Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of powdered activated carbon (PAC) originating in the People's Republic of China
Date: 2002-05-27
Institutions: European Commission
Subjects: anti-dumping duty, anti-dumping legislation, coal, dumping, 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

powdered activated carbon (PAC) originating in the People's Republic of China

(2002/C 227 E/05)

COM(2002) 251 final

(Submitted by the Commission on 27 May 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 INVESTIGATION

(1) By Regulation (EC) No 1006/96 (2), the Council imposed
definitive anti-dumping measures on imports of powdered
activated carbon originating in the People's Republic of
China.

B. PRESENT INVESTIGATION

(2) Following the publication of a notice of

the anti-dumping measures in force,

impending
expiry (3) of
the
for an expiry review
Commission received a request
lodged by the European Chemical
Industry Council
(CEFIC) on behalf of two producers, together representing
a major proportion (more than 80 %) of
the total
Community production of powdered activated carbon
(‘PAC’). The request alleged that
injurious dumping of
imports originating in the People's Republic of China
(‘China’) would be likely to recur if the measures expired.

(3) Having

after
sufficient

determined,
that

the Advisory
the
Committee,
initiation of a review, the Commission initiated an inves-
tigation (4) pursuant to Article 11(2) of Regulation (EC)
No 384/96 (the ‘basic Regulation’).

consulting
evidence

existed for

(4) The investigation into the likelihood of a continuation or
recurrence of dumping and injury covered the period
from 1 June 2000 to 31 May 2001 (‘IP’). The examination
of trends relevant for the assessment of a likelihood of a
continuation or recurrence of injury covered the period
from 1997 up to the end of the IP (‘analysis period’).

(5) The Commission

advised
exporters

the
applicant
officially
and exporting
the
Community producers,
producers in China, importers/traders, users and suppliers,
which were known to be concerned, 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.

exporters

the product concerned in China,

(6) The Commission sent out 26 questionnaires to unrelated
importers/traders and 49 questionnaires to exporters and
exporting producers in China. Furthermore, due to the
and exporting
apparent high number of
producers of
the
Commission sent out a questionnaire asking specific
information on average sales volume and prices of PAC
(‘sample questionnaire’) of each exporter and exporting
to determine whether
in order
producer concerned,
sampling was necessary. No answer was received from
importers/traders, and one exporter in China replied to
the sample questionnaire, but subsequently stopped coop-
erating.

(7) The Commission also sent questionnaires to all other
parties known to be concerned and received replies
from the two Community producers on whose behalf
the request
lodged and from two
suppliers of raw materials and two users.

review was

for

(8) The Commission sought and verified all the information it
deemed necessary for the purpose of the determination of
the likelihood of continuation or recurrence of dumping
and injury and for the determination of the Community
interest. Verification visits were
the
premises of the following companies:

carried out at

(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).

Producer
America:

in the analogue country United States of

(2) OJ L 134, 5.6.1996, p. 20.
(3) OJ C 349, 6.12.2000, p. 5.
(4) Notice of initiation: OJ C 163, 6.6.2001, p. 7.

— NORIT Americas Inc, Atlanta, Georgia

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Community producers

— Norit NV, Netherlands

— Ceca SA, France

teristics as PAC produced in China and exported to the
Community. Therefore,
they are considered to be like
products within the meaning of Article 1(4) of the basic
Regulation.

D. LIKELIHOOD OF CONTINUATION OR RECURRENCE
OF DUMPING

1. Preliminary remarks

C. PRODUCT UNDER CONSIDERATION AND LIKE
PRODUCT

(9) The product under consideration is the same as in the
i.e. PAC currently classifiable
original
investigation,
within CN code ex 3802 10 00.
is a microporous
form of carbon, obtained from a variety of raw material
such as coal, peat, wood, lignite, olive stones or coconut
shells, which are activated by means of steam or chemical
process. PAC is a very fine powder. Activated carbons are
also sold in granular forms (‘granulated activated carbon’
or ‘GAC’) which are not covered by the measures in force.

