Council Regulation (EC) No 1583/2006 of 23 October 2006 imposing a definitive anti-dumping duty on imports of ethanolamines originating in the United States of America
Date: 2006-10-23
Institutions: Council of the European Union
Subjects: United States, anti-dumping duty, import, organic chemical, originating product

L 294/2

EN

Official Journal of the European Union

25.10.2006

COUNCIL REGULATION (EC) No 1583/2006

of 23 October 2006

imposing a definitive anti-dumping duty on imports of ethanolamines originating in the United
States of America

THE COUNCIL OF THE EUROPEAN UNION,

per tonnes of all types of ethanolamine. Two of the three
companies benefiting from an individual anti-dumping
duty were Dow Chemical Company and Union Carbide
Corporation.

Having regard to the Treaty
Community,

establishing the European

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) (here-
inafter referred to as the basic Regulation), and in particular
Articles 9 and 11(2) thereof,

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Measures in force

In February 1994, the Council
imposed, by Regulation
(EC) No 229/94 (2) definitive anti-dumping duties on
imports of ethanolamines
(product concerned) origi-
nating in the United States of America (USA). The
duties took the form of minimum-price-based variable
duties for the three types of ethanolamines,
i.e. mono-
ethanolamine (MEA), diethanolamine (DEA) and trietha-
nolamine (TEA).

request of

the Conseil

Following a
européen des
fédérations de l'industrie chimique (CEFIC) an expiry
and interim review pursuant
to Articles 11(2) and
11(3) of the basic Regulation was initiated in February
1999. By Regulation (EC) No 1603/2000 (3) the Council
concluded these reviews and imposed definitive anti-
dumping measures on imports of ethanolamines origi-
nating in the USA. The form of
the measures was
changed as they took the form of a specific fixed duty

(3)

(4)

(5)

(6)

since

After disinvestment of Dow Chemical Company's etha-
nolamine business into the company INEOS LLC, the
individual anti-dumping duty of EUR 69,40 per tonne
applicable to Dow Chemical Company was attributed to
INEOS LLC (4). However,
the Dow Chemical
Company acquired on 6 February 2001 all shares of
Union Carbide Corporation, a company benefiting from
an individual anti-dumping duty of EUR 59,25 per
tonne, the Dow Chemical Company is still active in the
ethanolamine business. The Union Carbide Corporation
still exists but has become part of the Dow Chemical
Company group and does no longer have any inde-
pendent production activities.

2. Request for an expiry review

impending expiry of

Following the publication in November 2004 of a notice
of
the anti-dumping measures
applicable to imports of ethanolamines originating in
the USA (5),
the Commission received on 25 April
2005 a request for a review pursuant to Article 11(2)
of the basic Regulation.

The request was lodged by CEFIC on behalf of producers
representing a major proportion, in this case more than
75 %, of the total Community production of ethano-
lamine.

The request was based on the grounds that expiry of the
measures would be likely to result in a continuation or
recurrence of dumping and injury to the Community
industry. Having determined, after consultation of the
Advisory Committee, that sufficient evidence existed for
the initiation of an expiry review,
the Commission
initiation an investigation (6)
initiated by notice of
pursuant to Article 11(2) of the basic Regulation.

(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 28, 2.2.1994, p. 40.
(3) OJ L 185, 25.7.2000, p. 1.

(4) OJ C 306, 10.12.2002, p. 2.
(5) OJ C 276, 11.11.2004, p. 2.
(6) OJ C 183, 26.7.2005, p. 13.

25.10.2006

EN

Official Journal of the European Union

L 294/3

(7)

(8)

(9)

(10)

3. Investigation

advised

services

officially

importers/traders, user

The Commission's
the
Community producers, the exporting producers in the
USA,
industries known to be
concerned, as well as the authorities of the USA of the
initiation of the review. 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.

The Commission's services sent questionnaires to all
parties known to be concerned and to those who
requested a questionnaire within the time limit set out
in the notice of initiation.

The Commission also gave the parties directly concerned
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.

Replies to the questionnaire were received from two
exporting producers in the USA and their nine related
importers in the Community, one related importer in
Switzerland, three Community producers (the applicant
Community producers), and one industrial user in the
Community. One Community producer did not
fully
reply to the questionnaire and only submitted succinct
information and two industrial users in the Community
made their views known.

(11)

The Commission's services sought and verified all the
information deemed necessary for the purpose of the
determination of
the likelihood of continuation or
recurrence of dumping and injury and for the determi-
nation of the Community interest. Verification visits were
carried out at the premises of the following companies:

(a) Applicant Community producers

BASF AG, Ludwigshafen, Germany

Innovene Europe Ltd, Staines, United Kingdom

SASOL GmbH, Marl, Germany

(b) Exporting producers in the USA

The Dow Chemical Company, Midland, Michigan and
Houston, Texas, USA

(c) Related importers in the Community

Dow Chemical Iberica SL, Tarragona, Spain

INEOS Oxide Ltd, Antwerp, Belgium

(12)

(13)

(14)

(d) Related importer in Switzerland

Dow Europe GmbH, Horgen, Switzerland

(e)

Industrial users in the Community

Degussa Goldschmidt Espana SA, Granollers, Spain

4. Investigation period

the

regarding

investigation

continuation

The
or
recurrence of dumping and injury covered the period
from 1 July 2004 to 30 June 2005 (the RIP). The exam-
ination of the trends relevant for the assessment of a
likelihood of a continuation or
injury
covered the period from 1 January 2002 up to the end
of the RIP (period considered).

recurrence of

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

types of

The product concerned is the same as that covered by
the previous investigations. Ethanolamines are obtained
by making ethylene oxide (EO),
itself a result of a
reaction of ethylene and oxygen, react with ammonia.
This synthesis leads to three competing reactions and
to three different
ethanolamines: mono-
ethanolamine (MEA), diethanolamine (DEA) and trietha-
nolamine (TEA), depending on how many times EO is
is
bound. The maximum number of combinations
limited by the number of hydrogen elements
in
ammonia, namely three. The proportions of the three
total output are determined by the
types
production installation design, but can,
to a certain
extent, be controlled by the ammonia/EO (the molar
ratio). Community installations are typically based on
naphtha as energy carrier, whereas US installations are
natural gas based.

in the

The product concerned is used as an intermediate and/or
additive for surfactants used in detergents and personal
care products, cosmetics, fertilisers and crop protection
agents (glyphosate), corrosion inhibitors, lubrication oils,
textile auxiliaries and fabric softeners (esterquats), photo-
graphic chemicals, paper and metalworks, as a grinding
and binding aid for cement production and as a gas
by
scrubber
removing acids). Since late 2004, beginning 2005, the
product is also increasingly used for wood treatment.
Finally, the product can also be used by the manufac-
turers themselves or by their related manufacturers in the
production of ethylene amines.

