# Official Journal L 296/2007

| | ISSN 1725-2555 |
| --- | --- |
| Official Journal
  of the European Union | L 296 |
| | |
| English edition | Legislation | Volume 5015 November 2007 |

ISSN 1725-2555

Official Journal

of the European Union

L 296

English edition

Legislation

Volume 5015 November 2007

---

| Contents | | I   Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory | page |
| --- | --- | --- | --- |
| | | REGULATIONS |
| | * | Council Regulation (EC) No 1331/2007 of 13 November 2007 imposing a definitive anti-dumping duty on imports of dicyandiamide originating in the People’s Republic of China | 1 |
| | | Commission Regulation (EC) No 1332/2007 of 14 November 2007 establishing the standard import values for determining the entry price of certain fruit and vegetables | 18 |
| | * | Commission Regulation (EC) No 1333/2007 of 13 November 2007 establishing a prohibition of fishing for cod in ICES zones of IV and EC waters II a by vessels flying the flag of Germany | 20 |
| | * | Commission Regulation (EC) No 1334/2007 of 14 November 2007 amending Regulation (EC) No 1749/96 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonised indices of consumer prices (
  1
  ) | 22 |

Contents

I   Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory

page

REGULATIONS

*

Council Regulation (EC) No 1331/2007 of 13 November 2007 imposing a definitive anti-dumping duty on imports of dicyandiamide originating in the People’s Republic of China

1

Commission Regulation (EC) No 1332/2007 of 14 November 2007 establishing the standard import values for determining the entry price of certain fruit and vegetables

18

*

Commission Regulation (EC) No 1333/2007 of 13 November 2007 establishing a prohibition of fishing for cod in ICES zones of IV and EC waters II a by vessels flying the flag of Germany

20

*

Commission Regulation (EC) No 1334/2007 of 14 November 2007 amending Regulation (EC) No 1749/96 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonised indices of consumer prices (
  1
  )

1

22

| | | II   Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory |
| --- | --- | --- |
| | | DECISIONS |
| | | Commission |
| | | 2007/735/EC |
| | * | Commission Decision of 4 October 2006 relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA Agreement (Case COMP/C2/38.681 — The Cannes Extension Agreement)
  (notified under document number C(2006) 4350)

   (
  1
  ) | 27 |
| | | 2007/736/EC |
| | * | Commission Decision of 9 November 2007 amending Annex II to Council Decision 79/542/EEC as regards the list of third countries and parts thereof from which imports into the Community of certain fresh meat is authorised
  (notified under document number C(2007) 5365)

   (
  1
  ) | 29 |

II   Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory

DECISIONS

Commission

2007/735/EC

*

Commission Decision of 4 October 2006 relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA Agreement (Case COMP/C2/38.681 — The Cannes Extension Agreement)
  (notified under document number C(2006) 4350)

   (
  1
  )

(notified under document number C(2006) 4350)

1

27

2007/736/EC

*

Commission Decision of 9 November 2007 amending Annex II to Council Decision 79/542/EEC as regards the list of third countries and parts thereof from which imports into the Community of certain fresh meat is authorised
  (notified under document number C(2007) 5365)

   (
  1
  )

(notified under document number C(2007) 5365)

1

29

| | |
| --- | --- |
| | (1)   Text with EEA relevance |

---

(1)   Text with EEA relevance

1

| 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.

---

I Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory

REGULATIONS

| 15.11.2007 | EN | Official Journal of the European Union | L 296/1 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/1

---

COUNCIL REGULATION (EC) No 1331/2007

of 13 November 2007

imposing a definitive anti-dumping duty on imports of dicyandiamide originating in the People’s Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

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) (‘the basic Regulation’), and in particular Article 9 thereof,

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

1.   PROCEDURE

1.1.   Initiation

| (1) | On 3 July 2006 the Commission received a complaint lodged pursuant to Article 5 of the basic Regulation by AlzChem GmbH (‘the complainant’) representing 100 % of the Community production of 1-cyanoguanidine (dicyandiamide) (‘DCD’). |
| --- | --- |

(1)

On 3 July 2006 the Commission received a complaint lodged pursuant to Article 5 of the basic Regulation by AlzChem GmbH (‘the complainant’) representing 100 % of the Community production of 1-cyanoguanidine (dicyandiamide) (‘DCD’).

| (2) | This complaint contained evidence of dumping of DCD from the People’s Republic of China (‘PRC’) and of material injury resulting there from which was considered sufficient to justify the opening of a proceeding. |
| --- | --- |

(2)

This complaint contained evidence of dumping of DCD from the People’s Republic of China (‘PRC’) and of material injury resulting there from which was considered sufficient to justify the opening of a proceeding.

| (3) | On 17 August 2006 the proceeding was opened by the publication of a notice of initiation (2) in the Official Journal of the European Union. |
| --- | --- |

(3)

On 17 August 2006 the proceeding was opened by the publication of a notice of initiation (2) in the Official Journal of the European Union.

2

Official Journal of the European Union

1.2.   Parties concerned by the proceeding and verification visits

| (4) | The Commission officially advised the complainant Community producer, the exporting producers, importers, users, suppliers and associations known to be concerned and the representatives of the exporting country concerned of the initiation of the proceeding. Interested parties were given an opportunity to make their views known in writing and to request a hearing within the time limit set in the notice of initiation. |
| --- | --- |

(4)

The Commission officially advised the complainant Community producer, the exporting producers, importers, users, suppliers and associations known to be concerned and the representatives of the exporting country concerned of the initiation of the proceeding. Interested parties were given an opportunity to make their views known in writing and to request a hearing within the time limit set in the notice of initiation.

| (5) | The complainant Community producer, exporting producers, importers and users made their views known. All interested parties, who so requested and showed that there were particular reasons why they should be heard, were granted a hearing. |
| --- | --- |

(5)

The complainant Community producer, exporting producers, importers and users made their views known. All interested parties, who so requested and showed that there were particular reasons why they should be heard, were granted a hearing.

| (6) | 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. Three exporting producers in the PRC requested MET pursuant to Article 2(7) of the basic Regulation and IT, should the investigation establish that they do not meet the conditions for MET. |
| --- | --- |

(6)

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. Three exporting producers in the PRC requested MET pursuant to Article 2(7) of the basic Regulation and IT, should the investigation establish that they do not meet the conditions for MET.

| (7) | In view of the apparent high number of exporting producers in the PRC, in the notice of initiation the Commission indicated that sampling might be applied in this investigation for the determination of dumping in accordance with Article 17 of the basic Regulation. |
| --- | --- |

(7)

In view of the apparent high number of exporting producers in the PRC, in the notice of initiation the Commission indicated that sampling might be applied in this investigation for the determination of dumping in accordance with Article 17 of the basic Regulation.

| (8) | In order to enable the Commission to decide whether sampling would be necessary and, if so, to select a sample, all exporting producers in the PRC were asked to make themselves known to the Commission and provide, as specified in the notice of initiation, basic information on their activities related to the product concerned during the investigation period (1 July 2005 to 30 June 2006). |
| --- | --- |

(8)

In order to enable the Commission to decide whether sampling would be necessary and, if so, to select a sample, all exporting producers in the PRC were asked to make themselves known to the Commission and provide, as specified in the notice of initiation, basic information on their activities related to the product concerned during the investigation period (1 July 2005 to 30 June 2006).

| (9) | However, given that only three exporting producers cooperated in the investigation, it was decided that sampling was not required. |
| --- | --- |

(9)

However, given that only three exporting producers cooperated in the investigation, it was decided that sampling was not required.

| (10) | Questionnaires were sent to all parties known to be concerned and to all other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from the three cooperating exporting producers in the PRC and from the sole Community producer, as well as from two users and four importers. |
| --- | --- |

(10)

Questionnaires were sent to all parties known to be concerned and to all other companies that made themselves known within the deadlines set out in the notice of initiation. Replies were received from the three cooperating exporting producers in the PRC and from the sole Community producer, as well as from two users and four importers.

| (11) | The Commission sought and verified all the information deemed necessary for the determination of dumping, resulting injury and Community interest and carried out verifications at the premises of the following companies:






  (a) | Community producer







  — | AlzChem GmbH, Germany, |
| --- | --- | --- | --- |

(11)

The Commission sought and verified all the information deemed necessary for the determination of dumping, resulting injury and Community interest and carried out verifications at the premises of the following companies:

(a)

Community producer

Community producer

—

AlzChem GmbH, Germany,

| (b) | Exporting producers in the PRC







  — | Ningxia Darong Chemical & Metallurgy Co., Ltd., PRC, |
| --- | --- | --- |

(b)

Exporting producers in the PRC

Exporting producers in the PRC

—

Ningxia Darong Chemical & Metallurgy Co., Ltd., PRC,

| — | Ningxia Xingping Fine Chemical Co., Ltd., PRC, |
| --- | --- |

—

Ningxia Xingping Fine Chemical Co., Ltd., PRC,

| — | Ningxia Yinglite Chemicals Co., Ltd, PRC, |
| --- | --- |

—

Ningxia Yinglite Chemicals Co., Ltd, PRC,

| (c) | Unrelated importers







  — | Lanxess GmbH, Germany, |
| --- | --- | --- |

(c)

Unrelated importers

Unrelated importers

—

Lanxess GmbH, Germany,

| — | Helm AG, Germany, |
| --- | --- |

—

Helm AG, Germany,

| (d) | Community users







  — | Merck Santé, France, |
| --- | --- | --- |

(d)

Community users

Community users

—

Merck Santé, France,

| — | Lanxess GmbH, Germany. |
| --- | --- |

—

Lanxess GmbH, Germany.

1.3.   Investigation period

| (12) | The investigation of dumping and injury covered the period from 1 July 2005 to 30 June 2006 (‘investigation period’ or ‘IP’). The examination of the trends relevant for the assessment of injury covered the period from 1 January 2002 to the end of the investigation period (‘period considered’). |
| --- | --- |

(12)

The investigation of dumping and injury covered the period from 1 July 2005 to 30 June 2006 (‘investigation period’ or ‘IP’). The examination of the trends relevant for the assessment of injury covered the period from 1 January 2002 to the end of the investigation period (‘period considered’).

2.   PRODUCT CONCERNED AND LIKE PRODUCT

2.1.   Product concerned

| (13) | The product concerned is 1-cyanoguanidine (dicyandiamide) (‘DCD’), falling within CN code 2926 20 00. It is a solid substance in the form of a fine, white, crystalline powder, usually odourless. It is produced from quick lime and carbon black, and appears after several production steps. |
| --- | --- |

(13)

The product concerned is 1-cyanoguanidine (dicyandiamide) (‘DCD’), falling within CN code 2926 20 00. It is a solid substance in the form of a fine, white, crystalline powder, usually odourless. It is produced from quick lime and carbon black, and appears after several production steps.

| (14) | DCD is usually used as an intermediate to produce a broad range of other chemical intermediates, such as pharmaceuticals, various industrial applications — water, pulp and paper, textile, leather — and diverse fields of epoxy applications. It is a key element of the nitrogen — carbon — nitrogen (NCN) chain, with niche end-products such as guanidine nitrate and other NCN derivatives. |
| --- | --- |

(14)

DCD is usually used as an intermediate to produce a broad range of other chemical intermediates, such as pharmaceuticals, various industrial applications — water, pulp and paper, textile, leather — and diverse fields of epoxy applications. It is a key element of the nitrogen — carbon — nitrogen (NCN) chain, with niche end-products such as guanidine nitrate and other NCN derivatives.

| (15) | More than 90 % of the DCD sold on the Community market is standard. The rest, so-called micro DCD, is of a smaller particle size. The Chinese exporting producers provided data for the standard type only. |
| --- | --- |

(15)

More than 90 % of the DCD sold on the Community market is standard. The rest, so-called micro DCD, is of a smaller particle size. The Chinese exporting producers provided data for the standard type only.

2.2.   Like product

| (16) | One importer argued that the standard type of DCD produced by the Community industry is of higher quality than that produced by the Chinese exporting producers, since the water content of the Chinese DCD is significantly higher and more volatile compared to the water content of the DCD produced in the Community. Allegedly, the Chinese DCD also has a higher content of impurities. |
| --- | --- |

(16)

One importer argued that the standard type of DCD produced by the Community industry is of higher quality than that produced by the Chinese exporting producers, since the water content of the Chinese DCD is significantly higher and more volatile compared to the water content of the DCD produced in the Community. Allegedly, the Chinese DCD also has a higher content of impurities.

| (17) | The investigation showed, however, that while there may be certain quality differences, these cannot be quantified and moreover, do not affect the basic chemical, physical and technical characteristics of DCD produced and sold by the Community industry in the Community, and DCD imported into the Community from the PRC, which were found to be the same and to have the same end-uses. |
| --- | --- |

(17)

The investigation showed, however, that while there may be certain quality differences, these cannot be quantified and moreover, do not affect the basic chemical, physical and technical characteristics of DCD produced and sold by the Community industry in the Community, and DCD imported into the Community from the PRC, which were found to be the same and to have the same end-uses.

| (18) | It was therefore concluded that these products are alike within the meaning of Article 1(4) of the basic Regulation. |
| --- | --- |

(18)

It was therefore concluded that these products are alike within the meaning of Article 1(4) of the basic Regulation.

3.   DUMPING

3.1.   Market economy treatment (‘MET’)

| (19) | 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. |
| --- | --- |

(19)

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.

| (20) | Briefly, and for ease of reference only, the MET criteria are set out in summarised form below:






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

(20)

Briefly, and for ease of reference only, the MET criteria 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. | firms have one clear set of basic accounting records which are independently audited in line with international accounting standards and are applied for all purposes; |
| --- | --- |

2.

firms have one clear set of basic accounting records which are independently audited in line with international accounting standards and are 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. | bankruptcy and property laws guarantee legal certainty and stability; |
| --- | --- |

4.

bankruptcy and property laws guarantee legal certainty and stability;

| 5. | exchange rate conversions are carried out at market rates. |
| --- | --- |

5.

exchange rate conversions are carried out at market rates.

| (21) | Three 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 within the given deadline. The Commission sought and verified at the premises of these companies all necessary information submitted in the MET applications as deemed necessary. |
| --- | --- |

(21)

Three 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 within the given deadline. The Commission sought and verified at the premises of these companies all necessary information submitted in the MET applications as deemed necessary.

| (22) | The investigation revealed that the MET claim had to be rejected for all three exporting producers. The determination for the companies against each of the five criteria set out in Article 2(7)(c) of the basic Regulation showed that the companies did not meet the requirements of criteria one, two and three. |
| --- | --- |

(22)

The investigation revealed that the MET claim had to be rejected for all three exporting producers. The determination for the companies against each of the five criteria set out in Article 2(7)(c) of the basic Regulation showed that the companies did not meet the requirements of criteria one, two and three.

| (23) | As the main shareholder is in one case a State-owned enterprise and in the second a member of the People’s Congress, it was found that the State could exert significant influence over the companies’ business decisions relating to management decisions such as profit distribution, the issuing of new shares, capital increases and the amendment of the Articles of Association, therefore such decisions were not made in response to market signals. Significant differences in the electricity unit consumption and unit price between the three companies were found and none of the three companies could demonstrate that its electricity costs are the result of supply and demand, and that they substantially reflect market values. |
| --- | --- |

(23)

As the main shareholder is in one case a State-owned enterprise and in the second a member of the People’s Congress, it was found that the State could exert significant influence over the companies’ business decisions relating to management decisions such as profit distribution, the issuing of new shares, capital increases and the amendment of the Articles of Association, therefore such decisions were not made in response to market signals. Significant differences in the electricity unit consumption and unit price between the three companies were found and none of the three companies could demonstrate that its electricity costs are the result of supply and demand, and that they substantially reflect market values.

| (24) | Furthermore, in all three cases, the companies’ accounts failed to reflect the true financial situation. In particular, there were numerous breaches of basic accounting principles which are part of the International Accounting Standards (IAS) and as none of these issues were mentioned in the auditor’s report, the companies cannot be considered to have one clear set of accounts in line with IAS and to be independently audited in line with IAS. |
| --- | --- |

(24)

Furthermore, in all three cases, the companies’ accounts failed to reflect the true financial situation. In particular, there were numerous breaches of basic accounting principles which are part of the International Accounting Standards (IAS) and as none of these issues were mentioned in the auditor’s report, the companies cannot be considered to have one clear set of accounts in line with IAS and to be independently audited in line with IAS.

| (25) | As to the valuation of initial assets, the three companies were unable to provide any explanation of the basis on which such valuation was made. Finally, in two cases, the companies were unable to provide proof of all payments for land-use rights. Both deficiencies indicated that there were significant distortions carried over from the non-market economy system. |
| --- | --- |

(25)

As to the valuation of initial assets, the three companies were unable to provide any explanation of the basis on which such valuation was made. Finally, in two cases, the companies were unable to provide proof of all payments for land-use rights. Both deficiencies indicated that there were significant distortions carried over from the non-market economy system.

| (26) | The Advisory Committee was consulted and the parties directly concerned were given an opportunity to comment on the above findings. The Community industry and the three exporting producers all received disclosure of the MET assessment and were given the opportunity to comment. The exporting producers made a number of comments against the findings and the Commission replied to them without, however, amending the overall assessment. The exporting producers claimed in particular that their business decisions were free of State intervention. Furthermore, they objected to specific findings concerning costs and evaluation of assets. However, no evidence was submitted to substantiate the claims, which had therefore to be rejected. |
| --- | --- |

(26)

The Advisory Committee was consulted and the parties directly concerned were given an opportunity to comment on the above findings. The Community industry and the three exporting producers all received disclosure of the MET assessment and were given the opportunity to comment. The exporting producers made a number of comments against the findings and the Commission replied to them without, however, amending the overall assessment. The exporting producers claimed in particular that their business decisions were free of State intervention. Furthermore, they objected to specific findings concerning costs and evaluation of assets. However, no evidence was submitted to substantiate the claims, which had therefore to be rejected.

| (27) | Following the above, it was concluded that MET should not be granted to the PRC producers. |
| --- | --- |

(27)

Following the above, it was concluded that MET should not be granted to the PRC producers.

