Commission Regulation (EC) No 145/2005 of 28 January 2005 imposing a provisional anti-dumping duty on imports of barium carbonate originating in the People's Republic of China
Date: 2005-01-28
Institutions: European Commission
Subjects: China, anti-dumping duty, chemical salt, common tariff policy

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COMMISSION REGULATION (EC) No 145/2005

of 28 January 2005

imposing a provisional anti-dumping duty on imports of barium carbonate originating in the
People's Republic of China

THE COMMISSION 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
imports from countries not members of the European Community (1) (the basic Regulation) and in particular
Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

1.

INITIATION

(1)

(2)

(3)

(4)

(5)

On 30 April 2004, the Commission announced, by a notice (notice of initiation) 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 barium carbonate originating in the People's Republic of China (PRC
or country concerned).

The proceeding was initiated as a result of a complaint lodged in March 2004 by Solvay Barium
Strontium GmbH (the complainant), the sole producer of barium carbonate in the Community
representing 100 % of the Community production. The complaint contained evidence of dumping
of the said product and of material injury resulting therefrom, which was considered sufficient to
justify the initiation of a proceeding.

2. PARTIES CONCERNED BY THE PROCEEDING

The Commission officially advised the complainant, the exporting producers, importers, suppliers and
users known to be concerned, and representatives of the PRC, of the initiation of the proceeding.
Interested parties were given an opportunity to make their views known in writing and to request a
hearing within the time limit set in the notice of initiation.

The complainant producer, exporting producers, importers, users and user associations made their
views known. All interested parties, who so requested and showed that there were particular reasons
why they should be heard, were granted a hearing.

In order to allow exporting producers in the PRC to submit a claim for market economy treatment
(MET) or individual treatment (IT), if they so wished, the Commission sent MET and IT claim forms
to the Chinese companies known to be concerned. Five companies requested MET pursuant to Article
2(7) of the basic Regulation or IT should the investigation establish that they did not meet the
conditions for MET.

(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 104, 30.4.2004, p. 58.

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(6)

(7)

(8)

In the notice of initiation, the Commission indicated that in view of the apparent large number of
exporters/producers and importers sampling may be applied in this investigation. However, given the
lower than expected number of exporting producers in the PRC and importers and users in the
Community, which indicated their willingness to cooperate, it was decided that sampling was not
necessary.

The Commission sent questionnaires to all parties known to be concerned and to all the other
companies that made themselves known within the deadlines set out in the notice of initiation.
Replies were received from the complainant Community producer, five unrelated importers, one raw
material supplier, six users, one association of users and five exporting producers in the PRC.

The Commission sought and verified all the information deemed necessary for a provisional deter-
mination of dumping, resulting injury and Community interest. Verification visits were carried out at
the premises of the following companies:

(a) Community producer:

— Solvay Barium Strontium GmbH, Germany.

(b) exporting producers in the PRC:

— Hubei Jingshan Chutian Barium Salt Corp. Ltd,

— Zaozhuang Yongli Chemical Co.,

— Guizhou Hongkaj Chemical Co. Ltd and related Hengyang Hong Xiang Co. Ltd,

— Guizhou Red Star Developing Co.,

— Hebei Xinji Chemical Group Co. Ltd.

(c) unrelated importers:

— Kimpe Sarl, France,

— Norkem BV, Netherlands.

(d) Community users:

— Ilpea SpA, Italy.

(9)

In view of the need to establish a normal value for exporting producers in the PRC to which MET
might not be granted, a verification visit to establish normal value on the basis of data from an
analogue country took place at the premises of the following company:

— Chemical Products Corporation (CPC), Cartersville, producer in the United States of America.

3.

INVESTIGATION PERIOD

(10)

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

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B. PRODUCT CONCERNED AND LIKE PRODUCT

1. PRODUCT CONCERNED

(11)

The product concerned is certain barium carbonate with a strontium content of more than 0,07 % by
weight and a sulphur content of more than 0,0015 % by weight, whether in powder, pressed granular
or calcined granular form, originating in the PRC, falling within CN code ex 2836 60 00.

2. LIKE PRODUCT

(12) No differences were found between the product concerned and the barium carbonate produced and
sold on the domestic market in the PRC and the United States of America (USA), which served as an
analogue country for the purpose of establishing the normal value with respect to imports from the
PRC. Indeed, barium carbonate produced and sold in the USA has the same basic physical and
chemical characteristics and uses compared with that exported from the PRC to the Community.
Likewise, no differences were found between the product concerned and the barium carbonate
produced by the Community industry and sold on the Community market. They both share the
same physical and chemical characteristics and uses. Consequently, barium carbonate produced and
sold on the domestic market of the PRC and barium carbonate produced and sold on the domestic
market of the analogue country, as well as barium carbonate produced and sold in the Community
by the Community industry have the same basic physical and chemical characteristics and uses. It is
therefore concluded that all types of barium carbonate are considered to be alike within the meaning
of Article 1(4) of the basic Regulation.

C. DUMPING

1. MARKET ECONOMY TREATMENT

(13)

In anti-dumping investigations concerning imports originating in the PRC, normal value shall be
determined in accordance with paragraphs 1 to 6 of Article 2(7)(b) of the basic Regulation for those
producers which were found to meet the criteria laid down in Article 2(7)(c) of the basic Regulation.

(14)

Briefly, and for ease of reference only, these criteria, fulfilment of which the applicant companies have
to demonstrate, are set out in summarised form below:

— business decisions and costs are made in response to market signals, and without significant State

interference,

— accounting records are independently audited in line with international accounting standards and

applied for all purposes,

— there are no significant distortions carried over from the former non-market economy system,

— legal certainty and stability are provided by bankruptcy and property laws,

— currency exchanges are carried out at the market rate.

(15)

Five exporting producers in the PRC requested MET pursuant to Article 2(7)(b) of the basic Regu-
lation and replied to the MET claim form for exporting producers.

(16)

The request of two companies has been rejected on the basis of a first analysis of the MET claim form
which failed to show that all the criteria were met. In particular these companies, which were fully or
predominantly State owned, and had a board of directors entirely or predominantly consisting of
State nominated directors, could not demonstrate that there was no significant state interference in
their business decisions. For the remaining three companies, the Commission sought and verified at
the premises of these companies all
information submitted in the MET applications and deemed
necessary.

