Notice of initiation of an expiry and an interim review of the countervailing measures applicable to imports of certain broad spectrum antibiotics originating in India
Date: 2003-10-08
Institutions: European Commission
Subjects: India, antibiotic, import, import policy, originating product

8.10.2003

EN

Official Journal of the European Union

C 241/7

Notice of initiation of an expiry and an interim review of the countervailing measures applicable
to imports of certain broad spectrum antibiotics originating in India

(2003/C 241/05)

Following the publication of a notice of impending expiry (1) of
the anti-subsidy measures in force on imports of certain broad
spectrum antibiotics originating in India ('country concerned'),
the Commission has received a request for reviews pursuant to
Articles 18 and 19 of Council Regulation (EC) No 2026/97 (2),
as amended by Council Regulation (EC) No 1973/2002 (3) (‘the
basic Regulation’).

duty entitlement passbook scheme; an income tax exemption;
the export promotion capital goods scheme;
the duty free
replenishment certificate; the package scheme of incentives of
the Government of Maharashtra and export credits. The total
subsidy is estimated to be significant.

1. Request for review

The request was lodged on 8 July 2003 by Sandoz GmbH and
Sandoz Industrial Products S.A. (‘the applicants’) representing a
major proportion, in this case more than 40 %, of the total
Community production of certain broad spectrum antibiotics.

2. Product

The product under review is amoxicillin trihydrate, ampicillin
trihydrate and cefalexin not put up in measured doses or in
forms or packings for retail sale originating in India (‘the
product concerned’), normally declared within CN codes ex
2941 10 10,
ex 2941 10 20
(Taric code 2941 10 20 10) and ex 2941 90 00 (Taric code
2941 90 00 30). These CN/TARIC codes are given only for
information.

code 2941 10 10 10),

(Taric

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 broad spectrum antibiotics. 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.

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

is also alleged that

the volumes and the prices of

It
the
imported product concerned have continued, among other
to have a negative impact on the level of
consequences,
resulting in
prices charged by the Community industry,
substantial adverse effects on the financial situation of
the
Community industry.

3. Existing measures

The measures currently in force are a definitive countervailing
duty imposed by Council Regulation (EC) No 2164/98 (4).

4.2. Grounds for the interim review

4. Grounds for the reviews

4.1. Grounds for the expiry review

The applicants have provided evidence that the expiry of the
measures would lead to a continuation of subsidisation and
injury.

is alleged that

the exporters/producers of

It
the product
concerned have benefited and will continue to benefit from a
number of subsidies granted by the Government of
India.
These alleged subsidies consist of schemes of benefits to
industries located in export processing zones/export oriented
units; the advance licenses; advance release orders scheme; the

(1) OJ C 8, 14.1.2003, p. 2.
(2) OJ L 288, 21.10.1997, p. 1.
(3) OJ L 305, 7.11.2002, p. 4.
(4) OJ L 273, 9.10.1998, p. 1.

form is no longer sufficient

The request pursuant to Article 19 is based on the grounds
that the level of the measures is alleged to be inappropriate to
counteract the subsidization which is causing the injury. The
request contained sufficient evidence that a continuation of the
to
measures in their present
the countervailable subsidies which are causing
counteract
injury.
it appears that various changes have
taken place in the subsidy schemes since the original investi-
gation. Some schemes have disappeared, others have been
scaled back or replaced and new allegedly countervailable
subsidy schemes for the benefit of the exporters appear to
exist. Therefore, the initiation of an interim review according
to article 19(2) of the basic Regulation is warranted.

In addition,

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 Articles 18 and 19 of
the basic Regulation.

C 241/8

EN

Official Journal of the European Union

8.10.2003

5.1. Procedure for the determination of likelihood of subsi-

dization and injury

— any other relevant information that would assist
the Commission in the selection of the sample,

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of subsidization and injury and whether there is
a need for the continuation, removal or amendment 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 27 of the basic Regulation.