3.2.   Individual treatment (‘IT’)

| (28) | Article 9(5) of the basic Regulation provides that, where Article 2(7)(a) of the basic Regulation applies, an individual duty shall be specified for companies that are able to demonstrate that they meet all criteria set out in Article 9(5) of the basic Regulation for receiving individual treatment. |
| --- | --- |

(28)

Article 9(5) of the basic Regulation provides that, where Article 2(7)(a) of the basic Regulation applies, an individual duty shall be specified for companies that are able to demonstrate that they meet all criteria set out in Article 9(5) of the basic Regulation for receiving individual treatment.

| (29) | The PRC producers to which MET could not be granted also claimed IT in the event that they were not granted MET. However, the State was found to exert significant influence in such a way that, in two cases, company decisions could not be considered to be taken freely and State interference could be such that there would be a high risk of circumvention. As far as the third, collectively-owned, former State-owned company is concerned, there are strong indications that there is still substantial potential interference from the State leading to possible risks of circumvention. |
| --- | --- |

(29)

The PRC producers to which MET could not be granted also claimed IT in the event that they were not granted MET. However, the State was found to exert significant influence in such a way that, in two cases, company decisions could not be considered to be taken freely and State interference could be such that there would be a high risk of circumvention. As far as the third, collectively-owned, former State-owned company is concerned, there are strong indications that there is still substantial potential interference from the State leading to possible risks of circumvention.

| (30) | The latter exporting producer claimed that potential State interference would not be sufficient reason to reject individual treatment because such conclusion would be merely based on assumptions. |
| --- | --- |

(30)

The latter exporting producer claimed that potential State interference would not be sufficient reason to reject individual treatment because such conclusion would be merely based on assumptions.

| (31) | In accordance with Article 9(5)(e) of the basic Regulation, where Article 2(7)(a) applies, an individual duty can only be specified where an exporter can demonstrate, on the basis of properly substantiated claims, that State interference is not such as to permit circumvention of measures if individual exporters are given different rates of duty. First, the company in question could not clarify the precise role and responsibilities of its General Manager. It could neither clarify whether the current shareholders indeed paid for the shares that they own in the former State-owned company. On this basis, it was a reasonable conclusion that significant State interference could not be sufficiently excluded. The risk of circumvention was therefore considered too high and the exporting producer’s claims in this regard had to be rejected. |
| --- | --- |

(31)

In accordance with Article 9(5)(e) of the basic Regulation, where Article 2(7)(a) applies, an individual duty can only be specified where an exporter can demonstrate, on the basis of properly substantiated claims, that State interference is not such as to permit circumvention of measures if individual exporters are given different rates of duty. First, the company in question could not clarify the precise role and responsibilities of its General Manager. It could neither clarify whether the current shareholders indeed paid for the shares that they own in the former State-owned company. On this basis, it was a reasonable conclusion that significant State interference could not be sufficiently excluded. The risk of circumvention was therefore considered too high and the exporting producer’s claims in this regard had to be rejected.

| (32) | Consequently, since it was found that the PRC producers did not meet all of the requirements for being granted IT in accordance with Article 9(5) of the basic Regulation, IT had to be rejected and a single country-wide duty imposed. |
| --- | --- |

(32)

Consequently, since it was found that the PRC producers did not meet all of the requirements for being granted IT in accordance with Article 9(5) of the basic Regulation, IT had to be rejected and a single country-wide duty imposed.

3.3.   Normal value

3.3.1.   Analogue country

| (33) | According to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not granted MET has to be established on the basis of the prices or constructed value in an analogue country or the price from such a third country to other countries, including the Community, or where those are not possible, on any other reasonable basis, including the price actually paid or payable in the Community for the like product, duly adjusted if necessary to include a reasonable profit margin. |
| --- | --- |

(33)

According to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not granted MET has to be established on the basis of the prices or constructed value in an analogue country or the price from such a third country to other countries, including the Community, or where those are not possible, on any other reasonable basis, including the price actually paid or payable in the Community for the like product, duly adjusted if necessary to include a reasonable profit margin.

| (34) | In the absence of production of the product concerned outside the Community and the PRC, the Commission indicated in the notice of initiation its intention to base the normal value, in accordance with Article 2(7)(a) of the basic Regulation, on the prices actually paid or payable in the Community for the like product. |
| --- | --- |

(34)

In the absence of production of the product concerned outside the Community and the PRC, the Commission indicated in the notice of initiation its intention to base the normal value, in accordance with Article 2(7)(a) of the basic Regulation, on the prices actually paid or payable in the Community for the like product.

| (35) | The three PRC producers objected to this proposal, arguing that there was not sufficient competition within the Community and that the production process in the Community was not comparable with that in the PRC. They claimed that normal value should be based on the export price of the complainant to the PRC or on the cost of production of DCD in the PRC. |
| --- | --- |

(35)

The three PRC producers objected to this proposal, arguing that there was not sufficient competition within the Community and that the production process in the Community was not comparable with that in the PRC. They claimed that normal value should be based on the export price of the complainant to the PRC or on the cost of production of DCD in the PRC.

| (36) | The export price of the Community industry to third countries could not be taken as it could not be excluded that these prices were equally dumped. Thus, the exporting producers in question could not demonstrate that this methodology would be more reasonable than the one used by the Community institutions. In particular, it could not be demonstrated nor was there otherwise any evidence available that the competition in the Community market was insufficient and that, as a consequence, data relating to the Community industry would be unreliable. As far as differences in the production process are concerned, they were not considered significant. |
| --- | --- |

(36)

The export price of the Community industry to third countries could not be taken as it could not be excluded that these prices were equally dumped. Thus, the exporting producers in question could not demonstrate that this methodology would be more reasonable than the one used by the Community institutions. In particular, it could not be demonstrated nor was there otherwise any evidence available that the competition in the Community market was insufficient and that, as a consequence, data relating to the Community industry would be unreliable. As far as differences in the production process are concerned, they were not considered significant.

| (37) | Furthermore, none of the three companies was granted MET and therefore costs of manufacturing of the Chinese exporting producers were not considered reliable. |
| --- | --- |

(37)

Furthermore, none of the three companies was granted MET and therefore costs of manufacturing of the Chinese exporting producers were not considered reliable.

| (38) | On this basis, it was considered that the most reasonable basis for determining normal value was to use the Community industry’s cost of manufacturing of the like product adjusted where necessary, in particular to take into account differences in production processes and access to raw materials. |
| --- | --- |

(38)

On this basis, it was considered that the most reasonable basis for determining normal value was to use the Community industry’s cost of manufacturing of the like product adjusted where necessary, in particular to take into account differences in production processes and access to raw materials.

| (39) | The exporting producers claimed that the determination of the normal value was based on facts available and thus on Article 18 of the basic Regulation. It was further claimed that since they fully cooperated in the present investigation, such approach was not justified. |
| --- | --- |

(39)

The exporting producers claimed that the determination of the normal value was based on facts available and thus on Article 18 of the basic Regulation. It was further claimed that since they fully cooperated in the present investigation, such approach was not justified.

| (40) | These exporting producers’ allegation that normal value was determined in accordance with Article 18 of the basic Regulation is incorrect. Indeed, as mentioned above, normal value was established in accordance with Article 2(7)(a) of the basic Regulation, which allows to use any other reasonable basis should it not be possible to base normal value on costs and prices from an analogue country or on export prices from such a country to other third countries. This claim was therefore rejected. |
| --- | --- |

(40)

These exporting producers’ allegation that normal value was determined in accordance with Article 18 of the basic Regulation is incorrect. Indeed, as mentioned above, normal value was established in accordance with Article 2(7)(a) of the basic Regulation, which allows to use any other reasonable basis should it not be possible to base normal value on costs and prices from an analogue country or on export prices from such a country to other third countries. This claim was therefore rejected.

3.3.2.   Determination of normal value

| (41) | The like product was sold by the Community industry in representative quantities. However, the Community industry’s domestic sales were loss-making. Therefore, the normal value was based on the Community industry’s manufacturing costs plus a reasonable amount for selling, general and administrative costs and profit. Adjustments were made on the Community industry’s manufacturing costs so as to offset the additional transport costs due to the physical separation between production units, no direct access to raw materials, which must be transported from remote production sites and disposal of the by-product (black lime). Furthermore, an estimated profit corresponding to the profit achieved by the Community industry in 2001, was added, together with 4,3 % for SG&A based on information provided by the Community industry. |
| --- | --- |

(41)

The like product was sold by the Community industry in representative quantities. However, the Community industry’s domestic sales were loss-making. Therefore, the normal value was based on the Community industry’s manufacturing costs plus a reasonable amount for selling, general and administrative costs and profit. Adjustments were made on the Community industry’s manufacturing costs so as to offset the additional transport costs due to the physical separation between production units, no direct access to raw materials, which must be transported from remote production sites and disposal of the by-product (black lime). Furthermore, an estimated profit corresponding to the profit achieved by the Community industry in 2001, was added, together with 4,3 % for SG&A based on information provided by the Community industry.

3.4.   Export prices

| (42) | All export sales to the Community by the PRC producers were made directly to independent customers in the Community and therefore the export price was established in accordance with Article 2(8) of the basic Regulation on the basis of the prices actually paid or payable. |
| --- | --- |

(42)

All export sales to the Community by the PRC producers were made directly to independent customers in the Community and therefore the export price was established in accordance with Article 2(8) of the basic Regulation on the basis of the prices actually paid or payable.

3.5.   Comparison

| (43) | The weighted average normal value as established above was compared with the weighted average export price of sales to the Community of the cooperating companies not granted MET, as provided under Article 2(11) of the basic Regulation. |
| --- | --- |

(43)

The weighted average normal value as established above was compared with the weighted average export price of sales to the Community of the cooperating companies not granted MET, as provided under Article 2(11) of the basic Regulation.

3.6.   Dumping margin

| (44) | On this basis, the country-wide dumping margin, expressed as a percentage of the CIF import price at the Community border, duty unpaid, is 91,8 %. |
| --- | --- |

(44)

On this basis, the country-wide dumping margin, expressed as a percentage of the CIF import price at the Community border, duty unpaid, is 91,8 %.

4.   INJURY

4.1.   Preliminary remark

| (45) | As the analysis concerns only one company, for reasons of confidentiality most indicators are given in indexed form or ranges. |
| --- | --- |

(45)

As the analysis concerns only one company, for reasons of confidentiality most indicators are given in indexed form or ranges.

4.2.   Community production

| (46) | Total Community production in the IP ranged between 15 000 and 20 000 tonnes. |
| --- | --- |

(46)

Total Community production in the IP ranged between 15 000 and 20 000 tonnes.

4.3.   Definition of the Community industry

| (47) | The production of the Community producer AlzChem GmbH represents 100 % of the DCD produced in the Community. It is therefore considered that it constitutes the Community industry (‘CI’) within the meaning of Articles 4(1) and 5(4) of the basic Regulation. |
| --- | --- |

(47)

The production of the Community producer AlzChem GmbH represents 100 % of the DCD produced in the Community. It is therefore considered that it constitutes the Community industry (‘CI’) within the meaning of Articles 4(1) and 5(4) of the basic Regulation.

4.4.   Community consumption

| (48) | Community consumption was established on the basis of the sales volume of the CI on the Community market plus imports from the PRC and other third countries under the relevant CN code according to Eurostat. As shown in the table below, the Community consumption of the product concerned remained stable (+ 1 %) over the period considered. In this context, it has to be noted that the data concerning 2002 also include imports for the Norwegian producer, ODDA, which ceased activity the same year. |
| --- | --- |

(48)

Community consumption was established on the basis of the sales volume of the CI on the Community market plus imports from the PRC and other third countries under the relevant CN code according to Eurostat. As shown in the table below, the Community consumption of the product concerned remained stable (+ 1 %) over the period considered. In this context, it has to be noted that the data concerning 2002 also include imports for the Norwegian producer, ODDA, which ceased activity the same year.

| (49) | According to an importer, ODDA’s closure led some of its larger customers to stock-pile in 2003, which may also explain why consumption peaked that year. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Community consumption (tonnes) | 13 258 | 15 594 | 13 119 | 12 469 | 13 417 |
| Index 2002 = 100 | 100 | 118 | 99 | 94 | 101 |

(49)

According to an importer, ODDA’s closure led some of its larger customers to stock-pile in 2003, which may also explain why consumption peaked that year.

2002

2003

2004

2005

IP

Community consumption (tonnes)

13 258

15 594

13 119

12 469

13 417

Index 2002 = 100

100

118

99

94

101

4.5.   Imports into the Community from the PRC

4.5.1.   Volume and market share of imports from the PRC

| (50) | Imports from the PRC according to Eurostat increased from 2 476 tonnes in 2002 to 6 002 tonnes in the IP. The market share increased from 15-25 % to 40-50 % during the same period, as the Chinese producers took over a major part of the market share previously held by the Norwegian producer ODDA. The increase in imports was particularly marked in 2003. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Import volumes (tonnes) | 2 476 | 6 173 | 4 283 | 5 218 | 6 002 |
| Index 2002 = 100 | 100 | 249 | 173 | 211 | 241 |
| Market share | 15-25 % | 35-45 % | 30-40 % | 35-45 % | 40-50 % |

(50)

Imports from the PRC according to Eurostat increased from 2 476 tonnes in 2002 to 6 002 tonnes in the IP. The market share increased from 15-25 % to 40-50 % during the same period, as the Chinese producers took over a major part of the market share previously held by the Norwegian producer ODDA. The increase in imports was particularly marked in 2003.

2002

2003

2004

2005

IP

Import volumes (tonnes)

2 476

6 173

4 283

5 218

6 002

Index 2002 = 100

100

249

173

211

241

Market share

15-25 %

35-45 %

30-40 %

35-45 %

40-50 %

4.5.2.   Prices of imports and undercutting

| (51) | Based on Eurostat, the prices of imports decreased by 11 % over the period considered, from EUR 1 149/tonne in 2002 to EUR 1 022/tonne in the IP. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Import prices from the PRC (EUR/tonne) | 1 149 | 1 071 | 1 338 | 980 | 1 022 |
| Index 2002 = 100 | 100 | 93 | 116 | 85 | 89 |

(51)

Based on Eurostat, the prices of imports decreased by 11 % over the period considered, from EUR 1 149/tonne in 2002 to EUR 1 022/tonne in the IP.

2002

2003

2004

2005

IP

Import prices from the PRC (EUR/tonne)

1 149

1 071

1 338

980

1 022

Index 2002 = 100

100

93

116

85

89

| (52) | To determine price undercutting, a comparison was made between the sales prices of the CI on the Community market during the IP and those charged by the Chinese exporting producers. Since the Chinese producers did not export the so-called micro DCD, this type was excluded from the calculation of the price undercutting. |
| --- | --- |

(52)

To determine price undercutting, a comparison was made between the sales prices of the CI on the Community market during the IP and those charged by the Chinese exporting producers. Since the Chinese producers did not export the so-called micro DCD, this type was excluded from the calculation of the price undercutting.

| (53) | The relevant sales prices of the CI were those to independent customers, adjusted where necessary to an ex-works level. These prices were compared with the sales prices charged by the exporting producers net of discounts and adjusted where necessary to CIF Community frontier prices with an appropriate adjustment for the customs clearance costs and post-importation costs. The applicable conventional third country duty of 6,5 % was added to the CIF price to obtain the free-circulation unit price. |
| --- | --- |

(53)

The relevant sales prices of the CI were those to independent customers, adjusted where necessary to an ex-works level. These prices were compared with the sales prices charged by the exporting producers net of discounts and adjusted where necessary to CIF Community frontier prices with an appropriate adjustment for the customs clearance costs and post-importation costs. The applicable conventional third country duty of 6,5 % was added to the CIF price to obtain the free-circulation unit price.

| (54) | During the IP the weighted average undercutting margin expressed as a percentage of the CI’s average ex-works sales price, was between 25 % and 35 % for the cooperating Chinese producers. |
| --- | --- |

(54)

During the IP the weighted average undercutting margin expressed as a percentage of the CI’s average ex-works sales price, was between 25 % and 35 % for the cooperating Chinese producers.

4.6.   Situation of the Community industry

| (55) | In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the CI included an analysis of all economic factors having a bearing on the state of the industry from 2002 to the IP. |
| --- | --- |

(55)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the CI included an analysis of all economic factors having a bearing on the state of the industry from 2002 to the IP.

| (56) | The injury factors presented below only concern sales on the free market, which represent 85 % of the production of DCD of the CI. It has to be noted that the remaining 15 % of the production of DCD is internally used as captive transfer. The CI is an integrated producer using DCD for further processing and transforming DCD for the production of downstream products, without issuing any commercial invoices. The captive consumption remained rather stable over the period considered and could therefore not have impacted on the situation of the Community industry. |
| --- | --- |

(56)

The injury factors presented below only concern sales on the free market, which represent 85 % of the production of DCD of the CI. It has to be noted that the remaining 15 % of the production of DCD is internally used as captive transfer. The CI is an integrated producer using DCD for further processing and transforming DCD for the production of downstream products, without issuing any commercial invoices. The captive consumption remained rather stable over the period considered and could therefore not have impacted on the situation of the Community industry.

4.6.1.   Production, production capacity and capacity utilisation

| (57) | The production capacity increased by 33 % between 2002 and the IP. The capacity increase occurred during 2003 and 2004, after the closure of the Norwegian producer, ODDA, in late 2002. The additional production capacity should be viewed in the light of the fact that ODDA ceased production and that this company had already a share of around 25 % on the Community market and sold also to other markets. The increased production capacity was achieved through investments and technical improvements. |
| --- | --- |

(57)

The production capacity increased by 33 % between 2002 and the IP. The capacity increase occurred during 2003 and 2004, after the closure of the Norwegian producer, ODDA, in late 2002. The additional production capacity should be viewed in the light of the fact that ODDA ceased production and that this company had already a share of around 25 % on the Community market and sold also to other markets. The increased production capacity was achieved through investments and technical improvements.

| (58) | As a result of increased capacity and sales, production volumes increased by 37 % between 2002 and the IP. The largest increase occurred between 2002 and 2003. Production volumes peaked in 2004 after which they decreased sharply in 2005 followed by an increase in the IP. |
| --- | --- |

(58)

As a result of increased capacity and sales, production volumes increased by 37 % between 2002 and the IP. The largest increase occurred between 2002 and 2003. Production volumes peaked in 2004 after which they decreased sharply in 2005 followed by an increase in the IP.

| (59) | Capacity utilisation increased by 3 percentage points over the period considered. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Production (Index) | 100 | 133 | 143 | 124 | 137 |
| Production capacity (Index) | 100 | 120 | 133 | 133 | 133 |
| Capacity utilisation | 84  % | 93  % | 91  % | 78  % | 87  % |

(59)

Capacity utilisation increased by 3 percentage points over the period considered.

