Notice of Initiation of an expiry review of the antidumping measures applicable to imports of tungsten carbide and fused tungsten carbide originating in the People's Republic of China
Date: 2003-04-08
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, import, originating product, tungsten

C 84/2

EN

Official Journal of the European Union

8.4.2003

Notice of Initiation of an expiry review of the antidumping measures applicable to imports of
tungsten carbide and fused tungsten carbide originating in the People's Republic of China

(2003/C 84/02)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of tungsten
carbide and fused tungsten carbide originating in the People's
Republic of China, (‘country concerned’), the Commission has
received a request 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 Regu-
lation’).

should measures be allowed to lapse, the current import level
of
the product concerned is likely to increase due to the
existence of unused capacity in the country concerned.

It is also alleged that
imports of the product
the flow of
concerned is likely to raise due to the saturation in traditional
markets other than the EU (i.e. USA and Japan).

1. Request for review

The request was lodged on 9 January 2003 by Eurometaux
(‘the applicant’) on behalf of producers representing a major
the total
in this case more than 80 %, of
proportion,
Community production of
and fused
tungsten carbide.

tungsten carbide

In addition, the applicant alleges that the removal of injury is
mainly due to the existence of measures and that any
recurrence of substantial imports at dumped prices from the
country concerned would likely lead to a recurrence of further
injury of the Community industry should measures be allowed
to lapse.

2. Product

5. Procedure

The product under
review is tungsten carbide and fused
tungsten carbide originating in the People's Republic of
China (‘the product concerned’), currently classifiable within
CN code 2849 90 30. This CN code is given only for
information.

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

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 771/984 (4).

4. Grounds for the review

is based on the grounds that

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

In view of the provisions of Article 2(7) of the Basic Regu-
lation, the applicant established normal value for the People's
Republic of China on the basis of the price in an appropriate
market economy country, which is mentioned in paragraph
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 preceding sentence, with the export prices of the
product concerned when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

With regard to the recurrence of dumping it is also alleged that
the exports to other third countries, i.e., Canada and USA, are
made at dumped prices.

The applicant further alleges the likelihood of further injurious
dumping. In this respect the applicant presents evidence that,

(1) OJ C 166, 12.7.2002, p. 2.
(2) OJ L 56, 6.3.1996, p. 1.
(3) OJ L 305, 7.11.2002, p. 1.
(4) OJ L 111, 9.4.1998, p. 1.

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 and the need for the
continuation or the removal of the existing measures.

(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
and
the
following
confidential
company
non-confidential
or
in paragraph
companies within the time limit set
6(b)(i) of this notice:

information
form on

in
their

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

and/or telex numbers and contact person,

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Official Journal of the European Union

C 84/3

— 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
2002-31 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
2002-31 December 2002,

for

— whether the company intends to claim an indi-
vidual margin (individual margins can only be
claimed by producers),

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

investments

the

— 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
accepting an on-the-spot
their
response.

investigation of

the

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

(ii) Final selection of the sample

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.

(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/
to any
producers
in the People's Republic of China,
association of exporters/producers,
to
any association of
importers named in the request or
which co-operated in the investigation leading to the
measures subject to the present review, and to the auth-
orities of the exporting country concerned.

to the importers,

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.

(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.

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 the USA was used as an
appropriate market economy country for the purpose of
establishing normal value
the People's
Republic of China. The Commission envisages to use the
USA 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.

in respect of

5.2. Procedure for the assessment of Community interest

sample

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

after having

consulted

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

sufficient co-operation 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,

(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).

For

this

their

industry,

they prove that

the Community

link between their

In accordance with Article 21 of the Basic Regulation and in
the event that the likelihood of a continuation of dumping and
injury is confirmed, a decision will be reached as to whether to
maintain or repeal the anti-dumping measures would not be
interest.
reason the
against
Community
representative
importers,
associations, representative users and representative consumer
organisations, provided that
there is an
objective
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

activity

limits

time

set

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Official Journal of the European Union

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6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All
interested parties who did not co-operate in the
investigation leading to the measures subject to the
present review should request a questionnaire as soon
as possible, but not later than 15 days after the publi-
cation of
the
European Communities.

this notice in the Official

Journal of

(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
specified.
European Communities, unless otherwise
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.

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

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
the USA which, as mentioned in
appropriateness of
paragraph 5.1(d) of this notice, is envisaged as a market-
economy country for the purpose of establishing normal
value in respect of the 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 Communities.

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
J-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877

8. Non-co-operation

(b) Specific time limit in respect of sampling

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

to consult parties

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.