Council Regulation (EC) No 639/2005 of 25 April 2005 imposing a definitive anti-dumping duty on imports of furfuraldehyde originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 384/96
Date: 2005-04-25
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, anti-dumping legislation, chemical industry, chemical product

28.4.2005

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Official Journal of the European Union

L 107/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 639/2005

of 25 April 2005

imposing a definitive anti-dumping duty on imports of furfuraldehyde originating in the People's
Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No
384/96

THE COUNCIL OF THE EUROPEAN UNION,

2003 a request for a review pursuant to Article 11(2) of
the basic Regulation.

Having regard to the Treaty
Community,

establishing the European

(3)

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
(‘the
countries not members of the European Community (1)
basic Regulation’), and in particular Article 11(2) thereof,

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Measures in force

In January 1995, the Council, by Regulation (EC) No
95/95 (2), imposed definitive anti dumping measures in
the form of a specific duty on imports of furfuraldehyde
originating in the People's Republic of China (‘PRC’). The
specific duty rate amounts to EUR 352 per
tonne.
Following an interim review initiated in May 1997
upon request of a Chinese exporter, the measures were
maintained by Regulation (EC) No 2722/1999 (3) for a
further period of four years.

2. Initiation of expiry review investigation

Following the publication, in March 2003, of a notice of
anti dumping measures
impending
applicable to imports of
furfuraldehyde originating in
the PRC (4), the Commission received on 19 September

expiry of

the

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

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

(2) OJ L 15, 21.1.1995, p. 11.
(3) OJ L 328, 22.12.1999, p. 1.
(4) OJ C 72, 26.3.2003, p. 2.

The request was lodged by Furfural Español SA (‘the
applicant’) representing a major proportion, in this case
more than 25 %, of the total Community production of
furfuraldehyde. The other Community producer, Lenzing
AG, supported the request. The two producers represent
100 % of the Community production of furfuraldehyde.
The request was based on the grounds that the expiry of
the measures would be likely to result in a continuation
or recurrence of dumping and injury to the Community
industry.

that

sufficient evidence existed for

Having determined, after consultation of the Advisory
Committee,
the
initiation of an expiry review pursuant to Article 11(2)
of
the Commission published a
notice of initiation of this review in the Official Journal
of the European Union (5).

the basic Regulation,

3. Parties concerned by the investigation

suggested analogue

country, Argentina,

The Commission officially advised the authorities of the
PRC, the exporting producers in the PRC, the producers
in the
the
producers,
importers/traders and industrial users in the
Community known to be concerned, of the initiation of
the review. Interested parties were given the opportunity
to make their views known in writing and to request a
hearing within the time limit set out in the notice of
initiation.

Questionnaires were sent
the parties that were
officially advised of the initiation of the review and to
those who requested a questionnaire within the time
limit set out in the notice of initiation.

to all

Replies to the questionnaire were received from the two
Community
one
industrial user and one producer
in the analogue
country, Argentina.

importer/trader,

producers,

one

(4)

(5)

(6)

(7)

(5) OJ C 308, 18.12.2003, p. 2.

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Official Journal of the European Union

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(8)

the likelihood of continuation or

The Commission sought and verified all the information
it deemed necessary for the purpose of the determination
of
recurrence of
dumping and injury and of
the Community interest.
Verification visits were carried out at the premises of
the following companies:

(13)

C. LIKELIHOOD OF CONTINUATION OF DUMPING

In accordance with Article 11(2) of the basic Regulation,
it was examined whether dumping was currently taking
place and,
the
measures would be likely to lead to a continuation of
dumping.

if so, whether or not

the expiry of

(a) P r o d u c e r i n t h e a n a l o g u e c o u n t r y
— Indunor SA, Buenos Aires, Argentina

(b) C o m m u n i t y p r o d u c e r

— Furfural Espanol SA, Alcantarilla, Spain

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

— International Furan Chemicals B.V., Rotterdam,

Netherlands.

the

regarding

investigation

continuation

The
or
recurrence of dumping and injury covered the period
from 1 October 2002 to 30 September 2003 (‘IP’).
the
the
The
assessment of
continuation or
likelihood of
recurrence of injury covered the period from 1 January
2000 up to the end of the IP (‘period considered’).

examination of

relevant

trends

for

a

a

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. The product concerned

The product concerned is the same as in the original
investigation, i.e. furfuraldehyde originating in the PRC,
falling within CN code 2932 12 00. Furfuraldehyde is
also known as 2-furaldehyde or furfural.