2002

2003

2004

2005

IP

Production (Index)

100

133

143

124

137

Production capacity (Index)

100

120

133

133

133

Capacity utilisation

84  %

93  %

91  %

78  %

87  %

4.6.2.   Stocks

| (60) | Stocks increased significantly during the period considered. This was due to the fact that, because of the dumped imports, the CI could not increase its sales volume as much as it anticipated following the closure of ODDA, as explained further below. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Stocks (Index) | 100 | 151 | 187 | 91 | 178 |

(60)

Stocks increased significantly during the period considered. This was due to the fact that, because of the dumped imports, the CI could not increase its sales volume as much as it anticipated following the closure of ODDA, as explained further below.

2002

2003

2004

2005

IP

Stocks (Index)

100

151

187

91

178

4.6.3.   Sales volume, market shares and average unit prices in the Community

| (61) | While Community consumption remained stable, sales of DCD by the CI to independent customers on the Community market increased by 6 % over the period considered. They reached a peak in 2003 and decreased steadily in 2004 and 2005 to increase slightly again during the IP. However, these sales were made constantly at prices significantly below the costs of production, with the exception of sales of micro DCD, which represent between 0 % and 10 % of the total sales [no precise figure given for reasons of confidentiality] on the Community market, and which were very profitable. |
| --- | --- |

(61)

While Community consumption remained stable, sales of DCD by the CI to independent customers on the Community market increased by 6 % over the period considered. They reached a peak in 2003 and decreased steadily in 2004 and 2005 to increase slightly again during the IP. However, these sales were made constantly at prices significantly below the costs of production, with the exception of sales of micro DCD, which represent between 0 % and 10 % of the total sales [no precise figure given for reasons of confidentiality] on the Community market, and which were very profitable.

| (62) | In addition, it is worth recalling that the CI uses its own-produced DCD for the production of other downstream chemical products, e.g. NCN derivates. This captive use represents approximately 15 % of the CI’s production of DCD. |
| --- | --- |

(62)

In addition, it is worth recalling that the CI uses its own-produced DCD for the production of other downstream chemical products, e.g. NCN derivates. This captive use represents approximately 15 % of the CI’s production of DCD.

| (63) | Sales volumes and market shares were as follows: | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Sales volumes in the EC (Index) | 100 | 123 | 118 | 104 | 106 |
| Market share (%) | 50-60 % | 50-60 % | 60-70 % | 50-60 % | 50-60 % |

(63)

Sales volumes and market shares were as follows:

2002

2003

2004

2005

IP

Sales volumes in the EC (Index)

100

123

118

104

106

Market share (%)

50-60 %

50-60 %

60-70 %

50-60 %

50-60 %

| (64) | The CI’s market share increased by 3 percentage points over the period considered. This, however, should be viewed in the light of the gap left on the market by the closure of ODDA in late 2002, which held a market share of around 25 % prior to its closure. |
| --- | --- |

(64)

The CI’s market share increased by 3 percentage points over the period considered. This, however, should be viewed in the light of the gap left on the market by the closure of ODDA in late 2002, which held a market share of around 25 % prior to its closure.

| (65) | Despite the competition from Chinese DCD and price fluctuation between 2002 and the end of the IP, the CI managed to increase its average unit sales prices to unrelated customers on the Community market by 2 % over the period considered. It should be noted, however, that these prices also include micro DCD, for which there is no competition from the Chinese exporting producers and for which higher prices can be obtained. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Sales price in the EC (Index) | 100 | 109 | 105 | 108 | 102 |

(65)

Despite the competition from Chinese DCD and price fluctuation between 2002 and the end of the IP, the CI managed to increase its average unit sales prices to unrelated customers on the Community market by 2 % over the period considered. It should be noted, however, that these prices also include micro DCD, for which there is no competition from the Chinese exporting producers and for which higher prices can be obtained.

2002

2003

2004

2005

IP

Sales price in the EC (Index)

100

109

105

108

102

4.6.4.   Profitability and cash flow

| (66) | During the period considered the profitability of the CI was always negative. Losses peaked in the IP when they were in the range of – 20 % to – 30 %. According to the CI, the reference year, 2002, has to be considered exceptional due to the particular market situation following ODDA’s closure. In 2003 the CI managed to reduce its losses despite the fact that imports from the PRC reached their peak. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Profitability | – 20 % to – 30 % | 0 % to – 10 % | – 10 % to – 20 % | – 10 % to – 20 % | – 20 % to – 30 % |

(66)

During the period considered the profitability of the CI was always negative. Losses peaked in the IP when they were in the range of – 20 % to – 30 %. According to the CI, the reference year, 2002, has to be considered exceptional due to the particular market situation following ODDA’s closure. In 2003 the CI managed to reduce its losses despite the fact that imports from the PRC reached their peak.

2002

2003

2004

2005

IP

Profitability

– 20 % to – 30 %

0 % to – 10 %

– 10 % to – 20 %

– 10 % to – 20 %

– 20 % to – 30 %

| (67) | Cash flow was always negative over the period considered with the exception of 2003, in line with the reduction of the CI’s losses in that year. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Cash flow (Index) | – 100 | 82 | – 136 | – 208 | – 244 |

(67)

Cash flow was always negative over the period considered with the exception of 2003, in line with the reduction of the CI’s losses in that year.

2002

2003

2004

2005

IP

Cash flow (Index)

– 100

82

– 136

– 208

– 244

4.6.5.   Investments, return on investments, and ability to raise capital

| (68) | The CI recorded significant levels of investment in particular in 2003. Those investments were mainly linked to the increase in production capacity, as stated above. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Investments (Index) | 100 | 171 | 69 | 44 | 54 |

(68)

The CI recorded significant levels of investment in particular in 2003. Those investments were mainly linked to the increase in production capacity, as stated above.

2002

2003

2004

2005

IP

Investments (Index)

100

171

69

44

54

| (69) | The return on investment from the production and sales of the like product was negative and decreased substantially during the period considered, reflecting the abovementioned negative trend for the profitability. | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Return on investments | – 10 % to – 20 % | 0 % to – 10 % | – 20 % to – 30 % | – 20 % to – 30 % | – 20 % to – 30 % |

(69)

The return on investment from the production and sales of the like product was negative and decreased substantially during the period considered, reflecting the abovementioned negative trend for the profitability.

2002

2003

2004

2005

IP

Return on investments

– 10 % to – 20 %

0 % to – 10 %

– 20 % to – 30 %

– 20 % to – 30 %

– 20 % to – 30 %

| (70) | The CI’s ability to raise capital was not found to be significantly affected during the period considered given that DCD represented only a small fraction of the CI’s total business. |
| --- | --- |

(70)

The CI’s ability to raise capital was not found to be significantly affected during the period considered given that DCD represented only a small fraction of the CI’s total business.

4.6.6.   Employment, productivity, growth and wages

| (71) | The evolution of employment, productivity and labour costs of the CI were as follows: | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Number of employees (Index) | 100 | 128 | 122 | 117 | 114 |
| Productivity (tonnes/employee) (Index) | 100 | 104 | 118 | 106 | 121 |
| Labour costs per employee (Index) | 100 | 100 | 103 | 103 | 106 |

(71)

The evolution of employment, productivity and labour costs of the CI were as follows:

2002

2003

2004

2005

IP

Number of employees (Index)

100

128

122

117

114

Productivity (tonnes/employee) (Index)

100

104

118

106

121

Labour costs per employee (Index)

100

100

103

103

106

| (72) | The CI increased its number of employees between 2002 and the IP by 14 %. In parallel, productivity increased as a result of the rationalisation process and increased output. |
| --- | --- |

(72)

The CI increased its number of employees between 2002 and the IP by 14 %. In parallel, productivity increased as a result of the rationalisation process and increased output.

| (73) | Average wage levels increased by 6 % during the period considered. |
| --- | --- |

(73)

Average wage levels increased by 6 % during the period considered.

4.6.7.   Magnitude of the dumping margin and recovery from past dumping

| (74) | As concerns the impact on the Community industry of the magnitude of the actual dumping margin, given the volume and prices of the dumped imports from the PRC, this impact cannot be considered negligible. |
| --- | --- |

(74)

As concerns the impact on the Community industry of the magnitude of the actual dumping margin, given the volume and prices of the dumped imports from the PRC, this impact cannot be considered negligible.

| (75) | Furthermore, there were no indications that the Community industry was recovering from the effects of any past dumping. |
| --- | --- |

(75)

Furthermore, there were no indications that the Community industry was recovering from the effects of any past dumping.

4.7.   Conclusion on injury

| (76) | Apart from a peak in 2003, consumption remained stable over the period considered. During the same period the volume of dumped imports of the product concerned increased dramatically and likewise their market share rose from between 15 % and 25 % in 2002 to between 40 % and 50 % in the IP. The average prices of the dumped imports were significantly lower than those of the CI throughout the period considered. On a weighted average basis, the prices of these imports undercut those of the CI by 25-35 % in the IP. |
| --- | --- |

(76)

Apart from a peak in 2003, consumption remained stable over the period considered. During the same period the volume of dumped imports of the product concerned increased dramatically and likewise their market share rose from between 15 % and 25 % in 2002 to between 40 % and 50 % in the IP. The average prices of the dumped imports were significantly lower than those of the CI throughout the period considered. On a weighted average basis, the prices of these imports undercut those of the CI by 25-35 % in the IP.

| (77) | During the same period the Community industry suffered severe losses, reaching their peak in the IP when they ranged between – 20 % and – 30 %. In line with the negative development in profitability, the related indicators such as return on investments and cash flow showed a negative trend. |
| --- | --- |

(77)

During the same period the Community industry suffered severe losses, reaching their peak in the IP when they ranged between – 20 % and – 30 %. In line with the negative development in profitability, the related indicators such as return on investments and cash flow showed a negative trend.

| (78) | Certain injury indicators, such as the production volumes, production capacity, sales volumes, market share and selling prices on the Community market showed a positive trend during the period considered. In this assessment the captive use was not taken into account as it remained stable throughout the period considered, hence not having any impact on the injury analysis. |
| --- | --- |

(78)

Certain injury indicators, such as the production volumes, production capacity, sales volumes, market share and selling prices on the Community market showed a positive trend during the period considered. In this assessment the captive use was not taken into account as it remained stable throughout the period considered, hence not having any impact on the injury analysis.

| (79) | However, the positive development of certain injury indicators should be viewed in the light of the closure of the Norwegian producer, ODDA, in late 2002 and the subsequent competition between the CI and the Chinese exporting producers to take over the market share held by ODDA. In fact, it is noteworthy that the Chinese imports filled most of the gap left by ODDA’s closure: Initially, in 2003, the CI managed to capture around 1/3 of the market share held by ODDA. This diminished considerably to about 1/7 in the IP. Thus, even though some indicators showed a slightly positive trend, in reality they could have been expected to develop much more favourably, had they not been affected by the dumped imports from the PRC. In any event, the indicators related to the financial performance of the Community industry (profit, ROI, cash flow) showed such a negative trend that they outweigh largely any positive developments. Indeed, as its financial situation shows, the Community industry could not benefit at all from ODDA’s cessation of production and is now in a state where its viability is at stake in the absence of any measures. |
| --- | --- |

(79)

However, the positive development of certain injury indicators should be viewed in the light of the closure of the Norwegian producer, ODDA, in late 2002 and the subsequent competition between the CI and the Chinese exporting producers to take over the market share held by ODDA. In fact, it is noteworthy that the Chinese imports filled most of the gap left by ODDA’s closure: Initially, in 2003, the CI managed to capture around 1/3 of the market share held by ODDA. This diminished considerably to about 1/7 in the IP. Thus, even though some indicators showed a slightly positive trend, in reality they could have been expected to develop much more favourably, had they not been affected by the dumped imports from the PRC. In any event, the indicators related to the financial performance of the Community industry (profit, ROI, cash flow) showed such a negative trend that they outweigh largely any positive developments. Indeed, as its financial situation shows, the Community industry could not benefit at all from ODDA’s cessation of production and is now in a state where its viability is at stake in the absence of any measures.

| (80) | In the light of the foregoing, it is concluded that the CI suffered material injury within the meaning of Article 3 of the basic Regulation. |
| --- | --- |

(80)

In the light of the foregoing, it is concluded that the CI suffered material injury within the meaning of Article 3 of the basic Regulation.

5.   CAUSATION

5.1.   Introduction

| (81) | In accordance with Article 3(6) and (7) of the basic Regulation, it was examined whether there was a causal link between the dumped imports of the product concerned originating in the PRC and the injury suffered by the CI. Known factors other than the dumped imports, which could at the same time have injured the CI, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports. |
| --- | --- |

(81)

In accordance with Article 3(6) and (7) of the basic Regulation, it was examined whether there was a causal link between the dumped imports of the product concerned originating in the PRC and the injury suffered by the CI. Known factors other than the dumped imports, which could at the same time have injured the CI, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports.

5.2.   Effect of the dumped imports

| (82) | It is recalled that all imports of the product concerned from the PRC refer to the standard type of DCD, which also accounts for the majority of the CI’s sales on the Community market. CI’s sales of the so-called micro DCD, not exported by the Chinese producers, had to be excluded when calculating the undercutting. |
| --- | --- |

(82)

It is recalled that all imports of the product concerned from the PRC refer to the standard type of DCD, which also accounts for the majority of the CI’s sales on the Community market. CI’s sales of the so-called micro DCD, not exported by the Chinese producers, had to be excluded when calculating the undercutting.

| (83) | Imports from the PRC increased by 141 % over the period considered. As a result, their market share increased from 15-25 % in 2002 to 40-50 % in the IP. It is worth noting that the volume of dumped imports peaked in 2003, at 6 173 tonnes, reflecting the effects of the closure of the Norwegian producer, then fell in 2004 to steadily increase again in 2005 and in the IP, when they reached 6 002 tonnes.
  Table 1
  Imports from the PRC |
| --- | --- |

(83)

Imports from the PRC increased by 141 % over the period considered. As a result, their market share increased from 15-25 % in 2002 to 40-50 % in the IP. It is worth noting that the volume of dumped imports peaked in 2003, at 6 173 tonnes, reflecting the effects of the closure of the Norwegian producer, then fell in 2004 to steadily increase again in 2005 and in the IP, when they reached 6 002 tonnes.

Table 1

Imports from the PRC

| (84) | The average prices of the dumped imports were significantly lower than those of the Community industry, undercutting them by 25-35 % in the IP. The Chinese export prices decreased by 11 % during the period considered but did not follow a clear downward trend. Indeed, the Chinese exporting producers decreased their prices by 7 % in 2003, in their effort to take over the market share held by ODDA. Having obtained the majority of it, they increased their prices by 25 % in 2004, decreased them by 27 % in 2005 and then increased them again by 4 % in the IP. |
| --- | --- |

(84)

The average prices of the dumped imports were significantly lower than those of the Community industry, undercutting them by 25-35 % in the IP. The Chinese export prices decreased by 11 % during the period considered but did not follow a clear downward trend. Indeed, the Chinese exporting producers decreased their prices by 7 % in 2003, in their effort to take over the market share held by ODDA. Having obtained the majority of it, they increased their prices by 25 % in 2004, decreased them by 27 % in 2005 and then increased them again by 4 % in the IP.

| (85) | At the same time, while the prices of the dumped imports decreased by 11 % over the period considered, the CI managed to keep its overall prices relatively stable (increase of 2 %). However, it should be borne in mind that these prices include micro DCD for which there is no competition from the PRC and which has a much higher price. Thus, the average annual CI sales prices are affected by the variation in sales volume and prices of standard and micro DCD respectively.
  Table 2
  Evolution of unit prices |
| --- | --- |

(85)

At the same time, while the prices of the dumped imports decreased by 11 % over the period considered, the CI managed to keep its overall prices relatively stable (increase of 2 %). However, it should be borne in mind that these prices include micro DCD for which there is no competition from the PRC and which has a much higher price. Thus, the average annual CI sales prices are affected by the variation in sales volume and prices of standard and micro DCD respectively.

Table 2

Evolution of unit prices

| (86) | In view of the significant undercutting established for the standard DCD, which amounted to 25-35 % in the IP, it is clear, that the dumped imports have exerted a strong downward pressure on the CI’s sales prices for the standard DCD, which accounts for the majority of its sales, and have thus prevented the CI from setting its prices at levels which would cover its production costs. This in turn has had a negative impact on the CI’s profitability, causing a substantial part of the significant losses throughout the period considered. |
| --- | --- |

(86)

In view of the significant undercutting established for the standard DCD, which amounted to 25-35 % in the IP, it is clear, that the dumped imports have exerted a strong downward pressure on the CI’s sales prices for the standard DCD, which accounts for the majority of its sales, and have thus prevented the CI from setting its prices at levels which would cover its production costs. This in turn has had a negative impact on the CI’s profitability, causing a substantial part of the significant losses throughout the period considered.

| (87) | Since the CI made losses on sales of DCD already in 2002, it was examined whether the losses are structural in nature rather than caused solely by the dumped imports. In this respect, it has to be borne in mind that the dumped imports had a strong presence on the Community market already in 2002, with a market share of 15-25 %. Furthermore, the CI provided evidence which showed that due to a cost-cutting programme it managed to keep its unit costs stable over the period considered, despite the increase in raw material prices. However, because of the price depression caused by the Chinese imports this did not have the desired impact of reducing losses but only prevented them from increasing. |
| --- | --- |

(87)

Since the CI made losses on sales of DCD already in 2002, it was examined whether the losses are structural in nature rather than caused solely by the dumped imports. In this respect, it has to be borne in mind that the dumped imports had a strong presence on the Community market already in 2002, with a market share of 15-25 %. Furthermore, the CI provided evidence which showed that due to a cost-cutting programme it managed to keep its unit costs stable over the period considered, despite the increase in raw material prices. However, because of the price depression caused by the Chinese imports this did not have the desired impact of reducing losses but only prevented them from increasing.

| (88) | Thanks to the cost cutting efforts and ODDA’s exit from the market in late 2002, the CI was in the process of recovering prior to the peak in the Chinese imports in 2003. Following this peak, which allowed the Chinese to take over the majority of ODDA’s market share, the CI’s losses increased to between – 10 % and – 20 % in 2004 and continued to increase steadily in 2005 and in the IP, in line with the increase in dumped import volumes and the decrease in the average import prices.
  Table 3
  Profitability of CI |
| --- | --- |

(88)

Thanks to the cost cutting efforts and ODDA’s exit from the market in late 2002, the CI was in the process of recovering prior to the peak in the Chinese imports in 2003. Following this peak, which allowed the Chinese to take over the majority of ODDA’s market share, the CI’s losses increased to between – 10 % and – 20 % in 2004 and continued to increase steadily in 2005 and in the IP, in line with the increase in dumped import volumes and the decrease in the average import prices.

