2001R0299 — EN — 31.01.2003 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No299/2001
of12February2001
imposingadefinitiveanti-dumpingdutyonimportsofpotassiumpermanganateoriginatinginthe
People's RepublicofChina
(OJ L 44, 15.2.2001, p. 4)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 152/2003 of 27 January 2003 L 25 21 30.1.2003
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999
should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) andCouncil Regulation (EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).
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COUNCILREGULATION(EC)No299/2001
of12February2001
imposing a definitive anti-dumping duty on imports of potassium
permanganateoriginatinginthePeople's RepublicofChina
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 384/96 of 22 December
1995 on protection against dumped imports from countries not
Members of the European Community (1), and in particular, Article
11(2) and (6) thereof,
Having regard to the proposal submitted by the Commission, after
consulting the Advisory Committee,
Whereas:
1.PREVIOUSINVESTIGATIONS
1.1.InvestigationsconcerningthePeople'sRepublicofChina
(1)By Regulation (EEC) No 1531/88(2) the Council imposed a
definitive anti-dumping duty on imports of potassium permanga-nate originating in the People's Republic of China (‘China’). Theamount of the duty imposed was equal to either the amount bywhich the free-at-Community-frontier price per kilogram net,
before duty, was less than ECU 2,25, or 20 % of that price,
whichever was higher.
(2)In 1994, following a review under Articles 14(1) and 15(3) ofRegulation (EEC) No 2423/88 (
3), the Council, by Regulation
(EC) No 2819/94(4), imposed a definitive anti-dumping duty on
imports of potassium permanganate originating in China of ECU
1,26 per kg.
1.2.Investigationsconcerningothercountries
(3)An anti-dumping investigation on potassium permanganate
imports originating in India and the Ukraine was initiated inApril 1997. Definitive anti-dumping duties of 5,6 % and 36,2 %respectively were imposed on imports from these countries by
Regulation (EC) No 1507/98 (
5).
2.PRESENTINVESTIGATION
2.1.Requestforreview
(4)In April 1999, the Commission published a notice of impending
expiry (6) of the anti-dumping measures in force on imports of
potassium permanganate originating in China. On 12 July 1999,the Conseil Européen des Fédérations de l'Industrie Chimique(CEFIC) submitted a request to review these measures pursuantto Article 11(2) of Regulation (EC) No 384/96, (‘the basic Regu-lation’).
(5)The request was lodged on behalf of the sole Community
producer, thus representing the totality of Community production
of potassium permanganate. The request was based on thegrounds that the expiry of the measures would be likely to result2001R0299 — EN — 31.01.2003 — 001.001 — 2
(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation No 2238/
2000, (OJ L 257, 11.10.2000, p. 2).
(2) OJ L 138, 3.6.1988, p. 1.
(3) OJ L 209, 2.8.1988, p. 1.
(4) OJ L 298, 19.11.1994, p. 32. Regulation as last amended by Regulation No
1170/95 (OJ L 118, 25.5.1995, p. 6).
(5) OJ L 200, 16.7.1998, p. 4.
(6) OJ C 117, 29.4.1999, p. 3.
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in the continuation or recurrence of dumping and injury to the
Community industry.
2.2.Noticeofinitiation
(6)Having determined, after consultation of the Advisory
Committee, that sufficient evidence existed for the initiation ofa review, the Commission initiated an investigation pursuant toArticle 11(2) of the Basic Regulation (
1).
2.3.Period ofinvestigation
(7)The investigation of a likelihood of a continuation and recur-
rence of dumping covered the period from 1 October 1998 to
30 September 1999 (‘IP’). The examination of trends relevantin the context of the aforementioned recurrence of injurycovered the period from 1995 up to the end of the IP (‘theperiod considered’).
2.4.Parties concernedbytheinvestigation
(8)The applicant Community producer, the exporters and exporting
producers in China, the importers known to be concerned, andthe representatives of the exporting country were officiallyadvised of the initiation of the review. Questionnaires were sentto all these parties and to those who made themselves knownwithin the time limit set in the notice of initiation. In addition,
the cooperating producer in the United States, which was chosen
as an analogue country, was advised and sent a questionnaire.Interested parties were given the opportunity to make their viewsknown in writing.