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(17)

The investigation showed that two companies fulfilled all the criteria required and they were therefore
granted MET. The exporting producers in the PRC which were granted MET are:

— Hubei Jingshan Chutian Barium Salt Corp. Ltd

— Zaozhuang Yongli Chemical Co.

(18)

The following table summarises the determination for the three companies for which MET was not
granted against each of the five criteria as set out in Article 2(7)(c) of the basic Regulation.

Company

1

2

3

Article
2(7)(c)
indent 1

Not met

Not met

Not met

Article
2(7)(c)
indent 2

Criteria

Article
2(7)(c)
indent 3

Article
2(7)(c)
indent 4

Article
2(7)(c)
indent 5

Not met

Not met

Met

Met

Source: Verified questionnaire replies of cooperating Chinese exporters.

(19)

The companies concerned were given an opportunity to comment on the above findings.

(20) As far as company 2 is concerned, the shareholders of its related company could not be identified
and it could not be established who ultimately controlled this company. Therefore, significant State
interference could not be excluded. Although the company contested this fact, it could not provide
any information or evidence which would have shown that it was mainly controlled by private
entrepreneurs and free from significant State interference. It was therefore concluded that the criteria
laid down in Article 2(7)(c) indent 1 of the basic Regulation was not fulfilled.

(21)

For the same company, the investigation revealed significant deficiencies in the audited accounts.
Thus, the company's own auditors made reservations with regard to, amongst others, the booked
sales figures, assets valuation and depreciation. However, no corrections were made in order to rectify
the shortcomings identified by the auditors and no explanations could be given by the company as to
why so far no account was taken of the reservations expressed by the auditors. Given these short-
comings,
it would not have been possible to make a reliable dumping calculation on this basis.
Although the company contested these conclusions, it did not provide any reasonable explanation
why its accounts would be reliable despite these deficiencies. In view of the elements set out above
which put into question the reliability of the accounts and that the problems identified by the
auditors were not corrected, it is concluded that the criterion set out under Article 2(7)(c) indent
2 of the basic Regulation is not met.

(22)

Finally, as far as the acquisition of company 2's assets is concerned, the company could not explain
under which conditions some of the company's assets were transferred from the collectively-owned
pre-existing company. The Commission therefore concluded that the conditions of Article 2(7)(c)
indent 3 of the basic Regulation were not met. Company 2 disagreed with these conclusions, but did
not provide any information or evidence with regard to the transfer of assets which would have
shown that there are no significant distortions from the former non-market economy regime. The
claim made by company 2 was therefore unfounded and was rejected.

(23)

The Advisory Committee was consulted and the parties directly concerned were informed
accordingly. The Community industry was given the opportunity to comment, and did not
oppose to the MET determination.

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2.

INDIVIDUAL TREATMENT (IT)

(24)

Further to Article 2(7)(a) of the basic Regulation, a country-wide duty,
is established for
countries falling under Article 2(7) of the basic Regulation, except in those cases where companies
are able to demonstrate, in accordance with Article 9(5) of the basic Regulation, that (a) they are free
to repatriate capital and profits; (b) their export prices and quantities, as well as the conditions and
terms of the sales are freely determined; (c) the majority of shares belong to private persons. State
officials in the board of Directors or holding key management positions are either a minority or it
must be demonstrated that the company is nonetheless sufficiently independent from State inter-
ference; (d) exchange rate conversions are carried out at market rates, and (e) any State interference is
not such as to permit circumvention of measures if exporters are given different rates of duty.

if any,

(25)

The three exporting producers to which MET was not granted also claimed individual treatment.
Therefore, the Commission examined whether these three exporting producers demonstrated that
they are complying with the criteria set out in Article 9(5) of the basic Regulation.

(26)

Two companies (company 1 and 3) were found to be fully or predominately State owned and had a
board of directors consisting fully or entirely of State nominated directors. These companies could
not demonstrate that they were sufficiently independent from State interference and consequently did
not meet the conditions set in Article 9(5)(c) of the basic Regulation.

(27) Although the third exporting producer (company 2) was partly privately owned, it could not demon-
strate who ultimately controlled it and significant State interference could therefore not be excluded.
As a consequence, the company was not able to demonstrate that it met criterion 9(5)(c) of the basic
Regulation.

(28)

Furthermore, for all three companies,
it was found that there is a risk of circumvention of the
measures if these exporters would be given an individual duty rate. This risk results partly from
the above-mentioned State influence in the operation of two of the companies, and the fact that the
other exporter could not demonstrate the absence of significant State influence either. Moreover,
given the commodity nature of the product concerned, which cannot be identified as having been
produced by a particular producer, the risk of circumvention of measures by way of exporting via a
company with a lower duty was also deemed significant. The companies therefore did not meet the
conditions set in Article 9(5)(e) of the basic Regulation.

(29)

Consequently, none of the three exporting producers met the conditions set in Article 9(5) of the
basic Regulation. It was therefore concluded that IT should not be granted to any of the exporting
producers to which MET was not granted.

3.1. Determination of normal value for all exporting producers not granted MET

3. NORMAL VALUE

(a)

Analogue country

(30)

Pursuant to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not
granted MET has to be established on the basis of the prices or constructed value in a market
economy third country (analogue country).

(31)

In the notice of initiation, the USA was envisaged as an appropriate market economy third country
for the purpose of establishing normal value for the PRC. Interested parties were invited to comment
on this choice.

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(32)

Three exporting producers contested this choice claiming that the level of economic development, the
manufacturing process and the access to raw materials were different in the USA and the PRC.
Furthermore, it was argued that the level of competition in the USA was low given that there was
only one barium carbonate producer and that the domestic market was protected by anti-dumping
duties. South Korea, Russia and India were proposed as alternative analogue countries.

(33)

The Commission sought cooperation from other potential analogue countries such as India, Japan
and Brazil. However, none of the producers in these countries was willing to cooperate.