absorption aid

(sweetening

gas

the

L 294/4

EN

Official Journal of the European Union

25.10.2006

2. Like product

(15) As in the previous investigations, it was shown that the
product concerned produced in the USA and sold to the
Community is identical in terms of physical and technical
characteristics to the product produced and sold in the
Community by the Community producers and that there
is no difference in use between those products. It has
further
concerned
produced in the USA and sold to the Community is
identical
sold on the US domestic market.
Therefore, all these products must be considered to be
like products within the meaning of Article 1(4) of the
basic Regulation.

been found

product

to that

that

the

C. LIKELIHOOD OF A CONTINUATION OR
RECURRENCE OF DUMPING

(16)

In accordance with Article 11(2) of the basic Regulation,
it was examined whether dumping was currently taking
place and,
the
measures would be likely to lead to a continuation or
recurrence of dumping.

if so, whether or not

the expiry of

which are related. As a consequence, and in accordance
with Article 2(9) of the basic Regulation, export prices
were constructed on the basis of the prices at which the
imported product was
resold to independent
first
customers in the Community. Allowance was made for
all
incurred between importation and resale,
including selling, general and administrative costs and
the profit realised in the Community by the importing
companies during the RIP.

costs

Comparison

(21)

The normal value was compared with the average export
price for each type of the product concerned, on an ex-
works basis and at the same level of trade. In accordance
with Article 2(10) of the basic Regulation, and for the
purpose of ensuring a fair comparison, differences in
factors which were claimed and demonstrated to affect
price and price comparability were taken into account.
Adjustments were made for inland and ocean freight,
deferred rebates, handling and packaging costs, credit
costs and import duties, which were all deducted from
the resale prices in order to arrive at an ex-works basis.

1. Preliminary remarks

(17) Of

the four US exporting producers named in the

Dumping margin

complaint, two did cooperate in the investigation.

(22)

(18)

The two cooperating exporting producers represented
100 % of imports to the Community during the RIP,
Imports into the
which amounted to 41 000 tonnes.
Community of
the product concerned originating in
the USA represented 16,7 % of Community consumption
during the RIP down from 29 % during the previous
investigation period (1998).

In accordance with Article 2(11) of the basic Regulation,
the dumping margin was established per product type on
the basis of a comparison of
the weighted average
normal value with the weighted average export prices
at the same level of trade. This comparison showed the
existence of dumping during the RIP, even if at a lower
review. The
level
weighted average dumping margin expressed as
a
percentage of the cif value at the Community frontier
was 4,8 % for INEOS and 20,3 % for Dow Chemical.

than established in the previous

2. Dumping of imports during the RIP

3. Development of

imports should measures be

Normal value

(19) With regard to the two cooperating US exporting
producers, normal value was established for each type
of the product concerned, based on the price paid or
in the USA by
payable on the domestic market
unrelated customers pursuant
the
basic Regulation, since these sales were found to have
been made in sufficient quantities and in the ordinary
course of trade.

to Article 2(1) of

Export price

(20) As in the original and in the previous review investi-
the two
gation,
cooperating US
exported the
product concerned to the Community via companies

this investigation showed again that

exporting producers

repealed

Preliminary remarks

(23)

Further to the analysis of
the existence of dumping
during the RIP, the likelihood of the continuation of
dumping was examined.

Level of dumping in case the measures are repealed

(24)

The removal of the measures would allow exporters to
reduce their export prices. A reduction of export prices
would make the US product more attractive on the
Community market. If the export prices were reduced
commensurate to the level of the duties, the dumping
margins observed during the RIP would be 13,4 % for
INEOS and 28,3 % for Dow Chemical.

25.10.2006

EN

Official Journal of the European Union

L 294/5

(25)

Further room for exports to the Community market because of
unused US production capacity

It is estimated that the unused production capacity in the
US during the RIP is about 90 000 tonnes. This was
information from the two
calculated on the basis of
cooperating exporting producers as well as information
from leading market journals. Compared to an estimated
installed total capacity in the USA of 650 000 tonnes,
total estimated fulfilled demand and captive use of
560 000 tonnes implies a capacity utilisation rate of
86 %, which is rather low given the favourable market
conditions during the RIP. The relatively low capacity
utilisation rate was
consequence of operational
in certain production facilities. The spare
problems
capacity of 90 000 tonnes should be compared to the
volume of exports from the US to the Community
during the RIP (41 088 tonnes) and total Community
consumption (246 670 tonnes).
In other words, there
is considerable potential to increase exports from the
US and take over a large part of
the Community
market. The propensity of
increased exports to the
Community is further supported by the 45 000 tonnes
capacity expansion ongoing in 2006 in Mexico and
Brazil, both important export markets
the US
producers.

for

a

(26)

To conclude, there is some spare capacity available which
could be used to produce more ethanolamine and to sell
it on the Community market should measures be lifted.

(27)

Evolution of the prices in the Community market and in the
exporting country market

The ethanolamine market has been characterised by
strong growth in the demand for DEA in the years
2000-2001,
triggered by the use of DEA in the
production of glyphosate herbicides, which are used in
a process to allow genetically modified crops to resist
such herbicides. The demand for TEA is specifically
driven by the use in the cement sector and by the
producers of fabric softeners. Since 2004, the market
for MEA has increased considerably following a US Regu-
lation, effective 1 January 2005, prohibiting the use of
alternative metal based products for wood treatment,
causing an additional estimated demand of MEA of
80 000 tonnes. As a consequence, the worldwide price
level of ethanolamines is high because of high demand.

(28)

than average

The investigation showed that US domestic prices are on
sales prices on the
average higher
Community market.
Industrial users seem to obtain
similar conditions on both markets as they are often
multinational companies that negotiate their sourcing
on a worldwide basis and select suppliers
that are
capable of delivering on a similar scale. However, US

types of ethanolamines were
domestic price for all
found to be higher when charged to traders and distri-
butors. This type of sales on the US domestic market is
typically conducted on a spot basis, whereas sales on the
Community market are rather established on a fixed term
contract basis. This implies that sales prices on the
Community are set for a longer period and are more
stable.

Sales to traders and distributors by the two cooperating
exporting producers represent only 13 % of the volumes
sold on the US domestic market and 32 % of sales on
the Community market, but the US domestic prices were
on average 35 % higher than the Community prices for
this level of trade. This supported the finding that, given
the spot nature of sales to traders and distributors, US
domestic prices are adapting more rapidly to price fluc-
tuations. Therefore, in a context of increasing prices, US
domestic prices will have a tendency to be relatively
higher than Community prices. On the other hand, this
level of trade represents the smaller part of sales on both
the US domestic and Community markets.

the termination of

For industrial users, which constitute the majority of
customers,
the measures would
probably not influence the price level at which ethano-
lamine is sold in the Community market, since it was
observed that the burden of the measures was carried by
the US exporting producers. In that scenario, the latter
may achieve more profitable sales and would have an
incentive to increase exports to the Community market.
these industrial users might use the dis-
However,
appearance of
to
the measures as a bargaining tool
obtain lower prices from both US exporting producers
and the Community industry.

