Plasteurope.com: On 12 June, the anti-dumping duties imposed by the EU on monoethylene glycol (MEG) imports from the US and Saudi-Arabia came into force (see Plasteurope.com of 15.06.2021). Will German customs authorities have to charge importers this punitive duty?

Wegner: Yes, customs has no discretionary power. It must levy the anti-dumping duties with every import transaction because it is a case of directly applicable EU law. Companies that purchase goods from the producers listed in the directive and have received lower customs rates must ensure that they comply with all the formalities on this. Otherwise, customs will impose the anti-dumping duties in full.

Plasteurope.com: What does that mean specifically for German plastics converters?

Wegner: If the market will allow it, importers will normally factor in the anti-dumping duties – and the raw materials will become more expensive. If converters cannot pass on the costs, their margins will shrink. Experience has shown that the supply situation does not usually change through anti-dumping duties. Converters should, however, check their trade agreements to see whether cost increases in long-term contracts can be directly passed on by importers.

Plasteurope.com: What can plastics converters do against the punitive duties?

Wegner: If the plastics converters do not import the product themselves, but purchase goods from wholesalers that have already been processed by customs, there are no legal grounds against the anti-dumping duties. Importers who pay the duties directly to customs can, on the other hand, have their legality checked by the courts by proceeding against the customs notifications or against the anti-dumping regulations themselves.

This is, however, often difficult because errors in the process would have to be proved. Companies could also claim that the imported goods differ essentially from the goods on which the EU applied the anti-dumping duties. However, here, too, proof is likely to be difficult to provide.