Notice of initiation of an expiry and an interim review of the antidumping measures applicable to imports of glyphosate originating in the People's Republic of China
Date: 2003-02-15
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, herbicide, import, organic chemical, originating product

C 36/18

EN

Official Journal of the European Union

15.2.2003

Notice of initiation of an expiry and an interim review of the antidumping measures applicable to
imports of glyphosate originating in the People's Republic of China

(2003/C 36/03)

the Commission has

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of glyphosate
(country
originating in the People's Republic of China,
concerned),
for
review pursuant to Article 11(2) of Council Regulation (EC)
No 384/96 (2), as last amended by Council Regulation (EC)
No 1972/2002 (3)
(the Basic Regulation). The Commission
also has evidence which justifies the initiation of a review
under Article 11(3) of the Basic Regulation.

received a request

1. Request for review

The request was lodged on 18 November 2002 by the
(the applicant) on
European Glyphosate Association (EGA)
behalf of producers representing a major proportion,
in this
case more than 90 % of the total Community production of
glyphosate.

2. Product

review is glyphosate, which can be
The product under
produced in different grades or forms of concentration of
which the main ones are the following: formulated (generally
with 36 % glyphosate content), salt (with 62 %), cake (with
84 %) and acid (with 95 %) originating in the People's
Republic of China (the product concerned), currently clas-
sifiable within CN codes
codes
2931 00 95 81 and 2931 00 95 82)
ex 3808 30 27
(Taric codes 3808 30 27 11 and 3808 30 27 19). These CN
codes are given only for information.

ex 2931 00 95 (Taric
and

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 368/98 (4), as last
amended by Council Regulation (EC) No 1086/2000 (5) and
extended to imports of
the product concerned which are
consigned from Malaysia or Taiwan, whether declared as orig-
inating in Malaysia or Taiwan or not, by Council Regulation
(EC) No 163/2002 (6).

The applicant has provided evidence that
the
product concerned from the People's Republic of China have
continued to enter the Community in significant quantities and
at dumped prices. The allegation of continuation of dumping is
based on a comparison of a normal value with the export
prices of the product concerned to the Community.

imports of

In view of the provisions of Article 2(7) of the Basic Regu-
lation,
the applicant has established normal value for the
People's Republic of China on the basis of a normal value in
an appropriate market economy country, which is mentioned
in point 5.1(d) of this notice. The allegation of continuation of
dumping is based on a comparison of normal value, as set out
in the proceeding sentence, with the export prices of
the
product concerned when sold for export to the Community.

On this basis, the dumping margins calculated are significant
for the exporting country concerned.

Concerning injury aspects, it is alleged that the prices of the
imported product concerned have continued, among other
consequences, to have a negative impact on level of prices
charged by the Community industry, resulting in substantial
adverse effects on the financial situation of the Community
industry.

been

In this respect
have

the applicant alleges
and

The applicant further alleges the likelihood of further injurious
dumping.
that since
the
absorbed
measures
injurious dumping practices would be likely to recur. Also
the applicant has presented evidence showing that Chinese
exports are dumped when sold to other
third country
markets, pointing to the likelihood of recurrence of dumping
should measures expire.

circumvented,

4. Grounds for the review

4.1. Grounds for the expiry review

is based on the grounds that

The request
the expiry of
in a continuation or
measures would be likely to result
recurrence of dumping and injury to the Community industry.

should
Furthermore the applicant presents evidence that,
measures be allowed to lapse, the current import level of the
product concerned is likely to increase due to the potential of
the manufacturing facilities of the exporting producers and
in the country concerned and the
their
in the
existence of well-established distribution channels
Community for these imports.

spare capacities

(1) OJ C 120, 23.5.2002, p. 3.
(2) OJ L 56, 6.3.96, p. 1.
(3) OJ L 305, 7.11.2002, p. 1.
(4) OJ L 47, 18.2.98, p. 1.
(5) OJ L 124, 25.5.2000, p. 1.
(6) OJ L 30, 31.1.2002, p. 1.

the applicant alleges that

In addition,
the
Community industry is fragile and that any further substantial
increase of
imports at dumped prices from the countries
concerned would be likely to cause even further injury of the
Community industry should measures be allowed to lapse.

the situation of

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Official Journal of the European Union

C 36/19

4.2. Grounds for the interim review

The Commission has decided on its own initiative to initiate an
interim review in order to examine the appropriateness of the
measures, as the evidence presented in the request shows that
the level of the measure is not sufficient to counteract the
interim
injurious dumping practices, which calls for a full
review of
the
proceeding.

the measures encompassing all aspects of

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry and an interim review,
the Commission hereby
initiates a review in accordance with Article 11(2) and 11(3)
of the Basic Regulation.

5.1. Procedure

for

the determination of

likelihood of

dumping and injury

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury, as well as the need for
the continuation,
the existing
measures.

removal or amendment of

(a) Sampling

In view of the apparent number of parties involved in this
proceeding, the Commission may decide to apply sampling,
in accordance with Article 17 of the Basic Regulation.

(i) Sampling for

exporters/producers

in the People's

Republic of China.

