Council Regulation (EC) No 299/2001 of 12 February 2001 imposing a definitive anti-dumping duty on imports of potassium permanganate originating in the People's Republic of China
Date: 2001-02-12
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, chemical salt, import, originating product, potassium

L 44/4

EN

Official Journal of the European Communities

15.2.2001

COUNCIL REGULATION (EC) No 299/2001

of 12 February 2001

imposing a definitive anti-dumping duty on imports of potassium permanganate 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 11(2) and (6) thereof,

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

Whereas:

(1)

(2)

(3)

1. PREVIOUS INVESTIGATIONS

1.1. Investigations concerning the People's Republic

of China

the Council
By Regulation (EEC) No 1531/88 (2)
imposed a definitive anti-dumping duty on imports of
potassium permanganate originating in the People's
Republic of China (‘China’). The amount of the duty
imposed was equal to either the amount by which the
free-at-Community-frontier price per kilogram net,
before duty, was less than ECU 2,25, or 20 % of that
price, whichever was higher.

In 1994, following a review under Articles 14(1) and
15(3) of Regulation (EEC) No 2423/88 (3), the Council,
by Regulation (EC) No 2819/94 (4), imposed a definitive
anti-dumping duty on imports of potassium permanga-
nate originating in China of ECU 1,26 per kg.

1.2. Investigations concerning other countries

An anti-dumping investigation on potassium permanga-
nate imports originating in India and the Ukraine was
initiated in April 1997. Definitive anti-dumping duties
of 5,6 % and 36,2 % respectively were imposed on
imports from these countries by Regulation (EC) No
1507/98 (5).

2. PRESENT INVESTIGATION

2.1. Request for review

(4)

In April 1999, the Commission published a notice of
impending expiry (6) of the anti-dumping measures in
force on imports of potassium permanganate originating

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

No 2238/2000, (OJ L 257, 11.10.2000, p. 2).

(2) OJ L 138, 3.6.1988, p. 1.
(3) OJ L 209, 2.8.1988, p. 1.
(4) OJ L 298, 19.11.1994, p. 32. Regulation as last amended by Regu-

lation No 1170/95 (OJ L 118, 25.5.1995, p. 6).

(5) OJ L 200, 16.7.1998, p. 4.
(6) OJ C 117, 29.4.1999, p. 3.

(5)

(6)

(7)

(8)

in China. On 12 July 1999, the Conseil Européen des
Fédérations de l'Industrie Chimique (CEFIC) submitted a
request to review these measures pursuant to Article
11(2) of Regulation (EC) No 384/96, (‘the basic Regula-
tion’).

the

request was

lodged on behalf of

sole
The
Community producer, thus representing the totality of
Community production of potassium permanganate.
The request was based on the grounds that the expiry of
the measures would be likely to result in the continua-
tion or
recurrence of dumping and injury to the
Community industry.

2.2. Notice of initiation

Having determined, after consultation of the Advisory
Committee, that sufficient evidence existed for the initia-
tion of a review, the Commission initiated an invest-
igation pursuant to Article 11(2) of the Basic Regula-
tion (7).

2.3. Period of investigation

The investigation of a likelihood of a continuation and
recurrence of dumping covered the period from 1
October 1998 to 30 September 1999 (‘IP’). The exam-
ination of trends relevant in the context of the afore-
mentioned recurrence of injury covered the period from
1995 up to the end of the IP (‘the period considered’).

2.4. Parties concerned by the investigation

The applicant Community producer, the exporters and
exporting producers in China, the importers known to
be concerned, and the representatives of the exporting
country were officially advised of the initiation of the
review. Questionnaires were sent to all these parties and
to those who made themselves known within the time
limit set in the notice of
In addition, the
cooperating producer in the United States, which was
chosen as an analogue country, was advised and sent a
questionnaire. Interested parties were given the oppor-
tunity to make their views known in writing.

initiation.

(9)

The applicant Community producer replied to the ques-
tionnaire, as well as one importer.
two
independent
resellers made their views known in
writing.

In addition,

(7) OJ C 323, 11.11.1999, p. 5.

