Notice of initiation of an anti-dumping proceeding concerning imports of paracetamol originating in the United States of America, the People's Republic of China, India and Turkey

(2000/C 134/07)

The Commission has received a complaint pursuant to Article 5 of Council Regulation (EC) No 384/96(1), as last amended by Council Regulation (EC) No 905/98(2) (hereinafter referred to as "the Basic Regulation"), alleging that imports of paracetamol, originating in the United States of America, the People's Republic of China, India and Turkey, are being dumped and are thereby causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 29 March 2000 by the European Council of Chemical Manufacturers' Federations, CEFIC (hereinafter referred to as "the complainant") on behalf of the sole producer in the Community representing 100 % of the Community production of paracetamol.

2. Product

The product allegedly being dumped is paracetamol, also known as acetaminophen (hereinafter referred to as "the product concerned"), currently classifiable within CN code 2924 29 30. This CN code is only given for information.

3. Allegation of dumping

The allegation of dumping in respect of the United States of America and Turkey is based on a comparison of a normal value, established on the basis of domestic prices, with the export prices of the product concerned to the Community.

The allegation of dumping for India is based, in the absence of sufficient sales in the ordinary course of trade in the domestic market, on a comparison of a constructed normal value with the export prices of the product concerned to the Community.

In view of the fact that the normal value for the People's Republic of China will be determined on the basis of the rules set out in Article 2(7) of the Basic Regulation, the complainant has based its allegation of dumping on a comparison of normal value in a market economy third country, namely South Africa, 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.

4. Allegation of injury

The complainant has provided evidence that imports of the product concerned from the United States of America, the People's Republic of China, India and Turkey have increased overall in absolute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported product concerned have, among other consequences, had a negative impact on the market share and the level of prices charged by the Community producer, resulting in substantial adverse effects on the financial situation of the Community industry.

5. Procedure for the determination of dumping and injury

Having determined, after consulting the Advisory Committee, that the complaint has been lodged by or on behalf of the Community industry and that there is sufficient evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation pursuant to Article 5 of the Basic Regulation.

In view of the apparent size and complexity of this proceeding, the Commission may apply sampling techniques, in accordance with Article 17 of the Basic Regulation.

(a) Sampling for investigation of dumping

Applicable only to companies in the People's Republic of China.

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 to the Commission and to provide the following information on their company or companies within 15 days of the date of publication 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 April 1999 to 31 March 2000,

- whether the company intends to claim for an individual margin or market economy status,

- for producers claiming market economy status, the turnover in local currency and the sales volume in tonnes for the product concerned on the domestic market during the period 1 April 1999 to 31 March 2000, and the precise activities of the company with regard to the product concerned,

- the names and the precise activities of all related companies(3) whether directly or indirectly related (i.e. companies with which they have an association or a compensatory arrangement) involved in the production and/or selling (export and/or domestic) of the product concerned, including any related importers in the Community,

- any other relevant information that would assist the Commission in the selection of the sample,

- an indication of whether the companies agree to their inclusion in the sample which implies replying to a questionnaire and accepting an on-the-spot investigation of their responses.

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, exporters and any known associations of exporters/producers named in the complaint.

The Commission may also decide to select a sample of importers. To that effect all importers concerned are hereby requested to make themselves known to the Commission within 15 days of the date of publication of the present notice.

Any other party concerned which wishes to submit any relevant information regarding the selection of the sample is also requested to make itself known to the Commission and to submit the information within 15 days of the date of publication of this notice.

(b) Final selection of the samples

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 sample must reply to a questionnaire and cooperate within the framework of the verification visit.

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.

(c) 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 importers, to any association of exporters/producers and importers named in the complaint and to the authorities of the country concerned.

However questionnaires will only be sent to the exporters/producers from the People's Republic of China once the final selection of the sample has been made.

Producers in the People's Republic of China which submit a request for an individual margin, with a view to the application of Articles 17(3) and 9(6) of the Basic Regulation, have to submit a duly completed questionnaire within the general time limit set in point 7(a) of this notice. However, such parties should be aware that if sampling is applied to producers the Commission may decide not to grant them an individual margin if it would be unduly burdensome and would prevent the timely completion of the investigation. Producers, which submit a request for an individual margin, and importers are invited to contact the Commission forthwith in order to be informed whether or not they are listed in the complaint. In the latter case, they should as soon as possible, but not later than 15 days after publication of this notice in the Official Journal of the European Communities, request a copy of the questionnaire, as all questionnaires have to be completed and reach the Commission in hard copy within the time limit set in point 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, e-mail address, telephone, and fax, and/or telex numbers of the interested party. Alternatively, a request for a questionnaire can be addressed to the national authorities.

(d) 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. This information has to reach the Commission in hard copy form within the time limit set in point 7(a) of this notice.

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

(e) Selection of the market economy third country

In accordance with Article 2(7)(a) of the Basic Regulation, it is envisaged to choose South Africa as an appropriate market economy third country for the purpose of establishing normal value in respect of the People's Republic of China. Interested parties are hereby invited to comment on the appropriateness of this choice within the specific time limit set in point 7(c) of this notice.

(f) Market economy status

For those producers in the People's Republic of China 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. The Commission will send claim forms to all producers in the People's Republic of China who have either been included in the sample or who have requested an individual margin, as well as to the Chinese authorities.

6. Community interest

In accordance with Article 21 of the Basic Regulation and in order that a decision may be reached as to whether, in the event that the allegations of dumping and injury caused thereby are substantiated, the adoption of anti-dumping measures would be in the Community interest, the Community industry, importers, their representative associations, representative users and representative consumer organisations may, provided that they prove that there is an objective link between their activity and the product concerned, within the general time limits set in point 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 limits

(a) General time limit

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

(b) Specific time limit in respect of sampling

All information relevant for the selection of the sample should be submitted to the Commission within 15 days of the date of publication of this notice, given that the Commission intends to consult parties concerned that have expressed their willingness to be included therein on the final selection of the sample within a period of 21 days of the publication of this notice.

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

Parties to the investigation wishing to comment on the appropriateness of South Africa which, as mentioned in point 5(e) of this notice, is envisaged as a market-economy third country for the purpose of establishing normal value in respect of the People's Republic of China, shall file their comments within 10 days of the date of publication of this notice.

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

Duly substantiated claims for market economy status, as mentioned in paragraph 5(f) of this notice, must reach the Commission within 21 days of the date of publication of this notice.

8. Written submissions 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 Trade DG

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

9. Non-cooperation

In cases 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.

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

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

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