Council Regulation (EC) No 2074/2004 of 29 November 2004 imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms originating in the People's Republic of China
Date: 2004-11-29
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, import, office supplies, originating product

4.12.2004

EN

Official Journal of the European Union

L 359/11

COUNCIL REGULATION (EC) No 2074/2004

of 29 November 2004

imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms originating
in the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

upwards by Council Regulation (EC) No 2100/2000 (3) to
51,2 % for WWS and to 78,8 % for all other companies
in the PRC.

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 11(2) thereof,

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

Whereas:

A. PROCEDURE

1. Measures in force

(1)

(2)

In January 1997, Council Regulation (EC) No 119/97 (2)
imposed a definitive anti-dumping duty on imports of
certain ring binder mechanisms (‘RBM’) originating, inter
alia, in the People's Republic of China (‘PRC’ or ‘country
concerned’). The rate of the definitive duty applicable to
the net,
free-at-Community-frontier price, before duty,
was 32,5 % for World Wide Stationery Mfg (‘WWS’), a
company which was granted individual treatment and
39,4 % for all other companies in the PRC. These rates
of duty were applicable to RBM other than those with 17
or
8305 10 00 11,
8305 10 00 12 and 8305 10 00 19), while RBM with
17 and 23 rings
(TARIC codes 8305 10 00 21,
8305 10 00 22 and 8305 10 00 29) were subject to a
duty equal
to the difference between the minimum
import price (‘MIP’) of EUR 325 per 1 000 pieces and
duty,
the
whenever the latter was lower than the MIP.

free-at-Community-frontier

(TARIC

before

codes

price,

rings

23

following a request

for an anti-
In September 2000,
absorption review of
the abovementioned measures,
lodged pursuant to Article 12 of the basic Regulation,
the rates of duty applicable to RBM other than those
with 17 or 23 rings (TARIC codes 8305 10 00 11,
revised
8305 10 00 12

8305 10 00 19) were

and

(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 22, 24.1.1997, p. 1.

(3)

(4)

(5)

Anti-dumping and countervailing measures are in force
since June 2002 on imports of RBM originating in
Indonesia. These measures, which are not subject to the
current review, were imposed by Council Regulation (EC)
No 976/2002 and Council Regulation (EC) No 977/2002
of 4 June 2002 (4), respectively.

Following
alleged
an investigation concerning
circumvention of anti-dumping measures imposed by
Council Regulation (EC) No 119/97 by imports of
the measures were
RBM consigned from Vietnam,
extended to imports
consigned from Vietnam by
Council Regulation (EC) No 1208/2004 (5).

the

An investigation concerning the alleged circumvention of
anti-dumping measures imposed by Council Regulation
(EC) No 119/97 by imports of RBM consigned from
Thailand, whether declared as originating in Thailand
or not, was initiated in April 2004 (6).

(6)

Both investigations mentioned in the previous
two
recitals were independent of the results of the present
investigation.

2. Request for a review

(7)

the anti-dumping measures

impending
Following the publication of a notice of
in force on
expiry of
imports of certain RBM originating in the PRC (7), the
Commission received, on 23 October 2001, a request
to review these measures pursuant to Article 11(2) of
the basic Regulation.

(3) OJ L 250, 5.10.2000, p. 1.
(4) OJ L 150, 8.6.2002, p. 1 and p. 17.
(5) OJ L 232, 1.7.2004, p. 1.
(6) OJ L 127, 29.4.2004, p. 67.
(7) OJ C 122, 25.4.2001, p. 2.

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The request was lodged by two Community producers,
Koloman Handler AG and Krause Ringbuchtechnik
GmbH (‘the applicants’), representing a major proportion
of the total Community production of RBM. The request
the
was based on the grounds
measures would be likely to result in higher volumes
of injurious dumped imports originating in the PRC.

the expiry of

that

after

determined,
that

the Advisory
Having
Committee,
the
initiation of a review pursuant to Article 11(2) of the
basic Regulation, the Commission initiated a review (1).

consulting
sufficient evidence existed for

3. Investigation

Community interest was sought and verified. Verification
visits were carried out at the premises of the following
companies:

(i) A p p l i c a n t C o m m u n i t y p r o d u c e r s

— Krause Ringbuchtechnik GmbH,

Espelkamp,

Germany

— SX Bürowaren Produktions- und Handels GmbH
(until November 2001 RBM had been manu-
factured by Koloman Handler AG), Vienna,
Austria (see recital (50)),

(a) Procedure

(ii) P r o d u c e r

i n t h e e x p o r t i n g c o u n t r y

(8)

(9)

(10)

the

advised

officially

exporting

representatives of

exporting
The Commission
producers, importers and users known to be concerned,
the
the
the
applicant Community producers and the other known
Community producer of
the expiry
review. Interested parties were given the opportunity to
make their views known in writing and to request a
hearing within the time limit set out in the notice of
initiation.

the initiation of

country,

(11) All parties who so requested within the above time limit
and who demonstrated that there were particular reasons
why they should be heard were granted the opportunity
to be heard.

(12) Questionnaires were sent

to all

the parties that were
officially advised of the initiation of the review and to
those who requested a questionnaire within the time
limit set out in the notice of initiation. In addition, one
producer in India (analogue country) was contacted and
received a questionnaire.

(13)

Replies to the questionnaires were received from the two
applicant Community producers and one exporting
producer in the country concerned, as well as from
and two
in the
one producer
unrelated importers in the Community.

analogue

country

(14) All parties concerned were informed of the essential facts
and considerations on the basis of which it was intended
to recommend the imposition of definitive anti-dumping
duties. They were granted a period within which to make
representations subsequent to disclosure. The comments
of the parties were considered and where appropriate, the
findings have been modified accordingly.

