Notice of initiation of an anti-subsidy proceeding concerning imports of sulphanilic acid originating in India
Date: 2001-07-06
Institutions: European Commission
Subjects: India, acid, anti-subsidy proceeding, import, originating product

6.7.2001

EN

Official Journal of the European Communities

C 190/5

Notice of

initiation of an anti-subsidy proceeding concerning imports of sulphanilic acid

originating in India

(2001/C 190/03)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1) (the Basic Regu-
lation), alleging that imports of sulphanilic acid, originating in
India, are being subsidised and are thereby causing material
injury to the Community industry.

1. Complaint

The complaint was lodged on 22 May 2001 by Sorochimie
Chimie Fine (the complainant) which represents a major
proportion,
the total
in this case more than 75 %, of
Community production of sulphanilic acid.

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the Basic
Regulation.

5.1. Procedure for the determination of subsidisation and

injury

The investigation will determine whether the product described
in paragraph 2 originating in India is being subsidized and
whether this subsidisation has caused injury.

2. Product

(a) Sampling

The product allegedly being subsidised is sulphanilic acid, a
chemical used as raw material to produce optical brighteners,
food colorants, speciality dyes and concrete additives orig-
inating in India (the product concerned), currently classifiable
within CN code ex 2921 42 10. This CN code is only given for
information.

3. Allegation of subsidisation

It is alleged that the producers of the product concerned from
India have benefited from a number of subsidies granted by the
Government of India. These subsidies are a duty entitlement
passbook scheme and its predecessor the passbook scheme,
subsidies for industries located in export processing zones or
for export oriented units, an income tax exemption and the
export promotion capital goods scheme.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of India
and confer a benefit
to exporters/
producers of sulphanilic acid. They are alleged to be specific
and therefore countervailable. The total amount of subsidy
emanating from these schemes is estimated to be significant.

to the recipients,

i.e.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from India have increased overall
in
absolute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the market share held, the quantities sold
and the level of prices charged by the Community industry,
effects on the overall
adverse
resulting
performance,
situation and the employment
situation of the Community industry.

in substantial

the financial

(1) OJ L 288, 21.10.1997, p. 1.

In view of the apparently large number of parties involved
in this proceeding, the Commission may decide to apply
sampling in accordance with Article 27 of the Basic Regu-
lation.

(i) Sampling for exporters/producers in India

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in paragraph 6(b)(i) of
this
notice:

(cid:151) name, address, e-mail address,

telephone, and fax,

and/or telex numbers and contact person,

(cid:151) the turnover in local currency and the volume in kg
of
to the
the product concerned sold for export
Community during the period 1 July 2000 to 30
June 2001,

(cid:151) whether the company intends to claim an individual
subsidy rate (individual subsidy rates can only be
claimed by producers),

(cid:151) the turnover in local currency and the sales volume
in kg for the product concerned on the domestic
market during the period 1 July 2000 to 30 June
2001,

(cid:151) the precise activities of the company with regard to

the production of the product concerned,

(cid:151) the names and the precise activities of all related
involved in the production and/or
the product

companies (2)
selling (export and/or domestic) of
concerned,

(2) For guidance on the meaning of related companies, please refer to
Article 143(1) of Commission Regulation (EEC) No 2454/93
concerning the implementation of the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

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Official Journal of the European Communities

6.7.2001

(cid:151) any other relevant information that would assist the
Commission in the selection of the sample, including
whether
located in an export
processing zone (or is an export-oriented unit).

the company is

(cid:151) an indication of whether the companies agree to their
inclusion in the sample, which implies replying to a
questionnaire and accepting an on-the-spot investi-
gation of their response.

In order to obtain the information it deems necessary for
the selection of the sample of exporters/producers, the
Commission will, in addition, contact the authorities of
the exporting country, and any known associations of
exporters/producers.

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence has to reach the Commission within
the time limit set in paragraph 6(a)(ii) of this notice.

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in paragraph 6(a)(iii)
of this notice.

5.2. Procedure for assessment of Community interest

(ii) Final selection of the sample

All
interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in paragraph 6(b)(i) of this
notice.

