Commission Regulation (EC) No 1683/1999 of 28 July 1999 initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed by Council Regulation (EC) No 584/96 on imports of certain tube and pipe fittings of iron or steel originating in the People's Republic of China by imports of the same tube and pipe fittings of iron or steel transhipped through Taiwan, and making such imports subject to registration
Date: 1999-07-28
Institutions: European Commission
Subjects: China, EU control, Taiwan, anti-dumping measure, import, piping

L 199/26

EN

Official Journal of the European Communities

30. 7. 1999

COMMISSION REGULATION (EC) No 1683/1999

of 28 July 1999

initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed
by Council Regulation (EC) No 584/96 on imports of certain tube and pipe fittings of iron or steel
originating in the People's Republic of China by imports of the same tube and pipe fittings of iron
or steel transhipped through Taiwan, and making such imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

C. PRODUCT

Having regard to the Treaty establishing the European
Community,

(3)

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), as last
amended by Regulation (EC) No 905/98 (2) and in particular
Articles 13(3) and 14(5) thereof,

After having consulted the Advisory Committee,

The product concerned by the allegation of circumven-
tion is tube and pipe fittings (other than cast fittings,
flanges and threaded fittings), of
(not
including stainless steel), with a greatest external diam-
eter not exceeding 609,6 mm, of a kind used for butt-
welding or other purposes, currently classifiable within
ex 7307 93 19,
ex 7307 93 11,
CN
ex 7307 99 30 and ex 7307 99 90. These codes are
given for information only.

iron or steel

codes

Whereas:

D. EVIDENCE

A. REQUEST

(1)

The Commission has received a request pursuant to
Article 13(3) of Regulation (EC) No 384/96 (hereinafter
referred to as ‘the Basic Regulation’) to investigate the
alleged circumvention of
the anti-dumping measures
imposed by Council Regulation (EC) No 584/96 (3) on
imports of certain tube and pipe fittings of iron or steel
(hereinafter referred to as ‘tube and pipe fittings’) origin-
ating in the People's Republic of China (hereinafter
referred to as ‘the PRC’). According to the request, the
aforementioned anti-dumping measures are allegedly
circumvented by imports of the same tube and pipe
fittings
transhipped, without undergoing substantial
transformation, through Taiwan. Furthermore, a request
was made to make these imports subject to registration
by the Customs authorities pursuant to Article 14(5) of
the Basic Regulation and, where justified, to propose to
the Council the extension of the above anti-dumping
measures to these imports.

B. APPLICANT

(2)

The request has been lodged on 11 June 1999 by the
Defence Committee of the EEC steel butt-welding fittings
industry on behalf of producers representing approxi-
mately 90 % of the Community production of tube and
pipe fittings.

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 128, 30.4.1998, p. 18.
(3) OJ L 84, 3.4.1996, p. 1.

(4)

The request contains sufficient prima facie evidence in
accordance with the requirements of Article 13 of the
Basic Regulation, that the anti-dumping measures on
imports of tube and pipe fittings of iron or steel origin-
ating in the PRC are being circumvented by imports of
the same tube and pipe fittings transhipped through
Taiwan.

(5)

The evidence submitted is as follows:

(a) The request shows that a clear change in the pattern
of
trade between the PRC, Taiwan and the
Community has taken place, following imposition of
provisional measures in 1995 and definitive meas-
ures in 1996. Volumes of imports originating in the
PRC, recorded under CN codes within which the
tube and pipe fitting are classified, have decreased
from 3 941 tonnes in 1995 to 503 tonnes in 1996,
i.e. a total decrease by
and 283 tonnes in 1998,
93 % or 3 658 tonnes. Concomitantly,
imports of
the same product from Taiwan have increased from
1 442 tonnes in 1995 to 6 920 tonnes in 1996, and
5 321 tonnes in 1998, i.e. a total increase over the
period by 269 %, or 3 879 tonnes. The total
decrease of Chinese imports (3 658 tonnes) nearly
exactly corresponds to the total increase of Taiwa-
nese imports (3 879 tonnes).
This change in the pattern of trade is alleged to stem
from a transhipment of Chinese tube and pipe
fittings via Taiwan, where they undergo none or
minor modification, for which there is insufficient
due course or economic justification other than the
existence of the anti-dumping duty of 58,6 % on
tube and pipe fitting originating in the PRC.

30. 7. 1999

EN

Official Journal of the European Communities

L 199/27

(b) Furthermore, the request contains sufficient prima
facie evidence that the remedial effects of the existing
anti-dumping duties on tube and pipe fittings are
being undermined in terms of quantities and prices.
Indeed,
imports of the product subject to invest-
igation consigned from Taiwan have replaced those
previously imported from the PRC in terms of
quantities; in addition, while prices of imports from
the PRC have remained more or less stable over the
period 1995 to 1998, prices of
from
Taiwan have decreased by 26 % and have almost
reached the level of the Chinese export prices prior
to the imposition of measures.

imports

(c) Finally,

the request contains sufficient prima facie
evidence which shows that dumping is taking place
in relation to the normal value previously estab-
lished.

