Council Regulation (EC) No 2722/1999 of 17 December 1999 imposing a definitive anti-dumping duty on imports of furfuraldehyde originating in the People's Republic of China
Date: 1999-12-17
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, cereal product, chemical industry, import, oil industry

22. 12. 1999

EN

Official Journal of the European Communities

L 328/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2722/1999

of 17 December 1999

imposing a definitive anti-dumping duty on imports of furfuraldehyde originating in the People's
Republic of China

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 9 thereof,

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

Whereas:

A. PROCEDURE

(1)

(2)

1. Previous investigation

In January 1995, the Council, by Regulation (EC) No
95/95 (2),
imposed a definitive anti-dumping duty on
imports of
furfuraldehyde originating in the People's
Republic of China (hereafter referred to as the ‘PRC’).
The amount of duty applicable was ECU 352 per tonne.

2. Request for a review

the measures, pursuant

A Chinese exporter, the China National Chemical Import
and Export Corp. (hereafter ‘Sinochem’), lodged a request
for an interim review of
to
Article 11(3) of the Regulation (EC) No 384/96 (here-
after referred to as the Basic Regulation) on 5 July 1996.
The grounds for the review application were based on
the allegations that due to the increase in prices of
imports originating in the PRC an anti-dumping duty
was no longer necessary to offset dumping; that the
volume of exports to the Community by the applicant
was low; and that a substantial change in the structure
in the Community industry had occurred as a result of
the accession of Austria with the consequent appearance
of a new Community producer, which improved the
overall situation of the Community industry.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 905/98 (OJ L 128, 30.4.1998, p. 18).

(2) OJ L 15, 21.1.1995, p. 11.

On the basis of the above elements, the Commission
considered that sufficient evidence existed for the initia-
tion of an interim review, in respect of dumping and
injury as well as Community interest.

In May 1997 the Commission, therefore, announced by
a notice (hereafter referred to as ‘notice of initiation’)
published in the Official Journal of the European Communi-
ties (3) the initiation of an interim review with regard to
the measures on imports of furfuraldehyde originating in
the PRC and commenced an investigation.

3. Present investigation

The Commission officially advised the producers in the
Community, producers/exporters,
importers and user
industries known to be concerned and their repres-
entative associations, as well as the representatives of the
exporting country. All parties directly concerned were
given the opportunity to make their views known in
writing and to request a hearing within the time limit set
in the notice of initiation.

The Commission sought and verified all information it
deemed necessary for the purpose of a determination of
dumping and the analysis of
the
Community industry and carried out verification visits at
the premises of the following companies:

the situation of

(3)

(4)

(5)

(a) Community producers

— Furfural Español, Spain

— Lenzing AG, Austria

(b) User industry

— Repsol Petroleo, Spain

(6)

The investigation of dumping covered the period from 1
May 1996 to 30 April 1997 (hereinafter referred to as
the investigation period or IP). The analysis of the situa-
tion of the Community industry covered the period 1
January 1994 to 30 April 1997.

(3) OJ C 156, 24.5.1997, p. 3.

L 328/2

EN

Official Journal of the European Communities

22. 12. 1999

(7)

(8)

(9)

(10)

(11)

Owing to the numerous difficulties encountered in
establishing findings in the present investigation, notably
the fact that simultaneously a proceeding was underway
before the European Court of First Instance to clarify
ínter alia the definition of the product under considera-
tion, the investigation significantly exceeded the period
of twelve months recommended for investigations under
Article 11 (5) of the Basic Regulation.

B. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

1. Product under consideration

The product under consideration is furfuraldehyde (also
known as 2-furaldehyde or furfural), a light yellow liquid
with a characteristic pungent odour, which is obtained
by processing different
types of agricultural waste.
Furfuraldehyde has two main applications; as a selective
solvent
in petroleum refining for the production of
lubricating oils and as raw material for processing into
furfural alcohol, which is used to make synthetic resin
for foundry moulds.

The investigation has shown that the product exported
from the PRC is produced principally from rice husks or
maize loaf.