(b) Interested parties and verification visits

(15) All the information deemed necessary for the purpose of
the likelihood of a continuation or
the
injury

determination of
recurrence

dumping

and

and

of

of

(1) OJ C 21, 24.1.2002, p. 25.

— World Wide Stationery Mfg, Hong Kong, PRC

(iii) P r o d u c e r

i n t h e a n a l o g u e c o u n t r y

— Tocheunglee

Chennai, India

Stationery Manufacturing

Co,

(iv) U n r e l a t e d i m p o r t e r

i n t h e C o m m u n i t y

— Bensons International Systems B.V., Utrecht, the

Netherlands

(c) Investigation period

The investigation on the likelihood of a continuation or
recurrence of dumping covered the period from 1
January 2001 to 31 December 2001 (‘investigation
period’ or ‘IP’). The examination of trends relevant for
the assessment of the likelihood of a continuation or
recurrence of injury covered the period from 1 January
1998 up to the end of the IP (‘period considered’).

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

The product concerned is the same as in the original
investigation,
i.e. certain ring binder mechanisms made
of two rectangular steel sheets or wires with at least four
half-rings made of steel wire fixed on them and which
are kept together by a steel cover. They can be opened
either by pulling the half-rings or with a small steel-made
trigger mechanism fixed to the RBM. The rings can have
different shapes, the most common ones being round
and D-shaped. RBM are currently classified within CN
code
ex 8305 10 00 (TARIC codes 8305 10 00 11,
8305 10 00 12 and 8305 10 00 19 for mechanisms
than those with 17 or 23 rings and TARIC
other
codes
and
8305 10 00 29 for mechanisms with 17 and 23 rings).
Lever-arch mechanisms (‘LAM’) classified within the same
CN code are not included in the scope of this investi-
gation.

8305 10 00 21,

8305 10 00 22

(16)

(17)

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(18)

RBM are used to make paper, cardboard and plastic-
coated office files, presentation and other bound files.

(19) A large number of different types of RBM were sold in
the Community during the IP. The differences between
these types were determined by the width of the base, the
type of mechanism, the number of rings, the opening
the ring
the nominal paper holding capacity,
system,
the length and the
diameter,
ring spacing. Given the fact
types have the
same basic physical and technical characteristics and
within certain ranges, are interchangeable, it was estab-
lished that all RBM constitute one single product for the
purpose of the present proceeding.

the shape of

the rings,

that all

(20)

(21)

(22)

2. Like product

It was found that RBM produced and sold on the
in the analogue country (India) and
domestic market
those exported to the Community from the PRC had
the same basic physical and technical characteristics
and uses.

It was also found that there was no difference in the
basic physical and technical characteristics and uses
between RBM imported into the Community originating
in the PRC and RBM produced by the Community
industry and sold on the Community market.

It was therefore concluded that RBM produced and sold
on the domestic market in the analogue country, RBM
originating in the PRC exported to the Community and
RBM produced and sold by the Community industry on
the Community market were all like products within the
meaning of Article 1(4) of the basic Regulation.

these

to be
However, one of
involved in circumvention practices via Thailand, which
has been investigated by the European Anti-Fraud Office
(OLAF) (see recitals (42) and (43)).

companies

appears

2. Continuation of dumping

(25)

The volume of export sales of
the sole cooperating
company represented all imports originating in the PRC
during the IP, according to Eurostat. This volume
represents 1,9 % of the total Community consumption
during the IP of
investigation, compared
with 45 % of the total Community consumption during
the IP of the original investigation, i.e. from 1 October
1994 to 30 September 1995.

the current

(a) Methodology

(26)

Compared with the original investigation, only the choice
of analogue country has changed, otherwise the metho-
dology for calculating the dumping margin has remained
the same.

(b) Analogue country

(27)

Since the PRC is an economy in transition, normal value
was determined on the basis of information obtained in
an appropriate market economy third country (the
‘analogue country’) selected in accordance with Article
2(7)(a) of the basic Regulation.

C. LIKELIHOOD OF A CONTINUATION OR

RECURRENCE OF DUMPING

(28)

(23)

In accordance with Article 11(2) of the basic Regulation,
it was examined whether the expiry of
the existing
measures would be likely to lead to a continuation or
recurrence of dumping.

1. Preliminary remarks

(24) Of the three Chinese exporting producers named in the
complaint, only WWS, which was granted individual
treatment in both the original and the anti-absorption
investigations, cooperated. The two other exporting
companies
exported the
product concerned to the Community during the IP.

they had not

stated that

In the

review request,

its domestic market,

In the original
investigation Malaysia was chosen as
analogue country. In view of the fact that production
in Malaysia has ceased and been transferred,
inter alia,
representative country had to be
to India, another
India was
expiry
chosen.
suggested as analogue country for the purpose of estab-
lishing normal value. This choice was not contested. It
was also found that the reasons for selecting India, i.e.
the size of
its
market and its degree of access to basic materials,
ensured normal conditions of competition. The Indian
producer contacted agreed to cooperate and had repre-
sentative domestic sales. This company was related to the
cooperating Chinese exporting producer, but no reasons
were found to consider that this could have an impact on
the determination of normal
in
accordance with Article 2(7)(a) of the basic Regulation,
India was considered to be an appropriate analogue
country for establishing normal value.

value. Therefore,

the openness of

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(c) Normal value

(29) Domestic sales of

in the analogue
the like product
country were found to be profitable and representative
during the IP. Therefore, the normal value was based on
the price paid or payable in the ordinary course of trade
by independent customers in the analogue country, i.e.
India.

