Notice of initiation of an expiry review of the antidumping measures applicable to imports of potassium chloride originating in Belarus and Russia
Date: 2005-04-13
Institutions: European Commission
Subjects: Belarus, Russia, anti-dumping legislation, chemical salt

13.4.2005

EN

Official Journal of the European Union

C 89/3

Notice of initiation of an expiry review of the antidumping measures applicable to imports of
potassium chloride originating in Belarus and Russia

(2005/C 89/03)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of potassium
chloride originating in Belarus, Russia and Ukraine,
the
Commission has received a request
for review pursuant to
Article 11(2) of Council Regulation (EC) No 384/96 (2) (‘the
basic Regulation’). The review request concerns imports of
potassium chloride originating in Belarus and Russia (‘countries
concerned’).

1. Request for review

The request was lodged on 10 February 2005 by the European
Association of Potash Producers (APEP)
(‘the applicant’) on
behalf of producers representing a major proportion, in this
case more than 99 %, of the total Community production of
potassium chloride.

2. Product

The product under review is potassium chloride originating in
Belarus and Russia (‘the product concerned’), currently classifi-
able within CN codes 3104 20 10, 3104 20 50, 3104 20 90
and special mixtures currently classifiable within CN codes
ex 3105 20 10,
ex 3105 60 90,
ex 3105 20 90,
ex 3105 90 91 and ex 3105 90 99. These CN codes are given
only for information.

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 3068/92 (3).

4. Grounds for the review

The request
the expiry of
is based on the grounds that
measures would be likely to result in a continuation or recur-
rence of dumping and injury to the Community industry.

In view of the provisions of Article 2(7) of the basic Regulation,
the applicant established normal value for Belarus on the basis
of the price in an appropriate market economy country, which
is mentioned in paragraph 5.1(d) of this notice. The allegation
of continuation of dumping is based on a comparison of
normal value, as set out in the previous sentence, with the
export prices of the product concerned when sold for export to
the EU.

(1) OJ C 249, 8.10.2004, p. 3.
(2) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Council

Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(3) OJ L 308, 24.10.1992, p. 41. Regulation as last amended by
Council Regulation (EC) No 992/2004 (OJ L 182, 19.5.2004, p.
23).

The allegation of continuation of dumping for Russia is based
on a comparison of normal value, established on the basis of
domestic prices and constructed normal value, with the export
prices of the product concerned when sold for export to the
EU.

On this basis, the dumping margins calculated are significant.

With regard to the recurrence of dumping, it is alleged that the
exports from the countries concerned to other third countries
or territories, such as China, Brazil, Norway, Switzerland, India
and North America, are made at dumped prices.

The applicant has provided evidence that
the
product concerned from Belarus and Russia have increased
overall in absolute terms and in terms of market share.

imports of

is also alleged that

the volumes and the prices of

It
the
imported product concerned have continued, among other
consequences, to have a negative impact on the market share
held, the quantities sold and the level of prices charged by the
Community industry, resulting in substantial adverse effects on
the overall performance and the financial situation of the Com-
munity industry.

The applicant further alleges the likelihood of further injurious
dumping. In this respect the applicant presents evidence that,
should measures be allowed to lapse, the current import level
of the product concerned is likely to increase due to the exis-
tence of unused production capacity and/or
the foreseen
increase in production capacity in the countries concerned.

In addition, the applicant alleges that the fragile situation of the
Community industry would further deteriorate if measures
were allowed to lapse and that any recurrence of substantial
imports at dumped prices from the countries concerned would
likely lead to a recurrence of further injury of the Community
industry.

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review, the Commission hereby initiates a review in
accordance with Article 11(2) of the basic Regulation.

C 89/4

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Official Journal of the European Union

13.4.2005

5.1. Procedure

for

the determination of

likelihood of

dumping and injury

Commission may, in addition, contact any known asso-
ciations of importers.

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury.

(ii) F i na l se le c ti on of th e sa mp le

(a) Sampling

In view of the apparent number of parties involved in this
proceeding, the Commission may decide to apply sampling,
in accordance with Article 17 of the basic Regulation.

(i) Sampli ng for i mpor te r s

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in paragraph 6(b)(i) and in the formats indicated in
paragraph 7 of this notice:

— name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

— the total turnover in euro of the company during
the period 1 January 2004 to 31 December 2004,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in euro of imports
into and resales made in the Community market
during the period 1 January 2004 to 31 December
2004 of the imported product concerned,

All
interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in paragraph 6(b)(ii) of
this notice.

The Commission intends to make the final selection of
the sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

Companies included in the sample must reply to a
questionnaire within the time limit set in paragraph
6(b)(iii) of this notice and must cooperate within the
framework of the investigation.

(b) Questionnaires

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to the Community industry and to any association of
producers in the Community, to the exporters/producers in
Belarus and Russia, to any association of exporters/produ-
cers,
importers
named in the request or which cooperated in the investiga-
tion leading to the measures subject to the present review,
and to the authorities of the exporting countries concerned.

to any association of

to the importers,

interested parties should contact

In any event, all
the
Commission forthwith by fax in order to find out whether
they are listed in the request and, if necessary, request a
questionnaire within the time limit set in paragraph 6(a)(i)
of this notice, given that the time limit set in paragraph
6(a)(ii) of this notice applies to all interested parties.