2. Like product

Instance (4)

Sinochem repeated its claim already made before the
Court of First
furfuraldehyde
imported from the PRC is not a like product to the
the Community
furfuraldehyde manufactured
industry, since their applications are different,
thus
constituting two separate markets.

that

the

by

It has been claimed that one Community producer is the
major supplier of furfuraldehyde for use in petroleum
is sold as a raw
refining, whereas Chinese product
material
It was
for processing into furfural alcohol.
therefore alleged that no injury could possibly be
suffered by the Community industry, since the Chinese
exporters are not competing on the same market.

Furfuraldehyde produced in the Community and that
produced in the PRC has the same physical characteris-
tics and specifications and is not exclusively dedicated to
one particular application. This means that, in accord-
ance with the Judgment of the Court of First Instance on
29 January 1998, they are interchangeable and can be
used for either application. This claim was therefore
rejected and it was concluded that
furfuraldehyde
produced in PRC is, within the meaning of Article 1(4)
of the Basic Regulation, alike to that produced and sold
by the Community producers.

C. DUMPING

the

sole cooperating Chinese

Sinochem,
exporting
producer, requested the initiation of a review invest-
igation on the grounds that the circumstances on which
anti-dumping measures were based, had
existing

(4) Case T-97/95, Sinochem v. Council, concerning an application for
annulment of Council Regulation (EC) No 95/95 [1995] ECR II 85.

(12)

(13)

(14)

(15)

(16)

changed significantly since the original investigation was
carried out.

It should be noted that as the PRC was considered a
non-market economy country in the original
invest-
igation, a demonstration of changed circumstances
would require evidence that all, or at least a repres-
entative volume, of
the product concerned exported
from the PRC, was currently being sold at a price which
reflected a different level of dumping. Therefore, in order
to be able to assess the alleged change in circumstances
an analysis of all, or at least a representative volume, of
the exports from the PRC should be possible and should
be carried out.

It was found in this case, however, that the level of
exports of the product concerned reported by Sinochem,
on the basis of available Eurostat statistics, accounted for
only a minor proportion of total Chinese exports during
the IP. Moreover, it is to be noted in this respect that it
was not possible to establish the total actual volume of
Chinese exports, given indications that the above Euro-
stat statistics concerning imports from the PRC for the
IP were incomplete.

the

current

investigation,

imports from Thailand, a third country not
Firstly,
increased
concerned by
dramatically subsequent
to the imposition of anti-
dumping duties on imports from the PRC. At the same
time, Chinese export statistics show a similar trend in
exports from the PRC to Thailand. The above develop-
ments are particularly relevant in the present case as, on
the basis of information available, it appears that there is
no new production capacity in Thailand that could
explain such an increase in exports and, in any event,
the existing Thai capacity is not sufficient to produce the
volume of
the product concerned declared as being
exported to the Community in the IP.

Secondly, evidence has been made available to the
Commission indicating that the declared Thai origin of
imports of the product concerned into the Community
during the IP is likely to be incorrect. There are grounds
to believe that a considerable part of the Thai declared
goods is in reality of Chinese origin. In these circum-
stances the Commission services consider that the level
concerned into the
of
Community of Chinese origin, as reported in Eurostat, is
significantly understated with the result that the minor
share of Sinochem's imports from the PRC understate
the true extend of the level of non-cooperation.

the product

imports of

In the absence of any other reliable, data and in accord-
ance with Article 18 of the Basic Regulation, findings for
dumping have been based on the best information avail-
able. In the circumstances, it was considered that Euro-
stat data on Chinese imports could not be used, as there
were strong indications that these statistics were incom-
plete. The Eurostat data was therefore disregarded for
the purposes of establishing a dumping margin for the

22. 12. 1999

EN

Official Journal of the European Communities

L 328/3

PRC. The information provided by Sinochem could also
not be used for the purposes of establishing a country-
wide dumping margin for the PRC as it was not possible
to establish the representativity of these imports. There-
fore, the best information available for the purposes of
this investigation was considered to be the dumping
margin established in the previous investigation.

(17)

It was therefore concluded, as far as the dumping
margin was concerned,
the alleged significant
that
change in circumstances since the findings of the ori-
ginal investigation were not supported by the findings of
the investigation.

