Commission Regulation (EC) No 909/2001 of 8 May 2001 initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed by Council Regulation (EC) No 368/98 on imports of glyphosate originating in the People's Republic of China by imports of glyphosate consigned from Malaysia or Taiwan, and making such imports subject to registration
Date: 2001-05-08
Institutions: European Commission
Subjects: China, Malaysia, Taiwan, anti-dumping measure, customs fraud, customs inspection, herbicide, import (EU), originating product

9.5.2001

EN

Official Journal of the European Communities

L 127/35

COMMISSION REGULATION (EC) No 909/2001

of 8 May 2001

initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed
by Council Regulation (EC) No 368/98 on imports of glyphosate originating in the People's
Republic of China by imports of glyphosate consigned from Malaysia or Taiwan, and making such
imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

D. GROUNDS

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), as last
amended by Regulation (EC) No 2238/2000 (2), and in partic-
ular Article 13(3) and Article 14(5) thereof,

After having consulted the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

A. REQUEST

The Commission has received a request pursuant to
Article 13(3) of Regulation (EC) No 384/96 (‘the basic
Regulation’) to investigate the alleged circumvention of
the anti-dumping measures imposed on imports of
glyphosate originating in the People's Republic of China.

The request has been lodged on 26 March 2001 by the
European Glyphosate Association (EGA) on behalf of a
major proportion of Community producers of glypho-
sate.

B. PRODUCT

The product concerned by the allegation of circumven-
tion is glyphosate, which can be produced in different
grades or forms of concentration of which the main
ones are the following: formulated (generally with 36 %
glyphosate content), salt (with 62 %), cake (with 84 %)
and acid (95 %), currently classifiable within CN codes
ex 2931 00 95 (TARIC code 2931 00 95 80)
and
ex 3808 30 27 (TARIC code 3808 30 27 10). These
codes are given for information only.

C. EXISTING MEASURES

The measures currently in force and allegedly being
circumvented are anti-dumping measures imposed by
Council Regulation (EC) No 368/98 (3), as last amended
by Regulation (EC) No 1086/2000 (4). This latter Regula-
tion increased the rate of duty applicable to 48 %
pursuant to Article 12 of the basic Regulation.

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 257, 11.10.2000, p. 2.
(3) OJ L 47, 18.2.1998, p. 1.
(4) OJ L 124, 25.5.2000, p. 1.

(5)

The request contains sufficient evidence that the anti-
dumping measures on imports of glyphosate originating
in the People's Republic of China are being circum-
vented by means of either transhipment via Malaysia or
Taiwan or formulation in Malaysia or Taiwan of glypho-
sate originating in the People's Republic of China for
re-export to the Community, for which there appears to
be insufficient due cause or economic justification.

(6)

The evidence submitted is as follows:

(a) the request shows that a significant change in the
pattern of trade involving exports from the People's
Republic of China, Malaysia and Taiwan to the
Community has taken place following imposition of
measures. Imports from Malaysia and Taiwan have
from the
increased significantly while
People's Republic of China have decreased substan-
tially.

imports

This change in the pattern of trade appears to stem
from a transhipment of glyphosate originating in the
People's Republic of China via Malaysia or Taiwan
and also from the formulation in Malaysia or Taiwan
of glyphosate originating in the People's Republic of
China. The formulation is a relatively simple opera-
tion which consists of diluting glyphosate salt with
water and blending it with surfactant. There seems
to be insufficient due cause or economic justification
for these practices other than the existence of the
anti-dumping duty on glyphosate originating in the
People's Republic of China;

(b) furthermore, the request contains sufficient evidence
that the remedial effects of the existing anti-dumping
duties on glyphosate are being undermined both in
terms of quantities and price. Significant volumes of
imports of glyphosate from Malaysia and Taiwan
appear to have replaced imports from the People's
Republic of China. In addition, there is sufficient
evidence that this increase in imports is made at
prices well below the non-injurious price established
in the original

investigation;

(c) finally,

the request contains

sufficient evidence
which shows that dumping is taking place in rela-
tion to the normal value previously established, for
imports consigned from Malaysia or Taiwan.

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Official Journal of the European Communities

9.5.2001

(7)

(8)

(9)

E. PROCEDURE

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant to Article 13 of the basic
glyphosate
Regulation and to make
consigned from Malaysia or Taiwan, whether declared as
originating in Malaysia or Taiwan or not, subject to
registration in accordance with Article 14(5) of the basic
Regulation.

imports of

(i) Questionnaires

In order to obtain the information it deems necessary
for its investigation, the Commission will send question-
naires to producers and exporters in Malaysia and
Taiwan named in the request, to the importers in the
Community and to the exporters
in the People's
Republic of China known to the Commission, to the
authorities of the People's Republic of China, Malaysia
and Taiwan. Information, as appropriate, may also be
sought from the Community industry.

