Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of silicon carbide originating in the People's Republic of China, the Russian Federation and Ukraine and of an interim review of the anti-dumping measures applicable to imports of silicon carbide originating in the Russian Federation
Date: 2005-05-26
Institutions: European Commission
Subjects: China, Russia, Ukraine, anti-dumping duty, anti-dumping legislation, originating product, semi-metal

26.5.2005

EN

Official Journal of the European Union

C 129/17

Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of
silicon carbide originating in the People's Republic of China, the Russian Federation and Ukraine
and of an interim review of the anti-dumping measures applicable to imports of silicon carbide
originating in the Russian Federation

(2005/C 129/04)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of silicon
the
carbide originating in the People's Republic of China,
Russian Federation and Ukraine,
the
(‘countries concerned’),
those
Commission has
measures pursuant to Article 11(2) of Council Regulation (EC)
No 384/96 (2) (‘the basic Regulation’). The Commission has also
received a request for an interim review pursuant to Article
11(3) of the basic Regulation, of the measures in force on
imports of silicon carbide originating in the Russian Federation.

received a request

review of

for

1. Requests for review

The requests were lodged on 24 February 2005 by the Euro-
pean Chemical
(‘the applicant’) on
behalf of producers representing 100 % of the total Community
production of silicon carbide.

Industry Council

(CEFIC)

2. Product

The product under review is silicon carbide originating in the
People's Republic of China, the Russian Federation and Ukraine
(‘the product concerned’), currently classifiable within CN code
2849 20 00. This CN code is given only for information.

3. Existing measures

The measures currently in force are definitive anti-dumping
duties imposed by Council Regulation (EC) No 1100/2000 (3).

4. Grounds for review

4.1. Grounds for the expiry 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.

(a) Russian Federation and Ukraine

The allegation of continuation of dumping for Russian
Federation is based on a comparison of normal value,
established on the basis of domestic prices, with the export
prices of the product concerned when sold for export to
the Community.

In view of the provisions of Article 2(7) of the basic Regu-
lation, the applicant established normal value in respect of
Ukraine on the basis of the price in an appropriate market

(1) OJ C 254, 14.10.2004, 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 125, 26.05.2000, p. 3. Regulation as last amended by Regu-

lation (EC) No 991/2004 (OJ L 182, 19.05.2004, p. 18).

economy country, which is mentioned in paragraph 5.1(d)
of this notice. The allegation of continuation of dumping
for Ukraine is based on a comparison of normal value, as
set out in the preceding sentence, with the export prices of
the product concerned when sold for export to the Com-
munity.

On this basis, the dumping margins calculated are signifi-
cant for Russian Federation and Ukraine.

The applicant has provided evidence that imports of the
product concerned from Russian Federation and Ukraine
have continued to enter in significant quantities.

It is also alleged that the volumes and the prices of the
imported product concerned have continued, among other
consequences, to have a negative impact on the level of
prices charged by the Community industry, resulting in
substantial adverse effects on overall performance, financial
and employment situation of the Community industry.

In this

The applicant further alleges the likelihood of further injur-
the applicant presents
respect
ious dumping.
evidence that, should measures be allowed to lapse, the
current import level of the product concerned is likely to
increase due to the existence of unused capacity in Russian
Federation and Ukraine.

In addition, the applicant alleges that the partial removal of
injury is mainly due to the existence of measures and that
imports at dumped prices
any recurrence of substantial
from Russian Federation and Ukraine would likely lead to a
recurrence of further injury of the Community industry
should measures be allowed to lapse.

(b) People's Republic of China

the likelihood of

The applicant alleges
recurrence of
dumping of imports of the product concerned from the
People's Republic of China. In view of the provisions of
Article 2(7) of the basic Regulation, the applicant estab-
lished normal value for the People's Republic of China 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 recurrence of dumping for the
People's Republic of China is based on a comparison of
normal value, as set out in the preceding sentence, with the
export prices of
the product concerned when sold for
export to other third countries, i.e., Japan and the USA.

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Official Journal of the European Union

26.5.2005

On this basis, the dumping margin calculated is significant
for the People's Republic of China.

sampling, in accordance with Article 17 of the basic Regu-
lation.

In this

The applicant further alleges the likelihood of further injur-
ious dumping.
the applicant presents
respect
evidence that, should measures be allowed to lapse, the
current import level of the product concerned is likely to
increase due to the existence of unused capacity and the
recent investments in production capacity in the People's
Republic of China.

In addition, the applicant alleges that the removal of injury
caused by imports of silicon carbide originating in the
People's Republic of China is mainly due to the existence of
measures and that any recurrence of substantial imports at
dumped prices from the People's Republic of China would
likely lead to a recurrence of further injury of the Com-
munity industry should measures be allowed to lapse.

