Council Regulation (EC) No 1275/2005 of 26 July 2005 amending Regulation (EC) No 2268/2004 imposing a definitive anti-dumping duty on imports of tungsten carbide and fused tungsten carbide originating in the People’s Republic of China
Date: 2005-07-26
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, anti-dumping legislation, import, originating product, tungsten

3.8.2005

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Official Journal of the European Union

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(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1275/2005

of 26 July 2005

amending Regulation (EC) No 2268/2004 imposing a definitive anti-dumping duty on imports of
tungsten carbide and fused tungsten carbide originating in the People’s Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1)
(the
basic Regulation), and in particular Article 11(3) thereof,

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

(3)

Whereas:

A. MEASURES IN FORCE

(1)

By Regulation (EC) No 771/98 (2) the Council imposed a
definitive anti-dumping duty of 33 % on imports of
tungsten carbide and fused tungsten carbide originating
in the People’s Republic of China (PRC). Following an
expiry review, the duty was re-imposed by Regulation
(EC) No 2268/2004 (3).

together

pursuant to Article 11(3) of the basic Regulation. The
request was lodged by the European Association of
Metals (Eurometaux) (the applicant) on behalf of three
producers,
representing a major proportion
(more than 80 %) of the total Community production
tungsten carbide and fused tungsten carbide. The
of
applicant alleged that a new product
falling
within the product scope of the existing measures on
tungsten carbide
and fused tungsten carbide, had
appeared on the market. The applicant alleged that the
new product type shared the same basic physical and
chemical characteristics and end uses as the product
covered by the measures in force. In these circumstances,
the applicant alleged that both the product covered by
the measures in force and the new product type should
therefore be
and the
measures in force should, also apply to imports of the
new product type.

considered a single product

type,

after

determined,
that

consulting
sufficient evidence existed for

the Advisory
Having
the
Committee,
interim review, the Commission,
initiation of a partial
on 31 March 2004,
initiated an investigation in
accordance with Article 11(3) of the basic Regulation (4).
The investigation was limited in scope to the definition
of the product subject to the measures in force, in order
to assess the need for the amendment of the scope of the
measures in force.

(4)

The investigation period (IP) covered the period from
1 January 2003 to 31 December 2003.

B. PRESENT INVESTIGATION

(2) While the abovementioned expiry review was ongoing,
the Commission received a request for an interim review,

(5)

(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 111, 9.4.1998, p. 1.
(3) OJ L 395, 31.12.2004, p. 56.

(4) OJ C 81, 31.3.2004, p. 8.

The Commission advised the applicant Community
producers as well as all known Community importers,
all known Community users and all known exporters in
the PRC of the initiation of the review.

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(6)

(7)

the
The Commission requested information from all
abovementioned parties and from those other parties
who made themselves known within the time limit set
in the notice of
the investigation. The
Commission also gave the interested parties the oppor-
tunity to make their views known in writing and to
request a hearing.

initiation of

received from the
replies were
No questionnaire
importers,
the main
traders and exporters. However,
five exporters of tungsten carbide and fused tungsten
carbide made written comments.

(11)

(8)

The following three Community industry companies
replied to the questionnaire sent by the Commission:

— H.C. Starck GmbH, Germany,

— Wolfram Bergbau- und Hütten GmbH, Austria,

— Eurotungstène Poudres SA, France.

(9)

The following seven users in the EU also replied to the
questionnaire:

— Boart Longyear GmbH & Co. KG, Germany,

drilling and mining tools as well as in dies and tips for
the drawing and forging of metals.

