Commission Regulation (EC) No 465/2006 of  21 March 2006  terminating the investigation concerning the possible circumvention of anti-dumping measures imposed by Council Regulation (EC) No 408/2002 on imports of certain zinc oxides originating in the People's Republic of China by imports of certain zinc oxides consigned from Kazakhstan, whether declared as originating in Kazakhstan or not, and terminating the registration of such imports imposed by Regulation (EC) No 1289/2005
Date: 2006-03-21
Institutions: European Commission
Subjects: China, Kazakhstan, anti-dumping duty, anti-dumping legislation, originating product, oxide, zinc

L 83/6

EN

Official Journal of the European Union

22.3.2006

COMMISSION REGULATION (EC) No 465/2006

of 21 March 2006

terminating the investigation concerning the possible circumvention of anti-dumping measures
imposed by Council Regulation (EC) No 408/2002 on imports of certain zinc oxides originating
in the People's Republic of China by imports of certain zinc oxides consigned from Kazakhstan,
whether declared as originating in Kazakhstan or not, and terminating the registration of such
imports imposed by Regulation (EC) No 1289/2005

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 (1)
(the
basic Regulation), and in particular Article 13 thereof,

After having consulted the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. PROCEDURE

1. Existing measures and former investigations

the Council

By Regulation (EC) No 408/2002 (2) (the original Regu-
lation),
imposed definitive anti-dumping
duties ranging from 6,9 % to 28 % on imports of zinc
oxide with a purity of not less than 93 % zinc oxide (zinc
oxides) originating in the People's Republic of China (the
PRC).

By Regulation (EC) No 1623/2003 (3) (the anti-circum-
vention Regulation),
the Council extended the anti-
dumping duty of 28 % imposed on imports of zinc
oxides originating in the PRC to imports of zinc oxides
consigned from Vietnam, whether declared as originating
in Vietnam or not, and to zinc oxides presented mixed
with silica originating in the PRC.

2. Request

the

to Article 13(3) of

On 27 June 2005, the Commission received a request
the basic Regulation to
pursuant
investigate
anti-
dumping measures imposed on imports of zinc oxides
originating in the PRC. The request was submitted by
Eurometaux on behalf of producers representing more
than 45 % of the Community production of zinc oxides.

alleged circumvention of

the

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(2) OJ L 62, 5.3.2002, p. 7.
(3) OJ L 232, 18.9.2003, p. 1.

The request contained prima facie evidence showing that
there had been a change in the pattern of trade following
the imposition of the anti-dumping measures on imports
of zinc oxides originating in the PRC, as shown by a
the same product
significant
from Kazakhstan while imports
from the PRC had
decreased substantially during the same period.

increase in imports of

This change in the pattern of trade was alleged to stem
from the transhipment of zinc oxides originating in the
PRC via Kazakhstan. It was further alleged that there was
insufficient due cause or economic justification for these
changes other than the existence of the anti-dumping
duties on zinc oxides originating in the PRC.

Finally, the applicant alleged that the remedial effects of
the existing anti-dumping duties on zinc oxides origi-
nating in the PRC were being undermined both in
terms of quantities and prices and that dumping was
taking place in relation to the normal values previously
established for zinc oxides originating in the PRC.

3. Initiation

The Commission initiated an investigation by Regulation
(EC) No 1289/2005 (4) (the initiating Regulation) into the
alleged circumvention and, pursuant
to Articles 13(3)
and 14(5) of the basic Regulation, directed the customs
authorities to register imports of zinc oxides consigned
from Kazakhstan, whether declared as originating in
Kazakhstan or not, falling within CN code 2817 00 00
(Taric code 2817 00 00 13), as from 6 August 2005.

4. Investigation

The Commission advised the authorities of the PRC and
Kazakhstan of the initiation of the investigation. Ques-
tionnaires were sent to the producers/exporters in the
PRC and Kazakhstan as well as to importers in the
Community named in the request or known to the
Interested
Commission from the original
parties were given the opportunity to make their views
known in writing and to request a hearing within the
time limit set in the initiating Regulation.

investigation.

(5)

(6)

(7)

(8)

(4) OJ L 204, 5.8.2005, p. 7.

22.3.2006

EN

Official Journal of the European Union

L 83/7

(9)

One producer/exporter in the PRC and one producer/ex-
porter in Kazakhstan submitted a complete reply to the
questionnaire. Complete replies to the questionnaire were
also
in the
Community. The Commission carried out a verification
visit at the premises of the following company:

importers/traders

submitted

two

by

(15)

It is therefore concluded that the zinc oxides exported to
the Community from the PRC and those consigned from
Kazakhstan have the same basic physical and chemical
characteristics and have the same uses. They are therefore
to be considered as like products within the meaning of
Article 1(4) of the basic Regulation.

Kazakh producer/exporter

— JSC Kazzinc, Ust-Kamenogorsk, Kazakhstan.

3. Change in the pattern of trade

(16) As stated in recital 5 above, the change in the pattern of
the trade was alleged to stem from transhipment of zinc
oxides via Kazakhstan.

5. Investigation period

(10)

The investigation period covered the period from 1 July
2004 to 30 June 2005 (the IP). Data was collected from
2001 up to the end of the IP to investigate the change in
the pattern of trade.

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(a) PRC

(11) One producer/exporter of zinc oxides in the PRC coop-
erated in the investigation by submitting a questionnaire
reply. It was found that this company did not export zinc
oxides to Kazakhstan during the IP.

