Council Regulation (EC) No 1136/2006 of  24 July 2006  imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of lever arch mechanisms originating in the People's Republic of China
Date: 2006-07-24
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, anti-dumping legislation, import, office supplies, originating product

27.7.2006

EN

Official Journal of the European Union

L 205/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1136/2006

of 24 July 2006

imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on
imports of lever arch mechanisms originating in the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

(4)

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 9 thereof,

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

(5)

Whereas:

(1)

(2)

(3)

1. PROCEDURE

1.1. Provisional measures

On 28 January 2006 the Commission imposed, by Regu-
lation (EC) No 134/2006 (2) (‘the provisional Regulation’),
a provisional anti-dumping duty on imports into the
lever arch mechanisms originating in
Community of
the People's Republic of China (‘PRC’).

It is recalled that the investigation period of dumping and
injury (‘IP’) covered the period from 1 January 2004 to
31 December 2004. The examination of trends relevant
for the injury analysis covered the period from 1 January
2001 to the end of the IP (‘period considered’).

1.2. Subsequent procedure

Following the imposition of the provisional anti-dumping
duty on imports of lever arch mechanisms from the PRC,
some interested parties submitted comments in writing.
The parties, who so requested, were also granted an
opportunity to be heard orally.

(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 23, 27.1.2006, p. 13.

(6)

(7)

The Commission continued to seek and verify all infor-
mation it deemed necessary for its definitive findings. The
oral and written comments submitted by the parties were
examined, and, where considered appropriate, the provi-
sional findings were modified accordingly.

2. PRODUCT CONCERNED AND LIKE PRODUCT

It is recalled that, in recital (12) of the provisional Regu-
lation, the product concerned was defined as lever arch
mechanisms (‘LAM’) generally used for archiving sheets
and other documents in binders or files. They consist of
arched sturdy metal elements (normally two) on a back
plate and having at least one opening trigger that permits
inserting and filing of sheets and other documents, origi-
nating in the PRC (‘the product concerned’), normally
falling within CN code ex 8305 10 00.

that

One interested party claimed that one specific type of
LAM should be excluded from the definition of
the
type is produced
product concerned because (i)
under a patented design owned by the interested party
and is not available from any other manufacturer,
(ii)
there is an exclusive supply contract with a Chinese
producer, (iii) the type is exclusively used in premium
lever arch files (‘LAF’) with a superior quality
special
and design compared to standard LAM and is therefore
not competing with the segment of standard LAM, and
this type is not economically substitutable with
(iv)
its much higher cost of
standard LAM in view of
production.

However, another interested party claimed that all LAM
have the same characteristics, end uses and channels of
distribution. Moreover,
it stated that the manufacturing
processes and costs are irrelevant for the determination
of the product concerned. It also stated that any prefe-
rential treatment of one type of LAM used by only one
LAF producer would cause a serious distortion not only
on the Community LAM market itself, but also on the
Community market for LAF.

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(8)

(9)

It is considered that a patented design or an exclusive
contract between an exporting producer and a European
user for a certain type of product does not, as such,
justify the exclusion of this type from the definition of
the product concerned or the like product. A LAM with
all its characteristics remains the product concerned irre-
spective of whether it is patented or purchased via an
exclusive contract. It should also be noted that manufac-
turing processes, production costs and quality differences
are not, as such, relevant for the determination of the like
product.

The investigation confirmed that all product
types
including the specific type of LAM which was claimed
for exclusion in recital (6) above share the same technical
and physical product characteristics and uses and that the
LAM market does not distinguish amongst clear market
segments. All LAM, are thus substitutable and are in
competition with each other on the Community
market. Therefore, all types of LAM fall under the defi-
nition of the product concerned and the like product.
Consequently, the claim set out in recital (6) above had
to be rejected.

3.3. Individual treatment (‘IT’)

(14)

The findings in recital (29) of the provisional Regulation
with regard to the first company granted IT,
i.e.
Dongguan Nanzha Leco Stationery are hereby confirmed.

(15) As mentioned in recital

(30) of the provisional Regu-
lation, the other company which had been granted IT
had subsequently been excluded from the investigation
because of non-cooperation.
In the absence of any
reaction from the company, the finding as set out in
the provisional Regulation is hereby
recital
confirmed.

(30) of

3.4. Normal value

(16)

The findings below concern the determination of normal
value of all exporting producers not granted MET.

(10)

In view of the above, the findings made in recital (11) to
(16) of the provisional Regulation are hereby confirmed.

