Commission Regulation (EC) No 128/2005 of 27 January 2005 imposing a provisional anti-dumping duty on imports of hand pallet trucks and their essential parts originating in the People's Republic of China
Date: 2005-01-27
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, hoisting equipment

L 25/16

EN

Official Journal of the European Union

28.1.2005

COMMISSION REGULATION (EC) No 128/2005

of 27 January 2005

imposing a provisional anti-dumping duty on imports of hand pallet trucks and their essential parts
originating in the People's Republic of China

THE COMMISION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped
(the basic Regulation), and in
imports from countries not members of
particular Article 7 thereof,

the European Community (1)

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

(5)

A. PROCEDURE

On 29 April 2004, the Commission announced, by a notice published in the Official Journal of the
European Union (2), the initiation of an anti-dumping proceeding with regard to imports into the
Community of hand pallet trucks and their essential parts originating in the People's Republic of
China (PRC).

The proceeding was initiated as a result of a complaint lodged in March 2004 by four Community
producers representing a major proportion, in this case more than 60 %, of the total Community
production of hand pallet trucks and their essential parts, i.e. chassis and hydraulics (the applicants).
The complaint contained evidence of dumping of the said product and of material injury resulting
thereof, which was considered sufficient to justify the initiation of a proceeding.

The Commission officially advised the applicant Community producers, other Community producers,
the exporting producers, importers and users known to be concerned and the representatives of the
PRC of the initiation of the proceeding. Given the large number of known exporting producers in the
PRC, sampling for the determination of dumping was envisaged in the notice of initiation,
in
accordance with Article 17 of
the basic Regulation. However, only four Chinese exporting
producers cooperated with the investigation and, therefore, it was decided that sampling was not
necessary. 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 notice of initiation.

A number of exporting producers in the PRC, Community producers, importers, users, as well as an
association of importers made their views known in writing. All parties who so requested within the
above time limit, and indicated that there were particular reasons why they should be heard, were
granted a hearing.

The Commission sought information, by means of questionnaires and market economy and indi-
vidual treatment claim forms sent to all known parties as appropriate. The information received was
verified to the extent possible and to the extent deemed necessary for the purpose of a preliminary
determination of dumping, resulting injury and Community interest. In this regard, the Commission
received complete questionnaire responses, and claim forms where applicable, from the following
companies:

(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 C 103, 29.4.2004, p. 85.

28.1.2005

EN

Official Journal of the European Union

L 25/17

(a) Producers in the Community

— Bolzoni-Auramo SpA, Piacenza, Italy,

— BT Products AB, Mjölby, Sweden,

— Franz Kahl GmbH, Lauterbach, Germany,

— Pramac Lifter SpA, Casole d’Elsa, Italy;

(b) Exporting producers in the People's Republic of China

— Ningbo Liftstar Material Transport Equipment Factory, Ningbo,

— Ningbo N.F.T.Z. E-P Equipment Co. Ltd, Hangzhou (exporter related to Ningbo Liftstar

Material Equipment Factory),

— Ningbo Ruyi Joint Stock Co. Ltd, Ninghai,

— Ningbo Tailong Machinery Co. Ltd, Ninghai,

— Zhejiang Noblelift Equipment Joint Stock Co. Ltd, Changxing;

(c)

Importers/traders in the Community

— Chadwick Materials Handling Ltd, Corsham, United Kingdom,

— European Handling Equipment, Halesowen, United Kingdom,

— Gigant Arbetsplats AB, Alingsås, Sweden,

— Hu-Lift s.l., Barcelona, Spain,

— Jungheinrich AG, Hamburg, Germany,

— Mangrinox SA, Athens, Greece,

— Manutan International SA, Paris, France,

— Lagertechnik Fischer GmbH, Dinslaken, Germany,

— Levante SRL, Ostiglia, Italy,

— Linde AG, Aschaffenburg, Germany,

— RAPID Transportgeräte GmbH, Beckum, Germany,

— Teknion Ltd, Lancashire, United Kingdom,

— TVH Handling Equipment N.V., Gullegem, Belgium;

(d) Users

— Aldi Einkauf GmdH & Co. OHG, Essen, Germany,

— M. Uno Trading SpA, Imola, Italy.

(6)

(7)

(8)

Verification visits were carried out in the premises of all cooperating exporting producers in the PRC
and all Community producers.

In light of the need to establish a normal value for exporting producers in the PRC to which MET
was not granted, a verification at the premises of the following producer in Canada, which was used
as an analogue country, took place:

— Lift Rite Inc., Brampton, Ontario.

The investigation of dumping and injury covered the period from 1 April 2003 to 31 March 2004
(IP). The examination of trends relevant for the assessment of injury covered the period from 1
January 2000 to the end of the investigation period (period considered).

L 25/18

EN

Official Journal of the European Union

28.1.2005

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. General

(9)

Hand pallet trucks are used for the handling of goods and material normally placed on pallets. They
are not self-propelled, i.e. they are pushed and pulled by man power. Hand pallet trucks consist of
four main parts: chassis (which is made of steel), hydraulics, handle, and wheels. The essential parts
are the chassis, where the pallet is placed on, and the hydraulics which allows the geared lifting of the
load.

2. The product concerned

(10)

The product concerned is hand pallet trucks, not self propelled, used for the handling of materials
normally placed on pallets, and their essential parts, i.e. the chassis and the hydraulics, originating in
the PRC (the product concerned), normally declared within CN codes ex 8427 90 00 and
ex 8431 20 00. There are different types of hand pallet trucks and their essential parts depending
mainly on the lift capacity, length of the forks, type of steel used for the chassis, type of hydraulics,
type of wheels and existence of a brake. However, all different types have the same basic physical
characteristics and uses. Consequently, all existing types are considered as one product for the
purposes of this investigation.

(11) During the investigation, some interested parties submitted comments as regards the definition of the
product concerned. These parties claimed that the chassis and hydraulics should not be included
within the scope of the product concerned, because (a) chassis’ and hydraulics’ markets are different
from the hand pallet truck’s market; (b) companies producing hand pallet trucks and chassis and/or
in particular, Chinese exporting producers do not export chassis and
hydraulics are different,
hydraulics to the Community and (c) both chassis and hydraulics are also used for other products
than only hand pallet trucks.

(12) As regards the argument that there are different markets for chassis and hydraulics, it is noted that no
evidence demonstrating the existence of separate markets for these parts for users has been submitted
to the Commission. On the contrary, comments of all parties indicate that the producers of hand
pallet trucks also produce the essential parts and, in certain cases, deliver these as spare parts for their
own trucks. It is very difficult, if not impossible, to fit any chassis or hydraulics of one producer to a
hand pallet truck of another producer. Producers normally would supply essential parts to the
customers buying their products.

