A World Trade Organization panel report shows that China's anti-dumping duties on imports of X-ray security scanners from the EU were in breach of WTO anti-dumping rules. Thus, China will be expected to remove its anti-dumping duties on EU imports of X-ray security scanners, if the report is not appealed within 60 days.

China's anti-dumping duties on imports of X-ray security scanners from the EU were in breach of WTO anti-dumping rules. This is the conclusion of the DS425 World Trade Organization panel report which can still be appealed within 60 days. In particular, the panel found China violated WTO rules in all aspects of the investigation challenged by the EU. In July 2011, the EU won the case about China's export restrictions on raw materials.

China's anti-dumping investigation concerned X-Ray Security Inspection Equipment - the so-called "security scanners" from the European Union. The trade flow at stake was approximately €70 million of EU exports to China per year at the time when the duties were imposed. EU exports were severely hampered as a result of the duties, ranging from 33.5% to 71.8%.

In July 2011 the EU requested WTO consultations on the matter, but these failed to bring about an acceptable solution. As a consequence, the EU challenged, for the first time ever, a Chinese trade defence measure before a WTO panel in December 2011. The parties concerned have the possibility to appeal against the panel's ruling before the WTO Appellate Body within 60 days. In the event of an appeal, the WTO Appellate Body will re-examine issues of law invoked by the parties to the dispute and issue a ruling within 60 to 90 days. If no appeal is filed, the report will be adopted by the WTO Dispute Settlement Body and China will be bound to comply with the recommendations of the panel report to bring its measure into conformity with WTO rules.