Notice of initiation of an interim review of the anti-dumping measures applicable to 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 than hot-rolled, originating, inter alia, in Bulgaria and South Africa

(2001/C 364/05)

The Commission has received a request for an interim review pursuant to Article 11(3) of Commission Decision No 2277/96/ECSC(1), as last amended by Decision No 435/2001/ECSC(2) ("the Basic Decision") of the measures imposed on 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 than hot-rolled originating, inter alia, in Bulgaria and South Africa.

1. Request for review

The request was lodged on 12 November 2001 by Eurofer (European Confederation of Iron and Steel Industries) ("the applicant") 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 than hot-rolled.

2. Product

The product under review 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 Bulgaria and South Africa, 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 given only for information.

3. Existing measures

The measures currently in force are a definitive anti-dumping duty and undertakings imposed by Commission Decision No 283/2000/ECSC(3), as amended by Decision No 2009/2000/ECSC(4).

4. Grounds for the review

The applicant alleges that dumping in respect of Bulgaria and South Africa is alleged to have continued. This allegation 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 both exporting countries concerned.

Furthermore, the applicant alleges that the existing measures are no longer sufficient to counteract the injurious effects of dumping, providing evidence that its current full costs are higher than current resale prices of Bulgarian and South African exports, which continue to be made in significant quantities (the curent levels of the measure are mostly based on injury margins).

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 sufficient evidence exists to justify the initiation of an interim review, the Commission hereby initiates a review in accordance with Article 11(3) of the Basic Decision.

6.1. Procedure for the determination of likelihood of dumping and injury

The investigation will determine the likelihood of continuation or recurrence of dumping and injury and the need for the continuation, removal or amendment of the existing measures.

(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 Bulgaria and South Africa,

- the names and the precise activities of all related companies(5) 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 cooperation 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 Bulgaria and South Africa to any association of exporters/producers, to the sampled importers, to any association of importers named in the request or which cooperated in the investigation leading to the measures subject to the present review, and to the authorities of the exporting countries concerned.

In any event, all parties should contact the Commission forthwith by fax in order to find out whether they are listed in the request and if necessary request a questionnaire within the time limit set in point 7(a)(i), given that the time limit set in point 7(a)(ii) of this notice applies to all 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 must 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 the assesment of Community interest

In accordance with Article 21 of the Basic Decision and in the event that the likelihood of a continuation of dumping and injury is confirmed, a decision will be reached as to whether to maintain, repeal or amend the 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 who did not cooperate in the investigation leading to the measures subject to the present review 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 limit 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 otherwise does not provide the necessary information within the time limits, or significantly impedes the investigation, 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.

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

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

(3) OJ L 31, 5.2.2000, p. 15.

(4) OJ L 240, 23.9.2000, p. 12.

(5) 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).