Council Regulation (EC) No 900/2001 of 7 May 2001 imposing definitive anti-dumping duties on imports of urea ammonium nitrate solutions originating in Poland
Date: 2001-05-07
Institutions: Council of the European Union
Subjects: Poland, anti-dumping duty, anti-dumping legislation, import, organic fertiliser, originating product

9.5.2001

EN

Official Journal of the European Communities

L 127/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 900/2001

of 7 May 2001

imposing definitive anti-dumping duties on imports of urea ammonium nitrate solutions
originating in Poland

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 Articles 11(2) and 11(3) thereof,

originating in these other countries were dumped and
had caused material injury to the Community industry.
It was considered appropriate to impose duties in the
form of a specific amount per tonne, in order to ensure
the efficiency of the measures and to discourage any
price manipulation.

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

C. PRESENT INVESTIGATION

Whereas:

A. PREVIOUS INVESTIGATION

(1)

By Regulation (EC) No 3319/94 (2), the Council imposed
a definitive anti-dumping duty on imports of urea
(‘UAN’) originating in
ammonium nitrate solutions
Bulgaria and Poland. The measures applying to imports
from Bulgaria consisted of a specific duty, except for one
producer and one exporter from whom a joint under-
taking was accepted by Commission Decision 94/825/
EC (3). Polish imports of UAN were made subject to a
variable duty based on a minimum import price when
directly invoiced by certain companies to an unrelated
importer.
imports of UAN from
In all other cases,
Poland were subject to a specific duty.

B. INVESTIGATIONS CONCERNING OTHER COUNTRIES

(2)

By Regulation (EC) No 1995/2000 (4),
the Council
imposed definitive anti-dumping duties on imports of
UAN originating in Algeria, Belarus, Lithuania, Russia,
and Ukraine. It was established that the imports of UAN

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

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

(2) OJ L 350, 31.12.1994, p. 20.
(3) OJ L 350, 31.12.1994, p. 115.
(4) OJ L 238, 22.9.2000, p. 15.

(3)

(4)

(5)

Following the publication, in June 1999 (5), of a notice
of the impending expiry of the anti-dumping measures
in force,
for an
the Commission received a request
expiry review lodged by the European Fertiliser Manufac-
turers Association (EFMA) on behalf of a major propor-
tion of Community producers of UAN (‘applicant
Community producers’). The request alleged that injur-
ious dumping of imports originating in Poland would be
if measures expired. The applicant
likely to recur
Community producers did not request the initiation of
an expiry review concerning imports originating in
Bulgaria on the grounds that such recurrence was not
likely for Bulgarian imports. Consequently the measures
applicable to imports originating in Bulgaria expired on
1 January 2000.

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 Regulation (EC) No
384/96 (the ‘basic Regulation’).

likewise after consultation of the
At the same time,
Advisory Committee, the Commission initiated an ex
officio interim review pursuant to Article 11(3) of the
the
basic Regulation,

form of

limited

the

to

(5) OJ C 176, 22.6.1999, p. 14.

L 127/2

EN

Official Journal of the European Communities

9.5.2001

(6)

(7)

measures in force with respect to the imports originating
in Poland (1). The Commission initiated this interim
review in order to allow for a possible adaptation of the
type of measures for Poland, in the event of the meas-
ures against Polish imports being maintained, taking into
account the need to ensure the effectiveness of the meas-
ures and the form of measures which might eventually
be imposed on imports of the same product originating
in other countries.

The investigation into the continuation and/or recur-
rence of dumping and injury covered the period from 1
January 1999 to 30 November 1999 (‘IP’). The exam-
ination of the trends relevant for the assessment of a
likelihood of a continuation and/or recurrence of injury
covered the period from 1 January 1995 up to the end
of the IP (‘period under review’).

the

their

advised

importers/traders,

applicant
The Commission officially
the exporter and exporting
Community producers,
producers in Poland,
repres-
entative associations, associations of users known to be
concerned, and the representatives of the Polish Govern-
ment of the initiation of the review. The Commission
sent questionnaires to all these parties and to those who
made themselves known within the time limit set in the
notice of
initiation. The Commission also gave the
parties directly concerned the opportunity to make their
views known in writing and to request a hearing.