Furfuraldehyde is a light yellow liquid with a charac-
teristic pungent odour, which is obtained by processing
different types of agricultural waste. Furfuraldehyde has
two main applications: as a selective solvent in petroleum
refining for the production of lubricating oils and as raw
material for processing into furfuryl alcohol, which is
used to make synthetic resin for foundry moulds.

(9)

(10)

(11)

2. Like product

(12) As in the previous investigations, this investigation has
shown that the furfuraldehyde produced in the PRC and
exported to the Community, the furfuraldehyde produced
and sold on the domestic market of the analogue country
Argentina and the furfuraldehyde manufactured and sold
in the Community by the Community producers have
the same basic physical and chemical characteristics,
and the same basic uses. They were therefore considered
to be like products within the meaning of Article 1(4) of
the basic Regulation.

1. Preliminary remarks

In view of

submitted by

(14) Of the 24 Chinese exporting producers named in the
complaint, none cooperated with the investigation and
no information was
these
this non-cooperation by the
companies.
Chinese exporting producers, the findings on dumping
set out below had to be based on facts available,
in
particular Eurostat data and information submitted in
the review request.
is noted that
inward processing
Eurostat
during the IP.

shows only imports

In this respect,

any of

for

it

2. Analogue country

(15)

Since the PRC is an economy in transition, normal value
had to be based on information obtained in an appro-
priate market economy third country in accordance with
Article 2(7)(a) of the basic Regulation.

(16) As in the original investigation, in the notice of initiation
Argentina was proposed as analogue country for the
purposes of establishing normal value. Following the
publication of
initiation, no comments
concerning the proposed analogue country were received.

the notice of

for

furfuraldehyde with around 72 % of

(17) One producer of furfuraldehyde in Argentina cooperated
with the investigation by replying to the questionnaire
and accepting an on-spot verification of its reply. The
investigation showed that Argentina has a competitive
the
market
market supplied by local production and the rest by
imports from third countries. The production volume
in Argentina constitutes more than 60 % of the volume
the product concerned to the
of Chinese exports of
inward processing. The Argentinean
Community for
market was therefore deemed sufficiently representative
for the determination of normal value for the PRC.

(18)

(19)

It is therefore concluded, as in the original investigation,
that Argentina
analogue
country in accordance with Article 2(7)(a) of the basic
Regulation.

an appropriate

constitutes

3. Normal value

to Article 2(7)(a) of

Pursuant
the basic Regulation,
normal value was established on the basis of verified
information received from the cooperating producer in
the analogue country, i.e. on the basis of the price paid
or payable on the domestic market of Argentina to
unrelated customers, since these sales were found to be
made in the ordinary course of trade.

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(20) As a result, normal value was established as the weighted
average domestic sales price to unrelated customers by
the cooperating producer in Argentina.

conclusions rely mainly on the information contained
in the review request.

4. Export price

of

imports

(21) As none of the Chinese exporters to the Community
cooperated with the investigation, export prices were
established on the basis of the facts available. The most
appropriate basis was found to be Eurostat data in
relation to Community
product
concerned. Though these imports were made under
inward processing arrangements (Chinese furfuraldehyde
was further processed into furfuryl alcohol for export),
there was no reason to believe that they were not a
export
reasonable
prices.
Furthermore,
the cooperating
importer confirmed that the Eurostat data were in line
with the verified data. The export price was thus estab-
lished on the basis of
the Eurostat data on Chinese
imports for inward processing.

basis
establishing
the verification visit at

the

for

(26) According to the request for the expiry review, the total
Chinese production of furfuraldehyde is around 180 000
tonnes per year, which is more than four times higher
than the total Community consumption of
furfural-
dehyde. The Chinese capacity utilisation rate is said to
be around 70 % which means that there is idle capacity
of around 50-60 000 tonnes per year in the PRC,
i.e.
consumption in the Community.
more
According to the Community producers,
the Chinese
production is constantly changing in accordance with
need.
closed for
temporary periods and then reopened when needed.
More than 80 production plants of furfuraldehyde are
said to operate currently, mainly in the North-East part
of the PRC.

some plants

than total

In this

regard,

are

(27)

(28)

5. Comparison

For the purposes of ensuring a fair comparison between
the normal value and the export price, and in accordance
with Article 2(10) of the basic Regulation, due allowance
in the form of adjustments was made with regard to
certain differences in transport and insurance, which
affected prices and price comparability.