Relationship between the US export prices to third countries
and to the Community

Export prices of the product concerned to the other main
export markets, namely to Canada and South America,
show no regular pattern. Sales prices are sometimes
lower and sometimes higher than in the USA and to
the Community market
sales
conditions. Lower volumes
shipped typically entail
higher sales prices.

depending on the

In summary, for both cooperating exporting producers,
the US market in principle remains the most important
sales market. However, given that 17 % of production
was exported during the RIP, sales to the Community
and to the rest of
the world continue to play an
important role in the overall use and profitability of
production capacities installed.

(29)

(30)

(31)

(32)

L 294/6

EN

Official Journal of the European Union

25.10.2006

(33)

Possible short-term development of imports

of

least

remain at

clients. A reduction

In the short term, as regards the two cooperating US
producers, it can be expected that their import volumes
will
Indeed, even with the
stable.
measures in force and notwithstanding the attractiveness
of the US market, they have continued to serve their
Community-based
export
expected from the US
volumes may possibly be
Innovene, with
producer INEOS after the takeover of
its production facilities in the Community, once the
company would have de-bottlenecked the
acquired
production facilities and have expanded by installing
new capacity in the Community, which is not expected
to become operational before 2008. At the same time it
is expected that the US exporting producers will have
repaired the hurricane damage faced in the second half
of 2005 and become fully operational again in the
second half of 2006/beginning 2007, thereby producing
sold to the
additional quantities which may be
Community market.

(34) As

to the non-cooperating US producers, which
accounted for 27 % of US production capacity during
they take up
the RIP,
exports to the Community again, should measures be
allowed to lapse.

it cannot be excluded that

Possible development of worldwide capacity and demand

the world.

(35) An analysis was also carried out of possible medium
term (up to 5 years) developments of demand and
production capacity in the Community, the USA and
the rest of
It was also analysed how the
expected situation on demand and supply would affect
the price levels in the Community. All figures in the
following recitals are based on information sourced
from the companies BASF, Dow and INEOS and the
chemical
leading reference publications by
PCI and Tecnon.

industry's

mately 40 000 tonnes. The inverse situation existed in
the USA, where the existing capacity was some 90 000
tonnes higher than the effective use and sale of
the
product, which nevertheless did not negatively affect
the high price levels, because of operational production
problems limiting supply to the customers. Confronting
the projected growth rates with the announced capacity
expansions, some excess capacity over demand on the
Community market can be expected as from 2008,
in
particular because of the likely implementation of INEOS'
investment plans
in the Community, which would
increase the installed capacity in the Community by
one quarter
to a third. Such capacity expansion is
expected not to become operational before early 2008.
Although such increase in capacity might at the same
time be partially compensated by a
reduction of
imports into the Community and increased export sales
by Community producers,
total
installed capacity in the Community by all producers
would surpass demand on the Community market
during 2008.

is expected that

it

(38) On the basis of evidence at

the disposal of

the
Commission, the current excess capacity in the USA is
expected to continue at least in the short term because
domestic demand, although growing, will not absorb the
spare capacity that will become operational again. Over a
time frame up to 2010, excess capacity is
longer
expected to disappear, reducing the incentive for US
producers
the same time there are
predictions of substantial shortages in Asia. This is illu-
strated by the fact that Dow Chemical has formed a joint
venture with Petronas, called Optimal, and has installed
75 000 tonnes capacity in Malaysia, dedicated to serve
the Asian ethanolamine market.

to export. At

(36)

Taking into account
the projections of both US and
Community producers on future demand and production
capacity, growth on the Community market is foreseen
to be lower than in the rest of the world. The projected
Community average growth rate on an annual basis
stands at around 3 % in the medium term, compared
to 7 % in Asia and 4,2 % projected worldwide.

(37)

In 2004, demand on the European market exceeded
Community installed production capacity by approxi-

(39) More

likely to have

in general, by 2010, worldwide production
capacity is
increased from around
1 300 000 tonnes to 1 785 000 tonnes. This includes
new capacity installed in the Community (+ 205 000),
in the USA (+ 80 000), Saudi Arabia (+100 000) and
Asia (+ 100 000). World demand at a projected growth
rate of 4,2 % would by 2010 have increased to between
1 550 000 tonnes and 1 700 000 tonnes. Taking into
account that some capacity surplus is always absorbed
by stoppages for maintenance and that therefore a certain
buffer is needed, the projection for 2010 shows excess
capacity in the Community, equilibrium in the USA and
shortage in Asia and the rest of the world. In sum, the
various capacity expansions do not point to a propensity
for US exporting producers to dump on the Community
market because of
supply and
It should however be
demand on a worldwide level.
noted that
referring to devel-
this is an assessment
opments in the medium term, i.e. 2008 to 2010.

the likely match of

25.10.2006

EN

Official Journal of the European Union

L 294/7

Conclusion on the likelihood of a continuation or recurrence of
dumping

Community industry within the meaning of Article 4(1)
and Article 5(4) of the basic Regulation.

(40)

It is recalled that dumping during the RIP was found to
exist for both cooperating exporting producers, however
at a lower level than in the previous review investigation.

(46)

(41)

Compared to the previous review investigation, market
share of US imports decreased from 29 % to 16,7 %.
There appears to be 90 000 tonnes spare capacity in
the USA, the low utilisation rate during the IP being a
consequence of
temporary events, and the use of an
estimated 27 % of US installed capacity could not be
investigated due to a lack of cooperation. It cannot be
entirely ruled out that these non-cooperating producers
would return to the Community market at dumped
prices if the measures were allowed to lapse. Although
demand on the US market is expected to be stronger
than in the Community,
the excess capacity in the
USA is expected only to be absorbed in the medium
term. Moreover,
in order to maintain the profitability
of production capacities installed, there currently exists
an incentive for all producers to increase their sales to
the Community market, should measures be repealed.

(42)

To conclude, there is a likelihood of continuation of
dumping and a risk of an increase of the volume of
imports possibly exerting a downward pressure on
prices in the Community, at least in the short term, if
measures were repealed.

