EN Official Journal of the European Union C 233/14

Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of solutions of urea and ammonium nitrate originating in Algeria, Belarus, Russia and Ukraine

(2005/C 233/07)

Following the publication of a notice of impending expiry (1) of the anti-dumping measures in force on imports of solutions of urea and ammonium nitrate originating in Algeria, Belarus, Russia and Ukraine, (‘the countries concerned’), the Commission has received a request for review pursuant to Article 11(2) of Council Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community (‘the basic Regulation’) (2).

1. Request for review

The request was lodged on 20 June 2005 by the European Fertilizer Manufacturers Association(EFMA) (‘the applicant’) on behalf of producers representing a major proportion, in this case more than 50 % of the total Community production of solutions of urea and ammonium nitrate.

2. Product

The product under review is mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution originating in Algeria, Belarus, Russia and Ukraine (‘the product concerned’), currently classifiable within CN code 3102 80 00. This CN code is given only for information.

3. Existing measures

The measures currently in force are a definitive anti-dumping duty imposed by Council Regulation (EC) No 1995/2000 (3), as last amended by Council Regulation (EC) No 1675/2003 (4).

4. Grounds for the review

The request is based on the grounds that the expiry of the 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 Algeria is based on a comparison of a constructed normal value with the export prices of the product concerned when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

In demonstrating the likelihood of recurrence of dumping for Belarus, Ukraine and Russia, export prices to the United States of America have been used by the applicant given the current absence of significant import volumes from these three countries into the EC.

In view of the provisions of Article 2(7) of the basic Regulation, the applicant established normal value for Belarus and for Ukraine on the basis of the price in an appropriate market economy third country which is mentioned in point 5.1(d) of this notice.

The allegation of recurrence of dumping fro Belraus and for Ukraine is based on a comparison of normal value, as set out in the previous sentence, with the export prices of the product concerned of these two countries when sold for export to the United States of America.

The allegation of recurrence of dumping for Russia is based on a comparison of a constructed normal value with the export prices of the product concerned when sold for export to the United States of America.

On the basis of the above comparisons of normal values and export prices, which show dumping from Belarus, Ukraine and Russia, the applicant alleges that there is a likelihood of recurrence of dumping.

The applicant further alleges the likelihood of further injurious dumping. In this respect, the applicant presents evidence that, should measures be allowed to lapse, the current import level of the product concerned is likely to increase due to the existence of unused capacity and the potential of the manufacturing facilities of the exporting producers in the countries concerned to switch from the production of other products to the production of the product concerned.

In addition, the applicant alleges that the removal of injury is mainly due to the existence of measures and 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.

5. Procedure

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

(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 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) and in the format indicated in point 7:

— name, address, e-mail address, telephone, and fax number and contact person,

— the total turnover in EUR of the company during the period 1 July 2004 to 30 June 2005,

— the total number of employees,

— the precise activities of the company with regard to the product concerned,

— the volume in tonnes and value in EUR of imports into and resales made in the Community market during the period 1 July 2004 to 30 June 2005 of the imported product concerned originating in Algeria, Belarus, Russia and Ukraine,

— the names and the precise activities of all related companies (5) 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,

— by providing the above information, the company agrees to its possible inclusion in the sample. If the company is chosen to be part of the sample, this will imply replying to a questionnaire and accepting an on-the-spot investigation of its response. If the company indicates that it does not agree to its possible inclusion in the sample, it will be deemed to not have cooperated in the investigation. The consequences of non-cooperation are set out in point 8 below.

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 associations of importers.

(ii) Sampling for Community producers

In view of the large number of Community producers supporting the request, the Commission intends to investigate injury to the Community industry by applying sampling.

In order to enable the Commission to select a sample, all Community producers are hereby requested to provide the following information on their company or companies within the time limit set in point 6(b)(i):

— name, address, e-mail address, telephone, and fax number and contact person,

— the total turnover in EUR of the company during the period 1 July 2004 to 30 June 2005,

— the precise activities of the company with regard to the production of the product concerned and the volume in tonnes of the product concerned during the period 1 July 2004 to 30 June 2005,

— the value in EUR of sales of the product concerned made in the Community market during the period 1 July 2004 to 30 June 2005,

— the volume in tonnes of sales of the product concerned made in the Community market during the period 1 July 2004 to 30 June 2005,

— the volume in tonnes of the production of the product concerned during the period 1 July 2004 to 30 June 2005,

— the names and the precise activities of all related companies (5) 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,

— by providing the above information, the company agrees to its possible inclusion in the sample. If the company is chosen to be part of the sample, this will imply replying to a questionnaire and accepting an on-the-spot investigation of its response. If the company indicates that it does not agree to its possible inclusion in the sample, it will be deemed to not have cooperated in the investigation. The consequences of non-cooperation are set out in point 8 below.

(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).

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) and must cooperate within the framework of the investigation.

If sufficient cooperation is not forthcoming, the Commission may base its findings, in accordance with Articles 17(4) and 18 of the basic Regulation, on the facts available. A finding based on facts available may be less advantageous to the party concerned, as explained in point 8.

(b) Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the sampled Community industry, to any association of producers in the Community, to the exporters/producers in Algeria, Belarus, Russia and Ukraine, 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.

(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) Selection of the market economy country

In the previous investigation Lithuania was used as an appropriate market economy country for the purpose of establishing normal value in respect of Belarus and Ukraine. The applicant has now proposed to use the United States of America for this purpose. Interested parties are hereby invited to comment on the appropriateness of this country within the specific time limit set in point 6(c) of this notice.

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 or recurrence of dumping and injury is confirmed, a determination will be made 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), make themselves known and provide the Commission with information. The parties which have acted in conformity with the previous sentence may request a hearing, setting the particular reasons why they should be heard, within the time limit set in point 6(a)(iii). 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 Union.

(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 Union, 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.

(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) should reach the Commission within 15 days of the date of publication of this notice in the Official Journal of the European Union, 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 Union.

(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 Union.

(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.

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

Parties to the investigation may wish to comment on the appropriateness of the United States of America which, as mentioned in point 5.1(d) of this notice, is envisaged as a market-economy country for the purpose of establishing normal value in respect of Belarus and Ukraine. These comments must reach the Commission within 10 days of the date of publication of this notice in the Official Journal of the European Union.

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 number of the interested party. All written submissions, including the information requested in this notice, questionnaire replies and correspondence provided by interested parties on a confidential basis shall be labelled as ‘Limited’ (6) and, in accordance with Article 19(2) of the basic Regulation, shall be accompanied by a non-confidential version, which will be labelled ‘FOR INSPECTION BY INTERESTED PARTIES’.

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

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 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. If an interested party does not cooperate or cooperates only partially and findings are therefore based on facts available in accordance with Article 18 of the basic Regulation, the result may be less favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded according to Article 11(5) of the basic Regulation within 15 months of the date of the publication of this notice in the Official Journal of the European Union.

(1) OJ C 312, 17.12.2004, p. 5.

(2) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p.12).

(3) OJ L 238, 22.9.2000, p. 15.

(4) OJ L 238, 25.9.2003, p. 4.

(5) For guidance on the meaning of related companies, please refer to Article 143 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (OJ L 253, 11.10.1993, p.1).

(6) For guidance on the meaning of related companies, please refer to Article 143 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (OJ L 253, 11.10.1993, p.1). This means that the document is for internal use only. It is protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant to Article 19 of the basic Regulation and Article 6 of the WTO Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping Agreement).