(34)

In any case, the Commission concluded that South Korea was not an appropriate analogue country
because it had no domestic source of barite, the most important raw material, and only an insig-
nificant production of barium carbonate. Furthermore, the Commission rejected Russia as an appro-
priate analogue country because the barium carbonate produced in Russia was of a significantly lower
quality and therefore not comparable to the product produced in the PRC and the Community. The
investigation revealed, also that the domestic market in Brazil was small and that the level of
protection was higher than in the USA. Brazil was therefore not considered as an appropriate
analogue country. Furthermore, no evidence was available indicating that any of the countries
proposed as an alternative analogue country was more suitable than the USA.

(35) With regard to the USA, it was found that the production volume was substantial and representative

with regard to Chinese exports of barium carbonate.

(36) As far as the level of economic development and the different production processes are concerned it
was considered that there might indeed be some differences. USA is a highly industrialised economy
and the producer in the USA employed a more advanced and more efficient production method than
that used in the PRC. However, it should be noted that even if these differences would affect normal
value, they should normally result in a lower normal value in the USA and thus be to the advantage
if necessary, appropriate
of
adjustment can be made.
the production processes
cannot be excluded,
it has not been demonstrated that in any particular country other than the
USA the production process would be more comparable to the one used in the PRC.

is recalled that,
In any case, although local variations of

the Chinese exporting producers. Furthermore,

it

(37)

Regarding the competition on the domestic market of the USA, the USA producer was subject to
competition from imports from the PRC, Germany and Mexico. Imports of these countries repre-
sented approximately 30 % of
It was therefore
concluded that there was a fair level of competition in the USA.

the market, which was considered substantial.

(38) As far as the access to raw materials is concerned, it was found that the USA was, together with the
PRC, one of
It was therefore
concluded that the access to the raw material in terms of availability was comparable in the USA
and in the PRC.

the largest barite producers and had substantial barite reserves.

(39)

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

(b)

Determination of normal value in the analogue country

(40)

Pursuant to Article 2(7)(a) of the basic Regulation, normal value for the exporting producers not
granted MET was established on the basis of verified information received from the producer in the
analogue country with regard to domestic costs and sales of the like product in the USA market for
comparable product types.

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trade,

i.e. were sold at

(41) Normal value was established by using the methodology outlined in recitals 43 to 47 and 53 to 59.
Domestic sales in the USA were representative, albeit certain product types were not sold in the
ordinary course of
types, normal value was
constructed in accordance with Article 2(3) and 2(6) of the basic Regulation, by adding a reasonable
amount of selling, general and administrative (SG&A) expenses and profit margin to the cost of
manufacturing. Since domestic sales of the product concerned were representative, the company's
SG&A were considered reliable and were used. As far as the profit margin is concerned,
the
company's own profit margin realised for domestic sales of the product concerned could not be
used because these sales were overall made at a loss. Since no other producer in the US cooperated,
the Commission used the profit margin applicable to the production and sales of the same general
category of products in accordance with Article 2(6)(b) of the basic Regulation.

losses. For these product

(42)

For all other product types, normal value was established as the weighted average domestic sales price
to unrelated customers by the cooperating producer in the USA, adjusted as described below.

3.2. Determination of normal value for exporting producers granted MET

(43) As far as the determination of normal value is concerned, the Commission first established, for each
cooperating exporting producer, whether its total domestic sales of barium carbonate were repre-
sentative in comparison with its total export sales to the Community. In accordance with Article 2(2)
of the basic Regulation, domestic sales were considered representative when the total volume of such
sales represented at least 5 % of the total export sales volume of the producer to the Community. On
this basis, for both exporting producers overall domestic sales of the product concerned during the IP
were made in representative quantities.

(44)

The Commission subsequently identified those types of the product concerned sold domestically that
were identical or directly comparable with the types sold for export to the Community.

(45)

For each type sold by the exporting producers on their domestic markets and found to be directly
comparable with the type of barium carbonate sold for export to the Community, it was established
whether domestic sales were sufficiently representative for the purposes of Article 2(2) of the basic
Regulation. Domestic sales of a particular type of barium carbonate were considered sufficiently
representative when the total domestic sales volume of that type during the IP represented 5 % or
more of the total sales volume of the comparable type of barium carbonate exported to the
Community. As a result of this analysis, all product types but one, were sold in representative
quantities.

(46)

The Commission subsequently examined whether the domestic sales of each type of barium
carbonate, sold domestically in representative quantities could be regarded as having been made in
the ordinary course of trade in accordance with Article 2(4) of the basic Regulation, by establishing
the proportion of profitable sales to independent customers of the barium carbonate type in question.

(47) Domestic sales transactions were considered profitable where the unit price of a specific product type
was equal to or above the cost of production. Cost of production for each product type sold on the
domestic market during the IP was therefore determined.

(48) One exporting producer claimed an adjustment for start-up costs on the basis that production at
normal capacity utilisation rates only started after the beginning of the IP. The company started
producing barium carbonate only shortly before the beginning of the IP. The company argued that
after it bought its production lines it invested substantial amounts in repairs before test production
and finally normal production started.
It was claimed that the average start-up phase for both
production lines was 11 months and that normal production would have started eight months
after beginning of the IP.

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(49)

(50)

it was found that

to what was claimed by this exporting producer,

the monthly
In contrast
production and sales volumes were at the same level during the entire IP and in some cases even
exceeded the monthly volumes produced and sold in the period where allegedly normal capacity
utilisation rates were reached. The substantial sales volumes throughout the entire IP did not point to
sales from a mere test production. It was consequently concluded that the company produced at
normal capacity utilisation rates throughout the entire IP. Furthermore, the company did not show
that during the alleged start-up phase, unit production costs were higher than in the period where
allegedly normal capacity utilisation rates were reached. In any case, even if costs would have been
higher, this would not have been a consequence of lower production volumes as evidenced above. It
was consequently concluded that the claim for an adjustment with regard to start-up costs was
contradictory and not confirmed by any evidence and was therefore rejected.