The investigation showed that, as in the previous review
investigation, part of the production of ethanolamine in
the Community is intended for internal, or captive, use.
The share is estimated at around one third of
total
Community production, as it was during the previous
review investigation. Captive production was found at
the premises of one of the producers included in the
Community industry. This producer runs a plant which
is earmarked and used for the sole purpose of captive
the applicant
use. The investigation confirmed that
Community producers do not purchase the product
concerned for trading purposes or for their captive use
from independent parties, either inside or outside the
Community. Ethanolamine for captive use is therefore
not considered to be in competition with ethanolamine
available on the Community market (hereafter the free
market).

E. SITUATION ON THE COMMUNITY MARKET

1. Consumption on the Community market

Community
consumption

2002

2003

2004

RIP

Total tonnes

283 992

331 194

358 830

366 645

Index

100

117

126

129

Captive tonnes

97 768

107 539

118 584

119 975

D. DEFINITION OF THE COMMUNITY INDUSTRY

Index

100

110

121

123

(43)

(44)

The three applicant Community producers
fully co-
operated in the investigation. During the RIP, they repre-
sented 80 % of the Community production. There is one
supporting Community producer which
additional
its
supplied
production but which did not
full
questionnaire. Hence, he had to be considered as
non-cooperating.

concerning
reply to the

information in particular

should be noted that

It
since Regulation (EC) No
1603/2000 publishing the measures that are currently
in force, Union Carbide Ltd (UK), which was taken
over by the Dow Chemical Company, no longer
produces ethanolamine in the Community. Furthermore,
BP Chemicals changed its name to Innovene and Condea
changed its name to Sasol. Finally, INEOS Oxide Ltd, the
UK-based parent company of
INEOS Americas LLC,
acquired Innovene on 16 December 2005. Both
companies,
Innovene,
INEOS Americas
continued to fully cooperate in the proceeding.

LLC and

(45) On this basis the three Community producers are BASF
the

and they constitute

and Sasol

Innovene

AG,

Free market
tonnes

186 224

223 655

240 246

246 670

Index

100

120

129

132

Source: Eurostat statistics and questionnaire replies.

(47)

from third countries

The determination of total Community consumption was
based on the combination of production minus the
exports of all producers in the Community and the
imports
into the Community
market. Compared to the year 2002, consumption
during the RIP has increased by 29 % or by 83 000
tonnes. The growth was especially pronounced between
2002 and 2003 (+ 17 % or + 48 000 tonnes) but
it
continued during 2004 and the RIP, although at a
lower pace. Consumption has been increasing as a conse-
quence of increased demand for ethanolamines, based on
a wide and expanding field of applications. The most
important demand drivers since 2002 have been DEA
for glyphosate production, TEA for esterquats and MEA
for wood treatment.

L 294/8

EN

Official Journal of the European Union

25.10.2006

(48)

Free market consumption increased by 32 % (or by
60 000 tonnes) over
the period considered with an
increase of 20 % (or 37 000 tonnes) between 2002
and 2003.

Concerning the captive market, consumption increased
by 23 % or by 22 000 tonnes due to increased use of
ethanolamines
other
chemicals.

production

processes

of

in

2. Imports from the USA, volume, market share and

import prices

US Imports

2002

2003

2004

RIP

Tonnes

Index

46 075

40 576

40 512

41 088

(52)

100

88

88

89

Market share

24,7 %

18,1 %

16,9 %

16,7 %

Import price
EUR/tonne

979,63

915,15

975,09

995,55

Index

100

93

100

102

Source: Eurostat statistics and questionnaire replies.

was carried out and explained in recital (53) below. Over
the period considered, the average import price increased
modestly by 2 %. All imports into the Community origi-
nating in the USA were made via related importers and
the import prices therefore are transfer prices within the
company's group. In the previous review investigation,
such import prices were found to have been artificially
set in order to at least partially absorb the anti-dumping
measures then in force. The related importers in the
the
Community
losses during
former RIP and the margins
they realised between
purchase price (actual import price) and resale price on
the Community market were not sufficient to cover the
costs incurred between importation and resale. This was
the reason that the previous review investigation led to
the revision of the form of the anti-dumping measures
and that
tonne were
imposed.

specific fixed duty rates per

incurred significant

current

In the
review investigation, both the US
exporting producers and their related importers in the
Community were found to have realised profits during
the RIP and the related importers' margins were found to
have conformed to market conditions. The sales price
cost of
levels
production
all
for
companies involved in markets characterised by high
sales prices.

compared to normal value
adequate

and/or
profits

allowed

for

The volume of imports into the Community from the
USA decreased by 12 % between 2002 and 2003 and
has remained at that level since. The market share was
determined on the basis of free market consumption in
the Community and has declined from 24,7 % to 16,7 %
over the period considered, which constitutes a loss of 8
percentage points. The drop of imports and market share
between 2002 and 2003 coincided with a 7 % overall
decline of the average import price. Between 2002 and
2003, the US exporting producers did not participate in
the expansion of the free market consumption in the
Community. Also after 2003,
exporting
producers did not increase their market share, although
import prices increased again. In a sellers' market, such
increased attractiveness would normally have caused
additional sales, but US exporting producers did not
come back to the Community market as expected,
because of operational problems
and even more
attractive conditions on the US domestic market.

the US

import

It should be noted that the above prices were collected
statistics. They do not
from the Eurostat
distinguish the product mix and contain various sales
conditions which cannot be compared to those applied
by other operators on the Community market. A precise
price
and
Community producers' prices at the same level of trade

comparison

between

dumped

imports

(53)

import prices at Community
The comparison of cif
including
frontier charged to independent customers
anti-dumping duties with the Community industry's ex-
work prices, for the same product types and on the same
level of trade, led to the establishment of undercutting of
the Community industry's sales prices by between 7,3 %
and 17,5 %.

3. Imports

from other
market share and import prices

third countries, volume,

Imports from other
third countries

2002

2003

2004

RIP

Tonnes

Index

17 596

18 688

12 276

8 773

100

106

70

50

Market share

9,4 %

8,4 %

3,4 %

2,4 %

Import price
EUR/tonne

1 034,23

970,75

982,67

955,24

Index

100

94

95

92

Source: Eurostat statistics.

(49)

(50)

(51)

25.10.2006

EN

Official Journal of the European Union

L 294/9

(54)

share of

third countries halved over

the
Imports from other
period considered. The market
the main
exporting other countries, mainly Russia and Iran, has
indeed become marginal. According
to the user
industry, this decreasing trend is due to the fact that it
was difficult to obtain exactly the requested quantities at
a precise delivery date in the two aforementioned
countries.

4. Economic situation of the Community industry

Output, production capacity and capacity utilisation

2002

2003

2004

RIP

206 481

242 350

279 307

290 625

Production in
tonnes

Index

100

117

135

141

Capacity in
tonnes

Index

Capacity
utilisation

263 320

273 820

302 070

311 820

(58)

100

104

115

118

78,4 %

88,5 %

92,5 %

93,2 %

(55) Over the period considered, production has increased by
41 %. At the same time capacity was extended by 18 %,
leading to an improvement of capacity utilisation from
78,4 % to 93,2 %.

