measures would then be reimposed, likely at a reduced level.
The third option, Lowin said, is for the Commission to accept the judgment and not reimpose the measures if it finds that the errors identified by the court cannot be corrected.
“So far, the Commission hasn’t made a decision yet,” said Lowin, who suggested the second option was the most likely of the three outcomes.
If so, he said, the EC could order customs authorities not to refund any duties until any new compliance investigation is completed.
The EC could also impose “a registration of Chinese tire imports with a view to retroactively collecting duties when their new level is recalculated”, Lowin further underlined.
“In case of registration, importers are informed by the customs authorities of the Member States that they can return later to collect duties up to the initial level of duties.”
And, should the Commission reinstate duties, the European tire industry could seek an extension of anti-dumping and anti-subsidy measures in 2023.
Lowin went on to say that the court ruling did not have an “immediate significant effect” on the European tire industry as rising material and transport costs from Asia drove up import prices. tires from China.
But, he noted, “once those costs come down, we would have a similar situation in the European retread market to what we had in 2016-2018.”