6. Dumping margin

In accordance with Article 2(11) of the basic Regulation,
the dumping margin was established on the basis of a
comparison of the weighted average normal value with
the weighted average export prices at the same level of
trade. This
existence of
comparison showed the
significant dumping. In fact, the dumping margin found
for the IP is higher than the dumping margin of 62,6 %
investigation and in the
established in the original
previous review.

7. Development of exports

should measures be

repealed

(a) Exports

If

(33) below).

the measures were repealed,

The investigation has shown that the quantities exported
from the PRC to the Community for inward processing
have increased significantly from 2000 to the IP (see
recital
it
can be expected that exports from the PRC would
increase significantly also outside inward processing
arrangements, given the
significant price difference
between the Chinese and the EC producer's furfural-
dehyde and the unused capacity explained in recital
(26) below.

(b) Unused capacity in the PRC

Since little public information is available about
Chinese

furfuraldehyde,

industry of

the
following

the

(22)

(23)

(24)

(25)

Consequently, the large production capacity available in
the PRC and the flexibility with regard to reopening
plants demonstrate that producers are able to quickly
increase production and direct it to any export market,
including,
if the measures were to be repealed, to the
Community market.

(c) Exports for inward processing

Such

processing

arrangements.

It is noted that all the exports from the PRC of the
product concerned to the Community during the IP
were made for inward processing. The Chinese furfural-
dehyde was further processed into furfuryl alcohol which
It is reasonable to assume that a
was then exported.
repeal of the measures would result in a resumption of
exports from the PRC to the Community outside the
inward
additional
likelihood also be significantly
exports would in all
dumped. Indeed, the current export prices made under
inward processing arrangements are not affected by anti-
dumping duties as such exports obviously do not bear
any duty. The Community producers and the Chinese
exporters competed for these sales on the basis as if
there was no duty. Thus, it can be reasonably assumed
that such prices are also indicative as to future price
levels should measures be repealed. Moreover, it is also
noted that Chinese export prices under inward processing
were undercutting the Community producers' prices by
44 % in the IP and that even if they did not undercut
Community prices, they would still be dumped.

8. Conclusion on the likelihood of a continuation of
dumping

(29)

Since the PRC has significant unused production capacity
and is currently only exporting to the Community for
inward processing, it could reasonably be expected that,
should the measures be repealed, additional volumes
would be directed towards the Community market in
significant quantities.

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Official Journal of the European Union

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(30)

The investigation has shown that exports from the PRC
are still made at dumped prices and that the dumping
margin during the IP was found to be even higher than
the dumping margin established in the previous review.
Given the circumstances of the case, it is reasonable to
expect that dumping is likely to continue in the future.

(33)

D. DEFINITION OF THE COMMUNITY INDUSTRY

In addition to the applicant,

Lenzing AG (‘the
supported the request

the product
There are two Community producers of
the other
concerned.
other
Community
producer,
Community producer’),
for a
review. During the IP, the two producers represented
100 % of the Community production of furfuraldehyde.
Both companies replied to the questionnaires and fully
cooperated in the investigation. On this basis, the two
Community
the Community
industry within the meaning of Article 4(1) and Article
5(4) of the basic Regulation. For reasons of confiden-
tiality
the
Community industry are given only in indexed form.