(9)The applicant Community producer replied to the questionnaire,as well as one importer. In addition, two independent resellersmade their views known in writing.
(10)The producer in the analogue country also replied to the ques-
tionnaire.
(11)With respect to the exporting country, no exporters or exporting
producers cooperated in the investigation.
2.5.Verification ofinformationreceived
(12)All information deemed necessary was sought and verified for
the purpose of deciding the likelihood of a continuation or recur-rence of dumping and injury as well as a determination of the
Community interest. A verification visit was carried out at the
premises of the sole Community producer, Industrial Químicadel Nalón SA-IQN, Oviedo, Spain.
(13)Interested parties were given the opportunity to request ahearing, but no such request was made.
3.PRODUCTUNDERCONSIDERATIONANDLIKEPRODUCT
3.1.Descriptionoftheproductunderconsideration
(14)The product under consideration is the same as in the previous
investigations, i.e. potassium permanganate, which has thechemical formula KMnO
4. Potassium permanganate falls within
CN code 2841 6100, and is a compound of manganese, potas-sium and oxygen whose manufacture requires two basic raw
materials: caustic potash (KOH) and manganese dioxide or pyro-
lusite ore (MnO
2). The product is manufactured in three grades:
technical (97 % to 98 % purity of KMnO4, in the form of crys-
talline powder), free flowing (containing an anti-caking agent)and pharmaceutical (minimum 99 % purity of KMnO
4in the
form of crystals). All grades show the same basic physical (crys-2001R0299 — EN — 31.01.2003 — 001.001 — 3
(1) OJ C 323, 11.11.1999, p. 5.
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talline) and chemical properties. It was therefore concluded that
all grades should be considered as one product for the purpose ofthe investigation.
(15)Potassium permanganate is a strong oxidising agent used forpotable water treatment, for waste water treatment, in the manu-
facture of chemicals and pharmaceuticals, in aqua culture, in
metal refining, for metal surface cleaning, as a disinfectant inagriculture and veterinary practices, for gas purification, processgas deodorisation, for bleaching and special treatments in thetextile industry, in radioactive decontamination, in gas turbinecleaning and for submarine air purification.
3.2.Likeproduct
(16)Potassium permanganate produced and sold on the domestic
market in the US and that exported to the Community fromChina as well as that produced and sold by the Community
industry in the Community market had effectively identical
physical characteristics and uses and were thus like Productswithin the meaning of Article 1(4) of the basic Regulation.
4.CONTINUATIONORRECURRENCEOFDUMPING
4.1.General issues
(17)Eurostat statistics show a very low level of imports of potassium
permanganate from China, of 30 tonnes in 1998 and 23 tonnesduring the IP. However, Chinese export statistics (recital 44)show a much higher volume of 450 tonnes in 1998 and in theprevious year. With regard to this disparity, and in view of the
total lack of cooperation by Chinese exporters or exporting
producers, there is a strong possibility of circumvention of theexisting duties, by declaring the Chinese product as originatingin a number of other countries.
(18)In the context of the continuation of dumping, it was investi-gated whether dumping of exports from the country concernedto the Community was currently taking place. This was on thegrounds that if dumping was taking place now, then it was
reasonable to consider that it would continue in the future.
(19)As to the examination of the likely recurrence of dumping
should the current measures be repealed, it was investigated
both whether future dumping was likely and also whether any
such dumping would take place in significant quantities. Thelikelihood of future dumping was assessed in relation to exportsfrom the country concerned to third countries and the question ofvolume was addressed by examining all relevant market devel-opments, both domestic and export.
(20)As the purpose of this type of review is to assess the likelihoodof dumping should measures be removed, it was not considerednecessary or appropriate to calculate dumping margins or allow-
ances with the precision that would be necessary in an anti-
dumping investigation carried out under Article 5 of the basicRegulation. Nevertheless, the investigation was carried out to alevel of detail which would permit a finding as to whethersignificant dumping had occurred during the investigation
period, irrespective of the precise price level of each export
transaction, costs and allowances claimed or otherwise applied.