It

(10) Subsequently to the imposition of definitive measures in
1996, certain difficulties appeared as to the distinction of
activated carbon sold in ‘powder’ from activated carbon
sold in granular form. In this regard, it is important to
note that both products are made of ensembles of
particles of carbon whose size vary and there is no inter-
national standard in respect of PAC. Therefore, for the
purpose of
the
Community Customs Code Committee defined PAC in
‘powdered activated carbon consists
the following way:
of at least 90 percent by mass (% m/m) of particles with
a size less than 0,5 mm’. The investigation confirmed the
accuracy of this definition.

implementation of

the measures,

(11) The general applications of PAC are: water treatment
(potable process and waste water), gas and air purification,
solvent recovery, decolourisation of sugar, vegetables oils
and fats, deodorisation and purification of different
products in the chemical
(i.e. organic acids) or phar-
maceutical (i.e. gastro-intestinal capsule) or food industries
(i.e. alcoholic and soft drinks).

(13) In accordance with Article 11(2) of the basic Regulation,
the purpose of an expiry review is to determine whether
likely to lead to a
the expiry of
continuation or recurrence of dumping.

the measures

is

(14) In this respect, the volumes exported to the Community
during the IP were examined. It should be noted that since
none of the Chinese exporters nor any importer in the
Community cooperated during the present investigation,
export data were established in accordance with Article
18 of the basic Regulation, i.e. on the basis of information
available. Since the imposition of definitive anti-dumping
duties in 1996, Community statistics are available for
imports of PAC. These statistics have been confirmed by
the
market
complainant Community producers. On this basis, and
in the absence of any other more reliable information,
these statistics were used. They showed that during the
IP 993 tonnes of PAC were imported from China into the
Community.

information

submitted

research

by

(15) During the original IP, the import volume of Chinese PAC
i.e.
into the Community amounted to 4 008 tonnes,
approximately
consumption.
10 % of Community
Imports dropped in 1996 after the imposition of the anti-
dumping duty to 960 tonnes and remained relatively
stable in the following years, reaching 842 tonnes in
1999, and 811 tonnes in 2000.

(16) The market share of Chinese imports of PAC in the
Community as recorded in Eurostat is less than 3 % but
nonetheless significant, i.e. above the de minimis threshold
of the basic Regulation (1).

(12) As shown in the previous investigation, and as confirmed
in the present investigation, it has been established that
PAC produced and sold by the Community producers and
PAC imported from China are in all respects identical and
share therefore the same basic physical and chemical
characteristics. China being an economy in transition
(18), normal value
and as mentioned below in recital
had to be established on the basis of
information
obtained in a market economy third country. According
to the information available, PAC produced and sold in
the market economy third country, the United States of
America has the same basic physical and chemical charac-

2. Likelihood of continuation of dumping

(17) In the context of
it was

the likelihood of a continuation of
dumping,
investigated whether dumping of
exports from China was currently taking place. This was
on the grounds that, if dumping was taking place now,
this could be an important indication that dumping would
be likely to continue in future, should the measures be
allowed to expire.

(1) Articles 5(7) and 9(3).

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(a) Analogue country

(c) Export price

(18) Since China is an economy in transition, normal value
was determined on the basis of information obtained in
an appropriate market economy third country selected in
accordance with Article 2(7) of the basic Regulation.

(19) The USA was selected as an appropriate analogue country
in the original proceeding. As indicated in the Notice of
Initiation, the Commission envisaged to use the USA as
an appropriate analogue country also in the present
the investigation revealed
proceeding.
analogue
that
country for the following reasons:

the most appropriate

In this respect,

the USA was

by

the

Figures

The USA is one of the largest producing countries of PAC
world-wide.
cooperating
submitted
producer in the USA and the Community producers
behind the request for review showed that the production
volume of both countries is comparable. Furthermore, as
mentioned in recital (12) PAC produced and sold in the
USA was found to be a like product to PAC produced in
China and exported to the Community. Domestic sales
(in terms of
made by the cooperating US-producer
volume) were representative when compared to the
imports of PAC from China into the Community.
Finally, the level of competition in the USA was found
to be very high. In addition to the competition amongst
several producers in the USA, there was also competition
from imported PAC (mainly from China, Philippines and
Sri Lanka), which could be imported without quantitative
restrictions or import duties. The main US-producer of
PAC was furthermore willing to cooperate.