(17)

3. DUMPING

3.1. General methodology

(11)

The general methodology used to establish dumping of
the imports of LAM into the Community market was
described in the provisional Regulation in recitals (17)
to (50). The general methodology as set out in the provi-
sional Regulation is hereby confirmed, with due consi-
deration being taken of
the amendments mentioned
below.

3.2. Market Economy Treatment (‘MET’)

(12) One of the companies granted IT claimed that it should
have been granted MET and that its situation especially
with regard to criteria two (accounting and auditing) and
three (distortion carried-over
from the former non-
system) has not properly been
market
assessed
company,
the
however, did not provide any new evidence in support
of its claim.

economy
during

investigation.

The

(13)

In the absence of new facts and other comments, the
findings concerning MET as set out in recitals (17) to
(25) of the provisional Regulation are hereby confirmed.

(a) Analogue country

Following further analysis of all the information available
from the producer in Iran, it had to be concluded that
the information was incomplete and/or inconsistent and
thus could not be used as the basis for the calculation of
the normal value at the definitive level. It was therefore
resorted to another reasonable basis for the calculation of
the normal value in accordance with Article 2(7)(a) of the
basic Regulation.

(b) Determination of normal value

(18) Due to lack of information from other third countries
where LAM are produced, it was considered that the data
available from the complaint and from the Community
industry constituted the most
to
establish normal value at the definitive level. Adjustments
were made to reflect specific verified data obtained
during the investigation, in particular concerning prices
of raw materials and freight.

reasonable basis

3.5. Export price

(19)

The exporting producer granted IT claimed that errors
were made in the level of SG&A and profit calculated
there was double
for a related importer and that
the SG&A applied to establish the ex-
counting of
works export price.
In addition, this exporter claimed
that
the SG&A figures and profits from the related
companies should be revised following new calculations
provided by the company after the on-site visits.

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(20)

The examination of the above claims confirmed that a
clerical error occurred in the SG&A calculation. This
error has been corrected accordingly. However, the new
data provided by the company had to be rejected because
they could not be verified any longer during the investi-
gation.

(21)

The general methodology as set out in recitals (41) and
(42) of the provisional Regulation are hereby confirmed.

3.6. Comparison

(22)

The normal value established as described in recitals (16)
to (18) above and the export prices, revised as explained
in recitals (19) to (21), were compared on an ex-factory
basis and at the same level of trade. In order to ensure a
fair comparison between normal value and export price,
account was taken, in accordance with Article 2(10) of
the basic Regulation, of differences in factors which were
claimed and demonstrated to affect prices and price
comparability. The factors for which adjustments were
accepted
insurance,
handling, loading costs, ancillary costs, and credit costs.

commissions,

transport,

are

3.7. Dumping margin

(23)

Following the adjustments to normal value and to export
price,
the definitive dumping margin expressed as a
percentage of the CIF import price at the Community
border, duty unpaid, applicable to the exporter granted
IT, should be as follows:

Company

Definitive dumping
margin

Dongguan Nanzha Leco Stationery

27,1 %

should

industry

and Community

exporting producer

be
production
excluded because of an alleged relationship with a
Chinese
large
in particular during the IP.
imports of Chinese LAM,
the company should be
they claimed that
Hence,
excluded both from Community production and for
the purpose of assessing injury.

and because of

(26)

(27)

the provisions of Article 4 of

It is recalled that the situation of the said producer was
described in detail in recitals (55) to (57) of the provi-
sional Regulation. When examining again its situation in
the light of
the basic
Regulation,
it has to be recalled that the producer did
not behave differently from other complainant non-
related Community producers. Moreover,
it was found
the Community producer was not in a position
that
neither
the
operationally
exporting producer from whom it imported. The claim
was therefore rejected.

control

legally

nor

to

production,

In the absence of any new comments concerning the
findings
Community
concerning the total Community production as set out
in recitals (51)-(58) of
the provisional Regulation are
hereby confirmed.

provisional

the

4.2. Definition of the Community industry

Firstly, because

(28) One interested party argued that another Community
producer should be excluded from the definition of the
Community industry.
the producer
allegedly sells
large quantities of LAM to related
customers and is also using LAM for captive use.
fully
Secondly, because the said producer did not
it did not
cooperate in the investigation,
submit a complete
interested
parties within the deadline.

in particular,
to all

file accessible

(24)

Following provisional disclosure, no comments were
received concerning the methodology for calculating
the dumping margin for all other exporting producers.
However, the adjustments made to normal value led to
an amended definitive dumping margin of 47,4 % of the
CIF Community frontier price for all other exporting
producers.

(29) After having analysed this claim, it was confirmed that
the cooperation of the said producer in the investigation
should hence be
was not
sufficient. This producer
excluded from the definition of
the Community
industry and its output should also be excluded from
the Community production.