(8)

The following Community producers replied to the
questionnaire:

(a) Agrolinz Melamin GmbH, ADM — Linz, Austria

(b) DSM Agro BV — Sittard, Netherlands

(c) Fertiberia S.A — Madrid, Spain

(d) Grande Paroisse SA — Paris, France

(e) Hydro Agri Chafers — Immingham, United

Kingdom

(f) Hydro Agri France — Nanterre, France

(g) Hydro Agri Rostock — Rostock, Germany

(h) Hydro Agri Sluiskil BV — Sluiskil, Netherlands

was verified by examining their coherence and consis-
tency with the previously verified data.

(10)

The Commission sent out questionnaires to 20 unrelated
importers/traders and to one association of importers.
from the
Nine answers were received including that
association. None of
these importers provided any
specific figures since they did not import UAN from
Poland during the period under review and accordingly
no verification visit was carried out.

(11)

Following the receipt of a questionnaire reply, verifica-
tion visits were also carried out at the premises of the
following companies:

(a) Zaklady Azotowe ‘Pulawy’ SA, Pulawy (‘ZAP’), an

exporting producer

(b) CIECH SA, Warsaw, an exporter

(12)

D. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

The product under consideration in this proceeding is
urea ammonium nitrate solution, falling within CN code
3102 80 00. It is the same as in the original
invest-
igation, i.e. a liquid fertiliser commonly used in agricul-
ture. It consists of a mixture of urea and ammonium
nitrate in water. The water content is approximately
70 % of
the mixture (depending on the nitrogen
content), the remaining part consisting equally of urea
and ammonium nitrate. The nitrogen (N) content is the
most significant element of the product, and it can vary
between 28 % and 32 %.

(13) As the previous investigation has shown, UAN is a pure
commodity product, having the same basic physical and
chemical characteristics whatever the country of origin.
Therefore UAN produced and sold in the Community by
the applicant Community producers and UAN produced
in Poland and sold domestically or exported to the
Community are considered to be like products, within
the meaning of Article 1(4) of the basic Regulation.

E. LIKELIHOOD OF A RECURRENCE OF DUMPING

(i) Kemira Agro Rozenburg B.V. — Rotterdam, Nether-

lands

1. Preliminary remark

(j) SKW Stickstoffwerke Piesteritz GmbH — Witten-

berg, Germany

(9)

In view of the fact that the information provided by
these same Community producers was duly verified in
the framework of the proceeding referred to in recital 2
concerning imports of UAN originating in Algeria,
Belarus, Lithuania, Russia and Ukraine, for which the
investigation covered the years 1995 to 1998 as well as
five months of the present IP, it was considered appro-
priate, in the current proceeding, not to carry out addi-
tional verification visits at the premises of the companies
in question. However, the accuracy of the data provided

(1) OJ C 369, 21.12.1999, p. 22.

(14) Under Article 11(2) of the basic Regulation, the purpose
of this type of review is to determine whether or not the
expiry of the measures would be likely to lead to a
continuation or recurrence of dumping. Since there were
no imports of the product under consideration from
Poland to the Community during the IP, the analysis
focused on whether the removal of the measures would
be likely to lead to a recurrence of dumping in signifi-
cant volumes. In this respect, the pricing behaviour of
Polish producers on third country markets was exam-
ined in order to determine whether the product under
consideration was sold there at dumped prices. It has
been further assessed whether, should the measures be
repealed, the Polish producers would be likely to resume
exporting UAN to the Community following the same
pricing behaviour.

9.5.2001

EN

Official Journal of the European Communities

L 127/3

(15)

It is recalled that, in the original investigation, the indi-
vidual dumping margins found for the two producers
amounted to 40 % and 27 % respectively. The invest-
igation did not reveal the existence of any Polish UAN
producers other than the two aforementioned producers.

