Proposal for a Council Regulation imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of okoumé plywood originating in the People's Republic of China
Date: 2004-10-19
Institutions: European Commission
Subjects: China, anti-dumping duty, bonded wood, import, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.10.2004 
COM(2004) 678 final 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty and collecting definitively the provisional duty 
imposed on imports of okoumé plywood originating in the People's Republic of China 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On  19  August  2003,  the  Commission  opened  an  anti-dumping  investigation  with  regard  to 
imports  into  the  Community  of  okoumé  plywood  originating  in  the  People's  Republic  of 
China. 

The  investigation  revealed  the  existence  of  injurious  dumping  and  consequently  the 
Commission, by Regulation (EC) No 988/2004, imposed provisional anti-dumping duties on 
these imports.  

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  definitive  findings  on 
dumping, injury, causation and Community interest which confirmed the provisional findings 
while introducing some changes to the calculation of the dumping margins. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation which 
should be published in the Official Journal no later than 18 November 2004. 

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Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty and collecting definitively the provisional duty 
imposed on imports of okoumé plywood originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 Community1 (‘the basic 
Regulation’), and in particular Article 9 thereof, 

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

Whereas: 

A. PROVISIONAL MEASURES 

The  Commission,  by  Regulation  (EC)  No  988/20042  (the  ‘provisional  Regulation’) 
imposed  provisional  anti-dumping  duties  on imports of okoumé plywood,  defined as 
plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, 
with  at  least  one  outer  ply  of  okoumé,  falling  within  CN  code  ex  4412 13 10, 
originating in the People's Republic of China (‘PRC’). 

It  is  recalled  that  the  investigation  of  dumping  and  injury  covered  the  period  from 
1 July 2002 to 30 June 2003 (‘investigation period’ or ‘IP’). The examination of trends 
relevant for the injury analysis covered the period from 1 January 1999 to the end of 
the IP (‘period under consideration’).  

B. SUBSEQUENT PROCEDURE 

Following  the  imposition  of  a  provisional  anti-dumping  duty  on  imports  of  okoumé 
plywood  originating  in  the  PRC,  some  interested  parties  submitted  comments  in 
writing.  The  parties  who  so  requested  were  also  granted  an  opportunity  to  be  heard 
orally. 

The Commission continued to seek and verify all information it deemed necessary for 
its  definitive  findings.  After  the  imposition  of  provisional  measures,  an  on-spot 
verification  visit  was  carried  out  at  the  premises  of  Ekol  Kontraplak,  Taskopru, 

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). 
OJ L 181, 18.5.2004, p. 5. 

(1) 

(2) 

(3) 

(4) 

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Turkey, in view of the fact that Turkey was considered as a possible analogue country 
for establishing normal value. 

(5) 

All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend the imposition of definitive anti-dumping duties 
and  the  definitive  collection  of  amounts  secured  by  way  of  provisional  duties.  They 
were also granted a period within which they could make representations subsequent 
to this disclosure. 

(6) 

The oral and written comments submitted by the parties were considered, and, where 
appropriate, the findings have been modified accordingly. 

1. 

(7) 

(8) 

(9) 

C. PRODUCT CONCERNED AND LIKE PRODUCT 

Product concerned 

The product concerned is plywood  consisting  solely of sheets  of wood, each ply not 
exceeding  6 mm  thickness,  with  at  least  one  outer  ply  of  okoumé,  originating  in  the 
PRC, currently classifiable within CN code ex 4412 13 10. This definition covers both 
plywood made solely with okoumé (‘full okoumé’) and plywood with one or two outer 
faces made of okoumé (‘faced okoumé’), the inner layers being made of other species 
of wood. 

Several  importers  have  argued  that  full  okoumé  and  faced  okoumé  cannot  be 
considered  the  same  product,  since  the  composition  of  the  inner  layers  substantially 
affects  the  characteristics  of  the  plywood.  In  addition,  it  was  argued  that  these 
products have significant differences in price and use. 

From  the  beginning  of  the  investigation,  it  was  recognised  that  okoumé  plywood  is 
produced  in  a  variety  of  different  types  and  has  a  wide  range  of  applications  in  the 
building, furniture, transport and other industries. Some applications require particular 
okoumé  plywood  types,  while  in  others  different  types  can  be  used  interchangeably. 
The  most  essential  characteristic  of  okoumé  wood,  however,  is  that  it  can  be  peeled 
into  very  large  veneers  without  knots  or  other  blemishes,  allowing  plywood  to  be 
produced  with  a  good  finish  and  a  homogeneous,  seamless  surface.  This  means  that 
the  essential  characteristics  of  okoumé  plywood,  which  make  it  unique  compared  to 
other types of plywood, reside in the appearance of its face (outer) layers. 

