COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 19 12.1995 
COM<95) 738 final 
Proposal for a 
COUNCIL REGULATION (EC) 
imposing a definitive anti-dumping duty on imports of refractory chamottes 
originating in the People's Republic of China 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. By Regulation (EC) No 1878/95 of 28 July 1995», the Commission imposed a 
• provisional anti-dumping duty on imports into the Community of refractory 
chamottes originating in the People's Republic of China, falling within CN codes 
ex 2507 and 2508. 
2. By Council Regulation (EC) No 2735Z952 , the Council extended the validity of 
this duty for a period of two months. 
3. Upon disclosure of the Commission's provisional findings the complainant and 
two companies of the Community user industry made their views known in 
writing. A company of the user industry requested and was granted a hearing by 
the Commission. The Commission continued to seek and verify all the 
information it deemed necessary for its definitive findings. 
4. ' The parties were informed of the essential facts and considerations on the basis of 
which it was intended to recommend the imposition of a definitive anti-dumping 
duty and the collection of amounts secured by way of the provisional duty. The 
parties were also granted a reasonable period within which to make 
representations subsequent to the disclosures. 
5. The parties' comments were considered and, where appropriate, taken into 
account. 
1 OJ. No L 179,-29.7.1995, p. 56 
2 OJ. No L 285,29.11.1995, p. 1 
A 
6. It is considered that definitive anti-dumping measures should be imposed against 
the imports into the Community of Chinese refractory chamottes, in the form of a 
variable anti-dumping duty, based on a minimum price of ECU 75, OF 
Community frontier, duty unpaid, per tonne. In view of the dumping margin 
established and the injury caused to the Community industry, it is considered 
necessary that the amounts secured by way of the provisional anti-dumping duty, 
should be definitively collected. 
7. It is therefore proposed that the Council adopts the draft Regulation annexed 
imposing a definitive anti-dumping duty on imports of refractory chamottes 
originating in the People's Republic of China. 
Jb> 
COUNCIL REGULATION (EC) No... 
imposing a definitive anti-dumping duty on imports of refractory chamottes 
originating in the People's Republic of China 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EC) No 3283/94 of 22 December 19941 on 
protection 
against dumped imports from countries not members of the European Community, as last 
amended by Council Regulation (EC) No 1251/952, and in particular Article 23 thereof, 
Having regard to Council Regulation (EC) No 2423/88 of 11 July 1988 on protection 
against dumped or subsidised imports from countries not members of the European 
Economic Community3, as last amended by Council Regulation (EC) No 522Z944, and in 
particular Article 12 thereof, 
Having regard to the proposal submitted by the Commission after consultating the 
Advisory Committee, 
Whereas: 
1 OJ No L 349,31.12.1994, p. 1 
2 OJ No L 122,2.6.1995, p.l 
3 OJ No L 209,2.8.1988, p. 1 
4OJNoL66,10.3.1994, p. 10 w 
AL 
PROVISIONAL MEASURES 
(1) By Regulation (EC) No 1878/95 (hereafter "the provisional duty Regulation")*, the 
Commission imposed a provisional anti-dumping duty on imports into the 
Community of refractory chamottes (hereafter "chamottes" or "product concerned") 
originating in the People's Republic of China, falling within CN codes ex 2507 and 
2508. 
(2) By Regulation (EC) No 2735/956, the Council extended the validity of these duties 
for a period of two months. 
SUBSEQUENT PROCEDURE 
(3) Following the imposition of the provisional anti-dumping duty, Argiles & Minéraux 
A.G.S., the complainant Community producer, and two companies of the Community 
user industry made their views known in writing. A company of the user industry 
requested and was granted a hearing by me Commission. 
(4) The Commission continued to seek and verify all information it deemed necessary for 
its definitive findings. The parties were informed of the essential facts and 
considerations on the basis of which it was intended to recommend the imposition of 
a definitive anti-dumping duty and the collection of amounts secured by way of the 
provisional duty. The parties were also granted a reasonable period within which to 
make representations subsequent to the disclosures. 
