In a recent development reported by the European Public Prosecutor’s Office (EPPO) in Cologne, Germany, two Chinese citizens are facing legal action for allegedly evading anti-dumping duties through a German company. The case involves 20 shipments of aluminum foil imported into Germany.
According to the allegations, the defendants falsely declared the goods under a fake tariff code or falsely claimed the origin country to be Myanmar instead of China in order to evade paying anti-dumping duties. Their fraudulent activities resulted in a total loss of 474,903.94 euros to the European Union.
Furthermore, one of the defendants is accused of directly selling aluminum foil to German customers through a company in Myanmar without disclosing that the foil was produced in China. As a result, these German customers submitted customs declarations based on false information, leading to a loss of 156,133.36 euros. The same defendant is also suspected of evading commercial import duties.
If found guilty, the defendants could face substantial prison sentences and additional fines.
The European Public Prosecutor’s Office is an independent prosecuting body within the European Union responsible for investigating, prosecuting, and adjudicating crimes that harm the EU’s economic interests.
In recent years, China’s excessive production of aluminum foil has led to dumping in foreign markets, prompting countries like the United States and the EU to impose anti-dumping duties.
On February 27, 2018, following an investigation, the U.S. Department of Commerce made affirmative final determinations regarding anti-dumping and countervailing duties on aluminum foil imported from China. After a vote by the U.S. International Trade Commission (USITC), the U.S. officially imposed cumulative anti-dumping and countervailing duties of approximately 188% on Chinese aluminum foil starting on April 19, 2018, for a period of five years.
Similarly, in an effort to combat dumping and subsidization of products, the European Commission announced on March 13, 2018, that it was considering re-imposing a five-year anti-dumping tariff – with the highest rate reaching 35.6% – on aluminum foil imported from China weighing not more than 22 pounds.
Previously, the EU had implemented 53 retaliatory measures on steel products, including 27 specifically targeting goods from China.
In June of this year, following a second sunset review investigation on anti-dumping measures, the European Commission decided to continue levying anti-dumping duties ranging from 6.4% to 34.2% on Chinese aluminum foil. Faced with these challenges, Chinese companies have resorted to transshipment through third countries to circumvent these high tariffs and re-enter the European market.
In response to the issue of Chinese companies bypassing anti-dumping duties by routing through third countries, the U.S. Department of Commerce announced on July 18, 2022, that it initiated a circumvention inquiry on aluminum foil imported from China. The inquiry aims to examine whether aluminum foil materials originating from China are being assembled or processed into finished products in countries like Korea and Thailand before being exported to the U.S. to evade existing anti-dumping and countervailing duties.