(13) As regards the second argument concerning producers for chassis and hydraulics, it is noted that the
verified information received from the exporting producers shows that all the exporting producers
subject to the present investigation produce themselves the chassis and most of them also produce
the hydraulics. Although there may exist independent producers of such parts, their production is
tailor-made for producers of hand pallet trucks and this is the reason why these parts are seldom sold
on the open market. Furthermore, the investigation has shown that such parts have been exported to
the Community by certain of the cooperating exporting producers. Therefore, the evidence on the
record indicates that the second argument should also be rejected.

(14) As regards the third argument that chassis and hydraulics are also used in other products, it is noted
that the products given as examples by the interested parties are clearly different to hand pallet
trucks, not only in their physical characteristics but also in their use. Even if these products also have
hydraulic systems and steel chassis, these are of different size, shape or lifting capacity than the ones
used in hand pallet trucks and would thus not fall under the product concerned as defined above.
Therefore, on the basis of the information available and as set out above, it appears highly unlikely
that the hydraulics and/or chassis of hand pallet trucks could be integrated as such in other products.

(15)

Consequently, the comments of the interested parties were analysed, but they did not justify changing
the provisional conclusion on the product concerned as set out in recital 10.

28.1.2005

EN

Official Journal of the European Union

L 25/19

3. Like product

(16) No differences were found between the product concerned and the hand pallet trucks and their
essential parts produced and sold on the domestic market of Canada, the analogue country. Indeed,
these hand pallet trucks and their essential parts have the same basic physical characteristics and uses
as those exported to the Community.

(17)

(18)

(19)

Likewise, no differences were found between the product concerned and the hand pallet trucks and
their essential parts produced by the complainants and sold on the Community market. They both
share the same physical characteristics and uses.

Consequently, hand pallet trucks and their essential parts sold on the domestic market of Canada, as
well as hand pallet trucks and their essential parts produced and sold in the Community are
considered as alike to the product concerned within the meaning of Article 1(4) of the basic
Regulation.

1. Market economy treatment (MET)

C. DUMPING

Pursuant to Article 2(7)(b) of the basic Regulation, in anti-dumping investigations concerning imports
originating in the PRC, normal value shall be determined in accordance with paragraphs 1 to 6 of the
said Article for those producers which were found to meet the criteria laid down in Article 2(7)(c) of
the basic Regulation, i.e. where it is shown that market economy conditions prevail in respect of the
manufacture and sale of the like product. Briefly, and for ease of reference only, these criteria are set
out in a summarised form below:

1. business decisions and costs are made in response to market conditions, and without significant

State interference;

2. accounting records are independently audited, in line with international accounting standards and

applied for all purposes;

3. there are no significant distortions carried over from the former non-market economy system;

4.

legal certainty and stability is provided by bankruptcy and property laws;

5. currency exchanges are carried out at the market rate.

(20)

Four Chinese producers requested MET pursuant to Article 2(7)(b) of the basic Regulation and replied
to the MET claim form for exporting producers within the given deadlines.

(21)

The Commission sought all information deemed necessary and verified all information submitted in
the MET applications at the premises of the companies in question.

(22)

For all four companies it was established that, overall, their decisions regarding prices and costs were
made without significant state interference, within the meaning of Article 2(7)(c) and that costs and
prices reflected market values. Their production costs and financial situation were not subject to
significant distortions carried over from the former non-market economy system, there were bank-
ruptcy and property laws guaranteeing legal certainty and stability and the exchange rate conversions
were carried out at the market rate. However, none of the four companies fulfilled criterion 2,
concerning the existence of independently audited accounts which are in line with international
accounting standards (IAS). The companies were found to be in breach of one or several of the
following standards: IAS 1, IAS 2, IAS 8, IAS 16, IAS 21, IAS 32 and IAS 36. Consequently, it was
concluded that none of the following four companies fulfilled the conditions set out in Article 2(7)(c)
of the basic Regulation:

L 25/20

EN

Official Journal of the European Union

28.1.2005

— Ningbo Liftstar Material Equipment Factory, Ningbo,

— Ningbo Ruyi Joint Stock Co. Ltd, Ninghai,

— Ningbo Tailong Machinery Co. Ltd, Ninghai,

— Zhejiang Noblelift Equipment Joint Stock Co. Ltd, Changxing.

(23)

The exporting producers concerned and the Community industry were given an opportunity to
comment on the above findings.

(24) All four exporting producers argued that the determination was wrong and that they should be

granted MET.

(25) One of the exporting producers argued that the ultimate objective of Article 2(7) of the basic
Regulation is to establish whether the companies respond to market signals without State inter-
in particular criterion 2
ference. The five criteria under Article 2(7)(c) of the basic Regulation,
concerning accounting standards, should therefore always be interpreted in the light of
this
ultimate objective. Since no State interference was established, the company should be granted MET.

(26)

It is noted that the five criteria listed under Article 2(7)(c) of the basic Regulation are independent of
each other and each one of them needs to be met in order for the MET to be granted. State
interference as such is mentioned neither as an independent criterion nor as one which could
override other criteria. Indeed, if lack of State interference as such would be sufficient for MET to
be granted, no other criteria would be necessary. Moreover, the apparent lack of enforcement of the
IAS and the accounting rules applicable in the PRC can be also seen as a form of State interference in
the normal operation of a market economy.

(27) One of the exporting producers argued that the Commission had not made its decision on the MET
within the three months’ deadline provided for in Article 2(7)(c) of the basic Regulation. This
the Commission had already received and verified its
exporting producer also alleged that
dumping questionnaire response before deciding on the merits of the MET claim, and this casts
serious doubt as to the motivation of the Commission to reject the MET claim.

(28) As regards the argument concerning the three months’ deadline, it is noted that at the initiation stage
of the present case, using sampling provisions was foreseen due to the large number of exporting
producers involved. However, due to lack of cooperation by most of the exporting producers, it was
later decided that sampling was not necessary and that only the cooperating exporting producers
would be investigated both as regards MET and dumping. This procedure delayed the investigation,
following which it was for practical reasons decided to carry out the on-the-spot verifications of both
MET claims and the anti-dumping questionnaires at the same time. Moreover, in this respect it is
noted that the non-respect of such deadline does not entail any apparent legal consequences and that
the abovementioned exporter did not claim any negative impact due to the longer period needed for
the MET determination. In addition, all MET claims received were deficient and required a number of
substantial clarifications and additional information which delayed the investigation. In fact, three
exporters, including the exporter which brought the argument under discussion, submitted further
comments following the completion of the MET assessment. Given the above it was concluded that a
valid MET determination could be made or adopted also after the three months period in this case.

(29) As regards the argument concerning the verification of the questionnaire response, it is noted that the
basic Regulation does not stipulate that the dumping investigation shall only start after the MET
In fact, Articles 5(10) and 6(2) of the basic Regulation require that all relevant
determination.
information including the dumping questionnaire responses, has to be submitted within 40 days
from initiation or 37 days from the selection of any sample, if sampling is used. This is in all cases
before any MET determination is made. The Commission examines all MET claims on their own
merits and on the basis of the criteria set out in Article 2(7)(c) of the basic Regulation. Dumping
investigations are normally run in parallel with MET claims.