performance

concerning

producers

constitute

data

the

of

2. Imports from the PRC

(a) Volume, market share and prices

It

sales of

in 2002 the

since 2001 only under

Based on information from Eurostat,
imports from the
inward
PRC were made
processing arrangements. This practice had already
started in 2000, when around 75 % of Chinese imports
were under inward processing. The volumes imported
from the PRC increased from 3 198 tonnes to 5 167
tonnes during the period considered, which is an
increase of 61,6 % between 2000 and the IP.
is
furfuryl alcohol
noted that
this was followed by
dropped significantly. However,
these
share of
an increase in the IP. The market
Chinese imports increased over the period considered
from 8,2 % to 12,4 %. While the fluctuations in these
Chinese imports of
furfuraldehyde may to a certain
extent be due to fluctuations in the production of
furfuryl alcohol, this cannot explain, however, the huge
increase of import volumes, in particular during the IP,
and of market share. The average price of the Chinese
imports declined from EUR 648,68 per ton in 2000 to
EUR 508,65 per ton in the IP, which is a decline of
21,6 % during the period considered. A trend of
increased undercutting can also clearly be seen when
comparing the Chinese and the Community producers'
In the beginning of the
unit prices of furfuraldehyde.
the Chinese prices were
in 2000,
period considered,
4,4 % lower than those of Community producers.
In
the IP, they were 44,1 % lower.

E. SITUATION OF THE COMMUNITY MARKET

Table 2

1. Community consumption

Table 1

Community consumption

Tonnes

Index

Y/Y trend

2000

2001

2002

IP

38 699

45 005

38 007

41 513

100

116

16

98

– 16

107

9

Imports from the PRC under inward processing

2000

2001

2002

IP

Volume, tonnes

3 198

4 143

2 450

5 167

Indexed

100

130

77

162

Market share

8,3 %

9,2 %

6,4 %

12,4 %

Price, EUR/tonne

648,68

678,48

540,06

508,65

Indexed

100

104,6

83,3

78,4

from other

Community consumption was based on the combined
volume of sales made by the Community industry in
the Community and imports from the PRC made under
inward processing
third
and imports
furfuraldehyde
countries. Community consumption of
increased significantly between 2000 and 2001.
In
2002, Community consumption of
furfuraldehyde fell
in 2000.
back to approximately the same level as
Between 2000 and the IP, Community consumption of
furfuraldehyde increased by 9 %. The development of
consumption is linked to the fact that furfuraldehyde is
also used to produce furfuryl alcohol. The production
increased in 2001, but
and sales of
decreased significantly
result,
as
consumption of furfuraldehyde dropped accordingly. In
the IP, sales and production of furfuryl alcohol recovered
as well as consumption of furfuraldehyde.

furfuryl alcohol

in 2002 and,

a

3. Economic situation of the Community industry

(a) Production

Table 3

Community production

Index

Y/Y trend

2000

2001

2002

100

94

– 5,8

87

– 7,3

IP

85

– 2,2

(31)

(32)

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(34)

The Community industry's production decreased every
year during the period considered, being 15 % lower in
the IP than in 2000. One of the Community producers
ceased the production of furfuraldehyde in one of its
production plants in 2000.

(b) Production capacity and capacity utilisation

Table 4

Community capacity

Index

Y/Y trend

2000

2001

2002

100

104

3,9

100

– 3,4

IP

99

– 1,2

(35)

Production capacity decreased slightly during the period
considered, after having increased by 3,9 % in 2001
furfuraldehyde
compared to 2000. The cessation of
production in one production plant
in 2000 is not
reflected in the above capacity figures, because the
company still considers
their
production capacity, i.e. the production can be restarted
within a short period if necessary.

this plant as part of

Table 5

Capacity utilisation

the
During the IP this
Community industry reduced prices in order to avoid
further losses of sales volumes.

trend could be stopped as

(d) Prices

Index

Y/Y trend

Table 7

Community industry sales prices

2000

2001

2002

IP

100

127

27,2

135

6,0

134

– 0,6

(38)

The average sales prices of furfuraldehyde increased by
35 % from the year 2000 to 2002, when the Community
industry tried to compensate for drastically increased raw
material costs by increasing their sales prices.

(e) Market share

Table 8

Community industry's market share

2000

2001

2002

Index

100

82

88

IP

81

2000

2001

2002

Index

100

91

87

IP

86

(39)

(36)

The above table shows that capacity utilisation decreased
every year during the period considered, being 14 %
lower in the IP than in 2000.