In any event, all
interested parties should contact the
Commission forthwith, but not later than the time limit
set in Article 3 in order to find out whether they are
listed in the request and, if necessary, request a question-
naire within the time limit set in Article 3(1) of this
Regulation, given that the time limit set in Article 3(2) of
this Regulation applies to all

interested parties.

(10)

The authorities of the People's Republic of China as well
as of Malaysia and Taiwan will be notified of the initia-
tion of the investigation and provided with a copy of the
request.

(ii) Collection of information and holding of hearings

(11) All interested parties are hereby invited to make their
views known in writing and to provide supporting
evidence. Furthermore, the Commission may hear inter-
ested parties, provided that
in
writing and show that there are particular reasons why
they should be heard.

they make a request

(iii) Certificates of non-circumvention

(12)

(13)

In accordance with Article 13(4) of the basic Regulation,
certificates exempting the imports of
the product
concerned from registration or measures may be issued
by
the
importation does not constitute circumvention.

to importers

authorities

customs

the

if

Since the issue of
this certificate requires the prior
authorisation of the Community institutions, requests
for such authorisations should be addressed to the
Commission as early as possible in the course of the
investigation so that they may be considered on the
basis of a thorough appraisal of their merits.

F. REGISTRATION

(14)

to Article 14(5) of

the basic Regulation,
Pursuant
imports of
the product concerned should be made
subject to registration in order to ensure that, should the
investigation result in findings of circumvention, anti-
dumping duties can be levied retroactively from the date

the initiation of

of
consigned from Malaysia or Taiwan.

this investigation on glyphosate

G. TIME LIMITS

(15)

In the interest of sound administration,
should be stated within which:

time limits

— interested parties may make themselves known to
the Commission, present their views in writing and
submit questionnaire replies or any other informa-
tion to be taken into account during the invest-
igation,

— interested parties may make a written request to be

heard by the Commission.

H. NON–COOPERATION

(16)

In cases in which any interested party refuses access to
or otherwise does not provide the necessary information
within the time limits, or significantly impedes the
investigation, provisional or final findings, affirmative or
negative, may be made in accordance with Article 18 of
the basic Regulation, on the basis of the facts available.
Where it is found that any interested party has supplied
false or misleading information, the information shall be
disregarded and use may be made of facts available,

HAS ADOPTED THIS REGULATION:

Article 1

of

An investigation is hereby initiated pursuant to Article 13(3) of
Regulation (EC) No 384/96, concerning imports into the
falling within CN codes
Community
ex 2931 00 95
and
2931 00 95 80)
ex 3808 30 27 (TARIC code 3808 30 27 10), consigned from
Malaysia or Taiwan, whether declared as originating in Malaysia
or Taiwan or not.

glyphosate
(TARIC

code

Article 2

1.
The Customs authorities are hereby directed, pursuant to
Article 13(3) and Article 14(5) of Regulation (EC) No 384/96,
to take the appropriate steps to register the imports into the
Community identified in Article 1 of this Regulation.

Registration shall expire nine months following the date

2.
of entry into force of this Regulation.

3.
Imports shall not be subject to registration where they are
accompanied by a Customs certificate issued in accordance
with Article 13(4) of Regulation (EC) No 384/96.

Article 3

Questionnaires should be requested from the Commis-
1.
sion within 15 days from publication of this Regulation in the
Official Journal of the European Communities.

2.
Interested parties, if their representations are to be taken
into account during the investigation, must make themselves
known by contacting the Commission, present their views in
writing and submit questionnaire replies or any other informa-
tion within 40 days from the date of the publication of this
Regulation in the Official Journal of the European Communities
unless otherwise specified.

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Official Journal of the European Communities

L 127/37

Interested parties may also apply to be heard by the

3.
Commission within the same 40 day time limit.

Any information relating to the matter, any request for a
4.
hearing or for a questionnaire as well as any request
for
authorisation of certificates of non-circumvention must be
made in writing (not in electronic format, unless otherwise
specified), must indicate the name, address, e-mail address,
telephone, fax and/or telephone numbers and should be sent to
the following address:
European Commission
Trade Directorate-General

Directorates B and C
TERV 0/13
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.

Article 4

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

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

Done at Brussels, 8 May 2001.

For the Commission

Pascal LAMY

Member of the Commission