Sales volume, market share and sales price

2002

2003

2004

RIP

Sales volume

130 214

144 103

167 054

175 953

Index

100

111

128

135

Market share in
total consumption
(including captive
use)

Market share in
free market
consumption

Sales price
EUR/tonne
(free market sales)

45,9 %

43,5 %

46,6 %

48,0 %

69,9 %

64,4 %

69,5 %

71,3 %

801,77

758,49

835,68

936,08

Index

100

95

104

117

The Community industry's sales volume to unrelated
customers increased by 35 % over the period considered.
Both the market share of total Community consumption
and of free market consumption indicate that after a loss
of market share between 2002 and 2003, market share
has stabilised and stood at 48 % in relation to total
consumption respectively 71,3 % in the free market
during the RIP. The average price level of sales to
unrelated customers
followed a similar pattern and
after a decrease of 5 % between 2002 and 2003, the
price level in the free market during the RIP was 17 %
higher than in 2002.

(56)

(57)

is marginal

The production capacity increase between 2002 and
2003
efficiency
improvements. From 2004 on, more intensive de-bottle-
necking and new capacity expansions can be observed.

reflects

some

and

(59)

Compared to the price level during the RIP of
the
previous review investigation, which coincided with the
calendar year 1998, sales prices in 2004 and during the
current RIP were on average respectively 22,7 % and
37,5 % higher than in 1998. No invoices are issued
with regard to the production destined for captive
consumption which is used in integrated production
facilities.

Inventories

Inventories

2002

2003

2004

RIP

Tonnes

Index

9 543

10 883

10 228

7 596

100

114

107

80

(60)

The level of inventories is compared at the end of each
year 2002 to 2004 and varies to a certain degree
depending upon orders. The level at the end of the RIP
is lower, but shows the situation at 30 June 2005 and is
therefore not properly comparable with year end inven-
tories. This is because of
in view of
somewhat lower demand from industrial users during
the
lower
production and maintenance of the production facilities.

summer months,

companies

schedule

the fact

that,

Factors affecting Community prices

recent

Consumption has been continually increasing over the
last decade, from 152 000 tonnes in 1995 to 367 000
tonnes during the RIP, which represents an annual
increase of 9,7 %. The more
increase of
consumption over the period considered, from 2002 to
the RIP, was 10,7 % on an annual basis, compared to a
7 % annual
increase of capacity. This evolution has
supported high price levels in the Community, at the
same time pushing the Community industry towards
an important improvement of capacity utilisation rates
leading to a 14,5 % annual
from 78,4 % to 93,2 %,
increase of production.
In absolute terms production
increased by 84 000 tonnes compared to an increase
of
and capacity
expanded by only 48 500 tonnes.

consumption of 83 000 tonnes,

L 294/10

EN

Official Journal of the European Union

25.10.2006

2002

2003

2004

RIP

Profitability

Average cost of
production EUR/tonne

779,53

749,85

746,84

790,60

Index

100

96

96

101

(61) High and increasing demand compared to a lower pace
of capacity expansion and overall reduction of imports
have sustained the price level of ethanolamine in the
Community. Moreover,
the sales margins have hardly
been influenced by the full cost of production per
tonne over the period considered, as the price increase
was mainly due to market developments. The increase of
cost of production by 5,9 % between 2004 and the RIP
was the consequence of an increasing naphta price,
which is an oil based energy driver used in the
production of ethylene oxide, the main raw material in
the production of ethanolamine in the Community.

Employment, productivity and wages

2002

2003

2004

102

100

103

101

101

99

RIP

102

99

2 016

2 354

2 755

2 861

Employment

Index

Productivity
tonnes per
employee

Index

100

117

137

142

Sales to unrelated
parties in the
Community

Sales value in
EUR 1 000

2002

2003

2004

RIP

104 402 109 301 139 603 164 705

Index

100

105

134

158

Cost of
production in
EUR 1 000

101 506 108 056 124 763 139 100

Index

100

106

123

137

Profitability

2,8 %

1,1 %

10,6 %

15,5 %

(64)

the period considered on free
The profitability over
the product concerned to unrelated
market sales of
parties
in the Community increased from 2,8 % in
2002 to 15,5 % during the RIP, after a decline to
1,1 % in 2003. This improvement of profitability since
2003 is to be seen in the context of stable imports from
the USA, and an increasing demand, with a consequence
of both increased sales volumes and an increased sales
price level, which during 2004 and the RIP were more
pronounced than the increase of the cost of production.

Wages in
EUR 1 000

6 860

7 526

8 018

7 598

Investments, return on investment and ability to raise capital

Index

100

110

117

111

Average wage per
employee (EUR)

66 976

73 105

79 097

74 797

Investments in
EUR 1 000

2002

2003

2004

RIP

1 170

9 975

687 478 388 476

Index

100

109

118

112

Index

100

852

58 750

33 198

Return on
investment

2,2 %

0,9 %

10,2 %

17,6 %

(62)

Employment at the level of the Community industry for
the like product
remained stable during the period
considered. The production process is largely automated
and therefore not labour-intensive. At the same time, due
to constant improvements and de-bottlenecking of the
production installations, productivity increased by 42 %
over the period considered.

(65)

(63) Over the period considered, wages increased by 11 %
with a peak in 2004 which can be attributed to restruc-
turing
the
redundancies
complaining Community producers. The average wage
per employee followed a similar pattern.

by one of

efforts

and

The price levels obtained in the Community determine
whether companies are inclined to build additional
capacity. Over the period 2002 to 2003, return on
investment was not considered sufficiently high in
order to warrant the installation of additional production
installations. As a consequence, companies limited them-
efficiency
to
selves
de-bottlenecking
improvements. The
continuously increasing demand
combined with only limited capacity increase has
supported higher price levels,
that
since 2004 it became again realistic to implement
previously shelved investment projects.

to such an extent

some

and

25.10.2006

EN

Official Journal of the European Union

L 294/11

(66)

Concerning the ability to raise capital, it should be noted
that the ethanolamine production is only a small part of
the overall production of chemical products by the
Community industry, which mostly represent major
international chemical companies, which enjoy high
overall levels of cash flow and auto-financing and credit-
worthiness. Thus, the Community industry in general did
not have major problems in raising capital.

(71)

to third
The Community industry's export volumes
countries increased by 11 % over the period considered
which corresponds to 4 % on average on an annual basis,
which is largely in line with the expansion of world
consumption. It illustrates that the Community industry
is competitive on world markets.

