# Official Journal L 93/12 A

| | ISSN 1725-2555 |
| --- | --- |
| Official Journal
  of the European Union | L 93 |
| | |
| English edition | Legislation | Volume 4812 April 2005 |

ISSN 1725-2555

Official Journal

of the European Union

L 93

English edition

Legislation

Volume 4812 April 2005

---

| Contents | | I   Acts whose publication is obligatory | page |
| --- | --- | --- | --- |
| | | Commission Regulation (EC) No 549/2005 of 11 April 2005 establishing the standard import values for determining the entry price of certain fruit and vegetables | 1 |
| | * | Commission Regulation (EC) No 550/2005 of 7 April 2005 amending Regulation (EC) No 416/2004 laying down transitional measures for the application of Council Regulation (EC) No 2201/96 and Regulation (EC) No 1535/2003 as regards the aid scheme for products processed from fruit and vegetables | 3 |
| | * | Commission Regulation (EC) No 551/2005 of 11 April 2005 setting the additional amount to be paid for tomatoes in the Czech Republic, Hungary, Malta, Poland and Slovakia under Regulation (EC) No 416/2004 | 5 |
| | * | Commission Regulation (EC) No 552/2005 of 11 April 2005 imposing a provisional anti-dumping duty on imports of certain magnesia bricks originating in the People's Republic of China | 6 |
| | | Commission Regulation (EC) No 553/2005 of 11 April 2005 providing for a further allocation of import rights under Regulation (EC) No 1081/1999 for bulls, cows and heifers other than for slaughter of certain Alpine and mountain breeds | 31 |
| | | Commission Regulation (EC) No 554/2005 of 11 April 2005 fixing Community producer and import prices for carnations and roses with a view to the application of the arrangements governing imports of certain floricultural products originating in Jordan | 32 |

Contents

I   Acts whose publication is obligatory

page

Commission Regulation (EC) No 549/2005 of 11 April 2005 establishing the standard import values for determining the entry price of certain fruit and vegetables

1

*

Commission Regulation (EC) No 550/2005 of 7 April 2005 amending Regulation (EC) No 416/2004 laying down transitional measures for the application of Council Regulation (EC) No 2201/96 and Regulation (EC) No 1535/2003 as regards the aid scheme for products processed from fruit and vegetables

3

*

Commission Regulation (EC) No 551/2005 of 11 April 2005 setting the additional amount to be paid for tomatoes in the Czech Republic, Hungary, Malta, Poland and Slovakia under Regulation (EC) No 416/2004

5

*

Commission Regulation (EC) No 552/2005 of 11 April 2005 imposing a provisional anti-dumping duty on imports of certain magnesia bricks originating in the People's Republic of China

6

Commission Regulation (EC) No 553/2005 of 11 April 2005 providing for a further allocation of import rights under Regulation (EC) No 1081/1999 for bulls, cows and heifers other than for slaughter of certain Alpine and mountain breeds

31

Commission Regulation (EC) No 554/2005 of 11 April 2005 fixing Community producer and import prices for carnations and roses with a view to the application of the arrangements governing imports of certain floricultural products originating in Jordan

32

| | | II   Acts whose publication is not obligatory |
| --- | --- | --- |
| | | Commission |
| | * | Commission Decision of 4 April 2005 on simplified certificates for the importation of bovine semen and fresh pig meat from Canada and amending Decision 2004/639/EC
  (notified under document number C(2005) 1002)

   (
  1
  ) | 34 |
| | * | Decision No 1/2005 of the Committee of 7 March 2005 established under the Agreement between the European Community and the Swiss Confederation on Mutual Recognition in relation to the listing of a Conformity Assessment Body under the Sectoral Chapter on Equipment and protective systems intended for use in potentially explosive atmospheres | 40 |
| | * | Commission Recommendation of 6 April 2005 on broadband electronic communications through powerlines (
  1
  ) | 42 |

II   Acts whose publication is not obligatory

Commission

*

Commission Decision of 4 April 2005 on simplified certificates for the importation of bovine semen and fresh pig meat from Canada and amending Decision 2004/639/EC
  (notified under document number C(2005) 1002)

   (
  1
  )

(notified under document number C(2005) 1002)

1

34

*

Decision No 1/2005 of the Committee of 7 March 2005 established under the Agreement between the European Community and the Swiss Confederation on Mutual Recognition in relation to the listing of a Conformity Assessment Body under the Sectoral Chapter on Equipment and protective systems intended for use in potentially explosive atmospheres

40

*

Commission Recommendation of 6 April 2005 on broadband electronic communications through powerlines (
  1
  )

1

42

| | | Corrigenda |
| --- | --- | --- |
| | * | Corrigendum to Decision No 197 of 23 March 2004 on the transitional periods for the introduction of the European Health Insurance Card in accordance with Article 5 of Decision No 191 ( OJ L 343, 19.11.2004 ) | 45 |

Corrigenda

*

Corrigendum to Decision No 197 of 23 March 2004 on the transitional periods for the introduction of the European Health Insurance Card in accordance with Article 5 of Decision No 191 ( OJ L 343, 19.11.2004 )

45

| | |
| --- | --- |
| | (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 whose publication is obligatory

| 12.4.2005 | EN | Official Journal of the European Union | L 93/1 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/1

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COMMISSION REGULATION (EC) No 549/2005

of 11 April 2005

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 12 April 2005.

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

Done at Brussels, 11 April 2005.

For the Commission

J. M. SILVA RODRÍGUEZ

Director-General for Agriculture and Rural Development

---

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

1

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ANNEX

to Commission Regulation of 11 April 2005 establishing the standard import values for determining the entry price of certain fruit and vegetables

| (EUR/100 kg) |
| --- |
| CN code | Third country code (1) | Standard import value |
| 0702 00 00 | 052 | 89,9 |
| 096 | 105,7 |
| 204 | 56,9 |
| 212 | 129,8 |
| 624 | 129,4 |
| 999 | 102,3 |
| 0707 00 05 | 052 | 119,4 |
| 204 | 45,3 |
| 999 | 82,4 |
| 0709 10 00 | 220 | 79,0 |
| 999 | 79,0 |
| 0709 90 70 | 052 | 105,9 |
| 096 | 75,1 |
| 204 | 69,9 |
| 999 | 83,6 |
| 0805 10 20 | 052 | 47,2 |
| 204 | 49,9 |
| 212 | 55,0 |
| 220 | 49,8 |
| 624 | 56,0 |
| 999 | 51,6 |
| 0805 50 10 | 052 | 62,1 |
| 400 | 67,7 |
| 624 | 80,9 |
| 999 | 70,2 |
| 0808 10 80 | 388 | 85,4 |
| 400 | 112,7 |
| 404 | 81,2 |
| 508 | 68,3 |
| 512 | 73,6 |
| 524 | 73,2 |
| 528 | 72,6 |
| 720 | 85,3 |
| 804 | 109,9 |
| 999 | 84,7 |
| 0808 20 50 | 388 | 77,1 |
| 512 | 59,7 |
| 528 | 62,3 |
| 720 | 39,8 |
| 999 | 59,7 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

052

89,9

096

105,7

204

56,9

212

129,8

624

129,4

999

102,3

0707 00 05

052

119,4

204

45,3

999

82,4

0709 10 00

220

79,0

999

79,0

0709 90 70

052

105,9

096

75,1

204

69,9

999

83,6

0805 10 20

052

47,2

204

49,9

212

55,0

220

49,8

624

56,0

999

51,6

0805 50 10

052

62,1

400

67,7

624

80,9

999

70,2

0808 10 80

388

85,4

400

112,7

404

81,2

508

68,3

512

73,6

524

73,2

528

72,6

720

85,3

804

109,9

999

84,7

0808 20 50

388

77,1

512

59,7

528

62,3

720

39,8

999

59,7

---

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

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| 12.4.2005 | EN | Official Journal of the European Union | L 93/3 |
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12.4.2005

EN

Official Journal of the European Union

L 93/3

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COMMISSION REGULATION (EC) No 550/2005

of 7 April 2005

amending Regulation (EC) No 416/2004 laying down transitional measures for the application of Council Regulation (EC) No 2201/96 and Regulation (EC) No 1535/2003 as regards the aid scheme for products processed from fruit and vegetables

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to the Treaty of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia,

Having regard to the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia and in particular the first paragraph of Article 41 thereof,

Whereas:

| (1) | Article 3(1) of Commission Regulation (EC) No 416/2004 (1), which establishes transitional measures by virtue of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (hereinafter referred to as the new Member States), provides for the payment of an additional amount when an examination of compliance with the threshold for fixing the aid for the 2005/06 marketing year shows that the Community threshold has not been exceeded. |
| --- | --- |

(1)

Article 3(1) of Commission Regulation (EC) No 416/2004 (1), which establishes transitional measures by virtue of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (hereinafter referred to as the new Member States), provides for the payment of an additional amount when an examination of compliance with the threshold for fixing the aid for the 2005/06 marketing year shows that the Community threshold has not been exceeded.

| (2) | As established by Commission Regulation (EC) No 170/2005 of 31 January 2005 fixing the aid for tomatoes for processing for the 2005/2006 marketing year (2), the quantities of tomatoes in respect of which aid applications have been lodged for the 2004/2005 marketing year in the new Member States fall within their national and Community thresholds for tomato processing, based on the quantities for which aid applications have been lodged for 2004/2005. |
| --- | --- |

(2)

As established by Commission Regulation (EC) No 170/2005 of 31 January 2005 fixing the aid for tomatoes for processing for the 2005/2006 marketing year (2), the quantities of tomatoes in respect of which aid applications have been lodged for the 2004/2005 marketing year in the new Member States fall within their national and Community thresholds for tomato processing, based on the quantities for which aid applications have been lodged for 2004/2005.

| (3) | Having noted that the new Member States have complied with their national thresholds, there are no grounds for delaying payment of the additional amount provided for in Article 3 of Regulation (EC) No 416/2004, since precautionary measures are no longer necessary. This payment should therefore proceed. |
| --- | --- |

(3)

Having noted that the new Member States have complied with their national thresholds, there are no grounds for delaying payment of the additional amount provided for in Article 3 of Regulation (EC) No 416/2004, since precautionary measures are no longer necessary. This payment should therefore proceed.

| (4) | Regulation (EC) No 416/2004 should be amended as a result. |
| --- | --- |

(4)

Regulation (EC) No 416/2004 should be amended as a result.

| (5) | The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Processed Fruit and Vegetables, |
| --- | --- |

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Processed Fruit and Vegetables,

HAS ADOPTED THIS REGULATION:

Article 1

Article 3 of Regulation (EC) No 416/2004 is replaced by the following:

‘Article 3

1.   Where the examination of compliance with the threshold for the purpose of fixing the aid for the 2005/2006 marketing year shows that the Community threshold has not been exceeded, an additional amount equal to 25 % of the aid provided for in Article 4(2) of Regulation (EC) No 2201/96 shall be paid in all the new Member States after the 2004/2005 marketing year, except in the case of tomatoes for which the additional amount shall be paid once it has been established that the new Member States have observed their national thresholds.

2.   Where the examination of compliance with the threshold for the purpose of fixing the aid for the 2005/2006 marketing year shows that the Community threshold has been exceeded, in those new Member States in which the threshold has not been exceeded or in which the threshold has been exceeded by less than 25 % an additional amount shall be paid after the end of the 2004/2005 marketing year, except in the case of tomatoes for which the additional amount shall be paid once it has been established that the new Member States have observed their national thresholds.

The additional amount referred to in the first subparagraph shall be based on the actual amount by which the national threshold concerned has been exceeded, up to a maximum of 25 % of the aid laid down in Article 4(2) of Regulation (EC) No 2201/96.’

Article 2

This Regulation shall enter into force on the third 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, 7 April 2005.

For the Commission

Mariann FISCHER BOEL

Member of the Commission

---

(1)  
  OJ L 68, 5.3.2004, p. 12.

1

(2)  
  OJ L 28, 1.2.2005, p. 29.

2

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| 12.4.2005 | EN | Official Journal of the European Union | L 93/5 |
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12.4.2005

EN

Official Journal of the European Union

L 93/5

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COMMISSION REGULATION (EC) No 551/2005

of 11 April 2005

setting the additional amount to be paid for tomatoes in the Czech Republic, Hungary, Malta, Poland and Slovakia under Regulation (EC) No 416/2004

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to the Treaty of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia,

Having regard to the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia, and in particular Article the first paragraph of Article 41 thereof,

Having regard to Commission Regulation (EC) No 416/2004 of 5 March 2004 laying down transitional measures for the application of Council Regulation (EC) No 2201/96 and Regulation (EC) No 1535/2003 by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union (1), and in particular Article 3(2) thereof,

Whereas:

| (1) | The quantities of tomatoes covered by aid applications for the 2004/2005 marketing years as notified by Member States, in accordance with Article 39(2) of Commission Regulation (EC) No 1535/2003 of 29 August 2003 laying down detailed rules for applying Council Regulation (EC) No 2201/96 as regards the aid scheme for products processed from fruit and vegetables (2), exceed the Community threshold by 1,5 %. A supplement is therefore to be paid during of the marketing year 2004/2005 in the Member States who joined the European Union on 1 May 2004 and have not exceeded their national threshold or in which the threshold has been exceeded by less than 25 %. |
| --- | --- |

(1)

The quantities of tomatoes covered by aid applications for the 2004/2005 marketing years as notified by Member States, in accordance with Article 39(2) of Commission Regulation (EC) No 1535/2003 of 29 August 2003 laying down detailed rules for applying Council Regulation (EC) No 2201/96 as regards the aid scheme for products processed from fruit and vegetables (2), exceed the Community threshold by 1,5 %. A supplement is therefore to be paid during of the marketing year 2004/2005 in the Member States who joined the European Union on 1 May 2004 and have not exceeded their national threshold or in which the threshold has been exceeded by less than 25 %.

| (2) | For the marketing year 2004/2005 the national thresholds in the Czech Republic, Hungary, Malta, Poland and Slovakia have not been overrun. The full aid supplement of EUR 8,62 per tonne should therefore be paid in those countries. |
| --- | --- |

(2)

For the marketing year 2004/2005 the national thresholds in the Czech Republic, Hungary, Malta, Poland and Slovakia have not been overrun. The full aid supplement of EUR 8,62 per tonne should therefore be paid in those countries.

| (3) | For the marketing year 2004/2005, producers in Cyprus have not submitted any application for aid for tomatoes for processing. Therefore no aid supplement for the marketing year 2004/2005 should be paid in that Member State, |
| --- | --- |

(3)

For the marketing year 2004/2005, producers in Cyprus have not submitted any application for aid for tomatoes for processing. Therefore no aid supplement for the marketing year 2004/2005 should be paid in that Member State,

HAS ADOPTED THIS REGULATION:

Article 1

The additional amount of EUR 8,62 per tonne of tomatoes for processing referred to in Article 3(2) of Regulation (EC) No 416/2004 shall be paid during the 2004/2005 marketing year in the Czech Republic, Hungary, Malta, Poland and Slovakia.

Article 2

This Regulation shall enter into force on the third 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, 11 April 2005.

For the Commission

Mariann FISCHER BOEL

Member of the Commission

---

(1)  
  OJ L 68, 6.3.2004, p. 12.

1

(2)  
  OJ L 218, 30.8.2003, p. 14. Regulation as last amended by Regulation (EC) No 180/2005 (OJ L 30, 3.2.2005, p. 7).

2

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| 12.4.2005 | EN | Official Journal of the European Union | L 93/6 |
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12.4.2005

EN

Official Journal of the European Union

L 93/6

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COMMISSION REGULATION (EC) No 552/2005

of 11 April 2005

imposing a provisional anti-dumping duty on imports of certain magnesia bricks originating in the People's Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Communities (1) (the basic Regulation) and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

A.   PROCEDURE

1.   Initiation

| (1) | On 13 July 2004 the Commission announced by a notice published in the Official Journal of the European Union (2) the initiation of an anti-dumping proceeding with regard to imports into the Community of certain magnesia bricks originating in the People’s Republic of China (PRC). |
| --- | --- |

(1)

On 13 July 2004 the Commission announced by a notice published in the Official Journal of the European Union (2) the initiation of an anti-dumping proceeding with regard to imports into the Community of certain magnesia bricks originating in the People’s Republic of China (PRC).

Official Journal of the European Union

2

| (2) | The proceeding was initiated as a result of a complaint lodged 7 June 2004 by the European Refractories Producers Federation (P.R.E.) (the complainant) on behalf of producers representing a major proportion, in this case more than 50 %, of the total Community production of certain magnesia bricks. The complaint contained evidence of dumping of the product concerned and of material injury resulting therefrom, which was considered sufficient to justify the initiation of a proceeding. |
| --- | --- |

(2)

The proceeding was initiated as a result of a complaint lodged 7 June 2004 by the European Refractories Producers Federation (P.R.E.) (the complainant) on behalf of producers representing a major proportion, in this case more than 50 %, of the total Community production of certain magnesia bricks. The complaint contained evidence of dumping of the product concerned and of material injury resulting therefrom, which was considered sufficient to justify the initiation of a proceeding.

2.   Parties concerned by the proceeding

| (3) | The Commission officially advised the complainant, other Community producers, the exporting producers, importers, suppliers and users as well as user associations known to be concerned, and representatives of the PRC of the opening 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. |
| --- | --- |

(3)

The Commission officially advised the complainant, other Community producers, the exporting producers, importers, suppliers and users as well as user associations known to be concerned, and representatives of the PRC of the opening 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 complainant producers, other cooperating Community producers, exporting producers, importers, suppliers, users and user associations 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. |
| --- | --- |

(4)

The complainant producers, other cooperating Community producers, exporting producers, importers, suppliers, users and user associations 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) | 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 market economy treatment and individual treatment claim forms to the Chinese companies known to be concerned. Eight companies requested MET pursuant to Article 2(7) of the basic Regulation or individual treatment should the investigation establish that they did not meet the conditions for MET and one company requested only IT. |
| --- | --- |

(5)

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 market economy treatment and individual treatment claim forms to the Chinese companies known to be concerned. Eight companies requested MET pursuant to Article 2(7) of the basic Regulation or individual treatment should the investigation establish that they did not meet the conditions for MET and one company requested only IT.

| (6) | In the notice of initiation, the Commission indicated that sampling may be applied in this investigation. However, given the lower than expected number of exporting producers in the PRC which indicated their willingness to cooperate, it was decided that sampling was not required. |
| --- | --- |

(6)

In the notice of initiation, the Commission indicated that sampling may be applied in this investigation. However, given the lower than expected number of exporting producers in the PRC which indicated their willingness to cooperate, it was decided that sampling was not required.

| (7) | The Commission sent questionnaires 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 two Community producers included in the complaint, three other Community producers, nine exporting producers in the PRC, one trader related to one Chinese exporter and located in South Korea, one trader related to one Chinese exporter and located in the Isle of Man, two importers related to one Chinese exporter and located in the Community, five suppliers of raw materials, three unrelated importers and 16 unrelated users (steel producers) in the Community. |
| --- | --- |

(7)

The Commission sent questionnaires 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 two Community producers included in the complaint, three other Community producers, nine exporting producers in the PRC, one trader related to one Chinese exporter and located in South Korea, one trader related to one Chinese exporter and located in the Isle of Man, two importers related to one Chinese exporter and located in the Community, five suppliers of raw materials, three unrelated importers and 16 unrelated users (steel producers) in the Community.

| (8) | The Commission sought and verified all the information deemed necessary for a provisional determination of dumping, resulting injury and Community interest and carried out verifications at the premises of the following companies:






  (a) | Community producers:







  — | RHI AG, Austria (RHI) |
| --- | --- | --- | --- |

(8)

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

(a)

Community producers:

Community producers:

—

RHI AG, Austria (RHI)

| — | LWB Refractories GmbH, Germany (LWB) |
| --- | --- |

—

LWB Refractories GmbH, Germany (LWB)

| — | Refratechnik Holding GmbH, (responses from Refratechnik Cement GmbH and Refratechnik Steel GmbH, Germany (Refratechnik). |
| --- | --- |

—

Refratechnik Holding GmbH, (responses from Refratechnik Cement GmbH and Refratechnik Steel GmbH, Germany (Refratechnik).