(18) All interested parties have been provided with full and
definitive disclosure of the findings and have been given
the opportunity to make written comments and to be
heard. No interested party came forward with any new
information and no new substantiated arguments have
been made such as to change the findings set out above.

(19)

The dumping margin established for the PRC in the
context of the current review investigation is therefore
62,6 %.

D. INJURY

1. Community industry

(20) During the previous

investigation,

the Community
industry was composed of one producer. Following the
the three new Member States in 1995
accession of
the Community
is now part of
another producer
industry. For the purpose of establishing a coherent
comparison and meaningful trends the data given below
includes
second
information
Community producer from 1994.

respect

the

of

in

The Commission, in the course of the present review
investigation requested and received information from
the two producers in the Community. These two produ-
cers account for 100 % of total Community production
and constitute the Community industry within the
meaning of Article 4(1) and 5(4) of the Basic Regulation.

2. Preliminary remark

(21) As in the case of dumping, the investigation sought to
establish whether the circumstances with regard to the
situation of the Community industry had changed to
such an extent that would warrant a conclusion different
to that established during the previous investigation.

3. Analysis of
market

the situation of

the Community

3.1. C o m m u n i t y c o n s u m p t i o n

(22)

The pattern of apparent Community consumption, that
is sales by the Community industry on the Community
market plus imports of all third countries as obtained
from Eurostat shows that consumption of furfuralde-
hyde in the Community increased from 35 442 tonnes
in 1994, to 46 474 in 1995, with a peak to 49 694
tonnes in 1996. Consumption decreased to 40 127
tonnes during the IP, which represents an overall
increase of 13,2 % from 1994 to the IP

3.2. V o l u m e a n d p r i c e s o f

i m p o r t s

i n t o t h e

C o m m u n i t y

(23) As regards the volume and prices of the imports, the
investigation,
in the first instance, has used the data
provided by Eurostat. However, given that there are
strong indications that the statistics are incomplete for
the reasons explained above, it was concluded that Euro-
stat could only provide a general guide to the trend of
the imports under consideration.

(24)

(25)

(26)

The volume of imports of the product concerned from
the PRC decreased from 1 933 tonnes in 1994 to 413
tonnes in 1995, increased significantly to 5 650 tonnes
in 1996 and remained at a similar level during the IP at
5,285 tonnes. The investigation has revealed that the
exceptionally low volume of imports during 1995 is
explained by a shortage of suitable agricultural waste in
the PRC due to a particularly bad harvest in that year.

Imports from the PRC, based on Eurostat, represented at
least 15 % of total imports during the IP and show an
increase of 173 % over the period considered.

The request for the review alleged that imports from the
PRC had steadily decreased between 1994 and 1995 and
therefore, no injury was being caused to the
that,
Community industry. However,
the investigation has
shown that, although imports decreased from 1 933
tonnes in 1994 to 413 tonnes in 1995, between 1993
and the IP imports increased significantly,
to 5 285
tonnes. This increase has continued after the IP. In view
of the allegations made in the request for a review with
regard to the level of
imports, data relating to the
volume of imports subsequent to the IP was examined.
In this respect it is noted that the volume of the imports
under consideration in 1998 amounted to 10 502
tonnes, almost
twice the recorded volume imported
during the IP.

The market share of imports from the PRC shows a
similar increasing trend over the period considered,
5,5 % in 1994, 0,9 % in 1995; 11,4 % in 1996 and
13,2 % during the IP, a level similar to that reached in
1992 as established by the previous investigation. On
the basis of the above, it is concluded that contrary to
the review request submitted by Sinochem, the level of
imports of the product under consideration originating
in the PRC is not low.

L 328/4

EN

Official Journal of the European Communities

22. 12. 1999

(27)

at

their development

a CIF
In terms of prices,
Community frontier level in ECU/tonne, as derived from
Eurostat, shows an increase from 500 in 1994 to 1 300
in 1995, a decrease to 946 in 1996 and a further
decrease to 919 during the IP. While the Chinese export
prices increased by 83 % over the period considered, this
increase was lower than that of the Community produ-
cers', which show an overall 90 % increase.

