The Troubles of Stainless Steel Tubes in China
Tariff wars between countries have existed for hundreds of years. A tariff war begins when one country starts selling products for below market value in another country. The second country wants their own companies to be able to remain competitive in the market, so the country places tariffs on the country selling their products for less. This requires the country to raise the prices of their items to cover the cost of the tariff, and the price of the goods evens out between the two countries.
One of the most recent tariff problems has occurred between China and Japan and the European Union. Japan and companies in the European Union were able to sell SS tubing in China for below market value. China did not like this occurrence, and has issued an investigation of the practice as of August 2012. The planed investigation will last until March 2013. China hopes to discover why Japan and the European Union are able to sell their stainless steel tubes in China for less.
While the investigation takes place, rather than institute a tariff on Japan and the European Union,China has created anti SS tube dumping deposits that the other countries must pay before they can sell their products in China. The deposits are calculated based on the customs value of the stainless steel tubes, and is usually between 9.7 to 39.2 percent of the stated value. This high deposit cost is likely to be high enough to discourage Japan, the European Union, and other countries from selling their products at such a low rate.China hopes that this will even out the distribution of stainless steel tubes in China, giving Chinese manufacturers the chance to remain competitive in the market.
This kind of tariff war is continually going on in countries all over the world, and is a serious cause of concern for manufacturers that sell goods to other countries. Hopefully the governing agents for each country will find a happy medium between the sale of local and foreign merchandise.