(c) Sales in the Community

Table 6

Sales volume

Index

Y/Y trend

2000

2001

2002

100

96

– 4,4

87

– 9,4

IP

87

0,3

(37)

The Community industry's sales to unrelated customers
in the Community decreased by 13 % between 2000 and
the IP. The fall was particularly significant between 2000
and 2002 as the industry increased the prices in order to
compensate for drastically increased raw material costs.

The market share held by the Community industry
decreased by 19 % between 2000 and the IP. The
biggest decline in the Community producer's market
share was between 2000 and 2001. The Community
furfuraldehyde decreased significantly
consumption of
in 2002, mainly due
to declining production of
sales of
furfuryl alcohol. The Community industry's
furfuraldehyde decreased as well in 2002. However, the
decline in the sales of the Community industry was rela-
tively lower than the drop in the consumption of furfur-
aldehyde in 2002. Therefore, the market share of the
Community industry increased in 2002.
In the IP,
consumption of furfuraldehyde as well as the Chinese
the
imports
increased again, while
Community industry remained roughly at
the same
level as the previous year. As a result, the Community
industry's market share decreased.

sales of

the

(f) Stocks

Index

Y/Y trend

Table 9

Stocks

2000

2001

2002

IP

100

103

3,5

128

23,3

122

– 4,1

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(40)

(41)

increase of

The above table shows that the stocks of the Community
industry increased by 22 % during the period considered.
The
stocks was particularly significant
between 2001 and 2002, when stocks increased by
the Community
24 %. Stocks
industry's EU sales volume in 2000, but increased to
13,3 % during the IP.

represented 9,4 % of

(g) Profitability

Table 10

Profitability

Index

Y/Y trend

2000

2001

2002

IP

100

235

133

135,1

– 43,5

146

9,3

the

The total profitability of the Community industry has
remained at a relatively good level during the period
considered. However, the main reason for this is the
fact that the other Community producer supporting the
complaint shows exceptionally high profitability in all
years under consideration, whereas the applicant's profi-
tability has declined drastically (8,2 percentage points)
during
same period. The other Community
producer obtains furfuraldehyde as a by-product when
applicant uses
producing pulp viscose, while
almond shells as a principal raw material in the furfur-
aldehyde production. The price of
almond shells
increased drastically between 2000 and 2002 (by
51 %), worsening significantly the profit margin of the
applicant, while the raw material cost of
the other
Community producer
increased only modestly. The
increase in the applicant's selling, general and adminis-
trative expenses in absolute terms was modest, i.e. 5,5 %
from year 2000 to the IP. Thus, the decline in profit-
ability was mainly caused by the increased raw material
costs. The attempt to compensate the higher raw material
costs by increased sales prices of furfuraldehyde resulted
in reduced sales.

the

ability, the other Community producer supporting the
complaint showed exceptionally good cash flow during
the period considered, while the applicant showed a clear
decline in its cash flow (– 42,7 %) during the same period.

(i) Investments,
capital

return on investments and ability to raise

Table 12

Investments

Index

Y/Y trend

2000

2001

2002

100

93

63

IP

98

– 6,8

– 32,8

55,9

(43)

The investments considerably declined between 2000
and 2002,
increasing again during the IP, when the
other Community producer made significant investments
in the viscose pulp production line (furfuraldehyde is a
in the pulp production process). The
by-product
fell by 80 % during the
investments of
period considered. The investigation showed that
the
operating return on investments deteriorated in line
with the development of profitability during the period
considered.

the applicant

Table 13

Return on investments and ability to raise capital

Index

Y/Y trend

2000

2001

2002

100

207

38

IP

34

107,4

– 81,7

– 11,0

(h) Cash flow

(44)

Table 11

Cash flow

Index

Y/Y trend

2000

2001

2002

IP

100

141

41,1

104

– 26,0

107

2,5

(42)

Cash flow followed a similar
trend as profitability,
increasing significantly between 2000 and 2001, but
worsening in the following years. In line with the profit-

figures in the table above
The return on investment
the applicant. This
shows only the development of
table shows a clear deterioration in its
return on
investment during the period considered. As for the
other Community producer supporting the complaint,
it belongs to a group of companies which focus on
furfural-
In fact,
than furfuraldehyde.
products other
dehyde is a small by-product of one of
its main
production processes. Therefore,
the company is not
able to calculate any meaningful return on investment
for furfuraldehyde. As a result of the deterioration in
profitability and cash flow,
the applicant's ability to
raise
capital has worsened significantly during the
period under consideration. This worsening can also be
clearly seen in the applicant's investments, which fell by
80 % during the period considered.