(a) Zinc oxides consigned from Kazakhstan

(17) According to Eurostat data, imports of zinc oxides from
Kazakhstan increased from 0 tonne in 2001 to 2 700
tonnes in 2002. In 2003, these imports increased further
to 5 000 tonnes and at the end of the IP they had
increased up to 5 640 tonnes. The imports of zinc
oxides from Kazakhstan commenced in fact in 2002,
thus at the same time as the imposition of the definitive
anti-dumping duty on zinc oxides originating in the PRC.
Furthermore, the additional substantial
increase in the
years 2003 to the end of the IP coincided with the
extension of
the anti-dumping duties to imports of
zinc oxides consigned from Vietnam.

(b) Kazakhstan

(18) As explained above in recital 12, the data submitted by
the cooperating company JSC Kazzinc shows that they
were the sole exporter of zinc oxides from Kazakhstan
during the IP.

(12) A Kazakh producer of zinc oxides, JSC Kazzinc, coop-
erated in the investigation. The information submitted by
the company on its exports sales to the Community
could be reconciled with the imports registered under
CN code 2817 00 00 from Kazakhstan during the IP,
JSC
as
Kazzinc was the sole exporter to the Community of
zinc oxides from Kazakhstan during the IP.

reported by Eurostat,

to show that

so as

2. Product concerned and like product

(13)

The product concerned by the possible circumvention is,
as defined in the original
investigation, zinc oxide
(chemical formula: ZnO) with a purity of not less than
93 % zinc oxide originating in the PRC, currently classi-
fiable within CN code 2817 00 00.

(14)

The investigation has shown that the product concerned
is imported into the Community with a purity of not less
that 93 % zinc oxide. The zinc oxides originating in
Kazakhstan have a purity of more than 93 % zinc oxide.

(19)

(20)

(b) Zinc oxides imported from the PRC

Imports into the Community of zinc oxides from the
PRC decreased substantially,
from 37 900 tonnes in
2001 to 24 700 tonnes in 2002. During the IP the
imports amounted to 18 500 tonnes. This shows that a
strong decrease of imports from the PRC has occurred
after the initiation of the original anti-dumping investi-
gation and the imposition of definitive measures.

from the

PRC and Kazakhstan to

From the figures above, it can be concluded that there
has been a clear change in the pattern of trade involving
the
exports
Community, which coincided with the entry into force
of definitive anti-dumping measures on the imports of
the product concerned originating in the PRC in March
2002 and with the extension of such duties to imports of
zinc oxides consigned from Vietnam in the year 2003.

L 83/8

EN

Official Journal of the European Union

22.3.2006

4. Insufficient due cause or economic justification

C. TERMINATION

(21)

JSC Kazzinc started to produce and export zinc oxides
before the year 2000, although no exports of
this
product were destined to the Community. Exports of
zinc oxides to the Community began in the year 2002,
at the same time as the imposition of the definitive anti-
dumping duties on zinc oxides originating in the PRC. As
stated above in recital 12, the information submitted by
the company on its exports sales to the Community in
the analysis period and during the IP could be reconciled
with the imports registered, as shown by Eurostat. It was
found that the exports to the Community were destined
to one single importer located in Spain.

(25)

(26)

current

anti-circumvention

In view of the above findings, it appears appropriate that
the
be
terminated. The registration of imports of zinc oxides
consigned from Kazakhstan introduced by the initiating
Regulation should therefore be discontinued, and that
Regulation should be repealed.

investigation

Interested parties were informed of the essential facts and
considerations on the basis of which the Commission
intended to terminate the investigation and were given
the opportunity to comment. The comments received
were not of a nature to change the above conclusions,

(22) Moreover, it was found that neither the zinc oxides sold
by JSC Kazzinc nor any raw material for the manufac-
turing of this product was purchased from the PRC. In
fact, all the materials for the production of the zinc
JSC Kazzinc’s own
oxides come from the output of
it was concluded that
production facilities. Therefore,
the
considered as a genuine
company has
producer of zinc oxides.

to be

(23)

(24)

The investigation also showed that, at least from the year
2002 onwards, JSC Kazzinc was indeed able to produce
the quantity of zinc oxides exported from Kazakhstan to
the Community on its own. In these circumstances, it is
considered that transhipment of zinc oxides originating
in the PRC via Kazakhstan has not taken place. Moreover,
according to data collected from the Kazakh government,
the imports of zinc oxides entering Kazakhstan from the
PRC, which started in 2003 amounted to 1,5 tonnes and
increased to 42 tonnes in the year 2004.

it

is concluded that

Based on these findings,
the
company, and thus Kazakhstan as a whole, has shown
that there were reasonable economic grounds, other than
the
imposition of definitive anti-dumping duty on
imports of zinc oxides originating in the PRC, for the
change in the pattern of trade referred to under recitals
17 to 20 above.

HAS ADOPTED THIS REGULATION:

Article 1

the possible

circumvention of

The investigation initiated by Regulation (EC) No 1289/2005
concerning
anti-dumping
measures
imposed by Regulation (EC) No 408/2002 on
imports of certain zinc oxides originating in the People's
Republic of China by
certain zinc oxides
consigned from Kazakhstan, whether declared as originating
in Kazakhstan or not, and making such imports subject to
registration is hereby terminated.

imports of

Article 2

Customs authorities are hereby directed to discontinue the regis-
tration of imports established in accordance with Article 2 of
Regulation (EC) No 1289/2005.

Article 3

Regulation (EC) No 1289/2005 is hereby repealed.

Article 4

This Regulation shall enter into force on the day following 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, 21 March 2006.

For the Commission

Peter MANDELSON
Member of the Commission