Commission Regulation (EC) No 2261/2002 of 18 December 2002 on initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed by Council Regulation (EC) No 408/2002 on imports of certain zinc oxides originating in the People's Republic of China by imports of certain other zinc oxides originating in the People's Republic of China and by imports of certain zinc oxides consigned from Vietnam, and making such imports subject to registration
Date: 2002-12-18
Institutions: European Commission
Subjects: China, EU control, anti-dumping duty, anti-dumping legislation, import, originating product, oxide, zinc

L 344/12

EN

Official Journal of the European Communities

19.12.2002

COMMISSION REGULATION (EC) No 2261/2002

of 18 December 2002

on initiating an investigation concerning the alleged circumvention of anti-dumping measures
imposed by Council Regulation (EC) No 408/2002 on imports of certain zinc oxides originating in
the People's Republic of China by imports of certain other zinc oxides originating in the People's
Republic of China and by imports of certain zinc oxides consigned from Vietnam, and making such
imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 Council Regulation (EC) No 1972/2002 (2), and in
particular Article 13(3) and Article 14(5) thereof,

After having consulted the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

(5)

A. REQUEST

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

The request has been lodged on 18 November 2002 by
Eurometaux on behalf of producers representing a major
proportion, i.e. over 50 % of the Community production
of certain zinc oxides.

B. PRODUCT

The product concerned by the allegation of circumven-
tion is zinc oxide (chemical formula ZnO) with a purity
of not less than 93 % zinc oxide, currently classifiable
within
code
2817 00 00 11). This code is given for information only.

ex 2817 00 00

(Taric

code

CN

C. EXISTING MEASURES

The measures currently in force and allegedly being
circumvented are anti-dumping measures imposed by
Council Regulation (EC) No 408/2002 (3).

D. GROUNDS

The request contains sufficient prima facie evidence, that
the anti-dumping measures on imports of certain zinc
oxides originating in the People's Republic of China are
being circumvented by means of transhipment of certain
zinc oxides via Vietnam and by means of mixing certain
zinc oxides originating in the People's Republic of China
with other substances, such as silica, thus lowering the
purity of zinc oxide below 93 % (‘the mixed zinc oxide

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 305, 7.11.2002, p. 1.
(3) OJ L 62, 5.3.2002, p. 7.

products’). Hereinafter,
the products which are being
imported via these practices are referred to as ‘products
under investigation’.

(6)

The evidence submitted is as follows:

The request shows a significant change in the pattern of
trade, as imports of products under investigation have
increased substantially, whereas imports of the product
concerned originating in the People's Republic of China
have decreased. This change in the pattern of
trade
appears to stem from a transhipment of certain zinc
oxides originating in the People's Republic of China via
Vietnam and from the fact that certain zinc oxides origi-
nating in the People's Republic of China are being mixed
with other substances, thereby falling outside the rele-
vant Taric code, notwithstanding the fact that the basic
remain
characteristics
unchanged. There is insufficient due cause or economic
justification for these practices other than the imposition
of the duty.

product

uses

and

the

of

(7)

(8)

(9)

Furthermore,
the request contains sufficient evidence
that the remedial effects of the existing anti-dumping
measures on the product concerned are being under-
mined both in terms of quantity and price. Significant
imports of products under investigation
volumes of
appear
the product
concerned originating in the People's Republic of China.
In addition, there is sufficient evidence that the imports
of circumventing products are made at prices below the
non-injurious price established in the investigation that
led to the existing measures.

replaced imports of

to have

Finally, the request contains sufficient evidence that the
prices of products under investigation are dumped in
relation to the normal values previously established for
certain zinc oxides.

E. PROCEDURE

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant
to Article 13 of the Basic
Regulation and to make imports, of certain zinc oxides
consigned from Vietnam, whether declared as origi-
nating in Vietnam or not, and imports of the mixed zinc
oxide products originating in the People's Republic of
China falling under CN code Taric 2817 00 00 19,
subject to registration, in accordance with Article 14(5)
of the Basic Regulation.

