Council Regulation (EC) No 655/2006 of  27 April 2006  extending the definitive anti-dumping duty imposed by Regulation (EC) No 964/2003 on imports of tube or pipe fittings, of iron or steel, originating in the People's Republic of China to imports of tube or pipe fittings, of iron or steel, consigned from the Philippines, whether declared as originating in the Philippines or not
Date: 2006-04-27
Institutions: Council of the European Union
Subjects: Philippines, anti-dumping duty, import, metal product, originating product, piping

29.4.2006

EN

Official Journal of the European Union

L 116/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 655/2006

of 27 April 2006

extending the definitive anti-dumping duty imposed by Regulation (EC) No 964/2003 on imports of
tube or pipe fittings, of iron or steel, originating in the People's Republic of China to imports of
iron or steel, consigned from the Philippines, whether declared as
tube or pipe fittings, of

originating in the Philippines or not

THE COUNCIL OF THE EUROPEAN UNION,

same

the
tube or pipe
Indonesia (3) and Sri Lanka (4) respectively.

fittings

consigned from

Having regard to the Treaty
Community,

establishing the European

2. Request

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,

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

Whereas:

A. PROCEDURE

1. Existing measures

(1)

(other

tube or pipe fittings

Following an expiry review, by Regulation (EC) No
964/2003 (2)
the Council
(the original Regulation),
imposed definitive anti-dumping duties of 58,6 % on
than cast
imports of
flanges and threaded fittings) of iron or steel
fittings,
(not
including stainless steel) with a greatest external
diameter not exceeding 609,6 mm, of a kind used for
butt-welding or other purposes (tube or pipe fittings or
the product concerned), originating,
in the
People's Republic of China (the PRC) and extended the
measures to imports of the same fittings consigned from
Taiwan, with the exception of those produced by three
specific Taiwanese companies.

inter alia,

(2)

In December 2004, by Regulations (EC) No 2052/2004
and No 2053/2004, the Council extended the above-
mentioned definitive anti-dumping duties to imports of

(3)

(4)

(5)

(6)

the

the

to Article 13(3) of

alleged circumvention of

On 23 June 2005, the Commission received a request
the basic Regulation to
pursuant
investigate
anti-
dumping measures imposed on imports of tube or pipe
fittings originating in the PRC by means of the trans-
hipment and incorrect declaration of origin via the
Philippines. The request was submitted by the Defence
Committee of the Steel Butt-Welding Fittings Industry of
four Community
the European Union on behalf of
the
producers,
Community production of certain tube and pipe fittings.

representing a major proportion of

The request alleged and submitted sufficient prima facie
evidence that there had been a change in the pattern of
trade following the imposition of
the anti-dumping
measures on imports of tube or pipe fittings originating
in the PRC, as shown by a significant increase in imports
of the same product from the Philippines.

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

Finally, the applicant alleged and submitted prima facie
evidence showing that the remedial effects of the existing
anti-dumping duties on tube or pipe fittings originating
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 estab-
lished for the tube or pipe fittings originating in the PRC.

(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 139, 6.6.2003, p. 1.

(3) OJ L 355, 1.12.2004, p. 4.
(4) OJ L 355, 1.12.2004, p. 9.

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Official Journal of the European Union

29.4.2006

3. Initiation

5. Investigation period

(7)

(8)

consigned

By Regulation (EC) No 1288/2005 (1)
(the initiating
the Commission initiated an investigation
Regulation),
into the alleged circumvention of
the anti-dumping
measures imposed on imports of tube or pipe fittings
tube or pipe
originating in the PRC by imports of
fittings
Philippines, whether
declared as originating in the Philippines or not and,
pursuant to Articles 13(3) and 14(5) of the basic Regu-
lation, directed the
to register
imports into the Community of tube or pipe fittings
consigned from the Philippines, whether declared as
originating in the Philippines or not, as from 6 August
2005.

from the

authorities

customs

4. Investigation

The Commission officially advised the authorities of the
PRC and of the Philippines, the producers/exporters and
the importers in the Community known to be concerned
as well as the Community industry of the initiation of
the investigation. Questionnaires were sent to producers/
exporters in the PRC and in the Philippines as well as to
importers in the Community named in the request or
known to the Commission from the
investigation
which lead to the imposition of the existing measures
on imports of tube or pipe fittings originating in the
PRC (the original
investigation). Interested 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. All parties were informed
that non-cooperation might lead to the application of
Article 18 of
the basic Regulation and to findings
being made on the basis of facts available.

(9)

No questionnaire replies were received from exporters/
producers in the Philippines, even though the authorities
of
the Philippines had contacted several companies
possibly involved in producing tube or pipe fittings.
Moreover, no questionnaire replies were received from
exporters/producers in the PRC.