(21)It was noted that the US administration recently decided to
maintain their existing anti-dumping measures against imports
of potassium permanganate originating in China. However, itwas not considered necessary or appropriate to draw conclusionsfrom this fact, other than that it renders far less attractive oneimportant market to which some Chinese production capacitycould be redirected (see recital 40).2001R0299 — EN — 31.01.2003 — 001.001 — 4
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4.2.Likelihoodofacontinuationofdumping
4.2.1.Analogue country
(22)In the absence of any cooperation on the part of Chinese expor-
ters, normal value for the exports from China had to beestablished in accordance with Article 2(7)(a) of the basic Regu-
lation, i.e. based on information obtained in a market economy
third country where the product was produced and sold.
(23)In accordance with the Notice of Initiation, the applicant's
suggestion to use the United States as an appropriate analogue
country, as in the previous investigations, was accepted for anumber of reasons:
The US is the largest world market for potassium permanganate
and the second largest producer after China.
The US market is open to imports, which represent around a
10 % share of US consumption.
Potassium permanganate, from all sources, is a relatively homo-
geneous product.
In its major applications, potassium permanganate is subject to
competition from other substitute chemicals.
(24)Other countries (e.g. India, Czech Republic) were considered
less appropriate as reference countries in view of the scale of
production and conditions of competition prevailing in thesemarkets. Also, Indian producers, who were approached as apotential reference country, indicated that they would not beable to cooperate.
(25)Given the cooperation of the US producer, and the absence ofcomments from any other interested parties, the US remainedthe only appropriate and reasonable choice, as had already been
the case in the 1988 and 1994 investigations.
4.2.2.Normal value
(26)Firstly, it was examined whether the domestic sales made by the
cooperating US producer were representative when compared to
the imports into the Community concerned by the investigation.This was considered to be the case as they were made in signifi-cant quantities, measured against the average volume of exportsrecorded as sold into the Community by the exporting producers
in China during the IP.
(27)It was also established that the relevant sales could be consid-
ered as having been made in the ordinary course of trade,
having compared the sales prices and costs of production for
each grade of potassium permanganate sold by the US producer.
(28)Normal value was thus established as the weighted average ofthe prices of all grades of potassium permanganate sold on theUS domestic market in the first quarter of 1999 by the coop-erating US producer. Although the data supplied by the USproducer does not cover the full IP, these prices were in linewith the weighted average sales prices for the years 1997 and
1998 which were also provided and can therefore be considered
representative for the IP.
(29)The figures submitted by the cooperating US producer were alsoverified where possible with other sources. Given the level ofdumping found, and the fact that an exact calculation of theselevels is not required as explained in recital 20, it was consid-ered that the figures need not be further corroborated by an on-site verification.
4.2.3.Export price
(30)As no exporting producers cooperated, the export price was
determined on the basis of the facts available. In this case this2001R0299 — EN — 31.01.2003 — 001.001 — 5
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was by reference to Eurostat, and to information provided by an
importer not related to the Chinese exporters.
(31)According to Eurostat, the weighted average value of importsfrom China on a cif European Community frontier basis, for allgrades of potassium permanganate during the IP was 1 125 EUR/t. This is equivalent to approximately 960 EUR/t on a fobChinese border basis.
(32)Based on evidence provided by the applicant, the average importprice from China on a cif European Community frontier basiswas around 970 EUR/t which is equivalent to approximately810 EUR/t on a fob Chinese border basis.
(33)The only European importer which cooperated in the investiga-tion provided price data which falls within the range of the
above figures.
(34)Chinese export statistics (recital 44) show a unit value of
886 EUR/t for the year of 1998, which is also in line with thesaid price levels.
(35)In summary, information on export prices taken from several
independent sources indicates that the export price ranges from
approximately 800 to 1 000 EUR/t on a fob Chinese borderbasis.
4.3.Comparison
(36)Comparisons were made between export prices on a FOB
Chinese border basis and the United States normal value, whichwas adjusted accordingly by adding the average US inlandfreight from factory to port (fob US border).
4.4.Dumpingmargin
(37)The analysis performed shows that exports to the Community
have been dumped at a substantial margin during the IP. The
dumping margins according to the different sources mentioned
in recitals 30 to 35 range from 108 % to 174 %. These wouldcorrespond to specific duty rates of 1,308 and 1,543 EUR/kgrespectively, a rate higher than the duty of 1,260 EUR/kgcurrently in force.