15.2.2001

EN

Official Journal of the European Communities

L 44/5

(10)

The producer in the analogue country also replied to the
questionnaire.

(11) With respect to the exporting country, no exporters or

exporting producers cooperated in the investigation.

2.5. Verification of information received

(12) All information deemed necessary was sought and veri-
fied for the purpose of deciding the likelihood of a
continuation or recurrence of dumping and injury as
well as a determination of the Community interest. A
verification visit was carried out at the premises of the
sole Community producer, Industrial Química del Nalón
SA-IQN, Oviedo, Spain.

(13)

Interested parties were given the opportunity to request
a hearing, but no such request was made.

(14)

(15)

3. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

3.1. Description of the product under consideration

formula KMnO4

The product under consideration is the same as in the
i.e. potassium permanganate,
previous investigations,
. Potassium
which has the chemical
permanganate falls within CN code 2841 61 00, and is a
compound of manganese, potassium and oxygen whose
manufacture requires two basic raw materials: caustic
potash (KOH) and manganese dioxide or pyrolusite ore
). The product is manufactured in three grades:
(MnO
2
technical (97 % to 98 % purity of KMnO
, in the form of
4
free flowing (containing an anti-
crystalline powder),
caking agent) and pharmaceutical
(minimum 99 %
purity of KMnO
4 in the form of crystals). All grades
show the same basic physical (crystalline) and chemical
properties. It was therefore concluded that all grades
should be considered as one product for the purpose of
the investigation.

in metal

Potassium permanganate is a strong oxidising agent used
for potable water treatment, for waste water treatment,
in the manufacture of chemicals and pharmaceuticals, in
aqua culture,
surface
cleaning, as a disinfectant in agriculture and veterinary
practices, for gas purification, process gas deodorisation,
for bleaching and special
in the textile
industry, in radioactive decontamination, in gas turbine
cleaning and for submarine air purification.

treatments

for metal

refining,

4. CONTINUATION OR RECURRENCE OF DUMPING

4.1. General issues

(17)

(18)

Eurostat statistics show a very low level of imports of
potassium permanganate from China, of 30 tonnes in
1998 and 23 tonnes during the IP. However, Chinese
export statistics (recital 44) show a much higher volume
of 450 tonnes in 1998 and in the previous year. With
regard to this disparity, and in view of the total lack of
cooperation by Chinese exporters or exporting produ-
cers, there is a strong possibility of circumvention of the
existing duties, by declaring the Chinese product as
originating in a number of other countries.

In the context of the continuation of dumping, it was
investigated whether dumping of exports from the
country concerned to the Community was currently
taking place. This was on the grounds that if dumping
was taking place now, then it was reasonable to consider
that it would continue in the future.

(19) As to the examination of

the likely recurrence of
dumping should the current measures be repealed,
it
was investigated both whether future dumping was
likely and also whether any such dumping would take
place in significant quantities. The likelihood of future
dumping was assessed in relation to exports from the
country concerned to third countries and the question of
volume was addressed by examining all relevant market
developments, both domestic and export.

(20) As the purpose of this type of review is to assess the
likelihood of dumping should measures be removed, it
was not considered necessary or appropriate to calculate
dumping margins or allowances with the precision that
would be necessary in an anti-dumping investigation
carried out under Article 5 of the basic Regulation.
Nevertheless, the investigation was carried out to a level
of detail which would permit a finding as to whether
significant dumping had occurred during the invest-
igation period, irrespective of the precise price level of
each export transaction, costs and allowances claimed or
otherwise applied.

(21)

It was noted that the US administration recently decided
to maintain their existing anti-dumping measures against
imports of potassium permanganate originating in
China. However,
it was not considered necessary or
appropriate to draw conclusions from this fact, other
than that it renders far less attractive one important
to which some Chinese production capacity
market
could be redirected (see recital 40).

4.2. Likelihood of a continuation of dumping

3.2. Like product

(16)

Potassium permanganate produced and sold on the
domestic market in the US and that exported to the
Community from China as well as that produced and
sold by the Community industry in the Community
market had effectively identical physical characteristics
and uses and were thus like Products within the meaning
of Article 1(4) of the basic Regulation.