(22) As mentioned above, neither the Chinese exporters nor
exporting producers, nor any importer of PAC in the
Community cooperated in this proceeding. Therefore,
the export price was determined on the basis of facts
available in accordance with Article 18 of the basic Regu-
lation. As already mentioned in recital (14) of the present
Regulation, and in the absence of any other more reliable
information, this was done by reference to Eurostat.

(23) Data in Eurostat are

recorded on a cif European
Community frontier basis. These prices were brought to
a fob basis by deducting ocean freight and insurance cost.
The necessary information on these costs has been
submitted by the Community industry and used in the
calculations,
in the absence of any other more reliable
information.

(d) Comparison

(24) For the purpose of ensuring a fair comparison between
normal value and export price, account was taken of
differences in factors, which were found to affect prices
and price comparability in accordance with Article 2(10)
of the basic Regulation. In this regard, adjustments for
differences in the level of trade, commissions, packing
and inland transport costs were made.

(25) As far as the normal value is concerned, the weighted
average inland transport cost and packing cost per unit
were deducted from the domestic sales price.
Inland
transport cost included insurance, loading and unloading
costs. Given the non cooperation of the Chinese exporters
or exporting producers, and in the absence of any more
reliable
inland
transport and packing was deducted from the fob
export price.

information,

amount

same

the

for

(20) Given the above, and as no comments were received on
the
the choice of
interested parties, the USA was consequently selected as
the most appropriate analogue country.

the analogue country by any of

(b) Normal value

trade. For

(21) In accordance with Article 2(1) of the basic Regulation, it
was considered whether domestic sales of PAC in the USA
could, considering the price charged, be seen to be made
in the ordinary course of
so doing the
Commission examined whether domestic sales were prof-
itable. For this purpose the full cost of production per
unit of each grade during the IP was compared to the
average unit price of
the sales transactions of each
grade made during the same period. It was found that
all sales were made at a profit. The investigation also
to independent
sales were made
revealed that
customers. As a result the prices paid or payable for
PAC by independent customers on the US domestic
market
trade were used to
determine the normal value in accordance with Article
2(1) of the basic Regulation.

in the ordinary course of

all

(26) As far as packing costs are concerned, evidence was
submitted to the Commission by the
complainant
Community industry, which showed that at least some
of the product exported to the Community was packed
in bags while the normal value was established on an ex
packaging costs basis. The export price was therefore
adjusted downwards
amount of
packaging costs.

for an appropriate

(27) Domestic sales

in the USA were mainly made to
end-users, while Chinese exports of PAC are, on the
basis of information available, mainly made to traders/
the normal value was adjusted
distributors. Therefore,
by a distributor discount applicable on the US domestic
market.

(28) Furthermore and according to evidence submitted by the
Community industry, almost all export sales from China
were made via export agencies, due to the requirement of
export licences. Therefore, a commission fee of 1 % was
deducted from the export price.

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(e) Dumping margin

of

level

trade,

(29) The weighted average normal value and the weighted
average export price of all grades were compared at the
same
distributors/traders. The
i.e.
PAC to the
comparison showed that
Community have been dumped at a substantial margin
during the IP. The dumping margin was equal to the
amount by which the normal value exceeded the prices
for exports to the Community. The weighted average
dumping margin exceeded 40 %.

exports of

3. Development of imports should measures expire

(30) It was also examined as to how imports of PAC from
China would develop should measures expire. For that
purpose the spare production capacity in China, export
volume and the domestic market in China as well as the
Chinese price behaviour to other third countries were
examined. In the absence of cooperation from exporting
producers, market research information submitted by the
Community industry was used.

