Proposal for a Council Regulation amending Regulation (EC) 92/2002 imposing definitive anti-dumping duty and collecting definitively the provisional anti-dumping duty imposed on imports of urea originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the Ukraine
Date: 2005-12-15
Institutions: European Commission
Subjects: anti-dumping duty, anti-dumping legislation, chemical fertiliser, import, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.12.2005 
COM(2005) 663 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) 92/2002 imposing definitive anti-dumping duty and 
collecting definitively the provisional anti-dumping duty imposed on imports of urea 
originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the 
Ukraine 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  92/2002, 
imposing  definitive  anti-dumping  duties  on  imports  of  urea  originating,  inter  alia,  in 
Bulgaria,  except  where  this  product  is  directly  exported  by  the  Bulgarian  exporting 
producer Chimco AD from which the Commission, by Regulation (EC) No 1497/2001, 
has accepted a price undertaking. 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

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3)  LEGAL ELEMENTS OF THE PROPOSAL 

  •  Summary of the proposed action 

For the reasons indicated in Commission Regulation (EC) No …/20051, it is considered that 
the  Bulgarian  exporting  producer  Chimco  AD  has  breached  the  terms  of  its  undertaking. 
The undertaking should therefore be withdrawn and Council Regulation (EC) No 92/2002 
should be amended accordingly. 

The  Member  States  were  consulted  regarding  this  investigation.  All  Member  States 
supported the proposal. 

It is therefore proposed that the Council adopts the attached proposal for a Regulation which 
should be published in the Official Journal of the European Union as soon as possible.  

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 461/2004 of 8 March 2004. 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

The form of action is described in the above-mentioned basic Regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: regulation. 

Other  means  would  not  be  adequate  because  the  basic  Regulation  does  not  foresee 
alternative options. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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OJ L …,….2005, p. …. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) 92/2002 imposing definitive anti-dumping duty and 
collecting definitively the provisional anti-dumping duty imposed on imports of urea 
originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the 
Ukraine 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 (the ‘basic 
Regulation’)2, and in particular Articles 8 and 9 thereof, 

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

Whereas: 

A. 

PREVIOUS PROCEDURE 

(1) 

(2) 

(3) 

On  21  October  2000,  by  means  of  a  notice  published  in  the  Official  Journal  of  the 
European Communities, the Commission announced the initiation of an anti-dumping 
proceeding3  in  respect  of  imports  of  urea  (‘the  product  concerned’)  originating  in 
Belarus, Bulgaria, Croatia, Egypt, Estonia, Libya, Lithuania, Poland, Romania and the 
Ukraine. 

This  proceeding  resulted  in  provisional  anti-dumping  duties  being  imposed  in  July 
2001  on  imports  of  urea  originating  in  Belarus,  Bulgaria,  Croatia,  Estonia,  Libya, 
Lithuania, Romania and the Ukraine and a termination of the proceeding  concerning 
imports  of  urea  originating  from  Egypt and  Poland  by  Commission  Regulation  (EC) 
No 1497/20014. 

In  the  same  Regulation,  the  Commission  accepted  an  undertaking  offered  by  the 
exporting  producer  in  Bulgaria,  Chimco  AD.  Subject  to  the  conditions  set  out  in 
Regulation  (EC)  1497/2001,  imports  of  the  product  concerned  into  the  Community 
from  this  company  were  exempted  from  the  said  provisional  anti-dumping  duties, 
pursuant to Article 3 (1) of the same Regulation. 

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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). 
OJ C 301, 21.10.2000, p. 2. 
OJ L 197, 21.7.2001, p. 4. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Definitive  duties  were  later  imposed  on  imports  of  urea  originating  in  Belarus, 
Bulgaria,  Croatia,  Estonia,  Libya,  Lithuania,  Romania  and  the  Ukraine  by  Council 
Regulation (EC) No 92/20025 (‘the definitive Regulation’). Subject to the conditions 
set out therein, this Regulation also granted goods produced and directly exported to 
the first independent customer in the Community by Chimco AD an exemption to the 
definitive  anti-dumping  duties  as  an  undertaking  had  already  been  accepted 
definitively  from  this  company  at  the  provisional  stage  of  the  proceeding.  As 
mentioned  in  recital  137  of  the  definitive  Regulation,  the  minimum  price  of  the 
undertaking was adapted due to a change in the injury elimination level. 

B. 

FAILURE TO COMPLY WITH THE UNDERTAKING 

The undertaking offered by Chimco AD obliges the company concerned, inter alia, to 
export the product concerned to the Community at or above certain minimum import 
price levels (‘MIPs’) specified therein. This minimum price level has to be respected 
on a quarterly weighted average. The company also undertakes not to circumvent the 
undertaking  by  making  compensatory  arrangements  with  any  other  party. 
Furthermore, Chimco AD is obliged to send to the European Commission a quarterly 
report of all its exports sales of the product concerned to the European Community.  

Chimco  AD  failed  to  submit  more  data  for  two  quarterly  reports  in  a  technically 
acceptable manner. Further, afterwards, Chimco AD no longer submitted any data in 
respect of the quarterly reports. It is therefore found, that the company did not respect 
its obligation to send to the European Commission quarterly reports of all its exports 
sales  of  the  product  concerned  to  the  European  Community  and  had  therefore 
breached the undertaking. 

Commission  Regulation  (EC)  No  …/20056  sets  out  in  more  detail  the  nature  of  the 
breaches found. 

In view of these breaches, acceptance of the undertaking offered by Chimco AD (Taric 
additional  code  A272)  has  been  withdrawn  by  Commission  Regulation  (EC)  No 
…/2005 and a definitive anti-dumping duty should be imposed forthwith on imports of 
the product concerned when produced and exported by Chimco AD. 

In  accordance  with  Article  8(9)  of  Regulation  (EC)  No  384/96,  the  rate  of  the  anti-
dumping  duty  must  be  determined  on  the  basis  of  the  facts  established  within  the 
context  of  the  investigation  which  led  to  the  undertaking.  As  the  investigation  in 
question  was  concluded  with  a  final  determination  as  to  dumping  and  injury,  by 
Regulation  (EC)  No  92/2002,  it  is  considered  appropriate  that  the  definitive  anti-
dumping rate is  set at the level  and in  the form imposed by that  Regulation,  namely 
21,43 Euro per ton before duty, to the net, free-at-Community frontier price. 

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OJ  L  17,  19.1.2002,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  1107/2002  (OJ  L  168, 
27.6.2002, p. 1). 
OJ L …, ….2005, p. …. 

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C. 

AMENDMENT OF REGULATION (EC) No 92/2002 

(10) 

In view of the above, Regulation (EC) No 92/2002 should be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EC) No 92/2002 is hereby amended as follows: 

Article 1 

1. 

In Article 1 (2), the row concerning Bulgaria shall be replaced by the following: 

Country of origin 

Produced by 

Definitive anti-
dumping duty (euro 
per ton) 

TARIC additional 
code 

Bulgaria 

All companies 

21,43 

- 

2. 

In Article 2 (1) the below line of the table concerning Bulgaria shall be deleted: 

Country 

Bulgaria 

Company 

TARIC additional code 

Chimco AD, Shose az 
Mezdra, 3037 Vratza 

A272 

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

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