Notice of initiation of a review of the anti-dumping measures applicable to imports of urea originating in Russia

(2000/C 62/06)

Following the publication of a notice of impending expiry(1) of the anti-dumping measures in force on imports of urea originating in Russia, the Commission has received a request to review the measures for that country pursuant to Article 11(2) of Council Regulation (EC) No 384/96(2), as last amended by Council Regulation No 905/98(3), hereinafter referred to as the "Basic Regulation".

1. Request for review

The request was lodged on 3 December 1999 by the European Fertilizer Manufacturers Association (EFMA) (hereinafter referred to as "the applicant") on behalf of producers representing a major proportion of Community production of urea (hereinafter referred to as the "product concerned").

2. Product

The product concerned is urea currently classified under CN codes 3102 10 10 and 3102 10 90. These codes are only given for information.

Urea is produced from ammonia and is used either as a fertilizer or as an animal feed additive (agricultural grade urea), or as raw material for certain glues and plastics (industrial grade urea).

3. Existing measures

The measures currently in force are difinitive anti-dumping duties imposed by Council Regulation (EC) No 477/95(4) in the form of a variable duty applicable to imports below a minimum price.

4. Grounds for the review

The request is based on the grounds that, although the quantities exported by Russia have dropped substantially since the previous investigation, the expiry of the measures would be likely to result in the continuation or recurrence of dumping and injury to the Community industry.

The applicant alleges that Russian exporters continue to dump urea on the Community market. According to further allegations made by the applicant, Russian exports to other markets appear to be dumped as well which is an indication for the recurrence of further dumping should measures be repealed.

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

The allegation of dumping is therefore based on a comparison of normal values in the United States of America, Poland and the Slovak Republic with the Russian export prices of the product concerned to the Community.

The applicant also alleges that the expiry of measures would be likely to result in renewed injury to the Community industry given Russia's significant production and low domestic consumption. Indeed, the capacity available for export represents more than half of the entire Community consumption.

In addition, the applicant alleges that any recurrence of substantial imports from Russia at dumped prices would further depress prices in the Community and worsen the situation of the Community industry, which, despite the measures in force, is still precarious. Industry prices are alleged to have dropped by over 40 % since 1995/1996, leading to a continuous deterioration of profitability.

5. Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists for the initiation of an expiry review, the Commission hereby initiates an investigation pursuant to Article 11(2) of the basic Regulation.

(a) Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the Community procducers and to any association of producers in the Community, to exporting producers, importers, and to any association of exporting producers and importers named in the request and to the Russian authorities. Those parties which participated in the investigation having led the existing measures subject to the present review will also be sent a questionnaire.

Interested existing producers and importers which did not participate in the investigation having led to the existing measures are invited to contact the Commission forthwith in order to find out whether they are concerned by the review, in which case, they should, as soon as possible, but no later than 15 days after the publication of this notice in the Official Journal of the European Communities request a copy of the questionnaire, as all questionnaires have to reach the Commission within the time limit set out in paragraph 7(a) of this notice. Any request for questionnaires must be made in writing to the address mentioned below and should indicate the name, address, telephone, and fax and/or telex numbers of the interested party.

(b) 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.

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

(c) Selection of the market economy third country

In accordance with Article 2(7) of the basic Regulation, it is envisaged to choose an appropriate market economy third country for the purpose of establishing normal value. Of the three countries proposed by the applicant, the Commission considers the Slovak Republic to be the most appropriate since, inter alia, it was used as an analogue market in the previous investigation. Interested parties are hereby invited to comment on the appropriateness of this choice within the specific time limit set in paragraph 7(b) of this notice.

6. Community interest

In accordance with Article 21 of the basic Regulation, and in order that an informed decision may be reached as to whether it would be against the Community interest to maintain the anti-dumping measures currently in force, the applicant Community producers, importers and their representative associations, representative users, as well as representative consumer organisations, provided that they prove that there is an objective link between their activity and the product concerned, may, within the time limit specified 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 limit

All submissions and requests made by interested parties within the context of the following paragraphs must be made in writing (not in electronic format, unless otherwise specified), and must reach the Commission within the time limits set below.

(a) General time limit

Interested parties, if their representations are to be taken into account during the investigation, must make themselves known, present their views in writing and submit information, unless otherwise specified, within 40 days of the date of the 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 known to the Commission, and it is consequently in the interest of these parties to contact the Commission without delay.

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

Parties to the investigation wishing to comment on the appropiateness of the Slovak Republic which, as mentioned in paragraph 5(c) of this notice, is envisaged as market economy third country for the purpose of establishing normal value, should file their comments within 10 days of the publication of this notice.

(c) Commission address for correspondence

European Commission

Directorate-General for Trade

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 otherwise does not provide necessary information within the time limits specified in paragraph 7 above, 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 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 252, 3.9.1999, p. 2.

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

(3) OJ L 128, 30.4.1998, p. 18.

(4) OJ L 49, 4.3.1995, p. 1.