(16) One company did not provide any detailed information
on sales to other countries, domestic sales or cost of
production, and was accordingly informed that the find-
the facts
ings would be established on the basis of
available,
in accordance with Article 18 of the basic
Regulation, if the information was not submitted within
a set time limit. No information was submitted subse-
quently by that company. It should be noted that, on the
that company had a
basis of
much smaller production capacity than the cooperating
one.

information available,

(17)

(18)

2. Exports to third countries

(a) Export price

Exports by the cooperating producer were made directly
to independent importers in other countries, mainly to
the North American market which accounted for a high
proportion (two thirds) of the company's total exports
in the IP, and a smaller proportion (one third) to the
Czech Republic. Polish exports to the USA and Canada
accounted for a not insignificant part of combined total
imports by these two countries, and represented a signif-
icant proportion of the producer's output.

for

In view of the nature of this investigation, it was consid-
ered that it would be unreasonable to request, for the
purpose of a likelihood of recurrence of dumping test,
detailed information on exports
the whole IP.
Instead, information was requested on all transactions
covering the last three month period included in the IP.
The export price was therefore determined on the basis
of the prices paid or payable by unrelated importers in
third countries during the said three month period. The
cooperating producer challenged this approach at a later
stage
and requested that data
concerning the whole IP be used. In view of the lateness
of the suggestion, it was not considered practicable to
the analysis. Furthermore, even if
alter the basis of
unverified data for previous months were to be taken
into account, the picture would not change so signifi-
cantly as to alter
the conclusions found regarding
exports to third countries from Poland.

in the procedure

then determined whether these domestic sales had been
made in the ordinary course of trade. In this regard, the
investigation showed that the volume of sales above unit
production cost represented more than 10 % but less
than 80 % of all sales. Therefore normal value was estab-
lished on the basis of the prices actually paid for all
profitable sales of the product under consideration.

(c) Conclusion on exports to third countries

(20)

(21)

For the cooperating producer, the normal value was
compared with the export price for each country of
destination on a weighted average to weighted average
basis, after making certain adjustments to ensure a fair
comparison.

It was found that the export prices charged by the
cooperating producer (which accounted for 90 % of
total Polish exports in the IP) to the North American
market were substantially below the normal value estab-
lished for it, resulting in significant dumping margins in
respect of its sales to both the USA and Canada. The
export sales to these two countries accounted for two
thirds of total export sales of this company. With regard
to sales to the Czech Republic, a neighbouring market
which accounted for the remaining one third of the
company's total exports,
little or no dumping was
found.
Indeed, the company adopted the same price
strategy as for its domestic market.

(22)

Since the other producer failed to provide detailed infor-
mation, no calculations were made. It should be noted
that this producer only exported to the Czech Republic,
in relatively low volumes.

3. Potential for a rise in dumped exports to the

Community

(23)

The investigation established that Polish companies have
the capacity to produce significant additional volumes
for export to the Community. These additional volumes
could well reach the significant levels found for the IP of
the original investigation. Moreover, these exports would
in all

likelihood be made at dumped prices.

(a) Cooperating exporting producer

(b) Normal value

(19)

For the cooperating producer,
it was first determined
that the total volume of domestic sales of UAN was
representative in relation to export sales.
Indeed, the
sales volume on the Polish domestic market was higher
than the sales volume exported to third countries. It was

(24) Given the cooperating producer's relatively low level of
capacity utilisation in the IP, there is room for a consid-
erable increase in production. There is also a real poss-
ibility of shifting production from ammonium nitrate to
UAN, given the fact
the additional equipment
required for producing UAN would not involve any
major investment.

that

L 127/4

EN

Official Journal of the European Communities

9.5.2001

(25)

the Community
Should the measures be repealed,
market might become more attractive for Polish produ-
cers than the North American market. As a matter of
fact, the investigation showed that, during the IP, UAN
prices on the North American market were slightly
lower than prices on the Community market. Moreover,
this latter market is considered more attractive by Polish
exporting producers due to its geographical proximity,
which entails cheaper transport costs. Thus, for the same
selling price charged on the North American market,
Polish exporting producers could achieve a higher
margin on the Community market. Indeed, if the same
or a slightly lower selling price were to be charged to
Community customers, such a price would still be
dumped, despite the lower transport costs. Moreover, in
view of the cooperating producer's low capacity utilisa-
tion rate, it has every economic interest in selling at even
lower prices as long as its variable costs are covered and
as long as there is no risk of endangering the prices
the
charged to the US.
Community market used to be Poland's major export
market for UAN before the imposition of anti-dumping
duties. Moreover, even when measures were in force, in
particular during 1996 when the Community market
price was above the minimum import price imposed by
the measures, approximately 50 % of Polish production
was exported to the Community.

It should be recalled that

(26)

In addition, following the imposition of anti-dumping
measures on imports of UAN originating in Algeria,
Belarus, Lithuania, Russia and Ukraine, there will be
greater opportunities for other producers/exporters to
regain market share.