4.2.1. Analogue country

(22)

In the absence of any cooperation on the part of Chinese
exporters, normal value for the exports from China had
to be established in accordance with Article 2(7)(a) of
the basic Regulation, i.e. based on information obtained
in a market economy third country where the product
was produced and sold.

L 44/6

EN

Official Journal of the European Communities

15.2.2001

(23)

In accordance with the Notice of Initiation, the appli-
cant's suggestion to use the United States as an appro-
priate analogue country, as in the previous investiga-
tions, was accepted for a number of reasons:

(29)

The US is the largest world market
for potassium
permanganate and the second largest producer after
China.

The US market is open to imports, which represent
around a 10 % share of US consumption.

Potassium permanganate, from all sources, is a relatively
homogeneous product.

In its major applications, potassium permanganate is
subject to competition from other substitute chemicals.

(24) Other countries (e.g. India, Czech Republic) were consid-
ered less appropriate as reference countries in view of
the scale of production and conditions of competition
prevailing in these markets. Also, Indian producers, who
were approached as a potential reference country, indi-
cated that they would not be able to cooperate.

(25) Given the cooperation of the US producer, and the
absence of comments from any other interested parties,
the US remained the only appropriate and reasonable
choice, as had already been the case in the 1988 and
1994 investigations.

4.2.2. Normal value

(26)

Firstly, it was examined whether the domestic sales made
by the cooperating US producer were representative
when compared to the imports into the Community
concerned by the investigation. This was considered to
be the case as they were made in significant quantities,
measured against
exports
recorded as sold into the Community by the exporting
producers in China during the IP.

average volume of

the

(27)

It was also established that the relevant sales could be
considered as having been made in the ordinary course
of trade, having compared the sales prices and costs of
production for each grade of potassium permanganate
sold by the US producer.

(28) Normal value was thus established as the weighted
average of the prices of all grades of potassium perman-
ganate sold on the US domestic market in the first
quarter of 1999 by the cooperating US producer.
Although the data supplied by the US producer does not
cover the full
IP, these prices were in line with the
weighted average sales prices for the years 1997 and
1998 which were also provided and can therefore be
considered representative for the IP.

The figures submitted by the cooperating US producer
were also verified where possible with other sources.
Given the level of dumping found, and the fact that an
exact calculation of
these levels is not required as
explained in recital 20, it was considered that the figures
need not be further corroborated by an on-site verifica-
tion.

4.2.3. Export price

(30) As no exporting producers cooperated, the export price
was determined on the basis of the facts available. In this
case this was by reference to Eurostat, and to informa-
tion provided by an importer not related to the Chinese
exporters.

(31) According to Eurostat, the weighted average value of
imports from China on a cif European Community fron-
tier basis,
for all grades of potassium permanganate
during the IP was 1 125 EUR/t. This is equivalent to
approximately 960 EUR/t on a fob Chinese border
basis.

(32)

(33)

(34)

(35)

(36)

(37)

Based on evidence provided by the applicant,
the
average import price from China on a cif European
Community frontier basis was around 970 EUR/t which
to approximately 810 EUR/t on a fob
is equivalent
Chinese border basis.

The only European importer which cooperated in the
investigation provided price data which falls within the
range of the above figures.

Chinese export statistics (recital 44) show a unit value of
886 EUR/t for the year of 1998, which is also in line
with the said price levels.

In summary, information on export prices taken from
several
independent sources indicates that the export
price ranges from approximately 800 to 1 000 EUR/t
on a fob Chinese border basis.

4.3. Comparison

Comparisons were made between export prices on a
FOB Chinese border basis and the United States normal
value, which was adjusted accordingly by adding the
average US inland freight from factory to port (fob US
border).

4.4. Dumping margin

The analysis performed shows that exports to the
Community have been dumped at a substantial margin
during the IP. The dumping margins according to the
different sources mentioned in recitals 30 to 35 range
from 108 % to 174 %. These would correspond to
specific duty rates of 1,308 and 1,543 EUR/kg respec-
tively, a rate higher than the duty of 1,260 EUR/kg
currently in force.

