Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1338/2002 imposing a definitive countervailing duty on imports of sulphanilic acid originating in India and amending Regulation (EC) No 1339/2002 imposing a definitive anti-dumping duty on imports of sulphanilic acid originating, inter alia, in India.

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The Council, by Regulations (EC) No 1338/2002 and 1339/2002, imposed definitive countervailing and anti-dumping duties on imports of sulphanilic acid originating, inter alia, in India ("Regulations").

2. Imports produced and directly exported (i.e. shipped and invoiced) by the Indian company Kokan Synthetics & Chemicals Pvt. Ltd ("Kokan") to an importing company in the Community were exempted from the countervailing and anti-dumping duties following the acceptance by the Commission of the individual price undertaking offered by Kokan (Decision 2002/611/EC).

3. Kokan advised the Commission that it wished to withdraw its undertaking voluntarily.

4. In view of this, it is necessary to amend the Regulations, namely to repeal Article 1 (3) and Article 2 of both Council Regulation (EC) No 1338/2002 and Council Regulation (EC) No 1339/2002, as well as their corresponding annexes.

5. In parallel, the Commission repeals its Decision 2002/611//EC accepting the undertaking offered by Kokan.

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1338/2002 imposing a definitive countervailing duty on imports of sulphanilic acid originating in India and amending Regulation (EC) No 1339/2002 imposing a definitive anti-dumping duty on imports of sulphanilic acid originating, inter alia, in India

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community [1], and in particular Article 8 and 9 thereof,

[1] OJ L 56, 6.3.1996, p. 1., as last amended by Regulation (EC) No 1972/2002, OJ L 305, 7.11.2002, p. 1.

Having regard to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidized imports from countries not members of the European Community [2], and in particular Article 13 and 15 thereof,

[2] OJ L 288, 21.10.1997, p. 1, as last amended by Regulation (EC) 1973/2002, OJ L 305, 7.11.2002, p. 4.

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

A. PREVIOUS PROCEDURE

(1) In July 2002, the Council, by Regulation (EC) No 1338/2002 [3], imposed definitive countervailing duties on imports of sulphanilic acid originating in India. On the same day, the Council, by Regulation (EC) No 1339/2002 [4], imposed definitive anti-dumping duties on imports of sulphanilic acid originating in the People's Republic of China and India.

[3] OJ L 196, 25.7.2002, p. 1.

[4] OJ L 196, 25.7.2002, p. 11, as last amended by Regulation (EC) No 236/2004, OJ L 40, 12.2.2004, p.17.

(2) Within the framework of this proceedings, the Commission, by Decision 2002/611/EC of 12 July 2002 [5], accepted a price undertaking offered by the Indian company Kokan Synthetics & Chemicals Pvt. Ltd. (the "Company").

[5] OJ L 196, 25.7.2002, p. 36.

(3) Imports of sulphanilic acid originating in India, exported to the Community by the Company (TARIC additional code A 398), were exempted from the countervailing and anti-dumping duties by Article 2 of Council Regulations (EC) No 1338/2002 and (EC) No 1339/2002.

B. VOLUNTARY WITHDRAWAL OF AN UNDERTAKING

(4) Kokan Synthetics & Chemicals Pvt. Ltd. advised the Commission in December 2003 that it wished to withdraw its undertaking voluntarily.

(5) Accordingly, Commission Decision 2002/611/EC has been repealed.

C. DEFINITIVE COUNTERVAILING AND ANTI-DUMPING DUTIES

(6) The investigation which led to the undertaking offered by the Company was concluded by (i) a final determination as to subsidization and injury by Council Regulation (EC) No 1338/2002; and (ii) a final determination as to dumping and injury by Council Regulation (EC) No 1339/2002.

(7) Pursuant to Article 13(9) of Council Regulation (EC) No 2026/97 and Article 8(9) of Council Regulation (EC) No 384/96, the rate of the countervailing and anti-dumping duty to be imposed on imports produced and exported by the Company must be based on the facts established within the context of the investigations which led to the undertaking. In this regard, in view of recital (67) of Council Regulation (EC) No 1338/2002 and recital (46) of Council Regulation (EC) 1339/2002, it is considered appropriate that the definitive countervailing duty rate be set at a level of 7,1 % ad valorem and the definitive anti-dumping duty rate at the level of 18,3 % ad valorem.

D. AMENDMENT OF REGULATIONS (EC) No 1338/2002 and 1339/2002

(8) In view of the above, Article 1(3) and Article 2 of Council Regulation (EC) No 1338/2002, as well as Article 1(3) and Article 2 of Council Regulation (EC) No 1339/2002 and their corresponding annexes should be repealed accordingly.

HAS ADOPTED THIS REGULATION:

Article 1

Article 1(3) and Article 2 of Council Regulation (EC) No 1338/2002 and its corresponding annex are hereby repealed.

Article 2

Article 1(3) and Article 2 of Council Regulation (EC) No 1339/2002 and its corresponding annex are hereby repealed.

Article 3

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President