Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of coumarin originating in the People's Republic of China
Date: 2002-04-15
Institutions: European Commission
Subjects: China, anti-dumping duty, crop production, food additive, import, originating product

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Official Journal of the European Communities

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Proposal

for a Council Regulation imposing a definitive anti-dumping duty on imports of

coumarin originating in the People's Republic of China

(2002/C 203 E/11)

COM(2002) 182 final

(Submitted by the Commission on 15 April 2002)

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) thereof,

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

Whereas:

A. PREVIOUS PROCEDURE AND EXISTING MEASURES

(1) In March 1996, by Council Regulation No 600/96 (2)
definitive anti-dumping measures were adopted with
regard to imports of
coumarin originating in the
People's Republic of China. The measures imposed were
in the form of a specific duty of ECU 3 479 per tonne.

B. PRESENT INVESTIGATION

1. Request for review

(2) Following the publication of a notice of

impending
expiry (3) of
the anti-dumping measures in force on
imports
People's
coumarin
of
Republic of China (‘country concerned’ or ‘the PRC’), the
Commission has received a request for review pursuant to
Article 11(2) of Council Regulation (EC) 384/96 (‘the
basic Regulation’).

originating

in the

(3) The request was lodged on 4 January 2001 by the
(‘the

European Chemical

Industry Council

(CEFIC)

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

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

(2) OJ L 86, 4.4.1996, p. 1.
(3) OJ C 271, 22.9.2000, p. 3.

in the
applicant’) on behalf of
Community representing the totality of the Community
production of coumarin.

sole producer

the

(4) The request

for an expiry review was based on the
grounds that injurious dumping of imports originating
in the PRC would be likely to continue or to recur if
measures were allowed to expire.

2. Notice of initiation

that

sufficient

(5) Having determined, after consultation of

the Advisory
Committee,
the
initiation of an expiry review, the Commission initiated
an investigation pursuant to Article 11(2) of the basic
Regulation by a notice published in the Official Journal
of the European Communities (4).

existed for

evidence

3. Period of investigation

the

(6) The investigation period (‘IP’)

period

for the examination of
recurrence of dumping and injury
continuation or
covered
to
from 1
31 December 2000. The examination of trends relevant
for the assessment of continuation or recurrence of injury
covered the period from 1 January 1996 up to the end of
the IP (‘period under review’).

January

2000

4. Parties concerned by the investigation

(7) The Commission

the

advised

officially

applicant
the exporting producers in the
Community producer,
PRC and their representatives,
the Chinese authorities
and the importers, users and associations known to be
concerned, of
review. The
initiation of
Commission sent questionnaires to exporting producers,
a producer in the United States (analogue country) the
sole Community
and
associations known to be
concerned and to those
parties who made themselves known within the time
limit set in the notice of initiation of the review.

importers,

producer,

users

the

the

(8) The Community

producer,

country
producer, one importers' association, and five users
replied to the questionnaires. With respect to the PRC
no reply to the questionnaire was received.

analogue

the

(4) OJ C 104, 4.4.2001, p. 5.

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5. Verification of information received

(9) The Commission sought and verified all

information it
deemed necessary for the purpose of a determination of
the continuation or recurrence of dumping and injury and
of the Community interest. The Commission also gave the
parties directly concerned the opportunity to make their
views known in writing and to request a hearing.

(10) Verification visits were carried out at the premises of the

following companies:

Community producer:

— Rhodia, (Lyon) France

Importers:

— Quest International, (Ashford) United Kingdom

Analogue country producer:

— Rhodia, (Cranbury NJ) USA

C. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

(11) The product concerned is the same as in the original
investigation i.e. coumarin, a whitish crystalline powder
with the characteristic odour of newly mown hay.
Its
main uses are as an aroma chemical and as a fixative in
such
the
compounds being used in the production of detergents,
cosmetics and fine fragrances.

compounds,

preparation

fragrance

of

varying

point
corresponds to 99 % purity.

between

68 °C and

70 °C which

(13) The

product
ex 2932 21 00.

concerned

falls within

CN code

2. Like product

(14) As in the original investigation coumarin produced and
sold on the domestic market in the analogue country
(USA) and that exported to the Community from the
PRC as well as coumarin produced and sold by the
Community industry in the Community market were
found to have effectively identical physical characteristics
and uses and are thus like products within the meaning of
Article 1(4) of the basic Regulation.

