Notice of initiation of an anti-dumping proceeding concerning imports of granular polytetrafluoroethylene (PTFE) resin originating in the People's Republic of China and Russia
Date: 2004-09-09
Institutions: European Commission
Subjects: China, Russia, anti-dumping legislation, chemical product, originating product

C 225/18

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Official Journal of the European Union

9.9.2004

Notice of initiation of an anti-dumping proceeding concerning imports of granular polytetra-
fluoroethylene (PTFE) resin originating in the People's Republic of China and Russia

(2004/C 225/06)

alleging

The Commission has received a complaint pursuant to Article
5 of Council Regulation (EC) No 384/96 (1), (the basic Regu-
lation),
polytetra-
imports
fluoroethylene (PTFE) resin, originating in the People's Republic
of China and Russia (the countries concerned), are being
dumped and are thereby causing material injury to the Com-
munity industry.

granular

that

of

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the market share held, the quantities sold
and the level of prices charged by the Community industry,
resulting in substantial adverse effects on the overall perfor-
mance, the financial situation and the employment situation of
the Community industry.

1. Complaint

5. Procedure

The complaint was lodged on 26 July 2004 by CEFIC (the
complainant) on behalf of producers representing a major
proportion, in this case more than 50 %, of the total Com-
munity production of granular polytetrafluoroethylene (PTFE)
resin.

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 5 of the basic
Regulation.

2. Product

5.1. Procedure for the determination of dumping and injury

The product allegedly being dumped is granular polytetrafluor-
oethylene (PTFE) resin in primary forms and its raw polymer
(reactor bead), the latter whether in wet or dry form, origin-
ating in the People's Republic of China and Russia (the product
concerned), normally declared within CN code ex 3904 61 00.
This CN code is only given for information.

3. Allegation of dumping

The allegation of dumping in respect of Russia is based on a
comparison of normal value established on the basis of
domestic prices, with the export prices of
the product
concerned to the Community.

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for the People's
Republic of China on the basis of
the price in a market
economy country, which is mentioned in paragraph 5.1(d) of
this notice. The allegation of dumping is based on a compar-
ison of normal value, thus calculated, with the export prices of
the product concerned when sold for export
to the Com-
munity.

On this basis, the dumping margins calculated are significant
for both countries concerned.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China and
Russia have individually and overall a significant market share
in the Community.

(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).

investigation will

The
the product
concerned originating in the People's Republic of China and
Russia is being dumped and whether this dumping has caused
injury.

determine whether

(a) Sampling

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

(i) Sa mp l i ng

f or
Pe op l e 's R e p u b li c of Ch i na

e x p or te r s/ p r o du c e r s

i n

t h e

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
format indicated in paragraph 7 of this notice:

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

and/or telex numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 July 2003 to
30 June 2004,

— the turnover in local currency and the sales volume
in tonnes
the product concerned on the
domestic market during the period 1 July 2003 to
30 June 2004,

for

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— whether the company intends to claim an individual
margin (1) (individual margins can only be claimed
by producers),

— the precise activities of the company with regard to

the production of the product concerned,

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

companies (2)
selling (export and/or domestic) of
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 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) F i na l se le ct i on of th e sa mp le

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 sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

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

sufficient

forthcoming,

cooperation is not

If
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
mentioned in paragraph 8 of this notice.

(1) Individual margins may be claimed pursuant to Article 17(3) of the
basic Regulation for companies not included in the sample, Article
9(5) of the basic Regulation concerning individual treatment in
cases involving non-market economy countries/economies in transi-
tion, and Article 2(7)(b) of the basic Regulation for companies
claiming market economy status. Note that claims for individual
treatment necessitate an application pursuant to Article 9(5) of the
basic Regulation and that claims regarding market economy status
necessitate an application pursuant to Article 2(7)(b) of the basic
Regulation.

(2) 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).

(b) Questionnaires

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 the export-
ers/producers in Russia, to any association of exporters/
producers, to the importers, to any association of importers
named in the complaint, and to the authorities of the
exporting countries concerned.

(i) E x p or te r s / p r odu c e r s i n R u s s i a a n d i m p or t e r s

All such interested parties should contact the Commis-
sion forthwith by fax, but not later than the time limit
set out in paragraph 6(a)(i) of this notice, in order to
find out whether they are listed in the complaint and, if
necessary, request a questionnaire, given that the time
limit set in paragraph 6(a)(ii) of this notice applies to all
such interested parties.