No on-spot verifications have been carried out with regard to Refractarios Burcena S.L., Spain and Ceramica Del Nalon SA, Spain as each of these two companies accounted only for a very small percentage of Community production.

| (b) | Exporting producers in the PRC:







  — | RHI Refractories Liaoning Co. Ltd |
| --- | --- | --- |

(b)

Exporting producers in the PRC:

Exporting producers in the PRC:

—

RHI Refractories Liaoning Co. Ltd

| — | Yingkou Kyushu Refractories Co. Ltd |
| --- | --- |

—

Yingkou Kyushu Refractories Co. Ltd

| — | Yingkou Guangyang Refractories Co. Ltd |
| --- | --- |

—

Yingkou Guangyang Refractories Co. Ltd

| — | Yingkou Sanhua Refractory Materials Co. Ltd |
| --- | --- |

—

Yingkou Sanhua Refractory Materials Co. Ltd

| — | Dashiqiao City Magnesite Refractory Factory Co. Ltd |
| --- | --- |

—

Dashiqiao City Magnesite Refractory Factory Co. Ltd

| — | Dashiqiao Sanqiang Refractory Materials Co. Ltd |
| --- | --- |

—

Dashiqiao Sanqiang Refractory Materials Co. Ltd

| — | Liaoning Mayerton Refractories Co. Ltd |
| --- | --- |

—

Liaoning Mayerton Refractories Co. Ltd

| — | Yingkou Qinghua Refractories Co. Ltd |
| --- | --- |

—

Yingkou Qinghua Refractories Co. Ltd

| — | Yingkou Orind Refractories Ltd. |
| --- | --- |

—

Yingkou Orind Refractories Ltd.

| (c) | Related traders:







  — | WonJin KR Co., Ltd, Yangsan-si, South Korea |
| --- | --- | --- |

(c)

Related traders:

Related traders:

—

WonJin KR Co., Ltd, Yangsan-si, South Korea

| — | Mayerton Refractories Ltd, Isle of Man. |
| --- | --- |

—

Mayerton Refractories Ltd, Isle of Man.

| (d) | Related importers:







  — | Refratechnik Steel GmbH, Düsseldorf, Germany |
| --- | --- | --- |

(d)

Related importers:

Related importers:

—

Refratechnik Steel GmbH, Düsseldorf, Germany

| — | RHI AG Ltd, Vienna, Austria. |
| --- | --- |

—

RHI AG Ltd, Vienna, Austria.

| (e) | Community users:







  — | Corus Group plc, London, United Kingdom |
| --- | --- | --- |

(e)

Community users:

Community users:

—

Corus Group plc, London, United Kingdom

| — | Hüttenwerke Krupp Mannesmann GmbH, Duisburg, Germany. |
| --- | --- |

—

Hüttenwerke Krupp Mannesmann GmbH, Duisburg, Germany.

| (9) | In light of the need to establish a normal value for exporting producers in the PRC to which MET might not be granted, a verification to establish normal value on the basis of data from an analogue country took place at the premises of the following companies: | Producers in the United States of America (USA):







  — | LWB Refractories Company |
| --- | --- | --- | --- |

(9)

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

Producers in the United States of America (USA):

Producers in the United States of America (USA):

—

LWB Refractories Company

| — | Resco Products Inc. |
| --- | --- |

—

Resco Products Inc.

3.   Investigation period (IP)

| (10) | The investigation of dumping and injury covered the period from 1 April 2003 to 31 March 2004 (IP). The examination of trends relevant for the assessment of injury covered the period from 1 January 2001 to the end of the investigation period (period considered). |
| --- | --- |

(10)

The investigation of dumping and injury covered the period from 1 April 2003 to 31 March 2004 (IP). The examination of trends relevant for the assessment of injury covered the period from 1 January 2001 to the end of the investigation period (period considered).

4.   Product concerned and like product

4.1.   General

| (11) | Magnesia bricks are normally used in steel production as a lining of the vessels in which the steel is melted. The product is normally produced to standard chemical specifications which are then altered to fit the demands of the end user. Accordingly, the number of individual product types is vast. Therefore, it has been decided to classify the product according to certain groupings for comparison purposes. |
| --- | --- |

(11)

Magnesia bricks are normally used in steel production as a lining of the vessels in which the steel is melted. The product is normally produced to standard chemical specifications which are then altered to fit the demands of the end user. Accordingly, the number of individual product types is vast. Therefore, it has been decided to classify the product according to certain groupings for comparison purposes.

4.2.   Product concerned

| (12) | The product concerned is chemically bonded, unfired magnesia bricks, whose magnesia component contains at least 80 % MgO, whether or not containing magnesite, originating in the PRC (the product concerned), normally declared within CN codes ex 6815 91 00 and ex 6815 99 10. However, the investigation has shown that the product concerned was also imported under CN codes ex 6815 10 10, ex 6815 99 90, ex 6902 10 00, ex 6903 90 20 and ex 6903 90 90 (ex 6903 90 20 before 1 January 2004). |
| --- | --- |

(12)

The product concerned is chemically bonded, unfired magnesia bricks, whose magnesia component contains at least 80 % MgO, whether or not containing magnesite, originating in the PRC (the product concerned), normally declared within CN codes ex 6815 91 00 and ex 6815 99 10. However, the investigation has shown that the product concerned was also imported under CN codes ex 6815 10 10, ex 6815 99 90, ex 6902 10 00, ex 6903 90 20 and ex 6903 90 90 (ex 6903 90 20 before 1 January 2004).

4.3.   Like product

| (13) | The investigation has shown that all types of the product concerned as defined in the preceding recital, despite differences in a variety of factors such as, inter alia, the ratio between the different raw materials, additives and post treatments, shapes and sizes are used for the same purposes. |
| --- | --- |

(13)

The investigation has shown that all types of the product concerned as defined in the preceding recital, despite differences in a variety of factors such as, inter alia, the ratio between the different raw materials, additives and post treatments, shapes and sizes are used for the same purposes.

inter alia

| (14) | No differences were found between the product concerned and the magnesia bricks produced and sold on the domestic market in the PRC and the USA, which served as an analogue country for the purpose of establishing the normal value with respect to imports from the PRC. Indeed, these magnesia bricks have the same basic physical and chemical characteristics and uses compared with those exported from the PRC to the Community. |
| --- | --- |

(14)

No differences were found between the product concerned and the magnesia bricks produced and sold on the domestic market in the PRC and the USA, which served as an analogue country for the purpose of establishing the normal value with respect to imports from the PRC. Indeed, these magnesia bricks have the same basic physical and chemical characteristics and uses compared with those exported from the PRC to the Community.

| (15) | Likewise, no differences were found between the product concerned and the magnesia bricks produced by the complainant and sold on the Community market. They both share the same physical and chemical characteristics and uses. |
| --- | --- |

(15)

Likewise, no differences were found between the product concerned and the magnesia bricks produced by the complainant and sold on the Community market. They both share the same physical and chemical characteristics and uses.

| (16) | It is therefore concluded that all types of magnesia bricks form one product and are considered to be alike within the meaning of Article 1(4) of the basic Regulation. |
| --- | --- |

(16)

It is therefore concluded that all types of magnesia bricks form one product and are considered to be alike within the meaning of Article 1(4) of the basic Regulation.

B.   DUMPING

1.   Market Economy Treatment (MET)

| (17) | 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). Briefly, and for ease of reference only, these criteria are set out in summarised form below:






  — | business decisions and costs are made in response to market conditions, |
| --- | --- | --- |

(17)

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). Briefly, and for ease of reference only, these criteria are set out in summarised form below:

—

business decisions and costs are made in response to market conditions,

| — | accounting records are independently audited and applied for all purposes, |
| --- | --- |

—

accounting records are independently audited and applied for all purposes,

| — | there are no significant distortions carried over from former non-market economy system, |
| --- | --- |

—

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

| — | legal certainty and stability is provided by bankruptcy and property laws, |
| --- | --- |

—

legal certainty and stability is provided by bankruptcy and property laws,

| — | currency exchanges are carried out at the market rate. |
| --- | --- |

—

currency exchanges are carried out at the market rate.

| (18) | Eight exporting producers in the PRC requested MET pursuant to Article 2(7)(b) of the basic Regulation and replied to the MET claim form for exporting producers. |
| --- | --- |

(18)

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

| (19) | For the eight exporting producers and their related companies involved in the production and/or commercialisation of the product concerned located in the PRC, the Commission sought and verified at the premises of these companies all information submitted in the MET applications as deemed necessary. |
| --- | --- |

(19)

For the eight exporting producers and their related companies involved in the production and/or commercialisation of the product concerned located in the PRC, the Commission sought and verified at the premises of these companies all information submitted in the MET applications as deemed necessary.

| (20) | The investigation revealed that two out of the eight Chinese exporting producers fulfilled all of the conditions for granting MET. The two exporting producers in the PRC which obtained MET are:






  — | Yingkou Sanhua Refractory Materials Co. Ltd |
| --- | --- | --- |

(20)

The investigation revealed that two out of the eight Chinese exporting producers fulfilled all of the conditions for granting MET. The two exporting producers in the PRC which obtained MET are:

—

Yingkou Sanhua Refractory Materials Co. Ltd

| — | Liaoning Mayerton Refractories Co. Ltd. |
| --- | --- |

—

Liaoning Mayerton Refractories Co. Ltd.

| (21) | The remaining six claims had to be rejected. The following table summarises the determination for the six companies for which MET was not granted against each of the five criteria as set out in Article 2(7)(c) of the basic Regulation.










  Company | Criteria |
| --- | --- | --- |
| Criterion 1
  Article 2(7)(c) indent 1 | Criterion 2
  Article 2(7)(c) indent 2 | Criterion 3
  Article 2(7)(c) indent 3 | Criterion 4
  Article 2(7)(c) indent 4 | Criterion 5
  Article 2(7)(c) indent 5 |
| 1 | Met | Met | Not met | Met | Met |
| 2 | No decision | Not met | Met | Met | Met |
| 3 | No decision | Not met | Met | Met | Met |
| 4 | Not met | Not met | Not met | Met | Met |
| 5 | Not met | Not met | Met | Met | Met |
| 6 | Not met | Not met | Not met | Met | Met |
| Source: Verified questionnaire replies of cooperating Chinese exporters. |

(21)

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

Company

Criteria

Criterion 1

Article 2(7)(c) indent 1

Criterion 2

Article 2(7)(c) indent 2

Criterion 3

Article 2(7)(c) indent 3

Criterion 4

Article 2(7)(c) indent 4

Criterion 5

Article 2(7)(c) indent 5

1

Met

Met

Not met

Met

Met

2

No decision

Not met

Met

Met

Met

3

No decision

Not met

Met

Met

Met

4

Not met

Not met

Not met

Met

Met

5

Not met

Not met

Met

Met

Met

6

Not met

Not met

Not met

Met

Met

Source: Verified questionnaire replies of cooperating Chinese exporters.

Source

| (22) | The companies concerned and the complainant were given an opportunity to comment on the above findings. |
| --- | --- |

(22)

The companies concerned and the complainant were given an opportunity to comment on the above findings.

| (23) | All six exporting producers submitted that the determination was wrong and that MET should be granted to them for the reasons set out below: |
| --- | --- |

(23)

All six exporting producers submitted that the determination was wrong and that MET should be granted to them for the reasons set out below:

| (24) | Concerning criterion 1, one company argued that although a risk of State interference exists, it does not take place in practice. Other companies referred to Article VI of the GATT 1994 and doubted whether the Commission’s decision was in line with WTO law. They claimed that since it had been shown in this investigation that there was no State Monopoly on the manufacture and sale of the product and that there is no evidence that the Chinese Government has fixed all domestic sales prices for magnesium bricks, the companies had discharged their burden of proof that free competition and accordingly market economy conditions prevail with regard to the manufacture and sale of the product. |
| --- | --- |

(24)

Concerning criterion 1, one company argued that although a risk of State interference exists, it does not take place in practice. Other companies referred to Article VI of the GATT 1994 and doubted whether the Commission’s decision was in line with WTO law. They claimed that since it had been shown in this investigation that there was no State Monopoly on the manufacture and sale of the product and that there is no evidence that the Chinese Government has fixed all domestic sales prices for magnesium bricks, the companies had discharged their burden of proof that free competition and accordingly market economy conditions prevail with regard to the manufacture and sale of the product.

| (25) | As acknowledged by the Court of First Instance, the burden of proof is on the exporting producer to demonstrate that it fulfils MET criteria. More importantly, during the investigation it was found that the company is established under the special Township law which provides possibilities for state interference and no exceptions to the application of this law were found to exist. Any re-negotiation of the Articles of Association would still leave untouched the status of the company. It was found that the local authority is involved in major decisions. Moreover, no independent evaluation was made as to whether the investments in the company reflect fair market prices, neither when the company was established nor when additional capital was inserted later into the company. The company has, in addition, according to the Business Licence, the possibility to make compensatory trade and barter trade and could not prove that this had not taken place. Based on the above, the Commission concluded that that the company did not meet criterion 1. On this basis, and in line with the basic Regulation, which also reflects the Community’s international obligations arising from the WTO, the arguments therefore have to be rejected. |
| --- | --- |

(25)

As acknowledged by the Court of First Instance, the burden of proof is on the exporting producer to demonstrate that it fulfils MET criteria. More importantly, during the investigation it was found that the company is established under the special Township law which provides possibilities for state interference and no exceptions to the application of this law were found to exist. Any re-negotiation of the Articles of Association would still leave untouched the status of the company. It was found that the local authority is involved in major decisions. Moreover, no independent evaluation was made as to whether the investments in the company reflect fair market prices, neither when the company was established nor when additional capital was inserted later into the company. The company has, in addition, according to the Business Licence, the possibility to make compensatory trade and barter trade and could not prove that this had not taken place. Based on the above, the Commission concluded that that the company did not meet criterion 1. On this basis, and in line with the basic Regulation, which also reflects the Community’s international obligations arising from the WTO, the arguments therefore have to be rejected.

| (26) | Concerning criterion 2, some companies claimed that the alleged deficiencies in their accounting practices were irrelevant for the question of whether market economy conditions prevail with regard to the manufacture, and sale of the product. Moreover, these companies argued that, imposing such additional requirements as an obligation to use international standards, is unrelated to the issue of whether market economy conditions prevail. They claimed that it is a violation of the Community’s obligations under GATT/WTO, in particular a violation of the explanatory note of GATT Article VI as well as Paragraph 15 (a)(ii) of the Decision of 10 November 2001, i.e. the Protocol on the accession of the People's Republic of China. |
| --- | --- |

(26)

Concerning criterion 2, some companies claimed that the alleged deficiencies in their accounting practices were irrelevant for the question of whether market economy conditions prevail with regard to the manufacture, and sale of the product. Moreover, these companies argued that, imposing such additional requirements as an obligation to use international standards, is unrelated to the issue of whether market economy conditions prevail. They claimed that it is a violation of the Community’s obligations under GATT/WTO, in particular a violation of the explanatory note of GATT Article VI as well as Paragraph 15 (a)(ii) of the Decision of 10 November 2001, i.e. the Protocol on the accession of the People's Republic of China.

| (27) | Furthermore, some companies argued that by imposing the obligation to apply international accounting standards (IAS) on foreign exporters while they are not imposed on the domestic industry, the Community applies its trade laws not in an ‘impartial’ way. Thus, it is claimed that the Community industry is put in a more favourable position than exporters. However, it is to be noted that the analysis of whether the companies fulfilled the criteria for obtaining market economy treatment was carried out on the basis of Article 2(7)(c) of the basic Regulation. Since this evaluation has not been done for the Community industry it cannot be said that the Commission is partial in its analysis. Therefore, this argument is not relevant in this case. As far as the first claim is concerned, under Article 2(7)(c) indent 2 of the basic Regulation, the Commission has to examine if the companies have one clear set of basic accounting records which are independently audited in line with international accounting standards and are applied for all purposes. The companies in questions did not fulfil these necessary conditions of the quoted criterion and did not follow the basic principles of accounting. Therefore, this claim had to be rejected. |
| --- | --- |

(27)

Furthermore, some companies argued that by imposing the obligation to apply international accounting standards (IAS) on foreign exporters while they are not imposed on the domestic industry, the Community applies its trade laws not in an ‘impartial’ way. Thus, it is claimed that the Community industry is put in a more favourable position than exporters. However, it is to be noted that the analysis of whether the companies fulfilled the criteria for obtaining market economy treatment was carried out on the basis of Article 2(7)(c) of the basic Regulation. Since this evaluation has not been done for the Community industry it cannot be said that the Commission is partial in its analysis. Therefore, this argument is not relevant in this case. As far as the first claim is concerned, under Article 2(7)(c) indent 2 of the basic Regulation, the Commission has to examine if the companies have one clear set of basic accounting records which are independently audited in line with international accounting standards and are applied for all purposes. The companies in questions did not fulfil these necessary conditions of the quoted criterion and did not follow the basic principles of accounting. Therefore, this claim had to be rejected.

| (28) | Concerning criterion 3, a company claimed that their assets were indeed valued independently. However, no conclusive proof has been provided that assets are recorded at the real market value and it has not been demonstrated that all costs are taken into account at market value. |
| --- | --- |

(28)

Concerning criterion 3, a company claimed that their assets were indeed valued independently. However, no conclusive proof has been provided that assets are recorded at the real market value and it has not been demonstrated that all costs are taken into account at market value.

2.   Individual treatment (IT)

| (29) | Further to Article 2(7)(a) of the basic Regulation, a country-wide duty, if any, is established for countries falling under Article 2(7), except in those cases where companies are able to demonstrate, in accordance with Article 9(5) of the basic Regulation, that (i) in case of wholly or partly foreign owned firms or joint ventures, exporters are free to repatriate capital and profits; (ii) their export prices and quantities as well as the conditions and terms of the sales are freely determined; (iii) the majority of the shares belongs to private persons, State officials appearing on the board of Directors or holding key management positions are in minority or it is demonstrated that the company is nonetheless sufficiently independent from the State interference (iv) exchange rate conversions are carried out at market rates; (v) any State interference is not such as to permit circumvention of measures if individual exporters are given different rates of duty. |
| --- | --- |

(29)

Further to Article 2(7)(a) of the basic Regulation, a country-wide duty, if any, is established for countries falling under Article 2(7), except in those cases where companies are able to demonstrate, in accordance with Article 9(5) of the basic Regulation, that (i) in case of wholly or partly foreign owned firms or joint ventures, exporters are free to repatriate capital and profits; (ii) their export prices and quantities as well as the conditions and terms of the sales are freely determined; (iii) the majority of the shares belongs to private persons, State officials appearing on the board of Directors or holding key management positions are in minority or it is demonstrated that the company is nonetheless sufficiently independent from the State interference (iv) exchange rate conversions are carried out at market rates; (v) any State interference is not such as to permit circumvention of measures if individual exporters are given different rates of duty.

| (30) | The six exporting producers to which MET could not be granted also claimed individual treatment (IT) in the event they were not granted MET. On the basis of the information available, it was found that four of them met all of the requirements for IT as set forth in Article 9(5) of the basic Regulation. |
| --- | --- |

(30)

The six exporting producers to which MET could not be granted also claimed individual treatment (IT) in the event they were not granted MET. On the basis of the information available, it was found that four of them met all of the requirements for IT as set forth in Article 9(5) of the basic Regulation.

| (31) | Of the two remaining companies, one was found to be partially State owned. In addition, the company was established under special Chinese legislation which provides possibilities for state interference. The company could not demonstrate that it took its decisions free of such state interference. For these reasons, the risk of State interference was deemed significant. Moreover, it is usually very difficult, in particular for customs authorities, to identify the producer of any magnesia brick traded. Therefore, the risk of circumvention of measures by way of exporting via a company with a lower level of duty, which is aggravated by the fact that there is significant risk of state interference, was also deemed significant. Consequently, the conditions set in Article 9(5)(c) and (e) of the basic Regulation were not met. It was therefore decided not to grant IT to this company. |
| --- | --- |

(31)

Of the two remaining companies, one was found to be partially State owned. In addition, the company was established under special Chinese legislation which provides possibilities for state interference. The company could not demonstrate that it took its decisions free of such state interference. For these reasons, the risk of State interference was deemed significant. Moreover, it is usually very difficult, in particular for customs authorities, to identify the producer of any magnesia brick traded. Therefore, the risk of circumvention of measures by way of exporting via a company with a lower level of duty, which is aggravated by the fact that there is significant risk of state interference, was also deemed significant. Consequently, the conditions set in Article 9(5)(c) and (e) of the basic Regulation were not met. It was therefore decided not to grant IT to this company.

| (32) | For the remaining company, the level of cooperation and the data provided was not sufficient to allow for a determination as to whether the company fulfilled all the criteria to be granted IT. For instance, the company was not able to provide, within the deadlines, a reliable transaction listing of its sales to the Community, thereby preventing any calculation of a dumping margin to be made. |
| --- | --- |

(32)

For the remaining company, the level of cooperation and the data provided was not sufficient to allow for a determination as to whether the company fulfilled all the criteria to be granted IT. For instance, the company was not able to provide, within the deadlines, a reliable transaction listing of its sales to the Community, thereby preventing any calculation of a dumping margin to be made.

| (33) | One additional exporting producer requested only individual treatment. This company had sales to related companies in the Community as well as sales to independent parties in the Community. As the company failed to provide the requested information within the deadlines given, the determination as to whether the company fulfilled all the criteria to be granted IT could not be made and the company had to be regarded as a non-cooperating party. |
| --- | --- |

(33)

One additional exporting producer requested only individual treatment. This company had sales to related companies in the Community as well as sales to independent parties in the Community. As the company failed to provide the requested information within the deadlines given, the determination as to whether the company fulfilled all the criteria to be granted IT could not be made and the company had to be regarded as a non-cooperating party.

| (34) | It was therefore concluded that IT should be granted to the following four exporting producers in the PRC:






  — | Yingkou Kyushu Refractories Co. Ltd |
| --- | --- | --- |

(34)

It was therefore concluded that IT should be granted to the following four exporting producers in the PRC:

—

Yingkou Kyushu Refractories Co. Ltd

| — | Yingkou Guangyang Refractories Co. Ltd |
| --- | --- |

—

Yingkou Guangyang Refractories Co. Ltd

| — | Dashiqiao Sanqiang Refractory Materials Co. Ltd |
| --- | --- |

—

Dashiqiao Sanqiang Refractory Materials Co. Ltd

| — | Yingkou Qinghua Refractories Co. Ltd. |
| --- | --- |

—

Yingkou Qinghua Refractories Co. Ltd.

