Notice of initiation of an expiry and an interim review of the anti-dumping measures applicable to imports of certain seamless pipes and tubes, of iron or non-alloy steel originating in Poland, Russia, the Czech Republic, Romania and the Slovak Republic

(2002/C 288/02)

Following the publication of a notice of impending expiry(1) of the anti-dumping measures in force on imports of certain seamless pipes and tubes, of iron or non-alloy steel originating in Poland, Russia, the Czech Republic, Romania and the Slovak Republic ("countries concerned"), the Commission has received a request for review pursuant to Article 11(2) and 11(3) of Council Regulation (EC) No 384/96(2), as last amended by Regulation (EC) No 1972/2002(3) ("the Basic Regulation").

1. Request for review

The request was lodged on 23 August 2002 by the Defence Committee of the seamless steel tube industry of the European Union ("the applicant") on behalf of producers representing a major proportion, in this case more than 75 %, of the total Community production of certain seamless pipes and tubes, of iron or non-alloy steel.

2. Product

The products under review are:

(a) seamless pipes, of iron or non-alloy steel, of a kind used for oil and gas pipelines, of an external diameter not exceeding 406,4 mm;

(b) seamless tubes of circular cross-section, of iron or non-alloy steel, cold-drawn or cold-rolled, other than precision tubes;

(c) other tubes of circular cross-section, of iron or non-alloy steel, other than threaded or threadable, of an external diameter not exceeding 406,4 mm

("the product concerned"), originating in Poland, Russia, the Czech Republic, Romania and the Slovak Republic, currently classifiable within CN codes ex 7304 10 10, ex 7304 10 30, 7304 31 99 and 7304 39 91 and 7304 39 93. These CN codes are given only for information.

3. Existing measures

The measures currently in force are definitive anti-dumping duties imposed by Council Regulation (EC) No 2320/97(4), as last amended by Regulation (EC) No 190/2000(5) and undertakings accepted by Commission Decision 97/790/EC(6) and Commission Decision 2000/70/EC(7).

4. Grounds for the review

4.1. Grounds for the expiry review

The request is based on the grounds that the expiry of measures would be likely to result in a continuation or recurrence of dumping and injury to the Community industry.

The allegation of continuation of dumping in respect of the Czech Republic 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 continuation of dumping in respect of Poland, Romania and the Slovak Republic is based on a comparison of a constructed normal value with the export prices of the product concerned to the Community.

In accordance with Article 2(7) of the Basic Regulation, the applicant has based its allegation of dumping in respect of Russia on a comparison of the price in a market economy third country, which is mentioned in point 5(1)(d) of this notice, with the export prices of the product concerned when sold for export to the Community.

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

The complainant has provided evidence that imports of the product concerned from Poland, Russia, the Czech Republic, Romania and the Slovak Republic have increased overall in absolute terms and in terms of market share.

It is also alleged that the volumes and the prices of the imported product concerned have continued, among other consequences, to have 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.

In addition, the applicant alleges that any recurrence of substantial imports at dumped prices from the countries concerned would likely lead to a recurrence of further injury to the Community industry should measures be allowed to lapse.

4.2. Grounds for the interim review

The request pursuant to Article 11(3) is based on the grounds that the form and level of the measures are inappropriate to counteract the dumping which is causing the injury.

Notwithstanding the existence of measures, dumping margins still appear substantial and it seems that the measures were not sufficient to eliminate injury. In addition, it seems that certain measures in the form of undertakings may have contributed to the lack of efficiency of the measures. These undertakings took the form of a price agreement up to a certain annual volume threshold and an ad-valorem duty for the volumes above that threshold.

5. Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists to justify the initiation of an expiry and an interim review, the Commission hereby initiates a review in accordance with Article 11(2) and 11(3) of the Basic Regulation.

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

The investigation will determine whether the expiry of the measures would be likely, or unlikely, to lead to a 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 number of parties involved in this proceeding, the Commission may decide to apply sampling, in accordance with Article 17 of the Basic Regulation.