D. LIKELIHOOD OF A CONTINUATION OF DUMPING OR
RECURRENCE OF DUMPING

(15) In accordance with Article 11(2) of the basic Regulation,
it
the
is necessary to examine whether the expiry of
measures would be likely to lead to a continuation of
dumping.

(16) In examining whether

is
a
continuation of dumping,
is necessary to verify
whether dumping exists at present and whether any
such dumping is likely to continue.

likelihood of

there
it

a

1. Preliminary remarks

the fact

(17) The findings on dumping set out below should be viewed
the Chinese exporting
in the light of
producers did not co-operate in the investigation and
findings therefore had to be based on facts available, i.e.
Eurostat data, Chinese export trade data and information
contained in the complaint.

that

2. Current level of dumping

(a) Analogue country

(12) Coumarin, which was originally a natural product
obtained from tonka beans, is now produced synthetically.
It can be obtained by a synthesis process starting from
phenol to obtain salicilaldehyde (Perkin reaction) or by a
synthesis from orthocresol (Raschig reaction). The main
physical specification of coumarin is its purity, of which
the melting point is the indicator. The standard quality
coumarin marketed in the Community has a melting

(18) The existing measures provide for a single countrywide
duty on all
imports into the Community of coumarin
from the PRC. In accordance with Article 11(9) of the
basic Regulation,
the Commission employed the same
methodology as in the original investigation. Accordingly,
normal value was determined on the basis of information
obtained in a market
economy third country (the
‘analogue country’).

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(19) The United States had served as an analogue country in
the original investigation. In the notice of initiation of this
expiry review it was therefore envisaged to again choose
the United States as analogue country for the purpose of
establishing normal value. Since it was also found that the
original reasons for selecting the USA, i.e. the size of its
domestic market,
its market and its
the openness of
degree of access to basic materials were still valid, the
United States was considered to be an appropriate and
not unreasonable choice of analogue country. Only one
interested party objected to this choice of analogue
in particular with regard to the difference in
country,
manufacturing the product, however
they did not
submit any alternative choice in due time. Therefore,
since the United States producer which was contacted
agreed to co-operate fully, and had sufficient represen-
tative domestic
in
accordance with Article 2(7) of
the basic Regulation,
considered to be an appropriate and not unreasonable
choice of analogue country for establishing normal
value in respect of the PRC for the product concerned.

the United States were,

sales,

(b) Normal value

(20) It was subsequently examined whether the domestic sales
of the co-operating United States producer to independent
customers could be considered to have been made in the
ordinary course of trade, in accordance with Article 2(4)
of the basic Regulation. It was found that the weighted
average selling price of all sales during the investigation
period was above the weighted average unit cost of
production, and that the volume of individual sales trans-
actions below unit cost of production was more than
20 % but
the sales being used to
determine normal value; therefore only all the profitable
domestic sales were regarded as having been made in the
ordinary course of
trade, and used for comparison.
Normal value was therefore determined, as set out in
Article 2(1) of the basic Regulation, on the basis of the
price paid or payable, in the ordinary course of trade, by
independent domestic customers of
the co-operating
United States producer during the investigation period.

less than 90 % of

(d) Comparison

(22) For the purpose of a fair comparison, and in accordance
with Article 2(10) of the basic Regulation, due allowance
in the form of adjustments was made for differences in
respect of inland freight, handling and loading, transport
and credit costs, which affected prices and price compara-
bility.

(23) Concerning inland transport,

the relevant adjustments

were based on the analogue country's costs.

(e) Dumping margin

(24) In accordance with Article 2(11) of the basic Regulation,
the weighted average normal value, on an ex-works basis,
was compared to the weighted average export price on an
Ex-works Chinese basis, at the same level of trade.

(25) The above comparison showed the existence of very
significant dumping. The dumping margin found was
found in the
substantial and just below the
original investigation (around 50 %).

level

(26) The investigation did not reveal any reason why this
dumping would disappear if the measures were to be
repealed. It was therefore concluded that there is a like-
lihood of continuation of dumping. However, given the
low level of imports originating in the PRC during the IP
it was considered appropriate to examine whether there
were a recurrence of dumping in increasing export
volume should exhausting measures be repealed.