(ii) E x p or te r s/ p r odu c e r s

c la i mi ng a n i ndi vi du a l

ma r g i n i n th e P e op le ' s R e p u bl i c of Ch i n a

Exporters/producers in the People's Republic of China
claiming an individual margin, with a view to the appli-
cation of Articles 17(3) and 9(6) of the basic Regu-
lation, must submit a completed questionnaire within
the time limit set in paragraph 6(a)(ii) of this notice.
They therefore have to request a questionnaire within
the time limit set in paragraph 6(a)(i) of this notice.
However, such parties should be aware that if sampling
is applied to exporters/producers, the Commission may
none the less decide not
to calculate an individual
margin for them, if the number of exporters/producers
is so large that individual examination would be unduly
burdensome and would prevent the timely completion
of the investigation.

(c) Collection of information and holding of hearings

submit

All interested parties are hereby invited to make their views
known,
than questionnaire
replies and to provide supporting evidence. This informa-
tion and supporting evidence has to reach the Commission
within the time limit set in paragraph 6(a)(ii) of this notice.

information other

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.

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(d) Selection of the market economy country

than 10 days after the publication of this notice in the
Official Journal of the European Union.

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose the United States of America as an
appropriate market economy country for the purpose of
establishing normal value in respect of
the People's
Republic of China. Interested parties are hereby invited to
comment on the appropriateness of this choice within the
specific time limit set in paragraph 6(c) of this notice.

(e) Market economy status

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
operate under market economy conditions,
i.e. that they
meet the criteria laid down in Article 2(7)(c) of the basic
Regulation, normal value will be determined in accordance
with Article 2(7)(b) of
the basic Regulation. Exporters/
producers intending to submit duly substantiated claims
must do so within the specific time limit set in paragraph
6(d) of this notice. The Commission will send claim forms
to all exporters/producers in the People's Republic of China
named in the complaint and to any association of expor-
ters/producers named in the complaint, as well as to the
authorities of the People's Republic of China.

5.2. Procedure for assessment of Community interest

and

representative

In accordance with Article 21 of the basic Regulation and in
the event that the allegations of dumping and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-dumping measures would not be
against the Community interest. For this reason the Community
industry, importers, their representative associations, represen-
tative users
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 informa-
tion. The parties which have acted in conformity with the
precedent 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.

6. Time limits

(a) General time limits

(i) F o r p a r t i e s

t o r e q u e st a q u e st i on n a i r e or

o t h e r cla i m for m s

(ii) F or p a r ti e s to ma ke t h e mse lve s know n,

to
su bmi t q u e sti onn a i r e r e p li e s a nd a ny ot h e r
i nfor ma ti on

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
the European Union, unless otherwise specified.
of
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
aforementioned period.

Companies selected in a sample must submit question-
naire replies within the time limits specified in para-
graph 6(b)(iii) of this notice.

(iii) He a r i ng s

All interested parties may also apply to be heard by
the Commission within the same 40 day time limit.

(b) Specific time limit in respect of sampling

(i) The

the European Union, given that
to consult parties

information specified in paragraph 5.1(a)(i)
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
the Commission
of
intends
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)(ii) must reach the
Commission within a period of 21 days of the publi-
cation of this notice in the Official Journal of the Euro-
pean Union.

All interested parties should request a questionnaire or
other claim form as soon as possible, but not later

(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
economy country

for the selection of

the market

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-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, 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 of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 18 of the basic Regulation,
the result may be less
favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 6(9)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union. According to Article 7(1) of the basic Regulation, provi-
sional measures may be imposed no later than nine months
from the publication of this notice in the Official Journal of the
European Union.

Parties to the investigation may wish to comment on the
appropriateness of the United States of America which, as
mentioned in paragraph 5.1(d) of this notice, is envisaged
as a market-economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
reach the Commission
China. These comments must
within 10 days of the date of publication of this notice in
the Official Journal of the European Union.

(d) Specific time limit for submission of claims for market

economy status and/or individual treatment

Duly substantiated claims for market economy status (as
mentioned in paragraph 5.1(e) of this notice) and/or for
individual treatment pursuant to Article 9(5) of the basic
Regulation, must reach the Commission within 15 days of
the date publication of this notice in the Official Journal of
the European Union.

7. Written submissions, questionnaire replies and corre-

spondence

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 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

(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 (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