EN Official Journal of the European Union C 351/27

Notice of initiation of an expiry review and of partial interim reviews and an ex officio partial interim review of the anti-dumping measures applicable to imports of citric acid originating in the People's Republic of China

2013/C 351/06

Following the publication of a notice of impending expiry (1) of the anti-dumping measures in force on the imports of citric acid originating in the People's Republic of China, the European Commission (‘the Commission’) has received requests for review pursuant to Article 11(2) and (3) of Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community (2) (‘the basic Regulation’).

In addition, the Commission has decided on its own initiative to initiate a partial interim review of the anti-dumping measures applicable to imports of citric acid originating in the People's Republic of China pursuant to Article 11(3) of the basic Regulation. The review is limited in scope to the examination of the form of the measure and of injury.

1. Requests for reviews and ex officio initiation

1.1. Request for an expiry review

The request for expiry review was lodged on 2 August 2013 by SA Citrique Belge and Jungbunzlauer Austria AG (‘the applicants’) on behalf of producers representing 100 % of the Union production of citric acid.

1.2. Request for a partial interim review limited in scope to the examination of dumping as far as Laiwu Taihe Biochemistry Co. Ltd (‘Laiwu Taihe’) is concerned

The request for a partial interim review was lodged on 10 October 2013 by the same applicants on behalf of producers representing 100 % of the Union production of citric acid.

The partial interim review is limited in scope to the examination of dumping as far as Laiwu Taihe Biochemistry Co. Ltd (‘Laiwu Taihe’) is concerned.

1.3. Ex officio partial interim review

The Commission has decided on its own initiative to initiate a partial interim review of the anti-dumping measures applicable to imports of citric acid originating in the People's Republic of China pursuant to Article 11(3) of the basic Regulation. The review is limited in scope to the examination of the form of the measure and of injury.

2. Possibility to request a review under Article 11(3) of the basic Regulation

If any interested party considers that a review of the measures is warranted for other reasons that those covered by the current notice of initiation (e.g., recalculation of dumping margin), that party may request a review pursuant to Article 11(3) of the basic Regulation.

Parties wishing to request such a review may contact the Commission at the address given below.

If such requests are made in time and do not jeopardise the completion of the above reviews within the statutory deadline, the Commission will endeavour to consider them within the context of the present investigation.

3. Product under review

The product subject to this review is citric acid and trisodium citrate dihydrate (‘the product under review’ or ‘citric acid’), currently falling within CN codes 2918 14 00 and ex 2918 15 00 and originating in the People’s Republic of China (‘PRC’), the country concerned.

4. Existing measures

The measures currently in force are a definitive anti-dumping duty imposed by Council Regulation (EC) No 1193/2008 (3).

The Commission, by Decision 2008/899/EC (4), accepted price undertakings offered by seven Chinese exporting producers together with the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters.

The Commission, by Decision 2012/501/EU (5), withdrew the undertaking offered by one exporting producer, i.e. Laiwu Taihe.

5. Grounds for the reviews

5.1. Grounds for the expiry review

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

5.1.1. Allegation of likelihood of continuation of dumping

Since, in view of the provisions of Article 2(7) of the basic Regulation, the PRC (‘the country concerned’) is considered to be a non-market economy country, the applicants established normal value for the exporting producers from the PRC which were not granted market economy treatment during the investigation leading to the measures in force on the basis of the price in a market economy third country, namely Canada. For those companies which were granted market economy treatment during the investigation leading to the measures in force, normal value has been established on the basis of a constructed normal value (manufacturing costs, selling, general and administrative costs (SG&A) and profit) in the PRC in the alleged absence of representative domestic sales. The allegation of likelihood of continuation of dumping is based on a comparison of the normal value, as set out in preceding sentences, with the export price (at ex-works level) of the product under review when sold for export to the Union.

On this basis the dumping margins calculated are significant for the country concerned.

5.1.2. Allegation of likelihood of recurrence of injury

The applicants allege the likelihood of recurrence of injury. In this respect the applicants have provided prima facie evidence that, should measures be allowed to lapse, the current import level of the product under review from the country concerned to the Union is likely to increase due to the existence of unused capacity in the country concerned, the existence of trade barriers for the country concerned in the USA, Brazil, Thailand and Ukraine and the attractiveness of the Union market. In addition, it is also alleged that the exports to other third countries are made at much lower prices than to the Union.

The applicants finally allege that the removal of injury has been mainly due to the existence of measures and that any recurrence of substantial imports at dumped prices from the country concerned would likely lead to a recurrence of injury to the Union industry should measures be allowed to lapse.

5.2. Grounds for the partial interim review

The request pursuant to Article 11(3) is based on prima facie evidence, provided by the applicants, that, as far as Laiwu Taihe is concerned, and as far as dumping is concerned, the circumstances on the basis of which the existing measures were imposed have changed and that these changes are of a lasting nature.

