# Official Journal L 181/18 M

| | ISSN 1725-2555 |
| --- | --- |
| Official Journal
  of the European Union | L 181 |
| | |
| English edition | Legislation | Volume 4718 May 2004 |

ISSN 1725-2555

Official Journal

of the European Union

L 181

English edition

Legislation

Volume 4718 May 2004

---

| Contents | | I   Acts whose publication is obligatory | page |
| --- | --- | --- | --- |
| | | Commission Regulation (EC) No 986/2004 of 17 May 2004 establishing the standard import values for determining the entry price of certain fruit and vegetables | 1 |
| | | Commission Regulation (EC) No 987/2004 of 17 May 2004 on the issue of import licences for rice originating in the ACP States and the overseas countries and territories against applications submitted in the first five working days of May 2004 pursuant to Regulation (EC) No 638/2003 | 3 |
| | * | Commission Regulation (EC) No 988/2004 of 17 May 2004 imposing provisional anti-dumping duties on imports of okoumé plywood originating in the People's Republic of China | 5 |

Contents

I   Acts whose publication is obligatory

page

Commission Regulation (EC) No 986/2004 of 17 May 2004 establishing the standard import values for determining the entry price of certain fruit and vegetables

1

Commission Regulation (EC) No 987/2004 of 17 May 2004 on the issue of import licences for rice originating in the ACP States and the overseas countries and territories against applications submitted in the first five working days of May 2004 pursuant to Regulation (EC) No 638/2003

3

*

Commission Regulation (EC) No 988/2004 of 17 May 2004 imposing provisional anti-dumping duties on imports of okoumé plywood originating in the People's Republic of China

5

| | | Acts adopted under Title V of the Treaty on European Union |
| --- | --- | --- |
| | * | Council Common Position 2004/493/CFSP of 17 May 2004 amending Common Position 2002/400/CFSP concerning the temporary reception by Member States of the European Union of certain Palestinians | 24 |

Acts adopted under Title V of the Treaty on European Union

*

Council Common Position 2004/493/CFSP of 17 May 2004 amending Common Position 2002/400/CFSP concerning the temporary reception by Member States of the European Union of certain Palestinians

24

| | | Corrigenda |
| --- | --- | --- |
| | * | Corrigendum to Commission Decision 2004/387/EC of 28 April 2004 — Decision 2004/387/EC of the European Parliament and of the Council of 21 April 2004 on the interoperable delivery of pan-European eGovernment services to public administrations, businesses and citizens (IDABC)
  ( OJ L 144, 30.4.2004 ) | 25 |

Corrigenda

*

Corrigendum to Commission Decision 2004/387/EC of 28 April 2004 — Decision 2004/387/EC of the European Parliament and of the Council of 21 April 2004 on the interoperable delivery of pan-European eGovernment services to public administrations, businesses and citizens (IDABC)
  ( OJ L 144, 30.4.2004 )

( OJ L 144, 30.4.2004 )

25

| EN | Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.
  The titles of all other Acts are printed in bold type and preceded by an asterisk. |
| --- | --- |

EN

Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.

The titles of all other Acts are printed in bold type and preceded by an asterisk.

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I Acts whose publication is obligatory

| 18.5.2004 | EN | Official Journal of the European Union | L 181/1 |
| --- | --- | --- | --- |

18.5.2004

EN

Official Journal of the European Union

L 181/1

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COMMISSION REGULATION (EC) No 986/2004

of 17 May 2004

establishing the standard import values for determining the entry price of certain fruit and vegetables

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Commission Regulation (EC) No 3223/94 of 21 December 1994 on detailed rules for the application of the import arrangements for fruit and vegetables (1), and in particular Article 4(1) thereof,

Whereas:

| (1) | Regulation (EC) No 3223/94 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in the Annex thereto. |
| --- | --- |

(1)

Regulation (EC) No 3223/94 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in the Annex thereto.

| (2) | In compliance with the above criteria, the standard import values must be fixed at the levels set out in the Annex to this Regulation, |
| --- | --- |

(2)

In compliance with the above criteria, the standard import values must be fixed at the levels set out in the Annex to this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

The standard import values referred to in Article 4 of Regulation (EC) No 3223/94 shall be fixed as indicated in the Annex hereto.

Article 2

This Regulation shall enter into force on 18 May 2004.

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

Done at Brussels, 17 May 2004.

For the Commission

J. M. SILVA RODRÍGUEZ

Agriculture Director-General

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(1)  
  OJ L 337, 24.12.1994, p. 66. Regulation as last amended by Regulation (EC) No 1947/2002 (OJ L 299, 1.11.2002, p. 17).

1

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ANNEX

to the Commission Regulation of 17 May 2004 establishing the standard import values for determining the entry price of certain fruit and vegetables

| (EUR/100 kg) |
| --- |
| CN code | Third country code (1) | Standard import value |
| 0702 00 00 | 052 | 111,0 |
| 204 | 64,3 |
| 212 | 89,5 |
| 999 | 88,3 |
| 0707 00 05 | 052 | 106,9 |
| 096 | 79,8 |
| 999 | 93,4 |
| 0709 90 70 | 052 | 104,7 |
| 204 | 54,4 |
| 999 | 79,6 |
| 0805 10 10 , 0805 10 30 , 0805 10 50 | 052 | 37,0 |
| 204 | 44,8 |
| 220 | 48,1 |
| 388 | 57,9 |
| 400 | 38,0 |
| 624 | 59,8 |
| 999 | 47,6 |
| 0805 50 10 | 388 | 74,3 |
| 528 | 55,6 |
| 999 | 65,0 |
| 0808 10 20 , 0808 10 50 , 0808 10 90 | 388 | 81,4 |
| 400 | 137,6 |
| 404 | 107,3 |
| 508 | 57,5 |
| 512 | 71,7 |
| 524 | 83,4 |
| 528 | 64,6 |
| 720 | 82,9 |
| 804 | 105,7 |
| 999 | 88,0 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

052

111,0

204

64,3

212

89,5

999

88,3

0707 00 05

052

106,9

096

79,8

999

93,4

0709 90 70

052

104,7

204

54,4

999

79,6

0805 10 10 , 0805 10 30 , 0805 10 50

052

37,0

204

44,8

220

48,1

388

57,9

400

38,0

624

59,8

999

47,6

0805 50 10

388

74,3

528

55,6

999

65,0

0808 10 20 , 0808 10 50 , 0808 10 90

388

81,4

400

137,6

404

107,3

508

57,5

512

71,7

524

83,4

528

64,6

720

82,9

804

105,7

999

88,0

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(1)  Country nomenclature as fixed by Commission Regulation (EC) No 2081/2003 (OJ L 313, 28.11.2003, p. 11). Code ‘
  999
  ’ stands for ‘of other origin’.

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| 18.5.2004 | EN | Official Journal of the European Union | L 181/3 |
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18.5.2004

EN

Official Journal of the European Union

L 181/3

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COMMISSION REGULATION (EC) No 987/2004

of 17 May 2004

on the issue of import licences for rice originating in the ACP States and the overseas countries and territories against applications submitted in the first five working days of May 2004 pursuant to Regulation (EC) No 638/2003

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 2286/2002 of 10 December 2002 on the arrangements applicable to agricultural products and goods resulting from the processing of agricultural products originating in the African, Caribbean and Pacific States (ACP States) and repealing Regulation (EC) No 1706/98 (1),

Having regard to Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community (Overseas Association Decision) (2),

Having regard to Commission Regulation (EC) No 638/2003 of 9 April 2003 laying down detailed rules for applying Council Regulation (EC) No 2286/2002 and Council Decision 2001/822/EC as regards the arrangements applicable to imports of rice originating in the African, Caribbean and Pacific States (ACP States) and the overseas countries and territories (OCT) (3), and in particular Article 17(2) thereof,

Whereas:

| | |
| --- | --- |

HAS ADOPTED THIS REGULATION:

Article 1

1.   Import licences for rice against applications submitted during the first five working days of May 2004 pursuant to Regulation (EC) No 638/2003 and notified to the Commission shall be issued for the quantities applied for reduced, where appropriate, by the percentages set out in the Annex hereto.

2.   The available quantities carried over to the subsequent tranche are set out in the Annex hereto.

Article 2

This Regulation shall enter into force on 18 May 2004.

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

Done at Brussels, 17 May 2004.

For the Commission

J. M. SILVA RODRÍGUEZ

Agriculture Director-General

---

(1)  
  OJ L 348, 21.12.2002, p. 5.

1

(2)  
  OJ L 314, 30.11.2001, p. 1.

2

(3)  
  OJ L 93, 10.4.2003, p. 3.

3

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ANNEX

Reduction percentages to be applied to quantities applied for under the tranche for May 2004 and quantities carried over to the following tranche

| Origin/product | Reduction percentage | Quantity carried over to the tranche for September 2004 (t) |
| --- | --- | --- |
| Netherlands Antilles and Aruba | Least-developed OCTs | Netherlands Antilles and Aruba | Least-developed OCTs |
| OCT (Article 10(1)(a) and (b) of Regulation (EC) No 638/2003)






  — | CN code 1006 |

Origin/product

Reduction percentage

Quantity carried over to the tranche for September 2004 (t)

Netherlands Antilles and Aruba

Least-developed OCTs

Netherlands Antilles and Aruba

Least-developed OCTs

OCT (Article 10(1)(a) and (b) of Regulation (EC) No 638/2003)

—

CN code 1006

49,9996

—

—

6 667

| Origin/product | Reduction percentage | Quantity carried over to the tranche for September 2004 (t) |
| --- | --- | --- |
| ACP (Article 3(1) of Regulation (EC) No 638/2003)






  — | CN codes 1006 10 21 to 1006 10 98 , 1006 20 and 1006 30 |

Origin/product

Reduction percentage

Quantity carried over to the tranche for September 2004 (t)

ACP (Article 3(1) of Regulation (EC) No 638/2003)

—

CN codes 1006 10 21 to 1006 10 98 , 1006 20 and 1006 30

87,9798

—

ACP (Article 5(1) of Regulation (EC) No 638/2003)

| — | CN code 1006 40 00 |
| --- | --- |

—

CN code 1006 40 00

90,9079

—

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| 18.5.2004 | EN | Official Journal of the European Union | L 181/5 |
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18.5.2004

EN

Official Journal of the European Union

L 181/5

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COMMISSION REGULATION (EC) No 988/2004

of 17 May 2004

imposing provisional anti-dumping duties on imports of okoumé plywood originating in the People's Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (1) (‘basic Regulation’), as last amended by Regulation (EC) No 461/2004 (2), and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

A.   PROCEDURE

1.   INITIATION

| (1) | On 19 August 2003, the Commission announced by a notice (‘notice of initiation’) published in the Official Journal of the European Union (3), the initiation of an anti-dumping proceeding with regard to imports into the Community of okoumé plywood originating in the People’s Republic of China (‘PRC’). |
| --- | --- |

(1)

On 19 August 2003, the Commission announced by a notice (‘notice of initiation’) published in the Official Journal of the European Union (3), the initiation of an anti-dumping proceeding with regard to imports into the Community of okoumé plywood originating in the People’s Republic of China (‘PRC’).

3

| (2) | The anti-dumping proceeding was initiated following a complaint lodged on 7 July 2003 by the European Federation of the Plywood Industry (FEIC) (‘the complainant’) on behalf of producers representing a major proportion, in this case more than 50 %, of the Community production of okoumé plywood. The complaint contained evidence of dumping of the said product and of material injury resulting there from, which was considered sufficient to justify the initiation of a proceeding. |
| --- | --- |

(2)

The anti-dumping proceeding was initiated following a complaint lodged on 7 July 2003 by the European Federation of the Plywood Industry (FEIC) (‘the complainant’) on behalf of producers representing a major proportion, in this case more than 50 %, of the Community production of okoumé plywood. The complaint contained evidence of dumping of the said product and of material injury resulting there from, which was considered sufficient to justify the initiation of a proceeding.

2.   PARTIES CONCERNED BY THE PROCEEDING

| (3) | The Commission officially advised the exporting producers in the PRC, importers/traders and their associations, suppliers and users known to be concerned, the representatives of the exporting country concerned and the complainant Community producers of the initiation of the proceeding. 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. |
| --- | --- |

(3)

The Commission officially advised the exporting producers in the PRC, importers/traders and their associations, suppliers and users known to be concerned, the representatives of the exporting country concerned and the complainant Community producers of the initiation of the proceeding. 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.

| (4) | In view of the large number of Chinese exporting producers listed in the complaint, and the large number of Community producers of the like product, sampling was envisaged in the notice of initiation for the determination of dumping and injury, in accordance with Article 17 of the basic Regulation. |
| --- | --- |

(4)

In view of the large number of Chinese exporting producers listed in the complaint, and the large number of Community producers of the like product, sampling was envisaged in the notice of initiation for the determination of dumping and injury, in accordance with Article 17 of the basic Regulation.

| (5) | In order to enable the Commission to decide whether sampling would be necessary and, if so, to select a sample, all exporting producers and Community producers were asked to make themselves known to the Commission and to provide, as specified in the notice of initiation, basic information on their activities related to the product concerned during the investigation period (1 July 2002 to 30 June 2003). |
| --- | --- |

(5)

In order to enable the Commission to decide whether sampling would be necessary and, if so, to select a sample, all exporting producers and Community producers were asked to make themselves known to the Commission and to provide, as specified in the notice of initiation, basic information on their activities related to the product concerned during the investigation period (1 July 2002 to 30 June 2003).

| (6) | After examination of the information submitted by exporting producers and due to the low number of replies to the sampling questions, it was decided that sampling was not necessary with regard to exporters. |
| --- | --- |

(6)

After examination of the information submitted by exporting producers and due to the low number of replies to the sampling questions, it was decided that sampling was not necessary with regard to exporters.

| (7) | With regard to the Community producers, the Commission selected, in accordance with Article 17 of the basic Regulation, a sample based on the largest representative volume of production and sales of the Community industry which could be reasonably investigated within the time available. On the basis of the replies received from the Community producers, the Commission selected five companies in three Member States. The selection was based on both production and sales volume. The sample chosen on the basis of the aforementioned criteria is also representative in terms of geographic coverage. |
| --- | --- |

(7)

With regard to the Community producers, the Commission selected, in accordance with Article 17 of the basic Regulation, a sample based on the largest representative volume of production and sales of the Community industry which could be reasonably investigated within the time available. On the basis of the replies received from the Community producers, the Commission selected five companies in three Member States. The selection was based on both production and sales volume. The sample chosen on the basis of the aforementioned criteria is also representative in terms of geographic coverage.

| (8) | In order to allow exporting producers in the PRC to submit a claim for market economy treatment (‘MET’) or individual treatment (‘IT’), if they so wished, the Commission sent claim forms to the Chinese exporting producers known to be concerned. Claims for MET, or for IT in case the investigation establishes that they do not meet the conditions for MET, were received from eight exporting producers. |
| --- | --- |

(8)

In order to allow exporting producers in the PRC to submit a claim for market economy treatment (‘MET’) or individual treatment (‘IT’), if they so wished, the Commission sent claim forms to the Chinese exporting producers known to be concerned. Claims for MET, or for IT in case the investigation establishes that they do not meet the conditions for MET, were received from eight exporting producers.

| (9) | The Commission sent questionnaires to all parties known to be concerned and to all the other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from six Chinese exporting producers, from the five sampled Community producers, and from one producer in the analogue country, Morocco. |
| --- | --- |

(9)

The Commission sent questionnaires to all parties known to be concerned and to all the other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from six Chinese exporting producers, from the five sampled Community producers, and from one producer in the analogue country, Morocco.

| (10) | The Commission sought and verified all the information it deemed necessary for the purpose of a preliminary determination of dumping, resulting injury and Community interest. Verification visits were carried out at the premises of the following companies:






  (a) | Community producers







  — | Indústrias Jomar – Madeiras e Derivados SA, Portugal; |
| --- | --- | --- | --- |

(10)

The Commission sought and verified all the information it deemed necessary for the purpose of a preliminary determination of dumping, resulting injury and Community interest. Verification visits were carried out at the premises of the following companies:

(a)

Community producers

Community producers

—

Indústrias Jomar – Madeiras e Derivados SA, Portugal;

| — | Joubert SAS, France; |
| --- | --- |

—

Joubert SAS, France;

| — | Plysorol SAS, France; |
| --- | --- |

—

Plysorol SAS, France;

| — | Reni Ettore spa., Italy; |
| --- | --- |

—

Reni Ettore spa., Italy;

| — | Schauman Wood SA, France |
| --- | --- |

—

Schauman Wood SA, France

| (b) | Exporting producers in the People’s Republic of China







  — | Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. |
| --- | --- | --- |

(b)

Exporting producers in the People’s Republic of China

Exporting producers in the People’s Republic of China

—

Zhejiang Deren Bamboo-Wood Technologies Co., Ltd.

| — | Jiaxing Jinlin Lumber Co., Ltd. |
| --- | --- |

—

Jiaxing Jinlin Lumber Co., Ltd.

| — | Nantong Zongyi Plywood Co., Ltd. |
| --- | --- |

—

Nantong Zongyi Plywood Co., Ltd.

| — | Zhonglin Enterprise (Dangshan) Co., Ltd. |
| --- | --- |

—

Zhonglin Enterprise (Dangshan) Co., Ltd.

| (c) | Producer in the analogue country |
| --- | --- |

(c)

Producer in the analogue country

Producer in the analogue country

| (11) | In view of the need to establish a normal value for exporting producers in the PRC to which MET might not be granted, a verification visit to establish normal value on the basis of data from an analogue country, Morocco, took place at the premises of the following company:






  — | CEMA Bois de l’Atlas, Casablanca, Morocco. |
| --- | --- | --- |

(11)

In view of the need to establish a normal value for exporting producers in the PRC to which MET might not be granted, a verification visit to establish normal value on the basis of data from an analogue country, Morocco, took place at the premises of the following company:

—

CEMA Bois de l’Atlas, Casablanca, Morocco.

3.   INVESTIGATION PERIOD

| (12) | The investigation of dumping and injury covered the period from 1 July 2002 to 30 June 2003 (‘investigation period’ or ‘IP’). The examination of trends in the context of the injury analysis covered the period from 1 January 1999 to the end of the IP (‘period under consideration’). |
| --- | --- |

(12)

The investigation of dumping and injury covered the period from 1 July 2002 to 30 June 2003 (‘investigation period’ or ‘IP’). The examination of trends in the context of the injury analysis covered the period from 1 January 1999 to the end of the IP (‘period under consideration’).