1994 to 74 % in 1995 to 70 % in 1996 and further
decreased to 66 % during the IP. This represents an
overall decrease of fifteen percentage points over the
period.

4.4 S a l e s v o l u m e o f

t h e C o m m u n i t y i n d u s t r y

The prices of Chinese exports started to decline in 1996,
a trend that continued during and after the IP. This price
development from the end of 1995 onwards is in stark
contrast to the allegations made in the request for a
review where it was claimed that due to the high level of
prices, the imports from the PRC could not cause injury
to the Community industry.

(32)

The volume of sales of the Community producers on the
Community market shows a slight
increase between
1994 and 1995 and thereafter a decline. Sales increased
from an indexed level of 100 in 1994 to 106 in 1995,
decreased to 86 in 1996 and to 80 during the IP. This
represents a decrease of 20 % in sales volume over the
period considered.

3.3 P r i c e u n d e r c u t t i n g

4.5 S t o c k s

(28)

The investigation has revealed the continued existence of
significant margins of price undercutting, whether the
prices of the Community industry are compared with
those of the sole cooperating Chinese exporter or with
the import prices as derived from Eurostat, the latter
only providing a general guide.

4. Economic situation of the Community industry

4.1 G e n e r a l

(29)

the economic situation of

In the analysis of
the
Community industry account has been taken of the fact
that there are only two Community producers of the
product concerned and of
the consequent need to
protect the integrity of data provided on a confidential
information supplied is therefore
basis. Confidential
presented, where necessary, in indexed format, with the
year 1994 used as the basis for establishing trends.

4.2 P r o d u c t i o n

(30)

Production of the product concerned by Community
industry decreased continuously, from an index of 100
in 1994 to 91 in 1995, further decreased to 86 in 1996
and to 81 during the IP. This represents a decrease of
19 % over the period considered.

4.3 C a p a c i t y a n d c a p a c i t y u t i l i s a t i o n

(33)

The level of stocks of
furfuraldehyde held by the
Community producers decreased from an indexed level
of 100 in 1994 to 16 in 1995, which constitutes an
exceptionally low level of stocks.

This low stock level is accounted for by the ‘temporary
disappearance’ of Chinese imports from the Community
market which occurred during 1995 and which allowed
the Community producers to benefit from the situation.
The level of stocks held increased thereafter to an
indexed level of 72 in 1996 and to 90 during the IP.

4.6 P r i c e e v o l u t i o n

(34)

The selling prices of the Community industry increased
sharply from an indexed level of 100 in 1994 to 129 in
1995, to 216 in 1996 and thereafter decreased to 194
during the IP.

These price increases coincided with sharp increases in
the cost of raw materials. Raw material costs accounted
for 46 % of variable cost in 1994, increasing to 56 % of
variable cost during the IP.

4.7 P r o f i t a b i l i t y

(35)

The profitability of the Community industry during the
period considered shows (in indexed form) the following
trend: 100 in 1994, 105 in 1995, 109 in 1996 and 103
during the IP.

(31)

The production capacity of the Community industry
remained stable during the period considered.

4.8 E m p l o y m e n t

A significant decrease in the rate of capacity utilisation
by the Community industry can be seen over the period
considered. Capacity utilisation decreased from 81 % in

(36)

levels of

The employment
the Community industry
remained stable throughout the period considered, at an
index of 100 in 1995 and decreasing slightly to 97
during the IP.

22. 12. 1999

EN

Official Journal of the European Communities

L 328/5

4.9 C o n c l u s i o n

t h e
C o m m u n i t y i n d u s t r y

o n

s i t u a t i o n

o f

t h e

countries shows a decreasing trend during the period
considered.

(37) On the basis of an overall assessment of

the main
economic indicators of the Community industry it was
concluded that the allegations made in relation to the
situation of the Community industry in the request for
the review investigation are not confirmed by the results
of the investigation. On the contrary, the investigation
has shown that the Community industry continues to be
in a weak situation.