(5) The parties' comments were considered and, where appropriate, taken into account 
5 OJ No L 179,29.7.95, p. 56 
6 OJ No L 285,29.11.1995, p. 1 
PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT 
(6) After publication of the provisional duty Regulation, a company of the Community 
refractory industry (user industry) raised the argument that Chinese chamottes, though 
comparable with the product concerned produced by the main Community producer 
or a large producer in the United States (which was chosen as the "analogue country" 
for the determination of normal value, see recitals 11 - 14 of the provisional duty 
Regulation) in terms of its chemical characteristics, could not be compared with these 
products as to the end-use because of the inferior calcination of Chinese chamottes. 
The company has supported its argument by pointing to the allegedly inferior quality 
of refractory products made from Chinese chamottes when burned at high 
temperatures, i.e. at temperatures of 1450 °C and above. In order to substantiate this 
allegation, the company submitted two studies it had carried out in order to examine 
the usage at high temperatures of the product concemed of different origins. As a 
result, both studies concluded that Chinese chamottes could, like the other chamottes 
being subject to the test, be used at temperatures of up to 1400 °C. However, for use 
at temperatures of 1450 °C and above, only chamottes of Israelian origin or chamottes 
produced by one U.S. company or produced by the complainant could be used, as the 
study stated, without considerable disadvantages. One of the studies furthermore 
recommended that, for a particular kind of use within high temperature application, 
the use of chamottes produced by one U.S. producer should be preferred from all the 
others subject to the test. 
(7) These arguments which had already been raised prior to the provisional determination 
(see recitals 9 and 10 of the provisional duty Regulation), have now been supported 
by evidence. It remains however, as the Commission has established during its 
investigation, that chamottes of different origins and from different producers cannot, 
from a technical point of view, be absolutely identical to each other, with regard to 
their chemical and physical specifications, due to natural chemical differences in. the 
raw material and different burning techniques. This entails that chamottes of certain 
origin or produced by certain manufacturers may show advantages or disadvantages 
when used for particular applications. It should also be noted that contradictory 
opinions exist with regard to the quality of the Chinese chamottes (see recitals 9 and 
10 of the provisional duty Regulation). Despite such differences in quality, however, 
there is only one market on which these products compete and, as the Commission 
has established, the product concerned of Chinese origin is, in general, used in the 
same applications as chamottes of other origins and has, overall, the chemical and 
physical characteristics defined for the product under consideration. 
(8) Therefore, the findings set out in recital 10 of the provisional duty Regulation, that 
the products imported from the People's Republic of China, those produced in the 
analogue country and those produced by the Community industry are considered to be 
like products, are hereby confirmed. 
DUMPING 
Normal value 
(9) A company of the Community user industry argued that the information obtained 
from one company in the analogue country appeared not to be credible because the 
U.S. producer concerned was related to the complainant. The company did not further 
• substantiate its allegation, in particular it did not point out in which respect it 
presumed the information in question to be unreliable. 
(10) It was established during the investigation that one of the two producers in the 
analogue country which cooperated in this proceeding, and on whose information the 
determination of normal value was based, belongs to the same group as the 
complainant. The Commission services obtained from this, producer, inter alia, 
specific information on sales prices of the product concerned charged to unrelated 
customers in the United States. This information was used for determining normal 
value together with the information received from another producer in thé United 
States which cooperated in this proceeding and which was found not to be related to 
the complainant. The sales data submitted by the company in question was verified by 
the Commission. It was found that this company sold substantial quantities of the 
product concerned on the domestic market and that the sales were made in the 
ordinary course of trade. It was carefully checked whether the relationship in question 
had any bearing on costs of production and, consequently, on profitability of the U.S. 
producer concerned. No indication was found that costs of production, profitability or 
sales to unrelated customers were influenced by the relationship between this 
company and the complainant. 
(11) In the light of the foregoing, it is considered that the information in question can 
be used for determining normal value, an approach confirmed by the judgement of the 
Court of First Instance in case T-164/94, Ferchimex S.A. v. Council7. 
(12) Therefore, and in the absence of any further new arguments regarding normal 
value, the findings laid down in recitals 11 to 14 of the provisional duty Regulation 
are hereby confirmed. 
Export price 
(13) In the absence of any new arguments, the findings laid down in recitals 15 and 16 
of the provisional duty Regulation concerning the determination of the export price 
are hereby confirmed. 