B.   PRODUCT CONCERNED AND LIKE PRODUCT

1.   GENERAL

| (13) | Plywood is a wood based panel, which has at the same time good mechanical strength and a light weight. It consists of sheets (plies) of wood veneer, which are glued together. It is constructed with an odd number of plies, which are cross-bonded. The outer plies usually have the grain direction going parallel to the long dimension of the panel. This construction guarantees the strength and stability of plywood. |
| --- | --- |

(13)

Plywood is a wood based panel, which has at the same time good mechanical strength and a light weight. It consists of sheets (plies) of wood veneer, which are glued together. It is constructed with an odd number of plies, which are cross-bonded. The outer plies usually have the grain direction going parallel to the long dimension of the panel. This construction guarantees the strength and stability of plywood.

| (14) | Plywood can be made of different species of wood. The main wood species used for the production of European plywood are beech, birch, spruce, poplar and okoumé. |
| --- | --- |

(14)

Plywood can be made of different species of wood. The main wood species used for the production of European plywood are beech, birch, spruce, poplar and okoumé.

| (15) | Okoumé wood only grows in Gabon, Equatorial Guinea and Cameroon, and has therefore to be imported by European as well as Chinese plywood manufacturers. Okoumé gives the plywood an excellent, smooth surface quality, and also good mechanical properties mainly due to the absence of knots. Okoumé plywood has therefore specific features relating to its appearance and to its mechanical properties, which means that the product can be distinguished from other types of plywood. |
| --- | --- |

(15)

Okoumé wood only grows in Gabon, Equatorial Guinea and Cameroon, and has therefore to be imported by European as well as Chinese plywood manufacturers. Okoumé gives the plywood an excellent, smooth surface quality, and also good mechanical properties mainly due to the absence of knots. Okoumé plywood has therefore specific features relating to its appearance and to its mechanical properties, which means that the product can be distinguished from other types of plywood.

| (16) | Okoumé plywood has a large range of end-uses. It is used in the building industry in exterior joinery and carpentry applications for boarding, shutter boards, exterior basements and balustrades and riverside panelling. It is also used for more decorative purposes in, inter alia, road transports (e.g. cars, coaches, caravans, camping cars), maritime transports (yachts), furniture industry and doors. |
| --- | --- |

(16)

Okoumé plywood has a large range of end-uses. It is used in the building industry in exterior joinery and carpentry applications for boarding, shutter boards, exterior basements and balustrades and riverside panelling. It is also used for more decorative purposes in, inter alia, road transports (e.g. cars, coaches, caravans, camping cars), maritime transports (yachts), furniture industry and doors.

| (17) | There are two types of okoumé plywood, plywood made solely with okoumé (‘full okoumé’) and plywood with at least one of the outer faces made of okoumé (‘faced okoumé’), the rest being made of other wood. Both okoumé plywoods have the same external appearance. Despite differences in mechanical properties, they all share the same basic physical characteristics, and are basically used for the same purposes. |
| --- | --- |

(17)

There are two types of okoumé plywood, plywood made solely with okoumé (‘full okoumé’) and plywood with at least one of the outer faces made of okoumé (‘faced okoumé’), the rest being made of other wood. Both okoumé plywoods have the same external appearance. Despite differences in mechanical properties, they all share the same basic physical characteristics, and are basically used for the same purposes.

2.   PRODUCT CONCERNED

| (18) | The product concerned is plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, with at least one outer ply of okoumé, originating in the PRC, currently classifiable within CN code ex 4412 13 10. This definition covers full okoumé and faced okoumé as defined above. |
| --- | --- |

(18)

The product concerned is plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, with at least one outer ply of okoumé, originating in the PRC, currently classifiable within CN code ex 4412 13 10. This definition covers full okoumé and faced okoumé as defined above.

| (19) | During the verification visit, it was found that one company exported film faced okoumé plywood to the Community during the IP. This product is faced okoumé (with layers of other wood inside) covered by a plastic film. It was considered that this product was not the product concerned, as it did not consist only of sheets of wood and does not present the same external appearance as other okoumé plywood. It therefore did not share the same physical and technical characteristics. It is consequently not covered by the present proceeding. |
| --- | --- |

(19)

During the verification visit, it was found that one company exported film faced okoumé plywood to the Community during the IP. This product is faced okoumé (with layers of other wood inside) covered by a plastic film. It was considered that this product was not the product concerned, as it did not consist only of sheets of wood and does not present the same external appearance as other okoumé plywood. It therefore did not share the same physical and technical characteristics. It is consequently not covered by the present proceeding.

3.   LIKE PRODUCT

| (20) | The product concerned and the okoumé plywood manufactured in the PRC and sold domestically, the product produced and sold on the domestic market of the analogue country (Morocco) as well as the one manufactured and sold in the Community by the Community industry were found to have basically the same physical and technical characteristics and the same uses. Therefore, these products are provisionally considered to be alike within the meaning of Article 1(4) of the basic Regulation. |
| --- | --- |

(20)

The product concerned and the okoumé plywood manufactured in the PRC and sold domestically, the product produced and sold on the domestic market of the analogue country (Morocco) as well as the one manufactured and sold in the Community by the Community industry were found to have basically the same physical and technical characteristics and the same uses. Therefore, these products are provisionally considered to be alike within the meaning of Article 1(4) of the basic Regulation.

C.   DUMPING

1.   MARKET ECONOMY TREATMENT (MET)

| (21) | Pursuant to Article 2(7)(b) of the basic Regulation, in anti-dumping investigations concerning imports originating in the PRC, normal value shall be determined in accordance with paragraphs 1 to 6 of the said Article for those producers which were found to meet the criteria laid down in Article 2(7)(c) of the basic Regulation. |
| --- | --- |

(21)

Pursuant to Article 2(7)(b) of the basic Regulation, in anti-dumping investigations concerning imports originating in the PRC, normal value shall be determined in accordance with paragraphs 1 to 6 of the said Article for those producers which were found to meet the criteria laid down in Article 2(7)(c) of the basic Regulation.

| (22) | Briefly, and for ease of reference only, these criteria, fulfilment of which the applicant companies have to demonstrate, are set out in summarised form below:






  (1) | business decisions and costs are made in response to market conditions, and without significant State interference; |
| --- | --- | --- |

(22)

Briefly, and for ease of reference only, these criteria, fulfilment of which the applicant companies have to demonstrate, are set out in summarised form below:

(1)

business decisions and costs are made in response to market conditions, and without significant State interference;

| (2) | accounting records are independently audited in line with international accounting standards and applied for all purposes; |
| --- | --- |

(2)

accounting records are independently audited in line with international accounting standards and applied for all purposes;

| (3) | there are no significant distortions carried over from the former non-market economy system; |
| --- | --- |

(3)

there are no significant distortions carried over from the former non-market economy system;

| (4) | legal certainty and stability are provided by bankruptcy and property laws; |
| --- | --- |

(4)

legal certainty and stability are provided by bankruptcy and property laws;

| (5) | currency exchanges are carried out at the market rate. |
| --- | --- |

(5)

currency exchanges are carried out at the market rate.

| (23) | Eight exporting producers in the PRC requested MET pursuant to Article 2(7)(b) of the basic Regulation and replied to the MET claim form for exporting producers. |
| --- | --- |

(23)

Eight exporting producers in the PRC requested MET pursuant to Article 2(7)(b) of the basic Regulation and replied to the MET claim form for exporting producers.

| (24) | The application of one company (company 2 in table below) was rejected on the basis of a first analysis of the reply to the MET claim form which failed to show that all the criteria were met. The application of another company (company 4 in table below) was rejected because it withdrew its co-operation before the verification visit took place. It was therefore not possible to verify whether the company fulfilled the criteria set in Article 2(7)(c) of the basic Regulation. |
| --- | --- |

(24)

The application of one company (company 2 in table below) was rejected on the basis of a first analysis of the reply to the MET claim form which failed to show that all the criteria were met. The application of another company (company 4 in table below) was rejected because it withdrew its co-operation before the verification visit took place. It was therefore not possible to verify whether the company fulfilled the criteria set in Article 2(7)(c) of the basic Regulation.

| (25) | For the six remaining companies, the Commission sought and verified at the premises of these companies all information submitted in the MET applications and deemed necessary. |
| --- | --- |

(25)

For the six remaining companies, the Commission sought and verified at the premises of these companies all information submitted in the MET applications and deemed necessary.

| (26) | The investigation showed that four of the six companies mentioned above fulfilled all the criteria required and they were therefore granted MET. These four exporting producers in the PRC which were granted MET are:






  — | Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. |
| --- | --- | --- |

(26)

The investigation showed that four of the six companies mentioned above fulfilled all the criteria required and they were therefore granted MET. These four exporting producers in the PRC which were granted MET are:

—

Zhejiang Deren Bamboo-Wood Technologies Co., Ltd.

| — | Jiaxing Jinlin Lumber Co., Ltd. |
| --- | --- |

—

Jiaxing Jinlin Lumber Co., Ltd.

| — | Nantong Zongyi Plywood Co., Ltd. |
| --- | --- |

—

Nantong Zongyi Plywood Co., Ltd.

| — | Zhonglin Enterprise (Dangshan) Co., Ltd. |
| --- | --- |

—

Zhonglin Enterprise (Dangshan) Co., Ltd.

| (27) | The remaining two claims had to be rejected. The following table summarizes the determination for the four companies for which MET was not granted against each of the five criteria as set out in Article 2(7)(c) of the basic Regulation.










  Company | Criteria |
| --- | --- | --- |
| Article 2(7)(c) indent 1 | Article 2(7)(c) indent 2 | Article 2(7)(c) indent 3 | Article 2(7)(c) indent 4 | Article 2(7)(c) indent 5 |
| 1 | Not met | Not met | Not met | Not met | Met |
| 2 | Not met | | | | |
| 3 | Non co-operation |
| 4 | Non co-operation |
| Source: Verified questionnaire replies of co-operating Chinese exporters |

(27)

The remaining two claims had to be rejected. The following table summarizes the determination for the four companies for which MET was not granted against each of the five criteria as set out in Article 2(7)(c) of the basic Regulation.

Company

Criteria

Article 2(7)(c) indent 1

Article 2(7)(c) indent 2

Article 2(7)(c) indent 3

Article 2(7)(c) indent 4

Article 2(7)(c) indent 5

1

Not met

Not met

Not met

Not met

Met

2

Not met

3

Non co-operation

4

Non co-operation

Source: Verified questionnaire replies of co-operating Chinese exporters

Source:

| (28) | The companies concerned were given an opportunity to comment on the above findings. Two companies submitted that the determination was wrong and that they should be granted MET. |
| --- | --- |

(28)

The companies concerned were given an opportunity to comment on the above findings. Two companies submitted that the determination was wrong and that they should be granted MET.

| (29) | Concerning the first criterion, company 1 submitted that, contrary to the Commission’s conclusions, the source of the paid-in capital was clear and the domestic sales were made at market prices. However the company was unable to provide further evidence to rebut the Commission’s conclusions. As far as the domestic sales are concerned, it was shown that the pricing policy of the company was not in accordance with market economy principles, as okoumé plywood with higher quality was sold at the same price as plain plywood. Therefore, these two claims were rejected. |
| --- | --- |

(29)

Concerning the first criterion, company 1 submitted that, contrary to the Commission’s conclusions, the source of the paid-in capital was clear and the domestic sales were made at market prices. However the company was unable to provide further evidence to rebut the Commission’s conclusions. As far as the domestic sales are concerned, it was shown that the pricing policy of the company was not in accordance with market economy principles, as okoumé plywood with higher quality was sold at the same price as plain plywood. Therefore, these two claims were rejected.

| (30) | The same company claimed that its accounts were audited independently and in line with international standards. However, the verification visit showed that the auditors had not made the comments demanded by international standards (mainly different balance sheets for the same year without further explanation and loss of almost all of the paid-in capital without any comment). Since these problems seriously put into question the reliability of the accounts, they could not be considered to be audited in line with international standards. Therefore, this claim was also rejected. |
| --- | --- |

(30)

The same company claimed that its accounts were audited independently and in line with international standards. However, the verification visit showed that the auditors had not made the comments demanded by international standards (mainly different balance sheets for the same year without further explanation and loss of almost all of the paid-in capital without any comment). Since these problems seriously put into question the reliability of the accounts, they could not be considered to be audited in line with international standards. Therefore, this claim was also rejected.

| (31) | Company 1 also claimed that there was no State intervention or distortions carried over from the non-market economy system. However, payments for land use rights, which were due to the local authorities, remained unpaid for several years without explanation. Therefore, State or local government interference cannot be excluded and the company could not demonstrate that it is free from State interference. This claim was therefore rejected. |
| --- | --- |

(31)

Company 1 also claimed that there was no State intervention or distortions carried over from the non-market economy system. However, payments for land use rights, which were due to the local authorities, remained unpaid for several years without explanation. Therefore, State or local government interference cannot be excluded and the company could not demonstrate that it is free from State interference. This claim was therefore rejected.

| (32) | Finally, company 1 claimed that it benefited from legal certainty and stability provided by bankruptcy and property laws. However, it was noted during the verification visit that in a certain financial year the losses were higher than the capital. Therefore, it was found that, whilst the company may in theory be subject to the bankruptcy laws, these de facto did not apply to it, since under those circumstances a proceeding for bankruptcy should have been launched. It is worth noting that the auditors made also no comments in this respect. Hence, the company failed to demonstrate that it operates under a legal framework which guarantees legal certainty. Therefore, this claim was rejected. |
| --- | --- |

(32)

Finally, company 1 claimed that it benefited from legal certainty and stability provided by bankruptcy and property laws. However, it was noted during the verification visit that in a certain financial year the losses were higher than the capital. Therefore, it was found that, whilst the company may in theory be subject to the bankruptcy laws, these de facto did not apply to it, since under those circumstances a proceeding for bankruptcy should have been launched. It is worth noting that the auditors made also no comments in this respect. Hence, the company failed to demonstrate that it operates under a legal framework which guarantees legal certainty. Therefore, this claim was rejected.

| (33) | Company 3 argued that it had co-operated with the Commission. This company had two related companies that produced the product concerned and exported it to the Community during the IP. However, neither of these two companies made itself known within the deadlines set in the notice of initiation of the proceeding. Therefore they were considered as non-cooperating exporting producers. |
| --- | --- |

(33)

Company 3 argued that it had co-operated with the Commission. This company had two related companies that produced the product concerned and exported it to the Community during the IP. However, neither of these two companies made itself known within the deadlines set in the notice of initiation of the proceeding. Therefore they were considered as non-cooperating exporting producers.

| (34) | It is the Commission's consistent practice to examine whether a group of related companies as a whole fulfils the conditions for MET, which means that each related company producing and/or selling the product concerned should fulfil the MET criteria. Taking into account the non co-operation of the related companies in this case, it was not possible to establish that the group as a whole fulfilled the MET criteria, and therefore company 3 could not be granted MET. |
| --- | --- |

(34)

It is the Commission's consistent practice to examine whether a group of related companies as a whole fulfils the conditions for MET, which means that each related company producing and/or selling the product concerned should fulfil the MET criteria. Taking into account the non co-operation of the related companies in this case, it was not possible to establish that the group as a whole fulfilled the MET criteria, and therefore company 3 could not be granted MET.

| (35) | The Community industry was given the opportunity to comment, but no objections were raised. The Advisory Committee was consulted and did not object to the Commission’s conclusions. |
| --- | --- |

(35)

The Community industry was given the opportunity to comment, but no objections were raised. The Advisory Committee was consulted and did not object to the Commission’s conclusions.

2.   INDIVIDUAL TREATMENT (IT)

| (36) | Further to Article 2(7)(a) of the basic Regulation, a country-wide duty, if any, is established for countries falling under Article 2(7) of the basic Regulation, except in those cases where companies are able to demonstrate, in accordance with Article 9(5) of the basic Regulation, that their export prices and quantities, as well as the conditions and terms of the sales are freely determined, that exchange rate conversions are carried out at market rates, and that any State interference is not such as to permit circumvention of measures if exporters are given different rates of duty. |
| --- | --- |

(36)

Further to Article 2(7)(a) of the basic Regulation, a country-wide duty, if any, is established for countries falling under Article 2(7) of the basic Regulation, except in those cases where companies are able to demonstrate, in accordance with Article 9(5) of the basic Regulation, that their export prices and quantities, as well as the conditions and terms of the sales are freely determined, that exchange rate conversions are carried out at market rates, and that any State interference is not such as to permit circumvention of measures if exporters are given different rates of duty.

| (37) | The eight exporting producers, as well as requesting MET, also claimed individual treatment in the event of not being granted MET. However, none of the companies for which MET was rejected could be granted IT. |
| --- | --- |

(37)

The eight exporting producers, as well as requesting MET, also claimed individual treatment in the event of not being granted MET. However, none of the companies for which MET was rejected could be granted IT.

| (38) | Indeed, for the two companies that did not co-operate, IT could not be granted, as it could not be verified whether they fulfilled the criteria set out in Article 9(5) of the basic Regulation. |
| --- | --- |

(38)

Indeed, for the two companies that did not co-operate, IT could not be granted, as it could not be verified whether they fulfilled the criteria set out in Article 9(5) of the basic Regulation.

| (39) | The on-spot investigation showed that the accounting and export documents of company 1 were unreliable and presented serious deficiencies. In view of the considerable degree of uncertainty with regard to this company, it was considered impracticable to establish an individual dumping margin. Indeed, the export sales being unreliable, the calculation of an individual margin is de facto not possible since the export data from the company cannot be used. Moreover, since the company could not provide any assurance that measures would not be circumvented should this exporter be granted an individual margin, an individual margin would not be warranted in this case. Therefore, IT was not granted to this company. |
| --- | --- |

(39)

The on-spot investigation showed that the accounting and export documents of company 1 were unreliable and presented serious deficiencies. In view of the considerable degree of uncertainty with regard to this company, it was considered impracticable to establish an individual dumping margin. Indeed, the export sales being unreliable, the calculation of an individual margin is de facto not possible since the export data from the company cannot be used. Moreover, since the company could not provide any assurance that measures would not be circumvented should this exporter be granted an individual margin, an individual margin would not be warranted in this case. Therefore, IT was not granted to this company.

| (40) | Finally, company 2, which is State owned, could not demonstrate that State interference would not lead to circumvention of measures if exporters were given different rates of duty. |
| --- | --- |

(40)

Finally, company 2, which is State owned, could not demonstrate that State interference would not lead to circumvention of measures if exporters were given different rates of duty.

