EFDA concerned at administrative burden of surveillance measure
17 May 2016
Fastener distributors are just beginning to work out how to comply with the EU’s wide-ranging prior-surveillance measure but it is already clear it represents a heavy and long-term administrative burden for importers, says the European Fastener Distributors Association (EFDA).
EFDA members are the national associations in Britain and Ireland, France, Germany, the Netherlands, Italy and Spain, as well as companies from a growing number of other European countries through MEFDA.
Volker Lederer, EFDA president, is concerned the European Commission has made another abrupt decision, with wide-ranging and complex implications for importers, without consulting the organisation representing fastener distributors across Europe. Headlined as addressing concerns over over-production of subsidised steel in China, the prior-surveillance system also directly impacts the import of most steel fasteners and some stainless steel fasteners – not just from China but from all non-EU and EEA countries.
Importers must obtain a licence for every imported consignment of more than 2,500kg – providing accurate, detailed information. While some EU states have electronic systems for import licencing others still require paper applications. Behind every application are complex calculations by tariff code and in many cases conversion from different shipment terms (e.g. FOB to CIF) and transaction currencies.
Prior-surveillance should be a safeguard measure designed to deal with short-term critical conditions, says EFDA, yet this measure has been applied for the maximum duration, presenting fastener importers with the additional administrative burden for four years.
It is clearly important, says Volker Lederer, that any new anti-dumping investigation on fasteners avoids the mistakes that led to the repeal of the previous measures. Prior-surveillance will accelerate the collection of import data the Commission apparently wants before deciding on a new investigation. The consequence, however, is to inflict a significant and long-term administrative burden on fastener distributors, which work extremely hard to manage a highly efficient and responsive supply chain to key European industrial sectors.
“That is simply not good for European business,” adds Volker Lederer. “EFDA’s commitment to free and fair trade means it is always ready to engage with the Commission on appropriate measures that ensure a sustained and balanced competitive environment. It is regrettable, that instead, this measure will undermine the efficiency of the fastener distribution sector, a major contributor to the EU economy and a vital supporter to every EU industrial sector.”