Comparison 
(14) As already pointed out in recital 3 above, one company of the Community user 
industry argued that the product concerned of Chinese origin was inferior to, inter 
alia, that of a producer in the analogue country which cooperated in this proceeding. 
The user company did not further substantiate to what extent this alleged inferiority of 
Chinese chamottes had an impact on the import prices. 
7 Judgement of 28th September 1995. Not yet reported. 
(15) The Commission had established in its provisional findings (see recital 17 of the 
provisional duty Regulation) that, for comparison purposes, an adjustment had to be 
made in order to take account of certain inferior physical characteristics of Chinese 
chamottes. The Commission found that the adjustment could be quantified, in 
absence of any other available information, by the level of the price difference found 
between chamottes of different alumina contents sold on the market of the analogue 
country in the investigation period. Since the argument raised by the user company 
did not give any indication that an adjustment different from that made for the 
purpose of the provisional findings should be applied, and in the absence of any other 
new argument, this finding is hereby confirmed. 
(16) In the light of the foregoing, and in the absence of any further new arguments, the 
findings set out in recital 17 of the provisional duty Regulation concerning 
comparison are hereby confirmed. 
Dumping margin , 
(17) Since, finally, the determination of the dumping margin remains unchanged, the 
findings set out in recital 18 of the provisional duty Regulation are hereby confirmed. 
The dumping margin is thus definitively determined at 28.4 % of the free-at-
Community-frontier price, before duty. 
COMMUNITY INDUSTRY 
(18) In the absence of any new arguments, the findings set out in recital 19 of the 
provisional duty Regulation concerning the definition of the Community industry are 
hereby confirmed. 
INJURY 
(19) No new arguments were made with regard to the injury findings set out in recital 
30 of the provisional duty Regulation. They are, therefore, hereby confirmed. 
CAUSATION OF INJURY 
(20) In the absence of any new arguments, the findings with regard to the causal link 
between dumped imports and the material injury suffered by the Community industry, 
set out in recital 34 of the provisional duty Regulation, are hereby confirmed. 
COMMUNITY INTEREST 
(21) Two companies of the Community user industry argued that the imposition of 
anti-dumping measures against imports of Chinese chamottes, which would lead to a 
price increase of this basic material, would subsequently result in a price increase for 
refractory products and thus to a deterioration of the industry's sales on the 
Community market, where it competes with suppliers from non-Community 
countries, and on export markets. Such decrease of sales revenue, and consequently of 
profit, would have to be compensated by a decrease in the workforce of the user 
industry which would be more significant than the number of employees still 
maintained in the chamottes industry. It was further argued that the imposition of 
measures would lead to a deterioration of the trade relationship between the 
Community industry and the People's Republic of China in general, and the potential 
damage for the Community economy as a whole would be more significant than the 
remedial effect for the chamottes industry. One company claimed also that the price 
increase for Chinese chamottes, due to anti-dumping measures, would result in a 
monopolistic position of the Community producers. 
The arguments concerning the effect of anti-dumping measures on sales were further 
substantiated by one user company which pointed out that the direct impact of the 
potential price increase for Chinese chamottes, as a result of the imposition of an anti­
dumping duty based on a minimum-price of 75 ECU/tonne (OF Community 
frontier), on its sales prices would be an increase of around 1.4 %. This user company 
stated that a variable duty based on a minimum-price of 75 ECU would lead to a 
relatively modest price increase for Chinese chamottes which, though disturbing, 
would not have a seriously damaging effect on its business. The company thus 
confirmed, in effect, the provisional findings set out in recital 38 of the provisonal 
duty Regulation. 
In view of the foregoing, the Commission considered the following: 
(22) The purpose of anti-dumping measures is to jremedy unfair trading practices 
which have an injurious effect on a Community industry. Such a remedy should result 
in the re-establishment of a fair competitive situation which, as such, is in the interest 
of the Community. In this proceeding, the investigation has shown that the 
Community industry was suffering material injury which, without a remedy, would 
threaten its viability. On the other hand, the imposition of anti-dumping measures 
would probably result in a price increase which would affect the user industry for 
which chamottes are a basic material. On balance, in view of the extent to which the 
Community industry was injured, and taking account of the very modest impact of a 
variable duty, based on a minimum-price of 75 ECU/tonne (CIF Community frontier), 
on the prices for Chinese chamottes, and with regard to the very limited effect of the 
measure on the sales prices of the user industry, the Commission considers that the 
disadvantage to the user industry is not sufficient to deny the Community industry 
protection against dumped imports of Chinese chamottes. 
