Proposal for a COUNCIL REGULATION ( EEC ) imposing a definitive anti­dumping duty on imports of oxalic acid originating in India or China
Date: 1991-11-05
Institutions: European Commission
Subjects: China, India, anti-dumping duty, export price, organic acid

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COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(91) 437  final 

Brussels, 5  November  1991 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

Imposing a definitive ant I-dumping duty on  Imports 
of oxalic acid originating  In  India or  China 

(presented  by  the Commission) 

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EXPLANATORY  MEMORANDUM 

Procedure 

Commission  Regulation  (EEC) No 1472/91  of  29 May  19911  Imposed 
provisional  ant I-dumping duties of 6.5% on  imports of oxalic acid 
originating  in  India and of  20.3% on  those originating  in China. 

The duties were extended  for a period  not exceeding  two months by 
Council  Regulation  2833/91.2 

I I.  Qumolng 

The arguments put  forward  by  the producers/exporters  concerned  were 
not  considered  to provide sufficient  grounds  for a change  In the 
method used  to make a provisional  assessment  of dumping  margins.  The 
provisional  figures are  therefore  confirmed. 

The  Indian producers/exporters  claimed  that  normal  value should  have 
been calculated on  the basis of a weighted monthly  average.  The 
Commission  decided  to allow this request, and  the dumping  margin was 
reduced  to 4,4% for Punjab Chemicals and Pharmaceuticals Ltd and Excel 
Industries Ltd. 

n i.  inlury 

The Commission  also confirms  Its provisional  findings with  regard to 
Injury. 

IV.  Definitive measures 

The Commission  concludes  that  imports of oxalic acid originating  in 
India should  carry an ad valorem  anti-dumping  duty of 4.4% and  those 
originating  In China an ad valorem  duty of  20.3%. 

1 
2 

0J  L 138, 1.6.1991, p.62. 
0J L 272, 28.9.1991, p.2. 

- 2-

The  Commission  is therefore  submitting  to  the  Council  a proposal  for  a 
CounclI  Régulât Ion: 

imposing  a definitive  anti-dumping  duty  on  Imports  of  oxalic  acid 
originating  in  India; 

Imposing  a definitive  ant I-dumping  duty  on  imports  of  oxalic  acid 
originating  in  the  People's  Republic  of  China; 

-  making  definitive  the  collection  of  the  amounts  secured  by  the 

provisional  ant I-dumping  duty  (up  to  the  percentages  Indicated  in 
the  Regulation  imposing  the  definitive  ant I-dumping  duty). 

Proposal  for a 

COMMISSION  REGULATION  (EEC) No  ... 
Of  ... 
Imposing a definitive anti-dumping  duty on  Imports 
of oxalic acid originating  In  India or China 

THE COMMISSION OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the Treaty establishing  the European Economic Community, 

Having  regard  to Council  Regulation  (EEC) No 2423/88 of  11 July  1988 on 
protection against  dumped or subsidized  imports originating  in countries 
not members of  the European  Economic Community,1  and  in particular Article 
12 thereof, 

Having  regard  to the proposal  submitted  by  the Commission  after 
consultations within the Advisory Committee as provided  for by  the above 
Régulât Ion, 

Whereas: 

A.  PROVISIONAL MEASURES 

(1)  Commission Regulation  (EEC) No  1472/912  imposed a provisional  anti 
dumping duty on  Imports  Into the Community of oxalic acid  falling 
within CN code ex 2917 11 00 originating  in  India or China. 

Council  Regulation  (EEC) No 2833/913 extended  that duty  for a period 
not exceeding  two months. 

1 
2 
3 

0J L 209, 2.8.1988, p.1. 
0J L 138, 1.6.1991, p.62. 
0J L 272, 28.9.1991, p.2. 

-2-

B. CONTINUATION OF PROCEEDING 

(2)  Following  Imposition of  the provisional  duty, the parties which  had so 

requested were granted  a hearing by  the Commission.  They also made 
their  views on the provisional  findings known  in writing.  The 
Commission examined  their oral  and written comments. 

(3)  At  their  request, the parties were  informed of  the essential  facts and 
considerations on the basis of which  It was  intended  to recommend  the 
imposition of definitive duties and  the definitive collection of 
provisional  duty.  They were allotted a period  in which  to make 
comments.  Some made use of  this opportunity. 

C. PRODUCT CONSIDERED; LIKE PRODUCTS 

(4)  In the absence of new arguments concerning  the product  considered  and 
Its similarity  to the Community  product, the Council  confirms the 
findings put  forward by the Commission  in recitals 10 and  11 of 
Regulation  (EEC) No 1472/91. 

(5)  (a) Normal  value 

D. DUMPING 

For  the purposes of  the definitive findings, normal  value was 
established using  the same methods used  In the provisional  calculation 
of dumping margins, taking account of new facts and arguments put 
forward by  the parties. 