Table 3

Profitability of CI

| (89) | The causal link between the dumped imports and the deterioration of the CI’s economic situation appears to be further reinforced by the fact that the CI is profitable on the type (micro DCD) where there are no Chinese imports whereas it makes heavy losses on the standard type of DCD where it faces unfair competition from the PRC. |
| --- | --- |

(89)

The causal link between the dumped imports and the deterioration of the CI’s economic situation appears to be further reinforced by the fact that the CI is profitable on the type (micro DCD) where there are no Chinese imports whereas it makes heavy losses on the standard type of DCD where it faces unfair competition from the PRC.

| (90) | In view of the above, and in particular the development of the market share of the dumped imports, as demonstrated below, at prices which significantly undercut the prices of the CI, it is concluded that the dumped imports played a determining role in the injurious situation of the Community industry.
  Table 4
  Development of market shares | 2002 | 2003 | 2004 | 2005 | IP |
| --- | --- | --- | --- | --- | --- | --- |
| Dumped imports from PRC | 15-25 % | 35-45 % | 30-40 % | 35-45 % | 40-50 % |
| Community industry | 50-60 % | 50-60 % | 60-70 % | 50-60 % | 50-60 % |

(90)

In view of the above, and in particular the development of the market share of the dumped imports, as demonstrated below, at prices which significantly undercut the prices of the CI, it is concluded that the dumped imports played a determining role in the injurious situation of the Community industry.

Table 4

Development of market shares

2002

2003

2004

2005

IP

Dumped imports from PRC

15-25 %

35-45 %

30-40 %

35-45 %

40-50 %

Community industry

50-60 %

50-60 %

60-70 %

50-60 %

50-60 %

5.3.   Effect of other factors

5.3.1.   Preliminary remark

| (91) | In view of a stable Community consumption over the period considered and the absence of imports from any other third countries, the only known producers of DCD being the CI and a few Chinese producers, there are very few other known factors that could have contributed to the injurious situation of the CI. |
| --- | --- |

(91)

In view of a stable Community consumption over the period considered and the absence of imports from any other third countries, the only known producers of DCD being the CI and a few Chinese producers, there are very few other known factors that could have contributed to the injurious situation of the CI.

5.3.2.   Export performance of the Community industry

| (92) | It was examined whether exports by the CI to non-EU countries may have contributed to the injury suffered during the period considered. Exports to non-EU countries accounted for a significant proportion, between 30 % and 50 % of the CI’s sales of the product concerned during the period considered. Exports increased substantially by 58 % in volume between 2002 and the IP whereas the average unit price decreased by 2 %. This shows that despite the fierce competition from the Chinese exporters also on markets outside the Community, there is a strong demand for DCD produced by the Community industry, even at prices well above those of the Chinese exporters, although, as explained above, the higher average prices can be explained by the higher prices obtained for micro DCD. |
| --- | --- |

(92)

It was examined whether exports by the CI to non-EU countries may have contributed to the injury suffered during the period considered. Exports to non-EU countries accounted for a significant proportion, between 30 % and 50 % of the CI’s sales of the product concerned during the period considered. Exports increased substantially by 58 % in volume between 2002 and the IP whereas the average unit price decreased by 2 %. This shows that despite the fierce competition from the Chinese exporters also on markets outside the Community, there is a strong demand for DCD produced by the Community industry, even at prices well above those of the Chinese exporters, although, as explained above, the higher average prices can be explained by the higher prices obtained for micro DCD.

| (93) | In order to be able to compete with the low-priced Chinese standard DCD also on non-EU markets, the CI’s export sales were made at prices well below cost of production, thus undermining its overall profitability. However, these exports did not directly affect profitability on the Community market. |
| --- | --- |

(93)

In order to be able to compete with the low-priced Chinese standard DCD also on non-EU markets, the CI’s export sales were made at prices well below cost of production, thus undermining its overall profitability. However, these exports did not directly affect profitability on the Community market.

5.3.3.   Alleged self-inflicted injury

| (94) | Given that the Community industry has made losses on the product concerned for several years, and nevertheless decided to invest in additional capacity in 2003 and 2004 leading to increased production volumes and stocks, it was examined whether (i) the losses are structural in nature and (ii) the decision to invest in additional capacity has contributed to the injurious situation of the CI. The latter argument was also brought forward by one importer, who claimed that the CI’s decision to increase its production capacity by one third with the knowledge of already existing imports from China has added significant pressure on the market. |
| --- | --- |

(94)

Given that the Community industry has made losses on the product concerned for several years, and nevertheless decided to invest in additional capacity in 2003 and 2004 leading to increased production volumes and stocks, it was examined whether (i) the losses are structural in nature and (ii) the decision to invest in additional capacity has contributed to the injurious situation of the CI. The latter argument was also brought forward by one importer, who claimed that the CI’s decision to increase its production capacity by one third with the knowledge of already existing imports from China has added significant pressure on the market.

| (95) | With regard to the levels of losses, data obtained from the CI demonstrates that due to its cost-cutting programme the CI has managed to keep its unit costs stable over the period considered, despite the rise in raw material prices. However, the CI is suffering from some cost disadvantages, such as three different production sites, no proximity to coal mines and expensive production process, even though it is not possible to compare the CI’s cost structure with that of any other DCD producer, since none of the Chinese exporting producers obtained MET. Nevertheless, the fact that the CI made a small profit in 2001 and also that it is profitable on the product type (micro DCD) not exported by the Chinese producers clearly shows that in normal conditions of competition, the CI might be in a much better shape, and therefore that the amount of losses is not purely structural. |
| --- | --- |

(95)

With regard to the levels of losses, data obtained from the CI demonstrates that due to its cost-cutting programme the CI has managed to keep its unit costs stable over the period considered, despite the rise in raw material prices. However, the CI is suffering from some cost disadvantages, such as three different production sites, no proximity to coal mines and expensive production process, even though it is not possible to compare the CI’s cost structure with that of any other DCD producer, since none of the Chinese exporting producers obtained MET. Nevertheless, the fact that the CI made a small profit in 2001 and also that it is profitable on the product type (micro DCD) not exported by the Chinese producers clearly shows that in normal conditions of competition, the CI might be in a much better shape, and therefore that the amount of losses is not purely structural.

| (96) | With regard to the CI’s decision to increase its production capacity, it has to be noted that this occurred after the closure of ODDA, which, prior to its exit, held a significant market share on the Community market. In the absence of the Chinese imports which managed to take over the majority of ODDA’s lost market share due to dumped prices, the CI could have expected to capture a much larger portion of it. On the other hand, an operator can never expect that all increase in consumption in its area will turn to it for supply and not to foreign sources. |
| --- | --- |

(96)

With regard to the CI’s decision to increase its production capacity, it has to be noted that this occurred after the closure of ODDA, which, prior to its exit, held a significant market share on the Community market. In the absence of the Chinese imports which managed to take over the majority of ODDA’s lost market share due to dumped prices, the CI could have expected to capture a much larger portion of it. On the other hand, an operator can never expect that all increase in consumption in its area will turn to it for supply and not to foreign sources.

| (97) | From the above, it is clear that even if the difficult financial and economic situation of the CI cannot be considered to be self-inflicted, the lack of profitability on the product concerned is also partly the result of high production costs and investment decisions. |
| --- | --- |

(97)

From the above, it is clear that even if the difficult financial and economic situation of the CI cannot be considered to be self-inflicted, the lack of profitability on the product concerned is also partly the result of high production costs and investment decisions.

5.4.   Conclusion on causation

| (98) | In conclusion, it is confirmed that the Chinese dumped imports, which increased their market share significantly over the period considered, at prices undercutting those of the CI have substantially contributed to the difficult financial and economic situation of the CI. This, viewed in isolation, caused material injury. However, it cannot be denied that the significant losses incurred throughout the period considered have also to be partly attributed to the CI’s cost structure. |
| --- | --- |

(98)

In conclusion, it is confirmed that the Chinese dumped imports, which increased their market share significantly over the period considered, at prices undercutting those of the CI have substantially contributed to the difficult financial and economic situation of the CI. This, viewed in isolation, caused material injury. However, it cannot be denied that the significant losses incurred throughout the period considered have also to be partly attributed to the CI’s cost structure.

| (99) | The investigation showed that the other known factors, such as costs, increased capacity and export performance of the Community industry even if they have contributed to the injury do not break the causal link between the injury suffered by the CI and the dumped imports from the PRC. |
| --- | --- |

(99)

The investigation showed that the other known factors, such as costs, increased capacity and export performance of the Community industry even if they have contributed to the injury do not break the causal link between the injury suffered by the CI and the dumped imports from the PRC.

| (100) | It is therefore concluded that the dumped imports originating in the PRC have caused material injury to the Community industry within the meaning of Article 3(6) of the basic Regulation. |
| --- | --- |

(100)

It is therefore concluded that the dumped imports originating in the PRC have caused material injury to the Community industry within the meaning of Article 3(6) of the basic Regulation.

6.   COMMUNITY INTEREST

| (101) | In accordance with Article 21 of the basic Regulation it has been examined whether compelling reasons exist for concluding that it is not in the Community interest to impose anti-dumping measures in this case. The likely impact of measures on all interested parties and also the consequences of not imposing measures were analysed. |
| --- | --- |

(101)

In accordance with Article 21 of the basic Regulation it has been examined whether compelling reasons exist for concluding that it is not in the Community interest to impose anti-dumping measures in this case. The likely impact of measures on all interested parties and also the consequences of not imposing measures were analysed.

6.1.   Interest of the Community industry

| (102) | The injurious situation of the Community industry resulted from its difficulty to compete with the dumped imports, which increased sharply over the period considered and caused strong price depression on the Community market, preventing the Community industry from setting its prices at a level which would have covered its costs. |
| --- | --- |

(102)

The injurious situation of the Community industry resulted from its difficulty to compete with the dumped imports, which increased sharply over the period considered and caused strong price depression on the Community market, preventing the Community industry from setting its prices at a level which would have covered its costs.

| (103) | It is considered that the imposition of measures would enable the Community industry to increase the price of DCD to a level that would allow it to turn the business profitable and thus maintain its presence on the Community market. |
| --- | --- |

(103)

It is considered that the imposition of measures would enable the Community industry to increase the price of DCD to a level that would allow it to turn the business profitable and thus maintain its presence on the Community market.

| (104) | Should measures not be imposed, the Community industry would be forced to continue to align its prices with those of the dumped imports in order to stay on the market. This would result in further financial losses. As the current situation, characterised by a lack of profitability over several years, is not sustainable, the non-imposition of measures would eventually lead to the disappearance of this product line and consequent job losses. |
| --- | --- |

(104)

Should measures not be imposed, the Community industry would be forced to continue to align its prices with those of the dumped imports in order to stay on the market. This would result in further financial losses. As the current situation, characterised by a lack of profitability over several years, is not sustainable, the non-imposition of measures would eventually lead to the disappearance of this product line and consequent job losses.

| (105) | In view of the above, it is concluded that the imposition of anti-dumping measures is in the interest of the Community industry. |
| --- | --- |

(105)

In view of the above, it is concluded that the imposition of anti-dumping measures is in the interest of the Community industry.

6.2.   Competition and trade distorting effects

| (106) | The cooperating exporting producers, as well as some users and importers have argued that the imposition of anti-dumping measures would exclude the Chinese imports from the Community market and, in the absence of imports from any other countries, result in the monopoly of the Community industry. The exporting producers and one importer have further pointed to the risk of a critical supply situation on the Community market should measures be imposed at a level which would prohibit imports from the PRC. |
| --- | --- |

(106)

The cooperating exporting producers, as well as some users and importers have argued that the imposition of anti-dumping measures would exclude the Chinese imports from the Community market and, in the absence of imports from any other countries, result in the monopoly of the Community industry. The exporting producers and one importer have further pointed to the risk of a critical supply situation on the Community market should measures be imposed at a level which would prohibit imports from the PRC.

| (107) | It is considered, however, that in view of the strong market position that the Chinese exporting producers have obtained due to dumping practices and prices significantly undercutting those of the Community industry, the imposition of measures at the level described below would not drive them out of the Community market, but merely restore a level playing field allowing the Community industry and the Chinese exporting producers to compete on equal terms. Moreover, competition between the Chinese exporters and the Community industry on the Community market will remain, thus guaranteeing continuous supply from several sources. |
| --- | --- |

(107)

It is considered, however, that in view of the strong market position that the Chinese exporting producers have obtained due to dumping practices and prices significantly undercutting those of the Community industry, the imposition of measures at the level described below would not drive them out of the Community market, but merely restore a level playing field allowing the Community industry and the Chinese exporting producers to compete on equal terms. Moreover, competition between the Chinese exporters and the Community industry on the Community market will remain, thus guaranteeing continuous supply from several sources.

| (108) | On the other hand, should anti-dumping measures not be imposed, it cannot be excluded that the Community industry would have to cease its manufacturing activities for this particular business, leading to the opposite scenario, i.e. the monopoly of the Chinese imports. Both scenarios, i.e. a monopoly by either of the two sources of supply have to be avoided. Indeed, both cooperating users have emphasised the need for two sources of supply. |
| --- | --- |

(108)

On the other hand, should anti-dumping measures not be imposed, it cannot be excluded that the Community industry would have to cease its manufacturing activities for this particular business, leading to the opposite scenario, i.e. the monopoly of the Chinese imports. Both scenarios, i.e. a monopoly by either of the two sources of supply have to be avoided. Indeed, both cooperating users have emphasised the need for two sources of supply.

| (109) | Hence, it is considered that the imposition of anti-dumping measures, at the level described below, would guarantee the maintenance of two sources of supply on the Community market. |
| --- | --- |

(109)

Hence, it is considered that the imposition of anti-dumping measures, at the level described below, would guarantee the maintenance of two sources of supply on the Community market.

6.3.   Interest of users

| (110) | Two industrial users, one active in the pharmaceuticals sector and the other one in leather tanning, cooperated in the investigation. Both users purchase the product concerned directly from the PRC and also from the Community industry. A third user, producing specialised paper chemicals, reacted to the disclosure of the definitive findings of the investigation by providing comments on the expected effects of the imposition of anti-dumping duties. |
| --- | --- |

(110)

Two industrial users, one active in the pharmaceuticals sector and the other one in leather tanning, cooperated in the investigation. Both users purchase the product concerned directly from the PRC and also from the Community industry. A third user, producing specialised paper chemicals, reacted to the disclosure of the definitive findings of the investigation by providing comments on the expected effects of the imposition of anti-dumping duties.

| (111) | The user in the pharmaceuticals sector, where DCD is an important raw material in the production of metformine, a diabetes medicine, argued that any price increases resulting from the imposition of anti-dumping measures would have a negative effect on its competitiveness vis-à-vis producers outside the Community, mainly in India. Given that DCD accounts for a relatively important proportion of its cost, this user estimates that even a small price increase of DCD would affect the sales prices of metformine, and consequently have a negative impact on its market shares and competitiveness. However, the information made available to the Commission on the above user’s costs and profitability indicates that the duty at the proposed level could at least partly be absorbed. |
| --- | --- |

(111)

The user in the pharmaceuticals sector, where DCD is an important raw material in the production of metformine, a diabetes medicine, argued that any price increases resulting from the imposition of anti-dumping measures would have a negative effect on its competitiveness vis-à-vis producers outside the Community, mainly in India. Given that DCD accounts for a relatively important proportion of its cost, this user estimates that even a small price increase of DCD would affect the sales prices of metformine, and consequently have a negative impact on its market shares and competitiveness. However, the information made available to the Commission on the above user’s costs and profitability indicates that the duty at the proposed level could at least partly be absorbed.

| (112) | In its comments to the disclosure of the definitive findings of the investigation, the above user argued that it would not be able to absorb the increase in raw material costs resulting from the imposition of an anti-dumping duty at the proposed level. It claimed that in order to maintain its competitiveness and stay on the market it has been obliged to constantly reduce its production costs. To this end it already had to restructure in the past. In addition, it has negotiated price reductions with its main supplier, the Community industry. The same user concludes that the imposition of an anti-dumping duty at the proposed level presents a concrete risk that it will have to close down its two production sites in France, both specialised in the production of metformine. Allegedly, this would result in 270 people losing their jobs. |
| --- | --- |

(112)

In its comments to the disclosure of the definitive findings of the investigation, the above user argued that it would not be able to absorb the increase in raw material costs resulting from the imposition of an anti-dumping duty at the proposed level. It claimed that in order to maintain its competitiveness and stay on the market it has been obliged to constantly reduce its production costs. To this end it already had to restructure in the past. In addition, it has negotiated price reductions with its main supplier, the Community industry. The same user concludes that the imposition of an anti-dumping duty at the proposed level presents a concrete risk that it will have to close down its two production sites in France, both specialised in the production of metformine. Allegedly, this would result in 270 people losing their jobs.

| (113) | The Commission maintains, however, that even if it cannot be contested that the imposition of duties would affect the above user negatively in terms of lower margins with regard to its sales on the Community market, it should be stressed that a significant portion of the metformine produced by this user in the Community is further exported, hence exempted from any duties. Thus the imposition of a duty would only affect part of the metformine business. Moreover, in view of the profit margin disclosed by this user in its questionnaire response, it is clear that the duty could at least partly be absorbed and should not lead to significant price increases of metformine sold on the Community market. Hence, any risk of job losses seems very distant. It should also be noted, that the non-imposition of duties could lead to a situation where this user’s main supplier would have to close down its activities, leaving this user with only one source of supply. |
| --- | --- |

(113)

The Commission maintains, however, that even if it cannot be contested that the imposition of duties would affect the above user negatively in terms of lower margins with regard to its sales on the Community market, it should be stressed that a significant portion of the metformine produced by this user in the Community is further exported, hence exempted from any duties. Thus the imposition of a duty would only affect part of the metformine business. Moreover, in view of the profit margin disclosed by this user in its questionnaire response, it is clear that the duty could at least partly be absorbed and should not lead to significant price increases of metformine sold on the Community market. Hence, any risk of job losses seems very distant. It should also be noted, that the non-imposition of duties could lead to a situation where this user’s main supplier would have to close down its activities, leaving this user with only one source of supply.

| (114) | The user in the paper chemicals sector also alleged that an anti-dumping duty at the proposed level would reduce its capability to stay competitive on the Community market, since its competitors outside the Community would continue to have access to DCD without having to pay any anti-dumping duties. However, since this user did not submit a questionnaire reply or further substantiate its claim, it is impossible to assess or quantify the effect of a duty on its business. |
| --- | --- |

(114)

The user in the paper chemicals sector also alleged that an anti-dumping duty at the proposed level would reduce its capability to stay competitive on the Community market, since its competitors outside the Community would continue to have access to DCD without having to pay any anti-dumping duties. However, since this user did not submit a questionnaire reply or further substantiate its claim, it is impossible to assess or quantify the effect of a duty on its business.

| (115) | It is recalled, however, that as described above, both cooperating users underlined the importance of maintaining two sources of supply. Therefore, it is considered that the imposition of anti-dumping measures at the level explained below would guarantee the long-term existence of alternative supply sources for the end-user sectors. The non-imposition of measures, on the other hand, would entail the risk that one supply source would be eliminated. |
| --- | --- |

(115)

It is recalled, however, that as described above, both cooperating users underlined the importance of maintaining two sources of supply. Therefore, it is considered that the imposition of anti-dumping measures at the level explained below would guarantee the long-term existence of alternative supply sources for the end-user sectors. The non-imposition of measures, on the other hand, would entail the risk that one supply source would be eliminated.

