Proposal for a Council Regulation amending Regulation (EC) No 1338/2002 imposing a definitive countervailing duty on imports of sulphanilic acid originating in India and amending Regulation (EC) No 1339/2002 imposing a definitive anti-dumping duty on imports of sulphanilic acid originating, inter alia, in India.
Date: 2004-02-25
Institutions: European Commission
Subjects: India, anti-dumping duty, chemical product, customs duties, import, import policy, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.2.2004 
COM(2004) 129 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1338/2002 imposing a definitive countervailing duty on 
imports of sulphanilic acid originating in India and amending Regulation (EC) No 
1339/2002 imposing a definitive anti-dumping duty on imports of sulphanilic acid 
originating, inter alia, in India.  

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

5. 

The Council, by Regulations (EC) No 1338/2002 and 1339/2002, imposed definitive 
countervailing  and  anti-dumping  duties  on  imports  of  sulphanilic  acid  originating, 
inter alia, in India (“Regulations”). 

Imports  produced  and  directly  exported  (i.e.  shipped  and  invoiced)  by  the  Indian 
company  Kokan  Synthetics  &  Chemicals  Pvt.  Ltd  (“Kokan”)  to  an  importing 
company  in  the  Community  were  exempted  from  the  countervailing  and  anti-
dumping duties following the acceptance by the Commission of the individual price 
undertaking offered by Kokan (Decision 2002/611/EC). 

Kokan  advised  the  Commission  that  it  wished  to  withdraw  its  undertaking 
voluntarily. 

In view of this, it is necessary to amend the Regulations, namely to repeal Article 1 
(3)  and  Article  2  of  both  Council  Regulation  (EC)  No  1338/2002  and  Council 
Regulation (EC) No 1339/2002, as well as their corresponding annexes. 

In  parallel,  the  Commission  repeals  its  Decision  2002/611//EC  accepting  the 
undertaking offered by Kokan. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1338/2002 imposing a definitive countervailing duty on 
imports of sulphanilic acid originating in India and amending Regulation (EC) No 
1339/2002 imposing a definitive anti-dumping duty on imports of sulphanilic acid 
originating, inter alia, in India.  

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 8 and 9 thereof, 

Having  regard  to  Council  Regulation  (EC)  No  2026/97  of  6  October  1997  on  protection 
against subsidized imports from countries not members of the European Community2, and in 
particular Article 13 and 15 thereof, 

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

Whereas: 

A. 

PREVIOUS PROCEDURE 

(1) 

In  July  2002,  the  Council,  by  Regulation  (EC)  No  1338/20023,  imposed  definitive 
countervailing duties on imports of sulphanilic acid originating in India. On the same 
day,  the  Council,  by  Regulation  (EC)  No  1339/20024,  imposed  definitive  anti-
dumping duties on imports of sulphanilic acid originating in the People’s Republic of 
China and India. 

(2)  Within the framework of this proceedings, the Commission, by Decision 2002/611/EC 
of 12 July 20025, accepted a price undertaking offered by the Indian company Kokan 
Synthetics & Chemicals Pvt. Ltd. (the “Company”). 

(3) 

Imports  of  sulphanilic  acid  originating  in  India,  exported  to  the  Community  by  the 
Company  (TARIC  additional  code  A  398),  were  exempted  from  the  countervailing 

1 
2 
3 
4 

5 

OJ L 56, 6.3.1996, p. 1., as last amended by Regulation (EC) No 1972/2002, OJ L 305, 7.11.2002, p. 1. 
OJ L 288, 21.10.1997, p. 1, as last amended by Regulation (EC) 1973/2002, OJ L 305, 7.11.2002, p. 4. 
OJ L 196, 25.7.2002, p. 1. 
OJ  L  196,  25.7.2002,  p.  11,  as  last  amended  by  Regulation  (EC)  No  236/2004,  OJ  L  40,  12.2.2004, 
p.17. 
OJ L 196, 25.7.2002, p. 36. 

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and anti-dumping duties by Article 2 of Council Regulations (EC) No 1338/2002 and 
(EC) No 1339/2002. 

B. 

VOLUNTARY WITHDRAWAL OF AN UNDERTAKING 

(4) 

Kokan Synthetics & Chemicals Pvt. Ltd. advised the Commission in December 2003 
that it wished to withdraw its undertaking voluntarily.  

(5) 

Accordingly, Commission Decision 2002/611/EC has been repealed.  

C. 

DEFINITIVE COUNTERVAILING AND ANTI-DUMPING DUTIES 

(6) 

(7) 

The investigation which led to the undertaking offered by the Company was concluded 
by (i) a final determination as to subsidization and injury by Council Regulation (EC) 
No  1338/2002;  and  (ii)  a  final  determination  as  to  dumping  and  injury  by  Council 
Regulation (EC) No 1339/2002.  

Pursuant to Article 13(9) of Council Regulation (EC) No 2026/97 and Article 8(9) of 
Council Regulation (EC) No 384/96, the rate of the countervailing and anti-dumping 
duty to be imposed on imports produced and exported by the Company must be based 
on  the  facts  established  within  the  context  of  the  investigations  which  led  to  the 
undertaking.  In  this  regard,  in  view  of  recital  (67)  of  Council  Regulation  (EC)  No 
1338/2002  and  recital  (46)  of  Council  Regulation  (EC)  1339/2002,  it  is  considered 
appropriate  that  the  definitive  countervailing  duty  rate  be  set  at  a  level  of  7,1  %  ad 
valorem and the definitive anti-dumping duty rate at the level of 18,3 % ad valorem. 

D. 

AMENDMENT OF REGULATIONS (EC) No 1338/2002 and 1339/2002 

(8) 

In  view  of  the  above,  Article  1(3)  and  Article  2  of  Council  Regulation  (EC)  No 
1338/2002,  as  well  as  Article  1(3)  and  Article  2  of  Council  Regulation  (EC)  No 
1339/2002 and their corresponding annexes should be repealed accordingly.  

HAS ADOPTED THIS REGULATION: 

Article  1(3)  and  Article  2  of  Council  Regulation  (EC)  No  1338/2002  and  its  corresponding 
annex are hereby repealed.  

Article 1 

Article  1(3)  and  Article  2  of  Council  Regulation  (EC)  No  1339/2002  and  its  corresponding 
annex are hereby repealed. 

Article 2 

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

Article 3 

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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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