15.2.2001

EN

Official Journal of the European Communities

L 44/7

5. LIKELIHOOD OF THE RECURRENCE OF DUMPING

(41)

India, another important market, has also imposed a
substantial anti-dumping duty (equivalent to 149 EUR/t)
on Chinese origin imports, since 1995.

5.1. Likelihood of recurrence of significant volumes

(38)

(39)

(40)

China is the world's largest producer and exporter of
potassium permanganate and currently has a high level
of unused production capacity which has been brought
on stream in the last few years. This excess capacity is
the
equivalent
Community market.

to 5 or 6 times

the volume of

(42)

together with relatively stable world
These factors,
consumption, can only increase the attractiveness of the
Community market, the largest in the world after the US
and China itself.

China has the potential to increase its exports to the
Community market in very significant volumes, particu-
larly as sales in the Chinese domestic market are not
expected to increase in the foreseeable future.

Furthermore, in the USA, the world's largest market in
terms of consumption of potassium permanganate,
Chinese exports, which have been subject
to anti-
dumping duties
since 1983, have virtually ceased.
Following a review in 1999, the level of anti-dumping
duty in the USA has recently been maintained at
128,94 %.

5.2. Likelihood of recurrence of dumping

(43)

Taking into account all the sources of information avail-
able during the proceeding, it can be seen that Chinese
producers have
continued to dump the product
concerned into the Community market in the period
after the present measures were imposed.

(44) Moreover, Chinese exports to third markets have also
consistently been at very low and dumped prices, as
confirmed by comparing the Chinese export statistics
and the normal value determinations in this case:

Chinese exports of potassium permanganate

1996

1997

1998

World

Quantity (t)

Unit value (EUR/t)

EC

Quantity (t)

Unit value (EUR/t)

Source: Chinese export statistics

(45)

In these circumstances there is every reason to believe
that any increased volumes exported from China to the
Community would be at dumped prices.

5.3. Conclusion

The relatively stable consumption on the world market,
the increase over the past five years of the level of
unused capacities and the limited access to other key
export markets indicate that there is a likelihood that the
repeal of
the current anti-dumping measures against
imports of the product concerned from China would
lead to a recurrence of significant volumes of dumped
exports on to the Community market.

(46)

(47)

7 924

1 011

222

843

10 176

984

450

877

10 396

892

450

886

6. DEFINITION OF THE COMMUNITY INDUSTRY

(48)

(CEFIC) acts on behalf of

The applicant
the only
Community producer of the product concerned. This
producer (Industrial Química del Nalón SA-IQN) repre-
sents 100 % of potassium permanganate produced in the
Community during the IP and constitutes, therefore, the
‘Community industry’ pursuant to Article 4(1) of the
basic Regulation.

7. ANALYSIS OF THE SITUATION OF THE COMMUNITY

INDUSTRY

7.1. Consumption

In particular, the examination of dumping with regard to
sales to the European Community during the IP and of
sales to third country markets outside the European
Community, showed a pattern of continued dumping by
the Chinese exporters as well as evidence that any
increased volume of exports from China would be at
dumped prices.

(49)

Consumption in the Community was calculated using
verified data of sales provided by the Community
industry and import volumes obtained via Eurostat.
Consumption decreased by 18 % during the period
1995 to the end of the IP, although consumption in
1995 was unusually high due to a severe drought in
Spain. Consumption during the IP was close to that of
1996, following dips during 1997 and 1998.

L 44/8

EN

Official Journal of the European Communities

15.2.2001

7.2. Volume and prices of imports from the country

concerned

(50) Data from Eurostat suggests that imports from China
remained low throughout the period considered, due to
the existence of anti-dumping measures. However, as
outlined in recital 44, export statistics provided by the
Chinese Government suggests much higher exports to
the Community of 222 tonnes in 1996 and 450 tonnes
in both 1997 and 1998. This represents a market share
during the IP of 10 % (1) which is well above de minimis
levels. Even if the Eurostat figures were correct, and the
volume of imports was very low during the IP, this is
not relevant in the context of an expiry review as the
low volume of imports is, at least in part, attributable to
the measures already in force.

