4

The relevant points of the factual framework are set out as follows in paragraphs 4 to 6 and 16 of the judgment under appeal: ‘4 On 11 April 2005, the Commission of the European Communities adopted Regulation (EC) No 552/2005 imposing a provisional anti-dumping duty on imports of certain magnesia bricks originating in the People’s Republic of China (OJ 2005 L 93, p. 6) which, among other things, imposed a provisional anti-dumping duty of 66.1% on imports into the European Community of certain magnesia bricks produced by [Dashiqiao]. 5 By Council Regulation (EC) No 1659/2005 of 6 October 2005 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain magnesia bricks originating in the People’s Republic of China (OJ 2005 L 267, p. 1), the Council of the European Union imposed a definitive anti-dumping duty of 27.7% on imports into the European Community of certain magnesia bricks produced by [Dashiqiao]. 6 At the request of [Dashiqiao], Regulation No 1659/2005 was the subject of a partial interim review under Article 11(3) of the [b]asic [r]egulation … . On conclusion of that review, the Council adopted [the contested regulation], by which the anti‑dumping duty applicable to certain imports of magnesia bricks produced by [Dashiqiao] was reduced to a rate of 14.4%. … 16 Finally, in recitals 29 to 32 to the contested regulation, the following is stated in paragraph 4, under the heading “Comparison”: “(29) The average normal value and the average export price for each type of the product concerned were compared on an ex-works basis and at the same level of trade and at the same level of indirect taxation. In order to ensure a fair comparison between normal value and export price, account was taken, in accordance with Article 2(10) of the [b]asic [r]egulation, of differences in factors which were claimed and demonstrated to affect prices and price comparability. For this purpose, adjustments for transport costs, insurance, handling and loading charges, credit costs, and actual anti-dumping duties paid were made where applicable and justified. (30) The investigation has established that the VAT paid on export sales was not refunded (not even partially, which was the case in the original investigation). In the disclosure which was provided to [Dashiqiao] pursuant to Article 20 of the [b]asic [r]egulation, it was therefore indicated that both the export price and the normal value would be established on a VAT paid or payable basis. [Dashiqiao] argues that this approach would be unlawful. Regarding its arguments, the following can be noted. (31) Firstly, regarding the argument that in the original investigation another methodology was used (i.e. the deduction of VAT both from the normal value and the export price), it must be emphasised that the circumstances which were applicable during the review investigation period (RIP) were not the same as those applicable during the original investigation period. Whereas during the original investigation period, as stated above, VAT was partially refunded, which necessitated an adjustment pursuant to Article 2(10) [of the basic regulation], during the RIP, no VAT on export sales was refunded. Therefore, no adjustment in respect of VAT, neither to the export price nor to normal value, was necessary. Even if this could be qualified as a change in methodology, it [would be] justified under Article 11(9) of the [b]asic [r]egulation since the circumstances have changed. (32) The second argument which [Dashiqiao] makes is that the method used in this review would artificially inflate the dumping margin. This argument cannot be accepted. In addition, the method used is neutral. Indeed it has the same effect, also if, for instance for certain products or transactions, a company sells to the Community at an export price which does not result in dumping. In other words, even assuming that the inclusion of VAT on both sides of the equation would increase the difference between the two elements, that would also be the case for those models for which there was no dumping.”’