The same producer claimed that the depreciation method used by the company for ‘investments on
fixed assets’ did not reasonably reflect the costs associated with the production and sale of the
product concerned. The investments made corresponded to the initial repair costs of the production
lines after their acquisition and were accounted for in one financial year, given that the company
considered that the useful
life of the repaired assets would be less than one year. The company
expected to then make further investments after this period. Given, however, that no further repairs
were needed to the production lines, the actual lifetime of the investments was longer than originally
expected. The company claimed that the depreciation period should thus be adapted in accordance
with the economic reality and the costs as booked in the accounts adjusted accordingly pursuant to
Article 2(5) of the basic Regulation.

(51) With regard to the above claim, it is considered that higher than normal repair expenses in the first
year of the ownership of used equipment is not unusual and to book such higher costs in the first
year corresponds to normal accounting practices. The methodology chosen by the company was
therefore not unreasonable, but corresponded to normal practice. The fact that no further repair cost
incurred afterwards does not justify departing from normal accounting practice. The company's claim
to adjust costs in this regard was therefore not warranted and was rejected.

(52)

The other exporting producer claimed that the value of a by-product (sulphur) should be deducted
from the cost of production of the product concerned. Sulphur is further processed from a gas (H2S)
which is set free automatically when producing barium carbonate. However, the company had no
technical means to measure the quantity of gas used in the production of sulphur and could therefore
not quantify its claim. Furthermore, in the company's accounting system, sulphur and the product
concerned were treated as two separate products and the costs of producing barium carbonate were
established without taking into account the value of sulphur. On this basis, the claim was provi-
sionally rejected.

(53) As mentioned in recital 46, the proportion of profitable sales to independent customers in the
domestic market of the product type in question was established. In cases where the sales volume
of the barium carbonate type, sold at a net sales price equal to or above the calculated cost of
production, represented more than 80 % of the total sales volume of that type, and where the
weighted average price of that type was equal to or above the cost of production, normal value
was based on the actual domestic price, calculated as a weighted average of the prices of all domestic
sales of that type made during the IP, irrespective of whether these sales were profitable or not. In
cases where the volume of profitable sales of the barium carbonate type represented 80 % or less of
the total sales volume of that type, or where the weighted average price of that type was below the
cost of production, normal value was based on the actual domestic price, calculated as a weighted
average of profitable sales of that type only, provided that these sales represented 10 % or more of
the total sales volume of that type.

(54)

In cases where the volume of profitable sales of any product type represented less than 10 % of the
total sales volume of that type, it was considered that this particular type was sold in insufficient
quantities for the domestic price to provide an appropriate basis for the establishment of the normal
value.

(55) As a result of the above analysis, it was found that all product types, except one, were sold in the

ordinary course of trade by reason of price.

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(56)

For all product types which were either not sold in representative quantities or which were not sold
in the ordinary course of trade by reason of price, domestic prices of the exporting producer in
question could not be used in order to establish normal value and another method had to be applied.

(57)

In this regard, the Commission used constructed normal value, in accordance with Articles 2(3) and
2(6) of the basic Regulation.

(58)

(59)

(60)

(61)

In accordance with Article 2(3) of the basic Regulation, normal value was constructed on the basis of
each exporting producer's own cost of manufacturing plus a reasonable amount for selling, general
and administrative (SG&A) expenses and for profit.

Since SG&A and the profit realised by each of the exporting producers concerned on the domestic
market constituted reliable data within the meaning of Article 2(6) of the basic Regulation, the
exporting producers' own SG&A and profit were used in all cases where normal value was
constructed.

4. EXPORT PRICES

For all cooperating Chinese exporting producers which were granted MET, export sales were
determined on an individual company basis. All export sales to the Community of the exporting
producers concerned were made directly to independent customers in the Community and therefore,
the export price was established in accordance with Article 2(8) of the basic Regulation on the basis
of the prices actually paid or payable.

5. COMPARISON

The normal value and export prices were compared on an ex-works basis at the same level of trade.
For the purpose of ensuring a fair comparison between the normal value and the export price, due
allowance in the form of adjustments was made for differences affecting prices and price compar-
ability in accordance with Article 2(10) of the basic Regulation. Appropriate adjustments were
granted in all cases where they were found to be reasonable, accurate and supported by verified
evidence.

(62) On this basis, allowances for differences in packing costs, credit cost, discounts and rebates,
commissions, inland freight, insurance, handling, after sales services and level of trade were made.
As far as bank charges are concerned, an adjustment according to Article 2(10)(k) of the basic
Regulation was made.

(63) As far as the level of trade is concerned, it was found that the majority of the domestic sales in the
USA were made to end-users, while export sales of the product concerned from the PRC were made
exclusively to distributors. The adjustment was calculated on the basis of the average price difference
of sales to end-users and sales to distributors on the USA domestic market in accordance with Article
2(10)(d) of the basic Regulation.

(64)

(65)

It was further found that in the PRC large quantities of the main raw material barite were accessible
without any specific mining process while in the USA barite was mined either surface or under-
in China was transported to near-by factories involving
ground.
practically no transport cost, while in the USA the cost to transport barite from the mines to the
factories was substantial.

the raw material

In addition,

It was therefore considered that appropriate adjustments to the normal value in the USA were
warranted in order to bring the conditions of the production of barium carbonate in the USA to
a comparable level with the ones in the PRC. Therefore, the normal value was adjusted by taking into
account the major differences in the production conditions,
i.e. the differences in costs for the
production and transport of the main raw material barite.

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(66)

Finally, it was found that in the USA substantial environmental costs were incurred, while in the PRC
such costs were non-existent. Therefore, the normal value was adjusted accordingly.

6.1.

For the cooperating exporting producers granted MET

6. DUMPING MARGIN

(67) According to Article 2(11) of the basic Regulation, the dumping margin for each exporting producer
was established on the basis of a comparison between the weighted average normal value with the
weighted average export price per product type, as determined above.

(68)

The provisional dumping margins for the cooperating exporting producers to which MET was
granted, expressed as a percentage of the cif net free-at-Community-frontier price, before duty, are:

— Hubei Jingshan Chutian Barium Salt Corp. Ltd
— Zaozhuang Yongli Chemical

11,2 %

24,4 %.

(69)

(70)

6.2.

For all other exporting producers

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, calculated on the basis of Eurostat, and the
actual questionnaire replies received from the exporters in the PRC to which MET was not granted.
On this basis, it was established that the level of cooperation was close to 100 %.