(51) Due to the low level of confirmed Chinese origin potas-
sium permanganate sold on the Community market and
the total non-cooperation from the producers/exporters
in the country concerned,
it is difficult to make any
accurate price comparisons. However, the data available
leads to the conclusion that Chinese prices remain at a
level
the Community
figures show that during the IP,
producer. Eurostat
Chinese
Community
producer prices by an average of 38 %. Similar data for
Taiwan shows only slightly lower undercutting by an
average of 33 %.

significantly below those of

(duty-free)

undercut

prices

(52)

The price of Chinese origin potassium permanganate is
well below both the average market price and the price
of the Community industry. Only in 1997 were prices
close to those of the Community producer, but since
then there has been a growing disparity. Having come
into the Community market in 1997, Taiwanese prices
have consistently undercut the Community producer by
around 25 %. As there is apparently no production in
Taiwan, there is reasonable cause to suspect that this
product is of Chinese origin.

(55)

(56)

7.3. Imports from other third countries

7.3.1. Volumes and market share

69 % of its total capacity, estimated at around 1 000
tonnes per annum. Taiwan, who had no exports to the
Community until 1997 has seen a doubling of volume
year on year since then.

7.3.2. Sales prices

(54)

The USA and the Czech Republic are the main importers
into the Community against whom no anti-dumping
measures are currently in place. The US prices are at a
level close to, but slightly higher, than those of the
Community producer. The Czech Republic prices are the
lowest of all the main exporters to the Community.
However, as explained in recital 53, the scope for further
penetration of the market by Czech exporters is limited
and at maximum would only represent a further 5 %
increase in market share. There is no evidence that these
imports are either causing injury to the Community
industry, or that they are being made at dumped prices.

7.4. Situation of the Community industry

7.4.1. Market share and sales volume

industry

represents

The Community
100 % of
Community production in the IP, as there is only one
Community producer of potassium permanganate. Until
1998, when it went out of business, there was another
Community producer, Chemie AG based in Germany.
this company has not been considered in
However,
the Community industry,
analysing the situation of
except for the indicator on employment.

sales of

The volume of
the Community industry
decreased by 21 %, during the period considered, whilst
its market share fell by 2 %. However, consumption
dropped by 18 % over the same period, so that the
Community industry was able to maintain the majority
of its market share in a declining market.

(53)

Total imports from other third countries increased by
54 % between 1995 and the IP, although imports from
the Ukraine and India have decreased considerably due
to the imposition of anti-dumping duties against these
1507/98 (2).
countries
Conversely, imports from the USA, the Czech Republic,
and Taiwan have increased markedly. In the case of the
Czech Republic, exports to the Community account for

Regulation

(EC) No

by

(1) The figure includes a margin of +/-5 % to protect the confidentiality

of the Community producer.
(2) OJ L 200, 16.7.1998, p. 4.

(57) As already indicated in recital 49, 1995 was exceptional
due to a severe drought in the south of Spain and the
exhaustion of water supplies. This led directly to an
increase in the consumption of potassium permanganate
for the treatment of heavily polluted river water. As the
Community industry was best placed to meet this excep-
tional demand, its sales volumes and market share were
correspondingly improved. A more meaningful and
representative analysis would be to take the period from
1996 to the IP. Over this period, whilst both the volume
of sales and the Community industry's market share
have increased, there has been a reduction in both indi-
cators during the IP from highs in 1997 and 1998.

15.2.2001

EN

Official Journal of the European Communities

L 44/9

7.4.2. Production, capacity and capacity utilisation

7.4.10. Conclusions on the situation of

the Community

(58)

of

utilisation

the Community

Capacity
industry
increased by 15 % over the period considered. Capacity
utilisation was low during 1997 due to the high stock
levels at the end of 1996 (recital 65). Following the
introduction of anti-dumping measures against India and
Ukraine in 1998, the capacity utilisation during the IP
returned to its 1996 level.

7.4.3. Cost of production

(59) Unit costs per

tonne of potassium permanganate
increased by 5 % over the period considered. There was
a peak in 1997 explained by the low production levels
that year and the ensuing effect of fixed costs on the
unit price.