(10)  The inner layers of plywood can be made from a variety of tropical or temperate wood 
species.  When  producing  plywood  fully  from  tropical  wood,  okoumé  plywood 
producers tend to use okoumé in the inner layers, due to the natural complementarities 
in  the  production  process  rather  than  the  particular  characteristics  of  okoumé  as 
compared  to  other  tropical  woods.  The  type  of  wood,  or  woods,  used  in  the  inner 
layers clearly affects the cost of the final product, its properties and its suitability for 
certain  applications.  It  is  considered,  however,  that  these  aspects  can  be  dealt 
adequately by distinguishing different product types in the context of the investigation, 
so  that  only  the  prices  of  identical  plywood  types  are  compared  when  assessing 
dumping  and 
investigation 
distinguishes,  among  other  characteristics,  full  okoumé  from  faced  okoumé. 
Therefore,  the  claim  that  full  okoumé  and  faced  okoumé  cannot  be  considered  the 
same product was rejected. 

injury.  The  product  coding  system  used 

the 

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(11) 

In the provisional Regulation, it was decided to exclude film-faced okoumé plywood 
from  the  scope  of  the  investigation  for  the  reasons  set  out  in  recital  (19)  of  the 
provisional  Regulation.  Film-faced  okoumé  plywood  is  made  from  faced  or  full 
okoumé, covered by a film from other materials. The Community Industry argued that 
these products should not be excluded, since they are part of the same market as the 
remaining okoumé products. However, the presence of a film over the surface of the 
wood  makes  the  above-mentioned  essential  characteristics  of  okoumé  plywood,  i.e. 
the  exterior  appearance,  much  less  relevant.  Film-faced  okoumé  plywood  does 
therefore  not  share  the  same  physical  and  technical  characteristics  as  the  product 
concerned. Moreover, film-faced okoumé plywood is mostly destined to one particular 
application, that of concrete casting, contrary to the product concerned. Therefore, this 
argument should be dismissed. 

(12) 

In the absence of any other comments, the conclusions on the definition of the product 
concerned  set  out  in  recitals  (18)  and  (19)  of  the  provisional  Regulation  are  hereby 
confirmed. 

2. 

Like product 

(13)  Several parties submitted that there are a number of differences between the product 
concerned  manufactured  in  the  PRC  and  the  one  manufactured  and  sold  in  the 
Community  by  the  Community  industry,  to  the  extent  that  these  products  cannot  be 
considered  to  be  alike  within  the  meaning  of  Article  1(4)  of  the  basic  Regulation. 
Specifically, it was claimed that: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

The Chinese exporting producers sell faced okoumé, whereas the Community 
industry sells full okoumé;  

The Chinese exporting producers sell the standard 2440 x 1220 mm and 2500 x 
1250  mm  panel  sizes,  whereas  the  Community  industry  sells  the  so-called 
“jumbo” sizes of 3100 x 1530 mm and 3100 x 1700 mm;  

The  Chinese  exporting  producers  sell  interior  grade  plywood,  whereas  the 
Community industry sells weather-resistant, or exterior grade plywood; 

The quality of the faces is generally lower in the case of the panels sold by the 
Chinese exporting producers (B/BB against BB/CC quality);  

The  faces  of  the  panels  sold  by  the  Chinese  exporting  producers  are  thinner 
than  those  of  the  panels  sold  by  the  Community  industry  (0.6  mm  against  1 
mm);  

The quality of the inner layers is generally lower in the case of the panels sold 
by the Chinese exporting producers;  

The quality of the glue is generally lower in the case of the panels sold by the 
Chinese exporting producers.  

(14)  Regarding  the  first  three  characteristics  referred  to  under  recital  (13)(a)  to  (13)(c) 
above, the investigation has shown that the Chinese exporting producers, as well as the 
Community industry, sold both full and faced okoumé, both interior and exterior grade 
plywood,  and  a  wide  range  of  panel  sizes.  Since  these  characteristics  are  normally 

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shown  in  the  sales  documentation,  they  have  been  included  in  the  product  control 
numbers  (‘PCN’)  for  the  purpose  of  calculating  the  dumping  and  injury  margins. 
Therefore, as far as those characteristics are concerned, any differences are fully taken 
into account and only like products are being compared. 

(15)  The fourth characteristic mentioned under recital (13)(d) was not included in the PCN, 
since it  is not mentioned  in  the majority of transaction documents  made  available  to 
the  Commission  during  the  investigation.  Based  on  the  transactions  for  which  the 
quality  grade  of  the  faces  was  indicated,  it  was  found  that  the  Chinese  exporting 
producers, as well as the Community industry, sold a variety of grades, and it did not 
appear that the grades of the Community industry like product are typically of a higher 
quality than those of the Chinese exporting producers. 

