Notice of initiation of an expiry and an interim review of the anti-dumping measures applicable to imports of certain grain oriented electrical sheets originating in Russia

(2001/C 53/05)

Following the publication of a notice of impending expiry(1) of the anti-dumping measures in force on imports of certain grain oriented electrical sheets originating in Russia, ("the country concerned"), the Commission has received a request for a review pursuant to Article 11(2) of Commission Decision No 2277/96/ECSC(2) ("the Basic Decision"). Furthermore, the Commission has decided on its own initiative to initiate an interim review pursuant to Article 11(3) limited to the form of the measures.

1. Request for review

The request was lodged on 20 November 2000 by the European Confederation of Iron and Steel Industries (Eurofer) ("the applicant") on behalf of producers representing 100 % of the Community production of certain grain oriented electrical sheets.

2. Product

The product under review is grain oriented cold-rolled sheets and strips of silicon-electrical steel with a width of more than 500 mm originating in Russia ("the product concerned"), currently classifiable within CN codes 7225 11 00 and 7226 11 10. These CN codes are only given for information.

3. Existing measures

The measures currently in force on the product concerned consist of a definitive anti-dumping duty imposed by Decision No 303/96/ECSC(3) by which undertakings for three exporters were also accepted.

4. Grounds for the review

4.1. Grounds for the expiry review

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

With regard to the allegation of continuation of dumping, in view of the provisions of Article 2(7) of the Basic Decision, the applicant established normal value for Russia on the basis of the price in an appropriated market economy country, which is mentioned in paragraph 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 alleged that Russian exports to a number of third countries are made at significantly dumped prices.

Furthermore, the applicant also alleges that the volumes exported to the Community would in all likelihood increase due to the existence of unused capacity, to limitations to export to traditional markets other than the EU (e.g. anti-dumping measures in the People's Republic of China, agreement with the United States to limit exports), and to the existence of well-established distribution channels for the Russian product in the Community.

Concerning injury aspects, it is alleged that in view of the situation of the Community industry, the removal of measures would be likely to lead to a recurrence of injury. It is alleged that Russian imports have continued to be made at prices below those of the Community industry and would remain at this level and that import volumes are also likely to increase.

4.2. Grounds for the expiry review

The Commission has decided on its own initiative to initiate an interim review pursuant to Article 11(3) in order to examine the appropriateness of the form of the measure.

In this respect it should be noted that enforcement problems have been encountered in the monitoring of the undertaking, with consequences on the remedial effect of the measures.

5. Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists to justify the initiation of an expiry and an interim review, the Commission hereby initiates a review in accordance with Article 11(2) and 11(3) of the Basic Decision. The interim review is limited to the form of the measures.

5.1. Procedure for the determination of likelihood of continuation and/or recurrence 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. It will also examine the need for the continuation or removal of the existing measures, as well as the form of the measures.

(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 Russia and 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 which did not cooperate in the investigation leading to the measures subject to the present review 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 paragraph 6(a)(i), given that the time limit set in paragraph 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 paragraph 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 paragraph 6(a)(iii) of this notice.

(c) Selection of the market economy contry

In the previous investigation Brazil was used as an appropriate market economy country for the purpose of establishing normal value in respect of Russia. The Commission envisages using Brazil again for this purpose. Interested parties are hereby invited to comment on the appropriateness of this choice within the specific time limit set in paragraph 6(b) of this notice.

5.2. Procedure for the assessment of Community interest

In accordance with Article 21 of the Basic Decision and in the event that the likelihood of a continuation and/or recurrence 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, may, within the time limits set in paragraph 6(a)(ii) of this notice, make themselves known and provide the Commission with information. The parties which have acted in conformity with the precedent sentence may request a hearing, setting out the particular reasons why they should be heard, within the time limit set in paragraph 6(a)(iii) of this notice.

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 Brazil which, as mentioned in paragraph 5.1(c) of this notice, is envisaged as a market-economy country for the purpose of establishing normal value in respect of Russia. 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 Decision, 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 216, 28.7.2000, p. 2.

(2) OJ L 308, 29.11.1996, p. 11, as last amended by Decision No 1000/99/ECSC (OJ L 122, 12.5.1999, p. 35).

(3) OJ L 42, 20.2.1996, p. 7.