(d) Export price

(30)

Since the product concerned was exported to inde-
pendent customers in the Community, the export price
was established in accordance with Article 2(8) of the
basic Regulation,
i.e. on the basis of the export price
actually paid or payable.

(e) Comparison

(31)

(32)

For the purposes of a fair comparison, and in accordance
with Article 2(10) of the basic Regulation, due allowance,
in the form of adjustments, was made for differences in
respect of inland freight, discounts and deferred rebates,
handling
costs,
commissions and insurance which affected prices and
price comparability.

and loading,

and credit

transport

it

respect

should, however, be noted that
In this
following the imposition of anti-dumping measures, the
volume and the variety of the types of RBM exported to
the Community fell sharply. Therefore, the types of the
like product sold on the domestic market of the analogue
country during the IP were comparable with only 10 %
of the types directly exported from the PRC by the sole
cooperating exporting producer. Whereas, in the original
investigation the comparison was based on 75 % of total
sales volume. Indeed, most of the direct exports from the
PRC during the IP of the current investigation covered
‘niche segments’ such as 17 and 23 ring mechanisms
subject to the MIP.

(f) Dumping margin

(33)

In accordance with Article 2(11) of the basic Regulation,
the weighted average normal value was compared with
the weighted average export price, at the same level of
trade. The comparison showed an absence of dumping.

(g) Conclusion on dumping

(34) With regard to dumping practices, no dumping was
the cooperating Chinese exporting
found for WWS,
sales of
producer. However,
WWS direct to the Community during the IP of the
current investigation was significantly smaller than that
identified in the original investigation. The exports direct
from the PRC by WWS were also centred on the top end
of the range of RBM, in particular 17 and 23 ring models

the volume of export

subject to a duty in the form of a MIP (see recital (32)
above). This means,
that hardly any anti-
in effect,
dumping duties were paid on these imports. This result
cannot be compared to the dumping margin calculated
in the original investigation because it was not possible
to calculate a dumping margin for the models of RBM
subject to the anti-dumping duty, which were the models
sold most on the Community market and which were
not exported direct from the PRC during the IP of the
current investigation. Also, in terms of sales volume, a
comparison could only be made between the sales of the
like product sold on the domestic market of the analogue
country and the models that formed 10 % of the sales
from the PRC to the Community. In the light of the
above, it was considered that a clear conclusion on the
continuation of dumping cannot be reached.

3. Recurrence of dumping

(35)

In the absence of a clear conclusion of continuation of
dumping, the question of likelihood of a recurrence of
dumping was investigated.

(36)

(37)

(38)

In this respect, the following elements were analysed: (a)
the spare capacity and investments of
the exporting
Chinese producers; (b) the behaviour of the cooperating
Chinese exporting producer on third country markets; (c)
the structure in volume and prices of the exports of the
product concerned to third countries by the non-coop-
erating companies.

(a) Spare capacity and investments

It is worth recalling that, in the absence of cooperation
from exporting producers other than WWS, no infor-
mation concerning production in the PRC,
spare
production capacity and sales on the Chinese market
was available, except for the cooperating producer.

it

towards any export market,

The production capacity of
the cooperating company
remained stable from 1999 to the IP. However, since
the production of the product concerned fell by 28 %
between 1999 and the IP, it is likely that the cooperating
exporting producer has a significant unused production
capacity, i.e. one third of its total capacity. Consequently,
this producer might quickly increase production and
including the
direct
if measures are allowed to expire.
Community market,
It should also be noted that
the unused production
capacity of the sole cooperating exporting producer is
the Community
able
of
consumption.
It can also be reasonably assumed that
the other Chinese producers also have significant spare
capacities, as overall Chinese exports have decreased and
there is no information showing that capacity in the PRC
has declined.

to meet

roughly

half

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(39)

It is noted that the cooperating company maintained a
high level of investment in machinery and equipment
from 1999 to the IP, although to a gradually decreasing
extent.

Thai origin. The investigations further established that a
substantial part of that traffic was of Chinese non-prefer-
ential origin and thus liable to anti-dumping duties.

(b) Behaviour of the cooperating Chinese exporting producer

(44)

on third country markets

(40)

to

sales

third

countries

Export
the
Community) by the cooperating company decreased by
8 % in volume from 2000 to the IP. Its average export
price to third countries decreased by 12 % during the
same period.

(excluding

(c) Behaviour of non-cooperating Chinese companies (volume

and prices)

exports

and prices of Chinese

(41) With regard to the companies which did not cooperate
in the present investigation, findings had to be based on
facts available in accordance with Article 18 of the basic
Regulation. In the absence of any cooperation, US and
Chinese statistics were consulted in order to establish
volumes
to other
countries. Even if the absolute volume of the Chinese
exports differs according to the source of information,
both statistics confirm that
there was a significant
decrease in RBM exports from China in the period
between 1999 and the IP all over the world. According
to Chinese statistics, the volume of RBM exported in
1999 to the world market was around 662 million
pieces, which decreased to 523 million pieces during
the IP. The average export price, although covering
various product
types with widely differing prices,
remained more or less stable during the same period.
in the absence of infor-
As mentioned in recital (38),
in production
mation on a hypothetical decrease
the non cooperating Chinese exporting
capacity of
producers,
they still have significant
is likely that
unused capacities. In these circumstances, it is reasonable
the anti-dumping measures were
to consider
if
the Community market would
allowed to expire,
become a very attractive
these Chinese
for
exporters, who would then resume their exports to the
Community market in considerable quantities.

