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EU Rebukes Plastic-Bag Dumpers in China

BRUSSELS (CN) - The European legislature upped the tariff for a Chinese producer of plastic bags after an investigation showed the company channeled other companies' products to circumvent an anti-dumping regulation.

The Council of the European Union on Tuesday amended a 2006 regulation imposing anti-dumping duties on plastic bag imports from China. That regulation imposed duties scaled from about 5 percent to nearly 29 percent.

The European Commission, the council's executive branch counterpart, investigated Chinese company Xiamen Xingxia Polymers after obtaining evidence that indicated it was allowing plastic-bag producers with higher duty rates to channel products through it.

An incomplete questionnaire received from Xiamen indicated that, after the anti-dumping regulation was passed, its exports actually increased and even doubled in 2007 and 2008.

During this time, Xiamen prices remained below the EU's established protective amount.

The investigation also showed that payments from European buyers for products from Xiamen were actually made to companies with a higher duty rate.

This week's amendment imposes an anti-dumping duty of 28.8 percent on Xiamen.

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