6.4.   Interest of unrelated importers

| (116) | Four importers, one of them also using the product concerned, cooperated in the investigation. The largest of them, whose imports represented around 30 % of the totality of DCD imported from the PRC in the IP, pointed out that the imposition of anti-dumping duties would have an inevitable negative impact on its activities, leading eventually to its withdrawal from the DCD business, since in the absence of DCD production in other third countries it does not have an alternative supply source. This could lead to some organisational changes within the company. |
| --- | --- |

(116)

Four importers, one of them also using the product concerned, cooperated in the investigation. The largest of them, whose imports represented around 30 % of the totality of DCD imported from the PRC in the IP, pointed out that the imposition of anti-dumping duties would have an inevitable negative impact on its activities, leading eventually to its withdrawal from the DCD business, since in the absence of DCD production in other third countries it does not have an alternative supply source. This could lead to some organisational changes within the company.

| (117) | It cannot be excluded that the imposition of anti-dumping measures would affect some importers negatively. However, since anti-dumping measures would only restore competition on the Community market, and moreover, since end-users have emphasised the need for two sources of supply, it is considered that anti-dumping measures at the level proposed below should not prevent importers from selling the product concerned in the Community. |
| --- | --- |

(117)

It cannot be excluded that the imposition of anti-dumping measures would affect some importers negatively. However, since anti-dumping measures would only restore competition on the Community market, and moreover, since end-users have emphasised the need for two sources of supply, it is considered that anti-dumping measures at the level proposed below should not prevent importers from selling the product concerned in the Community.

| (118) | In addition, since importers supply several different end-user sectors, where DCD constitutes a variable proportion of the cost of the end-product, it is considered that any price increases resulting from the imposition of anti-dumping measures could at least partly be passed on to users. It should also be noted in this context, that according to the information available, importers do not supply the biggest end-user sector, i.e. the pharmaceuticals, where allegedly any additional cost increases would be difficult to pass on to end-customers due to the competition with third countries. |
| --- | --- |

(118)

In addition, since importers supply several different end-user sectors, where DCD constitutes a variable proportion of the cost of the end-product, it is considered that any price increases resulting from the imposition of anti-dumping measures could at least partly be passed on to users. It should also be noted in this context, that according to the information available, importers do not supply the biggest end-user sector, i.e. the pharmaceuticals, where allegedly any additional cost increases would be difficult to pass on to end-customers due to the competition with third countries.

| (119) | One importer which supplies DCD to the textile, paper, water treatment and fertiliser industries claimed that these industries do not require the higher quality DCD produced by the CI. It further argued that the above industries would have difficulties to pass any additional cost increases to their end-customers. |
| --- | --- |

(119)

One importer which supplies DCD to the textile, paper, water treatment and fertiliser industries claimed that these industries do not require the higher quality DCD produced by the CI. It further argued that the above industries would have difficulties to pass any additional cost increases to their end-customers.

| (120) | It is not contested that the DCD produced by the CI may be of superior quality compared to the DCD produced by the Chinese exporting producers. However, the investigation has shown that the product concerned and the like product are essentially the same and have the same basic chemical, physical and technical characteristics and the same uses. Regarding the claim that the above industries could not pass an increase in raw material prices to their customers, it must be stressed, that in the absence of cooperation by these end-users this claim cannot be assessed and must hence be disregarded. |
| --- | --- |

(120)

It is not contested that the DCD produced by the CI may be of superior quality compared to the DCD produced by the Chinese exporting producers. However, the investigation has shown that the product concerned and the like product are essentially the same and have the same basic chemical, physical and technical characteristics and the same uses. Regarding the claim that the above industries could not pass an increase in raw material prices to their customers, it must be stressed, that in the absence of cooperation by these end-users this claim cannot be assessed and must hence be disregarded.

| (121) | It is also noteworthy that the profit margins amongst the cooperating importers vary. According to data provided by the importers at least part of any price increases resulting from the imposition of anti-dumping duties could be absorbed. |
| --- | --- |

(121)

It is also noteworthy that the profit margins amongst the cooperating importers vary. According to data provided by the importers at least part of any price increases resulting from the imposition of anti-dumping duties could be absorbed.

| (122) | Therefore, it is considered that the imposition of anti-dumping measures would not have a serious negative impact on importers. |
| --- | --- |

(122)

Therefore, it is considered that the imposition of anti-dumping measures would not have a serious negative impact on importers.

6.5.   Conclusion on Community interest

| (123) | The imposition of anti-dumping measures can be expected to enable the Community industry to regain profitability of the DCD business, thus allowing it to stay on the market. In view of the constantly deteriorating financial situation of the Community industry which has turned the entire business line unprofitable, there is a high risk that should measures not be imposed, the Community industry would have to consider withdrawing from the DCD business, resulting in inevitable job losses. This would create a monopoly for the Chinese exporting producers, which would be detrimental to the end-users of DCD, who have underlined the importance of maintaining a source of supply in the Community. |
| --- | --- |

(123)

The imposition of anti-dumping measures can be expected to enable the Community industry to regain profitability of the DCD business, thus allowing it to stay on the market. In view of the constantly deteriorating financial situation of the Community industry which has turned the entire business line unprofitable, there is a high risk that should measures not be imposed, the Community industry would have to consider withdrawing from the DCD business, resulting in inevitable job losses. This would create a monopoly for the Chinese exporting producers, which would be detrimental to the end-users of DCD, who have underlined the importance of maintaining a source of supply in the Community.

| (124) | In view of the significant undercutting established for the dumped imports, it is considered that the imposition of anti-dumping measures would merely restore a level playing field, maintaining two sources of supply for the users. |
| --- | --- |

(124)

In view of the significant undercutting established for the dumped imports, it is considered that the imposition of anti-dumping measures would merely restore a level playing field, maintaining two sources of supply for the users.

| (125) | It is therefore concluded that there are no compelling reasons on the grounds of Community interest not to impose anti-dumping measures. |
| --- | --- |

(125)

It is therefore concluded that there are no compelling reasons on the grounds of Community interest not to impose anti-dumping measures.

7.   DEFINITIVE ANTI-DUMPING MEASURES

7.1.   Injury elimination level

| (126) | In view of the findings as described above and in order to adequately reflect the specific market situation of DCD, it is considered appropriate to adopt anti-dumping measures. |
| --- | --- |

(126)

In view of the findings as described above and in order to adequately reflect the specific market situation of DCD, it is considered appropriate to adopt anti-dumping measures.

| (127) | The measures should be imposed at a level sufficient to restore a situation of fair competition between the CI and the exporting producers in the PRC. |
| --- | --- |

(127)

The measures should be imposed at a level sufficient to restore a situation of fair competition between the CI and the exporting producers in the PRC.

| (128) | It has been considered that the circumstances of this particular case necessitate a special approach for the determination of the injury elimination level. In this respect there are three significant aspects that must be taken into account:






  (i) | given the conclusion on causation, the measures should not compensate for factors, which cannot be attributed to the dumped imports. However, it is impossible to precisely determine the contribution of these elements; |
| --- | --- | --- |

(128)

It has been considered that the circumstances of this particular case necessitate a special approach for the determination of the injury elimination level. In this respect there are three significant aspects that must be taken into account:

(i)

given the conclusion on causation, the measures should not compensate for factors, which cannot be attributed to the dumped imports. However, it is impossible to precisely determine the contribution of these elements;

| (ii) | the dumping margin was calculated in an exceptional way: since MET/IT could not be granted to the cooperating exporting producers in the PRC and in the absence of an analogue country, the normal value had to be constructed, based on the Community industry’s cost of production; |
| --- | --- |

(ii)

the dumping margin was calculated in an exceptional way: since MET/IT could not be granted to the cooperating exporting producers in the PRC and in the absence of an analogue country, the normal value had to be constructed, based on the Community industry’s cost of production;

| (iii) | there are only two supply sources of DCD in the world: the Community industry located in Germany and some exporting producers in the PRC. This calls for a cautious approach in order not to create a monopoly and/or a critical supply situation on the Community market. |
| --- | --- |

(iii)

there are only two supply sources of DCD in the world: the Community industry located in Germany and some exporting producers in the PRC. This calls for a cautious approach in order not to create a monopoly and/or a critical supply situation on the Community market.

| (129) | It should also be noted that as of 1 July 2007 the VAT refund rate applicable to exports of DCD originating in the PRC was reduced from 13 % to 5 %. This will most likely lead to an increase in export prices of Chinese DCD, since the cost of producing DCD for exports will be higher. |
| --- | --- |

(129)

It should also be noted that as of 1 July 2007 the VAT refund rate applicable to exports of DCD originating in the PRC was reduced from 13 % to 5 %. This will most likely lead to an increase in export prices of Chinese DCD, since the cost of producing DCD for exports will be higher.

| (130) | Under these circumstances, a more meaningful method had to be used for the determination of the injury elimination level related to the dumped imports. It was considered appropriate to focus on the injurious effects directly resulting from the undercutting practices of the Chinese exporting producers and to base the injury elimination level on the amount sufficient to eliminate the actual price undercutting and to add an element of profit (between 0 and 5 %) corresponding to the profit margin achieved by the Community industry in 2001 for the product concerned. This approach will allow the CI to charge higher prices and therefore to improve its financial and economic situation as far as it has been clearly impacted by the dumped imports. |
| --- | --- |

(130)

Under these circumstances, a more meaningful method had to be used for the determination of the injury elimination level related to the dumped imports. It was considered appropriate to focus on the injurious effects directly resulting from the undercutting practices of the Chinese exporting producers and to base the injury elimination level on the amount sufficient to eliminate the actual price undercutting and to add an element of profit (between 0 and 5 %) corresponding to the profit margin achieved by the Community industry in 2001 for the product concerned. This approach will allow the CI to charge higher prices and therefore to improve its financial and economic situation as far as it has been clearly impacted by the dumped imports.

| (131) | Following the disclosure of the definitive findings of the investigation, the CI claimed that the proposed level of duty would not ensure its viability, since it would not allow it to increase its prices to a level that would cover all of its cost of production. Instead it proposed a methodology which would provide a break-even point for the whole DCD production chain. However, this method had to be rejected as it was based on largely non-verified data and would have included other products beside the product concerned. |
| --- | --- |

(131)

Following the disclosure of the definitive findings of the investigation, the CI claimed that the proposed level of duty would not ensure its viability, since it would not allow it to increase its prices to a level that would cover all of its cost of production. Instead it proposed a methodology which would provide a break-even point for the whole DCD production chain. However, this method had to be rejected as it was based on largely non-verified data and would have included other products beside the product concerned.

| (132) | It is therefore maintained that the duty based on the undercutting plus profit will eliminate the injury directly caused by the dumped imports, even if it does not remove fully all the financial and economic difficulties of the CI. Covering all costs of production would be an overcompensation in view of the factors other than dumped imports. It should also be taken into consideration that the CI benefits from a particular position in the market characterised by its proximity to customers. |
| --- | --- |

(132)

It is therefore maintained that the duty based on the undercutting plus profit will eliminate the injury directly caused by the dumped imports, even if it does not remove fully all the financial and economic difficulties of the CI. Covering all costs of production would be an overcompensation in view of the factors other than dumped imports. It should also be taken into consideration that the CI benefits from a particular position in the market characterised by its proximity to customers.

| (133) | On the basis of the above, the necessary price increase was determined by using the weighted average import price, as established for the undercutting calculation, and adding an additional element of profit. The result was then expressed as a percentage of the total CIF import value. |
| --- | --- |

(133)

On the basis of the above, the necessary price increase was determined by using the weighted average import price, as established for the undercutting calculation, and adding an additional element of profit. The result was then expressed as a percentage of the total CIF import value.

| (134) | In view of the special circumstances, as described above, the Commission will closely monitor the market. Should the measure prove to be inadequate, or alternatively, lead to a shortage on the Community market and/or a monopoly by either party, the Commission will immediately address the situation by initiating an ex officio review on the basis of Article 11(3) of the basic Regulation and/or by applying Article 14(4) of the basic Regulation. |
| --- | --- |

(134)

In view of the special circumstances, as described above, the Commission will closely monitor the market. Should the measure prove to be inadequate, or alternatively, lead to a shortage on the Community market and/or a monopoly by either party, the Commission will immediately address the situation by initiating an ex officio review on the basis of Article 11(3) of the basic Regulation and/or by applying Article 14(4) of the basic Regulation.

ex officio

7.2.   Definitive measures

| (135) | In the light of the foregoing, it is considered that in accordance with Article 9 of the basic Regulation, definitive anti-dumping measures on imports of the product concerned should be imposed. |
| --- | --- |

(135)

In the light of the foregoing, it is considered that in accordance with Article 9 of the basic Regulation, definitive anti-dumping measures on imports of the product concerned should be imposed.

| (136) | As the injury elimination level is lower than the dumping margin established, the definitive measures should be based on the injury elimination level. |
| --- | --- |

(136)

As the injury elimination level is lower than the dumping margin established, the definitive measures should be based on the injury elimination level.

| (137) | On the basis of the above, the duty rate, expressed as a percentage of the CIF Community border price, customs duty unpaid, is as follows:







  Country | Company | Rate of duty (%) |
| --- | --- | --- | --- |
| PRC | All companies | 49,1  % |

(137)

On the basis of the above, the duty rate, expressed as a percentage of the CIF Community border price, customs duty unpaid, is as follows:

Country

Company

Rate of duty (%)

PRC

All companies

49,1  %

HAS ADOPTED THIS REGULATION:

Article 1

1.   A definitive anti-dumping duty is hereby imposed on imports of 1-cyanoguanidine (dicyandiamide), falling within CN code 2926 20 00, originating in the People’s Republic of China.

2.   The rate of the definitive anti-dumping duty applicable to the net, free-at-Community-frontier price, before duty, of the product described above shall be 49,1 %.

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

Article 2

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

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

Done at Brussels, 13 November 2007.

For the Council

The President

F. TEIXEIRA DOS SANTOS

---

(1)  
  OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

1

(2)  
  OJ C 193, 17.8.2006, p. 3.

2

---

| 15.11.2007 | EN | Official Journal of the European Union | L 296/18 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/18

---

COMMISSION REGULATION (EC) No 1332/2007

of 14 November 2007

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 15 November 2007.

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

Done at Brussels, 14 November 2007.

For the Commission

Jean-Luc DEMARTY

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 337, 24.12.1994, p. 66. Regulation as last amended by Regulation (EC) No 756/2007 (OJ L 172, 30.6.2007, p. 41).

1

---

ANNEX

to Commission Regulation of 14 November 2007 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 | MA | 61,6 |
| MK | 18,4 |
| TR | 83,1 |
| ZZ | 54,4 |
| 0707 00 05 | JO | 196,3 |
| MA | 68,0 |
| TR | 104,1 |
| ZZ | 122,8 |
| 0709 90 70 | MA | 63,6 |
| TR | 89,2 |
| ZZ | 76,4 |
| 0805 20 10 | MA | 80,6 |
| ZZ | 80,6 |
| 0805 20 30 , 0805 20 50 , 0805 20 70 , 0805 20 90 | HR | 23,0 |
| IL | 68,7 |
| TR | 82,9 |
| UY | 98,5 |
| ZZ | 68,3 |
| 0805 50 10 | AR | 73,8 |
| TR | 99,1 |
| ZA | 60,0 |
| ZZ | 77,6 |
| 0806 10 10 | BR | 235,4 |
| TR | 136,5 |
| US | 267,2 |
| ZZ | 213,0 |
| 0808 10 80 | AR | 83,4 |
| CA | 95,9 |
| CL | 33,5 |
| MK | 31,5 |
| US | 101,8 |
| ZA | 87,4 |
| ZZ | 72,3 |
| 0808 20 50 | AR | 49,3 |
| CN | 74,2 |
| TR | 129,4 |
| ZZ | 84,3 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

MA

61,6

MK

18,4

TR

83,1

ZZ

54,4

0707 00 05

JO

196,3

MA

68,0

TR

104,1

ZZ

122,8

0709 90 70

MA

63,6

TR

89,2

ZZ

76,4

0805 20 10

MA

80,6

ZZ

80,6

0805 20 30 , 0805 20 50 , 0805 20 70 , 0805 20 90

HR

23,0

IL

68,7

TR

82,9

UY

98,5

ZZ

68,3

0805 50 10

AR

73,8

TR

99,1

ZA

60,0

ZZ

77,6

0806 10 10

BR

235,4

TR

136,5

US

267,2

ZZ

213,0

0808 10 80

AR

83,4

CA

95,9

CL

33,5

MK

31,5

US

101,8

ZA

87,4

ZZ

72,3

0808 20 50

AR

49,3

CN

74,2

TR

129,4

ZZ

84,3

---

(1)  Country nomenclature as fixed by Commission Regulation (EC) No 1833/2006 (OJ L 354, 14.12.2006, p. 19). Code ‘
  ZZ
  ’ stands for ‘of other origin’.