28.1.2005

EN

Official Journal of the European Union

L 25/21

(30)

(31)

Three exporting producers argued that because they had accounts audited by an independent
accounting firm which are in line with Chinese GAAP, criterion 2 must be fulfilled. They also
argued that their practice of not converting their foreign exchange into renminbi on a daily basis
was in line with the requirements of IAS 21. They argued that because the Chinese renminbi is
pegged to the US dollar it made no difference whether conversions were done on a yearly or daily
basis. In addition, two exporting producers argued that IAS 21 permitted deviations from the normal
rule if exchange rates do not fluctuate significantly.

It is noted that according to the criteria of Article 2(7)(c) of the basic Regulation, the Commission
shall examine whether the accounts of the companies are audited in line with IAS. The compliance or
non-compliance with the Chinese standards is not decisive in the context of an individual MET
assessment. However, it is noted that as regards two of the four companies investigated, the notes
of auditors in their annual reports indicated that the accounts were prepared in breach of the Chinese
accounting standards.

(32) As regards the comparison with the US dollar, two issues are relevant: firstly, even if the majority of
the transactions of the companies investigated were in US dollars, the companies which failed to
meet the IAS 21 also had transactions in other currencies, and in these cases the fluctuations could
be considerable. In addition, it is noted that significant export sales of the companies concerned were
made to markets other than the Community, and since the investigation concerns only the
Community market, such transactions have not been verified. Secondly, it is not relevant whether,
looking back at a certain period, one notes retrospectively that there were minor fluctuations. This
cannot be known at the beginning of the same period, a year or even more, when the companies
concerned fixed the currencies exchange rates to be used for recording export sales in their accounts.
Since there can be movements that have not been foreseen and which can have a considerable impact
on the companies pricing and revenue, an exchange rate fixed in advance cannot be in line with the
practice of companies operating under market economy conditions.

(33) As regards the requirements of IAS 21, it is noted that IAS 21 provides for as follows: ‘A foreign
currency transaction should be recorded, on initial recognition in the reporting currency, by applying
to the foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.’ A following explanation is also provided for in relation to
this standard: ‘The exchange rate at the date of the transaction is often referred to as the spot rate.
For practical reasons, a rate that approximates the actual rate at the date of the transaction is often
used, for example, an average rate for a week or a month might be used for all transactions in each
foreign currency occurring during that period. However, if exchange rates fluctuate significantly, the
use of an average rate for a period is unreliable’. Consequently, IAS 21 makes it clear that in principle
daily rates are to be used. Weekly or monthly averages are only allowed as approximate rates to the
actual rate of the date of transaction if exchange rates do not fluctuate significantly. In the present
case however, the companies updated their accounting rate once a year or even less frequently. Such
practice cannot be considered to be in line with IAS 21. Moreover, even the Chinese accounting
standards require the use of daily or monthly exchange rates in such case. Therefore, the fact that the
auditors had not commented on the practice concerning foreign currency transactions above,
indicates that the audit was not carried out in accordance with the IAS. This casts doubts on the
reliability of the accounting data.

(34)

Consequently,
justified.

it is concluded that the comments arguing that MET should be granted are not

2. Individual treatment

(35)

is established for
Further to Article 2(7)(a) of the basic Regulation, a country-wide duty,
countries falling under that article, except in those cases where companies are able to demonstrate,
in accordance with Article 9(5) of the basic Regulation, that their export prices and quantities as well
as the conditions and terms of the sales are freely determined, that exchange rates are carried out at
market rates, and that any State interference is not such as to permit circumvention of measures if
exporters are given different rates of duty.

if any,

L 25/22

EN

Official Journal of the European Union

28.1.2005

(36)

The four exporting producers, as well as requesting MET, also claimed individual treatment (IT) in the
event they were not granted MET. On the basis of information available it was found that all four
companies met all the requirements for IT as set forth in Article 9(5) of the basic Regulation.

(37)

It was therefore concluded that IT should be granted to the following four exporting producers in the
PRC:

— Ningbo Liftstar Material Transport Equipment Factory, Ningbo,

— Ningbo Ruyi Joint Stock Co. Ltd, Ninghai,

— Ningbo Tailong Machinery Co. Ltd, Ninghai,

— Zhejiang Noblelift Equipment Joint Stock Co. Ltd, Changxing.

3. Normal value

3.1. Analogue country

(38) According to Article 2(7)(a) of the basic Regulation, for non-market economy countries and, to the
extent that MET could not be granted, for countries in transition, normal value has to be established
on the basis of the price or constructed value in an analogue country.

(39)

(40)

(41)

(42)

In the notice of initiation, the Commission indicated its intention to use Canada as an appropriate
analogue country for the purpose of establishing normal value for the PRC and invited interested
parties to comment on this.

The investigation showed that Canada has a competitive market for hand pallet trucks with around
50 % of the market supplied by local production and the rest by imports from third countries. The
production volume in Canada constitutes more than 5 % of the volume of Chinese exports of the
product concerned to the Community. The Canadian market was therefore deemed sufficiently
representative for the determination of normal value for the PRC.

Two exporting producers and an importers/traders association objected to the proposal to use
Canada as an analogue country. The arguments against the choice of Canada were that: (a) the
Canadian products are different because they are manufactured using sturdier components
according to US standards, not Community standards; (b) the Canadian and Chinese markets are
not comparable as they have different level of developments and size and (c) the cooperating
Canadian producer is related to one of the Community producers. The exporting producers in
question suggested Malaysia or India as appropriate analogue countries.

Following these comments, the Commission contacted seven Indian and one Malaysian known
producer of hand pallet trucks by sending them the relevant questionnaire. However, none of
these producers cooperated with the investigation and no information concerning normal value
was made available to the Commission from these two countries. It was therefore not possible for
the Commission to consider any of the countries proposed by the exporting producers as alternative
analogue countries.

(43) As regards the comments of the parties concerning the differences of quality and standards of the
Canadian products, it was claimed in essence that the average weight and fork width of the Canadian
trucks is greater than that of the Chinese trucks. However, the Commission did not establish any
overall significant difference either as regards the weight or the fork width between the Canadian and
the Chinese products. Both Canadian and Chinese products have different categories of weight and
fork width and a large amount of the products were comparable with each other. For those products
that were not directly comparable, appropriate adjustments could be made as explained in recital 51.
Another important factor is the lifting capacity of the truck.
In this respect, no major overall
differences were found as regards the lifting capacity of Chinese and Canadian hand pallet trucks.
Therefore, it was concluded that there are no significant differences in the quality of the Canadian
and the Chinese products.

