# EUR-Lex - 52012PC0544 - EN

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# 52012PC0544

**Proposal for a COUNCIL REGULATION clarifying the scope of the definitive anti-dumping duties imposed by Regulation (EC) No 383/2009 on imports of certain PSC wires and strands originating in the People's Republic of China /* COM/2012/0544 final - 2012/0256 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

|| Grounds for and objectives of the proposal This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community[1] (‘the basic Regulation’) in the proceeding concerning the review limited to the product scope of the measures applicable to imports of certain pre- and post-stressing wires and wire strands of non-alloy steel (PSC wires and strands) originating in the People’s Republic of China.

|| General context This proposal is made in the context of the implementation of the basic Regulation and is the result of an investigation which was carried out in line with the substantive and procedural requirements laid out in the basic Regulation.

|| Existing provisions in the area of the proposal A definitive anti-dumping duty on imports of certain pre- and post-stressing wires and wire strands of non-alloy steel (PSC wires and strands) originating in the People’s Republic of China imposed by Council Regulation (EC) No 383/2009[2].

|| Consistency with other policies and objectives of the Union Not applicable.

2.           CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

|| Consultation of interested parties

|| Interested parties concerned by the proceeding have had the possibility to defend their interests during the investigation, in line with the provisions of the basic Regulation.

|| Collection and use of expertise

|| There was no need for external expertise.

|| Impact assessment This proposal is the result of the implementation of the basic Regulation. The basic Regulation does not provide for a general impact assessment but contains an exhaustive list of conditions that have to be assessed.

3.           LEGAL ELEMENTS OF THE PROPOSAL

|| Summary of the proposed action On 4 October 2011, the Commission initiated a partial interim review investigation of the anti-dumping measures applicable to imports of PSC wires and strands originating in China, limited to the examination of the product scope. The applicant claimed that a particular product type, galvanised stranded wire consisting of seven wires, should be excluded from the product scope under measures on the grounds that this product type has different basic physical and technical characteristics from those of the product scope subject to the existing measures. The investigation showed that the product type requested to be excluded does indeed not fall fully under the definition of the product concerned as it has – physical differences regarding the diameter of the wires, – a clearly different application than the product concerned and – is used in a different industry which was not investigated in the original anti-dumping proceeding. Therefore, the galvanized stranded wire consisting of seven wires respecting the International Standard IEC 61089 or the European/Cenelec Standard UNE-50182 should be excluded from the scope of the measures. It is therefore proposed that the Council adopt the attached proposal for a Regulation which should be published in the Official Journal of the European Union.

|| Legal basis Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community.

|| Subsidiarity principle The proposal falls under the exclusive competence of the Union. The subsidiarity principle therefore does not apply.

|| Proportionality principle The proposal complies with the proportionality principle because the form of action is described in the above-mentioned basic Regulation and leaves no scope for national decision.

|| Indication of how financial and administrative burden falling upon the Union, national governments, regional and local authorities, economic operators and citizens is minimized and proportionate to the objective of the proposal is not applicable.

|| Choice of instruments

|| Proposed instrument: Council Regulation.

|| Other means would not be adequate because the basic Regulation does not provide for alternative options.

4.           BUDGETARY IMPLICATION

|| The proposal has no implication for the Union budget.

2012/0256 (NLE)

Proposal for a

COUNCIL REGULATION

clarifying the scope of the definitive
anti-dumping duties imposed by Regulation (EC) No 383/2009 on imports of
certain PSC wires and strands originating in the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union,

Having regard to Council Regulation (EC) No
1225/2009 of 30 November 2009 on protection against dumped imports from
countries not members of the European Community[3]
(‘the basic Regulation’) and in particular Article 11(3), thereof,

Having regard to the proposal submitted by
the European Commission ('the Commission'), after consulting the Advisory Committee,

Whereas:

A.
PROCEDURE

1.           Measures in force

(1)       By Regulation (EC) No 383/2009[4] ('definitive
Regulation'), the Council imposed a definitive anti-dumping duty on imports of PSC
wires and strands originating in the People's Republic of China ('the measures in force').

2.           Request for an interim
review

(2)       The Commission received a
request from ECN Cable Group S.L., a Spanish producer of cables ('the
applicant') for a partial interim review pursuant to Article 11(3) of the basic
Regulation.

