Notice of initiation of an anti-subsidy proceeding concerning imports of certain graphite electrode systems originating in India
Date: 2003-08-21
Institutions: European Commission
Subjects: India, anti-subsidy proceeding, carbon, import, originating product

21.8.2003

EN

Official Journal of the European Union

C 197/5

Notice of initiation of an anti-subsidy proceeding concerning imports of certain graphite electrode
systems originating in India

(2003/C 197/03)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1), as last amended
by Council Regulation (EC) No 1973/2002 (2) (the basic Regu-
lation), alleging that
imports of certain graphite electrode
systems, originating in India (the country concerned), are
being subsidised and are thereby causing material
injury to
the Community industry.

1. Complaint

The complaint was lodged on 7 July 2003 by the European
Carbon and Graphite Association (the complainant) on behalf
of producers representing a major proportion,
in this case
the total Community production of
more than 50 %, of
certain graphite electrode systems.

2. Product

The product allegedly being subsidized is, as above, graphite
electrodes of a kind used for electric furnaces, with an apparent
density of 1,65 g/cm3 or more and an electrical resistance of
less, normally declared within CN code
6,0 µΩ.m or
ex 8545 11 00 and/or nipples used for
such electrodes,
normally declared within CN code ex 8545 90 90, whether
imported together or separately (the product concerned) orig-
inating in India. These CN codes
are only given for
information.

3. Allegation of subsidisation

It is alleged that the producers of the product concerned from
India have benefited from a number of subsidies granted by the
Government of India. These alleged subsidies consist of benefits
located in export processing zones/export
for
industries
oriented units;
the advance licenses; advance release orders
scheme;
the duty entitlement passbook scheme; an income
tax exemption; and the export promotion capital goods
scheme.

The total subsidy is estimated to be significant.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of India
and confer a benefit
to exporters/
producers of certain graphite electrode systems. They are
alleged to be contingent upon export performance and
to be otherwise
therefore specific and countervailable or
specific and countervailable.

to the recipients,

i.e.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from India have increased overall
in
absolute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a

(1) OJ L 288, 21.10.1997, p. 1.
(2) OJ L 305, 7.11.2002, p. 4.

negative impact on the market share held, the quantities sold
and the level of prices charged by the Community industry,
resulting
effects on the overall
adverse
performance,
situation and the employment
situation of the Community industry.

in substantial

the financial

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the basic
Regulation.

5.1. Procedure for the determination of subsidisation and

injury

The investigation will determine whether the product described
in paragraph 2 originating in India is being subsidised and
whether this subsidisation has caused injury.

(a) Sampling

In view of the apparent large number of importers involved
in this proceeding, the Commission may decide to apply
sampling in accordance with Article 27 of the basic Regu-
lation.

(i) 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
themselves known by
hereby requested to make
the
contacting
providing
company
following
or
companies within the time limit set
in paragraph
6(b)(i) and in the formats indicated in paragraph 7 of
this notice:

the Commission
on
information

and
their

— 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 April 2002 to 31 March 2003,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in euro of imports
into and resales made in the Community market
during the period 1 April 2002 to 31 March
2003 of
the imported product concerned orig-
inating in India,

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Official Journal of the European Union

21.8.2003

— 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 has to reach the Commission within
the time limit set in paragraph 6(a)(ii) of this notice.

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

the selection of

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

the sample of

importers,

(ii) Final selection of the sample

interested parties wishing to submit any relevant
the sample
in paragraph

All
information regarding the selection of
must do so within the time limit set
6(b)(ii) of this notice.

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

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 cooperate within the
framework of the investigation.

sufficient co-operation is not

the
If
Commission may base its findings, in accordance with
Articles 27(4) and 28 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 exporters/producers
in India to any association of exporters/producers, to the
sampled importers, to any association of importers named
in the complaint, and to the authorities of the exporting
country concerned.

In any event, all parties should contact the Commission
forthwith by fax, but not later than the time limit set out
in order to find out
in paragraph 6(a)(i) of this notice,
whether they are listed in the complaint and, if necessary,
request a questionnaire, given that the time limit set in
paragraph 6(a)(ii) of this notice applies to all such 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.

5.2. Procedure for assessment of Community interest

For

this

their

industry,

they prove that

the Community

link between their

In accordance with Article 31 of the basic Regulation and in
the event that the allegations of subsidization and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-subsidy 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 previous sentence may
request a hearing setting the particular reasons why they
in paragraph
should be heard within the time limit set
6(a)(iii) of this notice. It should be noted that any information
to Article 31 will only be taken into
submitted pursuant
account
the time of
submission.

if supported by factual evidence at

activity

limits

time

set

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All interested parties should request a questionnaire 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.

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Official Journal of the European Union

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Companies selected in a sample must submit ques-
tionnaire replies within the time limits 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

(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 Union, given that the Commission intends to
consult parties concerned that have 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
the European
Union.

Journal of

(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 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.

spondence provided by interested parties on a confidential
basis shall be labelled as ‘Limited’ (1) and, in accordance with
Article 29(2) of the basic Regulation, shall be accompanied by
a non-confidential version, which will be
labelled ‘FOR
INSPECTION BY INTERESTED PARTIES’.

Commission address for correspondence:
European Commission
Directorate General for Trade
Directorate B
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 does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, affirmative or negative, may be made in accordance
with Article 28 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. If an interested
party does not cooperate or cooperates only partially, the result
may be less favourable to the party than if it had cooperated.

7. Written submissions, questionnaire replies and corre-

9. Schedule of the investigation

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
including the information
party). All written submissions,
requested in this notice, questionnaire replies and corre-

The investigation will be concluded, according to Article 11(9)
of the basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
Union. According to Article 12(1) of
the basic Regulation,
provisional measures may be imposed no later than nine
this notice in the Official
months from the publication of
Journal of the European Union.

(1) This means that

the document

is for internal use only.

the European Parliament and of
It

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
(OJ L 145,
of
31.5.2001, p. 43).
to
Article 29 of Council Regulation (EC) No 2026/1997 (OJ L 288,
21.10.1997, p. 1.) and Article 12 of the WTO Agreement on
Subsidies and Countervailing Measures.

is a confidential document pursuant

the Council

It