E. PROCEDURE

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant to Article 13 of the Basic
Regulation and to make imports from Taiwan of tube
and pipe fittings subject to registration, in accordance
with Article 14(5) of the said Regulation.

(11)

(12)

(13)

(i) Questionnaires

In order to obtain the information it deems necessary
for its investigation, the Commission will send question-
naires to Taiwanese exporting producers and traders
named in the request. Information, as appropriate, may
also be sought from the Community industry.

(14)

Other interested parties should request a questionnaire
from the Commission within 15 days from publication
of this Regulation in the Official Journal of the European
Communities. Any request for questionnaires must be
made in writing to the address mentioned below and
should indicate the name, address,
fax
numbers and E-Mail address of the requesting party.

telephone,

(6)

(7)

(8)

this certificate requires the prior
Since the issue of
authorisation of the Community institutions, requests
for such authorisations should be addressed by inter-
ested importers to the Commission as early as possible
in the course of the investigation so that they may be
considered on the basis of a thorough appraisal of their
merits.

F. REGISTRATION

to Article 14(5) of

the Basic Regulation
Pursuant
imports of
the product concerned should be made
subject to registration in order to ensure that, should the
investigation result in findings of circumvention, anti-
dumping duties can be levied retroactively from the date
of the initiation of this investigation on tube and pipe
fittings transhipped through Taiwan.

G. TIME LIMIT

In the interest of sound administration, a period of 40
days from the date of publication of this Regulation in
the Official Journal of the European Communities shall be
fixed within which interested parties, provided they can
show that they are likely to be affected by the results of
the investigation, may make their views known in
writing. The same period shall apply for interested
parties who wish to make a written request for a hearing
showing that
there are particular reasons why they
should be heard.

H. NON-COOPERATION

In cases in which any interested party refuses access to
or does not provide the necessary information within
the time limits, or significantly impedes the invest-
igation, provisional or final findings, affirmative or nega-
tive, 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 facts available,

(9)

The authorities of the PRC as well as of Taiwan will be
notified of
the investigation and
provided with a copy of the request.

the initiation of

HAS ADOPTED THIS REGULATION:

Article 1

(ii) Certificates of non-circumvention

(10)

In accordance with Article 13(4) of the Basic Regulation,
certificates exempting the imports of
the product
concerned from registration or measures may be issued
by the Customs
the
importation does not constitute circumvention.

to importers

authorities

if

imports

concerning

An investigation, pursuant to Article 13(3) of Regulation (EC)
No 384/96,
into the Community
consigned from Taiwan of tube and pipe fittings (other than
cast fittings, flanges and threaded fittings), of iron or steel (not
including stainless steel), with a greatest external diameter not
exceeding 609,6 mm, of a kind used for butt-welding or other
purposes,
ex 7307 93 11,
ex 7307 93 19, ex 7307 99 30 and ex 7307 99 90, is hereby
initiated.

falling within

CN codes

L 199/28

EN

Official Journal of the European Communities

30. 7. 1999

Article 2

steps

The Customs authorities are hereby directed, pursuant
to
Articles 13(3) and 14(5) of Regulation (EC) No 384/96, to take
the appropriate
into the
to register
Community consigned from Taiwan of certain tube and pipe
falling within the CN codes
fittings of
ex 7307 93 11,
and
ex 7307 99 30
ex 7307 99 90, Taric codes 7307 93 11 90, 7307 93 19 90,
7307 99 30 91 and 7307 99 90 91.

ex 7307 93 19,

iron or

imports

steel

the

Registration shall, pursuant to Article 14(5) of the Regulation
(EC) No 384/96, expire nine months following the date of
entry into force of this Regulation.

Imports shall not be subject to registration where they are
accompanied by a Customs certificate issued in accordance
with Article 13(4) of Regulation (EC) No 384/96.

Article 3

1.
Interested parties, if their representations are to be taken
into account during the investigation, must make themselves
known, present their views in writing and submit information,
unless otherwise specified, within 40 days from the date of the
the
publication of this Regulation in the Official

Journal of

European Communities. Interested parties may also apply to be
heard by the Commission within the same time limit.

2.
Questionnaires should be requested from the Commis-
sion within 15 days from publication of this Regulation in the
Official Journal of the European Communities.

Any information relating to the matter, any request for a
3.
hearing or for a questionnaire as well as any request
for
authorisation of certificates of noncircumvention should be
sent to the following address:

European Commission
Directorate-General I
External Relations: Commercial Policy and Relations with
North America, The Far East, Australia and New Zealand
Directorates C and E
DM 24 - 8/37
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.

Article 4

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

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

Done at Brussels, 28 July 1999.

For the Commission

Leon BRITTAN

Vice-President