(43) With regard to imports from the Dominican Republic,
reference is made to the claim by a Chinese exporter
that imports from the Dominican Republic always held
a dominant market position (over 60 % market share),
these imports have always
and that
In this respect it was
remained at a very low level.
examined whether there has been any change in the
circumstances with regard to the imports of the product
concerned from the Dominican Republic.

the prices of

5. Factors having a bearing on the situation of the

Community industry

5.1 I m p a c t o f

t h e i m p o r t s c o n c e r n e d

(38)

(39)

There is a clear coincidence between the low prices and
the increasing imports from the PRC established during
the period considered on the one hand, and the weak
situation of the Community industry on the other. This
is evidenced by the decrease in sales volume by the
Community industry and a significant deterioration in
profitability during the IP.

The financial situation of the Community industry was
poor at the beginning of the period considered and
improved considerably thereafter. This improvement
coincided with the imposition of anti-dumping measures
and the temporary disappearance of the Chinese imports
from the Community market during 1995. However, the
re-emergence of the Chinese imports in considerable
quantities and at low prices, in particular since 1996,
forced the Community industry to reduce its prices,
while sales volume also declined under pressure from
the dumped imports with a consequent negative effect
of the financial situation of the Community industry.

(40)

Based on the above analysis there is clear evidence that
the allegations stated in the review request were without
injury established during the
foundation and that
previous investigation has not been removed and that
there has been no significant change in circumstances.

5.2 I m p a c t o f o t h e r

f a c t o r s

(41) Other factors relevant to the situation of the Community
the
market have also been assessed.
Commission services examined the evolution and impact
of imports from other third countries and the effect of
increases in the price of raw materials.

In particular,

(42) With regard to imports from other third countries not
concerned by this review investigation, it is to be noted
that although these imports represented a significant
share of the Community market, as during the previous
investigation, the volume of imports from other third

to conclude

In the first instance it is important to underline that the
cooperating Chinese exporter has acknowledged in the
present investigation that the position of the imports
from the Dominican Republic has always been signifi-
cant. It is equally important to stress that therefore any
changes in respect of these imports would have to be
particularly significant
that any such
changes concerning these imports would justify the
termination of the present review investigation without
the continuation of measures. An examination of the
trend in volume of
from the Dominican
imports
Republic reveals that the level of imports increased from
24 429 tonnes in 1994 to 33 209 tonnes in 1995 and
thereafter decreased to 29 765 tonnes in 1996 and to
24 331 tonnes during the IP. The imports from the
Dominican Republic (based on Eurostat) represented
82,6 % of
imports in 1994, 82,4 % in 1995,
66,6 % in 1996 and 68,6 % during the IP.

total

(44) With regard to the development of the import prices of
furfuraldehyde originating in the Dominican Republic as
derived from Eurostat,
the weighted average CIF
Community frontier prices in ECU/tonne shows the
following development: 973 in 1993, 1 040 in 1994,
905 in 1995, 708 in 1996 and 599 during the IP.

(45) During the previous investigation it was established that
the imports of the product concerned originating in the
Dominican Republic were not the cause of the injurious
situation of the Community industry.

(46)

It should be noted that the findings made by the Council
in the previous investigation as regards the significance
of these imports as a factor relevant to the causation of
injury formed part of one of the pleas raised against
Regulation (EC) 95/95, which was rejected by the Court
of First Instance as mentioned above (5).

findings

stated that

in issuing its

The Court
the
Community Institutions did not commit a manifest error
of assessment in considering that the imports of furfur-
aldehyde from the Dominican Republic, to which no
dumping was attributed, were not such as to break the
causal link between the dumped imports of furfuralde-
hyde from China and the injury suffered by the
Community industry.

(5) Case T-97/95, Sinochem v. Council, see footnote 4 above.

L 328/6

EN

Official Journal of the European Communities

22. 12. 1999

(47)

In relation to the present review investigation it was
considered that the situation with regard to imports of
the product concerned originating in the Dominican
Republic had not changed since the previous invest-
igation to a degree that could affect the findings with
respect to the imports originating in the PRC. Indeed,
the volume of
these imports shows a
declining trend over the latter part of the period consid-
ered.

imports of

(53)

to exist. Furthermore,

Bearing this in mind and as established above, despite
the existence of measures, the investigation has shown
that dumping continues
the
Community industry was found still to be in a precar-
ious situation.
it has suffered a reduction in
production, capacity utilisation, sales volume and market
share over
therefore
concluded that the current investigation have shown
that the circumstances as regards dumping and injury
have not significantly changed.

the period considered.

