Council Regulation (EC) No 763/2000 of 10 April 2000 extending the definitive anti-dumping duty, imposed by 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 to imports of certain tube and pipe fittings, of iron or steel, consigned from Taiwan, whether declared as originating in Taiwan or not, and terminating the investigation in respect of imports from three Taiwanese exporters
Date: 2000-04-14
Institutions: Council of the European Union
Subjects: China, Thailand, anti-dumping duty, import, originating product, piping

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Official Journal of the European Communities

L 94/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 763/2000

of 10 April 2000

extending the definitive anti-dumping duty, imposed by 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 to
imports of certain tube and pipe fittings, of iron or steel, consigned from Taiwan, whether declared
as originating in Taiwan or not, and terminating the investigation in respect of imports from three
Taiwanese exporters

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 13 thereof,

(4)

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

Whereas:

According to the request, the circumvention practice
consisted of transhipment of fittings originating in the
PRC via Taiwan to the Community.

3. Initiation

By Regulation (EC) No 1683/1999 (3) the Commission
to
initiated an investigation and directed, pursuant
Articles 13(3) and 14(5) of the Basic Regulation, the
customs authorities
fittings
to register
consigned from Taiwan as of 31 July 1999. The
Commission advised the authorities of
the PRC and
Taiwan of the initiation of the investigation.

imports of

A. PROCEDURE

4. Investigation period

1. Existing measures

(5)

The investigation covered the period from 1 July 1998
to 30 June 1999 (hereinafter referred to as the ‘IP’).

(1)

(2)

By Regulation (EC) No 584/96 (2) (hereinafter referred to
imposed an
as ‘the definitive Regulation’) the Council
anti-dumping duty of 58,6 % on imports of tube and
pipe fittings, of iron or steel, (hereinafter referred to as
‘fittings’) originating in the People's Republic of China
(hereinafter referred to as ‘the PRC’).

(6)

2. Request

On 10 June 1999, the Commission received a request,
pursuant to Article 13(3) of Regulation (EC) No 384/96
(hereinafter referred to as ‘the Basic Regulation’), from
the Defence Committee of the EC steel butt-welding
fittings industry. This request was submitted on behalf of
fittings, whose collective
Community producers of
output is known to represent about 90 % of the total
Community production of fittings.

(3)

The request alleged the existence of circumvention of the
anti-dumping duties imposed by the definitive Regula-
fittings originating in the PRC.
tion on imports of

(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 84, 3.4.1996, p. 1.

5. Collection of data from interested parties

Questionnaires were sent to Community importers as
well as exporters located in the PRC and Taiwan which
were mentioned in the request, exporters known from
the original
investigation and other interested parties
who came forward within the prescribed time limit.
Replies to the questionnaires were received from six
unrelated importers and three Taiwanese exporters. The
Commission carried out verification visits at the prem-
ises of the following companies:

Unrelated importer:

— Tubos y Calibrados de Cataluña SA, Barcelona,

Spain.

Taiwanese exporters:

— Nian Hong Pipe Fittings Co., Ltd, Kaohsiung, Taiwan

— Rigid Industries Co., Ltd, Kaohsiung, Taiwan

— Chup Hsin Enterprise Co. Ltd, Kaohsiung, Taiwan.

(3) OJ L 199, 30.7.1999, p. 26.

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B. RESULTS OF THE INVESTIGATION

3. Change in the pattern of trade

(7)

(8)

(9)

(10)

1. General considerations/degree of cooperation

(12)

The request of the Community industry alleged that
there has been a change in the pattern of trade following
the imposition of anti-dumping duties on imports of
fittings into the Community from the PRC through an
increase of Taiwanese exports. The Community industry
also alleged that the remedial effects of the anti-dumping
duty on imports from the PRC have been undermined
both in terms of quantities and prices and that there is
evidence of dumping in relation with the normal value
established in the previous investigation.

the investigation was

The purpose of
to examine
whether anti-dumping measures on imports of fittings
originating in the PRC were being circumvented by
imports of the same product originating in this country
and transhipped, without undergoing substantial trans-
formation, through Taiwan in accordance with Article
13(1), second sentence of the Basic Regulation.