(3)       The applicant requested
the exclusion of certain wires and strands from the scope of the current
anti-dumping measures on imports of certain pre- and post-stressing wires and
wire strands of non-alloy steel (PSC wires and strands) originating in the
People's Republic of China. The product requested to be excluded is stranded
wire consisting of seven wires of non-alloy steel, plated or coated with zinc,
containing by weight 0.6% or more of carbon, with a maximum cross-sectional
dimension exceeding 3 mm, and respecting the International Standard IEC 60888
or the European/Cenelec Standard UNE-EN 50189 ('strands used as a steel core
for conductors').

(4)       The applicant provided prima
facie evidence demonstrating that the basic physical and technical
characteristics of the product to be excluded differ significantly from those
of the product concerned subject to the measures in force .

3.           Initiation

(5)       Having determined, that
sufficient evidence existed to justify the initiation of a partial interim
review, and after consulting the Advisory Committee, the Commission announced
by a notice published on 4 October 2011 in the Official Journal of the
European Union[5]
('the Notice of Initiation') the initiation of a partial interim review in
accordance with the provisions of Article 11(3) of the basic Regulation limited
to the examination of the product scope.

4.           Review investigation

(6)       The Commission officially
informed the authorities of the People's Republic of China ('the country
concerned') and all other parties known to be concerned, i.e. known exporting
producers in the country concerned, users and importers in the Union and
producers in the Union, of the initiation of the partial interim review
investigation. Interested parties were given the opportunity to make their views
known in writing and to request a hearing within the time limit set in the
Notice of Initiation.

(7)       The Commission sent
questionnaires to all parties known to be concerned, and all other parties
which made themselves known within the deadlines set out in the Notice of
Initiation.

(8)       Questionnaire replies were
received from the applicant, two Chinese exporting producers, twelve Union
producers of PSC wires and strands, two Union producers of conductors for
electricity lines, six users and two Union importers. In view of the scope of
the partial review, no investigation period was set for the purpose of this
partial review.

(9)       The Commission sought and
verified all information deemed necessary for the purpose of the assessment as
to whether there was a need to amend the scope of the existing anti-dumping
measures and carried out verification visits at the premises of the following
companies:

–
ECN Cable Group S.L. Vitoria Gasteiz, Spain

–
Tycsa – Trenzas y Cables de Acero PSC, S.L.,
Santander, Spain

–
DWK Drahtwerk Koln GmbH, Köln, Germany

–
Nedri Spanstaal, B.V.,Venlo, Netherlands

–
Gongyi Hengxing Hardware co., Ltd, Henan
Province, China

–
Solidal Condutores Eléctricos S.A, Esposende,
Portugal

–
Tele-fonika Kable Sp. z o.o. S.K.A, Krakow, Poland

B.
PRODUCT CONCERNED

1.           Product concerned

(10)     The product concerned is
the same as defined in Article 1 of the definitive Regulation, i.e. not plated or not coated wire of non-alloy steel, wire of non-alloy
steel plated or coated with zinc and stranded wire of non-alloy steel whether
or not plated or coated with not more than 18 wires, containing by weight 0.6%
or more of carbon, with a maximum cross-sectional dimension exceeding 3 mm, currently
falling within CN codes ex 7217 10 90, ex 7217 20 90, ex 7312 10 61, ex 7312 10
65 and ex 7312 10 69 and originating in the People’s Republic of China.

C.
RESULTS OF THE REVIEW INVESTIGATION

1.           Background

(11)     Pre- or post-stressed wires
or strands are made of high-carbon steel and are used mostly in the
construction industry for concrete reinforcement, suspension elements and
stay-cable bridges. PSC wires and strands are manufactured from steel wire
rods.

(12)     There are two main
different types of PSC wires and strands: the ones used in concrete
applications that are not galvanized and the ones used for stay cable bridges
or suspension bridges that are galvanized. The galvanized strands used for
suspension bridges represent only around 1% of the total Union PSC wires and
strands market. Accordingly, the main users of the PSC wires and strands are
enterprises in the construction industry.

(13)     The applicant is a Spanish
producer of conductors for overhead electricity lines. The product type which
the applicant is seeking to have excluded from the product definition is a seven
wire galvanised strand used as a steel core for conductors for overhead
electricity lines.

2.           Methodology

(14)     In order to assess whether strands
used as a steel core for conductors for overhead electricity lines should be
covered by the product definition of Article 1 of the definitive Regulation, it
was examined whether strands used as a steel core for conductors and other PSC
wires and strands shared the same physical and technical characteristics and
end uses. In this regard the interchangeability between the strands used as
steel core for conductors for overhead electricity lines and other PSC wires
and strands subject to the measures concerned in the Union was also assessed.

