Council Regulation (EC) No 2053/2004 of 22 November 2004 extending the definitive anti-dumping duty imposed by Regulation (EC) No 964/2003 on imports of tube or pipe fittings, of iron or steel, originating in the People's Republic of China to imports of tube or pipe fittings, of iron or steel, consigned from Sri Lanka, whether declared as originating in Sri Lanka or not
Date: 2004-11-22
Institutions: Council of the European Union
Subjects: China, Sri Lanka, anti-dumping duty, metal product, piping

1.12.2004

EN

Official Journal of the European Union

L 355/9

COUNCIL REGULATION (EC) No 2053/2004

of 22 November 2004

extending the definitive anti-dumping duty imposed by Regulation (EC) No 964/2003 on imports of
tube or pipe fittings, of iron or steel, originating in the People's Republic of China to imports of
tube or pipe fittings, of iron or steel, consigned from Sri Lanka, whether declared as originating in
Sri Lanka or not

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 (1)
(the basic Regulation), 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

(1)

(2)

the Council

inter alia, definitive

imposed by
Following an expiry review,
Regulation (EC) No 964/2003 (2)
(the original Regu-
anti-dumping duties of
lation),
58,6 % on imports of tube or pipe fittings (other than
cast fittings, flanges and threaded fittings) of iron or steel
(not including stainless steel), with a greatest external
diameter not exceeding 609,6 mm, of a kind used for
butt-welding or other purposes, falling within CN codes
7307 93 11 99),
ex 7307 93 11
7307 93 19 99),
ex 7307 93 19
ex 7307 99 30
and
ex 7307 99 90 (TARIC code 7307 99 90 98) and origi-
nating in the People's Republic of China (PRC).

7307 99 30 98)

(TARIC
(TARIC

(TARIC code

code
code

2. Request

On 20 January 2004, the Commission received a request
the basic Regulation to
pursuant
investigate
anti-
dumping measures imposed on imports of tube or pipe

alleged circumvention of

to Article 13(3) of

the

the

(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 139, 6.6.2003, p. 1. Regulation as last amended by Regulation

(EC) No 1496/2004 (OJ L 275, 25.8.2004, p. 1).

(3)

(4)

(5)

(6)

fittings originating in the PRC. The request was submitted
the Steel Butt-Welding
by the Defence Committee of
Fittings Industry of the European Union on behalf of
four Community producers.

The request alleged that there had been a change in the
pattern of trade following the imposition of the anti-
dumping measures on imports of tube or pipe fittings
originating in the PRC, as shown by a significant increase
in imports of the same product from Sri Lanka.

This change in the pattern of trade was alleged to stem
from the transhipment of tube or pipe fittings originating
in the PRC via Sri Lanka. It was further alleged that there
was insufficient due cause or economic justification for
these practices other than the existence of
the anti-
dumping duties on tube or pipe fittings originating in
the PRC.

Finally, the applicant alleged that the remedial effects of
the existing anti-dumping duties on tube or pipe fittings
originating in the PRC were being undermined both in
terms of quantities and prices and that dumping was
taking place in relation to the normal values previously
established for the tube or pipe fittings originating in the
PRC.

3. Initiation

The Commission, by Regulation (EC) No 395/2004 (3)
(the initiating Regulation) initiated an investigation into
the alleged circumvention of the anti-dumping measures
imposed on imports of tube or pipe fittings originating
in the PRC by imports of tube or pipe fittings consigned
from Sri Lanka, whether declared as originating in Sri
Lanka or not and pursuant to Articles 13(3) and 14(5)
of the basic Regulation, directed the customs authorities
to register imports of tube or pipe fittings consigned
from Sri Lanka, whether declared as originating in Sri
Lanka or not, under CN codes ex 7307 93 11 (TARIC
ex 7307 93 19 (TARIC code
code 7307 93 11 94),
7307 93 19 94),
code
(TARIC code
7307 99 30 94)
7307 99 90 94)
The
Commission advised the authorities of the PRC and Sri
Lanka of the initiation of the investigation.

ex 7307 99 90
from 4 March

ex 7307 99 30

and
as

(TARIC

2004.