target

that

it

and

to the Community

In this respect, it should be noted that the product types
exported via Thailand included the models of RBM sold
most on the Community market during the IP, rather
than the 17 and 23 ring models sold directly from the
PRC. This allowed a comparison to be made using the
models sold most on the Community market. As such, a
comparison was made between RBM exported from
Thailand
a number of
comparable product types sold on the domestic market
of the analogue country. The result should be viewed
with caution, since in the absence of a full investigation
on imports of RBM from Thailand, the calculation could
only be based on a FOB Bangkok price offer provided by
the Community industry for product types exported from
Thailand to the Community during and after the IP.
the
However,
export prices of the RBM exported from Thailand were
lower than the prices on the Indian domestic market, and
therefore it cannot be excluded that these RBM were sold
to the Community at dumped prices.

the calculation appeared to show that

(d) Anti-absorption investigation

(45)

In addition, it should be recalled that in October 2000,
investigation which imposed a
following the original
duty of 32,5 % for WWS and 39,4 % for all other
Chinese companies, an anti-absorption investigation led
to an increase in the level of duty to 51,2 % for WWS
and 78,8 % for all other companies.

(e) Trade defence measures applied by third countries

(46) No third countries apply trade defence measures to

imports of RBM from the PRC.

(42)

Furthermore, it is important to note that OLAF carried
out an investigation to determine whether imported RBM
declared as originating in Thailand did actually originate
in that country or, as it is alleged, were actually of PRC
origin.

(47)

(43)

Investigations
States
concerned have concluded that the RBM were not of

the Member

by OLAF

and

4. Conclusion

The investigation has shown that both the cooperating
exporting producer and most likely also the other two
Chinese exporting producers have considerable spare
the significant decrease in their
capacity in view of
exports from 1999 to the IP. Moreover,
the unused
production capacity of the sole cooperating exporting
producer
the
is
Community consumption.

roughly half of

to meet

able

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Official Journal of the European Union

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(48)

the spare capacity of

The apparent Community consumption in the IP was
around 270 million pieces, of which only 5 million
pieces were declared as originating in the PRC. In the
IP of the original investigation (1 October 1994 to 30
September 1995) Chinese exporting producers exported
126 million pieces to the Community. Therefore, and in
view of
the Chinese exporting
producers, it is likely that imports from the PRC to the
Community market could resume in significant quantities
if the anti-dumping measures were allowed to expire. In
addition to the pressure on the Chinese companies to
export in the light of their huge spare capacity, these
exports will most likely be at dumped prices.
Indeed,
although the comparison for the cooperating company
did not show dumping, this was based on a small sample
not comparable with the calculation of dumping in the
original
investigation. On the other hand, one of the
Chinese companies that did not cooperate in this inves-
tigation exported RBM to the Community market via a
related company located in Thailand. Calculations have
shown the possibility that these sales were at dumped
prices. Therefore it cannot be excluded that only one year
after
an anti-absorption investigation the dumping
practices have continued.

(49)

Based on all these findings and events, it is likely that in
the event of resumption of exports by Chinese exporters
these exports would be priced below the
to the EU,
normal value. Consequently,
it must be expected that,
in the absence of the present duties, the dumping from
China would recur.

D. DEFINITION OF THE COMMUNITY INDUSTRY

(50) During

the

IP RBM were manufactured

in the

Community by the following producers:

— Krause Ringbuchtechnik GmbH, Espelkamp, Germany

— SX Bürowaren Produktions- und Handels GmbH
(until November 2001 RBM had been manufactured
by Koloman Handler AG), Vienna, Austria

— Industria Meccanica Lombarda srl, Offanengo, Italy.

(51)

investigation. The

represented more than 90 % of

The first two producers are the applicants and cooperated
cooperating Community
in the
the total
producers
Community production of RBM in the IP.
It was
therefore considered that these producers represent the
Community industry within the meaning of Articles 4(1)
and 5(4) of the basic Regulation. They are hereinafter
referred to as the ‘Community industry’. After the IP,
these
same
company group, but their production was maintained

two companies became part of

the

in the Community. This company group is unrelated to
the Chinese exporting producers.

(52)

(53)

E. SITUATION ON THE COMMUNITY MARKET

1. Consumption on the Community market

The questionnaire replies of the cooperating Community
producers were used to establish the Community
industry's sales of RBM on the Community market.
Other information available was also used to calculate
the sales of the Community producer not included in
the definition of the Community industry.

For imports originating in the PRC and imports declared
as originating in Thailand, Eurostat figures were used
with the exception of
the figures regarding imports
declared as originating in the PRC in the IP, for which
the information provided by the cooperating Chinese
exporting producer was used.

(54) As to the imports originating in other third countries, the
figures on imports originating in India and Indonesia,
those related to the IP, have
with the exception of
anti-dumping proceeding
been obtained from the
information
concerning these two countries. Eurostat
imports not
was used to calculate the volume of
in previous
available in the questionnaire replies or
proceedings. For imports originating in Hungary,
the
questionnaire reply of one cooperating Community
than
producer was used. For
Hungary and the countries referred to in this recital,
Eurostat information was used. It should also be noted
that Eurostat figures had to be converted from tonnes
into pieces.

third countries other

(55) On this basis,

the apparent Community consumption
decreased by 9 % during the period considered,
from
297 million pieces (figures rounded to the million) in
1998 to 270 million pieces in the IP. The figures for
1999 and 2000 were 306 million pieces and 316
million pieces, respectively.

2. Imports from the country concerned

(a) Import volume and market share

(56)

The imports declared as originating in the PRC decreased
sharply, from 44 million pieces in 1998 to 24 million
pieces in 1999, to 10 million pieces in 2000 and to 5
million pieces in the IP. The market share of the imports
declared as originating in the PRC fell in each year of the
period considered,
from 14,8 % in 1998 to 7,8 % in
1999, to 3 % in 2000 and to 1,9 % in the IP.