(23) The Community pursues a policy which aims at increasing its economic links 
with the People's Republic of China. However, it expects the Chinese producers and 
exporters to operate on the Community market in accordance with .the principles of 
fair trade. Therefore, there is no contradiction beween this policy and the defence of 
the Community industry against unfair trade practices. Moreover, it should be noted 
that the exports of chamottes to the Community represent only a very small fraction 
of the total Chinese exports to the Community and the fact that neither the Chinese 
producers and exporters nor the authorities of the People's Republic of China have 
cooperated in this proceeding can also be seen as an indication that the chamottes 
exports to the Community is not a priority issue for these parties. It is therefore 
considered to be unrealistic to assume that anti-dumping measures imposed to restore 
fair trade in this market sector will have a significant impact on the trade relationship 
between the Community industry and the People's Republic of China. 
10 
(24) Lastly, the argument that the imposition of anti-dumping measures might lead to a 
monopolistic position of the Community industry is considered to be unfounded. The 
measures will have the effect of maintaining the number of competing suppliers of 
chamottes on the Community market because they will ensure the continued presence 
of the Community producers together with exporters from other countries, e.g. the 
United States and the Czech Republic, and the modest increase in import prices for 
Chinese chamottes resulting from the imposition of measures will also permit the 
continued presence of the Chinese exporters. 
(25) Therefore, in the Ught of the above and in absence of any other new arguments, it 
is confirmed that the imposition of measures against imports of Chinese chamottes is 
in the Community interest 
DUTY 
(26) In the absence of any new arguments, the findings set out in recital 36 to 38 of the 
provisional duty Regulation, with regard to the level and type of thé measures, are 
hereby confirmed. Therefore, definitive anti-dumping measures should be imposed 
against the imports into the Community of Chinese chamottes, in the form of a 
variable anti-dumping duty, based on a minimum price of ECU 75 CIF Community 
frontier, duty unpaid, per tonne. 
COLLECTION OF THE PROVISIONAL DUTIES 
(27) In view of the dumping margins estabUshed and the injury caused to the 
Community industry, it is considered necessary that the amounts secured by way of 
the provisional anti-dumping duty, should be definitively collected. 
11 
HAS ADOPTED THIS REGULATION: 
Article 1 
(1) A definitive anti-dumping duty is hereby imposed on imports of unprocessed (not 
ground or in powder form) refractory chamottes falling within CN code ex 2507 and 
ex 2508 (Taric codes: 2507 00 20*10, 2507 00 80*10, 2508 10 00*10, 2508 20 
00*10, 
2508 30 00*10, 2508 40 00*10, 2508 50 00*10, 2508 60 00*10, 2508 70 10*10 and 
2508 70 90* 10) and originating in the People's RepubUc of China. 
(2) The amount of duty shaU be the difference between the price of ECU 75, per tonne, 
and the net free-at-Community frontier price, per tonne, if the latter price is lower. 
(3) For the purpose of calculating the duty payable, the minimum-price shall be 
converted into the relevant national currency at the exchange rate estabUshed in the 
same way as that used for a calculation of customs value. 
(4) Unless otherwise specified, the provisions in force concemig customs duties shall 
apply. 
12 
Article 2 
(1) The amounts secured by way of the provisional anti-dumping duty on imports of 
unprocessed refractory chamottes originating in the People's RepubUc of China 
pursuant to Commission Regulation (EC) No 1878/95 shall be definitively collected. 
(2) The provisions of Article 1 (4) shaU also apply to the definitive coUection of the 
amounts secured by way of the provisional anti-dumping duty. 
Article 3 
This Regulation shaU enter into force on the day foUowing its publication in the 
Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly appUcable in all Member 
States. 
Done at Brussels, 
For the Council 
The President 
13 
ISSN 0254-1475 
COM(95) 738 final 
DOCUMENTS 
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ISBN 92-77-98802-9 
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