Council Regulation (EC) No 1886/2004 of 25 October 2004 extending the definitive anti-dumping duty imposed by Council Regulation (EC) No 1796/1999 on imports of steel ropes and cables originating, inter alia, in the People's Republic of China to imports of steel ropes and cables consigned from Morocco, whether declared as originating in Morocco or not, and terminating the investigation in respect of imports from one Moroccan exporter
Date: 2004-10-25
Institutions: Council of the European Union
Subjects: China, Morocco, anti-dumping duty, import, originating product, steel

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1886/2004

of 25 October 2004

extending the definitive anti-dumping duty imposed by Council Regulation (EC) No 1796/1999 on
imports of steel ropes and cables originating, inter alia, in the People's Republic of China to imports
of steel ropes and cables consigned from Morocco, whether declared as originating in Morocco or
not, and terminating the investigation in respect of imports from one Moroccan exporter

THE COUNCIL OF THE EUROPEAN UNION,

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 (the basic
Regulation) (1), and in particular Article 13 thereof,

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

Whereas:

A. PROCEDURE

1. Existing measures

the Liaison Committee of the European Federation of
Steel Wire Rope Industries (EWRIS) to investigate the
alleged circumvention of
the anti-dumping measures
imposed on imports of steel ropes and cables originating
in the PRC. This request was submitted on behalf of
producers
the
Community production of SWR.

representing a major proportion of

(3)

The request alleged and submitted sufficient prima facie
following the imposition of
evidence showing that
measures on imports of SWR originating in the PRC,
there had been a significant change in the pattern of
trade involving exports of SWR from the PRC and
Morocco to the Community. This change in the pattern
trade was alleged to stem from transhipment via
of
Morocco of SWR originating in the PRC. There had
been a significant
increase in imports from Morocco
while imports from the PRC had decreased in roughly
equivalent proportions in the meantime.

(1)

The Council, by its Regulation (EC) No 1796/1999 (2),
imposed in August 1999 an anti-dumping duty of
60,4 % on imports of steel ropes and cables (‘steel wire
ropes’ or ‘SWR’) originating,
in the People's
Republic of China (PRC).

inter alia,

(4)

The request concluded that there was insufficient due
cause or economic justification for the aforementioned
changes other than the existence of the anti-dumping
duty on SWR originating in the PRC.

2. Request

(2)

On 5 January 2004, the Commission received a request,
pursuant to Article 13(3) of the basic Regulation, from

(5)

(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 217, 17.8.1999, p. 1. Regulation as amended by Regulation

(EC) No 1674/2003 (OJ L 238, 25.9.2003, p. 1).

Finally, EWRIS also submitted sufficient evidence that the
remedial effects of this duty were being undermined both
in terms of quantities and prices and that the prices of
SWR from Morocco were dumped in relation to the
normal values previously established for the SWR origi-
nating in the PRC.

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(6)

(7)

3. Initiation

The Commission, by its Regulation (EC) No 275/2004 (1)
initiated an investigation of
(the initiating Regulation),
the alleged circumvention and directed, pursuant
to
Articles 13(3) and 14(5) of the basic Regulation, the
customs
SWR
to register
consigned from Morocco, whether declared as originating
in Morocco or not, as of 19 February 2004. The
the PRC and
Commission advised the authorities of
Morocco of the initiation of the investigation.

imports of

authorities

4. Investigation

Questionnaires were sent to Community importers as
well as to exporters of SWR located in the PRC and
Morocco, which were mentioned in the request, and to
other interested parties who came forward within the
prescribed time limits. All parties were informed that
non-cooperation might
application of
Article 18 of
the basic Regulation. They were also
made aware of the consequences of non-cooperation.

lead to the

(13)

(8)

A number of Community importers contacted the
Commission in writing, declaring that
they had not
imported any SWR from Morocco.