Indeed,

is

It

(48) With regard to imports from third countries other than
the PRC and the Dominican Republic, only imports
originating in Thailand were of any significant volume.
It should be noted, however,
that substantial doubt
exists as to the true origin of the product imported from
Thailand as explained above.

(49)

It was found that the volume of imports from any other
third countries increased from 2 705 tonnes in 1994 to
2 941 in 1995 and thereafter decreased to a level of
1 759 tonnes during the IP. In addition, the prices of
these imports were found to be distinctly higher than
It was therefore
the prices of
considered that the result of the analysis of the prices
and volume of
justify the
termination of the present review investigation without
the continuation of measures.

these imports, could not

the Chinese imports.

5.3 C o n c l u s i o n

(50)

shown that

The investigation has
the Community
industry has suffered a decline in production and sales
volume in the investigation period. This occurred at a
time when the imports from the PRC were made in large
volumes and at prices well below those of
the
Community producers.

E. LIKELY EFFECT OF THE REMOVAL OF THE ANTI-

DUMPING DUTIES

(51) According to Article 11(7) of the Basic Regulation, since
the present review was in progress at the end of the
period of application of the measures imposed by Regu-
lation (EC) No 95/95, the review has also covered the
circumstances set out in Article 11(2) of the Basic Regu-
lation.

(52)

In the context of the investigation covering the circum-
stances set out in Article 11(2) of the Basic Regulation, it
is particularly relevant to underline that no producer of
the product under consideration cooperated in the
course of the present investigation. Indeed, while one
party has cooperated in the investigation,
this party
it was not
acted solely as an exporter. Consequently,
possible to obtain any production related data, such as
capacity and capacity utilisation which are considered as
key indicators in the course of investigations covering
the circumstances set out in Article 11(2) of the Basic
Regulation.

(54) As to the likelihood of a continuation of

injurious
dumping should measures be allowed to lapse, firstly,
the investigation has shown that a significant increase in
production capacity in the PRC appears to have taken
place during the period considered. Indeed, while the
request for the interim review estimated the production
capacity in the PRC at around 20 000 tonnes/year, infor-
mation gathered in the course of the current invest-
igation shows that
the production of one Chinese
producer alone amounted to 50 000 tonnes/year in
1998. Total capacity for the PRC on the basis of infor-
mation collected in the course of the present invest-
igation is around 90 000 tonnes/year.

(55)

(56)

Secondly and as regards the prices of Chinese furfuralde-
hyde, information gathered in the course of the invest-
igation shows that the prices of Chinese furfuraldehyde
on several third country markets not subjected to anti-
dumping measures, during the IP, was significantly
lower
into the
Community.

the Chinese imports

than that of

Thirdly, there are grounds to believe that a considerable
part of the Thai declared furfuraldehyde during the IP is
in reality of Chinese origin underlining the potential
which continues to exist for exports originating in the
PRC.

Taking all the above elements into consideration it is
considered that, should anti-dumping measures not be
maintained, Chinese exports of furfuraldehyde to the
Community would continue to be made in considerable
quantities and at dumped prices, significantly below the
the Community industry. The detrimental
prices of
impact of the imports in question on the situation of the
Community industry would not only continue but
would in all likelihood increase, and thus cause further
injury to the Community industry.
material

F. COMMUNITY INTEREST

1. General considerations

(57)

It was examined, on the basis of
the information
submitted, whether, despite the findings of the present
investigation, compelling reasons exist which would lead
to the conclusion that
in the Community
it
interest to maintain measures in the present case.

is not

22. 12. 1999

EN

Official Journal of the European Communities

L 328/7

In order to assess the impact of the measures in force,
requesting information on
questionnaires were sent
Community interest
to all parties known to the
Commission at the time of initiation of the investigation.

catalyst has a negligible incidence on production cost.
The continued imposition of measures will therefore
have little or no impact on this sector of
the user
industry.

