2005/944/EC: Commission Decision of  19 December 2005  termination of the anti-absorption proceeding concerning imports of sodium cyclamate originating in the People’s Republic of China
Date: 2005-12-19
Institutions: European Commission
Subjects: China, anti-dumping legislation, food additive

L 342/96

EN

Official Journal of the European Union

24.12.2005

COMMISSION DECISION

of 19 December 2005

termination of the anti-absorption proceeding concerning imports of sodium cyclamate originating
in the People’s Republic of China

(2005/944/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

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 (‘the basic
Regulation’) (1), and in particular Articles 9 and 12 thereof,

Whereas:

A. PROCEDURE

1. Original measures

In March 2004, the Council
imposed a definitive anti-
dumping duty (‘the original measure’) on imports of
sodium cyclamate (‘product concerned’) originating in
the People's Republic of China (‘the PRC’) by Regulation
(EC) No 435/2004 (2). Individual duty rates ranging from
0 to EUR 0,11 per kilo were imposed on cooperating
exporting producers in the PRC. The rate applicable to
imports from all other companies is EUR 0,26 per kilo.

The Commission officially advised the producers/ex-
porters known to be concerned, the representatives of
the exporting country,
the
initiation of the reinvestigation. Interested parties were
given the opportunity to make their views known in
writing and to request a hearing within the time-limit
set out
initiation. The Commission
sent questionnaires to all parties known to be concerned.

importers and users of

in the notice of

(5)

(6)

Complete replies to the questionnaire were received from
one exporter and its two related producers in the PRC,
and from three importers in the Community. It should
be noted that exporting producers with 0 EUR duty rate
represented around 60 % of the total exports of sodium
cyclamate from the PRC during the investigation period
of this reinvestigation.

The Commission sought and verified all the information
deemed necessary for the purpose of this reinvestigation.
Verification visits were carried out at the premises of the
following companies:

Exporter and its related producers in the PRC

2. Request for reinvestigation

— Rainbow Rich Industrial Ltd., Hong Kong

On 14 March 2005 a request for a reinvestigation of the
original measure was lodged pursuant to Article 12 of
the basic Regulation. The request was submitted by
SA (‘the
Productos Aditivos
sole
Community producer of
sodium cyclamate, which
alleged and provided sufficient evidence showing that,
following the imposition of
the original measures,
export prices have decreased and there has been insuf-
ficient movement in resale prices or subsequent selling
prices in the Community.

applicant’),

the

3. The reinvestigation

On 27 April 2005 the Commission announced the
initiation of a reinvestigation, pursuant to Article 12 of
the basic Regulation, of
the anti-dumping measures
applicable to imports of sodium cyclamate originating
in the PRC by a notice published in the Official Journal
of the European Union (3).

(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 72, 11.3.2004, p. 1.
(3) OJ C 101, 27.4.2005, p. 26.

— Golden Time Enterprises (Shenzhen) Co. Ltd. and
Jintian Enterprises Nanjing Co. Ltd., Shenzhen, the
PRC

Importers

— Emilio Peña SA, Valencia, Spain

— Kraemer & Martin GmbH, Sankt Augustin, Germany.

(7)

Three other importers declared that they did not import
the product concerned during the investigation period.
One importer declared that it would not reply to the
it had only
questionnaire because
imported very
marginal quantities of
the product concerned during
the investigation period.

(1)

(2)

(3)

24.12.2005

EN

Official Journal of the European Union

L 342/97

(8)

(9)

(10)

(11)

(12)

(13)

the

level of

and the

resale prices

The investigation period of this reinvestigation (‘new IP’)
ran from 1 January 2004 to 31 December 2004. The
new IP was used to determine the current level of export
prices
in the
In establishing whether the export prices
Community.
and the resale prices or subsequent selling prices in the
Community had moved sufficiently,
the price levels
charged during the new IP were compared to those
charged during the investigation period used in the inves-
the original
tigation which led to the imposition of
measures (‘original
IP’), which had covered the period
from 1 October 2001 to 30 September 2002.

B. PRODUCT CONCERNED

The product concerned by the request and for which the
reinvestigation was initiated is the same as in the original
investigation, i.e. sodium cyclamate, currently classifiable
under CN code ex 2929 90 00.