28.1.2005

EN

Official Journal of the European Union

L 25/23

(44) As regards the comments of the exporting producers relating to the level of development and size of
the Canadian and Chinese markets,
it is noted that a decisive element is whether the market in
question is large enough to be representative in comparison to the volume of the exports of the
product concerned to the Community. As stated in recital 40,
in the present case the Canadian
market is found to be large enough to be representative in this respect. The fact that the Chinese
market is overall larger than that in Canada is irrelevant to the assessment of the appropriateness of
Canada as a possible analogue country in this case. Regarding the fact that the PRC is considered a
developing country whereas Canada is not, it is noted that as stated in recital 43, the quality of the
Canadian and Chinese products is comparable. On the basis of on-the-spot verifications carried out at
there were no
the premises of both Chinese and Canadian producers,
significant differences between the production facilities and methods of the Chinese and Canadian
producers. For these reasons, the status of the PRC as a developing country is not a relevant issue in
this respect and it does not render the choice of using Canada as an analogue country in this case an
unreasonable one.

it was concluded that

(45)

Regarding the allegation that the relationship between the Canadian cooperating producer and a
Community producer casts serious doubts as to the objectivity and accuracy of the data provided, no
basis for this allegation was found during the investigation. The Commission checked whether the
relationship had any distorting effect on the prices, costs of production and profitability of the
Canadian producer, in particular during the on-spot-verification of the company’s data. No indication
was found of any such distortions. The Commission established that the information provided was
accurate and reliable and could be used for the purposes of this investigation.

(46)

In view of the above, it is provisionally concluded that Canada constitutes an appropriate analogue
country in accordance with Article 2(7)(a) of the basic Regulation.

3.2. Determination of normal value

(47)

Pursuant to Article 2(7)(a) of the basic Regulation, normal value for the cooperating exporting
producers was established on the basis of verified information received from the producer in the
analogue country, i.e. on the basis of prices paid or payable on the domestic market of Canada for
comparable product types, since these were found to be made in the ordinary course of trade.

(48) As a result, normal value was established as the weighted average domestic sales price to unrelated

customers per type by the cooperating producer in Canada.

4. Export prices

(49) All export sales to the Community of two exporting producers were made directly to independent
customers in the Community. Therefore, the export price was established pursuant to Article 2(8) of
the basic Regulation on the basis of the prices actually paid or payable. As regards the two other
exporting producers, part of their export sales to the Community was made to importers with which
the exporters had a compensatory contractual arrangement which rendered the prices unreliable. In
these cases, in accordance with Article 2(9) of the basic Regulation, the export price was constructed
on the basis of resale prices to independent customers in the Community. Adjustments were made
for all costs incurred between importation and resale, including selling, general and administrative
expenses, and for profit. The profit used for this purpose was the average profit attained by the
cooperating unrelated importers of the product concerned.

5. Comparison

(50)

The comparison between the normal value and the export price was made on an ex-factory basis and
at the same level of trade. In order to ensure a fair comparison, account was taken, in accordance
with Article 2(10) of the basic Regulation, of differences in factors which were demonstrated to affect
prices and price comparability. On this basis, allowances for differences in transports costs, insurance
cost, handling and loading costs, packing costs, credit costs and discounts were made where
applicable.

L 25/24

EN

Official Journal of the European Union

28.1.2005

(51) As regards the analogue country Canada, the investigation established that a hand-break was used in
all Canadian hand pallet trucks, whereas this was not the case as regards the majority of Chinese
products. Therefore, an appropriate adjustment was made under Article 2(10)(a) of the basic Regu-
lation for the Canadian prices to eliminate the effect of the hand-break. In addition, some Canadian
products were also with forks having a lower height than the Chinese products. Therefore, an
appropriate adjustment was also made to the Canadian prices under Article 2(10)(a) of the basic
Regulation as regards these products to eliminate the effect of this difference.

6. Dumping margin

6.1. Dumping margin for the cooperating exporting producers granted IT

(52)

For the four exporting producers granted IT, the weighted average normal value for each type
the analogue country was compared with the
exported to the Community established for
weighted average export price of
the corresponding type exported to the Community by the
exporting producers, as provided for under Article 2(11) of the basic Regulation.

6.2. Dumping margin for all other exporting producers

(53)

In order to calculate the country-wide dumping margin applicable to all other exporters in the PRC,
the Commission first established the level of cooperation. A comparison was made between the total
imports of the product concerned originating in the PRC as reported in Eurostat statistics and the
volumes exported by the four cooperating exporting producers. Given that the total export volumes
as reported by the cooperating exporting producers were significantly lower than the import volume
reported in Eurostat statistics during the IP, it was provisionally concluded that there was significant
non-cooperation (around 47 % of total imports of the product concerned in the Community). In
order to avoid that exporting producers benefit from their non-cooperation and since there were no
indications that the dumping margins of the non-cooperating producers were lower, the country-
wide dumping margin was established as an average of the dumping margins established for the most
exported product types of the cooperating exporting producers, which was found higher than the
highest individual dumping margin established for a cooperating exporting producer.

6.3. Provisional dumping margins for the PRC

(54)

The provisional dumping margins expressed as a percentage of the net, free-at-Community-frontier
price, duty unpaid, are:

Ningbo Liftstar Material Transport Equipment Factory

Ningbo Ruyi Joint Stock Co. Ltd

Ningbo Tailong Machinery Co. Ltd

Zhejiang Noblelift Equipment Joint Stock Co. Ltd

All other companies

37,6 %

29,7 %

40,3 %

35,9 %

49,6 %

1. Community production

D. COMMUNITY INDUSTRY

(55)

The investigation established on the basis of information submitted by cooperating companies that
during the IP hand pallet trucks were manufactured by:

— the four applicant Community producers,

— one other producer, which has however ceased production after the IP and become importer.

There may be some other very small producers with insignificant production volumes, which have
not cooperated with the investigation.

28.1.2005

EN

Official Journal of the European Union

L 25/25

(56) Hence, it is provisionally concluded that hand pallet trucks produced by the five abovementioned
producers constitute the Community production within the meaning of Article 4(1) of the basic
Regulation.

2. Definition of the Community industry

(57)

The complaint was lodged by four producers, Bolzoni SpA, BT Products AB, Franz Kahl GmbH and
Pramac Lifters SpA, which have cooperated with the investigation. Together these producers represent
more than 60 % of total Community production of hand pallet trucks. They are therefore deemed to
constitute the ‘Community industry’ within the meaning of Articles 4(1) and 5(4) of the basic
Regulation and will hereinafter be referred to as such.

1. Community consumption

E. INJURY

(58)

Community consumption was based on the combined volume of all imports of hand pallet trucks
into the Community, based on Eurostat statistics, the total verified sales of the Community industry
and the sales of one other Community producer which ceased production in 2004.

(59)

Community consumption of hand pallet trucks was approximately 493 000 units during the IP. This
figure is 17 % higher than at the beginning of the period considered.

