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"B COUNCIL REGULATION (EC) No 763/2000
of 10 April 2000
extending the definitive anti-dumping duty, imposed by Regulation (EC) No 584/96 on imports of certain tube and pipe
fittings, of iron or steel, originating in the People’s Republic of China to imports of certain tube and pipe fittings, of iron
or steel, consigned from Taiwan, whether declared as originating in Taiwan or not, and terminating the investigation in
respect of imports from three Taiwanese exporters
(OJ L 94, 14.4.2000, p. 1)
Amended by:
Official Journal
No page date
"M1 Council Regulation (EC) No 2314/2000 of 17 October 2000 L 267 15 20.10.20002000R0763 — EN — 15.04.2000 — 000.001 — 1
COUNCIL REGULATION (EC) No 763/2000
of 10 April 2000
extending the definitive anti-dumping duty, imposed by Regulation (EC)
No 584/96 on imports of certain tube and pipe fittings, of iron or steel,
originating in the People’s Republic of China to imports of certain tube
and pipe fittings, of iron or steel, consigned from Taiwan, whether
declared as originating in Taiwan or not, and terminating the
investigation in respect of imports from three Taiwanese exporters
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 384/96 of 22 December 1995
on protection against dumped imports from countries not members of theEuropean Community (
1), and in particular Article 13 thereof,
Having regard to the proposal submitted by the Commission after consulting
the Advisory Committee,
Whereas:
A. PROCEDURE
1.Existing measures
(1) By Regulation (EC) No 584/96 (2) (hereinafter referred to as ‘the
definitive Regulation’) the Council imposed an anti-dumping duty of58,6 % on imports of tube and pipe fittings, of iron or steel,(hereinafter referred to as ‘fittings’) originating in the People’ s
Republic of China (hereinafter referred to as ‘the PRC’).
2.Request
(2) On 10 June 1999, the Commission received a request, pursuant to
Article 13(3) of Regulation (EC) No 384/96 (hereinafter referred to as
‘the Basic Regulation’), from the Defence Committee of the EC steel
butt-welding fittings industry. This request was submitted on behalf ofCommunity producers of fittings, whose collective output is known to
represent about 90 % of the total Community production of fittings.
(3) The request alleged the existence of circumvention of the anti-dump-
ing duties imposed by the definitive Regulation on imports of fittingsoriginating in the PRC. According to the request, the circumventionpractice consisted of transhipment of fittings originating in the PRC
via Taiwan to the Community.
3.Initiation
(4) By Regulation (EC) No 1683/1999 (
3) the Commission initiated an
investigation and directed, pursuant to Articles 13(3) and 14(5) of the
Basic Regulation, the customs authorities to register imports of fittings
consigned from Taiwan as of 31 July 1999. The Commission advisedthe authorities of the PRC and Taiwan of the initiation of the
investigation.
4.Investigation period
(5) The investigation covered the period from 1 July 1998 to 30 June 1999
(hereinafter referred to as the ‘IP’).
5.Collection of data from interested parties
(6) Questionnaires were sent to Community importers as well as exporters
located in the PRC and Taiwan which were mentioned in the request,exporters known from the original investigation and other interested!B
(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 905/98
(OJ L 128, 30.4.1998, p.18).
(2) OJ L 84, 3.4.1996, p. 1.
(3) OJ L 199, 30.7.1999, p. 26.2000R0763 — EN — 15.04.2000 — 000.001 — 2
parties who came forward within the prescribed time limit. Replies to
the questionnaires were received from six unrelated importers andthree Taiwanese exporters. The Commission carried out verificationvisits at the premises of the following companies:
Unrelated importer:
— Tubos y Calibrados de Cataluña SA, Barcelona, Spain.Taiwanese exporters:
— Nian Hong Pipe Fittings Co., Ltd, Kaohsiung, Taiwan
— Rigid Industries Co., Ltd, Kaohsiung, Taiwan— Chup Hsin Enterprise Co. Ltd, Kaohsiung, Taiwan.
B. RESULTS OF THE INVESTIGATION
1.General considerations/degree of cooperation
(7) The request of the Community industry alleged that there has been a
change in the pattern of trade following the imposition of anti-dump-
ing duties on imports of fittings into the Community from the PRCthrough an increase of Taiwanese exports. The Community industryalso alleged that the remedial effects of the anti-dumping duty on
imports from the PRC have been undermined both in terms of
quantities and prices and that there is evidence of dumping in relationwith the normal value established in the previous investigation.
(8) The purpose of the investigation was to examine whether anti-dumping
measures on imports of fittings originating in the PRC were beingcircumvented by imports of the same product originating in thiscountry and transhipped, without undergoing substantial trans-
formation, through Taiwan in accordance with Article 13(1), second
sentence of the Basic Regulation.
