The European Union prolonged for five more years a tariff on a chemical from China used in cosmetics and perfumes to help France's Rhodia SA compete against cheaper imports.

The duty on coumarin of 3,479 euros, or $5,419 (Canadian), a tonne is meant to limit the risk of Chinese exporters selling in the EU below cost, a practice known as dumping. Rhodia is the 27-nation bloc's only producer of coumarin.

The verdict is a victory for European chemical industry lobby group Cefic, which filed a February 2007 request for an extension of the tariff on behalf of Rhodia. The group said letting the duty lapse could lead to a "substantial increase" in EU imports from China and "further injury" to Rhodia.

Dumped imports accounted for 20 per cent to 30 per cent of the EU coumarin market in the 12 months through March 2007.