Proposal for a Council Regulation of terminating the partial interim review of the anti-dumping measures applicable to imports of bicycles originating in the People's Republic of China
Date: 2006-10-11
Institutions: European Commission
Subjects: China, anti-dumping legislation, anti-dumping measure, import, originating product, two-wheeled vehicle

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.10.2006 
COM(2006) 584 final 

Proposal for a 

COUNCIL REGULATION 

of terminating the partial interim review of the anti-dumping measures applicable to 
imports of bicycles originating in the People's Republic of China 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of  22 
December 1995 on protection against dumped imports from countries not members of 
the European Community, as last amended by Council Regulation (EC) No 2117/2005 
of 21 December 2005 ("the basic Regulation") in the proceeding concerning imports of 
bicycles originating in the People's Republic of China 

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•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

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•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

On  10  January  2006,  the  Commission  initiated  on  its  own  initiative,  a  review 
investigation  of  imports  of  bicycles  originating  in  the  People's  Republic  of  China 

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(PRC). The interim review was limited in scope to dumping of one exporting producer 
of bicycles, Giant China Co. Ltd. (‘Giant China’).  

It  was  found  that  Giant  China  was  indirectly  related  to  another  manufacturer  of 
bicycles in the PRC which did not cooperate with the Commission. Therefore, it was 
not  possible  to  establish  whether  Giant  China  as  a  group  of  companies  fulfils  the 
conditions for Market Economy Treatment.  

Furthermore,  it  was  not  possible  to  ascertain  that  an  anti-dumping  duty  could  be 
imposed  on  dumped  imports  of  bicycles  of  all  sources  of  the  Giant  China  group  of 
companies.  

The company was informed by the Commission of the above conclusions. It declared 
its intention to no longer co-operate in this review proceeding.  

In light of the above, it is concluded that the partial interim review concerning imports 
into the Community of bicycles produced by Giant China should be terminated and the 
currently applicable measures should be maintained. 

Member States were consulted and supported this proposal. 

It  is  proposed  that  the  Council  adopt  the  attached  proposal  for  a  Regulation  which 
should  be  published  in  the  Official  Journal  as  soon  as  possible  and  not  later  than  9 
January 2007. 

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•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 2117/2005 of 21 December 2005.  

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•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

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The form of action is described in the above-mentioned basic Regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

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Proposed instruments: Regulation. 

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342 

Other means would not be adequate for the following reason(s). 

The above-mentioned basic Regulation does not foresee alternative options. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

of terminating the partial interim review of the anti-dumping measures applicable to 
imports of bicycles originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 Community1 (‘the basic 
Regulation’), and in particular Article 11(3) thereof, 

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

Whereas: 

1. EXISTING MEASURES 

(1) 

The measures currently in force are definitive anti-dumping duties imposed on imports 
of  bicycles  originating,  inter  alia,  in  the  People’s  Republic  of  China  (‘PRC’)  by 
Council Regulation (EC) No 1524/20002 (‘the original regulation’). 

2. PRESENT INVESTIGATION 

(2) 

(3) 

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On  10  January  2006,  the  Commission  initiated  by  a  notice  published  in  the  Official 
Journal  of  the  European  Union3,  on  its  own  initiative,  an  investigation  pursuant  to 
Article  11(3)  of  Council  Regulation  (EC)  No  384/964  (the  ‘basic  Regulation’).  The 
interim review is limited in scope to dumping aspects as far as one exporting producer 
of bicycles, Giant China Co. Ltd. (‘Giant China’ or ‘the company’) is concerned. 

There  was  sufficient  prima  facie  evidence  available  to  the  Commission  that  the 
circumstances  on  the  basis  of  which  the  existing  measures  were  established  have 
changed  and  that  these  changes  were  of  a  lasting  nature.  The  information  at  the 

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). 
OJ L 175, 14.7.2000, p. 39. Regulation as last amended by Regulation (EC) No 1095/2005 (OJ L 183, 
14.7.2005, p. 1). 
OJ C 5, 10.1.2006, p. 2 
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) 

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Commission’s  disposal  indicated  that  market  economy  conditions  prevail  for  the 
company  as  demonstrated  by  the  fact  that  it  appeared  to  fulfil  the  criteria  set  out  in 
Article 2(7)(c) of the basic Regulation. 

