EU Imposes Five-Year Duties Against India on Aroma Chemical

30/01/2008 12:00 - 1027 Views

The European Union imposed five-year tariffs on a chemical from India used in perfumes and soaps to help Spanish producers compete against cheaper imports.

The duties as high as 7.5 percent punish Indian exporters of dihydromyrcenol for selling it in the EU below domestic prices or production costs, a practice known as dumping.

Destilaciones Bordas Chinchurreta SA, Sensient Fragrances SA and Takasago International Chemicals Europe SA, three Spain- based producers, suffered ``injury'' as a result of dumping by Indian exporters, the EU said in a decision today in Brussels. The five-year duties follow provisional levies introduced six months ago and will take effect after publication in the EU Official Journal by Jan. 29.

Indian dihydromyrcenol exporters expanded their combined share of the EU market to about 17 percent in the 12 months through September 2006 from less than 1 percent in 2003, the European Commission, the EU's regulatory arm, said when imposing the provisional duties last July.

The three Spanish companies' share of the European market was unchanged at around 34 percent over the same period, when their dihydromyrcenol businesses became unprofitable, the commission said at the time.

The provisional duties followed an investigation resulting from a September 2006 dumping complaint by Destilaciones Bordas Chinchurreta and Sensient Fragrances, a unit of Sensient Technologies Corp. of the U.S.

Like the six-month duties, the five-year levies on dihydromyrcenol are 7.5 percent against all Indian exporters except Neeru Enterprises. That company, which faced a 3.3 percent provisional levy, is subject to a 3.1 percent definitive duty and importers will be refunded the difference.

When the commission introduced the provisional anti-dumping protection in July, a Sensient Fragrances representative in Granada, Spain, said the company had expected a duty rate of about 12 percent.

To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net

 

Last Updated: January 21, 2008 09:51 EST
By Jonathan Stearns

Source: www.bloomberg.com

 
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