2004/782/EC: Commission Decision of 19 November 2004 accepting an undertaking offered in connection with the anti-dumping proceeding concerning imports of silicon carbide originating, inter alia, in Ukraine
Date: 2004-11-19
Institutions: European Commission
Subjects: Ukraine, anti-dumping duty, anti-dumping legislation, import, originating product, semi-metal

20.11.2004

EN

Official Journal of the European Union

L 344/37

COMMISSION DECISION

of 19 November 2004

accepting an undertaking offered in connection with the anti-dumping proceeding concerning
imports of silicon carbide originating, inter alia, in Ukraine

(2004/782/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against dumped imports
from countries not members of the European Community (1)
(‘the basic Regulation’), and in particular Articles 8, 21 and
22 (c) thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

By Regulation (EC) No 1100/2000 (2),
the Council
imposed a definitive anti-dumping duty on imports of
in Ukraine (‘the
silicon carbide originating,
existing measures’).

inter alia,

Journal of

the initiation of a partial

In March 2004, the Commission announced through the
the
publication of a notice in the Official
European Union (3)
interim
review of
the
inter alia,
in Ukraine to
product concerned originating,
examine whether
they should be amended to take
account of certain consequences of the enlargement of
the European Union to 25 Member States (‘enlargement’).

the existing measures on imports of

(3)

The Council concluded that it was in the interest of the
Community to provide for the temporary adaptation of

(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 125, 26.5.2000, p. 3. Regulation as last amended by Regu-

lation (EC) No 991/2004 (OJ L 182, 19.5.2004, p. 18).

(3) OJ C 70, 20.3.2004, p. 15.

the existing measures so as to avoid a sudden and exces-
sively negative impact on importers and users in the 10
new Member States acceding to the European Union (‘the
EU-10’)
It was
immediately following enlargement.
considered that the best means of achieving this was
through the acceptance of an undertaking offered by
the co-operating party with an element for a quantitative
ceiling.

by

Decision

Accordingly,
the
Commission accepted as a special measure a short-term
undertaking from an exporting producer
in Ukraine
(Open Joint Stock Company Zaporozhsky Abrasivny
Combinat).

2004/498/EC (4),

In order to provide for an exemption from the anti-
dumping duties afforded by the acceptance of the under-
taking, Regulation (EC) No 1100/2000 was amended by
Regulation (EC) No 991/2004.

It was stipulated in Decision 2004/498/EC that
the
acceptance of the undertaking would be limited to an
(‘the original period’)
initial period of
without prejudice
the
existing measures and that
it would lapse after this
period unless the Commission considered it appropriate
to extend its period of application.

six months
to the normal duration of

Accordingly, the Commission has examined whether the
exceptional and negative conditions for interested parties
in the EU-10 which led to acceptance of the undertaking
still exist. As part of the overall appraisal, an evaluation
of the compliance of the company concerned with its
undertaking was also made.

B. APPRAISAL

1. Content of the current undertaking

existing undertaking offered by the

company
The
inter alia, to export in accordance
concerned obliges it,
with its traditional pattern of trade to customers in the
EU-10 within the framework of a quantitative ceiling
established on the basis of previous, traditional export
flows to the EU-10.

(4)

(5)

(6)

(7)

(8)

(4) OJ L 183, 20.5.2004, p. 88.

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EN

Official Journal of the European Union

20.11.2004

(9)

(10)

The terms of the undertaking also oblige the signatory
company to provide the Commission with regular and
detailed information in the form of a monthly report of
its sales to the EU-10 (or re-sales by any related parties in
the Community) and to accept verification visits by the
Commission. In order, also, to be able to fully monitor
the effectiveness of the undertakings, written agreement
was received from the exporter’s traditional customers in
the EU-10 that they too would allow on-spot verification
visits at their premises.

(13) As concerns the length of

this further period,

is
considered that a period of application of more than
six months would negate the notion of the undertaking
being of a transitional nature, therefore, acceptance will
only be from 21 November 2004 to 20 May 2005 (‘the
final period’).

it

(14) With regard to the level of the quantitative ceiling to be
this has been calculated
applied for the final period,
following the
same methodology as was used to
establish the quantitative ceiling for the original period.

