Notice of initiation of an anti-dumping proceeding concerning imports of certain footwear with uppers of leather originating in the People's Republic of China and Vietnam
Date: 2005-07-07
Institutions: European Commission
Subjects: China, Viet Nam, anti-dumping legislation, footwear industry

C 166/14

EN

Official Journal of the European Union

7.7.2005

Notice of initiation of an anti-dumping proceeding concerning imports of certain footwear with
uppers of leather originating in the People's Republic of China and Vietnam

(2005/C 166/06)

The Commission has received a complaint pursuant to Article
5 of Council Regulation (EC) No 384/96 on protection against
dumped imports from countries not members of the European
Community (‘the basic Regulation’) (1), as last amended by
Council Regulation (EC) No 461/2004 (2), alleging that imports
of certain footwear with uppers of leather, originating in the
People's Republic of China and Vietnam (‘the countries
concerned’), are being dumped and are thereby causing material
injury to the Community industry.

1. Complaint

The complaint was lodged on 30 May 2005 by the European
Confederation of the Footwear Industry (‘CEC’) (‘the complai-
nant’) on behalf of producers representing a major proportion,
in this case more than 40 %, of the total Community produc-
tion of certain footwear with uppers of leather.

On this basis, the dumping margins calculated are significant
for both countries concerned.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China and
Vietnam have increased overall in absolute terms and in terms
of market share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had 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 perfor-
mance, the financial situation and the employment situation of
the Community industry.

2. Product

5. Procedure

CN

codes:

The product allegedly being dumped is footwear with uppers
of leather or composition leather other than: footwear which is
designed for a sporting activity and has, or has provision for
the attachment of, spikes, sprigs, stops, clips, bars or the like,
skating boots, ski-boots and cross-country ski footwear, snow-
board boots, wrestling boots, boxing boots and cycling shoes,
slippers and other indoor footwear, and footwear with a
protective toecap originating in the People's Republic of China
and Vietnam (‘the product concerned’), normally declared
ex 6403 30 00,
within
ex 6403 51 19,
ex 6403 51 11,
ex 6403 51 99,
ex 6403 51 91,
ex 6403 59 35,
ex 6403 59 11,
ex 6403 59 95,
ex 6403 59 39,
ex 6403 91 13,
ex 6403 59 99,
ex 6403 91 91,
ex 6403 91 16,
ex 6403 91 98,
ex 6403 91 93,
ex 6403 99 33,
ex 6403 99 11,
ex 6403 99 91,
ex 6403 99 36,
and
ex 6403 99 93,
ex 6405 10 00. These CN codes are only given for informa-
tion.

ex 6403 51 15,
ex 6403 51 95,
ex 6403 59 31,
ex 6403 59 91,
ex 6403 91 11,
ex 6403 91 18,
ex 6403 91 96,
ex 6403 99 31,
ex 6403 99 38,

ex 6403 99 96,

ex 6403 99 98

6403 20 00,

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 5 of the basic
Regulation.

5.1. Procedure for the determination of dumping and injury

investigation will

The
the product
concerned originating in the People's Republic of China and
Vietnam is being dumped and whether this dumping has
caused injury.

determine whether

(a) Sampling

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

3. Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for the People's
Republic of China and Vietnam on the basis of the price in a
market economy country, which is mentioned in point 5.1(d).
The allegation of dumping is based on a comparison of normal
value, thus calculated, with the export prices of the product
concerned when sold for export to the Community.

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 77, 13.3.2004, p. 12.

(i) S a mp li n g

i n
P e op le ' s R e p u b li c of Ch i na a nd Vi e tna m

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

for

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 point 6(b)(i) and in the
format indicated in point 7:

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Official Journal of the European Union

C 166/15

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

(ii) S a mp li ng for Commu ni ty p r odu c e r s

and/or telex numbers and contact person,

— the turnover in local currency and the volume in
pairs of the product concerned exported or sold for
export
to the Community during the period 1
April 2004 to 31 March 2005,

— the turnover in local currency and the sales volume
in pairs for the product concerned on the domestic
market during the period 1 April 2004 to 31
March 2005,

— whether the company intends to claim an indivi-
(individual margins can only be

dual margin (1)
claimed by exporting producers),

— the precise activities of the company with regard to

the production of the product concerned,

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

companies (2)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

imply

replying

— by providing the above information, the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this
and
will
accepting
its
response. If the company indicates that it does not
agree to its possible inclusion in the sample, it will
be deemed to not have cooperated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

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 countries, and any known associa-
tions of exporters/producers.

(1) Individual margins may be claimed pursuant to Article 17(3) of the
basic Regulation for companies not included in the sample, Article
9(5) of the basic Regulation concerning individual treatment in
cases involving non market economy countries/economies in transi-
tion, and article 2(7)(b) of the basic Regulation for compagnies
claiming market economy status. Note that claims for individual
treatment necessitate an application pursuant to Article 9(5) of the
basic Regulation and that claims regarding market economy status
necessitate an application pursuant to Article 2(7)(b) of the basic
Regulation.

(2) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying
down provisions for the implementation of Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code (OJ L
253, 11.10.1993, p. 1).