(16)  The last three characteristics referred to under recital (13)(e) to (13)(g) were also not 
included  in  the  PCN,  since  they  do  not  appear  in  most  of  the  transaction  data. 
However, it was recognised that a majority of the exports from the PRC have thinner 
faces than the Community like product. Similarly, the differences in quality of gluing 
and of the inner layers, albeit variable, is sufficiently generalised to play a role in some 
buyers’  perception,  and  should  not  be  ignored.  An  adjustment  for  these  differences 
was thus applied when calculating the undercutting and injury margins, as set out in 
recital (80) of the provisional Regulation. 

(17) 

(18) 

It  should  also  be  noted  that  these  quality  differences  are  not  sufficient  to  create  a 
perception  from  the  buyers  that  the  product  concerned  exported  by  the  PRC  is  an 
entirely different product. On the contrary, the investigation showed concrete instances 
where  the  Chinese  exports  had  replaced  the  Community  industry  products  in  the 
purchases of some customers on the Community market.  

It  is  therefore  concluded  that  the  alleged  differences  between  the  product  concerned 
and the product manufactured and sold in the Community by the Community industry, 
as  far  as  they  have  been  demonstrated,  have  been  fully  taken  into  account  either 
through  the  PCN  or  via  an  adjustment.  Since  these  differences  in  any  event  do  not 
change the fact that the product concerned and the product manufactured and sold in 
the  Community  by  the  Community  industry  have  the  same  basic  characteristics  and 
uses, the claim that the product concerned and the product manufactured and sold in 
the Community by the Community industry are not alike, must be dismissed. 

(19) 

In the absence of any other comments concerning the like product, recital (20) of the 
provisional Regulation is hereby confirmed. 

1. 

Market economy treatment (‘MET’) 

D. DUMPING 

(20)  One  exporting  producer  to  which  MET  was  not  granted  stated  that  the  Commission 
did  not  take  into  account  the  comments  it  submitted  after  disclosure  of  the 
Commission’s determinations.  However,  its arguments were examined and explicitly 
addressed  in  recitals  (29)  to  (32)  of  the  provisional  Regulation.  This  claim  was 
therefore rejected. 

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(21)  Another exporting producer which was considered to be non-cooperating argued that it 
had  co-operated  with  the  Commission.  It  should  be  noted  that  this  same  argument, 
which had already been raised by the same company after disclosure of the findings of 
the Commission regarding MET, was specifically addressed in recitals (33) to (35) of 
the provisional Regulation. This claim was therefore rejected. 

(22) 

In the absence of other comments, recitals (21) to (35) of the provisional Regulation 
concerning market economy treatment are hereby confirmed. 

2. 

Individual treatment 

(23) 

In  the  absence  of  any  comments,  recitals  (36)  to  (40)  of  the  provisional  Regulation 
concerning individual treatment are hereby confirmed. 

3. 

Normal value 

3.1.  Determination  of  normal  value  for  co-operating  exporting  producers 

granted MET 

(24)  One of the co-operating exporting producers claimed that the calculation of the cost of 
its  purchases  of  poplar  veneers,  as  explained  in  recital  (49)  of  the  provisional 
Regulation,  was  not  correct,  and  that  some  tax  credits  allegedly  received  on  the 
purchase  of  these  veneers  should  have  been  deducted  from  this  cost.  By  its  nature, 
such a claim should have been substantiated by verifiable evidence submitted in good 
time. The company, however, was unable to provide sufficient evidence that the VAT 
reimbursement effectively took place, although it had been requested to do so during 
the investigation at its premises. Therefore, this claim had to be rejected. 

(25) 

It  should  be  noted  that  minor  adjustments  due  to  clerical  errors  were  made  after  the 
publication of the provisional Regulation in the calculation of the profit rate of three 
co-operating  exporting  producers  granted  MET.  This  led  to  a  slight  change  in  the 
normal values calculated for them. 

(26) 

In  the  absence  of  other  comments,  the  provisional  findings  concerning  the 
determination of normal value for co-operating exporting producers granted MET, as 
described in recitals (41) to (51) of the provisional Regulation, are hereby confirmed. 

3.2 Determination of normal value for all exporting producers not granted MET 

(27)  Morocco had provisionally been chosen as an analogue market economy third country 
for  the  purpose  of  establishing  normal  value  for  the  PRC.  However,  as  set  out  in 
recital (56) of the provisional Regulation, three exporting producers had opposed this 
choice.  

