Council Regulation (EC) No 2052/2004 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 Indonesia, whether declared as originating in Indonesia or not
Date: 2004-11-22
Institutions: Council of the European Union
Subjects: China, Indonesia, anti-dumping duty, metal product, piping

L 355/4

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Official Journal of the European Union

1.12.2004

COUNCIL REGULATION (EC) No 2052/2004

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 Indonesia, whether declared as originating in
Indonesia 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)

Following an expiry review, by Regulation (EC) No
964/2003 (2)
the Council
(the original Regulation),
inter alia, definitive anti-dumping duties of
imposed,
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

(TARIC
(TARIC

code
code

(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. 3).

and
ex 7307 99 30
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 code

(2)

(3)

(4)

2. Initiation

The Commission had at its disposal sufficient prima facie
evidence that the anti-dumping measures on imports of
certain tube or pipe fittings originating in the PRC were
being circumvented by means of
transhipment and
incorrect declaration of origin via Indonesia. Sufficient
evidence for the opening of the proceeding concerning
Indonesia could only be obtained by the Commission, by
an inquiry with the customs authorities of a Member
State, which showed that the goods were not originating
in Indonesia. Therefore,
the Commission decided to
initiate on its own initiative an investigation according
to Article 13 of the basic Regulation.

Pursuant to some investigations carried out during 2003
by the customs authorities of one Member State, prima
facie evidence was obtained, which showed in particular
that regarding imports into that Member State, practices
had been detected of shipments declared as originating in
Indonesia, which had in fact been shipped and origi-
nating from the PRC. According to Eurostat data,
imports declared as originating from Indonesia into this
Member State represented two thirds of imports declared
as originating in Indonesia into the Community during
2003. The significant increase of imports, following the
imposition of the anti-dumping measures on imports of
tube or pipe fittings originating in the PRC appeared to
constitute a change in the pattern of trade, for which
there was insufficient due cause or economic justification
other than the existence of the anti-dumping duties on
tube or pipe fittings originating in the PRC.

it appeared that

fittings originating

the remedial effects of

the
Finally,
tube or
existing anti-dumping duties on imports of
pipe
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.

in the

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Official Journal of the European Union

L 355/5

(5)

(6)

(7)

in Indonesia or not

The Commission therefore initiated on its own initiative
an investigation by Regulation (EC) No 396/2004 (1) (the
initiating Regulation) 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 Indonesia, whether
declared as originating
and
pursuant to Articles 13(3) and 14(5) of the basic Regu-
to register
lation, directed the
consigned from
imports of
Indonesia, whether declared as originating in Indonesia
or not, under CN codes ex 7307 93 11 (TARIC code
code
ex 7307 93 19
7307 93 11 93),
7307 93 19 93),
code
ex 7307 99 30
ex 7307 99 90
and
(TARIC code
7307 99 30 93)
7307 99 90 93)
The
from 4 March
as
Commission advised the authorities of
the PRC and
Indonesia of the initiation of the investigation.

(TARIC
(TARIC

tube or pipe

authorities

customs

fittings

2004.

3. Investigation

Questionnaires were sent to producers and exporters in
the PRC (there was no known producer in Indonesia) as
well as to importers in the Community known to the
Commission from the investigation which led 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 oppor-
tunity to make their views known in writing and to
request a hearing within the time limit set
in the
initiating Regulation.

(9)

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(a) Indonesia

No producers or exporters of tube or pipe fittings origi-
nating in Indonesia cooperated in the investigation. The
authorities of Indonesia did not supply any additional
information.
It was made clear to the authorities of
Indonesia that non-cooperation may lead to the appli-
cation of Article 18 of
the basic Regulation. Three
unrelated importers supplied a questionnaire reply. One
importer, who had submitted a response to the ques-
tionnaire where necessary information for ascertaining
the existence of circumvention lacked, did not clarify
the deficiencies pointed out by the Commission in a
deficiency letter as a reaction to its initial questionnaire
reply and was therefore declared non-cooperating. The
imports of the two other importers represented 5,5 %
imports declared as originating in Indonesia
of
during the IP. Overall,
it can therefore be concluded
that there was no cooperation from producers and very
low cooperation from importers.

total

(b) PRC

(10) No Chinese producers or exporters cooperated in the

investigation.

(11)

It was made clear to these non-cooperating companies
that non-cooperation may lead to the application of
Article 18 of the basic Regulation.

2. Product concerned and like product

No producer or exporter in the PRC submitted a reply to
the questionnaire and no producers or exporters in
Indonesia made themselves known or submitted ques-
to the questionnaire
tionnaire replies. Three replies
in
unrelated
were
the
by
submitted
Community. One of
further
the importers did not
cooperate.

importers

(12)

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 93),
ex 7307 93 11
7307 93 19 93),
ex 7307 93 19
ex 7307 99 30
and
ex 7307 99 90 (TARIC code 7307 99 90 93).

7307 99 30 93)

(TARIC
(TARIC

(TARIC code

code
code

currently

4. Investigation period

(8)

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

(1) OJ L 65, 3.3.2004, p. 10.