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(b) Price evolution of the imports of the product concerned

(b) Stocks

(57)

(58)

The average price of the imports declared as originating
in the PRC increased by 96 % between 1998 (EUR 141)
and the IP (EUR 278). The upward trend of the prices of
imports declared as originating in the PRC reflects the
growing weight of more expensive product types subject
to an MIP (RBM with 17 and 23 rings) rather than a
genuine price increase.

3. Imports declared as originating in Thailand

It was mentioned above, based on the findings of the
OLAF investigation, that a substantial part of imports
declared as originating in Thailand was
in fact of
Chinese origin.
Imports declared as originating in
Thailand increased from one million pieces in 1998 to
16 million pieces in 1999, to 17 million pieces in 2000
and to 20 million pieces in the IP. The market share of
the imports declared as originating in Thailand increased
in each year of the period considered, from 0,3 % in
1998 to 5,2 % in 1999, to 5,3 % in 2000 and to 7,4 %
in the IP. The average price of the imports declared as
originating in Thailand fell by 9 % in the same period,
from EUR 100 to EUR 91. More detailed price infor-
mation available for imports declared as originating in
Thailand concern resale prices of a European distributor
of RBM exported via Thailand. It was found that these
resale prices were on average around 12 % below the
sales prices of the Community industry.

(59)

4. Economic situation of the Community industry (1)

(a) Production, production capacity and capacity utilisation

The production of the Community industry decreased by
17 % over
the period considered from 100 (index
number) in 1998 to 91 in 1999, to 89 in 2000 and
to 83 in the IP. Koloman Handler AG's decision to
transfer part of
its production to Hungary in 2000
accounts for the decrease of production in that year. In
the IP, Koloman Handler AG filed for bankruptcy and its
production decreased significantly in the second half of
2001.

(60)

the Community industry
The production capacity of
decreased by 7 % in the period considered. It increased
in 1999 to 107 (index number) and then fell to 93 in
2000 as a result of Koloman Handler AG's decision to
transfer part of its production to Hungary. Production
capacity stabilised in the IP.

(62)

(63)

(64)

The Community industry's closing stocks fell by 37 % in
the period considered, having fallen in each year of that
period. The main factor contributing to this decrease was
the slowdown of Koloman Handler AG's production after
filing for bankruptcy. The period during which stocks
were kept before being sold was reduced by 10 days in
the period considered.

(c) Sales volume, market share and growth

The Community industry's sales on the Community
market decreased by 8 % over the period considered,
from 119 million pieces in 1998 to 109 million pieces
in the IP. Sales had also fallen in 1999 to 115 million
pieces and remained almost at the same level in 2000.

The market share held by the Community industry grew
slightly during the period considered,
from 40,1 % in
1998 to 40,4 % in the IP, although it had fallen signifi-
cantly in 1999 and 2000 to 37,6 % and 36,2 %, respec-
tively.

sales

volume of

(65) While the Community consumption decreased by 9 % in
the
the
the period considered,
Community industry decreased by 8 %. On the other
hand, the aggregated volume of imports declared as origi-
nating in the PRC and in Thailand fell by 44 % in the
period considered. The Community industry thus slightly
increased its market share, whereas the imports declared
as originating in the PRC lost market share and the
imports declared as originating in Thailand increased
their market share.

(d) Sales prices and costs

(66)

The weighted average selling price of RBM sold by the
to
Community industry on the Community market
unrelated customers decreased in each year of
the
period considered, from EUR 206 per thousand pieces
in 1998 to EUR 190 in 1999, to EUR 177 in 2000 and
i.e. by 16 % in the period
to EUR 174 in the IP,
imports
considered. Anti-dumping measures
from Indonesia were only taken in June 2002,
it
i.e.
cannot be excluded that dumped RBM from Indonesia
could have an impact on the price development over the
period considered.

against

(61)

Capacity utilisation fell from above 80 % in 1998 to 70-
75 % in 1999, then increased to 76-80 % in 2000 and
decreased again to 70-75 % in the IP.

(67)

(1) Data is given in index numbers (1998 = 100) or in a range whenever

it is necessary to preserve confidentiality.

The selling price of the main raw materials (steel strip
and steel wire) did not follow the downward trend. On
the other hand, unit labour costs, which account for
more than two-fifths of the total unit cost, decreased
significantly over the period considered.

L 359/18

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Official Journal of the European Union

4.12.2004

(e) Profitability

of

the

Community

(68) As the impact of certain items that do not reflect the
regular performance of the business (especially depre-
ciation for goodwill
following an acquisition) was
the operating profit margin before depre-
significant,
ciation for goodwill was considered to be a better
indicator than the pre-tax profit margin to assess the
profitability
The
Community industry has consistently registered a poor
operating profit margin on its
to unrelated
customers
in the Community. Profitability improved
from 0-3 % in 1998 to 3,1 %-6 % in 1999 and then
fell abruptly to between 0 % and -3 % in 2000 and it
was lower than -3 % in the IP. This negative performance
certainly contributed to the fact that the two companies
concerned went into bankruptcy: Koloman Handler AG
in July 2001 and Krause Ringbuchtechnik GmbH in April
2002 (i.e. soon after the end of the IP).

industry.

sales

(f) Investments and ability to raise capital

(69)

The analysis of investment focussed on investment in
plant and machinery, representing more than 90 % of
investment in the IP. The investment in goodwill
total
was not taken into consideration since it does not reflect
the regular performance of the Community industry over
several years, as that investment was the result of an
acquisition which was a one-off event.
in
plant and machinery decreased by 65 % in the period
considered. It fell to 52 (index number) in 1999, to 48
in 2000 and to 35 in the IP.