(9)

No replies to the questionnaires were received from
exporters/producers in the PRC.

information was obtained from one coop-
However,
erating exporting producer in Morocco, Remer Maroc
SARL, which produced SWR and exported a small
fraction of its production to the Community during the
IP. This company accounted for less than 5 % of the total
volume of
imports of SWR from Morocco to the
Community during the IP, as reported by Eurostat.
Therefore, findings had to be partially based on facts
available,
the basic
in accordance with Article 18 of
Regulation.

2. Product concerned and like product

steel

ropes

stainless

investigation),

The product concerned is, as defined in the investigation
which lead to the imposition of the existing measures
(the original
and cables,
including locked coil ropes, excluding ropes and cables
of
steel, with a maximum cross-sectional
dimension exceeding 3 mm (in industry terminology
referred to as SWR), originating
in the People's
Republic of China, normally declared under CN codes
ex 7312 10 82,
ex 7312 10 86,
ex 7312 10 84,
ex 7312 10 88 and ex 7312 10 99.

(10) A reply to the questionnaire was received from one
Moroccan exporting producer, Remer Maroc SARL,
Settat. The Commission carried out a verification visit
at the premises of this company.

(14)

The investigation showed that the SWR exported to the
Community from the PRC and those consigned from
Morocco to the Community have
the same basic
physical and technical characteristics and have the same
uses, and are therefore to be considered as like products
within the meaning of Article 1(4) of the basic Regu-
lation.

5. Investigation period

(11)

The investigation period covered the period from 1
January 2003 to 31 December 2003 (the IP). Data
were collected from 1999 up to the end of the IP to
investigate the alleged change in the pattern of trade.

B. RESULTS OF THE INVESTIGATION

(15)

1. General considerations/degree of cooperation

(12) As mentioned in recital 9, no cooperation was received
from producers or exporters of SWR in the PRC.

(1) OJ L 47, 18.2.2004, p. 13. Regulation as amended by Regulation

(EC) No 1699/2004 (OJ L 305, 1.10.2004, p. 25).

3. Change in the pattern of trade

Cooperating Moroccan exporter

Remer Maroc SARL, the cooperating exporter, was set up
in 2001 as a fully-owned subsidiary of
the Italian
company Remer Italia Srl. During the IP, Remer Maroc
SARL exported only a very small quantity of the product
concerned to the Community, representing less than 5 %
of the total imports of SWR from Morocco in the same
period. The majority of its sales are destined to the local
Moroccan market.

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(16)

for

It has also been established that Remer Maroc SARL is
both a manufacturer and exporter of SWR operating
production facilities
complete production
the product concerned, making use of
process of
It only
textile core and grease.
purchased steel wire,
sells its own production or that of its mother company
in Italy, and never purchased any SWR, or other
materials, from the PRC.

the

(17) Given the above, Remer Maroc SARL has shown that its
exports do not play a part in the change in the pattern of
trade between the PRC and the Community. Conse-
quently, the investigation with regard to SWR exported
by Remer Maroc SARL should be terminated.

Non-cooperating Moroccan exporters

(18) As far as the non-cooperating exporters are concerned,
the exports to the Community had to be established on
the basis of facts available pursuant to Article 18 of the
basic Regulation. It was considered that Eurostat data at
CN level were the best information available to establish
the findings in respect of exports to the Community
following the imposition of the anti-dumping duty on
imports of SWR originating in the PRC. In this respect,
it should be noted that the request from the Community
industry is also based on Eurostat data, and that no other
sources of data were available to the
independent
Commission during
investigation. The
the present
export price from Morocco to the EU was established
on the basis of total export value and tonnes reported
by Eurostat at CN level, from which the quantities and
values exported by the cooperating Moroccan company
were deducted. In addition, for the data concerning the
period before the imposition of the measures,
it was
considered that Eurostat data at CN level were the best
information available, in the absence of any other inde-
pendent sources.

into the Community of SWR from Morocco increased
from zero in 1998 to 2 338 in 2003.