The dumping margin for the remaining cooperating exporters which were not granted MET was
consequently calculated by comparing the weighted average normal value established for the
analogue country and the weighted average export price reported by the cooperating exporters to
arrive at a weighted average dumping margin for the remaining cooperating exporters.

(71) On this basis the country-wide level of dumping was provisionally established at 34,0 % of the cif

Community frontier price.

D. INJURY

1. DEFINITION OF THE COMMUNITY INDUSTRY

(72)

The sole cooperating Community producer accounted for 100 % of the Community production of
barium carbonate during the IP. It is therefore deemed to constitute the Community industry within
the meaning of Article 4(1) and Article 5(4) of the basic Regulation.

(73) As the Community industry is thus constituted of only one producer, all figures relating to the latter

had to be indexed for reasons of confidentiality.

2. COMMUNITY CONSUMPTION

(74)

Community consumption was established on the basis of sales volumes of the Community industry
on the Community market plus imports from the PRC and other third countries, based on Eurostat.
Community consumption of barium carbonate decreased by 10 % between 2000 and 2002 due to
the difficult economic situation in general. Afterwards, it recovered to the level of 2000, whereas the
imports from the PRC has increased, as shown in the table below.

Community consumption
(tonnes)

2000

137 742

2001

130 243

2002

124 568

IP

136 722

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3.

IMPORTS FROM THE COUNTRY CONCERNED

(a)

Volume and market share

(75)

The import volume of barium carbonate from the PRC into the Community increased from 54 167
tonnes in 2000 to 63 742 tonnes in the IP, i.e. by 18 % over the period considered. It is to be noted
that imports decreased to 48 900 tonnes in 2002, before quickly recovering in the IP.

(76)

The corresponding market share was around 40 % in 2000 and increased by 19 % over the period
considered, mainly due to the substantial increase of imports from the PRC in 2003.

(b)

Prices

(77) Average prices for imports from the PRC decreased constantly from EUR 253/tonne in 2000 to EUR

186/tonne during the IP.

(c)

Price undercutting

(78)

For the purposes of analysing price undercutting, the weighted average sales prices per product type
of the Community industry to unrelated customers on the Community market, adjusted to an ex-
works basis, were compared to the corresponding weighted average export prices of the imports
concerned, established on a cif basis with an appropriate adjustment for the customs duties and post-
importation costs. The comparison was made after deduction of rebates and discounts.

(79) Unlike imports from the PRC, the Community industry guarantees a stable product according to the
customer specifications with always exactly the same impurities and offers customer services such as
in the price
laboratory analyses. The market value of
comparison by making an adjustment of 25 % to the prices of the Community industry, based on
information received from the Community industry.

these services was taken into account

(80)

It was submitted by several importers and users that the Community industry charges higher prices
due to the higher reactivity of its product. This argument had to be rejected as the PRC exporters are
able to supply equivalent products for each grade produced by the Community industry due to
technical progress they made during recent years. In addition, the most reactive grade of barium
it was
carbonate accounts for less than 5 % of the sales of the Community industry. Therefore,
considered that an adjustment for differences in reactivity was not necessary.

(81)

The comparison showed that during the IP the product concerned originating in the PRC was sold in
the Community at prices which undercut the Community industry's prices by 28 % to 31 %, when
expressed as a percentage of the latter.

4. SITUATION OF THE COMMUNITY INDUSTRY

(82)

In accordance with Article 3(5) of the Basic Regulation, the Commission examined all relevant
economic factors and indices having a bearing on the state of the Community industry.

(83)

It was analysed whether the Community industry is still in the process of recovering from the effects
of past subsidisation or dumping, but no evidence was found that this should be the case.

(a)

Production

(84)

The Community industry's production decreased by 13 % over the period considered. It remained
stable between 2000 and 2001 and diminished subsequently.

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(b)

Capacity and capacity utilisation

(85)

The capacity utilisation decreased by 14 % over the period considered. This is not explained by a
small increase of 2 % in the total production capacity of the Community industry between 2001 and
2002 over the period considered.

(c)

Sales, prices and market share

(86)

The sales volume to unrelated parties in the Community decreased by 17 % from 2000 to the IP
(sales to related customers consisted of less than 1 % of total sales volume) thereby reducing the
market share from somewhere in the range between 55 % to 60 % to somewhere in the range
between 45 % and 50 %. As the average price per tonne fell by 7 %, the turnover went down by 23 %.

(d)

Inventories

(87)

Stocks of finished products almost tripled between 2000 and 2001. They were reduced considerably
over the two following years and amounted to almost the double of 2000 during the IP.

(e)

Employment, productivity and wages

(88)

Employment in the Community industry decreased by 10 % over the period considered. Wages
increased gradually by 10 % during the same time calculated on the basis of tonnes produced per
employee first increased by 3 % between 2000 and 2002 and subsequently went down by almost
6 %.

(f)

Growth

(89) While Community consumption remained basically stable between 2000 and the IP, the sales volume
of the Community industry decreased by 17 %. On the other hand, the volume of imports concerned
went up by 18 %. The trend was even more pronounced between 2002 and the IP, with Community
consumption going up by around 10 %, Community industry sales volume falling by more than 10 %
and the imports from the PRC rising by more than 30 %. Thus, the sales of the Community industry
went down despite growing demand in the period between 2002 and the IP. Consequently, the
market share of the Community industry fell by almost 9 percentage points, mostly due to imports
from the PRC. In contrast, the Chinese market share increased by more than 7 percentage points
between 2002 and the IP.

(g)

Investment

(90)

Investments more than doubled between 2000 and 2001. In 2002, they remained stable before
returning to the level of 2000 in 2003. The investments were made mainly for environmental
protection and maintenance.

(91)

(92)

(93)

(h)

Profitability, return on investment, cash flow and ability to raise capital

The sales of the Community industry of the like product were not profitable during the whole period
considered. While the Community industry was almost at break-even level in 2000, the situation
deteriorated and sales were highly unprofitable during the IP (more than – 10 %).

