The European Commission (EC) has imposed a provisional anti-dumping duty on imports of hand pallet trucks and their essential parts from the People's Republic of China (PRC).

An anti-dumping proceeding was initiated after four European Community (Community) producers, representing more than 60 per cent of the Community's total hand pallet truck and essential parts production, lodged a complaint in March 2004 (Forkliftaction.com News #192).

The complainants - Bolzoni-Auramo SpA, Italy; BT Products AB, Sweden; Franz Kahl GmbH, Germany; and Pramac Lifter SpA, Italy - included evidence of dumping and the resulting injury in their complaint.

Four exporting producers from the PRC cooperated with the investigation. They were Ningbo Liftstar Material Transport Equipment Factory, Ningbo; Ningbo Ruyi Joint Stock Co Ltd, Ninghai; Ningbo Tailong Machinery Co Ltd, Ninghai; and Zhejiang Noblelift Equipment Joint Stock Co Ltd, Changxing.

According to Eurostat data, Community consumption of hand pallet trucks was about 493,000 units during the period considered (January 1, 2000, to March 31, 2004) while the volume of PRC imports increased 138 per cent over the period. The increase in imports was particularly marked between 2002 and 2003 (51 per cent).

The market share of dumped imports increased by more than 100 per cent during the period considered. However, the increased market share was found to overlap with the share previously held by the Community industry.

Eurostat data showed the average price of imports from the PRC decreased between 2000 and 2004 by 34 per cent. Prices were stable until 2001 before they decreased 12 per cent in 2001 and even further by another 25 per cent between 2002 and 2003.

The EC analysed price data for the investigation period and established the existence of price undercutting for imports from the PRC. The level of undercutting was found to be more than 55 per cent.

According to the EC: "The impact on the Community industry of the magnitude of the actual margin of dumping cannot be considered negligible, given the volume and prices of the imports concerned.

"The Community industry's loss-making situation has resulted from its difficulty to compete with unfairly low-priced dumped imports."

The EC established the anti-dumping duty rates after taking into account the dumping margin found and the amount of duty needed to eliminate the injury sustained by the Community industry.

"Any measures should allow the Community industry to cover its production costs and obtain overall a pre-tax profit that could reasonably be achieved by an industry of this type on sales of the product in the Community under normal conditions of competition (the absence of dumped imports)."

The duty rates for Ningbo Liftstar were fixed at 37.6 per cent, Ningbo Ruyi at 29.7 per cent, Ningbo Tailong, 40.3 per cent, Zhejiang Noblelift at 35.9 per cent and all other companies at 49.6 per cent.

The anti-dumping duty is applicable for six months from January 28, the publication date of the EC regulation in the Official Journal of the European Union.

The investigation covered the period from April 1, 2003, to March 31, 2004 while the examination of trends relevant for the assessment of injury covered the period from January 1, 2000, to March 31, 2004.

To read the EC report