Notice of initiation of an anti-dumping proceeding concerning imports of certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated or coated, in coils, not further worked at than hot-rolled, originating in Egypt, Hungary, Iran, Libya, Slovakia and Turkey

(2001/C 364/04)

The Commission has received a complaint pursuant to Article 5 of Commission Decision No 2277/96/ECSC(1), as last amended by Decision No 435/2001/ECSC(2) ("the Basic Decision"), alleging that imports of certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated or coated, in coils, not further worked at than hot-rolled, originating in Egypt, Hungary, Iran, Libya, Slovakia and Turkey ("countries concerned"), are being dumped and are thereby causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 12 November 2001 by Eurofer (European Confederation of Iron and Steel Industries) ("the complainant") on behalf of producers representing a major proportion, in this case more than 50 %, of the total Community production of certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated or coated, in coils, not further worked at than hot-rolled.

2. Product

The product allegedly being dumped is certain flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated or coated, in coils, not further worked than hot-rolled ("the product concerned"), originating in Egypt, Hungary, Iran, Libya, Slovakia and Turkey currently classifiable within CN codes 7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 10, 7208 37 90, 7208 38 10, 7208 38 90, 7208 39 10 and 7208 39 90. These CN codes are only given for information.

3. Allegation of dumping

The allegation of dumping in respect of Turkey is based on a comparison of normal value established on the basis of domestic prices, with the export prices of the product concerned to the Community.

The allegation of dumping for Egypt, Hungary, Iran, Libya and Slovakia is based on a comparison of a constructed normal value with the export prices of the product concerned to the Community.

On this basis, the dumping margins calculated are significant for all exporting countries concerned.

4. Allegation of injury

The complainant has provided evidence that imports of the product concerned from Egypt, Hungary, Iran, Libya, Slovakia and Turkey have increased overall in absolute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported product concerned have, among other consequences, had a negative impact on the quantities sold and the level of prices charged by the Community industry, resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation of the Community industry.

5. Investigation period

The investigation period for dumping covers the period from 1 January 2001 to 31 December 2001. Article 6(1) of the Basic Decision stipulates that the investigation period should normally end immediately prior to the initiation of the proceeding. However, given the particular circumstances of this case, the Commission considered that it was more appropriate to select an investigation period coinciding with the calendar year 2001. According to the information available to the Commission, the calendar year corresponds to the fiscal year of most Community producers, which facilitates the collection of data and subsequent verifications. Moreover, orders in the Community industry of this sector are normally on a quarterly basis and price fluctuations can be quite significant. For these reasons, and furthermore taking into account that the present investigation is initiated almost at the end of the year 2001, it was considered that the use of data of the calendar year, rather than the 12 months immediately prior to the initiation would lead to more representative and adequate results.

6. Procedure

Having determined, after consulting the Advisory Committee, that the complaint has been lodged by or on behalf of the Community industry and that there is sufficient evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation pursuant to Article 5 of the Basic Decision.

6.1. Procedure for the determination of dumping and injury

The investigation will determine whether the product concerned originating in Egypt, Hungary, Iran, Libya, Slovakia and Turkey is being dumped and whether this dumping has caused injury.

(a) Sampling

In view of the apparent large number of importers involved in this proceeding, the Commission may decide to apply sampling in accordance with Article 17 of the Basic Decision.

(i) Sampling for importers

In order to enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all importers, or representatives acting on their behalf, are hereby requested to make themselves known to the Commission and to provide the following information on their company or companies within the time limit set in point 7(b)(i) of this notice:

- name, address, e-mail address, telephone, and fax, and/or telex numbers and contact person,

- the total turnover in euro of the company during the period 1 January 2001 to 31 December 2001,

- the total number of employees,

- the precise activities of the company with regard to the product concerned,

- the volume in tonnes and value in euro of imports into and resales made in the Community market during the period 1 January 2001 to 31 December 2001 of the imported product concerned originating in Egypt, Hungary, Iran, Libya, Slovakia and Turkey,

- the names and the precise activities of all related companies(3) involved in the production and/or selling of the product concerned,

- any other relevant information that would assist the Commission in the selection of the sample,

- an indication of whether the company or companies agree to their inclusion in the sample, which implies replying to a questionnaire and accepting an on-the-spot investigation of their response.

In order to obtain the information it deems necessary for the selection of the sample of importers, the Commission will, in addition, contact any known associations of importers.

(ii) Final selection of the sample

All interested parties wishing to submit any relevant information regarding the selection of the sample must do so within the time limit set in point 7(b)(i) of this notice.

The Commission intends to make the final selection of the sample after having consulted the parties concerned that have expressed their willingness to be included in the sample.