(15)     The applicant proposed to
differentiate the two products by the use of standards. According to the
applicant, the PSC wires and strands used in the construction industry do not
meet the requirements of the International Standard IEC
60888 or the European/Cenelec Standard UNE-EN 50189. Both of these norms apply
to zinc-coated steel wires to be used in stranded conductors of electricity.

3.           Findings

3.1.        Physical and technical
characteristics

(16)     The standards referred to
in the request and set out in recital (15) above are only used with regard to
the conductors for electricity lines. Accordingly, the EU producers of PSC
wires and strands for the use in the construction industry were not familiar
with these norms and consequently their questionnaire replies showed differing
opinions as to whether these standards are met with regard to seven wire
galvanized strands used for suspension bridges.

(17)     The investigation revealed that
most physical characteristics/standard specifications of the two products in
question are at least partially comparable, however it also revealed that there
is one identifiable particular physical difference –
which allows for a clear distinction of the two products - when comparing the norms
used for conductors for overhead lines with the norm for pre-stressing steel used in the construction business.

(18)     According
to standard EN­10337 for pre-stressing steel, which is used in the construction
industry, "the diameter of the central wire shall be at least 3% greater
than the diameter of the outer helical wires" (point 7.1.3. of the norm),
whereas, according to the standard for overhead conductors (EN 50182), the
wires in a seven-wire galvanized strand used as a steel core for conductors have
all the same diameter.

(19)     The
differences in thickness of the central wire can be verified by using equipment
that is able to measure the thickness of the wires. Accordingly, this product
type can be distinguished from other product types of the product concerned.

(20)     Interested
parties were consulted and, in summary, agreed that it is possible to
distinguish the two types of products as described above.

3.2.        Basic end-uses and interchangeability

(21)     The investigation also showed
that the two product types have different, distinct applications and are used
in two different industries. PSC wires and strands are used in the construction
industry while the strands requested to be excluded are used as a supporting
core in the conductors for overhead electricity lines in the cable industry.

(22)     Furthermore due to the
different specifications of each product type there is no possible interchangeability
in the applications of the PSC wires and strands and the strands used as a steel
core for conductors.

(23)     On this basis, it is
considered that there are significant basic physical and technical differences
between PSC wires and strands and the strands used as a steel core for
conductors for overhead electricity lines, which are identifiable.

3.3.        Product investigated in the
original investigation

(24)     None of the companies that
cooperated in the original investigation (seven EU producers, seven exporting producers in the PRC, four unrelated importers in
the EU and seven users) was involved in manufacturing and/or trading of strands
used as a steel core for conductors. It is apparent from the original
investigation that the relevant information was at that time not collected with
regard to the strands used as a steel core for conductors.

(25)     Thus, it seems that
although the strands used as a steel core for conductors were not explicitly
excluded, the investigation at that time did not intend to include them as
product concerned.

4.           Allegations of possible
circumvention of the measures in place

(26)     Some
interested parties expressed concerns regarding possible circumvention of the
measures if the strands used as a steel core for conductors were to be excluded
from the scope of the measures.

(27)     However, the seven wire
galvanized strands used in the conductors for overhead electricity lines are
sold non-further-coated, whereas the galvanized seven wire strands used in the
construction of bridges, suspension elements and wind generators are mostly further
coated with polyethylene and waxed or greased for a life-expectancy of 50 or
more years.

(28)     During the investigation
only one application for galvanised PSC wire and strands, which is not further
coated – the temporary support of bridges during the building process – was
identified. However, this application represents only a small fraction of the
already small market of all galvanised PSC wire and strands applications (see
recital 12).

(29)     Therefore, the different
types of strands are in the vast majority of cases easily distinguishable
between – galvanised or non-galvanised and within the group of galvanised
between further coated and non-further-coated - thereby making control
feasible.

(30)     In addition, the vast
majority of EU Member States require for standard/traditional "PSC
applications" a national homologation for the utilization of PSC wires and
strands in order to ensure product quality. The homologation process is very
detailed and it is mandatory to disclose the wire rod quality and supplier, the
production facilities, the machinery used, the laboratory tests, etc.

(31)     In some cases the national
homologation process can – in accordance with procedures in force in most EU
Member States - be replaced by a "quality reception" or a
"project specific homologation".

(32)     However, in both cases, an
independent technical expert certifies that the products intended to be used
are in line with the PSC standard specifications. These procedures provide
additional assurance regarding any possible attempts to circumvent the
measures.

(33)     Furthermore, the different
product types can be distinguished if necessary by using special measuring
instruments/equipment in cases where galvanised non-further-coated strands
should be cleared through customs for free circulation.