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(j) Employment, productivity and wages

(l) Growth

Table 14

Employment

Index

Y/Y trend

2000

2001

2002

100

75

84

IP

82

– 25,0

12,1

– 2,7

(49) While Community consumption grew by 7 % during the
period considered, the Community industry's production,
sales volume and market share decreased over the same
period. At the same time, the volume and market share
of imports from the PRC increased considerably. This
meant
fully
benefit from the growth of the market over the period
considered.

the Community industry did not

that

(45)

The above table shows that employment decreased by
18 % during the period considered. The decrease in
employment
the cessation of
production of furfuraldehyde in one production plant.

in 2000/2001 reflects

(50)

(46)

The productivity increased by 4 % over
considered, as shown in the table below:

the period

Table 15

Productivity

Index

Y/Y trend

2000

2001

2002

IP

100

126

25,6

104

– 17,4

104

0,5

(47) During the period considered, the average wages of the
employees of the Community industry increased by 6 %,
i.e. less than the average inflation rate in the Community:

Table 16

Wages

Index

Y/Y trend

2000

2001

2002

IP

100

99

– 0,8

97

– 1,9

106

8,7

(k) Magnitude of

the dumping margin and effects of past

dumping or subsidization

(48)

levels similar to,

if not
Since dumping continued at
higher than,
that established in the previous investi-
gations (see recital (1)), the impact on the situation of
the Community industry of the magnitude of the actual
margin of dumping could not be considered different
from that established during these investigations.

4. Effect of other factors

(a) Prices of raw materials

The considerable rise in the price of the raw material
used by the applicant in 2001 and 2002 had naturally
a negative impact on its profitability in these years.
However, the situation changed in the IP when the raw
material prices dropped. Therefore, although fluctuations
of raw material prices may have contributed to the
precarious situation of the Community industry during
the period considered, they were not so significant as to
have caused any injury suffered during the IP.

(b) Export activity of the Community

(51) According to Eurostat data, the total exports from the
Community during the period considered were insig-
nificant, i.e. one to two tonnes per year. Therefore, the
export activity of the Community industry could not
have contributed to any injury suffered during the
period considered.

(c) Import volumes and prices from other third countries

(52) According to Eurostat, import volumes of furfuraldehyde
into the Community from countries other than the PRC,
together with their average prices, developed as follows:

Table 17

Imports into the Community from other third countries
(volume)

(tonnes)

2000

2001

2002

IP

167

551

1 481

888

1 227

1 290

1 204

1 410

Thailand

Slovenia

South Africa

4 183

7 852

2 601

3 706

Dominican Republic

24 017

25 509

25 157

25 213

Total

29 594

35 202

30 443

31 217

L 107/8

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Official Journal of the European Union

28.4.2005

Table 18

Imports into the Community from other third countries
(average price)

2000

2001

2002

IP

(EUR/t)

Thailand

Slovenia

2 150

1 849

5 271

694

618

South Africa

1 158

1 558

Dominican Republic

543

1 235

Average

645

1 294

635

635

832

452

510

647

543

541

775

(53)

(54)

in particular,

increased due

from South Africa

furfuraldehyde from all

The import volumes of
third
countries other than the PRC have remained relatively
stable during the period considered, except
in 2001,
and Dominican
when imports
to increased
Republic,
furfuraldehyde in the production of
consumption of
It should be noted that, as in the
furfuryl alcohol.
original
investigation, the imports from the Dominican
Republic are entirely shipments from a mother company
to its European subsidiary to produce furfuryl alcohol.
Thus, the prices used in these transactions are transfer
prices between related companies and may not reflect
real market prices. It is noted that furfuraldehyde from
the Dominican Republic is not available on the free
Community market. Therefore, no indications had been
found that these imports would have contributed to the
precarious situation of the Community industry. Imports
from South Africa, the second biggest exporting country,
decreased during the period considered by 11 %. During
the IP the average import prices from all third countries,
with the exception of
the Dominican Republic, were
significantly higher than import prices under inward
processing from the PRC. It is therefore concluded that
although other imports could have contributed to the
precarious situation of the Community industry, their
volumes and prices are such that their effect cannot be
considered to be substantial.

