Cases & Deals

Chinese fasteners manufacturers succeed in antidumping appeal before Court of Justice of the EU

Clients Changshu City Standard Parts Factory

Jones Day successfully assisted Changshu City Standard Parts Factory and Ningbo Jinding Fastener in an appeal before the Court of Justice of the European Union (EU) against the antidumping duties imposed by the EU on imports of certain fasteners originating in China (C-376/15). These Chinese manufacturers are among the largest producers of carbon steel screws and bolts (fasteners) in the world. The EU Institutions had imposed antidumping duties on imports of those products from China into the EU, which our clients deemed to be illegal. The Court of Justice now confirmed this illegality, based on the claims and arguments developed and presented by Jones Day.

Typically, EU case law stresses the large discretion available to the EU Institutions when making determinations in antidumping investigations. It is rare for the Court of Justice to back exporters' claims about the methodology used by the EU Institutions in antidumping investigations, especially overturning the findings of the General Court reached about that methodology.

In this judgment, however, the Court of Justice accepted our claim that the exclusion of export transactions in a dumping calculation is illegal. The Court held that the corollary from "the EU institutions' exclusion from the calculation of the dumping margin of export transactions relating to certain types of the product under consideration [...] is that it is impossible for the institutions to measure the impact that those transactions might have on that calculation, and, therefore, those institutions cannot ensure that the dumping margin calculated reflects the full degree of dumping being practised."

As a result of the Court of Justice's judgment, the antidumping duties on imports of Changshu City Standard Parts Factory and Ningbo Jinding Fastener have been annulled. These duties amounted to respectively 38.3 percent and 64.3 percent of the value of the screws and bolts. EU importers can now claim back the antidumping duties they have paid in the past on imports of fasteners into the EU from our clients.

Moreover, the consequences of this judgment go beyond these specific antidumping measures. The EU will no longer be able to use the same methodology in future antidumping investigations. In addition, EU importers who paid antidumping duties on imports of other products that had been calculated based on this illegal methodology can also take action to obtain a repayment of such duties.