Community consumption

2000

2001

2002

2003

IP

Hand pallet trucks (in units)

422 008

428 255

413 561

491 648

492 814

Index

100

101

98

117

117

2. Imports of hand pallet trucks from the PRC into the Community

(a) V o l u m e a n d m a r k e t s h a r e o f

i m p o r t s

(60) On the basis of Eurostat data, the volume of imports from the PRC increased significantly over the
period considered, i.e. by 138 %. The increase of imports was particularly marked between 2002 and
2003 when they increased by 51 %.

Total dumped imports (units)

2000

2001

2002

2003

IP

Imports from the PRC (in units)

118 392

157 379

183 282

277 304

282 339

Index

100

133

155

234

238

(61)

The market share of the dumped imports increased sharply by more than 100 % during the period
considered. This increased market share was wholly taken from the share previously held by the
Community industry.

Market share of dumped imports

Market share of imports from PRC

Index

2000

28 %

100

2001

37 %

131

2002

44 %

158

2003

56 %

201

IP

57 %

204

L 25/26

EN

Official Journal of the European Union

28.1.2005

(b) P r i c e s o f

t h e d u m p e d i m p o r t s

(62) According to Eurostat data, the average price of the dumped imports from the PRC decreased
between 2000 and the IP by 34 %. The prices remained stable until 2001, then they decreased by
12 % in 2002 and even further decreased by another 25 % between 2002 and 2003.

Dumped imports price per unit

Price per unit

Index

2000

127

100

2001

127

100

2002

112

88

2003

84

66

IP

84

66

(c) P r i c e u n d e r c u t t i n g

(63)

For the determination of price undercutting the Commission analysed price data for the IP. The
weighted average net ex-works sales price to unrelated customers of the Community industry after
deduction of discounts and rebates was compared to the weighted average import price of the
cooperating Chinese exporting producers’ comparable types at the same level of trade, i.e. sales to
distributors. The import prices were at CIF level and an appropriate adjustment was made to include
any customs duties normally paid on importation. In two cases, where importers were found to have
compensatory contractual arrangements with Chinese exporting producers, resale prices to unrelated
customers of these importers were used.

(64) On that basis, the existence of price undercutting was provisionally established for imports from the
PRC. The level of undercutting, expressed as a percentage of the Community industry's average selling
price was found for all exporting producers to be above 55 %.

3. Situation of the Community industry

(a) P r e l i m i n a r y r e m a r k

(65)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports on the Community industry included an evaluation of all economic factors and indices
having a bearing on the state of the industry from 2000 (the base year) to the IP.

(b) P r o d u c t i o n , c a p a c i t y a n d c a p a c i t y u t i l i s a t i o n

Production in the Community

2000

2001

2002

2003

IP

Production (in units)

272 017

235 742

205 824

196 275

181 114

Index

100

87

76

72

67

Capacity (in units)

381 680

401 735

400 030

392 625

393 255

Index

Capacity utilisation

Index

100

71 %

100

105

59 %

82

105

51 %

72

103

50 %

70

103

46 %

65

(66) During the period considered, the Community industry production decreased by 33 %. As production
capacity remained more or less unchanged during the same period the capacity utilisation decreased
in line with the production.

28.1.2005

EN

Official Journal of the European Union

L 25/27

(c) S t o c k s

2000

2001

2002

2003

IP

Stocks in units

12 196

15 491

11 223

13 262

13 929

Index

100

127

92

109

114

(67) As a result of falling sales, there has been a small overall increase in the stock levels. Nevertheless, the
investigation showed that the development of stocks is not regarded as a particularly relevant
indicator of
the Community industry, as Community producers
generally produce according to specific orders and therefore stocks are usually goods awaiting
dispatch to customers.

the economic situation of

(d) S a l e s v o l u m e , s a l e s p r i c e a n d m a r k e t s h a r e

Sales in the EC

2000

2001

2002

2003

IP

Volume (in units)

147 002

144 166

126 821

113 701

111 374

Index

Market share

Index

Sales price (EUR/unit)

Index

100

35 %

100

290

100

98

34 %

97

285

98

86

31 %

88

278

96

77

23 %

66

267

92

76

23 %

66

267

92

(68) Although Community consumption increased between 2000 and the IP, the volume of sales of the
Community industry has decreased considerably. Consequently, its market share fell sharply as shown
above. This is to be seen in contrast with the development of imports from the PRC whose market
share increased considerably over the period considered.

(69)

The Community industry lost 34 % of its market share between 2000 and the IP.

(70) Unit prices of the Community industry’s own production for sales to unrelated customers in the
Community decreased during the period considered. The decrease was particularly marked between
2001 and 2003 when sales prices decreased by 6 %.

(71)

Traditionally, in this market, prices were driven by the quality of the product, the after sales service
and the warranties offered by the producers. During the period considered this situation has,
however, changed radically and price has become the determining sales factor during the IP.
Whilst unit sales prices decreased by 8 % between 2000 and the IP, the unit cost of production
has increased, because the price for the main raw material, steel, which accounts for an important
part of the cost of production, has been increasing, in particular during the IP.

(72) As Community industry’s prices could not match increases in costs of production, because of the
price suppression linked to dumped imports, the Community industry experienced a drop in profi-
tability.

L 25/28

EN

Official Journal of the European Union

28.1.2005

(e) F a c t o r s a f f e c t i n g C o m m u n i t y p r i c e s

(73)

The investigation showed that dumped imports were undercutting the average depressed sales price
of the Community industry by more than 59 % in the IP (see recital 64). This undercutting clearly led
to loss-making prices for the Community industry at a time when they needed to increase to cover
increased costs.

(f) G r o w t h

(74)

Between 2000 and the IP, when the Community consumption increased by 17 %, the sales volumes
of the Community industry on the Community market declined by 24 %. The Community industry
lost 12 percentage points of market share whereas, as already seen, dumped imports gained 29
percentage points of market share during the same period.

(75)

(g) P r o f i t a b i l i t y
The Community industry’s profitability has fallen sharply over the period, leading to losses in 2002,
which continually worsened during 2003 and the IP.

Profitability

2000

2001

2002

2003

IP

Pre-tax profit/loss margin

0,28 %

0,51 %

– 0,60 %

– 1,89 %

– 2,31 %

Index

100

181

– 212

– 665

– 815

(h) I n v e s t m e n t s , r e t u r n o n i n v e s t m e n t , c a s h f l o w a n d t h e a b i l i t y t o r a i s e

c a p i t a l

2000

2001

2002

2003

IP

Investments (in EUR)

727 783

2 297 136

2 570 831

1 378 790

1 552 986

Index

Return on investment

Index

100

0,05

100

316

0,10

220

353

– 0,14

– 290

189

– 0,36

– 776

213

– 0,45

– 963

Cash flow (in EUR)

231 559

1 511 068

1 253 486

– 81 556

– 659 913

Index

100

653

541

– 35

– 285

(76) Major investments were made during the period considered, particularly in 2001 and 2002. It should
be noted that the Community producers are well-established companies with a long tradition in the
hand pallet trucks production. Therefore, replacement investments, which formed major part of the
investments, were necessary in order to remain competitive.

