Notice of initiation of an expiry review of the antidumping measures applicable to imports of magnesium oxide originating in the People's Republic of China
Date: 2004-05-18
Institutions: European Commission
Subjects: China, anti-dumping legislation, anti-dumping measure, chemical compound, originating product

C 138/2

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Official Journal of the European Union

18.5.2004

Notice of initiation of an expiry review of the antidumping measures applicable to imports of
magnesium oxide originating in the People's Republic of China

(2004/C 138/02)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of magnesium
oxide originating in the People's Republic of China, (‘country
concerned’), the Commission has received a request for review
pursuant
to Article 11(2) of Council Regulation (EC) No
384/96 (2) (‘the basic Regulation’).

1. Request for review

The request was lodged on 9 March 2004 by Eurométaux (‘the
applicant’) on behalf of producers representing a major propor-
in this case more than 25 %, of the total Community
tion,
production of magnesium oxide.

2. Product

The product under review is magnesium oxide originating in
the People's Republic of China (‘the product concerned’),
currently classifiable within CN code ex 2519 90 90 (Taric
code 2519 90 90*10). This CN code is given only for informa-
tion.

should measures be allowed to lapse, the current import level
of the product concerned is likely to increase due to the exis-
tence of unused capacity and the large reserves in the country
In addition, the applicant alleges that the removal
concerned.
of injury is mainly due to the existence of measures and that
any recurrence of substantial imports at dumped prices from
the country concerned would likely lead to a recurrence of
injury of the Community industry should measures be allowed
to lapse.

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review, the Commission hereby initiates a review in
accordance with Article 11(2) of the basic Regulation.

5.1. Procedure

for

the determination of

likelihood of

dumping and injury

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 1334/1999 (3).

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury.

4. Grounds for the review

The request
the expiry of
is based on the grounds that
measures would be likely to result in a continuation or recur-
rence of dumping and injury to the Community industry.

In view of the provisions of Article 2(7) of the basic Regulation,
the applicant established normal value for the People's Republic
of China on the basis of the price in an appropriate market
economy country, which is mentioned in paragraph 5.1(d) of
this notice. The allegation of continuation of dumping is based
on a comparison of normal value, as set out in the preceding
sentence, with the export prices of
the product concerned
when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

With regard to the recurrence of dumping it is also alleged that
the exports to other third countries, i.e., Hungary, Japan and
the USA, are made at dumped prices.

The applicant further alleges the likelihood of further injurious
dumping. In this respect the applicant presents evidence that,

(1) OJ C 230, 26.9.2003, p. 2.
(2) OJ L 56, 6.3.96, p.1, as last amended by Council Regulation (EC)

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

(3) OJ L 159, 25.6.1999, p.1, as last amended by Council Regulation

(EC) No 985/2003 (OJ L 143, 11.6.2003, p. 1.).

(a)

Sampling

In view of the apparent number of parties involved in this
proceeding,
to apply
the Commission may decide
sampling, in accordance with Article 17 of the basic Regu-
lation.

(i)

Sampling for exporters/producers
Republic of China

in the People's

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
the following information on their company or
companies within the time limit set
in paragraph
6(b)(i) and in the formats indicated in paragraph 7 of
this notice:

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

and/or telex numbers and contact person,

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— the turnover in local currency and the volume in
tonnes of the product concerned sold for export
to the Community during the period 1 April 2003
to 31 March 2004,

— the turnover

in local currency and the sales
volume in tonnes of the product concerned to
other third countries during the period 1 April
2003 to 31 March 2004,

— the precise activities of the company with regard
to the production of the product concerned and
the volume of production in tonnes of
the
product concerned, the production capacity and
the investments in production capacity during the
period 1 April 2003 to 31 March 2004,

— the names and the precise activities of all related
companies (4)
involved in the production and/or
selling (export and/or domestic) of the product
concerned,

during the period 1 April 2003 to 31 March
2004 of the imported product concerned origin-
ating in the People's Republic of China,

— the names and the precise activities of all related
involved in the production and/or

companies (5)
selling of the product concerned,

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

— an indication of whether the company or compa-
nies agree to their inclusion in the sample, which
implies replying to a questionnaire and accepting
an on-the-spot investigation of their response.

In order to obtain the information it deems necessary
for the selection of
the
Commission will,
in addition, contact any known
associations of importers.

the sample of

importers,

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

(iii) Final selection of the samples

— an indication of whether the company or compa-
nies agree to their inclusion in the sample, which
implies replying to a questionnaire and accepting
an on-the-spot investigation of their response.