(28)  The  Commission’s  investigation  had  shown  that  there  was  only  one  producer  on  the 
Moroccan  domestic  market,  where,  in  addition,  a  high  import  customs  duty  existed. 
Therefore,  it  was  decided  to  further  investigate  whether  a  more  suitable  analogue 
country could be chosen. Turkey, where one producer had accepted to co-operate with 
the Commission, was envisaged as a potential alternative analogue country. 

(29)  Further  to  the  publication  of  the  provisional  Regulation,  more  comments  on  the 
original choice of Morocco were received from several importers and several Chinese 

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(30) 

(31) 

exporting producers. They argued that the choice of Morocco as an analogue market 
economy  third  country  was  inappropriate  because  of  an  alleged  difference  in  quality 
between  the  okoumé  plywood  made  by  the  Chinese  producers  and  the  okoumé 
plywood made in Morocco. 

It was found that on the Turkish market no high customs duty was imposed and that 
several  competitors  were  producing  okoumé  plywood.  In  addition,  the  investigation 
later  confirmed  that  the  sales  of  the  co-operating  Turkish  producer  were  substantial 
and sufficiently representative to establish a normal value for Chinese exports of the 
product  concerned.  Therefore,  it  was  decided  to  choose  Turkey  as  an  analogue 
country. 

In order to establish whether sales on the Turkish market of the products comparable 
to those sold by the Chinese exporting producers to the Community were made in the 
ordinary course  of trade, the domestic selling price was compared to the full  cost of 
production  (i.e.  the  cost  of  manufacturing  plus  selling,  general  and  administrative 
expenses).  Since  the  large  majority  of  the  sales  volume  of  the  types  sold  on  the 
domestic market were sold in the ordinary course of trade, normal value was based on 
the domestic price for the comparable product types. 

(32)  An  adjustment  for  physical  differences  according  to  Article  2(10)(a)  of  the  basic 
Regulation  was  made  to  the  normal  value,  to  take  into  account  the  difference  in  the 
types of glue used for the comparable product types sold in Turkey and for the product 
concerned. 

4. 

Export price  

(33) 

In the absence of any comments, the provisional findings concerning the determination 
of the export price, as described in recitals (60) and (61) of the provisional Regulation, 
are hereby confirmed. However, with regard to the determination of the export price 
for non-cooperating exporters, the following change has been made: instead of using 
as a basis a limited volume of sales for the cooperating exporting producer who was 
not granted MET, the whole volume of this company’s faced okoumé sales was used, 
which – on the basis of information available – was generally more representative for 
the large majority of Chinese exports.  

5. 

Comparison  

(34)  One  exporting  producer  claimed  that  transport  costs  had  been  unduly  deducted  from 
sales which had been made on a FOB basis. However, this adjustment was made only 
after the entirety of the sales values had been converted to a CIF basis, according to a 
method agreed with the company. Therefore, the claim had to be rejected. 

(35)  One exporting producer objected to an adjustment made on its export price to take into 
account a deferred discount granted to one of its traders, as described in recital (63) of 
the  provisional  Regulation.  The  exporter  claimed  that  this  discount  was  already 
reflected into the prices as reported by the company. However, the company could not 
demonstrate during the investigation that this was the case. Therefore, this claim had 
to be rejected.  

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(36)  One exporting  producer argued that its sales of the product concerned were made to 
different categories of customers when for export or for its domestic market and that 
the  data  submitted  by  the  company  showed  consistent  price  differences  between  the 
various  categories  of  customers.  It  requested  that  this  should  be  duly  taken  into 
account in the dumping calculation, in the form of an adjustment of its export price for 
level of trade, pursuant to Article 2(10)(d) of the basic Regulation. Although this claim 
was deemed justified, the level of adjustment requested by the exporter was based on a 
single example, and was considered not representative. After an analysis of the price 
data, an appropriate level of adjustment was quantified and applied to the export price. 

6. 

Dumping margins  

(37)  Some  claims  having  been  accepted,  as  set  out  above,  and  the  methodology  and 
calculations  refined,  namely  with  respect  to  the  choice  of  the  analogue  country,  the 
dumping margins finally determined, expressed as a percentage of the CIF Community 
frontier price, duty unpaid, are: 

Company 

Dumping margin 

Nantong Zongyi Plywood Co., Ltd. 

Zhejiang  Deren  Bamboo-Wood  Technologies 
Co., Ltd. 

9.6% 

23.5% 

Zhonglin Enterprise (Dangshan) Co., Ltd. 

6.5% 

Jiaxing Jinlin Lumber Co., Ltd. 

