Thu, Jul 15, 2010 - Page 12 News List

Duty put on Chinese rongalite

UNFAIR ADVANTAGE? The provisional duty is in place for four months, which gives the government time to launch a probe into allegations of dumping

By Ted Yang  /  STAFF REPORTER

The Ministry of Finance has announced that it would slap provisional anti-dumping duties of up to 28.91 percent on rongalite imported from China after the ministry confirmed that the material was dumped at below-market prices in Taiwan and is hurting the local industry.

This marks the fourth anti-dumping action the government has initiated against products from China, including towels, footwear and benzoyl peroxide, underscoring the severity of Chinese dumping.

Taiwan imports around 1,600 tonnes of rongalite every year from China, which is used as an industrial bleaching agent and in textile dying, accounting for about 60 percent of local market share, the ministry said.

The ministry’s custom tariff rate committee resolved on Friday that a preliminary anti-dumping duty of 15.51 percent be levied on rongalite imported from Dongtai Fine Chemical Co (東泰精細化工) in Jiangsu Province’s Wuxi City, and 28.91 percent on the chemical imported from other Chinese companies.

After the provisional anti-dumping measure takes effect, rongalite imports from China will be subject to total custom ­tariffs of between 18.55 percent and 32.31 percent, including the current import duty of 3.4 percent, the ministry said.

The decision on the temporary anti-dumping measure was made based on preliminary investigation results after Cathay Chemical Works Inc (國泰化工) filed a complaint with the government in February presenting evidence that showed rongalite from China was dumped at belwo-market prices, seriously damaging the local industry.

The ministry said that the provisional anti-dumping duty on Chinese rongalite would be valid for four months, during which time the government would continue its investigation into the case. It is expected to be make a final verdict in early November.

If the government officially decides to slap anti-dumping duties on Chinese rongalite, the penalties will be effective for five years, the ministry said.

Meanwhile, the ministry has also decided to impose anti-­dumping levies of up to 64.7 percent on Chinese benzoyl peroxide, which is used in acne treatments, to improve flour, to bleach hair and teeth and in manufacturing polyester.

On May 20, the ministry began slapping provisional anti-dumping duties on the chemical imported from China following a preliminary investigation that began last December against imports of ­Chinese benzoyl peroxide.

However, the penalties will be only applicable to industrial benzoyl peroxide imported from China, the ministry said.

In related news, the US on Tuesday slapped final anti-dumping duties ranging from zero to 247.65 percent on gift box and other types of narrow woven ribbons from China, which it said were unfairly priced.

In addition, the US Commerce Department hit Taiwan, which exports more ribbons to the US than China, with much lower duties of zero to 4.37 percent.

The US imported US$13 million of ribbons from China and US$33.9 million from Taiwan last year.

Additional reporting by Reuters

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