(3) OJ L 65, 3.3.2004, p. 7.

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Official Journal of the European Union

1.12.2004

4. Investigation

2. Product concerned and like product

(7)

(8)

(9)

Questionnaires were sent to the producers/exporters in
the PRC (there were no known producers in Sri Lanka) as
well as to importers in the Community named in the
request or known to the Commission from the investi-
gation which lead to the imposition of
the existing
measures on imports of tube or pipe fittings originating
in the PRC (the previous investigation). Interested parties
were given the opportunity to make their views known
in writing and to request a hearing within the time limit
set in the initiating Regulation.

No producer or exporter in the PRC submitted a reply to
the questionnaire and no reply to the questionnaire was
submitted by any importer
in the Community. No
producers or exporters in Sri Lanka made themselves
known or submitted questionnaire replies.

5. Investigation period

The investigation period covered the period from 1
January 2003 to 31 December 2003 (the IP). Data
from 2000 up to the end of the IP were used to inves-
tigate the change in the pattern of trade.

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(a) Sri Lanka

Sri

the

Lanka

informed

authorities of

(10) No producers or exporters of tube or pipe fittings origi-
nating in Sri Lanka cooperated in the investigation. In
fact,
the
Commission that no Sri Lankan companies were
registered as manufacturers of tube or pipe fittings as
defined in the initiating Regulation. The only feedback
received from importers was statements that they did not
import tube or pipe fittings from Sri Lanka. It was made
clear to importers and to the authorities of Sri Lanka that
non-cooperation might lead to the application of Article
18 of the basic Regulation. These parties were also made
aware of the consequences of non-cooperation.

(b) PRC

(11) No Chinese producers or exporters cooperated in the

investigation.

(12)

It was made clear to these companies that non-coop-
eration might lead to the application of Article 18 of
the basic Regulation. These parties were also made
aware of the consequences of non-cooperation.

(13)

(14)

The product concerned by the alleged circumvention is
tube or pipe fittings (other than cast fittings, flanges and
threaded fittings) of iron or steel (not including stainless
steel), with a greatest external diameter not exceeding
609,6 mm, of a kind used for butt-welding or other
classifiable within CN codes
purposes,
7307 93 11 94),
ex 7307 93 11
7307 93 19 94),
ex 7307 93 19
ex 7307 99 30
and
ex 7307 99 90 (TARIC code 7307 99 90 94).

7307 99 30 94)

(TARIC
(TARIC

(TARIC code

code
code

currently

In the absence of cooperation by any parties in Sri Lanka
and considering the change in the pattern of trade as
described in the following section,
it must be inferred,
in the absence of any contrary evidence, that the tube or
pipe fittings exported to the Community from the PRC
and those consigned from Sri Lanka have the same basic
physical and chemical characteristics and have the same
uses. They are therefore to be considered as like products
within the meaning of Article 1(4) of the basic Regu-
lation.

3. Change in the pattern of trade

(15) As stated in recital 4, the change in the pattern of the
trade was alleged to stem from transhipment via Sri
Lanka.

(16) As no Sri Lankan company cooperated in the investi-
gation, exports from Sri Lanka to the Community had
to be established on the basis of
the facts available,
pursuant to Article 18 of the basic Regulation. Eurostat
data, which were the most appropriate information
available, were therefore used to establish the export
prices and quantities from Sri Lanka to the Community.