(a) Production capacity, domestic market in China and export

volume

together with the United States,

(31) The information available to the Commission showed that
China,
is the largest
producer and exporter of activated carbons (granular
and powdered)
in the world. Actual production of
activated carbons in China amounted to about 100 000
tonnes in 1998 according to a statistical industrial census,
provided by the Community industry, of which 40 % or
40 000 tonnes in powder form. Production capacity was
estimated at 140 000 tonnes during the same period
based on the capacity of the most important Chinese
producers representing 31 % of total Chinese capacity,
of which at least half can be dedicated to the production
capacity of
of PAC,
approximately 30 000 tonnes was
thus available in
1998 for producing PAC.

i.e. 70 000 tonnes. A spare

industrial census,

(32) On the basis of data available for prior years included in
the abovementioned statistical
it was
estimated that the annual growth rate of consumption,
production and production capacity of PAC in China
amounted to at least 5 %. On this basis spare capacities
of PAC will reach up to 36 000 tonnes in 2003. Due to
the specific situation on the domestic market (see recital
below) the total spare capacity would be available for
export.

(33) Furthermore, according to the abovementioned statistical
industrial census, the Chinese domestic market was char-
acterised by a significant oversupply resulting in unstable
prices.
turned
increasingly to export markets, often the only possibility

Therefore, Chinese

PAC producers

restrictions (other

to maintain production at all. It is important to note that
there were no export
than export
licences) of PAC in China. Given the situation on the
Chinese domestic market, the significant spare capacities
and the consequent need to explore export markets, it was
considered likely that export prices would be on a low
level and dumped.

(34) Main export markets for Chinese PAC were South East
Asia, Japan, the Republic of Korea, the USA and Europe.
However, according to the evidence submitted by the
Community industry, the additional need for imported
PAC in the other third countries would be minimal and
the capability to absorb further Chinese exports therefore
almost negligible. Furthermore it should be noted that a
number of potential export markets in the Asian region
apply high customs tariffs for PAC, such as India and
Indonesia.

(35) In contrast, should the anti-dumping duty be removed,
the Community market would be able to absorb large
quantities of Chinese PAC due
significant
Community consumption. In this respect, it should also
be noted that Chinese exporters are still present on the
Community market via related importers, which facilitates
increased imports and distribution of PAC.

to the

(36) In conclusion, should the measures be removed, it is likely
that Chinese producers will increase their capacity utili-
sation, as the Community would become an attractive
export market.

(b) Price behaviour

(37) An analysis of the price behaviour of Chinese exporters to
other third countries, such as the United States and Japan
revealed that exports of PAC to these countries were made
at very low prices and were dumped when compared to
the normal value established in this investigation. As
regards the United States and according to the evidence
provided by the Community industry, as well as the
information provided by the cooperating producer in
the USA,
the level of dumping would exceed 40 %,
while the dumping margin for exports to Japan would
be over 90 %.

(38) Considering the vast spare capacity available for exports
is
and the export-driven Chinese PAC production,
reasonable to assume that
the dumping margins that
could be practised in the Community, are likely to be at
least at the same level as those to other major exporting
markets of Chinese PAC, should anti-dumping measures
lapse.

it

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4. Conclusion on the likelihood of a continuation of
dumping

likelihood

it would

(39) Imports of Chinese PAC during the IP were made above
de minimis levels and were still dumped. It was estab-
there is a
lished that dumping continued and that
strong
should
that
measures be allowed to lapse. Moreover, it is likely that
exports of Chinese
PAC to the Community will
significantly increase (and return to at least the levels
found in the original
these
additional
likelihood be
dumped at significant
levels, should the anti-dumping
measures lapse.

IP) and that prices of
in all

import quantities will

continue

E. DEFINITION OF THE COMMUNITY INDUSTRY

(40) The two Community producers on whose behalf

the
complaint was lodged cooperated in the investigation.
the Community
They represented more than 80 % of
production
the
constitute
therefore
Community industry within the meaning of Article 4(1)
and Article 5(4) of the basic Regulation.

