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Seven TV makers regain access to EU market
( 2002-09-05 08:52 ) (1 )

Seven Chinese colour TV makers finally won access to European Union (EU) markets after an undertaking was signed with the EU.

The undertaking was accepted by the EU after a 15-year-long anti-dumping investigation on Chinese-made colour television receivers which barred most of the Chinese products from the markets because of high duties.

However, colour TV sets made by other companies in the country, except the seven involved, will still face a duty rate of 44.6 per cent.

The seven companies include Xiamen Overseas Chinese Electronic Co Ltd, Haier Electrical Appliances Corporation Ltd, Hisense Import & Export Co, Konka Group Co Ltd, Sichuan Changhong Electric Co Ltd, Skyworth Multimedia International (Shenzhen) Co Ltd, TCL King Electrical Appliances Co Ltd.

According to an official from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), who declined to be named, the seven companies promised they will sell the product directly from China to customers in the EU.

Meanwhile, this undertaking provides for quantitative ceilings in defined periods for sales to the EU members.

The relevant price and quantitative limits will not be released for commercial confidential, he said.

If the relevant ceilings are reached, the anti-dumping duty in force will be levied, he said.

Also, a breach or withdrawal in the undertaking or a suspected breach by any of the companies concerned or the CCCME shall be considered as a breach of the undertaking by all signatories, and an anti-dumping duty may be imposed, he said.

Seven Chinese companies offered the joint undertaking with help from the CCCME.

The CCCME will also provide the EU with regular and detailed information concerning the seven companies' exports to EU members.

Li Yong, general manager of the Overseas Trading Co under the Xiamen Overseas Chinese Electronic Co Ltd, said he is happy with the EU's decision.

"We have long been preparing for export to EU members which we regard as the third largest market," Li said.

For a decade, Li's products were shut-out from the EU market due to high duty rates.

The EU decided to impose an anti-dumping duty around 20 per cent on small screen colour TVs originating from China in 1991, and spread the duty to large screen sets in 1995.

In a review in 1998, the EU amended the anti-dumping duty to 44.6 per cent to all sizes of colour TV sets from China.

Li's company filed a lawsuit against the decision and was the only company to do so in 1999. They were followed by the other six companies in 2000.

"As far as we know, this is the first time the EU accepted an undertaking since 1990," Li said.

"Although we spent a lot to lead the suit, we are happy that we and the other six companies can return to the EU and have share of this big market," Li said.