---

| 15.11.2007 | EN | Official Journal of the European Union | L 296/20 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/20

---

COMMISSION REGULATION (EC) No 1333/2007

of 13 November 2007

establishing a prohibition of fishing for cod in ICES zones of IV and EC waters II a by vessels flying the flag of Germany

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 2371/2002 of 20 December 2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy (1), and in particular Article 26(4) thereof,

Having regard to Council Regulation (EEC) No 2847/93 of 12 October 1993 establishing a control system applicable to common fisheries policy (2), and in particular Article 21(3) thereof,

Whereas:

| (1) | Council Regulation (EC) No 41/2007 of 21 December 2006 fixing for 2007 the fishing opportunities and associated conditions for certain fish stocks and groups of fish stocks applicable in Community waters and for Community vessels, in waters where catch limitations are required (3), lays down quotas for 2007. |
| --- | --- |

(1)

Council Regulation (EC) No 41/2007 of 21 December 2006 fixing for 2007 the fishing opportunities and associated conditions for certain fish stocks and groups of fish stocks applicable in Community waters and for Community vessels, in waters where catch limitations are required (3), lays down quotas for 2007.

| (2) | According to the information received by the Commission, catches of the stock referred to in the Annex to this Regulation by vessels flying the flag of or registered in the Member State referred to therein have exhausted the quota allocated for 2007. |
| --- | --- |

(2)

According to the information received by the Commission, catches of the stock referred to in the Annex to this Regulation by vessels flying the flag of or registered in the Member State referred to therein have exhausted the quota allocated for 2007.

| (3) | It is therefore necessary to prohibit fishing for that stock and its retention on board, transhipment and landing, |
| --- | --- |

(3)

It is therefore necessary to prohibit fishing for that stock and its retention on board, transhipment and landing,

HAS ADOPTED THIS REGULATION:

Article 1

Quota exhaustion

The fishing quota allocated to the Member State referred to in the Annex to this Regulation for the stock referred to therein for 2007 shall be deemed to be exhausted from the date set out in that Annex.

Article 2

Prohibitions

Fishing for the stock referred to in the Annex to this Regulation by vessels flying the flag of or registered in the Member State referred to therein shall be prohibited from the date set out in that Annex. It shall be prohibited to retain on board, tranship or land such stock caught by those vessels after that date.

Article 3

Entry into force

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

Official Journal of the European Union

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

Done at Brussels, 13 November 2007.

For the Commission

Fokion FOTIADIS

Director-General for Fisheries and Maritime Affairs

---

(1)  
  OJ L 358, 31.12.2002, p. 59. Regulation as amended by Regulation (EC) No 865/2007 (OJ L 192, 24.7.2007, p. 1).

1

(2)  
  OJ L 261, 20.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 1967/2006 (OJ L 409, 30.12.2006, p. 11), as corrected by OJ L 36, 8.2.2007, p. 6.

2

(3)  
  OJ L 15, 20.1.2007, p. 1. Regulation as last amended by Commission Regulation (EC) No 898/2007 (OJ L 196, 28.7.2007, p. 22).

3

---

ANNEX

| No | 72 |
| --- | --- |
| Member State | Germany |
| Stock | COD/2AC4. |
| Species | Cod (Gadus morhua) |
| Zone | IV; EC waters of II a |
| Date | 27.10.2007 |

No

72

Member State

Germany

Stock

COD/2AC4.

Species

Cod (Gadus morhua)

Zone

IV; EC waters of II a

Date

27.10.2007

---

| 15.11.2007 | EN | Official Journal of the European Union | L 296/22 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/22

---

COMMISSION REGULATION (EC) No 1334/2007

of 14 November 2007

amending Regulation (EC) No 1749/96 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonised indices of consumer prices

(Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 2494/95 of 23 October 1995 concerning harmonized indices of consumer prices (1), and in particular third paragraph of Article 4 and Article 5(3) thereof,

Having regard to the opinion of the European Central Bank (2), as required under Article 5(3) of Regulation (EC) No 2494/95,

Whereas:

| (1) | Harmonised Indices of Consumer Prices (HICP) are harmonised inflation figures required by the Commission and the European Central Bank for the performance of their functions under Article 121 of the EC Treaty. HICPs are designed to facilitate international comparisons of consumer price inflation. They serve as important indicators for the management of monetary policy. |
| --- | --- |

(1)

Harmonised Indices of Consumer Prices (HICP) are harmonised inflation figures required by the Commission and the European Central Bank for the performance of their functions under Article 121 of the EC Treaty. HICPs are designed to facilitate international comparisons of consumer price inflation. They serve as important indicators for the management of monetary policy.

| (2) | The HICP constitutes a rather complete conceptual framework. Very considerable progress has been made in harmonizing methodologies since the initial implementing measures were adopted, but scope for non-comparability remains with regard to sampling, replacement, quality adjustment and aggregation procedures. |
| --- | --- |

(2)

The HICP constitutes a rather complete conceptual framework. Very considerable progress has been made in harmonizing methodologies since the initial implementing measures were adopted, but scope for non-comparability remains with regard to sampling, replacement, quality adjustment and aggregation procedures.

| (3) | The existing HICP framework provides a definition of the HICP as a Laspeyres-type index concerned with the changing power of money to acquire goods and services for the purposes of directly satisfying consumer needs. This definition reflects the current understanding of consumer inflation in the European Union and the euro zone in particular. |
| --- | --- |

(3)

The existing HICP framework provides a definition of the HICP as a Laspeyres-type index concerned with the changing power of money to acquire goods and services for the purposes of directly satisfying consumer needs. This definition reflects the current understanding of consumer inflation in the European Union and the euro zone in particular.

| (4) | The HICP relates to the prices of all the products purchased by consumers, when they seek to maintain consumption patterns, i.e. products defined by elementary expenditure categories (weights). These categories consist of explicitly stated consumption segments distinguishable by consumption purpose. The set of all product-offers in the statistical universe can be exhaustively divided into consumption segments. Consumption segments are relatively stable over time although the product-offers comprising a consumption segment will change as markets evolve. |
| --- | --- |

(4)

The HICP relates to the prices of all the products purchased by consumers, when they seek to maintain consumption patterns, i.e. products defined by elementary expenditure categories (weights). These categories consist of explicitly stated consumption segments distinguishable by consumption purpose. The set of all product-offers in the statistical universe can be exhaustively divided into consumption segments. Consumption segments are relatively stable over time although the product-offers comprising a consumption segment will change as markets evolve.

| (5) | The notion of consumption segments by purpose is therefore central to sampling and to the meaning of quality change and quality adjustment. However, an ambiguity in this concept concerns the level of aggregation at which it is defined and applied. |
| --- | --- |

(5)

The notion of consumption segments by purpose is therefore central to sampling and to the meaning of quality change and quality adjustment. However, an ambiguity in this concept concerns the level of aggregation at which it is defined and applied.

| (6) | The range of product-offers will change over time as products are modified or replaced by retailers and manufacturers. The HICP requires the representation of all currently available product-offers within the consumption segments by purpose selected in the reference period in order to measure their impact on inflation. This applies particularly to new models or varieties of previously existing products. |
| --- | --- |

(6)

The range of product-offers will change over time as products are modified or replaced by retailers and manufacturers. The HICP requires the representation of all currently available product-offers within the consumption segments by purpose selected in the reference period in order to measure their impact on inflation. This applies particularly to new models or varieties of previously existing products.

| (7) | Quality change thus relates to the degree to which available products are fit to serve the purpose of the consumption segment to which they belong. Quality change should be assessed by reference to the specification of concrete products within a consumption segment. |
| --- | --- |

(7)

Quality change thus relates to the degree to which available products are fit to serve the purpose of the consumption segment to which they belong. Quality change should be assessed by reference to the specification of concrete products within a consumption segment.

| (8) | In order to address these issues, a number of clarifications and amendments to Commission Regulation (EC) No 1749/96 of 9 September 1996 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonized indices of consumer prices (3) are necessary for ensuring comparability of HICPs and maintaining their reliability and relevance in accordance with Article 5 of Regulation (EC) No 2494/95. |
| --- | --- |

(8)

In order to address these issues, a number of clarifications and amendments to Commission Regulation (EC) No 1749/96 of 9 September 1996 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonized indices of consumer prices (3) are necessary for ensuring comparability of HICPs and maintaining their reliability and relevance in accordance with Article 5 of Regulation (EC) No 2494/95.

| (9) | It is therefore necessary to further specify the purposes and definition of the HICP, to clarify where those determine the actual practices of sampling, replacement, and quality adjustment, and to establish the required representation of the HICP and its form, and to establish further minimum standards with respect to sampling, replacement, quality adjustment and aggregation procedures. |
| --- | --- |

(9)

It is therefore necessary to further specify the purposes and definition of the HICP, to clarify where those determine the actual practices of sampling, replacement, and quality adjustment, and to establish the required representation of the HICP and its form, and to establish further minimum standards with respect to sampling, replacement, quality adjustment and aggregation procedures.

| (10) | In particular, it is necessary to set a clear statistical target for the purposes of sampling, replacement and quality adjustment and ensure that the HICP measures close to the target, with a reasonably small uncertainty or error in terms of bias and variance. A trade-off between unbiasedness and precision must be considered. |
| --- | --- |

(10)

In particular, it is necessary to set a clear statistical target for the purposes of sampling, replacement and quality adjustment and ensure that the HICP measures close to the target, with a reasonably small uncertainty or error in terms of bias and variance. A trade-off between unbiasedness and precision must be considered.

| (11) | With a view to further specifying the target universe of the HICP and resolving the issue of the ‘fixity’ of the HICP basket, the concept of ‘consumption segments by purpose’ offers a workable solution as it can build the necessary fixity into the Laspeyres-type index and make the concept meaningful in a world of evolving markets. |
| --- | --- |

(11)

With a view to further specifying the target universe of the HICP and resolving the issue of the ‘fixity’ of the HICP basket, the concept of ‘consumption segments by purpose’ offers a workable solution as it can build the necessary fixity into the Laspeyres-type index and make the concept meaningful in a world of evolving markets.

| (12) | It is necessary to ensure that consumption segments in the reference period are selected to represent the entire partition of the transactions universe and that replacements maintain the representation of current product offers within consumption segments already represented in the HICP. The representation of household final monetary expenditure by consumption purpose should reflect the dynamic nature of evolving markets. |
| --- | --- |

(12)

It is necessary to ensure that consumption segments in the reference period are selected to represent the entire partition of the transactions universe and that replacements maintain the representation of current product offers within consumption segments already represented in the HICP. The representation of household final monetary expenditure by consumption purpose should reflect the dynamic nature of evolving markets.

| (13) | It must be ensured that judgements by Member States on whether quality change occurs are based on evidence of differences in price determining characteristics that are relevant to the consumer purposes in question. To this effect specific quality adjustment standards should be developed by the Commission (Eurostat) on a case-by-case basis. |
| --- | --- |

(13)

It must be ensured that judgements by Member States on whether quality change occurs are based on evidence of differences in price determining characteristics that are relevant to the consumer purposes in question. To this effect specific quality adjustment standards should be developed by the Commission (Eurostat) on a case-by-case basis.

| (14) | Furthermore, it is necessary to broaden the definition of elementary aggregates and to further harmonise aggregation and replacement practices within elementary aggregates. |
| --- | --- |

(14)

Furthermore, it is necessary to broaden the definition of elementary aggregates and to further harmonise aggregation and replacement practices within elementary aggregates.

| (15) | The principle of cost-effectiveness has been taken into account in accordance with Article 13 of Regulation (EC) No 2494/95. |
| --- | --- |

(15)

The principle of cost-effectiveness has been taken into account in accordance with Article 13 of Regulation (EC) No 2494/95.

| (16) | Regulation (EC) No 1749/96 should therefore be amended accordingly. |
| --- | --- |

(16)

Regulation (EC) No 1749/96 should therefore be amended accordingly.

| (17) | The measures provided for in this Regulation are in accordance with the opinion of the Statistical Programme Committee, established by Council Decision 89/382/EEC, Euratom (4), |
| --- | --- |

(17)

The measures provided for in this Regulation are in accordance with the opinion of the Statistical Programme Committee, established by Council Decision 89/382/EEC, Euratom (4),

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1749/96 is amended as follows:

| 1. | Article 2 is replaced by the following:

  ‘Article 2
  Definitions
  For the purpose of this Regulation, the following definitions shall apply:






  1. | “Household final monetary consumption expenditure” as specified in Annex lb means that part of final consumption expenditure which is incurred by households irrespective of nationality or residence status, in monetary transactions, on the economic territory of the Member State, on goods and services that are used for the direct satisfaction of individual needs or wants, and in one or both of the time periods being compared. |
| --- | --- | --- |

1.

Article 2 is replaced by the following:

‘Article 2

Definitions

For the purpose of this Regulation, the following definitions shall apply:

1.

“Household final monetary consumption expenditure” as specified in Annex lb means that part of final consumption expenditure which is incurred by households irrespective of nationality or residence status, in monetary transactions, on the economic territory of the Member State, on goods and services that are used for the direct satisfaction of individual needs or wants, and in one or both of the time periods being compared.

| 2. | “Product-offer” means a specified good or service that is offered for purchase at a stated price, in a specific outlet or by a specific provider, under specific terms of supply, and thus defines a unique entity at any one time. |
| --- | --- |

2.

“Product-offer” means a specified good or service that is offered for purchase at a stated price, in a specific outlet or by a specific provider, under specific terms of supply, and thus defines a unique entity at any one time.

| 3. | The “coverage” of the HICP, that is the statistical “target universe” to be represented by the HICP, means the set of all transactions falling within the scope of household final monetary consumption expenditure. |
| --- | --- |

3.

The “coverage” of the HICP, that is the statistical “target universe” to be represented by the HICP, means the set of all transactions falling within the scope of household final monetary consumption expenditure.

| 4. | A “consumption segment by purpose” or “consumption segment” means a set of transactions relating to product-offers which, on the grounds of common properties, are deemed to serve a common purpose, in the sense that they:






  — | are marketed for predominant use in similar situations, |
| --- | --- | --- |

4.

A “consumption segment by purpose” or “consumption segment” means a set of transactions relating to product-offers which, on the grounds of common properties, are deemed to serve a common purpose, in the sense that they:

—

are marketed for predominant use in similar situations,

| — | can largely be described by a common specification, and |
| --- | --- |

—

can largely be described by a common specification, and

| — | may be considered by consumers as equivalent. |
| --- | --- |

—

may be considered by consumers as equivalent.

| 5. | “Newly significant goods and services” mean those goods and services the price changes of which are not explicitly included in a Member State's HICP and the estimated consumers’ expenditure on which has become at least one part per thousand of the expenditure covered by that HICP. |
| --- | --- |

5.

“Newly significant goods and services” mean those goods and services the price changes of which are not explicitly included in a Member State's HICP and the estimated consumers’ expenditure on which has become at least one part per thousand of the expenditure covered by that HICP.

| 6. | “Sampling” means any procedure in the construction of the HICP where a subset of the universe of product-offers is selected to estimate the price change for consumption segments covered by the HICP. |
| --- | --- |

6.

“Sampling” means any procedure in the construction of the HICP where a subset of the universe of product-offers is selected to estimate the price change for consumption segments covered by the HICP.

| 7. | “Target sample” means the set of product-offers within consumption segments for which the Member State plans to observe prices in order to achieve a reliable and comparable representation of the HICP target universe. |
| --- | --- |

7.

“Target sample” means the set of product-offers within consumption segments for which the Member State plans to observe prices in order to achieve a reliable and comparable representation of the HICP target universe.

| 8. | “Weights” used in HICP aggregations mean the appropriate estimates of relative expenditures on any sub-division of the target universe, in accordance with Commission Regulation (EC) No 2454/97 (*1). |
| --- | --- |

8.

“Weights” used in HICP aggregations mean the appropriate estimates of relative expenditures on any sub-division of the target universe, in accordance with Commission Regulation (EC) No 2454/97 (*1).

| 9. | “Observed price” means a price actually confirmed by the Member States. |
| --- | --- |

9.

“Observed price” means a price actually confirmed by the Member States.

| 10. | “Replacement product-offer” means a product-offer with an observed price that replaces a product-offer in the target sample. |
| --- | --- |

10.

“Replacement product-offer” means a product-offer with an observed price that replaces a product-offer in the target sample.

| 11. | “Replacement price” means the observed price for a replacement product-offer. |
| --- | --- |

11.

“Replacement price” means the observed price for a replacement product-offer.

| 12. | “Estimated price” means a price which is substituted for an observed price and is based on an appropriate estimation procedure. Previously observed prices shall not be regarded as estimated prices unless they can be shown to be appropriate estimates. |
| --- | --- |

12.

“Estimated price” means a price which is substituted for an observed price and is based on an appropriate estimation procedure. Previously observed prices shall not be regarded as estimated prices unless they can be shown to be appropriate estimates.

| 13. | An “elementary product group” means a set of product-offers that are sampled in order to represent one or more consumption segments in the HICP. |
| --- | --- |

13.

An “elementary product group” means a set of product-offers that are sampled in order to represent one or more consumption segments in the HICP.

| 14. | An “elementary aggregate” means an elementary product group stratified, for instance by regions, cities or outlet types and so refers to the level at which observed prices enter the HICP. Where elementary product groups are not stratified, the terms “elementary product group” and “elementary aggregate” shall have the same meaning. |
| --- | --- |

14.

An “elementary aggregate” means an elementary product group stratified, for instance by regions, cities or outlet types and so refers to the level at which observed prices enter the HICP. Where elementary product groups are not stratified, the terms “elementary product group” and “elementary aggregate” shall have the same meaning.

| 15. | An “elementary aggregate index” means a price index for an elementary aggregate. |
| --- | --- |

15.

An “elementary aggregate index” means a price index for an elementary aggregate.

| 16. | “Quality change” means that a replacement has resulted in a significant difference in the degree to which the replacement product-offer serves the consumer purpose of the consumption segment to which it belongs, whenever the Member State judges so. |
| --- | --- |

16.