The cooperating exporting producer argued, on the basis
of sales projections, that in the future it would no longer
be in a position to export UAN to the Community
market. The reasons for this were (i) the expected signifi-
cant increase in its domestic sales of ammonium nitrate,
limiting the availability of ammonium nitrate for the
production of UAN, and (ii)
the growing domestic
market for UAN.

(27)

(28)

(29) As far as the development of domestic sales of UAN is
concerned, it is clear from the Polish cooperating produ-
cer's sales figures for the first eight months of the year
2000 in fact increased far less than forecast.

(30)

(31)

Furthermore,
it has been found that a considerable
volume of UAN was again exported to the Community
in the year 2000. Indeed, in the period from January to
October 2000, total exports of UAN from Poland to the
Community amounted to 5 % of Community consump-
tion in the IP.

(b) Non-cooperating producer

The second Polish exporting producer was found to
have exported a significant volume to the Community in
1996 while the Community market price was tempor-
arily above the minimum import price. During the
previous investigation, it was found that this producer
had a significant production capacity and there is no
indication that this has changed. From this it can be
concluded that the company is potentially a significant
exporter to the Community should anti-dumping meas-
ures be repealed. In the absence of cooperation from this
producer,
it was concluded that its pricing behaviour
concerning any future exports to the Community would
not significantly differ from that adopted by the other
producer and from its own behaviour during the orig-
inal

investigation.

(c) Conclusion on potential exports to the Community

(32) Given the above it can be concluded that the Polish
exporting producers clearly have the capacity to export
large quantities of UAN at dumped prices.

(33)

The Community market used to be Poland's major
export market for UAN. Even when measures were in
force, in particular during 1996 when the Community
market price was above the minimum import price,
approximately 50 % of production was exported to the
Community. Should the measures be repealed,
this
is likely to become once again an attractive
market
outlet for Polish producers.

4. Conclusion on the likelihood of a recurrence of

dumping

Even though the investigation confirmed that domestic
sales of ammonium nitrate had indeed significantly
increased between 1998 and 1999, this increase started
from relatively low levels because domestic consumption
decreased by 15 % between 1996 and 1998.
is
expected that these domestic sales will remain at the
1999 level or increase only slightly in the future. This
has even been confirmed by the Polish cooperating
producer's own sales figures for the first eight months of
the year 2000. It seems, therefore, that the large increase
in domestic sales between 1998 and 1999 should be
considered exceptional.

It

(34)

Polish exporting producers have the capacity to increase
significantly their production volume of UAN because of
their substantial unused production capacity.

therefore most

(35) Any future increase in domestic consumption will not
be sufficient to absorb these possible additional volumes,
likely be exported. This
which will
conclusion is reinforced by the fact that, during the
period from the beginning of 1995 until the end of the
year 1998, Polish producers exported in general a high
percentage of
their production (more than 80 % on
average).

9.5.2001

EN

Official Journal of the European Communities

L 127/5

(39)

(40)

(36)

(37)

In the event of the measures being repealed, it is likely
that most Polish exports of UAN would be directed to
the Community market due to its geographical prox-
imity and consequent cheaper transport costs. In addi-
tion,
the imposition of anti-dumping measures on
imports of UAN originating in five other third countries
might provide a further incentive to increase exports to
the Community, all the more so because the Community
market used to be Poland's major export market for
UAN before the imposition of anti-dumping duties.

current

The Polish exporting producer's
apparent
dumping practices on the North American market, the
price level prevailing on the Polish market and the price
level prevailing on the Community market indicate that,
should Polish exports resume, there is a strong likeli-
hood that imports in the Community would also be
dumped.

(38)

It is therefore concluded that there is a likelihood of
recurrence of dumping,
should the measures be
repealed.

F. DEFINITION OF THE COMMUNITY INDUSTRY

represented more

The Community producers which replied to the ques-
tionnaire
the
Community production of UAN during the IP and there-
fore constitute the Community industry within the
meaning of Article 4(1) and Article 5(4) of the basic
Regulation.