The return on investment, expressed as profits/losses in relation to the net book value of assets, was
also negative during the whole period considered and deteriorated year after year. In the IP, the return
on investment was in the range of – 25 % to – 20 %.

The cash flow generated by the products produced and sold in the Community decreased sharply
between 2000 and the IP. While it was still highly positive in 2000, it became negative in 2001 and
declined during the following two years amounting to more than - EUR 1 000 000 during the IP.

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(94) As investments were very low, the Community industry was not found to be experiencing difficulties
in its ability to raise capital either in the form of loans from banks or equity from the parent
company.

(i)

Magnitude of dumping margin

(95) Given the volume and the prices of the dumped imports from the country concerned, the impact of

the actual margins of dumping cannot be considered negligible.

5. CONCLUSION ON INJURY

(96)

The examination of the abovementioned factors shows that between 2000 and the IP, the situation of
the Community industry deteriorated considerably. The sales volume fell by 17 % over the period
considered, resulting in a significant loss of market share. Average prices fell and consequently the
turnover diminished even more significantly. The production volume and capacity utilisation
followed the same trend. Due to these negative developments, the profitability, return on investment
and the cash flow deteriorated considerably over the period considered.

(97)

The situation of the Community industry is thus found to have deteriorated to such an extent that it
is provisionally concluded that the Community industry has suffered material
injury within the
meaning of Article 3(1) and 3(5) of the basic Regulation.

E. CAUSALITY

1.

INTRODUCTION

(98)

In accordance with Article 3(6) of the basic Regulation, the Commission has examined whether the
dumped imports of barium carbonate originating in the country concerned have caused injury to the
Community industry to a degree that enables it to be classified as material. In accordance with Article
3(7) of the basic Regulation, 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

(99) Over the period considered, dumped imports from the country concerned increased significantly in
terms of volume (from 54 167 tonnes to 63 742 tonnes) and market share (by more than 7
percentage points). The most
increase in import volumes occurred during the IP
(increase by 30,4 % compared to 2002), while import prices decreased during the whole period
considered.

important

(100) This coincided with a decrease in sales and a resulting loss of market share of the Community
industry of almost 9 percentage points and with a drop in average sales prices. The Community
industry had to lower its sales prices as they were significantly undercut during the IP by the dumped
imports from the PRC. Due to the low sales prices, the Community industry was not able to cover
the costs of production and was therefore unprofitable.

3. EFFECT OF OTHER FACTORS

(a)

Imports from other third countries

(101) Over the period considered, the import volume of barium carbonate from third countries increased
from 6 500 tonnes to 8 700 tonnes, representing a market share of less than 10 % during the IP. The
main other third countries exporting barium carbonate to the Community were Brazil and Russia.

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(102) During the IP, the average price of imports from Russia amounted to EUR 278/tonne. This means
that Russian products were considerably more expensive than imports from the PRC and only slightly
cheaper than the products sold by the Community industry. According to importers and users, the
quality of barium carbonate imported from Russia is lower than the quality of both the product
concerned imported from the PRC and the like product sold by the Community industry. Due to the
fact that barium carbonate from Russia is of lower quality but more expensive than imports from the
PRC,
it is not competitive on the Community market. Compared to the product sold by the
Community industry, the quality of barium carbonate from Russia is significantly lower and not
compensated by the small price difference. As the Russian product is not competitive, its market
share diminished over the period considered. It was therefore provisionally concluded that imports
from Russia did not break the causal
injury caused by the
Chinese imports.

link between dumping and material

(103) The average price of imports from Brazil was EUR 186/tonne during the IP. Over the period
considered, the market share of imports from Brazil rose by around 2 percentage points. Taking
into account the small increase in sales and the market share of below 5 %, it was provisionally
concluded that these imports did not break the causal link between dumping and material injury
caused by the Chinese imports.

(104)

In view of the above findings, it was provisionally concluded that imports from other third countries
did not break the causal link between dumping and material injury caused by the Chinese imports to
the Community industry.

(b)

Development of demand

(105) As to the development of demand,

the apparent consumption of barium carbonate decreased
between 2000 and 2002 but the Community industry was able to keep its market share. Subse-
quently, the sales and the market share of the Community industry went down although the
consumption increased considerably during the IP. At the same time, Chinese imports were able
increasing with more than 7 percent points over the period concerned.
to gain market share,
injury suffered by the Community industry cannot be attributed to a
the material
Therefore,
contraction in demand on the Community market.

(c)

Currency fluctuations

(106) Some interested parties have claimed that the depreciation of the USD against the euro has favoured
imports of barium carbonate into the European Community. The vast majority of import transactions
from the country concerned into the European Community are indeed invoiced in USD. The euro
appreciated against the USD as from mid 2002, and significantly during the IP, thus favouring
exports into the euro area.

(107) However, even based on the exchange rate prevailing at the beginning of 2002, imports from the
PRC undercut the prices of the Community industry. In addition, this favourable exchange rate
situation would also have had an impact on imports from other third countries as they are also
mainly invoiced in USD. The fact that currency fluctuations did not have a major effect on imports
from other countries,
indicates that it cannot be considered as the main causal factor for the
important surge of dumped imports from the country concerned.

(108) Therefore, it was provisionally concluded that, although the appreciation of the Euro in respect of the
USD might have favoured imports of barium carbonate into the European Community, it is not
sufficient to break the causal link between the dumped imports and the material injury suffered by
the Community industry.

(d)

Imports by the Community industry

(109)

It was submitted that the Community industry imported barium carbonate from the PRC and thereby
contributed to the injury suffered. However, the Community industry did not purchase any products
from the PRC after 2001 and had imported it before that year only in negligible quantities (around
1 % of
imports by the
Community industry of the product concerned from the PRC, if any, could not be a determining
reason for the material injury suffered by the Community industry.

their own production). Therefore,

is provisionally concluded that

it

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(e)

Further factors

(110) Several users and importers argued that the Community is suffering injury due to the competition by
a water suspended slurry of barium carbonate which eliminates the toxic dust generated when using
barium carbonate in powder form. The slurry is produced by the importers in the Community, by
using powder imported from the PRC and adding water and specific additives after importation.