(9) No cooperation was received from producers or exporters of fittings in
the PRC. However, information was obtained from three cooperating
exporters in Taiwan, which produced and purchased fittings and
exported them to the Community during the IP . Together, these threeTaiwanese exporters accounted for 19,66 % in volume and 16,42 % in
value of the total imports of fittings from Taiwan to the Community
during the IP as reported by Eurostat at TARIC level.
2.Product under consideration and like product
(10) The product under consideration is as defined in the original
investigation, which is tube and pipe fittings (other than cast fittings),
of iron or steel, (not including stainless steel), with a greatest external
diameter not exceeding 609,6 mm, of a kind used for butt-welding orother purposes, currently classifiable within CN codes ex 7307 93 11(TARIC code 7307 93 11 90), ex 7307 93 19 (TARIC code
7307 93 19 90), ex 7307 99 30 (TARIC code 7307 99 30 91) and
ex 7307 99 90 (TARIC code 7307 99 90 91).
(11) The investigation showed that the fittings exported to the Community
from the PRC and those consigned from Taiwan to the Community
have the same basic physical and chemical characteristics and have the
same uses, and are therefore to be considered as like products withinthe meaning of Article 1(4) of the Basic Regulation.
3.Change in the pattern of trade
a)Cooperating Taiwanese exporters
(12) Exports to the Community made by cooperating exporters in Taiwan
increased by 300 % from 1994 to the IP at the same time as the
imposition of measures on Chinese fittings. The existence of a changein the pattern of trade was therefore established in their respect.
b)Non-cooperating Taiwanese exporters
(13) As far as the non-cooperating exporters axe concerned the Commis-
sion had to establish the exports to the Community on the basis of facts
available pursuant to Article 18 of the Basic Regulation. Findings in!B2000R0763 — EN — 15.04.2000 — 000.001 — 3
respect of exports to the Community following the imposition of
measures were based on Eurostat data at TARIC level. Due accountwas taken, in the case of Taiwan, of the exports of the cooperatingexporters. Findings in respect of the exports of the product concerned
from the same countries in 1994 and 1995 were based on adjusted
Eurostat data at CN level.
(14) Imports into the Community of fittings from the PRC have decreased
substantially from 2 741 tonnes in 1994 to 95 tonnes in 1998,
following the imposition of anti-dumping measures. At the same time,
imports of fittings from Taiwan increased from 221 tonnes in 1994 to3 745 in 1998, reaching a peak of 4 918 tonnes in 1997.
(15) The marked switch from imports from the PRC to those from Taiwan
coincided with the entry into force of anti-dumping measures on PRC
fittings at the end of 1995.
4.Insufficient due cause or economic justification
a)Cooperating Taiwanese exporters
(16) Niang Hong Pipe Fittings Co. Ltd is a manufacturer and exporter of
fittings based in Kaohsiung, operating production facilities for the
complete production process of some types of fittings. It only sells its
own production a part of which is exported to the Community byanother company, Chup Hsin.
(17) Rigid Industries Co. Ltd is, like Niang H ong, an integrated
producer/exporter of fittings and also based in Kaohsiung. It only
exports its own production of the product concerned to the Community
and has exported limited quantities during the IP .
(18) Chup Hsin Enterprises Co. Ltd is also an integrated producer/exporter
of fittings and also based in Kaohsiung. This company completes its
range of manufactured products for the export market with fittings
purchased from other local Taiwanese manufacturers, including NiangHong, and from one Japanese producer.
(19) Given that none of the three companies purchased fittings from the
PRC the change in the pattern of trade can be considered as having a
due cause. Consequently the investigation with regard to these
companies should be terminated.
b)Non-cooperating Taiwanese exporters
(20) In the absence of cooperation, and given that the abovementioned
substitution of imports from the PRC for imports from Taiwan tookplace immediately following the imposition of anti-dumping duties, it
has to be concluded that the change in the pattern of trade stemmed
from the imposition of the duty rather than from any other sufficientdue cause or economic justification within the meaning of Article13(1), second sentence of the Basic Regulation.
(21) Furthermore, in the absence of any reasonable economic justification,
other than the imposition of the duty, for the change in the pattern of
trade it may reasonably be concluded that transhipment of PRC fittingsvia Taiwan to the Community has taken place.
(22) This conclusion is reinforced by the following: imports from the PRC
into Taiwan of one of the two categories of CN codes (7307 93)
covering the product concerned are subject to a Taiwanese importregulation named MWO, which according to Taiwan’ s customs lawmeans that imports are prohibited. However, Taiwanese custom
statistics recorded imports under that particular code amounting to
3 700 tonnes from the PRC only for 1998.