D. RESULTS OF THE INVESTIGATION

1. Preliminary comment

The exporters claimed in their written comments that the
initiation of this investigation was a ‘legal inconsistency’,
and, therefore, they did not reply to the questionnaire
sent by the Commission. In their view, the allegation of a
new product type appearing on the market could not be
investigated within a review limited to the scope of the
product concerned under Article 11(3) of the basic Regu-
lation, but rather requires a full anti-dumping investi-
gation under Article 5 of
the basic Regulation.
However, the very purpose of the current review is to
assess whether the new product type and the product
subject to the existing measures are to be considered as
the product concerned, i.e. whether they both have the
same characteristics and end uses and can therefore be
considered as one single product. This assessment can
the
only be made in the context of a review of
existing measures on imports of the product concerned.
Any investigation under Article 5 of the basic Regulation
could only be envisaged for a different product. The
claim made by the exporters is therefore not valid and
must be rejected. It should be noted that the non-coop-
eration of the exporters concerned resulted in a lack of
certain relevant
information and led to the use of
available information in application of Article 18 of the
basic Regulation.

— Ceratizit SARL, Luxembourg,

2. New product type

— Ceratizit GmbH, Germany,

— F.I.L.M.S. SpA, Italy,

— MISCELE Srl, Italy,

— Harditalia Srl, Italy,

— TRIBO Hartmetall GmbH, Germany.

C. PRODUCT CONCERNED

(10)

The product concerned, as defined in the regulation
imposing the measures in force, is tungsten carbide and
fused tungsten carbide originating in the PRC and falling
within CN code 2849 90 30. Both are compounds of
carbon and tungsten produced by heat treatment (carbur-
fusion in the second). Both
isation in the first case,
products
input
are
materials in the manufacture of hard metal components
such as ‘cemented carbide’ cutting tools and high-wear
components, in abrasion-resistant coatings, in bits for oil

intermediate products, used as

(12)

(13)

subject

type is mainly constituted of

the
The new product
product
to the existing measures which is
mixed with a small percentage of another metallic
powder (mostly cobalt but other metallic powders such
as nickel, chromium and other components, depending
on specific properties required, can also be mixed with
the product concerned). This new product
type is
currently classified within CN code 3824 30 00, a
‘non-agglomerated metal
subheading
carbides mixed together or with metallic binders’,
which consists of a diversity of mixtures, at different
stages of processing. Just as the product subject to the
existing measures (see recital (10)), the new product type
is an intermediate product, used as input material in the
manufacture of hard metal components.

described

as

3. Comparison between the product subject to the
existing measures and the new product type

the existing measures,

In order to assess whether the new product type should
be considered as the product concerned and therefore fall
it was
within the scope of
examined whether
type and the
product subject
to the existing measures shared the
same chemical and physical characteristics and end
uses. It was also examined how the Community users
perceived the new product type.

the new product

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(a) Physical and chemical characteristics

(14)

The new product type, as explained above under recital
(12),
is an intermediate product, which consists of the
product subject to the existing measures, simply mixed
with another metallic powder.

(15)

to the existing measures. While it
type slightly differs
subject

The investigation demonstrated that simply mixing the
product subject to the existing measures with a metallic
the
powder does not change the characteristics of
is
product subject
true that
in
the new product
structure from the product
to the existing
measures due to the addition of a small amount of
it was established that both products keep the
cobalt,
same physical and chemical characteristics and follow
exactly the same processing stages leading to identical
end use. Indeed, it is only in the subsequent processing
stages (see also recital (18)), that e.g. cobalt serves as a
binder, i.e. to ensure the adhesion of the carefully mixed
components inserted. Only from that stage are new
physical and chemical characteristics attained (see also
(24)). It was also established that — similar to
recital
the addition of cobalt — the simple addition of other
other
substances,
components, does not, merely by virtue of the substances
themselves, change the properties of the product subject
to the existing measures. The addition of these other
substances in the milling stage depends on specific prop-
erties required (see recital (18)).

chromium and/or

nickel,

e.g.

metal components (end product reached by pressing and
i.e. high temperature moulding) where the
sintering,
finally becomes active as a
added metallic powder
binder matrix. Both the product subject
to existing
measures and the new product type have therefore to
be transformed, through a similar process, into a ready
to press powder. The ready to press powder has to
correspond to very specific composition requirement by
customers,
the mining, metal-forging and coating
industry.

i.e.