4. INJURY

4.1. Community production

(25)

Some interested parties claimed that one producer provi-
sionally included in the definition of the Community

(30)

the four

The production of
remaining Community
producers which cooperated fully in the investigation
and supported the complaint was established at around
205 million units of LAM during the IP.

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(31)

(32)

(33)

(34)

The above four Community producers represent around
75 % of the total Community production. Hence, these
companies are sufficiently representative to constitute the
Community industry within the meaning of Articles 4(1)
and 5(4) of the basic Regulation.

In this Regulation the absolute figures in the tables below
could not always be provided. These data cannot be
disclosed
producer was
excluded between the provisional and the definitive
stage, hence its data could be derived by comparison.

one Community

because

4.3. Community consumption

they addressed the

the volume of
Some interested parties alleged that
In
Community consumption was wrongly calculated.
particular,
the data
concerning the imports from the country concerned
the
was based on the complaint. They claimed that
parties that participated in the investigation, in particular
and LAM importers provided the
LAF producers
Commission with more
to establish
consumption.

reliable data

issue

that

The volume of consumption was thus recalculated on the
basis of data provided by cooperating parties in the
investigation. The figures shown in the table below are
based on the European producers' verified sales,
the
imports from the PRC and on other sources made
available by those users and importers which participated
in the investigation. Given the high cooperation of
Community producers,
importers and users, these data
are considered the most reliable, even though it cannot
be excluded that a small number of other users/importers
exist and therefore the imports are slightly underes-
timated.

Table 1

Consumption volume
(million pieces)

European Community

Index

2001

2002

2003

271

100

313

116

327

121

2004
(IP)

381

141

the provisional Regulation, but

(35) A comparison shows that the trends in consumption
volume are similar to the one described in the recital
they indeed
(63) of
appear to be more accurate.
it appears
that
in consumption occurred
between 2003 and the IP, amounting to 17 %. During
the same period the Community industry only increased
its sales volume by 3 % (cf. Table 6) and that imports

In particular,

the major

increase

from the PRC significantly increased by 28 % or by more
than 42 million pieces (cf. Table 2).

4.4. Imports into the Community from the PRC and
market share

(36)

Based on the claim made in recital
the
import volume of LAM originating in the PRC was
also revised. Trends relatively similar to those found in
recital (65) of the provisional Regulation were observed.
These trends are illustrated in table 2 below.

(33) above,

Table 2

Import volumes (million
pieces)

2001

2002

2003

IP

PRC

Index

98,47

135,38 152,73 195,59

100

137

155

199

(37)

The major difference in comparison to the import
volumes established in the provisional Regulation was
found for 2001 where the proposed method shows
that imports of Chinese LAM were below 100 million
pieces. However, it should be underlined that there exist
other importers and users which imported LAM on the
Community market but did not provide any input in the
investigation; hence as stated in recital (34) it cannot be
excluded that the import data are slightly underestimated.

(38)

In any event, the said parties claimed that the revised
figures of consumption and imports would show that
market share of the Chinese imports remained relatively
stable since 2002. The development of market share
based on revised data is as follows:

Table 3

Market shares of the imports

2001

2002

2003

IP

PRC

Index

36 %

43 %

47 %

51 %

100

119

128

141

(39)

The revised data on market share indicates that Chinese
imports consistently increased their presence on the
Community market during the period considered: by 7
percentage points in 2002, by 4 percentage points in
2003 and again by 4 percentage points during the IP.
These trends are similar to those observed in recital (65)
of the provisional Regulation.

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(40)

the data provided by parties show that
To sum up,
consumption of LAM in the Community significantly
increased by 41 %, or by 110 million units during the
period considered. In the meantime, the imports from
the PRC have significantly and consistently grown, well
above the growth in consumption. The revised data show
an increase by more than 97 million pieces and a market
share increasing from 36 % to 51 %.

(46)

(41) Although some calculations concerning imports were
revised,
the findings and conclusions made in recital
in particular those
(66) of the provisional Regulation,
regarding trends between 2002 and the IP, are not
contradicted by the above analysis and can therefore be
confirmed.

conclusions drawn below are based on the
The
aggregated and verified Community industry data for
the four remaining cooperating Community producers.
Due to the exclusion of one Community producer and
the fact that in the provisional Regulation, data from five
producers were included in the injury assessment, the
confidential data of the excluded Community producer
could be derived by comparing the data of the provi-
sional Regulation with the data in the definitive Regu-
lation. Hence, at this stage the verified data are provided
in an indexed format. It should, however, be noted that
the injury indicators for the four remaining cooperating
Community producers are not substantially different as
compared to those established previously in the provi-
sional Regulation for the five producers.

