The European Union, in trying to protect European stainless steel manufacturers continue to enforce import taxes on China-made stainless steel screws which were selling at a lower price.

The European Union extended a previous trade agreement with a minimum of 11.4% to a maximum of 27.4% duties on China-made screws for a period of 5 more years. This means that Chinese stainless steel companies will have to continue paying higher import taxes from 2012 to 2017. The European Union did this to protect stainless steel companies in Germany, Italy, and France. It was also a move against dumping of cheap stainless steel products from China. This move was not a surprise to many since the trade protection for European Union stainless steel companies were already in place since June.

In trying to avoid the taxes and levies Chinese steel companies began to divert their stainless steel exports through the Philippines. Dirty tricks?

It most certainly appears to be the case. Once the European Union began to investigate shipments from the Philippines, Thailand, and Malaysia their results show that Chinese companies were only diverting their goods through the Philippines.

As a result of the investigation, the 27 nation bloc decided to impose the same rate on shipments from the Philippines. They did exempt 2 Philippine stainless steel companies – Rosario Fasteners Corporation and Multi-Tek Fasteners Inc. from paying the new levy.

In addition, the European Union decided to charge levies retroactively from June 2012 to the present on shipments from the Philippines.  All shipments from the Philippines will also have to go through stricter shipment registration.

Another move by the European Union was to extend the anti-dumping duties for another 5 years on Taiwan’s stainless steel fasteners suppliers by as much as 23.6%.

These decisions by the European Union will take effect before the end of March 2013.