5.LIKELIHOODOFTHERECURRENCEOFDUMPING
5.1.Likelihoodofrecurrence ofsignificantvolumes
(38)China is the world's largest producer and exporter of potassium
permanganate and currently has a high level of unused produc-tion capacity which has been brought on stream in the last fewyears. This excess capacity is equivalent to 5 or 6 times thevolume of the Community market.
(39)China has the potential to increase its exports to the Communitymarket in very significant volumes, particularly as sales in theChinese domestic market are not expected to increase in theforeseeable future.
(40)Furthermore, in the USA, the world's largest market in terms of
consumption of potassium permanganate, Chinese exports, which
have been subject to anti-dumping duties since 1983, havevirtually ceased. Following a review in 1999, the level of anti-dumping duty in the USA has recently been maintained at128,94 %.
(41)India, another important market, has also imposed a substantialanti-dumping duty (equivalent to 149 EUR/t) on Chinese originimports, since 1995.
(42)These factors, together with relatively stable world consumption,can only increase the attractiveness of the Community market,the largest in the world after the US and China itself.2001R0299 — EN — 31.01.2003 — 001.001 — 6
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5.2.Likelihoodofrecurrence ofdumping
(43)Taking into account all the sources of information available
during the proceeding, it can be seen that Chinese producershave continued to dumpthe p roduct concerned into the Commu-nity market in the period after the present measures were
imposed.
(44)Moreover, Chinese exports to third markets have also consis-tently been at very low and dumped prices, as confirmed by
comparing the Chinese export statistics and the normal valuedeterminations in this case:
Chinese exports of potassium
permanganate1996 1997 1998
World
Quantity (t) 7 924 10176 10396
Unit value (EUR/t) 1 011 984 892
EC
Quantity (t) 222 450 450
Unit value (EUR/t) 843 877 886
Source: Chinese export statistics
(45)In these circumstances there is every reason to believe that any
increased volumes exported from China to the Communitywould be at dumped prices.
5.3.Conclusion
(46)The relatively stable consumption on the world market, the
increase over the past five years of the level of unused capacitiesand the limited access to other key export markets indicate thatthere is a likelihood that the repeal of the current anti-dumpingmeasures against imports of the product concerned from China
would lead to a recurrence of significant volumes of dumped
exports on to the Community market.
(47)In particular, the examination of dumping with regard to sales tothe European Community during the IP and of sales to thirdcountry markets outside the European Community, showed apattern of continued dumping by the Chinese exporters as wellas evidence that any increased volume of exports from Chinawould be at dumped prices.
6.DEFINITIONOFTHECOMMUNITYINDUSTRY
(48)The applicant (CEFIC) acts on behalf of the only Community
producer of the product concerned. This producer (Industrial
Química del Nalón SA-IQN) represents 100 % of potassium
permanganate produced in the Community during the IP andconstitutes, therefore, the ‘Community industry’ pursuant toArticle 4(1) of the basic Regulation.
7.ANALYSIS OF THE SITUATION OF THE COMMUNITY
INDUSTRY
7.1.Consumption
(49)Consumption in the Community was calculated using verified
data of sales provided by the Community industry and import
volumes obtained via Eurostat. Consumption decreased by 18 %during the period 1995 to the end of the IP, although consump-tion in 1995 was unusually high due to a severe drought inSpain. Consumption during the IP was close to that of 1996,following dips during 1997 and 1998.2001R0299 — EN — 31.01.2003 — 001.001 — 7
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7.2.Volume and prices of imports from the country
concerned
(50)Data from Eurostat suggests that imports from China remainedlow throughout the period considered, due to the existence ofanti-dumping measures. However, as outlined in recital 44,export statistics provided by the Chinese Government suggests
much higher exports to the Community of 222 tonnes in 1996
and 450 tonnes in both 1997 and 1998. This represents a marketshare during the IP of 10 %(
1) which is well above de minimis
levels. Even if the Eurostat figures were correct, and the volumeof imports was very low during the IP, this is not relevant in thecontext of an expiry review as the low volume of imports is, at
least in part, attributable to the measures already in force.
(51)Due to the low level of confirmed Chinese origin potassium
permanganate sold on the Community market and the total non-cooperation from the producers/exporters in the country
concerned, it is difficult to make any accurate price comparisons.