(19)

It follows from the above that the product subject to the
existing measures and the new product type both exclu-
sively enter into the same stage of the production chain
and that the simple addition of a small amount of cobalt
or any other substance mentioned in recital (15) will not
change the properties of
to the
existing measures. All serve the same end uses, i.e. they
have to be further processed.

the product subject

(c) User perception

(20) Users of

the product

concerned are mainly small
producers of a wide range of hard metal components.
The few cooperating users confirmed the abovemen-
to
tioned findings,
the existing measures and the new product
type are
processed on the EU market.

that both the product subject

i.e.

(16)

Furthermore, it was found that no Community producer
manufactures the new product type.

(21)

The investigation also showed that a limited number of
users, of which only one fully cooperated, have imported
the new product type from the PRC. The cooperating
user stated that
type was used for
exactly the same purposes as the product subject to the
existing measures.

the new product

(17) As a consequence, there is no basic physical or chemical
difference between the new product type and the product
subject to the existing measures.

(22)

(b) End uses

(18)

type enter into the same stage of

Both the product subject to the existing measures and the
new product
the
tungsten production chain. Like the product subject to
the existing measures, the new product type needs to be
carefully milled (together with other metallic or carbide
additives and organic binders) and granulated by vacuum
or spray drying (homogeneous particle shaping) before it
reaches the state of a ‘ready to press’ powder. A ready to
press powder is the precursor to the production of hard

type
the finding that
In view of
same
imported from the PRC is applied for
purposes
existing
the product
measures, it can be considered that users do not see a
difference between both products.

the new product
the

to the

subject

as

(d) Distinction between the new product type and the other

products within CN code 3824 30 00

(23)

The new product type falls within the same CN code as
ready to press powders, namely CN code 3824 30 00, i.e.
the further processed product.

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(24)

To distinguish the new product type from ready to press
powders within CN code 3824 30 00,
the following
criteria can be applied: macroscopic aspect, particle
size, and chemical composition and flow properties.
there is a clear
Concerning the macroscopic aspect,
difference in visibility. Particles of the new product type
cannot be seen with the unaided eye while the particles
of ready to press powders are visible. Concerning the
chemical composition, contrary to the new product
the ready to press powders is
type, each particle of
constituted by
a well defined and homogeneous
dispersion of all the chemical components. Furthermore,
the particle shape of the new product type is irregular,
while the shape of the particles of the other mixtures is
spherical. Finally, the new product type has very poor
flow properties, while ready to press powder is free
flowing and has a homogeneous composition. The lack
of fluidity can be measured and established by using a
calibrated funnel, e.g. a HALL flow meter according to
ISO standard 4490.

(e) Conclusion

(25)

The investigation demonstrated that
the alleged new
product type is fundamentally the same as the product
to the existing measures. The addition of a
subject
(15) does not
metallic powder as described in recital
alter its properties or use.

(26) On the basis of these results, and in particular as both
products have the same main physical and chemical
composition, and whereas the same applications are
similarly perceived by users,
it is considered that the
product subject to the existing measures and the new
product type are a single product, i.e. the latter product

is a ‘like product’ with respect to the former within the
meaning of Article 1(4) of the basic Regulation.

E. MEASURES

(27)

In view of the above findings, it is considered appropriate
to clarify that the existing anti-dumping measures on the
product concerned also cover the new product
type
currently imported under CN code ex 3824 30 00,

HAS ADOPTED THIS REGULATION:

Article 1

Article 1(1) of Regulation (EC) No 2268/2004 shall be replaced
by the following:

and

ex 3824 30 00 (*)

‘1.
A definitive anti-dumping duty is hereby imposed on
imports of tungsten carbide, tungsten carbide simply mixed
with metallic powder and fused tungsten carbide originating
in the People’s Republic of China, falling within CN codes
2849 90 30
code
3824 30 00 10).
___________
(*) The particles are irregular and not free flowing in contrast
to “ready to” press powder particles, which are spherical
or granular shaped, homogeneous and free flowing. The
lack of fluidity can be measured and established by using
a calibrated funnel, e.g. a HALL flow meter according to
ISO standard 4490.’

(TARIC

Article 2

This Regulation shall enter into force on the day following that
of 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 Brussels, 26 July 2005.

For the Council
The President

J. STRAW