7.4.4. Employment

(60) Whilst the remaining Community producer maintained
a stable employment situation throughout the period
considered,
in mind that another
Community producer completely shut down operations
during the period considered, resulting in a loss of
employment.

it should be kept

(68)

7.4.5. Production and productivity

(61)

Production and productivity increased by 16 % and
21 % respectively over the period considered.

7.4.6. Price development

(62) An analysis of sales prices of the Community industry
showed that sales prices increased by 12 % over the
period considered. The largest increase occurred in 1998
when anti-dumping measures were imposed on imports
of potassium permanganate from India and Ukraine. The
unit price has been stable for the last two years.

7.4.7. Profits

(63) During the period considered the Community industry
showed a profit during 1995 followed by losses in
1996, 1997 and 1998. The Community industry
returned to modest profitability during the IP. This is
explained by the imposition of anti-dumping measures
against India and the Ukraine in 1998, following which
there was a marked recovery.

7.4.8. Export sales of Community industry

(64)

Export sales are mainly directed to USA, Norway and
Switzerland. Except for a loss in 1995, the Community
industry showed a profit on its export sales between
1996 and the IP.

industry

(66) Most of the indicators suggest that the situation of the
Community industry is improving. This is particularly
noticeable from 1998 onwards, when anti-dumping
measures were imposed against India and Ukraine. Over
the period considered output and productivity have
increased, prices have risen and the IP saw a return to
modest profitability. The decrease in consumption and
sales volumes during the period considered should be
seen in the light of the fact that the 1995 base level was
inflated due to a drought in Spain. However, both indi-
cators have shown improvement during 1997 and
1998, with some fall-off during the IP. At the same time,
the Community industry has maintained its market
share.

(67) During the period considered,

the
Community industry did not change, whilst the utilisa-
tion of that capacity increased. However, the cost of
production of potassium permanganate increased.

the capacity of

India,

against China,

Taken together, the indicators point to a situation where
anti-dumping measures
and
Ukraine have allowed the Community industry to
compete on a fair footing. Prices of US exports to the
Community market, where there is no suggestion of
injurious dumping, are at a level close to those of the
Community producer, suggesting these prices can be
considered as those achievable in a fair and open
market. With the imposition of measures against China,
India and Ukraine, price increases have been possible.
This has resulted in profitable trading during the IP, the
first profitable trading since 1995.

8. LIKELIHOOD OF RECURRENCE OF INJURY

8.1. Community industry

(69)

The situation of the Community industry is outlined in
recitals 55 to 68.

8.2. Likely exports from China

(70) Although limited, there is evidence to show that prices
charged by Chinese exporters, particularly to Chile and
Australia, are at levels that would significantly undercut
the Community industry. The information available
from Eurostat and the Chinese authorities shows potas-
to the
coming
sium permanganate
Community
undercutting Community
industry prices during the IP.

from China

significantly

7.4.9. Development of stocks

(71)

(65)

Stock levels were high at
the end of 1996 due to
increased production but since there was no repetition
of
they have been progressively
reduced.

the 1995 drought,

There have been large capacity increases by Chinese
manufacturers. This is against a background of no
discernible future increases in domestic demand. Whilst
China had only a small share of the Community market
during the IP, its excess capacity alone could satisfy total
Community consumption several times over.

L 44/10

EN

Official Journal of the European Communities

15.2.2001

8.3. Conclusion

9.2. Interests of Community industry

(72)

It was concluded in recitals 46 and 47 that there was a
likelihood of a return to the dumping in significant
quantities of Chinese potassium permanganate onto the
Community market were anti-dumping measure allowed
to lapse. The likely volume and prices of these imports
would almost certainly have a profound negative effect
on the Community market.

(73) With no ancillary increase in Community demand, the
result would be to reduce significantly either the market
share or the prices of the Community industry. In all
probability, both would be affected resulting in a drop in
profitability and ultimately in a threat to the future
viability of the Community industry. It was therefore
concluded that the removal of anti-dumping measure
against potassium permanganate from China would be
very likely to cause material injury to the Community
industry.