Investment

(70)

The ability of the Community industry to raise capital
was dented by its consistently poor profitability.

(g) Return on investment

(71) As

equity

in 2000 and

became negative

both
Community producers subsequently filed for bankruptcy,
the return on total assets (‘ROTA’) was used to measure
the return on investment. ROTA was stable in 1998 and
1999 at between 0 and 3 %,
then fell abruptly to
between 0 % and -5 % in 2000 and it was lower than -
10 % in the IP.

(h) Cash flow

(72) An analysis of a simplified net operating cash flow, i.e.
operating profit plus depreciation (excluding depreciation
of goodwill), shows that the trend is similar to that of the
operating profit margin. Cash flow increased from 100

(73)

(74)

(75)

(76)

(77)

in 1998 to 126 in 1999, and then
(index number)
decreased sharply to 62 in 2000 and to -65 in the IP.

(i) Employment, productivity and wages

(full-time units)

Employment
period considered, from 100 (index number)
to 86 in 1999, to 82 in 2000 and to 77 in the IP.

in each year of

the
in 1998

fell

Productivity, measured in thousand pieces per employee,
improved by 8 % over
the period considered, while
labour costs per unit of output, measured in EUR per
kg, decreased by 12 % in the same period.

(j) Magnitude of the actual margin of dumping

There is no finding of actual dumping during the IP for
imports declared as originating in the PRC as the findings
for these imports relate to a small and not representative
range of RBM. Furthermore, no full determination on
in
dumping
Thailand could be made due to a lack of investigation
on dumping (the OLAF investigation concerned the
determination of origin and did not relate to the issue
of dumping). Therefore, no conclusion could be reached
on the magnitude of the actual margin of dumping.

as originating

declared

imports

for

5. Conclusion

The Community industry continued to be in a precarious
situation during the period considered. This is illustrated
by its declining profitability (or, in other words, by its
growing losses after 1999) on lower sales volumes at
decreasing unit prices.

The precarious situation of the Community industry in
the IP resulted from various past events such as:
(i)
dumping of
imports originating in the PRC until the
imposition of measures in January 1997; (ii) absorption
of these measures as determined in October 2000; (iii)
dumping of imports originating in Indonesia until the
imposition of anti-dumping measures in June 2002; (iv)
circumvention through Thailand (OLAF investigation). In
addition, following an investigation into circumvention,
the anti-dumping measures imposed by Council Regu-
lation (EC) No 119/97 were extended to imports
consigned from Vietnam (see recital
(4)). This shows
that during the period considered the Community
industry always suffered from dumping and had no
opportunity to recover. The decrease in consumption
on the Community market was limited and cannot,
therefore, explain in itself
the precarious situation of
the Community industry.

4.12.2004

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Official Journal of the European Union

L 359/19

(78)

(79)

F. LIKELIHOOD OF RECURRENCE OF INJURY

1. Impact of

the projected increase in dumped

imports on the Community industry

In the IP of the original investigation (i.e. in the period
between 1 October 1994 and 30 September 1995), the
Chinese exporting producers sold 126 million pieces on
the Community market
(WWS's sales accounting for
more than two-fifths of this volume). In 2001, the IP
of the current investigation, they sold 5 million pieces
declared as originating in the PRC. The facts that there is
significant spare capacity in the PRC (while Chinese
exports to third countries are decreasing in volume)
and that the behaviour of Chinese exporting producers
has consistently shown that they are willing to sell at
dumped and injurious prices
share,
clearly indicate that there is a likelihood of recurrence
of injurious dumping through imports originating in the
PRC if the anti-dumping measures expired.

to gain market

The Community is the only market where Chinese
exporting producers could still
increase market share,
as the other markets are already supplied by Chinese
producers or producers in third countries controlled by
Chinese producers. The Community industry's presence is
not significant in the most important markets outside the
Community where almost all of the RBM sold are manu-
factured in the PRC or by companies controlled by the
Chinese exporting producers. The price pressure exerted
by the imports concerned would most probably signifi-
cantly increase, as suggested by the analysis of the anti-
if the existing measures were
absorption investigation,
If WWS was able to absorb a
allowed to expire.
its 32,5 % anti-dumping duty and
significant part of
the other Chinese companies did the same of
their
39,4 % duty, then it is most likely that in the absence
of anti-dumping measures they would be in a position to
increase their strong downward pressure on the prices of
RBM sold in the Community.

concerns India and Indonesia, exporting producers in
both of
these countries are controlled by Chinese
exporting producers. If the measures on imports origi-
nating in the PRC expire, the incentive to export RBM
from India and Indonesia to the Community would be
reduced, as it is likely that in this case there would be a
sharp increase in dumped imports coming directly from
the PRC.

the aforementioned substantial

(82) Given the already precarious situation of the Community
industry,
increase of
imports from the PRC at dumped prices combined
with substantial price undercutting would undoubtedly
have serious consequences for the Community industry.
Indeed, and also in view of the experience concerning
past anti-dumping and anti-subsidy investigations with
regard to RBM, the expiry of the measures concerning
RBM imports originating in the PRC would in all like-
lihood lead to a further and material deterioration of the
situation of the Community industry.

