Commission Regulation (EC) No 395/2004 of 2 March 2004 initiating an investigation concerning the possible circumvention of anti-dumping measures imposed by Council Regulation (EC) No 964/2003 on imports of certain tube or pipe fittings, of iron or steel, originating, inter alia, in the People's Republic of China by imports of certain tube or pipe fittings, of iron or steel, consigned from Sri Lanka, whether declared as originating in Sri Lanka or not and making such imports subject to registration
Date: 2004-03-02
Institutions: European Commission
Subjects: China, Sri Lanka, anti-dumping measure, import, originating product, piping

3.3.2004

EN

Official Journal of the European Union

L 65/7

COMMISSION REGULATION (EC) No 395/2004

of 2 March 2004

initiating an investigation concerning the possible circumvention of anti-dumping measures
imposed by Council Regulation (EC) No 964/2003 on imports of certain tube or pipe fittings, of
iron or steel, originating, inter alia, in the People's Republic of China by imports of certain tube or
pipe fittings, of iron or steel, consigned from Sri Lanka, whether declared as originating in Sri
Lanka or not and making such imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

C. EXISTING MEASURES

Having regard to the Treaty establishing the European
Community,

(5)

The measures currently in force and possibly being
circumvented are anti-dumping measures imposed by
Council Regulation (EC) No 964/2003 (2).

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 Community (1)
(the
‘basic Regulation’), and in particular Article 13(3) and Article
14(3) and (5) thereof,

After having consulted the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. REQUEST

The Commission has received a request pursuant
to
Article 13(3) of Regulation (EC) No 384/96 to investi-
the anti-dumping
gate the possible circumvention of
measures imposed on imports of certain tube or pipe
fittings, of iron or steel, originating,
in the
People's Republic of China.

inter alia,

The request was lodged on 20 January 2004 by the
Defence Committee of the Steel Butt-Welding Fittings
Industry of the European Union on behalf of four Com-
munity producers.

B. PRODUCT

The product concerned by the possible circumvention is
tube or pipe fittings (other than cast fittings, flanges and
threaded fittings), of iron or steel (not including stainless
steel), with a greatest external diameter not exceeding
609,6 mm, of a kind used for butt-welding or other
CN codes
purposes,
declared
7307 93 11 94),
ex 7307 93 11
7307 93 19 94),
ex 7307 93 19
and
ex 7307 99 30 (TARIC code 7307 99 30 94)
(the
ex 7307 99 90 (TARIC code 7307 99 90 94)
‘product concerned’). These codes are given for informa-
tion only.

(TARIC
(TARIC

code
code

normally

under

(4)

The product under investigation is certain tube or pipe
fittings, of iron or steel, consigned from Sri Lanka (the
‘product under investigation’) normally declared under
the same codes as the product concerned.

D. GROUNDS

(6)

The request contains sufficient prima facie evidence that
the anti-dumping measures on imports of certain tube
iron or steel, originating in the
or pipe fittings, of
People's Republic of China are being circumvented by
means of
transhipment and incorrect declaration of
origin via Sri Lanka of certain tube or pipe fittings, of
iron or steel.

(7)

The evidence submitted is as follows:

The request shows that a significant change in the
pattern of
trade involving exports from the People's
Republic of China and Sri Lanka to the Community has
taken place following the imposition of measures on the
product concerned, and that there is insufficient due
cause or justification other than the imposition of the
duty for such a change.

This change in the pattern of trade appears to stem from
the transhipment and incorrect declaration of origin of
certain tube or pipe fittings, of iron or steel, originating
in the People's Republic of China via Sri Lanka.

Furthermore,
the request contains sufficient evidence
that the remedial effects of the existing anti-dumping
measures on the product concerned are being under-
mined in terms of quantities. Significant volumes of
imports of certain tube or pipe fittings, of iron or steel,
from Sri Lanka appear to have replaced imports of the
product concerned originating in the People's Republic
of China.

Finally, the request contains sufficient evidence that the
prices of certain tube or pipe fittings, of iron or steel,
are dumped in relation to the normal value previously
established for the product concerned.

Should circumvention practices via Sri Lanka covered by
Article 13 of the basic Regulation other than tranship-
ment and incorrect declaration of origin be identified in
the course of the investigation, the investigation may
cover these practices also.

(1) OJ L 56, 6.3.1996, p. 1, as last amended by Regulation (EC) No

(2) OJ L 139, 6.6.2003, p. 1, as last amended by Regulation (EC) No

1972/2002 (OJ L 305, 7.11.2002, p. 1).

2212/2003 (OJ L 332, 19.12.2003, p. 3).

L 65/8

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Official Journal of the European Union

3.3.2004

(8)

(9)

E. PROCEDURE

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant
the basic
Regulation and to make imports of certain tube or pipe
fittings, of
iron or steel, consigned from Sri Lanka,
whether declared as originating in Sri Lanka or not,
subject to registration, in accordance with Article 14(5)
of the basic Regulation.

to Article 13 of

(a) Questionnaires

In order to obtain the information it deems necessary
for its investigation, the Commission will send question-
naires to the exporters/producers and to the associations
of exporters/producers in Sri Lanka, the exporters/produ-
cers and to the associations of exporters/producers in
the People's Republic of China, to the importers and to
the associations of importers in the Community which
cooperated in the investigation that lead to the existing
measures and to the authorities of the People's Republic
of China and Sri Lanka.
Information, as appropriate,
may also be sought from the Community industry.

(10)

In any event all
interested parties should contact the
Commission forthwith, but not later than the time limit
if necessary,
set in Article 3 of this Regulation and,
request a questionnaire within the time limit set
in
Article 3(1) of this Regulation, given that the time limit
set in Article 3(2) of this Regulation applies to all inter-
ested parties.