3.   Normal value

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

(a)   Analogue country

| (35) | According to Article 2(7) of the basic Regulation, in case of imports from non-market-economy countries and to the extent that MET could not be granted, for countries specified in Article 2(7)(b) of the basic Regulation, normal value has to be established on the basis of the price or constructed value in an analogue country. |
| --- | --- |

(35)

According to Article 2(7) of the basic Regulation, in case of imports from non-market-economy countries and to the extent that MET could not be granted, for countries specified in Article 2(7)(b) of the basic Regulation, normal value has to be established on the basis of the price or constructed value in an analogue country.

| (36) | In the notice of initiation the Commission indicated its intention to use Turkey as an appropriate analogue country for the purpose of establishing normal value for the PRC and invited the interested parties to comment on this. |
| --- | --- |

(36)

In the notice of initiation the Commission indicated its intention to use Turkey as an appropriate analogue country for the purpose of establishing normal value for the PRC and invited the interested parties to comment on this.

| (37) | Some interested parties objected to this proposal. The main arguments against Turkey, claimed by them, were:






  — | insufficient competition on the Turkish domestic market (there are only 3 Turkish producers), |
| --- | --- | --- |

(37)

Some interested parties objected to this proposal. The main arguments against Turkey, claimed by them, were:

—

insufficient competition on the Turkish domestic market (there are only 3 Turkish producers),

| — | Turkey’s volume of production amounts to 1,3 % of Chinese production, |
| --- | --- |

—

Turkey’s volume of production amounts to 1,3 % of Chinese production,

| — | Chinese producers have a different cost structure, especially with regard to labour costs and the cost of raw materials, |
| --- | --- |

—

Chinese producers have a different cost structure, especially with regard to labour costs and the cost of raw materials,

| — | PRC and Turkey have different economic and cultural ties with the EU, such as being closer to Europe, benefiting from a customs union with the EU since 1995, and their harmonising of laws with EU standards in light of negotiations on Turkey’s accession to the EU, |
| --- | --- |

—

PRC and Turkey have different economic and cultural ties with the EU, such as being closer to Europe, benefiting from a customs union with the EU since 1995, and their harmonising of laws with EU standards in light of negotiations on Turkey’s accession to the EU,

| — | the Turkish currency was strongly devalued; some Turkish producers are related/linked to complainants, |
| --- | --- |

—

the Turkish currency was strongly devalued; some Turkish producers are related/linked to complainants,

| — | and the quality of Turkish products is too low. |
| --- | --- |

—

and the quality of Turkish products is too low.

| (38) | The interested parties suggested India or Russia as appropriate analogue countries. |
| --- | --- |

(38)

The interested parties suggested India or Russia as appropriate analogue countries.

| (39) | The Commission sought cooperation from other potential analogue countries such as: Russia, India, Japan, South Korea, United States of America, Turkey, Serbia Montenegro and South Africa. Out of 38 companies which were contacted all over the world, only two companies from the USA agreed to cooperate. |
| --- | --- |

(39)

The Commission sought cooperation from other potential analogue countries such as: Russia, India, Japan, South Korea, United States of America, Turkey, Serbia Montenegro and South Africa. Out of 38 companies which were contacted all over the world, only two companies from the USA agreed to cooperate.

| (40) | The analysis of the information available showed that the USA has a competitive market for the product concerned with at least three producers, around 30 suppliers, more than 15 importers and approximately 300 users. No differences were found to exist between the product concerned and the magnesia bricks produced and sold on the domestic market in the PRC and in the USA as stated in recital 14. In addition, it was found that over 50 % of the raw material used by one of the producers in the USA was imported from PRC and that there are no significant differences in the production process used in the two countries to produce magnesia bricks. |
| --- | --- |

(40)

The analysis of the information available showed that the USA has a competitive market for the product concerned with at least three producers, around 30 suppliers, more than 15 importers and approximately 300 users. No differences were found to exist between the product concerned and the magnesia bricks produced and sold on the domestic market in the PRC and in the USA as stated in recital 14. In addition, it was found that over 50 % of the raw material used by one of the producers in the USA was imported from PRC and that there are no significant differences in the production process used in the two countries to produce magnesia bricks.

| (41) | In view of the above it is provisionally concluded that the United States of America represented the most appropriate and reasonable choice of analogue country in accordance with Article 2(7) of the basic Regulation. |
| --- | --- |

(41)

In view of the above it is provisionally concluded that the United States of America represented the most appropriate and reasonable choice of analogue country in accordance with Article 2(7) of the basic Regulation.

(b)   Determination of normal value

| (42) | Pursuant to Article 2(7)(a) of the basic Regulation, the normal value for the exporting producers not granted MET was established on the basis of verified information received from the producers in the analogue country. Since the transactions by the producers in the USA were found to be made in the ordinary course of trade, the normal value was established on the basis of all prices paid or payable on the domestic market of the USA for product types comparable to those exported to the Community by the Chinese exporters. |
| --- | --- |

(42)

Pursuant to Article 2(7)(a) of the basic Regulation, the normal value for the exporting producers not granted MET was established on the basis of verified information received from the producers in the analogue country. Since the transactions by the producers in the USA were found to be made in the ordinary course of trade, the normal value was established on the basis of all prices paid or payable on the domestic market of the USA for product types comparable to those exported to the Community by the Chinese exporters.

| (43) | Normal value was established as the weighted average domestic sales price charged to unrelated customers by the cooperating producers in the USA for product types having similar MgO content. Where relevant, adjustments were made for the different treatments incurred by the various product types. |
| --- | --- |

(43)

Normal value was established as the weighted average domestic sales price charged to unrelated customers by the cooperating producers in the USA for product types having similar MgO content. Where relevant, adjustments were made for the different treatments incurred by the various product types.

3.2.   Determination of normal value for exporting producers granted MET

| (44) | It is recalled that for the companies granted MET the calculation of any dumping margin was based on the data they submitted on domestic export sales and on the cost of production for the product concerned. This data was verified at the premises of the companies concerned. |
| --- | --- |

(44)

It is recalled that for the companies granted MET the calculation of any dumping margin was based on the data they submitted on domestic export sales and on the cost of production for the product concerned. This data was verified at the premises of the companies concerned.

| (45) | As far as the determination of normal value is concerned, the Commission first established, for each cooperating exporting producer, whether its total domestic sales of the product concerned were representative in comparison with its total export sales to the Community. In accordance with Article 2(2) of the basic Regulation, domestic sales were considered representative when the total volume of such sales of each exporting producer represented at least 5 % of the total export sales volume of the producer to the Community. |
| --- | --- |

(45)

As far as the determination of normal value is concerned, the Commission first established, for each cooperating exporting producer, whether its total domestic sales of the product concerned were representative in comparison with its total export sales to the Community. In accordance with Article 2(2) of the basic Regulation, domestic sales were considered representative when the total volume of such sales of each exporting producer represented at least 5 % of the total export sales volume of the producer to the Community.

| (46) | On this basis, it was found that one exporting producer had overall domestic sales of the product concerned which were made in representative quantities during the IP. For the other exporting producer the overall domestic sales of the product concerned during the IP were not made in representative quantities. |
| --- | --- |

(46)

On this basis, it was found that one exporting producer had overall domestic sales of the product concerned which were made in representative quantities during the IP. For the other exporting producer the overall domestic sales of the product concerned during the IP were not made in representative quantities.

| (47) | For the exporting producer with representative domestic sales, the Commission subsequently identified those types of magnesia bricks, sold domestically that were identical or directly comparable to the types sold for export to the Community. |
| --- | --- |

(47)

For the exporting producer with representative domestic sales, the Commission subsequently identified those types of magnesia bricks, sold domestically that were identical or directly comparable to the types sold for export to the Community.

| (48) | For each type sold on its domestic market and found to be directly comparable to the type of magnesia bricks sold for export to the Community, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type of magnesia bricks were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable magnesia bricks type exported to the Community. |
| --- | --- |

(48)

For each type sold on its domestic market and found to be directly comparable to the type of magnesia bricks sold for export to the Community, it was established whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales of a particular type of magnesia bricks were considered sufficiently representative when the total domestic sales volume of that type during the IP represented 5 % or more of the total sales volume of the comparable magnesia bricks type exported to the Community.

| (49) | As a result of this analysis, it was found that the exporting producer with overall representative sales only had representative domestic sales for a few product types. |
| --- | --- |

(49)

As a result of this analysis, it was found that the exporting producer with overall representative sales only had representative domestic sales for a few product types.

| (50) | The Commission subsequently examined whether the domestic sales of each type of magnesia bricks sold domestically in representative quantities could be regarded as having been made in the ordinary course of trade, by establishing the proportion of profitable sales to independent customers of the magnesia bricks type in question. |
| --- | --- |

(50)

The Commission subsequently examined whether the domestic sales of each type of magnesia bricks sold domestically in representative quantities could be regarded as having been made in the ordinary course of trade, by establishing the proportion of profitable sales to independent customers of the magnesia bricks type in question.

| (51) | Domestic sales transactions were considered profitable where the unit price of a specific product type was equal to or above the cost of production. Cost of production of each type sold on the domestic market during the IP was therefore determined. |
| --- | --- |

(51)

Domestic sales transactions were considered profitable where the unit price of a specific product type was equal to or above the cost of production. Cost of production of each type sold on the domestic market during the IP was therefore determined.

| (52) | As mentioned in recitals 50 and 51, the proportion of profitable sales to independent customers in the domestic market of the product type in question was established. In cases where the sales volume of a specific magnesia bricks type, sold at a net sales price equal to or above the calculated cost of production, represented 80 % or more of the total sales volume of that type, and where the weighted average price of that type was equal to or above the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the prices of all domestic sales of that type made during the IP, irrespective of whether these sales were profitable or not. In cases where the volume of profitable sales of magnesia bricks type represented less than 80 % of the total sales volume of that type, or where the weighted average price of that type was below the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the profitable sales of that type only, provided that these sales represented 10 % or more of the total sales volume of that type. |
| --- | --- |

(52)

As mentioned in recitals 50 and 51, the proportion of profitable sales to independent customers in the domestic market of the product type in question was established. In cases where the sales volume of a specific magnesia bricks type, sold at a net sales price equal to or above the calculated cost of production, represented 80 % or more of the total sales volume of that type, and where the weighted average price of that type was equal to or above the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the prices of all domestic sales of that type made during the IP, irrespective of whether these sales were profitable or not. In cases where the volume of profitable sales of magnesia bricks type represented less than 80 % of the total sales volume of that type, or where the weighted average price of that type was below the cost of production, normal value was based on the actual domestic price, calculated as a weighted average of the profitable sales of that type only, provided that these sales represented 10 % or more of the total sales volume of that type.

| (53) | In cases where the volume of profitable sales of any type of magnesia bricks represented less than 10 % of the total sales volume of that type, it was considered that this particular type was sold in insufficient quantities for the domestic price to provide an appropriate basis for the establishment of the normal value. |
| --- | --- |

(53)

In cases where the volume of profitable sales of any type of magnesia bricks represented less than 10 % of the total sales volume of that type, it was considered that this particular type was sold in insufficient quantities for the domestic price to provide an appropriate basis for the establishment of the normal value.

| (54) | As a result of the above analysis, it was found that certain product types were sold in the ordinary course of trade. |
| --- | --- |

(54)

As a result of the above analysis, it was found that certain product types were sold in the ordinary course of trade.

| (55) | For all the product types which were either not sold in representative quantities or which were not sold in the ordinary course of trade by reason of price as set out in recitals 52 and 53, domestic prices of the exporting producer in question could not be used in order to establish normal value and another method had to be applied. |
| --- | --- |

(55)

For all the product types which were either not sold in representative quantities or which were not sold in the ordinary course of trade by reason of price as set out in recitals 52 and 53, domestic prices of the exporting producer in question could not be used in order to establish normal value and another method had to be applied.

| (56) | Wherever domestic prices of a particular type sold by an exporting producer could not be used, constructed normal value had to be calculated based on the costs of the producer in question. Consequently, in accordance with Article 2(3) of the basic Regulation, normal value was constructed by adding to the manufacturing costs of the exported types, adjusted where necessary, a reasonable amount for selling, general and administrative (SG&A) expenses and a reasonable margin of profit. To this end, the Commission examined whether the SG&A incurred and the profit realised on the domestic market constituted reliable data. |
| --- | --- |

(56)

Wherever domestic prices of a particular type sold by an exporting producer could not be used, constructed normal value had to be calculated based on the costs of the producer in question. Consequently, in accordance with Article 2(3) of the basic Regulation, normal value was constructed by adding to the manufacturing costs of the exported types, adjusted where necessary, a reasonable amount for selling, general and administrative (SG&A) expenses and a reasonable margin of profit. To this end, the Commission examined whether the SG&A incurred and the profit realised on the domestic market constituted reliable data.

| (57) | Actual domestic SG&A expenses were considered reliable when the total domestic sales volume of the company concerned could be regarded as representative when compared to the volume of export sales to the Community. The domestic profit margin was determined on the basis of domestic sales of those types which were sold in the ordinary course of trade. For this purpose, the methodology set out in recitals 45, 48, 52 and 53 was applied. For one company, their own SGA and profit could be used because it met the aforementioned criteria. |
| --- | --- |

(57)

Actual domestic SG&A expenses were considered reliable when the total domestic sales volume of the company concerned could be regarded as representative when compared to the volume of export sales to the Community. The domestic profit margin was determined on the basis of domestic sales of those types which were sold in the ordinary course of trade. For this purpose, the methodology set out in recitals 45, 48, 52 and 53 was applied. For one company, their own SGA and profit could be used because it met the aforementioned criteria.

| (58) | For the other company which did not have sufficient domestic sales, the normal value was established on the basis of Article 2(6)(c) of the basic Regulation. It was found that the cost structure of the other company granted MET which had representative domestic sales for some types was so different that it did not constitute a reasonable basis to establish normal value in this case. The costs of the company which did not have representative domestic sales was, however, found reliable and normal value was constructed based on the data of the company as they were in line with those of other exporters or producers of the same product in the country of origin. |
| --- | --- |

(58)

For the other company which did not have sufficient domestic sales, the normal value was established on the basis of Article 2(6)(c) of the basic Regulation. It was found that the cost structure of the other company granted MET which had representative domestic sales for some types was so different that it did not constitute a reasonable basis to establish normal value in this case. The costs of the company which did not have representative domestic sales was, however, found reliable and normal value was constructed based on the data of the company as they were in line with those of other exporters or producers of the same product in the country of origin.

4.   Export prices

| (59) | All export sales to the Community of exporters granted MET or IT were made either via related importers in the Community, via related companies outside the Community or via companies which, whilst not related to the exporting producers nevertheless had a close cooperation with or even an exclusive trading contract. In the cases where the exports were made via related companies the export prices were constructed pursuant to Article 2(9) of the basic Regulation. In all cases, where the product concerned was exported to independent customers in the Community, the export price was established in accordance with Article 2(8) of the basic Regulation, namely on the basis of export prices actually paid or payable. |
| --- | --- |

(59)

All export sales to the Community of exporters granted MET or IT were made either via related importers in the Community, via related companies outside the Community or via companies which, whilst not related to the exporting producers nevertheless had a close cooperation with or even an exclusive trading contract. In the cases where the exports were made via related companies the export prices were constructed pursuant to Article 2(9) of the basic Regulation. In all cases, where the product concerned was exported to independent customers in the Community, the export price was established in accordance with Article 2(8) of the basic Regulation, namely on the basis of export prices actually paid or payable.

| (60) | Adjustments were made for all costs incurred between importation and resale by that importer, including SG&A expenses, and a reasonable profit margin, in accordance with Article 2(9) of the basic Regulation. In this case, the actual profit margin realised by the cooperating unrelated importers was deemed to be a reasonable basis. |
| --- | --- |

(60)

Adjustments were made for all costs incurred between importation and resale by that importer, including SG&A expenses, and a reasonable profit margin, in accordance with Article 2(9) of the basic Regulation. In this case, the actual profit margin realised by the cooperating unrelated importers was deemed to be a reasonable basis.

5.   Comparison

| (61) | The normal value and export prices were compared on an ex-factory basis and at the same level of trade. In order to ensure a fair comparison between normal value and export price, account was taken, in accordance with Article 2(10) of the basic Regulation, of differences in factors which were claimed and demonstrated to affect prices and price comparability. |
| --- | --- |

(61)

The normal value and export prices were compared on an ex-factory basis and at the same level of trade. In order to ensure a fair comparison between normal value and export price, account was taken, in accordance with Article 2(10) of the basic Regulation, of differences in factors which were claimed and demonstrated to affect prices and price comparability.

| (62) | On this basis, allowances for differences in transport, insurance, handling, loading and ancillary costs, credit, commissions, import charges and after sales costs (warranty/guarantee) were made. |
| --- | --- |

(62)

On this basis, allowances for differences in transport, insurance, handling, loading and ancillary costs, credit, commissions, import charges and after sales costs (warranty/guarantee) were made.

6.   Dumping margin

6.1.   For the cooperating exporting producers granted MET/IT

| (63) | For the two companies granted MET, the weighted average normal value of each type of the product concerned exported to the Community was compared with the weighted average export price of the corresponding type of the product concerned, as provided for under Article 2(11) of the basic Regulation. |
| --- | --- |

(63)

For the two companies granted MET, the weighted average normal value of each type of the product concerned exported to the Community was compared with the weighted average export price of the corresponding type of the product concerned, as provided for under Article 2(11) of the basic Regulation.

| (64) | For the four companies granted individual treatment, the weighted average normal value for each type exported to the Community established for the analogue country was compared with the weighted average export price of the corresponding type exported to the Community, as provided for under Article 2(11) of the basic Regulation. |
| --- | --- |

(64)

For the four companies granted individual treatment, the weighted average normal value for each type exported to the Community established for the analogue country was compared with the weighted average export price of the corresponding type exported to the Community, as provided for under Article 2(11) of the basic Regulation.

| (65) | The provisional weighted average dumping margins expressed as a percentage of the cif Community frontier price duty unpaid are:












  — | Liaoning Mayerton Refractories Co. Ltd |
| --- | --- | --- |

(65)

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

—

Liaoning Mayerton Refractories Co. Ltd

11,2  %

| — | Yingkou Sanhua Refractory Materials Co. Ltd |
| --- | --- |

—

Yingkou Sanhua Refractory Materials Co. Ltd

34,1  %

| — | Yingkou Guangyang Refractories Co. Ltd |
| --- | --- |

—

Yingkou Guangyang Refractories Co. Ltd

55,7  %

| — | Yingkou Kyushu Refractories Co. Ltd |
| --- | --- |

—

Yingkou Kyushu Refractories Co. Ltd

55,7  %

| — | Dashiqiao Sanqiang Refractory Materials Co. Ltd |
| --- | --- |

—

Dashiqiao Sanqiang Refractory Materials Co. Ltd

99,9  %

| — | Yingkou Qinghua Refractories Co. Ltd |
| --- | --- |

—

Yingkou Qinghua Refractories Co. Ltd

41,4  %.

6.2.   For all other exporting producers

| (66) | In order to calculate the dumping margin applicable to all other exporters in the PRC, the Commission first established the level of cooperation. A comparison was made between the total imports of the product concerned originating in the PRC calculated on the basis of Eurostat, according to the methodology established in recital 80, and the actual questionnaire replies received from exporters in the PRC. On this basis, it was established that the level of cooperation was low. |
| --- | --- |

(66)

In order to calculate the dumping margin applicable to all other exporters in the PRC, the Commission first established the level of cooperation. A comparison was made between the total imports of the product concerned originating in the PRC calculated on the basis of Eurostat, according to the methodology established in recital 80, and the actual questionnaire replies received from exporters in the PRC. On this basis, it was established that the level of cooperation was low.

| (67) | As the cooperation was low, the dumping margin applicable to all other exporters in the PRC was established at the level of the highest dumping margin calculated for the cooperating exporting producers, i.e. 99,9 % of the cif Community frontier price duty unpaid. Nonetheless, the countrywide dumping margin was found to be above the residual injury margin. |
| --- | --- |

(67)

As the cooperation was low, the dumping margin applicable to all other exporters in the PRC was established at the level of the highest dumping margin calculated for the cooperating exporting producers, i.e. 99,9 % of the cif Community frontier price duty unpaid. Nonetheless, the countrywide dumping margin was found to be above the residual injury margin.