(20) A clear change in pattern of trade was therefore estab-
the non-cooperating companies,
lished in respect of
which came about after the entry into force, in August
1999, of Community anti-dumping measures on SWR
originating in the PRC.

4. Insufficient due cause or economic justification
(non-cooperating moroccan exporters)

(21) On the basis of facts available it was found that there
was no or at least insufficient economic justification for
that changed pattern of trade. First of all, the cooperating
Moroccan producer did not import any SWR from the
PRC. Secondly, on the basis of Chinese, Moroccan and
Community statistics, there is an increase of exports from
the PRC to Morocco which corresponds to the increase
of exports from Morocco to the Community in the same
period. Admittedly, Moroccan and Chinese trade statistics
do not distinguish between SWR and strands (semi-
finished SWR) while Community statistics do. However,
in view of the widespread non-cooperation and in the
absence of any indication that a transformation process
of strands into ropes takes place in Morocco, it can be
reasonably assumed that
these statistical data give an
adequate picture of imports of SWR from the PRC into
Morocco. Moreover, if such transformation took place, it
would not be substantial. Economically, it would not be
worthwhile to carry out any transformation from strands
into SWR in a place different from the production site of
the strands, as the value added from this process is fairly
small relative to transport costs. It is also noted that one
Moroccan company which did not complete a ques-
tionnaire nor did they accept
a verification visit,
provided contradictory information as to their activities
while they could easily have clarified the situation by
cooperating in the investigation. In the absence of coop-
eration from any other company except Remer Maroc
SARL, it can therefore be inferred from the parallelism
of the trends, that the imports from the PRC to Morocco
were not destined for the Moroccan market, but were
meant to be exported to the Community.

(19)

It was found that a marked switch from imports from
the PRC to the Community to those from Morocco to
the Community occurred after the entry into force of the
anti-dumping measures on SWR originating in the PRC
in August 1999. Following the imposition of anti-
dumping measures by the Community,
imports into
the Community of SWR from the PRC have decreased
substantially from 14 057 tonnes in 1998 to 364 tonnes
in 2000, and have remained at similarly low levels
imports
between 2000 and 2003. In the same period,

(22)

the product

This conclusion is reinforced by the fact that the only
concerned from
known exporter of
Morocco, besides the cooperating exporter, is a subsidiary
of a Chinese exporting producer. This subsidiary was
established in Morocco in 2001, coinciding with the
start of
exports of SWR from Morocco to the
Community.

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(23)

In view of the above, and given that the abovementioned
substitution of imports from the PRC by imports from
Morocco took place in the period following the impo-
sition of anti-dumping duties, it has to be concluded, in
the absence of any other explanation, that the change in
the pattern of trade stemmed from the imposition of the
duty rather than from any other sufficient due cause or
economic justification within the meaning of Article
13(1), second sentence, of the basic Regulation.

6. Evidence of dumping in relation to the normal
values previously established for like or similar
products (non-cooperating moroccan exporters)

(28)

In order to determine whether evidence of dumping
could be found with respect to the SWR exported to
the Community from Morocco by the non-cooperating
exporters during the IP, export data according to Eurostat
at CN level were used pursuant to Article 18 of the basic
Regulation, as a basis for establishing export prices to the
Community.

(24) Due to the above, it may reasonably be concluded that
the allegation contained in the complaint is confirmed,
i.e. that the vast majority of exports from the PRC to
Morocco were merely transhipped via Morocco to the
Community.

(29)

In accordance with Article 13(1) of the basic Regulation,
the normal value to be used in an anti-circumvention
investigation is the normal value established during the
original investigation.