(10)

Two importers
submitted replies to the questionnaire.

in the Community cooperated and

(11)

Verification visits took place at
following companies:

the premises of

the

Importers

— Valvorobica Industriale SpA, Italy,

— General Commercial & Industrial SA, Greece.

(1) OJ L 204, 5.8.2005, p. 3.

(12)

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

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(13) As mentioned in recital 9, no producer/exporter in the
PRC or the Philippines cooperated in the investigation.
Three Philippine companies came forward and stated that
they did not produce nor export the tube or pipe fittings
as defined in the original Regulation, but only stainless
steel
fittings, a product which is not covered by the
current investigation. Accordingly, findings in respect of
tube or pipe fittings consigned from the Philippines to
the Community had partially to be based on facts
available in accordance with Article 18 of the basic Regu-
lation.

2. Product concerned and like product

(14)

investigation,

The product concerned by the alleged circumvention is,
as defined in the original
tube or pipe
fittings,
fittings (other than cast
flanges and threaded
fittings) of iron or steel
(not including stainless steel),
with a greatest external diameter not exceeding 609,6
a kind used for butt-welding or other
mm, of
classifiable within CN codes
purposes,
currently
7307 93 11 95),
ex 7307 93 11
7307 93 19 95),
ex 7307 93 19
and
ex 7307 99 30
ex 7307 99 90 (TARIC code 7307 99 90 95), originating
in the PRC.

7307 99 30 95)

(TARIC
(TARIC

(TARIC code

code
code

(15) On the basis of the information available and the data
supplied by the Philippine authorities and considering the
change in the pattern of
trade as described in the
following section, it must be inferred, in the absence of
the tube or pipe fittings
any contrary evidence,
exported to the Community from the PRC and those
consigned from the Philippines to the Community 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.

that

3. Change in the pattern of trade

(16) Due to the non-cooperation of any Philippine company,
the volume and the value of exports of the like product
from the Philippines to the Community had to be estab-
lished on the basis of the facts available pursuant to
Article 18 of the basic Regulation. Eurostat data were
the most appropriate information available and were
therefore used to establish the export quantities and
prices from the Philippines to the Community.

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Official Journal of the European Union

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Imports into the Community

2001

2002

2003

2004

IP

(in tonnes)

Philippines

0

3

700

2 445

2 941

The PRC

1 324

772

677

1 153

1 411

started after the conclusion of the original investigation
and became apparent after the extension of the measures
to imports of the like product from Indonesia and Sri
Lanka. The pattern consisted of a sharp increase of
imports of tube or pipe fittings from the Philippines
into the Community, especially in 2004 and the IP, coin-
ciding with a stop of imports from the two countries to
which the original measures were extended.

0

0

983

1 294

332

302

0

39

0

0

17 422

15 111

16 085

16 050

18 900

(21)

Indonesia

Sri Lanka

Total
EU imports

Source: Eurostat.

It is clear from the above that due to the coincidence in
time the Chinese exports transhipped via Indonesia and
Sri Lanka have been redirected at least partly via the
Philippines when the original anti-dumping measures
were extended to imports
from Indonesia and Sri
Lanka. This was the case in particular during the year
2004 and during the IP.

the

(17) As this table shows, imports of tube or pipe fittings from
the Philippines into the Community increased from 0
tonnes in 2001 to almost 3 000 tonnes during the IP.
The imports from the Philippines commenced in 2002,
at a time when the original investigation was ongoing. In
2003, however
from the Philippines
imports
increased significantly to 700 tonnes. In 2004, imports
from the Philippines to the Community more than
It
tripled to 2 445 tonnes.
should be noted that
the original anti-dumping
following the extension of
measures
the like product consigned
from Indonesia and Sri Lanka in December 2004,
imports from these countries came to a complete stop.
This complete halt of imports from Indonesia and Sri
Lanka to the Community in 2004 coincided with the
most substantial increase of imports from the Philippines.

to imports of

(18) At

the same time, exports

from the PRC to the

Philippines remained at a low but stable level.

Exports from the PRC to the Philippines

2001

2002

2003

2004

IP

(in tonnes)

Philippines

466

604

402

643

694

Source: Chinese export statistics.

(19)

It must be noted, however, that the data used to establish
the change in the pattern of trade, with special regard to
those relating to exports from the PRC to the Philippines,
should be seen in the light of the likelihood of false
declarations of origin (see
and might
therefore not give a complete picture of the situation.

recital 22)

(20)

From the figures shown above, it is concluded that there
has been a clear change in the pattern of trade which

4. Insufficient due cause or economic justification

(22) As already mentioned in recital 9, no Philippine produ-
cer/exporter cooperated in the investigation. Indeed, no
evidence has been found during the investigation that
any such producer would actually exist. Moreover,
evidence collected during the investigation shows that
tubes or pipe fittings have been in some cases declared
as produced by Philippine companies that have submitted
never having been involved in the manufacturing of the
like product. This is corroborated by the information
contained in the request for the initiation of anti-circum-
vention investigation, e.g. offers to potential
importers
containing the proposal of falsifying the documents of
origin.

