Notice of initiation of an anti-dumping proceeding concerning imports of certain iron or steel ropes and cables originating in the Czech Republic, the Republic of Korea, Malaysia, Russia, Thailand and Turkey

(2000/C 127/04)

The Commission has received a complaint pursuant to Article 5 of Council Regulation (EC) No 384/96, as last amended by Council Regulation (EC) No 905/98 (hereinafter referred to as "the Basic Regulation"), alleging that imports of certain steel ropes and cables, originating in the Czech Republic, the Republic of Korea, Malaysia, Russia, Thailand and Turkey, are being dumped and are thereby causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 23 March 2000 by the Liaison Committee of European Union Wire Rope Industries (EWRIS) (hereinafter referred to as "the complainant") on behalf of producers representing a major proportion, i.e. more than 76 % of the total Community production of the steel ropes and cables subject of the complaint.

2. Product

The product allegedly being dumped is ropes and cables, including locked coil ropes, of iron or steel but not stainless steel, with a maximum cross-sectional dimension exceeding 3 mm, with attached fittings or not (hereinafter referred to as "the product concerned"). The product concerned is currently classifiable within CN codes 7312 10 82, 7312 10 84, 7312 10 86, 7312 10 88 and 7312 10 99. These CN codes are only given for information.

3. Allegation of dumping

The allegation of dumping in respect of the Czech Republic and the Republic of Korea is based on a comparison of normal value, estabished on the basis of domestic prices, with the export prices of the product concerned to the Community.

The allegation of dumping for Malaysia, Thailand and Turkey is based, in the absence of evidence on domestic sales, on a comparison of a constructed normal value with the export prices of the product concerned to the Community.

In view of the fact that normal value for Russia, will be determined on the basis of the rules set out in Article 2(7) of the Basic Regulation, the complainant has proposed that normal value be established on the basis of the price in a market economy third country, the Czech Republic.

The allegation of dumping is based on a comparison of normal values, as set out above, with the export prices of the product concerned when sold for export to the Community.

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

4. Allegation of injury

The complainant has provided evidence that imports of the product concerned from the Czech Republic, Malaysia, Russia, the Republic of Korea, Thailand 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 market share and the quantities sold by the Community producers, resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation ot the Community industry.

5. Procedure for the determination of dumping and injury

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 Regulation.

In view of the apparent size and complexity of this proceeding, the Commission may apply sampling techniques, in accordance with Article 17 of the Basic Regulation.

(a) Sampling for investigation of injury

In view of the large number of Community producers supporting the complaint and in accordance with Article 17 of the Basic Regulation, the Commission intends to investigate injury to the Community industry by applying sampling.

In order to obtain the information necessary for the selection of the sample of Community producers, all Community producers supporting the complaint are hereby requested to provide the following information within 15 days of publication of the present notice:

- name, address, e-mail address, telephone, fax and/or telex numbers, contact person and the precise activity of the company with regard to the production of the product concerned,

- the total turnover of the company during 1999,

- the turnover and amount in kilograms of the product concerned sold in the Community during 1999,

- the amount in kilograms of the production of the product concerned during 1999,

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

- an indication of whether the companies agree to their inclusion in the sample which involves replying to a questionnaire and accepting an on-the-spot investigation at their premises.

(b) Sampling for investigation of dumping in respect of the Republic of Korea

In order to enable the Commission to decide whether sampling is necessary in respect of the exporting producers in the Republic of Korea and, if so, to select a sample, all exporting producers in the Republic of Korea, or representatives acting on their behalf, are hereby requested to make themselves known by contacting the Commission and by providing the following information on their company or companies within 15 days of publication of the present notice:

- name, address, e-mail address, telephone, fax and/or telex numbers, contact person, and the precise activities of the company with regard to the production of the product concerned,

- the turnover in local currency and the amount in kilograms of the products concerned sold for export tot the Community during 1999,

- the names and the precise activities of all related companies, whether directly or indirectly related (i.e. companies with which they have an association or a compensatory arrangement), involved in the production and/or sale (export and/or domestic) of the product concerned.

- the turnover in local currency and the sales volume in kilograms for the product concerned on the domestic market during 1999,

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

- an indication of whether the companies agree to their inclusion in the sample which involves replying to a questionnaire and accepting an on-the-spot investigation at their premises.

In order to obtain the information it deems necessary for the selection of the sample of exporting producers, the Commission will in addition contact the authorities of the exporting country, known exporters and any known association of exporters.

(c) Sampling in respect of importers

The Commission may also decide to select a sample of importers. To that effect, all importers concerned are hereby requested to make themselves known by contacting the Commission within 15 days of the date of publication of the present notice.

