Commission Regulation (EC) No 1001/2004 of 18 May 2004 accepting undertakings offered in connection with the anti-dumping proceeding concerning imports of ammonium nitrate originating in the Russian Federation and Ukraine and making imports of ammonium nitrate originating in the Russian Federation or Ukraine subject to registration
Date: 2004-05-18
Institutions: European Commission
Subjects: Russia, Ukraine, anti-dumping legislation, customs regulations, fertiliser, import, originating product

20.5.2004

EN

Official Journal of the European Union

L 183/13

COMMISSION REGULATION (EC) No 1001/2004

of 18 May 2004

accepting undertakings offered in connection with the anti-dumping proceeding concerning imports
of ammonium nitrate originating in the Russian Federation and Ukraine and making imports of
ammonium nitrate originating in the Russian Federation or Ukraine subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

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), as last
amended by Regulation (EC) No 461/2004 (2) (the ‘basic Regu-
lation’), and in particular Articles 8, 11(3), 21 and 22(c) thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. PROCEDURE

1. Measures in force

Following an expiry and an interim review, by Regulation
(EC) No 658/2002 (3), the Council imposed a definitive
anti-dumping duty on imports of ammonium nitrate (the
‘product concerned’) originating in the Russian Federation
(‘Russia’). By Regulation (EC) No 132/2001 (4),
the
Council
imposed a definitive anti-dumping duty on
imports of ammonium nitrate originating in Ukraine.
By Regulation (EC) No 993/2004 (5)
the Council
amended Regulations (EC) No 658/2002 and (EC) No
132/2001.

The measures are specific duty of 47,07 EUR/tonne in the
case of Russia and 33,25 EUR/tonne in the case of
Ukraine.

2. Investigation

On 20 March 2004 the Commission announced through
the publication of a notice in the Official Journal of the
European Union (6)
interim
(‘the measures’)
review of
pursuant to Articles 11(3) and 22(c) of the basic Regu-
lation.

the initiation of a partial
in force

the measures

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 77, 13.3.2004, p. 12.
(3) OJ L 102, 18.4.2002, p. 1.
(4) OJ L 23, 25.1.2001, p. 1.
(5) OJ L 182, 19.5.2004, p. 28.
(6) OJ C 70, 20.3.2004, p. 15

(5)

(6)

(7)

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, there is a need to adapt
the measures in order to avoid a sudden and excessively
interested parties including users,
negative effect on all
distributors and consumers.

in

countries

All interested parties, including the Community industry,
associations of producers or users in the Community,
exporters/producers
concerned,
the
importers and their associations and the relevant autho-
rities of the countries concerned as well as interested
parties in the 10 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, to submit information and to provide supporting
evidence within the time-limit set out in the notice of
interested parties who so requested and
initiation. All
there were reasons why they should be
showed that
heard were granted a hearing.

3. Result of the investigation

As set out in Council Regulation (EC) No 993/2004, the
investigation concluded that
is in the Community
interest to adapt the existing measures, provided that
such adaptation does not significantly undermine the
desired level of trade defence.

it

4. Undertakings

the Commission,

In accordance with the conclusions of Regulation (EC)
No 993/2004,
in conformity with
Article 8 (2) of the basic Regulation, suggested under-
takings to the companies concerned. As a result, under-
takings were subsequently proposed by, (i) one exporting
producer of the product concerned in Ukraine (OJSC
‘Azot’), (ii) an exporting producer in Russia (CJSC MCC
Eurochem in respect of goods produced at its production
facilities of JSC Nak Azot, Russia) jointly with its related
company (Cumberland Sound Ltd, British Virgin Islands),
(iii)
two related exporting producers in Russia (OAO
Kirovo — Chepetsky Chimkombinat and JSC ‘Azot’),
separately and (iv)
two related exporting producers
jointly (Joint Stock Company ‘Acron’, Russia and Joint
Stock Company ‘Dorogobuzh’, Russia).

L 183/14

EN

Official Journal of the European Union

20.5.2004

(8)

set out

related parties

From the submissions of OAO ‘Kirovo — Chepetsky
Chimkombinat’ and publicly available information on
the Internet,
it is known to the Commission that JSC
‘Azot’ and OAO ‘Kirovo — Chepetsky Chimkombinat’
are linked via Agrochemical Corporation ‘Azot’, which
the capital of
owns considerably more than 5 % of
each of the companies. Therefore,
in accordance with
an Article 2 of the basic Regulation and the definition
in the Article 143 of
of
Commission Regulation (EEC) 2454/93 (1),
last
as
amended by Regulation (EC) No 2286/2003 (2),
the
Commission considers JSC ‘Azot’ and OAO ‘Kirovo —
Chepetsky Chimkombinat’ as related parties. It should be
noted that the abnormal increases of the export volumes
of one of these two exporting producers, OAO ‘Kirovo
— Chepetsky Chimkombinat’,
to the EU10 observed
during the first months of 2004 were higher than the
combined traditional export volumes to the EU10 of
both JSC ‘Azot’ and OAO ‘Kirovo — Chepetsky Chim-
kombinat’. Accordingly, the undertaking offers submitted
by these two exporting producers are rejected because
the undertaking ceiling for the two exporting producers
taken together, calculated as traditional export volumes
to the EU10 in 2001 and 2002 minus the abnormal
increases in export volumes to the EU10 observed in
the first months of 2004, is negative.

(9)

It should be noted that, in application of Article 22(c) of
the basic Regulation, any undertakings accepted by this
Regulation are considered as special measures since,
in
accordance with the conclusions of Regulation (EC) No
993/2004, they are not directly equivalent to an anti-
dumping duty.