2. Conclusion on the likelihood of recurrence of
injury

(83) On the basis of the above, it is likely that the expiry of
the anti-dumping measures on imports of RBM origi-
nating in the PRC would result in a sharp increase in
the volume of
into the Community,
combined with a significant decline in selling prices. It
should be noted that the bulk of the products on the
RBM market is highly standardised and competition takes
place to a great extent in terms of prices.

these imports

(84)

it
imports at

In this context, given the findings regarding the situation
is thus likely that an
on the Community market,
low, dumped
increase in the volume of
prices will depress
the Community
industry. This will in turn lead to a further deterioration
of the financial situation of the Community industry. The
consequence for the Community industry would most
probably be bankruptcy
its
remaining plant.

the prices of

closure of

and

the

(80)

It is recalled that the average price of RBM declared as
originating in Thailand fell by 9 % over
the period
considered and a comparison between average selling
price of a European distributor of RBM declared as origi-
nating in Thailand and the Community industry's
weighted average selling price showed that the former
was around 12 % lower than the latter.

(85)

The expiry of
important barrier
producers to sell at
Community market.

the measures would remove the most
to impede the Chinese exporting
injurious dumped prices on the

(81) As to imports from other third countries, Hungary is part
the Community since 1 May 2004 onwards. As

of

(86)

Therefore, it is concluded that there is a likelihood of a
recurrence of injury caused by dumped imports origi-
nating in the PRC.

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Official Journal of the European Union

4.12.2004

G. COMMUNITY INTEREST

1. Introduction

to

is not

it
renew the

It was examined whether compelling reasons existed that
in the
could lead to the conclusion that
Community
anti-dumping
interest
measures in force. For this purpose, and in accordance
with Article 21 of the basic Regulation, the impact of the
renewal of the measures on all parties involved in this
proceeding and the consequences of the expiry of the
measures were considered on the basis of all evidence
submitted.

They restructured their operation after having filed for
bankruptcy, but
this was not enough to avoid the
further bankruptcy procedures in the last quarter of
2003. The Community industry is making an effort to
build a sound business able to compete with Chinese
exporting producers on a world-wide basis. The expiry
of the anti-dumping measures on imports originating in
the PRC could seriously undermine that strategy, as
Chinese exporting producers have shown in the past
that they would push prices down to dumped levels in
order to gain market share. Bearing in mind that the
effects of
the measures in place have been partially
undermined by absorption practices and by dumped or
subsidised RBM imports from Indonesia,
the possible
expiry of such measures would most likely make the
current restructuring efforts of the Community industry
impossible.

(87)

(88)

In order to assess the impact of the possible maintenance
of measures, all interested parties were given the oppor-
tunity to make their views known pursuant to Article
21(2) of
the basic Regulation. Only the cooperating
Community producers and two unrelated importers
replied to the questionnaire. Three users made some
comments, but they neither replied to the questionnaire
nor provided
their
evidence
comments.

to substantiate

any

(92)

(89) Article 21(7) of

the basic Regulation establishes that
information shall only be taken into account where it
is supported by actual evidence which substantiates its
validity. In this context, no conclusion could be drawn
from the comments made by users suggesting that it was
not in the Community interest to maintain the anti-
dumping measures, as they were not substantiated.

(90) As to the effect of the anti-dumping measures previously
imposed, there was a sharp decline in imports declared as
originating in the PRC, especially after the increase in the
measures following the findings on absorption, combined
with a sharp increase in imports originating or declared
as originating in other third countries.

(93)

2. Interests of the Community industry

(91)

The company group to which the applicants belong is
the only Community producer of RBM with a significant
production. They are facing a difficult environment in
which
subsidised
injurious imports from third countries remain a threat.

low-priced,

dumped

often

and

The Community industry has a long tradition, but it is
very likely that it would cease to exist if the current
restructuring efforts fail. Robert Krause GmbH & Co.
KG filed for bankruptcy in January 1998. Its successor,
Krause Ringbuchtechnik GmbH, owned by Wilhelm vom
Hoffe Drahtwerke GmbH since June 1998, filed for bank-
ruptcy in April 2002. After having acquired the assets
and taken over the personnel of the latter, Ringbuch-
technik Produktionsgesellschaft GmbH will probably
not
the
opening of bankruptcy procedures. SX Bürowaren
Produktions-
the
tradition of Koloman Handler AG. Another bankruptcy
would likely be the end of the Community industry.
Once the Community industry stops manufacturing
RBM,
than a
century and the jobs left would be lost.

und Handels GmbH continues

accumulated during more

resume production after

its application for

skills

the

The renewal of
the measures would most probably
enable the Community industry to increase its market
share, to decrease its unit manufacturing costs and to
increase profitability. Prices would probably not change
significantly, but sales volumes could grow substantially.
The restructuring of the Community industry is intended
its competitive position, allowing for better
to boost
planning of the RBM types to be produced,
increasing
its negotiating power vis-à-vis its suppliers, and stream-
lining its sales operations. All
these measures would
contribute to a reduction in costs. The Community
industry is viable, as even after several bankruptcies it
is still in a position to supply an important part of the
Community market,
in conjunction with
in particular,
the production site located in Hungary, which became
part of the Community production on 1 May 2004.

(94)

(95)

(96)

(97)

(98)

4.12.2004

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Official Journal of the European Union

L 359/21

SX Bürowaren Produktions- und Handels GmbH's acqui-
sition of Bensons, a long time trader of RBM with
companies located in the Netherlands, Singapore,
the
United Kingdom and the USA, clearly shows the will
the Community industry to enhance its access to
of
the market on a world-wide basis and the seriousness
of its restructuring efforts.

(101)

There were two main issues raised after disclosure. Firstly,
a possible
abuse of a dominant position by the
Community industry. In this respect, the Commission is
not aware of any anti-trust procedure concerning the
companies concerned.