3.   NORMAL VALUE

3.1.   Determination of normal value for co-operating exporting producers granted MET

| (41) | In accordance with Article 2(2) of the basic Regulation, the Commission first examined for each co-operating exporting producer whether its domestic sales of okoumé plywood were representative, i.e. whether the total volume of such sales represented at least 5 % of the total export sales volume of the producer to the Community. The investigation showed that domestic sales were representative for only two of the four exporting producers. |
| --- | --- |

(41)

In accordance with Article 2(2) of the basic Regulation, the Commission first examined for each co-operating exporting producer whether its domestic sales of okoumé plywood were representative, i.e. whether the total volume of such sales represented at least 5 % of the total export sales volume of the producer to the Community. The investigation showed that domestic sales were representative for only two of the four exporting producers.

| (42) | The Commission subsequently identified those types of okoumé plywood sold domestically by the companies having overall representative domestic sales and that were identical or directly comparable with the types sold for export to the Community. |
| --- | --- |

(42)

The Commission subsequently identified those types of okoumé plywood sold domestically by the companies having overall representative domestic sales and that were identical or directly comparable with the types sold for export to the Community.

| (43) | For each type sold by the exporting producers on their domestic markets and found to be directly comparable with the type of okoumé plywood sold for export to the Community, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type of okoumé plywood were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable type of okoumé plywood exported to the Community. For one of the two companies with representative domestic sales, four product types fulfilled this condition, whereas for the other company no product type was found to be sufficiently representative. |
| --- | --- |

(43)

For each type sold by the exporting producers on their domestic markets and found to be directly comparable with the type of okoumé plywood sold for export to the Community, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type of okoumé plywood were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable type of okoumé plywood exported to the Community. For one of the two companies with representative domestic sales, four product types fulfilled this condition, whereas for the other company no product type was found to be sufficiently representative.

| (44) | The Commission subsequently examined whether the four product types identified above could be considered as being sold in the ordinary course of trade, by establishing the proportion of profitable sales to independent customers of the okoumé plywood type in question. In cases where the sales volume of the okoumé plywood type, sold at a net sales price equal to or above the calculated cost of production, represented more than 80 % of the total sales volume of that type, and where the weighted average price of that type was equal to or above the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the prices of all domestic sales of that type made during the IP, irrespective of whether these sales were profitable or not. In cases where the volume of profitable sales of the okoumé plywood type represented 80 % or less of the total sales volume of that type, or where the weighted average price of that type was below the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of profitable sales of that type only, provided that these sales represented 10 % or more of the total sales volume of that type. Only for one product type could the domestic prices be used to determine the normal value. For the remaining three product types, less than 10 % of the domestic sales of these product types were profitable during the IP. |
| --- | --- |

(44)

The Commission subsequently examined whether the four product types identified above could be considered as being sold in the ordinary course of trade, by establishing the proportion of profitable sales to independent customers of the okoumé plywood type in question. In cases where the sales volume of the okoumé plywood type, sold at a net sales price equal to or above the calculated cost of production, represented more than 80 % of the total sales volume of that type, and where the weighted average price of that type was equal to or above the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the prices of all domestic sales of that type made during the IP, irrespective of whether these sales were profitable or not. In cases where the volume of profitable sales of the okoumé plywood type represented 80 % or less of the total sales volume of that type, or where the weighted average price of that type was below the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of profitable sales of that type only, provided that these sales represented 10 % or more of the total sales volume of that type. Only for one product type could the domestic prices be used to determine the normal value. For the remaining three product types, less than 10 % of the domestic sales of these product types were profitable during the IP.

| (45) | In cases where the volume of profitable sales of any product type represented less than 10 % of the total sales volume of that type, it was considered that this particular type was sold in insufficient quantities for the domestic price to provide an appropriate basis for the establishment of the normal value. Wherever domestic prices of a particular product type sold by an exporting producer could not be used in order to establish normal value, another method had to be applied. In this regard, the Commission used constructed normal value, in accordance with Article 2(3) of the basic Regulation. |
| --- | --- |

(45)

In cases where the volume of profitable sales of any product type represented less than 10 % of the total sales volume of that type, it was considered that this particular type was sold in insufficient quantities for the domestic price to provide an appropriate basis for the establishment of the normal value. Wherever domestic prices of a particular product type sold by an exporting producer could not be used in order to establish normal value, another method had to be applied. In this regard, the Commission used constructed normal value, in accordance with Article 2(3) of the basic Regulation.

| (46) | In accordance with Article 2(3) of the basic Regulation, normal value was constructed on the basis of each exporting producer’s own cost of manufacturing plus a reasonable amount for selling, general and administrative (‘SG&A’) costs and for profit. The Commission was able to use the own SG&A costs of two companies for which the domestic sales of the like product were representative as defined in Article 2(2) of the basic Regulation. For the profit margin, in accordance with the first sentence of Article 2(6) of the basic Regulation, the profit in the ordinary course of trade of each of the above-mentioned two companies was used. |
| --- | --- |

(46)

In accordance with Article 2(3) of the basic Regulation, normal value was constructed on the basis of each exporting producer’s own cost of manufacturing plus a reasonable amount for selling, general and administrative (‘SG&A’) costs and for profit. The Commission was able to use the own SG&A costs of two companies for which the domestic sales of the like product were representative as defined in Article 2(2) of the basic Regulation. For the profit margin, in accordance with the first sentence of Article 2(6) of the basic Regulation, the profit in the ordinary course of trade of each of the above-mentioned two companies was used.

| (47) | For the two companies without representative domestic sales, the weighted average of the SG&A costs and profit of the two companies with representative domestic sales could be used in accordance with Article 2(6)(a) of the basic Regulation. |
| --- | --- |

(47)

For the two companies without representative domestic sales, the weighted average of the SG&A costs and profit of the two companies with representative domestic sales could be used in accordance with Article 2(6)(a) of the basic Regulation.

| (48) | For one of the companies, the Commission was unable to establish with a reasonable degree of certainty that the cost allocation declared in the questionnaire reply reasonably reflected the costs associated with the production and sales of the product concerned. The company was given the possibility to comment on this during the verification visit, but it was unable to clarify the inconsistencies concerning the allocation of costs. Therefore, and in accordance with the provisions of Article 2(5) of the basic Regulation, the allocation of costs was made on a turnover basis when determining the cost of manufacturing. |
| --- | --- |

(48)

For one of the companies, the Commission was unable to establish with a reasonable degree of certainty that the cost allocation declared in the questionnaire reply reasonably reflected the costs associated with the production and sales of the product concerned. The company was given the possibility to comment on this during the verification visit, but it was unable to clarify the inconsistencies concerning the allocation of costs. Therefore, and in accordance with the provisions of Article 2(5) of the basic Regulation, the allocation of costs was made on a turnover basis when determining the cost of manufacturing.

| (49) | One company purchased poplar veneers from local producers. These producers are not registered as VAT payers, and therefore do not pay VAT. The company, however, reduced the cost of the veneers by 13 % VAT. This was argued to be in accordance with the VAT authorities. However, as the company could not show that the reimbursement of VAT effectively took place, it was considered that this alleged reduction of VAT should be rejected, as the costs that should be taken into account should be the costs actually incurred. |
| --- | --- |

(49)

One company purchased poplar veneers from local producers. These producers are not registered as VAT payers, and therefore do not pay VAT. The company, however, reduced the cost of the veneers by 13 % VAT. This was argued to be in accordance with the VAT authorities. However, as the company could not show that the reimbursement of VAT effectively took place, it was considered that this alleged reduction of VAT should be rejected, as the costs that should be taken into account should be the costs actually incurred.

| (50) | One company suggested that the Commission should take into account the cost of production over a longer period than the IP. The company claimed that this would better reflect the real costs incurred given the existence of certain corrections in the accounts and a low production volume. As the company was unable to show any evidence of these alleged corrections, the Commission used the data for the IP provided by the company. |
| --- | --- |

(50)

One company suggested that the Commission should take into account the cost of production over a longer period than the IP. The company claimed that this would better reflect the real costs incurred given the existence of certain corrections in the accounts and a low production volume. As the company was unable to show any evidence of these alleged corrections, the Commission used the data for the IP provided by the company.

| (51) | One company purchased veneers from a related company. Since the transfer prices of these transactions did not reasonably reflect the costs associated with the production of these veneers, they had to be replaced with a non-related transaction price, which was set at the price of other transactions of the company with unrelated suppliers. |
| --- | --- |

(51)

One company purchased veneers from a related company. Since the transfer prices of these transactions did not reasonably reflect the costs associated with the production of these veneers, they had to be replaced with a non-related transaction price, which was set at the price of other transactions of the company with unrelated suppliers.

3.2.   Determination of normal value for all exporting producers not granted MET

3.2.1.   Analogue country

| (52) | Pursuant to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not granted market economy treatment has to be established on the basis of the prices or constructed value of the analogue country. |
| --- | --- |

(52)

Pursuant to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not granted market economy treatment has to be established on the basis of the prices or constructed value of the analogue country.

| (53) | In the notice of initiation of this proceeding, Morocco was envisaged as an appropriate market economy third country for the purpose of establishing normal value for the PRC and interested parties were invited to comment on this. Three exporting producers contested this choice within the deadlines and proposed Brazil and Indonesia as analogue countries. |
| --- | --- |

(53)

In the notice of initiation of this proceeding, Morocco was envisaged as an appropriate market economy third country for the purpose of establishing normal value for the PRC and interested parties were invited to comment on this. Three exporting producers contested this choice within the deadlines and proposed Brazil and Indonesia as analogue countries.

| (54) | In order to establish whether the envisaged choice of Morocco as analogue country was appropriate, the Commission first contacted all known producers of okoumé plywood outside the European Community and the PRC, namely in Morocco, Brazil and Indonesia. However, only one Moroccan company co-operated in the proceeding and its data were verified. |
| --- | --- |

(54)

In order to establish whether the envisaged choice of Morocco as analogue country was appropriate, the Commission first contacted all known producers of okoumé plywood outside the European Community and the PRC, namely in Morocco, Brazil and Indonesia. However, only one Moroccan company co-operated in the proceeding and its data were verified.

| (55) | The investigation then showed that other countries, namely Malaysia and Turkey, could also have producers of okoumé plywood. The known producers in these countries were contacted, and only one Turkish company accepted to cooperate in the proceeding. However, given the statutory deadlines for reaching a provisional determination, and given that the data from the Turkish producer were provided at a late stage and the analysis is not yet completed, the Commission decided to use Morocco as an appropriate analogue country in the framework of this provisional determination. |
| --- | --- |

(55)

The investigation then showed that other countries, namely Malaysia and Turkey, could also have producers of okoumé plywood. The known producers in these countries were contacted, and only one Turkish company accepted to cooperate in the proceeding. However, given the statutory deadlines for reaching a provisional determination, and given that the data from the Turkish producer were provided at a late stage and the analysis is not yet completed, the Commission decided to use Morocco as an appropriate analogue country in the framework of this provisional determination.

| (56) | Three exporting producers opposed this proposal with the main arguments that the cost structure of the Moroccan producer was not similar to the cost structure of the Chinese producers, and that the Moroccan market lacked internal competition. |
| --- | --- |

(56)

Three exporting producers opposed this proposal with the main arguments that the cost structure of the Moroccan producer was not similar to the cost structure of the Chinese producers, and that the Moroccan market lacked internal competition.

| (57) | In this respect, the investigation has provisionally confirmed that there is only one Moroccan producer on the domestic market and that a high customs duty exists. However the Moroccan producer’s sales were deemed substantial and sufficiently representative in comparison to the volume of Chinese exports of the product concerned originating in the PRC to the Community during the IP. Therefore, the arguments made were not considered to be as such sufficient to prevent the Commission from calculating a reasonable provisional normal value, duly adjusted by taking into account the customs duty. Should it be found in the further course of the investigation, on the basis of the on-going analysis of the data provided by the Turkish company that Turkey is more suitable as an analogue country, these new elements will be duly considered. |
| --- | --- |

(57)

In this respect, the investigation has provisionally confirmed that there is only one Moroccan producer on the domestic market and that a high customs duty exists. However the Moroccan producer’s sales were deemed substantial and sufficiently representative in comparison to the volume of Chinese exports of the product concerned originating in the PRC to the Community during the IP. Therefore, the arguments made were not considered to be as such sufficient to prevent the Commission from calculating a reasonable provisional normal value, duly adjusted by taking into account the customs duty. Should it be found in the further course of the investigation, on the basis of the on-going analysis of the data provided by the Turkish company that Turkey is more suitable as an analogue country, these new elements will be duly considered.

3.2.2.   Determination of normal value in the analogue country

| (58) | In order to establish whether sales on the Moroccan market of the products comparable with those sold by the Chinese exporting producers to the Community were made in the ordinary course of trade, the domestic selling price was compared to the full cost of production (i.e. the cost of manufacturing plus SG&A expenses). Since the large majority of the sales volume of the types sold on the domestic market were sold at a loss and since the weighted average cost of production was higher than the weighted average selling price, normal value had to be constructed. |
| --- | --- |

(58)

In order to establish whether sales on the Moroccan market of the products comparable with those sold by the Chinese exporting producers to the Community were made in the ordinary course of trade, the domestic selling price was compared to the full cost of production (i.e. the cost of manufacturing plus SG&A expenses). Since the large majority of the sales volume of the types sold on the domestic market were sold at a loss and since the weighted average cost of production was higher than the weighted average selling price, normal value had to be constructed.

| (59) | In accordance with Article 2(3) of the basic Regulation, normal value was constructed on the basis of the producer’s own cost of manufacturing plus a reasonable amount for selling, general and administrative (‘SG&A’) costs and for profit. It was possible to use its own SG&A costs as the domestic sales of the like product were representative. For the profit, it was decided to provisionally use a reasonable profit margin reflecting the average company’s global profit margin, in accordance with Article 2(6)(c) of the basic Regulation. |
| --- | --- |

(59)

In accordance with Article 2(3) of the basic Regulation, normal value was constructed on the basis of the producer’s own cost of manufacturing plus a reasonable amount for selling, general and administrative (‘SG&A’) costs and for profit. It was possible to use its own SG&A costs as the domestic sales of the like product were representative. For the profit, it was decided to provisionally use a reasonable profit margin reflecting the average company’s global profit margin, in accordance with Article 2(6)(c) of the basic Regulation.

4.   EXPORT PRICE

| (60) | The export prices for the co-operating exporting producers were established on the basis of the prices paid or payable for the product concerned when sold for consumption in the Community to the first independent customer in accordance with Article 2(8) of the basic Regulation. |
| --- | --- |

(60)

The export prices for the co-operating exporting producers were established on the basis of the prices paid or payable for the product concerned when sold for consumption in the Community to the first independent customer in accordance with Article 2(8) of the basic Regulation.

| (61) | For the non-cooperating producers, the export prices were established in accordance with Article 18 of the basic Regulation. Export prices were therefore calculated on the basis of the lowest verified export price of the co-operating exporting producer for which MET and IT were not granted. |
| --- | --- |

(61)

For the non-cooperating producers, the export prices were established in accordance with Article 18 of the basic Regulation. Export prices were therefore calculated on the basis of the lowest verified export price of the co-operating exporting producer for which MET and IT were not granted.

5.   COMPARISON

| (62) | For the purposes of ensuring a fair comparison between the normal value and the export price at an ex-works level and at the same level of trade, due allowance in the form of adjustments was made for differences that were claimed and demonstrated to affect prices and price comparability in accordance with Article 2(10) of the basic Regulation. Adjustments were made in respect of transport, insurance and handling, packing and credit costs, bank charges and commissions where applicable and justified. |
| --- | --- |

(62)

For the purposes of ensuring a fair comparison between the normal value and the export price at an ex-works level and at the same level of trade, due allowance in the form of adjustments was made for differences that were claimed and demonstrated to affect prices and price comparability in accordance with Article 2(10) of the basic Regulation. Adjustments were made in respect of transport, insurance and handling, packing and credit costs, bank charges and commissions where applicable and justified.

| (63) | It was found that one company made all its export sales through a Chinese trader. This trader was in charge of customer relations, finding new orders, invoicing to the final customer, and even, through a second company, forwarding the VAT reimbursement for exports to the producer. In return the trader received a commission on sales, and a discount on the purchase of a certain quantity of products. It was considered that this latter discount could be allocated only to export sales. The total amount of the discount was therefore allocated on the basis of the export turnover during the IP and the amount corresponding to the EC sales of the product concerned was taken into account when calculating the export prices of the company. |
| --- | --- |

(63)

It was found that one company made all its export sales through a Chinese trader. This trader was in charge of customer relations, finding new orders, invoicing to the final customer, and even, through a second company, forwarding the VAT reimbursement for exports to the producer. In return the trader received a commission on sales, and a discount on the purchase of a certain quantity of products. It was considered that this latter discount could be allocated only to export sales. The total amount of the discount was therefore allocated on the basis of the export turnover during the IP and the amount corresponding to the EC sales of the product concerned was taken into account when calculating the export prices of the company.

| (64) | When Chinese companies export the product concerned they are entitled to a VAT reimbursement of 13 % of the turnover on an FOB basis. However, the VAT that the companies have to charge on their accounts is 17 % of the turnover on an FOB basis. An allowance to reflect this difference of 4 % was therefore taken into account when calculating the export price. |
| --- | --- |

(64)

When Chinese companies export the product concerned they are entitled to a VAT reimbursement of 13 % of the turnover on an FOB basis. However, the VAT that the companies have to charge on their accounts is 17 % of the turnover on an FOB basis. An allowance to reflect this difference of 4 % was therefore taken into account when calculating the export price.

6.   DUMPING MARGIN

6.1.   For the co-operating exporting producers granted MET

| (65) | In accordance with Article 2(11) and 2(12) of the basic Regulation, the dumping margin was established on the basis of a comparison of the weighted average normal value with the weighted average export prices per product type, as determined above. |
| --- | --- |

(65)

In accordance with Article 2(11) and 2(12) of the basic Regulation, the dumping margin was established on the basis of a comparison of the weighted average normal value with the weighted average export prices per product type, as determined above.

| (66) | The provisional dumping margins expressed as a percentage of the CIF Community frontier price duty unpaid are:






  Company | Provisional dumping margin |
| --- | --- | --- |
| Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. | 23,9  % |
| Jiaxing Jinlin Lumber Co., Ltd. | 18,5  % |
| Nantong Zongyi Plywood Co., Ltd. | 12,0  % |
| Zhonglin Enterprise (Dangshan) Co., Ltd. | 8,5  % |

(66)

The provisional dumping margins expressed as a percentage of the CIF Community frontier price duty unpaid are:

Company

Provisional dumping margin

Zhejiang Deren Bamboo-Wood Technologies Co., Ltd.

23,9  %

Jiaxing Jinlin Lumber Co., Ltd.

18,5  %

Nantong Zongyi Plywood Co., Ltd.

12,0  %

Zhonglin Enterprise (Dangshan) Co., Ltd.

8,5  %

6.2.   For all other exporting producers

| (67) | In order to calculate the country-wide dumping margin applicable to all other exporters in the PRC, the Commission first established the level of co-operation. A comparison was made between the data available, mainly the complaint, and the actual questionnaire replies received from the exporters in the PRC. This comparison showed that the level of cooperation was extremely low (20 %). |
| --- | --- |

(67)

In order to calculate the country-wide dumping margin applicable to all other exporters in the PRC, the Commission first established the level of co-operation. A comparison was made between the data available, mainly the complaint, and the actual questionnaire replies received from the exporters in the PRC. This comparison showed that the level of cooperation was extremely low (20 %).

| (68) | The dumping margin was calculated by comparing the weighted average normal value established for the analogue country and the weighted average export price estimated on the basis of the facts available described above under ‘export price’. |
| --- | --- |

(68)

The dumping margin was calculated by comparing the weighted average normal value established for the analogue country and the weighted average export price estimated on the basis of the facts available described above under ‘export price’.

| (69) | On this basis, the country-wide level of dumping was provisionally established at 48,5 % of the CIF Community frontier price duty unpaid. |
| --- | --- |

(69)

On this basis, the country-wide level of dumping was provisionally established at 48,5 % of the CIF Community frontier price duty unpaid.