(17)

Imports of tube or pipe fittings from Sri Lanka increased
from 0 tonnes in 2000 to 302 tonnes in the IP. These
imports from Sri Lanka commenced in July 2002, at a
time when the previous
investigation was ongoing.
Imports into the Community of tube or pipe fittings
from the PRC increased from 44 tonnes in 2000 to
287 tonnes in the IP. However, this increase in exports
from the PRC must be read together with the level of
exports achieved in the period under consideration in the
original
to Regulation (EC) No
584/96 (1). Indeed, the volume of the Chinese exports
in the IP amounted to less than 10 % of the volume
exported in the period under consideration in the
original investigation. In the light of the above, and in
the absence of any contrary evidence, it was found that
imports consigned from Sri Lanka were compensating
for some of the previous imports from the PRC.

investigation pursuant

(1) OJ L 84, 3.4.1996, p. 1. Regulation as last amended by Regulation

(EC) No 778/2003 (OJ L 114, 8.5.2003, p. 1).

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Official Journal of the European Union

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(18)

it is concluded that there has
From the figures above,
been a clear change in the pattern of
trade which
started with the previous investigation leading to the
imposition of the existing measures on imports of the
product concerned originating in the PRC and developed
rapidly after the imposition of these measures.

(19)

4. Insufficient due cause or economic justification

In the absence of cooperation by any parties in Sri Lanka
or the PRC and of any contrary evidence, it is concluded
that, given the coincidence in time with the previous
the
investigation which led to the
existing measures, the change in the pattern of trade
stemmed from the existence of the anti-dumping duty
imposed on imports of
the product concerned origi-
nating in the PRC rather than from any other sufficient
due cause or economic justification within the meaning
of Article 13(1) of the basic Regulation.

imposition of

prices of the Community industry. It has been established
that prices of imports from Sri Lanka were more than
12 % lower than the Chinese export prices during the IP.

(23) On the basis of the above, it is concluded that the change
in trade flows, together with the abnormally low prices
of exports from Sri Lanka have undermined the remedial
effects of the anti-dumping measures in terms of the
quantities and prices of the like products.

6. Evidence of dumping in relation to the normal
values previously established for like or similar
products

(24)

In order to determine whether evidence of dumping
could be found with respect to the product concerned
exported to the Community from Sri Lanka during the
IP, export prices established on the basis of Eurostat data
were used pursuant to Article 18 of the basic Regulation.

(20)

It
is therefore concluded that no reasonable grounds
other than avoiding the existing anti-dumping duties
on imports of tube or pipe fittings originating in the
PRC can be established for the change in the pattern
of trade observed.

(25) Article 13(1) of the basic Regulation requires evidence of
dumping in relation to the normal values previously
established for
In the
previous investigation, Thailand was found to be an
appropriate market economy analogue country for the
PRC for the purpose of establishing normal value.

similar products.

the like or

5. Undermining of the remedial effects of the duty
in terms of the prices and/or the quantities of the
like products

(26)

(21)

that

the Community

it was
Based on the trade flow analysis made above,
found that a change in the pattern of Community
imports was linked to the fact
there were anti-
dumping measures in place. Imports declared as origi-
nating in Sri Lanka were absent from the Community
market until June 2002. After said date imports declared
as originating in Sri Lanka
substantially increased,
amounting to 302 tonnes during the IP. This volume
represents 0,6 % of
consumption
during the IP of the previous investigation. Attention
must be paid to the fact that imports of the product
concerned into the Community are very fragmented
In
among a number of different exporting countries.
particular,
total
the product concerned into the
import volumes of
exporting country
Community, whereas
the
during said year (the Slovak Republic) held 12 %.
In
addition, Sri Lanka is the 12th largest exporter of the
product concerned to the Community, out of a list of
36 exporting countries.

for the IP, Sri Lanka held 2,5 % of

largest

For the purpose of a fair comparison between the normal
value and the export price, due allowance, in the form of
adjustments, was made for differences which affect prices
and price comparability. These adjustments were made in
accordance with Article 2(10) of the basic Regulation in
In the absence of
respect of transport and insurance.
other
the data
contained in the request was used.