85 % of

than

1 482 000 tonnes during the IP. Over the whole period
under review, total imports decreased by around 5 %.

it
(43) With respect to the volume of the Polish imports,
in
drastically decreased over the period under review,
particular as from 1997, from 360 000 tonnes in 1995
to nil during the IP. The investigation established that
the trend of the Polish imports was the result of the
combination of the anti-dumping measures imposed at
the end of 1994 and of the evolution of the average
Community market price of UAN, as explained below. It
should be recalled that before the imposition of the
measures, the Polish imports of UAN reached the level
in 1992 and around
of around 520 000 tonnes
time
405 000 tonnes in 1993, representing at
around 50 % of all

imports.

that

(44)

imposition of

In this context, as confirmed by Regulation (EC) No
1995/2000, certain third countries have benefited from
the
anti-dumping duties on Polish
imports. Their export volume to the Community
increased from 869 000 tonnes in 1995 to 1 393 000
tonnes during the IP.

(45) As to the other third countries' import volumes, they
strongly decreased over the period under review, repre-
in 1995,
total
senting around 21 % of
compared to 6 % during the IP.

imports

G. THE SITUATION OF THE COMMUNITY MARKET

(b) Price evolution of the imports

1. Community consumption

The apparent Community consumption was established
on the basis of the sales volumes of the Community
industry on the Community market, the information
contained in the complaint concerning the remaining
Community producers, the information provided by the
cooperating Polish exporting producer and Eurostat
figures. Volumes have been, where appropriate, adapted
so as to correspond to UAN solutions with a nitrogen
content of 32 %.

(41) On this basis, Community consumption decreased
between 1995 and 1997, from 3 155 000 to 2 882 000
tonnes. Afterwards, it significantly increased and reached
the level of 3 413 000 tonnes during the IP. This
increase was especially marked between 1998 and the IP
(+15 %). Over
the
Community consumption increased by 8,2 %.

the whole period under

review,

(46) After the imposition of anti-dumping measures against
imports of UAN originating in Poland and Bulgaria,
imports from
prices recovered until 1996. Thereafter,
the five countries concerned by Regulation (EC) No
1995/2000 exerted a downward price pressure on the
Community market. In order to face this situation the
follow the
Community industry had no choice but
decreasing prices in order to keep its market share. The
Polish exporting producers were not in a position to
follow the Community market price as soon as it fell
below the level of the minimum import price to which
their imports had been subject since the imposition of
the anti-dumping measures. As a consequence, Polish
producers have withdrawn from the Community market
since 1998.

3. Economic situation of the Community industry

2. Evolution of imports

(a) Import volumes

(42)

imports of UAN in the Community followed a
Total
downward trend during the first
the
period under review, from 1 565 000 tonnes in 1995 to
in 1997, and then increased to
990 000 tonnes

three years of

(a) Production

(47)

The Community industry's production of UAN increased
by 10,4 % between 1995 and the IP, i.e. from 1 484 000
tonnes
significant
increase took place between 1996 and 1997, after the
introduction of anti-dumping measures on imports of
UAN originating in Poland and Bulgaria.

to 1 639 000 tonnes. The most

L 127/6

EN

Official Journal of the European Communities

9.5.2001

(b) Capacity and capacity utilisation rates

(g) Profitability

(48)

(49)

total production capacity of

The
the Community
industry was relatively stable over the period under
review. Capacity utilisation increased from 38 % in 1995
to 43 % in 1997 and subsequently fell back to 41 %
during the IP.

(54)

It should however be noted that the production capacity
installed can be used for the production of different
fertilisers which can be sold either individually or mixed
together, as is the case for the production of UAN. The
absolute level of capacity utilisation rate as well as its
development is accordingly also affected by the develop-
ment of other fertilisers.

The weighted average profitability of the Community
industry deteriorated by 15,2 percentage points between
1995 and the IP from + 4,9 % to – 10,3 %. After having
reached a peak in 1996 (+ 6,2 %), it deteriorated by 16,5
percentage points between that year and the IP. This
evolution should be seen in the light of the price devel-
opment experienced by the Community industry during
the
the same period. The investigation showed that
Community industry's sales price increased between
1995 and 1996, whilst it afterwards started to decrease
mainly because of the price pressure exerted by imports
from the five countries concerned by Regulation (EC) No
1995/2000. It should be recalled that, during the IP of
the initial investigation (i.e. April 1992 to March 1993),
the Community industry incurred losses of more than
5 %.