D.   COMMUNITY INDUSTRY

1.   COMMUNITY PRODUCTION

| (70) | Within the Community, the product concerned is known to be manufactured in France, Italy, Portugal, Greece, Spain and Germany, as follows:






  — | Ten producers on behalf of which the complaint was lodged; the five which were selected in the sample (‘the sampled Community producers’), representing 57 % of the Community production, were also complainants; |
| --- | --- | --- |

(70)

Within the Community, the product concerned is known to be manufactured in France, Italy, Portugal, Greece, Spain and Germany, as follows:

—

Ten producers on behalf of which the complaint was lodged; the five which were selected in the sample (‘the sampled Community producers’), representing 57 % of the Community production, were also complainants;

| — | One producer which supported the proceeding and provided some general information; |
| --- | --- |

—

One producer which supported the proceeding and provided some general information;

| — | Other Community producers which were not complainants and did not co-operate, but did not oppose the present proceeding. |
| --- | --- |

—

Other Community producers which were not complainants and did not co-operate, but did not oppose the present proceeding.

| (71) | The Commission has found that all the above companies could be considered as Community producers within the meaning of Article 4(1) of the basic Regulation. The output of all the above companies constitutes the Community production. |
| --- | --- |

(71)

The Commission has found that all the above companies could be considered as Community producers within the meaning of Article 4(1) of the basic Regulation. The output of all the above companies constitutes the Community production.

2.   COMMUNITY INDUSTRY

| (72) | The accumulated production of the ten Community producers which co-operated with the Commission, which includes the five sampled Community producers, represents 85 % of the total production of okoumé plywood in the Community as estimated in the complaint. They are therefore deemed to constitute ‘the Community industry’ within the meaning of Articles 4(1) and 5(4) of the basic Regulation. |
| --- | --- |

(72)

The accumulated production of the ten Community producers which co-operated with the Commission, which includes the five sampled Community producers, represents 85 % of the total production of okoumé plywood in the Community as estimated in the complaint. They are therefore deemed to constitute ‘the Community industry’ within the meaning of Articles 4(1) and 5(4) of the basic Regulation.

E.   INJURY

1.   PRELIMINARY REMARK

| (73) | In view of the fact that sampling had been used with regard to the Community industry, injury has been assessed on the basis of the information collected. Trends concerning production, productivity, sales, market share, employment and growth were assessed at the level of the Community industry, and trends concerning prices and profitability, cash flow, ability to raise capital and investments, stocks, capacity and utilisation of capacity, return on investment and wages were analysed on the basis of the information collected at the level of the sampled Community producers. |
| --- | --- |

(73)

In view of the fact that sampling had been used with regard to the Community industry, injury has been assessed on the basis of the information collected. Trends concerning production, productivity, sales, market share, employment and growth were assessed at the level of the Community industry, and trends concerning prices and profitability, cash flow, ability to raise capital and investments, stocks, capacity and utilisation of capacity, return on investment and wages were analysed on the basis of the information collected at the level of the sampled Community producers.

2.   COMMUNITY CONSUMPTION

| (74) | Community consumption was established on the basis of the sales volumes of the Community industry on the Community market, plus the estimated sales of the other Community producers, plus all the imports from the PRC, Morocco and Gabon and an estimated proportion of imports of the product concerned from the other third countries under CN code 4412 13 10, as the product concerned only represents a part of this customs code. This proportion and the estimation of all imports were based on the methodology followed in the complaint. |
| --- | --- |

(74)

Community consumption was established on the basis of the sales volumes of the Community industry on the Community market, plus the estimated sales of the other Community producers, plus all the imports from the PRC, Morocco and Gabon and an estimated proportion of imports of the product concerned from the other third countries under CN code 4412 13 10, as the product concerned only represents a part of this customs code. This proportion and the estimation of all imports were based on the methodology followed in the complaint.

| (75) | Between 1999 and the IP, the apparent Community consumption increased from 394 663 m3 to 447 979 m3, i.e. by 14 %. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Community consumption (m3) | 394 663 | 401 096 | 400 966 | 424 131 | 447 979 |

(75)

Between 1999 and the IP, the apparent Community consumption increased from 394 663 m3 to 447 979 m3, i.e. by 14 %.

3

3

1999

2000

2001

2002

IP

Community consumption (m3)

3

394 663

401 096

400 966

424 131

447 979

3.   IMPORTS FROM THE COUNTRY CONCERNED

3.1.   Volume and market share

| (76) | Imports of the product concerned from the PRC into the Community increased from 1 093 m3 in 1999 to 83 606 m3 in the IP. The imports were not very significant until 2001, but increased sharply from then until the end of the IP. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Imports from the PRC (m3) | 1 093 | 1 540 | 9 531 | 43 082 | 83 606 |

(76)

Imports of the product concerned from the PRC into the Community increased from 1 093 m3 in 1999 to 83 606 m3 in the IP. The imports were not very significant until 2001, but increased sharply from then until the end of the IP.

3

3

1999

2000

2001

2002

IP

Imports from the PRC (m3)

3

1 093

1 540

9 531

43 082

83 606

| (77) | The corresponding market share increased from 0,3 % in 1999 to 18,7 % in the IP. The increase was particularly sharp, from 2,4 % to 18,7 %, between 2001 and the IP. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Market share of imports from PRC | 0,3  % | 0,4  % | 2,4  % | 10,2  % | 18,7  % |

(77)

The corresponding market share increased from 0,3 % in 1999 to 18,7 % in the IP. The increase was particularly sharp, from 2,4 % to 18,7 %, between 2001 and the IP.

1999

2000

2001

2002

IP

Market share of imports from PRC

0,3  %

0,4  %

2,4  %

10,2  %

18,7  %

3.2.   Prices

| (78) | Average prices of imports of the product concerned from the PRC decreased from EUR 469/m3 in 1999 to EUR 393/m3 in the IP, i.e. a decrease of 16,2 %. Given the very low volumes of imports in 1999 and 2000, data on corresponding prices are not very meaningful. However, an overall decreasing trend emerges throughout the period under consideration, in spite of the small rise between 2000 and 2001. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Average price of imports from PRC (EUR/m3) | 469 | 361 | 431 | 434 | 393 |

(78)

Average prices of imports of the product concerned from the PRC decreased from EUR 469/m3 in 1999 to EUR 393/m3 in the IP, i.e. a decrease of 16,2 %. Given the very low volumes of imports in 1999 and 2000, data on corresponding prices are not very meaningful. However, an overall decreasing trend emerges throughout the period under consideration, in spite of the small rise between 2000 and 2001.

3

3

1999

2000

2001

2002

IP

Average price of imports from PRC (EUR/m3)

3

469

361

431

434

393

3.3.   Price undercutting

| (79) | For the purposes of analysing price undercutting, the weighted average sales prices per product type of the sampled Community industry to unrelated customers on the Community market were compared with the corresponding weighted average export prices of the imports concerned. The comparison was made after deduction of rebates and discounts. The prices of the Community industry were adjusted to an ex-works basis. The prices of the imports concerned were on a CIF basis with an appropriate adjustment for the customs duties and post importation costs. |
| --- | --- |

(79)

For the purposes of analysing price undercutting, the weighted average sales prices per product type of the sampled Community industry to unrelated customers on the Community market were compared with the corresponding weighted average export prices of the imports concerned. The comparison was made after deduction of rebates and discounts. The prices of the Community industry were adjusted to an ex-works basis. The prices of the imports concerned were on a CIF basis with an appropriate adjustment for the customs duties and post importation costs.

| (80) | It has been pointed out to the Commission that the quality of the products manufactured by the Community industry is generally higher than that of the like product imported from the PRC. Based on the evidence found, it was considered that this quality difference justified an estimated adjustment of 10 %, which was added to the CIF Community frontier price of the co-operating exporting producers. |
| --- | --- |

(80)

It has been pointed out to the Commission that the quality of the products manufactured by the Community industry is generally higher than that of the like product imported from the PRC. Based on the evidence found, it was considered that this quality difference justified an estimated adjustment of 10 %, which was added to the CIF Community frontier price of the co-operating exporting producers.

| (81) | This comparison showed that during the IP the products concerned originating in the PRC were sold in the Community at prices which undercut the Community industry's prices by margins ranging from 11 % to 52 % when expressed as a percentage of the latter's prices. |
| --- | --- |

(81)

This comparison showed that during the IP the products concerned originating in the PRC were sold in the Community at prices which undercut the Community industry's prices by margins ranging from 11 % to 52 % when expressed as a percentage of the latter's prices.

4.   SITUATION OF THE COMMUNITY INDUSTRY

| (82) | In accordance with Article 3(5) of the basic Regulation, the Commission examined all relevant economic factors and indices having a bearing on the state of the Community industry from 1999 to the IP. |
| --- | --- |

(82)

In accordance with Article 3(5) of the basic Regulation, the Commission examined all relevant economic factors and indices having a bearing on the state of the Community industry from 1999 to the IP.

4.1.   Data relating to the Community industry as a whole

4.1.1.   Production, employment and productivity

| (83) | The production volume of the Community industry decreased by 10 % between 1999 and the IP, from 295 915 m3 to 267 591 m3. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Production (m3) | 295 915 | 293 320 | 309 933 | 283 265 | 267 591 |

(83)

The production volume of the Community industry decreased by 10 % between 1999 and the IP, from 295 915 m3 to 267 591 m3.

3

3

1999

2000

2001

2002

IP

Production (m3)

3

295 915

293 320

309 933

283 265

267 591

| (84) | Employment decreased by 9 % between 1999 and the IP. Moreover, during the IP one of the companies decided to reduce its staff by 66, although for legal reasons this will only take effect officially after the IP. Productivity increased between 1999 and 2001, and then decreased again between 2001 and the IP, due to the reduction in output. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Employment | 1 608 | 1 642 | 1 600 | 1 489 | 1 462 |
| Production per employee | 184 | 179 | 194 | 190 | 183 |

(84)

Employment decreased by 9 % between 1999 and the IP. Moreover, during the IP one of the companies decided to reduce its staff by 66, although for legal reasons this will only take effect officially after the IP. Productivity increased between 1999 and 2001, and then decreased again between 2001 and the IP, due to the reduction in output.

1999

2000

2001

2002

IP

Employment

1 608

1 642

1 600

1 489

1 462

Production per employee

184

179

194

190

183

4.1.2.   Sales volume and market share

| (85) | Over the period under consideration, the EC sales volume of the Community industry decreased by 10 %, from 283 121 m3 in 1999 to 255 943 m3 during the IP. The decrease was particularly sharp between 2001 and the IP (-12 %). | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| EC sales (m3) | 283 121 | 291 562 | 292 264 | 272 488 | 255 943 |

(85)

Over the period under consideration, the EC sales volume of the Community industry decreased by 10 %, from 283 121 m3 in 1999 to 255 943 m3 during the IP. The decrease was particularly sharp between 2001 and the IP (-12 %).

3

3

1999

2000

2001

2002

IP

EC sales (m3)

3

283 121

291 562

292 264

272 488

255 943

| (86) | The Community industry’s market share decreased in volume from 71,7 % in 1999 to 57,1 % in the IP. It declined particularly sharply during the 18 months after the surge of imports from China, from 72,9 % in 2001 to 57,1 % in the IP. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| EC market share | 71,7  % | 72,7  % | 72,9  % | 64,2  % | 57,1  % |

(86)

The Community industry’s market share decreased in volume from 71,7 % in 1999 to 57,1 % in the IP. It declined particularly sharply during the 18 months after the surge of imports from China, from 72,9 % in 2001 to 57,1 % in the IP.

1999

2000

2001

2002

IP

EC market share

71,7  %

72,7  %

72,9  %

64,2  %

57,1  %

4.1.3.   Growth

| (87) | While Community consumption grew by 14 % between 1999 and the IP, the sales volume of the Community industry declined by 10 %. On the other hand, the volume of imports from the PRC, increased sharply in the same period. While the market share of imports from the PRC increased by more than 16 percentage points, the market share of the Community industry dropped by 15 percentage points. The increase in imports therefore meant that the European industry did not participate in the growth of the market between 1999 and the IP. |
| --- | --- |

(87)

While Community consumption grew by 14 % between 1999 and the IP, the sales volume of the Community industry declined by 10 %. On the other hand, the volume of imports from the PRC, increased sharply in the same period. While the market share of imports from the PRC increased by more than 16 percentage points, the market share of the Community industry dropped by 15 percentage points. The increase in imports therefore meant that the European industry did not participate in the growth of the market between 1999 and the IP.

4.2.   Data relating to the sampled Community producers

4.2.1.   Stocks, capacity and capacity utilisation

| (88) | Stock levels in this industry are usually not very significant since most production takes place to order. For the sake of completeness it is noted that the stock levels of the Community industry declined during the period under consideration. This was mainly due to rationalisation efforts by one of the largest Community producers. However, it is considered that in this case stocks were not a relevant indicator of injury for the above reasons. |
| --- | --- |

(88)

Stock levels in this industry are usually not very significant since most production takes place to order. For the sake of completeness it is noted that the stock levels of the Community industry declined during the period under consideration. This was mainly due to rationalisation efforts by one of the largest Community producers. However, it is considered that in this case stocks were not a relevant indicator of injury for the above reasons.

| (89) | The production capacity was established on the basis of the number and capacity of plywood presses, working two daily shifts. The determination of production capacity had to be estimated as some producers manufacture okoumé plywood using the same facilities and equipment as for other types of plywood. In those cases, the production capacity for the product concerned was estimated by establishing the proportion of okoumé plywood actually produced in comparison to the total plywood produced by the given producer, and then applying this proportion to the total production capacity of the production facility in question. |
| --- | --- |

(89)

The production capacity was established on the basis of the number and capacity of plywood presses, working two daily shifts. The determination of production capacity had to be estimated as some producers manufacture okoumé plywood using the same facilities and equipment as for other types of plywood. In those cases, the production capacity for the product concerned was estimated by establishing the proportion of okoumé plywood actually produced in comparison to the total plywood produced by the given producer, and then applying this proportion to the total production capacity of the production facility in question.

| (90) | Bearing in mind the above, it was found that during the period under consideration the production capacity of the Community industry decreased by 5 %. The decrease in 2001 is due to the closure of one production unit. During the same period, the capacity utilisation of the Community industry decreased from 87 % to 74 %, i.e. by 15 %. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Production capacity (m3) | 255 774 | 262 420 | 236 348 | 242 835 | 242 668 |
| Capacity utilisation | 87,4  % | 82,0  % | 93,1  % | 80,4  % | 74,2  % |

(90)

Bearing in mind the above, it was found that during the period under consideration the production capacity of the Community industry decreased by 5 %. The decrease in 2001 is due to the closure of one production unit. During the same period, the capacity utilisation of the Community industry decreased from 87 % to 74 %, i.e. by 15 %.

1999

2000

2001

2002

IP

Production capacity (m3)

3

255 774

262 420

236 348

242 835

242 668

Capacity utilisation

87,4  %

82,0  %

93,1  %

80,4  %

74,2  %

4.2.2.   Prices and factors affecting domestic prices

| (91) | Average prices per m3 of the Community industry have remained relatively stable, with a nominal increase of 3 % between 1999 and the IP. The absence of price declines despite the competition from low-priced Chinese imports may be explained by the decision of Community producers to make some shift in their product mix. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Average selling price (EUR/m3) | 695 | 697 | 723 | 717 | 717 |

(91)

Average prices per m3 of the Community industry have remained relatively stable, with a nominal increase of 3 % between 1999 and the IP. The absence of price declines despite the competition from low-priced Chinese imports may be explained by the decision of Community producers to make some shift in their product mix.

3

1999

2000

2001

2002

IP

Average selling price (EUR/m3)

3

695

697

723

717

717

4.2.3.   Investments and ability to raise capital

| (92) | Between 1999 and the 2001, the industry made significant investments, from EUR 6,5 million to EUR 10,4 million annually. After 2001, when imports from the PRC increased steeply, investments decreased sharply to only EUR 1,3 million in the IP. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Investments (in EUR ’000) | 6 536 | 7 500 | 10 406 | 3 093 | 1 327 |

(92)

Between 1999 and the 2001, the industry made significant investments, from EUR 6,5 million to EUR 10,4 million annually. After 2001, when imports from the PRC increased steeply, investments decreased sharply to only EUR 1,3 million in the IP.

1999

2000

2001

2002

IP

Investments (in EUR ’000)

6 536

7 500

10 406

3 093

1 327

| (93) | In the recent past, including the period under consideration, the Community okoumé plywood producers, which are part of the broader wood products industry, have undergone significant re-structuring and consolidation movements. These movements involved changes of ownership and re-grouping of the companies, sometimes within broader industrial groups, as well as considerable modernization investments as shown above. |
| --- | --- |

(93)

In the recent past, including the period under consideration, the Community okoumé plywood producers, which are part of the broader wood products industry, have undergone significant re-structuring and consolidation movements. These movements involved changes of ownership and re-grouping of the companies, sometimes within broader industrial groups, as well as considerable modernization investments as shown above.

| (94) | As to ability to raise capital, there was no claim from the Community industry, nor indication, that the Community industry encountered problems in raising capital for its activities. This may be attributed to the effects of the above-mentioned consolidation of the industry, through which the financial resources of large industrial groups were made available to some of the Community producers. |
| --- | --- |

(94)

As to ability to raise capital, there was no claim from the Community industry, nor indication, that the Community industry encountered problems in raising capital for its activities. This may be attributed to the effects of the above-mentioned consolidation of the industry, through which the financial resources of large industrial groups were made available to some of the Community producers.

4.2.4.   Profitability, return on investment and cash flow

| (95) | Over the period under consideration, the profitability of the sampled Community producers dropped significantly from 3,5 % in 1999 to -8,9 % in the IP. The return on investment followed the same trend, falling from 15,6 % in 1999 to -27,5 % during the IP. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Profitability | 3,5  % | 0,8  % | -2,7  % | -7,6  % | -8,9  % |
| Return on investment | 15,6  % | 3,4  % | -9,4  % | -23,8  % | -27,5  % |

(95)

Over the period under consideration, the profitability of the sampled Community producers dropped significantly from 3,5 % in 1999 to -8,9 % in the IP. The return on investment followed the same trend, falling from 15,6 % in 1999 to -27,5 % during the IP.

1999

2000

2001

2002

IP

Profitability

3,5  %

0,8  %

-2,7  %

-7,6  %

-8,9  %

Return on investment

15,6  %

3,4  %

-9,4  %

-23,8  %

-27,5  %

| (96) | The cash flow generated by the like product diminished considerably from EUR 7,6 million in 1999 to EUR 0,059 million during the IP. During the same period, there were some substantial short-term cash flow variations which were due to stock level variations and non-cash expenses related to the above-mentioned restructuring of the industry. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Cash flow (in EUR ’000) | 7 594 | -876 | -2 050 | 591 | 59 |

(96)

The cash flow generated by the like product diminished considerably from EUR 7,6 million in 1999 to EUR 0,059 million during the IP. During the same period, there were some substantial short-term cash flow variations which were due to stock level variations and non-cash expenses related to the above-mentioned restructuring of the industry.

1999

2000

2001

2002

IP

Cash flow (in EUR ’000)

7 594

-876

-2 050

591

59

4.2.5.   Wages

| (97) | Labour costs decreased by 7 % over the period under consideration, from EUR 32,2 million in 1999 to EUR 29,9 million during the IP due to the reduction in the number of people employed. Average labour costs per employee actually increased by 7 %, from EUR 26 770 to EUR 28 638, i.e. in line with consumer prices. | 1999 | 2000 | 2001 | 2002 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Labour costs per employee (EUR) | 26 770 | 27 661 | 27 649 | 28 641 | 28 638 |

(97)

Labour costs decreased by 7 % over the period under consideration, from EUR 32,2 million in 1999 to EUR 29,9 million during the IP due to the reduction in the number of people employed. Average labour costs per employee actually increased by 7 %, from EUR 26 770 to EUR 28 638, i.e. in line with consumer prices.

