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China levys anti-subsidy duty on EU potato starch imports
May '11
Potato starch, which is widely used in textile finishing, will invite an anti-subsidy tariff of 7.7 to 11.19 percent when imported from the European Union to China.

China will levy a duty of 7.7 percent when potato starch is imported from France's Roquette Freres SA, and 11.19 percent when imported from the Netherland's Avebe UA. The date from which the new tariff will come into effect, however, has not yet been announced.

The decision, announced by the Chinese Ministry of Commerce, is the result of an anti-subsidy probe on EU imports of potato starch jointly launched by the Ministry and the Chinese association CSIA in June 2010.

The levying of anti-subsidy duty is to protect the domestic potato starch industry which is facing tough competition from EU exports at below-costs or dumped prices.

At present, however, only 10 percent of the 2 million tons of potato starch produced in the EU is exported to China.

The move by the Chinese Government is expected to stabilize the market price, so necessary to help the domestic potato starch industry to rebound.

It is noteworthy that China's decision to impose anti-subsidy duty has come two days after the European Commission's announcement of imposition of 4 to 12 percent countervailing tariff rates and 8 to 35.1 percent duty rates on Chinese coated fine paper.

Fibre2fashion News Desk - China

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