Notice of initiation of an expiry and an interim review of the anti-dumping measures applicable to imports of ammonium nitrate originating in Russia

(2000/C 239/04)

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

1. Request for review

The request was lodged on 22 May 2000 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 ammonium nitrate.

2. Product

The product concerned by the review is ammonium nitrate, a solid fertilizer commonly used in agriculture, which is produced from ammonia and nitric acid (hereinafter referred to as "the product concerned"). It is currently classified under CN codes 3102 30 90 and 3102 40 90. These codes are only given for information.

3. Existing measures

The measures currently in force are definitive anti-dumping duties, in the form of a specific duty imposed by Council Regulation (EC) No 663/98(4), which amended Regulation (EC) No 2022/95(5).

4. Grounds for the expiry review

The request pursuant to Article 11(2) is based on the grounds that the expiry of the measures would be likely to result in the continuation or recurrence of dumping and injury to the Community industry.

With regard to the allegation of continuation of dumping, in view of the fact that normal value for Russia should be determined 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 an appropriate market economy third country.

The allegation of dumping is based on a comparison of normal value, as set out above, with the export prices of the product concerned when sold for export to the Community, which would have continually decreased since 1995. On this basis the dumping margin calculated is significant.

Furthermore, the applicant alleges that should measures be allowed to lapse the current import level of the product concerned would be likely to rise due to the fact that potential destinations other than the Community are protected by anti-dumping measures (USA, Lithuania, Poland and Hungary) or by other measures (China's ban on imports), which makes it more likely that exports at dumped prices will be directed to the Community market, if the measures lapse. In addition, the large production capacity of the product concerned in the country concerned would represent, even after deduction of the domestic demand, more than the entire Community consumption.

The applicant also 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.

5. Grounds for the interim review

The applicant's request pursuant to Article 11(3) is based on the grounds that the current measures appear not to be sufficient to counteract the injurious effects of dumping. The applicant provided evidence showing that its current non-injurious target price is higher than current resale prices of russian imports. This is allegedly because lower costs in the Community industry have been more than offset by the fall in Russian prices since 1995.

6. Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists for the initiation of an expiry review and an interim review, the Commission hereby initiates an investigation pursuant to Article 11(2) and (3) of the Basic Regulation. The investigation will assess the likelihood of continuation or recurrence of dumping and injury and the need for the continuation, removal or amendment of the existing measures.

6.1. Procedure for the determination of the likelihood of the continuation or recurrence of dumping and 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 and to any association of exporters/producers, to the importers and to any association of importers named in the request as well as to the Russian authorities. Those parties which participated in the investigation having led to the existing measures subject to the present review will also be sent a questionnaire.

In any event, all parties are advised to contact the Commission forthwith by fax in order to find out whether they are listed in the request for the review, and if they are not, they should request a questionnaire within the time limit set in paragraph 7(a)(i), given that the time limit set in paragraph 7(a)(ii) of this notice applies to all 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 paragraph 7(a)(ii).

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. This request for a hearing must be made within the time limit set in paragraph 7(a)(iii).

(c) Selection of the market economy third country

In accordance with Article 2(7) of the Basic Regulation, it is envisaged to choose Poland as an appropriate market economy third country for the purpose of establishing normal value in respect of Russia, since, inter alia, it was used as an analogue market in previous investigations concerning the same product. 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.

(d) Market economy status

For those exporters/producers in Russia which claim and provide sufficient evidence that they operate under market economy conditions, i.e. that they meet the criteria laid down in Article 2(7)(c) of the Basic Regulation, normal value will be determined in accordance with Article 2(7)(b) of the Basic Regulation. Exporters/producers intending to submit duly substantiated claims must do so within the specific time limit set under paragraph 7(c) of this notice. The Commission will send claim forms to all exporters/producers in Russia who have requested an individual margin as well as to the authorities of Russia.

6.2. Procedure for assessment of Community interest

In accordance with Article 21 of the Basic Regulation, and in the event that the allegations of dumping and injury caused thereby are substantiated, a decision will be reached as to whether the continuation, removal or amendment of measures would not be against the Community interest. For this reason the Community industry, importers and their representative associations, representative users, and representative consumer organizations, 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 paragraph 7(a)(ii) of this notice, make themselves known and provide the Commission with relevant 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 limits

(a) General time limits

(i) 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.

(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 in writing and submit questionnaire replies or any other information within 40 days of the date of the publication of this notice in the Official Journal of the European Communities, unless otherwise specified.

(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 for the selection of the market economy country

Parties to the investigation may wish to comment on the appropriateness of Poland which, as mentioned in paragraph 6.1(c) of this notice, is envisaged as a market economy country for the purpose of establishing normal value in respect of Russia. These comments must reach the Commission within 10 days of the publication of this notice in the Official Journal of the European Communities.

(c) Specific time limit for submission of claims for market economy status

Properly substantiated claims for market economy status, as mentioned in paragraph 6.1(d) of this notice, must reach the Commission within 21 days of the date of publication of this notice in the Official Journal of the European Communities.

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 C and E

DM 24 - 8/37

Rue de la Loi/Wetstraat 200 B - 1049 Brussels Fax (32-2) 295 65 05 Telex: 21877 COMEU B.

9. 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 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 52, 14.2.2000, p. 3.

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

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

(4) OJ L 93, 26.3.1998, p. 1.

(5) OJ L 198, 23.8.1995, p. 1.