PAC and

of

F. SITUATION OF THE COMMUNITY MARKET

1. Community consumption

(41) Apparent Community consumption of PAC was estab-
the
the
review
and

lished on the basis of
sales volumes of
Community industry on the Community market,
in the
information contained
concerning
other Community
Eurostat in relation to imports of PAC.

for
producers

request

the

the

Imports from China

1997

1998

1999

2000

IP

Volume, tonnes

818

647

842

811

993

Indexed

100

79

103

99

121

Price, EUR per tonne

832

834

863 1 089 1 067

Indexed

100

100

104

131

128

(b) Price behaviour of imports

than the Community

(45) Even after the imposition of an anti-dumping duty in
1996, prices of PAC originating in China remained
lower
industry's prices. The
difference with Community industry's prices was 15 %
during the IP. This differential was established on the
basis of
the
(ex works) of
import prices being
Community
derived from Eurostat and adjusted for post importation
cost, customs and anti-dumping duties.

sales prices
industry, Chinese

average

3. Economic situation of the Community industry

(a) Preliminary remarks

(46) As

in order

the Community industry is constituted by two
companies,
the
to protect
information concerning the Community industry had to
all market
indexed, while market
be
participants have been rounded.

confidentiality,

shares

for

(42) On this basis Community consumption was practically
slightly below

stable during the analysis period at
40 000 tonnes a year.

(b) Production, capacity and capacity utilisation rates

(47) The Community industry's production of PAC decreased
by 5 % in the analysis period to just over 30 000 tonnes.
The total production capacity of the Community industry,
from 1998 to the IP, was stable at around 35 000 tonnes,
with a high utilisation rate.

2. Imports from China

(a) Volume, market share and prices

(43) Based on information from Eurostat, volumes imported
from China during the analysis period slightly increased
but remained below 3 % of consumption, whilst their
market share was above 10 % in the previous investi-
gation.

(c) Sales in the Community and market share

(48) The sales volumes of the Community industry decreased
by 11 % between 1997 and 1999. It increased slightly in
2000 and in the IP but remained 6 % below its 1997
level. As consumption was practically stable, market
share showed the same trend as sales. Overall, it fell in
the analysis period by 7 percentage points to reach
approximately 60 % in the IP.

(44) In the analysis period, prices of
increased by 28 %, mainly for
because of
rate,
world-wide prices of coal went up as
market research information.

imports from China
two reasons. Firstly,
the euro/dollar exchange
especially between 1999 and 2000. Secondly,
indicated by

the evolution of

Sales in tonnes

1997

1998

1999

2000

IP

Indexed

100

91

89

92

94

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(d) Stocks

(j) Investment

(49) In the analysis period, the Community industry's year end
stocks of PAC increased by 15 % as sales decreased and
the equipment was continuously run in order to avoid
furnace re-ignition costs that are very high.

(55) During the analysis period, the Community industry made
sustained investment
to increase its productivity and
rationalise its production process. The sums invested
each year were fairly stable.

(e) Sales prices in the Community

(k) Productivity

(50) The Community industry's average net
increased by 7 % in the analysis period.
2000 prices were higher than in the IP.

sales prices
In 1999 and

(56) The Community industry's productivity based upon
tonnes produced per person employed for the production
and sales of PAC increased by 7 % in the analysis period.

Prices of PAC

1997

1998

1999

2000

IP

(l) Magnitude of dumping and recovery from past dumping

Indexed

100

103

111

110

107

(57) As

(f) Profitability and return on investment

investigation,

(51) After having registered losses of 10 % in 1993, the IP of
the previous
the Community industry
returned to profits in 1997. With the exception of
2000 for which profits were satisfactory thanks to the
combination of a high level of price and fairly low unit
costs, however
the
Community industry never exceeded 6 %. Return on
investments was stable and positive during the analysis
period.

the profit

achieved

level

by

the

concerns

situation of

impact on the

the magnitude of

the
the actual
it should be
the margin found for China is significant.
anti-dumping measures
the
the Community industry could recover from

