2006/37/EC: Commission Decision of  5 December 2005  accepting an undertaking offered in connection with the anti-dumping and anti-subsidy proceedings concerning imports of sulphanilic acid originating in India
Date: 2005-12-05
Institutions: European Commission
Subjects: India, anti-dumping legislation, anti-subsidy proceeding, chemical product, import, originating product

L 22/52

EN

Official Journal of the European Union

26.1.2006

COMMISSION

COMMISSION DECISION

of 5 December 2005

accepting an undertaking offered in connection with the anti-dumping and anti-subsidy proceedings
concerning imports of sulphanilic acid originating in India

(2006/37/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

price undertaking offered by an Indian company,
i.e.
Kokan Synthetics and Chemicals Pvt Ltd (the company).

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 anti-dumping Regulation), and in particular Article 8
thereof,

Having regard to Council Regulation (EC) No 2026/97 of
6 October 1997 on protection against subsidised imports
from countries not members of the European Community (2)
(the basic anti-subsidy Regulation), and in particular Article 13
thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

(1)

the Council,

imposed definitive

by Regulation (EC)
In July 2002,
No 1338/2002 (3)
countervailing
duties on imports of sulphanilic acid originating in
India. On the same day, the Council, by Regulation (EC)
No 1339/2002 (4),
anti-dumping
duties on imports of sulphanilic acid originating in the
People’s Republic of China and India.

imposed definitive

(3)

(4)

(5)

(6)

(2) Within the

the
Commission, by Decision 2002/611/EC (5) accepted a

these proceedings,

framework of

the

company

In December 2003,
the
Commission that it wished to withdraw its undertaking
voluntarily. Accordingly,
the Commission Decision
accepting the undertaking was repealed by Commission
Decision 2004/255/EC (6).

informed

In February 2004,
an anti-absorption investigation
concerning imports of sulphanilic acid originating in
China has been concluded by Council Regulation (EC)
No 236/2004 (7), which increased the rate of the defi-
nitive anti-dumping duty for the People’s Republic of
China from 21 % to 33,7 %.

B. REQUEST FOR A REVIEW

In December 2004, the company lodged a request for a
interim review pursuant to Article 11(3) of the
partial
the
basic anti-dumping Regulation and Article 19 of
limited in
basic anti-subsidy Regulation respectively,
scope to the examination of
the
reinstatement of its undertaking.

the acceptability of

The request contained sufficient evidence of a significant
change in circumstances which had occurred since the
company voluntarily withdrew its undertaking. The
company therefore wished to offer again its original
undertaking and submitted that, in view of the changes
circumstances,
such an undertaking would be both
effective and workable.

(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 288, 21.10.1997, p. 1. Regulation as last amended by Regu-

lation (EC) No 461/2004.

(3) OJ L 196, 25.7.2002, p. 1. Regulation as amended by Regulation

(EC) No 492/2004 (OJ L 80, 18.3.2004, p. 6).

(4) OJ L 196, 25.7.2002, p. 11. Regulation as last amended by Regu-

lation (EC) No 492/2004.
(5) OJ L 196, 25.7.2002, p. 36.

(7)

A notice of initiation of a partial
Journal of
published in the Official
accordingly (8).

interim review was
the European Union

(6) OJ L 80, 18.3.2004, p. 29.
(7) OJ L 40, 12.2.2004, p. 17.
(8) OJ C 101, 27.4.2005, p. 34.

26.1.2006

EN

Official Journal of the European Union

L 22/53

(8)

(9)

(10)

(11)

C. ACCEPTANCE OF THE UNDERTAKING

Details of the procedural aspects and findings of the
review investigation are set out in Council Regulation
(EC) No 123/2006 (1) amending both, Regulation (EC)
No 1338/2002 imposing a definitive countervailing
duty and Regulation (EC) No 1339/2002 imposing a
definitive anti-dumping duty on imports of sulphanilic
acid originating, inter alia, in India.

It is the conclusion of the investigation that the revised
undertaking offered by the company can be accepted
since it eliminates the injurious effects of dumping and
subsidisation.

In this revised offer, the company agreed to index the
minimum price originally offered in order to address the
cyclical nature of the price of one of the key ingredients
used in the production of sulphanilic acid.

The company will also provide the Commission with
regular and detailed information concerning its exports
to the Community, meaning that the undertaking can be
monitored effectively by the Commission. Furthermore,
the sales structure of
the
Commission considers the risk of circumventing the
agreed undertaking is limited.

this company is such that

Council Regulation that any violation of the undertaking
may lead to the retrospective application of the anti-
dumping and countervailing duty for the relevant trans-
actions.

(15)

In the event of a breach or withdrawal of the under-
taking, or in case of withdrawal of acceptance of the
undertaking by the Commission, the anti-dumping and
countervailing duty imposed in accordance with Article
9(4) of the basic anti-dumping Regulation and Article
15(1) of the basic anti-subsidy Regulation shall automa-
tically apply pursuant to Article 8(9) of the basic anti-
dumping Regulation and Article 13(9) of the basic anti-
subsidy Regulation,

HAS DECIDED AS FOLLOWS:

Article 1

The undertaking offered by the exporting producer mentioned
in connection with the anti-dumping and anti-subsidy
below,
proceedings concerning imports of sulphanilic acid originating
in India is hereby accepted.

(12)

In view of this, the undertaking is acceptable.

Country

Company

India

Kokan Synthetics and Chemicals Pvt Ltd,
14 Guruprasad, Gokhale Road (N), Dadar
(W), Mumbai 400 028

Taric
Additional
Code

A398

Article 2

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

Done at Brussels, 5 December 2005.

For the Commission

Peter MANDELSON
Member of the Commission

(13)

In order to enable the Commission to monitor effectively
the compliance with the undertaking, when the request
for release for free circulation pursuant to the under-
taking is presented to the relevant customs authority,
exemption from the duty will be conditional upon the
presentation of an invoice containing at least the items of
information listed in the Annex to Regulation (EC)
123/2006. This level of information is also necessary
to enable customs authorities to ascertain with sufficient
to the
shipment
precision that
commercial documents. Where no such invoice
is
presented, or when it does not correspond to the
product presented to customs, the appropriate rate of
countervailing and anti-dumping duty shall
instead be
payable.

corresponds

the

(14)

To further ensure the effective respect of the undertaking,
the importers have been made aware by the above

(1) See page 5 of this Official Journal.