C.   INJURY

1.   Community production

| (68) | In the course of the present investigation it was found that magnesia bricks were manufactured by:






  — | two complainant Community producers and two other producers, which fully cooperated with the Commission during the investigation (RHI, LWB, Refractarios Burceña S.L. and Ceramica Del Nalon SA), |
| --- | --- | --- |

(68)

In the course of the present investigation it was found that magnesia bricks were manufactured by:

—

two complainant Community producers and two other producers, which fully cooperated with the Commission during the investigation (RHI, LWB, Refractarios Burceña S.L. and Ceramica Del Nalon SA),

| — | one producer, which provided a detailed questionnaire reply, but opposed the proceeding (Refratechnik), |
| --- | --- |

—

one producer, which provided a detailed questionnaire reply, but opposed the proceeding (Refratechnik),

| — | seven other producers plus Assopiatrelle (the Italian Refractories Association representing 64 000 tonnes of production), which supported the Community industry but did not provide a detailed questionnaire reply. One further producer submitted a letter but did not express support or opposition. |
| --- | --- |

—

seven other producers plus Assopiatrelle (the Italian Refractories Association representing 64 000 tonnes of production), which supported the Community industry but did not provide a detailed questionnaire reply. One further producer submitted a letter but did not express support or opposition.

2.   Definition of the Community industry

2.1.   Producers related to the PRC and/or importing the product concerned from the PRC

| (69) | It was found that two of the cooperating producers within the Community also imported the product concerned from the PRC: RHI and Refratechnik. It was, therefore, examined whether these companies should be excluded from the definition of the Community industry according to Article 4(1)(a) of the basic Regulation. |
| --- | --- |

(69)

It was found that two of the cooperating producers within the Community also imported the product concerned from the PRC: RHI and Refratechnik. It was, therefore, examined whether these companies should be excluded from the definition of the Community industry according to Article 4(1)(a) of the basic Regulation.

2.1.1.   RHI

| (70) | RHI produces in the Community but also imports the product concerned from a related joint-venture company in the PRC: RHI Liaoning. It has been found that the vast majority of RHI’s sales on the Community market were produced in the Community in the IP, whereas only a minor part was produced in the PRC. This share is low because RHI’s production in the PRC is mainly aimed at the fast growing Asian market. RHI is also the biggest producer in the Community and its headquarters, R&D centre and biggest production sites are all located in the Community. It was therefore found that RHI’s core business is situated in the Community as regards the product concerned. |
| --- | --- |

(70)

RHI produces in the Community but also imports the product concerned from a related joint-venture company in the PRC: RHI Liaoning. It has been found that the vast majority of RHI’s sales on the Community market were produced in the Community in the IP, whereas only a minor part was produced in the PRC. This share is low because RHI’s production in the PRC is mainly aimed at the fast growing Asian market. RHI is also the biggest producer in the Community and its headquarters, R&D centre and biggest production sites are all located in the Community. It was therefore found that RHI’s core business is situated in the Community as regards the product concerned.

| (71) | It was further examined what impact the imported sales had on the company’s total Community sales. It was found that RHI was not enjoying substantial, in terms of profitability, beneficial effects by reselling imports. This conclusion was reached after comparing the profitability rates of the cooperating Community producers. |
| --- | --- |

(71)

It was further examined what impact the imported sales had on the company’s total Community sales. It was found that RHI was not enjoying substantial, in terms of profitability, beneficial effects by reselling imports. This conclusion was reached after comparing the profitability rates of the cooperating Community producers.

| (72) | Considering the low import share and the absence of any substantial benefits from these imports on the profitability of all Community sales, it has been established that this company has not been shielded from the negative consequences of the injurious dumping. Therefore, it is considered that an exclusion of RHI from the definition of the Community industry would not be justified. |
| --- | --- |

(72)

Considering the low import share and the absence of any substantial benefits from these imports on the profitability of all Community sales, it has been established that this company has not been shielded from the negative consequences of the injurious dumping. Therefore, it is considered that an exclusion of RHI from the definition of the Community industry would not be justified.

2.1.2.   Refratechnik

| (73) | Refratechnik also produces in the Community and imports the product concerned from producers in the PRC. It has been found that almost half of Refratechnik’s sales on the Community market were produced in the PRC in the IP. It was also found that most of the expansion of their business is made through increased imports from the PRC. It was, therefore, considered that Refratechnik’s core business is not only situated in the Community but also in the PRC. |
| --- | --- |

(73)

Refratechnik also produces in the Community and imports the product concerned from producers in the PRC. It has been found that almost half of Refratechnik’s sales on the Community market were produced in the PRC in the IP. It was also found that most of the expansion of their business is made through increased imports from the PRC. It was, therefore, considered that Refratechnik’s core business is not only situated in the Community but also in the PRC.

| (74) | It was further examined what impact the imported sales had on the company’s total Community sales. It was found that Refratechnik, in contrast to RHI, was significantly benefiting by reselling imports. |
| --- | --- |

(74)

It was further examined what impact the imported sales had on the company’s total Community sales. It was found that Refratechnik, in contrast to RHI, was significantly benefiting by reselling imports.

| (75) | Bearing in mind the high share of imports compared to total Community sales volumes, the fact that the core of the business seems to be gradually shifting to the PRC and the fact that Refratechnik was clearly benefiting from the dumped imports, it is considered that Refratechnik should be excluded from the Community industry according to Article 4(1)(a) of the basic Regulation and will be considered as ‘another operator on the market’. |
| --- | --- |

(75)

Bearing in mind the high share of imports compared to total Community sales volumes, the fact that the core of the business seems to be gradually shifting to the PRC and the fact that Refratechnik was clearly benefiting from the dumped imports, it is considered that Refratechnik should be excluded from the Community industry according to Article 4(1)(a) of the basic Regulation and will be considered as ‘another operator on the market’.

2.2.   Community industry

| (76) | The production of the four Community producers that fully cooperated in the investigation including RHI and excluding Refratechnik was at 233 732 tonnes during the investigation period. This represents 53 % of total Community production and these companies therefore constitute the Community industry within the meaning of Articles 4(1) and 5(4) of the basic Regulation. |
| --- | --- |

(76)

The production of the four Community producers that fully cooperated in the investigation including RHI and excluding Refratechnik was at 233 732 tonnes during the investigation period. This represents 53 % of total Community production and these companies therefore constitute the Community industry within the meaning of Articles 4(1) and 5(4) of the basic Regulation.

| (77) | The investigation established that there was no captive use of the product concerned within the magnesia bricks producing industry. However, some steel companies produced magnesia bricks for their own use. This volume was small in comparison to volumes produced by the Community refractory producers. Since this production is for the use within the steel industry and none of the steel industry companies cooperated as producers of magnesia bricks (although many of them received questionnaires), this part of production seems to have no significant impact on the Community industry. |
| --- | --- |

(77)

The investigation established that there was no captive use of the product concerned within the magnesia bricks producing industry. However, some steel companies produced magnesia bricks for their own use. This volume was small in comparison to volumes produced by the Community refractory producers. Since this production is for the use within the steel industry and none of the steel industry companies cooperated as producers of magnesia bricks (although many of them received questionnaires), this part of production seems to have no significant impact on the Community industry.

| (78) | As the Community industry was made up of four companies, two of which comprised around 2 % of volume produced, the Community industry data shown below has been indexed for confidentiality reasons. |
| --- | --- |

(78)

As the Community industry was made up of four companies, two of which comprised around 2 % of volume produced, the Community industry data shown below has been indexed for confidentiality reasons.

3.   Community consumption

| (79) | Consumption was established from standard industry estimates provided by the Community industry according to normal industry practice. This data was calculated based on steel production reports (source — International Iron & Steel Institute (IISI), divided by known average use of the product concerned per tonne of steel produced. |
| --- | --- |

(79)

Consumption was established from standard industry estimates provided by the Community industry according to normal industry practice. This data was calculated based on steel production reports (source — International Iron & Steel Institute (IISI), divided by known average use of the product concerned per tonne of steel produced.

source

| (80) | Eurostat information related to import volumes for the relevant CN Codes (6815 91 00, 6815 99 10, 6815 10 10, 6815 99 90, 6902 10 00 and 6903 90 20) were used as the source of the import data. Deductions were made from these figures in order to exclude products which, based on their price, were clearly not the product concerned. This volume net of deductions (which for all countries equalled 73 291 tonnes and for the PRC equalled 59 831tonnes) was compared to import volumes reported by the Chinese cooperating exporting producers (around 42 000 tonnes). Bearing in mind that (i) around 13 500 tonnes was imported from countries other than the PRC; (ii) data from Community importers and users showed that imports were made from non-cooperating exporters in PRC; and (iii) many other exporting producers in the PRC received a questionnaire but did not cooperate, the Eurostat figure was considered to be an accurate assessment of import volumes. In addition, a Chinese trade press source (China Metallurgical News, 4 January 2004) reported that 80 000 tonnes were exported to Europe in 2003 which also suggests that the above Eurostat figure for the IP (59 831) is by no means excessive. |
| --- | --- |

(80)

Eurostat information related to import volumes for the relevant CN Codes (6815 91 00, 6815 99 10, 6815 10 10, 6815 99 90, 6902 10 00 and 6903 90 20) were used as the source of the import data. Deductions were made from these figures in order to exclude products which, based on their price, were clearly not the product concerned. This volume net of deductions (which for all countries equalled 73 291 tonnes and for the PRC equalled 59 831tonnes) was compared to import volumes reported by the Chinese cooperating exporting producers (around 42 000 tonnes). Bearing in mind that (i) around 13 500 tonnes was imported from countries other than the PRC; (ii) data from Community importers and users showed that imports were made from non-cooperating exporters in PRC; and (iii) many other exporting producers in the PRC received a questionnaire but did not cooperate, the Eurostat figure was considered to be an accurate assessment of import volumes. In addition, a Chinese trade press source (China Metallurgical News, 4 January 2004) reported that 80 000 tonnes were exported to Europe in 2003 which also suggests that the above Eurostat figure for the IP (59 831) is by no means excessive.

| (81) | Community industry sales on the Community market were obtained from the verified questionnaire responses of the five cooperating Community producers (including Refratechnik). The balance (i.e. consumption minus imports, minus Community industry sales volumes) was deemed to be sales volumes of non-cooperating Community producers. |
| --- | --- |

(81)

Community industry sales on the Community market were obtained from the verified questionnaire responses of the five cooperating Community producers (including Refratechnik). The balance (i.e. consumption minus imports, minus Community industry sales volumes) was deemed to be sales volumes of non-cooperating Community producers.

| (82) | This consumption, as presented in the following table, shows that demand of the product concerned in the Community was stable over the period considered. | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Community consumption | 399 563 | 397 203 | 401 499 | 400 638 |
| Index 2001 = 100 | 100 | 99 | 100 | 100 |

(82)

This consumption, as presented in the following table, shows that demand of the product concerned in the Community was stable over the period considered.

2001

2002

2003

IP

Community consumption

399 563

397 203

401 499

400 638

Index 2001 = 100

Index 2001 = 100

100

100

99

99

100

100

100

100

4.   Imports into the Community from the country concerned

4.1.   Market share of imports concerned

| (83) | The evolution of imports from the country concerned, in volume and market share, has been the following:









  Import volumes | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| PRC | 23 980 | 44 542 | 54 181 | 59 831 |
| Index 2001 = 100 | 100 | 186 | 226 | 250 |

(83)

The evolution of imports from the country concerned, in volume and market share, has been the following:

Import volumes

2001

2002

2003

IP

PRC

23 980

44 542

54 181

59 831

Index 2001 = 100

Index 2001 = 100

100

100

186

186

226

226

250

250

| Market shares of the imports | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- |
| PRC | 6,0  % | 11,2  % | 13,5  % | 14,9  % |

Market shares of the imports

2001

2002

2003

IP

PRC

6,0  %

11,2  %

13,5  %

14,9  %

| (84) | Whereas the consumption of magnesia bricks remained stable during the period under consideration, the imports from the country concerned have risen by around 150 % in the same period. In consequence, the market share of the PRC has more than doubled during the period considered from 6,0 % to 14,9 %. |
| --- | --- |

(84)

Whereas the consumption of magnesia bricks remained stable during the period under consideration, the imports from the country concerned have risen by around 150 % in the same period. In consequence, the market share of the PRC has more than doubled during the period considered from 6,0 % to 14,9 %.

| | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- |
| Import prices from the PRC (Source: Eurostat) | 686 | 601 | 560 | 533 |
| Index 2001 = 100 | 100 | 88 | 82 | 78 |

2001

2002

2003

IP

Import prices from the PRC (Source: Eurostat)

686

601

560

533

Index 2001 = 100

Index 2001 = 100

100

100

88

88

82

82

78

78

| (85) | The above table shows the development of average import prices from the PRC. Over the period considered prices fell by 22 %. |
| --- | --- |

(85)

The above table shows the development of average import prices from the PRC. Over the period considered prices fell by 22 %.

| (86) | A comparison of selling prices on the Community market during the IP was made between the prices of the Community industry and those of the exporting producers in the country concerned. This comparison was made after deduction of rebates and discounts. The prices of the Community industry were adjusted to ex-works prices, and the prices of the imports were cif Community frontier. |
| --- | --- |

(86)

A comparison of selling prices on the Community market during the IP was made between the prices of the Community industry and those of the exporting producers in the country concerned. This comparison was made after deduction of rebates and discounts. The prices of the Community industry were adjusted to ex-works prices, and the prices of the imports were cif Community frontier.

| (87) | The comparison showed that during the IP imports of the product concerned were sold in the Community at prices which undercut the Community industry’s prices, when expressed as a percentage of the latter by 16,6 %. From this level of undercutting and the price development of the Community industry, as explained below, it is clear that substantial price depression had already taken place. |
| --- | --- |

(87)

The comparison showed that during the IP imports of the product concerned were sold in the Community at prices which undercut the Community industry’s prices, when expressed as a percentage of the latter by 16,6 %. From this level of undercutting and the price development of the Community industry, as explained below, it is clear that substantial price depression had already taken place.

5.   Situation of the Community industry

| (88) | In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the Community industry included an evaluation of all economic factors and indices having a bearing on the state of the industry from 2001 (base year) to the IP. |
| --- | --- |

(88)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the Community industry included an evaluation of all economic factors and indices having a bearing on the state of the industry from 2001 (base year) to the IP.

| (89) | The Community industry data below represent the aggregated information of the four cooperating Community producers. |
| --- | --- |

(89)

The Community industry data below represent the aggregated information of the four cooperating Community producers.

5.1.   Production, production capacity and capacity utilisation

| (90) | The evolution of production, production capacity and capacity utilisation is the following:










  Indices 2001 = 100 | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Production (tonnes) | 100 | 88 | 89 | 91 |
| Production capacity (tonnes) | 100 | 90 | 84 | 84 |
| Production utilisation (%) | 100 | 98 | 106 | 108 |

(90)

The evolution of production, production capacity and capacity utilisation is the following:

Indices 2001 = 100

Indices 2001 = 100

2001

2002

2003

IP

Production (tonnes)

100

100

88

88

89

89

91

91

Production capacity (tonnes)

100

100

90

90

84

84

84

84

Production utilisation (%)

100

100

98

98

106

106

108

108

| (91) | As shown in the table above, production during the period considered decreased by 9 %. Production capacity was reduced by 16 % in order to cut costs which led to an 8 % increase in capacity utilisation. |
| --- | --- |

(91)

As shown in the table above, production during the period considered decreased by 9 %. Production capacity was reduced by 16 % in order to cut costs which led to an 8 % increase in capacity utilisation.

5.2.   Stocks

| (92) | The figures below represent the volume of stocks at the end of each period: | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Stocks (tonnes) | | | | |
| Index 2001 = 100 | 100 | 109 | 105 | 108 |

(92)

The figures below represent the volume of stocks at the end of each period:

2001

2002

2003

IP

Stocks (tonnes)

Index 2001 = 100

Index 2001 = 100

100

100

109

109

105

105

108

108

| (93) | Stocks have increased during the period considered by 8 %. It is to be noted that the Community industry generally produces the product concerned to order. Consequently, the level of stocks held by the Community industry was found not to be a significant indicator in the assessment of the situation of the Community industry. |
| --- | --- |

(93)

Stocks have increased during the period considered by 8 %. It is to be noted that the Community industry generally produces the product concerned to order. Consequently, the level of stocks held by the Community industry was found not to be a significant indicator in the assessment of the situation of the Community industry.

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

| (94) | The figures below represent the Community industry’s sales to independent customers in the Community.










  Indices 2001 = 100 | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Sales volume (tonnes) | 100 | 97 | 99 | 100 |
| Market Share | 100 | 97 | 98 | 100 |
| Average sales prices (EUR/tonne) | 100 | 98 | 89 | 89 |

(94)

The figures below represent the Community industry’s sales to independent customers in the Community.

Indices 2001 = 100

Indices 2001 = 100

2001

2002

2003

IP

Sales volume (tonnes)

100

100

97

97

99

99

100

100

Market Share

100

100

97

97

98

98

100

100

Average sales prices (EUR/tonne)

100

100

98

98

89

89

89

89

| (95) | The Community industry’s sales volumes and market share were stable during the period considered. However, this was only achieved at the expense of a reduction in average sales prices of 11 % as dumped imports penetrated the Community market. |
| --- | --- |

(95)

The Community industry’s sales volumes and market share were stable during the period considered. However, this was only achieved at the expense of a reduction in average sales prices of 11 % as dumped imports penetrated the Community market.

| (96) | It must also be noted that the decrease in average prices of 11 % is understated vis-à-vis the fall in prices of major product segments. The product concerned is used in the steel industry for lining three main types of vessels; ladles, converters and electric arc furnaces. Initially, Chinese imports were mainly in the low value segment of ladle bricks. However, over the period concerned there has been a trend towards penetration of the converters and electric arc furnace segments. The utilisation of converters and electric arc furnaces needs to be maximised and more high quality and high cost bricks are required to increase the number of heats before a lining is changed. An analysis of sales patterns over the period considered showed that the Community industry moved more into the lower volume but higher value segments in order to defend itself from the pressure from Chinese imports. With this in mind, it is clear that average prices for some individual product types have fallen by more than 11 %. For example the average price of the largest brick group (containing 9 % residual carbon and fused magnesia) fell by 19 % over the period considered. |
| --- | --- |

(96)

It must also be noted that the decrease in average prices of 11 % is understated vis-à-vis the fall in prices of major product segments. The product concerned is used in the steel industry for lining three main types of vessels; ladles, converters and electric arc furnaces. Initially, Chinese imports were mainly in the low value segment of ladle bricks. However, over the period concerned there has been a trend towards penetration of the converters and electric arc furnace segments. The utilisation of converters and electric arc furnaces needs to be maximised and more high quality and high cost bricks are required to increase the number of heats before a lining is changed. An analysis of sales patterns over the period considered showed that the Community industry moved more into the lower volume but higher value segments in order to defend itself from the pressure from Chinese imports. With this in mind, it is clear that average prices for some individual product types have fallen by more than 11 %. For example the average price of the largest brick group (containing 9 % residual carbon and fused magnesia) fell by 19 % over the period considered.

| (97) | Facing increasing imports, the Community industry could not grow despite reducing its average prices. In contrast, they were forced to reduce production capacity and work force. |
| --- | --- |

(97)

Facing increasing imports, the Community industry could not grow despite reducing its average prices. In contrast, they were forced to reduce production capacity and work force.

5.4.   Profitability

| (98) | The profitability shown below is return on turnover (RoT), in terms of sales on the Community market. | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Profitability on Community Sales (RoT) | 100 | 76 | 26 | 45 |

(98)

The profitability shown below is return on turnover (RoT), in terms of sales on the Community market.

2001

2002

2003

IP

Profitability on Community Sales (RoT)

100

76

26

45

| (99) | The profitability decreased substantially from 2001 to 2003 due to the reduced prices and coincided with increases of dumped imports from the PRC. Profitability slightly improved in the IP, which was achieved mainly because of reduced costs. Furthermore, the profit level during the IP, although above breakeven, was well below a level which this type of industry could be expected to achieve in the absence of dumped imports. As can be seen in the year 2001, when dumped imports still held a relatively low market share, the profit level which could be expected would be much higher. |
| --- | --- |

(99)

The profitability decreased substantially from 2001 to 2003 due to the reduced prices and coincided with increases of dumped imports from the PRC. Profitability slightly improved in the IP, which was achieved mainly because of reduced costs. Furthermore, the profit level during the IP, although above breakeven, was well below a level which this type of industry could be expected to achieve in the absence of dumped imports. As can be seen in the year 2001, when dumped imports still held a relatively low market share, the profit level which could be expected would be much higher.

5.5.   Return on investments, cash flow, investments and ability to raise capital

| (100) | The trends for the return on investments, cash flow and investments are shown in the following table.










