Russia Faces Possible EU Tariffs on Aluminum Foil

The European Union threatened to impose tariffs on aluminum foil from Russia to curb competition for EU producers such as Eurofoil Luxembourg SA and Bulgaria-based Alcomet AD.

The EU opened a probe into whether Russian exporters of the wrapping sold it in the 28-nation bloc below cost, a practice known as dumping.

The inquiry will determine whether aluminum foil from Russia “is being dumped and whether the dumped imports have caused injury to the union industry,” the European Commission, the bloc’s trade authority in Brussels, said today in the Official Journal. The commission has nine months to decide whether to impose provisional anti-dumping duties for half a year and 15 months to decide whether to apply “definitive” levies for five years.

The investigation stems from an Aug. 25 dumping complaint against Russia by a group of European aluminum-foil manufacturers including Eurofoil Luxembourg and Alcomet, said the commission. The group, also made up of German producers Hydro Aluminium Rolled Products GmbH and AFM Aluminiumfolie Merseburg GmbH and Slovenia-based Impol doo, filed the complaint on behalf of producers that account for more than a quarter of the EU’s output of the type of aluminum foil subject to the probe, according to the commission.

‘Without Merit’

United Co. Rusal, which says it is Russia’s only producer of aluminum foil, described the complaint by EU-based competitors as being “without merit.”

Moscow-based Rusal, the world’s biggest aluminum producer, also pledged in an e-mailed statement to cooperate with EU authorities to prove the fairness of its export prices and to seek a “fair and favorable solution.”

The inquiry covers aluminum foil in rolls as wide as 650 millimeters (25.6 inches) and a weight exceeding 10 kilograms, with a thickness between 0.008 millimeter and 0.018 millimeter.

On Oct. 4, the commission began an inquiry into whether to renew for another five years existing EU anti-dumping duties on this kind of aluminum foil from China and Brazil while letting lapse a similar levy against Armenia.

In 2001, the EU imposed a five-year anti-dumping duty of 14.9 percent on Russian aluminum foil.

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