2. Compliance with the current undertaking

Verification visits to the exporting producer and certain
of its traditional customers in the EU-10 confirmed that
the company concerned had not exceeded the level of the
quantitative ceiling stipulated in the undertaking.
In
addition,
it was found that the company was broadly
respecting its traditional pattern of trade with individual
customers in the EU-10. Moreover, according to the
information available,
there have been no apparent
‘spill-overs’ from the EU-10 into the EU-15 of imports
of the product concerned which had benefited from the
exemption to the anti-dumping duties afforded by the
undertaking.

(15)

3. Analysis of conditions for continued acceptance

of undertakings

In conformity with Regulation (EC) No 991/2004, the
undertaking obliges the exporting producer to respect the
import ceilings and in order that the undertakings can be
monitored, the exporting producer concerned has also
agreed to broadly respect its traditional selling patterns
to individual customers in the EU-10. The exporting
these
producer is also aware that
sales patterns change significantly, or that
the under-
taking become in any way difficult or impossible to
monitor,
entitled to withdraw
the company’s undertaking resulting in
acceptance of
definitive anti-dumping duties being imposed in its
place, or it may adjust the level of the ceiling, or it
may take other remedial action.

the Commission is

is found that

it

if

(11) Analysis of

for

still

it was noted that

the monthly reports

existed between the prices

submitted to the
Commission by the company concerned backed up by
available official statistical data showed that a marked
the
difference
In
product concerned in the EU-10 and the EU-15.
from
addition,
Ukraine into the EU-10 had declined since enlargement,
however, as indicated in recital (30) of Regulation (EC)
No 991/2004, abnormal increases were found in import
volumes prior to enlargement
in 2003 and the first
months of 2004. It is considered that this might have
also contributed to the decrease in quantities imported
into the EU-10 following enlargement.

import volumes

(16)

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

(17)

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

C. CONCLUSION

1. Acceptance of an undertaking

(12) Given that the exceptional and negative conditions which
prevailed prior to enlargement and which necessitated
the undertaking still exist, and that the terms of the
undertaking have been observed during the
initial
period of its application by the company concerned, it
is considered that
the acceptance of an undertaking
offered by the company concerned for a further period
is justified.

(18)

relevant

In order that the Commission can monitor effectively the
company’s compliance with the undertakings, when the
request for release for free circulation pursuant to the
undertaking is presented to the
customs
authority, exemption from the duty will be conditional
upon the presentation of an invoice containing at least
the items of information listed in the Annex to Council
Regulation (EC) No 991/2004. This level of information
to
is also necessary to enable customs authorities
ascertain with sufficient precision that
the shipment
corresponds to the commercial documents. Where no
is presented, or when it does not
such invoice
correspond to the product presented to customs,
the
instead be payable.
appropriate anti-dumping duty will

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Official Journal of the European Union

L 344/39

2. Disclosure to interested parties

HAS DECIDED AS FOLLOWS:

(19) All interested parties which had previously made them-
selves known were advised of the intention to accept an
undertaking. The Community Industry raised certain
concerns that a possible ‘spill-over’ of Ukrainian silicon
carbide into the EU-15 had occurred, however, during a
verification visit by the Commission,
it was established
that the silicon carbide in question was not of Ukrainian
origin. The Community Industry nevertheless expressed
the view that an undertaking should not be accepted.

(20) Whilst the position of the Community Industry regarding
the acceptance of an undertaking is noted, the circum-
stances and needs of importers and users in the EU-10
must also be taken into account. On balance, in view of
the importance of continued supply for customers in the
EU-10, it is considered that this outweighs the concerns
of the Community Industry.

(21) No other comments or submissions were made which
caused the Commission to alter its views on the matter,

Article 1

The undertaking offered by the exporting producer mentioned
below,
anti-dumping proceeding
concerning imports of silicon carbide originating in Ukraine is
hereby accepted:

in connection with the

Country

Ukraine

Company

Produced and exported by Open
Joint Stock Company ‘Zaporozhsky
Abrasivny Combinat’, Zaporozhye,
Ukraine,
independent
customer in the Community acting
as an importer

to the

first

Taric
Additional
Code

A523

Article 2

This Decision shall enter into force on the day following that of
its publication in the Official Journal of the European Union and
remain in force until 20 May 2005.

Done at Brussels, 19 November 2004.

For the Commission

Pascal LAMY
Member of the Commission