2nd UPDATE: China Sets Effective Duty For EU X-Ray Equipment Imports

9th Jun 2010 09:48

(Adds one of the companies named in the ruling.) By J.R. Wu Of DOW JONES NEWSWIRES BEIJING (Dow Jones)--China on Wednesday effectively levied anti-dumping duties on imports of X-ray equipment from the European Union by requiring companies to pay deposits for such imports, after the initial findings of an investigation launched late last year showed evidence of dumping. The move, which comes on the heels of punitive measures from the U.S. against Chinese drill pipe imports, suggests trade tensions between Beijing and its biggest trading partners aren't likely to fade anytime soon given the wobbly global economic recovery. Effective Thursday, importers of some X-ray security inspection equipment from the EU will be required to set aside deposits with Chinese customs ranging from 48.2%-71.8% according to the level of dumping, the Ministry of Commerce said in a statement on its website. The ministry's ruling named only Germany's Smiths Heimann Gmbh, which will be required to pay a deposit of 48.2%. The ruling said all other EU companies will have to pay deposits of 71.8%. Officials at Smiths Heimann in Germany were not immediately available for comment. Smiths Heimann is part of Smiths Detection, which makes X-ray inspection systems and explosive-detection systems and is part of industrial conglomerate Smiths Group PLC (SMIN.LN). The dumping has harmed China's industry, the ministry said. The initial decision will likely be followed by a ruling on actual anti-dumping duties once Chinese authorities complete their investigation in a few months. In October, when China announced its investigation into the sales of X-ray security inspection equipment from the EU, it said the probe was likely to end Oct. 23, 2010, but could be extended to April 23, 2011. China's announcement about the investigation came after the EU in early 2009 began a similar probe over dumping of imports of Chinese X-ray scanners in Europe. Wednesday's preliminary decision by China against its largest trading partner came as the U.S.--China's second-largest trading partner--decided Tuesday to impose a 15.72% preliminary countervailing duty against some drill pipe imports from China. Late last month, China Vice Commerce Minister Zhong Shan, at a working meeting about combating countervailing duties, indicated the country's trade frictions with Western nations would persist for some time. He said trade disputes will be reflected on the macro-level, including in the "collision" of the countries' economic development strategies. -By J.R. Wu, Dow Jones Newswires; (8610) 8400-7711; [email protected] (END) Dow Jones Newswires June 09, 2010 04:48 ET (08:48 GMT)