Notice of initiation of an anti-subsidy proceeding concerning imports of certain ringbinder mechanisms originating in India and Indonesia

(2001/C 147/03)

The Commission has received a complaint pursuant to Article 10 of Council Regulation (EC) No 2026/97(1) ("the Basic Regulation"), alleging that imports of certain ringbinder mechanisms ("RBM"), originating in India and Indonesia ("countries concerned"), are being subsidised and are thereby causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 3 April 2001 by the following Community producers: Koloman Handler AG, Krause Ringbuchtechnik GmbH ("the complainants") representing a major proportion, in this case more than 85 %, of Community production of RBM.

2. Product

The product allegedly being subsidised is RBM. They consist of two rectangular steel sheets or wires with at least four half-rings made of steel wire fixed on it and which are kept together by a steel cover. They can be opened either by pulling the half-rings or with a small steel-made trigger mechanism fixed to the RBM ("the product concerned") originating in the countries concerned, currently classifiable within CN code ex 8305 10 00. This CN code is only given for information.

3. Allegation of subsidisation

It is alleged that the producers of the product concerned from India have benefited from a number of subsidies granted by the Government of India. These subsidies are benefits for industries located in export processing zones, a duty entitlement passbook scheme, an income tax exemption and the export promotion capital goods scheme. The total amount of subsidy emanating from these schemes is estimated to be significant.

It is alleged that the above schemes are subsidies since they involve a financial contribution from the government of India and confer a benefit to the recipients, i.e. to exporters/producers of RBM. They are alleged to be specific and therefore countervailable.

It is alleged that the producers of the product concerned from Indonesia have benefited from a number of subsidies granted by the Government of Indonesia. These subsidies are BKPM (or Investment Co-ordinating Board) schemes, income tax facilities, specific tax incentives for integrated economic development zones and bonded zones, Bank of Indonesia rediscount loans, import duty exemption of capital equipment and a two-step loan programme. The total amount of subsidy emanating from these schemes is estimated to be significant.

It is alleged that the above schemes are subsidies since they involve a financial contribution from the Government of Indonesia and confer a benefit to the recipients, i.e. to exporters/producers of RBM. They are alleged to be specific and therefore countervailable.

4. Allegation of injury

The complainant has provided evidence that imports of the product concerned from India and Indonesia 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 held, 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. Procedure

Having determined, after consulting the Advisory Committee and notifying the Governments of India and Indonesia with the invitation for consultations in accordance with Article 10(9) of the Basic Regulation, 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 10 of the Basic Regulation.

5.1. Procedure for the determination of subsidisation and injury

The investigation will determine whether the product described in point 2 originating in India and Indonesia is being subsidised and whether this subsidisation has caused injury.

(a) 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 India and Indonesia to any association of exporters/producers, to the 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 6(a) 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 6(b) of this notice applies to all such interested parties.

(b) 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 6(b) 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 6(c).

5.2. Procedure for assessment of Community interest

In accordance with Article 31 of the Basic Regulation and in the event that the allegations of subsidisation and injury caused thereby are substantiated, a decision will be reached as to whether the adoption of anti-subsidy 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 time limits set in point 6(b) of this notice, make themselves known and provide the Commission with information. It should be noted that any information submitted pursuant to Article 31 will only be taken into account if supported by factual evidence at the time of submission.

6. Time limits

(a) 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.

(b) 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.

(c) Hearings

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

7. 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.

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 28 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.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(9) of the Basic Regulation within 13 months of the date of the publication of this notice in the Official Journal of the European Communities. According to Article 12(1) of the Basic Regulation, 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 288, 21.10.1997, p. 1.