Council Regulation (EC) No 1650/2006 of 7 November 2006 extending the definitive anti-dumping duty imposed by Regulation (EC) No 769/2002 on imports of coumarin originating in the People's Republic of China to imports of coumarin consigned from Indonesia or Malaysia, whether declared as originating in Indonesia or Malaysia or not
Date: 2006-11-07
Institutions: Council of the European Union
Subjects: China, Indonesia, Malaysia, anti-dumping duty, chemical compound, import, originating product

10.11.2006

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Official Journal of the European Union

L 311/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1650/2006

of 7 November 2006

extending the definitive anti-dumping duty imposed by Regulation (EC) No 769/2002 on imports of
coumarin originating in the People's Republic of China to imports of coumarin consigned from
Indonesia or Malaysia, whether declared as originating in Indonesia or Malaysia or not

THE COUNCIL OF THE EUROPEAN UNION,

2. Request

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)
(the
basic Regulation), and in particular Article 13 thereof,

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

Whereas:

A. PROCEDURE

1. Existing measures

(1)

(2)

Following an expiry review, by Regulation (EC) No
769/2002 (2)
the Council
(the original Regulation),
imposed a definitive anti-dumping duty of EUR 3 479
per tonne on imports of coumarin, falling within CN
code
People's
Republic of China (PRC).

ex 2932 21 00

originating

the

in

In December 2004, after circumvention practices via
the measures were
India and Thailand were found,
extended by Regulation (EC) No 2272/2004 (3)
to
imports of coumarin consigned from India or Thailand,
whether declared as originating in India or Thailand or
not.

(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 123, 9.5.2002, p. 1. Regulation as last amended by Regulation

(EC) No 1854/2003 (OJ L 272, 23.10.2003, p. 1).

(3) OJ L 396, 31.12.2004, p. 18.

(3)

(4)

(5)

(6)

On 13 February 2006,
the Commission received a
request pursuant to Article 13(3) of the basic Regulation
to investigate the alleged circumvention of
the anti-
dumping measures imposed on imports of coumarin
originating in the PRC (the request). The request was
submitted by the European Chemical Industry Council
(CEFIC)
(the applicant) on behalf of the sole producer
in the Community.

The request contained sufficient prima facie evidence that
there had been a change in the pattern of trade following
the imposition of the existing anti-dumping measures
and
of
on
anti-circumvention measures
shown by a
coumarin originating in the PRC, as
significant
the same product
from Indonesia and Malaysia.

increase in imports of

imports

This change in the pattern of trade was alleged to stem
from the transhipment of coumarin originating in the
PRC via Indonesia and Malaysia. It was further alleged
that there was insufficient due cause or economic justi-
fication for these practices other than the existence of the
anti-dumping measures on imports of coumarin origi-
nating in the PRC.

the

that

applicant

imports of

submitted evidence

Finally,
the
remedial effects of the existing anti-dumping measures
on coumarin originating in the PRC were being
undermined both in terms of quantities and prices.
coumarin from
Significant volumes of
Indonesia and Malaysia appeared to have
replaced
imports of coumarin from the PRC. In addition, there
was sufficient evidence that the increase in imports was
made at prices well below the non-injurious price estab-
led to the existing
lished in the investigation that
measures,
in
taking place
relation to the normal values previously established for
coumarin originating in the PRC.

and that dumping was

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Official Journal of the European Union

10.11.2006

(7)

(8)

3. Initiation

The Commission initiated an investigation by Regulation
(EC) No 499/2006 (1) (the initiating Regulation) into the
alleged circumvention of
the anti-dumping measures
imposed on imports of coumarin originating in the
PRC by imports of coumarin consigned from Indonesia
or Malaysia, whether declared as originating in Indonesia
or Malaysia or not and, pursuant to Articles 13(3) and
the basic Regulation, directed the customs
14(5) of
authorities to register imports of coumarin consigned
from Indonesia or Malaysia, whether declared as origi-
nating in Indonesia or Malaysia or not, falling within CN
code ex 2932 21 00 (TARIC code 2932 21 00 16).

4. Investigation

The Commission officially advised the authorities of the
PRC, Indonesia and Malaysia, the producers/exporters, the
importers in the Community known to be concerned and
the applicant of the initiation of the investigation. Ques-
tionnaires were sent to the producers/exporters in the
PRC as well as to the importers in the Community
named in the request. There were no known producers
in Indonesia and Malaysia. Interested parties were given
the opportunity to make their views known in writing
and to request a hearing within the time limit set in the
initiating Regulation. All parties were informed that non-
cooperation might lead to the application of Article 18
of the basic Regulation and findings being made on the
basis of the facts available.

