Council Regulation (EC) No 991/2004 of 17 May 2004 amending Regulation (EC) No 1100/2000 imposing definitive anti-dumping duties on imports of silicon carbide originating in the People’s Republic of China, the Russian Federation and the Ukraine and prolonging the undertaking accepted by Commission Decision 94/202/EC
Date: 2004-05-17
Institutions: Council of the European Union
Subjects: China, Russia, Ukraine, anti-dumping duty, import, originating product, semi-metal

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Official Journal of the European Union

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COUNCIL REGULATION (EC) No 991/2004

of 17 May 2004

amending Regulation (EC) No 1100/2000 imposing definitive anti-dumping duties on imports of
silicon carbide originating in the People's Republic of China, the Russian Federation and the Ukraine
and prolonging the undertaking accepted by Commission Decision 94/202/EC

THE COUNCIL OF THE EUROPEAN UNION,

2. Investigation

Having regard to the Treaty
Community,

establishing the European

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 Articles 8, 11(3), 21 and
22(c) thereof,

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

Whereas:

A. PROCEDURE

1. Measures in force

(4)

(5)

(6)

(1)

(2)

(3)

the Council

By Regulation (EC) No 821/94 (2), following an expiry
review,
imposed definitive anti-dumping
duties on imports of silicon carbide, originating in the
People's Republic of China, the Russian Federation and
the Ukraine. At the same time, the Commission accepted
by its Decision 94/202/EC (3) an undertaking offered by
the Government of Russia,
in conjunction with V/O
Stankoimport, Moscow, Russia. By Regulation (EC) No
1100/2000 (4), following the expiry review, the Council
imposed definitive anti-dumping duties on imports into
(‘the product
the Community of
concerned’) originating in the People's Republic of
China (PRC),
the Russian Federation (Russia) and the
Ukraine (Ukraine) and the Commission prolonged the
undertaking accepted by Decision 94/202/EC for a
Russian company ‘V/O Stankoimport’.

silicon carbide

the duty applicable to the net,

The rate of
free-at-
Community-frontier price, before duty, is set at 23,3 %
for imports of
the product concerned originating in
Russia.

the duty applicable to the net,

The rate of
Community-frontier price, before duty,
for imports of
Ukraine.

free-at-
is set at 24 %
the product concerned originating in

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(2) OJ L 94, 13.4.1994, p. 21. Regulation as amended by Regulation

(EC) No 1786/97 (OJ L 254, 17.8.1997, p. 6).

(3) OJ L 94, 13.4.1994, p. 32.
(4) OJ L 125, 26.5.2000, p. 3.

On 20 March 2004 the Commission announced through
the publication of a notice in the Official Journal of the
European Union (5)
interim
review of measures in force (‘measures’) pursuant
to
Article 11(3) and 22(c) of the basic Regulation.

the initiation of a partial

the

review was

initiative of

launched at

The
the
Commission in order to examine whether, as a conse-
quence of the enlargement of the European Union on 1
May 2004 (‘enlargement’) and bearing in mind the aspect
of Community interest,
the
measures in order to avoid a sudden and excessively
negative effect on all
interested parties including users,
distributors and consumers.

there is a need to adapt

3. Parties concerned by the investigation

interested parties known to Commission,

All
including
the Community industry, associations of producers or
users in the Community, exporting producers in the
country concerned, importers and their associations and
the relevant authorities of the countries concerned as well
as interested parties in the ten new Member States which
acceded to the European Union on 1 May 2004 (‘the
EU10’) were advised of the initiation of the investigation
and were given the opportunity to make their views
known in writing,
information and to
to submit
provide supporting evidence within the time limit set
out
interested parties
who so requested and showed that there were reasons
why they should be heard were granted a hearing.

in the notice of

initiation. All

(7)

In this regard, the following interested parties made their
views known:

(a) Community producers Association:

— European Chemical Industry Council (CEFIC)

(b) Exporting producer:

— Zaporozhsky Abrasivny Combinat, Zaporozhye,

Ukraine

(c) Exporter:

— V/O Stankoimport, Russia

(d) Producer:

— JSC Volzhsky Abrasive Works, Russia

(5) OJ C 70, 20.3.2004, p. 15.

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B. PRODUCT UNDER CONSIDERATION

(14)

The product under consideration is the same as in the
original
CN code
2849 20 00.

falling within

investigation,

(8)

(9)

The production process of silicon carbide is such that
output automatically comprises a variety of qualities of
silicon carbide which can be segregated into two main
grades: crystalline and metallurgical. The crystalline grade,
which is further classified under the types black and
green,
is normally used in the manufacturing of
abrasive tools, grinding wheels, high-quality refractory
products, ceramics, plastic materials etc., while the metal-
lurgical grade is normally used in foundry and blast
in the
furnace operations as a silicon carrier. As
previous
to be
both grades have
considered as forming one product for the purpose of
this investigation.

investigations,

C. RESULTS OF THE INVESTIGATION

I. REGARDING SILICON CARBIDE ORIGINATING IN RUSSIA

1. Claims made by interested parties

(10)

subject
the volume of

to the undertaking
The Russian exporter
submitted that
imports to which the
undertaking applies was established on the basis of its
sales to the market of the EU15 and that, therefore, the
undertaking should be revised in order to take due
the EU25.
account of
It claimed that
the market of
such revision was essential
in order to avoid discrimi-
nation in favour of the other exporters of the product
concerned to the EU.