(c) Export price

(21) As regards the exports to the Community, for which there
was no co-operation from the Chinese
exporting
producers, findings had to be based on the facts available,
in accordance with Article 18(1) of the basic Regulation.
An average export price for all transactions was thus
determined on the basis of Chinese export trade data.

(27) For the examination of a likelihood of recurrence of
dumping the following factors were examined: existence
of dumping, the evolution of production and capacity
utilisation in the PRC, and the evolution of worldwide
Chinese coumarin exports.

3. Development of imports from the PRC

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(a) Existence of dumping

(28) The dumping margin established in the initial

investi-
gation was high (more than 50 %, leading to a duty of
ECU 3 479 per tonne). The investigation carried out
under the present review indicates that dumping still
persisted and was close to the level found in the initial
investigation.

(b) Evolution of production and capacity utilisation in the PRC

(29) According to the

information available, production
capacity in the PRC is high, and could be
even
increased in a very short time due to the nature of the
product and the production process. The information
the Chinese production capacity is about
shows that
1 900 tonnes
the world-wide
(representing 40 % of
capacity with 7 producers, and 18 potential producers
ready to re-enter in the markets. This is much larger
than the entire EC consumption of 700 tonnes.

(33) This shows that there is pressure on Chinese exporting
producers to find alternative export markets. Should the
Community repeal
the current anti-dumping measures,
exports to the Community market would be an attractive
option for Chinese exporting producers.

3. Chinese exports to representative export markets

(34) It is important to note that, after the Council

imposed
anti-dumping duties in 1995, exporting producers in the
PRC were not able to penetrate other export markets or to
expand the exports in the other existing markets.

(d) Conclusion

(35) The investigation has shown that the quantities imported
into the Community from the PRC during the investi-
gation period were dumped.

(30) Consequently,

the

enormous

availability of unused
production capacity (between 50 and 60 % of production
capacity) gives Chinese exporting producers a very high
flexibility in the production process. These
degree of
producers
increase
are
production and direct it to any export market, including,
were the measures to be repealed, the Community market.

therefore

quickly

able

to

(c) Evolution of Chinese exports to third countries

1. General trend of exports

(31) On the basis of Chinese export statistics, Chinese price
behaviour on their other export markets shows that
Chinese
in those markets are on
average 11 % lower
than the prices offered in the
Community, and even 16 % in certain third country
markets, such as Hong Kong and India.

exporters' prices

(36) The investigation has also shown that

levels

the volume of
Chinese coumarin exports to the Community would in
all probability reach substantial
the current
measures were to be repealed. This conclusion was
arrived at
the substantial spare capacity
available in the PRC, and in view of the pressure on
Chinese exporting producers to find alternative export
markets to the USA and to others export markets. All
this illustrates the strong continued interest of Chinese
exporting producers in selling to the Community.

in view of

if

(37) It was also concluded that such substantially increased
exports to the Community would most likely be made
at dumped prices. This is demonstrated by the low
prices found for Chinese exports to other main third
country markets.

(38) In summary,

it

imports to the
is most probable that
Community from the PRC will resume in significant
quantities and at significantly dumped prices,
should
measures be repealed.

2. Possible deflection of Chinese exports due to the intro-

duction of restrictions in third countries

(32) The USA imposed anti-dumping duties on import of
coumarin from the PRC in 1995 and maintained the
duties in May 2000 pursuant to an expiry review. The
USA duties range from 31,02 % to 160,80 %.

(39) The company represented by the applicant was the only
producer of coumarin in the Community during the
investigation period.

E. DEFINITION OF THE COMMUNITY INDUSTRY

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(40) During the

IP,

the

product

concerned

from the

the Community producer

imported
coumarin from a country other
than the PRC. The
purpose of such imports was to compensate shortages
of
producer's
Community production due to technical reasons. These
imports represented a minor part of
the total sales
volume by the producer
in the Community. Thus,
despite these sales of imported coumarin, the primary
activity of
the company remained in the Community
and the import of this producer did not affect its status
as Community producer. This Community producer is
therefore deemed to constitute the Community industry
within the meaning of Article 4(1) and Article 5(4) of the
basic Regulation.