Community industry of
margin of dumping found during the IP,
noted that
to
Due
however,
past dumping.

existence

of

4. Export activity of the Community industry

(58) The Community industry's

increased over
somewhat more than 1/3 of total production.

analysis period,

the

exports of PAC slightly
and represent

Profitability

1997

1998

1999

2000

IP

5. Import volumes and prices

from other

third

Indexed

100

94

85

198

131

(g) Cash flow

(52) The Community industry proved to be cash generative
throughout the period, with a similar trend to the one
of profitability.

(h) Ability to raise capital

(53) No specific problem to raise capital or obtain loans was
experienced by the Community industry during the
analysis period.

(i) Employment and wages

(54) Employment in the Community industry decreased by 9 %
in the analysis period to less than 350 persons while total
labour costs increased by 11 % (an increase of around
20 % per employee).

countries

(59) The total

import volumes of PAC from third countries
other than China decreased during the analysis period
from about 7 600 tonnes in 1997 to 5 400 tonnes in
the IP, corresponding to market shares of around 20 %
and 15 % respectively. The major exporters
to the
Community have been the USA, Malaysia and Indonesia.
While imports from the USA have halved, imports from
these latter countries increased from about 1 100 tonnes
in 1997 to 1 900 tonnes in the IP. Average import prices
from Malaysia and Indonesia were lower than those of the
Community industry and in the same range as prices of
imports originating in China.

6. Sales of other Community producers

of GAC not

(60) Other Community producers of
subject

PAC are mainly
processors
anti-dumping
to
measures. In the analysis period, they started to import
more GAC from China to grind it into PAC. They, thus,
were able to gain market share from 10 % in 1997 to
more than 20 % in the IP. This competition, however, did
not prevent the Community industry to sell its PAC at a
price allowing a reasonable profitability.

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7. Conclusion

(61) The measures have enabled the Community industry to
return to profitability and have alleviated the price
pressure exerted by the dumped imports originating in
China. However, the Community industry continued to
lose market
as other Community
producers started to sell PAC made from GAC originating
in China. Thus, while its financial situation is satisfactory,
its market position remains fragile.

especially

share

G. LIKELIHOOD OF RECURRENCE OF INJURY

(62) It is recalled that at recital (39) it was concluded that the
expiry of
the measures would be likely to lead to a
significant increase of dumped imports from China into
the Community.

(63) Indeed,

it

is

lapse,

should the measures

likely that
considerable volumes will be shipped to the Community
market at very low prices which significantly undercut the
Community industry's prices. The current price differential
and the
of 15 % between the
Community industry's product
(45)) could
increase to exceed 30 % (the amount of duty in relation
to current import prices), if the measure were allowed to
expire. It should be noted that the current Chinese export
price to the Community (on a cif basis) is in line with
Chinese export prices to other third countries.

imported product

(see recital

(64) It is estimated that at least 10 000 tonnes of PAC orig-
inating in China could be exported to the Community as
soon as the duty has lapsed. This would represent more
than a fourth of the Community market. As in this type
industry there are high fixed costs and very high
of
re-ignition costs in case of production stoppage,
the
arrival of such a quantity of dumped imports would
immediately cause a severe price depression on the
try to
market as the Community industry would first
maintain its market
its
production. This would in turn completely erode the
industry
Community industry's profitability and the
would return to losses similar to those experienced in
1993.
In the medium term the Community industry
could be forced out of the market as there is no more
room for significant gains in productivity which would
allow it to operate at lower unit costs.

than reduce

rather

share

(65) The above should be seen in the following context. The
the Community Industry has undoubtedly
situation of
fragile). For
improved (although this industry is still
instance,
the Community industry recorded losses of
10,8 % in the original IP which have been turned into a

increased
profit of about 6 %. The likely impact of
imports made at dumped prices set out in the preceding
paragraph is also confirmed when looking at the main
changes which occurred in the market between the
original IP and the current IP.