1999

2000

2001

2002

IP

Labour costs per employee (EUR)

26 770

27 661

27 649

28 641

28 638

4.2.6.   Magnitude of the dumping margin

| (98) | Given the volume and the price of the dumped imports, the impact of the actual margin of dumping, which is also significant, cannot be considered negligible. |
| --- | --- |

(98)

Given the volume and the price of the dumped imports, the impact of the actual margin of dumping, which is also significant, cannot be considered negligible.

4.2.7.   Recovery from past dumping

| (99) | The Community industry was not in a situation where it had to recover from the past effects of injurious dumping. |
| --- | --- |

(99)

The Community industry was not in a situation where it had to recover from the past effects of injurious dumping.

5.   CONCLUSION ON INJURY

| (100) | Between 1999 and the IP the volume of dumped imports of the product concerned originating in the PRC increased from 1 093 m3 to 83 606 m3. The corresponding market share increased from 0,3 % in 1999 to 18,7 % during the IP. Most of the increase took place between 2002 and the IP. The average prices of the dumped imports decreased over the period under consideration by 16,2 % and were consistently lower than those of the Community industry, undercutting the latter by 11 % to 52 %. |
| --- | --- |

(100)

Between 1999 and the IP the volume of dumped imports of the product concerned originating in the PRC increased from 1 093 m3 to 83 606 m3. The corresponding market share increased from 0,3 % in 1999 to 18,7 % during the IP. Most of the increase took place between 2002 and the IP. The average prices of the dumped imports decreased over the period under consideration by 16,2 % and were consistently lower than those of the Community industry, undercutting the latter by 11 % to 52 %.

3

3

| (101) | An examination of the above factors shows that between 1999 and the IP, the situation of the Community industry deteriorated. Over the period under consideration, the Community industry’s sales volume decreased by 10 % and its market share decreased by 14,6 percentage points. Employment was also reduced from 2001 onwards. For the sampled Community producers investments dropped significantly and profitability, return on investment as well as cash flow decreased dramatically. The deterioration in the situation of the Community industry mainly took place through a sales volume effect (which is reflected in the reduction of the capacity utilisation). Price levels, from 1999 until the IP, declined only slightly in real terms. |
| --- | --- |

(101)

An examination of the above factors shows that between 1999 and the IP, the situation of the Community industry deteriorated. Over the period under consideration, the Community industry’s sales volume decreased by 10 % and its market share decreased by 14,6 percentage points. Employment was also reduced from 2001 onwards. For the sampled Community producers investments dropped significantly and profitability, return on investment as well as cash flow decreased dramatically. The deterioration in the situation of the Community industry mainly took place through a sales volume effect (which is reflected in the reduction of the capacity utilisation). Price levels, from 1999 until the IP, declined only slightly in real terms.

| (102) | In the light of the foregoing, it is provisionally concluded that the Community industry suffered material injury within the meaning of Article 3(5) of the basic Regulation. |
| --- | --- |

(102)

In the light of the foregoing, it is provisionally concluded that the Community industry suffered material injury within the meaning of Article 3(5) of the basic Regulation.

F.   CAUSATION

1.   INTRODUCTION

| (103) | In accordance with Article 3(6) and (7) of the basic Regulation, it was examined whether the dumped imports originating in the PRC have caused injury to the Community industry to a degree that may be considered as material. Known factors other than the dumped imports, which could at the same time have injured the Community industry, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports. |
| --- | --- |

(103)

In accordance with Article 3(6) and (7) of the basic Regulation, it was examined whether the dumped imports originating in the PRC have caused injury to the Community industry to a degree that may be considered as material. Known factors other than the dumped imports, which could at the same time have injured the Community industry, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports.

2.   EFFECT OF THE DUMPED IMPORTS

| (104) | Between 1999 and the IP, the volume of imports of the product concerned from the PRC into the Community increased from insignificant levels to 83 606 m3. Its corresponding share of the Community market went from 0,3 % in 1999 to reach 18,7 % during the IP. The greatest increase took place between 2001 and the IP. |
| --- | --- |

(104)

Between 1999 and the IP, the volume of imports of the product concerned from the PRC into the Community increased from insignificant levels to 83 606 m3. Its corresponding share of the Community market went from 0,3 % in 1999 to reach 18,7 % during the IP. The greatest increase took place between 2001 and the IP.

3

| (105) | The substantial increase in the volume of imports originating in the country concerned and their gain in market share in 2002 and during the IP, at prices which decreased and remained well below those of the Community industry, coincided with the deterioration of the situation of the Community industry during the very same period, in particular in terms of sales volume, market share, profitability, cash flow and employment. As mentioned above, the imports originating in the PRC undercut the average sales price of the Community industry by significant amounts, with undercutting margins ranging from 11 % to 52 %. |
| --- | --- |

(105)

The substantial increase in the volume of imports originating in the country concerned and their gain in market share in 2002 and during the IP, at prices which decreased and remained well below those of the Community industry, coincided with the deterioration of the situation of the Community industry during the very same period, in particular in terms of sales volume, market share, profitability, cash flow and employment. As mentioned above, the imports originating in the PRC undercut the average sales price of the Community industry by significant amounts, with undercutting margins ranging from 11 % to 52 %.

| (106) | In the analysis of the effect of the dumped imports, it was found that price is an important element of competition, given the relatively standardised characteristics of okoumé plywood products. Moreover, even taking into account the differences in quality, prices of dumped imports were considerably below both those of the Community industry as well as those of other third country exporters. Finally, it was also found that the Community industry had lost some major customers, which had shifted to Chinese plywood suppliers. |
| --- | --- |

(106)

In the analysis of the effect of the dumped imports, it was found that price is an important element of competition, given the relatively standardised characteristics of okoumé plywood products. Moreover, even taking into account the differences in quality, prices of dumped imports were considerably below both those of the Community industry as well as those of other third country exporters. Finally, it was also found that the Community industry had lost some major customers, which had shifted to Chinese plywood suppliers.

| (107) | It is therefore provisionally concluded that the pressure exerted by the imports concerned, which significantly increased their volume and market share from 2001 onwards, and which were made at low, dumped prices, played a determining role in causing the loss of market share for the Community industry and, as a consequence, a deterioration in its financial situation. |
| --- | --- |

(107)

It is therefore provisionally concluded that the pressure exerted by the imports concerned, which significantly increased their volume and market share from 2001 onwards, and which were made at low, dumped prices, played a determining role in causing the loss of market share for the Community industry and, as a consequence, a deterioration in its financial situation.

3.   EFFECTS OF OTHER FACTORS

3.1.   Imports originating in third countries other than PRC

| (108) | According to Eurostat, imports originating in third countries other than the PRC increased slightly, from 60 975 m3 in 1999 to 62 430 m3 during the IP. However, their market share decreased overall from 15,4 % in 1999 to 13,9 % in the IP. The main individual countries exporting the product concerned to the Community are Gabon and Morocco. Gabon maintained a market share at an overall stable level of 5 %, while Morocco's market share increased from 1,1 % to 2,4 %. |
| --- | --- |

(108)

According to Eurostat, imports originating in third countries other than the PRC increased slightly, from 60 975 m3 in 1999 to 62 430 m3 during the IP. However, their market share decreased overall from 15,4 % in 1999 to 13,9 % in the IP. The main individual countries exporting the product concerned to the Community are Gabon and Morocco. Gabon maintained a market share at an overall stable level of 5 %, while Morocco's market share increased from 1,1 % to 2,4 %.

3

3

| (109) | According to Eurostat, the average price of imports originating in countries other than the PRC remained virtually unchanged between 1999 and the IP. Throughout this period prices of imports from other countries were nearly 50 % higher than the prices of imports from the PRC. Consequently, imports from other third countries did not exert a competitive pressure on the Community industry to the extent that imports from the PRC did. Also, the market share of any individual country in that group was not greater than 5 %. |
| --- | --- |

(109)

According to Eurostat, the average price of imports originating in countries other than the PRC remained virtually unchanged between 1999 and the IP. Throughout this period prices of imports from other countries were nearly 50 % higher than the prices of imports from the PRC. Consequently, imports from other third countries did not exert a competitive pressure on the Community industry to the extent that imports from the PRC did. Also, the market share of any individual country in that group was not greater than 5 %.

| (110) | It is therefore provisionally concluded that imports from other third countries could not be a determining reason for the injurious situation of the Community industry. |
| --- | --- |

(110)

It is therefore provisionally concluded that imports from other third countries could not be a determining reason for the injurious situation of the Community industry.

3.2.   Export performance by the Community industry

| (111) | It was claimed that the declining exports of the European industry due to a loss of competitiveness, are also a cause of the deterioration in its financial situation. Non-EC sales of the sampled Community producers did indeed decline from 9 522 m3 in 1999 to 7 374 m3 in the IP. However, the magnitude of this decrease, and the fact that non-EC sales represented less than 5 % of the EC sales during the IP, mean that such a development could not be a determining reason for the injurious situation of the Community industry. |
| --- | --- |

(111)

It was claimed that the declining exports of the European industry due to a loss of competitiveness, are also a cause of the deterioration in its financial situation. Non-EC sales of the sampled Community producers did indeed decline from 9 522 m3 in 1999 to 7 374 m3 in the IP. However, the magnitude of this decrease, and the fact that non-EC sales represented less than 5 % of the EC sales during the IP, mean that such a development could not be a determining reason for the injurious situation of the Community industry.

3

3

3.3.   Performance of other Community producers

| (112) | As regards the sales volume of other Community producers, it declined from an estimated 49 474 m3 in 1999 to 46 000 in the IP. Their share of the Community market fell from 12,5 % to 10,3 % over the same period, and no indication was found that their prices were lower than those of the co-operating Community industry. Therefore, it is provisionally concluded that the products produced and sold by the other Community producers did not contribute to the injury suffered by the Community industry. |
| --- | --- |

(112)

As regards the sales volume of other Community producers, it declined from an estimated 49 474 m3 in 1999 to 46 000 in the IP. Their share of the Community market fell from 12,5 % to 10,3 % over the same period, and no indication was found that their prices were lower than those of the co-operating Community industry. Therefore, it is provisionally concluded that the products produced and sold by the other Community producers did not contribute to the injury suffered by the Community industry.

3

3.4.   Increase in the costs of the Community industry

| (113) | It was claimed that the degradation of the Community industry's profitability can be attributed to the rise in the industry’s costs, in particular those of raw materials. However, the data collected during the on-spot investigation showed that the rise in total average costs between 1999 and the IP was not higher than the rise in the overall price level in the Community over the same period, i.e. 8 %. Given the decrease in production volume, part of that increase is due to rising fixed costs per unit, and variable costs are likely to have increased even less than total average costs. |
| --- | --- |

(113)

It was claimed that the degradation of the Community industry's profitability can be attributed to the rise in the industry’s costs, in particular those of raw materials. However, the data collected during the on-spot investigation showed that the rise in total average costs between 1999 and the IP was not higher than the rise in the overall price level in the Community over the same period, i.e. 8 %. Given the decrease in production volume, part of that increase is due to rising fixed costs per unit, and variable costs are likely to have increased even less than total average costs.

| (114) | It is therefore provisionally concluded that, under normal economic conditions and in the absence of strong price pressure, the industry would have had no difficulty in coping with whatever increase in cost it experienced between 1999 and the IP and that this increase does not break the causal link between the dumped imports from the PRC and the material injury suffered by the Community industry. |
| --- | --- |

(114)

It is therefore provisionally concluded that, under normal economic conditions and in the absence of strong price pressure, the industry would have had no difficulty in coping with whatever increase in cost it experienced between 1999 and the IP and that this increase does not break the causal link between the dumped imports from the PRC and the material injury suffered by the Community industry.

4.   CONCLUSION

| (115) | The substantial increase in volume and market share of the imports originating in the PRC, especially between 2001 and the IP, as well as the considerable decrease in their sales prices and the level of price undercutting found during the IP coincided with the material injury suffered by the Community industry. |
| --- | --- |

(115)

The substantial increase in volume and market share of the imports originating in the PRC, especially between 2001 and the IP, as well as the considerable decrease in their sales prices and the level of price undercutting found during the IP coincided with the material injury suffered by the Community industry.

| (116) | The imports from other third countries, exports of the Community industry, the performance of other producers and development of costs were analysed but found not to be a determining reason for the injury suffered by the Community industry. |
| --- | --- |

(116)

The imports from other third countries, exports of the Community industry, the performance of other producers and development of costs were analysed but found not to be a determining reason for the injury suffered by the Community industry.

| (117) | Based on the above analysis, which has properly distinguished and separated the effects of all known factors having an effect on the situation of the Community industry, from the injurious effect of the dumped imports, it is therefore provisionally concluded that the imports from the PRC have caused material injury to the Community within the meaning of Article 3(6) of the basic Regulation. |
| --- | --- |

(117)

Based on the above analysis, which has properly distinguished and separated the effects of all known factors having an effect on the situation of the Community industry, from the injurious effect of the dumped imports, it is therefore provisionally concluded that the imports from the PRC have caused material injury to the Community within the meaning of Article 3(6) of the basic Regulation.

G.   COMMUNITY INTEREST

| (118) | In accordance with Article 21 of the basic Regulation, it was examined whether, despite the conclusion on injurious dumping, compelling reasons existed for concluding that it is not in the Community interest to adopt measures in this particular case. The impact of possible measures on all parties involved in this proceeding and also the consequences of not taking measures were considered. |
| --- | --- |

(118)

In accordance with Article 21 of the basic Regulation, it was examined whether, despite the conclusion on injurious dumping, compelling reasons existed for concluding that it is not in the Community interest to adopt measures in this particular case. The impact of possible measures on all parties involved in this proceeding and also the consequences of not taking measures were considered.

1.   INTERESTS OF THE COMMUNITY INDUSTRY

| (119) | Okoumé plywood is part of the broader overall Community wood products industry. Some of the companies investigated are totally or partially specialised in okoumé products, which have distinct characteristics in terms of production process, quality, applications, marketing channels etc. These companies account for over 1 400 direct jobs in the Community. |
| --- | --- |

(119)

Okoumé plywood is part of the broader overall Community wood products industry. Some of the companies investigated are totally or partially specialised in okoumé products, which have distinct characteristics in terms of production process, quality, applications, marketing channels etc. These companies account for over 1 400 direct jobs in the Community.

| (120) | The imposition of measures is expected to prevent further distortions and restore fair competition on the market. The Community industry should then be able to increase its sales, thereby generating the necessary profit level to justify continued investment in its production facilities. This should lead to increased productivity, lower unit costs and an improvement in the Community industry’s financial situation. |
| --- | --- |

(120)

The imposition of measures is expected to prevent further distortions and restore fair competition on the market. The Community industry should then be able to increase its sales, thereby generating the necessary profit level to justify continued investment in its production facilities. This should lead to increased productivity, lower unit costs and an improvement in the Community industry’s financial situation.

| (121) | On the other hand, should anti-dumping measures not be imposed, it is likely that the deterioration in the situation of the Community industry would continue. It would not be able to carry out the necessary investments in order to compete effectively with dumped imports from third countries. Indeed, in view of the decreasing revenue and the material injury suffered, it is most likely that the financial situation of the Community industry would deteriorate further in the absence of measures. This would in all likelihood force some companies to cease production and lay off their employees in the short term future. |
| --- | --- |

(121)

On the other hand, should anti-dumping measures not be imposed, it is likely that the deterioration in the situation of the Community industry would continue. It would not be able to carry out the necessary investments in order to compete effectively with dumped imports from third countries. Indeed, in view of the decreasing revenue and the material injury suffered, it is most likely that the financial situation of the Community industry would deteriorate further in the absence of measures. This would in all likelihood force some companies to cease production and lay off their employees in the short term future.

| (122) | Accordingly, it is provisionally concluded that the imposition of anti-dumping measures would allow the Community industry to recover from the effects of injurious dumping suffered and is in the interest of the Community industry. |
| --- | --- |

(122)

Accordingly, it is provisionally concluded that the imposition of anti-dumping measures would allow the Community industry to recover from the effects of injurious dumping suffered and is in the interest of the Community industry.

2.   INTEREST OF UNRELATED IMPORTERS AND USERS IN THE COMMUNITY

| (123) | The Commission sent questionnaires to all known importers, traders and users. In all, 27 questionnaires were sent out to importers and traders and their associations, and 12 to users. No replies to those questionnaires were received. |
| --- | --- |

(123)

The Commission sent questionnaires to all known importers, traders and users. In all, 27 questionnaires were sent out to importers and traders and their associations, and 12 to users. No replies to those questionnaires were received.

| (124) | It was submitted by the representatives of the exporting producers that the European construction and furniture industries require an abundant and cheap supply of okoumé plywood in order to remain competitive in the European and export markets. Although exporters do not have standing in the context of the examination of Community interest, the substance of the argument was nevertheless examined. Given the absence of cooperation from users and the fact that the known applications of okoumé plywood are spread across a wide variety of sectors, it was not possible to make an estimate on the possible impact of any duty on the costs of users. |
| --- | --- |

(124)

It was submitted by the representatives of the exporting producers that the European construction and furniture industries require an abundant and cheap supply of okoumé plywood in order to remain competitive in the European and export markets. Although exporters do not have standing in the context of the examination of Community interest, the substance of the argument was nevertheless examined. Given the absence of cooperation from users and the fact that the known applications of okoumé plywood are spread across a wide variety of sectors, it was not possible to make an estimate on the possible impact of any duty on the costs of users.

| (125) | Moreover, it should be recalled that measures are not intended to prevent imports into the Community but to ensure that they are not made at injuriously dumped prices. It should also be pointed out that the five sampled Community producers still have unused production capacity. This together with exports from other third countries provides alternative sources of supply for users. |
| --- | --- |

(125)

Moreover, it should be recalled that measures are not intended to prevent imports into the Community but to ensure that they are not made at injuriously dumped prices. It should also be pointed out that the five sampled Community producers still have unused production capacity. This together with exports from other third countries provides alternative sources of supply for users.

| (126) | In addition, none of those user industries has taken a position with respect to the proceeding. Therefore it may be provisionally concluded that their competitive position will not be substantially affected by its outcome. |
| --- | --- |

(126)

In addition, none of those user industries has taken a position with respect to the proceeding. Therefore it may be provisionally concluded that their competitive position will not be substantially affected by its outcome.

3.   CONCLUSION ON COMMUNITY INTEREST

| (127) | On the basis of the above, it is provisionally concluded that no compelling reasons exist for not imposing measures and that the application of measures would be in the interest of the Community. |
| --- | --- |

(127)

On the basis of the above, it is provisionally concluded that no compelling reasons exist for not imposing measures and that the application of measures would be in the interest of the Community.

