Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of coumarin originating in The People's Republic of China

(2001/C 104/03)

Following the publication of a notice of impending expiry(1) of the anti-dumping measures in force on imports of coumarin originating in The People's Republic of China ("country concerned"), the Commission has received a request for review pursuant to Article 11(2) of Council Regulation (EC) No 384/96(2), as last amended by Council Regulation (EC) No 2238/2000(3) ("the Basic Regulation").

1. Request for review

The request was lodged on 4 January 2001 by the European Chemical Industry Council (CEFIC) ("the applicant") on behalf of the sole producer in the Community representing the totality of the Community production of coumarin.

2. Product

The product under review is coumarin originating in The People's Republic of China ("the product concerned"), currently classifiable within CN code ex 2932 21 00 (Taric code 2932 21 00 10). This CN code is given for information only.

3. Existing measures

The measures currently in force on the product concernd are a definitive anti-dumping duty imposed by Council Regulation (EC) No 600/96 of 25 March 1996(4).

4. Grounds for the review

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

The applicant alleges that the exports from The People's Republic of China to the Communiy have continued to be made at substantial dumping margins.

In view of the provisions of Article 2(7) of the Basic Regulation, the applicant established normal value for The People's Republic of China on the basis of the price in an appropriate market economy country, which is mentioned in point 5.1(c) of this notice. The allegation of continuation of dumping is based on a comparison of normal value, as set out in the preceding sentence, with the export prices of the product concerned when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

With regard to the recurrence of dumping it is also alleged that the exports to other third countries, i.e. the United States of America (where anti-dumping measures are in force) and India, are made at dumped prices.

The applicant further alleges the likelihood of injurious dumping. In this respect the applicant presents evidence that, should measures lapse, the current import level of the product concerned is likely to increase due to the existence of unused capacity in the country concerned.

It is also alleged that the flow of imports of the product concerned is likely to rise due to the measures in force in traditional markets other than the EU (i.e. the United States of America) and to the existence of well-established distribution channels for the Chinese product in the Community. All this can lead to a redirection of Chinese exports to the Community.

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 country concerned would likely lead to a recurrence of injury to the Community industry.

It is alleged that Chinese imports would in all likelihood be made at prices below those of the Community industry and therefore the Community industry would suffer injury in the form of loss of market share, pressure on prices and drop in profitability should measures 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) 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 in The People's Republic of China to any association of exporters/producers, to the 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 country concerned.

In any event, all parties should contact the Commission forthwith by fax in order to find out whether they are listed in the request and if necessary request a questionnaire within the time limit set in point 6(a)(i), given that the time limit set in point 6(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 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.

(c) Selection of the market economy country

In the previous investigations the United States of America was used as an appropriate market economy country for the purpose of establishing normal value in respect of The People's Republic of China. The Commission envisages to use the United States of America again 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(b) 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 of dumping and injury is confirmed, a decision will be reached 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, make themselves known and provide the Commission with information. 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 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 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 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 the United States of America which, as mentioned in point 5.1(c) of this notice, is envisaged as a market-economy country for the purpose of establishing normal value in respect of The People's Republic of China. These comments must reach the Commission within 10 days of the date of publication of this notice in the Official Journal of the European Communities.

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, and/or telex numbers of the interested party.

Commission address for correspondence: European Commission Directorate-General for Trade

Directorates B and C

TERV - 0/13

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

8. Non-cooperation

In cases in which any interested party refuses access to or otherwise does not provide the necessary information within the time limits, 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 271, 22.9.2000, p. 3.

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

(3) OJ L 257, 11.10.2000, p. 2.

(4) OJ L 86, 4.4.1996, p. 1.