— During the current IP, the market share of imports
from China was significantly lower than during the
original IP.

— The price differential between the Community prices
and prices of
imports has been
the Chinese
significantly reduced due to the existence of the duty.

— During the current IP there were low-priced imports
from Indonesia and Malaysia but the quantities still
remained considerably below the levels found for
China in the original
is also recalled that
IP.
imports from Malaysia were already present on the
Community market during the original IP.

It

— The market share of producers in the Community,
which are not part of the Community industry, has
increased.

On this basis, it is concluded that the main change which
led to an improvement of the situation of the Community
industry, was the restoration of a level playing field
vis-à-vis imports of PAC from China. Therefore,
the
positive situation of
the Community industry would
quickly deteriorate should Chinese exporting producers
again have the possibility to dump on the Community
market at significantly increased quantities.

(66) On the basis of the above, it is concluded that, should the
measures be allowed to expire, there is a likelihood of
recurrence of injury.

H. COMMUNITY INTEREST

1. Preliminary remark

(67) 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 Community
interest was based on an appreciation of all the various
interests involved, i.e. those of the Community industry,
other Community producers, the importers/traders as well
as
the product under
the users
consideration.

and suppliers of

C 227 E/332

EN

Official Journal of the European Communities

24.9.2002

(68) 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
present
thus analysing a
situation in which anti-dumping measures have already
been in place, which would allow the assessment of any
undue negative impact of
the current anti-dumping
measures on the parties concerned.

investigation is a review,

6. Interests of suppliers

(75) The Commission sent out questionnaires to 11 suppliers
of raw materials to PAC producers to which only two
answers were received. The replies were positive to
keeping the measures in place as that would mean
continued secured sales in the Community.

7. Conclusion

(69) On this basis it was examined whether, despite the
the
conclusion on the benefit of
Community
a
recurrence of injurious dumping should measures expire,
compelling reasons existed which would lead to the
conclusion that it is not in the Community interest to
maintain measures in this particular case.

likelihood of

the measures

and on the

industry

for

2. Interests of the Community industry

competition had been restored after

(70) 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
its situation at a time when
positive development of
the
effective
imposition of anti-dumping measures on imports orig-
inating in China and by the industry's investment in state-
of-the-art production capacity. However,
can be
concluded that, without the continuation of anti-dumping
likelihood severely
measures,
deteriorate.

its situation will

in all

it

3. Interests of other producers

(71) Taking into account the likely quantities and prices of
Chinese PAC likely to be exported to the Community if
measures were allowed to lapse, other producers of PAC,
including from granular activated carbon originating in
China, would also see their market share and economic
situation deteriorate.

4. Interests of unrelated importers/traders

(72) The Commission sent out questionnaires to 26 unrelated

importers/traders. No answer was received.

(73) In these

circumstances

the
continuation of measures would not affect the unrelated
importers/traders.

concluded that

it was

5. Interests of users

(74) The Commission sent out questionnaires to 42 users. Two
incomplete answers were received from which it was
evident that PAC had a very small impact on costs (less
than 0,1 %).

(76) Given the above,

it

is concluded that

there are no
compelling reasons, on the grounds of Community
interest, against
the anti-dumping
the prolongation of
measures.

I. ANTI-DUMPING MEASURES

(77) All parties were informed of

the essential

facts and
considerations on the basis of which it is intended to
recommend the maintenance of existing measures. They
were also granted a period to make representations
subsequent
to this disclosure. No comments were
received.

(78) It follows from the above that, as provided for by Article
11(2) of the basic Regulation, the anti-dumping measures
applicable to imports of PAC originating in China,
imposed by Regulation (EC) No 1006/96, should be main-
tained,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of powdered activated carbon falling within CN code
ex 3802 10 00 (Taric code 3802 10 00 20) originating in the
People's Republic of China.

The amount of the definitive anti-dumping duty shall be

2.
EUR 323 per tonne (net weight).

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 that
of
the European
Communities.

its publication in the Official

Journal of

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