(9)

No producer or exporter
Indonesia or
Malaysia submitted a reply to the questionnaire. Indo-
nesian authorities replied that there was no producer of
coumarin known in Indonesia.

in the PRC,

5. Investigation period

(10)

The investigation period covered the period from 1
March 2005 to 28 February 2006 (IP). Data from
2002 up to the end of the investigation period were
in the
the
collected to investigate
pattern of trade.

alleged change

been informed of the consequences of non-cooperation,
as set out in Article 18(6) of the basic Regulation.

(b) PRC

(12) No Chinese producers or exporters cooperated in the

investigation.

(13)

It was made clear to the known companies that non-
cooperation may lead to the application of Article 18 of
the basic Regulation.

(14)

(15)

(16)

2. Product concerned and like product

The product concerned by the alleged circumvention is,
as defined in the original Regulation, coumarin currently
classifiable within CN code ex 2932 21 00. Coumarin is
a whitish crystalline powder with the characteristic odour
Its main uses are as an aroma
of newly mown hay.
in the preparation of
chemical and as a fixative
fragrance compounds, such compounds being used in
the production of detergents,
and fine
fragrances.

cosmetics

Coumarin can be manufactured following two different
production processes: the Phenol route which involves
Perkin reaction and the o-Cresol route which involves
produced
Rasching
through these
same basic
two processes has
physical and chemical characteristics and has the same
uses.

reaction. However,

coumarin
the

In the absence of cooperation by parties in Indonesia or
Malaysia, it must be inferred, on the basis of the infor-
mation available and in the absence of any contrary
that coumarin exported to the Community
evidence,
from the PRC and coumarin consigned from Indonesia
and Malaysia have the same basic physical and chemical
characteristics and have the same uses. They are therefore
to be considered as like products within the meaning of
Article 1(4) of the basic Regulation.

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(a) Indonesia and Malaysia

3. Change in the pattern of trade

(17) As stated above, the change in the pattern of the trade
was alleged to stem from transhipment via Indonesia and
Malaysia.

(11) No producers or exporters of coumarin in Indonesia and
Malaysia made themselves known or cooperated in the
investigation. Accordingly,
the
exports of coumarin consigned from Indonesia and
Malaysia to the Community had to be made on the
basis of the facts available in accordance with Article
18 of the basic Regulation. At the outset of the investi-
Indonesia and Malaysia had
gation,

findings in respect of

the authorities of

(1) OJ L 91, 29.3.2006, p. 3.

Indonesia

(18) As no Indonesian company cooperated in the investi-
gation, exports from Indonesia to the Community had
to be established on the basis of
the facts available
pursuant to Article 18 of the basic Regulation. Eurostat
data, the most appropriate information available, were
therefore used to establish the export prices and quan-
tities of imports from Indonesia.

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Official Journal of the European Union

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(19)

Significant imports from Indonesia into the Community
started immediately after the initiation of the previous
anti-circumvention
and
investigation
Thailand, at
the level of 12,5 tonnes in 2004, 15
tonnes in 2005 and 10 tonnes in the investigation
period (representing 1,7 % of the EU consumption). In
parallel, Chinese exports into Indonesia have developed
from 57 tonnes in 2003 to 83,8 tonnes in the investi-
gation period.

against

India

(20)

In the absence of cooperation and of any contrary
evidence, it is concluded that there was a change in the
Indonesia and the
pattern of trade between the PRC,
Community from 2004 to the end of the investigation
period, which stemmed from transhipment of coumarin
originating in the PRC via Indonesia.

Malaysia

(21) As no Malaysian company cooperated in the investi-
gation, exports from Malaysia to the Community had
to be established on the basis of
the facts available
pursuant to Article 18 of the basic Regulation. Eurostat
data, the most appropriate information available, were
therefore used to establish the export prices and quan-
tities of imports from Malaysia.

Imports from Malaysia into the Community started in
2005, reaching a level of 13 tonnes in 2005 and 23
tonnes in the investigation period (representing 3,9 %
of the EU consumption). At the same time, the Chinese
exports into Malaysia have grown from 23,6 tonnes in
2004 to 43,76 tonnes in the investigation period.

