Notice of initiation of an interim review of the antidumping measures applicable to imports of ferro molybdenum originating in People's Republic of China
Date: 2006-10-31
Institutions: European Commission
Subjects: China, anti-dumping legislation, anti-dumping measure, ferro-alloy, import, originating product

C 262/28

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Official Journal of the European Union

31.10.2006

Notice of initiation of an interim review of the antidumping measures applicable to imports of
ferro molybdenum originating in People's Republic of China

(2006/C 262/06)

The Commission has decided on its own initiative to initiate a
full review pursuant to Article 11(3) of Council Regulation (EC)
No 384/96 on protection against dumped imports from coun-
tries not members of the European Community (‘the basic
Regulation’) (1).

1. Product

The product under review is ferro molybdenum, originating in
People's Republic of China (‘the product concerned’), currently
classifiable within CN code 7202 70 00. This CN code is given
only for information.

to likely injury margins which, though significant, are below
the level of the duty in force.

At the same time, it appears that the existing measures and the
decrease of Chinese imports, have allowed the Community
industry to recover from the injurious dumping, but not to the
extent
that would have been expected in a context of a
booming market.

the reasons above, a full review of

the measures is
For
warranted. Such a review would also allow for the re-assess-
ment of Community interest aspects, including the impact of
measures on users. Indeed, the substantially higher price levels
in the market may imply that the impact of measures on users
may be much more significant than originally calculated.

2. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 215/2002 of 28
January 2002 (2).

4. Procedure

3. Grounds for the review

In the context of a potential suspension of measures, several
interested parties provided evidence
concerning different
aspects of the adequacy of the measures, including dumping
and injury. Altogether, the corpus of evidence at the Commis-
sion disposal indicates that the circumstances on the basis of
which the existing measures were established have changed
to an extend that the existing measures may no longer be
adequate, and that certain of these changes appear to be of a
lasting nature.

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
interim review, the Commission hereby initiates a review in
accordance with Article 11(3) of the basic Regulation.

4.1. Procedure

for

the determination of

likelihood of

dumping and injury

The investigation will determine the need for the continuation,
removal or amendment of the existing measures.

3.1. Dumping

(a) Sampling

Prima facie evidence indicates that significant dumping is likely
to recur, albeit at a lower level than that found in the investiga-
tion on the basis of which the existing measures were estab-
lished. This prima facie finding was based on a comparison
between normal value for the People's Republic of China, estab-
lished in accordance with the provisions of Article 2(7)(a) of
the basic Regulation (analogue country) and export prices to
the Community as well as to appropriate third countries.

3.2. Injury

Prima facie evidence indicates that a number of aspects appeared
to have undergone lasting changes. Price increases emanating
from changes in the demand-supply balance at world level,
together with the current price and cost situation of a Com-
munity industry, which now has an additional producer, point

(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 35, 6.2.2002, p. 1.

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 5(b)(i) and in the
format indicated in point 6:

— name, address, e-mail address, telephone, and fax

numbers and contact person,

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— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 October 2005
to 30 September 2006,

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.

— the turnover in local currency and the sales volume
in tonnes
the product concerned on the
domestic market during the period 1 October 2005
to 30 September 2006,

for

— 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,

Companies included in the sample must reply to a
questionnaire within the time limit set in point 5(b)(iii)
and must cooperate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

the
If
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 7.

— 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 7 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 5(b)(ii).

(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 People's Republic of China, to any association
of exporters/producers, to the importers, to any association
of importers which co-operated in the investigation leading
to the measures subject to the present review or otherwise
known to the Commission, and to the authorities of the
exporting country concerned.

interested parties should contact

In any event, all
the
Commission forthwith by fax in order to request, if neces-
sary, a questionnaire within the time limit set in point 5
(a)(i), given that the time limit set in point 5(a)(ii) applies to
all interested parties.

Exporters/producers in People's Republic of China claiming
an individual margin, with a view to the application of
the basic Regulation, must
Articles 17(3) and 9(6) of
submit a completed questionnaire within the time limit set
in point 5(a)(ii) of
this notice. They therefore have to
request a questionnaire within the time limit set in point
if
5(a)(i). However, such parties should be aware that
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
than questionnaire
known,
replies and to provide supporting evidence. This informa-
tion and supporting evidence must reach the Commission
within the time limit set in point 5(a)(ii).

information other

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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 5(a)(iii).

5. Time limits

(a) General time limits

(d) Selection of the market economy country

In the previous investigation the United States of America
was used as an appropriate market economy country for
the purpose of establishing normal value in respect of the
People's Republic of China. The Commission envisages
using the United States of America again for this purpose.
Interested parties are hereby invited to comment on the
appropriateness of this country within the specific time
limit set in point 5(c) of this notice.

(e) Market economy status

For those exporters/producers in the People's Republic of
China which claim and provide sufficient evidence that
i.e. that
they operate under market economy conditions,
they meet the criteria laid down in Article 2(7)(c) of the
basic Regulation, normal value will be determined in
accordance with Article 2 (7)(b) of the basic Regulation.
Exporters/ producers intending to submit duly substantiated
claims must do so within the specific time limit set in para-
graph 5(d) of this notice. The Commission will send claim
forms to all exporters/producers in the People's Republic of
China who have requested an individual margin as well as
to the authorities of the People's Republic of China.

(i) F o r p a r t i e s

t o r e q u e st

a q u e sti on n a i r e or

o t h e r c la i m f or m s

All
interested parties who did not co-operate in the
investigation leading to the measures subject to the
present review 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,

to
su bmi t q u e sti onnai r e r e p li e s and a ny ot h e r
i nfor ma ti on

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
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
5(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.

4.2. Procedure for the assessment of Community interest

(b) Specific time limit in respect of sampling

In accordance with Article 21 of the basic Regulation and in
the event that the likelihood of a continuation or recurrence of
dumping and injury is confirmed, a determination will be made
as to whether to maintain, amend or repeal the anti-dumping
measures would not be against the Community interest. For
this reason the Community industry, importers, their represen-
tative associations,
representative users and representative
consumer organisations, provided that they prove that there is
an objective link between their activity and the product
concerned, may, within the time limits set in point 5(a)(ii),
make themselves known and provide the Commission with
information. The parties which have acted in conformity with
the previous sentence may request a hearing, setting the par-
ticular reasons why they should be heard, within the time limit
set in point 5(a)(ii). 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 submis-
sion.

(i) The information specified in point 4.1(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 4.1(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.

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(c) Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the
appropriateness of the United States of America which, as
mentioned in point 4.1(d),
is envisaged as a market-
economy country for the purpose of establishing normal
value in respect of the People's Republic of China. 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

Duly substantiated claims for market economy status, as
mentioned in paragraph 4.1(e) of this notice, must reach
the Commission within 15 days of the date of publication
of this notice in the Official Journal of the European Union.

6. Written submissions, questionnaire replies and cor-

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
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘FOR INSPECTION BY INTER-
ESTED 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

7. Non-co-operation

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, 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, in accordance with Article 18 of the
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially, and use of
facts available is made, the result may be less favourable to that
party than if it had cooperated.

8. Schedule of the investigation

The investigation will be concluded, according to Article 11(5)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
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