  Indices 2001 = 100 | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| Return on investments | 100 | 85 | 50 | 52 |
| Cash flow | 100 | 81 | 55 | 60 |
| Investments | 100 | 75 | 131 | 134 |

(100)

The trends for the return on investments, cash flow and investments are shown in the following table.

Indices 2001 = 100

Indices 2001 = 100

2001

2002

2003

IP

Return on investments

100

100

85

85

50

50

52

52

Cash flow

100

100

81

81

55

55

60

60

Investments

100

100

75

75

131

131

134

134

| (101) | It is noted that the above trend figures for return on investments reflect to a large extent those on profitability (return on turnover) above. The cash flow also shows approximately the same trend, namely decreasing from 2001 to 2003 and a slight improvement in the IP. The falling return on investments and cash flow resulted from the fact that average sales prices were falling more quickly than the average costs for products sold. |
| --- | --- |

(101)

It is noted that the above trend figures for return on investments reflect to a large extent those on profitability (return on turnover) above. The cash flow also shows approximately the same trend, namely decreasing from 2001 to 2003 and a slight improvement in the IP. The falling return on investments and cash flow resulted from the fact that average sales prices were falling more quickly than the average costs for products sold.

| (102) | The Community industry has increased its investments. These were replacement investments in plant and machinery rather than investments in new production facilities. |
| --- | --- |

(102)

The Community industry has increased its investments. These were replacement investments in plant and machinery rather than investments in new production facilities.

| (103) | The Community industry’s ability to raise capital, either from external providers of finance or parent companies, was nevertheless not seriously affected during the period considered because the companies belong to larger groups. Thus, the ability to raise capital is primarily judged on the basis of the strength of the group and not necessarily on the basis of the merits of the business sector concerned. Therefore, this factor does not seem to be relevant for this investigation. |
| --- | --- |

(103)

The Community industry’s ability to raise capital, either from external providers of finance or parent companies, was nevertheless not seriously affected during the period considered because the companies belong to larger groups. Thus, the ability to raise capital is primarily judged on the basis of the strength of the group and not necessarily on the basis of the merits of the business sector concerned. Therefore, this factor does not seem to be relevant for this investigation.

Indices 2001 = 100

| Indices 2001 = 100 | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- |
| Number of employees | 100 | 91 | 92 | 93 |
| Productivity (tonne/employee) | 100 | 96 | 98 | 98 |
| Wages | 100 | 84 | 82 | 82 |

2001

2002

2003

IP

Number of employees

100

100

91

91

92

92

93

93

Productivity (tonne/employee)

100

100

96

96

98

98

98

98

Wages

100

100

84

84

82

82

82

82

| (104) | As seen above, the Community industry decreased its number of employees from 2001 to the IP. The increase in 2003 to the IP can be explained by increased production. Productivity was largely stable over the period. |
| --- | --- |

(104)

As seen above, the Community industry decreased its number of employees from 2001 to the IP. The increase in 2003 to the IP can be explained by increased production. Productivity was largely stable over the period.

| (105) | Wages decreased substantially in 2002 but have remained stable up to the IP. This was due to a programme of restructuring in that year as can be seen from production and employment trends shown above. |
| --- | --- |

(105)

Wages decreased substantially in 2002 but have remained stable up to the IP. This was due to a programme of restructuring in that year as can be seen from production and employment trends shown above.

5.7.   Magnitude of the actual margin of dumping

| (106) | The dumping margins are specified above in the dumping section. These margins established are clearly above de minimis. Furthermore, given the volume and the price of the dumped imports, the impact of the actual margin of dumping cannot be considered to be negligible. |
| --- | --- |

(106)

The dumping margins are specified above in the dumping section. These margins established are clearly above de minimis. Furthermore, given the volume and the price of the dumped imports, the impact of the actual margin of dumping cannot be considered to be negligible.

de minimis

5.8.   Effects of past dumping or subsidisation

| (107) | The Community industry is not recovering from the effects of past dumping or subsidization since no such previous investigations have been made. |
| --- | --- |

(107)

The Community industry is not recovering from the effects of past dumping or subsidization since no such previous investigations have been made.

5.9.   Conclusion on injury

| (108) | It is recalled that while sales volumes and market share in the Community were relatively stable, the Community industry suffered average prices decreases of 11 % in the period considered, despite developing its product mix to higher value product types. Notwithstanding cost cuts, profit levels decreased significantly resulting in a profit in the IP which is 55 % below the level in 2001 and is substantially below the profit level which could be expected without dumped imports. |
| --- | --- |

(108)

It is recalled that while sales volumes and market share in the Community were relatively stable, the Community industry suffered average prices decreases of 11 % in the period considered, despite developing its product mix to higher value product types. Notwithstanding cost cuts, profit levels decreased significantly resulting in a profit in the IP which is 55 % below the level in 2001 and is substantially below the profit level which could be expected without dumped imports.

| (109) | The declining situation of the Community industry in the period considered is also confirmed by the reduced production and production capacity, the decrease of wages and employment, return on investment, cash flow and a lack of growth despite reducing average prices by 11 %. |
| --- | --- |

(109)

The declining situation of the Community industry in the period considered is also confirmed by the reduced production and production capacity, the decrease of wages and employment, return on investment, cash flow and a lack of growth despite reducing average prices by 11 %.

| (110) | The above negative developments occurred at a time of rather stable productivity, increased investments and improved capacity utilisation. Developments in respect of stocks and ability to raise capital were not considered meaningful for the reasons explained above. |
| --- | --- |

(110)

The above negative developments occurred at a time of rather stable productivity, increased investments and improved capacity utilisation. Developments in respect of stocks and ability to raise capital were not considered meaningful for the reasons explained above.

| (111) | Bearing in mind all these indicators, it is provisionally concluded that the Community industry has suffered material injury during the IP within the meaning of Article 3 of the basic Regulation. |
| --- | --- |

(111)

Bearing in mind all these indicators, it is provisionally concluded that the Community industry has suffered material injury during the IP within the meaning of Article 3 of the basic Regulation.

D.   CAUSATION

1.   Preliminary remark

| (112) | It was also examined whether there is a causal link between the dumped imports from the PRC and the injury suffered by the Community industry. Known factors other than the dumped imports, which could at the same time have injured the Community industry, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports. |
| --- | --- |

(112)

It was also examined whether there is a causal link between the dumped imports from the PRC and the injury suffered by the Community industry. Known factors other than the dumped imports, which could at the same time have injured the Community industry, were also examined to ensure that the possible injury caused by these other factors was not attributed to the dumped imports.

2.   Impact of the imports from the PRC

| (113) | It is recalled that import volumes from the PRC increased by around 150 % and their market share increased by 118 % during the period considered. In addition, as has been explained at recital 85, import prices from the PRC fell by 22 % and substantial price undercutting was taking place (see recital 87). The Community industry reacted to these imports by maintaining its sales volume (in order not to endanger economies of scale) but had to significantly lower its prices. This fall in prices led inter alia to a 55 % fall in profitability. This profitability is well below that expected of this type of industry and is no longer sustainable. |
| --- | --- |

(113)

It is recalled that import volumes from the PRC increased by around 150 % and their market share increased by 118 % during the period considered. In addition, as has been explained at recital 85, import prices from the PRC fell by 22 % and substantial price undercutting was taking place (see recital 87). The Community industry reacted to these imports by maintaining its sales volume (in order not to endanger economies of scale) but had to significantly lower its prices. This fall in prices led inter alia to a 55 % fall in profitability. This profitability is well below that expected of this type of industry and is no longer sustainable.

inter alia

Indices 2001 = 100

| Indices 2001 = 100 | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- |
| Non-Chinese imports | 100 | 90 | 140 | 141 |
| NB: The above figures are indexed in order that calculations cannot be made of confidential data relating to the Community industry. |

2001

2002

2003

IP

Non-Chinese imports

100

90

140

141

NB: The above figures are indexed in order that calculations cannot be made of confidential data relating to the Community industry.

NB:

| (114) | It is very unlikely that imports originating in other third countries, such as the Republic of Korea and Brazil could have contributed to the injury suffered by the Community industry. The market share of non-Chinese imports in the IP was only at around 3 %. In addition, the average prices of imports from the Republic of Korea and Brazil (i.e. countries from which the largest volumes of non-Chinese imports originated) were 25 % and 47 % higher than those originating in the PRC. It can be concluded, therefore, from their market share and their relatively high price levels that their contribution to the injury suffered could only have been a minor one, if any. |
| --- | --- |

(114)

It is very unlikely that imports originating in other third countries, such as the Republic of Korea and Brazil could have contributed to the injury suffered by the Community industry. The market share of non-Chinese imports in the IP was only at around 3 %. In addition, the average prices of imports from the Republic of Korea and Brazil (i.e. countries from which the largest volumes of non-Chinese imports originated) were 25 % and 47 % higher than those originating in the PRC. It can be concluded, therefore, from their market share and their relatively high price levels that their contribution to the injury suffered could only have been a minor one, if any.

4.   Impact of competition between Community producers and overcapacity

| (115) | Some interested parties claimed that overcapacity within the Community refractory industry had forced the Community industry to compete by reducing prices to an injurious level. However, the capacity utilisation levels identified by the investigation and shown in indexed form at recital 90 over the period considered did not support this argument of overcapacity. Rather, it showed capacity levels resembling those of the steel industry and other similar industries. Whilst it is clear that capacities have been reduced and prices have fallen, this has, in major part, been a response to the increased dumped imports from the PRC. The Commission notes also that the major restructuring of the Community refractory industry had already taken place in the late 1990s. |
| --- | --- |

(115)

Some interested parties claimed that overcapacity within the Community refractory industry had forced the Community industry to compete by reducing prices to an injurious level. However, the capacity utilisation levels identified by the investigation and shown in indexed form at recital 90 over the period considered did not support this argument of overcapacity. Rather, it showed capacity levels resembling those of the steel industry and other similar industries. Whilst it is clear that capacities have been reduced and prices have fallen, this has, in major part, been a response to the increased dumped imports from the PRC. The Commission notes also that the major restructuring of the Community refractory industry had already taken place in the late 1990s.

5.   Impact of developments within the steel industry

| (116) | It was alleged that the technical progress resulting in longer lasting bricks and an efficient steel making process were causing the injury suffered by the Community industry. During the investigation it was pointed out by various steelmakers that due to technical progress, consumption of magnesia bricks per tonne of steel produced had decreased. | 2001 | 2002 | 2003 | IP |
| --- | --- | --- | --- | --- | --- |
| EU-25 Steel production (kilotonnes) | 180 531 | 180 758 | 183 441 | 185 197 |
| EU-25 Consumption of magnesia bricks in (tonnes) | 399 563 | 397 203 | 401 499 | 400 638 |
| Use of bricks in steel (tonnes per kilotonne) | 2,21 | 2,20 | 2,19 | 2,16 |

(116)

It was alleged that the technical progress resulting in longer lasting bricks and an efficient steel making process were causing the injury suffered by the Community industry. During the investigation it was pointed out by various steelmakers that due to technical progress, consumption of magnesia bricks per tonne of steel produced had decreased.

2001

2002

2003

IP

EU-25 Steel production (kilotonnes)

180 531

180 758

183 441

185 197

EU-25 Consumption of magnesia bricks in (tonnes)

399 563

397 203

401 499

400 638

Use of bricks in steel (tonnes per kilotonne)

2,21

2,20

2,19

2,16

The above table shows that the magnesia bricks use in steel was only around 2 %. A fall of this small magnitude would not explain the reductions in sales prices and profitability, as explained above in the section on injury. Therefore, it is considered that the effects of the better technical quality of the bricks could not have been a significant cause of the injury suffered by the Community industry.

| (117) | It was found during the investigation that some steel producers continue to produce some magnesia bricks themselves. No indication has, however, been found that this practice has increased over the period. Furthermore, as no steel company cooperated as a magnesia bricks producer, it was clear that this sector of production had no effect on the Community industry’s economic situation. |
| --- | --- |

(117)

It was found during the investigation that some steel producers continue to produce some magnesia bricks themselves. No indication has, however, been found that this practice has increased over the period. Furthermore, as no steel company cooperated as a magnesia bricks producer, it was clear that this sector of production had no effect on the Community industry’s economic situation.

6.   Impact of currency changes

| (118) | Another factor which is claimed to have caused the injury is the currency exchange rate of the dollar against the euro. This is potentially important since the Chinese renminbi has been pegged to the dollar for many years and it is argued that fluctuations in dollar/euro rates have made it more attractive for Chinese producers to export to the Community. |
| --- | --- |

(118)

Another factor which is claimed to have caused the injury is the currency exchange rate of the dollar against the euro. This is potentially important since the Chinese renminbi has been pegged to the dollar for many years and it is argued that fluctuations in dollar/euro rates have made it more attractive for Chinese producers to export to the Community.

| (119) | However, the fall of the dollar compared to the euro has not always coincided with the increases in imports. The exchange rate fall began in June 2002 whereas imports started to increase significantly in 2001. Furthermore, it should be stated that freight rates from the PRC to the Community have increased considerably over the period considered. If imports from the PRC were increasing simply because exchange rate fluctuations had created better market conditions, then it could also be expected that imports would fall, or at least stabilise, if such currency fluctuations have been compensated by increased freight rates. While this compensation indeed took place (during the final 15 months of the period considered freight rates increased by around 25 % (source P&O Nedlloyd)), imports have nevertheless continued to increase. |
| --- | --- |

(119)

However, the fall of the dollar compared to the euro has not always coincided with the increases in imports. The exchange rate fall began in June 2002 whereas imports started to increase significantly in 2001. Furthermore, it should be stated that freight rates from the PRC to the Community have increased considerably over the period considered. If imports from the PRC were increasing simply because exchange rate fluctuations had created better market conditions, then it could also be expected that imports would fall, or at least stabilise, if such currency fluctuations have been compensated by increased freight rates. While this compensation indeed took place (during the final 15 months of the period considered freight rates increased by around 25 % (source P&O Nedlloyd)), imports have nevertheless continued to increase.

| (120) | Therefore, it is provisionally concluded that the impact of currency changes can hardly have contributed to the injury suffered by the Community industry. |
| --- | --- |

(120)

Therefore, it is provisionally concluded that the impact of currency changes can hardly have contributed to the injury suffered by the Community industry.

7.   Impact of imports to the Community by the Community industry

| (121) | Some interested parties also claimed that injury was self-inflicted because the Community industry also imported the product concerned from the PRC. It is recalled that RHI, which is included in the Community industry, imported 5 % of its total Community sales volume from the PRC during the IP. However, the import share and the price difference for these imports compared to the Community sales are relatively small and could not have had a major impact on the market. |
| --- | --- |

(121)

Some interested parties also claimed that injury was self-inflicted because the Community industry also imported the product concerned from the PRC. It is recalled that RHI, which is included in the Community industry, imported 5 % of its total Community sales volume from the PRC during the IP. However, the import share and the price difference for these imports compared to the Community sales are relatively small and could not have had a major impact on the market.

8.   Impact of exports by the Community industry

| (122) | During the IP around 27 % of Community industry production volume was exported outside the Community. The volume of exports fell only slightly over the period. However, the profitability of these exports was higher than the sales on the Community market and could not be said to have had any negative impact on the injury suffered by the Community industry. |
| --- | --- |

(122)

During the IP around 27 % of Community industry production volume was exported outside the Community. The volume of exports fell only slightly over the period. However, the profitability of these exports was higher than the sales on the Community market and could not be said to have had any negative impact on the injury suffered by the Community industry.

9.   Conclusion on causation

| (123) | It should be recalled that the injury in this case is primarily price depression causing reduced profitability. Bearing in mind that the rapidly increasing imports from the PRC undercut substantially the Community industry prices, there is no indication that the abovementioned other factors could have been a significant cause of the material injury suffered by the Community industry. No further other factors have been found in the course of the investigation that could have caused material injury. |
| --- | --- |

(123)

It should be recalled that the injury in this case is primarily price depression causing reduced profitability. Bearing in mind that the rapidly increasing imports from the PRC undercut substantially the Community industry prices, there is no indication that the abovementioned other factors could have been a significant cause of the material injury suffered by the Community industry. No further other factors have been found in the course of the investigation that could have caused material injury.

| (124) | Based on the above analysis of the effects of all known factors on the situation of the Community industry, it is provisionally concluded that there is a causal link between the dumped imports from the PRC and the material injury suffered by the Community industry. |
| --- | --- |

(124)

Based on the above analysis of the effects of all known factors on the situation of the Community industry, it is provisionally concluded that there is a causal link between the dumped imports from the PRC and the material injury suffered by the Community industry.

E.   COMMUNITY INTEREST

1.   General considerations

| (125) | It has been examined whether compelling reasons exist that could lead to the conclusion that it would not be in the Community interest to impose anti-dumping duties against imports from the country concerned. The Commission sent questionnaires to importers, industrial users and suppliers. Questionnaire replies were received from 14 users, five suppliers and three unrelated importers. |
| --- | --- |

(125)

It has been examined whether compelling reasons exist that could lead to the conclusion that it would not be in the Community interest to impose anti-dumping duties against imports from the country concerned. The Commission sent questionnaires to importers, industrial users and suppliers. Questionnaire replies were received from 14 users, five suppliers and three unrelated importers.

| (126) | On the basis of the information received from the cooperating parties, the following conclusions are reached. |
| --- | --- |

(126)

On the basis of the information received from the cooperating parties, the following conclusions are reached.

2.   Interest of the Community industry

| (127) | It is recalled that the Community industry consisted of four producers which employ around 800 staff for the production and sales of the product concerned. It is also recalled that the economic indicators of the Community industry above showed deteriorating financial results during the period considered. Despite the slight improvement during the IP, the Community industry could not reach a satisfying financial situation due to dumped imports from the PRC. |
| --- | --- |

(127)

It is recalled that the Community industry consisted of four producers which employ around 800 staff for the production and sales of the product concerned. It is also recalled that the economic indicators of the Community industry above showed deteriorating financial results during the period considered. Despite the slight improvement during the IP, the Community industry could not reach a satisfying financial situation due to dumped imports from the PRC.

| (128) | If measures were not imposed it is clear that more and more production in the Community will be closed and that steel companies will be forced to rely much more heavily on Chinese production. There are few production sites around the world currently and the vast majority of raw materials (especially magnesium oxide) are located in the PRC. Therefore, there are no large-scale sources of supply in other third countries. On the other hand, based on the above, the Community industry would obviously benefit from the adoption of anti-dumping measures. |
| --- | --- |

(128)

If measures were not imposed it is clear that more and more production in the Community will be closed and that steel companies will be forced to rely much more heavily on Chinese production. There are few production sites around the world currently and the vast majority of raw materials (especially magnesium oxide) are located in the PRC. Therefore, there are no large-scale sources of supply in other third countries. On the other hand, based on the above, the Community industry would obviously benefit from the adoption of anti-dumping measures.

| (129) | It is, therefore, provisionally concluded that anti-dumping measures would be in the interest of the Community industry. |
| --- | --- |

(129)

It is, therefore, provisionally concluded that anti-dumping measures would be in the interest of the Community industry.

3.   Interest of unrelated importers

| (130) | Four companies completed the questionnaire for unrelated importers, although only two of these imported the product concerned during the IP. The cooperating importers opposed the imposition of measures and claimed that there were only a few large refractory producers in the Community and that the imports of Chinese bricks had enhanced competition on the Community market. Should measures be imposed and prices raised, Chinese companies may reduce sales to the Community and the importers would suffer losses through reduced trading and reduced profitability. |
| --- | --- |

(130)

Four companies completed the questionnaire for unrelated importers, although only two of these imported the product concerned during the IP. The cooperating importers opposed the imposition of measures and claimed that there were only a few large refractory producers in the Community and that the imports of Chinese bricks had enhanced competition on the Community market. Should measures be imposed and prices raised, Chinese companies may reduce sales to the Community and the importers would suffer losses through reduced trading and reduced profitability.

| (131) | One importer argued that they may have to close down their businesses employing eight staff, as the product concerned represents a major proportion of their business. However, the purpose of the anti-dumping measures is neither to prohibit imports nor to hamper the activities of the importers in the Community. As the proposed measures affect only a relatively small proportion of the Community steel industry’s total costs and there are existing business relationships established between Chinese exporting producers and the Community users based on specific technical requirements, it is likely that the traditional business of the importers will continue even if anti-dumping measures against dumped imports are imposed. |
| --- | --- |

(131)

One importer argued that they may have to close down their businesses employing eight staff, as the product concerned represents a major proportion of their business. However, the purpose of the anti-dumping measures is neither to prohibit imports nor to hamper the activities of the importers in the Community. As the proposed measures affect only a relatively small proportion of the Community steel industry’s total costs and there are existing business relationships established between Chinese exporting producers and the Community users based on specific technical requirements, it is likely that the traditional business of the importers will continue even if anti-dumping measures against dumped imports are imposed.

| (132) | Furthermore, it was found that the other importer could suffer no substantial consequences if measures were imposed since the product concerned comprises much less than 1 % of total company turnover. |
| --- | --- |

(132)

Furthermore, it was found that the other importer could suffer no substantial consequences if measures were imposed since the product concerned comprises much less than 1 % of total company turnover.