(d) Final selection of samples

Any other party concerned which wishes to submit any relevant information regarding the selection of the sample is also requested to make itself known by contacting the Commission and to submit the information within 15 days of the date of publication of the present notice.

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

Companies included in the samples must reply to a questionnaire and cooperate within the framework of the verification visit.

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

(e) Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to importers and any association of importers named in the complaint, to exporting producers, exporting traders and any association of exporting producers and exporting traders in the Czech Republic, Malaysia, Russia, Thailand and Turkey named in the complaint; and to the authorities of all countries concerned.

All exporting producers in the Czech Republic, Malaysia, Russia, Thailand and Turkey and importers are invited to contact the Commission forthwith in order to find out whether or not they are listed in the complaint. In the latter case, they should as soon as possible, but not later than 15 days after publication of this notice in the Official Journal of the European Communities, request a copy of the questionnaire, as all questionnaires have to be completed and reach the Commission within the time limit set in paragraph 7(a) of this notice.

Questionnaires will be sent to the sampled Community producers supporting the complaint and the sampled exporting producers in the Republic of Korea once the final selection of the samples has been made.

Exporting producers in the Republic of Korea which submit a request for an individual treatment, with a view to the application of Articles 17(3) and 9(6) of the Basic Regulation, have to submit a request for aquestionnaire within the aforementioned period of 15 days, since for these questionnaire replies the time limit of paragraph 7(a) of this notice applies as well. However, such parties should be aware that if sampling is applied to exporting producers the Commission may decide not to grant them an individual treatment if it would be unduly burdensome and would prevent the timely completion of the investigation.

Any request for questionnaires must be made in writing to the address mentioned below and should indicate the name, address, e-mail address, telephone, and fax, and/or telex numbers of the interested party.

(f) Collection of information and holding of hearings

All interested parties are hereby invited to make their views known in writing and to provide supporting evidence. This information has to reach the Commission in hard copy form within the time limit set in paragraph 7(a) of this notice.

Furthermore, the Commission may hear interested parties, provided that they make a request in writing and show that there are particular reasons why they should be heard.

(g) Selection of the market economy third country

In accordance with Article 2(7)(a) of the Basic Regulation, it is envisaged to choose the Czech Republic or Brazil as an appropriate market economy third country for the purpose of establishing normal value in respect of Russia. Interested parties are hereby invited to comment on the appropriateness of this choice within the specific time limit set in paragrah 7(c) of this notice.

(h) Market economy status

For those exporting producers in Russia which claim and provide sufficient evidence that they operate under market economy conditions, i.e. that they meet the criteria laid down in Article 2(7)(c) of the Basic Regulation, normal value will be determined in accordance with Article 2(7)(b) of the Basic Regulation. The Commission will send claim forms to all known exporting producers in Russia and to the Russian authorities.

6. Community interest

In accordance with Article 21 of the Basic Regulation and in order that a decision may be reached as to whether, in the event that the allegations of dumping and injury caused thereby are substantiated, the adoption of anti-dumping measures would be in the Community interest, 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 paragraph 7(a) of this notice, make themselves known and provide the Commission with information. It should be noted that any information submitted pursuant to this Article will only be taken into account if supported by factual evidence at the time of submission.

7. Time limits

(a) General time limit

Interested parties, if their representations are to be taken into account during the investigation, must make themselves known to the Commission, present their views in writing and submit information, unless otherwise specified, within 40 days of the date of publication of this notice in the Official Journal of the European Communities. Interested parties may also apply to be heard by the Commission within the same time limit. This time limit applies to all interested parties, including parties not named in the complaint, and it is consequently in the interest of these parties to contact the Commission without delay.

(b) Specific time limit in respect of sampling

All information relevant for the selection of the samples should be submitted to the Commission within 15 days of the date of publication of this notice, given that the Commission intends to consult parties concerned that have expressed their willingness to be included therein on the final selection of the samples wihin a period of 21 days of the publication of this notice.

(c) Specific time limit for the selection of the market economy third country

Parties to the investigation wishing to commet on the appropriateness of the Czech Republic or Brazil which, as mentioned in paragraph 5(f) of this notice, are envisaged as a market economy third country for the purpose of establishing normal value in respect of Russia, shall file their comments within 10 days of the date of publication of this notice.

(d) Specific time limit for submission of claims for market economy status

Duly substantiated claims for market economy status, as mentioned in paragraph 5(g) of this notice, must reach the Commission within 21 days of the date of publication of this notice in the Official Journal of the European Communities.

(e) Commission address for correspondence:

European Commission Trade Directorate-General

Directorates C and E

DM 24 - 8/37

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

8. 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 Regulation, 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.