The decision has been made to impose securities between
19% and 61% on imports of Chinese produced deep drawn stainless
This decision reflects a preliminary finding by the Anti-Dumping
Commission that Chinese steel sinks have been dumped causing
material injury to the Australian manufacturing industry. While
only preliminary, the finding increases the likelihood that dumping
duties will ultimately be imposed.
Until the decision has been finalised, a security must be
provided in respect of the affected imports.
If dumping duties are imposed, the provided security will be
converted to an interim dumping duty and become payable. The amount
of duty paid will be the lower of either the security held, or the
final dumping duty actually imposed. If no duties are imposed, the
security will be released.
WHAT PRODUCTS ARE AFFECTED?
Deep drawn stainless steel sinks with a capacity between 7 - 70
litres entered for home consumption after 13 August 2014. The
securities cover single or multiple drain bowls, but do not cover
sinks with fabricated drain bowls.
WHAT SHOULD YOUR CLIENTS BE DOING?
If your client is a purchaser of these products, they need to
review their contracts to determine the party liable for any
additional duty. For many contracts, it will be the importer, and
they will need to factor in a potential 61% increase in their cost
Australian importers should assess if they are on-selling
affected goods at a price that is sufficient to cover the potential
A final decision regarding dumping duties will not be made for
many months, by which time it is likely to be too late to recover
any additional cost from Australian customers.
CAN ANYTHING BE DONE?
This decision is only preliminary. Manufacturers, exporters and
importers can influence the final decision by making submissions to
the Anti-Dumping Commission either now or in response to the
Statement of Essential Facts (due 5 October).
These submissions could address:
whether the Australian industry suffered injury
what factors, other than price, drive buyer decisions
have other factors, such as a strong dollar, non-dumped imports
or a change in domestic demand, caused any injury
what goods should be covered by the investigation
has the Anti-Dumping Commission adopted the correct approach in
calculating the dumping margin
The Hunt & Hunt Customs and Global Trade team have
previously assisted many affected parties with similar issues. If
you have clients affected by this issue please feel free to call
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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