(c) Sales in the Community

(50) During the period under review, the sales volume of the
Community industry followed an increasing trend,
which was however temporarily interrupted between
1997 and 1998. This trend should be analysed in the
light of the overall market development. As a matter of
fact, the decrease of the Community industry's sales
volume between 1997 and 1998 took place when the
thus resulting in loss of
overall market was stable,
market shares. The increasing volume between 1998
and the IP, however, followed the market trend. Despite
the increasing trend of the sales volume, the position of
the Community industry in the market has overall dete-
riorated since 1997. The Community industry was not
able to take advantage of the increase in consumption
because of the pressure of the five countries concerned
by Regulation (EC) No 1995/2000.

(d) Stocks

(51)

The level of stocks is not considered to be a valid injury
indicator owing to the seasonal nature of the sales and
the fact that UAN is partly stored by the producers
themselves and partly by the cooperatives of farmers, i.e.
the users of the product into consideration.

(e) Market share

(55)

The return on investments broadly followed the profit-
ability curve during the period under
review. The
decreasing trend was even more marked due to the joint
effect of the decreasing profitability and increasing net
investments
as
described below. It should be noted that both direct
investments and a portion of
investments indirectly
related to the production of the product concerned have
been considered.

from new acquisitions,

resulting

(h) Cash flow

(56)

The cash flow generated by the Community industry in
relation to sales of UAN also followed the profitability
curve.

(i) Ability to raise capital

(57) Due to the structure of the complainant companies, i.e.
the fact that the fertiliser producers are a part of large
chemical groups also dealing with other products, it was
not possible to establish the ability to raise capital for
the product under consideration only, and it was there-
fore considered as not being a meaningful indicator to
measure any injury.

(52) After a gain of 15 percentage points between 1995 and
1997, from 45,8 % to 60,7 %, when the measures were
taking effect, the Community industry's market share
fell, between 1997 and the IP, by 8,4 percentage points.

(j) Employment and wages

(f) Sales prices of the Community industry

(53)

The Community producers' average net
sales price
decreased from EUR 111,3 in 1995 to EUR 78,3
during the IP. As explained in recital (46), the fall was
particularly marked between 1996 and the IP,
i. e.
– 32,2 %.

(58)

in the Community

Employment
industry, while
increasing between 1995 and 1996, from 330 to 339
employees, decreased thereafter and reached the level of
322 employees in the IP, a decrease of 5 %.

(59) With respect to overall wages, they followed a similar
decline as compared to the decrease of the number of
persons employed.

9.5.2001

EN

Official Journal of the European Communities

L 127/7

(k) Upstream investment

is confirmed by their export price behaviour on
third countries markets, namely North America.

(60)

(61)

important

investments of

The most
the Community
industry during the period under review took place
during the years 1996 to 1998, and were related to the
production facilities for urea and nitric acid, which are
both raw materials used for the production of UAN
solutions, but are also used for other purposes such as
the production of solid ammonium nitrate and solid
for which a more positive outlook existed as
urea,
compared to UAN. Direct investments related only to
the last step of the production process, i.e. the mixing of
ammonium nitrate and urea, represent a minor fraction
of the figures shown above. Those direct investments
remained at a relatively stable level during the period
under review.

(b) Such a price behaviour of Polish exporting produ-
cers, coupled with their ability to deliver significant
likelihood have a
quantities of UAN, would in all
general price-depressing impact on what is a very
price-sensitive commodity market. This
in turn
would lead to a recurrence of injury in terms of
decreasing sales prices of the Community industry,
its sales volumes and market shares as well as the
consequent impact in terms of profitability. In this
context,
imports from Algeria,
Belarus, Lithuania, Russia and Ukraine recently
followed the very same pricing and volume patterns
and these imports had similar effects on the
Community industry as those outlined above.

is recalled that

it

4. Conclusion on the analysis of the situation of the

Community market

the minimum import price on
The introduction of
Polish imports had in a first stage a positive impact on
the Community industry, which could recover from its
weakened economic situation. However, starting from
the year 1997, and as confirmed by Regulation (EC) No
1995/2000, Algeria, Belarus, Lithuania, Russia and
Ukraine largely contributed to a general price depression
on the Community market by decreasing their average
sales price by around 35 % between 1996 and 1997. By
doing so, they were able to expand their export volume
to the Community, were rapidly in a position to take
over the Polish market shares, and consequently caused
a significant deterioration of the economic situation of
the Community industry.

