Notice of initiation of an anti-dumping proceeding concerning imports of dicyandiamide originating in the People's Republic of China
Date: 2006-08-17
Institutions: European Commission
Subjects: China, anti-dumping legislation, chemical salt, dumping, import, originating product

17.8.2006

EN

Official Journal of the European Union

C 193/3

Notice of

initiation of an anti-dumping proceeding concerning imports of dicyandiamide

originating in the People's Republic of China

(2006/C 193/03)

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), as last amended by
Regulation (EC) No 2117/2005 (2), alleging that imports of
dicyandiamide (DCD), 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 3 July 2006 by Degussa AG ('the
complainant'),the sole producer in the Community of dicyan-
diamide.

2. Product

The product allegedly being dumped is 1-cyanoguanidine
(dicyandiamide) (CAS RN 461-58-5) originating in the People's
Republic of China (‘the product concerned’), normally declared
within CN code 2926 20 00. This CN code is only given for
information.

3. Allegation of dumping

In the absence of production of the product concerned outside
the Community and the People's Republic of China and 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 the prices actually paid or payable in
the Community for the like product, duly adjusted where
necessary to include a reasonable profit margin.The allegation
of dumping is based on a comparison of normal value, thus
calculated, with the export prices 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.

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 340, 23.12.2005, p.17.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the level of prices charged by the Com-
munity industry, resulting in substantial adverse effects on the
overall performance 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) Sa mp l i ng

f or
Pe op l e 's R e p u b li c of Ch i na

e x p or te r s/ p r o du 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 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 turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 July 2005 to
30 June 2006,

— the turnover in local currency and the volume in
tonnes of
the product concerned sold on the
domestic market during the period 1 July 2005 to
30 June 2006,

— the total production in tonnes of

the product
concerned during the period 1 July 2005 to 30
June 2006,

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Official Journal of the European Union

17.8.2006

— whether the company intends to claim an individual
margin (1) (individual margins can only be claimed
by producers),

— the precise activities of the company with regard to

the production of the product concerned,

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.

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

companies (2)
selling (export and/or domestic) of
concerned,

(b) Questionnaires

— 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.

(ii) F i na l se le ct i on of th e sa mp le

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).

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

Companies included in the sample 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.

(1) 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.

(2) 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).

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to the 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-
tion of exporters/producers, to the importers, to any asso-
ciation of importers named in the complaint and to the
authorities of the exporting countries concerned.

Exporters/producers
in the People's Republic of China
claiming an individual margin, with a view to the applica-
tion of Articles 9(6) and 17(3) 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

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).

(d) Basis for determining normal value

In the absence of production of the product concerned
outside the Community and the People's Republic of China,
it is intended to base normal value,
in accordance with
Article 2(7)(a) of the basic Regulation, on any other reason-
able basis, i.e. the prices actually paid or payable in the
Interested parties are
Community for the like product.
hereby invited to comment on the appropriateness of this
basis for establishing normal value within the specific time
limit set in point 6(c).

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Official Journal of the European Union

C 193/5

(e) Market economy status

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
the basic Regulation. Exporters/
with Article 2(7)(b) of
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.

5.2. Procedure for assessment of Community interest

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

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.

(b) Specific time limit in respect of sampling

(i) The information specified in point 5.1(a)(i) 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
the European
Union.

Journal of

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(ii) 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 comments on the intended basis for estab-

lishing normal value

Parties to the investigation may wish to comment on the
appropriateness of basing normal value for the People's
Republic of China on prices actually paid or payable in the
European Community, as mentioned in point 5.1(d). 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

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

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.

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17.8.2006

7. Written submissions, questionnaire replies and cor-

8. Non-cooperation

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
accompanied by a non-confidential
Regulation,
version, which will be labelled ‘For inspection by interested
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.

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.

(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