(13) Given the very low level of cooperation it must be
inferred that the tube or pipe fittings exported to the
Community from the PRC and those consigned from
Indonesia have the same basic physical and chemical
characteristics
same uses. They are
the
therefore to be considered as like products within the
meaning of Article 1(4) of the basic Regulation.

and have

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3. Change in the pattern of trade

(18)

(14) As already stated the prima facie evidence suggested that
the change in the pattern of trade stemmed from trans-
hipment and an incorrect declaration of origin of the
product, as imports were declared as originating in
Indonesia, whereas evidence existed that
the goods
originated in the PRC.

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

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

(15) As no Indonesian company cooperated in the investi-
gation, exports from Indonesia 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 in such a situation, were therefore used to
establish
from
prices
Indonesia to the Community.

quantities

export

and

the

(16)

in the

imports

IP. These

Imports of tube or pipe fittings declared as originating in
Indonesia increased from 0 tonnes in 2000 to 866
tonnes
from Indonesia
commenced in January 2002, at a time when the
Imports into the
previous investigation was ongoing.
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 of the original investi-
gation (1). Indeed, the volume of the Chinese exports in
the volume
the IP amounted to less than 10 % of
exported in the period under consideration of
the
original investigation. In the light of the above, and in
the absence of any contrary evidence, it was found that
imports consigned from Indonesia were compensating
for some of the previous imports from the PRC.

(17)

4. Insufficient due cause or economic justification

In the absence of cooperation by any parties in Indonesia
and the PRC, and of any contrary evidence,
is
concluded that, given the coincidence in time with the
previous investigation which led to the imposition of the
existing measures, the change in the pattern of trade
stemmed from the existence of the anti-dumping 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.

it

(1) Regulation (EC) No 584/96 (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).

(19)

that

Based on the trade flow analysis made above,
it was
found that a change in the pattern of Community
imports is linked to the fact
there were anti-
dumping measures in place. Imports declared as origi-
the Community
nating in Indonesia were absent of
January 2002. After said date imports
market until
declared
substantially
in
originating
as
increased, amounting to 866 tonnes during the IP. This
volume represents 1,7 % of the Community consumption
during the IP of the previous investigation.

Indonesia

(20) With regard to prices of the products consigned from
Indonesia and in the absence of cooperation from
exporters and of any contrary evidence, Eurostat data
revealed that average export prices
from Indonesia
during the IP were even lower than the average export
prices established for the PRC in the previous investi-
gation and therefore lower
the
than the prices of
It has been established that
Community industry.
during the IP average export prices from Indonesia
were around 34 % below the average export prices
from the PRC.

(21) On the basis of the above, it is concluded that the change
in trade flows, together with the abnormally low prices
of exports from Indonesia 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

(22)

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

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(23) 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 the
appropriate market economy analogue country for the
PRC for the purpose of establishing normal value.

similar products.

the like or

(24)

(25)

(26)

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
used in the previous investigation was used.

information relating to these factors,

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
dumping for
tube or pipe fittings
consigned from Indonesia. The dumping margin found,
expressed as a percentage of
the
Community frontier duty unpaid, was 60,5 %.

the cif price at

the imports of

C. 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 imports of
the
product concerned originating in the PRC should be
extended
from
Indonesia, whether declared as originating in Indonesia
or not.

consigned

product

same

the

to

(27)

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

(28)

In accordance with Articles 13(3) and 14(5) of the basic
Regulation, which provides that any extended measures
shall 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
Indonesia which entered the Community under regis-
tration imposed by the initiating Regulation.

(29)

The circumvention takes place outside the Community.
the basic Regulation aims to counter
Article 13 of
affecting operators
circumvention practices without

a

request

lodging

they are not

involved in such
which can prove that
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 would consider
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 and sales and the
likelihood 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,
in particular any modifi-
with all relevant information,
cation in the company's activities linked to production
and sales.

the Commission to determine whether

for

(30)

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.

(31) Where an exemption is warranted,

the Commission
should, after consultation of the Advisory Committee,
propose the amendment of this Regulation accordingly.
Subsequently,
be
exemptions
monitored to ensure compliance with the conditions
set therein.

granted

should

any

D. PROCEDURE

(32)

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,

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HAS ADOPTED THIS REGULATION:

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 (PRC)
is hereby
extended to imports of tube or pipe fittings (other than cast
fittings,
(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 7307 93 11 93), ex 7307 93 19 (TARIC code
7307 93 19 93), ex 7307 99 30 (TARIC code 7307 99 30 93)
and ex 7307 99 90 (TARIC code 7307 99 90 93) consigned
from Indonesia, whether declared as originating in Indonesia
or not.

flanges and threaded fittings), of

iron or steel

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 shall 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

consulting

Commission,

the Advisory
2.
Committee, may authorise, by decision,
the exemption of
imports from companies which do not circumvent the anti-
dumping duty imposed by Regulation (EC) No 964/2003
from the duty extended by Article 1, and propose the
amendment of the Regulation accordingly.

Article 3

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 396/2004 and Articles 13(3) and 14(5) of
Regulation (EC) No 384/96.

Customs authorities are hereby directed to discontinue the regis-
tration of imports, established in accordance with Article 2 of
Regulation (EC) No 396/2004.

Article 4

The provisions in force concerning customs duties shall

3.
apply.

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