4.7. Production capacity

4.5. Prices of imports and undercutting

(47)

Following the claims received by interested parties, the
data available on import prices was also re-examined.
However, it was found that the parties that participated
in the investigation could not provide complete, reliable
and consistent data on prices and value of the imports
from the PRC. Only partial information was available and
this information was based on different sales conditions.
These partial data could therefore not be used to reliably
establish the import value and CIF prices of Chinese
imports. Hence, the data available in table 3 of the provi-
sional Regulation, which was based on Eurostat prices, is
hereby confirmed.

Some interested parties argued and substantiated that the
calculation of the production capacity in the provisional
Regulation did not reflect the reality. It was stated that
the production capacity should take the factual market
position of each producer included in the Community
into
industry
and
the
account. This
Community industry is composed only of small and
medium sized enterprises,
them are even
family businesses, which usually operate only five
working days a week.

real production possibility
accepted given that

its
claim was

some of

(48)

Based on the above comments, a new estimation
regarding the production capacity is presented below.
Adjustments have been made to establish production
capacity on the basis of the five working days time-
schedule, instead of seven days as done originally.

Following the change in composition of the Community
industry as outlined in recital (29) above, undercutting by
all Chinese exporting producers of LAM was recalculated.
The undercutting margin established in recital (69) of the
provisional Regulation needs to be revised upwards to
38 % when
the
as
Community industry price.

percentage

expressed

of

a

Table 4

Indices 2001 = 100

2001

2002

2003

100

96

97

IP

98

100

95

105

106

(44) On that basis,

the methodology and the conclusions
reached under recitals (67) to (69) of the provisional
Regulation are hereby confirmed.

Index production
(2001=100)

Index production
capacity

Index capacity utilisation

100

102

92

92

4.6. Economic situation of the Community industry

(45)

Following the change in composition of the Community
industry as discussed in recital (29), the examination of
the impact of the dumped imports on the newly defined
Community industry was conducted according to the
methodology as outlined in recital (70) of the provisional
Regulation.

(49) As outlined above, the change in the composition of the
Community industry in recital
(29) did not affect the
conclusions drawn in recital (73) of the provisional Regu-
lation.

(42)

(43)

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4.8. Stocks

Table 7

(50)

The figures below represent the volume of stocks at the
end of each period.

Table 5

Indices 2001 = 100

2001

2002

2003

IP

Index stocks

100

51

95

131

(56)

Profitability on Community
Sales (RoT)

Index Profitability on EC
sales

2001

2002

2003

IP

– 4 %

– 6 %

– 14 %

Profitability was
period
considered. The conclusions as contained in recital (82)
of the provisional Regulation are hereby confirmed.

throughout

negative

the

(51) However, as already explained in recital (75) of the provi-
sional Regulation, it is considered that stocks held by the
Community industry are not a relevant indicator for the
assessment of the economic situation of the Community
industry.

4.9. Sales volume, market shares, average unit prices
in the Community and growth

(52)

The figures below represent the Community industry's
sales
on the
independent
to
volume
Community market.

customers

Table 6

Indices 2001 = 100

2001

2002

2003

IP

Index Sales Volume

Index Market Share

Index Average sales
prices (EURO/thousand
pieces)

100

100

100

103

103

106

89

93

85

90

75

86

(53)

The analysis of the revised data confirms the conclusions
in recitals (77) to (80) of the provisional Regulation. It
shows that the Community industry could slightly raise
its sales volume during the period considered by 6 %. In
the same period the Community consumption grew by
41 %, or by 110 million pieces as outlined in the table 1
above.

4.11. Return on investments, cash flow, investments
and ability to raise capital

(57)

The revised trends for the return on investments, cash
flow and investments are shown in the following table.

Table 8

Indices 2001 = 100

2001

2002

2003

IP

Index Return on
Investments (total
companies)

Index Cash Flow (total
companies)

Index Investments
(product concerned) in
EUR

100

– 191

– 45

– 364

100

39

56

– 79

100

136

130

105

decreasing

(58) As already outlined in recitals (84) to (86) of the provi-
sional Regulation,
the
the
Community industry's sales prices significantly affected
its profitability. Accordingly, this had a negative impact
on the injury indicators linked to the profitability level. It
can be noted that the above negative trends observed for
return on investments and cash flow reflect to a large
extent those on profitability shown in Table 7 above.

trend

of

(54)

The Community industry also suffered from significantly
dropping average sales prices (by 14 %), while more low-
priced dumped imports were penetrating the Community
market. Their market share decreased as well.