However, the data available leads to the conclusion that Chineseprices remain at a level significantly below those of the Commu-nity producer. Eurostat figures show that during the IP, Chinese(duty-free) prices undercut Community producer prices by an
average of 38 %. Similar data for Taiwan shows only slightly
lower undercutting by an average of 33 %.
(52)The price of Chinese origin potassium permanganate is wellbelow both the average market price and the price of the
Community industry. Only in 1997 were prices close to those
of the Community producer, but since then there has been agrowing disparity. Having come into the Community market in1997, Taiwanese prices have consistently undercut the Commu-nity producer by around 25 %. As there is apparently noproduction in Taiwan, there is reasonable cause to suspect that
this product is of Chinese origin.
7.3.Importsfromotherthirdcountries
7.3.1.Volumes and market share
(53)Total imports from other third countries increased by 54 %
between 1995 and the IP, although imports from the Ukraineand India have decreased considerably due to the imposition ofanti-dumping duties against these countries by Regulation (EC)No 1507/98 (
2). Conversely, imports from the USA, the Czech
Republic, and Taiwan have increased markedly. In the case of
the Czech Republic, exports to the Community account for 69 %of its total capacity, estimated at around 1 000 tonnes perannum. Taiwan, who had no exports to the Community until1997 has seen a doubling of volume year on year since then.
7.3.2.Sales prices
(54)The USA and the Czech Republic are the main importers into
the Community against whom no anti-dumping measures arecurrently in place. The US prices are at a level close to, butslightly higher, than those of the Community producer. TheCzech Republic prices are the lowest of all the main exporters
to the Community. However, as explained in recital 53, the
scope for further penetration of the market by Czech exportersis limited and at maximum would only represent a further 5 %increase in market share. There is no evidence that these importsare either causing injury to the Community industry, or that theyare being made at dumped prices.2001R0299 — EN — 31.01.2003 — 001.001 — 8
(1) The figure includes a margin of +/-5 % to protect the confidentiality of the
Community producer.
(2) OJ L 200, 16.7.1998, p. 4.
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7.4.SituationoftheCommunityindustry
7.4.1.Market share and sales volume
(55)The Community industry represents 100 % of Community
production in the IP, as there is only one Community producer
of potassium permanganate. Until 1998, when it went out ofbusiness, there was another Community producer, Chemie AGbased in Germany. However, this company has not been consid-ered in analysing the situation of the Community industry,except for the indicator on employment.
(56)The volume of sales of the Community industry decreased by
21 %, during the period considered, whilst its market share fell
by 2 %. However, consumption dropped by 18 % over the sameperiod, so that the Community industry was able to maintain themajority of its market share in a declining market.
(57)As already indicated in recital 49, 1995 was exceptional due to asevere drought in the south of Spain and the exhaustion of watersupplies. This led directly to an increase in the consumption of
potassium permanganate for the treatment of heavily polluted
river water. As the Community industry was best placed tomeet this exceptional demand, its sales volumes and marketshare were correspondingly improved. A more meaningful andrepresentative analysis would be to take the period from 1996
to the IP. Over this period, whilst both the volume of sales and
the Community industry's market share have increased, there hasbeen a reduction in both indicators during the IP from highs in1997 and 1998.
7.4.2.Production, capacity and capacity utilisation
(58)Capacity utilisation of the Community industry increased by
15 % over the period considered. Capacity utilisation was low
during 1997 due to the high stock levels at the end of 1996
(recital 65). Following the introduction of anti-dumpingmeasures against India and Ukraine in 1998, the capacity utilisa-tion during the IP returned to its 1996 level.
7.4.3.Cost of production
(59)Unit costs per tonne of potassium permanganate increased by 5 %
over the period considered. There was a peak in 1997 explained
by the low production levels that year and the ensuing effect offixed costs on the unit price.
7.4.4.Employment
(60)Whilst the remaining Community producer maintained a stable
employment situation throughout the period considered, it should
be kept in mind that another Community producer completely
shut down operations during the period considered, resulting ina loss of employment.
7.4.5.Production and productivity
(61)Production and productivity increased by 16 % and 21 % respec-
tively over the period considered.
