Commission Regulation (EC) No 2593/2001 of 28 December 2001 amending Regulation (EC) No 909/2001 as regards registration of imports of glyphosate produced by one Malaysian and one Taiwanese exporting producer
Date: 2001-12-28
Institutions: European Commission
Subjects: Malaysia, Taiwan, anti-dumping legislation, chemical product, originating product, pesticide

29.12.2001

EN

Official Journal of the European Communities

L 345/29

COMMISSION REGULATION (EC) No 2593/2001

of 28 December 2001

amending Regulation (EC) No 909/2001 as regards registration of imports of glyphosate produced
by one Malaysian and one Taiwanese exporting producer

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

originating in Malaysia or Taiwan or not, as of 10 May
2001.

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 Articles 13 and 14 thereof,

(5)

Article 2(3) of the initiating Regulation provided that
imports should be exempted from registration if they
were accompanied by a customs certificate certifying
that the importation does not constitute, circumvention.

After consulting the Advisory Committee,

B. REQUESTS FOR EXEMPTION

(6)

(7)

(8)

(9)

Whereas:

(1)

(2)

(3)

(4)

A. PROCEDURE

By Regulation (EC) No 368/98 (3), the Council imposed
an anti-dumping duty of 24 % on imports of glyphosate
originating in the People's Republic of China (‘the PRC’).
By Regulation (EC) No 1086/2000 (4), the rate of duty
applicable was increased to 48 % as a result of the
investigation into the absence of movement, or insuffi-
cient movement of,
the resale prices or subsequent
selling prices in the Community pursuant to Article 12
of Regulation (EC) No 384/96 (‘the basic Regulation’).

On 26 March 2001, the Commission received a request
pursuant to Article 13(3) of the basic Regulation from
the European Glyphosate Association (EGA) to investi-
gate the alleged circumvention of
the anti-dumping
measures imposed on imports of glyphosate originating
in the PRC by imports of glyphosate consigned from
Malaysia or Taiwan. The request was made on behalf of
a major proportion of Community producers of glypho-
sate and contained sufficient evidence regarding the
factors set out in Article 13(1) of the basic Regulation.

The Commission initiated an investigation into the
alleged circumvention by Regulation (EC) No 909/
2001 (5) (‘the initiating Regulation’).

Pursuant to Articles 13(3) and 14(5) of the basic Regula-
tion, Article 2 of the initiating Regulation instructed the
customs authorities to register imports of glyphosate
consigned from Malaysia or Taiwan, whether declared as

(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) OJ L 127, 9.5.2001, p. 35.

the Commission
the investigation,
In the course of
received requests for exemption from the registration or
measures from four unrelated importers and two coop-
erating exporting producers, Crop Protection (M) Sdn
Bhd. (‘Crop Protection’) and Sinon Corporation.

Given that the alleged circumvention was taking place
outside the Community, exemption of
imports from
registration or measures was dependent on the findings
in respect of the exporters. No decision could therefore
be taken by the Commission purely on the basis of the
exemption requests presented by individual
importers.
The importers will however benefit from an exemption
from registration or measures to the extent that their
imports are from exporters which have been granted
such an exemption.

Any decision concerning exporters should be limited to
exemption from registration at this stage. If the Council
subsequently adopts a Regulation extending the anti-
dumping measures pursuant to Article 13 of the basic
Regulation, it may decide to exempt certain exporters
from such extended measures.

