11 October 2023 – After there were questions about the EU anti-circumvention case against stainless steel and the risk with “Consigned from…” we are going into it again today and clarify important points. EU and US close to preliminary agreement in steel dispute? New anti-subsidy measures planned against steel from China? And a warning about dangerous business practices with small prices.
- Anti-circumvention and the risk with "Consigned from…"
- Risky: Small prices are supposed to lure customers
- Steel dispute between EU and US before important agreement?
Anti-circumvention and the risk with “Consigned from…”
Since we had received inquiries on the subject EU anti-circumvention and “consigned from”, today we will once again go into the possible risks of offering goods with non-local origins to buyers in the European Union from countries affected by the anti-circumvention proceedings.
Risks when purchasing stainless steel from the affected countries
Currently, when European buyers of cold rolled stainless steel sheet and coil are offered material from, for example, Taiwan, Turkey or Vietnam, regardless of whether it was manufactured in that country OR is consigned ONLY from there, the following risks exist:
- Incorrect country of origin: be wary of suppliers who provide false information about where the goods originate to avoid additional duties.
- Country of consignment: Even if the material has a different origin than the shipper country, it will be registered upon import into the EU and from then on will be subject to the risk of anti-dumping and/or anti-subsidy duties.
An example of “Consigned from…”
Example: If you are offered stainless steel sheets from Taiwan with the origin EU or China, for example, then this material will be registered upon import into the EU and is subject to the risks described.
Our Tip: As a buyer, be careful if the seller is not willing to bear the full risk when importing.
Risky: Small prices are supposed to lure customers
A dangerous business model is once again being driven through the market by a metal trader from the Far East who claims to have exclusive rights with stainless steel manufacturers in Asia.
Small prices not covered by valid offer
In this model, large quantities of orders are collected at much too low prices, which are not covered by already available or purchased production capacities.
Can’t get material? Trader lets orders burst!
This is not the first time that customers of this trader run the risk of orders bursting because the supplier does not have the exclusive rights he claims to have. And as can be heard from the market, this supplier is then reluctant to immediately repay the advance payments made, which can lead to high follow-up costs for the companies concerned.
Steel dispute between EU and US before important agreement?
According to various media reports, the European Union and the United States are said to have agreed on a temporary solution to the ongoing steel dispute. An announcement on this is expected to be made in Washington on October 20, 2023, but has not yet been officially confirmed.
Threat of new tariffs against steel from China?
According to media reports, all that is known so far is that both sides are said to have agreed on new measures against state-subsidized steel from China, among other things, and that this could presumably lead to new tariffs against Chinese steel imports. The association of European steel producers, EUROFER, has also already taken a stand in this regard and made clear the need for such measures against China.
- Are anti-circumvention actions now coming against EU stainless steel?
- CBAM: EC again shows questionable behaviour
- EU climate tariff CBAM enrages German businesses
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.