7.4.6.Price development
(62)An analysis of sales prices of the Community industry showed
that sales prices increased by 12 % over the period considered.The largest increase occurred in 1998 when anti-dumpingmeasures were imposed on imports of potassium permanganatefrom India and Ukraine. The unit price has been stable for thelast two years.2001R0299 — EN — 31.01.2003 — 001.001 — 9
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7.4.7.Profits
(63)During the period considered the Community industry showed a
profit during 1995 followed by losses in 1996, 1997 and 1998.The Community industry returned to modest profitability duringthe IP. This is explained by the imposition of anti-dumping
measures against India and the Ukraine in 1998, following which
there was a marked recovery.
7.4.8.Export sales of Community industry
(64)Export sales are mainly directed to USA, Norway and Switzer-
land. Except for a loss in 1995, the Community industry
showed a profit on its export sales between 1996 and the IP.
7.4.9.Development of stocks
(65)Stock levels were high at the end of 1996 due to increased
production but since there was no repetition of the 1995 drought,
they have been progressively reduced.
7.4.10.Conclusions on the situation of the Community industry
(66)Most of the indicators suggest that the situation of the Commu-
nity industry is improving. This is particularly noticeable from
1998 onwards, when anti-dumping measures were imposedagainst India and Ukraine. Over the period considered outputand productivity have increased, prices have risen and the IPsaw a return to modest profitability. The decrease in consump-tion and sales volumes during the period considered should be
seen in the light of the fact that the 1995 base level was inflated
due to a drought in Spain. However, both indicators have shownimprovement during 1997 and 1998, with some fall-off duringthe IP. At the same time, the Community industry has main-tained its market share.
(67)During the period considered, the capacity of the Communityindustry did not change, whilst the utilisation of that capacityincreased. However, the cost of production of potassium perman-
ganate increased.
(68)Taken together, the indicators point to a situation where anti-
dumping measures against China, India, and Ukraine have
allowed the Community industry to compete on a fair footing.
Prices of US exports to the Community market, where there isno suggestion of injurious dumping, are at a level close to thoseof the Community producer, suggesting these prices can beconsidered as those achievable in a fair and open market. Withthe imposition of measures against China, India and Ukraine,
price increases have been possible. This has resulted in profit-
able trading during the IP, the first profitable trading since 1995.
8.LIKELIHOODOFRECURRENCEOFINJURY
8.1.Communityindustry
(69)The situation of the Community industry is outlined in recitals
55 to 68.
8.2.LikelyexportsfromChina
(70)Although limited, there is evidence to show that prices charged
by Chinese exporters, particularly to Chile and Australia, are at
levels that would significantly undercut the Community industry.
The information available from Eurostat and the Chinese autho-rities shows potassium permanganate coming from China to theCommunity significantly undercutting Community industryprices during the IP.
(71)There have been large capacity increases by Chinese manufac-turers. This is against a background of no discernible futureincreases in domestic demand. Whilst China had only a small2001R0299 — EN — 31.01.2003 — 001.001 — 10
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share of the Community market during the IP, its excess capacity
alone could satisfy total Community consumption several timesover.
8.3.Conclusion
(72)It was concluded in recitals 46 and 47 that there was a likelihood
of a return to the dumping in significant quantities of Chinesepotassium permanganate onto the Community market were anti-dumping measure allowed to lapse. The likely volume and pricesof these imports would almost certainly have a profound nega-tive effect on the Community market.
(73)With no ancillary increase in Community demand, the resultwould be to reduce significantly either the market share or theprices of the Community industry. In all probability, both wouldbe affected resulting in a dropin p rofitability and ultimately in a
threat to the future viability of the Community industry. It was
therefore concluded that the removal of anti-dumping measureagainst potassium permanganate from China would be verylikely to cause material injury to the Community industry.
9.COMMUNITYINTEREST
9.1.Introduction
(74)Pursuant to Article 21 of the basic Regulation, it was examined
whether a prolongation of the existing anti-dumping measureswould be against the interest of the Community as a whole.The determination of the Community interest was based on an
appreciation of all the various interests involved.
(75)In order to assess the likely impact of continuation or non-conti-
nuation of the measures, information was requested from allinterested parties mentioned above. Questionnaires were sent to
the Community producer and all known unrelated importers of
potassium permanganate. The Community producer as well asone importer replied to the questionnaire. Two independentresellers of potassium permanganate also made submissions.