5. Undermining of the remedial effects of the duty
in terms of the prices and/or quantities of the like
products (non-cooperating moroccan exporters)

(30)

(25)

It is evident from the figures in recital 19 that a clear
quantitative change in the pattern of Community imports
of the product concerned occurred since the imposition
of measures. The significant volume of SWR exports
from the PRC to the Community, prior to the imposition
of the measures, was partially replaced by a smaller but
still significant volume of exports from the non-coop-
erating Moroccan exporters. The latter volume corre-
the volume reached by
sponds
the original
imports from the PRC during the IP of
investigation (1 January 1997 to 31 March 1998). It is
considered, therefore, that this marked change in trade
flows undermined the remedial effects of the measures in
terms of the quantities imported into the Community
market.

to 20 to 25 % of

(26) With regard to prices, and given the low degree of coop-
eration, use had to be made of the facts available,
i.e.
Eurostat figures at CN level. This data revealed that the
in
cif export prices from Morocco were around 3 %,
the Chinese
nominal
terms, below the cif prices of
exports in the original
it
must be assumed that the export prices of Moroccan
exports
injury elimination level of
Community prices as established in the original investi-
gation.

investigation. Consequently,

are below the

(27)

is therefore concluded that

It
undermined the remedial effects of
terms of quantities and prices.

the imports concerned
the duty both in

In the original investigation, Poland was considered to be
an appropriate market economy analogue country for the
PRC and normal value was established on the basis of
prices as well as constructed normal value in that
analogue
country-wide
dumping margin of 60,4 % was established for the PRC.

country. On that basis,

a

(31)

the original

In the current anti-circumvention investigation, and in
the absence of cooperation, dumping margins could
not be computed on a detailed product
type basis.
However, export prices could be compared with those
of
investigation on a CN code basis, by
using Eurostat data, which offers a reasonable level of
detail. That comparison revealed that cif export prices
from Morocco to the Community in the IP were 3 %
lower on average than the cif export prices from the
investigation.
PRC to the Community in the original
Since these export prices are to be compared to the
same country-wide normal values as used for the deter-
mination of the original dumping margin of 60,4 %, it
can be inferred that they are also dumped prices at a
level of more than 60 %.

C. REQUESTS FOR EXEMPTION FROM REGISTRATION
OR EXTENSION OF THE DUTY

(32)

The Commission received a request for exemption from
the registration and measures
from one Moroccan
producer, Remer Maroc SARL. As stated in recital 12,
this
investigation, by
submitting a questionnaire reply and accepting a verifi-
cation visit.

company cooperated in the

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(33)

By Regulation (EC) No 1699/2004 (1), the Commission
amended the initiating Regulation in order to cease regis-
tration of imports of SWR from the Moroccan company
which was found not
to be circumventing the anti-
dumping duties, namely Remer Maroc SARL.

(34)

In accordance with the above findings that the company
was found not to have circumvented the anti-dumping
measures in force, the company should also be exempted
from the extension of the measures envisaged.

D. MEASURES

In view of the above finding of circumvention within the
meaning of Article 13(1) of the basic Regulation, the
existing anti-dumping measures on SWR originating in
the PRC should be extended to the same product
consigned from Morocco, whether declared as originating
in Morocco or not, pursuant to the same Article 13(1) of
the basic Regulation, with the exception of products
manufactured by
cooperating producer Remer
Maroc SARL.

the

they are not

affecting operators
circumvention practices without
which can prove that
involved in such
practices, but it does not contain a specific provision
providing for the treatment of producers which could
they are not involved in circumvention
establish that
practices. Therefore, it appears necessary to introduce a
possibility for producers which have not sold the product
concerned for export during the IP and are not related to
any exporters or producers subject to the extended anti-
dumping duty to request an exemption from the
measures on these imports. The producers concerned
which would consider
an
exemption from the extended anti-dumping duty would
be required to complete a questionnaire in order to
an
enable
exemption may be warranted. Such exemption may be
granted after the assessment of, for instance, the market
situation of the product concerned, production capacity
and capacity utilisation, procurement and sales, the like-
lihood of practices for which there is insufficient due
cause or economic justification and the evidence of
dumping. The Commission would normally also carry
out an on-the-spot verification visit. The request would
have to be addressed to the Commission forthwith, with
all relevant information, in particular any modification in
the company's activities linked to production and sales.

the Commission to determine whether

lodging

request

for

a

In accordance with Article 14(5) of the basic Regulation,
which provides that any extended measures should apply
against registered imports from the date of registration,
the anti-dumping duty on imports of SWR consigned
from Morocco which entered the Community under
registration imposed by the initiating Regulation, with
the exception of those SWR produced by Remer Maroc
SARL, should be collected.