(10) Nevertheless,

the undertakings oblige

in conformity with Regulation (EC) No
993/2004,
each individual
producing exporter to respect minimum import prices
in order
within the framework of import ceilings and,
that the undertakings can be monitored, the exporting
producers concerned have also agreed to broadly respect
their traditional selling patterns to individual customers
in the EU10. The exporting producers are also aware that
if it is found that these sales patterns change significantly,
or that the undertakings become in any way difficult or
impossible to monitor, the Commission is entitled to
the company’s undertaking
withdraw acceptance of
being
anti-dumping
definitive
in
resulting
imposed in its place, or it may adjust the level of the
ceiling, or it may take other remedial action.

duties

(11)

(12)

It is also a condition of the undertakings that if they are
breached in any way, the Commission will be entitled to
withdraw acceptance thereof resulting in definitive anti-
dumping duties being imposed in their place.

The companies will also provide the Commission with
regular and detailed information concerning their exports
to the Community, meaning that the undertakings can be
monitored effectively by the Commission.

(14)

(15)

(16)

(17)

relevant

request for release for free circulation pursuant to an
undertaking is presented to the
customs
authority, exemption from the duty will be conditional
upon the presentation of an invoice containing at least
the items of information listed in the Annex to Council
Regulation (EC) No 993/2004. This level of information
to
is also necessary to enable customs authorities
ascertain with sufficient precision that
the shipment
corresponds to the commercial documents. Where no
is presented, or when it does not
such invoice
correspond to the product presented to customs,
the
instead be payable.
appropriate anti-dumping duty will

the above,

the offers of undertakings
In view of all
submitted by OJSC ‘Azot’, CJSC MCC Eurochem in
respect of goods produced at its production facilities of
JSC Nak Azot, Russia, and Joint Stock Company ‘Acron’
together with Joint Stock Company ‘Dorogobuzh’ are
considered acceptable.

the

their

undertakings,

The acceptance of the undertakings is limited to an initial
period of six months without prejudice to the normal
the measures. However, six months after
duration of
acceptance
continued
of
to an appraisal by the
acceptance will be subject
Commission to verify whether
the exceptional and
negative conditions for end users in the EU10 which
led to the acceptance of the undertakings still exist. In
view of the short term character of the undertakings and
the exceptional circumstances under which they are
accepted the Commission services may, after consultation
of the Advisory Committee, adapt some of the terms of
the undertakings, if after a reasonable period of time it is
established that the undertakings are not achieving their
intended results in terms of allowing traditional export
flows to the EU10 to continue. However, the adapted
terms of the undertakings must continue to ensure a
significant contribution to the removal of injury.

B. REGISTRATION OF IMPORTS

In view of the unusual circumstances of this case and the
inherent risk of breaches of undertakings caused by the
price differences between the EU10 and the EU15 and
their short term character, it is considered that sufficient
grounds exist to make certain imports of the product
concerned subject
a maximum
period of nine months in accordance with Article 14(5)
of the basic Regulation.

to registration for

to

steps

register

Customs authorities are therefore directed to take the
appropriate
the
the product concerned originating in
Community of
Ukraine and Russia exported by the companies which
have offered acceptable undertakings and for which
benefit from the exemption to the anti-dumping duties
is sought.

imports

into

(13)

In order that the Commission can monitor effectively the
companies’ compliance with the undertakings, when the

(18)

(1) OJ L 253, 11.10.1993, p. 1.
(2) OJ L 343, 31.12.2003, p. 1.

In the event of a finding of a breach of the undertakings,
duties may be levied retroactively on goods entered into
free circulation in the Community from the date of the
breach of the undertaking,

20.5.2004

EN

Official Journal of the European Union

L 183/15

HAS ADOPTED THIS REGULATION:

Article 1

The undertakings offered by the exporting producers mentioned below,
in connection with the anti-
dumping proceeding concerning imports of ammonium nitrate originating in the Ukraine and the
Russian Federation are hereby accepted.

Country

Company

Taric Additional Code

Ukraine

Russian Federation

Russian Federation

Produced and exported by OJSC ‘Azot’, Cherkassy,
Ukraine to its
in the
Community acting as an importer

independent customer

first

Produced by OJSC MCC Eurochem, Moscow, Russia at
JSC Nak Azot, Novo-
its production facilities of
moskovsk, Russia and sold by Cumberland Sound
Ltd, Tortola, British Virgin Islands to the first inde-
pendent customer in the Community acting as an
importer

Produced and exported by Joint Stock Company
‘Acron’, Veliky Novgorod, Russia or
Joint Stock
Verkhnedneprovsky,
Company
Smolensk Region, Russia to the first
independent
customer in the Community acting as an importer

‘Dorogobuzh’

Article 2

A521

A522

A532

The customs authorities are hereby directed, pursuant to Article 14(5) of Regulation (EC) No 384/96 to take
the appropriate steps to register the imports into the Community of ammonium nitrate originating in the
Ukraine and the Russian Federation falling within CN codes 3102 30 90 and 3102 40 90 produced and
sold or produced and exported by the companies listed in Article 1 for which an exemption to the anti-
dumping duties imposed by Council Regulation (EC) No 993/2004 is sought.

Article 3

This Regulation shall enter into force on the day after its publication in the Official Journal of the European
Union and shall remain in force for a period of six months.

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

Done at Brussels, 18 May 2004.

For the Commission

Pascal LAMY
Member of the Commission