H.   PROVISIONAL ANTI-DUMPING MEASURES

1.   INJURY ELIMINATION LEVEL

| (128) | In order to prevent further injury being caused by the dumped imports, it is considered appropriate to adopt provisional anti-dumping measures. |
| --- | --- |

(128)

In order to prevent further injury being caused by the dumped imports, it is considered appropriate to adopt provisional anti-dumping measures.

| (129) | For the purpose of determining the level of these duties, account was taken of the dumping margins found and the amount of duty necessary to eliminate the injury sustained by the Community industry. |
| --- | --- |

(129)

For the purpose of determining the level of these duties, account was taken of the dumping margins found and the amount of duty necessary to eliminate the injury sustained by the Community industry.

| (130) | Taking into account the level of profitability obtained by the Community industry as a whole in 1999, a year which according to the industry can be considered as representative mid-point of the business cycle, it was found that a profit margin of 5 % of turnover could be regarded as an appropriate minimum which the Community industry could have expected to obtain in the absence of injurious dumping. |
| --- | --- |

(130)

Taking into account the level of profitability obtained by the Community industry as a whole in 1999, a year which according to the industry can be considered as representative mid-point of the business cycle, it was found that a profit margin of 5 % of turnover could be regarded as an appropriate minimum which the Community industry could have expected to obtain in the absence of injurious dumping.

| (131) | The necessary price increase was then determined on the basis of a comparison of the weighted average import price, as established for the price undercutting calculations, with the non-injurious price of products sold by the Community industry on the Community market. The non-injurious price has been obtained by adjusting the sales price of the sampled Community producers by the actual profit/loss made during the IP and by adding the above-mentioned profit margin. Any difference resulting from this comparison was then expressed as a percentage of the total CIF import value. |
| --- | --- |

(131)

The necessary price increase was then determined on the basis of a comparison of the weighted average import price, as established for the price undercutting calculations, with the non-injurious price of products sold by the Community industry on the Community market. The non-injurious price has been obtained by adjusting the sales price of the sampled Community producers by the actual profit/loss made during the IP and by adding the above-mentioned profit margin. Any difference resulting from this comparison was then expressed as a percentage of the total CIF import value.

| (132) | As the injury elimination level was higher than the dumping margin established, the provisional measures should be based on the latter. |
| --- | --- |

(132)

As the injury elimination level was higher than the dumping margin established, the provisional measures should be based on the latter.

2.   PROVISIONAL MEASURES

| (133) | In the light of the foregoing, it is considered that, in accordance with Article 7(2) of the basic Regulation, provisional anti-dumping duties should be imposed in respect of imports originating in the PRC at the level of the lowest of the dumping and the injury margins, in accordance with the lesser duty rule. In this case, all duty rates should accordingly be set at the level of the dumping margins found. |
| --- | --- |

(133)

In the light of the foregoing, it is considered that, in accordance with Article 7(2) of the basic Regulation, provisional anti-dumping duties should be imposed in respect of imports originating in the PRC at the level of the lowest of the dumping and the injury margins, in accordance with the lesser duty rule. In this case, all duty rates should accordingly be set at the level of the dumping margins found.

| (134) | The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of the present investigation. They therefore reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the country-wide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the country concerned and produced by the companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the duty rate applicable to ‘all other companies’. |
| --- | --- |

(134)

The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of the present investigation. They therefore reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the country-wide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the country concerned and produced by the companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the duty rate applicable to ‘all other companies’.

| (135) | Any claim requesting the application of these individual company anti-dumping duty rates (e.g. following a change in the name of the entity or following the setting up of new production or sales entities) should be addressed to the Commission forthwith with all relevant information, in particular any modification in the company's activities linked to production, domestic and export sales associated with, for example, that name change or that change in the production and sales entities. If appropriate the Commission will, after consultation of the Advisory Committee, amend the Regulation accordingly by updating the list of companies benefiting from individual duty rates. |
| --- | --- |

(135)

Any claim requesting the application of these individual company anti-dumping duty rates (e.g. following a change in the name of the entity or following the setting up of new production or sales entities) should be addressed to the Commission forthwith with all relevant information, in particular any modification in the company's activities linked to production, domestic and export sales associated with, for example, that name change or that change in the production and sales entities. If appropriate the Commission will, after consultation of the Advisory Committee, amend the Regulation accordingly by updating the list of companies benefiting from individual duty rates.

I.   FINAL PROVISION

| (136) | In the interests of sound administration, a period should be fixed within which the interested parties, which made themselves known within the time limit specified in the notice of initiation, may make their views known in writing and request a hearing. Furthermore, it should be stated that the findings concerning the imposition of duties made for the purposes of this Regulation are provisional and may have to be reconsidered for the purposes of any definitive measures. |
| --- | --- |

(136)

In the interests of sound administration, a period should be fixed within which the interested parties, which made themselves known within the time limit specified in the notice of initiation, may make their views known in writing and request a hearing. Furthermore, it should be stated that the findings concerning the imposition of duties made for the purposes of this Regulation are provisional and may have to be reconsidered for the purposes of any definitive measures.

HAS ADOPTED THIS REGULATION:

Article 1

1.   A provisional anti-dumping duty is hereby imposed on imports of okoumé plywood, defined as plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, with at least one outer ply of okoumé, falling within CN code ex 4412 13 10 (TARIC code 4412131010) and originating in the People’s Republic of China.

2.   The rate of duty applicable to the net free-at-Community-frontier price, before duty, for products produced by the following manufacturers shall be as follows:

| Manufacturer | Rate of duty % | Taric additional code |
| --- | --- | --- |
| Nantong Zongyi Plywood Co., Ltd. Xingdong Town, Tongzhou City, Jiangsu Province, People’s Republic of China | 12,0 | A526 |
| Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. Linhai Economic Development Zone, Zhejiang, People’s Republic of China | 23,9 | A527 |
| Zhonglin Enterprise (Dangshan) Co., Ltd. Xue Lou Miao Pu, Dangshan County, Anhui Province 235323, People’s Republic of China | 8,5 | A528 |
| Jiaxing Jinlin Lumber Co., Ltd. North of Ganyao Town, Jiashan, Zhejiang Province, People’s Republic of China | 18,5 | A529 |
| All other companies | 48,5 | A999 |

Manufacturer

Rate of duty %

Taric additional code

Nantong Zongyi Plywood Co., Ltd. Xingdong Town, Tongzhou City, Jiangsu Province, People’s Republic of China

12,0

A526

Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. Linhai Economic Development Zone, Zhejiang, People’s Republic of China

23,9

A527

Zhonglin Enterprise (Dangshan) Co., Ltd. Xue Lou Miao Pu, Dangshan County, Anhui Province 235323, People’s Republic of China

8,5

A528

Jiaxing Jinlin Lumber Co., Ltd. North of Ganyao Town, Jiashan, Zhejiang Province, People’s Republic of China

18,5

A529

All other companies

48,5

A999

3.   Unless otherwise specified, the provisions in force concerning customs duties shall apply.

4.   The release for free circulation in the Community of the product referred to in paragraph 1 shall be subject to the provisions of a security, equivalent to the amount of the provisional duty.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96, the interested parties may make their views known in writing and apply to be heard orally by the Commission within one month of the date of entry into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the application of this Regulation within one month of its entry into force.

Article 3

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Article 1 of this Regulation shall apply for a period of six months.

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

Done at Brussels, 17 May 2004.

For the Commission

Pascal LAMY

Member of the Commission

---

(1)  
  OJ L 56, 6.3.1996, p. 1.

1

(2)  
  OJ L 77, 13.3.2004, p. 12.

2

(3)  
  OJ C 195, 19.8.2003, p. 3.

3

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Acts adopted under Title V of the Treaty on European Union

| 18.5.2004 | EN | Official Journal of the European Union | L 181/24 |
| --- | --- | --- | --- |

18.5.2004

EN

Official Journal of the European Union

L 181/24

---

COUNCIL COMMON POSITION 2004/493/CFSP

of 17 May 2004

amending Common Position 2002/400/CFSP concerning the temporary reception by Member States of the European Union of certain Palestinians

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, and in particular Article 15 thereof,

Whereas:

| (1) | On 21 May 2002, the Council adopted Common Position 2002/400/CFSP concerning the temporary reception by Member States of the European Union of certain Palestinians (1) and granting them national permits valid for a period of up to 12 months. |
| --- | --- |

(1)

On 21 May 2002, the Council adopted Common Position 2002/400/CFSP concerning the temporary reception by Member States of the European Union of certain Palestinians (1) and granting them national permits valid for a period of up to 12 months.

| (2) | On 19 May 2003, the Council adopted Common Position 2003/366/CFSP amending Common Position 2002/400/CFSP (2) and modifying the validity of those permits for a period of up to 24 months. |
| --- | --- |

(2)

On 19 May 2003, the Council adopted Common Position 2003/366/CFSP amending Common Position 2002/400/CFSP (2) and modifying the validity of those permits for a period of up to 24 months.

| (3) | The validity of those permits should be extended for a further period of 6 months, |
| --- | --- |

(3)

The validity of those permits should be extended for a further period of 6 months,

HAS ADOPTED THIS COMMON POSITION:

Article 1

Common Position 2002/400/CFSP is hereby amended as follows:

| 1) | the first subparagraph of Article 3 shall read as follows:
  ‘Each of the Member States referred to in Article 2 shall provide the Palestinians it receives with a national permit to enter its territory and stay for a period of up to 30 months.’; |
| --- | --- |

1)

the first subparagraph of Article 3 shall read as follows:

‘Each of the Member States referred to in Article 2 shall provide the Palestinians it receives with a national permit to enter its territory and stay for a period of up to 30 months.’

| 2) | Article 8 shall read as follows:

  ‘Article 8
  The Council shall keep the application of this Common Position under review and shall evaluate such application within 29 months from its adoption or earlier at the request of any of its members.’
  . |
| --- | --- |

2)

Article 8 shall read as follows:

‘Article 8

The Council shall keep the application of this Common Position under review and shall evaluate such application within 29 months from its adoption or earlier at the request of any of its members.’

Article 2

This Common Position shall take effect on the day of its adoption.

Article 3

This Common Position shall be published in the Official Journal of the European Union.

Done at Brussels, 17 May 2004.

For the Council

The President

B. COWEN

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(1)  
  OJ L 138, 28.5.2002, p. 33.

1

(2)  
  OJ L 124, 20.5.2003, p. 51.

2

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Corrigenda

| 18.5.2004 | EN | Official Journal of the European Union | L 181/25 |
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18.5.2004

EN

Official Journal of the European Union

L 181/25

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Corrigendum to Commission Decision 2004/387/EC of 28 April 2004 — Decision 2004/387/EC of the European Parliament and of the Council of 21 April 2004 on the interoperable delivery of pan-European eGovernment services to public administrations, businesses and citizens (IDABC)

(
  Official Journal of the European Union L 144 of 30 April 2004
  )

The text of Decision 2004/387/EC is replaced by the following text:

DECISION 2004/387/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 21 April 2004

on interoperable delivery of pan-European eGovernment services to public administrations, businesses and citizens (IDABC)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the first paragraph of Article 156 thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Economic and Social Committee (1),

Having regard to the Opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),

Whereas:

| (1) | In accordance with Article 154 of the Treaty, to help achieve the objectives referred to in Articles 14 and 158 thereof and to enable citizens of the Union, economic operators and regional and local communities to derive full benefit from the setting-up of an area without internal frontiers, the Community contributes to the establishment and development of trans-European networks. |
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(1)

In accordance with Article 154 of the Treaty, to help achieve the objectives referred to in Articles 14 and 158 thereof and to enable citizens of the Union, economic operators and regional and local communities to derive full benefit from the setting-up of an area without internal frontiers, the Community contributes to the establishment and development of trans-European networks.

| (2) | Facilitating the mobility of businesses and citizens across European borders contributes directly to removing the obstacles to the free movement of goods, persons, services and capital as well as to the free establishment of nationals of a Member State in the territory of another Member State. |
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(2)

Facilitating the mobility of businesses and citizens across European borders contributes directly to removing the obstacles to the free movement of goods, persons, services and capital as well as to the free establishment of nationals of a Member State in the territory of another Member State.

| (3) | In accordance with Article 157 of the Treaty, the Community and the Member States are to ensure that the conditions necessary for the competitiveness of the Community's industry exist. |
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(3)

In accordance with Article 157 of the Treaty, the Community and the Member States are to ensure that the conditions necessary for the competitiveness of the Community's industry exist.

| (4) | By Decisions No 1719/1999/EC (4) and No 1720/1999/EC (5) the European Parliament and the Council adopted a series of actions, horizontal measures and guidelines including the identification of projects of common interest, with regard to trans-European networks for the electronic interchange of data between administrations (IDA). As those Decisions will expire on 31 December 2004, it is necessary to provide for a framework for the follow-up of the IDA programme as set up by those Decisions. |
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(4)

By Decisions No 1719/1999/EC (4) and No 1720/1999/EC (5) the European Parliament and the Council adopted a series of actions, horizontal measures and guidelines including the identification of projects of common interest, with regard to trans-European networks for the electronic interchange of data between administrations (IDA). As those Decisions will expire on 31 December 2004, it is necessary to provide for a framework for the follow-up of the IDA programme as set up by those Decisions.

| (5) | The IDABC programme will build on the successes of the preceding IDA programmes, which have improved the effectiveness of cross-border cooperation between public administrations. |
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(5)

The IDABC programme will build on the successes of the preceding IDA programmes, which have improved the effectiveness of cross-border cooperation between public administrations.

| (6) | In establishing and implementing the IDABC programme, which is the follow-up to previous IDA programmes, due account should be taken of the achievements of those programmes. |
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(6)

In establishing and implementing the IDABC programme, which is the follow-up to previous IDA programmes, due account should be taken of the achievements of those programmes.

| (7) | Work completed under the IDABC programme is likely to form the basis for further work. This, combined with the fast pace of technological change, will require the programme to be adaptable to future developments. |
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(7)

Work completed under the IDABC programme is likely to form the basis for further work. This, combined with the fast pace of technological change, will require the programme to be adaptable to future developments.

| (8) | The European Council, meeting in Lisbon in March 2000, adopted conclusions aimed at preparing the transition of the European Union by 2010 to the world's most competitive, dynamic, and knowledge-based economy, capable of sustainable economic growth with more and better jobs and greater social cohesion. |
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(8)

The European Council, meeting in Lisbon in March 2000, adopted conclusions aimed at preparing the transition of the European Union by 2010 to the world's most competitive, dynamic, and knowledge-based economy, capable of sustainable economic growth with more and better jobs and greater social cohesion.

| (9) | The European Council, meeting in Brussels in March 2003, drew attention to the importance of connecting Europe and so strengthening the internal market and underlined that electronic communications are a powerful engine for growth, competitiveness and jobs in the European Union and that action should be taken to consolidate this strength and to contribute to the achievement of the Lisbon goals. To this end, the development and establishment of pan-European eGovernment Services and the underlying telematic networks should be supported and promoted. |
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(9)

The European Council, meeting in Brussels in March 2003, drew attention to the importance of connecting Europe and so strengthening the internal market and underlined that electronic communications are a powerful engine for growth, competitiveness and jobs in the European Union and that action should be taken to consolidate this strength and to contribute to the achievement of the Lisbon goals. To this end, the development and establishment of pan-European eGovernment Services and the underlying telematic networks should be supported and promoted.

| (10) | The elimination of obstacles to electronic communications between public administrations at all levels and with businesses as well as with citizens contributes to improving the European business environment, lowering the administrative burden and reducing red tape. It may also encourage businesses and citizens of the European Union to reap the benefits of the information society and to interact electronically with public administrations. |
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(10)

The elimination of obstacles to electronic communications between public administrations at all levels and with businesses as well as with citizens contributes to improving the European business environment, lowering the administrative burden and reducing red tape. It may also encourage businesses and citizens of the European Union to reap the benefits of the information society and to interact electronically with public administrations.

| (11) | Enhanced delivery of eGovernment services enables businesses and citizens to interact with public administrations without special Information Technology (IT) skills or prior knowledge of the internal functional organisation of a public administration. |
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(11)

Enhanced delivery of eGovernment services enables businesses and citizens to interact with public administrations without special Information Technology (IT) skills or prior knowledge of the internal functional organisation of a public administration.

| (12) | The deployment of trans-European telematic networks to interchange information between public administrations, Community institutions and other entities, such as European agencies, services and organisations devoted to furthering the Community's interests, should not be considered as the end, but as the means to achieve interoperable information and interactive eGovernment services at the pan-European level, building on and extending to citizens and businesses the benefits resulting from the cooperation between public administrations across Europe. |
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(12)

The deployment of trans-European telematic networks to interchange information between public administrations, Community institutions and other entities, such as European agencies, services and organisations devoted to furthering the Community's interests, should not be considered as the end, but as the means to achieve interoperable information and interactive eGovernment services at the pan-European level, building on and extending to citizens and businesses the benefits resulting from the cooperation between public administrations across Europe.

| (13) | The Commission undertakes and will update, as appropriate, comprehensive consultations involving all stakeholders in order to carry out a study, involving all relevant sectors, focusing on the needs of and benefits for citizens and businesses, with a view to preparing a list of necessary and beneficial pan-European eGovernment services that could be implemented within the whole duration of this Decision. |
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(13)

The Commission undertakes and will update, as appropriate, comprehensive consultations involving all stakeholders in order to carry out a study, involving all relevant sectors, focusing on the needs of and benefits for citizens and businesses, with a view to preparing a list of necessary and beneficial pan-European eGovernment services that could be implemented within the whole duration of this Decision.

| (14) | Pan-European eGovernment services permit public administrations, businesses and citizens to interact better with public administrations across borders. The delivery of these services requires the availability of efficient, effective and interoperable information and communication systems between public administrations as well as interoperable administrative front and back office processes in order to exchange in a secure manner, understand and process public sector information across Europe. |
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(14)

Pan-European eGovernment services permit public administrations, businesses and citizens to interact better with public administrations across borders. The delivery of these services requires the availability of efficient, effective and interoperable information and communication systems between public administrations as well as interoperable administrative front and back office processes in order to exchange in a secure manner, understand and process public sector information across Europe.

| (15) | For the delivery of pan-European eGovernment Services it is necessary to take into account the provisions of, in particular, Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (6) and Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (7). |
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(15)

For the delivery of pan-European eGovernment Services it is necessary to take into account the provisions of, in particular, Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (6) and Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (7).

| (16) | It is important that, in the context of the national efforts in support of eGovernment, due consideration be given to the priorities of the European Union. |
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(16)

It is important that, in the context of the national efforts in support of eGovernment, due consideration be given to the priorities of the European Union.

| (17) | It is essential to maximise the use of standards or publicly available specifications or open specifications for information exchange and service integration to ensure seamless interoperability and thereby increasing the benefits of pan-European eGovernment services and the underlying trans-European telematic networks. |
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(17)

It is essential to maximise the use of standards or publicly available specifications or open specifications for information exchange and service integration to ensure seamless interoperability and thereby increasing the benefits of pan-European eGovernment services and the underlying trans-European telematic networks.

| (18) | The establishment of pan-European eGovernment services and the underlying telematic networks of which the Community is a user or a beneficiary is incumbent on both the Community and the Member States. |
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(18)

The establishment of pan-European eGovernment services and the underlying telematic networks of which the Community is a user or a beneficiary is incumbent on both the Community and the Member States.