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

— name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 January 2002
to 31 December 2002,

— the turnover in local currency and the sales volume
in tonnes
the product concerned on the
domestic market during the period 1 January
2002 to 31 December 2002,

for

(individual margins and market economy status
can only be claimed by producers),

— the precise activities of the company with regard to

the production of the product concerned,

— the production volume in tonnes of the product
the production capacity
and the
in production capacity during the

concerned,
investments
period 1 January 2002 to 31 December 2002,

— the names and the precise activities of all related
involved in the production and/or
the product

companies (1)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

— an indication of whether

company or
companies agree to their inclusion in the sample,
which implies replying to a questionnaire and
their
accepting an on-the-spot
response,

investigation of

the

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

(ii) Sampling for importers

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

— name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

— the total turnover in euro of the company during
the period 1 January 2002 to 31 December 2002,

— the total number of employees,

— the precise activities of the company with regard to
the product concerned and the volume in tonnes of
the product concerned during the period 1 January
2002 to 31 December 2002,

— the volume in tonnes and value in euro of imports
into and resales made in the Community market
the period 1 January 2002 to 31
during
December
product
concerned originating in the People's Republic of
China,

imported

2002,

the

of

— whether the company intends to submit a claim for
an individual margin or market economy status

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

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Official Journal of the European Union

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— the names and the precise activities of all related
involved in the production and/or

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

(c) Collection of information and holding of hearings

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

— an indication of whether

company or
companies agree to their inclusion in the sample,
which implies replying to a questionnaire and
accepting an on-the-spot
their
response.

investigation of

the

In order to obtain the information it deems necessary
for the selection of
the
Commission will,
in addition, contact any known
associations of importers.

the sample of

importers,

(iii) Final selection of the samples

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

samples

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

after having

Companies included in the samples must reply to a
questionnaire within the time limit set in paragraph
6(b)(iii) of this notice and must cooperate within the
framework of the investigation.

sufficient

cooperation is not

If
the
Commission will base its findings, in accordance with
Articles 17(4) and 18 of the Basic Regulation, on the
facts available.

forthcoming,

(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the Community industry and to any association of
producers in the Community, to the sampled exporters/
in the People's Republic of China to any
producers
People's
association
Republic of China,
to any
association of importers named in the request or which
cooperated in the investigation leading to the measures
subject to the present review, and to the authorities of
the exporting country concerned.

to the sampled importers,

exporters/producers

the

of

in

In any event, all parties should contact the Commission
forthwith by fax in order to find out whether they are
listed in the request and if necessary request a questionnaire
within the time limit set in paragraph 6(a)(i), given that the
time limit set in paragraph 6(a)(ii) of this notice applies to
all interested parties.

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

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

(d) Selection of the market economy country

In the previous investigation Brazil was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
China. The Commission envisages to use Brazil again for
this purpose.
Interested parties are hereby invited to
comment on the appropriateness of this country within
the specific time limit set in paragraph 6(c) of this notice.

(e) Market economy status

For those exporters/producers in the People's Republic of
China which claim and provide sufficient evidence that they
operate under market economy conditions,
i.e. that they
meet the criteria laid down in Article 2(7)(c) of the Basic
Regulation, normal value will be determined in accordance
with Article 2(7)(b) of
the Basic Regulation. Exporters/
producers intending to submit duly substantiated claims
must do so within the
in
paragraph 6(d) of this notice. The Commission will send
claim forms to all exporters/producers in the People's
Republic of China who have either been included in the
sample or who have requested an individual margin, as well
as to the authorities of the People's Republic of China.

specific

limit

time

set

5.2. Procedure for the assessment of Community interest

the amendment of

In accordance with Article 21 of the Basic Regulation and in
the event that a likelihood of a continuation of dumping and
injury is confirmed, as well as a need to change the form of the
measures, a decision will be reached as to whether the main-
tenance or
the existing anti-dumping
measures would not be against the Community interest. For
this reason the Community industry, importers, their represen-
tative associations,
representative users and representative
consumer organisations, provided that they prove that there
is an objective link between their activity and the product
in
concerned, may, within the general
paragraph 6(a)(ii) of this notice, make themselves known and
provide the Commission with information. The parties which
have acted in conformity with the precedent sentence may
request a hearing, setting the particular reasons why they
should be heard, within the time limit set
in paragraph
6(a)(iii) of this notice. It should be noted that any information
to Article 21 will only be taken into
submitted pursuant
account
the time of
submission.

if supported by factual evidence at

limits

time

set

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Official Journal of the European Union

C 36/21

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire or other claim

forms

All
interested parties who did not cooperate in the
investigation leading to the measures subject to the
present
review should request a questionnaire or
other claim forms as soon as possible, but not later
than 15 days after the publication of this notice in the
Official Journal of the European Union.

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

tionnaire replies and any other information

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies
or any other information within 40 days of the date
of publication of this notice in the Official Journal of the
European Union, unless otherwise specified. 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 aforementioned
period.

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

(iii) Hearings

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

(b) Specific time limit in respect of sampling

the European Union, given that
to consult parties

(i) The information specified in paragraph 5.1(a)(i) and (ii)
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
the Commission
of
concerned that have
intends
expressed their willingness
to be included in the
sample on its final selection within a period of 21
days of the publication of this notice in the Official
Journal of the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) must reach the
Commission within a period of 21 days of the publi-
cation of
the
European Union.

this notice in the Official

Journal of

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

(c) Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the
appropriateness of Brazil which, as mentioned in paragraph
5.1(d) of this notice,
is envisaged as a market-economy
country for the purpose of establishing normal value in
respect of
People's Republic of China. These
comments must reach the Commission within 10 days of
the date of publication of this notice in the Official Journal
of the European Union.

the

(d) Specific time limit for submission of claims for market economy

status

Duly substantiated claims for market economy status, as
mentioned in paragraph 5.1(e) of this notice, must reach
the Commission within 21 days of the date of the selection
of any sample or as determined by the Commission.

7. Written submissions, questionnaire replies and corre-

spondence

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

Commission address for correspondence:

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.

8. Non-cooperation

In cases in which any interested party refuses access to or
otherwise does not provide the necessary information within
the time limits, or significantly impedes the investigation,
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 the facts available.