F. ANALYSIS OF THE SITUATION IN THE COMMUNITY
MARKET

1. Community consumption (1)

(41) Community consumption was established on the basis of
the Community industry on the
the sales volumes of
reported in the questionnaire
Community market as
reply,
the import volumes into the Community from
the country concerned and all other third countries, on
the basis of Eurostat.

large

volumes of

(42) On this basis, the apparent consumption of coumarin
increased by 92 % during the period under review. The
most significant increase took place between 1996 and
1997 i.e. + 82 %. However, this should be seen in the
light of
coumarin which were
imported mainly from the PRC, in 1994 and 1995, i.e.
before the imposition of
the anti-dumping measures.
These large imported volumes have been stocked and
then sold/used in 1996 thus reducing artificially the
demand for coumarin this year and consequently the
import volumes
apparent consumption.
went back to a level comparable with the one in 1993.

In 1997, total

Afterwards, given that the USA took action to prevent
such circumvention activities on the US market,
the
Japanese exporter concerned also ceased its exports to
the EC and imports from Japan as reported by Eurostat
on the Community market have steadily decreased until
the end of the IP.

(44) The market share of the imports from the PRC decreased
by 25 percentage points during the period under review
and were to be found between 1,5 and 3 %.

(b) Prices

(45) After the imposition of the measures in 1995, the average
the imports concerned, as reported by
cif prices of
Eurostat,
increased by 23 %, between 1996 and the IP,
but remained below the average cif prices of all other
imports during the period under review, and also below
the Community industry's prices.

3. Economic situation of the Community industry

(a) Production

(46) The Community industry's production doubled between
1996 and the IP. A significant
increase took place
between 1996 and 1997. Subsequently, production
slightly decreased until 1999 and went up again
between 1999 and the IP.

(b) Capacity and capacity utilisation

(47) The total production capacity of the Community industry
increased by 29 % over the period under review. The
increase is due to an upgrade of the existing installation
made in 1999.

(48) Capacity utilisation increased by 56 % between 1996 and
the IP. The increase was particularly marked between
1996 and 1997 as well as between 1999 and the IP.

2. Imports from the country concerned

(a) Volume and market share

(c) Sales in the Community

(43) With respect to the volume of the Chinese imports,

in particular between 1996 and 1998,

it
drastically decreased over the period under review i.e.
– 89 %,
i.e.
– 87 %. This coincided with the imposition of the anti-
dumping measures and the emergence of other countries
that increased their exports to the Community. In this
respect,
from
Japan were in fact of Chinese origin thereby circum-
venting the measures. This can be noticed in particular
as from 1997 when imports from Japan suddenly surged.

that, certain imports

it would appear

(1) For confidentiality reasons, given that one single Community
producer
figures
the Community
contained in this Regulation will be indexed or only given
approximately.

constitutes

industry,

the

It

review.

(49) The sales volume of the Community industry significantly
trebled
increased during the period under
between 1996 and the IP. This development was made
possible at a time when production doubled, because
exports decreased in the same time. The sales increase
was most remarkable between 1996 and 1997 even
though the sales steadily increased between 1997 and
the IP. However, as already explained under recital (42),
the demand on the Community market was particularly
low in 1996,
thus distorting the comparison. Taking
1997 as a basis of comparison, the increase of the sales
volume of the Community industry between 1997 and
the IP is 41 %. Several reasons explain this evolution,
such as the imposition of the anti-dumping measures in
1995 and the decrease of
imports from certain third
countries as already mentioned in recital (43).

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(d) Stocks

(h) Cash flow and ability to raise capital

(50) The Community industry's end of year stocks decreased
by 8 % during the period under review. They firstly
increased between 1996 and 1997, and then decreased
until 1999 before raising again between 1999 and the IP.

(55) The development of

the cash flow generated by the
Community industry in relation to sales of coumarin is
very similar to that of the profitability since it passed
from a negative to a positive figure as from 1999.