4.2. Grounds for the interim review

The applicant alleges that the current form of the measure, i.e.
quantitative undertaking, with respect to imports of silicon
carbide originating in the Russian Federation is inappropriate
as it does not eliminate the injurious effects of the dumping
and should be reviewed.

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review and an interim review, the Commission hereby
initiates reviews in accordance with Articles 11(2) and 11(3) of
the basic Regulation.

5.1. Procedure

for

likelihood of
the determination of
dumping and injury and for the determination of the
appropriateness of the form of the measure with regard
to imports from the Russian Federation

The expiry review will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury. The interim review will
examine the appropriateness of
the current
measures on imports of
the product concerned from the
Russian Federation and whether there is a need to change the
form of the measures.

the form of

(a) Sampling

(i) S a mp li n g

for
P e op le ' s R e p u b li c of Ch i na

e x p or t e r s/ p r odu c e r s

i n

t h e

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters producers, or representatives acting on their
behalf, are hereby requested to make themselves
known by contacting the Commission and providing
the following information on their company or compa-
nies 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 turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 April 2004 up
to 31 March 2005,

— the turnover in local currency and the sales volume
in tonnes for the product concerned sold to other
third countries during the period 1 April 2004 up
to 31 March 2005,

— the precise activities of the company with regard to
the production of the product concerned and the
production volume in tonnes of
the product
concerned, the production capacity and the invest-
ments in production capacity during the period 1
April 2004 up to 31 March 2005,

— the names and the precise activities of all related
involved in the production and/or
the product

companies (1)
selling (export and/or domestic) of
concerned,

— 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
for the selection of the sample of exporters/producers,
the Commission will, in addition, contact the authori-
ties of the exporting country, and any known associa-
tions of exporters/producers.

In view of the apparent number of parties involved in this
to apply
investigation,

the Commission may decide

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93
concerning the implementation of the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

26.5.2005

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Official Journal of the European Union

C 129/19

(ii) Sa mp li ng for i mp or 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 EUR of the company during
the period 1 April 2004 up to 31 March 2005,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in EUR of imports
into and resales made in the Community market
during the period 1 April 2004 up to 31 March
2005 of the imported product concerned origin-
ating in the People's Republic of China, the Russian
Federation and Ukraine,

— the names and the precise activities of all related
involved in the production and/or

companies (1)
selling of the product concerned,

— 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
for the selection of
the
Commission will, in addition, contact any known asso-
ciations of importers.

the sample of

importers,

samples

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

after having

Companies included in the samples 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.

forthcoming,

sufficient cooperation is not

If
the
Commission may base its findings, in accordance with
Articles 17(4) and 18 of the basic Regulation, on the
facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in paragraph 8 of this notice.

(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 sampled exporters/
producers in the People's Republic of China, to the expor-
ters/producers in the Russian Federation and Ukraine, to
any association of exporters/producers,
to the sampled
importers and traders, to any association of importers and
traders named in the request or which cooperated in the
investigation leading to the measures subject to the present
review, and to the authorities of the exporting countries
concerned.

(c) Collection of information and holding of hearings

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

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

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93
concerning the implementation of the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

submit

All interested parties are hereby invited to make their views
known,
than questionnaire
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

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.

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Official Journal of the European Union

26.5.2005

(d) Selection of the market economy country

In the previous investigation Brazil was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
China and Ukraine. The Commission envisages using Brazil
again for this purpose. Interested parties are hereby invited
to comment on the appropriateness of this country within
the specific time limit set in paragraph 6(c) of this notice.

5.2. Procedure for the assessment of Community interest

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 and traders, their represen-
tative associations,
representative users and representative
consumer organisations, provided that they prove that there is
an objective link between their activity and the product
concerned, may, within the general 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 particular 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

(i) F or p a r ti e s t o r e q u e st a q u e st i onna i r e

interested parties who did not cooperate in the
All
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.

(ii) F or p a r ti e s

t o ma ke th e mse lve s know n,

t o
submi t q u e sti onn a i r e r e p li e s and a ny oth e r
i nf or ma ti on

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,

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 of the
European Union, unless otherwise specified. 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.

Companies selected in a sample must submit question-
naire replies within the time limits specified in para-
graph 6(b)(iii) of this notice.

(iii) H e a r i ng s

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

(b) Specific time limit in respect of sampling

reach

should

concerning

(i) The information specified in paragraphs 5.1(a)(i) and
5.1(a)(ii)
the
samples
Commission within 15 days of the date of publication
of this notice in the Official
the European
Union, given that the Commission intends to consult
parties 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.

Journal of

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) must reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
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.

(c) Specific time limit
economy country

for

the selection of

the market

Parties to the investigation may wish to comment on the
appropriateness of Brazil 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 the People's Republic of China and Ukraine.
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

C 129/21

7. Written submissions, questionnaire replies and cor-

8. Non-cooperation

respondence

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 does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, 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 of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings 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 expiry review and the interim review

investigations

The expiry review and interim review investigations 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