(23) The investigation has moreover established, on the basis of evidence
provided by the Taiwanese cooperating exporters, that it is possible to
import goods from a third country into Taiwan and re-export them
under a Taiwanese certificate of origin without undergoing anysubstantial transformation.!B2000R0763 — EN — 15.04.2000 — 000.001 — 4
5.Undermining of the remedial effects of the duty in terms of the
prices and/or quantities of the like products (non-cooperatingTaiwanese exporters)
(24) It is evident from the figures in recital 14 that a clear quantitative
change in the pattern of Community imports occurred since the
imposition of measures, and that this marked change in trade flows
undermined the remedial effects of these in terms of the quantitiesimported into the Community market. Indeed, the exports of Chinese
fittings, estimated at 2 741 tonnes in 1994 prior to the imposition of
measures, were replaced and even exceeded by exports of thenon-cooperating Taiwanese exporters (accounting for 3 745 tonnesduring the IP).
(25) Given the extremely low degree of cooperation, the large scale
undermining of the effects of the measures in terms of quantities and
that the Basic Regulation requires that undermining of the remedial
effect of the duty be established in terms of either quantities or prices,it was found unnecessary to further investigate undermining in terms
of prices.
6.Evidence of dumping in relation to the normal values
previously established for like or similar products (non-cooperating Taiwanese exporters)
(26) In order to determine whether evidence of dumping could be found
with respect to the fittings exported to the Community from Taiwan by
the non-cooperating exporters during the IP , two approaches werefollowed, pursuant to Article 18 of the Basic Regulation. It is recalledthat the Basic Regulation requires the establishment of evidence of
dumping in relation to the normal values established in the original
investigation, but that it does not require a new dumping margin to beestablished.
a)Approach based on export data reported by Eurostat
(27) In this first approach the export price was established on the basis of
total export value and tonnes reported by Eurostat at TARIC level from
which the quantities and values exported by the cooperating Taiwanesecompanies were deducted.
(28) In accordance with Article 13(1) of the Basic Regulation, the normal
value to be used in an anti-circumvention investigation is the normal
value established during the original investigation. At that time,
Thailand was found to be an appropriate analogue market economythird country for the PRC, that was considered to be a non-marketeconomy country.
(29) In the original investigation, normal value was determined per type of
fitting. In the current anti-circumvention investigation, for the
comparison with the export prices determined on the basis of Eurostatdata, and given that Eurostat does not provide export price data pertype of fitting but only per tonne and per TARIC code, the
Commission estimated, pursuant to Article 18 of the Basic Regulation,
that the product mix of the non-cooperating Taiwanese producerscould reasonably be assessed on the basis of the product mix of exportsales to the Community made by the three cooperating Taiwanese
exporters. Consequently, the normal value per type as determined in
the original investigation was weighted on the basis of the afore-mentioned product mix of these cooperating Taiwanese exporters.
Thus, a weighted average normal value per tonne was established.
(30) For the purpose of a fair comparison between the normal value and the
export price, due allowance in the form of adjustments was made for
differences which affect prices and price comparability. Theseadjustments were made in accordance with Article 2(10) of the BasicRegulation in respect of transport, insurance and commissions. As the
functions of the companies that transhipped the product concerned
through Taiwan to the Community can be considered similar to thoseof a trader acting on a commission basis, an adjustment of 6 %considered as a reasonable estimate for selling general and adminis-
trative expenses and profit was deducted from the export price as
determined above.!B2000R0763 — EN — 15.04.2000 — 000.001 — 5
b)Approach based on cooperating importers’ data
(31) On this second approach the export price was established on the basis
of the limited information on import prices by type of fittingssubmitted by the cooperating importers, representing around 14 % ofthe imports of fittings from Taiwan in terms of volume, in respect of
their purchases from non-cooperating Taiwanese exporters.
(32) As explained in recital 28, the normal value to be used in an
anti-circumvention investigation is the normal value established duringthe original investigation. In the original investigation, normal valuewas determined per type of fitting. These normal values were thus
directly compared with the individual export price per type of fitting
established on the basis of the information submitted by thecooperating importers.
(33) For the purpose of a fair comparison between the normal value and the
export price, the methodology explained in recital 30 was used.
c)Conclusion
(34) In accordance with Article 2(11) and (12) of the Basic Regulation, the
comparison of weighted average normal values with weighted average
export prices expressed as a percentage of the cif Community frontierprice, revealed, when following either methodology explained in
recitals 27 to 33, a significant level of dumping.
C. REQUESTS FOR EXEMPTION FROM THE EXTENSION
OF THE DUTY
(35) The Commission received requests for exemption from the extension
of the duty from eight importers. Given that the definitive anti-dump-
ing duty on imports of fittings originating in the PRC will not be
extended to fittings produced and exported by the Taiwanese exportersthat did not circumvent these measures, it was considered that noexemption should be granted at this stage.