(39)

Importers could still benefit from exemption for regis-
tration or measures to the extent that their imports are
from exporters, which are granted such an exemption,
and in accordance with Article 13(4) of the basic Regu-
lation.

The non-extension of the duties to the imports of the
SWR exported by Remer Maroc SARL was established on
the basis of the findings of the present investigation. This
non-extension is thus exclusively applicable to imports of
SWR consigned from Morocco and produced by this
specific
Imported SWR produced or
specifically
consigned by any other
mentioned in the operative part of this Regulation with
its name and address, including entities related to those
specifically mentioned,
from the
exemption and should be subject the same duty rate as
imposed by Regulation (EC) No 1796/1999.

company not

cannot

benefit

entity.

legal

(40) Where an exemption is warranted, the Commission will,
after consultation of the Advisory Committee, propose
the amendment of the Regulation accordingly. Subse-
quently, any exemptions granted will be monitored to
ensure compliance with the conditions set therein.

(38)

The circumvention takes place outside the Community.
the basic Regulation aims to counter
Article 13 of

(1) OJ L 305, 1.10.2004, p. 25.

E. PROCEDURE

(41)

Interested parties were informed of the essential facts and
considerations on the basis of which the Council
intended to extend the definitive anti-dumping duty in
force and were given the opportunity to comment and to
be heard. No comments which were of a nature to
change the abovementioned conclusions were received,

(35)

(36)

(37)

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HAS ADOPTED THIS REGULATION:

Article 1

represent
following address:

the applicant. The request must be sent

to the

ex 7312 10 82,

ex 7312 10 84,

The definitive anti-dumping duty imposed by Regulation
1.
(EC) No 1796/1999 on imports of steel ropes and cables,
falling within
originating in the People's Republic of China,
CN codes
ex 7312 10 86,
ex 7312 10 88 and ex 7312 10 99,
is hereby extended to
imports of the same steel ropes and cables consigned from
Morocco, whether declared as originating in Morocco or not
(TARIC codes 7312 10 82 12, 7312 10 84 12, 7312 10 86 12,
7312 10 88 12,
the
exception of
those produced by Remer Maroc SARL, Zone
Industrielle, Tranche 2, Lot 10, Settat, Morocco (TARIC addi-
tional code A567).

respectively), with

7312 10 99 12

2.
The duty extended by paragraph 1 of this Article shall be
collected on imports registered in accordance with Article 2 of
Regulation (EC) No 275/2004 and Articles 13(3) and 14(5) of
Regulation (EC) No 384/96, with the exception of
those
produced by Remer Maroc SARL, Zone Industrielle, Tranche
2, Lot 10, Settat, Morocco.

The provisions in force concerning customs duties shall

3.
apply.

Article 2

1.
Requests for exemption from the duty extended by Article
1 shall be made in writing in one of the official languages of the
Community and must be signed by a person authorised to

European Commission
Directorate-General for Trade
Directorate B
Office: J-79 05/17
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.

The

after

Commission,

the Advisory
2.
Committee, may authorise by decision the exemption of
imports which are shown not to circumvent the anti-dumping
duty imposed by Regulation (EC) No 1796/1999 from the duty
extended by Article 1 of the present Regulation.

consulting

Article 3

Customs authorities are hereby directed to discontinue the regis-
tration of imports, established in accordance with Article 2 of
Regulation (EC) No 275/2004.

Article 4

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 Luxembourg, 25 October 2004.

For the Council
The President

R. VERDONK