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EU to initiate anti-circumvention proceedings on discs
The Trade Department announced today (Sunday) that the European Union (EU) had initiated anti-circumvention investigations on imports of 3.5" microdisks from Hong Kong and eight other countries. This is the first anti-circumvention case initiated under the EU's new Anti-dumping Regulation that came into force on January 1 this year.
The EU's action has stemmed from a complaint filed by the Committee of European Diskette Manufacturers (DISKMA). DISKMA has alleged that 3.5" microdisks are exported from or via third countries in order to circumvent the EU's anti-dumping duties imposed on the like products manufactured in China and Taiwan.
These third countries named by DISKMA include Canada, Malaysia, Macau, Indonesia, Thailand, India, Singapore, the Philippines and Hong Kong.
The EU is charging anti-dumping duties on imports of 3.5" microdisks from China and Taiwan at residual rates of 39.4 per cent and 32.7 per cent respectively. Hong Kong's exports of 3.5" microdisks to the EU are also subject to anti-dumping duties at individual company rates ranging from 6.7 per cent to 13.3 per cent or at residual rate of 27.4 per cent. Any Hong Kong company found guilty of circumvention would then be subjected to the higher duties applicable to China or Taiwan. For those innocent producers, the existing anti-dumping rates will maintain.
"The Hong Kong Government is gravely concerned about the EU's anti- circumvention action," said Miss Emma Lau, Assistant Director-General of Trade.
"We consider that anti-circumvention action is incompatible with GATT/WTO principles. We also believe that the allegation of circumvention of anti-dumping duties by Hong Kong is unjustified," she said.
"Our domestic exports of unrecorded magnetic diskettes (specific trade statistics on 3.5" microdisks not available) to the EU have declined by 70 per cent in 1994 over 1993. During the same period, Hong Kong's share of the EU market has also dropped from 19 per cent to 8 per cent. It is illogical for exports to drop so drastically whilst circumvention is alleged."
On the way forward, Miss Lau said the Hong Kong Government would adopt a robust approach in seeking termination of the case.