-3-

(6)  The  Indian exporters claimed  that  normal  value should  have been 

established  on  the basis of a monthly weighted  average  Instead of a 
weighted  average  for  the entire period of  the  Investigation.  In this 
instance, the Commission  considers  that  a monthly  weighted  average 
could  Indeed be used. 

(7)  In the  light of  these considerations, the Commission  will  calculate 

normal  value  for oxalic  acid  from  India on  the basis of  a weighted 
monthly  average and confirms the calculation of normal  value for 
oxalic acid  from China contained  in recital  13 of Regulation  (EEC) No 
1472/91. 

The Council  confirms  these findings. 

(b) Export  price 

(8)  The Chinese exporters wished  the export  prices provisionally 

calculated on  the basis of available  facts, as stipulated  in Article 
7(7)(b) of Regulation  (EEC) No 2423/88, to be determined  using 
Eurostat  statistics  rather  than  the figures contained  In the 
complaint. 

The Commission  takes the view  that  In this case  the figures contained 
In the complaint, which  come  from  traders whose  information has been 
confirmed  by an  importer  which  cooperated  in the  investigation, are 
more suitable  than Eurostat  statistics.  The Commission  observed  that 
Eurostat  Import  figures for  the product  were not  In fact  correct. 

(9)  With  regard  to  imports of oxalic acid  from China,  therefore, and  in 

the absence of comments on  the matter  from  Indian exporters, the 
Council  confirms  the findings put  forward  by  the Commission  In 
recitals  14 and  15 of Regulation  (EEC) No 1472/91. 

(c) Comparison 

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(10) In the absence of new arguments from the Interested parties, the 

Council confirms the findings put forward by the Commission  In recital 
16 of Regulation (EEC) No 1472/91. 

(d) Dumping margins 

(11) 1. India 

On the basis of the new normal value, the definitive dumping margin is 
4,4% for Punjab Chemicals and Pharmaceuticals Ltd. and Excel 
Industrles Ltd. 

2. China 

The Council confirms the observations and findings put forward by the 
Commission  In recital 17 of Regulation (EEC) No 1472/91. 

E. INJURY 

(12) In Its preliminary findings, the Commission considered that the 

Community firm in question had suffered substantial  Injury.  The main 
grounds for this belief were the rapid  increase  in exports, 
undercutting by the exporters concerned on the Community market and 
the consequent decrease in selling prices for the Community 
complainant. 

(a) Volume, market share and export price 

(13) With regard to export volume, the Indian exporters requested that 

calculations be made on the basis not of the accounting data received 
by the Commission  in the replies to Its questions (data verified by 
its Investigators), but on lower Eurostat figures.  This was on the 
grounds that re-export from the Community to third countries might 
have taken place.  The Commission rejected this request, considering 
that  It had no Information confirming this reasoning and that the 
Indian exporters had failed to offer even minimal proof of such 
occurrences. 

-5-

(14) The  Indian and Chinese exporters also challenged  the Commission's 
provisional  findings with regard  to market  share.  However, since 
their  figures were based on  Inaccurate statistics for Community 
consumption  (sales figures for all Community producers and  figures for 
imports of  Indian origin), the Commission confirmed  the observations 
It had put  forward  in recitals 19 and 20 of Regulation  (EEC) No 
1472/91. 

In the absence of other considerations, the Council  confirms the 
findings put  forward by the Commission  In recitals 19 to 22 of 
Regulation  (EEC) No 1472/91. 

(b) Cumulative effect 

(15) The  Indian exporters claimed  that  taking an aggregate of Chinese and 
Indian exports of oxalic acid to the Community was  inappropriate in 
that the economic structures, tax systems, raw materials subsidies and 
manufacturing procedures of  the two countries were different. 

(16) The Chinese exporters, meanwhlle, challenged aggregation of Chinese 

and  Indian exports on the grounds that  they had  followed a different 
sales strategy  from the  Indian exporters, bringing down their exports 
during the first eight months of 1990. 

(17) The Commission took the view that the  Indian exporters' arguments were 

not strictly relevant  to the considérât ions governing aggregation of 
exports from third countries.  It rejected  the Chinese exporters' 
arguments on the grounds that  their conduct was comparable  to that of 
the  Indian exporters for  the  Investigation period as a whole, although 
it had differed  to a degree for a few months. 

-6-

The Commission  therefore upholds  the validity  of  the  reasoning  put 
forward  In recital  23 of  Regulation  (EEC) No 1472/91. 

In the  light of  these considerations,  the Council  confirms  the 
findings put  forward  by  the Commission  In recitals  23 and  24 of 
Regulation  (EEC) No 1472/91. 