Cash flow

Cash flow in
EUR 1 000

2002

2003

2004

RIP

(72)

4 842

3 301

16 863

27 596

Index

100

68

348

570

Cash flow on
turnover

4,6 %

3,0 %

12,1 %

16,6 %

(73)

(67)

The evolution of the cash flow is a further illustration of
the link between price levels, profitability and the return
on investment. After low cash flow levels in 2002 and
2003, the Community industry returned to double-digit
figures for the cash flow in relation to turnover since
2004 and its level for most companies is sufficiently
high in order to direct funding towards new investments
in the ethanolamines business.

Growth

(68)

The Community industry benefited from the growth of
the market over the period considered, which is illu-
strated by the increase of
total
consumption from 45,9 % to 48 % and of its market
share of free consumption from 69,9 % to 71,3 %.

its market share of

(74)

Magnitude of the dumping margin

(69) Dumping continued during the RIP, even if at

levels
lower than established in the previous review investi-
gation.

Recovery from the effects of past dumping

(70) As demonstrated above, the Community industry indeed
in

has had the chance to recover from past dumping,
particular in terms of sales prices and profitability.

(75)

Export activity of the Community industry

2002

2003

2004

RIP

15 631

15 278

16 709

17 428

Export volume
tonnes

Index

100

98

107

111

5. Conclusion on the situation on the Community

market

volume of

ethanolamine

The
consumed on the
Community market expanded by 29 % while imports
from the USA declined by 11 % over
the period
considered. At the same time, the Community industry
could increase its sales volume and thereby stabilise and
even slightly increase its market share.

production

production

The economic situation of
the Community industry
improved with respect to most of the economic indi-
cators:
capacity
(+ 41 %),
(+ 18 %) and capacity utilisation, sales volume (+ 35 %
or + 45 000 tonnes) and value (+ 58 %), productivity,
market share (+ 2 percentage points), cash flow and prof-
investments and return on investment. The
itability,
development of
tonne
the costs of production per
remained below the development of sales prices. The
Community industry moreover benefited from the
growth of the Community market and kept pace with
world demand evolution as its export activity increased
by 11 % in volume.

To conclude, in view of the positive development of the
indicators pertaining to the Community industry,
it is
considered to be in a good situation. It could not be
established
continued.
Therefore, it was examined whether there is a likelihood
of recurrence of injury should measures be allowed to
lapse.

that material

injury

has

F. LIKELIHOOD OF A RECURRENCE OF INJURY

Summary of the analysis of the likelihood of the continuation
of dumping and of the recurrence of injurious dumping

reduced

if
lead

the measures could,
commensurately,

It is recalled that exporting producers in the USA were
still practicing dumping during the RIP, even if at a
reduced level compared to the previous investigation.
the export prices
Removal of
were
dumping
margins between 13,4 % and 28,3 % for the cooperating
exporting producers, whereas the behaviour of the non-
the
cooperating producers,
imports in the original investigation, remains unknown.
The latter, however, being subject to the highest anti-
dumping measures, would have the highest incentive to
return to the Community market,
if measures were
terminated.

represented 42 % of

that

to

L 294/12

EN

Official Journal of the European Union

25.10.2006

(76) At the same time it is estimated that a spare capacity of
90 000 tonnes exists currently in the US market, once
the operational problems and the effect of the hurricane
will have been remedied.

(77)

(78)

(79)

(80)

It was therefore concluded that there is a likelihood of
continuation of dumping and a risk of an increase of the
volume of
imports exerting a downward pressure on
prices in the Community, at least in the short term, if
measures were repealed.

and would negatively

level
industry's profitability

is normally the case that an increase of dumped
It
imports would exercise a downward pressure on the
the
sales price
Community
its
financial recovery that was observed during the period
considered. In this context, it should be noted that the
level of undercutting would substantially increase should
measures be repealed.

affect
as

as well

Expected shift of US production from MEG to ethanolamine

It is expected that US producers will to a certain extent
redirect the use of the main raw material ethylene oxide
(EO) from the production of monoethyleneglycol (MEG)
to the production of ethanolamine.

The raw material EO is used in the production of other
chemical products or derivatives, mostly ethylene glycols
and in particular monoethyleneglycol (MEG). EO-capacity
is limited to only a few locations in the world given its
highly explosive and toxic nature, subject
to special
environmental, health, security and defence regulations.
As a consequence, the allocation of EO depends upon the
market prices of its derivatives.

Asia, where the Chinese textile and polyester activities
already take more
than 30 % of worldwide MEG
consumption. This would be the case in particular for
one of the non-cooperating exporting producers which is
currently an important exporter of MEG to Asia. As a
consequence, it can be expected that the US producers
would turn towards the production of more ethano-
lamine, thereby exerting a downward pressure on prices
and creating a need to find additional clients outside of
the US domestic market and thus resorting to the
Community market.

Evolution of prices and possibility to adapt prices to cost of
production after the RIP

(83)

Bearing in mind the current stable situation of
the
Community industry, the likelihood of a recurrence of
injury caused by a downward pressure on prices also
depends upon the magnitude of such price decrease
and the evolution of other factors, such as the cost of
production and the possibility to pass cost increases on
to clients. In this respect, it was investigated what was
the situation after the RIP.

(84) Additional data was collected in order to verify whether
the conclusions drawn on the basis of the analysis of the
period considered and more in particular
the RIP
remained valid during the second half of 2005 and the
first five months of 2006.

(85) During the second semester of 2005, prices on the
Community market
types of ethanolamines
for all
continued to rise by between 11,4 % and 14,7 %. The
average price increase on the US market was even more
pronounced with 22 %. Hurricane damage in Louisiana
was primarily responsible for occasional US domestic
market shortages.

(86)

(87)

(81) Historically, a certain hierarchy existed in price levels: the
ethylene price was higher than MEG and the price for
ethanolamine was higher than both ethylene and MEG
prices. However, since the end of 2003, MEG prices in
the Community significantly increased and they became
higher than ethylene prices and at certain periods of time
even higher than ethanolamine prices. As a consequence,
EO has been increasingly redirected towards MEG
production, thereby creating a relative scarcity for EO
in the market, at the same time contributing to keep
ethanolamine prices at a relatively high level.

(82) However, Middle East countries are currently investing in
naphta-based ethylene glycol capacity. New production
capacity of MEG is expected to become operational
in
the short term in Kuwait (with participation of Dow
Chemical), Saudi Arabia and Iran. Given the fact that
naphta is an oil-based material,
these countries will
have a clear comparative advantage in terms of cost. It
is therefore reasonable to expect that the MEG price will
go down in the short term and, that US producers will
have reduced possibilities to sell MEG in particular in

This evolution continued into the first five months of
2006 but at a remarkably lower pace: prices on the
Community market rose between 2,8 % and 4 % and
on the US domestic market by 9,9 %,
illustrating a
gradual curing of
the local operational and damage
problems.