(25)

(26)

(27)

Malaysia

In the absence of cooperation and of any contrary
evidence,
it is concluded that, given that the imports
started in 2005, after the extension of the measures on
imports of coumarin consigned from India or Thailand
and that, in parallel, the Chinese exports into Malaysia
have grown from 23,6 tonnes in 2004 to 43,76 tonnes
in 2005, the change in the pattern of trade stemmed
from the existence of the anti-dumping measures rather
than from any other sufficient due cause or economic
justification within the meaning of Article 13(1) of the
it is also noted that
basic Regulation.
there
genuine production of
coumarin in Malaysia.

is no evidence of

In this respect,

5. Undermining of the remedial effects of the duty
in terms of the prices and/or the quantities of the
like products

Indonesia

that

it was
Based on the trade flow analysis made above,
found that a change in the pattern of the Community
there were anti-
imports is linked to the fact
dumping and anti-circumvention measures
in place.
While imports declared as originating in Indonesia were
they
absent on the Community market until 2003,
amounted to 4 tonnes in 2003,
to 12,5 tonnes in
2004, to 15 tonnes in 2005 and to 10 tonnes in the
investigation period, representing 1,7 % of Community
consumption.

investigation revealed that

The
from
Indonesia have taken place at price levels below the
export price in the original
investigation and well
below the original normal value.

imports

the

In the absence of cooperation and of any contrary
evidence, it is concluded that there was a change in the
pattern of
trade between the PRC, Malaysia and the
Community from 2005 to the end of the investigation
period, which stemmed from transhipment of coumarin
originating in the PRC via Malaysia.

(28) On the basis of the above, it is concluded that the change
in trade flows, together with the abnormally low prices
of exports from Indonesia have undermined the remedial
effects of the anti-dumping measures both in terms of
quantities and prices of the like products.

4. Insufficient due cause or economic justification

Malaysia

Indonesia

it

In the absence of cooperation and of any contrary
evidence,
is concluded that, given that significant
imports started immediately after the initiation of the
previous anti-circumvention investigation against
India
in parallel with an increase of Chinese
and Thailand,
the change in the
exports of coumarin to Indonesia,
the
pattern of
anti-dumping measures
than from any other
rather
sufficient due cause or economic justification within the
meaning of Article 13(1) of the basic Regulation. In this
respect,
it is also noted that there is no evidence of
genuine production of coumarin in Indonesia.

trade stemmed from the existence of

(29)

Based on the trade flow analysis made above,
it was
found that a change in the pattern of trade is linked to
the fact that there were anti-dumping and anti-circum-
vention measures in place. While there were no imports
of coumarin into the Community before 2005,
they
amounted to 13 tonnes in 2005 and to 23 tonnes in
the investigation period.

(30)

The investigation revealed that the imports from Malaysia
have taken place at price levels below the export price in
the original
investigation and well below the original
normal value.

(22)

(23)

(24)

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(31) On the basis of the above, it is concluded that the change
in trade flows, together with the abnormally low prices
of exports from Malaysia have undermined the remedial
effects of the anti-dumping measures both in terms of
quantities and prices of the like products.

6. Evidence of dumping in relation to the normal
values previously established for like or similar
products

Indonesia

(32)

found with respect

In order to determine whether evidence of dumping
could be
exports of
coumarin from Indonesia to the Community during the
IP, Eurostat data were used pursuant to Article 18 of the
basic Regulation.

to the

(33) Article 13(1) of the basic Regulation requires evidence of
dumping in relation to the normal value previously
established for the like or similar products.

(38)

(39)

respect of transport and insurance, on the basis of the
facts available, i.e. as given in the request, in accordance
with Article 18 of the basic Regulation.

the comparison of

In accordance with Articles 2(11) and 2(12) of the basic
Regulation,
the weighted average
normal value as established in the previous investigation
and the weighted average of export prices during this
investigation's IP, expressed as a percentage of the cif
price at the Community frontier, duty unpaid, showed
dumping for the imports of coumarin to the Community
from Malaysia. The dumping margin found, expressed as
a percentage of the cif price at the Community frontier,
duty unpaid, was above 100 %.

