The European Commission recently made a preliminary ruling on China's anti-dumping case against canned oranges and decided to impose a temporary anti-dumping duty ranging from 330 euros per ton to 482.2 euros per ton. Reporters learned that, because the European Commission in the preliminary ruling selected Thailand as a substitute for calculating the normal value of China's products involved in the case, the Chinese enterprises in this case did not receive market economic treatment. Although this is not the final decision, in the eyes of many industry insiders, the possibility of reversing this adverse situation is minimal.

 

EU's purpose is clear.

 

"The EU's special safeguard measures against canned oranges in China have not yet expired and the anti-dumping investigation has been launched flagrantly. At this time, high tariffs are levied. The purpose is very clear, that is, to protect the relevant industries of the EU. This will lead to the complete withdrawal of our products from the EU market. " Zou Zhiliang, Secretary General of Zhejiang canning industry association, told reporters.

 

Li Xiaohua, head of the Foreign Trade Section of Zhejiang Huangyan No. 1 Canned Food Factory, told reporters that Spain is the main producer of canned oranges in the European Union region. In recent years, Chinese products have sprung up in the European Union market with the advantages of quality and price, which has caused a great impact on it and caused the closure of many factories in Spain.

 

Reporters learned that at the request of Spanish enterprises, the European Union implemented safeguards (tariff quotas) for canned oranges imported from China from April 2004 to November 2007. During this period, the export quota exceeds the quota quota, which is payable at 301 euros per ton. Some experts believe that Spain could normally apply for an extension of the duration of the safeguards at the end of the four-year safeguards period. However, according to EU rules, the extension of the safeguards must be approved by a vote of the member states, and only four or five of the EU member states supported it at that time. Against the background that the application for extension of safeguards was not fully supported, Spain thought of using anti-dumping investigations to continue restricting Chinese canned citrus exports to Europe. On October 20 last year, at the request of the Association of Processing Fruits and Vegetables of Spain, the European Union launched an anti-dumping investigation into canned citrus fruits originating in China.

 

High tariff pressure on Chinese Enterprises

 

According to Zhang Julin, chairman of Zhejiang Giant Industry Co., Ltd., the EU is too biased to deal with the anti-dumping case fairly and fairly. In dealing with the case, the European Union did not take into account the changes in China's exchange rate, packaging prices, rising labor costs and other issues, so the imposition of 330 euros / ton - 482.2 euros / ton of temporary anti-dumping duties on Chinese enterprises is very unfavorable. "At present, our export price per ton is about US$830, which will be increased by about US$700 after the imposition of temporary anti-dumping duties. This tariff is not ordinary. " He said.

 

Chen Dekang, general manager of Ningbo Dongfang Jiuzhou Food Industry and Trade Co., Ltd, Zhejiang Province, made an account to reporters: "Compared with the price of Spanish products, the cost of 321g cans and 24 cases sold in Spain this year was about $13 per case when they arrived in Hamburg, Germany. The cost of each case was about $13 cases. We exported from Ningbo Port. The price of our product in the European Union is still less than $13, plus tariffs, shipping charges, etc. It is about $10.74, plus 10% profit and shipping charges from EU importers. However, due to the rising labor costs, rising material prices and other factors, even if the price of raw materials oranges under the premise of rising production costs have to increase by about 25%, coupled with Shanghai freight rates, exchange rate changes and other factors, with a minimum tariff of 330 euros t, this year we export to Europe. The continental products cost about $15 a box, so we completely lost our price advantage with the Spanish companies.

 

In the course of responding to the case, Chan Dekang had a regret: "On June 11, when the European Union held a hearing, China refused to participate. I personally think that if China participates in this hearing, the situation may change after efforts, and the EU may not impose such high tariffs. We haven't taken advantage of this crucial opportunity. The results of the preliminary ruling have been announced. The EU will not easily overthrow itself in the final ruling, so it is very difficult to change the status quo.

 

The whole industry will suffer a "devastating blow".

 

For the impact of the anti-dumping preliminary ruling on export enterprises, Chan Dekang used five words to describe: "devastating blow".

 

Chandekang said that Spain's original production capacity was 80,000 tons, and then Chinese products seized the market, leaving only 20,000-30,000 tons. But its factories and equipment are still there, and it is easy to recover. In recent years, China's exports to the EU are about 50,000-60,000 tons a year. After the imposition of temporary anti-dumping duties, prices will inevitably rise. Customers may choose products from other countries and consumers may choose canned fruits as substitutes. This will inevitably lead to a decline in sales. "In the second half of this year, China is expected to export about 10,000-20,000 tons of products to the European Union, but also special specifications of products, such as sugar-free cans, canned juice, canned pear juice and so on, in addition to some high-quality products that Spain can not produce. By 2009, we may have largely withdrawn from the EU market. " He said.

 

He further analyzed: