The European Public Prosecutor's Office has filed an indictment on charges of smuggling against a steel trading company in Cologne, Germany, it told Argus.
The indictment was filed in the Higher Regional Court in Cologne against two individuals and relates to an investigation by the European Anti-Fraud Office (Olaf) into the "misclassification of goods" to avoid anti-dumping duties.
One individual is the managing director of the company, and the other is responsible for the importation of steel products.
Olaf and the prosecutor said the trading company in question was clearing Chinese heavy plate, which carries a dumping duty as high as 73.7pc, under the HS code for coated steel — 7210. Import documentation for the cargo, which was uncovered in 2019, said the steel was coated in paint that prevented rust and corrosion. But Olaf said the steel had a "simple" layer of varnish and the declaration was not true. The prosecutor said the correct TARIC number for the cargo was 7208521000. The court has not yet scheduled hearings into the case. The evaded duties would amount to about €6.5mn, according to Olaf.
Olaf also investigated a cargo of Chinese material that cleared in Bilbao, sold by an importer who has now gone out of business. The cargo was alleged to be plate passed off as slab, but no fraud was established in this case and the Public Prosecutor's Office has not filed any charges. The customs agent that cleared that cargo maintained it was slab, not plate, and said no charges were filed in response.
EU27 imports of Chinese coated steel under the HS code 7210 increased dramatically after the imposition of duties on Chinese plate in 2016. Imports rose from 1.8mn t in 2015 to 2.8mn t in 2016, and 2.4mn t in 2017. They have normalised since, dropping back to 1mn t in 2022.
