Notice of initiation of an expiry review and a partial interim review of the anti-dumping measures applicable to imports of urea originating in Russia
Date: 2006-05-04
Institutions: European Commission
Subjects: Russia, anti-dumping duty, anti-dumping legislation, chemical fertiliser, import

C 105/12

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Official Journal of the European Union

4.5.2006

Notice of initiation of an expiry review and a partial interim review of the anti-dumping measures
applicable to imports of urea originating in Russia

(2006/C 105/07)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of urea origin-
ating in Russia (‘the country concerned’), the Commission has
received a request for review pursuant to Article 11(2) and (3)
of Council Regulation (EC) No 384/96 on protection against
dumped imports from countries not members of the European
Community (‘the basic Regulation’) (2), as last amended by
Council Regulation (EC) No 2117/2005 (3).

should measures be allowed to lapse, the likely prices of the
imports from the country concerned would undercut the Com-
munity industry's prices in the short and the medium term and
would also be significantly below the Community industry's
costs. Furthermore, the applicant presents evidence that the
current
level of the product concerned is likely to
remain substantial or even increase due to the existence of
unused capacity and the recent investments in production capa-
city in the country concerned.

import

1. Request for review

The request was lodged on 9 February 2006 by the European
Fertiliser Manufacturers Association (EFMA) (‘the applicant’) on
behalf of producers representing a major proportion, in this
case more than 50 %, of the total Community production of
urea.

2. Product

The product under review is urea originating in Russia (‘the
product concerned’), currently classifiable within CN codes
3102 10 10 and 3102 10 90. These CN codes are given only
for information.

It is also alleged that
imports of the product
the flow of
concerned is likely to remain at substantial levels or even rise
due to the measures in force on imports of similar products
originating in the country concerned in traditional markets
other than the EU (i.e. the United States of America) or other
measures restricting access to third country markets (Chinese
import and export restrictions) which can lead to a further
direction to the Community of potential exports.

the applicant alleges

that any recurrence of
In addition,
substantial
from the country
concerned would likely lead to a recurrence of further injury of
the Community industry should measures be allowed to lapse.

imports at dumped prices

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 901/2001 (4).

4.2. Grounds for the partial interim review

4. Grounds for the review

4.1. Grounds for the expiry review

The request is based on the grounds that the expiry of the
measures would be likely to result in a continuation or recur-
rence of dumping and injury to the Community industry.

The allegation of continuation of dumping in respect of Russia
is based on a comparison of a constructed normal value with
the export prices of the product concerned when sold for
export to the Community.

i.e. a duty equal

The applicants have provided information that the form of the
measure,
to the difference between the
minimum import price of EUR 115 per tonne and the net,
free-at-Community frontier price, before duty, which is levied
in all cases where the latter is less than the minimum import
price, is no longer adequate to remove the injurious dumping.

The applicant alleges that, given the volatility of costs and
prices for urea, the current form of the measure is no longer
sufficient to remove the injurious effects of dumping. There-
fore, it is warranted to review the form of the measure.

On this basis, the dumping margin calculated is significant.

5. Procedure

The applicant further alleges the likelihood of further injurious
dumping. In this respect, the applicant presents evidence that,

(1) OJ C 209, 26.8.2005, p. 2.
(2) OJ L 56, 6.3.1996, p. 1.
(3) OJ L 340, 23.12.2005, p. 17.
(4) OJ L 127, 8.5.2001, p. 11.

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review and a partial interim review, limited to the form
of the measures, the Commission hereby initiates a review in
accordance with Article 11(2) and (3) of the basic Regulation.

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5.1. Procedure

for

the determination of

likelihood of

dumping and injury

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury. The interim review will
determine whether the current form of the measures is suffi-
cient to counteract the injurious dumping.

(a) Sampling

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

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

companies (1)
selling (export and/or domestic) of
concerned,

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

imply

replying

— 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
and
its
accepting
response. If the company indicates that it does not
agree to its possible inclusion in the sample, it will
be deemed to not have cooperated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

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.