(c) The state of  the Community  Industry; conclusions concerning  injury 

(18)  in the absence of  new arguments  from  the  Interested  parties, the 

Council  confirms  the observations  and  findings put  forward  by  the 
Commission  In recitals 25 to 34 of  Regulation  (EEC) No 1472/91. 

F. LINK BETWEEN DUMPING AND  INJURY 

(19) The  Indian exporters disputed  that  their  exports of oxalic  acid  to the 

Community  might  have caused  injury  to the Community  producer 
concerned,  arguing  that  their  share of  the market  was negligible  and 
that  the Community  complainant's  difficulties were caused  by errors of 
management  such  as an  Increase  in production  capacity  and  ill-
considered  Investment  within  the existing  company  and  in the 
establishment  of  a new  company. 

«. 

(20) The Chinese exporters also disputed  causing  Injury, adding  to the 

claim  referred  to above  the argument  that  the Community  complainant's 
difficulties were caused mainly  by  the activity of other  Community 
producers. 

-7-

(21) The Commission pointed out  that  India's market  share was 9.4%, and 

therefore not negligible.  It said that  the  Investment which  had been 
criticised  and  the  increase  in production capacity  had occurred  at a 
time when Community consumption had risen substantially. 
The Commission  stressed  that  the new company's production capacity had 
not been considered  during  the assessment  of  Injury, as  It had not 
begun production during the period of  Investigation. 

(22) With regard  to other Community  producers, the fact  that  the production 

of oxalic acid was only a marginal  activity  for  them, the fact  that 
one of  the producers sold most of  its output  to the other  and  the fact 
that  the prices they charged on  the Community market  were 
significantly  higher  than those of  the complainant  Community  firm  led 
the Commission  to conclude  that  these  firms' activities had not caused 
Injury  to the complainant. 

(23) The Council  therefore confirms  the findings put  forward  by the 

Commission  In recitals 35 to 41 of Regulation  (EEC) No 1472/91. 

G. COMMUNITY  INTEREST 

(24) The  Indian exporters claimed  that  the risk  In  Imposing  anti-dumping 
measures on  their exports of oxalic acid was that  the Community  firm 
would  acquire a monopoly, given  that ant I-dumping measures were 
already applied  to other  countries. 

-8-

Thls argument  seems  to have  little  foundation  considering  the 
complainant's  share of  the Community  market,  the  presence  of  other 
Community  producers  and  the market  penetration  In the Community  of 
imports  from  third  countries. 

(25)  In the  light of  these  considerations,  the Council  confirms  the 
findings put  forward  by  the Commission  in recitals 42  to 44 of 
Regulation  (EEC) No  1472/91. 

H.  DUTY 

(26) The Council  confirms  the provisional  measures  (ad  valorem  ant I-dumping 
duties corresponding  to the dumping  margins  calculated) set  out  in 
recitals  45  to 47 of  Regulation  (EEC) No  1472/91. 

I. UNDERTAKING 

(27) The  Indian  producers/exporters  offered  a price  undertaking.  After 

consultation  this undertaking  was not  considered  acceptable  by  the 
Commission.  The Commission  notified  the producers/exporters  of  the 
reasons  for  this decision. 

J. COLLECTION OF  PROVISIONAL  DUTIES 

(28)  In the  light  of  the dumping  margins  calculated  for  imports  of  oxalic 

acid originating  In  India and  China  and  the degree  of  injury  caused  to 
the Community  firm  In question,  the Council  considers  it  necessary 
that  the  provisional  ant I-dumping  duty  received  be  definitively 
collected  at  a rate corresponding  to  the  definitive  duty  imposed. 

HAS ADOPTED THIS REGULATION: 

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Article 1 

1.  A definitive ant I-dumping duty  is hereby  imposed on  imports of oxalic 

acid  falling within code ex  2917 11 00 of  the Combined  Nomenclature 
and TARIC code 2917 11 00 * 10, originating  In  India or China. 

2. 

The amount of  the duty, based on  the free-at-Community-front 1er price, 
not cleared  through customs, shall be: 

-  4.4% for  imports of oxalic acid originating  in  India, and 

-  20.3% for  imports of oxalic acid originating  in China. 

3.  The provisions  in force concerning  customs duties shall  apply. 

The amounts secured by way of provisional  ant I-dumping duty  Imposed by 
Commission Regulation  (EEC) No 1472/91  shall  be collected at  the rate 
corresponding  to the definitive duty. 

Article  2 

Article  3 

This Regulation shall  enter  into force on  the day  following  Its publication 
In the Official  Journal  of  the European Communities. 

-10-

Thls  Regulation  shall  be  binding  In  its entirety  and  directly  applicable  in 
a 11 Member  States. 

Done  at  Brussels, 

For  the  CounclI 

ISSN 0254-1475 

COM(91) 437 final 

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