Council Regulation (EC) No 2315/2000 of 17 October 2000 amending Regulation (EC) No 2402/98 imposing a definitive anti-dumping duty on imports of unwrought unalloyed magnesium originating in the People's Republic of China
Date: 2000-10-17
Institutions: Council of the European Union
Subjects: CCT duties, China, anti-dumping duty, import, magnesium, originating product

20.10.2000

EN

Official Journal of the European Communities

L 267/17

COUNCIL REGULATION (EC) No 2315/2000

of 17 October 2000

amending Regulation (EC) No 2402/98 imposing a definitive anti-dumping duty on imports of
unwrought unalloyed magnesium originating in the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

dumping duty had been absorbed and therefore the
anti-dumping measures referred to had led to an insuffi-
cient movement or no movement in resale prices or
subsequent selling prices in the 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 12 thereof,

(3)

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

Whereas:

selling prices
concerned

the
The request contained prima facie evidence that
in the
resale prices and subsequent
Community of
did not
the product
adequately reflect the level of the antidumping measures
imposed. In addition to the insufficient movement of
resale and subsequent selling prices, the request also
argued that most of the imports were made at heavily
discounted prices by Community importers related to
exporters and thus subject to the ad valorem duty which
was insufficient to raise duty-paid prices to a level close
to the minimum price.

A. PROCEDURE

1. Original measures

3. The anti-absorption investigation

(1)

In November 1998, by Regulation (EC) No 2402/98 (2)
(hereinafter referred to as ‘the Regulation’), the Council
imposed a definitive anti-dumping duty on imports of
unwrought unalloyed magnesium originating in the
People's Republic of China (hereinafter referred to as ‘the
PRC’). The measure was in the form of either:

(a) the difference between the minimum import price of
ECU 2 622 per tonne and the cif Community fron-
tier price in all cases where the latter is less than the
minimum import price, and established on the basis
of an invoice issued by an exporter located in the
PRC to a party unrelated to it. No duty should be
collected where the cif Community frontier price per
tonne is equal
to or higher than the minimum
import price; or

(b) equal to an ad valorem duty of 31,7 % in all other
cases not falling under subparagraph (a) above.

2. Request for an anti-absorption review

(2)

On 22 July 1999, the Commission received a request for
a review pursuant to Article 12 of Council Regulation
(EC) No 384/96 (hereinafter referred to as ‘the basic
Regulation’). The request was lodged by the Comité de
Liaison des Industries de Ferro-Alliages (Euro Alliages)
on behalf of the sole known Community producer of
unwrought unalloyed magnesium, Pechiney Electromé-
tallurgie, France, alleging that all or part of the anti-

(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 298, 7.11.1998, p. 1.

(4)

(5)

(6)

On 4 September 1999, the Commission announced by a
notice published in the Official Journal of the European
Communities (3) the initiation of a review, pursuant to
Article 12 of the basic Regulation, of the anti-dumping
measures applicable to imports of unwrought unalloyed
magnesium originating in the PRC.

The Commission officially advised the producers/expor-
ters, importers/traders and users/associations known to
be concerned,
the exporting
the representatives of
country and the Community producer of the initiation
of the review. Interested parties were given the oppor-
tunity to make their views known in writing and to
request a hearing. All parties who so requested were
granted hearings. Questionnaires were sent directly by
the Commission to all producers/exporters, users/asso-
ciations and importers/traders known to be concerned.

Three exporters, two importers, one association of users,
and four users belonging to the same group responded
to the questionnaire. Written submissions were also
received from certain other users and from one steel
association. The Commission carried out verification
visits at the premises of the following companies:

— Deumu Deutsche Erz- und Metallunion GmbH,

Germany,

— Wogen Resources Ltd, United Kingdom.

(3) OJ C 253, 4.9.1999, p. 15.

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Official Journal of the European Communities

20.10.2000

(7)

(8)

(9)

The investigation covered the period 1 September 1998
to 31 August 1999 (hereinafter referred to as ‘the IP’).
The IP was used to determine the level of export, resale
and subsequent selling prices charged after the imposi-
tion of the anti-dumping measures.

The investigation exceeded the normal duration of six
months provided for in Article 12(4) of the basic Regu-
lation due to the complexity of the investigation, notably
because of the existence of two forms of duty.

B. PRODUCT UNDER CONSIDERATION

The product reinvestigated is the same as in the invest-
igation that led to the imposition of the measures in
i.e. unwrought unalloyed magnesium, currently
force,
classifiable within
and
ex 8104 19 00 (TARIC code 8104 19 00 20).

8104 11 00

CN codes

Unwrought unalloyed magnesium comprises:

— unwrought magnesium unintentionally containing
small amounts of other elements as impurities, and

— unwrought magnesium,

containing
added elements such as aluminium and zinc, which
does not correspond to one of the alloys described in
the Annex to the Regulation.

intentionally

The uses of unwrought unalloyed magnesium are as
follows:

(12)

— as

an alloying element

in the production of

aluminium alloys

— desulphurisation of steel

— iron nodularisation

— chemical applications, e.g. titanium production

— others, e.g. anode production, pharmaceutical and

military applications.

C. THE REINVESTIGATION

(10)

The investigation sought to establish whether the meas-
ures previously imposed have had the intended effect
and whether any failure to have such effects was as a
result of increased dumping. Such failure can be identi-
fied by (i) no movement, or an insufficient movement,
of resale or subsequent selling prices in the Community
or, if no clear conclusion can be drawn from these price
movements, (ii) a fall in the direct export prices charged
by exporters to the Community.