C. FINDINGS IN RESPECT OF CROP PROTECTION AND

SINON CORPORATION

request,

Among others, Crop Protection and Sinon Corporation
replied to the questionnaire sent by the Commission to
the producers and exporters in Malaysia and Taiwan
named in the
in the
Community and to the exporters in the PRC known to
the Commission as well as to other interested parties
who came forward within the prescribed time limit. The
Commission carried out verification visits at the prem-
ises of Crop Protection (Klang, Selangor D.E., Malaysia)
and Sinon Corporation (Taichung, Taiwan).

importers

to the

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Official Journal of the European Communities

29.12.2001

(10)

(11)

Crop Protection transformed purchased glyphosate acid,
part of which was originating in the PRC, into salt or
formulated products. However, their purchases of PRC
origin acid increased less
significantly than their
purchases of non-PRC origin acid and did not show a
increase up to
constant movement (plunge in 1998,
2000, decrease within the IP). Moreover, most of the
supply of PRC origin acid was caused by Monsanto (M)
(Malaysia) (1) due to its inability to supply
Sdn. Bhd.
Crop Protection with the US origin acid it had ordered.
Direct purchases from another supplier in the PRC were
minor. Additionally, to satisfy customers' requests, Crop
Protection limited the use of acid originating in the PRC
for
the
glyphosate
It was therefore considered that Crop
Community.
Protection demonstrated to the satisfaction of
the
Commission that the change in the pattern of trade in
their respect had a due cause other than the imposition
of the duty on imports of glyphosate originating in the
PRC and did not constitute circumvention.

production

exported

to

of

Sinon Corporation produces glyphosate starting from
the initial stage of producing glyphosate acid and also
formulates purchased glyphosate acid which does not
originate in the PRC, both operations being carried out
in Taiwan. The investigation has shown that Sinon has
exported to the Community its own produced product,
with the exception of limited quantities of formulated
glyphosate purchased from a Malaysian company and
shipped directly from Malaysia to the Community. It
was
considered that Sinon Corporation
demonstrated to the satisfaction of the Commission that
the change in the pattern of trade in their respect had a
due cause other than the imposition of the duty on
imports of glyphosate originating in the PRC and did
not constitute circumvention.

therefore

(12)

In the light of the above findings, registration of imports
of glyphosate consigned from Malaysia and produced by
Crop Protection and of glyphosate consigned from
Taiwan and produced by Sinon Corporation should
cease.

fore considers it appropriate to amend its initiating
Regulation in so far as it provides for the registration of
imports of glyphosate consigned from Malaysia or
Taiwan (whether declared as originating in Malaysia or
Taiwan or not).

(14)

(15)

This Regulation is based on findings specific to Crop
Protection and Sinon Corporation and does not prejudge
any decision which the Council may take to extend the
existing anti-dumping measures on glyphosate origin-
ating in the PRC to the same product consigned from
Malaysia or Taiwan (whether declared as originating in
Malaysia or Taiwan or not).

Interested parties were informed of the essential facts
and considerations on the basis of which the Commis-
sion intended to cease registration of imports of glypho-
sate produced by Crop Protection and of glyphosate
produced by Sinon Corporation and were given the
opportunity to comment. No comments which were of
a nature to change the above conclusions were received,

HAS ADOPTED THIS REGULATION:

Article 1

The following paragraph shall be added to Article 2 of Regula-
tion (EC) No 909/2001:

‘4.
Notwithstanding paragraph 1, imports of the product
identified in Article 1 which are produced by the following
companies shall not be subject to registration:

Producer

TARIC additional
code

For imports consigned from Malaysia:
Crop Protection (M) Sdn. Bhd., Lot 746, Jalan
Haji Sirat 4 ¼ Miles, off
Jalan Kapar, 42100
Klang, Selangor Darul Ehsan, Malaysia

A309

For imports consigned from Taiwan:
Sinon Corporation, No. 23, Sec. 1, Mei Chuan
W. Rd, Taichung, Taiwan

A310’

(13) Given that exemption from registration is made in
respect of the exporting producers in this case, it was
considered unnecessary and disproportionate to request
each importer importing from Crop Protection or Sinon
Corporation to apply for a customs certificate exempting
their imports from registration. The Commission there-

Article 2

(1) Related to Monsanto Europe, one of the complainants.

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

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

Done at Brussels, 28 December 2001.

For the Commission

Pascal LAMY

Member of the Commission