(e) Market share

(51) The market share of the Community industry rose by 27
percentage points during the period under review. This
increase was especially marked between 1996 and 1998
when market
gained 20 percentage points.
Afterwards, market share slightly decreased in 1999 and
regained around 12 percentage points between 1999 and
the IP.

share

(56) The investigation established that the Community industry
was not experiencing difficulties in its ability to raise
capital. However, this is not considered as a meaningful
indicator given that the Community industry is a large
group whose coumarin production represents a relatively
small part of the total production, and that the ability to
raise capital is closely linked to the performance of the
whole group.

(f) Prices

(52) The Community producer's average net

sales price
decreased by 14 % between 1996 and the IP. The fall
was particularly marked between 1996 and 1997 and
then between the 1999 and the IP.

imports during the period under

(53) This can be explained partly by the price level of the
Chinese products which, as already mentioned under
recital (45), remained below the average cif prices of all
other
review. Even
import volume remained relatively low
though the
during the IP, the investigation has shown that prices
offers by the Chinese exporters have continued to be
made at low prices.
In addition, the price pressure of
imports
from Japan, cannot be considered negligible
during the period under review, even if volumes have
decreased since 1997. However,
this evolution should
also be seen in the light of the efforts made by the
Community producer to improve the efficiency of the
the production
production process. The increase of
the anti-dumping
capacity, coupled with the effect of
measures,
to
producer
increase the volume sold and thus to reduce the unit
cost of goods sold.

the Community

permitted

(g) Profitability

(54) The weighted average profitability of

the Community
industry markedly improved during the period under
review since it passed from a significant loss in 1996 to
a profit which ranged between 5 and 10 % in the IP. This
increase which was particularly marked between 1998
and the IP, should be seen in the light of the upgrade
of
(47),
which permitted the Community industry to significantly
reduce its costs of production.

the capacity already mentioned under recital

(i) Employment, productivity and wages

(57) Employment of the Community industry slightly increased
during the period under review and gained 9 % between
1996 and the IP. The productivity of the Community
industry's workforce, measured as production volume
per person employed markedly increased during the
same period, improving by more than 80 %. The wages
as a whole increased by 27 % between 1996 and the IP,
thus leading to an increase of
the average wage per
employee by 16 % between 1996 and the IP.

(j) Investment and return on investment

(58) The level of investments significantly increased between
1996 and 1999 and went down again in the IP. The
investigation showed that most of this capital expenditure
the capacity already
was
mentioned under recital
(47), as well as to the main-
tenance of the equipment.

related to the upgrade of

(59) The return on investment, expressed as the relation
between the net profits of the Community industry and
the net book value of
followed very
closely the profitability trend since it turned out to be
positive as from 1999 and gained 23 percentage points
between 1996 and the IP.

its investments,

(k) Growth

(60) As mentioned above, while Community consumption
almost doubled during the period under
the
sales volume and the market share of the Community
industry followed an even more marked trend. The
Community industry could therefore fully benefit from
the growth of the market.

review,

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(l) Magnitude of the dumping margin

(61) As concerns the impact on the Community industry of
the magnitude of the dumping margin found (see recital
(28)), given the low volume of imports during the IP, this
cannot have an impact.

decreasing sales prices of the Community industry and
decreasing sales volumes as well as
the consequent
negative impact on profitability.

4. Conclusion

from its weakened economic

(62) The imposition of the anti-dumping measures on imports
of coumarin originating from the PRC had a positive
industry, which could
impact on the Community
recover
situation. All
injury indicators except sales prices developed positively.
However, this trend should also be seen in the light of the
efforts made by the Community industry in order to
improve its efficiency and to reduce its cost of production.
Finally, it should be noted that such improvement only
permitted the Community industry to get back to the
situation prevailing just before the dumping practice
started.

G. LIKELIHOOD OF RECURRENCE OF INJURY

Likelihood of recurrence of injury

(63) With regard to the likely effect on the Community
the measures in force the
in line with the

industry of
following factors were considered,
elements summarised in recitals (35) to (38).

the expiry of

(66) The Community market is also likely to be attractive for
the Chinese exporters. On the one hand, it is recalled that
the Community market absorbed 46 % of the Chinese
exports
the
measures currently in force compared to 10 % in 1999.