(4) 

The partial interim review was therefore initiated with a view to determine whether the 
company  operates  under  market  economy  conditions  as  defined  in  Article  2(7)(c)  of 
the basic Regulation or alternatively whether the company fulfils the requirements to 
have  an  individual  duty  established  in  accordance  with  Article  9(5)  of  the  basic 
Regulation and, if so, to determine the company’s individual margin of dumping and, 
should  dumping  be  found,  the  level  of  the  duty  to  which  its  imports  of  the  product 
concerned into the Community should be subject. 

3. PROCEDURE 

(5) 

(6) 

The  Commission  officially  advised  Giant  China,  the  Community  industry  and  the 
authorities  of  the  PRC  of  the  initiation  of  the  investigation.  Interested  parties  were 
given the opportunity to make their views known in writing and to request a hearing 
within the time limit set out in the notice of initiation. 

In  order  to  allow  the  company  to  submit  a  claim  for  market  economy  treatment 
(‘MET’)  or  individual  treatment  (‘IT’),  the  Commission  sent  claim  forms  to  the 
company  and  to  the  authorities  of  the  PRC.  Subsequently,  claims  for  MET  were 
received from Giant China and its related company. 

(7) 

A  verification  visit  was  carried  out  at  the  premises  of  Giant  China  and  its  related 
company Giant Chengdu Co., Ltd. 

4. THE PRODUCT CONCERNED 

(8) 

The product concerned is, as defined in  Article 1 of the  original  regulation, bicycles 
and other cycles (including delivery tricycles, but excluding unicycles), not motorised 
originating  in  the  People's  Republic  of  China  ('the  product  concerned'),  currently 
classifiable within CN codes ex 8712 00 10, 8712 00 30 and ex 8712 00 80.  

5. INVESTIGATION PERIOD 

(9) 

The investigation covered the period from 1 January 2005 to 31 December 2005. 

6. RESULTS OF THE INVESTIGATION 

(10) 

(11) 

It  was  found  during  the  investigation  that  the  applicant  was  related  to  another 
manufacturer of the product concerned in the PRC, which did, however, not submit a 
reply to the MET claim form within the deadline set in the notice of initiation.  

It has to be noted that it is the Commission’s consistent practice to examine whether a 
group of related companies, as a whole, fulfils the conditions for MET. This is deemed 
to be necessary to avoid that sales of a group of companies are channelled via one of 
the related companies in the group, should measures be imposed. Therefore, in cases 
where a subsidiary or any other related company is a producer and/or a seller of the 
product  concerned,  all  such  related  companies  have  to  provide  a  reply  to  the  MET 
claim form in order that an examination can be made as to whether they also meet the 
criteria set out in Article 2(7)(c) of the basic Regulation. Consequently, failure in that 

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respect  leads  to  the  result  that  it  cannot  be  established  that  the  group,  as  a  whole, 
fulfils all the conditions for MET. 

(12)  Furthermore, no determination as to whether the company fulfilled the requirements of 
Article 9(5) of the basic Regulation could be made as the facts available did not allow 
for such a determination.  

(13)  The company was informed by the Commission of the above conclusions. It declared 

its intention to no longer co-operate in this review proceeding.  

7. TERMINATION OF THE PROCEEDING 

(14) 

In light of the above, it is concluded that the partial interim review concerning imports 
into  the  Community  of  the  product  concerned  produced  by  Giant  China  should  be 
terminated and the measures as described in recital (1) should be maintained. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 
The partial interim review, pursuant to Article 11(3) of Council Regulation (EC) No 
384/96, with regard to the anti-dumping measures applicable to imports of bicycles produced 
by  Giant  China  Co.  Ltd.  and  originating  in  the  People’s  Republic  of  China  by  virtue  of 
Council Regulation (EC) No 1524/2000, as last amended by Regulation (EC) No 1095/2005, 
is hereby terminated.  

The anti-dumping measures currently in force with regard to Giant China Co. Ltd. are 

2. 
maintained. 

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

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