Proposal for a Council Regulation terminating the partial interim review of anti-dumping measures on imports of silicon originating in the Russian Federation
Date: 2006-10-26
Institutions: European Commission
Subjects: Russia, anti-dumping duty, import, originating product, semi-metal

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.10.2006 
COM(2006) 634 final 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of anti-dumping measures on imports of silicon 
originating in the Russian Federation 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

• 

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 
silicon  originating  in  the  Russian  Federation  following  an  interim  review  pursuant  to 
Article 11(3) of Council Regulation (EC) No 384/96. 

• 

General context 

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

• 

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  proceeding,  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. 

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3)  LEGAL ELEMENTS OF THE PROPOSAL 

• 

Summary of the proposed action 

On  5  April  2006,  the  Commission  announced  by  a  notice  published  in  the  Official 
Journal  of  the  European  Union  (OJ  C  82,  5.4.2006,  p.64)  the  initiation  of  a  partial 
interim  review  of  the  anti-dumping  measures  applicable  to  imports  of  silicon 
originating in the Russian Federation.  

The request for this review had been made by a Russian exporting producer of silicon, 
namely Sual Kremny Ural LLC and related company ("the applicant") and was limited 
in scope to the determination of the dumping margin applicable to it. 

On 29 May 2006 the applicant formally withdrew its request. 

Since  the  information  provided  for  in  the  applicant's  request  had  not  brought  to  light 
any considerations showing that the termination of the present review would not be in 
the Community interest, it is suggested that the Council terminates the current review 
and maintains the level of the anti-dumping duty in force with regard to the applicant. 

It is therefore proposed that the Commission adopt the attached proposal for a Council 
regulation, with a view to is transmission to the Council and subsequent publication in 
the Official Journal of the European Union. 

• 

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. 

• 

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 reasons: 

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 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason: 

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Other  means  would  not  be  adequate  because  the  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 

terminating the partial interim review of anti-dumping measures on imports of silicon 
originating in the Russian Federation 

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 Community (the ‘basic 
Regulation’)1 and in particular Article 11(3) thereof, 

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

Whereas: 

1. 

PROCEDURE 

1.1 

Previous investigations and measures in force 

(1) 

By  Council  Regulation  (EC)  No  2229/20032,  a  definitive  anti-dumping  duty  was 
imposed  on  imports  of  silicon  originating  in  Russia.  The  rate  of  the  definitive  anti-
dumping  duty  applicable  to  imports  from  SKU  LLC,  Sual-Kremny-Ural,  Kamensk, 
Ural Region, Russia and its related company ZAO KREMNY, Irkutsk, Irkutsk Region, 
Russia  is  22.7%.  The  Commission,  by  Decision  2004/445/EC3  accepted  an 
undertaking offered by the applicant. 

1.2 

Request for an interim review 

(2) 

On 6 February 2006, the Commission received a request for a partial interim review 
pursuant to Article 11(3) of Council Regulation (EC) No 384/96 of 22 December 1995 
on  protection  against  dumped  imports  from  countries  not  member  of  the  European 
Community4  (‘the  basic  Regulation’)  concerning 
the  anti-dumping  measures 
applicable to imports of silicon originating in the Russian Federation.  

1 

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4 

OJ L 56, 6.3.1996, p.1. Regulation as last amended by Regulation (EC) No 2117/2005 (OJ No L 340, 
23.12.2005, p.17) 
OJ L 339, 24.12.2003, p.3 
OJ L 127, 29.4.2004, p.114 
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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(3) 

(4) 

(5) 

(6) 

The  request  was  made  by  SKU  LLC,  Sual-Kremny-Ural,  Kamensk,  Ural  Region, 
Russia and its related company ZAO KREMNY, Irkutsk, Irkutsk Region, Russia (“the 
applicant”)  and  was  limited  in  scope  to  the  determination  of  dumping  as  far  as  the 
applicant is concerned.  

The  request  contained  prima  facie  evidence  that  the  circumstances  on  the  basis  of 
which measures were established have changed and that these changes are of a lasting 
nature. 

The Commission, by a notice (‘notice of initiation’) published in the Official Journal 
of  the  European  Union5,  accordingly  initiated  a  partial  interim  review  of  the  anti-
dumping  measures  applicable  to  imports  of  silicon,  currently  classifiable  within  CN 
code 2804 69 00 and originating in the Russian Federation.  

The Commission officially advised the applicant, the representatives of the exporting 
country  and  the  association  of  Community  producers  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 and questionnaires were sent to the applicant. 

(7) 

The investigation period was 1 April 2005 to 31 March 2006. 

2.  WITHDRAWAL  OF  THE  REQUEST  AND  TERMINATION  OF  THE  INTERIM 
REVIEW 

(8) 

(9) 

On  29  May  2006,  i.e.  before  the  submission  of  a  reply  to  the  questionnaire,  the 
applicant formally withdrew its request. 

It  was  considered  whether  it  would  be  warranted  to  continue  the  investigation  ex- 
officio despite the above mentioned withdrawal. However, given that the request had 
been  withdrawn  at  an  early  stage  of  the  investigation,  no  evidence  relating  to  the 
current IP was available and no preliminary findings were obtained at this stage which 
would have allowed continuing with the investigation.  

(10) 

Information  provided  for  in  the  applicant’s  request  had  not  brought  to  light  any 
considerations  showing  that  the  termination  of  the  review  would  not  be  in  the 
Community interest.  

(11)  All  interested  parties  were  informed  about  the  intention  to  terminate  the  present 
proceeding.  One  interested  party  argued  that  the  applicant  was  still  exporting  the 
product  concerned  to  the  EC  at  dumped  prices  and  that  therefore  the  investigation 
should continue. However, it should be noted that the termination of this investigation 
does  not  result  in  the  elimination  of  the  anti-dumping  measure  which  is  already  in 
force  in  order  to  re-establish  fair  trade  practises.  Therefore  this  argument  had  to  be 
rejected. 

(12)  Two  other  interested  parties  argued  also  in  favour  of  continuing  the  present 
investigation in order to remove the measures, given the alleged shortage of supply in 
the  EC.  However,  this  argument  is  outside  the  scope  of  this  investigation  which  is 

5 

OJ C 82, 5.4.2006, p.64 

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limited  to  the  reassessment  of  the  dumping  margin  of  one  exporter.  Therefore,  the 
continuation of this investigation would in any event not change the level of measures 
to which other exporters are subject to. It could not, consequently, address the issue of 
short supply in a non-discriminatory way.  

(13) 

It was therefore concluded that the current interim review of definitive anti-dumping 
measures imposed on imports into the Community of silicon originating in the Russian 
Federation  should  be  terminated.  The  anti-dumping  measures  with  regard  to  the 
applicant currently in force should be maintained without affecting the duration of the 
measures. 

HAS ADOPTED THIS REGULATION: 

Article 1 

(1) 

(2) 

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  silicon 
originating  in  the  Russian  Federation  by  virtue  of  Council  Regulation  (EC)  No 
2229/2003 is hereby terminated.  

The anti-dumping measures currently in force with regard to SKU LLC, Sual-Kremny-
Ural,  Kamensk,  Ural  Region,  Russia  and  ZAO  KREMNY,  Irkutsk,  Irkutsk  Region, 
Russia are maintained. 

Article 2 

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

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

Done at Brussels, […] 

For the Council 
The President 
[…] 

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