2. Comments received from Member States

(11)

The Member States have made their views known and
the majority of them support adapting the measures in
order to take account of the enlargement.

3. Assessment

(12) An analysis was made of the available data and infor-
mation which confirmed that the volume of imports of
the product concerned from Russia into the EU10 was
significant. Considering that
imports
subject to the undertaking currently in force was estab-
lished on the basis of the imports into the EU15, it does
not take into account the increased volume of imports to
the EU25.

the volume of

The original volume of imports subject to the under-
taking for the EU15 was calculated and established for
each subsequent year in the second half of the current
year as a proportion of the Community consumption on
the basis of the year previous to the current. The amount
of the increase of the volume of imports subject to the
undertaking has been calculated following the same
method of calculation.

(15) Accordingly,

it

considered appropriate

the
that
is
Commission may accept a proposal
for a modified
undertaking reflecting the situation after the enlargement
and on the basis of the method described in recital (11).

II. REGARDING SILICON CARBIDE ORIGINATING IN

UKRAINE

1. Submissions of

interested parties in exporting

countries

The Ukrainian authorities
and Ukrainian exporting
producer claimed that owing to the high level of the
anti-dumping duties and as a consequence of
the
extension of the measures to the EU10, their traditional
trade flows to the EU10 would be significantly disrupted.

In particular, they claimed that the sudden sharp price
increases triggered by the high level of the anti-dumping
duties rendered the product prohibitively expensive for
the production of metallurgical briquettes.

(16)

(17)

2. Comments

received

from the Community

industry

(18)

The Community industry stated that it would not oppose
any proposals for intermediate measures to be taken over
a transitional period which do not adversely affect its
situation.

3. Comments received from Member States

(19)

the Czech Republic, Hungary and
The authorities of
transitional
considered that
Slovak Republic
arrangements should apply to imports of the product
concerned from Ukraine following Enlargement. It was
argued that
significant
the product concerned is of
importance for industrial end-users in the EU10 since it
is not produced in these countries.

special

(20) Accordingly, certain of these authorities took the view
that the anti-dumping duties should be suspended with
regard to imports of the product concerned originating
in Ukraine.

4. Conclusion

4. Assessment

(13)

Considering the above,
to take
account of the enlargement it is appropriate to adapt
the measures
the additional
in order
volume of imports into the EU10 market.

is concluded that

to cater

for

it

(21) On the basis of the available data and information, an
the import
from

analysis was made which confirmed that
volumes of
concerned coming
the product
Ukraine into the EU10 were significant in 2003.

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(22)

Considering that the product concerned is of significant
importance for traditional
industrial end-users in the
EU10 and the relatively high level of anti-dumping
duty,
in the
therefore concluded that
it was
to adapt gradually the measures
Community interest
currently in force in order to avoid a sudden and exces-
sively negative effect on all interested parties.

is

it

5. Conclusion

(23) All these various aspects and interests have been taken
into account and considered as a whole. It emerges from
this that the EU10 importers' and users' interests would
be substantially negatively affected by the sudden appli-
cation of the existing measures if they were not to be
temporarily adapted.

(24) However, by way of contrast, as the interest of

the
its interests
Community industry itself confirmed it,
the
would not be unduly negatively
affected if
they
measures were to be temporarily adapted as
cannot currently fully satisfy the demands of customers
in the EU10.

(25)

(26)

(27)

In such circumstances,
it can reasonably be concluded
that it is not in the Community interest to apply the
the
existing measures without adaptation and that
temporary adaptation of
the existing measures with
regard to imports of the product concerned into the
EU10 would not be such as to significantly undermine
the desired level of trade defence.

To this end, different ways were examined on how to
best protect
the Community industry from injurious
dumping whilst, at the same time, taking into account
the Community
the
economic shock of the anti-dumping duties to traditional
buyers in the EU10 during the period of economic
adjustment following the enlargement.

aspects by

lessening

interest

It was considered that this could be best achieved by
allowing the traditional export volumes from Ukraine
to the EU10 to be imported free of anti-dumping
duties for a transitional period.
In this context, any
exports to the EU10 above these traditional export
volumes would be subject to the normal anti-dumping
duties, as would exports to the EU15.