In view of the large number of Community producers
supporting the complaint, the Commission intends to
investigate injury to the Community industry by
applying sampling.

The selection of the sample will be based on the largest
representative volume of production and sales of the
Community industry which can be reasonably investi-
gated within the time available.

In order to obtain the information necessary for the
selection of the sample of Community producers, the
Commission will contact associations of Community
producers and/or individual Community producers. In
addition, individual Community producers, particularly
those not members of an association, may also indicate
their willingness to be included in the sample. These
by
producers
contacting the Commission within the time limit set in
point 6(b)(i).

should make

themselves

known

(iii) F i na l se le c ti on of t h 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 point 6(b)(ii).

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 sample.

after having

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6(b)(iii)
and must cooperate within the framework of the inves-
tigation.

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 point 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 sampled Community industry and to any association
of producers in the Community, to the sampled exporters/
producers in the People's Republic of China and Vietnam,
to any association of exporters/producers, to the importers,
to any association of importers named in the complaint,
and to the authorities of the exporting countries concerned.

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Official Journal of the European Union

7.7.2005

Exporters/producers in the People's Republic of China and
Vietnam claiming an individual margin, with a view to the
application of Articles 17(3) and 9(6) of the basic Regu-
lation, must submit a completed questionnaire within the
time limit set in point 6(a)(ii) of this notice. They therefore
have to request a questionnaire within the time limit set in
point 6(a)(i) of this notice. However, such parties should be
aware that if sampling is applied to exporters/producers,
the Commission may nonetheless decide not to calculate an
individual margin for them,
if the number of exporters/
producers is so large that individual examination would be
unduly burdensome and would prevent the timely comple-
tion of the investigation.

(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 has to reach the Commission
within the time limit set in point 6(a)(ii).

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).

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose Brazil as an appropriate market
economy country for the purpose of establishing normal
value in respect of the People's Republic of China and
Vietnam. Interested parties are hereby invited to comment
on the appropriateness of this choice within the specific
time limit set in point 6(c).

5.2. Procedure for assessment of Community interest

and

representative

In accordance with Article 21 of the basic Regulation and in
the event that the allegations of dumping and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-dumping measures would not be
against the Community interest. For this reason the Community
industry, importers, their representative associations, represen-
tative users
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 point 6(a)(ii), make themselves known
and provide the Commission with information. The parties
which have acted in conformity with the precedent sentence
may request a hearing setting the particular reasons why they
should be heard within the time limit set in point 6(a)(iii). 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 o r p a r t i e s

t o r e q u e st

a q u e sti on n a i r e or

o t h e r c la i m f or m s

All interested parties should request a questionnaire or
other claim forms as soon as possible, but not later
than 10 days after the publication of this notice in the
Official Journal of the European Union.

(ii) F or p a r ti e s

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

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

(e) Market economy status

For those producers in the People's Republic of China and
Vietnam who claim and provide sufficient evidence that
they operate under market economy conditions,
i.e. that
they meet the criteria laid down in Article 2(7)(c) of the
basic Regulation, normal value will be determined in
accordance with Article 2(7)(b) of the basic Regulation.
Producers intending to submit duly substantiated claims
must do so within the specific time limit set in point 6(d).
The Commission will send claim forms to all producers in
the People's Republic of China and Vietnam named in the
complaint and to any association of exporters/producers
named in the complaint, as well as to the authorities of the
People's Republic of China and Vietnam.

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 point
6(b)(iii).

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Official Journal of the European Union

C 166/17

(iii) H e a r i ng s

7. Written submissions, questionnaire replies and cor-

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

(i) The

information specified in points 5.1(a)(i),and
5.1(a)(ii) of this notice should reach the Commission
within 15 days of the date of publication of this notice
in the Official Journal of the European Union, given that
the Commission intends to consult parties concerned
that have expressed their willingness to be included in
the samples 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)(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 30 days from the date of
the notification of their inclusion in the sample.

(c) Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the
appropriateness of Brazil which, as mentioned in point
5.1(d), is envisaged as a market-economy country for the
purpose of establishing normal value in respect of
the
People's Republic of China and Vietnam. These comments
must reach the Commission within 10 days of the date of
publication of this notice in the Official Journal of the Euro-
pean Union.

(d) Specific time limit for submission of claims for market economy

status and/or for individual treatment

Duly substantiated claims for market economy status (as
mentioned in point 5.1(e)) and/or for individual treatment
pursuant to Article 9(5) of the basic Regulation, must reach
the Commission within 15 days of the date of publication
of this notice in the Official Journal of the European Union.

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 interested
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.

8. Non-cooperation

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
the result may be less
Article 18 of the basic Regulation,
favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 6(9)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union. According to Article 7(1) of the basic Regulation, provi-
sional measures may be imposed no later than 9 months from
the publication of this notice in the Official Journal of the Euro-
pean Union.

(1) This means that

the document

is for internal use only.

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of the European Parliament and of the Council regarding public
access to European Parliament, Council and Commission documents
(OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant
to Article 19 of the basic Regulation and Article 6 of the WTO
Agreement on Implementation of Article VI of the GATT 1994
(Anti-dumping Agreement).

It