| (19) | It is essential to ensure close cooperation between the Member States and the Community and, where relevant, the Community institutions and stakeholders. |
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(19)

It is essential to ensure close cooperation between the Member States and the Community and, where relevant, the Community institutions and stakeholders.

| (20) | Actions at Community level should stimulate the successful development of eGovernment services at the pan-European level and the associated measures required at all appropriate levels, taking due account of the linguistic diversity of the Community. |
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(20)

Actions at Community level should stimulate the successful development of eGovernment services at the pan-European level and the associated measures required at all appropriate levels, taking due account of the linguistic diversity of the Community.

| (21) | While the participation of all Member States in actions in support of pan-European eGovernment services provided by public administrations to businesses and citizens should be encouraged, actions comprising several Member States can be initiated and Member States not participating should be encouraged to join at a later stage. |
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(21)

While the participation of all Member States in actions in support of pan-European eGovernment services provided by public administrations to businesses and citizens should be encouraged, actions comprising several Member States can be initiated and Member States not participating should be encouraged to join at a later stage.

| (22) | Cross-fertilisation with relevant national, regional and local initiatives and delivery of eGovernment services within the Member States should be ensured. |
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(22)

Cross-fertilisation with relevant national, regional and local initiatives and delivery of eGovernment services within the Member States should be ensured.

| (23) | The Action Plan for eEurope 2005, endorsed by the European Council meeting in Seville in June 2002, in particular the chapter on eGovernment, underlines the importance of the IDA programme in fostering the establishment of pan-European eGovernment services in support of cross-border activities thus complementing and providing a framework for initiatives regarding eGovernment at all appropriate levels. |
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(23)

The Action Plan for eEurope 2005, endorsed by the European Council meeting in Seville in June 2002, in particular the chapter on eGovernment, underlines the importance of the IDA programme in fostering the establishment of pan-European eGovernment services in support of cross-border activities thus complementing and providing a framework for initiatives regarding eGovernment at all appropriate levels.

| (24) | In order to make efficient use of the Community's financial resources, it is necessary to share the cost of pan-European eGovernment services and the underlying telematic networks between the Member States and the Community on an equitable basis. |
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(24)

In order to make efficient use of the Community's financial resources, it is necessary to share the cost of pan-European eGovernment services and the underlying telematic networks between the Member States and the Community on an equitable basis.

| (25) | Productivity, responsiveness and flexibility in the establishment and operation of pan-European eGovernment services and the underlying telematic networks can best be achieved by embracing a market-oriented approach and thus selecting suppliers on a competitive basis in a multi-vendor environment, while ensuring, whenever appropriate, the operational and financial sustainability of measures. |
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(25)

Productivity, responsiveness and flexibility in the establishment and operation of pan-European eGovernment services and the underlying telematic networks can best be achieved by embracing a market-oriented approach and thus selecting suppliers on a competitive basis in a multi-vendor environment, while ensuring, whenever appropriate, the operational and financial sustainability of measures.

| (26) | Pan-European eGovernment services should be developed in the context of specific projects of common interest and specific horizontal measures. Other horizontal measures should be put in place to support the interoperable delivery of these services by establishing or enhancing infrastructure services. |
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(26)

Pan-European eGovernment services should be developed in the context of specific projects of common interest and specific horizontal measures. Other horizontal measures should be put in place to support the interoperable delivery of these services by establishing or enhancing infrastructure services.

| (27) | The IDABC programme should consequently also be open to participation by the countries of the European Economic Area and the candidate countries, and cooperation with other third countries should be encouraged. International entities may take part in the implementation of projects of common interest and horizontal measures at their own costs. |
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(27)

The IDABC programme should consequently also be open to participation by the countries of the European Economic Area and the candidate countries, and cooperation with other third countries should be encouraged. International entities may take part in the implementation of projects of common interest and horizontal measures at their own costs.

| (28) | In order to ensure the sound management of the financial resources of the European Union and to avoid needless proliferation of equipment, repetition of investigations and diversity of approach, it should be possible to use services developed under the IDA programme or the IDABC programme in the framework of the common foreign and security policy and police and judicial cooperation in criminal matters, in accordance with Titles V and VI of the Treaty on European Union. |
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(28)

In order to ensure the sound management of the financial resources of the European Union and to avoid needless proliferation of equipment, repetition of investigations and diversity of approach, it should be possible to use services developed under the IDA programme or the IDABC programme in the framework of the common foreign and security policy and police and judicial cooperation in criminal matters, in accordance with Titles V and VI of the Treaty on European Union.

| (29) | Since the objective of establishing pan-European eGovernment services cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale and effects of the action, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Decision does not go beyond what is necessary in order to achieve that objective. |
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(29)

Since the objective of establishing pan-European eGovernment services cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale and effects of the action, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Decision does not go beyond what is necessary in order to achieve that objective.

| (30) | The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (8). |
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(30)

The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (8).

| (31) | This Decision lays down, for the entire duration of the programme, a financial framework constituting the prime reference, within the meaning of point 33 of the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and Commission on budgetary discipline and improvement of the budgetary procedure (9), for the budgetary authority during the annual budgetary procedure, |
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(31)

This Decision lays down, for the entire duration of the programme, a financial framework constituting the prime reference, within the meaning of point 33 of the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and Commission on budgetary discipline and improvement of the budgetary procedure (9), for the budgetary authority during the annual budgetary procedure,

HAVE DECIDED AS FOLLOWS:

Article 1

Scope

This Decision establishes, for the period 2005-2009, a Programme for Interoperable Delivery of pan-European eGovernment Services to European Public Administrations, Community institutions and other entities and to European Businesses and Citizens (hereinafter the ‘IDABC programme’).

Article 2

Objective

1.   The objective of the IDABC programme is to identify, support and promote the development and establishment of pan-European eGovernment services and the underlying interoperable telematic networks supporting the Member States and the Community in the implementation, within their respective areas of competence, of Community policies and activities, achieving substantial benefits for public administrations, businesses and citizens.

2.   The programme aims also to:

| (a) | enable the efficient, effective and secure interchange of information between public administrations at all appropriate levels, as well as between such administrations and the Community institutions or other entities as appropriate; |
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(a)

enable the efficient, effective and secure interchange of information between public administrations at all appropriate levels, as well as between such administrations and the Community institutions or other entities as appropriate;

| (b) | extend the benefits of the interchange of information as specified under (a) in order to facilitate the delivery of services to businesses and citizens taking into account their needs; |
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(b)

extend the benefits of the interchange of information as specified under (a) in order to facilitate the delivery of services to businesses and citizens taking into account their needs;

| (c) | support the Community decision-making process and facilitate communication between the Community institutions by developing the related strategic framework at the pan-European level; |
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(c)

support the Community decision-making process and facilitate communication between the Community institutions by developing the related strategic framework at the pan-European level;

| (d) | achieve interoperability, both within and across different policy areas and, where appropriate, with businesses and citizens, notably on the basis of a European Interoperability Framework; |
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(d)

achieve interoperability, both within and across different policy areas and, where appropriate, with businesses and citizens, notably on the basis of a European Interoperability Framework;

| (e) | contribute to the efforts of Member State public administrations and the Community in terms of streamlined operations, prompter implementation, security, efficiency, transparency, service culture and responsiveness; |
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(e)

contribute to the efforts of Member State public administrations and the Community in terms of streamlined operations, prompter implementation, security, efficiency, transparency, service culture and responsiveness;

| (f) | promote the spread of good practice and encourage the development of innovative telematic solutions in public administrations. |
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(f)

promote the spread of good practice and encourage the development of innovative telematic solutions in public administrations.

Article 3

Definitions

For the purposes of this Decision, the following definitions shall apply:

| (a) | ‘Telematic network’ means a comprehensive data-communication system, comprising the physical infrastructure and connections as well as the related services and application layers, thus enabling the interchange of information electronically between and within public administrations as well as between public administrations and businesses and citizens; |
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(a)

‘Telematic network’ means a comprehensive data-communication system, comprising the physical infrastructure and connections as well as the related services and application layers, thus enabling the interchange of information electronically between and within public administrations as well as between public administrations and businesses and citizens;

| (b) | ‘Pan-European eGovernment services’ means cross-border public sector information and interactive services, either sectoral or horizontal, i.e. of cross-sectoral nature, provided by European public administrations to European public administrations, businesses, including their associations, and citizens, including their associations, by means of interoperable trans-European telematic networks; |
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(b)

‘Pan-European eGovernment services’ means cross-border public sector information and interactive services, either sectoral or horizontal, i.e. of cross-sectoral nature, provided by European public administrations to European public administrations, businesses, including their associations, and citizens, including their associations, by means of interoperable trans-European telematic networks;

| (c) | ‘Project of common interest’ means a project in the policy areas identified in Annex I, which is undertaken or continued under this Decision, and which concerns the establishment or enhancement of pan-European eGovernment services; |
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(c)

‘Project of common interest’ means a project in the policy areas identified in Annex I, which is undertaken or continued under this Decision, and which concerns the establishment or enhancement of pan-European eGovernment services;

| (d) | ‘Infrastructure services’ means services provided to meet generic requirements, comprising technology and software solutions, including a European interoperability framework, security, middleware and network services. Infrastructure services underpin the delivery of pan-European eGovernment services; |
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(d)

‘Infrastructure services’ means services provided to meet generic requirements, comprising technology and software solutions, including a European interoperability framework, security, middleware and network services. Infrastructure services underpin the delivery of pan-European eGovernment services;

| (e) | ‘Horizontal measure’ means an action as identified in Annex II, which is undertaken or continued under this Decision, and which concerns the establishment or enhancement of horizontal pan-European eGovernment services, infrastructure services or strategic and support activities; |
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(e)

‘Horizontal measure’ means an action as identified in Annex II, which is undertaken or continued under this Decision, and which concerns the establishment or enhancement of horizontal pan-European eGovernment services, infrastructure services or strategic and support activities;

| (f) | ‘Interoperability’ means the ability of information and communication technology (ICT) systems and of the business processes they support to exchange data and to enable information and knowledge to be shared. |
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(f)

‘Interoperability’ means the ability of information and communication technology (ICT) systems and of the business processes they support to exchange data and to enable information and knowledge to be shared.

Article 4

Projects of common interest

In order to achieve the objectives laid down in Article 2, the Community shall, in cooperation with the Member States, implement projects of common interest specified in the rolling work programme referred to in Article 8(1), in accordance with the principles laid down in Articles 6 and 7.

Projects of common interest shall, whenever possible, make use of the horizontal pan-European eGovernment and infrastructure services and contribute to the further development of these services.

Article 5

Horizontal measures

1.   In order to achieve the objectives laid down in Article 2, the Community shall, in cooperation with the Member States, in support of projects of common interest, undertake horizontal measures as identified in Annex II and specified in the rolling work programme referred to in Article 8(1), in accordance with the principles laid down in Articles 6 and 7.

2.   Horizontal measures shall provide, maintain and promote infrastructure services for public administrations in the Community on the basis of a maintenance and access policy defined in the framework of the IDABC programme. They shall also provide the management of horizontal pan-European eGovernment services as well as establish strategic and support activities to promote pan-European eGovernment services, perform strategic analysis of related developments in the Community and Member States, and ensure the management of the programme and the spread of good practice.

3.   In order to be able to identify the horizontal measures to be undertaken, the Community shall establish a description of horizontal pan-European eGovernment and infrastructure services. The description shall include aspects such as the necessary management, organisation, related responsibilities and cost-sharing as well as a strategy to be used in the development and implementation of the horizontal pan-European eGovernment and infrastructure services. The strategy shall be based on an assessment of project requirements. The description shall be reviewed on a yearly basis.

Article 6

Implementation principles

1.   In implementing projects of common interest and horizontal measures, the principles set out in paragraphs 2 to 10 shall apply.

2.   This Decision is the legal basis for the implementation of horizontal measures.

3.   The implementation of a project shall require a sectoral legal basis. For the purposes of this Decision, a project shall be considered to fulfil this requirement when it supports the delivery of pan-European eGovernment services to public administrations, to businesses or to citizens in the framework of the implementation of a sectoral legal basis or any other relevant legal basis.

This paragraph shall not apply to projects of common interest that support the delivery of eGovernment services between Community institutions and European Agencies.

4.   Participation of the largest possible number of Member States in a project in support of pan-European eGovernment services provided by public administrations to businesses, including their associations, or by public administrations to citizens, including their associations, shall be encouraged.

5.   Projects of common interest and horizontal measures shall encompass all actions necessary for the establishment or enhancement of pan-European eGovernment services.

6.   Projects of common interest and horizontal measures shall include, whenever appropriate, a preparatory phase. They shall comprise a feasibility phase, a development and validation phase, and an implementation phase to be implemented in accordance with Article 7.

This paragraph shall not apply to strategic and support activities as defined in Part C of Annex II.

7.   Results achieved by other relevant Community and Member States activities, in particular the Community research and technological development programmes and other Community programmes and policies, such as eTEN (10), eContent (11) eInclusion, eLearning (12) and MODINIS (13) shall be taken into account, whenever appropriate, in the definition of projects of common interest and horizontal measures in order to avoid duplication and to speed up the development of eGovernment services. Projects in the planning or the development phase shall also be taken into account.

8.   Projects of common interest or horizontal measures shall be technically specified with reference to European standards or publicly available specifications or open specifications for information exchange and service integration and shall comply with the infrastructure services, as appropriate, in order to ensure interoperability and accessibility between national and Community systems within and across administrative sectors and with businesses and citizens.

9.   Projects of common interest and horizontal measures shall, where appropriate, take due account of the European interoperability framework provided, maintained and promoted by the IDABC programme.

10.   A post-implementation review of each project of common interest or horizontal measure shall be carried out within one year following the end of the implementation phase.

A review shall include a cost-benefit analysis.

In the case of projects of common interest the review shall be carried out in coordination with the Member States in conformity with the rules governing the sectoral policy and presented to the relevant sectoral committee.

Conclusions and recommendations resulting from the review of projects of common interest shall be presented to the committee referred to in Article 11(1) for information.

In the case of horizontal measures the review shall be carried out within the framework of the committee referred to in Article 11(1).

Article 7

Additional principles

1.   In addition to the principles set out in Article 6, the principles set out in paragraphs 2 to 8 shall apply.

2.   The preparatory phase shall lead to the establishment of a preparatory report comprising the objectives, scope and rationale of the project of common interest or horizontal measure and in particular the anticipated costs and benefits, as well as the achievement of the necessary commitment and understanding among the participants through appropriate consultation, including an indication of the committee competent to follow the implementation of the project or measure.

3.   The feasibility phase shall lead to the establishment of a global implementation plan, which shall cover the development and implementation phases and comprise the information contained in the preparatory report as well as:

| (a) | a description of planned organisational development and, whenever appropriate, the re-engineering of working procedures; |
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(a)

a description of planned organisational development and, whenever appropriate, the re-engineering of working procedures;

| (b) | objectives, functionalities, participants and technical approach; |
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(b)

objectives, functionalities, participants and technical approach;

| (c) | measures to facilitate multilingual communication; |
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(c)

measures to facilitate multilingual communication;

| (d) | measures to ensure security and protection of data; |
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(d)

measures to ensure security and protection of data;

| (e) | the assignment of roles to the Community and to the Member States; |
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(e)

the assignment of roles to the Community and to the Member States;

| (f) | a breakdown of the expected costs and a description of the expected benefits, including assessment criteria for measuring those benefits beyond the implementation phase and a detailed analysis of return on investment as well as milestones to be reached; |
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(f)

a breakdown of the expected costs and a description of the expected benefits, including assessment criteria for measuring those benefits beyond the implementation phase and a detailed analysis of return on investment as well as milestones to be reached;

| (g) | a schema which defines an equitable sharing between the Community and the Member States and, whenever appropriate, other entities, of the operational and maintenance costs of the pan-European eGovernment and infrastructure services on conclusion of the implementation phase. |
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(g)

a schema which defines an equitable sharing between the Community and the Member States and, whenever appropriate, other entities, of the operational and maintenance costs of the pan-European eGovernment and infrastructure services on conclusion of the implementation phase.

4.   During the development and validation phase, the solution proposed may, if relevant, be constructed, tested, evaluated and monitored on a small scale, and the results shall be used to adjust the global implementation plan accordingly.

5.   During the implementation phase, the fully functional services concerned shall be established in accordance with the global implementation plan.

6.   The preparatory report and the global implementation plan shall be established by making use of methodologies prepared as a support activity in the framework of the IDABC programme.

7.   The initiation and implementation of a project of common interest, the definition of its phases and the establishment of preparatory reports and global implementation plans shall be carried out and controlled by the Commission acting in accordance with the relevant sectoral committee procedure.

Where no sectoral committee procedure applies, the Community and the Member States shall set up groups of experts to examine all relevant issues.

The conclusions resulting from sectoral committees and, where applicable, from groups of experts shall be reported by the Commission to the committee referred to in Article 11(1).

8.   The initiation and implementation of a horizontal measure, the definition of its phases and the establishment of preparatory reports and global implementation plans shall be carried out and controlled by the Commission acting in accordance with the procedure referred to in Article 11(2).

Article 8

Implementation procedure

1.   The Commission shall establish a rolling work programme for the whole duration of this Decision for the implementation of projects of common interest and horizontal measures. The Commission shall approve the work programme and, at least once a year, any modification thereof, taking into account, as the case may be, the budget breakdown per project of common interest and horizontal measure.

The procedure referred to in Article 11(2) shall apply in respect of the approval by the Commission of the rolling work programme and any modifications thereof.

2.   For each project of common interest and for each horizontal measure, the work programme referred to in the first paragraph shall, where appropriate, include:

| (a) | a description of the objectives, scope, rationale, potential beneficiaries, functionalities and technical approach; |
| --- | --- |

(a)

a description of the objectives, scope, rationale, potential beneficiaries, functionalities and technical approach;

| (b) | a breakdown of past expenditure and milestones reached, as well as the costs and benefits anticipated and the milestones to be reached; |
| --- | --- |

(b)

a breakdown of past expenditure and milestones reached, as well as the costs and benefits anticipated and the milestones to be reached;

| (c) | a specification of the horizontal pan-European eGovernment and infrastructure services to be used. |
| --- | --- |

(c)

a specification of the horizontal pan-European eGovernment and infrastructure services to be used.

Article 9

Budgetary provisions

1.   Without prejudice to Article 8, the procedure referred to in Article 11(2) shall apply in respect of the approval by the Commission of the budget per project of common interest or horizontal measure, as necessary, to cover, subject to the applicable budget rules, the rolling work programme and any modifications thereof, in accordance with Article 8(1).

2.   Funds shall be released on the basis of the reaching of specific milestones in accordance with the procedure applicable to the relevant sectoral committee for projects of common interest and to the committee referred to in Article 11(1) for horizontal measures. For the initiation of the preparatory phase the milestone shall be the inclusion of the project of common interest or horizontal measure to be undertaken in the rolling work programme. For the initiation of the feasibility phase the milestone shall be the preparatory report. For the initiation of the subsequent development and validation phase the milestone shall be the global implementation plan. Milestones to be reached during the development and validation phase as well as the implementation phase shall be included in the rolling work programme in accordance with Article 8.

