Commission Regulation (EC) No 1996/2004 of 19 November 2004 accepting undertakings offered in connection with the anti-dumping proceeding concerning imports of ammonium nitrate originating in the Russian Federation and Ukraine and continuing to make imports of ammonium nitrate originating in the Russian Federation or Ukraine subject to registration
Date: 2004-11-19
Institutions: European Commission
Subjects: Russia, Ukraine, anti-dumping duty, anti-dumping legislation, chemical salt, fertiliser, import, originating product

L 344/24

EN

Official Journal of the European Union

20.11.2004

COMMISSION REGULATION (EC) No 1996/2004

of 19 November 2004

accepting undertakings offered in connection with the anti-dumping proceeding concerning imports
of ammonium nitrate originating in the Russian Federation and Ukraine and continuing to
make imports of ammonium nitrate originating in the Russian Federation or Ukraine subject to
registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

they should be
to examine whether
(the measures)
adapted to take account of certain consequences of the
enlargement of the European Union to 25 Member States
(enlargement).

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 132/2001 (2),
the Council
imposed a definitive anti-dumping duty on imports of
ammonium nitrate (the product concerned) originating
in Ukraine. By Regulation (EC) No 658/2002 (3),
following an expiry and interim review,
the Council
imposed a definitive anti-dumping duty on imports of
the product
concerned originating in the Russian
Federation (Russia).

In March 2004, the Commission announced, through the
the
publication of a notice in the Official
European Union (4),
interim
review of
the
product concerned originating in Russia and Ukraine

the existing measures on imports of

the initiation of a partial

Journal 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 23, 25.1.2001, p. 1. Regulation as amended by Regulation (EC)

No 993/2004 (OJ L 182, 19.5.2004, p. 28).

(3) OJ L 102, 18.4.2002, p. 1. Regulation as amended by Regulation

(EC) No 993/2004.

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

(3)

(4)

(5)

(6)

The Council concluded that it was in the interest of the
Community to provide for the temporary adaptation of
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
considered that the best means of achieving this was
through the acceptance of undertakings offered by the
cooperating parties, with elements for minimum import
prices and quantitative ceilings.

following enlargement.

immediately

(i) an exporting producer of

Accordingly, by Regulation (EC) No 1001/2004 (5), the
Commission accepted as a special measure short-term
the
undertakings from:
product concerned in Ukraine (OJSC ‘Azot’);
(ii) an
exporting producer in Russia (OJSC MCC Eurochem in
respect of goods produced at its production facilities of
JSC Nak Azot, Russia) and sold by its related company
(Cumberland Sound Ltd, British Virgin Islands); (iii) two
related Russian exporting producers jointly (Joint Stock
Company ‘Acron’ and Joint Stock Company ‘Doro-
gobuzh’).

In order to provide for an exemption from the anti-
dumping duties afforded by the acceptance of the under-
takings, Regulation (EC) No 658/2002 and Regulation
(EC) No 132/2001 were amended by Council Regulation
(EC) No 993/2004.

It was stipulated in Regulation (EC) No 1001/2004 that
acceptance of the undertakings would be limited to an
initial period of six months (the original period) without
prejudice to the normal duration of the existing measures
and that they would lapse after this period unless the
Commission considered it appropriate to extend their
period of application.

(5) OJ L 183, 20.5.2004, p. 13.

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Official Journal of the European Union

L 344/25

(7)

(8)

(9)

(10)

in recital 15 of Regulation (EC) No
set out
As
1001/2004,
the under-
the continued acceptance of
takings would be subject to an appraisal at the end of
the six-month period to verify whether the exceptional
and negative conditions for end-users in the EU-10
which led to the acceptance of the undertakings still
exist. As part of the overall appraisal, an evaluation of
the compliance of the companies concerned with their
undertakings was also made.

B. APPRAISAL

1. Content of the current undertakings

to export

inter alia,

The existing undertakings offered by the companies
oblige them,
in accordance with
their traditional pattern of
trade to customers in the
EU-10 at or above certain minimum import prices
(MIPs). These MIPs significantly eliminate the injurious
dumping found in the original
investigations. Such
exports are also to be made within the framework of
quantitative
of
established
previous, traditional export flows to the EU-10.

on the

ceilings

basis

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

In order, also,

2. Compliance with the current undertakings

Verification visits to the exporting producers showed that
the companies concerned had observed the MIPs and that
the volumes exported to the EU-10 had not exceeded the
levels of the quantitative ceilings stipulated in the under-
it was found that the companies
takings.
In addition,
traditional patterns of
were broadly respecting their
EU-10.
the
trade with
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 undertakings.

customers

individual

in

3. Analysis of conditions for continued
acceptance of undertakings

for

still

existed between the prices

(11) Analysis of the monthly sales reports submitted to the
Commission by the companies concerned backed up by
available official statistical data showed that although
there had been some convergence in prices, a marked
the
difference
product concerned in the EU-10 and the EU-15.
In
addition, it was noted that import volumes from Russia
and Ukraine into the EU-10 had declined since enlar-
gement, however,
in view of the fact that the period
under examination is one of the ‘low seasons’ for the
product concerned,
In
addition, as indicated in recital 28 of Regulation (EC)
No 993/2004, abnormal
increases in export volumes
to the EU-10 were found prior to enlargement in 2003
and the first few months of 2004. It is considered that
this might also have contributed to the decrease in the
quantities imported into the EU-10 following enlar-
gement.

they still remained significant.