(111) This argument has to be rejected because the Community industry has the know-how to produce
slurry but does not promote it as it considers it not to be economical to transport water. Therefore, it
has developed in cooperation with other European companies, an equipment specific to the brick and
tile industry which enables the users of barium carbonate to mix the powder with water at the point
of production, eliminating also the generation of toxic dust. Thus the Community industry offers a
competitive product to slurry. However, since the slurry is produced with barium carbonate imported
it could be sold at prices which are below the prices of powder
from China at dumped prices,
supplied by the Community industry. Therefore, it is not be considered as another factor causing
injury, because the impact of slurry results itself from the dumped imports. Indeed, had the product
concerned not been imported at dumped prices, the product offered by the Community industry
which is in competition with the slurry, would have been able to compete on fair terms with the
slurry.

4. CONCLUSION ON CAUSATION

(112) The above analysis has demonstrated that there was a substantial increase in volume and market
share of the imports originating in the country concerned, especially between 2002 and the IP,
together with a considerable decrease in their sales prices and a high level of price undercutting
during the IP. This increase in market share of the low-priced Chinese imports coincided with a
significant drop in market share of the Community industry, which, together with the downward
pressure on prices, resulted, inter alia, in substantial losses of the Community industry during the IP.
On the other hand, the examination of the other factors which could have injured the Community
industry revealed that none of these could have had a significant negative impact or could break the
causal
injury suffered by the
Community industry.

link between the dumped imports from the PRC and the material

(113) Based on the above analysis which has properly distinguished and separated the effects of all known
factors on the situation of the Community industry from the injurious effects of the dumped imports,
injury to the
it is provisionally concluded that the imports from the PRC have caused material
Community within the meaning of Article 3(6) of the basic Regulation.

F. COMMUNITY INTEREST

1. PRELIMINARY REMARK

(114)

In accordance with Article 21 of the basic Regulation, the Commission examined whether, despite
the conclusion on injurious dumping, compelling reasons existed for concluding that it is not in the
Community interest to adopt measures in this particular case. The determination of the Community
interest was based on an appreciation of all
the
Community industry, the importers and the users of the product concerned.

the various interests involved,

those of

i.e.

2.

INVESTIGATION

(115)

In order to assess the likely impact of
the
Commission requested information from all interested parties. The Commission sent questionnaires
to the Community industry, 10 suppliers of raw materials, 18 importers and 38 users of the product
concerned. The Community producer, one supplier of raw materials, five importers, six users and one
association of users replied.

the imposition or non-imposition of measures,

3. COMMUNITY INDUSTRY

(116) The Community industry has a fully-automated production line, operating very cost-efficiently as
regards off-spec material and number of employees per tonne produced. It also made replacement
investments and continued to export.

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(117)

It is considered that the imposition of measures will restore fair competition on the market. If
measures are taken, the Community industry will be able to regain at least part of its lost market
share with a consequent positive impact on its profitability.

(118) As mentioned above, the Community industry suffered material injury caused by dumped imports
originating in the country concerned. If measures are not imposed, a further deterioration in the
situation of the Community industry is probable. This would entail a further loss of employment. The
price-depressive effect of the dumped imports would continue to foil all efforts by the Community
industry, in particular, to regain a profitable level. Not taking measures would jeopardise the long-
term presence of the industry and it cannot be excluded that the sole Community producer might
have to shut down as a result of the competition from dumped imports if measures are not imposed.

4. SUPPLIERS OF RAW MATERIALS

(119) One questionnaire reply was received from a supplier of raw materials supplying natural barium
sulphate to the Community industry it is the sole supplier of the main raw material
for the
production of barium carbonate located in the Community.

(120)

If measures are imposed and the Community industry regains lost market share, the supplier of raw
material will also be able to sell more of its product. As the raw material concerned constitutes a
major part of the turnover of this company, this will improve the financial situation of the raw
material supplier.

(121)

If measures are not imposed, the sales of the Community industry will continue to go down and
consequently also their demand for raw materials. This will negatively affect the profitability of the
raw material supplier.

(122) Five questionnaire replies were received from importers who were all against the imposition of

measures.

5.

IMPORTERS

(123) Some of the product concerned imported in powder form from the PRC is subsequently transformed
by the importers into slurry, by adding water and special additives. As the profit margin of the
importers for sales of the product concerned and slurry is on a weighted average basis 6,8 %, the
importers will be able to bear part of the possible price increases and pass on part to their customers.
In view of the relatively low duties to be imposed on the companies operating under market
economy conditions and the alternative sources available without any duties, the possible price
increases will be limited.

(124) Taking into account the fact that sales of the product concerned and the slurry account on average
for around 15 % of the importers' total turnover, the financial situation of the importers will not be
seriously affected by the imposition of a duty.

(125) On the basis of the above,

it was provisionally concluded that the effect of the anti-dumping

measures, if any, will most likely not have a material impact on importers.

6. USERS

(126) Six questionnaire replies from users and one submission from an association of users were received.
One verification visit was carried out at the company purchasing the biggest quantity of barium
carbonate during the IP. The six cooperating users represented around 9 % of the total Community
consumption of barium carbonate during the IP. The number of staff in these companies directly
related to products using barium carbonate was around 570 people. All cooperating users, except
one who is purchasing from the Community industry, have taken position against the imposition of
anti-dumping duties for fear of losing a cheap source of supply, which would harm their competi-
tiveness in the downstream market, vis-à-vis competitors in third countries.

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(127) Users of barium carbonate are mainly concentrated in TV glass production, the bricks and tiles
industry, the ceramics sector and in the production of ferrite. Based on the questionnaire replies
and information submitted during a hearing, the share of barium carbonate in the total costs of
production of users was established to be below 8 % on average.

(128) The duties will not result in a significant reduction of competition or a shortage of supply. Instead, it
can be foreseen that imports from China will remain available at competitive prices, as the individual
duties proposed for the Chinese exporting producers are below the levels of undercutting found. In
addition, alternative sources of supply from other third countries with no duties are also available. On
the basis of all this, it is concluded that users will continue to be able to buy barium carbonate at
competitive prices and it is expected that the impact of duties on the competitiveness of the users vis-
à-vis their competitors in third countries will be limited.