in 1995 i.e. before the imposition of

(67) On the other hand, the comparison between the total
Chinese exports on the world market, and the Chinese
exports on the Community market during the same
period, shows that Chinese exporters did not manage to
find new markets that would be likely to replace their
Indeed,
sales in the EC.
the
Chinese exports
to the Community market between
1995 and 1999 (363 tonnes) was only compensated by
an increase of Chinese exports to other third countries of
around 100 tonnes.

the strong decrease of

(68) In addition, as the Community market and the US market
stand for around 50 % of
the world consumption of
coumarin and given that the USA have imposed anti-
dumping measures on imports of coumarin from the
PRC,
should the measures be
repealed, the Community market would be attractive for
exporters from the PRC.

is very likely that

it

that

import

volumes would

(64) There are clear indications that imports originating in the
PRC will continue at dumped prices. Moreover, there is a
likelihood
increase
significantly given that the Chinese exporting producers
have the potential to raise their production and export
volume in view of their large unused production capacity.
In
coumarin
consumption is forecast to slightly increase in the next
three years, it is unlikely to absorb the unused Chinese
capacity.

the world

addition,

though

even

(65) Having regard to the Chinese exporters' export price
behaviour on third country markets which are around
10 % lower than on the Community market, namely
Hong Kong, India, Japan and Singapore, it is likely that
the Chinese exporting producers will adopt an aggressive
price behaviour in the Community in order to regain their
lost market shares.
these low prices on third
countries markets show that Chinese exporters consider
it to be in their interest to sell at such prices. This in turn
injury in terms of
would lead to a recurrence of

Indeed,

(69) One importers' association argued that the existence of
likely

imply in itself

capacity in the PRC does not
recurrence of injury.

(70) In relation to this particular point, it is recalled that this
investigation should evaluate the likelihood of recurrence
of dumping and injury in case the measures are removed.
Even if the existence of large production capacity in the
PRC does not in itself mean that injurious dumping will
recur,
indicator that
should be taken into consideration. This indicator, when
combined with the analysis of
the Chinese exporters'
third markets and the ongoing
behaviour on other
dumping found, constitutes an indicator of
the likely
behaviour of
the exporters in case the measures are
repealed and thus the likely effect thereof.

this is nevertheless a meaningful

(71) On the basis of the above, it is concluded that, should the
measures be repealed, there is a likelihood of a recurrence
of injury from imports of coumarin from the PRC.

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H. COMMUNITY INTEREST

1. Introduction

(72) According to Article 21 of

the
the basic Regulation,
the
Commission examined whether a prolongation of
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
the
of all
Community industry,
the importers/traders as well as
the users of the product under consideration. In order
to assess the likely impact of maintaining or not main-
requested
taining
information from all interested parties mentioned above.

the various interests involved i.e.

the Commission

the measures,

those of

(73) 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

that

(74) On this basis it was examined whether, despite the
recurrence of
conclusions on the
injurious dumping, compelling reasons existed which
in the
would lead to the conclusion that
Community
in this
particular case.

to maintain measures

likelihood of

interest

is not

it

a

it

to restrict

(78) First of all, it should be recalled that the coumarin world
market
is very concentrated with only few producers
whose most important in terms of capacity are located
in China and in the Community. Therefore, any market
share lost by one of these two countries producers is
likely to be regained by the other. However,
is
recalled that the purpose of the anti-dumping measures
to re-establish fair
is not
supply, but
competition on the Community market
and that
coumarin originating in the PRC can still be imported
in the Community market.
it should be
noted that during the IP, around 25 % of all imports of
coumarin was imported from countries other than China
notably from Japan and India, thus showing that alter-
native sources of supply continue to exist. Furthermore,
in view of the low level of co-operation and the fact that
importers generally deal with a wide range of chemical
it was
products, of which coumarin is only one,
the
concluded that any possible negative impact of
continuation of measures on importers would not be a
compelling reason not
to impose the continuation of
measures.

In addition,

4. Interest of users

(79) Questionnaires and/or information were received from

five users (out of the 23 questionnaires sent).

(80) One of

these companies is clearly in favour of

the
continuation of
the measures while another does not
expect any change for its business should the measures
be removed or maintained. This latter company also
underlined the fact that it would not be in the industry's
interest that the Community producer stops production in
case of recurrence of dumped imports.