(59)

The Community industry increased its investments by
the investments
5 % only.
diminished significantly in the period between 2003
and the IP.

It can also be seen that

4.10. Profitability

(55)

The profitability margins shown below are established as
outlined in recital (81) of the provisional Regulation. The
margins changed only slightly for the IP:

(60) As far as the ability to raise capital

is concerned, the
findings set out in recital (86) of the provisional Regu-
lation are hereby confirmed.

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4.12. Employment, productivity and wages

Table 9

Indices 2001 = 100

2001

2002

2003

100

97

94

IP

90

Faced with low priced dumped imports it also suffered
from an average price decrease of 14 %. The analysis of
the evolution of certain other injury indicators, such as
cash flow and return on investments also confirms the
trends presented in recital (92) of the provisional Regu-
lation.

100

99

104

108

100

100

97

100

(66)

Furthermore, the conclusions contained in recitals (93) to
(94) of the provisional Regulation are also confirmed.

Index Number of
employees

Index Productivity
(thousand units/
employee)

Index Wages (average per
employee, per annum in
EUR)

(61)

is shown that also these indicators, with the new
It
composition of the Community industry, confirm the
conclusions as contained in recitals (87) and (88) of
the provisional Regulation.

(67)

Based on the above, it is confirmed that the Community
industry suffered material injury within the meaning of
Article 3 of the basic Regulation.

4.13. Magnitude of the actual margin of dumping

(62)

In the absence of any comments regarding the magnitude
of the actual margin of dumping, recital
(89) of the
provisional Regulation is herby confirmed.

4.14. Effects of past dumping or subsidization

(63) As outlined in the recital (90) of the provisional Regu-
lation, the Community industry is not recovering from
the effects of past dumping or subsidisation.

4.15. Conclusion on injury

(64)

the volume

The investigation showed that imports from the PRC had
significantly increased both in absolute and relative terms
during the period considered. The revised import data
imported increased by 97
show that
million pieces and that the gain in market share was as
high as 15 percentage points over that period. Following
the revised calculations, as outlined in recital (43) above,
the prices of LAM imported from the PRC were under-
cutting Community industry's prices by 38 %.

5. CAUSATION

5.1. Effect of imports from the PRC

(68) As mentioned in table 2 above, the data provided by the
cooperating parties
showed that during the period
considered import volumes from the PRC significantly
increased by 99 %, while their market share increased
by 15 percentage points. During the same period the
import prices of LAM originating in the PRC fell by
11 %, and the overall price undercutting found for all
Chinese exporting producers on the Community market
during the IP was as high as 38 %.

(69) As laid down in recital

(97) of the provisional Regu-
lation, the investigation confirmed that there was a coin-
cidence in time between the surge of
low-priced and
dumped imports and the worsening of the situation of
the Community industry.
In particular, between 2003
and the IP, the Chinese imports increased by over 42
million pieces while significant price undercutting was
found to exist. Hence, Chinese
imports gained 4
percentage points of market share. During the same
their
period the Community industry lost 12 % of
market share even though they decreased their prices
by around 4 % and managed to increase their sales
volume. With due
the
conclusions as outlined in recital (97) of the provisional
Regulation are confirmed.

regard to these

findings,

(65) During the period considered, in view of the significant
increase in consumption to which it could not parti-
cipate, the Community industry sales volumes increased
by 6 %, but it suffered a significant loss in market shares.

(70)

It is confirmed, as mentioned in recital (98) of the provi-
sional Regulation that Chinese
exporters practicing
dumping managed to increase their market share and
became the major players on the Community market,
supplanting the Community industry during the IP.

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5.2. Effects of imports from third countries

(76)

(71)

Based on the data provided by cooperating parties and as
set out in recital (34) above, import volumes from other
third countries are as follows:

Table 10

2001

2002

2003

5,63

5,31

2,53

Imports other than PRC
(million pieces)

Index

100

94

45

Market share

2,1 %

1,7 %

0,8 %

IP

0

—

0

(72)

imports

Based on the above data, it was concluded that the small
quantities of
third countries
amounting to around 2 % of the market in 2001 and
decreasing to 0 % during the IP, could not have caused
the injury suffered by the Community industry.

from other

(73)

Therefore, the conclusions as contained in recitals (99) to
(101) of the provisional Regulation are hereby confirmed.

(78)

5.3. Effects of Chinese

imports made by the

Community industry

(74) As no new information was supplied, the conclusion as
contained in recitals (102) to (105) of the provisional
Regulation is hereby confirmed.