1. Movement of resale prices in the Community

(a) Examination of whether the remedial effect of the measures
in force was undermined by absorption of the duty

(11)

In establishing whether resale and subsequent selling
prices had moved sufficiently, a comparison was made

IP. The

the price levels during the original

two cooperating
four user

investigation
of
period (1 July 1996 to 30 June 1997, hereinafter
referred to as ‘the original IP’) and those charged during
importers
the
in the
Community and the
companies, which
purchased the product concerned exported from the
PRC both during the original IP and the IP, provided
information on purchase and resale prices of Chinese
unwrought unalloyed magnesium. These cooperating
importers and users account
the total
volume of imports into the Community during the IP.

for 89 % of

A comparison of resale prices charged during the orig-
inal IP and during the IP, including all payable duties,
showed that resale prices had actually fallen since the
original measures were imposed. On average prices fell
by 0,7 % as compared to the level previously established
they should have
in the original
increased by more than 30 %.

IP, while in fact

(b) Claims made by interested parties

Interested parties were given an opportunity to clarify
the situation with regard to resale prices, which could
justify a lack of movement in prices in the Community
following the imposition of measures for reasons other
than absorption of the anti-dumping duties.

None of the importers and users provided any satisfac-
tory explanation for the decrease in resale prices in the
Community. Several parties alleged that
the lack of
movement in resale prices was due to the decrease in
export prices which in turn was caused by a general
decrease in the prices of magnesium on the world
market. In this context, it is difficult to understand why
no party requested a review of normal value within the
time limits set out in the notice of initiation in accord-
ance with Article 12(5) of the basic Regulation. In any
case, the information submitted well beyond the time
limits was incomplete and did not prove the existence of
a change in normal value in Norway (the reference
country) or in respect of world market prices when
compared to those of the original IP.

the original

On the contrary, the information submitted in respect of
prices practised by a Norwegian company showed an
average selling price for the IP above the normal value
established for
the data
extracted from the Metal Bulletin and submitted by one
exporter showed that the average prices in the ‘European
free market’ in the IP were 62 % higher than the Chinese
free market export prices, which shows the continuation
of a pattern of Chinese export prices well below inter-
national and European market prices.

IP. Moreover,

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Official Journal of the European Communities

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(c) Conclusion on resale prices

(13)

The investigation established a decrease in resale prices
between the original IP and the IP. This was found to be
enough evidence of absorption and therefore it was not
necessary to investigate the development of export
prices.

2. New dumping margin

(14)

Since the undermining of the remedial effect of the
measures was established, the revised level of duty had
to be calculated. To that end, in accordance with Article
12(2) of the basic Regulation, export prices were reas-
sessed and the dumping margin recalculated accordingly.

(a) Reassessment of export prices

(15)

Export prices were reassessed pursuant to Article 2(9) of
the basic Regulation because they appeared to be unreli-
able. Indeed, following the imposition of measures resale
prices decreased slightly although they should have
increased as a result of
the anti-dumping duty. As
already explained, no explanation had been given by any
party for this lack of movement of resale prices. All this
pointed to the existence of a compensatory arrangement
between the exporter and the importer. Consequently,
the reassessment was based on the originally established
export prices, taking into account all applicable costs
pursuant to Article 2(9) of the basic Regulation.

imposed, i.e. a variable and an ad valorem. Practically all
exports during the IP were subject to the ad valorem duty.
During the course of the investigation it was found that
the ad valorem duty was absorbed whilst no evidence
could be found for the absorption of the minimum
price. Therefore, the Council considers it as appropriate
that the form of the measures remains the same as in
the original investigation, i.e. a variable duty in the form
of a minimum price for unrelated parties and an ad
valorem duty for related parties. The ad valorem duty is to
be amended with a view to reflecting the increased
dumping.

the cif Community frontier price,

For the ad valorem duty, the new level, expressed as a
is
percentage of
63,4 %. The minimum price, which is not affected by
the new findings, remains the same as in the original
investigation as it corresponds to the normal value
adjusted to a cif Community frontier level.

(18)

Since the existing duties are based on the dumping
margin found in the original
investigation, and since
these duties have been absorbed, it was not necessary to
reassess the injury margin,

HAS ADOPTED THIS REGULATION:

Article 1

(b) Recalculation of the dumping margin taking into account

the reassessed export prices

Article 1(2) of Regulation (EC) No 2402/98 shall be replaced
by the following:

(16)

In line with Article 12 of the basic Regulation, the
countrywide margin of dumping for the Chinese expor-
ters was recalculated. No party requested that normal
value be reviewed pursuant to Article 12(5) of the basic
Regulation. Therefore the reassessed export prices were
compared with the normal value established during the
original IP on a fob basis.

The resulting dumping margin expressed as a percentage
of the cif net, free at Community frontier prices, before
duty, established in the original IP is 63,4 %.

As a result the Council considers that pursuant to Article
12(3) of the basic Regulation, the measures in force
should therefore be amended in accordance with the
new findings.

D. PROPOSED REVISED MEASURES

(17)

The investigation has actually shown that the recon-
structed export prices have fallen and that the dumping
margin has increased by the amount of this fall.

‘2.

The amount of the anti-dumping duty shall be:

(a) the difference between the minimum import price of
EUR 2 622 per tonne and the cif Community frontier
price in all cases where the latter is:

— less than the minimum import price (TARIC addi-

tional code A 156), and

— established on the basis of an invoice issued by an
exporter located in the People's Republic of China
to a party unrelated to it.

No duty shall be collected where the cif Community
frontier price per tonne is equal to or higher than the
minimum import price;

(b) equal to an ad valorem duty of 63,4 % in all other cases
not falling under subparagraph (a) (TARIC additional
code 8900).’

Article 2

To take account of this increased dumping the anti-
dumping measures
It will be
two types of anti-dumping duties were
recalled that

should be amended.

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

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Official Journal of the European Communities

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

Done at Luxembourg, 17 October 2000.

For the Council

The President

L. FABIUS