In the period considered, some binder manufacturers
reduced their production or closed their plants in the
Community. In certain cases, they moved or expanded
their production capacity outside the Community, mainly
in Eastern European countries. The reasons behind the
decisions of these users were mainly motivated by lower
labour costs and the proximity of those countries to the
Community market, combined with the perspective that
these countries will become members of the European
Union on 1 May 2004. The prices of RBM sold by the
Community industry have followed a downward trend
low-priced RBM, shipped from India,
and imports of
Indonesia, and Thailand not subject
to anti-dumping
duties have been available during the period considered.

Secondly, it was alleged that the Community industry is
now related to a Chinese exporter and that Bensons, the
importer that is now part of the Community industry
is an exclusive distributor of products sold by
group,
WWS,
the
a Chinese
production in India.

also controls

exporter

that

It was found that there is a supply agreement between
Bensons and WWS that initially foresaw the transfer of
Intellectual Property Rights from WWS to Bensons and
the transfer of some of Benson's shares to WWS. These
transfers have, however, not
taken place. The supply
agreement foresees no exclusivity between Bensons and
WWS, but stipulates that Bensons is given priority to be
the exclusive distributor if a given supplier ceases its
activity. Therefore,
the alleged relationship cannot be
confirmed.

3. Interests of importers

The only two cooperating unrelated importers were
acquired by SX Bürowaren Produktions- und Handels
GmbH in August 2002, thus becoming related to the
Community industry after the IP. Normally, events after
the IP are not taken into account. However, since this
acquisition is a significant and lasting event, it should, in
this particular case, be taken into account. The interests
of these importers are now the same as those of the
Community industry as they are all related companies.

(99) No other unrelated importer cooperated in the investi-
gation. This suggests that, although measures have been
in place, the other unrelated importers were not signifi-
cantly affected by these measures.

4. Interests of users

(100) No user cooperated in the investigation. This suggests
that, although measures have been in place, users were
not significantly affected by these measures. The situation
of users is thus unlikely to deteriorate as a result of the
maintenance of anti-dumping measures.

(102)

imports

from Chinese

that moment,

subsidiaries
Chinese

It should be stressed that should the Community industry
cease to exist, users would become almost
totally
dependent on imports originating in the PRC and/or
in
on
other
countries. At
exporting
producers would have an incentive to substantially
increase prices
in markets outside the PRC, which
could seriously endanger the competitiveness of user
industries. The Community industry has no interest in
having a price policy that would contribute to the
it
closure of Community binder manufacturers, as
would be in a much weaker position when competing
outside
exporting
the Community with Chinese
producers and their subsidiaries.

(103) Should measures be renewed, there will be alternative
sources of supply. It is worth noting that the current
anti-dumping measures on imports originating in the
PRC did not entail any shortage of imported RBM on
the Community market.

5. Interests of upstream industry

(104) Suppliers of steel wire and steel strip sell a negligible
percentage of
their production to the Community
industry and as such, are not affected by the outcome
of this proceeding. None of them made itself known as
an interested party.

6. Competition and trade distorting effects

(105) With respect

to the effects of possible expiry of

the
measures on competition in the Community,
it should
be noted that there are only a few producers of RBM
world-wide, which are mostly Chinese or controlled by
Chinese exporting producers. The disappearance of the
remaining few producers not controlled by Chinese
companies would thus have negative effects on compe-
tition in the Community.

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Official Journal of the European Union

4.12.2004

7. Conclusion on Community interest

(106) Taking into account

the above factors and consid-
it is concluded that there are no compelling
the current anti-

the maintenance of

erations,
reasons against
dumping measures.

H. ANTI-DUMPING MEASURES

(107)

it is considered that, as
In the light of the foregoing,
provided for by Articles 11(2) and 11(6) of the basic
Regulation, the anti-dumping measures on imports of
RBM originating in the PRC imposed by Council Regu-
lation (EC) No 119/97, as last amended by Council Regu-
lation (EC) No 2100/2000, should be maintained.

(108) Because of the long duration of the investigation,

it is
considered appropriate that the measures be limited to
four years,

HAS ADOPTED THIS REGULATION:

Article 1

The rate of the definitive anti-dumping duty applicable to
2.
the net, free-at-Community-frontier price, before duty, shall be
as follows:

(a)

for mechanisms with 17 and 23 rings (TARIC codes
8305 10 00 21, 8305 10 00 22 and 8305 10 00 29), the
amount of duty shall be equal to the difference between
the minimum import price of EUR 325 per 1 000 pieces
and the net, free-at-Community-frontier price, before duty;

(b) for mechanisms other than those with 17 or 23 rings
and
8305 10 00 11,

8305 10 00 12

(TARIC
codes
8305 10 00 19)

Rate of
duty

TARIC
additional
code

People's Republic of China:

— World Wide Stationery Mfg, Hong
Kong, People's Republic of China

51,2 %

8934

— all other companies

78,8 %

8900

1.
A definitive anti-dumping duty is hereby imposed on
imports of certain ring binder mechanisms currently classifiable
within CN code ex 8305 10 00 originating in the People's
Republic of China.

For the purpose of this Regulation, ring binder mechanisms
shall consist of two rectangular steel sheets or wires with at
least four half rings made of steel wire fixed on it and which are
kept together by a steel cover. They can be opened either by
pulling the half
steel-made trigger
rings or with a small
mechanism fixed to the ring binder mechanism.

Unless otherwise specified, the provisions in force concerning
customs duties shall apply.

Article 2

This anti-dumping duty shall be imposed for a period of four
years from the date of entry into force of this Regulation.

Article 3

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, 29 November 2004.

For the Council
The President

L. J. BRINKHORST