Sodium cyclamate is a commodity product used as a
food additive, permitted in the European Community
and in many other countries as a sweetener for low-
caloric and dietetic food and beverages.
is widely
used as an additive by the food industry, as well as by
the producers of
low caloric and dietetic table-top
sweeteners. Small volumes are also used by the pharma-
ceutical industry.

It

C. FINDINGS

The purpose of this reinvestigation was first, to establish
whether or not export prices had decreased or whether
there had been insufficient movement in resale prices or
subsequent selling prices in the Community of sodium
cyclamate originating in the PRC since the imposition of
it were then found that
If
the original measures.
absorption had occurred,
the dumping margin would
have to be recalculated.

In accordance with Article 12 of the basic Regulation,
importers/users and exporters were provided with an
opportunity to submit evidence to justify a decrease in
export prices and lack of movement in resale prices in
the Community following the imposition of measures for
reasons other than absorption of the anti-dumping duty.

1. Decrease in export prices

Sales of the product concerned originating in the PRC
in the new IP, normally made directly to inde-
were,
in the EU.
and/or distributors
pendent
by
assessed
Movements
prices were
comparing,
the
conditions,
average price observed in the new IP with that
determined during the original IP.

importers
in
for

same delivery

export
the

(14)

The comparison of prices of co-operating companies
showed no decrease in the average export price of
sodium cyclamate originating in the PRC.

2. Movement of resale prices in the Community

(15)

and/or

average

the original

assessed
the

distributor was
resale price

The movement of prices in the Community at the level
by
of
importer
same
for
comparing the
including the conventional
delivery conditions (DDP),
duty plus the anti-dumping duty, of
IP
with that determined in the new IP, including both the
conventional duty and the anti-dumping duty. It should
be noted that
conventional duty rate
applicable to imports of sodium cyclamate originating
in the PRC decreased by 1,5 % between the two IPs.
The resale price was established on the basis of infor-
mation submitted by the importer in the Community
which accounted for the majority of the imports of the
co-operating exporter in the PRC.

the average

(16)

The comparison showed that the average resale price in
the Community, expressed in euro, of sodium cyclamate
originating in the PRC, had decreased by 10 %.

(17)

(18)

(19)

(20)

Exchange rate variation

It was noted that sodium cyclamate imported from the
PRC was invoiced in US dollars during both the original
and the new IP. Therefore any decrease in resale prices in
the Community of
should be
estimated taking into account the USD/EUR exchange
rate variation between the original IP and the new IP.

sodium cyclamate

This was verified and it was found that the US dollar had
depreciated against
the euro by 35 % between the
IP and the new IP. Therefore, when the
original
comparison was carried out by taking into account the
effect of the above-mentioned depreciation of the US
dollar against
the euro, no decrease in the level of
resale prices in the Community was observed between
the original IP and the new IP in the sense of Article
12(2) of the basic Regulation.

3. Non co-operating companies

in this reinvestigation, a group of
It was found that
exporting producers who are not
to anti-
dumping duty on their imports into the Community
accounted for around 60 % of current exports from the
PRC to the EU and the co-operating exporting producer
accounted for 35 % of the above-mentioned exports.

liable

It was concluded that the non co-operating companies
represented only a minor part, i.e. less than 5 %, of total
exports of the product concerned to the Community
during the new IP,
country-wide duty should
the
therefore be left unchanged.

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Official Journal of the European Union

24.12.2005

D. CONCLUSION

(21)

It was concluded that, in the sense of Article 12(2) of the
basic Regulation, absorption of the anti-dumping duties
had not occurred, since no decrease in the export price
was found and the decrease observed in the resale prices
in the Community of sodium cyclamate originating in
the PRC was less than it could have been expected
from the exchange rate fluctuations.

(22)

the

Therefore
absorption reinvestigation concerning
imports into the Community of the product concerned
originating in the PRC should be terminated,

HAS DECIDED AS FOLLOWS:

Article 1

The reinvestigation pursuant to Article 12 of Regulation (EC)
No 384/96 of the anti-dumping measures applicable to imports

of sodium cyclamate originating in the People's Republic of
China is hereby terminated.

Article 2

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

Done at Brussels, 19 December 2005.

For the Commission

Peter MANDELSON
Member of the Commission