(i)

Sampling for investigation of subsidisation in India

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):

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

and/or telex numbers and contact person,

— the turnover in local currency and the volume in
kg of the product concerned sold for export to the
Community and exports to other countries (sepa-
rately) during the period 1 April 2002 to 31 March
2003,

— the turnover in local currency and the sales volume
in kg for the product concerned on the domestic
market during the period 1 April 2002 to 31
March 2003,

— 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

— an indication on whether

the

company

is

recognised as an export oriented unit,

— an indication on whether the company is located in

an export processing zone.

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.

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 cooperate within the
framework of the investigation.

sufficient

forthcoming,

cooperation is not

the
If
Commission may base its
in accordance
with Articles 27(4) and 28 of the basic Regulation,
on the facts available. A finding based on facts
available may be less advantageous
to the party
concerned, as explained in paragraph 8 of this note.

findings,

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

(b) Questionnaires

— the precise activities of the company with regard to
the production of the product concerned and the
the
volume in kg of
production capacity
in
and
production capacity during the period 1 April
2002 to 31 March 2003,

the product concerned,
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,

(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).

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 association of exporters/
producers
producers,
to any association of
importers,
importers named in the request or which cooperated in
the investigation leading to the measures subject to the
the exporting
present review, and to the authorities of
country concerned.

in India,
to the

interested parties should contact

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

time

the

8.10.2003

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Official Journal of the European Union

C 241/9

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.

5.2. Procedure for the assessment of Community interest

repeal

to maintain, amend or

In accordance with Article 31 of the basic Regulation and in
the event that the continuation or recurrence of subsidization
and injury is confirmed, a determination will be made as to
whether
the anti-subsidy
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
concerned, may, within the general
in
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 31 will only be taken into
submitted pursuant
account
the time of
submission.

if supported by factual evidence at

limits

time

set

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

interested parties who did not cooperate in the
All
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 Union.

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
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

(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.

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,
the interested
telephone and fax, and/or telex numbers of
party). All written submissions,
including the information
requested in this notice, questionnaire replies and corre-
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’.

(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 2026/97 (OJ L 288,
21.10.97, p. 1) and Article 12 of
the WTO Agreement on
Subsidies and Countervailing Measures.

is a confidential document pursuant

the Council

It

C 241/10

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Official Journal of the European Union

8.10.2003

Commission address for correspondence:
European Commission
Directorate General for Trade
Directorate B
KJ-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877

8. Noncooperation

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 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 favorable to the party than if it
had cooperated.

Conclusion of the Memorandum of Understanding with Bulgaria on its participation in the Fiscalis
2003-2007 Community programme

(2003/C 241/06)

On 18 April 2003 the Memorandum of Understanding between the European Commission, on behalf of
the European Community, and the Government of Bulgaria on its participation in the Fiscalis 2003-2007
Community programme was signed.

The full text in English of the Memorandum of Understanding can be found on the following web page:

http://europa.eu.int/comm/enlargement/pas/ocp/index.htm

Conclusion of the Memorandum of Understanding with the Czech Republic on its participation in
the Fiscalis 2003-2007 Community programme

(2003/C 241/07)

On 24 April 2003 the Memorandum of Understanding between the European Commission, on behalf of
the European Community, and the Government of the Czech Republic on its participation in the Fiscalis
2003-2007 Community programme was signed.

The full text in English of the Memorandum of Understanding can be found on the following web page:

http://europa.eu.int/comm/enlargement/pas/ocp/index.htm

Conclusion of the Memorandum of Understanding with Estonia on its participation in the Fiscalis
2003-2007 Community programme

(2003/C 241/08)

On 29 May 2003 the Memorandum of Understanding between the European Commission, on behalf of
the European Community, and the Government of Estonia on its participation in the Fiscalis 2003-2007
Community programme was signed.

The full text in English of the Memorandum of Understanding can be found on the following web page:

http://europa.eu.int/comm/enlargement/pas/ocp/index.htm