(76)It should be recalled that, in the previous investigation, the adop-
tion of measures was considered not to be against the interest of
the Community. Furthermore, it should be noted that the presentinvestigation is a review, thus analysing a situation in whichanti-dumping measures are already in place. Consequently, thisallows the assessment of any undue negative impact the current
anti-dumping measures may have had in the past on the parties
concerned to be taken into account.
(77)On this basis it was examined, whether, despite the conclusionson dumping, on the situation of the Community industry and thelikely continuation and/or recurrence of injurious dumping,
compelling reasons exist which would lead to the conclusion
that it is not in the Community interest to maintain measures inthis particular case.
9.2.InterestsofCommunityindustry
(78)It is considered that without maintaining the anti-dumping
measures established in the previous investigation, injuriousdumping is likely to continue/recur and that the situation of the
Community industry, which is still fragile, will deteriorate. The
Community industry has shown that it is able to compete on theCommunity market against competitors which do not sell atdumped prices. The Community industry has also shown that ithas been able to benefit from the anti-dumping measures in
place.
(79)During the period considered the Community industry showed
that it is able to compete in the Community market, in the USmarket and in other third country markets where fair conditionsprevail. In addition, the Community industry has shown that it is2001R0299 — EN — 31.01.2003 — 001.001 — 11
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viable and indeed capable of benefiting from the anti-dumping
measures in place. Improvements in productivity (recital 61)and capacity utilisation (recital 58), together with a return to
profitability during the IP have shown that, in a market where
measures exist to counteract injurious dumping, it is able tocompete fully and effectively on the Community market.
(80)However, if measures against injurious dumping expire, theCommunity market would be open to large volumes of dumped
imports from China. The situation of the Community industry
would deteriorate to the extent that its viability would be put atrisk, with detrimental effects on employment, consumer choice,etc.
9.3.Interestsofusersandimporters
(81)Only one questionnaire response was received from an importer,
two submissions from independent resellers, and no submissionswere made by end users. The importer made no comments eithersupporting or opposing the continuation of measures, whilst theindependent resellers were in favour of maintaining the existingmeasures.
(82)Given this situation, the implications of an anti-dumping duty onthe overall costs of the users and importers appear to be limited.Other imports which are in competition with the Communityindustry will ensure the maintenance of a high level of competi-tion. Since the new applications for the product include drinking
water and waste purification, and the customers in this case are
not big industries but municipalities or public utilities, stabilityof supply is an important objective. Therefore it is in the interestof the users and, more particularly, the general public that theCommunity industry remains as a reliable supplier of thisproduct and is not forced out of the market. The lack of response
from importers and users suggests that the measures currently in
force have not had a significant impact on their business.
9.4.ConclusiononCommunityinterest
(83)The expiry of measures would have a serious impact on the
economic prospects of the Community industry, whereas impor-
ters would only be affected, if measures were extended, by
continuing marginal increases in costs. After balancing thevarious interests involved, it is considered that maintaining theanti-dumping measures will allow the present situation of faircompetition to continue, by eliminating the injurious effects of
dumping practices. Therefore, there are no compelling reasons
against the continuation of measures.
10.FINALCONCLUSION
(84)It follows that, as provided for by Article 11(2) of the basic
Regulation, the anti-dumping measures currently in force with
regard to imports of potassium permanganate originating in
China should be maintained,
HAS ADOPTED THIS REGULATION:
Article 1
1. A definitive anti-dumping duty is hereby imposed on imports of
potassium permanganate, falling within CN code 2841 61 00, origi-nating in the People's Republic of China.
2. The amount of the duty applicable to the net, free-at-Community-
frontier price, before customs clearance, shall be 1,26 EUR/kg.
3. Unless otherwise specified, the provisions in force concerning
customs duties shall apply.2001R0299 — EN — 31.01.2003 — 001.001 — 12
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4. In cases where goods have been damaged before entry into free
circulation and, therefore, the price actually paid or payable is appor-tioned for the determination of the customs value pursuant to Article
145 of Commission Regulation (EEC) No 2454/93, the amount of the
anti-dumping duty, calculated on the basis of the amounts set above,shall be reduced by a percentage which corresponds to the apportioningof the price actually paid or payable.
Article 2
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.2001R0299 — EN — 31.01.2003 — 001.001 — 13
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