Compared to the RIP, oil prices increased considerably
during the second half of 2005 and were on average
some 30 % higher, affecting further the cost of naphta,
the increase of which began in the second half of the RIP
(first semester of 2005). US import prices into the
Community seem to adjust less rapidly to the increase
the slower
of raw material prices, partly because of
to
adjustment of contract prices and in an effort
protect market
the US
producers' production installations are gas based instead
of naphta based, with gas price increases lagging on oil
price increases.

and partly because

share

25.10.2006

EN

Official Journal of the European Union

L 294/13

(88)

(89)

(90)

(91)

The oil prices continued on average to increase by 10 %
into the first five months 2006, negatively affecting the
profitability of the Community industry because of the
observed bending of the upward sales price evolution.

The investigation of the events after the IP seems to
point to a turning point in the evolution of the ethano-
lamine Community market. Sales prices seem to have
reached a ceiling and for certain ethanolamine types
even showed a minor decrease. There are indications
that an increase of
the cost of production will not
easily be translated into higher sales prices to clients.
it is unclear at this moment to what extent
However,
the increasing cost of production and the downward
pressure on profitability will
an injurious
situation for the Community industry in the medium
term.

entail

Conclusion on the likelihood of recurrence of injury

In case measures were repealed, there is a short term
likelihood of a significant
increase of dumped US
imports to the Community with downward pressure on
prices as a consequence.

In the medium term, this could be aggravated by the
increase of ethanolamine production in the US in
reaction to reduced MEG sales opportunities, necessi-
tating the US producers to find additional sales markets
and
the
thereby
Community market.

redirecting

volumes

larger

to

(92)

The apparent end of the increase of sales prices in the
beginning of 2006 and the adverse evolution of the cost
of production due to the oil price evolution also seem to
negatively affect the Community industry's profitability.

(93) All these factors point to a likelihood of recurrence of
injury. However, some of
the above conclusions are
based on events likely to happen in the medium term.

G. COMMUNITY INTEREST

1. Preliminary remark

(94)

(95)

currently in force would be against

In accordance with Article 21 of the basic Regulation, it
was examined whether maintaining the anti-dumping
measures
the
interest of the Community as a whole. The determination
of Community interest was based on an appreciation of
those of
all
the
the various
Community industry,
traders, wholesalers
and industrial users of the product concerned.

importers,

involved,

interests

i.e.

It should be recalled that in the previous investigations,
the imposition of measures was not considered to be
the
against

the Community

Furthermore,

interest.

present investigation is an expiry review, thus analysing
a situation in which anti-dumping measures are in place.

(96) On this basis it was examined whether, despite the
conclusion on the likelihood of a continuation of
dumping
injury,
compelling reasons exist which would lead to the
conclusion, in this particular case, that it is not in the
Community interest to maintain measures.

and likelihood of

recurrence of

(97)

(98)

2. Interest of the Community industry

It
is recalled that dumping during the RIP was still
present and that there exists a likelihood of continuation
of dumping of the product concerned originating in the
injury to the Community
USA and of recurrence of
industry.

on

level

imposed
the
to

The Community industry has proven to be a viable and
competitive industry, confirmed by the positive devel-
opment of most economic indicators, in particular profit-
cash flow and return on investment. The
ability,
anti-dumping measures
previously
have
the
price
current
contributed
Community market, allowing the Community industry
to restore a profitability that allows for a sufficient
return on investment, to a degree where new capacity
investments become economically feasible. In particular
the US exporting producer
the
Innovene became de facto a Community
takeover of
producer,
in the
Community. The continuation of the measures would
this
also contribute
investment project. Therefore, it is in the interest of the
Community industry to maintain measures
against
dumped imports from the USA.

to uphold the profitability of

announced important

INEOS, which after

investments

3. Interest of importers and traders/wholesalers

(99) Given the lack of cooperation of any trader and
wholesaler, it was concluded that the absence or conti-
nuation of measures does not affect these parties to a
great extent. Moreover, the investigation did not show
the existence of any unrelated importers; all
imports
into the Community of
the product concerned origi-
nating in the USA appear to transfer over importers
related to the US exporting producers.

(100) Continuation of the measures will not change the current
situation of the related importers, who were found to
have realised profits during the RIP at margins conform
to market conditions. Of course, discontinuation of the
measures could be in the interest of the related importers
in case the sales price level to clients would not be
affected and in case the US exporting producers would
not claim part or all of the resulting extra profit margin
while setting the prices at which related importers can
purchase ethanolamine.

L 294/14

EN

Official Journal of the European Union

25.10.2006

4. Interest of industrial users

(101) Based on the fact that the continuation of the measures
would represent a second renewal of anti-dumping
measures, particular attention was paid to the interest
of the industrial users.

of bovine origin can be replaced by the vegetal ‘palm-
styrene’ for which supply in the east is more abundant.
Moreover, the soapers, for reasons of efficiency, demand
a local presence of their suppliers, which may be the
the
main reason for a possible delocalisation out of
Community.

(102) Only users

came

forward in this

from the esterquat business

for
fabric
softeners
investigation. One
industrial user, representing around 14 % of total US
imports during the RIP, replied to the questionnaire,
two others made their views known and forwarded infor-
mation on the cost structure of production of
the
finished goods. Esterquats are produced on the basis of
TEA and are used as fabric softeners, commercialised by
the
such as Procter & Gamble,
Unilever, Henkel, Benckiser and Colgate. These industrial
users argue that the increase of the TEA price is putting
their businesses in danger and that there exists a shortage
of supply on the Community market. Both factors would
be alleviated if the anti-dumping measures were allowed
to lapse. Moreover, the continuation of production in the
Community is allegedly in jeopardy if profitability of the
esterquat business is not improved.

so-called ‘soapers’

(103)

It was found that during the RIP TEA represented around
23 % of the total cost of production of esterquats, up
from 22 % in 2003 but overall comparable to the
situation that existed in 2002,
the
the first year of
the RIP, given the price
period considered. After
evolution of TEA observed, the incidence of TEA in the
full cost of the finished product is expected to be even
more important. It is clear that an elimination of the
anti-dumping measures would at
in the short
term alleviate the burden of the cost of TEA as raw
material. This cost reduction, under the hypothesis that
the abolition of measures would be fully translated into a
lower purchase price, would reduce the cost of TEA by
in the full cost of
approximately 7 %. The effect
production of the finished goods would be a reduction
of around 1 %, improving the profitability by the same
margin.

least

(105) Finally, the claim of a shortage of supply of TEA in the
Community market was examined but found not to be
substantiated, based on offers put
forward by certain
producers, which were not accepted by the users
concerned.