No cooperation was received from producers or ex-
porters of fittings in the PRC. However, information was
obtained from three cooperating exporters in Taiwan,
which produced and purchased fittings and exported
them to the Community during the IP. Together, these
three Taiwanese exporters accounted for 19,66 % in
volume and 16,42 % in value of the total imports of
fittings from Taiwan to the Community during the IP as
reported by Eurostat at TARIC level.

a) Cooperating Taiwanese exporters

Exports to the Community made by cooperating ex-
porters in Taiwan increased by 300 % from 1994 to the
IP at the same time as the imposition of measures on
Chinese fittings. The existence of a change in the pattern
of trade was therefore established in their respect.

b) Non-cooperating Taiwanese exporters

(13) As far as the non-cooperating exporters axe concerned
the Commission had to establish the exports to the
Community on the basis of facts available pursuant to
Article 18 of the Basic Regulation. Findings in respect of
exports to the Community following the imposition of
measures were based on Eurostat data at TARIC level.
Due account was taken, in the case of Taiwan, of the
exports of the cooperating exporters. Findings in respect
of the exports of the product concerned from the same
countries in 1994 and 1995 were based on adjusted
Eurostat data at CN level.

(14)

Imports into the Community of fittings from the PRC
have decreased substantially from 2 741 tonnes in 1994
to 95 tonnes in 1998, following the imposition of anti-
dumping measures. At the same time, imports of fittings
from Taiwan increased from 221 tonnes in 1994 to
3 745 in 1998, reaching a peak of 4 918 tonnes in
1997.

(15)

The marked switch from imports from the PRC to those
from Taiwan coincided with the entry into force of
anti-dumping measures on PRC fittings at the end of
1995.

4. Insufficient due cause or economic justification

2. Product under consideration and like product

a) Cooperating Taiwanese exporters

The product under consideration is as defined in the
original
investigation, which is tube and pipe fittings
(other than cast 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, currently classifiable within CN codes
7307 93 11 90),
ex 7307 93 11
7307 93 19 90),
ex 7307 93 19
and
ex 7307 99 30 (TARIC code 7307 99 30 91)
ex 7307 99 90 (TARIC code 7307 99 90 91).

(TARIC
(TARIC

code
code

(11)

The investigation showed that the fittings exported to
the Community from the PRC and those consigned from
Taiwan to the Community have the same basic physical
and chemical characteristics and have the same uses, and
are therefore to be considered as like products within
the meaning of Article 1(4) of the Basic Regulation.

(16) Niang Hong Pipe Fittings Co. Ltd is a manufacturer and
exporter of
fittings based in Kaohsiung, operating
production facilities for the complete production process
of some types of fittings. It only sells its own production
a part of which is exported to the Community by
another company, Chup Hsin.

(17)

(18)

Rigid Industries Co. Ltd is, like Niang Hong, an integ-
rated producer/exporter of fittings and also based in
Kaohsiung. It only exports its own production of the
product concerned to the Community and has exported
limited quantities during the IP.

Chup Hsin Enterprises Co. Ltd is also an integrated
producer/exporter of fittings and also based in Kaoh-
siung. This company completes its range of manufac-
tured products for
the export market with fittings
purchased from other local Taiwanese manufacturers,
including Niang Hong, and from one Japanese producer.

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(19) Given that none of

the three companies purchased
fittings from the PRC the change in the pattern of trade
can be considered as having a due cause. Consequently
the investigation with regard to these companies should
be terminated.

(20)

(21)

(22)

(23)

(24)

b) Non-cooperating Taiwanese exporters

In the absence of cooperation, and given that the above-
mentioned substitution of imports from the PRC for
imports from Taiwan took place immediately following
it has to be
the imposition of anti-dumping duties,
concluded that
trade
stemmed from the imposition of the duty rather than
from any other sufficient due cause or economic justifi-
cation within the meaning of Article 13(1), second
sentence of the Basic Regulation.

the change in the pattern of

Furthermore, in the absence of any reasonable economic
justification, other than the imposition of the duty, for
the change in the pattern of trade it may reasonably be
concluded that transhipment of PRC fittings via Taiwan
to the Community has taken place.

This conclusion is reinforced by the following: imports
from the PRC into Taiwan of one of the two categories
of CN codes (7307 93) covering the product concerned
are subject to a Taiwanese import regulation named
MWO, which according to Taiwan's customs law means
that imports are prohibited. However, Taiwanese custom
statistics recorded imports under that particular code
amounting to 3 700 tonnes from the PRC only for
1998.

The investigation has moreover established, on the basis
of evidence provided by the Taiwanese cooperating
exporters, that it is possible to import goods from a
third country into Taiwan and re-export them under a
Taiwanese certificate of origin without undergoing any
substantial transformation.

