EU imposes import licensing for fasteners
16 May 2016
The European Commission has introduced a “prior-surveillance” system on many steel products including a wide range of fasteners. This means importers must obtain a licence before goods can be released into EU market circulation.
On 29th April 2016 the Commission published implementing regulation 2016/670 introducing a prior-surveillance system for imports of certain iron and steel products. The Commission says the system will “serve to anticipate short-term market developments and take the necessary actions, if and when needed”.
The mechanism is part of a series of measures aimed at supporting the EU steel sector, outlined on 16th March in the Commission’s communication “Steel: Preserving sustainable jobs and growth in Europe”. In the FAQ section the Commission said it would propose a prior-surveillance system on steel products. The document made no reference to fasteners.
Twenty fastener CN codes are specified by the regulation – including all those covered by the repealed anti-dumping measure on steel fasteners originating in China. Additionally codes for nuts are included and some codes also cover stainless steel fasteners.
When it pushed through the repeal of the anti-dumping measure, the Commission committed to monitor fastener imports on a close to real time basis. Member states must report prior-surveillance data to the Commission within ten days of each month end, which means the Commission will build a picture of the trend of fastener imports far quicker.
Prior-surveillance applies to imports from all countries except EU and EEA member states. It comes into force for imports received from 31st May 2016 and will continue for four years.
To obtain the licence importers must submit to a national competent authority (listed in the regulation) a description of the goods (trade name, TARIC code, place of origin and consignment); quantity in kilograms; value in Euros CIF EU frontier; a declaration of accuracy; plus commercial evidence of the intention to import. The licence is valid for four months, which means importers can apply in advance, as soon as they are able to provide all the required information. Some EU states have an electronic system; for others the process is manual.
The Commission says the decision to implement prior-surveillance “gives a clear signal to companies, including in exporting countries, that the Commission actively monitors market developments and is willing to take the necessary steps if justified. Prior-surveillance measures are foreseen in the EU’s safeguard instrument and can be introduced when import trends threaten to cause injury to Union producers.”
Data from prior-surveillance cannot be used directly to apply retrospective definitive anti-dumping or subsidy tariffs. According to the EU basic anti-dumping regulation these can only be backdated to 90 days before the application of provisional duties as a result of an anti-dumping investigation. However, surveillance data clearly can be used to evidence the need for an investigation and, within it, to justify retrospective application of definitive duties. The immediate concern for importers, though, has to be the administrative burden involved in applying for licences for all non-EU imports of the specified fasteners.
