Chinese truck tyre tariffs annulled
Anti-dumping and anti-subsidy tariffs imposed against Chinese-produced truck tyres in 2018 must be annulled, according to a judgement published by the European Court of Justice on 4 May 2022. Tyres & Accessories understands that the verdict can be appealed between now and July, but unless that appeal is successful, the annulment of anti-dumping tariffs against Chinese-produced truck tyres will result in increased imports and sales of those products.
In its conclusion, the court ruled “the definitive anti-dumping regulation must be annulled, in so far as it imposes definitive anti-dumping duties on imports of products manufactured by the exporting producers”, referring to the companies listed below, which includes most large Chinese tyremakers. However, Zhongce Rubber Group, the largest domestic Chinese tyremaker is not included in that list and therefore will not benefit from the ruling.
The reason for the annulment rests on two points: “The use of a fixed allocation key and the failure to correct the weighted data” and “the breach of the rights of the defence”. In other words, the European Commission didn’t adequately follow its own rules when it came to introducing the initial anti-dumping tariffs.
The case was brought by China Rubber Industry Association (CRIA) and China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC). The European Commission was the defendant and was supported by Marangoni SpA. Under Article 134(1) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs, which means the European Commission will bear the brunt of most of the costs however “the intervener must be ordered to bear its own costs and to pay those incurred by the applicants as a result of the interventions.” And that means Marangoni may be facing a legal bill as well.
The companies against which import tariffs are set to be annulled:
– Chaoyang Long March Tyre Co. Ltd
– Triangle Tyre Co. Ltd
– Shandong Wanda Boto Tyre Co. Ltd
– Qingdao Doublestar Tire Industrial Co. Ltd
– Ningxia Shenzhou Tire Co. Ltd
– Guizhou Tyre Co. Ltd
– Aeolus Tyre Co. Ltd
– Shandong Huasheng Rubber Co. Ltd
– Chongqing Hankook Tire Co. Ltd
– Prinx Chengshan (Shandong) Tire Co. Ltd
– Jiangsu Hankook Tire Co. Ltd
– Shandong Linglong Tire Co. Ltd
– Shandong Jinyu Tire Co., Ltd
– Sailun Jinyu Group Co. Ltd
– Shandong Kaixuan Rubber Co. Ltd
– Weifang Yuelong Rubber Co. Ltd
– Weifang Shunfuchang Rubber And Plastic Products Co. Ltd
– Shandong Hengyu Science & Technology Co. Ltd
– Jiangsu General Science Technology Co. Ltd
– Double Coin Group (Jiang Su) Tyre Co. Ltd
– Hefei Wanli Tire Co. Ltd
– Giti Tire (Anhui) Company Ltd
– Giti Tire (Fujian) Company Ltd
– Giti Tire (Hualin) Company Ltd
– Giti Tire (Yinchuan) Company Ltd
– Qingdao GRT Rubber Co. Ltd
The ruling was made by the General Court (tenth chamber, extended composition) of the Court of Justice of The European Union.