17.0% 

(38) 

In  the  absence  of  any  comments,  the  methodology  for  calculating  the  country-wide 
dumping margin, as described in recitals (67) to (69) of the provisional Regulation, are 
hereby  confirmed.  Due  to  the  use  of  Turkey  as  analogue  country,  as  explained  in 
recitals  (27)  to  (32)  above,  a  new  country-wide  level  of  dumping  was  established  at 
66.7% of the CIF Community frontier price, duty unpaid. 

E. COMMUNITY INDUSTRY  

(39) 

In the absence of any comments, the provisional findings concerning the Community 
industry, as described in recitals (70) to (72) of the provisional Regulation, are hereby 
confirmed. 

1. 

Community consumption 

F. INJURY  

(40) 

In the absence of any comments, the provisional findings concerning the Community 
consumption,  as  described  in  recitals  (74)  to  (75)  of  the  provisional  Regulation,  are 
hereby confirmed. 

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2. 

Imports from the country concerned 

(41)  For  the  purpose  of  analysing  price  undercutting,  the  provisional  Regulation  added  a 
10%  adjustment  to  the  CIF  Community  frontier  price  of  the  co-operating  exporting 
producers.  This  adjustment  is  intended  to  account  for  the  generally  recognised,  but 
difficult  to  quantify,  difference  in  quality  between  the  Community  and  Chinese 
okoumé plywood. This adjustment was established on the following basis. Information 
available to the Commission concerning offers from Chinese producers of the product 
concerned with face thicknesses of either 1 mm or 0.6 mm shows that the difference in 
face  thickness  could  mean  a  price  difference  of  between  3.5%  and  5.5%.  In  the 
absence  of  further  quantified  information,  it  can  reasonably  be  assumed  that  the 
remaining quality aspects mentioned in recital (16), namely the quality of gluing and 
of  the  inner  layers,  could  have  a  comparable  impact  importance  to  that  of  face 
thickness. The cumulative impact of those quality differences could thus correspond to 
a  price  difference  in  the  range  of  10-15%.  It  should  be  recalled,  however,  that  the 
above-mentioned quality differences cannot be verified on a transaction-by-transaction 
basis, and are not likely to apply to the entirety of the exports from the PRC during the 
investigation  period.  Rather,  the  investigation  has  shown  that  the  Chinese  exporting 
producers offer products of varying and evolving quality and characteristics. 

(42)  One importer argued that the allowance should be 25% rather than 10%, but did not 
provide  any  objective  justification  for  the  higher  figure.  Under  those  circumstances, 
there  appears  to  be  no  reason  to  change  the  approach  set  out  in  the  provisional 
Regulation. 

(43) 

In the absence of any other comments, the conclusions drawn in recitals (76) to (81) of 
the provisional Regulation are hereby confirmed.  

3. 

Situation of the Community industry 

(44)  Two  exporting  producers  questioned  the  injurious  impact  of  imports  by  pointing  out 
that  prices  have  remained  rather  stable,  with  a  nominal  increase  of  3%,  or  a  slight 
decrease  in  real  terms,  during  the  period  under  consideration.  It  should  be  recalled, 
however,  that  the  average  prices  shown  in  recital  (91)  of  the  provisional  Regulation 
refer  to  a  range  of  different  product  types,  of  which  the  lower-priced  types  suffered 
most from the effects of the Chinese imports. Even if the prices of these lower-priced 
products had decreased throughout the period, since their relative share in the product 
mix  also  decreased,  the  overall  price  per  cubic  meter  would  not  have  decreased 
necessarily.  This  shift  in  the  product  mix  of  the  Community  producers  was  already 
pointed out in recital (91) of the provisional Regulation. Furthermore, at the time the 
Chinese  exports  surged  into  the  Community  market,  the  Community  industry  was 
emerging  from  a  downturn  characterised  by  relatively  low  selling  margins.  In  such 
conditions, the Community industry did not have much room to face competition by 
decreasing  its  prices,  and  most  of  the  injurious  effects  of  imports  took  place  via  a 
volume  effect,  as  explained  in  recitals  (85)  to  (90)  of  the  provisional  Regulation. 
Therefore, the above argument has to be rejected. 

(45) 

In the absence of any other comments, the conclusions drawn in recitals (82) to (99) of 
the provisional Regulation are hereby confirmed.  

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4. 

Conclusion on injury 

(46) 

In the absence of any other comments on the injury findings, the conclusions reached, 
as  set  out  in  recitals  (100)  to  (102)  of  the  provisional  Regulation,  are  hereby 
confirmed. 