(11)

The authorities of the People's Republic of China and Sri
Lanka will be notified of the initiation of the investiga-
tion.

cers concerned to request an exemption from the regis-
tration of imports of their exported products or from
measures on these imports.

(15)

Producers wishing to obtain an exemption should apply
for it and submit any requested questionnaire reply
within the appropriate time limits, in order for it to be
established that they are not circumventing the anti-
dumping duties within the meaning of Article 13(1) of
the basic Regulation. Importers could still benefit from
exemption from registration or measures to the extent
that their imports are from producers which are granted
such an exemption, and in accordance with Article
13(4).

F. REGISTRATION

(16)

to Article 14(5) of

the basic Regulation,
Pursuant
imports of the product under investigation should be
made subject to registration in order to ensure that,
should the investigation result in findings of circumven-
tion, anti-dumping duties of an appropriate amount can
be levied retroactively from the date of the registration
of such imports consigned from Sri Lanka.

G. TIME LIMITS

(17)

In the interest of sound administration,
should be stated within which:

time limits

— interested parties may make themselves known to
the Commission, present their views in writing and
submit questionnaire replies or any other informa-
tion to be taken into account during the investiga-
tion,

(b) Collection of information and holding of hearings

— interested parties may make a written request to be

heard by the Commission.

(12) All interested parties are hereby invited to make their
views known in writing and to provide supporting
evidence. Furthermore, the Commission may hear inter-
ested parties, provided that
in
writing and show that there are particular reasons why
they should be heard.

they make a request

(18) 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 time
limits mentioned in Article 3 of this Regulation.

(c) Exemption of registration of imports or measures

(13)

(14)

In accordance with Article 13(4) of the basic Regulation,
imports of
the product under investigation may be
exempted from registration or measures if the importa-
tion does not constitute circumvention.

The possible circumvention takes place outside the Com-
munity. Article 13 of the basic Regulation is aiming at
countering circumvention practices without affecting
operators which can prove that they are not involved in
such practices, but it does not contain a specific provi-
sion providing for the treatment of producers in the
country concerned which could establish that they are
it
not involved in circumvention practices. Therefore,
appears necessary to introduce a possibility for produ-

H. NON-COOPERATION

(19)

In cases in which any interested party refuses access to
or otherwise does not provide necessary information
within the time limits, or significantly impedes the inves-
tigation, findings, affirmative or negative, may be made
in accordance with Article 18 of the basic Regulation,
on the basis of the facts available.

(20) Where it is found that any interested party has supplied
false or misleading information, the information shall be
disregarded and use may be made, in accordance with
Article 18 of the basic Regulation, of facts available. If
an interested party does not cooperate or cooperates
only partially, and findings are therefore based on facts
available in accordance with article 18, the result may be
less favourable than if it had cooperated,

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Official Journal of the European Union

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HAS ADOPTED THIS REGULATION:

Article 1

flanges and threaded fittings), of iron or steel

An investigation is hereby initiated pursuant to Article 13(3) of
Regulation (EC) No 384/96, in order to determine if imports
into the Community of tube or pipe fittings (other than cast
fittings,
(not
including stainless steel), with a greatest external diameter not
exceeding 609,6 mm, of a kind used for butt-welding or other
purposes, falling within CN codes ex 7307 93 11 (TARIC code
7307 93 11 94), ex 7307 93 19 (TARIC code 7307 93 19 94),
ex 7307 99 30
and
ex 7307 99 90 (TARIC code 7307 99 90 94), consigned from
Sri Lanka, whether originating in Sri Lanka or not, are circum-
venting the measures imposed by Council Regulation (EC) No
964/2003.

7307 99 30 94)

(TARIC

code

Article 2

to
The Customs authorities are hereby directed, pursuant
Article 13(3) and Article 14(5) of Regulation (EC) No 384/96,
to take the appropriate steps to register the imports into the
Community identified in Article 1 of this Regulation.

Registration shall expire nine months following the date of
entry into force of this Regulation.

The Commission, by Regulation, may direct Customs authori-
ties to cease registration in respect of imports into the Com-
munity of products manufactured by producers having applied
for an exemption of registration and having been found not to
be circumventing the anti-dumping duties.

Article 3

1.
Questionnaires should be requested from the Commission
within 15 days from publication of this Regulation in the Offi-
cial Journal of the European Union.

Interested parties, if their representations are to be taken
2.
into account during the investigation, must make themselves
known by contacting the Commission, present their views in
writing and submit questionnaire replies or any other informa-
tion within 40 days from the date of the publication of this
Regulation in the Official Journal of the European Union, unless
otherwise specified.

Interested parties may also apply to be heard by the

3.
Commission within the same 40 day time limit.

4.
Any information relating to the matter, any request for a
hearing or for a questionnaire as well as any request for author-
isation of certificates of non-circumvention must be made in
writing (not in electronic format, unless otherwise specified)
and must indicate the name, address, e-mail address, telephone,
fax and/or telex numbers of the interested party. All written
submissions, including the information requested in this Regu-
lation, questionnaire replies and correspondence provided by
interested parties on a confidential basis shall be labelled as
‘Limited’ (1) and, in accordance with Article 19(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘For inspection by interested
parties’.

shall be

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

Article 4

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

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

Done at Brussels, 2 March 2004.

For the Commission

Pascal LAMY

Member of the Commission

(1) This means that

the document

is for internal use only.

the European Parliament and of

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of
(OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article
19 of Council Regulation (EC) No 384/96 and Article 6 of the
WTO Agreement on Implementation of Article VI of the GATT
1994 (Anti-dumping Agreement).

the Council

It