Notice of initiation of an anti-dumping proceeding concerning imports of certain saddles originating in the People's Republic of China
Date: 2006-04-07
Institutions: European Commission
Subjects: China, anti-dumping legislation, import, originating product, two-wheeled vehicle, vehicle parts

C 84/4

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Official Journal of the European Union

7.4.2006

Notice of initiation of an anti-dumping proceeding concerning imports of certain saddles origin-
ating in the People's Republic of China

(2006/C 84/03)

The Commission has received a complaint pursuant to Article
5 of Council Regulation (EC) No 384/96 on protection against
dumped imports from countries not members of the European
Community (‘the basic Regulation’) (1), alleging that imports of
certain saddles, originating in the People's Republic of China
(‘the country concerned’), are being dumped and are thereby
causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 22 February 2006 by the Euro-
pean Saddle Manufacturers Association (‘the complainant’) on
behalf of producers representing a major proportion, in this
case more than 90 %, of the total Community production of
certain saddles.

2. Product

The product allegedly being dumped is saddles and essential
parts thereof (bases, cushions or covers), of bicycles and other
cycles (including delivery tricycles), whether or not motorized
and with or without sidecars, of fitness machines and of home
trainers, originating in the People's Republic of China (‘the
product concerned’), normally declared within CN codes
8714 95 00, ex 8714 99 90 and ex 9506 91 10. These CN
codes are only given for information.

3. Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for the People's
Republic of China on the basis of a constructed normal value
in a market economy country, which is mentioned in point
5.1(d).The allegation of dumping is based on a comparison of
normal value, thus calculated, with the export price of the
product concerned when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China have
increased overall
in absolute terms and in terms of market
share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the market share held, the quantities sold
and the level of prices charged by the Community industry,

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

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

resulting in substantial adverse effects on the overall perfor-
mance, the financial situation and the employment situation of
the Community industry.

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 5 of the basic
Regulation.

5.1. Procedure for the determination of dumping and injury

investigation will

The
the product
concerned originating in the People's Republic of China is
being dumped and whether this dumping has caused injury.

determine whether

(a) Sampling

In view of the apparent large number of parties involved in
this proceeding,
the Commission may decide to apply
sampling in accordance with Article 17 of the basic Regu-
lation.

(i) S a mp li n g

for
P e op l e ' s R e p u b l i c of Ch i na

e x p or t e r s/ p r odu c e r s

i n

t h e

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves
known by contacting the Commission and providing
the following information on their company or compa-
nies within the time limit set in point 6(b)(i) and in the
format indicated in point 7:

— name, address, e-mail address, telephone and fax

numbers and contact person;

— the turnover in local currency and the volume in
units of the product concerned manufactured by the
company and sold for export to the Community in
2005, and/or the same information for product
concerned purchased and exported;

— the turnover in local currency and the sales volume
the product concerned sold on the

in units of
domestic market in 2005;

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C 84/5

— whether the company intends to claim an indivi-
(individual margins can only be

dual margin (2)
claimed by the exporting producer);

— the total turnover in euro of the company in 2005,

— the total number of employees,

— the precise activities of the company with regard to
the product

sale of

the production and/or
concerned;

— the names, relationship and precise activities of all
involved in the production
the

related companies (3)
and/or selling (export and/or domestic) of
product concerned; and

— any other relevant information that would assist
the Commission in the selection of the sample.

By providing the above information,
the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this will
imply replying to a questionnaire and accepting an on-
the-spot investigation of its response. If the company
indicates that it does not agree to its possible inclusion
in the sample, it will be deemed to not have co-oper-
ated in the investigation. The consequences of non-
cooperation are set out in point 8 below.

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will, in addition, contact the authori-
ties of the exporting country and any known associa-
tions of exporters/producers.

— the precise activities of the company with regard to

the product concerned,

— the volume in units and value in euro of imports
into and resales made in the Community market in
2005 of the imported product concerned origin-
ating in the People's Republic of China,

— the names and the precise activities of all related
involved in the production and/or

companies (4)
selling of the product concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

by providing the above information,
the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this will
imply replying to a questionnaire and accepting an on-
the-spot investigation of its response. If the company
indicates that it does not agree to its possible inclusion
in the sample, it will be deemed to not have co-oper-
ated in the investigation. The consequences of non-
cooperation are set out in point 8 below.