G. CAUSATION 

(47)  Two  exporters  submitted  that  the  increase  in  average  unit  costs  of  the  Community 
industry  in  the  period  under  consideration  was  a  significant  factor  behind  the 
deterioration of the profitability of the Community industry, to the point of breaking 
the  causal  link  between  dumping  and  injury.  As  noted  in  recital  (113)  of  the 
provisional  Regulation,  the  development  in  costs  of  the  sampled  Community 
producers  is  not  out  of  line  with  the  development  of  costs  and  prices  in  the 
Community  in  general.  As  such,  this  type  of  cost  increases,  such  as  those  of  raw 
materials,  do  not  represent  an  external  factor  with  which  this  industry  would  not  be 
able to cope under normal economic conditions and in the absence of the strong price 
pressure  by  the  dumped  imports  in  particular.  Furthermore,  at  least  part  of  the 
observed increase in average costs may be attributed to lower capacity utilisation and 
to  a  shift  towards  more  expensive  product  types,  which  are  in  turn  related  to  the 
competition from the dumped imports. The argument cannot, therefore, be accepted. 

(48)  With regard to the possible effect of imports originating in third countries other than 
the  PRC,  recital  (109)  of  the  provisional  Regulation  noted  that  the  average  prices  of 
other major exporters, such as Gabon and Morocco, are about 50% higher than those 
of the PRC and could therefore not be considered a determinant factor in the injury to 
the  Community  industry.  One  importer  pointed  out  that  the  exports  of  those  two 
countries  concerned  exclusively  or  mostly  full  okoumé,  whereas  the  majority  of  the 
exports  of  the  PRC  consist  of  faced  okoumé,  which  is  by  nature  less  expensive. 
Although  this  remark  may  be  correct,  the  price  difference  between  the  prices  of  full 
and  faced  okoumé,  which  the  investigation  has  shown  to  be  around  15%,  does  not 
account for the 50% price difference mentioned above. Furthermore, the findings set 
out in the provisional Regulation, that these countries’ market shares are much lower 
than that of the PRC, and that the volume and prices of their exports have remained 
relatively  stable  throughout  the  period  under  consideration,  remain  valid.  Therefore, 
the  above-mentioned  remark  does  not  invalidate  the  conclusion  that  imports  from 
these third countries did not exert a competitive pressure on the Community industry 
to the extent that imports from the PRC did, and have not been a determining reason 
for the injurious situation of the Community industry. 

(49)  The  same  exporters  argued  that  the  decline  of  the  export  performance  of  the 
Community industry, mentioned in recital (111) of the provisional Regulation, was not 
negligible  and,  added  to  other  factors  not  related  to  the  Chinese  exports,  would 
account  for  the  deterioration  of  the  financial  situation  of  the  Community  industry. 
Although  exports  of  the  Community  industry  indeed  decreased,  by  nearly  2 000  MT 
over 3.5 years, as explained in recital (111) of the provisional Regulation, this decline 
cannot  be  compared  to  the  impact  of  Chinese  exports  into  the  Community  market, 
which  reached  more  than  80 000  MT  in  2.5  years  between  2000  and  the  IP.  This 
argument is therefore dismissed. 

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(50) 

In  the  absence  of  any  other  comments  on  causation,  the  findings  and  the  conclusion 
reached, as set out in recitals (103) to (117) of the provisional Regulation, are hereby 
confirmed. 

H. COMMUNITY INTEREST 

(51)  Two exporters argued that the Commission failed to provide an economic analysis of 
impact  of  the  measures  upon  users,  traders  and  consumers  in  its  assessment  of  the 
Community  interest  aspects.  It  should  first  be  noted  that  exporters  do  not  have 
standing in the context of the examination of Community interest. Nevertheless, with 
regard to the substance of the argument, it should be recalled that no users, traders or 
consumers  have  cooperated  in  the  investigation  or  come  forward  during  the 
proceeding,  and  that  therefore  no  specific  data  is  available  to  the  Commission  to 
quantify such an impact. Therefore, this argument cannot be accepted. 

(52) 

It  was  further  argued  by  one  importer  that  the  country-wide  duty  of  48.5%  was 
prohibitive  and  that  the  limited  number  of  suppliers  of  okoumé  products  in  Europe 
would lead to a lack of competition in Europe, to the detriment of user industries. As 
noted  in  recital  (125)  of  the  provisional  Regulation,  however,  the  anti-dumping 
measures are intended only to restore a level playing field in this market, and not to 
foreclose  competition,  which  should  be  ensured  in  view  of  the  number  of  different 
producers  and  exporting  countries  besides  China.  Therefore,  this  argument  must  be 
dismissed. 