5. Undermining of the remedial effects of the duty
in terms of the prices and/or quantities of the
like products (non-cooperating Taiwanese ex-
porters)

It is evident from the figures in recital 14 that a clear
quantitative change in the pattern of Community
imports occurred since the imposition of measures, and
that this marked change in trade flows undermined the
the quantities
remedial effects of
imported into the Community market.
the
exports of Chinese fittings, estimated at 2 741 tonnes in
1994 prior to the imposition of measures, were replaced
and even exceeded by exports of the non-cooperating
Taiwanese exporters
(accounting for 3 745 tonnes
during the IP).

these in terms of

Indeed,

(25) Given the extremely low degree of cooperation, the large
scale undermining of the effects of the measures in
terms of quantities and that
the Basic Regulation
requires that undermining of the remedial effect of the
duty be established in terms of either quantities or

(26)

(27)

(28)

(29)

(30)

prices, it was found unnecessary to further investigate
undermining in terms of prices.

6. Evidence of dumping in relation to the normal
values previously established for like or similar
products (non-cooperating Taiwanese exporters)

In order to determine whether evidence of dumping
could be found with respect to the fittings exported to
the Community from Taiwan by the non-cooperating
exporters during the IP, two approaches were followed,
pursuant to Article 18 of the Basic Regulation. It is
recalled that the Basic Regulation requires the establish-
ment of evidence of dumping in relation to the normal
values established in the original investigation, but that it
does not require a new dumping margin to be estab-
lished.

a) Approach based on export data reported by Eurostat

In this first approach the export price was established on
the basis of total export value and tonnes reported by
Eurostat at TARIC level from which the quantities and
values exported by the cooperating Taiwanese compa-
nies were deducted.

In accordance with Article 13(1) of the Basic Regulation,
the normal value to be used in an anti-circumvention
investigation is the normal value established during the
original investigation. At that time, Thailand was found
to be an appropriate analogue market economy third
country for the PRC, that was considered to be a non-
market economy country.

In the original
investigation, normal value was deter-
mined per type of fitting. In the current anti-circumven-
tion investigation, for the comparison with the export
prices determined on the basis of Eurostat data, and
given that Eurostat does not provide export price data
per type of fitting but only per tonne and per TARIC
code, the Commission estimated, pursuant to Article 18
of the Basic Regulation, that the product mix of the
non-cooperating Taiwanese producers could reasonably
be assessed on the basis of the product mix of export
sales to the Community made by the three cooperating
Taiwanese exporters. Consequently, the normal value
per type as determined in the original investigation was
weighted on the basis of the aforementioned product
mix of these cooperating Taiwanese exporters. Thus, a
weighted average normal value per tonne was estab-
lished.

For the purpose of a fair comparison between the
normal value and the export price, due allowance in the
form of adjustments was made for differences which
affect prices and price comparability. These adjustments
were made in accordance with Article 2(10) of the Basic
Regulation in respect of
insurance and
commissions. As the functions of the companies that
transhipped the product concerned through Taiwan to
the Community can be considered similar to those of a
trader acting on a commission basis, an adjustment of
6 % considered as a reasonable estimate for selling
general and administrative expenses and profit was
deducted from the export price as determined above.

transport,

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b) Approach based on cooperating importers' data

(31) On this second approach the export price was estab-
lished on the basis of the limited information on import
prices by type of fittings submitted by the cooperating
importers, representing around 14 % of the imports of
fittings from Taiwan in terms of volume, in respect of
their purchases from non-cooperating Taiwanese expor-
ters.

(32) As explained in recital 28, the normal value to be used
in an anti-circumvention investigation is the normal
value established during the original investigation. In the
original investigation, normal value was determined per
type of fitting. These normal values were thus directly
compared with the individual export price per type of
fitting established on the basis of
the information
submitted by the cooperating importers.

(33)

For the purpose of a fair comparison between the
normal value and the export price, the methodology
explained in recital 30 was used.

c) Conclusion

(34)

In accordance with Article 2(11) and (12) of the Basic
Regulation, the comparison of weighted average normal
values with weighted average export prices expressed as
a percentage of
the cif Community frontier price,
revealed, when following either methodology explained
in recitals 27 to 33, a significant level of dumping.

(35)

(36)

(37)

C. REQUESTS FOR EXEMPTION FROM THE EXTENSION

OF THE DUTY

The Commission received requests for exemption from
the extension of the duty from eight importers. Given
that
the definitive anti-dumping duty on imports of
fittings originating in the PRC will not be extended to
fittings produced and exported by the Taiwanese expor-
it was
ters that did not circumvent
considered that no exemption should be granted at this
stage.

these measures,

D. MEASURES

In view of the above finding of circumvention within the
meaning of Article 13(1), second sentence of the Basic
the existing anti-dumping measures on
Regulation,
fittings originating in PRC should be extended to the
same product consigned from Taiwan, whether the
product is declared as originating in Taiwan or not, with
the exception of products manufactured by the three
cooperating exporters, pursuant to Article 13(1), first
sentence of the Basic Regulation.