(77) Due to the change of market conditions and more specifically the decline of sales prices, new
investments during the IP were to a large extent postponed or cancelled, in spite of the growing
expansion of Community consumption.

(78)

The return on investment, expressed in terms of net profits of the Community industry and the net
book value of its investments, followed the profitability trend and decreased by 1 063 % during the
period considered.

(79)

The Community industry’s cash flow deteriorated by 385 % during the period considered, in line with
the trend of profitability.

28.1.2005

EN

Official Journal of the European Union

L 25/29

(80)

The investigation established that it became more difficult for the Community industry to raise capital
during the period considered, in particular because of increasing losses suffered towards the end of
this period and in the IP.

(i) E m p l o y m e n t , p r o d u c t i v i t y a n d w a g e s

Employment

Index

2000

489

100

2001

488

100

2002

468

96

2003

452

92

IP

434

89

Average labour costs per employee
(EUR)

29 439

29 261

29 455

29 647

29 393

Index

Productivity (per employee)

Index

100

3 804

100

99

99

99

99

3 443

3 395

3 372

3 287

91

89

89

86

(81)

The employment for the like product has declined during the period considered. The productivity per
employee (established on the basis of the number of units produced divided by the number of
employees) decreased between 2000 and 2002 by 11 % and by another 3 % between 2003 and
the IP. However, this is due to the faster decrease of the production volume than employment. The
average employment cost per employee, reflecting wages, did not even increase in line with inflation,
but rather remained stable during the period considered.

(82)

Efforts to rationalise the production facilities have been taken by the Community producers with the
closure of factories and reduction in numbers of employees. The Community producers have been
able to limit the number of redundancies by moving part of the workforce to more profitable
operations of their business.

(j) M a g n i t u d e o f d u m p i n g , r e c o v e r y f r o m p a s t d u m p i n g o r s u b s i d i s a t i o n

(83)

The impact on the Community industry of the magnitude of the actual margin of dumping cannot be
considered negligible given the volume and the prices of the imports concerned.

(84)

Furthermore, there were no indications that the Community industry was recovering, during the IP,
from the effects of any past dumping or subsidisation.

4. Conclusion on injury

(85) During the period considered the presence of low-priced dumped imports from the PRC significantly
increased on the Community market and all relevant injury indicators for the situation of the
Community industry showed a negative development.

(86)

Some indicators worsened very substantially during the period considered. This was the case for
production volume, sales volume, market share, profitability, return on investments and cash flow.

(87)

Taking into account all factors, in particular the fall of market share of the Community industry at a
time of rising consumption and the significant financial losses leading to falling levels of investment
during the IP, it is provisionally considered that the Community industry has suffered material injury
within the meaning of Article 3(1) and 3(5) of the basic Regulation.

L 25/30

EN

Official Journal of the European Union

28.1.2005

1. Introduction

F. CAUSATION OF INJURY

(88)

In accordance with Articles 3(6) and 3(7) of the basic Regulation, the Commission examined whether
the dumped imports of hand pallet trucks originating in the PRC have caused the material injury
suffered by the Community industry. Known factors other than the dumped imports, which could at
the same time be injuring the Community industry, were also examined to ensure that possible injury
caused by these other factors was not attributed to the dumped imports.

2. Effect of the dumped imports

(89) Dumped imports from the PRC increased by 138 % over the period considered. This increase took
place at a faster pace than that of the Community consumption, which increased by 17 % during the
same period. These increased imports and rising consumption coincided with a period of decreasing
sales volumes for the Community industry. The market share of the dumped imports increased by
more than 100 % during the period considered. This increased market share of imports coincided
with a commensurate fall in the market share of the Community industry in the IP. It is therefore
clear that the imports took over the part of the market share lost by the Community industry.

(90)

(91)

(92)

These increased imports also undercut the prices of the Community industry by very substantial
margins so it can be reasonably said that they were responsible for the falling prices which led to
losses for the Community industry. The low price levels of the dumped imports also caused price
suppression and the Community industry could not increase its prices to cover costs increases. In
addition, the Community industry could not increase its capacity utilisation, as could have reasonably
happened given the increase in consumption observed over the period considered.

It is therefore provisionally concluded that the pressure exerted by the imports concerned, which
significantly increased their volume and market share and which were made at low, dumped prices,
played a determining role in causing the deterioration of the situation of the Community industry, in
particular in terms of lost sales and market share, profitability, return on investment and ability to
raise capital.

3. The effects of other factors

(a) T h e e x p o r t p e r f o r m a n c e o f

t h e C o m m u n i t y i n d u s t r y

It is noted that the export performance of the Community industry has decreased during the IP.
However, the volume of exports outside the Community during the period considered represented
only 11 % of the total sales volume of the Community industry. On average, export prices were
found lower than prices in the Community during the period considered. However, this is mainly due
to the different product mix. It should be noted that the presence of Chinese producers on the export
markets has led to reduced profits for the exports of the Community industry. Nevertheless, contrary
to sales in the Community, exports were still earning minor profits until the IP and therefore could
not have contributed significantly to the injury suffered by the Community industry.

Export sales outside the EC

2000

2001

2002

2003

IP

Volume (in units)

28 454

20 996

19 774

16 714

14 736

Index

Sales price (Euro/unit)

Index

100

245

100

74

232

95

69

223

91

59

222

91

52

226

92

(93)

Taking into consideration the small contribution of the export sales to the overall business of the
Community industry, this cannot be considered as a factor causing any material
injury to the
companies concerned.

28.1.2005

EN

Official Journal of the European Union

L 25/31

(b) I n v e s t m e n t s o f

t h e C o m m u n i t y i n d u s t r y

(94)

It has been noted that large and significant investments were made during the period considered. The
large investments made during 2001 and 2002 had been planned as far back as 1999, which is
before the large-scale entry of China onto the Community market and would normally have been
considered as sound decisions in the absence of dumped imports. Moreover, the major part of the
investment consisted of replacement investment.

(c) I m p o r t s f r o m o t h e r t h i r d c o u n t r i e s

(95)

Concerning imports from other third countries, any material injury cannot result from these imports
as so few imports come from sources other than the PRC. The other imports only represent 11 % of
total imports and their market share, which has declined since 2000, was only 4 % during the IP.

2000

2001

2002

2003

IP

Other imports (units)

29 442

20 426

13 742

19 804

18 927

Index

Market share of other imports

Index

100

7 %

100

69

5 %

68

47

3 %

48

67

4 %

58

64

4 %

55

(96)

The investigation has also shown that the enlargement of the Community has not changed these
findings made on the basis of the ‘old’ 15 Member States. There is no major production in the new
Member States, as there are only some small producers in Poland, the Czech Republic, Slovakia and
Slovenia.

(d) E U R / U S D e x c h a n g e r a t e

(97)

Certain interested parties claimed that any injury suffered by the Community industry was a conse-
quence of the preferential EUR/USD exchange rate for the Chinese producers.

