The European Commission has announced the initiation of an anti-subsidy proceeding concerning imports of aluminium foil originating in China. The Notice states:
The complaint was lodged on 21 October 2020 by six Union producers (‘the complainants’), representing more than 50 % of the total Union production of aluminium converter foil.
The timeframe for the case is set out here. Provisional measures are scheduled for 05 September 2021; definitive measures are scheduled for 04 January 2022.
The executive summary of the complaint provides additional details:
The product concerned is aluminium converter foil of a thickness of less than 0,021mm, not backed, not further worked than rolled, in rolls of a weight exceeding 10 kg, currently falling under CN code ex 7607 11 19 (TARIC codes 7607 11 19 60, 7607 11 19 **).
In terms of the subsidies, the complaint alleges:
the Chinese aluminum foil industry has received numerous countervailable subsidies from the Chinese government. The EU complainants have identified at least 11 types of other countervailable subsidies, which have benefitted the Chinese aluminium foil industry. Substantial benefits were provided to the Chinese aluminium foil producers in the form of policy loans, preferential credits, tax deductions and exemptions and the provision of inputs for Less Than Adequate Remuneration (LTAR). Furthermore, the EU complainants found in the accounts of two of the main Chinese producers of aluminium foils traces of direct grants they received pursuant to regional funds. The Chinese public authorities use these funds to promote encouraged sectors, increase their competitiveness and innovation, and promote their exports. All grants received are countervailable and there are good reasons to believe they represent the tip of the iceberg of the funds and various contributions the Chinese aluminium foil industry receives in China. Indeed, this industry is in an “encouraged sector” in China, as confirmed in official policy documents. Furthermore, the two investigated Chinese producers are officially granted the status of High Technology Enterprises, which entitles them to benefit from several of the identified national subsidy programmes. Hence, this industry receives substantial support from the various levels of Chinese government. On a prima facie case, Chinese ACF producers’ benefit obtained from the subsidies they received is at least 37,19%.
The European producers at issue are:
Carcano Antonio S.p.A
Eurofoil Luxembourg S.A.
Hydro Aluminium Rolled Products GmbH
Slim Aluminium S.p.A.
The Chinese producers/exporters are numerous and are listed in the executive summary of the complaint.