(23)

From the information referred to in recitals 17 and 20, it
can be concluded that exports of tubes or pipes fittings
produced in the PRC and channelled to the Community
through Indonesia and Sri Lanka during the years 2002
until 2004 have been redirected to a large extent via the
Philippines, starting in the year 2003 and continuing
until the end of IP.

(24) Moreover, although the volume of

imports of

the
product concerned from the PRC to the Philippines did
by far not reach the increase of imports consigned from
the Philippines to the Community (see recital 18), the
steep increase of exports from the Philippines to the
Community also has to be seen in the light of
the
evidence found concerning false declarations or falsifi-
cation of certificates of origin (see recital 22), the lack
of genuine Philippine producers of tube or pipe fittings
and the decrease of exports from Sri Lanka and Indonesia
to the Community. It is the totality of these elements
which explain the absence of an economic justification
for the change in the pattern of trade observed.

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Official Journal of the European Union

29.4.2006

(25)

(26)

In the absence of cooperation by any exporting producer
in the Philippines and the PRC and of any contrary
evidence, it is therefore concluded that, given the coin-
cidence in time with the investigations which lead to the
the original measures to imports from
extension of
Indonesia and Sri Lanka, the change in the pattern of
trade stemmed from the existence of the anti-dumping
duty rather than from any other sufficient due cause or
economic justification within the meaning of Article
13(1), third sentence of the basic Regulation.

5. Undermining of the remedial effects of the duty
in terms of the prices and/or the quantities of the
like product

tube or pipe fittings occurred.

imports declared as originating

Based on the trade flow analysis made in recital 17, a
clear quantitative change in the pattern of Community
imports of
Imports
declared as originating in the Philippines were negligible
on the Community market until June 2003. After the
said date
in the
Philippines suddenly emerged and increased rapidly to
2 941 tonnes during the IP. This volume represents
the Community consumption calculated on
3 % of
submitted by the applicants and
production figures
is therefore clear
imports based on Eurostat data.
that the marked change in trade flows undermined the
remedial effects of the anti-dumping measures in terms
of the quantities imported into the Community market.

It

(27) With regard to prices of the products consigned from the
Philippines and in the absence of cooperation and of any
contrary evidence, Eurostat data show that average export
prices of imports from the Philippines during the IP were
lower than the average export prices established for the
PRC in the original investigation. It has been established
that prices of imports from the Philippines are around
one third lower than those of imports originating in the
PRC both during 2004 and the IP. Moreover,
it was
found that the average export prices of the Philippine
exports to the Community were below the injury elim-
ination level of Community prices as established in the
original investigation. Hence, the remedial effects of the
anti-dumping duty imposed are undermined in terms of
prices. Detailed information can be found in the table
below:

Philippines

PRC

Difference

2004

0,97

1,57

– 38 %

(EUR/kg)

IP

1,07

1,50

– 29 %

(28) On the basis of the above, it is concluded that the change
in trade flows, together with the substantial increase in

imports made at very low prices from the Philippines
have undermined the remedial effects of
the anti-
dumping measures in terms of both quantities and
prices of the like product.

6. Evidence of dumping in relation to the normal
values previously established for the like product

In order to determine whether evidence of dumping
could be found with respect to the product concerned
exported to the Community from the Philippines during
the IP, export prices established on the basis of Eurostat
data were used pursuant to Article 18 of the basic Regu-
lation.

In accordance with Article 13(1) of the basic Regulation,
these export prices were compared with the normal value
previously established for the like product. In the original
investigation, Thailand was found to be an appropriate
market economy analogue country for the PRC for the
purpose of establishing normal value.

For the purpose of a fair comparison between the normal
value and the export price, due allowance, in the form of
adjustments, was made for differences which affect prices
and price comparability. These adjustments were made in
accordance with Article 2(10) of the basic Regulation in
respect of transport costs, on the basis of the information
contained in the request.