5.4. Effects of

the export performance by the

Community industry

the export performance of

(75) Given that the definition of the Community industry was
revised,
the Community
industry and whether or not the Community industry's
export performance of LAM may have been a cause of
the injury suffered during the IP were re-examined. The
quantities exported by the Community industry are given
in the table below:

Table 11

Indices 2001 = 100

2001

2002

2003

Index Exports

100

66

59

IP

46

has

been

always

industry

This re-examination confirmed that the core market of
the Community
the
Community market. Exports outside the Community
represented 17 % of total sales in 2001 and only 7 %
during the IP. The main decrease in export sales occurred
between 2001 and 2002 when export sales decreased by
34 %. Subsequently, exports have consistently decreased
until
the IP. The information available
indicates that this situation is similar to that described
in recitals (107) to (109) of the provisional Regulation.

the end of

(77) One party claimed that

the loss of sales in export
markets suffered by the Community industry during
the IP was the reason for the injury it suffered. This
party also claimed that in the face of competition in its
core market, a healthy industry would be expected to
divert its export sales to third countries. However, the
investigation showed that the Community industry, when
facing injurious dumping in the Community market, was
lost sales by
not
expanding exports to third countries.

in a position to compensate for

It should also be pointed out that the Community is the
main worldwide market for LAM and its downstream
product, i.e. lever arch files (LAF). In addition, the inve-
stigation concentrated on the economic situation on the
Community
industry on the Community market.
Accordingly, the analysis made on a number of injury
indicators such as sales volume, sales prices and profi-
tability,
the Community
industry on the Community market only and is not
affected by the export performances.

is based on the situation of

(79)

Furthermore, even if the decrease in export sales volume
may have contributed to a certain worsening of some
injury indicators such as production and may have
affected the situation of the Community industry as a
whole it cannot explain the significant decrease in
Community industry's prices, the losses in market share
and decreased profitability incurred by the Community
industry during the IP in relation to LAM sold on the EC
market. Therefore,
the export performance could not
break the causal link between the injury suffered by the
Community industry and the dumped imports of LAM
originating in the PRC.

(80)

The conclusion as contained in recital (110) of the provi-
sional Regulation is therefore confirmed.

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Official Journal of the European Union

L 205/9

(81)

5.5. Exchange rate

the main drivers of

Some interested parties indicated that the exchange rate
variation EUR/USD which amounted to around 40 %
between 2001 and 2004 was the main cause of any
injurious situation suffered by the Community industry.
It was alleged that the fluctuation in the exchange rate
the users' sourcing
was one of
selection between the Community
PRC
It was also claimed that Chinese exporters
producers.
generally invoice their sales to EU-based customers in
USD or,
if invoiced in EUR, the price is linked to the
EUR/USD exchange rate usually agreed at the time of the
order. This allegedly had the effect of off-setting the
increases in USD prices that were charged by Chinese
exporters in that period. Hence, any finding of injury
was claimed to be unrelated to any alleged dumping
from the PRC.

and

the

(82)

It is confirmed that the exchange rate variation between
the EUR and the USD was significant during the period
considered. Between 2003 and the IP, however, the fluc-
tuation was found to be limited to 10 %. In any event, it
is clear that the exchange rate variation cannot explain
the massive dumping margin found in the PRC during
the IP because the dumping calculations were not
influenced by this variation.

(83) A simulation on the impact of the exchange rate on the
sales prices practiced on the Community market indicates
that even without currency fluctuations significant under-
cutting by Chinese exporters would still continue to exist
during the IP. More importantly, the alleged effect of
fluctuations in the exchange rate cannot be an ‘other
factor’ within the meaning of Article 3(7) of the basic
Regulation. Indeed, other factors within the meaning of
the aforementioned provision only refer to factors other
the applicable
than the dumped imports. However,
rate determines
exchange
the
dumped imports,
it concerns the dumped imports
i.e.
themselves and not something else which could have
injured the Community industry.

export price of

the

(84)

Based on the above, it is considered that the parties did
the
not provide
any evidence demonstrating that
exchange rate fluctuations could break the causal
link
found between the material
injury suffered by the
Community industry and the dumped imports.

5.6. Steel price increase

(85) One user argued that there was a serious steel crisis
which caused dramatic price increases of the main raw
material used in the production of LAM in the period

considered. The user alleged that the steel price increase
was as high as 25-40 % in the first quarter of 2004.