“Quality change” means that a replacement has resulted in a significant difference in the degree to which the replacement product-offer serves the consumer purpose of the consumption segment to which it belongs, whenever the Member State judges so.

| 17. | “Quality adjustment” means the procedure of making an allowance for an observed quality change by increasing or decreasing the observed current or reference price by a factor or an amount equivalent to the value of that quality change. |
| --- | --- |

17.

“Quality adjustment” means the procedure of making an allowance for an observed quality change by increasing or decreasing the observed current or reference price by a factor or an amount equivalent to the value of that quality change.

(*1)  
  OJ L 340, 11.12.1997, p. 24.’
  "

*1

| 2. | The following Article 2a is inserted:

  ‘Article 2a
  Principles

  1.   The compiled HICP is a sample statistic which shall represent the change in prices, on average over the target universe, between the calendar month of the current index and the period to which it is compared.


  2.   The set of all transactions in the statistical universe can be exhaustively divided into subsets corresponding to the product-offers to which these transactions pertain. They shall be classified according to the four-digit categories and sub-categories given in Annex Ia, which derive from the COICOP international classification and shall be known as COICOP/HICP (classification of individual consumption by purpose adapted to the needs of HICPs).


  3.   The HICP shall be computed using a formula which is consistent with the Laspeyres-type formula.


  4.   Consumption segments shall form the fixed objects in the index basket to be followed by the HICP.


  5.   Prices used in the HICP shall be the purchase prices, which are the prices paid by households to purchase individual goods and services in monetary transactions.


  6.   Where goods and services have been available to consumers free of charge, and subsequently an actual price is charged, then the change from a zero price to the actual price, and vice versa, shall be taken into account in the HICP.


  7.   The HICP shall provide a measure of pure change in prices, unaffected by quality change. It shall:






  (a) | reflect the price change on the basis of the changed expenditure of maintaining the consumption pattern of households and the composition of the consumer population in the base or reference period; and |
| --- | --- | --- |

2.

The following Article 2a is inserted:

‘Article 2a

Principles

1.   The compiled HICP is a sample statistic which shall represent the change in prices, on average over the target universe, between the calendar month of the current index and the period to which it is compared.

2.   The set of all transactions in the statistical universe can be exhaustively divided into subsets corresponding to the product-offers to which these transactions pertain. They shall be classified according to the four-digit categories and sub-categories given in Annex Ia, which derive from the COICOP international classification and shall be known as COICOP/HICP (classification of individual consumption by purpose adapted to the needs of HICPs).

3.   The HICP shall be computed using a formula which is consistent with the Laspeyres-type formula.

4.   Consumption segments shall form the fixed objects in the index basket to be followed by the HICP.

5.   Prices used in the HICP shall be the purchase prices, which are the prices paid by households to purchase individual goods and services in monetary transactions.

6.   Where goods and services have been available to consumers free of charge, and subsequently an actual price is charged, then the change from a zero price to the actual price, and vice versa, shall be taken into account in the HICP.

7.   The HICP shall provide a measure of pure change in prices, unaffected by quality change. It shall:

(a)

reflect the price change on the basis of the changed expenditure of maintaining the consumption pattern of households and the composition of the consumer population in the base or reference period; and

| (b) | be constructed by making appropriate adjustments for observed quality change. Quality adjustments shall serve the reliability, and in particular the representativity of the HICP as a measure of pure price change. |
| --- | --- |

(b)

be constructed by making appropriate adjustments for observed quality change. Quality adjustments shall serve the reliability, and in particular the representativity of the HICP as a measure of pure price change.

8.   Concerning quality change, the judgement shall be based on due evidence of a difference between the specification of a replacement product-offer and the product-offer it replaced in the sample; That is, a difference in the product-offers’ significant price-determining characteristics, such as brand, material or make, that are relevant to the consumer purpose in question.

A quality change does not arise when there is a comprehensive annual or less frequent revision of the HICP sample. Its inclusion shall be made by establishing the appropriate chain links. Revisions of the HICP sample do not remove the need to introduce replacement product-offers without delay in between two revisions.

9.   The representation of an elementary product group or an elementary aggregate shall be defined by the expenditure weight associated to it. Other weightings may be used within elementary aggregates on the condition that the representativity of the index is ensured.

10.   “Reliability” shall be assessed according to “precision”, which refers to the scale of sampling errors, and “representativity” which refers to the lack of bias.’

| 3. | In the second paragraph of Article 4 the words ‘Article 2(b)’ shall be replaced by the words ‘Article 2(5)’. |
| --- | --- |

3.

In the second paragraph of Article 4 the words ‘Article 2(b)’ shall be replaced by the words ‘Article 2(5)’.

| 4. | Article 5 is replaced by the following:

  ‘Article 5
  Minimum standards for replacements and quality adjustment

  1.   Quality adjustment methods shall be rated as follows:






  (a) | A-methods: those which are considered to deliver the most reliable results, in terms of precision and bias; |
| --- | --- | --- |

4.

Article 5 is replaced by the following:

‘Article 5

Minimum standards for replacements and quality adjustment

1.   Quality adjustment methods shall be rated as follows:

(a)

A-methods: those which are considered to deliver the most reliable results, in terms of precision and bias;

| (b) | B-methods: those which may deliver less precise or less representative results than A-methods, but are nevertheless considered also acceptable. B-methods shall be used in case A-methods are not applied; and |
| --- | --- |

(b)

B-methods: those which may deliver less precise or less representative results than A-methods, but are nevertheless considered also acceptable. B-methods shall be used in case A-methods are not applied; and

| (c) | C-methods: all other methods, which shall hence not be used. |
| --- | --- |

(c)

C-methods: all other methods, which shall hence not be used.

2.   Standards concerning the rating of quality adjustment methods shall be developed and issued by the Commission (Eurostat) after consultation at the SPC, following a case-by-case approach and with due regard to aspects of cost-effectiveness and the context in which they are applied.

The rating of quality adjustment methods does not preclude the adoption of implementing measures on this subject in accordance with Article 5(3) of Regulation (EC) No 2494/95.

3.   A- and B-methods shall be deemed to be appropriate quality adjustment methods. HICPs for which appropriate quality adjustments are made shall be deemed to be comparable. Other things being equal, A-methods shall be given the preference over B-methods.

4.   In the absence of appropriate national estimates, Member States shall use estimates based on information provided by the Commission (Eurostat) where these are available and relevant.

5.   In no case shall a quality change be estimated as the whole of the difference in price between the two product-offers, unless this can be justified as an appropriate estimate.

6.   Where no appropriate estimates are available, price changes shall be estimated as the difference between the replacement price and that of the product-offer it has replaced.

7.   Replacement product-offers:

| (a) | shall be either “essentially equivalent”, if no quality change is observed between the replacement product-offer and the one it replaced in the sample, or “equivalent by quality adjustment”, if a quality adjustment is necessary for an observed quality change between the replacement product-offer and the one it replaced in the sample; |
| --- | --- |

(a)

shall be either “essentially equivalent”, if no quality change is observed between the replacement product-offer and the one it replaced in the sample, or “equivalent by quality adjustment”, if a quality adjustment is necessary for an observed quality change between the replacement product-offer and the one it replaced in the sample;

| (b) | shall be selected from the same consumption segments as the replaced ones, so as to maintain the representation of consumption segments; |
| --- | --- |

(b)

shall be selected from the same consumption segments as the replaced ones, so as to maintain the representation of consumption segments;

| (c) | shall not be selected according to similarity of price. This shall in particular apply where replacements have to be made after goods or services have been offered at reduced prices.’ |
| --- | --- |

(c)

shall not be selected according to similarity of price. This shall in particular apply where replacements have to be made after goods or services have been offered at reduced prices.’

Article 2

Entry into force

This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

Official Journal of the European Union

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

Done at Brussels, 14 November 2007.

For the Commission

Joaquín ALMUNIA

Member of the Commission

---

(1)  
  OJ L 257, 27.10.1995, p. 1. Regulation as amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).

1

(2)  Opinion delivered on 5 October 2007 (OJ C 248, 23.10.2007, p. 1).

2

(3)  
  OJ L 229, 10.9.1996, p. 3. Regulation as last amended by Regulation (EC) No 1708/2005 (OJ L 274, 20.10.2005, p. 9).

3

(4)  
  OJ L 181, 28.6.1989, p. 47.

4

---

II Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory

DECISIONS

Commission

| 15.11.2007 | EN | Official Journal of the European Union | L 296/27 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/27

---

COMMISSION DECISION

of 4 October 2006

relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA Agreement

(Case COMP/C2/38.681 — The Cannes Extension Agreement)

(notified under document number C(2006) 4350)

(Only the English, French and German texts are authentic)

(Text with EEA relevance)

(2007/735/EC)

On 4 October 2006 the Commission adopted a Decision relating to a proceeding under Article 81 of the EC Treaty and Article 53 of the EEA Agreement. In accordance with the provisions of Article 30 of Council Regulation (EC) No 1/2003 (1), the Commission herewith publishes the names of the parties and the main content of the Decision, having regard to the legitimate interest of undertakings in the protection of their business interests. A non-confidential version of the full text of the Decision can be found in the authentic languages of the case, which are in this case the same as the Commission’s working languages, at Directorate-General for Competition’s website at the following address: http://ec.europa.eu/comm/competition/antitrust/cases/index/by_nr_77.html#i38_681

1

(1)

This Decision is addressed to Elliniki Etairia Prostasias tis Pneymatikis Idioktisias A.E. (AEPI), Gesellschaft zur Wahrnehmung mechanisch-musikalischer Urheberrechte m.b.H. (AustroMechana), BMG Music Publishing International Ltd, Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte (GEMA), Mechanical-Copyright Protection Society Limited (MCPS), Mechanical-Copyright Protection Society Ireland (MCPSI), Nordic Copyright Bureau (NCB), Société Belge des Auteurs Compositeurs et Editeurs (SABAM), Société pour l’Administration du Droit de Reproduction Mécanique des Auteurs, Compositeurs et Editeurs (SDRM), Sociedad General Autores y Editores (SGAE), Società Italiana degli Autori ed Editori (SIAE), Sony/ATV Music Publishing Europe, Sociedade Portuguesa de Autores (SPA), Stichting Stemra (STEMRA), Schweizerische Gesellschaft für die Rechte der Urheber musikalischer Werke (SUISA), Universal Music Publishing Group and Warner Chappell Music Ltd, hereafter referred to as ‘the parties to the Cannes Extension Agreement’.

(2)

The subject matter of the procedure was the Cannes Extension Agreement, an agreement among the 18 companies (13 of which are copyright collecting societies managing mechanical copyright in music and five major music publishers, members of these collecting societies) concerning the relations between them in the management of mechanical copyright of music licensed to record companies for the reproduction of sound recordings on physical carriers. In its preliminary assessment, the Commission expressed concerns under Article 81 of the EC Treaty and 53 of the EEA Agreement about two clauses of the Cannes Extension Agreement. The first was a clause that provided that before granting a rebate to a record company in the context of a Central Licensing Agreement, a collecting society needed the written consent of ‘the relevant member’. The second was a clause that provided that collecting societies may never enter either the music publishing or the record production markets. The Commission’s competition concerns were that the first clause could have the effect of making it very difficult or even impossible for collecting societies to grant rebates to record companies and that the second clause could prevent potential competition by collecting societies in the music publishing and record production markets.

(3)

The Commission considers that the commitments offered by the parties to the Cannes Extension Agreement are sufficient to address the identified competition concerns. In particular the parties have reformulated the clause referring to rebates to the effect that a collecting society may decide to offer a rebate paid out of the administrative expenses that it retains from royalties due to its members by a simple decision of its competent body with no need to obtain the written consent of the ‘relevant member’. The parties have deleted the clause preventing collecting societies from entering the music publishing and the record production markets and have undertaken not to enter into a similar agreement in the future.

(4)

The decision finds, in view of the commitments made binding on the parties to the Cannes Extension Agreement, that there are no longer grounds for action by the Commission.

(5)

The Advisory Committee on Restrictive Practices and Dominant Positions issued a favourable opinion on 18 September 2006.

---

(1)  
  OJ L 1, 4.1.2003, p. 1. Regulation as amended by Regulation (EC) No 411/2004 (OJ L 68, 6.3.2004, p. 1).

1

---

| 15.11.2007 | EN | Official Journal of the European Union | L 296/29 |
| --- | --- | --- | --- |

15.11.2007

EN

Official Journal of the European Union

L 296/29

---

COMMISSION DECISION

of 9 November 2007

amending Annex II to Council Decision 79/542/EEC as regards the list of third countries and parts thereof from which imports into the Community of certain fresh meat is authorised

(notified under document number C(2007) 5365)

(Text with EEA relevance)

(2007/736/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Directive 91/496/EEC of 15 July 1991 laying down the principles governing the organisation of veterinary checks on animals entering the Community from third countries and amending Directives 89/662/EEC, 90/425/EEC and 90/675/EEC (1), and in particular Article 18(7) thereof,

Having regard to Council Directive 97/78/EC of 18 December 1997 laying down the principles governing the organisation of veterinary checks on products entering the Community from third countries (2), and in particular Article 22(6) thereof,

Having regard to Council Directive 2002/99/EC of 16 December 2002 laying down the animal health rules governing the production, processing, distribution and introduction of products of animal origin for human consumption (3), and in particular the introductory phrase of Article 8, the first subparagraph of Article 8(1) and Article 8(4) thereof,

Whereas:

| (1) | Part 1 of Annex II to Council Decision 79/542/EEC of 21 December 1976 drawing up a list of third countries or parts of third countries, and laying down animal and public health and veterinary certification conditions, for importation into the Community of certain live animals and their fresh meat (4) sets out a list of third countries and parts thereof from which Member States are authorised to import fresh meat of certain animals. |
| --- | --- |

(1)

Part 1 of Annex II to Council Decision 79/542/EEC of 21 December 1976 drawing up a list of third countries or parts of third countries, and laying down animal and public health and veterinary certification conditions, for importation into the Community of certain live animals and their fresh meat (4) sets out a list of third countries and parts thereof from which Member States are authorised to import fresh meat of certain animals.

| (2) | That Annex indicates the time periods for which importation into the Community is authorised or not authorised, in relation to dates of slaughter or killing of the animals from which the meat was obtained. Those periods are indicated in order to allow the importation of fresh meat produced before the animal health restrictions were applied to certain third countries or parts thereof. |
| --- | --- |

(2)

That Annex indicates the time periods for which importation into the Community is authorised or not authorised, in relation to dates of slaughter or killing of the animals from which the meat was obtained. Those periods are indicated in order to allow the importation of fresh meat produced before the animal health restrictions were applied to certain third countries or parts thereof.

| (3) | However, to guarantee a high level of health protection in the Community, it is appropriate to provide that imports of fresh meat obtained in a third country from animals slaughtered on or before the date of application of restrictive measures are only allowed for a limited period of time, namely 90 days. In case of consignments certified on or before the date of application of an import ban and transported on high seas at the moment in which the ban enters into force, that period should be 40 days. |
| --- | --- |

(3)

However, to guarantee a high level of health protection in the Community, it is appropriate to provide that imports of fresh meat obtained in a third country from animals slaughtered on or before the date of application of restrictive measures are only allowed for a limited period of time, namely 90 days. In case of consignments certified on or before the date of application of an import ban and transported on high seas at the moment in which the ban enters into force, that period should be 40 days.

| (4) | The date from which imports into the Community of fresh meat from a certain third country or parts thereof are authorised, or banned, should be inserted in Annex II to Decision 79/542/EEC in order to avoid imports of fresh meat produced in a period in which an animal health risk was present in such country or part thereof. |
| --- | --- |

(4)

The date from which imports into the Community of fresh meat from a certain third country or parts thereof are authorised, or banned, should be inserted in Annex II to Decision 79/542/EEC in order to avoid imports of fresh meat produced in a period in which an animal health risk was present in such country or part thereof.

| (5) | The existing indications of time periods in that Annex have also created practical problems, both as regards the Community border inspection posts when checking the health certificates for imports of such meat and for the competent services in the exporting third countries when preparing those certificates. |
| --- | --- |

(5)

The existing indications of time periods in that Annex have also created practical problems, both as regards the Community border inspection posts when checking the health certificates for imports of such meat and for the competent services in the exporting third countries when preparing those certificates.

| (6) | As a consequence, in order to achieve a high level of protection of health and in order to ensure clarity, coherence and transparency as regards the list of third countries from which imports of fresh meat into the Community are authorised, it is appropriate to amend Annex II to Decision 79/542/EEC and to delete the references to those periods. In addition, entries concerning certain countries, in particular Paraguay and Brazil, should be updated. |
| --- | --- |

(6)

As a consequence, in order to achieve a high level of protection of health and in order to ensure clarity, coherence and transparency as regards the list of third countries from which imports of fresh meat into the Community are authorised, it is appropriate to amend Annex II to Decision 79/542/EEC and to delete the references to those periods. In addition, entries concerning certain countries, in particular Paraguay and Brazil, should be updated.

| (7) | In order to allow the imports of stocks of fresh meat currently authorised to be imported into the Community from certain third countries or parts thereof under Decision 79/542/EEC, but which no longer will be authorised after the date of application of the present Decision, it is appropriate to provide for a transitional period of 90 days. |
| --- | --- |

(7)

In order to allow the imports of stocks of fresh meat currently authorised to be imported into the Community from certain third countries or parts thereof under Decision 79/542/EEC, but which no longer will be authorised after the date of application of the present Decision, it is appropriate to provide for a transitional period of 90 days.

| (8) | Due to two outbreaks of foot-and-mouth disease in Argentina in February 2006, Commission Decision 2006/259/EC of 27 March 2006 amending Annex II to Council Decision 79/542/EEC as regards regionalisation for Argentina and the model certificates relating to the importation of bovine fresh meat from Argentina (5) prohibited imports of de-boned and matured bovine meat from eight departments in the province of Corrientes. A recent Community inspection in Argentina showed that the current animal health restrictions in the eight departments concerned, in particular as regards foot and mouth disease, are no longer necessary. Those restrictions should therefore no longer apply to those areas of Argentina, as requested by that country. |
| --- | --- |

(8)

Due to two outbreaks of foot-and-mouth disease in Argentina in February 2006, Commission Decision 2006/259/EC of 27 March 2006 amending Annex II to Council Decision 79/542/EEC as regards regionalisation for Argentina and the model certificates relating to the importation of bovine fresh meat from Argentina (5) prohibited imports of de-boned and matured bovine meat from eight departments in the province of Corrientes. A recent Community inspection in Argentina showed that the current animal health restrictions in the eight departments concerned, in particular as regards foot and mouth disease, are no longer necessary. Those restrictions should therefore no longer apply to those areas of Argentina, as requested by that country.

