EURANIMI intervenes in EU court in favour of EC

Exemptions on SSCR from Taiwan, Turkey, and Vietnam under review

In May 2024 the European Commission published two distinct Implementing Regulations extending the definitive 19.30% anti-dumping duty and 20.50% countervailing duty on imports of cold rolled stainless steel originating in Indonesia to include SSCR consigned from Taiwan, Turkey, and Vietnam.

A regulation that mainly affects local service centres and traders. The Commission’s in-depth investigation showed that local producers, who had actively collaborated in the EC’s investigation, were not circumventing the regulations. And so, the EC granted them an exemption.

Destroy fraud, not the EU market

By exempting virtually all genuine producers in the countries concerned, the Commission eases pressure on the EU market by keeping imports of SSCR-products from local producers open.

The EC also shows it is resolutely combatting fraud committed by traders or local service centres engaged in transshipment or completion operations – slitting or cut-to-length operations – which do not legally alter the origin of the goods.

While at first glance most aspects of the regulation seem favourable to EU market supply, there are potential hazards embedded within this investigation. Key concern is the increasing uncertainty surrounding the determination of origin of hot/cold rolled/formed products, as previously reported.

Appeal against Exemptions

Dissatisfied with the Commission’s findings, EU stainless steel producers lodged an appeal with the General Court of the EU requesting the annulment of all exemptions granted to cooperating producers in Vietnam, Taiwan, and Turkey.

Should the General Court of the EU uphold the EU producers’ claim in its entirety, anti-dumping and countervailing measures will remain in place and any exemptions will be retracted.

In the worst-case scenario, retroactive duties will be levied on all imports, including from producers whose exemption has been annulled. This retroactivity extends to the date of implementation of the two measures, i.e. 8 May 2024.

Leave to Intervene

With a significant number of EURANIMI members potentially affected by these proceedings, our association has applied for leave to intervene in this court case in favour of the EC’s position.

In a court case, an ‘intervener’ is a party who intervenes in the proceedings and has a direct interest in the outcome of the dispute. The intervener has certain rights, including the right:

• to be informed of the proceedings
• to consult case-documents
• to present arguments
• to be heard by the court
• to appeal

However, obtaining leave to intervene is one heck of a challenge. To be admitted as intervener, an association must factually demonstrate that:

1. it represents a significant number of undertakings active in the sector;
2. its objective includes protecting member interests;
3. the case may raise questions of principle affecting the functioning of the sector concerned;
4. the interest of its members may be significantly affected by the forthcoming judgement;
5. the association actively participated in the Commission’s investigation.

Admissibility

At first glance, it seems easy enough to meet these conditions. Not so! The court requires very detailed evidence before it will grant leave to intervene.

It is not enough to assert that the 282 sites operated by EURANIMI members are devoted to the storage, processing, and trading of stainless steel and aluminium and that EURANIMI’s interest in the case flows from that.

We must demonstrate, factually, that EURANIMI members import precisely those 19 products whose customs codes are subject of the measures, and more specifically that our members import substantial quantities of these products from exempted producers in Taiwan, Vietnam, and Turkey.

As our members operate in a highly competitive environment, any information collected should best remain anonymous yet still verifiable by the Court. After all, few importing distributors will agree to their sources and quantities imported being made public.

MRN codes for anonymity

And so, we provided the Court with a list of over 800 (!) MRN references: a unique customs reference which is automatically assigned by the competent customs authorities of the EU Member States once a customs declaration is accepted. This allowed us to ensure member anonymity whilst providing the Court with accurate import information.

Factual Demonstration

Thanks to our willing members, EURANIMI has been able to factually demonstrate that – over the past twelve months, for these 19 products, 3 countries, and 9 exempted producers – contributing members represent at least 33.5% of EU import volume as reported by EUROSTAT.

This, of course, is a minimum, as not all members were able to respond to our request for detailed information by the October deadline.

Lucky Friday 13th

On Friday 13 December 2024, the General Court confirmed it has accepted EURANIMI’s applications for leave to intervene in cases T-390/24 and T-391/24. The court case itself is scheduled to take place in 18 months’ time.

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