(86)

in the

The price increases in the steel sector were indeed
worldwide and should have had an impact on all steel
users, in particular during the IP. Accordingly, the normal
reaction of steel users would have been to reflect cost
their downstream
sales prices of
increases
products. The data available, however,
indicate that
overall Chinese export prices increased only by 5 %
between 2003 and the IP,
i.e. at the time of the steel
crisis. This finding points to the fact that despite the steel
price increase up to 40 %, Chinese exporting producers
did not adjust their export prices and were found to be
exporting at low and dumped prices to the Community
market during the IP.

(87)

The investigation showed that the Community industry's
raw material costs significantly increased,
in particular
during the IP, but that it was prevented from adjusting
its sales prices because of the significant undercutting
practiced by low-priced dumped imports from the PRC
on the Community market.

(88)

It is thereby confirmed that the injury suffered by the
Community industry was not to any significant extent
caused by the steel price increases.

5.7. Conclusion on causality

(89)

Based on the above analysis, the conclusion as contained
in recital (111) of the provisional Regulation is hereby
confirmed.

6. COMMUNITY INTEREST

6.1. Interest of

the Community industry and

suppliers

(90)

In the absence of any information submitted with respect
to the interest of the Community industry and suppliers,
the findings as set out in recitals (114) to (121) of the
provisional Regulation are hereby confirmed.

6.2. Interest of users and importers

(91)

representing 51 % of

is recalled that replies from eight users and two
It
located in the Community market were
importers
the total Community
received,
in
consumption. Users are usually importers as well,
they import LAM and produce lever
the sense that
arch files (LAF),
the downstream product. The total
business of these parties is significant but the production
of LAF only represents 22 % of their overall activity.

L 205/10

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Official Journal of the European Union

27.7.2006

(92)

(93)

6.2.1. Shortage of supply

Some users reiterated their claim that any anti-dumping
measure imposed is causing a shortage of supply in the
Community due
the
to insufficient
Community industry. They argued that the shortfall of
European production capacity versus the level of demand
was as much as 40-50 %. They argued that they are
forced to import and thus to pay significant amounts
of duty to keep their level of activity.

capacities of

In

of

addition,

provisional measures.

It should be noted that the users did not bring any
substantiated evidence that
there was a shortage of
LAM in the Community market before or after the impo-
sition
the
Community industry and other producers present on
the Community market have production capacity
available. If necessary, additional
investments could be
made and workforce could easily be increased by the
Community producers to meet the demand in a market
the
not distorted by dumping practices. Moreover,
Community market is not closed to imports from the
PRC and these products will continue to be available to
all users at non-dumped prices. It is also considered that
underlying this claim is a fear of reduced competitiveness
of the user industry, which is addressed in recitals (94) to
(97) below.

share

the
the Community market and to the recovery of
the
market
of
Community industry. This should in the short
term
enhance effective competition and avoid any undue
price increase on the Community market.

economic

situation

and

(97) On balance, it is confirmed that any negative impact on
the cost of certain users is not such as to prevent the
imposition of measures.

6.3. Conclusion on Community interest

The investigation has shown that it is likely that without
any measures against dumped imports the Community
industry would disappear since it is already in a very
vulnerable financial situation. This would certainly lead
to the dependence of LAF producers on outside sources
and to a significant reduction of competition. The impo-
sition of anti-dumping measures should restore effective
trade conditions, without undue burden or advantage, for
all
and buying LAM on the
the parties
Community market.

selling

is therefore concluded that

It
would not be against the Community interest.

the definitive measures

(98)

(99)

6.2.2. Competitiveness of the user industry

(94)

The imposition of measures should not materially affect
the overall competitiveness of the user industry given
that all users in the Community would have access to
alternative sources of supply. The anti-dumping measures
in principle, have no impact on the export
should,
this industry and an increase of cost of
activity of
production would not be significant.

7. DEFINITIVE ANTI-DUMPING DUTIES

7.1. Injury elimination level

(100) Based on the methodology explained in recitals (133) to
(136) of the provisional Regulation, an injury elimination
level was calculated for the purposes of establishing the
level of measures to be imposed.

(95) As regards possible cost

increases,

In the best

these may affect
companies which are mainly purchasing low-priced
dumped products
case
from China.
scenario, considering the current market share of the
Community industry, the proposed measures may lead
to an average cost increase of around 2,0 % of the cost
of the downstream product on average. In the worst case
increase would amount
scenario,
to 3 %.
increase might even be diluted if
However,
the users are able to pass on part of this cost increase
to their customers, which cannot be excluded.

the cost
this cost

(96) However, as explained in recital (128) of the provisional
Regulation,
the imposition of anti-dumping measures
should lead to an increase of effective competition on

(101) When calculating the injury margin in the provisional
Regulation,
the Community
target profit
industry was set at 5 %, a level deemed conservative
and which could be reasonably expected in the absence
of injurious dumping.

the

for

(102) One party argued that the injury margin should not be
based on the Community industry's cost of production
plus a reasonable profit, given that
the Community
industry is not efficient and its cost of production is
higher than it should be. This party, however, did not
submit any evidence to substantiate its claim. The inve-
stigation did not provide any reason to depart from the
methodology followed in recital (134) of the provisional
Regulation.