In accordance with Article 14(5) of the Basic Regulation,
which provides that measures may be applied against
registered imports from the date of registration,
the
anti-dumping duty on imports of
fittings consigned
from Taiwan which entered the Community under regis-
tration imposed
the Commission Regulation
initiating this investigation, with the exception of those

by

(38)

(39)

fittings exported by the three cooperating exporters,
should be collected.

Companies requesting an exemption pursuant to Article
13(4) of the Basic Regulation will normally be required
to complete a questionnaire in order to enable the
Commission to determine whether an exemption may
be warranted and the Commission would normally also
carry out an on-the-spot verification visit.

The non-extension of the duties to the three individual
Taiwanese companies specified in this Regulation was
established on the basis of the findings of the present
investigation. Therefore,
it reflects the situation found
during that investigation with respect to these compa-
nies. The non-extension is thus exclusively applicable to
imports of products produced and consigned by these
specific legal entities mentioned.
Imported products
produced or consigned by any other company not
specifically mentioned in the operative part of this Regu-
lation with its name and address including entities
related to those specifically mentioned, cannot benefit
from the exception and should be subject to the duty
rate imposed by the definitive Regulation.

information,

(40) Any claim requesting the application of this exception
would have to be addressed to the Commission forth-
in particular any
with with all relevant
linked to
modification in the company's activities
production and export sales. The Commission, if appro-
priate, would,
the Advisory
Committee,
amend the Regulation accordingly by
updating the list of companies benefiting from the
exception.

consultation of

after

E. PROCEDURE

(41)

Interested parties were informed of the essential facts
and considerations on the basis of which the Commis-
sion intended to propose the extension of the definitive
anti-dumping duty in force and were given the oppor-
tunity to comment,

HAS ADOPTED THIS REGULATION:

Article 1

(TARIC

ex 7307 93 19

7307 93 11 90),

1.
The definitive anti-dumping duty imposed by Regulation
(EC) No 584/96 on imports of certain tube and pipe fittings of
iron and steel falling within CN codes ex 7307 93 11 (TARIC
code
code
7307 93 19 90), ex 7307 99 30 (TARIC code 7307 99 30 91)
and ex 7307 99 90 (TARIC code 7307 99 90 91) originating
in the People's Republic of China,
is hereby extended to
imports of the same fittings consigned from Taiwan (whether
these fitting are declared as originating in Taiwan or not)
(TARIC additional code A999), with the exception of those
produced and exported by Chup Hsin Enterprise Co. Ltd, Kaoh-
siung (Taiwan) (TARIC additional code A098), Rigid Industries
Co., Ltd, Kaohsiung (Taiwan) (TARIC additional code A099)
and Niang Hong Pipe Fittings Co., Ltd, Kaohsiung (Taiwan)
(TARIC additional code A100).

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The duty extended by paragraph 1 of this Article shall be
2.
collected on imports registered in accordance with Article 2 of
Regulation (EC) No 1683/1999 and Articles 13(3) and 14(5) of
Regulation (EC) No 384/96, with the exception of
those
produced and exported by Chup Hsin Enterprise Co. Ltd, Rigid
Industries Co., Ltd and Niang Hong Pipe Fittings Co., Ltd,
Kaohsiung (Taiwan).

3.
The TARIC codes to be declared for the products origin-
ating and/or consigned from Taiwan are: 7307 93 11 91,
7307 93 19 91, 7307 99 30 92 and 7307 99 90 92.

The provisions in force concerning customs duties shall

4.
apply.

Article 2

European Commission
Directorate-General for Trade
Unit C-3
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05

after

The Commission,

the Advisory
2.
the exemption of
Committee, shall authorise, by decision,
imports which do not circumvent
the anti-dumping duty
imposed by Regulation (EC) No 584/96 from the duty
extended by Article 1.

consulting

Article 3

Customs authorities are hereby directed to discontinue the
registration of imports, established in accordance with Article 2
of Regulation (EC) No 1683/1999.

1.
Requests for exemption from the duty extended by
the official
Article 1 shall be made in writing in one of
languages of the Community and must be signed by a person
authorised to represent the applicant. The request must be sent
to the following address:

Article 4

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

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

Done at Luxembourg, 10 April 2000.

For the Council

The President

J. GAMA