5. Conclusion on the situation of the Community
industry

Following the imposition of the anti-dumping measures,
the situation of the Community industry has stabilised,
but remains fragile. Production, production capacity and
sales have decreased, as well as sales prices and the
market share of the Community industry. Investments,
also
return on investment
increased,
decreased, whereas
in
stocks have
in line with
particular between 2001 and 2002,
decreased sales and market share. Profitability and cash
flow have improved on average during the period
considered, but
they have declined since 2001. The
injury indicators therefore do not allow to conclude
it needs
that there is a clear injury picture. Moreover,

and employment have

the

precarious

than the
For

to be stressed that the situation of the two Community
producers differs considerably, with the applicant in a
other
much more
position
supporting Community producer.
former
producer, some injury may have been caused partially
by prices of raw materials. Under these circumstances,
and in particular also the fact that imports from the
PRC were made only under
inward processing, a
situation of continuation of injury caused by dumped
imports could not be established. Therefore it was
examined whether there would be recurrence of injury
if the measures lapsed.

the

(55)

(56)

F. LIKELIHOOD OF RECURRENCE OF INJURY

is recalled that

in recitals (29) and (30)

It
concluded that
likely to lead to a significant
exports from the PRC to the Community.

it was
the measures would be
increase of dumped

the expiry of

anti-dumping measures

Indeed, the volume of dumped imports under inward
processing considerably increased during the period
likely that
considered. As pointed out above,
without
further
increased volumes would be shipped to the Community
market at very low prices significantly undercutting the
Community industry prices. Currently, the difference of
prices of
the imported Chinese product and the one
produced by the Community industry is more than 40 %.

is
place

it
in

(57) As outlined in recital (26), it is estimated that the idle
capacity in the PRC is sufficient to supply the whole
Community demand for furfuraldehyde.
If the current
measures were allowed to lapse, there is a real threat
that a significant proportion of unused production
capacity in the PRC would be used to flood the
Community market with furfuraldehyde. It appears that
there are no other markets available to absorb the
Chinese capacity.

(58) When examining the impact of such additional

low-
priced imports on the situation of
the Community
industry it is noted that the sudden arrival of a large
quantity of dumped imports would immediately cause
a severe price depression on the Community market as
the Community industry would be likely to first try to
maintain its market share and its production. This would
in turn erode the Community industry's profitability, and
risk losses. It is clear that in this scenario the Community
injury caused by the
producers would suffer material
dumped imports or even risk not
to survive this
situation.

(59) On the basis of the above, it is concluded that a repeal of
measures would in all probability lead to a recurrence of
injury resulting from the dumped imports from the PRC.

28.4.2005

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Official Journal of the European Union

L 107/9

(60)

(61)

G. COMMUNITY INTEREST

1. Preliminary remark

In accordance with Article 21 of the basic Regulation it
was examined whether a prolongation of the existing
anti-dumping measures would be against the interest of
the Community as a whole. The determination of
Community interest was based on an appreciation of
the
the various
all
i.e.
the importers/traders as well as
Community industry,
the users and suppliers of
the product under consi-
deration.

those of

involved,

interests

It should be recalled that, in the previous investigations,
the adoption of measures was considered not
to be
the Community. Furthermore,
against
the present
thus
analysing a situation in which anti-dumping measures
are in place.

investigation is an expiry review,

the interest of

(62) On this basis it was examined whether, despite the
conclusion that there exists a likelihood of continuation
are
of dumping
compelling reasons which would lead to the conclusion
that it is not in the Community interest to maintain
measures in this particular case.

and recurrence of

injury,

there

(63)

(64)

2. Interest of the Community industry

The Community industry has proven to be a viable
industry, able to adapt to changing conditions on the
market. This was
confirmed in particular by the
positive development and stabilisation of its situation at
a time when effective competition had been restored after
the imposition of anti-dumping measures on imports
originating in the PRC. The Community industry
should be able to continue recovering through its sales
prices, any increase in the prices of
raw materials.
However,
it can be concluded that, without the conti-
nuation of anti dumping measures, its situation will in
all likelihood severely deteriorate, with a distinct possi-
bility of further plant closures.

