The import of hand pallet trucks and their essential parts from Viet Nam is being investigated by EC. — Photo vca.gov.vn

The European Commission has investigated the import of hand pallet trucks and their parts from Viet Nam, which allegedly originate in China.

The investigation concerns the possible circumvention of anti-dumping measures imposed by the EU’s Council Implementing Regulation No 1008/2011, as amended by Implementing Regulation No 372/2013.

The regulations cover the import of hand pallet trucks and parts originating in China by imports consigned from Viet Nam, whether declared as originating in Viet Nam or not, and making such imports subject to registration.

The investigation, which began on July 19, aims to determine if the import of hand pallet trucks and their parts, including chassis and hydraulics, into the EU circumvents regulations.

It is being conducted following a petition from PR Industrial SRL and Toyota Material Handling Europe, manufacturers of hand pallet trucks in the EU.

The petitioners said they witnessed a change in the pattern of trade involving exports from the Chinese mainland and Viet Nam to the EU following the increase of duties on the product without sufficient due cause or economic justification for such a change other than the duty.

This change appears to stem from consignments of the product concerned via Viet Nam to the EU after having undergone assembly in Viet Nam.

The applicants have provided evidence showing that these assembly operations constitute circumvention as Chinese parts make up more than 60 per cent of the total value of the assembled product and the value added during assembly is lower than 25 per cent of manufacturing cost.

According to the EU’s statistical office Eurostat, imports of hand pallet trucks from Viet Nam to the EU increased from less than 1,000 units in 2011 to more than 73,000 units in 2016.

The applicants’ request also contains evidence that the effects of the existing anti-dumping measures on the product are being undermined. In addition, there is evidence that imports of the product under investigation are being done at prices below the non-injurious price established in the investigation that led to the existing measures.

“Should circumvention practices via Viet Nam covered by Article 13 of the basic regulation, other than assembly operations, be identified in the course of the investigation, the investigation may also cover these practices,” the petition stated.

To obtain information for its investigation, the Commission will send questionnaires to known exporters/producers in Viet Nam, known associations of exporters/producers in Viet Nam, known importers and known associations of importers in the Union and to authorities of Viet Nam and the China.

Since the possible circumvention takes place outside the EU, exemptions may be granted to producers of the products under investigation in Viet Nam who can show they are not related to any producer subject to the measures and who are found not to be engaged in circumvention practices.

The investigation will be concluded within nine months. — VNS