Center

Plastic bag duties to take toll

By Jiang Wei (China Daily)
Updated: 2006-07-12 08:38

China's plastic bag-makers are likely to suffer as a result of anti-dumping punitive duties brought in by the European Union.

The EU trade commission will place an average tariff of around 10 per cent on plastic bags from China, according to the final rulings from the commission.

The EU is also set to impose tariffs of 14.3 per cent on bags from Thailand. It claimed that plastic bags from the two countries were being dumped illegally in the EU.

"The tariffs are not expected to have a large impact on Chinese companies' exports to the European markets," said Xiang Dong, a lawyer with Beijing-based AllBright Law Office, which represented Chinese firms in the case.

The duties rates are not likely to deprive Chinese plastic bag-makers of the EU market as the US punitive duties did.

In 2004 it was alleged that China had dumped plastic bags and sacks in the United States. Duties of up to 77.03 per cent were imposed.

Xiang said Chinese companies were active in responding to the EU investigation. Over 100 domestic companies participated in the inquiry.

The European Commission started the anti-dumping investigation after receiving a complaint from 30 European producers of certain plastic sacks and bags last June, representing more than 25 per cent of the EU's production in the sector.

Local media said although the 30 firms withdrew the complaint in February, French industry has kept up pressure and received backing from French transport commissioner Jacques Barrot, who was the president of a trade association that represents the plastics industry in his home region of Haute-Loire, France, for 30 years.

Along with Chinese exporters, some EU retailers also strongly objected to the punitive duties.

They estimated that the tariff would lead to an extra cost of US$110 million and said the extra costs of plastic bags would be finally passed onto consumers.

According to statistics from the European side, China exports plastic bags of up to US$300 million to the EU each year.