(53) 

In the absence of any other new information submitted on the Community interest, the 
findings  and  the  conclusion  reached,  as  set  out  in  recitals  (118)  to  (127)  of  the 
provisional Regulation, are hereby confirmed. 

I. DEFINITIVE ANTI-DUMPING MEASURES 

1. 

Injury elimination level 

(54) 

In  the  absence  of  any  comments,  the  methodology  used  for  establishing  the  injury 
elimination level, as described in recitals (128) to (132) of the provisional Regulation, 
is hereby confirmed. 

(55)  Based  on  this  methodology,  an  injury  elimination  level  has  been  calculated  for  the 

purposes of establishing the level of measures to be definitively imposed. 

2. 

Form and level of the duties 

(56) 

In  the  light  of  the  foregoing  and  in  accordance  with  Article  9(4)  of  the  basic 
Regulation,  a  definitive  anti-dumping  duty  should  be  imposed  at  the  level  of  the 
dumping  margins  found,  since  for  all  the  exporting  producers  concerned  the  injury 
margins were found to be higher than the dumping margins. 

(57)  On the basis of the above, the definitive duties are as follows: 

Company 

Dumping margin 

Nantong Zongyi Plywood Co., Ltd. 

9.6% 

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Zhejiang Deren Bamboo-Wood Technologies Co., Ltd. 

Zhonglin Enterprise (Dangshan) Co., Ltd. 

Jiaxing Jinlin Lumber Co., Ltd. 

Country-wide dumping margin 

23.5% 

6.5% 

17.0% 

66.7% 

(58)  The  individual  company  anti-dumping  duty  rates  specified  in  this  Regulation  were 
established  on  the  basis  of  the  findings  of  the  present  investigation.  Therefore,  they 
reflect  the  situation  found  during  that  investigation  with  respect  to  these  companies. 
These  duty  rates  (as  opposed  to  the  country-wide  duty  applicable  to  'all  other 
companies')  are  thus  exclusively  applicable  to  imports  of  products  originating  in  the 
country  concerned  and  produced  by  the  companies  and  thus  by  the  specific  legal 
entities mentioned. Imported products produced by any other company not specifically 
mentioned in the operative part of this Regulation with its name and address, including 
entities  related  to  those  specifically  mentioned,  cannot  benefit  from  these  rates  and 
shall be subject to the duty rate applicable to 'all other companies'. 

(59)  Any claim requesting the application of these individual company anti-dumping duty 
rates (e.g. following a change in the name of the entity or following the setting up of 
new  production  or  sales  entities)  should  be  addressed  to  the  Commission3  forthwith 
with all relevant information, in particular any modification in the company's activities 
linked  to  production,  domestic  and  export  sales  associated  with,  for  example,  that 
name  change  or  that  change  in  the  production  and  sales  entities.  If  appropriate,  the 
Regulation  will  then  be  amended  accordingly  by  updating  the  list  of  companies 
benefiting from individual duty rates.  

(60) 

In  order  to  minimise  the  risks  of  circumvention  due  to  the  substantial  level  of  non-
cooperation (80 %) and the high difference in the amounts of duty, it is considered that 
special provisions are needed in this case to ensure the proper application of the anti-
dumping duty. 

(61)  These  special  provisions  include  the  presentation  to  the  customs  authorities  of  the 
Member  States  of  a  valid  commercial  invoice,  which  shall  conform  to  the 
requirements  set  out  in  the  Annex  to  the  Regulation.  Only  imports  accompanied  by 
such  an  invoice  shall  be  declared  under  the  applicable  Taric  additional  codes  of  the 
producer  in  question.  Imports  not  accompanied  by  such  an  invoice  shall  be  made 
subject  to  the  residual  anti-dumping  duty  applicable  to  all  other  exporters.  The 
companies  concerned  have  also  been  invited  to  submit  regular  reports  to  the 
Commission in order to ensure a proper follow up of their sales of okoumé plywood to 
the  Community.  In  cases  where  reports  are  not  submitted,  or  where  the  reports 
disclose  that  the  measures  are  not  adequate  to  eliminate  the  effects  of  injurious 
dumping, it may be necessary to initiate an interim review in accordance with Article 

3 

European Commission 
Directorate-General for Trade 
Direction B, office J-79 5/16 
1049 Brussels/Belgium 

EN 

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11(3) of the basic Regulation. This could, inter alia, examine the need for the removal 
of individual duty rates and the consequent imposition of a country-wide duty. 

3. 