(c) The Community industry is still in a difficult situa-
tion having regard in particular to its profitability.
Indeed, although the situation of the Community
industry, following the imposition of the measures
under consideration, markedly improved in the first
two years of application of the measures, it deteri-
orated again, in particular as from 1997, due to the
injurious dumping from other countries' imports, as
established in Regulation (EC) No 1995/2000. In this
regard,
should the measures against Poland be
the
repealed, not only would the situation of
Community industry again be put at a risk, but also
the benefit which the Community industry should
derive from the measures imposed against
these
other countries could be weakened or even nullified.

(63) On the basis of the above, it is concluded that, should
the measures be repealed, there is a likelihood of recur-
rence of injury.

H. LIKELIHOOD OF CONTINUATION AND/OR

RECURRENCE OF INJURY

I. COMMUNITY INTEREST

(62)

In order to assess the likely effect of the expiry of the
measures in force, the following elements were consid-
ered:

1. Preliminary remark

(a) As explained under recitals 23 to 31:

— there are clear indications that the Polish produ-
cers have the potential to raise their production
and export volumes,

— should the measures lapse, it is likely that these
additional volumes will be shipped to the
Community market,

in the absence of measures,

— on the basis of the export prices established in
respect of exports to North America, it is likely
that,
the Polish
exporting producers would adopt a policy of
dumped prices. These low prices, which would
be charged also in order to regain their lost
market shares, are likely to further injure the
Community industry. The possibility for
the
Polish exporting producers to lower their prices

(64)

(65)

In accordance with 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
the
involved,
Community industry, the importers/traders as well as
the users of the product under consideration.

those of

interests

i. e.

that

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, the
fact
thus
analysing a situation in which anti-dumping measures
have already been in place, would allow the assessment
of any undue negative impact on the parties concerned
by the current anti-dumping measures.

investigation is a review,

the present

L 127/8

EN

Official Journal of the European Communities

9.5.2001

(66) On this basis it was examined whether, despite the
conclusions on the likelihood of a recurrence of injur-
ious dumping, compelling reasons existed which would
lead to the conclusion that it is not in the Community
interest to maintain measures in this particular case.

2. Interest of the Community industry

significant impact on importers/traders. As shown by
both the current and the previous investigations, firstly,
importers/traders do in general not only deal with UAN
but also with other fertilisers and, secondly, UAN was
available from numerous different countries of origin.
This is due to the characteristics of the product under
consideration, which
a
commodity product and identical whatever the country
of origin.

explained

above,

is,

as

(67)

The Community industry has proven to be a structurally
viable industry, able to adapt to the changing conditions
on the market. This was confirmed in particular by the
positive development of its situation at a time when
effective competition had been restored after the imposi-
tion of anti-dumping measures on imports originating in
Poland and Bulgaria and by the industry's investment in
state of
the art production capacity. These positive
effects however lasted only for a short period since, as
from 1997, dumped imports originating in certain third
countries, other than Poland caused a strong price pres-
sure on the Community market resulting in a new
degradation
the
Community industry. This degradation was such that the
Community industry had to restructure its activity and
close down significant nitrate capacity during the year
2000, thus reducing jobs.

economic

situation

the

of

of

(68)

It can reasonably be expected that
the Community
industry will benefit from the measures imposed by
Regulation (EC) No 1995/2000 provided that no other
source of injurious dumping would undermine them. As
outlined above, since there is a likelihood of a recurrence
of injurious dumping from Poland, it would be in the
interest of
the Community industry to maintain the
anti-dumping measures on imports of UAN originating
in Poland

4. Interest of users

(71)

(72)

The users of
the product under consideration are
farmers. The Commission sent out questionnaires to
European associations of users. No replies were received.

It is to be noted that fertilisers represent a small part of
total production costs of farmers, as set out in Regula-
tion (EC) No 1995/2000. Moreover, the lack of coopera-
tion in itself appears to confirm that this sector did not
suffer any substantial negative effect on its economic
situation as a result of the measures currently in force.

(73)

In conclusion, it is unlikely that the possible impact on
farmers would offset
effect on the
Community industry of the measures against recurrent
injurious dumping.

the positive

5. Conclusion on Community interest

(74) Given the above reasons, it is concluded that there are
no compelling reasons against the prolongation of the
anti-dumping measures.