Companies included in the sample must reply to a questionnaire within the time limit set in point 7(b)(ii) of this notice and must cooperate within the framework of the investigation.

If sufficient co-operation is not forthcoming, the Commission will base its findings, in accordance with Articles 17(4) and 18 of the Basic Decision, on the facts available.

(b) Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the Community industry and to any association of producers in the Community, to the exporters/producers in Egypt, Hungary, Iran, Libya, Slovakia and Turkey to any association of exporters/producers, to the sampled importers, to any association of importers named in the complaint, and to the authorities of the exporting countries concerned.

In any event, all parties should contact the Commission forthwith by fax, but not later than the time limit set out in point 7(a)(i) of this notice, in order to find out whether they are listed in the complaint and, if necessary, request a questionnaire, given that the time limit set in point 7(a)(ii) of this notice applies to all such interested parties.

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views known, submit information other than questionnaire replies and to provide supporting evidence. This information and supporting evidence has to reach the Commission within the time limit set in point 7(a)(ii) of this notice.

Furthermore, the Commission may hear interested parties, provided that they make a request showing that there are particular reasons why they should be heard. This request must be made within the time limit set in point 7(a)(iii) of this notice.

6.2. Procedure for assessment of Community interest

In accordance with Article 21 of the Basic Decision and in the event that the allegations of dumping and injury caused thereby are substantiated, a decision will be reached as to whether the adoption of anti-dumping measures would not be against the Community interest. For this reason the Community industry, importers, their representative associations, representative users and representative consumer organisations, provided that they prove that there is an objective link between their activity and the product concerned, may, within the general time limits set in point 7(a)(ii) of this notice, make themselves known and provide the Commission with information. The parties which have acted in conformity with the precedent sentence may request a hearing setting the particular reasons why they should be heard within the time limit set in point 7(a)(iii) of this notice. It should be noted that any information submitted pursuant to Article 21 will only be taken into account if supported by factual evidence at the time of submission.

7. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All interested parties should request a questionnaire as soon as possible, but not later than 15 days after the publication of this notice in the Official Journal of the European Communities.

(ii) For parties to make themselves known, to submit questionnaire replies and any other information

All interested parties, if their representations are to be taken into account during the investigation, must make themselves known by contacting the Commission, present their views and submit questionnaire replies or any other information within 40 days of the date of publication of this notice in the Official Journal of the European Communities, unless otherwise specified. Attention is drawn to the fact that the exercise of most procedural rights set out in the Basic Decision depends on the party's making itself known within the aforementioned period.

Companies selected in a sample must submit questionnaire replies within the time limits specified in point 7(b)(ii) of this notice.

(iii) Hearings

All interested parties may also apply to be heard by the Commission within the same 40-day time limit.

(b) Specific time limit in respect of sampling

(i) All information relevant for the selection of the sample should reach the Commission within 15 days of the date of publication of this notice in the Official Journal of the European Communities, given that the Commission intends to consult parties concerned that have expressed their willingness to be included therein on the final selection of the sample within a period of 21 days of the publication of this notice in the Official Journal of the European Communities.

(ii) The questionnaire replies from sampled parties must reach the Commission within 37 days from the date of the notification of their inclusion in the sample.

8. Written submissions, questionnaire replies and correspondence

All submissions and requests made by interested parties must be made in writing (not in electronic format, unless otherwise specified), and must indicate the name, address, e-mail address, telephone and fax, and/or telex numbers of the interested party.

Commission address for correspondence: European Commission Directorate-General for Trade

Directorates B and C

TERV - 0/13

Rue de la Loi/Wetstraat 200 B - 1049 Brussels Fax (32-2) 295 65 05 Telex: COMEU B 21877.

9. Non-cooperation

In cases in which any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, provisional or final findings, affirmative or negative, may be made in accordance with Article 18 of the Basic Decision, on the basis of the facts available.

Where it is found that any interested party has supplied false or misleading information, the information shall be disregarded and use may be made of the facts available.

10. Schedule of the investigation

The investigation will be concluded, according to Article 6(9) of the Basic Decision within 15 months of the date of the publication of this notice in the Official Journal of the European Communities. According to Article 7(1) of the Basic Decision, provisional measures may be imposed no later than nine months from the publication of this notice in the Official Journal of the European Communities.

(1) OJ L 308, 29.11.1996, p. 11.

(2) OJ L 63, 3.3.2001, p. 14.

(3) For guidance on the meaning of related companies, please refer to Article 143(1) of Commission Regulation (EEC) No 2454/93 concerning the implementation of the Community Customs Code (OJ L 253, 11.10.1993, p. 1).