| (9) | The inspection also showed that the production of de-boned and matured deer meat in Argentina fulfils the animal health requirements provided for in Decision 79/542/EEC. It is therefore appropriate to authorise imports into the Community of de-boned and matured deer meat from Argentina. |
| --- | --- |

(9)

The inspection also showed that the production of de-boned and matured deer meat in Argentina fulfils the animal health requirements provided for in Decision 79/542/EEC. It is therefore appropriate to authorise imports into the Community of de-boned and matured deer meat from Argentina.

| (10) | Due to two outbreaks of foot-and-mouth disease in Botswana in April 2006, Council Decision 79/542/EEC, as amended by Commission Decision 2006/463/EC (6), prohibited imports of de-boned and matured bovine meat from a part of Botswana. The documentation received from Botswana and the favourable outcome of a Community inspection carried out in that country in March 2007 show that the measures taken by Botswana have been effective in controlling and eliminating the disease. Accordingly, the current animal health restrictions in the concerned part of Botswana should no longer apply. |
| --- | --- |

(10)

Due to two outbreaks of foot-and-mouth disease in Botswana in April 2006, Council Decision 79/542/EEC, as amended by Commission Decision 2006/463/EC (6), prohibited imports of de-boned and matured bovine meat from a part of Botswana. The documentation received from Botswana and the favourable outcome of a Community inspection carried out in that country in March 2007 show that the measures taken by Botswana have been effective in controlling and eliminating the disease. Accordingly, the current animal health restrictions in the concerned part of Botswana should no longer apply.

| (11) | In addition, the Community inspection considered favourably two other regions of Botswana that have been recognised by the OIE as free of FMD without vaccination. It is therefore opportune to allow these areas to export to the EU de-boned and matured bovine, ovine and farmed and wild game meat. |
| --- | --- |

(11)

In addition, the Community inspection considered favourably two other regions of Botswana that have been recognised by the OIE as free of FMD without vaccination. It is therefore opportune to allow these areas to export to the EU de-boned and matured bovine, ovine and farmed and wild game meat.

| (12) | Parts of Colombia are listed in Part 1 of Annex II to Decision 79/542/EEC as parts of a third country from which imports of fresh bovine meat into the Community are authorised. However, Colombia has not submitted any residue monitoring plan for fresh bovine meat in accordance with Commission Decision 2004/432/EC of 29 April 2004 on the approval of residue monitoring plans submitted by third countries in accordance with Council Directive 96/23/EC (7). In addition, no establishments are authorised for export of fresh meat to the Community. Therefore imports of fresh bovine meat from Colombia should no longer be authorised and the necessary amendment made to Part 1 of Annex II to Decision 79/542/EEC. |
| --- | --- |

(12)

Parts of Colombia are listed in Part 1 of Annex II to Decision 79/542/EEC as parts of a third country from which imports of fresh bovine meat into the Community are authorised. However, Colombia has not submitted any residue monitoring plan for fresh bovine meat in accordance with Commission Decision 2004/432/EC of 29 April 2004 on the approval of residue monitoring plans submitted by third countries in accordance with Council Directive 96/23/EC (7). In addition, no establishments are authorised for export of fresh meat to the Community. Therefore imports of fresh bovine meat from Colombia should no longer be authorised and the necessary amendment made to Part 1 of Annex II to Decision 79/542/EEC.

| (13) | In order to give the possibility to the relevant stakeholders to adapt to the new import regime it is appropriate to provide that the present Decision applies from 1 December 2007. |
| --- | --- |

(13)

In order to give the possibility to the relevant stakeholders to adapt to the new import regime it is appropriate to provide that the present Decision applies from 1 December 2007.

| (14) | Decision 79/542/EEC should therefore be amended accordingly. |
| --- | --- |

(14)

Decision 79/542/EEC should therefore be amended accordingly.

| (15) | Commission Decision 96/367/EC of 13 June 1996 concerning protection measures in relation to foot-and-mouth disease in Albania (8) and Commission Decision 96/414/EC of 4 July 1996 concerning protective measures with regard to imports of animals and animal products from the former Yugoslav Republic of Macedonia due to outbreaks of foot-and-mouth disease (9) are obsolete as the provisions provided for therein are now laid down in other Community acts. In the interests of clarity and legal certainty, those Decisions should be expressly repealed. |
| --- | --- |

(15)

Commission Decision 96/367/EC of 13 June 1996 concerning protection measures in relation to foot-and-mouth disease in Albania (8) and Commission Decision 96/414/EC of 4 July 1996 concerning protective measures with regard to imports of animals and animal products from the former Yugoslav Republic of Macedonia due to outbreaks of foot-and-mouth disease (9) are obsolete as the provisions provided for therein are now laid down in other Community acts. In the interests of clarity and legal certainty, those Decisions should be expressly repealed.

| (16) | The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health, |
| --- | --- |

(16)

The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health,

HAS ADOPTED THIS DECISION:

Article 1

Part 1 of Annex II to Decision 79/542/EEC is replaced by the text in the Annex to this Decision.

Article 2

Decisions 96/367/EC and 96/414/EC are repealed.

Article 3

Imports of fresh meat to the EU which were authorised under Decision 79/542/EEC which are no longer authorised by the application of the present Decision shall continue to be authorised for a transitional period of 90 days following the date of application.

Article 4

This Decision shall apply from 1 December 2007.

Article 5

This Decision is addressed to the Member States.

Done at Brussels, 9 November 2007.

For the Commission

Markos KYPRIANOU

Member of the Commission

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(1)  
  OJ L 268, 24.9.1991, p. 56. Directive as last amended by Directive 2006/104/EC (OJ L 363, 20.12.2006, p. 352).

1

(2)  
  OJ L 24, 30.1.1998, p. 9. Directive as last amended by Directive 2006/104/EC.

2

(3)  
  OJ L 18, 23.1.2003, p. 11.

3

(4)  
  OJ L 146, 14.6.1979, p. 15. Decision as last amended by Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

4

(5)  
  OJ L 93, 31.3.2006, p. 65.

5

(6)  
  OJ L 183, 5.7.2006, p. 20.

6

(7)  
  OJ L 154, 30.4.2004, p. 44. Corrected version (OJ L 189, 27.5.2004, p. 33). Decision as last amended by Decision 2007/362/EC (OJ L 138, 30.5.2007, p. 18).

7

(8)  
  OJ L 145, 19.6.1996, p. 17. Decision as amended by Decision 98/373/EC (OJ L 170, 16.6.1998, p. 62).

8

(9)  
  OJ L 167, 6.7.1996, p. 58. Decision as amended by Decision 98/373/EC.

9

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ANNEX

‘ANNEX II

FRESH MEAT

Part 1

LIST OF THIRD COUNTRIES OR PARTS THEREOF (*1)

| Country | Code of Territory | Description of territory | Veterinary certificate | Specific conditions | Closing date (*2) | Opening date (*3) |
| --- | --- | --- | --- | --- | --- | --- |
| Model(s) | SG |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| AL — Albania | AL-0 | Whole country | — | | | | |
| AR — Argentina | AR-0 | Whole country | EQU | | | | |
| AR-1 | The Provinces of: Buenos Aires, Catamarca, Corrientes (except the departments of Berón de Astrada, Capital, Empedrado, General Paz, Itati, Mbucuruyá, San Cosme and San Luís del Palmar), Entre Ríos, La Rioja, Mendoza, Misiones, Neuquen, Rio Negro, San Juan, San Luis, Santa Fe, Tucuman, Cordoba, La Pampa, Santiago del Estero, Chaco Formosa, Jujuy and Salta, excluding the buffer area of 25 km from the border with Bolivia and Paraguay that extends from the Santa Catalina District in the Province of Jujuy, to the Laishi District in the Province of Formosa | BOV | A | 1 | | 18 March 2005 |
| RUF | A | 1 | | 1 December 2007 |
| AR-2 | Chubut, Santa Cruz and Tierra del Fuego | BOV, OVI, RUW, RUF | | | | 1 March 2002 |
| AR-3 | Corrientes: the departments of Berón de Astrada, Capital, Empedrado, General Paz, Itati, Mbucuruyá, San Cosme and San Luís del Palmar | BOV, RUF | A | 1 | | 1 December 2007 |
| AU — Australia | AU-0 | Whole country | BOV, OVI, POR, EQU, RUF, RUW, SUF, SUW | | | | |
| BA — Bosnia Herzegovina | BA-0 | Whole country | — | | | | |
| BH — Bahrain | BH-0 | Whole country | — | | | | |
| BR — Brazil | BR-0 | Whole country | EQU | | | | |
| BR-1 | Part of the State of Minas Gerais (except regional delegations of Oliveira, Passos, São Gonçalo de Sapucai, Setelagoas and Bambuí), State of Espíritu Santo, State of Goias, Part of the State of Mato Grosso comprising the regional units of:






  — | Cuiaba (except for the municipalities of San Antonio de Leverger, Nossa Senhora do Livramento, Pocone and Barão de Melgaço), |

Country

Code of Territory

Description of territory

Veterinary certificate

Specific conditions

Closing date (*2)

Opening date (*3)

Model(s)

SG

1

2

3

4

5

6

7

8

AL — Albania

AL-0

Whole country

—

AR — Argentina

AR-0

Whole country

EQU

AR-1

The Provinces of: Buenos Aires, Catamarca, Corrientes (except the departments of Berón de Astrada, Capital, Empedrado, General Paz, Itati, Mbucuruyá, San Cosme and San Luís del Palmar), Entre Ríos, La Rioja, Mendoza, Misiones, Neuquen, Rio Negro, San Juan, San Luis, Santa Fe, Tucuman, Cordoba, La Pampa, Santiago del Estero, Chaco Formosa, Jujuy and Salta, excluding the buffer area of 25 km from the border with Bolivia and Paraguay that extends from the Santa Catalina District in the Province of Jujuy, to the Laishi District in the Province of Formosa

BOV

A

1

18 March 2005

RUF

A

1

1 December 2007

AR-2

Chubut, Santa Cruz and Tierra del Fuego

BOV, OVI, RUW, RUF

1 March 2002

AR-3

Corrientes: the departments of Berón de Astrada, Capital, Empedrado, General Paz, Itati, Mbucuruyá, San Cosme and San Luís del Palmar

BOV, RUF

A

1

1 December 2007

AU — Australia

AU-0

Whole country

BOV, OVI, POR, EQU, RUF, RUW, SUF, SUW

BA — Bosnia Herzegovina

BA-0

Whole country

—

BH — Bahrain

BH-0

Whole country

—

BR — Brazil

BR-0

Whole country

EQU

BR-1

Part of the State of Minas Gerais (except regional delegations of Oliveira, Passos, São Gonçalo de Sapucai, Setelagoas and Bambuí), State of Espíritu Santo, State of Goias, Part of the State of Mato Grosso comprising the regional units of:

—

Cuiaba (except for the municipalities of San Antonio de Leverger, Nossa Senhora do Livramento, Pocone and Barão de Melgaço),

| — | Caceres (except for the municipality of Caceres), |
| --- | --- |

—

Caceres (except for the municipality of Caceres),

| — | Lucas do Rio Verde, |
| --- | --- |

—

Lucas do Rio Verde,

| — | Rondonopolis (except for the municipality of Itiquiora), |
| --- | --- |

—

Rondonopolis (except for the municipality of Itiquiora),

| — | Barra do Garça, |
| --- | --- |

—

Barra do Garça,

| — | Barra do Burgres, State of Rio Grande do Sul |
| --- | --- |

—

Barra do Burgres, State of Rio Grande do Sul

BOV

A and H

1

1 November 2002

BR-2

State of Santa Catarina

BOV

A and I

1

1 November 2002

BW — Botswana

BW-0

Whole country

EQU, EQW

BW-1

The veterinary disease control zones 3c, 4b, 5, 6, 8, 9 and 18

BOV, OVI, RUF, RUW

F

1

1 December 2007

BW-2

The veterinary disease control zones 10, 11, 12, 13 and 14

BOV, OVI, RUF, RUW

F

1

7 March 2002

BY — Belarus

BY-0

Whole country

—

BZ — Belize

BZ-0

Whole country

BOV, EQU

CA — Canada

CA-0

Whole country

BOV, OVI, POR, EQU, SUF, SUW, RUF, RUW

G

CH — Switzerland

CH-0

Whole country

•

CL — Chile

CL-0

Whole country

BOV, OVI, POR, EQU, RUF, RUW, SUF

CN — China (People’s Republic of)

CN-0

Whole country

—

CO — Colombia

CO-0

Whole country

EQU

CR — Costa Rica

CR-0

Whole country

BOV, EQU

CU — Cuba

CU-0

Whole country

BOV, EQU

DZ — Algeria

DZ-0

Whole country

—

ET — Ethiopia

ET-0

Whole country

—

FK — Falkland Islands

FK-0

Whole country

BOV, OVI, EQU

GL — Greenland

GL-0

Whole country

BOV, OVI, EQU, RUF, RUW

GT — Guatemala

GT-0

Whole country

BOV, EQU

HK — Hong Kong

HK-0

Whole country

—

HN — Honduras

HN-0

Whole country

BOV, EQU

HR — Croatia

HR-0

Whole country

BOV, OVI, EQU, RUF, RUW

IL — Israel

IL-0

Whole country

—

IN — India

IN-0

Whole country

—

IS — Iceland

IS-0

Whole country

BOV, OVI, EQU, RUF, RUW

KE — Kenya

KE-0

Whole country

—

MA — Morocco

MA-0

Whole country

EQU

ME — Montenegro

ME-0

Whole country

BOV, OVI, EQU

MG — Madagascar

MG-0

Whole country

—

MK — Former Yugoslav Republic of Macedonia (*4)

MK-0

Whole country

OVI, EQU

MU — Mauritius

MU-0

Whole country

—

MX — Mexico

MX-0

Whole country

BOV, EQU

NA — Namibia

NA-0

Whole country

EQU, EQW

NA-1

South of the cordon fences which extend from Palgrave Point in the west to Gam in the east

BOV, OVI, RUF, RUW

F

1

NC — New Caledonia

NC-0

Whole country

BOV, RUF, RUW

NI — Nicaragua

NI-0

Whole country

—

NZ — New Zealand

NZ-0

Whole country

BOV, OVI, POR, EQU, RUF, RUW, SUF, SUW

PA — Panama

PA-0

Whole country

BOV, EQU

PY — Paraguay

PY-0

Whole country

EQU

RS — Serbia (*5)

RS-0

Whole country

BOV, OVI, EQU

RU — Russia

RU-0

Whole country

—

RU-1

Region of Murmansk, Yamolo-Nenets autonomous area

RUF

SV — El Salvador

SV-0

Whole country

—

SZ — Swaziland

SZ-0

Whole country

EQU, EQW

SZ-1

Area west of the “red line” fences which extends northwards from the river Usutu to the frontier with South Africa west of Nkalashane

BOV, RUF, RUW

F

1

SZ-2

The veterinary foot and mouth surveillance and vaccination control areas as gazetted as a Statutory Instrument under legal notice number 51 of 2001

BOV, RUF, RUW

F

1

4 August 2003

TH — Thailand

TH-0

Whole country

—

TN — Tunisia

TN-0

Whole country

—

TR — Turkey

TR-0

Whole country

—

TR-1

The provinces of Amasya, Ankara, Aydin, Balikesir, Bursa, Cankiri, Corum, Denizli, Izmir, Kastamonu, Kutahya, Manisa, Usak, Yozgat and Kirikkale

EQU

UA — Ukraine

UA-0

Whole country

—

US — United States

US-0

Whole country

BOV, OVI, POR, EQU, SUF, SUW, RUF, RUW

G

UY — Uruguay

UY-0

Whole country

EQU

BOV

A

1

1 November 2001

OVI

A

1

ZA — South Africa

ZA-0

Whole country

EQU, EQW

ZA-1

The whole country except:

| — | the part of the foot-and-mouth disease control area situated in the veterinary regions of Mpumalanga and Northern provinces, in the district of Ingwavuma of the veterinary region of Natal and in the border area with Botswana east of longitude 28°, and |
| --- | --- |

—

the part of the foot-and-mouth disease control area situated in the veterinary regions of Mpumalanga and Northern provinces, in the district of Ingwavuma of the veterinary region of Natal and in the border area with Botswana east of longitude 28°, and

| — | the district of Camperdown, in the province of KwaZuluNatal |
| --- | --- |

—

the district of Camperdown, in the province of KwaZuluNatal

BOV, OVI, RUF, RUW

F

1

ZW — Zimbabwe

ZW-0

Whole country

—

| • | = | Certificates in accordance with the agreement between the European Community and the Swiss Confederation on trade in agricultural products, OJ L 114, 30.4.2002, p. 132. |
| --- | --- | --- |
| — | = | No certificate laid down and fresh meat imports are prohibited (except for those species where indicated in the line for the whole country). |

•

=

Certificates in accordance with the agreement between the European Community and the Swiss Confederation on trade in agricultural products, OJ L 114, 30.4.2002, p. 132.

—

=

No certificate laid down and fresh meat imports are prohibited (except for those species where indicated in the line for the whole country).

| “1” | Category restrictions:
  No offal authorised (except, in the case of bovine species, diaphragm and masseter muscles).’ |
| --- | --- |

“1”

Category restrictions:

No offal authorised (except, in the case of bovine species, diaphragm and masseter muscles).’

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(*1)  Without prejudice to specific certification requirements provided for by Community agreements with third countries.

*1

(*2)  Meat from animals slaughtered on or before the date indicated in column 7 can be imported into the Community for 90 days from that date.

*2

Consignments on the high seas can be imported into the Community if certified before the date indicated in column 7 for 40 days from that date.

(N.B.: no date in column 7 means that there are no time restrictions).

(*3)  Only meat from animals slaughtered on or after the date indicated in column 8 can be imported into the Community (no date in column 8 means that there are no time restrictions).

*3

(*4)  The former Yugoslav Republic of Macedonia; provisional code that does not prejudge in any way the definitive nomenclature for this country, which will be agreed following the conclusion of negotiations currently taking place on this subjet in the United Nations.

*4

(*5)  Not including Kosovo as defined by United Nations Security Council Resolution 1244 of 10 June 1999.

*5

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