C. CONCLUSION

1. Acceptance of undertakings

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

is considered that

(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 undertakings
being of a transitional nature, therefore, their 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 ceilings to be
applied for the final period, it should be noted that these
have been calculated following the same methodology as
was used to establish the quantitative ceilings for the
original period (however, unlike in the original period
when deductions from the traditional volumes were
made to take account of abnormal
import volumes
prior
to enlargement, no such adjustments will be
made for determining the quantitative ceilings for the
final period). Nevertheless, given the trend of increased
consumption for this product in the EU-10, a growth
factor has been taken into account when establishing
the quantitative ceilings for the final period for each
exporting producer benefiting from an undertaking.

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Official Journal of the European Union

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(15)

In conformity with Regulation (EC) No 993/2004, the
undertakings oblige each individual producing exporter
to respect MIPs within framework of
import ceilings
and in order that the undertakings can be monitored,
the exporting producers concerned have also agreed to
broadly respect their traditional selling patterns to indi-
vidual customers in the EU-10. The exporting producers
are also aware that if it is found that these sales patterns
change significantly, or that the undertakings become in
the
any way difficult or
Commission is entitled to withdraw acceptance of the
company’s undertaking resulting in definitive
anti-
dumping duties being imposed in its place, or it may
adjust
the ceiling, or it may take other
remedial action.

to monitor,

the level of

impossible

(16)

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

(17)

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

tional circumstances under which the undertakings were
accepted, revision of the MIP levels at the present time is
not considered to be appropriate.

3. Disclosure to interested parties

(20) All interested parties which had previously made them-
selves known were advised of the intention to accept
undertakings. The Community Industry producers’ asso-
ciation stated that it would not oppose such acceptance
for a further period provided that this did not adversely
affect its situation. A national producer organisation in
Poland echoed, however, the views of certain Member
States that the level of the MIPs should be raised since
the price levels established did not allow its producers to
cover their costs. However, for the reasons stated in the
previous recital, revision of the MIPs is not considered to
be appropriate at the present time.

(21) One

producer

exporting

the
to the
intended
Commission that
Community via its newly established related trading
company in Switzerland.

to export

in Russia

advised

it

(18)

(19)

relevant

In order that the Commission can monitor effectively the
companies’ compliance with the undertakings, when the
request for release for free circulation pursuant to an
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 Regu-
lation (EC) No 993/2004. This level of information is
authorities
also necessary
to
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

to enable

customs

2. Consultation of Member States

In conformity with recital 15 of Regulation (EC) No
1001/2004, Member States were consulted on the
proposal
to accept undertakings for a further period.
Certain Member States considered that the level of the
MIPs should be raised. It should be recalled, however,
that these undertakings are not equivalent to an anti-
dumping duty since the MIPs established are at lower
levels than would usually be the case. Rather,
they
serve as a ‘safety net’ below which, prices in the EU-10
should not
this and the short-term
character of the undertakings, together with the excep-

In view of

fall.

(22) No other comments were received which caused the

Commission to alter its views on the matter.

D. REGISTRATION OF IMPORTS

(23)

concerned, originating in Russia

In Regulation (EC) No 1001/2004, customs authorities
were directed to register imports into the Community of
and
the product
Ukraine, exported by the companies from which under-
takings were accepted and for which an exemption from
the anti-dumping duties imposed by Regulation (EC)
No 132/2001 and by Regulation (EC) No 658/2002, as
amended by Regulation (EC) No 993/2004, was sought.

(24) As acceptance of the undertakings for the original period
commencing 21 May 2004, and as acceptance of the
undertakings for the final period will follow on directly
from the original period, these two periods are to be
regarded as one continuous period.
In accordance,
however, with Article 14(5) of the basic Regulation, the
registration is nine months;
maximum period for
therefore
such
should register
imports only until 20 February 2005,

authorities

customs

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Official Journal of the European Union

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HAS ADOPTED THIS REGULATION:

Article 1

1.
The undertakings offered by the exporting producers mentioned below, in connection with the anti-
dumping proceeding concerning imports of ammonium nitrate originating in Ukraine and the Russian
Federation are hereby accepted.

Country

Ukraine

Russian Federation

Russian Federation

Company

TARIC additional code

Produced and exported by OJSC ‘Azot’, Cherkassy,
Ukraine to its
in the
Community acting as an importer

independent customer

first

Produced by OJSC MCC Eurochem, Moscow, Russia at
its production facilities of
JSC Nak Azot, Novo-
moskovsk, Russia and sold by Cumberland Sound
Ltd, Tortola, British Virgin Islands or EuroChem
Trading Gmbh, Zug, Switzerland to the first
inde-
pendent customer in the Community acting as an
importer

Produced and exported by Joint Stock Company
‘Acron’, Veliky Novgorod, Russia or
Joint Stock
Verkhnedneprovsky,
Company
independent
Smolensk Region, Russia to the first
customer in the Community acting as an importer

‘Dorogobuzh’

A521

A522

A532

2.
Customs authorities are hereby directed, pursuant to Article 14(5) of Regulation (EC) No 384/96 to
continue to take the appropriate steps to register until 20 February 2005 imports into the Community of
ammonium nitrate originating in the Russian Federation or Ukraine falling within CN codes 3102 30 90
and 3102 40 90 produced and sold or produced and exported by the companies listed in paragraph 1.

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

Article 2

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 November 2004.

For the Commission

Pascal LAMY
Member of the Commission