In accordance with Article 2(11) of the basic Regulation,
the comparison of a weighted average normal value as
established in the original investigation and the weighted
average of export prices during this investigation’s IP,
expressed as a percentage of
the
Community frontier, duty unpaid, showed dumping for
the imports of tube or pipe fittings consigned from the
Philippines. The dumping margin found, expressed as a
percentage of the cif price at the Community frontier,
duty unpaid, was in excess of 60 %.

the cif price at

C. MEASURES

In view of the above finding of circumvention within the
meaning of Article 13(1), third sentence of the basic
Regulation and in accordance with Article 13(1), first
the existing anti-
sentence of
dumping measures
product
of
concerned originating in the PRC should be extended
to imports of
the same product consigned from the
Philippines, whether declared as originating in the
Philippines or not.

the basic Regulation,
imports
on

the

(29)

(30)

(31)

(32)

(33)

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Official Journal of the European Union

L 116/5

(34)

The duty extended should be the one established in
Article 1(2) of the original Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

(35)

In accordance with Articles 13(3) and 14(5) of the basic
Regulation, which provides that any extended measures
shall be applied on registered imports from the date of
registration, the anti-dumping duty should be collected
on imports of tube or pipe fittings consigned from the
Philippines which entered the Community under regis-
tration imposed by the initiating Regulation.

(36) Although during this investigation no genuine exporting
producer of tube or pipe fittings was found to exist in
the Philippines or made itself known to the Commission,
new exporting producers which would consider lodging a
request
for an exemption from the extended anti-
dumping duty pursuant to Article 13(4) of the basic
Regulation will be required to complete a questionnaire
in order to enable the Commission to determine whether
an exemption may be warranted. Such exemption may
be granted after the assessment of,
the
market situation of the product concerned, production
capacity and capacity utilisation, procurement and sales,
the likelihood of continuation of practices for which
there is insufficient due cause or economic justification
and the evidence of dumping. The Commission would
normally also carry out an on-the-spot verification visit.
addressed to the
The
Commission forthwith, with all relevant information, in
particular any modification in the company's activities
linked to production and sales.

request would have

for instance,

to be

(37)

Importers could still benefit from exemption for regis-
tration or measures to the extent that their imports are
from exporting producers, which are granted such an
exemption, and in accordance with Article 13(4) of the
basic Regulation.

(TARIC

ex 7307 93 19

7307 93 11 99),

1.
The definitive anti-dumping duty imposed by Regulation
(EC) No 964/2003 on imports of tube or pipe fittings (other
than cast fittings, flanges and threaded fittings), of iron or steel
(not including stainless steel), with a greatest external diameter
not exceeding 609,6 mm, of a kind used for butt-welding or
other purposes, falling within CN codes ex 7307 93 11 (TARIC
code
code
7307 93 19 99), ex 7307 99 30 (TARIC code 7307 99 30 98)
and ex 7307 99 90 (TARIC code 7307 99 90 98) and origi-
nating in the People’s Republic of China is hereby extended
to imports of tube or pipe fittings (other than cast fittings,
flanges and threaded fittings), of iron or steel (not including
stainless steel), with a greatest external diameter not exceeding
609,6 mm, of a kind used for butt-welding or other purposes
falling within CN codes
(TARIC code
7307 93 11 95), ex 7307 93 19 (TARIC code 7307 93 19 95),
ex 7307 99 30
and
code
ex 7307 99 90 (TARIC code 7307 99 90 95) consigned from
the Philippines, whether declared as originating
in the
Philippines or not.

7307 99 30 95)

ex 7307 93 11

(TARIC

2.
The duty extended by paragraph 1 of this Article shall be
collected on imports registered in accordance with Article 2 of
Regulation (EC) No 1288/2005 and Articles 13(3) and 14(5) of
Regulation (EC) No 384/96.

The provisions in force concerning customs duties shall

3.
apply.

Article 2

1.
Requests for exemption from the duty extended by Article
1 shall be made in writing in one of the official languages of the
European Union must be signed by a person authorised to
to the
the applicant. The request shall be sent
represent
following address:

(38) Where an exemption is warranted, the Commission will,
after consultation of the Advisory Committee, propose
the amendment of this Regulation accordingly. Subse-
quently, any exemptions granted will be monitored to
ensure compliance with the conditions set therein.

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

D. PROCEDURE

(39)

Interested parties were informed of the essential facts and
considerations on the basis of which the Council
intended to extend the definitive anti-dumping duty in
force and were given the opportunity to comment. No
comments which were of a nature to change the above-
mentioned conclusions were received,

The

after

consulting

Commission,

the Advisory
2.
Committee, may authorise, by decision,
the exemption of
imports from companies which do not circumvent the anti-
dumping measures imposed by Regulation (EC) No 964/2003
from the duty extended by Article 1, and propose the
amendment of this Regulation accordingly.

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Customs authorities are hereby directed to discontinue the registration of imports established in accordance
with Article 2 of Regulation (EC) No 1288/2005.

Article 3

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

Article 4

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

Done at Luxembourg, 27 April 2006.

For the Council
The President

L. PROKOP