The European Commission initiated an anti-dumping proceeding concerning imports of acesulfame potassium (potassium salt of 6-methyl-1,2,3-oxathiazin-4(3H)-one 2,2-dioxide; CAS RN 55589-62-3) originating in the PRC as well as acesulfame potassium originating in the PRC contained in preparations and/or mixtures comprising also other sweeteners and/or water. Acesulfame potassium is also commonly referred to as Acesulfame K or Ace K.
Acesulfame potassium (ace-SUHL-faym), also known as Acesulfame K (K is the symbol for potassium), or Ace K, is a calorie-free sugar substitute (artificial sweetener). In the European Union, it is known under the E number (additive code) E950.
“Dumping” is defined as the act of a manufacturer in one country exporting a product to another country at a price that is either below the price it charges in its home market or is below its cost of production. The goal of “dumping” is to capture the market or destroy the competition for a particular product or commodity so the price to the end user or consumer is lowered way below the competition, often below cost.
Three main Acesulfame-K suppliers in China and their Provisional antidumping duty in the preliminary determination, but the lawyers said it is very hard if below companies want to change their Acesulfame-K anti-dumping duty in next step. From now on, Europe buyers will have to bear extra taxes if import China Ascelfame potassium as below, and eventually how much the exact taxes will be finally know after six months.
|Company||Dumping margin||Injury margin||Provisional antidumpingduty|
|Anhui Jinhe Industrial Co., Ltd||97.8%||87.7%||87.7%|
|Suzhou Hope Technology Co., Ltd||89.1%||76.6%||76.6%|
|Anhui Vitasweet Food Ingredient Co., Ltd||37.4%||23.1%||23.1%|
|All other companies||97.8%||87.7%||87.7%|
Details about the Assulfame-k anti-dumping preliminary determination, please visit the document
From the anti-dumping duties above, it is obvious the market of Jinhe and Hope will be taken place by Vitasweet in Europe in next 5 years, as clients need to pay more taxes if buy Acesulfame-k from Jinhe and Hope.
What’s the reason of Acesulfame-K antidumping?
China Acesulfame-K price is around USD6.0/kg, Acesulfame-K manufactured by Germany company Nutrinova Nutrition Specialties & Food Ingredients GmbH the price is very high, around USD20.0/kg, so many Europe buyers turn to China suppliers. The market cake was loss is the reason of initiating the antidumping.
To be Frank, why China products price are lower, it is not fair to China companies.
What are other factors of the total cost for the “China price”? First, there are the actual costs of the raw materials used to manufacture the product, There are many raw materials ketene dimer suppliers. So make the Acesulfame potassium price down.
Second, labor cost in China is lower compared with Europe and Management cost are not involved in price.
Third, environment cost is little in China. Water and air pollution is serious in recently years.
Next, there is the cost of taxes and duties. China is one of over 150 countries that utilize a Value Added Tax (VAT) system. It is a tax only on the “value added” to a product, material, or service at every state of its manufacture or distribution. The VAT rate is generally 17%, or 13% for some goods. Chinese companies receive a VAT refund from the government for materials of products produced for export. Europe imports to China are charged a VAT, but Europe doesn’t have a VAT to charge Chinese imports. Acesulfame potassium refund is 13%, last year is 9%.
The case of investigating China Aspartame anti-dumping is established. Seven manufacturers are in the list, preliminary determination will be generated after nine month.