Notice of extension of the time limit of safeguard investigations concerning imports of certain steel products

(2002/C 308/08)

1. Background

On 28 March 2002, the Commission initiated an investigation relating to serious injury or threat thereof to the Community producers of products like or directly competing with certain imported steel products. The 21 steel products covered by the investigation were (1) non-alloy hot-rolled coils, (2) non-alloy hot-rolled sheets and plates, (3) non-alloy hot-rolled narrow strip, (4) alloy hot-rolled flat products, (5) cold-rolled sheets, (6) electrical sheets (other than GOES), (7) metallic coated sheets, (8) organic coated sheets, (9) tin mill products, (10) quarto plates, (11) wide flats, (12) non alloy merchant bars and light sections, (13) alloy merchant bars and light sections, (14) rebars, (15) stainless bars and light shapes, (16) stainless wire rod, (17) stainless steel wire, (18) fittings (< 609,6 mm), (19) flanges (other than of stainless steel), (20) gas pipes and (21) hollow sections.

On the same day, on the basis of information gathered and verified prior to the initiation, provisional measures were imposed on 15 of the steel products covered by the investigation. These are the product numbers 1, 2, 3, 4, 5, 6, 9, 10, 11, 12, 13, 14, 17, 18 and 19 referred to in recital 1.

On 27 September 2002, definitive safeguard measures were imposed on seven of the steel products covered by the investigation. These are the product numbers 1, 2, 3, 4, 5, 18 and 19. On the same day, the Commission terminated the safeguard investigations in relation to product numbers 6, 7, 8, 11, 12, 13, 15, 16, 17, 20 and 21.

The safeguard investigations in relation to product numbers 9, 10 and 14 have not yet been concluded. In the context of consultations with the Member States pursuant to Article 4 of Regulation (EC) No 3285/94(1) and Regulation (EC) No 519/94(2), the Member States have informed the Commission of the new evolution of imports of product numbers 9, 10 and 14 (the products concerned) and of their impact on the situation of the Community producers concerned.

2. Exceptional circumstances

Article 7 of Regulation (EC) No 3285/94 and Article 6 of Regulation (EC) No 519/94 provide that if the Commission considers that surveillance or safeguard measures are necessary, it shall take the necessary decisions no later than nine months from the initiation of the investigation, but that, in exceptional circumstances, that time limit may be extended by a further maximum period of two months.

The Commission has already determined that, in relation to, inter alia, the products concerned, it is in the interests of the Community to establish a system of retrospective surveillance, and in accordance with Article 11 of Regulation (EC) No 3285/94 and Article 9 of Regulation (EC) No 519/94, such a system has been established by Regulation (EC) No 1695/2002(3).

For the following reasons, the Commission considers that exceptional circumstances exist justifying the extension of the time limit for completing the safeguard investigations in relation to the products concerned by a further period of two months.

The Commission has only recently received new information relating to the evolution of imports of the products concerned and their impact on the Community producers during the first nine months of 2002. This information, which indicates a further increase in imports to the Community and the worsening of the financial situation of the Community producers of each of the products concerned, was not previously available to the Commission, and in consequence has not been investigated by the Commission.

Given the nature of the information received, a further investigation is deemed necessary and appropriate by the Commission. In order to ensure the proper conduct of this investigation, the following needs to be considered. A large number of interested parties have cooperated in the investigations undertaken to date in relation to the products concerned, and wish to continue to cooperate in any further enquiries undertaken by the Commission. In order to verify the further information received, the Commission had to send further questionnaires to both Community producers and exporters to the Community in order to ascertain their specific situation. In order to allow the economic operators concerned the opportunity to exercise their rights under Article 6 of Regulation (EC) No 3285/94 and Article 5 of Regulation (EC) No 519/94, they should be given a reasonable period within which to reply to the questionnaires. Moreover the Commission's services will thereafter require to verify the information provided in reply to the quetionnaires through on-the-spot investigations at the premises of the parties concerned before proceeding to any conclusions.

Following the completion of the Commission's further investigation, and prior to the adoption of definitive safeguard measures in relation to the products concerned, if any, the European Community would in addition be obliged to notify certain trade partners with which it has bilteral agreements and also to notify WTO trade partners of any proposed measures in a timely manner.

3. Extension of time limit

The Commission considers that, in the circumstances outlined above, exceptional circumstances exist and hereby gives notice that the time limit for completion of the safeguard investigations in relation to the products concerned is extended by two months from 27 December 2002 to 27 February 2003.

(1) OJ L 349, 31.12.1994, p. 53, last amended by Council Regulation (EC) No 2474/2000 (OJ L 286, 11.11.2000, p. 1).

(2) OJ L 67, 10.3.1994, p. 89, last amended by Regulation (EC) No 1138/98 (OJ L 159, 3.6.1998, p. 1).

(3) OJ L 261, 28.9.2002, p. 124.