(106)

the finished products of

In summary, although it is recognised that the increasing
price of TEA has exercised a negative pressure on the
cost of production of
the
this pressure is
industrial users
that came forward,
rather limited and the abolition of
the anti-dumping
measures would only provide a marginal alleviation.
Other factors, such as the cost of other raw materials
and the requirements made by the customers of
the
products, were found to have a much more significant
influence. Therefore, it was decided that a continuation of
the measures would not significantly affect the industrial
users.

5. Conclusion on Community interest

(107) The investigation has

shown that

the existing anti-
dumping measures have contributed to the recovery of
the Community industry. The Community industry
would benefit from a continuation of the measures by
upholding current profitable price levels, allowing for
If measures were allowed to
additional
recovery process.
lapse,
Therefore,
in the
is
interest of the Community industry.

the continuation of measures

this would endanger

investment.

this

(108) Unrelated importers do not seem to exist and unrelated
traders/wholesalers did not come forward. All
imports
originating in the USA are made via related traders,
who, while measures were in place, were found to have
obtained market conform profit margins during the RIP.

(104)

It was found that profitability in the esterquat business
has indeed deteriorated over the period considered from
around 18 % to 8 %. However, the decline of the sales
price of esterquats by 6 % over the period considered
seems
to have been the major contributing factor,
causing the relative importance of production costs in
the sales price to rise by almost 10 %. The sector
seems to undergo the effect of a move east, in particular
to Russia, where lower cost solutions can be found in
general, but more specifically for the purchase of the
other main raw material ‘thalo fatty acid’. This product

(109) Furthermore,

in the past, the existing measures appear
not to have had any significant negative effect on the
economic situation of the users. On the basis of the
investigation,
information collected during the current
any price increase, if at all, resulting from the imposition
of anti-dumping measures, does not appear to be dispro-
the
portionate when compared to the benefit of
Community industry achieved by the removal of
the
trade distortion caused by the dumped imports.

25.10.2006

EN

Official Journal of the European Union

L 294/15

(110) Regarding the Community interest,

therefore
concluded that there are no compelling reasons not to
continue imposing the anti-dumping measures currently
in force against imports of ethanolamines originating in
the USA.

is

it

(111)

It is therefore considered appropriate to maintain the
current anti-dumping measures against imports of etha-
nolamines originating in the USA.

H. ANTI-DUMPING MEASURES

(112) All parties were informed of

the essential

facts and
considerations on the basis of which it was intended to
recommend that the existing measures be maintained.
They were also granted a period to submit comments
and claims subsequent to disclosure.

situation of

(113) The investigation showed that spare capacities exist in
the country concerned and that dumping continued
during the RIP. The
the Community
industry improved over
the period considered with
respect of most of
the injury factors mainly due to
favourable market conditions worldwide. On the basis
of the positive development of the economic situation
of the Community industry, it could not be established
that material injury has continued. The investigation on
the likelihood of recurrence of injury however showed
that a number of
factors such as the spare capacity
existing in the USA, the reduced sales opportunities for
MEG, the situation of the ethanolamine both worldwide
and at Community level, point
to a likelihood of
recurrence of injury in the medium term.

(114)

It follows from the above that, as provided for by Article
11(2) of the basic Regulation, the anti-dumping measures
applicable to imports of ethanolamines originating in the
United States of America, imposed by Regulation (EC) No
1603/2000, as last amended by a notice regarding the
anti-dumping fixed duty rate applicable to INEOS (1),
should be maintained.
further considered that
is
measures should be maintained for an additional period
of two years only.

It

(115) On the one hand, a likelihood of recurrence of injurious
dumping has been established based on the facts that (i)
dumping by US exporting producers has continued
notwithstanding the measures in force, and (ii) there is
an expectation of increased imports into the Community
because of existing excess production capacity of 90 000
tonnes in the USA that will become operational again by
the end of 2006 and considering that there is no corre-
sponding domestic demand to absorb this capacity in the
USA. Additionally,
the main non-cooperating US
producer currently subject to the highest anti-dumping
duty and therefore also having the highest incentive to
return to the Community market in case the measures
its
lapse, has

the necessary distribution network at

(1) OJ C 306, 10.12.2002, p. 2.

disposal because it sells other chemical products in the
Community market.

(116) On the other hand, US excess capacity is expected to
disappear gradually towards 2010 at the latest and the
planned capacity expansions by one of the cooperating
US exporting producers in the Community are scheduled
to come online by the end of 2008, thus in two years
combined with
considerations,
latter
time.
continuing uncertainty about
the
influence of
the
evolution of the oil prices on the profitability of the
Community industry, justify the limitation of the main-
tenance of the measures to two years.

The

(117) After this period of two years, the Commission will, if
a new review investigation in
appropriate,
accordance with Article 11 of the basic Regulation ex
officio. will apply,

initiate

HAS ADOPTED THIS REGULATION:

Article 1

of

ethanolamines

A definitive anti-dumping duty is hereby imposed on
1.
CN codes
imports
ex 2922 11 00
code
2922 11 00 10), ex 2922 12 00 (diethanolamine) (TARIC code
2922 12 00 10) and 2922 13 10 (triethanolamine), originating
in the United States of America.

(monoethanolamine)

falling within

(TARIC

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

Country

Company

Specific fixed duty

United States of
America

EUR 59,25 per
tonne

EUR 69,40 per
tonne

EUR 111,25 per
tonne

The Dow Chemical
Corporation
2030 Dow Center
Midland, Michigan 48674
USA
(TARIC additional code A115)

INEOS Americas LLC
7770 Rangeline Road
Theodore, Alabama 36582
USA
(TARIC additional code A145)

Huntsman Chemical
Corporation
3040 Post Oak Boulevard
PO Box 27707
Houston, Texas 77056
(TARIC additional code A116)

All other companies
(TARIC additional code A999)

EUR 111,25 per
tonne

L 294/16

EN

Official Journal of the European Union

25.10.2006

Unless otherwise

3.
concerning customs duties shall apply.

specified,

the provisions

in force

reduced by a percentage which corresponds to the apportioning
of the price actually paid or payable.

4.
In cases where goods have been damaged before entry
into free circulation and, therefore, the price actually paid or
payable is apportioned for the determination of the customs
value pursuant
to Article 145 of Commission Regulation
(EEC) No 2454/93 (1), the amount of the anti-dumping duty,
the amounts set above, shall be
calculated on the basis of

Article 2

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Union and
shall be in force for a period of two years.

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

Done at Luxembourg, 23 October 2006.

For the Council
The President

J.-E. ENESTAM

(1) OJ L 253, 11.10.1993, p. 1.