4.   Interest of suppliers

| (133) | The suppliers which cooperated in the investigation supported the proceeding. Two companies, which had been supplying Community industry with the main raw material for magnesia bricks, dead burned magnesite, claimed that they had to stop supplying the refractory industry some years ago because Chinese raw material and, later on, Chinese magnesia bricks entered the market. |
| --- | --- |

(133)

The suppliers which cooperated in the investigation supported the proceeding. Two companies, which had been supplying Community industry with the main raw material for magnesia bricks, dead burned magnesite, claimed that they had to stop supplying the refractory industry some years ago because Chinese raw material and, later on, Chinese magnesia bricks entered the market.

5.   Interest of users

5.1.   Preliminary remark

| (134) | 14 user companies, i.e. steel producers, submitted questionnaire responses and a further producer and Wirtschaftsvereinigung Stahl (the German Steel Association) made submissions. One further user expressed support for the Community industry’s complaint but all other steel companies opposed the imposition of anti-dumping measures. In total, the user companies represented about 38 % of Community magnesia brick consumption. |
| --- | --- |

(134)

14 user companies, i.e. steel producers, submitted questionnaire responses and a further producer and Wirtschaftsvereinigung Stahl (the German Steel Association) made submissions. One further user expressed support for the Community industry’s complaint but all other steel companies opposed the imposition of anti-dumping measures. In total, the user companies represented about 38 % of Community magnesia brick consumption.

5.2.   Highly sensitive product

| (135) | Refractories are a strategically very important material for the steel industry. All the steel they produce passes through the converters, furnaces and ladles which are lined with magnesia bricks. The consequence of refractory failure could, therefore, have material repercussions in terms of interrupted production, repairs and safety. Therefore, high quality, i.e. long lasting bricks, and good technical support is a very important factor for this kind of product. Because of these high technical requirements, it takes a long time, high investments and research to build a supplier relationship. Also the change from one Chinese producer to another producer would be very difficult. The steel producers claim that they have made good progress in the last two years with Chinese producers and their importers in the Community, especially because efficiency was improved and innovations have been made. |
| --- | --- |

(135)

Refractories are a strategically very important material for the steel industry. All the steel they produce passes through the converters, furnaces and ladles which are lined with magnesia bricks. The consequence of refractory failure could, therefore, have material repercussions in terms of interrupted production, repairs and safety. Therefore, high quality, i.e. long lasting bricks, and good technical support is a very important factor for this kind of product. Because of these high technical requirements, it takes a long time, high investments and research to build a supplier relationship. Also the change from one Chinese producer to another producer would be very difficult. The steel producers claim that they have made good progress in the last two years with Chinese producers and their importers in the Community, especially because efficiency was improved and innovations have been made.

| (136) | The opposing companies consequently fear that there would be a serious risk of shortage of high quality bricks with adequate technical support. They fear that Chinese producers would disappear from the Community market if measures were imposed. In addition, the main reserves of magnesite, which is the main raw material of magnesia bricks, are situated in the PRC. The steel industry is therefore afraid that their relations with Chinese raw material suppliers might be impaired. |
| --- | --- |

(136)

The opposing companies consequently fear that there would be a serious risk of shortage of high quality bricks with adequate technical support. They fear that Chinese producers would disappear from the Community market if measures were imposed. In addition, the main reserves of magnesite, which is the main raw material of magnesia bricks, are situated in the PRC. The steel industry is therefore afraid that their relations with Chinese raw material suppliers might be impaired.

| (137) | As stated earlier, the purpose of the anti-dumping measures is neither to prohibit imports nor to hamper the activities of the steel producers. Consequently, non-injurious imports could still enter the Community market. Therefore, established relationships with Chinese exporters could be continued even if anti-dumping measures against dumped imports are imposed. This is confirmed by the fact that the product concerned only represents an insignificant part in the total cost of production of steel producers, so that the impact of measures on the costs of users is negligible (see below recital 143). |
| --- | --- |

(137)

As stated earlier, the purpose of the anti-dumping measures is neither to prohibit imports nor to hamper the activities of the steel producers. Consequently, non-injurious imports could still enter the Community market. Therefore, established relationships with Chinese exporters could be continued even if anti-dumping measures against dumped imports are imposed. This is confirmed by the fact that the product concerned only represents an insignificant part in the total cost of production of steel producers, so that the impact of measures on the costs of users is negligible (see below recital 143).

| (138) | It should also be pointed out that the product concerned is of strategic importance for the steel industry. If measures are not imposed, there is a risk of a transfer of the production of the product concerned to the PRC in the long-term. Bearing in mind the lack of important producers in other third countries, such a reliance on Chinese imports is clearly not a viable scenario for the steel industry. |
| --- | --- |

(138)

It should also be pointed out that the product concerned is of strategic importance for the steel industry. If measures are not imposed, there is a risk of a transfer of the production of the product concerned to the PRC in the long-term. Bearing in mind the lack of important producers in other third countries, such a reliance on Chinese imports is clearly not a viable scenario for the steel industry.

| (139) | Furthermore, there is no substantiated evidence concerning a possible impact on access to raw material for those steel makers which produce magnesia bricks themselves. |
| --- | --- |

(139)

Furthermore, there is no substantiated evidence concerning a possible impact on access to raw material for those steel makers which produce magnesia bricks themselves.

5.3.   Market structure

| (140) | The user industry claimed that measures would strengthen a market structure consisting of few important producers. The users claimed that this situation of a lack of competition developed due to mergers and acquisitions in the refractory industry in the 1990s. |
| --- | --- |

(140)

The user industry claimed that measures would strengthen a market structure consisting of few important producers. The users claimed that this situation of a lack of competition developed due to mergers and acquisitions in the refractory industry in the 1990s.

| (141) | The largest producer on the Community market had around 30 % market share in the IP which is unlikely to be large enough for them to control and dominate the market. This is supported by the fact that imports from the PRC have been able to erode their market share. As outlined above, these imports will in all likelihood continue after the imposition of measures. Furthermore, many smaller companies produce magnesia bricks in the Community, including some steel companies themselves, and no evidence was provided during the investigation of how the large players on the Community market have dominated the market to the extent claimed. As there was no evidence of any anti-competitive behaviour, the allegation remains unfounded and unsubstantiated. |
| --- | --- |

(141)

The largest producer on the Community market had around 30 % market share in the IP which is unlikely to be large enough for them to control and dominate the market. This is supported by the fact that imports from the PRC have been able to erode their market share. As outlined above, these imports will in all likelihood continue after the imposition of measures. Furthermore, many smaller companies produce magnesia bricks in the Community, including some steel companies themselves, and no evidence was provided during the investigation of how the large players on the Community market have dominated the market to the extent claimed. As there was no evidence of any anti-competitive behaviour, the allegation remains unfounded and unsubstantiated.

5.4.   Increased costs

| (142) | The steel industry also argued that anti-dumping duties on magnesia bricks would generate additional costs in the highly price sensitive steel market, particularly in respect of competition with steel producers outside the Community. Therefore, anti-dumping duties would have an impact on the steel industry’s competitiveness. Especially, as pressure on the markets for other raw materials for steel products is also very high. |
| --- | --- |

(142)

The steel industry also argued that anti-dumping duties on magnesia bricks would generate additional costs in the highly price sensitive steel market, particularly in respect of competition with steel producers outside the Community. Therefore, anti-dumping duties would have an impact on the steel industry’s competitiveness. Especially, as pressure on the markets for other raw materials for steel products is also very high.

| (143) | However, the questionnaire responses of the user industry show that the costs for magnesia bricks account for significantly less than 1 % of total costs. Therefore, the proposed anti-dumping duties would have only a marginal influence on the total costs in the steel making process. Furthermore, recent developments in the steel industry clearly show much improved sales prices and profitability, which means that the importance of magnesia bricks in total sales turnover is reduced further. |
| --- | --- |

(143)

However, the questionnaire responses of the user industry show that the costs for magnesia bricks account for significantly less than 1 % of total costs. Therefore, the proposed anti-dumping duties would have only a marginal influence on the total costs in the steel making process. Furthermore, recent developments in the steel industry clearly show much improved sales prices and profitability, which means that the importance of magnesia bricks in total sales turnover is reduced further.

5.5.   Conclusion on users’ interest

| (144) | Considering the above, it is unlikely that anti-dumping measures would lead to a shortage of supply or to a non-competitive situation on the Community market, in particular, as Chinese magnesia bricks are still likely to retain the current market share. As regards the cost increase, it was found that it would only be marginal and would not materially affect the competitiveness of the steel industry. Therefore, it is provisionally considered that users’ interest is not such as to prohibit the imposition of measures. |
| --- | --- |

(144)

Considering the above, it is unlikely that anti-dumping measures would lead to a shortage of supply or to a non-competitive situation on the Community market, in particular, as Chinese magnesia bricks are still likely to retain the current market share. As regards the cost increase, it was found that it would only be marginal and would not materially affect the competitiveness of the steel industry. Therefore, it is provisionally considered that users’ interest is not such as to prohibit the imposition of measures.

6.   Conclusion on Community interest

| (145) | The imposition of measures on imports of magnesia bricks originating in the countries concerned would clearly be in the interest of the Community industry. As regards both the importers/traders and the user industries, any impact on prices of magnesia bricks is expected only to be marginal. In contrast, the losses of market share, price reductions and profitability losses suffered by the Community industry are clearly of greater magnitude. |
| --- | --- |

(145)

The imposition of measures on imports of magnesia bricks originating in the countries concerned would clearly be in the interest of the Community industry. As regards both the importers/traders and the user industries, any impact on prices of magnesia bricks is expected only to be marginal. In contrast, the losses of market share, price reductions and profitability losses suffered by the Community industry are clearly of greater magnitude.

| (146) | In view of the above, it is provisionally concluded that there are no compelling reasons not to impose anti-dumping duties on imports of magnesia bricks originating in the PRC. |
| --- | --- |

(146)

In view of the above, it is provisionally concluded that there are no compelling reasons not to impose anti-dumping duties on imports of magnesia bricks originating in the PRC.

F.   ANTI-DUMPING MEASURES

1.   Injury elimination level

| (147) | In view of the conclusions reached with regard to dumping, injury and Community interest, measures should be imposed in order to prevent further injury being caused to the Community industry by the dumped imports. |
| --- | --- |

(147)

In view of the conclusions reached with regard to dumping, injury and Community interest, measures should be imposed in order to prevent further injury being caused to the Community industry by the dumped imports.

| (148) | The measures should be imposed at a level sufficient to eliminate the injury caused by these imports without exceeding the dumping margin found. When calculating the amount of duty necessary to remove the effects of the injurious dumping, it was considered that any measures should allow the Community industry to cover its costs of production and to obtain overall a profit before tax that could be reasonably achieved by an industry of this type in the sector under normal conditions of competition, i.e. in the absence of dumped imports, on the sales of the like product in the Community. The pre-tax profit margin used for this calculation was 8 % of turnover based on profit levels obtained prior to the existence of dumped imports. On this basis, a non-injurious price was calculated for the Community industry of the like product. The non-injurious price has been obtained by adding the abovementioned profit margin of 8 % to the cost of production. |
| --- | --- |

(148)

The measures should be imposed at a level sufficient to eliminate the injury caused by these imports without exceeding the dumping margin found. When calculating the amount of duty necessary to remove the effects of the injurious dumping, it was considered that any measures should allow the Community industry to cover its costs of production and to obtain overall a profit before tax that could be reasonably achieved by an industry of this type in the sector under normal conditions of competition, i.e. in the absence of dumped imports, on the sales of the like product in the Community. The pre-tax profit margin used for this calculation was 8 % of turnover based on profit levels obtained prior to the existence of dumped imports. On this basis, a non-injurious price was calculated for the Community industry of the like product. The non-injurious price has been obtained by adding the abovementioned profit margin of 8 % to the cost of production.

| (149) | The necessary price increase was then determined on the basis of a comparison of the weighted average import price with the average non-injurious price. A 10 % allowance was added to the import prices for three reasons. Firstly, the Community industry production sites were located close to steelworks, whereas transport and insurance costs from ports of entry to the Community for imports were usually higher. Secondly, the Community industry included technical support, as part of the purchase price to the relevant steelworks, whereas the exporters usually did not. Thirdly, all sales by the Community industry were at end-user level, whereas many import transactions were at the level of traders which had additional costs. |
| --- | --- |

(149)

The necessary price increase was then determined on the basis of a comparison of the weighted average import price with the average non-injurious price. A 10 % allowance was added to the import prices for three reasons. Firstly, the Community industry production sites were located close to steelworks, whereas transport and insurance costs from ports of entry to the Community for imports were usually higher. Secondly, the Community industry included technical support, as part of the purchase price to the relevant steelworks, whereas the exporters usually did not. Thirdly, all sales by the Community industry were at end-user level, whereas many import transactions were at the level of traders which had additional costs.

| (150) | Any difference resulting from this comparison was then expressed as a percentage of the average import cif value. This comparison was made using groupings of PCN numbers as explained at recital 11. |
| --- | --- |

(150)

Any difference resulting from this comparison was then expressed as a percentage of the average import cif value. This comparison was made using groupings of PCN numbers as explained at recital 11.

| (151) | The provisional weighted average injury margins for companies granted either IT or MET status were:












  — | Liaoning Mayerton Refractories Co. Ltd |
| --- | --- | --- |

(151)

The provisional weighted average injury margins for companies granted either IT or MET status were:

—

Liaoning Mayerton Refractories Co. Ltd

17,1  %

| — | Yingkou Sanhua Refractory Materials Co. Ltd |
| --- | --- |

—

Yingkou Sanhua Refractory Materials Co. Ltd

42,1  %

| — | Yingkou Kyushu Refractories Co. Ltd |
| --- | --- |

—

Yingkou Kyushu Refractories Co. Ltd

21,9  %

| — | Yingkou Guangyang Refractories Co. Ltd |
| --- | --- |

—

Yingkou Guangyang Refractories Co. Ltd

21,9  %

| — | Yingkou Qinghua Refractories Co. Ltd |
| --- | --- |

—

Yingkou Qinghua Refractories Co. Ltd

54,6  %

| — | Dashiqiao Sanqiang Refractory Materials Co. Ltd |
| --- | --- |

—

Dashiqiao Sanqiang Refractory Materials Co. Ltd

66,1  %.

| (152) | In order to calculate the countrywide injury elimination level for all other exporters in the PRC, it should be recalled that the level of cooperation was low. Therefore, a margin was calculated on the basis of the data of those cooperating exporters, to which neither MET nor IT was granted. As this injury elimination level was found to be lower than the highest injury margin established for the companies listed above and in order to avoid giving an incentive for non-cooperation, the countrywide injury margin was set at the level of the highest margin established above, i.e. 66,1 %. |
| --- | --- |

(152)

In order to calculate the countrywide injury elimination level for all other exporters in the PRC, it should be recalled that the level of cooperation was low. Therefore, a margin was calculated on the basis of the data of those cooperating exporters, to which neither MET nor IT was granted. As this injury elimination level was found to be lower than the highest injury margin established for the companies listed above and in order to avoid giving an incentive for non-cooperation, the countrywide injury margin was set at the level of the highest margin established above, i.e. 66,1 %.

2.   Provisional measures

| (153) | In the light of the foregoing, it is considered that in accordance with Article 7(2) of the basic Regulation, provisional anti-dumping duties on imports of the product concerned originating in the PRC should be imposed. The anti-dumping duties should be set at the lower of the dumping and injury margins, in accordance with the lesser duty rule. Since the level of cooperation was low, the residual margin should be set at the highest margin calculated for the cooperating exporting producers, i.e. 66,1 % of the cif Community frontier price, duty unpaid. The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of the present investigation. Therefore, they reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the countrywide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the country concerned and produced by the companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the duty rate applicable to ‘all other companies’. |
| --- | --- |

(153)

In the light of the foregoing, it is considered that in accordance with Article 7(2) of the basic Regulation, provisional anti-dumping duties on imports of the product concerned originating in the PRC should be imposed. The anti-dumping duties should be set at the lower of the dumping and injury margins, in accordance with the lesser duty rule. Since the level of cooperation was low, the residual margin should be set at the highest margin calculated for the cooperating exporting producers, i.e. 66,1 % of the cif Community frontier price, duty unpaid. The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of the present investigation. Therefore, they reflect the situation found during that investigation with respect to these companies. These duty rates (as opposed to the countrywide duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products originating in the country concerned and produced by the companies and thus by the specific legal entities mentioned. Imported products produced by any other company not specifically mentioned in the operative part of this Regulation with its name and address, including entities related to those specifically mentioned, cannot benefit from these rates and shall be subject to the duty rate applicable to ‘all other companies’.

| (154) | Any claim requesting the application of these individual company anti-dumping duty rates (e.g. following a change in the name of the entity or following the setting-up of new production or sales entities) should be addressed to the Commission (3) forthwith with all relevant information, in particular any modification in the company's activities linked to production, domestic and export sales associated with e.g. that name change or that change in the production and sales entities. If appropriate, the Regulation will accordingly be amended by updating the list of companies benefiting from individual duty rates. |
| --- | --- |

(154)

Any claim requesting the application of these individual company anti-dumping duty rates (e.g. following a change in the name of the entity or following the setting-up of new production or sales entities) should be addressed to the Commission (3) forthwith with all relevant information, in particular any modification in the company's activities linked to production, domestic and export sales associated with e.g. that name change or that change in the production and sales entities. If appropriate, the Regulation will accordingly be amended by updating the list of companies benefiting from individual duty rates.

3

| (155) | The proposed anti-dumping duties are the following:








  Company | Injury elimination margin | Dumping margin | Proposed anti-dumping duty |
| --- | --- | --- | --- | --- |
| Liaoning Mayerton Refractories Co. Ltd | 17,1  % | 11,2  % | 11,2  % |
| Yingkou Sanhua Refractory Materials Co. Ltd | 42,1  % | 34,1  % | 34,1  % |
| Yingkou Kyushu Refractories Co. Ltd | 21,9  % | 55,7  % | 21,9  % |
| Yingkou Guangyang Refractories Co. Ltd | 21,9  % | 55,7  % | 21,9  % |
| Yingkou Qinghua Refractories Co. Ltd | 54,6  % | 41,4  % | 41,4  % |
| Yingkou Orind Refractories Ltd | 66,1  % | 99,9  % | 66,1  % |
| Dashiqiao Sanqiang Refractory Materials Co. Ltd | 66,1  % | 99,9  % | 66,1  % |
| RHI Refractories Liaoning Co. Ltd | 66,1  % | 99,9  % | 66,1  % |
| Dashiqiao City Magnesite Refractory Factory Co., Ltd | 66,1  % | 99,9  % | 66,1  % |
| All other companies | 66,1  % | 99,9  % | 66,1  % |

(155)

The proposed anti-dumping duties are the following:

Company

Injury elimination margin

Dumping margin

Proposed anti-dumping duty

Liaoning Mayerton Refractories Co. Ltd

17,1  %

11,2  %

11,2  %

Yingkou Sanhua Refractory Materials Co. Ltd

42,1  %

34,1  %

34,1  %

Yingkou Kyushu Refractories Co. Ltd

21,9  %

55,7  %

21,9  %

Yingkou Guangyang Refractories Co. Ltd

21,9  %

55,7  %

21,9  %

Yingkou Qinghua Refractories Co. Ltd

54,6  %

41,4  %

41,4  %

Yingkou Orind Refractories Ltd

66,1  %

99,9  %

66,1  %

Dashiqiao Sanqiang Refractory Materials Co. Ltd

66,1  %

99,9  %

66,1  %

RHI Refractories Liaoning Co. Ltd

66,1  %

99,9  %

66,1  %

Dashiqiao City Magnesite Refractory Factory Co., Ltd

66,1  %

99,9  %

66,1  %

All other companies

66,1  %

99,9  %

66,1  %

G.   FINAL PROVISION

| (156) | In the interest of sound administration, a period should be fixed within which the interested parties which made themselves known within the time limit specified in the notice of initiation may make their views known in writing and request a hearing. Furthermore, it should be stated that the findings concerning the imposition of duties made for the purposes of this Regulation are provisional and may have to be reconsidered for the purpose of any definitive duty, |
| --- | --- |

(156)

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

HAS ADOPTED THIS REGULATION:

Article 1

1.   A provisional anti-dumping duty is hereby imposed on imports of chemically bonded, unfired magnesia bricks, whose magnesia component contains at least 80 % MgO, whether or not containing magnesite, originating in the People’s Republic of China, falling within CN codes ex 6815 91 00, ex 6815 99 10 and ex 6815 99 90 (TARIC codes 6815910010, 6815991020 and 6815999020).