(129)

It was submitted that the Community industry is not in a position to satisfy the whole demand for
barium carbonate in the Community. In this respect, it has to be recalled that measures are not
intended to prevent imports into the Community but to ensure that they are not made at injurious
dumped prices.
Imports from various origins will continue to satisfy a significant part of the
Community demand. Therefore, no shortage of supply is expected.

(130) On the basis of the above,

it was provisionally concluded that the effect of the anti-dumping

measures, if any, will most likely not have a material impact on users.

7. COMPETITION AND TRADE DISTORTING EFFECTS

(131) With respect to the effects of possible measures on competition in the Community, the cooperating
exporting producers concerned, given their strong market positions, will probably continue to sell
their products, albeit at non-dumped prices. Indeed, the relatively low duty rates for the two Chinese
exporting producers operating under market economy conditions should allow them to operate
under fair market conditions in the Community. Thus, given the overall range of duties imposed,
it is likely that there will still be a sufficient number of major competitors on the Community market,
including the producers in the country concerned, Brazil, Russia and India. Therefore, users will
continue to have the choice of different suppliers of barium carbonate. If, on the other hand, no
measures were to be imposed, the future of the sole Community producer would be at stake. Its
disappearance would effectively reduce competition on the Community market.

8. CONCLUSION ON COMMUNITY INTEREST

(132) Given the above reasons, it is provisionally concluded that there are no compelling reasons against

the imposition of anti-dumping duties in the present case.

G. PROPOSAL FOR PROVISIONAL ANTI-DUMPING MEASURES

1.

INJURY ELIMINATION LEVEL

(133)

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

(134)

In order to establish the level of duty, account has been taken of the level of the dumping margins
found and of the amount of the duty necessary to eliminate the injury suffered by the Community
industry.

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(135) As the Community industry was suffering from the dumped imports since 1999, the profit that
could be achieved in the absence of dumped imports was based on the weighted average profit
margin of the like product during the years 1996 to 1998. On this basis, it was found that a profit
margin of 7,2 % of turnover could be regarded as an appropriate minimum which the Community
industry could have expected to obtain in the absence of injurious dumping. The necessary price
increase was then determined on the basis of a comparison of the weighted average import price, as
established for the price undercutting calculations, with the non-injurious price of products sold by
the Community industry on the Community market. The non-injurious price has been obtained by
adjusting the sales price of the Community industry by the actual loss made during the IP and by
adding the abovementioned profit margin. Any difference resulting from this comparison was then
expressed as a percentage of the total cif import value.

(136) As the injury elimination level was higher than the dumping margin established, the provisional

measures should be based on the latter.

2. PROVISIONAL MEASURES

(137)

it is considered that,

In the light of the foregoing,
in accordance with Article 7(2) of the basic
Regulation, provisional anti-dumping duties should be imposed in respect of imports originating in
the PRC at the level of the lower of the dumping and the injury margins, in accordance with the
lesser duty rule. In this case, the individual duty rates as well as the country-wide duty should
accordingly be set at the level of the dumping margins found.

(138) As the product is fungible and the price differences for the different product types are not substantial,
it was found that the duty should be imposed in the form of a specific amount per tonne in order to
ensure the efficiency of the measures and to discourage any absorption of the anti-dumping measure
through a decrease in the export prices. This amount results from the application of the dumping
margin to the export prices used in the calculation of the dumping during the IP.

(139) 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 country-wide
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
legal entities mentioned.
Imported products produced by any other company not specifically
including entities
mentioned in the operative part of this Regulation with its name and address,
related to those specifically mentioned, cannot benefit from these rates and shall be subject to the
duty rate applicable to ‘all other companies’.

(140) 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, for example, 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 Regulation accordingly by updating the list of companies benefiting from individual duty rates.

(141) The product concerned is fungible, as explained above, and not branded. The variance of the
individual duty rates is significant and there are a number of exporting producers. All
these
elements may facilitate attempts to re-channel the export flows through the traditional exporters
benefiting from the lowest duty rates.

(1) European Commission

Directorate-General for Trade
Direction B
B-1049 Brussels.

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(142) Consequently, should the exports by one of the companies benefiting from lower individual duty
rates increase by more than 30 % in volume, the individual measures concerned would be considered
as being likely to be insufficient to counteract the injurious dumping found. Consequently, and
provided that the requisite elements are met, an investigation may be initiated in order to correct
appropriately the measures in their form or level.

H. FINAL PROVISION

(143)

In the interests 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 purposes of any definitive measures,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A provisional anti-dumping duty is hereby imposed on imports of barium carbonate with a strontium
content of more than 0,07 % by weight and a sulphur content of more than 0,0015 % by weight, whether
in powder, pressed granular or calcined granular form, falling within CN code ex 2836 60 00 (TARIC code
2836 60 00 10), originating in the People's Republic of China.

The amount of the provisional anti-dumping duty shall be equal to a fixed amount as specified below

2.
for products produced by the following manufacturers:

Country

Manufacturer

Hubei Jingshan Chutian Barium Salt Corp. Ltd
62, Qinglong Road, Songhe Town, Jingshan County
Hubei Province, PRC

People's Republic of
China

Zaozhuang Yongli Chemical Co.
South Zhuzibukuang Qichun, Zaozhuang City
Center District
Shangdong Province, PRC

Rate of duty
(EUR/t)

TARIC
additional code

20,6

45,7

A606

A607

All other companies

60,8

A999

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

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

4.
In cases where the goods have been damaged before entry into free circulation and, therefore, the price
actually paid or payable is apportioned for the determination of the customs value pursuant to Article 145
of Commission Regulation (EEC) No 2454/93 (1), the amount of the anti-dumping duty, calculated on the
basis of the fixed amounts set above, shall be reduced by a percentage which corresponds to the appor-
tioning of the price actually paid or payable.

5.

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

(1) OJ L 253, 11.10.1993, p. 1.

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Article 2

Without prejudice to Article 20 of Council 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 one month of the date
of entry into force of this Regulation.

Pursuant to Article 21(4) of Council 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, 28 January 2005.

For the Commission

Peter MANDELSON
Member of the Commission