Oct 11, 2023
Anti-circumvention and the risk with “Consigned from…” – Stainless Espresso

Anti-circumvention and the risk with “Consigned from…”

Since we had received inquiries on the subject EU anti-circumvention and “consigned from”, today we will once again go into the possible risks of offering goods with non-local origins to buyers in the European Union from countries affected by the anti-circumvention proceedings.

Risks when purchasing stainless steel from the affected countries

Currently, when European buyers of cold rolled stainless steel sheet and coil are offered material from, for example, Taiwan, Turkey or Vietnam, regardless of whether it was manufactured in that country OR is consigned ONLY from there, the following risks exist:

Incorrect country of origin: be wary of suppliers who provide false information about where the goods originate to avoid additional duties.

Country of consignment: Even if the material has a different origin than the shipper country, it will be registered upon import into the EU and from then on will be subject to the risk of anti-dumping and/or anti-subsidy duties.

An example of “Consigned from…”

Example: If you are offered stainless steel sheets from Taiwan with the origin EU or China, for example, then this material will be registered upon import into the EU and is subject to the risks described.

Our Tip: As a buyer, be careful if the seller is not willing to bear the full risk when importing.

Risky: Small prices are supposed to lure customers

A dangerous business model is once again being driven through the market by a metal trader from the Far East who claims to have exclusive rights with stainless steel manufacturers in Asia.

Small prices not covered by valid offer

In this model, large quantities of orders are collected at much too low prices, which are not covered by already available or purchased production capacities. 

Can’t get material? Trader lets orders burst!

This is not the first time that customers of this trader run the risk of orders bursting because the supplier does not have the exclusive rights he claims to have. And as can be heard from the market, this supplier is then reluctant to immediately repay the advance payments made, which can lead to high follow-up costs for the companies concerned.

Steel dispute between EU and US before important agreement?

According to various media reports, the European Union and the United States are said to have agreed on a temporary solution to the ongoing steel dispute. An announcement on this is expected to be made in Washington on October 20, 2023, but has not yet been officially confirmed.

Threat of new tariffs against steel from China?

According to media reports, all that is known so far is that both sides are said to have agreed on new measures against state-subsidized steel from China, among other things, and that this could presumably lead to new tariffs against Chinese steel imports. The association of European steel producers, EUROFER, has also already taken a stand in this regard and made clear the need for such measures against China.