C. MEASURES

In view of the above findings of circumvention within
the meaning of Article 13(1) of the basic Regulation, the
existing anti-dumping measures on imports of
the
product concerned originating in the PRC should be
extended
from
Indonesia or Malaysia, whether declared as originating
in Indonesia or Malaysia or not.

consigned

product

same

the

to

(34)

(35)

(36)

(37)

For the purpose of a fair comparison between the normal
value and the export price, due allowance, in the form of
adjustments, was made for differences which affect prices
and price comparability. These adjustments were made in
accordance with Article 2(10) of the basic Regulation in
respect of transport and insurance, on the basis of the
facts available, i.e. as given in the request, in accordance
with Article 18 of the basic Regulation.

the comparison of

In accordance with Articles 2(11) and 2(12) of the basic
Regulation,
the weighted average
normal value as established in the previous investigation
and the weighted average of export prices during this
investigation's IP, expressed as a percentage of the cif
price at the Community frontier, duty unpaid, showed
dumping for the imports of coumarin to the Community
from Indonesia. The dumping margin found, expressed
the Community
as a percentage of
frontier, duty unpaid, was above 100 %.

the cif price at

Malaysia

found with respect

In order to determine whether evidence of dumping
could be
exports of
coumarin from Malaysia to the Community during the
IP, Eurostat data were used pursuant to Article 18 of the
basic Regulation.

to the

For the purpose of a fair comparison between the normal
value and the export price, due allowance, in the form of
adjustments, was made for differences which affect prices
and price comparability. These adjustments were made in
accordance with Article 2(10) of the basic Regulation in

(40)

The duty extended should be the one established in
Article 1(2) of the original Regulation.

(41)

Pursuant to Articles 13(3) and 14(5) of the basic Regu-
lation, which provide that any extended measures shall
be applied against registered imports from the date of
registration, the anti-dumping duty should be collected
on imports of coumarin consigned from Indonesia or
Malaysia, which entered the Community under regis-
tration imposed by the initiating Regulation.

D. REQUESTS FOR EXEMPTION

a

for

request

lodging

in order

(42) Although during this investigation no genuine producer
of coumarin was found to exist in Indonesia or Malaysia
or made itself known to the Commission, new producers
which would consider
an
exemption from the extended anti-dumping measure
pursuant to Article 13(4) of the basic Regulation are
informed that they will be required to complete a ques-
tionnaire
the Commission to
to enable
determine whether an exemption may be warranted.
Such exemption may be granted after the assessment
the product
of,
concerned, production capacity and capacity utilisation,
procurement and sales and the likelihood of continuation
of practices for which there is insufficient due cause or
economic justification and the evidence of dumping. The
Commission would normally also carry out an on the
spot verification visit. The request would have to be
addressed to the Commission forthwith, with all
relevant information,
in particular any modification in
the company's activities linked to production and sales.

the market situation of

for instance,

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Official Journal of the European Union

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(43)

Importers could still benefit from exemption from the
imports are from
measures to the extent
their
that
exporting producers, which are
granted such an
exemption, and in accordance with Article 13(4) of the
basic Regulation.

The provisions in force concerning customs duties shall

3.
apply.

Article 2

(44) Where an exemption is warranted,

the Council will
amend this Regulation accordingly. Subsequently, any
exemption granted will be monitored by the Commission
to ensure compliance with the conditions set therein.

1.
Requests for exemption from the duty extended by Article
1 shall be made in writing in one of the official languages of the
European Union and must be signed by a person authorised to
to the
the applicant. The request must be sent
represent
following address:

E. PROCEDURE

(45)

to

extend

Interested parties were informed of the essential facts and
considerations on the basis of which the Council
intended
anti-dumping
the
measures in force and were given the opportunity to
comment and to be heard. No comments which were
of a nature to change the above mentioned conclusions
were received,

definitive

European Commission
Directorate-General for Trade
Directorate B
Office: J-79 05/17
B-1049 Brussels
Fax (32 2) 295 65 05

HAS ADOPTED THIS REGULATION:

Article 1

1.
The definitive anti-dumping duty imposed by Regulation
(EC) No 769/2002 on imports of coumarin, falling within CN
code ex 2932 21 00 originating in the People's Republic of
China is hereby extended to imports of coumarin,
falling
within CN code ex 2932 21 00 consigned from Indonesia or
Malaysia, whether declared as originating in Indonesia or
Malaysia or not (TARIC code 2932 21 00 16).

In accordance with Article 13(4) of Regulation (EC) No
2.
384/96, the Council may decide to exempt imports which do
not circumvent the anti-dumping measures imposed by Regu-
lation (EC) No 769/2002 from the duty extended by Article 1.

Article 3

Customs authorities are hereby directed to discontinue the regis-
tration of imports, established in accordance with Article 2 of
Regulation (EC) No 499/2006.

The duty extended by paragraph 1 shall be collected on
2.
imports registered in accordance with Article 2 of Regulation
(EC) No 499/2006 and Articles 13(3) and 14(5) of Regulation
(EC) No 384/96.

Article 4

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, 7 November 2006.

For the Council
The President

E. HEINÄLUOMA