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 authori-
ties of the exporting country, and any known associa-
tions of exporters/producers.

(ii) Sampling for importers

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf,
are hereby requested to make themselves known to
the Commission and to provide the following infor-
mation on their company or companies within the
time limit set in paragraph 6(b)(i) and in the formats
indicated in paragraph 7 of this notice:

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.

The Commission intends to make the final selection
of
the samples after having consulted the parties
concerned that have expressed their willingness to be
included in the sample.

Companies included in the samples must reply to a
questionnaire within the time limit set in paragraph 6
(b)(iii) of this notice and must co-operate within the
framework of the investigation.

forthcoming,

If sufficient co-operation is not
the
Commission may base its findings, in accordance with
Articles 17(4) and 18 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 notice.

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

and/or telex numbers and contact person,

(b) Questionnaires

— the total turnover in IJ of the company during the

period 1 April 2003 to 31 March 2004,

— the total number of employees,

— the precise activities of the company with regard

to the product concerned,

— the volume in tonnes and value in IJ of imports
into and resales made in the Community market

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/
producers in the People's Republic of China, to any asso-
ciation of exporters/producers, to the sampled importers,
to any association of importers named in the request or
which co-operated in the investigation leading to the
measures subject to the present review, and to the authori-
ties of the exporting country concerned.

(4) 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).

(5) 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).

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interested parties should contact

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

6. Time limits

(a) General time limits

(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 informa-
tion and supporting evidence must reach the Commission
within the time limit set
this
notice.

in paragraph 6(a)(ii) of

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.

(d) Selection of the market economy country

In the previous investigation India was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
China. The applicant has now proposed to use Australia
or the USA for this purpose. Interested parties are hereby
invited to comment on the appropriateness of these coun-
tries within the specific time limit set in paragraph 6(c) of
this notice.

(i)

For parties to request a questionnaire

All interested parties who did not co-operate in the
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 this notice in the Official Journal of the
European Union.

(ii)

For parties to make themselves known, to submit
questionnaire 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 Commis-
sion, 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 exer-
cise 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.

5.2. Procedure for the assessment of Community interest

(b)

Specific time limit in respect of sampling

In accordance with Article 21 of the basic Regulation and in
the event that the likelihood of a continuation of dumping and
injury is confirmed, a determination will be made as to
the anti-dumping measures,
whether to maintain or repeal
providing it would not be contrary to the Community interest.
For this reason the Community industry, importers, their repre-
sentative 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 time limits set 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 previous 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 submitted pursuant to Article
21 will only be taken into account if supported by factual
evidence at the time of submission.

(i) The information specified in paragraphs 5.1(a)(i) and
5.1(a)(ii) 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
Journal of the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) must reach the
Commission within a period of 21 days of the publi-
cation of this notice in the Official Journal of the
European Union.

(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.

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(c)

Specific time limit
country

for the selection of

the market economy

Parties to the investigation may wish to comment on the
appropriateness of Australia or
the USA which, as
mentioned in paragraph 5.1(d) of this notice, are envi-
saged as market-economy countries for the purpose of
the People's
establishing normal value in respect of
Republic of China. These comments must
reach the
Commission within 10 days of the date of publication of
this notice in the Official Journal of the European Union.

7. Written submissions, questionnaire replies and correspon-

dence

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,
telephone and fax, and/or telex numbers of
the interested
party). All written submissions,
including the information
requested in this notice, questionnaire replies and correspon-
dence provided by interested parties on a confidential basis
shall be labelled as ‘Limited (6)‘ and, in accordance with Article
19(2) of the basic Regulation, shall be accompanied by a non-
confidential version, which will be labelled 'FOR INSPECTION
BY INTERESTED PARTIES'.

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

8. Non co-operation

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, find-
ings, affirmative or negative, may be made in accordance with
Article 18 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, in accordance with Article 18 of the
basic Regulation, of the facts available. If an interested party
does not co-operate, or co-operates only partially, and findings
are therefore based on facts available in accordance with
Article 18 of the basic Regulation,
the result may be less
favourable to the party than if it had co-operated.

(6) 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 (OJ L 56, 6.3.1996 p. 1)
and Article 6 of the WTO Agreement on Implementation of Article
VI of the GATT 1994 (Anti-Dumping Agreement).

the Council

It