(58)

(59)

(60)

the present

It should be recalled that, in the previous investigation,
the adoption of measures was considered not to be
against the interest of the Community. Furthermore, it
should be noted that
investigation is a
review, thus analysing a situation in which anti-dumping
measures have already been in place. Consequently, the
timing and nature of the present investigation would
allow the assessment of any negative undue impact on
the parties concerned by the anti-dumping measures
imposed.

2. The Community furfuraldehyde industry

in 1995,

It has been found that, coinciding with the imposition of
provisional anti-dumping duties in July 1994 and the
temporary disappearance of the Chinese product from
the Community market
the Community
industry was able to increase its prices thus improving
its profitability from a poor situation in 1994 to one
considerably healthier in 1996. However, the high prices
realised by the Community producers during 1996 must
be considered as exceptional as they were the result of
unusually high demand together with what turned out
to be only a temporary decline in the imports of the
product under consideration originating in the PRC. This
was confirmed in the subsequent period during which
the prices could not be sustained due to the presence of
the Chinese imports on the Community market
in
considerable quantities and at low prices. Pressure from
these imports forced the Community industry to reduce
its prices with a consequent negative effect on the finan-
cial situation of the industry.

In the light of the above, should measures be continued,
it is likely that the Community industry could improve
its financial situation. However, should measures not be
imposed,
the
Community industry would deteriorate leading, in the
long term, to the closure of production facilities and the
consequent loss of employment.

is expected that

the situation of

it

(63) With regard to the second major application, no infor-
mation was received indicating that the findings of the
previous investigation with respect to this application
had changed. In view of the above, it is concluded that
the impact of any measure on the situation of the chem-
ical

industry is not likely to be significant.

4. Conclusion on Community interest

(64)

In the light of the above it is concluded that no compel-
ling reasons exist, on grounds of Community interest,
not to maintain the anti-dumping measures currently in
force.

G. ANTI-DUMPING MEASURES

(65)

Based on the above, and taking into consideration that it
could not be established that circumstances with regard
to dumping and injury have changed significantly as
compared to the original investigation, it is concluded
that measures should be maintained in their present
form and at their present level.

The proposed anti-dumping duty, when related to the
free at Community frontier price and expressed in the
form a specific duty amounts to EUR 352 per tonne.

(66)

It is also considered that the duration of the reviewed
measures should be limited to four years. The numerous
difficulties encountered in establishing the findings in
the present investigation, notably the fact that simulta-
neously a proceeding was underway before the European
Court of First Instance to clarify ínter alia the definition
of the product under consideration, has resulted in the
normal twelve-month period of Article 11(5) of the
Basic Regulation for completion of
the investigation
being significantly exceeded. In view of this exceptional
situation, which is unrelated to the considerable absence
of cooperation from Chinese exporters, it is appropriate
to reduce the period of duration of the measures,

3. The user industry

(61)

The Community user industry is comprised of
two
major sectors, which correspond to the two principal
applications of furfuraldehyde i.e. as a selective solvent
in the petroleum industry and synthetic resin for
foundry moulds (chemical

industry).

(62) Only one user in the petroleum industry cooperated in
the investigation. The information reported by this user
on the impact of the price of furfuraldehyde in the costs
of lubricating oil, confirms the findings of the previous
i.e. that furfuraldehyde when used as a
investigation,

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of 2-furaldehyde (also known as furfuraldehyde or
furfural) currently classified within CN code 2932 12 00 and
originating in the People's Republic of China.

2.

The amount of duty applicable is EUR 352 per tonne.

L 328/8

EN

Official Journal of the European Communities

22. 12. 1999

In instances where the customs value is reduced pursuant to the second paragraph of Article 145 of
3.
Commission Regulation (EEC) No 2454/93 (6), the amount of the specific duty applicable, referred to in
paragraph 2 of this Article shall also be reduced on a pro-rata basis.

The anti-dumping duty shall be imposed for a period of four years from the date of entry into force of this
Regulation.

Article 2

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

Article 3

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

Article 4

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

Done at Brussels, 17 December 1999.

For the Council

The President

K. HEMILÄ

(6) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 502/1999 (OJ L 65, 12.3.1999, p.

1).