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European Union

European Union Court of Justice Upholds Anti-Dumping Duty on Chinese Tartaric Acid Imports

Strategic Insights

— 2 min read

The General Court (Third Chamber) of the Court of Justice of the European Union has issued a judgment in Case T-541/18, Changmao Biochemical Engineering Co. Ltd v. European Commission, upholding the European Commission's decision to impose a definitive anti-dumping duty on imports of tartaric acid originating in the People's Republic of China. The court found that the European Commission had correctly applied the anti-dumping measures against the Chinese exporter, Changmao Biochemical Engineering Co. Ltd, and rejected the applicant's claims that the measures were unlawful.

The court's judgment follows a long-standing dispute over the European Union's anti-dumping duties on tartaric acid imports from China. The dispute dates back to 2004, when the European Commission received a complaint about dumping practices in the tartaric acid sector lodged by several Union producers. The dispute has involved multiple court judgments and regulatory decisions, including the annulment of Commission Implementing Regulation (EU) 2018/921 by the General Court in 2017.

Key Takeaways:

  • The European Commission imposed a definitive anti-dumping duty on imports of tartaric acid originating in China, finding that the Chinese exporter, Changmao Biochemical Engineering Co. Ltd, had dumped tartaric acid on the European Union market at prices below normal value.
  • The General Court rejected the applicant's claims that the European Commission had infringed the rights of the defence and had failed to state sufficient reasons for its decision.
  • The court also found that the European Commission had correctly applied the anti-dumping measures and had not breached the principles of non-discrimination and proportionality.
  • The judgment is significant for its implications for the European Union's anti-dumping policies and the potential impact on trade relations with China.

Statistics:

  • 52.1% of total Union production represented by the companies that lodged the expiry review request.
  • 86% of total tartaric acid production in the Union represented by the provisional sample of Union producers selected by the Commission.
  • 10.1% duty imposed on imports of tartaric acid from the applicant, Hangzhou Bioking Biochemical Engineering Co. Ltd.
  • 34.9% duty imposed on imports of tartaric acid from other Chinese exporting producers.

Sources:

  • Judgment of the General Court (Third Chamber) in Case T-541/18, Changmao Biochemical Engineering Co. Ltd v. European Commission, 16 December 2020.
  • Commission Implementing Regulation (EU) 2018/921 of 28 June 2018 imposing a definitive anti-dumping duty on imports of tartaric acid originating in the People's Republic of China, OJ 2018 L 164, p. 14.
  • Regulation (EC) No 130/2006 of the Council imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of tartaric acid originating in the People's Republic of China, OJ 2006 L 23, p. 1.
  • Implementing Regulation (EU) No 349/2012 of the Council imposing a definitive anti-dumping duty on imports of tartaric acid originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009, OJ 2012 L 110, p. 3.

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