In order to obtain the information it deems necessary
for the selection of
the
Commission will, in addition, contact any known asso-
ciations of importers.

the sample of

importers,

(ii) Sa mp li ng for i mp or te r s

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in point 6(b)(i) and in the format indicated in point
7:

— name, address, e-mail address, telephone and fax

numbers and contact person,

(2) Individual margins may be claimed pursuant to Article 17(3) of the
basic Regulation for companies not included in the sample, article
9(5) of the basic Regulation concerning individual treatment in
cases involving non-market economy countries/economies in transi-
tion, and Article 2(7)(b) of the basic Regulation for companies
claiming market economy status. Note that claims for individual
treatment necessitate an application pursuant to Article 9(5) of the
basic Regulation and that claims regarding market economy status
necessitate an application pursuant to Article 2(7)(b) of the basic
Regulation.

(3) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying
down provisions for the implementation of Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code (OJ L
253, 11.10.1993, p. 1).

(iii) S a mp li ng for Commu ni ty p r odu c e r s

In view of the large number of Community producers
supporting the complaint, the Commission intends to
investigate injury to the Community industry by
applying sampling.

In order to enable the Commission to select a sample,
all Community producers are hereby requested to
provide the following information on their company
or companies within the time limit set in point 6(b)(i)
and in the format indicated in point 7:

— name, address, e-mail address, telephone and fax

numbers and contact person,

— the total turnover in EUR of the company in 2005,

(4) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying
down provisions for the implementation of Council Regulation
(EEC) No 2913/1992 establishing the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

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— the precise activities of the company with regard to

the production of the product concerned,

— the value in euro of sales of the product concerned

made in the Community market in 2005,

— the volume in units of

sales of

concerned made in the Community market
2005,

the product
in

— the volume in units of

the production of

the

product concerned in 2005,

— the names and the precise activities of all related
involved in the production and/or

companies (5)
selling of the product concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

by providing the above information,
the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this will
imply replying to a questionnaire and accepting an on-
the-spot investigation of its response. If the company
indicates that it does not agree to its possible inclusion
in the sample, it will be deemed to not have co-oper-
ated in the investigation. The consequences of non-
cooperation are set out in point 8 below.

tion of exporters/producers, to the sampled importers, to
any association of importers named in the complaint and
to the authorities of the exporting country concerned.

Exporters/producers
in the People's Republic of China
claiming an individual margin, with a view to the applica-
tion of Articles 17(3) and 9(6) of the basic Regulation,
must submit a completed questionnaire within the time
limit set in point 6(a)(ii) of this notice. They therefore have
to request a questionnaire within the time limit set in point
6(a)(i). However, such parties should be aware that
if
sampling is applied to exporters/producers, the Commis-
sion may nonetheless decide not to calculate an individual
margin for them, if the number of exporters/producers is
so large that
individual examination would be unduly
burdensome and would prevent the timely completion of
the investigation.

(c) Collection of information and holding of hearings

submit

All interested parties are hereby invited to make their views
known,
than questionnaire
replies and to provide supporting evidence. This informa-
tion and supporting evidence has to reach the Commission
within the time limit set in point 6(a)(ii).

information other

(iv) F i na l se le c ti on of th e sa mp le s

All interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in point 6(b)(ii).

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii).

samples

The Commission intends to make the final selection of
the
consulted the parties
concerned that have expressed their willingness to be
included in the sample.

after having

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6(b)(iii)
and must cooperate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 17(4) and 18 of the basic Regulation, on the
facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in point 8.

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose Brazil as an appropriate market
economy country for the purpose of establishing normal
value in respect of the People's Republic of China. Inter-
ested parties are hereby invited to comment on the appro-
priateness of this choice within the specific time limit set in
point 6(c).

(e) Market economy status

(b) Questionnaires

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to the sampled Community industry and to any association
of producers in the Community, to the sampled exporters/
producers in the People's Republic of China, to any associa-

(5) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying
down provisions for the implementation of Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code (OJ L
253, 11.10.1993, p. 1).