Undertakings 

(62)  Subsequent to the adoption of provisional anti-dumping measures, and in accordance 
with  Article  8(1)  of  the  basic  Regulation,  one  co-operating  exporting  producer 
expressed  its  willingness  to  offer  an  undertaking.  However,  the  minimum  export 
prices that the company was prepared to offer for certain products were at levels which 
did  not  eliminate  the  injurious  effects  of  the  dumping.  Accordingly,  this  offer  could 
not be accepted.  

4. 

Collection of provisional duties 

(63) 

In view of the magnitude of the dumping margins found and in the light of the level of 
the  injury  caused  to  the  Community  industry,  it  is  considered  necessary  that  the 
amounts  secured  by  way  of  the  provisional  anti-dumping  duty,  imposed  by  the 
provisional Regulation, i.e. Regulation (EC) No 988/2004, be collected definitively to 
the extent of the amount of the duty definitively imposed by the present Regulation if 
this amount is equal to or lower than the amount  of the  provisional  duty. Where the 
definitive duties are higher than the provisional duties, only the amounts secured at the 
level of the provisional duties should be collected definitively. 

(64)  As  set  out  in  recital  (11),  film-faced  okoumé  plywood  has  been  excluded  from  the 
scope  of  the  investigation.  Given  that  Article  1(1)  of  the  provisional  Regulation  did 
not provide for such an exclusion, any amounts secured for this product types should 
be released. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  okoumé  plywood, 
defined  as  plywood  consisting  solely  of  sheets  of  wood,  each  ply  not  exceeding 
6 mm  thickness,  with  at  least  one  outer  ply  of  okoumé  not  coated  by  a  permanent 
film  of  other  materials,  falling  within  CN  code  ex  4412 13 10  (TARIC  code 
4412 13 10 10) and originating in the People’s Republic of China. 

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net,  free-at-
Community-frontier  price,  before  duty,  shall  be  as  follows,  provided  that  they  are 
imported in conformity with paragraph 3: 

Manufacturer 

Rate of duty 
% 

TARIC 
additional code 

Zongyi 

Nantong 
Ltd.
Xingdong  Town,  Tongzhou  City,  Jiangsu 
Province, People’s Republic of China 

Plywood 

Co., 

9.6% 

A526 

Zhejiang  Deren  Bamboo-Wood  Technologies 

23.5% 

A527 

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Co., 
Ltd.
Linhai  Economic  Development  Zone,  Zhejiang, 
People’s Republic of China 

(Dangshan)  Co.,  Ltd.
Zhonglin  Enterprise 
Xue  Lou  Miao  Pu,  Dangshan  County,  Anhui 
Province 235323, People’s Republic of China 

Jinlin 

Ltd.
Jiaxing 
North  of  Ganyao  Town,  Jiashan,  Zhejiang 
Province, People’s Republic of China 

Lumber 

Co., 

6.5% 

17.0% 

A528 

A529 

All other companies 

66.7% 

A999 

3. 

4. 

The  application  of  the  individual  duty  rates  specified  for  the  four  companies 
mentioned  in  paragraph  2  shall  be  conditional  upon  presentation  to  the  customs 
authorities of the Member States of a valid commercial invoice, which shall conform 
to the requirements set out in Annex 1. If no such invoice is presented, the duty rate 
applicable to all other companies shall apply.  

Unless  otherwise  specified,  the  provisions  in  force  concerning  customs  duties  shall 
apply.  

Article 2 

Amounts  secured  by  way  of  provisional  anti-dumping  duties  pursuant  to  Commission 
Regulation  (EC)  No  988/2004  on  imports  of  okoumé  plywood  falling  within  CN  code  ex 
4412 13 10 (TARIC code 4412 13 10 10), originating in the People’s Republic of China shall 
be definitively collected, in accordance with the rules set out below. The amounts secured in 
excess  of  the  amount  of  the  definitive  anti-dumping  duties  shall  be  released.  Where  the 
definitive duties are higher than the provisional duties, only the amounts secured at the level 
of  the  provisional  duties  shall  be  definitively  collected.  Amounts  secured  for  the  import  of 
film-faced okoumé plywood should be released. 

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, 

For the Council 
The President 

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ANNEX 1 

The  valid  commercial  invoice  referred  to  in  Article  1(3)  of  this  Regulation  must  include  a 
declaration signed by an officer of the company, in the following format:  

1.  the  name  and  function  of  the  official  of  the  company  which  has  issued  the  commercial 
invoice; 

2. the following declaration: 

‘I,  the  undersigned,  certify  that  the  [volume]  of  okoumé  plywood  sold  for  export  to  the 
European  Community  covered  by  this  invoice  was  manufactured  by  [company  name  and 
address] [TARIC additional code] in [country]; I declare that the information provided in this 
invoice is complete and correct.’; 

3. Date and signature. 

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