The Commission intends to make the final selection of
the sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

Companies included in the sample must reply to a ques-
tionnaire within the time limit set in paragraph 6(b)(ii) of
this notice and must cooperate within the framework of
the investigation.

sufficient

the
If
cooperation is not
in accordance with
Commission will base its findings,
Articles 27(4) and 28 of the Basic Regulation, on the
facts available.

forthcoming,

(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the Community industry and to any association of
to the sampled exporters/
producers in the Community,
in India,
producers
exporters/
to any association of
producers,
to the importers, and to any association of
importers named in the complaint and to the authorities
of the exporting country concerned.

set

Exporters/producers in India claiming an individual subsidy
rate, with a view to the application of Articles 27(3) and
15(3) of the Basic Regulation, must submit a completed
in paragraph
questionnaire within the time limit
6(a)(ii) of this notice. They therefore have to request a ques-
tionnaire within the time limit set in paragraph 6(a)(i) of
this notice. However, such parties should be aware that if
sampling is applied to exporters/producers, the Commission
may nonetheless decide not
to calculate an individual
subsidy rate for them, if the number of exporters/producers
is so large that individual examination would be unduly
burdensome and would prevent the timely completion of
the investigation.

For

this

their

industry,

they prove that

the Community

link between their

In accordance with Article 31 of the Basic Regulation and in
the event that the allegations of subsidisation and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-subsidy measures would not be
reason the
interest.
against
Community
representative
importers,
associations, representative users and representative consumer
organisations, provided that
there is an
and the product
objective
concerned, may, within the general
in
paragraph 6(a)(ii) of this notice, make themselves known and
provide the Commission with information. The parties which
have acted in conformity with the precedent sentence may
request a hearing setting the particular reasons why they
should be heard within the time limit
in paragraph
6(a)(iii) of this notice. It should be noted that any information
to Article 31 will only be taken into
submitted pursuant
account
the time of
submission.

if supported by factual evidence at

activity

limits

time

set

set

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All interested parties should request a questionnaire as
soon as possible, but not later than 15 days after the
publication of this notice in the Official Journal of the
European Communities.

(ii) For parties to make themselves known, to submit ques-

tionnaire replies and any other information

All 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 and submit questionnaire replies or
any other information within 40 days of the date of
publication of this notice in the Official Journal of the
European Communities, unless otherwise specified.

Companies selected in a sample must submit ques-
tionnaire replies within the time limits specified in
paragraph 6(b)(ii) of this notice.

6.7.2001

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Official Journal of the European Communities

C 190/7

(iii) Hearings

Commission address for correspondence:

All interested parties may also apply to be heard by the
Commission within the same 40 day time limit.

(b) Specific time limit in respect of sampling

(i) All information relevant for the selection of the sample
should reach the Commission within 15 days of the date
of publication of this notice in the Official Journal of the
the Commission
European Communities, given that
intends
that have
expressed their willingness to be included therein on
the final selection of the sample within a period of 21
days of the publication of this notice in the Official
Journal of the European Communities.

to consult parties

concerned

(ii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date
of the notification of their inclusion in the sample.

European Commission
Directorate General for Trade
Directorates B and C
TERV (cid:151) 0/13
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05
Telex: COMEU B 21877.

8. Non-cooperation

In cases in which any interested party refuses access to or 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 28 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 the facts available.

9. Schedule of the investigation

7. Written submissions, questionnaire replies and corre-

spondence

All submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified), and must indicate the name, address, e-mail address,
telephone and fax, and/or telex numbers of the interested party.

The investigation will be concluded, according to Article 11(9)
of the Basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
Communities. According to Article 12(1) of the Basic Regu-
lation, provisional measures may be imposed no later than
nine months
this notice in the
Official Journal of the European Communities.

from the publication of

NOTICE

(2001/C 190/04)

Beef and veal trade associations and consumer organisations are hereby informed that the Commission has
published a Regulation providing for special communication measures in the beef and veal sector in
OJ L 182 of 5.7.2001.

Under that Regulation, communication programmes covering a series of information measures concerning
beef and veal can be submitted to the competent bodies in the Member States by trade associations, in
conjunction, where appropriate, with consumer organisations. Such communication programmes are
intended to provide information on key aspects of Community and national provisions, in particular on
food safety. The deadline for submitting programmes is 15 August 2001.

Priority will be given to programmes covering more than one stage of production, including consumption.