(i) Sampling for exporters/producers in Russia

In order to enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all exporters/producers, or representatives acting on their behalf, are hereby requested to make themselves known by contacting the Commission and providing the following information on their company or companies within the time limit set in point 6(b)(i) of this notice:

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

- the turnover in local currency and the volume in tonnes of the product concerned sold for export to the Community during the period 1 October 2001 to 30 September 2002,

- if the company intends to claim an individual margin (individual margins can only be claimed by producers), the turnover in local currency and the sales volume in tonnes for the product concerned on the domestic market during the period 1 October 2001 to 30 September 2002,

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

- the names and the precise activities of all related companies(8) involved in the production and/or selling (export and/or domestic) 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 exporters/producers, the Commission will, in addition, contact the authorities of the exporting country and any known associations of exporters/producers.

(ii) 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 6(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 October 2001 to 30 September 2002,

- 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 October 2001 to 30 September 2002 of the imported product concerned originating in Poland, Russia, the Czech Republic, Romania and the Slovak Republic,

- the names and the precise activities of all related companies(9) 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 association of importers.

(iii) Final selection of the samples

All interested parties wishing to submit any relevant information regarding the selection of the samples must do so within the time limit set in point 6(b)(ii) of this 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 sample.

Companies included in the samples must reply to a questionnaire within the time limit set in point 6 (b)(iii) 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 Regulation, 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 sampled exporters/producers in Russia, to the exporters/producers in Poland, the Czech Republic, Romania and the Slovak Republic, 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 6(a)(i), given that the time limit set in point 6(a)(ii) of this notice applies to all interested parties.

Exporters/producers in Russia claiming an individual margin, with a view to the application of Articles 17(3) and 9(6) of the Basic Regulation, must submit a completed questionnaire within the time limit set in point 6(a)(ii) of this notice. They therefore have to request a questionnaire within the time limit set in point 6(a)(i) of this notice. However, such parties should be aware that if sampling is applied to exporters/producers, the Commission may nonetheless decide not to calculate an individual margin for them, if the number of exporters/producers is so large that individual examination would be unduly burdensome and would prevent the timely completion of the investigation.

(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 6(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 6(a)(iii) of this notice.

(d) Calculation of normal value for Russian exporters/producers

In the previous investigation the Czech Republic was used as an appropriate market economy country for the purpose of establishing normal value in respect of Russia. The Community industry based its assessment of dumping by imports from Russia on the Czech Republic for the purposes of the request. However, since the entry into force of Regulation (EC) No 1972/2002 amending the Basic Regulation, normal value for Russian exporters and producers is in this investigation to be established in accordance with the provisions of Article 2(1) to (6) of the Basic Regulation. As it may be considered appropriate to apply sampling in this instance, normal value for Russian exporters/producers shall therefore be established in accordance with Article 2(1) to (6), subject to Articles 17 and 9(6) of the Basic Regulation.

5.2. Procedure for the assessment of Community interest

In accordance with Article 21 of the Basic Regulation 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 or repeal 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 6(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 6(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.

6. 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 Regulation 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 6(b)(iii) 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) The information specified in points 5(1)(a)(i) and 5(1)(a)(ii) samples 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 in the sample on its final selection within a period of 21 days of the publication of this notice in the Official Journal of the European Communities.

(ii) All other information relevant for the selection of the sample as referred to in point 5(1)(a)(iii) must reach the Commission within a period of 21 days of the publication of this notice in the Official Journal of the European Communities.

(iii) 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.

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

Directorate B

Office: J-79 5/16 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 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 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.

(1) OJ C 51, 26.2.2002, p. 12.

(2) OJ L 56, 6.3.1996, p. 1.

(3) OJ L 305, 7.11.2002, p. 1.

(4) OJ L 322, 25.11.1997, p. 1.

(5) OJ L 23, 28.1.2000, p. 1.

(6) OJ L 322, 25.11.1997, p. 63.

(7) OJ L 23, 28.1.2000, p. 78.

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

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