(i) Sa mp li ng for e x p or te r s/ p r odu c e r s i n R u ssi a

(ii) S a 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
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
formats indicated in point 7:

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

numbers and contact person,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold for export
to the Community during the period 1 April 2005
to 31 March 2006,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold on the
domestic market during the period 1 April 2005 to
31 March 2006,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold on other
third countries during the period 1 April 2005 to
31 March 2006,

— the precise activities of the company with regard to
the production of the product concerned and the
the product
production volume in tonnes of
concerned, the production capacity and the invest-
ments in production capacity during the period 1
April 2005 to 31 March 2006,

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 formats indicated in
point 7:

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

numbers and contact person,

— the total turnover in EUR of the company during

the period 1 April 2005 to 31 March 2006,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in EUR of imports
into and resales made in the Community market
during the period 1 April 2005 to 31 March 2006
of the imported product concerned originating in
Russia,

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

companies (1)
selling of the product concerned,

(1) 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).

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Official Journal of the European Union

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

imply

replying

— 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
and
its
accepting
response. If the company indicates that it does not
agree to its possible inclusion in the sample, it will
be deemed to not have cooperated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

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

the sample of

importers,

(iii) Sa mp li ng for Commu n i ty p r odu c e r s

In view of the large number of Community producers
supporting the request,
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):

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

numbers and contact person,

— the total turnover in EUR of the company during

the period 1 April 2005 to 31 March 2006,

— the precise activities of the company with regard to
the production of the product concerned and the
volume in tonnes of the product concerned during
the period 1 April 2005 to 31 March 2006,

— the value in EUR of sales of the product concerned
made in the Community market during the period
1 April 2005 to 31 March 2006,

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 April 2005 to 31 March 2006,

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

companies (1)
selling of the product concerned,

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

imply

replying

— 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
and
will
accepting
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 cooperated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

(iv) F i na l se le c ti on of t h 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).

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 cooperation is not

the
If
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.

(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 Russia, to any association of exporters/produ-
cers, to the sampled importers, to any association of impor-
ters named in the request or which cooperated in the inves-
to the present
tigation leading to the measures subject
review, and to the authorities of the exporting country
concerned.

— the volume in tonnes of the production of the
product concerned during the period 1 April 2005
to 31 March 2006,

(1) 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).

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5.2. Procedure for the assessment of Community interest

(b) Specific time limit in respect of sampling

In accordance with Article 21 of the basic Regulation and in
the event that the likelihood of a continuation or recurrence of
dumping and injury is confirmed, a determination will be made
as to whether to maintain, or repeal the anti-dumping measures
would not be against the Community interest. For this reason
the Community industry, importers, their representative asso-
ciations, representative users and representative consumer orga-
nisations, 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 them-
selves known and provide the Commission with information.
The parties which have acted in conformity with the previous
sentence may request a hearing, setting the particular reasons
why they should be heard, within the time limit set in point
It should be noted that any information submitted
6(a)(iii).
pursuant
if
to Article 21 will only be taken into account
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 onna i r e

interested parties who did not cooperate in the
All
investigation leading to the measures subject to the
present review should request a questionnaire as soon
as possible, but not later than 15 days after the publi-
cation of this notice in the Official Journal of the Euro-
pean 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 limit 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 paragraph 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.

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’ (1) and, in accordance with Article 19(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘FOR INSPECTION BY INTER-
ESTED PARTIES’.

shall be

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, findings, affirmative
or negative, may be made in accordance with Article 18 of the
basic Regulation, on the basis of the facts available.

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

thereof will not lead to the level of the existing measures being
amended but will
lead to those measures being repealed or
maintained in accordance with Article 11(6) of the basic Regu-
lation. The partial interim review based on Article 11(3) of the
basic Regulation, which is initiated in parallel, is limited to the
form of the measure and can therefore not lead to the level of
the measures being amended either.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(5)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

If any party to the proceeding considers that a review of the
level of the measures is warranted so as to allow for the possi-
bility to amend (i.e.
the
measures, that party may request a review in accordance with
Article 11(3) of the basic Regulation.

increase or decrease)

the level of

10. Possibility to request a review under Article 11(3) of

the basic Regulation

As this expiry review is initiated in accordance with the provi-
sions of Article 11(2) of the basic Regulation, the findings

Parties wishing to request such a review, which would be
interim
carried out independently of the expiry and partial
review mentioned in this notice, may contact the Commission
at the address given above.