2.   The rate of the provisional anti-dumping duty applicable to the net, free-at-Community frontier price, before duty, of the products described in paragraph 1, shall be as follows:

| Manufacturer | Anti-dumping duty
  (%) | TARIC additional code |
| --- | --- | --- |
| Liaoning Mayerton Refractories Co. Ltd, Jinqiao Development Zone, Dashiqiao, Liaoning Province, 115100, PRC | 11,2 | A632 |
| Yingkou Sanhua Refractory Materials Co. Ltd, Gangdu Management Zone, Dashiqiao City, Liaoning Province, 115100, PRC | 34,1 | A633 |
| Yingkou Kyushu Refractories Co. Ltd, Houlashan, Jinqiao Village, Dashiqiao City, Liaoning Province 115100, PRC | 21,9 | A634 |
| Yingkou Guangyang Refractories Co. Ltd, Houlashan, Jinqiao Village, Dashiqiao City, Liaoning Province, 115100, PRC, | 21,9 | A635 |
| Yingkou Qinghua Refractories Co. Ltd, Qinghuayu Village, Qinghua District, Dashiqiao City, Liaoning Province, 115100, PRC | 41,4 | A636 |
| Yingkou Orind Refractories Ltd, Wanghai, Bayuquan, Yingkou, Liaoning, 115007, PRC | 66,1 | A637 |
| Dashiqiao Sanqiang Refractory Materials Co. Ltd, Biangan Village, Nanlou Economic Development zone, Dashiqiao City, Liaoning Province, 115100, PRC | 66,1 | A638 |
| RHI Refractories Liaoning Co. Ltd, Shenjingzi, Bayuquan, Yingkou, Liaoning, 115007, P.R. PRC | 66,1 | A639 |
| Dashiqiao City Magnesite Refractory Factory Co. Ltd, No. 8, Heping Yuzigou, Dashiqiao City, Liaoning Province, 115100, PRC | 66,1 | A640 |
| All other companies | 66,1 | A999 |

Manufacturer

Anti-dumping duty

(%)

TARIC additional code

Liaoning Mayerton Refractories Co. Ltd, Jinqiao Development Zone, Dashiqiao, Liaoning Province, 115100, PRC

11,2

A632

Yingkou Sanhua Refractory Materials Co. Ltd, Gangdu Management Zone, Dashiqiao City, Liaoning Province, 115100, PRC

34,1

A633

Yingkou Kyushu Refractories Co. Ltd, Houlashan, Jinqiao Village, Dashiqiao City, Liaoning Province 115100, PRC

21,9

A634

Yingkou Guangyang Refractories Co. Ltd, Houlashan, Jinqiao Village, Dashiqiao City, Liaoning Province, 115100, PRC,

21,9

A635

Yingkou Qinghua Refractories Co. Ltd, Qinghuayu Village, Qinghua District, Dashiqiao City, Liaoning Province, 115100, PRC

41,4

A636

Yingkou Orind Refractories Ltd, Wanghai, Bayuquan, Yingkou, Liaoning, 115007, PRC

66,1

A637

Dashiqiao Sanqiang Refractory Materials Co. Ltd, Biangan Village, Nanlou Economic Development zone, Dashiqiao City, Liaoning Province, 115100, PRC

66,1

A638

RHI Refractories Liaoning Co. Ltd, Shenjingzi, Bayuquan, Yingkou, Liaoning, 115007, P.R. PRC

66,1

A639

Dashiqiao City Magnesite Refractory Factory Co. Ltd, No. 8, Heping Yuzigou, Dashiqiao City, Liaoning Province, 115100, PRC

66,1

A640

All other companies

66,1

A999

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

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

Article 2

Without prejudice to Article 20 of Council Regulation (EC) No 384/96, interested parties may request disclosure of the essential facts and considerations on the basis of which this Regulation was adopted, make their views known in writing and apply to be heard orally by the Commission within 30 days of the date of entry into force of this Regulation.

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

Article 3

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

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

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

Done at Brussels, 11 April 2005.

For the Commission

Peter MANDELSON

Member of the Commission

---

(1)  
  OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

1

(2)  
  OJ C 180, 13.7.2004, p. 2.

2

(3)

3

| European Commission |
| --- |
| Directorate-General for Trade |
| Direction B |
| Office J-79 5/16 |
| B-1049 Brussels. |

European Commission

Directorate-General for Trade

Direction B

Office J-79 5/16

B-1049 Brussels.

---

| 12.4.2005 | EN | Official Journal of the European Union | L 93/31 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/31

---

COMMISSION REGULATION (EC) No 553/2005

of 11 April 2005

providing for a further allocation of import rights under Regulation (EC) No 1081/1999 for bulls, cows and heifers other than for slaughter of certain Alpine and mountain breeds

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal (1),

Having regard to Commission Regulation (EC) No 1081/1999 of 26 May 1999 opening and providing for the administration of tariff quotas for imports of bulls, cows and heifers other than for slaughter of certain Alpine and mountain breeds, repealing Regulation (EC) No 1012/98 and amending Regulation (EC) No 1143/98 (2), and in particular Article 9(3) thereof,

Whereas:

Article 1 of Regulation (EC) No 1081/1999 provides for the opening, for the period 1 July 2004 to 30 June 2005, of two tariff quotas each of 5 000 head for bulls, cows and heifers other than for slaughter of certain Alpine and mountain breeds. Article 9 of that Regulation provides for a further allocation, for both quotas, of quantities not covered by import licence applications at 15 March 2005,

HAS ADOPTED THIS REGULATION:

Article 1

The quantities referred to in Article 9(1) of Regulation (EC) No 1081/1999 shall be:

| — | 3 711 head for serial number 09.0001, |
| --- | --- |

—

3 711 head for serial number 09.0001,

| — | 3 712 head for serial number 09.0003. |
| --- | --- |

—

3 712 head for serial number 09.0003.

Article 2

This Regulation shall enter into force on 12 April 2005.

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

Done at Brussels, 11 April 2005.

For the Commission

J. M. SILVA RODRÍGUEZ

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 1782/2003 (OJ L 270, 21.10.2003, p. 1).

1

(2)  
  OJ L 131, 27.5.1999, p. 15. Regulation as amended by Regulation (EC) No 1096/2001 (OJ L 150, 6.6.2001, p. 33).

2

---

| 12.4.2005 | EN | Official Journal of the European Union | L 93/32 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/32

---

COMMISSION REGULATION (EC) No 554/2005

of 11 April 2005

fixing Community producer and import prices for carnations and roses with a view to the application of the arrangements governing imports of certain floricultural products originating in Jordan

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 4088/87 of 21 December 1987 fixing conditions for the application of preferential customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco and the West Bank and the Gaza Strip (1), and in particular Article 5(2)(a) thereof,

Whereas:

| (1) | Under Articles 2(2) and 3 of Regulation (EEC) No 4088/87, Community import and producer prices are fixed each fortnight for uniflorous (bloom) carnations, multiflorous (spray) carnations, large-flowered roses and small-flowered roses and apply for two-week periods. Under Article 1(b) of Commission Regulation (EEC) No 700/88 of 17 March 1988 laying down detailed rules for the application of the arrangements for the import into the Community of certain floricultural products originating in Cyprus, Israel, Jordan, Morocco and the West Bank and the Gaza Strip (2), those prices are determined for two-week periods on the basis of weighted prices provided by the Member States. |
| --- | --- |

(1)

Under Articles 2(2) and 3 of Regulation (EEC) No 4088/87, Community import and producer prices are fixed each fortnight for uniflorous (bloom) carnations, multiflorous (spray) carnations, large-flowered roses and small-flowered roses and apply for two-week periods. Under Article 1(b) of Commission Regulation (EEC) No 700/88 of 17 March 1988 laying down detailed rules for the application of the arrangements for the import into the Community of certain floricultural products originating in Cyprus, Israel, Jordan, Morocco and the West Bank and the Gaza Strip (2), those prices are determined for two-week periods on the basis of weighted prices provided by the Member States.

| (2) | Those prices should be fixed immediately so the customs duties applicable can be determined. |
| --- | --- |

(2)

Those prices should be fixed immediately so the customs duties applicable can be determined.

| (3) | Following the accession of Cyprus to the European Union on 1 May 2004, it is no longer necessary to fix import prices for Cyprus. |
| --- | --- |

(3)

Following the accession of Cyprus to the European Union on 1 May 2004, it is no longer necessary to fix import prices for Cyprus.

| (4) | Likewise, it is no longer necessary to fix import prices for Israel, Morocco and the West Bank and the Gaza Strip, in order to take account of the agreements approved by Council Decisions 2003/917/EC of 22 December 2003 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the State of Israel concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Israel Association Agreement (3), 2003/914/EC of 22 December 2003 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Kingdom of Morocco concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 3 to the EC-Morocco Association Agreement (4) and 2005/4/EC of 22 December 2004 on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Palestinian Authority Interim Association Agreement (5). |
| --- | --- |

(4)

Likewise, it is no longer necessary to fix import prices for Israel, Morocco and the West Bank and the Gaza Strip, in order to take account of the agreements approved by Council Decisions 2003/917/EC of 22 December 2003 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the State of Israel concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Israel Association Agreement (3), 2003/914/EC of 22 December 2003 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Kingdom of Morocco concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 3 to the EC-Morocco Association Agreement (4) and 2005/4/EC of 22 December 2004 on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Palestinian Authority Interim Association Agreement (5).

| (5) | The Commission must adopt these measures in between the meetings of the Management Committee for Live Plants and Floriculture Products, |
| --- | --- |

(5)

The Commission must adopt these measures in between the meetings of the Management Committee for Live Plants and Floriculture Products,

HAS ADOPTED THIS REGULATION:

Article 1

The Community producer and import prices for uniflorous (bloom) carnations, multiflorous (spray) carnations, large-flowered roses and small-flowered roses as referred to in Article 1 of Regulation (EEC) No 4088/87 shall be as set out in the Annex hereto for the period from 13 to 26 April 2005.

Article 2

This Regulation shall enter into force on the day of 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, 11 April 2005.

For the Commission

J. M. SILVA RODRÍGUEZ

Director-General for Agriculture and Rural Development

---

(1)  
  OJ L 382, 31.12.1987, p. 22. Regulation as last amended by Regulation (EC) No 1300/97 (OJ L 177, 5.7.1997, p. 1).

1

(2)  
  OJ L 72, 18.3.1988, p. 16. Regulation as last amended by Regulation (EC) No 2062/97 (OJ L 289, 22.10.1997, p. 1).

2

(3)  
  OJ L 346, 31.12.2003, p. 65.

3

(4)  
  OJ L 345, 31.12.2003, p. 117.

4

(5)  
  OJ L 2, 5.1.2005, p. 4.

5

---

ANNEX

| (EUR/100 pieces) |
| --- |
| Period from 13 to 26 April 2005 |
| Community producer price | Uniflorous (bloom) carnations | Multiflorous (spray)
  carnations | Large-flowered roses | Small-flowered roses |
| | 15,65 | 12,78 | 22,47 | 11,72 |
| Community import prices | Uniflorous (bloom) carnations | Multiflorous (spray)
  carnations | Large-flowered roses | Small-flowered roses |
| Jordan | — | — | — | — |

(EUR/100 pieces)

Period from 13 to 26 April 2005

Community producer price

Uniflorous (bloom) carnations

Multiflorous (spray)

carnations

Large-flowered roses

Small-flowered roses

15,65

12,78

22,47

11,72

Community import prices

Uniflorous (bloom) carnations

Multiflorous (spray)

carnations

Large-flowered roses

Small-flowered roses

Jordan

—

—

—

—

---

II Acts whose publication is not obligatory

Commission

| 12.4.2005 | EN | Official Journal of the European Union | L 93/34 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/34

---

COMMISSION DECISION

of 4 April 2005

on simplified certificates for the importation of bovine semen and fresh pig meat from Canada and amending Decision 2004/639/EC

(notified under document number C(2005) 1002)

(Text with EEA relevance)

(2005/290/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Decision 1999/201/EC of 14 December 1998 on the conclusion of the Agreement between the European Community and the Government of Canada on sanitary measures to protect public and animal health in respect of trade in live animals and animal products (1), and in particular Article 3 thereof,

Having regard to Council Directive 88/407/EEC of 14 June 1988 laying down the animal health requirements applicable to intra-Community trade in and imports of semen of domestic animals of the bovine species (2), in particular Articles 10(2) and 11(2) thereof,

Having regard to Council Directive 72/462/EEC of 12 December 1972 on health and veterinary inspection problems upon importation of bovine, ovine and caprine animals and swine, fresh meat or meat products from third countries (3), and in particular Articles 16(1) and 22(2) 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 (4), in particular Article 8(4) and 9(4) (b) thereof.

Whereas:

| (1) | Annex V to the Agreement of 17 December 1998 between the European Community and the Government of Canada on sanitary measures to protect public and animal health in respect of trade in live animals and animal products (the Agreement) establishes the public health and animal health measures for imports into the Community of certain animals and products thereof for which equivalence should be recognised. |
| --- | --- |

(1)

Annex V to the Agreement of 17 December 1998 between the European Community and the Government of Canada on sanitary measures to protect public and animal health in respect of trade in live animals and animal products (the Agreement) establishes the public health and animal health measures for imports into the Community of certain animals and products thereof for which equivalence should be recognised.

| (2) | Annex VII to the Agreement provides for simplified official animal health and/or public health attestations to be included in the model health certificate for imports into the Community of live animals and animal products for which equivalence of measures (Yes-1) has been recognised. |
| --- | --- |

(2)

Annex VII to the Agreement provides for simplified official animal health and/or public health attestations to be included in the model health certificate for imports into the Community of live animals and animal products for which equivalence of measures (Yes-1) has been recognised.

| (3) | Equivalence has been recognised for bovine semen with respect to animal health requirements on the basis of Directive 88/407/EEC, as amended by Directive 2003/43/EC (5), and therefore a simplified model certificate for bovine semen should be established. |
| --- | --- |

(3)

Equivalence has been recognised for bovine semen with respect to animal health requirements on the basis of Directive 88/407/EEC, as amended by Directive 2003/43/EC (5), and therefore a simplified model certificate for bovine semen should be established.

| (4) | It should be clarified that the use of the model animal health certificates laid down in Commission Decision 2004/639/EC of 6 September 2004 laying down the importation conditions of semen of domestic animals of the bovine species (6) is required without prejudice to specific certification requirements based on equivalence agreements between the Community and third countries. Decision 2004/639/EC should be amended accordingly. |
| --- | --- |

(4)

It should be clarified that the use of the model animal health certificates laid down in Commission Decision 2004/639/EC of 6 September 2004 laying down the importation conditions of semen of domestic animals of the bovine species (6) is required without prejudice to specific certification requirements based on equivalence agreements between the Community and third countries. Decision 2004/639/EC should be amended accordingly.

| (5) | Equivalence has been recognised with regard to public health requirements for pig meat but not for animal health requirements. Therefore the simplification based on equivalence of the model certificate for pig meat should only cover public health measures. |
| --- | --- |

(5)

Equivalence has been recognised with regard to public health requirements for pig meat but not for animal health requirements. Therefore the simplification based on equivalence of the model certificate for pig meat should only cover public health measures.

| (6) | Council Directive 93/119/EC of 22 December 1993 on the protection of animals at the time of slaughter or killing (7) provides that the health certificates accompanying meat to be imported from a third country be supplemented by an attestation certifying that animals referred to in that Directive have been slaughtered under conditions which offer guarantees of humane treatment at least equivalent to those provided for in that Directive. That attestation should be included in the model certificate for fresh pig meat set out in this Decision. |
| --- | --- |

(6)

Council Directive 93/119/EC of 22 December 1993 on the protection of animals at the time of slaughter or killing (7) provides that the health certificates accompanying meat to be imported from a third country be supplemented by an attestation certifying that animals referred to in that Directive have been slaughtered under conditions which offer guarantees of humane treatment at least equivalent to those provided for in that Directive. That attestation should be included in the model certificate for fresh pig meat set out in this Decision.

| (7) | The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health, |
| --- | --- |

(7)

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

The Member States shall authorise the importation from Canada of semen of domestic animals of the bovine species conforming to the certification conditions laid down in the model certificate set out in Annex I, and accompanied by such a certificate duly completed and issued before departure of the consignment from Canada.

Article 2

The Member States shall authorise the importation from Canada of fresh meat of domestic swine conforming to the certification conditions laid down in the model certificate set out in Annex II, and accompanied by such a certificate duly completed and issued before departure of the consignment from Canada.

Article 3

In Article 1 of Decision 2004/639/EC, the following paragraph 4 is added:

‘4.   The requirement laid down in paragraph 1 to use the model animal health certificate set out in Annex II, part 1 shall be without prejudice to specific certification requirements and model certificates adopted pursuant to agreements between the Community and third countries following a recognition of equivalence.’

Article 4

For a transitional period not exceeding 90 days from the date of application of this Decision, Member States shall authorise the importation from Canada of semen of domestic animals of the bovine species and fresh meat of domestic swine under model certificates applicable before the date of application of this Decision.

Article 5

This Decision is addressed to the Member States.

Done at Brussels, 4 April 2005.

For the Commission

Markos KYPRIANOU

Member of the Commission

---

(1)  
  OJ L 71, 18.3.1999, p. 1.

1

(2)  
  OJ L 194, 22.7.1988, p. 10. Directive as last amended by Commission Decision 2004/101/EC (OJ L 30, 4.2.2004, p. 15).

2

(3)  
  OJ L 302, 31.12.1972, p. 24. Directive as last amended by Regulation (EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36).

3

(4)  
  OJ L 18, 23.1.2003, p. 11.

4

(5)  
  OJ L 143, 11.6.2003, p. 23.

5

(6)  
  OJ L 292, 15.9.2004, p. 21.

6

(7)  
  OJ L 340, 31.12.1993, p. 21. Directive as amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).

7

---

ANNEX I

Image 1

Health Certificate for Semen of Domestic Animals of The Bovine Species

1. Country of origin: CANADA

2. Health certificate No

and competent authority: Canadian Food Inspection Agency (CFIA)

A. ORIGIN OF SEMEN

3. Approval number of the centre of provenance of the consignment: collection/storage (1)

4. Name and address of centre of provenance of the consignment: collection/storage (1)

5. Name and address of the consignor

6. Country and place of loading

7. Means of transport

B. DESTINATION OF SEMEN

8. Member State of destination

9. Name and address of the consignee

C. IDENTIFICATION OF SEMEN

10. Identification mark of the doses (2)

11. Number of doses

12. Approval number of the collection centre of origin

D. HEALTH INFORMATION

13. I, the undersigned official veterinarian, certify that:

(a) the semen complies with the relevant Canadian health standards and requirements which have been recognised as equivalent to the European Community standards and requirements (3), specifically, in accordance with the Health and Animals Act and subsections (1.5.6) on EBL and (3.6.6) on IBR of section 15.4.1 on the Export Eligible Semen to the European Union of the Artificial Insemination Program (4).

(b) the semen described above was sent to the place of loading in a sealed container bearing the number , under conditions which comply with the relevant Canadian health standards and requirements which have been recognised as equivalent to the European Community standards and requirements (3).

E. VALIDITY

14. Date and place

15. Name and qualification of the official veterinarian

16. Signature and stamp of the official veterinarian

(1) Delete as necessary.

(2) Corresponding to the identification of the donor animals and date of collection.

(3) Council Directive 88/407/EEC as amended by Directive 2003/43/EC.

(4) Version March 2004.

---

ANNEX II

Animal and Public Health Certificate for Fresh Meat of Domestic Swine

1. Consignor (name and address in full)

VETERINARY CERTIFICATE

for fresh meat of domestic swine (1),

consigned to the European Community

No (2) ORIGINAL

3. Origin of the meat

2. Consignee (name and address in full)

3.1. Country: CANADA

3.2. Code of territory: CA

4. Competent authority

Canadian Food Inspection Agency (CFIA)

5. Intended destination of the meat

5.1. EU Member State:

5.2. Name, address of the establishment:

Approval or registration number (where applicable):

6. Place of loading for exportation

7. Means of transport and consignment identification (3)

7.1. (Lorry, Rail-wagon, Ship, or Aircraft) (4)

7.2. Registration number(s), ship name or flight number:

7.3. Consignment identification details (5):

8. Identification of the meat

8.1. Meat from: Domestic Swine

8.2. Temperature conditions of the meat included in this consignment: chilled/frozen (4)

8.3. Individual identification of the meat included in this consignment:

Approval number of the establishments

Nature of cuts (6)

Slaughterhouse

Cutting/Manufacturing

Cold store

Number of packages/pieces

Net weight (kg)

Total

9. Public health attestation

I, the undersigned official veterinarian, hereby certify, that:

9.1. the fresh meat complies with the relevant Canadian public health standards and requirements which have been recognised as equivalent to the European Community standards and requirements (7), specifically, in accordance with the Meat Inspection Act and subsections (2) and (3) of section 11.7.3 on the European Union of Chapter 11 of the Meat Hygiene Manual (8) and is fit for human consumption;

9.2. the fresh meat, or the packages of meat, bear an official health mark attesting that the meat has been wholly dressed and inspected in the establishments indicated under point 8.3 that are approved for exportation to the European Community.