D. MEASURES
(36) In view of the above finding of circumvention within the meaning of
Article 13(1), second sentence of the Basic Regulation, the existinganti-dumping measures on fittings originating in PRC should beextended to the same product consigned from Taiwan, whether the
product is declared as originating in Taiwan or not, with the exception
of products manufactured by the three cooperating exporters, pursuantto Article 13(1), first sentence of the Basic Regulation.
(37) In accordance with Article 14(5) of the Basic Regulation, which
provides that measures may be applied against registered imports from
the date of registration, the anti-dumping duty on imports of fittings
consigned from Taiwan which entered the Community under regis-tration imposed by the Commission Regulation initiating thisinvestigation, with the exception of those fittings exported by the
three cooperating exporters, should be collected.
(38) Companies requesting an exemption pursuant to Article 13(4) of the
Basic Regulation will normally be required to complete a ques-
tionnaire in order to enable the Commission to determine whether anexemption may be warranted and the Commission would normally also
carry out an on-the-spot verification visit.
(39) The non-extension of the duties to the three individual Taiwanese
companies specified in this Regulation was established on the basis of
the findings of the present investigation. Therefore, it reflects thesituation found during that investigation with respect to thesecompanies. The non-extension is thus exclusively applicable to
imports of products produced and consigned by these specific legal
entities mentioned. Imported products produced or consigned by anyother company not specifically mentioned in the operative part of thisRegulation with its name and address including entities related to those
specifically mentioned, cannot benefit from the exception and should
be subject to the duty rate imposed by the definitive Regulation.!B2000R0763 — EN — 15.04.2000 — 000.001 — 6
(40) Any claim requesting the application of this exception would have to
be addressed to the Commission forthwith with all relevantinformation, in particular any modification in the company’ s activitieslinked to production and export sales. The Commission, if appropriate,
would, after consultation of the Advisory Committee, amend the
Regulation accordingly by updating the list of companies benefitingfrom the exception.
E.PROCEDURE
(41) Interested parties were informed of the essential facts and consider-
ations on the basis of which the Commission intended to propose the
extension of the definitive anti-dumping duty in force and were given
the opportunity to comment,
HAS ADOPTED THIS REGULATION:
Article 1
1. The definitve anti-dumping duty imposed by Regulation (EC) No 584/96
on imports of certain tube and pipe fittings of iron and steel falling within CN
codes ex 7307 93 11 (TARIC code 7307 93 11 90), ex 7307 93 19 (TARICcode 7307 93 19 90), ex 7307 99 30 (TARIC code 7307 99 30 91) andex 7307 99 90 (TARIC code 7307 99 90 91) originating in the People’s
Republic of China, is hereby extended to imports of the same fittings
consigned from Taiwan (whether these fittings are declared as originating inTaiwan or not) (TARIC additional code A 999), with the exception of thoseproduced by Chup Hsin Enterprise Co. Ltd, Kaohsiung (Taiwan) (TARIC
additional code A 098), Rigid Industries Co. Ltd, Kaohsiung (Taiwan)
(TARIC additional code A 099) and Niang Hong Pipe Fittings Co. Ltd,Kaohsiung (Taiwan) (TARIC additional code A 100).
2. The duty extended by paragraph 1 shall be collected on imports registered
in accordance with Article 2 of Regulation (EC) No 1683/1999 and Articles
13(3) and 14(5) of Regulation (EC) No 384/96, with the exception of thoseproduced by the companies referred to in paragraph 1.
3. The TARIC codes to be declared for the products originating and/or
consigned from Taiwan are: 7307 93 11 91, 7307 93 19 91, 7307 99 30 92
and 7307 99 90 92.
4. The provisions in force concerning customs duties shall apply.
Article 2
1. Requests for exemption from the duty extended by Article 1 shall be
made in writing in one of the official languages of the Community and mustbe signed by a person authorised to represent the applicant. The request mustbe sent to the following address:
European Commission
Directorate-General for Trade
Unit C-3
Rue de la Loi/Wetstraat 200B-1049 BrusselsFax (32-2) 295 65 05
2. The Commission, after consulting the Advisory Committee, shall
authorise, by decision, the exemption of imports which do not circumvent
the anti-dumping duty imposed by Regulation (EC) No 584/96 from the duty
extended by Article 1.
Article 3
Customs authorities are hereby directed to discontinue the registration of
imports, established in accordance with Article 2 of Regulation (EC) No
1683/1999.!B
!M1
!B2000R0763 — EN — 15.04.2000 — 000.001 — 7
Article 4
This Regulation shall enter into force on the day following that of its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States.!B2000R0763 — EN — 15.04.2000 — 000.001 — 8