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Official Journal of the European Union

L 205/11

(103)

In the absence of any other comments on this subject,
the methodology set out in recitals (133) to (136) of the
provisional Regulation is hereby confirmed.

If appropriate,

then be
entities.
amended accordingly by updating the list of companies
benefiting from individual duty rates.

the Regulation will

7.2. Definitive measures

(108)

(104)

In the light of the foregoing and in accordance with
Article 9(4) of the basic Regulation, a definitive anti-
dumping duty should be imposed at the level of the
dumping margin calculated as regards imports of LAM
originating in the PRC since it is confirmed that in all
cases the injury margins were higher than the dumping
margins found.

In order to ensure a proper enforcement of the anti-
dumping duty, the residual duty level should not only
apply to the non-cooperating exporters, but also to those
companies which did not have any exports during the IP.
However, the latter companies are invited, when they
fulfil the requirements of Article 11(4) of the basic Regu-
lation, second paragraph,
for a
review pursuant to that Article in order to have their
situation examined individually.

to present a request

(105) On the basis of the above, the definitive duties are set as

follows:

Company

Dumping margin

Dongguan Nanzha Leco Stationery

All other companies

27,1 %

47,4 %

the present

companies’)

investigation. Therefore,

(106) The individual company anti-dumping duty rate specified
in this Regulation was established on the basis of the
findings of
it
the situation found during the investigation
reflects
to that company. This duty rate (as
with respect
opposed to the country-wide duty applicable to ‘all
to
other
imports
country
concerned and produced by the company and thus by
Imported products
the specific legal entity mentioned.
produced by
specifically
mentioned in the operative part of this Regulation with
its name and address,
including entities related to that
specifically mentioned, cannot benefit from the rate and
shall be subject to the duty rate applicable to all ‘other
companies’.

exclusively applicable

is
products

company not

any other

originating

in the

thus

of

8. COLLECTION OF PROVISIONAL DUTIES

(109)

the amounts secured by way of

In view of the magnitude of the dumping margins found
and in the light of the level of the material injury caused
it is considered necessary
to the Community industry,
that
the provisional
anti-dumping duty, imposed by Commission Regulation
(EC) No 134/2006, should be collected at the rate of the
duty definitely imposed. Where the definitive duties are
lower than the provisional duties, only the amounts
secured at the level of the definitive duties should be
definitively collected,

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of
lever arch mechanisms for archiving sheets and
other documents in binders and files and falling within CN
code ex 8305 10 00 (TARIC code 8305 10 00 50) originating
in the People's Republic of China.

(e.g.

(107) Any claim requesting the application of the individual
following a
company anti-dumping duty rate
change in the name of
the entity or following the
setting up of new production or sales entities) should
be addressed to the Commission (1) forthwith with all
relevant information,
in particular any modification in
the company's activities linked to production, domestic
and export sales associated with, for example, that name
that change in the production and sales
change or

(1) European Commission

Directorate-General for Trade
Direction B, office J-79 5/16
1049 Brussels/Belgium

The rate of the definitive anti-dumping duty applicable to
2.
the net, free-at-Community frontier price, before duty, of the
products described in paragraph 1, and manufactured by the
companies listed below shall be as follows:

Manufacturer

Anti-dumping
duty

TARIC addi-
tional code

Dongguan Nanzha Leco Stationery

The First Industrial Camp, Nanzha,
Humen, Dongguan, China

27,1 %

A729

All other companies

47,4 %

A999

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Official Journal of the European Union

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Unless otherwise

3.
concerning customs duties shall apply.

specified,

the provisions

Article 2

in force

in the People's Republic of China shall be definitely collected at
the duty rate definitively imposed by the present Regulation.
The amounts secured in excess of the definitive rate of anti-
dumping duties shall be released.

Amounts secured by way of provisional anti-dumping duty
to Commission Regulation (EC) No 134/2006 on
pursuant
imports of
lever arch mechanisms for archiving sheets and
other documents in binders and files and falling within CN
code ex 8305 10 00 (TARIC code 8305 10 00 50) originating

Article 3

This Regulation shall enter into force on the day following that
of 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, 24 July 2006.

For the Council
The President

K. RAJAMÄKI