The applicants provided prima facie evidence showing that since the last investigation period Laiwu Taihe had increased production capacity and enlarged its product range. The applicants also provided a dumping margin calculation based on a comparison between a constructed normal value (manufacturing costs, selling, general and administrative costs (SG&A) and profit) in the PRC in the alleged absence of representative domestic sales and Laiwu Taihe’s export price to the Union, indicating that the dumping margin appears to be higher than the current level of the measures.

Therefore, the applicants allege that the continued imposition of the measures at the existing level, which was based on the level of dumping previously established, appears to be insufficient to offset the effects of injurious dumping.

5.3. Grounds for an ex officio partial interim review

The Commission has at its disposal sufficient prima facie evidence that, as far as the form of the measures and injury are concerned, the circumstances on the basis of which the existing measures were imposed have changed and that these changes are of a lasting nature.

In particular, the information at the disposal of the Commission appears to indicate that the cost variables, on which the non-injurious price has been based to calculate the minimum import price of the undertakings, have changed. Such changes have had a significant impact on the overall performance of the Union industry.

All these developments appear to be of a lasting nature and therefore substantiate the need to review the current form of the measures and to assess the injury findings. Based on the above, it appears that the continued imposition of measures at the existing level may no longer be appropriate to offset the effects of injurious dumping.

6. Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists to justify the initiation of an expiry review, a partial interim review limited to the examination of the dumping margin for Laiwu Taihe and an ex officio partial interim review of the form of the measures and injury, the Commission hereby initiates reviews in accordance with Article 11(2) and (3) of the basic Regulation.

The expiry review will determine whether the expiry of the measures would be likely to lead to a continuation or recurrence of dumping of the product under review originating in the country concerned and a continuation or recurrence of injury to the Union industry.

The investigation will also assess the need for the continuation, removal or amendment of the existing measures.

6.1.1. Investigating exporting producers

6.1.1.1. Procedure for selecting exporting producers to be investigated in the PRC

In view of the potentially large number of exporting producers in the PRC involved in this expiry and partial interim review and in order to complete the investigation within the statutory time limits, the Commission may limit the exporting producers to be investigated to a reasonable number by selecting a sample (this process is also referred to as ‘sampling’). The sampling will be carried out in accordance with Article 17 of the basic Regulation.

In order to enable the Commission to decide whether sampling is necessary, and if so, to select a sample, all exporting producers, or representatives acting on their behalf, including the ones who did not cooperate in the investigation leading to the measures subject to the present review, are hereby requested to make themselves known to the Commission. These parties have to do so within 15 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified, by providing the Commission with the information on their company(ies) requested in Annex I to this notice.

In order to obtain the information it deems necessary for the selection of the sample of exporting producers, the Commission will also contact the authorities of the People’s Republic of China and may contact any known associations of exporting producers.

All interested parties wishing to submit any other relevant information regarding the selection of the sample, excluding the information requested above, must do so within 21 days of the publication of this notice in the Official Journal of the European Union, unless otherwise specified.

If a sample is necessary, the exporting producers may be selected based on the largest representative volume of exports to the Union which can reasonably be investigated within the time available. All known exporting producers, the authorities of the country concerned and associations of exporting producers will be notified by the Commission, via the authorities of the country concerned if appropriate, of the companies selected to be in the sample.

In order to obtain the information it deems necessary for its investigation with regard to exporting producers, the Commission will send questionnaires to the exporting producers selected to be in the sample, to any known association of exporting producers and to the authorities of the PRC.

All exporting producers selected to be in the sample and any known association of exporting producers will have to submit a completed questionnaire within 37 days from the date of notification of the sample selection, unless otherwise specified.

The questionnaire will request information on, inter alia, the structure of the exporting producer's company(ies), the activities of the company(ies) in relation to the product under review, the cost of production, the sales of the product under review on the domestic market of the country concerned and the sales of the product under review to the Union.

6.1.1.2. Procedure for Laiwu Taihe

In order to obtain the information it deems necessary for its investigation with regard to Laiwu Taihe, the Commission will send a questionnaire to Laiwu Taihe.

Laiwu Taihe must submit the completed questionnaire within 37 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified.

The questionnaire will request information on, inter alia, the structure of the exporting producer's company, the activities of the company in relation to the product under review, the cost of production, the sales of the product under review on the domestic market of the country concerned and the sales of the product under review to the Union.