3. Interest of unrelated importers/traders

The Commission sent out questionnaires
to seven
unrelated importers/traders. Only one importer/trader
cooperated with the investigation.
In its questionnaire
reply the importer/trader explained that the removal of
measures would increase its choice of suppliers, because
then it could also sell Chinese furfuraldehyde in the
Community market. Anti-dumping measures are not
intended to prevent
to
ensure that they are not made at injuriously dumped
prices.
there are many other sources of
supply available in the market. Furthermore, it is noted

from the PRC but

In addition,

imports

the continuation of measures would not have a
that
serious impact on the business of this importer/trader
in question and that
the latter has been profitable
every year during the period considered.

(65)

(66)

low rate of

cooperation by

Considering the
the
Community importers and traders, and the comments
is
received from the cooperating importer/trader,
concluded that
the measures in force do not unduly
affect importers and/or traders and that therefore the
continuation of measures would have the same result.

it

4. Interest of users

The Commission sent out questionnaires to 16 industrial
users of furfuraldehyde. Only one user cooperated with
the investigation. In its questionnaire reply the company
explained that most of the furfuraldehyde the company
uses as a raw material for the production of furfuryl
is supplied by its parent company situated in
alcohol
the Dominican Republic. Only a shortfall of this supply
would oblige the company to look for other suppliers.
According to the company,
the existing Community
producers would be its
first choice to cover any
shortage of supply.

(67)

In light of the low response rate to the questionnaires
sent and the comments of the sole cooperating user, it is
concluded that the continuation of the measures would
not have a significant effect on users.

(68)

5. Competition aspects

is noted that,

in addition to the two Community
It
producers,
imports originating in Thailand, Slovenia
(then not member of the European Community), South
Africa and Dominican Republic, are competing in the
Community market. Should the existing measures be
lifted, this would be unlikely to improve the competitive
situation on the Community market. To the contrary, it
would risk eliminating the Community producers, at least
in part, from the market because they would have great
difficulty in operating at the price level currently existing
for the Chinese furfuraldehyde. Other suppliers would be
likely to find it equally difficult to compete with the
Chinese product. Consequently,
there is no indication
that
the measures would have a
the continuation of
negative effect on the competitive situation in the
Community market.

6. Conclusion on Community interest

(69) Given the above,

it

is concluded that

there are no
compelling reasons, on the grounds of Community
interest, against the prolongation of the anti-dumping
measures.

L 107/10

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Official Journal of the European Union

28.4.2005

H. FINAL PROVISION

(70) All parties concerned were informed of the essential facts
and considerations on the basis of which it was intended
to recommend the maintenance of
the existing anti-
dumping duty in respect of imports of furfuraldehyde
originating in the PRC. No comments were received
within the period granted to make representations
following
the
conclusions.

disclosure which

could

alter

this

(71)

follows

from the

It
anti-dumping
above
measures currently in force with regard to imports of
i.e. a specific
furfuraldehyde originating in the PRC,
duty of EUR 352 per tonne, should be maintained,

that

the

furfural) falling within CN code 2932 12 00 originating in the
People's Republic of China.

2.

The amount of duty applicable is EUR 352 per tonne.

3.
In cases where 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
to Article 145 of Commission Regulation
value pursuant
(EEC) No 2454/93 (1), the amount of the anti-dumping duty,
calculated on the basis of paragraph 2 above, shall be reduced
by a percentage which corresponds to the apportioning of the
price actually paid or payable.

HAS ADOPTED THIS REGULATION:

Unless otherwise

4.
concerning customs duties shall apply.

specified,

the provisions

in force

Article 1

Article 2

1.
A definitive anti-dumping duty is hereby imposed on
imports of 2-furaldehyde (also known as furfuraldehyde or

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

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

Done at Luxembourg, 25 April 2005.

For the Council
The President

J. ASSELBORN

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regu-

lation (EC) No 2286/2003 (OJ L 343, 31.12.2003, p. 1).