10. Animal health attestation I, the undersigned official veterinarian, hereby certify, that the fresh meat described above:

10.1. has been obtained in the territory with code CA which, at the date of issuing this certificate:

(4) either [(a) has been free for 12 months from foot-and-mouth disease, rinderpest, African swine fever, classical swine fever, swine vesicular disease, and]

(4) or [(a) (i) has been free for 12 months from rinderpest, African swine fever, [foot-and-mouth disease] (4), [classical swine fever] (4) and [swine vesicular disease] (4), and

(ii) has been considered free from [foot-and-mouth disease] (4), [classical swine fever] (4) and [swine vesicular disease] (4), since (date), without having had cases/outbreaks afterwards, and authorised to export this meat by Commission Decision 2005/290/EC, of 4 April 2005, and]

(b) during the last 12 months no vaccination against these diseases have been carried out and imports of domestic animals vaccinated against these diseases are not permitted in this territory;

10.2. has been obtained from animals that:

(4) [have remained in the territory described under point 10.1 since birth, or for at least the last three months before slaughter]

(4) and/or [have been introduced on (date) into the territory of Canada, from the territory with code (9) that, at that date, was authorised to export this fresh meat to the European Community;]

(4) and/or [have been introduced on (date) into the territory described under point 10.1, from the EU Member State ;]

10.3. has been obtained from animals coming from holdings:

(a) in which none of the animals present therein have been vaccinated against the diseases mentioned under point 10.1,

(b) in and around which, in an area of 10 km radius, there has been no case/outbreak of the diseases mentioned under point 10.1 during the previous 40 days,

(c) that are not subject to prohibition as a result of an outbreak of porcine brucellosis during the previous six weeks;

10.4. has been obtained from animals that:

(a) have remained separate since birth from wild cloven-hoofed animals,

(b) have been transported from their holdings to an approved slaughterhouse in cleaned and disinfected vehicles, without contact with other animals which did not comply with the conditions mentioned above,

(c) at the slaughterhouse, have passed ante-mortem health inspection during the 24 hours before slaughter and, in particular, have shown no evidence of the diseases mentioned under point 10.1 above, and

(d) have been slaughtered on or between (10);

10.5. has been obtained in an establishment around which, within a radius of 10 km, there has been no case/outbreak of the diseases mentioned under point 10.1 above during the previous 40 days or, in the event of a case of disease, the preparation of meat for exportation to the European Community has been authorised only after slaughter of all animals present, removal of all meat, and the total cleaning and disinfection of the establishment under the control of an official veterinarian;

10.6. has been obtained and prepared without contact with other meats not complying with the conditions required above.

11. Animal welfare attestation

I, the undersigned official veterinarian, hereby certify, that the fresh meat described above derives from animals which have been treated in the slaughterhouse before and at the time of slaughter or killing under conditions which offer guarantees of humane treatment at least equivalent to the relevant provisions of European Community legislation (11).

Official stamp and signature Done at on

(signature of official veterinarian)

(stamp)

(name in capital letters, qualifications and title)

Notes

(1) Fresh meat means all parts, whether fresh, chilled or frozen, fit for human consumption of domestic swine (Sus scrofa), excluding deep-frozen minced meat.

(2) Issued by CFIA.

(3) The registration number(s) of rail-wagon or lorry and the name of the ship should be given as appropriate. If known, the flight number of the aircraft.

In case of transport in containers or boxes, the total number, their registration and seal numbers, if present, should be indicated under point 7.3.

(4) Keep as appropriate.

(5) Complete if appropriate.

(6) If frozen, indicate the date of freezing (mm/yy) of the cuts/pieces.

(7) The provisions of Council Directive 2002/99/EC (as last amended).

Regarding general hygiene, the provisions of Commission Decision 2002/477/EC (as last amended).

Regarding trichinosis, the provisions of Council Directive 77/96/EEC (as last amended).

(8) Directive No 2005-3.

http://www.inspection.gc.ca/francais/anima/meavia/mmopmmhv/chap11/eu-uef.shtml for the French version http://www.inspection.gc.ca/english/anima/meavia/mmopmmhv/chap11/eu-uee.shtml for the English version

(9) Country and code of territory as appearing in Part 1 of Annex II to Council Decision 79/542/EEC (as last amended).

(10) Date or dates of slaughter. Imports of this meat shall not be allowed when obtained from animals slaughtered either prior to the date of authorisation for exportation to the European Community of the territory mentioned under (3), or during a period where restrictive measures have been adopted by the European Community against imports of this meat from this territory.

(11) Council Directive 93/119/EC (as last amended).

Notes for the completion of the certificate

(a) A separate and unique certificate must be provided for meat which is consigned to the same destination and transported in the same railway wagon, lorry, aircraft or ship.

(b) The original of each certificate shall consist of a single page, both sides, or, where more text is required, it shall be in such a form that all pages needed are part of an integrated whole and indivisible.

(c) It shall be drawn up in the English or French language as well as in one of the official languages of the Member State in which the inspection at the border post shall be carried out and of the EU Member State of destination.

However, these Member States may allow other languages, if necessary, accompanied by an official translation.

(d) If for reasons of identification of the items of the consignment (schedule in point 8.3 of the model of certificate), additional pages are attached to the certificate, these pages shall also be considered as forming part of the original of the certificate by the application of the signature and stamp of the certifying official veterinarian, in each of the pages.

(e) When the certificate, including additional schedules referred to in (d), comprises more than one page, each page shall be numbered — (page number) of (total number of pages) — at the bottom and shall bear the code number of the certificate that has been designated by the competent authority at the top.

(f) The original of the certificate must be completed and signed by an official veterinarian. In doing so, the competent authorities of the exporting country shall ensure that the principles of certification equivalent to those laid down in Council Directive 96/93/EC are followed.

The colour of the signature shall be different to that of the printing. The same rule applies to stamps other than those embossed or watermarked.

(g) The original of the certificate must accompany the consignment at the EU border inspection post.

---

| 12.4.2005 | EN | Official Journal of the European Union | L 93/40 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/40

---

DECISION
  No 1/2005 OF THE COMMITTEE

of 7 March 2005

established under the Agreement between the European Community and the Swiss Confederation on Mutual Recognition in relation to the listing of a Conformity Assessment Body under the Sectoral Chapter on Equipment and protective systems intended for use in potentially explosive atmospheres

(2005/291/EC)

THE COMMITTEE,

Having regard to the Agreement between the European Community and the Swiss Confederation on Mutual Recognition in relation to conformity assessment, and in particular Article 10(4)(a) and 11 thereof,

Whereas the Committee is to take a decision to list a Conformity Assessment Body or Bodies under a Sectoral Chapter of Annex 1 of the Agreement,

HAS DECIDED AS FOLLOWS:

1.   The Conformity Assessment Body in Annex A is added to the list of Swiss Conformity Assessment Bodies under the Sectoral Chapter for Equipment and protective systems intended for use in potentially explosive atmospheres in Annex 1 of the Agreement.

2.   The specific scope of listing, in terms of products and conformity assessment procedures, of the Conformity Assessment Body indicated in Attachment A has been agreed by the Parties and will be maintained by them.

This Decision, done in duplicate, shall be signed by representatives of the Committee who are authorised to act on behalf of the Parties for the purposes of amending the Agreement. This Decision shall be effective from the date of the later of these signatures.

Done at Bern, 2 March 2005.

On behalf of the Swiss Confederation

Heinz HERTIG

Done at Brussels, 16 March 2005.

On behalf of the European Community

Joanna KIOUSSI

---

ANNEX A

Swiss Conformity Assessment Body added to the list of Conformity Assessment Bodies under the Sectoral Chapter for Equipment and protective systems intended for use in potentially explosive atmospheres in Annex 1 of the Agreement

| QS SCHAFFHAUSEN AG |
| --- |
| Wiesengasse, 20 |
| 8222 Beringen |
| Switzerland |
| Tel. (41) 52 687 20 10 |
| Fax (41) 52 682 18 02. |

QS SCHAFFHAUSEN AG

Wiesengasse, 20

8222 Beringen

Switzerland

Tel. (41) 52 687 20 10

Fax (41) 52 682 18 02.

---

| 12.4.2005 | EN | Official Journal of the European Union | L 93/42 |
| --- | --- | --- | --- |

12.4.2005

EN

Official Journal of the European Union

L 93/42

---

COMMISSION RECOMMENDATION

of 6 April 2005

on broadband electronic communications through powerlines

(Text with EEA relevance)

(2005/292/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (the framework Directive) (1), and in particular Article 19(1) thereof,

Whereas:

| (1) | The present Recommendation seeks to ensure transparent, proportionate and non-discriminatory conditions for the deployment of powerline communications systems, and removal of any inappropriate regulatory barriers. Powerline communications systems include both equipment and networks. |
| --- | --- |

(1)

The present Recommendation seeks to ensure transparent, proportionate and non-discriminatory conditions for the deployment of powerline communications systems, and removal of any inappropriate regulatory barriers. Powerline communications systems include both equipment and networks.

| (2) | The EU regulatory framework for electronic communications aims to create conditions for the competitive provision of electronic communications networks and services and ensure that users obtain the maximum benefit in terms of choice, price and quality. National authorities have an objective to promote competition in the provision of electronic communications networks, which include powerline communications networks. They should thus remove any unjustified regulatory obstacles, in particular on utility companies, to deploy and operate electronic communications networks over their powerlines. |
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(2)

The EU regulatory framework for electronic communications aims to create conditions for the competitive provision of electronic communications networks and services and ensure that users obtain the maximum benefit in terms of choice, price and quality. National authorities have an objective to promote competition in the provision of electronic communications networks, which include powerline communications networks. They should thus remove any unjustified regulatory obstacles, in particular on utility companies, to deploy and operate electronic communications networks over their powerlines.

| (3) | Deployment of powerline communication systems is subject only to a general authorisation pursuant to Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (the authorisation Directive) (2). This may include, where appropriate, obligations provided for in Directive 89/336/EEC of the Council of 3 May 1989 on the approximation of laws of the Member States relating to electromagnetic compatibility (the EMC Directive) (3), Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity (the terminal Directive) (4), the Framework Directive, Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users’ rights relating to electronic communication networks and services (the Universal Service Directive) (5) such as for emergency communications and the integrity of the network. With a view to avoiding discrimination, cross-subsidisation and distortion of competition, there may also be obligations on certain undertakings in accordance with Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC (6), to keep separate consolidated accounts for the non-electricity activities, such as powerline communications. |
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(3)

Deployment of powerline communication systems is subject only to a general authorisation pursuant to Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (the authorisation Directive) (2). This may include, where appropriate, obligations provided for in Directive 89/336/EEC of the Council of 3 May 1989 on the approximation of laws of the Member States relating to electromagnetic compatibility (the EMC Directive) (3), Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity (the terminal Directive) (4), the Framework Directive, Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users’ rights relating to electronic communication networks and services (the Universal Service Directive) (5) such as for emergency communications and the integrity of the network. With a view to avoiding discrimination, cross-subsidisation and distortion of competition, there may also be obligations on certain undertakings in accordance with Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC (6), to keep separate consolidated accounts for the non-electricity activities, such as powerline communications.

| (4) | Powerline communication networks are cable networks and as such they are guided media. They do not use radio frequencies for transmission within the meaning of Annex B of the Authorisation Directive or Decision 676/2002/EC of the European Parliament and of the Council of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community (7). |
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(4)

Powerline communication networks are cable networks and as such they are guided media. They do not use radio frequencies for transmission within the meaning of Annex B of the Authorisation Directive or Decision 676/2002/EC of the European Parliament and of the Council of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community (7).

| (5) | Powerline communications systems fall within the scope of the EMC Directive. The term ‘apparatus’ as defined in the EMC Directive means all electrical and electronic appliances together with equipment and installations containing electrical and/or electronic components. Powerline communications systems are considered as fixed installations and can only be put into service if they comply with the Directive. |
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(5)

Powerline communications systems fall within the scope of the EMC Directive. The term ‘apparatus’ as defined in the EMC Directive means all electrical and electronic appliances together with equipment and installations containing electrical and/or electronic components. Powerline communications systems are considered as fixed installations and can only be put into service if they comply with the Directive.

| (6) | In powerline communications systems, the cabling involved may already be in service for other uses, and networks may be subject to constant alteration. These characteristics, together with the specific nature of unwanted radiated emissions along wireline systems, means that is impractical to carry out measurements on a complete system, and an ex-post model for interference management of wireline systems with radio systems is appropriate, in accordance with the EMC Directive. Therefore, a network made up of equipment compliant with the EMC Directive and used for its intended purpose, which is installed and operated according to good engineering practices designed to meet the essential requirements of the EMC Directive, should be considered compliant with the requirements of the EMC Directive. The documented good engineering practices should include targeted in-situ measurements, demonstrating that the objectives of the EMC Directive are met in respect of unwanted radiated emissions, especially in situations where interference is more likely to occur. |
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(6)

In powerline communications systems, the cabling involved may already be in service for other uses, and networks may be subject to constant alteration. These characteristics, together with the specific nature of unwanted radiated emissions along wireline systems, means that is impractical to carry out measurements on a complete system, and an ex-post model for interference management of wireline systems with radio systems is appropriate, in accordance with the EMC Directive. Therefore, a network made up of equipment compliant with the EMC Directive and used for its intended purpose, which is installed and operated according to good engineering practices designed to meet the essential requirements of the EMC Directive, should be considered compliant with the requirements of the EMC Directive. The documented good engineering practices should include targeted in-situ measurements, demonstrating that the objectives of the EMC Directive are met in respect of unwanted radiated emissions, especially in situations where interference is more likely to occur.

| (7) | This approach shall not prevent Member States from taking special measures for safety reasons concerning the putting into service or use of equipment to protect public telecommunication networks or receiving or transmitting stations used for safety purposes in well-defined spectrum situations, in accordance with Article 6 of the EMC Directive. |
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(7)

This approach shall not prevent Member States from taking special measures for safety reasons concerning the putting into service or use of equipment to protect public telecommunication networks or receiving or transmitting stations used for safety purposes in well-defined spectrum situations, in accordance with Article 6 of the EMC Directive.

| (8) | If the interference caused by a powerline communications system can not be resolved by the parties concerned, the competent authorities should request evidence of compliance of the system concerned and, where appropriate, initiate a further assessment. That assessment should include a verification of compliance of the system under the EMC Directive. If non-compliance is identified, the competent authorities should impose proportionate, non-discriminatory and transparent enforcement measures to bring the system into compliance. |
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(8)

If the interference caused by a powerline communications system can not be resolved by the parties concerned, the competent authorities should request evidence of compliance of the system concerned and, where appropriate, initiate a further assessment. That assessment should include a verification of compliance of the system under the EMC Directive. If non-compliance is identified, the competent authorities should impose proportionate, non-discriminatory and transparent enforcement measures to bring the system into compliance.

| (9) | If a system is deemed compliant but is nevertheless creating harmful interference, the competent authorities of the Member States should take special measures according to Article 6 of the EMC Directive, with a view to resolving such interference. Measures taken should be proportionate, non-discriminatory and transparent. In examining the proportionality of measures, Member States should take into account economic and social aspects of the services involved. Member States may also take into account the technical capability of modern powerline communications equipment to allow for a timely resolution of interference problems by reducing emissions at the specific interfering frequencies and places by so-called ‘notching’. |
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(9)

If a system is deemed compliant but is nevertheless creating harmful interference, the competent authorities of the Member States should take special measures according to Article 6 of the EMC Directive, with a view to resolving such interference. Measures taken should be proportionate, non-discriminatory and transparent. In examining the proportionality of measures, Member States should take into account economic and social aspects of the services involved. Member States may also take into account the technical capability of modern powerline communications equipment to allow for a timely resolution of interference problems by reducing emissions at the specific interfering frequencies and places by so-called ‘notching’.

| (10) | In order to achieve a consistent application of either enforcement measures or of special measures under Article 6 of the EMC Directive, the competent authorities should exchange information between themselves and the Commission. |
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(10)

In order to achieve a consistent application of either enforcement measures or of special measures under Article 6 of the EMC Directive, the competent authorities should exchange information between themselves and the Commission.

| (11) | This approach, combined with regular and detailed interference reporting, will allow for further test results and experiences to be gathered on the roll-out of powerline communications networks, in particular in view of the protection of the use of the radio spectrum. The frequency of reporting should be semi annually initially, but may be varied depending on the results obtained. |
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(11)

This approach, combined with regular and detailed interference reporting, will allow for further test results and experiences to be gathered on the roll-out of powerline communications networks, in particular in view of the protection of the use of the radio spectrum. The frequency of reporting should be semi annually initially, but may be varied depending on the results obtained.

| (12) | In 2001 the Commission called upon the European Standardisation Organisations (ESOs) to draft harmonised European standards for wireline networks to include digital subscriber line (DSL), coaxial cable, Ethernet and powerline communications networks (8). However, the work of the ESOs has not yet been completed. In order to facilitate the development of a harmonised European standard for wireline networks and apparatus, national authorities should monitor developments in close cooperation with market players. |
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(12)

In 2001 the Commission called upon the European Standardisation Organisations (ESOs) to draft harmonised European standards for wireline networks to include digital subscriber line (DSL), coaxial cable, Ethernet and powerline communications networks (8). However, the work of the ESOs has not yet been completed. In order to facilitate the development of a harmonised European standard for wireline networks and apparatus, national authorities should monitor developments in close cooperation with market players.

| (13) | The Communications Committee has been consulted in accordance with the procedure referred to in Article 22(2) of the Framework Directive, |
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(13)

The Communications Committee has been consulted in accordance with the procedure referred to in Article 22(2) of the Framework Directive,

HEREBY RECOMMENDS:

| 1. | Member States should apply the following conditions and principles to the provision of publicly available broadband powerline communications systems. |
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1.

| 2. | Without prejudice to the provisions of points 3 to 5, Member States should remove any unjustified regulatory obstacles, in particular from utility companies, on the deployment of broadband powerline communications systems and the provision of electronic communications services over such systems. |
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2.

| 3. | Until standards to be used for gaining presumption of conformity for powerline communications systems have been harmonised under Directive 89/336/EEC, Member States should consider as compliant with that Directive a powerline communications system which is:






  — | made up of equipment compliant with the Directive and used for its intended purpose, |
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3.

—

made up of equipment compliant with the Directive and used for its intended purpose,

| — | installed and operated according to good engineering practices designed to meet the essential requirements of the Directive. |
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—

installed and operated according to good engineering practices designed to meet the essential requirements of the Directive.

The documentation on good engineering practices should be held at the disposal of the relevant national authorities for inspection purposes as long as the system is in operation.

| 4. | Where it is found that a powerline communications system is causing harmful interference that can not be resolved by the parties concerned, the competent authorities of the Member State should request evidence of compliance of the system and, where appropriate, initiate an assessment. |
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4.

| 5. | If the assessment leads to an identification of non-compliance of the powerline communications system, the competent authorities should impose proportionate, non-discriminatory and transparent enforcement measures to ensure compliance. |
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5.

| 6. | If there is compliance of the powerline communications system but nevertheless the interference remains, the competent authorities of the Member State should consider taking special measures in accordance with Article 6 of the Directive 89/336/EEC in a proportionate, non-discriminatory and transparent manner. |
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6.

| 7. | Member States should report to the Communications Committee on a regular basis on the deployment and operations of powerline communications systems in their territory. Such reports should include any relevant data about disturbance levels (including measurement data, related injected signal levels and other data useful for the drafting of a harmonised European standard), interference problems and any enforcement measures related to powerline communications systems. The first such report is due on 31 December 2005. |
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7.

| 8. | This Recommendation is addressed to the Member States. |
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8.

Done at Brussels, 6 April 2005

For the Commission

Viviane REDING

Member of the Commission

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(1)  
  OJ L 108, 24.4.2002, p. 33.

1

(2)  
  OJ L 108, 24.4.2002, p. 21.

2

(3)  
  OJ L 139, 23.5.1989, p. 19. Directive as last amended by Directive 93/68/EEC (OJ L 220, 30.8.1993, p. 1).

3

(4)  
  OJ L 91, 7.4.1999, p. 10. Directive as amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

4

(5)  
  OJ L 108, 24.4.2002, p. 51.

5

(6)  
  OJ L 176, 15.7.2003, p. 37. Directive as amended by Council Directive 2004/85/EC (OJ L 236, 7.7.2004, p. 10).

6

(7)  
  OJ L 108, 24.4.2002, p. 1.

7

(8)  Standardisation mandate addressed to CEN, CENELEC and ETSI concerning electromagnetic compatibility (EMC) on EMC harmonised standards for telecommunications networks, Mandate M/313, 7 August 2001.

8

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Corrigenda

| 12.4.2005 | EN | Official Journal of the European Union | L 93/45 |
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12.4.2005

EN

Official Journal of the European Union

L 93/45

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Corrigendum to Decision No 197 of 23 March 2004 on the transitional periods for the introduction of the European Health Insurance Card in accordance with Article 5 of Decision No 191

(
  Official Journal of the European Union L 343 of 19 November 2004
  )

On page 30, in Annex III, with regard to Iceland:

for:

‘
  31 December 2005
  ’,

read:

‘
  30 April 2005
  ’.

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