(98)

In the particular case of the product concerned, imports from countries other than the PRC have also
benefited from the appreciation of the Euro. However, their volumes decreased during the period
considered, while imports from the PRC have increased throughout the same period by 138 %.
Although prima facie it cannot be excluded that the appreciation of the euro vis-à-vis the USD
might have favoured the imports of the product concerned from the PRC, the fact that currency
fluctuations did not have an effect on imports from other countries, indicates that it can not be
considered as a causal factor for the surge of dumped imports from the PRC.

(e) S e l l i n g b e h a v i o u r

(99)

Certain interested parties also claimed that the Community industry was offering products to some of
their largest customers at prices that are significantly lower than the prices of hand pallet trucks
imported from the PRC. According to them, the reason for this is that hand pallet trucks are used as
a ‘selling tool’ for larger and more expensive handling materials. This could have caused the injury
alleged by the Community industry.

(100)

It is noted that a hand pallet truck is indeed often used as a ‘selling tool’
in order to convince
customers to buy a package of hand pallet trucks and/or other more expensive material handling
equipment. However, there is no indication that these would be in significant quantities or at
particularly low prices.

L 25/32

EN

Official Journal of the European Union

28.1.2005

(f) S t r a t e g i c m i s t a k e s m a d e b y t h e E C p r o d u c e r s ;

s u c h a s

l o w q u a l i t y

p r o d u c t s a n d p r o d u c t i o n o f o w n p a r t s

(101) Community importers have alleged that the injury suffered by the Community industry is caused,
inter alia, by the introduction of low quality products on the Community market and the outsourcing
of parts.

(102)

In fact, the investigation has found that some Community producers have introduced new models of
a lower quality and at a lower price compared to their standard models. However, they insist that this
is in reaction to the high inflow of dumped imports from the PRC of such products rather than a
normal market development.

(103) The same reason is given by Community producers as to why they have outsourced the supply of
certain parts. They feel compelled to maximize profits and reduce losses while the Chinese dumping
is continuing.

4. Conclusion on causation

(104) The investigation has shown that large quantities of dumped imports have caused the prices of the
Community industry to fall significantly as this industry has fought unsuccessfully to maintain
market share and a satisfactory capacity utilisation, mainly because of Chinese price undercutting
and price suppression. Over the same period, the volume of imports from the PRC and their market
share have continued to increase sharply. The Commission has provisionally concluded that Chinese
if not the only, cause of this injury suffered by the Community industry.
imports are the main,

(105) Given the above analysis, which has properly distinguished and separated the effects, if any, of all
known factors on the situation of the Community industry from the injurious effects of the dumped
imports,
it is provisionally concluded that these other factors did not contribute to any material
degree to the injury suffered by the Community industry. Therefore, it is provisionally concluded that
injury suffered by the Community industry, as evidenced by the deterioration of all
the material
injury indicators and,
its loss making situation, negative returns on sales and
investments and difficulties in raising capital, was caused by dumped imports originating in the PRC.

in particular,

1. General remarks

G. COMMUNITY INTEREST

(106) The Commission examined whether, despite the provisional conclusion on the existence of injurious
dumping, compelling reasons existed that could lead to the conclusion that
in the
Community interest to adopt measures in this particular case. For this purpose, and in accordance
with Article 21(1) of the basic Regulation, the impact of possible measures on all parties involved in
this proceeding and also the consequences of not taking measures were considered on the basis of all
evidence submitted.

is not

it

2. Interests of Community industry

(107) The Community industry was in the past composed of a large number of both small and large
producers of hand pallet trucks. The investigation showed that several companies have ceased
production before, during and immediately after the period considered. Several of these former
manufacturers have changed their core business and are now acting as importers/traders of the
product concerned. The four companies constituting the Community industry have also had to
take drastic restructuring actions, such as closure of production plants and the implementation of
major redundancy policies during 2003 and the IP.

(108) Following the imposition of anti-dumping measures, it is expected that both sales volumes and sales
prices of the Community industry on the Community market will rise. This will improve the profit-
ability of the Community industry and alleviate the threat of further closures. Further to this, it is also
envisaged that some of the production plants that had to be closed down may be reopened with new
employment opportunities.

28.1.2005

EN

Official Journal of the European Union

L 25/33

(109) On the other hand, should anti-dumping measures not be imposed, it is likely that the negative trend
of the Community industry will continue. The Community industry will
likely continue to lose
market share and losses will continue to rise in the short term. In the longer term, production in
the Community would cease.

3. Interests of Community suppliers

(110) No Community suppliers of hand pallet trucks have made representations in this investigation by
replying to the questionnaire. However, it is clear that if no measures are imposed, several suppliers
would be seriously affected and would probably have to close down. The reason for this is that these
small suppliers of parts to the production of the hydraulics or suppliers of wheels are dependent for
their livelihood on their sales of parts to the Community producers of hand pallet trucks.

4. Interest of unrelated importers/traders

(111) A large number of unrelated importers/traders replied to the questionnaire within the time limit and

cooperated with the investigation. They all objected to the imposition of measures.

(112) The importers/traders that made representation in this case vary a lot both depending on their size
and the importance of the hand pallet trucks business in their operations. It is correct that a small
number of importers/traders are rather dependent on the hand pallet trucks business which can
represent up to 95 % of their turnover. However, for the majority of importers and traders the
investigation showed that sales of hand pallet
total
turnover. Should any anti-dumping measures be imposed, it is not likely that these traders would
be seriously affected, as the hand pallet trucks business is not their core business activity and it is
very easy for them to shift their product portfolio. Furthermore, many of these importers/traders are,
or used to be, customers of the Community industry and can switch, if necessary, their business
should measures be imposed.

less than 3 % of

trucks represent

their

(113) The importers also raised the argument that Community production is insufficient to meet the
demand and that
the Community
imports were therefore necessary. They also claimed that
producers could not provide the same quality and flexibility when it comes to delivery of the
product concerned. It is clear that Community production cannot meet consumption needs in the
Community, but there is very significant un-utilised capacity in the Community and there are other
sources of imports which could make up some of the shortfall. Moreover, the purpose of anti-
dumping measures is not to eliminate dumped imports, but to ensure that they enter the Community
at fair prices.

(114)

It is therefore provisionally concluded that should any measures be imposed, they will not have any
significant impact on the situation of unrelated importers and traders of hand pallet trucks in the
Community.

5. Interest of users

(115) Major users of hand pallet

trucks include warehouses, supermarkets,

transport and handling
companies. Replies to the relevant questionnaire were received from two users. These users were
neutral as to the imposition of measures. Furthermore, no element as to the likely impact of any anti-
dumping measures on their business was submitted. In any event, it is considered that hand pallet
trucks are of a minor importance in their business.

(116) The absence of further cooperation of users in this case leads to the provisional conclusion that anti-
dumping measures will not have any significant impact on the situation of users in the Community.