The Commission will also send a MET claim form to this company. Laiwu Taihe must submit the completed MET claim form within 21 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified. In accordance with Article 2(7)(b) of the basic Regulation, should Laiwu Taihe consider that market economy conditions prevail for them in respect of the manufacture and sale of the product under review, they may submit a properly substantiated claim to this effect (‘MET claim’). MET will be granted if the assessment of the MET claim shows that the criteria laid down in Article 2(7)(c) of the basic Regulation (6) are fulfilled. Should Laiwu Taihe be granted MET, its dumping margin will be calculated, to the extent possible and without prejudice to the use of facts available pursuant to Article 18 of the basic Regulation, by using their own normal value and export prices in accordance with Article 2(7)(b) of the basic Regulation.

6.1.2. Selection of a market economy third country for the purpose of the expiry review and the partial interim review limited to dumping in respect of Laiwu Taihe

Subject to the provisions of Section 6.1.1.2 above, in accordance with Article 2(7)(a) of the basic Regulation, in the case of imports from the PRC, normal value will be determined on the basis of the price or constructed value in a market economy third country.

In the previous investigation Canada was used as a market economy third country for the purpose of establishing normal value in respect of the PRC. For the purpose of the current investigation, the Commission envisages using again Canada. Interested parties are hereby invited to comment on the appropriateness of this choice within 10 days of the date of publication of this notice in the Official Journal of the European Union.

6.1.3. Investigating unrelated importers (7) (8)

Unrelated importers of the product under review from the PRC to the Union are invited to participate in this investigation.

In view of the potentially large number of unrelated importers involved in this expiry and partial interim review and in order to complete the investigation within the statutory time limits, the Commission may limit to a reasonable number the unrelated importers that will be investigated by selecting a sample (this process is also referred to as ‘sampling’). The sampling will be carried out in accordance with Article 17 of the basic Regulation.

In order to enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all unrelated importers, or representatives acting on their behalf, including the ones who did not cooperate in the investigation leading to the measures subject to the present review, are hereby requested to make themselves known to the Commission. These parties must do so within 15 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified, by providing the Commission with the information on their company(ies) requested in Annex II to this notice.

In order to obtain information it deems necessary for the selection of the sample of unrelated importers, the Commission may also contact any known associations of importers.

All interested parties wishing to submit any other relevant information regarding the selection of the sample, excluding the information requested above, must do so within 21 days of the publication of this notice in the Official Journal of the European Union, unless otherwise specified.

If a sample is necessary, the importers may be selected based on the largest representative volume of sales of the product under review in the Union which can reasonably be investigated within the time available. All known unrelated importers and associations of importers will be notified by the Commission of the companies selected to be in the sample.

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the sampled unrelated importers. These parties must submit a completed questionnaire within 37 days from the date of the notification of the sample selection, unless otherwise specified.

The questionnaire will request information on, inter alia, the structure of their company(ies), the activities of the company(ies) in relation to the product under review and the sales of the product under review.

6.2. Procedure for the determination of a likelihood of continuation or recurrence of injury

In order to establish whether there is a likelihood of a continuation or recurrence of injury to the Union industry, Union producers of the product under review are invited to participate in the Commission investigation.

6.2.1. Investigating Union producers

In order to obtain the information it deems necessary for its investigation with regard to Union producers, the Commission will send questionnaires to known Union producers: Citrique Belge SA and Jungbunzlauer Austria AG.

The aforementioned Union producers must submit the completed questionnaire within 37 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified.

The questionnaire will request information on, inter alia, the structure of their company(ies) and the financial and economic situation of the company(ies).

Any Union producer and association of Union producers not listed above is invited to contact the Commission, preferably by e-mail, immediately but no later than 15 days after the publication of this notice in the Official Journal of the European Union, unless otherwise specified, in order to make itself known and request a questionnaire.

6.3. Procedure for the assessment of Union interest

Should the likelihood of continuation or recurrence of dumping and injury be confirmed, a decision will be reached, pursuant to Article 21 of the basic Regulation, as to whether maintaining anti-dumping measures, amended as necessary as a result of the interim reviews, would not be against the Union interest. Union producers, importers and their representative associations, users and their representative associations, and representative consumer organisations are invited to make themselves known within 15 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified. In order to participate in the investigation, the representative consumer organisations have to demonstrate, within the same deadline, that there is an objective link between their activities and the product under review.

Parties that make themselves known within the above deadline may provide the Commission with information on the Union interest within 37 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified. This information may be provided either in a free format or by completing a questionnaire prepared by the Commission. In any case, information submitted pursuant to Article 21 will only be taken into account if supported by factual evidence at the time of submission.

6.4. Other written submissions

Subject to the provisions of this notice, all interested parties are hereby invited to make their views known, submit information and provide supporting evidence. Unless otherwise specified, this information and supporting evidence must reach the Commission within 37 days of the date of publication of this notice in the Official Journal of the European Union.

6.5. Possibility to be heard by the Commission investigation services

All interested parties may request to be heard by the Commission investigation services. Any request to be heard must be made in writing and must specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation, the request must be submitted within 15 days of the date of publication of this notice in the Official Journal of the European Union. Thereafter, a request to be heard must be submitted within the specific deadlines set by the Commission in its communication with the parties.