(69)

(70)

3. Interest of unrelated importers/traders

J. FORM OF THE MEASURES

The Commission sent out questionnaires to 20 unrelated
importers/traders and to one association of importers.
Nine answers were received including that
from the
association.

(75) As stated in the notice of initiation, the interim review
was initiated by the Commission in order to allow a
possible adaptation of the form of measures for Poland,
taking into account the treatment of exports of UAN
from certain third countries to the Community which
were then subject to another anti-dumping proceeding.

The investigation established that none of these impor-
ters/traders had imported any UAN from Poland during
the IP. They claimed this was due to the fact that, during
this period, the average Community sales price for UAN
was below the minimum import price applicable to
imports of Polish UAN. It should, however, be noted
that the anti-dumping measures imposed in 1994 on the
imports of UAN originating in Poland had in fact no

(76)

Regulation (EC) No 1995/2000 concluded that it was
appropriate to impose definitive duties in the form of a
specific amount per tonne. The basis for imposing such
a form of measures was to ensure the efficiency of the
measures and to discourage the price manipulation
which has been observed in some previous proceedings
involving the same general category of product,
i. e.
fertilisers.

9.5.2001

EN

Official Journal of the European Communities

L 127/9

(77)

Like the producers in those other cases, the Polish UAN
producers are integrated, producing a variety of different
fertilisers. In addition, different fertilisers are sold to a
considerable degree via identical distributors. This opens
possibilities through which prices for different products
can be compensated without this being easy to detect
for customs authorities. For these reasons, it is consid-
ered that the form of measures applicable to imports of
UAN originating in Poland should be changed to a
specific amount per tonne,
in line with the measures
imposed on other countries by virtue of Regulation (EC)
No 1995/2000.

(78) One Polish exporting producer contested the proposed
change of the form of measures arguing that there was
no legal basis for this change and that the minimum
import price was effective in restoring fair conditions of
competition on the Community market.

(79)

In this respect it should be recalled that the interim
review regarding the form of the measures has been
initiated ex officio by the Commission, after consultation
of the Advisory Committee, pursuant to Article 11(3) of
the basic Regulation. As explained above, the Commis-
sion initiated the review in order to allow for the poss-
ibility of changing the form of the measures applicable
to Poland to take account of any measures subsequently

imposed on other countries concerning the same
product.

(80)

the

In addition to the possibility of compensation referred to
the
investigation showed that
in recital 77,
minimum import price proved ineffective, as
the
product concerned may be subject to price fluctuations.
Depending on the average Community market price, the
minimum import price could either be inefficient or
have the effect of excluding Polish exports from the
Community market. The imposition of anti-dumping
duties in the form of a specific duty in this instance,
should therefore ensure that the measures are both effec-
tive and efficient in eliminating the effects of injurious
dumping. Moreover, in other recent fertilisers proceed-
ings it was found that the most appropriate form of
measures for this kind of product is a specific amount
per tonne.

(81)

The amount of duty in EUR per tonne, as established by
the previous investigation,

is given below:

Zaklady Azotowe Pulawy SA

All other compagnies

Amount of duty
(EUR per tonne)

19

22,

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on imports of urea ammonium nitrate solution

1.
originating in Poland and falling within CN code 3102 80 00.

The amount of the applicable duty per tonne of product shall be as shown below for the products

2.
manufactured by the following companies:

Country

Company

Amount of duty
(EUR per tonne)

TARIC additional
code

Poland

Zaklady Azotowe Pulawy SA
Al. Tysiaclecia P.P. 13,
24-110 Pulawy
Poland

Other companies

19

22

8795

8900

In cases where goods have been damaged before entry into free circulation and, therefore, the price
3.
actually paid or payable is apportioned for the determination of the customs value pursuant to Article 145
of Commission Regulation (EEC) No 2454/93 (1), the amount of anti-dumping duty, calculated on the basis
of the amounts set above, shall be reduced by a percentage which corresponds to the apportioning of the
price actually paid or payable.

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

Article 2

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

Article 3

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 2787/2000 (OJ L 330, 27.12.2000, p. 1).

L 127/10

EN

Official Journal of the European Communities

9.5.2001

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

Done at Brussels, 7 May 2001.

For the Council

The President

B. RINGHOLM