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Official Journal of the European Communities

L 344/13

a) Questionnaires

F. REGISTRATION

(10)

In order to obtain the information it deems necessary
for its investigation, the Commission will send question-
naires to the exporters/producers and to the associations
of exporters/producers in Vietnam, the exporters/produ-
cers and to the associations of exporters/producers in
the People's Republic of China, named in the request, to
the importers and to the associations of importers in the
Community which cooperated in the investigation that
lead to the existing measures and to the authorities of
the People's Republic of China and Vietnam. Informa-
tion, as appropriate, may also be sought
from the
Community industry.

(11)

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

(12)

The authorities of the People's Republic of China and
Vietnam will be notified of the initiation of the investiga-
tion and provided with a copy of the request.

b) Collection of information and holding of hear-

ings

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

they make a request

c) Exemption of registration of imports or measures

(14)

In accordance with Article 13(4) of the Basic Regulation,
imports of the product concerned may be exempted
from registration or measures if the importation does
not constitute circumvention.

registration of

(15) Given that the alleged circumvention takes place outside
the Community, exemption of imports from registration
or measures would depend entirely on the findings in
respect of the exporters in Vietnam and in the People's
Republic of China. Therefore, exporters wishing to
imports or
obtain an exemption of
measures should apply for the exemption and submit
the questionnaire reply (in order to establish that they
are not circumventing the anti-dumping duties within
the meaning of Article 13(1) of the Basic Regulation)
within the time limits set in Article 3(2) of this Regula-
tion. Although no exemption could be granted purely
on the basis of information from importers, these could
from exemption from registration or
still benefit
their imports are from
measures to the extent
exporters which are granted such an exemption.

that

(16)

to Article 14(5) of

the Basic Regulation,
Pursuant
imports of
the product concerned should be made
subject to registration in order to ensure that, should the
investigation result in findings of circumvention, anti-
dumping duties can be levied retroactively from the date
of the initiation of this investigation on certain zinc
oxides consigned from Vietnam and on the mixed zinc
oxide products from the People's Republic of China.

G. TIME LIMITS

(17)

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

time limits

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

— interested parties may make a written request to be

heard by the Commission.

(18) Attention is drawn to the fact that the exercise of most
procedural rights set out in the Basic Regulation depends
on the party's making itself known within the time limits
mentioned in Article 3 of this Regulation.

H. NON-COOPERATION

(19)

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

HAS ADOPTED THIS REGULATION:

Article 1

An investigation is hereby initiated pursuant to Article 13(3) of
Regulation (EC) No 384/96, in order to determine if imports
into the Community of certain zinc oxides, (chemical formula
ZnO) with a purity of not less than 93 % zinc oxide) falling
within CN code ex 2817 00 00 11, consigned from Vietnam,
whether declared as originating in Vietnam or not, and imports
of certain zinc oxides originating in the People's Republic of
China mixed with other substances, and falling within CN code
Taric 2817 00 00 19, are circumventing the measures imposed
by Council Regulation (EC) No 408/2002.

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Official Journal of the European Communities

19.12.2002

Article 2

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

Registration shall expire nine months following the date of
entry into force of this Regulation.

The Commission, by Regulation, may direct Customs authori-
ties to cease registration in respect of imports into the Commu-
nity of products exported by exporters having applied for an
exemption of registration and having been found not to be
circumventing the anti-dumping duties.

Article 3

1.
Questionnaires should be requested from the Commission
within 15 days from publication of this Regulation in the Offi-
cial Journal of the European Communities.

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

Interested parties may also apply to be heard by the

3.
Commission within the same 40-day time limit.

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

European Commission
Directorate General for Trade
Directorate B
Office: J-79, 5/16
B-1049 Brussels
Fax (32 2) 295 65 05
Telex COMEU B 21877.

Article 4

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Commu-
nities.

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

Done at Brussels, 18 December 2002.

For the Commission

Pascal LAMY

Member of the Commission