6.6. Instructions for making written submissions and sending completed questionnaires and correspondence

All written submissions, including the information requested in this notice, completed questionnaires and correspondence provided by interested parties for which confidential treatment is requested shall be labelled ‘Limited’ (9).

Interested parties providing ‘Limited’ information are required to furnish non-confidential summaries of it pursuant to Article 19(2) of the basic Regulation, which will be labelled ‘For inspection by interested parties’. These summaries must be sufficiently detailed to permit a reasonable understanding of the substance of the information submitted in confidence. If an interested party providing confidential information does not furnish a non-confidential summary of it in the requested format and quality, such information may be disregarded.

Interested parties are required to make all submissions and requests in electronic format (non-confidential submissions via e-mail, confidential ones on CD-R/DVD), and must indicate their name, address, e-mail address, telephone and fax numbers. However, any powers of attorney, signed certifications, and any updates thereof, accompanying MET claim forms or questionnaire replies must be submitted on paper, i.e. by post or by hand, at the address below. If an interested party cannot provide its submissions and requests in electronic format, it must immediately contact the Commission in compliance with Article 18(2) of the basic Regulation. For further information concerning correspondence with the Commission, interested parties may consult the relevant web page on the website of the Directorate-General for Trade: http://ec.europa.eu/trade/tackling-unfair-trade/trade-defence

Commission address for correspondence:

European Commission Directorate-General for Trade Directorate H Office: N-105 08/020 1049 Bruxelles/Brussel BELGIQUE/BELGIË Fax +32 22956505 E-mail: TRADE-CITRIC-ACID-DUMPING@ec.europa.eu TRADE-CITRIC-ACID-INJURY@ec.europa.eu

7. Non-cooperation

In cases where any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, findings, affirmative or negative, may be made on the basis of facts available, in accordance with Article 18 of the basic Regulation.

Where it is found that any interested party has supplied false or misleading information, the information may be disregarded and use may be made of 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.

8. Hearing Officer

Interested parties may request the intervention of the Hearing Officer for the Directorate-General for Trade. The Hearing Officer acts as an interface between the interested parties and the Commission investigation services. The Hearing Officer reviews requests for access to the file, disputes regarding the confidentiality of documents, requests for extension of time limits and requests by third parties to be heard. The Hearing Officer may organise a hearing with an individual interested party and mediate to ensure that the interested parties' rights of defence are being fully exercised.

A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation, the request must be submitted within 15 days of the date of publication of this notice in the Official Journal of the European Union. Thereafter, a request to be heard must be submitted within specific deadlines set by the Commission in its communication with the parties.

The Hearing Officer will also provide opportunities for a hearing involving parties to take place which would allow different views to be presented and rebuttal arguments offered on issues pertaining, among other things, to the likelihood of a continuation or recurrence of dumping and injury, dumping, injury and Union interest.

For further information and contact details interested parties may consult the Hearing Officer's web pages on DG Trade's website: http://ec.europa.eu/commission_2010-2014/degucht/contact/hearing-officer/

9. Schedule of the investigation

The investigation will be concluded, pursuant 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.

10. Processing of personal data

Any personal data collected in this investigation will be treated in accordance with Regulation (EC) No 45/2001 of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (10).

(1) OJ C 60, 1.3.2013, p. 9.

(2) OJ L 343, 22.12.2009, p. 51.

(3) OJ L 323, 3.12.2008, p. 1.

(4) OJ L 323, 3.12.2008, p. 62.

(5) OJ L 244, 8.9.2012, p. 27.

(6) The exporting producer has to demonstrate in particular that: (i) business decisions and costs are made in response to market conditions and without significant State interference; (ii) firms have one clear set of basic accounting records which are independently audited in line with international accounting standards and are applied for all purposes; (iii) there are no significant distortions carried over from the former non-market economy system; (iv) bankruptcy and property laws guarantee legal certainty and stability, and (v) exchange rate conversions are carried out at market rates.

(7) Only importers not related to exporting producers can be sampled. Importers that are related to exporting producers have to fill in Annex I to the questionnaire for these exporting producers. For the definition of a related party, see footnote 3 of Annex II to this notice.

(8) The data provided by unrelated importers may also be used in relation to aspects of this investigation other than the determination of dumping.

(9) A ‘Limited’ document is a document which is considered confidential pursuant to Article 19 of Council Regulation (EC) No 1225/2009 (OJ L 343, 22.12.2009, p. 51) and Article 6 of the WTO Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement). It is also a document protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council (OJ L 145, 31.5.2001, p. 43).

(10) OJ L 8, 12.1.2001, p. 1.

ANNEX I