6. Conclusion on Community interest

(117)

It should be noted that the Community industry's loss making situation has resulted from its
difficulty to compete with the unfairly low-priced dumped imports.

L 25/34

EN

Official Journal of the European Union

28.1.2005

(118)

It is considered that the imposition of measures will restore fair competition on the market. The
Community industry should then at least be able to increase the volume and, perhaps to a limited
extent, prices of its sales, thereby generating the necessary level of return to justify continued
investment in its production facilities. The non-imposition of measures would seriously threaten
the viability of the Community industry, the disappearance of which would reduce supply and
competition to users.

(119) On the basis of the above,

it is provisionally concluded that the imposition of provisional anti-

dumping measures would not be against the Community interest.

H. PROVISIONAL ANTI-DUMPING MEASURES

1. Injury elimination level

(120)

In view of the provisional conclusions reached with regard to dumping,
injury, causation and
Community interest, provisional measures should be imposed in order to prevent further injury
being caused to the Community industry by the dumped imports.

(121) For the purpose of establishing the level of the provisional measures, account has been taken of both
the dumping margin found and the amount of duty necessary to eliminate the injury sustained by the
Community industry.

(122) The provisional measures should be imposed at a level sufficient to eliminate the injury caused by
these imports without exceeding the dumping margin found. When calculating the amount of duty
necessary to remove the effects of the injurious dumping, it was considered that any measures should
allow the Community industry to cover its costs of production and obtain overall a profit before tax
that could be reasonably achieved by an industry of this type on sales of the like product in the
Community under normal conditions of competition, i.e. in the absence of dumped imports. The pre-
tax profit margin used for this calculation was 5 % of turnover, since it was demonstrated that this
was the profit level that could reasonably be expected in the absence of injurious dumping, since it
was the profit level of the Community industry before the Chinese imports into the Community
started to significantly increase during the period considered. On this basis, a non-injurious price was
calculated for the Community industry of the like product. The non-injurious price has been obtained
by adding the above mentioned profit margin of 5 % to the cost of production.

(123) The necessary price increase was then determined on the basis of a comparison of the weighted
average import price, as established for the undercutting calculations, with the average non-injurious
price of products sold by the Community industry on the Community market. Any difference
resulting from this comparison was then expressed as a percentage of the average import cif
value. These differences were in all cases above the dumping margin found.

2. Provisional measures

(124) As the injury elimination level

measures should be based on the latter,
The rate of the provisional anti-dumping duty for PRC should be as follows:

is higher than the dumping margin established, the provisional
in accordance with Article 7(2) of the basic Regulation.

People’s Republic of China

AD duty rate

Ningbo Liftstar Material Transport Equipment Factory, Zhouyi Village, Zhanqi Town, Yin
Zhou District, Ningbo City, Zhejiang Province, 315144, PRC

Ningbo Ruyi Joint Stock Co. Ltd, 656 North Taoyuan Road, Ninghai, Zhejiang Province,
315600, PRC

Ningbo Tailong Machinery Co. Ltd, Economic Developing Zone, Ninghai, Ningbo City,
Zhejiang Province, 315600, PRC

Zhejiang Noblelift Equipment Joint Stock Co. Ltd, 58, Jing Yi Road, Economy Development
Zone, Changxin, Zhejiang Province, 313100, PRC

All other companies

37,6 %

29,7 %

40,3 %

35,9 %

49,6 %

28.1.2005

EN

Official Journal of the European Union

L 25/35

(125) The individual company anti-dumping duty rates specified in this Regulation were established on the
basis of the findings of the present investigation. Therefore, they reflect the situation found during
that investigation with respect to these companies. These duty rates (as opposed to the countrywide
duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products
originating in the country concerned and produced by the companies and thus by the specific
Imported products produced by any other company not specifically
legal entities mentioned.
mentioned in the operative part of this Regulation with its name and address,
including entities
related to those specifically mentioned, cannot benefit from these rates and shall be subject to the
duty rate applicable to ‘all other companies’.

(126) Any claim requesting the application of these individual company anti-dumping duty rates (e.g.
following a change in the name of the entity or following the setting up of new production or
sales entities) should be addressed to the Commission (1) forthwith with all relevant information, in
particular any modification in the company’s activities linked to production, domestic and export
sales associated with e.g. that name change or that change in the production and sales entities. The
Commission, if appropriate, will, after consultation of the Advisory Committee, amend the Regu-
lation accordingly by updating the list of companies benefiting from individual duty rates.

I. FINAL PROVISION

(127)

In the interest of sound administration, a period should be fixed within which the interested parties
which made themselves known within the time limit specified in the notice of initiation may make
their views known in writing and request a hearing. Furthermore, it should be stated that the findings
concerning the imposition of duties made for the purposes of this Regulation are provisional and
may have to be reconsidered for the purpose of any definitive duty,

HAS ADOPTED THIS REGULATION:

Article 1

A provisional anti-dumping duty is hereby imposed on imports of hand pallet trucks and their
1.
essential parts,
falling within CN codes ex 8427 90 00 and
ex 8431 20 00 (TARIC codes 8427 90 00 10 and 8431 20 00 10), originating in the People’s Republic
of China.

the chassis and the hydraulics,

i.e.

The rate of the provisional anti-dumping duty applicable to the net, free-at-Community-frontier price,

2.
before duty, for products manufactured by the companies listed below shall be as follows:

People's Republic of China

Rate of duty (%)

TARIC additional code

Ningbo Liftstar Material Transport Equipment Factory, Zhouyi Village,
Zhanqi Town, Yin Zhou District, Ningbo City, Zhejiang Province,
315144, PRC

Ningbo Ruyi
Zhejiang Province, 315600, PRC

Joint Stock Co, Ltd, 656 North Taoyuan Road, Ninghai,

Ningbo Tailong Machinery Co. Ltd, Economic Developing Zone, Ninghai,
Ningbo City, Zhejiang Province, 315600, PRC

Jing Yi Road,
Zhejiang Noblelift Equipment
Economy Development Zone, Changxin, Zhejiang Province, 313100, PRC

Joint Stock Co. Ltd, 58,

All other companies

(1) European Commission

Directorate General for Trade
Directorate B
J-79 5/17
Rue de la Loi/Wetstraat 200
B-1049 Brussels

37,6

29,7

40,3

35,9

49,6

A600

A601

A602

A603

A999

L 25/36

EN

Official Journal of the European Union

28.1.2005

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

3.
subject to the provision of a security, equivalent to the amount of the provisional duty.

4.

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

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96, interested parties may request disclosure of
the essential facts and considerations on the basis of which this Regulation was adopted, make their views
known in writing and apply to be heard orally by the Commission within 30 days of the date of entry into
force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the
application of this Regulation within one month of the date of its entry into force.

This Regulation shall enter into force on the day following its publication in the Official Journal of the
European Union.

Article 3

Article 1 of this Regulation shall apply for a period of six months.

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

Done at Brussels, 27 January 2005.

For the Commission

Peter MANDELSON
Member of the Commission