German exports to China hit by slow customs processing, tech firms warn
26/10/2023 12:22
By Ludwig Burger and Alexander Hübner
FRANKFURT/MUNICH, Oct 26 (Reuters) - German technology
groups have warned they are being hit by delays in getting
China-bound exports through customs, following the introduction
of a German government strategy to reduce economic dependence on
demand from China.
German chip-making kit supplier Suess MicroTec SMHNn.DE
late on Wednesday cut its sales forecasts for the second time in
three months, blaming tightened controls for exports to China.
That sent shares in the maker of lithography equipment and
other chipmaking gear tumbling 11% immediately after the
statement and another 12% on Thursday.
Suess said deliveries worth 23.5 million euros ($25 million)
were stuck at customs. Though trade rules had not changed,
customs have significantly stepped up their inspections since
August, it added.
German customs and the Federal Office for Economic Affairs
and Export Control (BAFA) did not immediately respond to a
request for comment.
In July, the German government urged domestic firms to
reduce their dependence on demand from China as part of a
strategy of "de-risking" its economic relationship with the
country.
Lobby group Asia-Pacific Committee of German Business (APA)
told Reuters the BAFA office was appearing to scrutinise export
requests more closely or escalate requests to the economy
ministry more often.
PROCESSING DELAYS
"Manufacturers from all relevant industries have complained
for several months of delays in the processing of export
requests," said APA Managing Director Friedolin Strack, noting
companies have stepped up efforts to obtain a type of export
certificate to declare products unobjectionable.
Unlisted technology group Trumpf, with about 4.2 billion
euros ($4.4 billion) in revenue, said it was affected in a
similar fashion.
"We register in general that exports to China of high-tech
products, which include our lasers, are being reviewed more
thoroughly than in previous years," said a spokesperson.
Trumpf makes lasers for Dutch maker of semiconductor
manufacturing gear ASML ASML.AS .
Suess CEO Burkhardt Frick told Reuters it was largely left
in the dark about the cause of delays, adding that customs
officers were escalating more requests to BAFA, which has not
turned down any but processing times there take between two to
five months.
"Our customers' patience is wearing thin but in the short
term there is no alternative," said the CEO.
Some high-tech companies with Chinese customers said they
were not affected. Siltronic WAFGn.DE , a maker of
semiconductor wafers, said it was able to meet customs
requirements, while Aixtron AIXGn.DE said it had allayed
customs concerns early this year by adjusting its gear to rule
out use in 5G wireless networks and radar.
Still, the German chamber of commerce said the political
environment was hobbling exports to China.
"You really do wonder who is capable of providing all the
(requested) data," its Managing Director Martin Wansleben told a
press conference on Thursday.
($1 = 0.9485 euros)
(Reporting by Alexander Huebner in Munich, Rene Wagner,
Christian Kraemer and Thomas Escritt in Berlin, Anneli Palmen in
Duesseldorf, and Ludwig Burger in Frankfurt; Editing by David
Holmes)
((ludwig.burger@thomsonreuters.com; +49 30 220133634))