information relating to these factors,

(27)

the

In accordance with Articles 2(11) and 2(12) of the basic
Regulation,
comparison of a weighted average
normal value as established in the previous investigation
and the weighted average of export prices during this
investigation's IP, expressed as a percentage of the cif
price at the Community frontier, duty unpaid, showed
tube or pipe fittings
dumping for
consigned from Sri Lanka. The dumping margin found,
expressed as a percentage of
the
Community frontier, duty unpaid, was 34,3 %.

the cif price at

the imports of

(22) With regard to prices of the products consigned from Sri
Lanka and in the absence of cooperation and of any
contrary evidence, Eurostat data revealed that average
export prices of imports from Sri Lanka during the IP
were lower than (i) the average export prices established
for the PRC in the previous investigation; and (ii) the

C. MEASURES

(28)

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 imports of
the
product concerned originating in the PRC should be
extended to the same product consigned from Sri
Lanka, whether declared as originating in Sri Lanka or
not.

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Official Journal of the European Union

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(29)

The duty extended should be the one established in
Article 1(2) of the original Regulation.

HAS ADOPTED THIS REGULATION:

(30)

(31)

In accordance with Articles 13(3) and 14(5) of the basic
Regulation, which provides that any extended measures
are to be applied against registered imports from the date
of registration, the anti-dumping duty should be collected
on imports of tube or pipe fittings consigned from Sri
Lanka which entered the Community under registration
imposed by Article 2 of the initiating Regulation.

consider

they are not

The circumvention takes place outside the Community.
the basic Regulation aims to counter
Article 13 of
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
establish that
they are not involved in circumvention
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 might
an
exemption from the extended anti-dumping duty would
be required to complete a questionnaire in order to
enable
an
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, 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-spot verification visit. The request would
have to be addressed to the Commission forthwith,
with all relevant information,
in particular any modifi-
cation in the company's activities linked to production
and sales.

the Commission to determine whether

lodging

request

for

a

(32)

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.

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

(34)

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. No
comments which were of a nature to change the above-
mentioned conclusions were received,

Article 1

(TARIC

ex 7307 93 19

7307 93 11 99),

1.
The definitive anti-dumping duty imposed by Regulation
(EC) No 964/2003 on imports of tube or pipe fittings (other
than cast fittings, flanges and threaded fittings) of iron or steel
(not including stainless steel), with a greatest external diameter
not exceeding 609,6 mm, of a kind used for butt-welding or
other purposes, falling within CN codes ex 7307 93 11 (TARIC
code
code
7307 93 19 99), ex 7307 99 30 (TARIC code 7307 99 30 98)
and ex 7307 99 90 (TARIC code 7307 99 90 98) and origi-
nating in the People's Republic of China is hereby extended
to imports of tube or pipe fittings (other than cast fittings,
flanges and threaded fittings) of iron or steel
(not including
stainless steel), with a greatest external diameter not exceeding
609,6 mm, of a kind used for butt-welding or other purposes,
currently classifiable within CN codes ex 7307 93 11 (TARIC
code
code
7307 93 19 94), ex 7307 99 30 (TARIC code 7307 99 30 94)
and ex 7307 99 90 (TARIC code 7307 99 90 94) consigned
from Sri Lanka, whether declared as originating in Sri Lanka
or not.

7307 93 11 94),

ex 7307 93 19

(TARIC

2.
The duty extended by paragraph 1 shall be collected on
imports registered in accordance with Article 2 of Regulation
(EC) No 395/2004 and Articles 13(3) and 14(5) of Regulation
(EC) No 384/96.

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
to the
the applicant. The request must be sent
represent
following address:

European Commission
Directorate-General for Trade
Directorate B
J-79 5/16
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 964/2003 from the duty
extended by Article 1 of this Regulation.

consulting

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Official Journal of the European Union

L 355/13

Article 3

Article 4

Customs authorities are hereby directed to discontinue the regis-
tration of imports established in accordance with Article 2 of
Regulation (EC) No 395/2004.

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, 22 November 2004.

For the Council
The President

B. R. BOT