9. COMMUNITY INTEREST

9.1. Introduction

(74)

(75)

(76)

Pursuant to Article 21 of the basic Regulation, it was
examined whether a prolongation of the existing anti-
dumping measures would be against the interest of the
Community as a whole. The determination of
the
Community interest was based on an appreciation of all
the various interests involved.

the measures,

In order to assess the likely impact of continuation or
non-continuation of
information was
requested from all interested parties mentioned above.
Questionnaires were sent to the Community producer
and all known unrelated importers of potassium
permanganate. The Community producer as well as one
importer replied to the questionnaire. Two independent
resellers of potassium permanganate also made submis-
sions.

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 are already in place. Consequently, this allows
the assessment of any undue negative impact the current
anti-dumping measures may have had in the past on the
parties concerned to be taken into account.

the present

(77) On this basis it was examined, whether, despite the
the
conclusions on dumping, on the situation of
Community industry and the likely continuation and/or
recurrence of
injurious dumping, compelling reasons
exist which would lead to the conclusion that it is not in
the Community interest to maintain measures in this
particular case.

(78)

It
is considered that without maintaining the anti-
dumping measures established in the previous invest-
injurious dumping is likely to continue/recur
igation,
and that the situation of the Community industry, which
is still fragile, will deteriorate. The Community industry
has shown that it is able to compete on the Community
market against competitors which do not sell at dumped
prices. The Community industry has also shown that it
has been able to benefit from the anti-dumping meas-
ures in place.

(79) During the period considered the Community industry
showed that it is able to compete in the Community
market,
in the US market and in other third country
markets where fair conditions prevail. In addition, the
Community industry has shown that it is viable and
indeed capable of benefiting from the anti-dumping
measures in place. Improvements in productivity (recital
61) and capacity utilisation (recital 58), together with a
return to profitability during the IP have shown that, in
a market where measures exist to counteract injurious
dumping, it is able to compete fully and effectively on
the Community market.

(80) However, if measures against injurious dumping expire,
the Community market would be open to large volumes
of dumped imports from China. The situation of the
Community industry would deteriorate to the extent
that its viability would be put at risk, with detrimental
effects on employment, consumer choice, etc.

9.3. Interests of users and importers

(81) Only one questionnaire response was received from an
importer, two submissions from independent resellers,
and no submissions were made by end users. The
importer made no comments either
supporting or
opposing the continuation of measures, whilst the inde-
pendent resellers were in favour of maintaining the
existing measures.

to be limited. Other

(82) Given this situation, the implications of an anti-dumping
duty on the overall costs of the users and importers
appear
imports which are in
competition with the Community industry will ensure
the maintenance of a high level of competition. Since
the new applications for the product include drinking
water and waste purification, and the customers in this
case are not big industries but municipalities or public
utilities, stability of supply is an important objective.
Therefore it is in the interest of the users and, more
the Community
particularly,
industry remains as a reliable supplier of this product
and is not
the market. The lack of
response from importers and users suggests that the
measures currently in force have not had a significant
impact on their business.

the general public that

forced out of

15.2.2001

EN

Official Journal of the European Communities

L 44/11

9.4. Conclusion on Community interest

HAS ADOPTED THIS REGULATION:

(83)

The expiry of measures would have a serious impact on
the economic prospects of the Community industry,
whereas importers would only be affected, if measures
increases in
were extended, by continuing marginal
costs. After balancing the various interests involved, it is
considered that maintaining the anti-dumping measures
will allow the present situation of fair competition to
continue, by
effects of
dumping practices. Therefore, there are no compelling
reasons against the continuation of measures.

eliminating the

injurious

10. FINAL CONCLUSION

(84)

It follows that, as provided for by Article 11(2) of the
basic Regulation, the anti-dumping measures currently
in force with regard to imports of potassium permanga-
nate originating in China should be maintained,

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of potassium permanganate, falling within CN code
2841 61 00, originating in the People's Republic of China.

2.
The amount of the duty applicable to the net, free-at-
Community-frontier price, before customs clearance, shall be
1,26 EUR/kg.

3.
Unless otherwise specified,
concerning customs duties shall apply.

the provisions

in force

Article 2

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 Brussels, 12 February 2001.

For the Council

The President

B. RINGHOLM