How have final tariffs on Chinese MEWPs entering the EU been calculated?

It follows the provisional duties first announced in July this year, with appeals from those concerned taking place since that date. The result is an overall marginally lower set of duties than were originally imposed. (See full list below).

The Berlaymont building - headquaters of the European Commission (Image: Andrzej via AdobeStock - stock.adobe.com)

The Commission first initiated the anti-dumping investigation with regard to ‘imports of mobile access equipment (MAE) originating in the People’s Republic of China’ last year in response to complaints that equipment was being dumped in the EU, resulting in significant injury to those based in the market.

The complaints were made by the Coalition to Restore a Level Playing Field in the EU Mobile Access Equipment Sector, commonly understood to include Haulotte and Manitou as primary parties in the group.

Responding to the EC investigation Manitou Group told Access International, “This information will re-establish from now a level playing field for all players on the EU market. This means to preserve European manufacturer business and that of hundreds of suppliers, continuing to innovate, preserving jobs and guaranteeing the safety of professionals throughout the EU”.

Speaking before the announcement of the final tariffs Haulotte said it was happy with the findings. “We are pleased to see that the EU has taken this decision. It shows they have listened. It is important that all manufacturers have equal and fair access to the market, wherever they come from.”

The Commission considered a range of submissions following the publication of the provisional tariffs including from Sinoboom and Dingli, as well as JLG and Genie, and the Chinese Chamber of Commerce for import and export of Machinery and Electrical products (CCCME). Read more about this below. 

Definitive tariffs confirmed

(Other companies are listed at the end of this article)

Investigation points 

Among other points, the commission respond to arguments that it was not in the EU’s interest to impose tariffs, and that it would impair a number of its own goals, including meeting emission targets as the supply of electric equipment would be reduced.

However, the Commission argued differently. It said, “although the overall price level of MAE was expected to increase, the impact on the users which were mainly the rental companies was less significant than if they were the direct consumers.”

The Commission added that any increase in equipment price would directly reflect in an increase of value of the assets. “The fact that the machines were used over a longer period diminished in the Commission’s view the negative effect of a potential price increase as well.”

A further point from the Commission was that the duties are designed to restore a ‘level playing field’ in the EU and would therefore have a positive effect on competition in the market. “It was also important for the main users – the rental companies – that production of MAE continues to take place in the Union market, to diversify their fleets. Therefore, the impositions of the duties would not jeopardize the achievement of green transition target of this industrial sector.”

An example of the views held by Chinese manufacturers concerning the tariffs came from China-based Zoomlion. “Dumping means selling your equipment in the export market at a price lower than in the domestic market. But for us it’s not the case - the equipment price is more or less the same in Europe considering the configuration difference,” said Ren Huili, General Manager of Zoomlion Intelligent Access Machinery, speaking to Access International. 

“People say we have low price equipment compared to manufacturers in some other countries but that is because we have an efficient supply chain.”

Ren adds, “We have many European clients - they are very satisfied with our products and services, but because of the tariff the customers are wondering what will happen next.

“Some of them have been hesitating buying and are waiting to see what will happen. They are thinking about the long-term plan, so the tariff has an impact.”

From a rental point of view Christopher Friedrich, member of the board at Germany-based System Lift, which represents more than 75 rental companies under a partnership arrangement, has mixed feeling on the matter. “Machine prices will rise temporarily, at least in the medium term. “

“I spoke to a manufacturer based in China about what would happen in terms of costs if they were to relocate their production to Europe. In that case, they would expect a price increase of 15-20%. So the important question is whether machine prices will rise, but more importantly, whether the industry will be able to adjust rental prices accordingly.”

Friedrich adds, “Due to inflation, for example, we have already raised rental prices in last two years but there are several others - larger rental companies that rent their machines at very low prices, and this won’t work out long-term.”

Stockpiling debate

The Commission also addressed stockpiling and the accusation that producers based in China increased their imports to the EU disproportionally after the beginning of the investigation in November 2023 was announced. However, the Commission found against this and therefore ruled that retrospective duties would not be introduced.

According to the report, the complainant stated that imports were massive and ‘did not respond to any logic of market demand’, and provided estimates showing an increase in imports from 33% up to 121%, along with photographic evidence of stock.

Arguing against this, the Chinese Chamber of Commerce for import and export of Machinery and Electrical products (CCCME) said production was based on orders tailored for specific customers, therefore it did not make sense for any operator to stockpile.

Secondly, the CCCME said that the lead time between orders and delivery should be taken into consideration, since the cycle from ordering to delivery to the EU takes between four and six months. Since the peak of imports occurred in January to March 2024 it was not related to the initiation of the investigation, which took place on 23 November 2023. Rather it was a result of the order backlog that was built up well prior to the initiation.

In response the Commission said, “On the basis of the above, the Commission concluded that after the initiation of the investigation, the volume of imports of the product concerned from China did not increase.”

While the definitive measures are not set to be widely announced until January 2025, the industry will already be preparing itself for their implementation.

Final thought 

Although truck mounts are not included in the tariffs, Access International asked Uwe Strotmann, the managing director of Germany-based vehicle mount specialist Ruthmann, what he thought the ramifications would be for the MEWP sector in the EU.

“Of course we see what happens in self-propelled market. I am not a judge on that but I see the market probably has too many players at the moment. So, if the Chinese manufacturers were to start producing truck mounts we may have comparative issues.”

Strotmann added that those involved would seek to work around the challenges. “I see companies now starting production in Europe. So, I see tariffs postponing the situation, rather than hindering them coming to Europe in the long term. That’s how business is, if people want to go there they will. If there is a barrier they try to solve it as we all do every day and therefore tariffs can only be temporary solution, in my opinion.”

Reminder of final tariffs:

Other companies include

• Lingong Heavy Machinery
• Zoomlion
• XCMG
• Haulotte
• Fronteq
• Liugong
• Hangcha
• Chufeng
• Reeslift
• Mantall
• Qiyun Group
• Juxin Machinery
• Yuntian Intelligent Machinery Equipment.