6. Undertaking

(28) Having assessed the different options on how best to
flows to the EU10 to
allow these traditional export
continue,
it was considered that the most appropriate
means was through the acceptance of voluntary under-
takings from the cooperating party with an element for
quantitative
in accordance with
Article 8(2) of the basic Regulation, undertakings was
exporting
the Commission to
suggested
producer concerned and, as a result, an undertaking
was subsequently offered by one exporting producer of
the product concerned in Ukraine.

ceilings. Therefore,

the

by

(29)

(30)

In this context,
it should be noted that in accordance
with Article 22(c) of the basic Regulation, the special
taken into
circumstances of
account when the terms of the undertaking were estab-
lished. They constitute a special measure in that they
provide a temporary way of adapting existing measures
for the EU25.

enlargement were

the

Import volumes (‘ceilings’) were therefore established for
the exporting producer in Ukraine, using as a basis their
traditional export volumes to EU10 in 2001, 2002 and
2003.
that abnormal
increases in export volumes to the EU10 observed in
the last few months of 2003 and the first months of
2004 were deducted from its traditional volumes used
for determining the ceilings.

should be noted, however,

It

(31) When selling to the EU10 under the terms of

their
undertakings, the exporting producers concerned should
agree to broadly respect their traditional selling patterns
to individual customers in the EU10. The exporting
producers should therefore be aware that any under-
taking offer can only be considered as practicable, and
therefore acceptable if, for sales covered by the under-
takings,
they would broadly maintain such traditional
patterns of trade with their customers in the EU10.

(32)

The exporting producers should also be aware that,
under the terms of the undertakings, if it is found that
these sales patterns change significantly, or
the
undertakings become in any way difficult or impossible
the Commission is entitled to withdraw
to monitor,
acceptance of
the company's undertaking resulting in
definitive anti-dumping duties being imposed in its
place at the level specified in Regulation (EC) No 1100/
2000 or it may adjust the level of the ceiling, or it may
take other remedial action.

that

(33) Accordingly, any undertaking offers respecting the above
conditions may be accepted by the Commission by
Commission Regulation.

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D. AMENDMENT OF REGULATION (EC) No 1100/2000

(34)

In view of the above, it is necessary to provide, in the
event of undertakings being accepted by the Commission
in a subsequent Commission Regulation, for the possi-
bility to exempt imports to the Community made under
the terms of such undertakings from the anti-dumping
duty imposed by Regulation (EC) No 1100/2000 by
amending that Regulation,

‘4.
Imports declared for release into free circulation shall be
exempt from the anti-dumping duties imposed by Article 1,
provided that they are produced by companies from which
undertakings are accepted by the Commission and whose
names are listed in the relevant Commission Regulation, as
from time to time amended, and have been imported in
conformity with the provisions of the same Commission Regu-
lation. These imports shall be exempt from the anti-dumping
duty on condition that:

HAS ADOPTED THIS REGULATION:

Article 1

The Commission may accept a proposal for a modified
1.
undertaking increasing the volume of imports subject to the
undertaking accepted by its Decision 94/202/EC as regards
imports of silicon carbide originating in Russia. Any such
increase shall be calculated by using the same calculation
method that was used when the original ceiling was calculated
for the Community of 15 Member States. The original ceiling
was calculated and established for each subsequent year in the
second half of
the
Community consumption on the basis of the year previous to
the current year.

the current year as a proportion of

The

2.
accordingly.

Commission may modify

the

undertaking

(a)

the goods declared and presented to customs correspond
precisely to the product described in Article 1,

(b) a commercial invoice containing at least the elements listed
in the Annex is presented to Member States' customs autho-
rities upon presentation of the declaration for release into
free circulation; and

(c)

the goods declared and presented to customs correspond
precisely to the description on the commercial invoice.’.

Article 3

The text as set out in the Annex to this Regulation shall be
added to Regulation (EC) No 1100/2000.

Article 2

Article 4

Article 1 of Regulation (EC) No 1100/2000 is hereby amended
by adding the following paragraph:

This Regulation shall enter into force on the day following that
of 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, 17 May 2004.

For the Council
The President

B. COWEN

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ANNEX
‘ANNEX

The following elements shall be indicated on the commercial invoice accompanying the company's sales of silicon carbide
to the Community which are subject to the Undertaking:

1. The heading “COMMERCIAL INVOICE ACCOMPANYING GOODS SUBJECT TO AN UNDERTAKING”.

2. The name of the company mentioned in Article 1 of Commission Regulation [INSERT NUMBER] issuing the

commercial invoice.

3. The commercial invoice number.

4. The date of issue of the commercial invoice.

5. The TARIC additional code under which the goods on the invoice are to be customs cleared at the Community

frontier.

6. The exact description of the goods, including:

— Product Code Number (PCN) used for the purposes of the investigation and the undertaking (e.g. PCN I, PCN 2,

etc.),

— plain language description of the goods corresponding to the PCN concerned (e.g. PCN 1: PCN 2:, etc.),

— company product code number (CPC) (if applicable),

— CN code,

— quantity (to be given in tonnes).

7. The description of the terms of the sale, including:

— price per tonne,

— the applicable payment terms,

— the applicable delivery terms,

— total discounts and rebates.

8. Name of the company acting as an importer in the Community to which the commercial invoice accompanying goods

subject to an undertaking is issued directly by the company.

9. The name of the official of the company that has issued the invoice and the following signed declaration:

“I, the undersigned, certify that the sale for direct export to the European Community of the goods covered by this
invoice is being made within the scope and under the terms of the undertaking offered by [company], and accepted by
the European Commission through Regulation [INSERT NUMBER]. I declare that the information provided in this
invoice is complete and correct.” ’