Proposal for a Council Regulation terminating the anti-dumping proceeding concerning imports of unwrought unalloyed magnesium originating in the People's Republic of China
Date: 2003-03-10
Institutions: European Commission
Subjects: China, anti-dumping duty, common commercial policy, import (EU), magnesium

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 10.03.2003
COM(2003) 106 final

Proposal for a

COUNCIL REGULATION

terminating the anti-dumping proceeding concerning imports of unwrought unalloyed
magnesium originating in the People's Republic of China

(presented by the Commission)

EXPLANATORY MEMORANDUM

In  November  1998,  a  definitive  anti-dumping  duty  was  imposed  on  imports  of  unwrought
unalloyed magnesium originating in the People's Republic of China.

In June 2002, a partial interim review pursuant to Article 11(3) of Council Regulation (EC)
No 384/96 was initiated, which was limited in scope to the appropriateness of the definitive
anti-dumping duties imposed.

On  18  June  2002,  the  complainant  informed  the  Commission  that  the  sole  Community
producer of the product concerned ceased its production and formally withdrew its complaint.
The  Commission,  therefore,  published  a  notice  in  view  of  the  repeal  of  the  anti-dumping
measures. None of the interested parties objected.

Therefore, it is proposed to approve the termination of the present anti-dumping  proceeding
and the repealing of the existing anti-dumping measures and to publish the attached Council
Regulation in the Official Journal of the European Union.

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Proposal for a

COUNCIL REGULATION

terminating the anti-dumping proceeding concerning imports of unwrought unalloyed
magnesium originating in the People's Republic of China

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  Community1,  and  in
particular Article 9 and 11 thereof,

Having  regard  to  the  proposal  submitted  by  the  Commission2  after  consulting  the  Advisory
Committee,

Whereas:

A. PROCEDURE

(1) 

(2) 

(3) 

(4) 

In November 1998, the Council by Regulation (EC) No 2402/983 imposed definitive
antidumping  duties  on  unwrought  unalloyed  magnesium  originating  in  the  People's
Republic of China.

These  duties  were  imposed  subsequent  to  an  investigation  further  to  a  complaint
lodged by the Comité de Liaison des Industries de Ferro-Alliages (“Euro Alliages” or
the “complainant”) on behalf of the sole Community producer of unwrought unalloyed
magnesium (“the product concerned”).

In June 2002 a partial interim review4 pursuant to Article 11(3) of Council Regulation
(EC)  No  384/96  of  22  December  1995  on  protection  against  dumped  imports  from
countries  not  members  of  the  European  Community  (the  “Basic  Regulation”)  was
initiated. The review was limited in scope to the appropriateness of the definitive anti-
dumping duties imposed.

B. WITHDRAWAL OF THE COMPLAINT

By  a  letter  of  18  June  2002,  the  complainant  formally  withdrew  its  complaint.  The
complainant  informed  the  Commission  that  the  sole  known  Community  producer  of
the  product  concerned  had  ceased  its  production,  and  declared  that  the  measures
appear no longer necessary.

1 OJ L 56, 6.3.1996, p.1 as last amended by Regulation (EC) 1972/2002 (OJ L 305, 7.11.2002, p.1)
2OJ C […] du […]
3 OJ L 298, 7.11.98, p. 1, as last amended by Regulation (EC) No 2788/2000 (OJ L 324, 21.12.2000, p. 4).
4 OJ C 140, 13.6.2002, p.14

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(5) 

(6) 

(7) 

(8) 

In  accordance  with  Article  9(1)  of  the  Basic  Regulation,  a  proceeding  may  be
terminated where the complaint is withdrawn, unless such termination would not be in
the Community interest.

In a notice published on 27 September 20025 the Commission announced its intention
to investigate whether the repeal of the measures is warranted. Interested parties were
invited  to  make  themselves  known  and  provide  the  Commission  with  information
together with supporting evidence. The Commission received 7 replies from the user
industry  supporting  the  repeal  of  the  measures.  Furthermore,  the  sole  Community
producer  confirmed  that  the  measures  were  no  longer  appropriate.  In  view  of  the
above,  the  Commission  informed  the  interested  parties  of  its  intention  to  propose  to
the Council to repeal the anti-dumping duty in force and to terminate the proceeding
following the withdrawal of support. No further arguments were raised concerning the
Community  interest  aspects.  It  is  therefore  considered  that  the  termination  of  the
proceeding would not be against the Community interest.

Certain parties requested the retroactive repeal of the measures arguing that there has
been  no  basis  for  the  imposition  of  the  anti-dumping  duties  since  the  complainant
formally withdrew its complaint.

In this respect, it should be noted that the results of a review under Article 11 normally
apply from the date of conclusion of such review. Indeed, it is established Community
practice  that  anti-dumping  duties  remain  in  force  as  long  as  it  is  found  that  their
termination  (or  modification)  is  warranted.  Consequently,  parties  had  no  reason  to
legitimately  expect  that  in  the  present  case  the  existing  measures  would  be  repealed
with a retroactive effect. It was considered that a consistent legal approach should be
adopted  in  order  to  avoid  an  unstable  and  unforeseeable  environment  for  economic
operators  in  future.  Additionally,  the  termination  of  the  anti-dumping  measure  with
retroactive  effect  would  affect  the  unalloyed  magnesium  market  in  a  discriminatory
way.  Those  economic  operators  who  purchased  the  merchandise  from  countries  not
subject  to  the  anti-dumping  duties  would  in  case  of  retroactivity  find  that  their
prudence was not warranted. It was considered that operators who purchased in China
would make a windfall profit, as anti-dumping duties would not be levied on imports
made between the ceasing of production of the product concerned by the Community
industry and the publication of this Regulation. For all the above reasons, the request
for a retroactive termination had to be rejected.

(9) 

Given  the  above,  it  is  concluded  that  the  anti-dumping  proceeding  concerning
unwrought unalloyed magnesium originating in the People's Republic of China should
be terminated.

C. INTERIM REVIEW

(10)  Given the above, the ongoing interim review investigation concerning the same anti-

dumping measures should also be terminated.

5 OJ C 230, 27.9.2002, p. 2

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HAS ADOPTED THIS REGULATION:

Article 1

The anti-dumping proceeding, including the review investigation of anti-dumping measures,
concerning  imports  of  unwrought  unalloyed  magnesium  currently  classifiable  within  CN
codes  8104  11  00  and  ex  8104  19  00  and  originating  in  the  People's  Republic  of  China  is
hereby terminated.

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

Article 2

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

Done at Brussels,

For the Council
The President

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