— the names and the precise activities of all related
companies involved in the production and/or selling
of the product concerned,

This information and supporting evidence must reach the
Commission within the time limit set in point 6(a)(ii) of
this notice.

— any other relevant information that would assist the

Commission in the selection of the sample,

— an indication of whether the company or compa-
nies agree to their inclusion in the sample, which
implies replying to a questionnaire and accepting an
on-the-spot investigation of their response.

In order to obtain the information it deems necessary
the
for

the selection of

the sample of

importers,

(c) Collection of information and holding of hearings

submit

All interested parties are hereby invited to make their views
than questionnaire
known,
replies and to provide supporting evidence. This informa-
tion and supporting evidence must reach the Commission
within the time limit set in point 6(a)(ii) of this notice.

information other

13.4.2005

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Official Journal of the European Union

C 89/5

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii) of
this notice.

(ii) F or p a r ti e s to ma ke t h e mse lve s know n,

to
su bmi t q u e sti onn a i r e r e p li e s a nd a ny ot h e r
i nfor ma ti on

(d) Selection of the market economy country

In the previous investigation Canada was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of Belarus. The Commission
envisages to use Canada again for this purpose. Interested
parties are hereby invited to comment on the appropriate-
ness of this country within the specific time limit set in
point 6(c) of this notice.

All interested parties, if their representations are to be
taken into account during the investigation, must
make themselves known by contacting the Commis-
sion, present
their views and submit questionnaire
replies or any other information within 40 days of the
date of publication of this notice in the Official Journal
the European Union, unless otherwise specified.
of
Attention is drawn to the fact that the exercise of
most procedural rights set out in the basic Regulation
depends on the party's making itself known within the
aforementioned period

(iii) He a r i ng s

5.2. Procedure for the assessment of Community interest

All interested parties may also apply to be heard by
the Commission within the same 40-day time limit.

In accordance with Article 21 of the basic Regulation and in
the event that the likelihood of a continuation or recurrence of
dumping and injury is confirmed, a determination will be made
as to whether to maintain or repeal the anti-dumping measures
would not be against the Community interest. For this reason
the Community industry, importers, their representative asso-
ciations, representative users and representative consumer orga-
nisations, provided that they prove that there is an objective
link between their activity and the product concerned, may,
within the time limits set in paragraph 6(a)(ii) of this notice,
make themselves known and provide the Commission with
information. The parties which have acted in conformity with
the previous sentence may request a hearing, setting the par-
ticular reasons why they should be heard, within the time limit
set in paragraph 6(a)(iii) of this notice. It should be noted that
any information submitted pursuant to Article 21 will only be
taken into account if supported by factual evidence at the time
of submission.

6. Time limits

(a) General time limits

(b) Specific time limit in respect of sampling

(i) The

the European Union, given that
to consult parties

information specified in paragraph 5.1(a)(i)
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
the Commission
of
intends
concerned that have
expressed their willingness to be included in the
sample on its final selection within a period of 21
days of the publication of this notice in the Official
Journal of the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(ii) must reach the
Commission within a period of 21 days of the publi-
cation of this notice in the Official Journal of the Euro-
pean Union.

(iii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date
of the notification of their inclusion in the sample.

(i) For p ar ti e s to r e q u e st a q u e sti onnai r e

(c) Specific time limit

for

the selection of

the market economy

country

All
interested parties who did not cooperate in the
investigation leading to the measures subject to the
present review should request a questionnaire as soon
as possible, but not later than 15 days after the publi-
cation of this notice in the Official Journal of the Euro-
pean Union.

Parties to the investigation may wish to comment on the
appropriateness of Canada which, as mentioned in point
5.1(d) of this notice,
is envisaged as a market-economy
country for the purpose of establishing normal value in
respect of Belarus. These comments must
reach the
Commission within 10 days of the date of publication of
this notice in the Official Journal of the European Union.

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Official Journal of the European Union

13.4.2005

7. Written submissions, questionnaire replies and corre-

8. Non-cooperation

spondence

All submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax, and/or telex numbers of the interested party.
All written submissions, including the information requested in
this notice, questionnaire replies and correspondence provided
by interested parties on a confidential basis shall be labelled as
‘Limited’ (1) and, in accordance with Article 19(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘FOR INSPECTION BY INTER-
ESTED PARTIES’.

shall be

Commission address for correspondence:

European Commission
Directorate General for Trade
Directorate B
Office: J-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05

In cases in which any interested party refuses access to or
otherwise does not provide the necessary information within
the time limits, or significantly impedes the investigation, find-
ings, affirmative or negative, may be made in accordance with
Article 18 of the basic Regulation, on the basis of the facts
available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made, in accordance with Article 18 of the
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially and findings
are therefore based on facts available in accordance with
Article 18 of the basic Regulation,
the result may be less
favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(5)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

(1) This means that

the document

is for internal use only.

the European Parliament and of

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of
(OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article
19 of Council Regulation (EC) No 384/96 (OJ L 56, 6.3.1996, p. 1)
and Article 6 of the WTO Agreement on Implementation of Article
VI of the GATT 1994 (Anti-dumping Agreement).

the Council

It