(34)     From the above it can be
concluded that the risk of circumvention is minimal.

D.        CONCLUSIONS
ON THE PRODUCT SCOPE

(35)     The above findings show
that the strands used as steel core for conductors and other PSC wires and
strands subject to the measures concerned do not share the same basic physical
and technical characteristics and end-uses. The two products have different
end-uses, target different markets and are not interchangeable. In addition, the
strands used as steel core for conductors were not investigated in the
framework of the original investigation. On this basis, it is concluded that the
strands used as steel core for conductors and other PSC wires and strands are
two different products.

(36)     In view of the above, and
since it could be established that the strands used as a steel core for
conductors can be distinguished from the product concerned, they should be excluded
from the product scope of the measures in force.

(37)     All interested parties were
informed of the essential facts and considerations on the basis of which the
above conclusions were reached. Parties were granted a period within which they
could make representations subsequent to this disclosure. No submissions were
received that would result in a different conclusion.

E.         RETROACTIVE
APPLICATION

(38)     Since the current
proceeding is limited to the clarification of the product scope and since the
strands used as steel core for conductors were not covered in the original
investigation and the consequent anti-dumping measures, it is considered
appropriate that the findings be applied from the date of the entry into force
of the definitive Regulation, including any imports subject to provisional
duties between 16 November 2008 and 13 May 2009. The
Commission has not found any overriding reason preventing the application of
such retroactive provision.

(39)     Consequently,
for goods not covered by Article 1(1) of Council Regulation (EC) No 383/2009 as
amended by this Regulation, the definitive anti-dumping duty paid or entered in
the accounts pursuant to Article 1(1) of Regulation (EC) No 383/2009 and the
provisional antidumping duties definitively collected pursuant to Article 2 of
the same Regulation should be repaid or remitted. Repayment
or remission must be requested from national customs authorities in accordance
with applicable customs legislation. In cases where the time limits provided
for in Article 236(2) of Council Regulation (EEC) No 2913/92 of 12 October 1992
establishing the Community Customs Code have expired before or on the date of
publication of this Regulation, or if they expire within six months after that
date, they are hereby extended so as to expire six months after the date of
publication of this Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

Article 1(1) of Council Regulation (EC) No
383/2009 shall be replaced by the following:

A definitive anti-dumping duty is hereby
imposed on imports of not plated or not coated wire of non-alloy steel, wire of
non-alloy steel plated or coated with zinc and stranded wire of non-alloy steel
whether or not plated or coated with not more than 18 wires, containing by
weight 0.6 % or more of carbon, with a maximum cross-sectional dimension exceeding
3 mm, currently falling within CN codes ex 7217 10 90, ex 7217 20 90, ex 7312
10 61, ex 7312 10 65 and ex 7312 10 69 (TARIC codes 7217 10 90 10, 7217 20 90
10, 7312 10 61 11, 7312 10 61 91, 7312 10 65 11, 7312 10 65 91, 7312 10 69 11
and 7312 10 69 91) and originating in the People’s Republic of China. Galvanised
(but not with any further coating material) seven wire strands in which the
diameter of the central wire is identical or less than 3 % greater than the
diameter of any of the 6 other wires shall not be covered by the definitive
anti-dumping duty.

Article 2

For goods not covered by
Article 1(1) of Council Regulation (EC) No 383/2009 as amended by this
Regulation, the definitive anti-dumping duty paid or entered into the accounts
pursuant to Article 1(1) of Regulation (EC) No 383/2009 in its initial version and
the provisional anti-dumping duties definitively collected pursuant to Article
2 of the same Regulation shall be repaid or remitted. Repayment and remission
shall be requested from national customs authorities in accordance with
applicable customs legislation. In cases where the time limits provided for in
Article 236(2) of Council Regulation (EEC) No 2913/92 of 12 October 1992
establishing the Community Customs Code[6]
have expired before or on the date of publication of this Regulation, or if
they expire within six months after that date, they are hereby extended so as
to expire six months after the date of publication of this Regulation.

Article 3

This
Regulation shall enter into force on the day following that of its publication
in the Official Journal of the European Union. It shall apply from 14
May 2009.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 343, 22.12.2009, p. 51.

[2]               OJ L 118, 13.5.2009, p. 1

[3]               OJ L 343, 22.12.2009, p. 51.

[4]               OJ L 118, 13.5.2009, p. 1.

[5]               OJ C 291 4.10.2011, p. 6.

[6]               OJ L 302, 19.10.1992, p. 1.