3.   The procedure referred to in Article 11(2) shall also apply in respect of proposals for any budgetary increase of more than EUR 100 000 per project of common interest or horizontal measure within a year.

4.   The programme shall be implemented on the basis of the rules of public procurement. The technical specifications of the calls for tender shall, for contract values in excess of EUR 500 000, be defined in coordination with the Member States in the framework of the relevant sectoral committee or the committee referred to in Article 11(1).

Article 10

Community financial contribution

1.   In the implementation of projects of common interest and horizontal measures, the Community shall bear costs in proportion to its interest.

2.   The financial contribution of the Community for each project of common interest or horizontal measure shall be determined in accordance with paragraphs 3 to 7.

3.   For a project of common interest or a horizontal measure to receive a financial contribution from the Community, concrete plans for financing the maintenance and operational costs of the post-implementation phase shall be required, with a clear assignment of roles to the Community and to the Member States or to other entities.

4.   In the preparatory and feasibility phases, the Community contribution may cover the full cost of the necessary studies.

5.   In the development and validation phase and in the implementation phase, the Community shall bear the cost of those tasks which are assigned to it in the global implementation plan of that project of common interest or horizontal measure.

6.   Community funding of a project of common interest or a horizontal measure concerning the delivery and maintenance of infrastructure services shall, in principle, cease after a maximum period of four years from the start of the preparatory phase.

7.   The financial resources provided for under this Decision shall not be assigned to projects of common interest and horizontal measures or phases of projects of common interest and horizontal measures which benefit from other sources of Community funding.

8.   By 31 December 2006, mechanisms to ensure the financial and operational sustainability of infrastructure services, whenever appropriate, shall be defined and agreed in accordance with the procedure referred to in Article 11(2).

Article 11

Committee

1.   The Commission shall be assisted by a committee called the Pan-European eGovernment Services Committee (PEGSCO).

2.   Where reference is made to this paragraph, Articles 4 and 7 of Council Decision 1999/468/EC shall apply, having regard to Article 8 thereof.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months.

3.   The PEGSCO shall adopt its rules of procedure.

Article 12

Annual report

The Commission shall report annually to the PEGSCO on the implementation of this Decision.

Article 13

Evaluation

1.   The Commission shall, in coordination with the Member States, carry out a final evaluation of the implementation of this Decision at the end of the programme.

2.   Moreover, the Commission shall, in coordination with the Member States, carry out an evaluation of the implementation of this Decision by mid-2006 at the latest. This evaluation shall also assess, inter alia, the effectiveness and efficiency of the IDABC activities as well as include a qualitative and quantitative evaluation of performance against the work programme. In the context of this evaluation the Commission shall report on the consistency of the amount for 2007-2009 with the financial perspective. If applicable, the Commission shall take the necessary steps within the budgetary procedures for 2007-2009 to ensure the consistency of the annual appropriations with the financial perspective.

3.   The evaluations shall establish the progress and current status of the projects of common interest and horizontal measures identified in Annexes I and II respectively and in particular how the intended pan-European eGovernment services are developed, implemented and used.

The evaluations shall also examine, in the light of the expenditure incurred by the Community, the benefits yielded by the pan-European eGovernment and infrastructure services to the Community for the advancement of common policies and institutional cooperation as far as public administrations, businesses and citizens are concerned and identify areas for potential improvement and verify synergies with other Community activities in the area of pan-European eGovernment and infrastructure services.

4.   The Commission shall forward the results of its quantitative and qualitative evaluations to the European Parliament and the Council together with any appropriate proposals for the amendment of this Decision. The results shall be forwarded before presentation of the draft general budget of the European Union for the years 2007 and 2010 respectively.

Article 14

International cooperation

1.   The IDABC programme may be opened, within the framework of their respective agreements with the Community, to participation by the countries of the European Economic Area and the candidate countries.

2.   Cooperation with other third countries, in implementing projects of common interest and horizontal measures, shall be encouraged, notably with public administrations in Mediterranean countries, the Balkans and eastern European countries. Particular attention shall also be given to international cooperation in support of development and economic cooperation. Related costs shall not be covered by the IDABC programme.

3.   International organisations or other international entities may take part in the implementation of projects of common interest and horizontal measures at their own cost.

Article 15

Other networks

1.   With regard to the establishment or enhancement of other networks which are not projects of common interest or horizontal measures (hereinafter referred to as ‘other networks’), Member States and the Community shall, in accordance with the relevant provisions of the Community legislation governing the implementation of those networks, ensure compliance with paragraphs 2 to 5.

2.   Subject to paragraph 3, horizontal pan-European eGovernment and infrastructure services provided by the Community within the framework of this Decision may be used by other networks.

3.   Each of the other networks shall be technically specified with reference to European standards or publicly available specifications or open specifications for information exchange and service integration, as appropriate, in order to ensure interoperability between national and Community systems within and across administrative sectors and with businesses and citizens.

4.   By 31 October 2005, and at yearly intervals thereafter, the Commission shall forward to the PEGSCO a report on the implementation of paragraphs 1 to 5. In that report, the Commission shall specify any relevant user requirements or any other reason that prevents other networks from making use of the services under paragraph 2, and discuss the possibility of upgrading these services in order to extend their use.

5.   The horizontal pan-European eGovernment and infrastructure services developed within the Community framework under the IDA or the IDABC programme may be used by the Council with regard to the establishment or enhancement of activities in the framework of the common foreign and security policy and police and judicial cooperation in criminal matters in accordance with Titles V and VI of the Treaty on European Union respectively.

The use of such services shall be decided upon and financed in accordance with Titles V and VI of that Treaty.

Article 16

Financial framework

1.   The financial framework for the implementation of the Community action under this Decision for the period from 1 January 2005 to 31 December 2009 is hereby set at EUR 148,7 million, of which EUR 59,1 million is for the period until 31 December 2006.

For the period following 31 December 2006, the amount shall be deemed to be confirmed if it is consistent for this phase with the financial perspective in force for the period commencing in 2007.

2.   The annual appropriations for the period from 2005 to 2009 shall be authorised by the budgetary authority within the limit of the financial perspective.

Article 17

Entry into force

This Decision shall enter into force on the twentieth day following its publication in the Official Journal of the European Union.

Official Journal of the European Union

It shall apply from 1 January 2005 until 31 December 2009.

Done at Strasbourg, 21 April 2004.

For the European Parliament

The President

P. COX

For the Council

The President

D. ROCHE

ANNEX I

POLICY AREAS FOR PROJECTS OF COMMON INTEREST

Projects of common interest under the IDABC programme are those established notably in the following areas:

A.   IN GENERAL

| 1. | Community policies and activities (in accordance with section B), interinstitutional information exchange (in accordance with section C), international cooperation (in accordance with section D) as well as other networks (in accordance with section E). |
| --- | --- |

1.

| 2. | Functioning of the European Agencies and bodies and in support of the legal framework arising from the creation of the European Agencies. |
| --- | --- |

2.

| 3. | Policies related to the free movement of persons, notably in support of the delivery of equal services to citizens and businesses in the various Member States. |
| --- | --- |

3.

| 4 | Actions which, within the framework of Community policies and activities and in unforeseen circumstances, are urgently required to support the action of the Community and the Member States. |
| --- | --- |

4

B.   COMMUNITY POLICIES AND ACTIVITIES

| 1. | Economic and monetary policy. |
| --- | --- |

1.

| 2. | Consolidation of the ‘acquis communautaire’ following the enlargement of the European Union. |
| --- | --- |

2.

| 3. | Regional and cohesion policies, notably to facilitate the collection, management, and dissemination of information concerning the implementation of regional and cohesion policies at the level of central and regional public administration. |
| --- | --- |

3.

| 4. | Community funding, notably to create an interface with existing Commission databases in order to facilitate the access of European organisations, and particularly SMEs, to Community sources of funding. |
| --- | --- |

4.

| 5. | Statistics, notably regarding the collection and dissemination of statistical information, as well as statistics in support of eGovernment, in order to evaluate interoperability between systems and their efficiency as a measure of success. |
| --- | --- |

5.

| 6. | Publication of official documents and management of official information services. |
| --- | --- |

6.

| 7. | Agricultural and fisheries sectors, notably regarding support for the management of agricultural markets and structures, more efficient financial management, exchange of farm accounts data between national agencies and the Commission, and the fight against fraud. |
| --- | --- |

7.

| 8. | Industry and services sectors, notably concerning the exchange of information between public administrations in charge of business competitiveness issues, and between such public administrations and industry federations. |
| --- | --- |

8.

| 9. | Competition policy, notably through the implementation of improved electronic data exchange with the national public administrations in order to facilitate information and consultation procedures. |
| --- | --- |

9.

| 10. | Education, culture and audio-visual sector, notably for the exchange of information concerning content issues on open networks and to promote the development and free circulation of new audio-visual and information services. |
| --- | --- |

10.

| 11. | Transport sector, notably for the support of the exchange of data concerning drivers, vehicles, ships and transport operators. |
| --- | --- |

11.

| 12. | Tourism, environment, consumer protection and public health, and public procurement. |
| --- | --- |

12.

| 13. | Research policy, in particular to facilitate the collection, management and dissemination of information concerning the implementation of coordinated research policies at the level of national public administrations. |
| --- | --- |

13.

| 14. | Contributions to the objectives of the eEurope initiative and the related action plan, in particular the chapter on eGovernment and security, aimed at benefiting businesses and citizens. |
| --- | --- |

14.

| 15. | Immigration policy, notably through the implementation of improved electronic data exchange with the national public administrations in order to facilitate information and consultation procedures. |
| --- | --- |

15.

| 16. | Cooperation between judicial authorities. |
| --- | --- |

16.

| 17. | Information systems allowing the participation of national parliaments and civil society in the legislative process. |
| --- | --- |

17.

| 18. | Follow-up of the implementation of Community legislation in the Member States and exchange of information between Member States and Community institutions. |
| --- | --- |

18.

C.   INTERINSTITUTIONAL INFORMATION EXCHANGE

Interinstitutional exchange of information, notably:

| 1. | in support of the Community decision-making process and Parliamentary questions; |
| --- | --- |

1.

in support of the Community decision-making process and Parliamentary questions;

| 2. | for the setting-up of the necessary telematic links between the Commission, European Parliament, the Council (including the site of the European Union Presidency-in-office, the Permanent Representation of the Member States and cooperating national ministries) and other Community institutions; |
| --- | --- |

2.

for the setting-up of the necessary telematic links between the Commission, European Parliament, the Council (including the site of the European Union Presidency-in-office, the Permanent Representation of the Member States and cooperating national ministries) and other Community institutions;

| 3. | to facilitate multilingualism in interinstitutional information exchanges, means of translation workflow management and translation support tools, the development and sharing of multilingual resources, and the organisation of common access to such resources; |
| --- | --- |

3.

to facilitate multilingualism in interinstitutional information exchanges, means of translation workflow management and translation support tools, the development and sharing of multilingual resources, and the organisation of common access to such resources;

| 4. | for document sharing between European Agencies and bodies and the Community institutions. |
| --- | --- |

4.

for document sharing between European Agencies and bodies and the Community institutions.

D.   INTERNATIONAL COOPERATION

Extension of projects of common interest to third countries, including candidate countries, and international organisations, with particular attention to initiatives for development and economic cooperation.

E.   OTHER NETWORKS

The projects of common interest which were previously funded by the IDA programme and which now have their own Community funding nevertheless fall within the group ‘other networks’ referred to in Article 14 of this Decision.

ANNEX II

HORIZONTAL MEASURES

Horizontal measures under the IDABC programme are notably:

A.   HORIZONTAL PAN-EUROPEAN eGOVERNMENT SERVICES

Horizontal measures undertaken to initiate, enable and manage the provision of horizontal pan-European eGovernment services, including organisational and coordination aspects, such as:

| (a) | a portal to provide access to pan-European, multilingual online information and interactive services to businesses and citizens; |
| --- | --- |

(a)

a portal to provide access to pan-European, multilingual online information and interactive services to businesses and citizens;

| (b) | a single point of access to e.g. legal online information services in Member States; |
| --- | --- |

(b)

a single point of access to e.g. legal online information services in Member States;

| (c) | an interactive application for collecting stakeholders' opinions and experience on issues of public interest and on the functioning of Community policies. |
| --- | --- |

(c)

an interactive application for collecting stakeholders' opinions and experience on issues of public interest and on the functioning of Community policies.

B.   INFRASTRUCTURE SERVICES

Horizontal measures undertaken to provide and maintain technology and software solutions as services providing specific ICT-related functionalities, from communications to defined standards. Technology and software solutions comprise network services, middleware, security and guidelines, such as:

| (a) | a secure and reliable communication platform for the interchange of data between public administrations; |
| --- | --- |

(a)

a secure and reliable communication platform for the interchange of data between public administrations;

| (b) | a secure and reliable system for the management of dataflows inter-linked with different workflows; |
| --- | --- |

(b)

a secure and reliable system for the management of dataflows inter-linked with different workflows;

| (c) | a common toolkit for the management of multilingual collaborating web sites and portals; |
| --- | --- |

(c)

a common toolkit for the management of multilingual collaborating web sites and portals;

| (d) | platform accreditation with a view to handling classified information; |
| --- | --- |

(d)

platform accreditation with a view to handling classified information;

| (e) | establishment and implementation of an authentication policy for networks and projects of common interest; |
| --- | --- |

(e)

establishment and implementation of an authentication policy for networks and projects of common interest;

| (f) | security studies and risk analysis in support of networks or other infrastructure services; |
| --- | --- |

(f)

security studies and risk analysis in support of networks or other infrastructure services;

| (g) | mechanisms to establish trust between certification authorities to allow for the use of electronic certificates in pan-European eGovernment services; |
| --- | --- |

(g)

mechanisms to establish trust between certification authorities to allow for the use of electronic certificates in pan-European eGovernment services;

| (h) | identification, authorisation, authentication and non-repudiation services for projects of common interest; |
| --- | --- |

(h)

identification, authorisation, authentication and non-repudiation services for projects of common interest;

| (i) | a common framework for sharing and interchanging information and knowledge between European public administrations and with businesses and citizens, including architecture guidelines; |
| --- | --- |

(i)

a common framework for sharing and interchanging information and knowledge between European public administrations and with businesses and citizens, including architecture guidelines;

| (j) | specification of XML vocabularies, schemae and related XML deliverables to support the interchange of data in networks; |
| --- | --- |

(j)

specification of XML vocabularies, schemae and related XML deliverables to support the interchange of data in networks;

| (k) | functional and non-functional model requirements for the management of electronic records in public administrations; |
| --- | --- |

(k)

functional and non-functional model requirements for the management of electronic records in public administrations;

| (l) | a metadata framework for public sector information in pan-European applications; |
| --- | --- |

(l)

a metadata framework for public sector information in pan-European applications;

| (m) | comparison of open exchange standards with a view to establishing a policy on open formats; |
| --- | --- |

(m)

comparison of open exchange standards with a view to establishing a policy on open formats;

| (n) | common specifications and infrastructure services facilitating electronic procurement across Europe; |
| --- | --- |

(n)

common specifications and infrastructure services facilitating electronic procurement across Europe;

| (o) | machine translation systems and other multilingual tools, including dictionaries, thesaurus and classification systems in support of multilingualism; |
| --- | --- |

(o)

machine translation systems and other multilingual tools, including dictionaries, thesaurus and classification systems in support of multilingualism;

| (p) | applications to support cooperative work between public administrations; |
| --- | --- |

(p)

applications to support cooperative work between public administrations;

| (q) | applications to support multi-channel access to services; |
| --- | --- |

(q)

applications to support multi-channel access to services;

| (r) | open source software-based tools and actions to facilitate the exchange of experiences between, and the take-up of solutions by, public administrations. |
| --- | --- |

(r)

open source software-based tools and actions to facilitate the exchange of experiences between, and the take-up of solutions by, public administrations.

C.   STRATEGIC AND SUPPORT ACTIVITIES

| 1. | Strategic activities in support of the assessment and promotion of pan-European eGovernment services, such as:






  (a) | analysis of eGovernment and Information Management (IM) strategies across Europe; |
| --- | --- | --- |

1.

(a)

analysis of eGovernment and Information Management (IM) strategies across Europe;

| (b) | organisation of awareness-raising events involving the stakeholders concerned; |
| --- | --- |

(b)

organisation of awareness-raising events involving the stakeholders concerned;

| (c) | promotion of the establishment of pan-European eGovernment services with special attention to services to businesses and citizens. |
| --- | --- |

(c)

promotion of the establishment of pan-European eGovernment services with special attention to services to businesses and citizens.

| 2. | Support activities undertaken in support of programme management aiming at monitoring and improving the effectiveness and efficiency of the programme, such as:






  (a) | quality assurance and control to improve the specification of project objectives as well as project execution and results; |
| --- | --- | --- |

2.

(a)

quality assurance and control to improve the specification of project objectives as well as project execution and results;

| (b) | programme evaluation and cost-benefit analysis of specific projects of common interest and horizontal measures. |
| --- | --- |

(b)

programme evaluation and cost-benefit analysis of specific projects of common interest and horizontal measures.

| 3. | Support activities undertaken to promote the spread of good practice in the application of information technologies to public administrations, such as:






  (a) | reports, web sites, conferences and, in general, initiatives addressed to the public; |
| --- | --- | --- |

3.

(a)

reports, web sites, conferences and, in general, initiatives addressed to the public;

| (b) | monitoring, analysis and web site dissemination of initiatives and best practice related to eGovernment actions at Member State, Community and international level; |
| --- | --- |

(b)

monitoring, analysis and web site dissemination of initiatives and best practice related to eGovernment actions at Member State, Community and international level;

| (c) | promotion of the spread of best practice in the use of e.g. open source software by public administrations. |
| --- | --- |

(c)

promotion of the spread of best practice in the use of e.g. open source software by public administrations.

---

(1)  
  OJ C 80, 30.3.2004, p. 83.

1

(2)  
  OJ C 73, 23.3.2004, p. 72.

2

(3)  Opinion of the European Parliament of 18 November 2003 (not yet published in the Official Journal). Council Common Position of 18 December 2003 (OJ C 66 E, 16.3.2004, p. 22) and Position of the European Parliament of 11 March 2004 (not yet published in the Official Journal). Decision of the Council of 30 March 2004.

3

(4)  
  OJ L 203, 3.8.1999, p. 1. Decision as amended by Decision No 2046/2002/EC (OJ L 316, 20.11.2002, p. 4).

4

(5)  
  OJ L 203, 3.8.1999, p. 9. Decision as amended by Decision No 2045/2002/EC (OJ L 316, 20.11.2002, p. 1).

5

(6)  
  OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

6

(7)  
  OJ L 201, 31.7.2002, p. 37.

7

(8)  
  OJ L 184, 17.7.1999, p. 23.

8

(9)  
  OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision 2003/429/EC of the European Parliament and the Council (OJ L 147, 14.6.2003, p. 25).

9

(10)  
  OJ L 183, 11.7.1997, p. 12.

10

(11)  
  OJ L 14, 18.1.2001, p. 32.

11

(12)  
  OJ L 345, 31.12.2003, p. 9.

12

(13)  
  OJ L 336, 23.12.2003, p. 1.

13

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