2. Interest of the Community industry

(75) It is considered that should the anti-dumping measures
repealed,
imposed in the previous
injurious dumping is
the
situation of the Community industry, which improved
during the period under review, would deteriorate.

investigation be
likely to recur and that

(81) Two users, of which only one imported the product
concerned from the
country concerned during the
period under review, were against the continuation of
the measures, but both stated in their responses to the
questionnaire that they both do not expect any effect on
their business, should the measures be removed or main-
tained.

3. Interest of importers

(76) From the 26 questionnaires sent, only one reply was
received by the Commission services from an importers'
association.

(77) This association argued that the anti-dumping measures
led to the exclusion of both the Chinese and other third
countries producers from the Community market, thus,
leading to a dependence of
the users on the sole
Community producer.

(82) One other user was also against the prolongation of the
measures. This user argued that
the competition by
Chinese exporters is indispensable in order to guarantee
the security of supply at competitive prices. Should
this user may
competitive prices not be guaranteed,
consider moving part of its fragrance compounding to
the PRC resulting in job losses in the Community.
However, given that coumarin represents about 1,5 % of
the total cost of production of this user, it is considered
unlikely that a transfer of
the production of certain
compounds outside the Community would occur simply
as a result of
the existing anti-
dumping measures, especially since such transfer did not
occur during the five years the measures are in force.

the continuation of

C 203 E/68

EN

Official Journal of the European Communities

27.8.2002

resulting

(83) The same user also mentioned the production difficulties
suffered by
in
the Community producer
significant delivery delays. Although the Community
producer faced production difficulties during the period
under review, these were due to particular circumstances
that are unlikely to recur on a regular basis, amongst
which,
installation
mentioned under recital (47). In addition, the impact of
delivery problems on users was found to be minor since,
as mentioned under recital (40), the Community producer
was able to import the like product to compensate for the
shortage of its production of the product concerned.

upgrade

existing

the

the

of

(88) On the basis of the above, it has been concluded that any
competition related concerns were considered not
to
constitute a compelling reason against the continuation
of the measures.

6. Conclusion on Community interest

(89) Given the above,

it was concluded that

compelling reasons of Community interest against
continuation of the measures.

there are no
the

(84) On the basis of the above, and in view of the low level of
co-operation, which in itself appears to confirm that users
did not suffer any substantial negative effect on their
economic situation as a result of the measures currently
in force,
to
constitute a compelling reason against the continuation
of the measures, as a possible negative effect on users is
unlikely to offset the positive effect on the Community
industry.

the impact on users was considered not

5. Competition aspects

(85) Several interested parties argued that the current measures
have led to the elimination of Chinese coumarin on the
leading to a monopoly position of
Community market,
the
the Community industry. The prolongation of
measures would thus be against
the
the interest of
Community.

(86) As already mentioned under recital (51), the Community
industry increased its market share and thus can benefit
from a strong position on the Community market.
However, the current investigation also established that
the
the
the measures was
Community industry to recover
the
Community market which it held before the Chinese
dumping practices began.

to permit
share of

effect of

that

suppliers

the measures on these

(87) Moreover, it should be noted that the world market for
coumarin is characterised by operation of only few
producers.
In such situation, competition aspects have
to be followed with particular care given that the effect
of
a
considerable importance. However, the investigation has
found no indication as to any anti-competitive practices
of the Community producer. In this context it should be
underlined that its sales prices decreased over the period
under review. Furthermore, several alternative sources of
supply still exist since coumarin is or can be imported
from several countries amongst which Japan and India
which still hold non negligible shares of the Community
market.

can have

I. ANTI-DUMPING MEASURES

(90) All parties concerned were informed of the essential facts
and considerations on the basis of which it was intended
to recommend the maintenance of
the existing anti-
dumping duty in respect of imports of coumarin orig-
inating in the PRC. They were also granted a period
within which to make representations subsequent to this
disclosure. No comments were received which were of a
nature to change the above conclusions.

(91) It follows from the above that the anti-dumping measures
currently in force with regard to imports of coumarin
originating in the People's Republic of China should be
maintained,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of coumarin falling within CN code ex 2932 21 00
in the People's
(Taric
Republic of China.

code 2932 21 00 10) originating

2.

The rate of the duty is set at 3 479 EUR per tonne.

Article 2

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

Article 3

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.