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
operate under market economy conditions,
i.e. that they
meet the criteria laid down in Article 2(7)(c) of the basic
Regulation, normal value will be determined in accordance
with Article 2(7)(b) of
the basic Regulation. Exporters/
producers intending to submit duly substantiated claims
must do so within the specific time limit set in point 6(d).
The Commission will send claim forms to all exporters/
producers in the People's Republic of China named in the
complaint and to any association of exporters/producers
named in the complaint, as well as to the authorities of the
People's Republic of China.

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5.2. Procedure for assessment of Community interest

(b) Specific time limit in respect of sampling

and

representative

In accordance with Article 21 of the basic Regulation and in
the event that the allegations of dumping and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-dumping measures would not be
against the Community interest. For this reason the Community
industry, importers, their representative associations, represen-
tative users
consumer organisations,
provided that they prove that there is an objective link between
their activity and the product concerned, may, within the
general time limits set in point 6(a)(ii), make themselves known
and provide the Commission with information. The parties
which have acted in conformity with the precedent sentence
may request a hearing setting the particular reasons why they
should be heard within the time limit set in point 6(a)(iii). It
should be noted that any information submitted pursuant to
Article 21 will only be taken into account if supported by
factual evidence at the time of submission.

6. Time limits

(a) General time limits

(i) F or p a r ti e s

t o r e q u e st

a q u e st i on n a i r e or

ot h e r c la i m for ms

All interested parties should request a questionnaire or
other claim forms as soon as possible, but not later
than 10 days after the publication of this notice in the
Official Journal of the European Union.

(ii) F or p a r ti e s

t o ma ke th e mse lve s know n,

t o
submi t q u e sti onn a i r e r e p li e s and a ny oth e r
i nf or ma ti on

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies or
any other information within 40 days of the date of
publication of this notice in the Official Journal of the
European Union, unless otherwise specified. Attention is
drawn to the fact that the exercise of most procedural
rights set out in the basic Regulation depends on the
party's making itself known within the aforementioned
period.

Companies selected in a sample must submit question-
naire replies within the time limits specified in point
6(b)(iii).

(iii) H e a r i ng s

All interested parties may also apply to be heard by
the Commission within the same 40 day time limit.

(i) The information specified in point 5.1(a)(i), 5.1(a)(ii)
and 5.1(a)(iii) should reach the Commission within 15
days of the date of publication of this notice in the
Official Journal of the European Union, given that the
Commission intends to consult parties concerned that
have expressed their willingness to be included in the
sample on its final selection within a period of 21 days
of the publication of this notice in the Official Journal of
the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iv) must reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

(iii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date of
the notification of their inclusion in the sample.

(c) Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the
appropriateness of Brazil which, as mentioned in point
5.1(d), is envisaged as a market economy country for the
purpose of establishing normal value in respect of
the
People's Republic of China. These comments must reach
the Commission within 10 days of the date of publication
of this notice in the Official Journal of the European Union.

(d) Specific time limit for submission of claims for market economy

status and/or for individual treatment

Duly substantiated claims for market economy status (as
mentioned in point 5.1(e)) and/or for individual treatment
pursuant to Article 9(5) of the basic Regulation, must reach
the Commission within 15 days of the date of publication
of this notice in the Official Journal of the European Union.

7. Written submissions, questionnaire replies and cor-

respondence

All submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by inter-
ested parties on a confidential basis shall be labelled as
‘Limited (6)’ and, in accordance with Article 19(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘For inspection by interested
parties’.

shall be

(6) This means that

the document

is for internal use only.

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of the European Parliament and of the Council regarding public
access to European Parliament, Council and Commission documents
(OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant
to Article 19 of the basic Regulation and Article 6 of the WTO
Agreement on Implementation of Article VI of the GATT 1994
(Anti-dumping Agreement).

It

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Commission address for correspondence:
European Commission
Directorate General for Trade
Directorate B
Office: J-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05.

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, affirmative or negative, may be made in accordance
with Article 18 of the basic Regulation, on the basis of the
facts available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 18 of the basic Regulation,
the result may be less
favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 6(9)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union. According to Article 7(1) of the basic Regulation, provi-
sional measures may be imposed no later than 9 months from
the publication of this notice in the Official Journal of the Euro-
pean Union.