Notice of initiation of an anti-subsidy proceeding concerning imports of dihydromyrcenol originating in India
Date: 2006-11-11
Institutions: European Commission
Subjects: India, anti-dumping legislation, chemical alcohol, dumping, import, originating product

11.11.2006

EN

Official Journal of the European Union

C 275/29

Notice of initiation of an anti-subsidy proceeding concerning imports of dihydromyrcenol origin-
ating in India

(2006/C 275/11)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 on protection
against subsidised imports from countries not members of the
European Community (‘the basic Regulation’) (1), alleging that
imports of dihydromyrcenol, originating in India (‘the country
concerned’), are being subsidized and are thereby causing mate-
rial injury to the Community industry.

1. Complaint

The complaint was lodged on 29 September 2006 by the
following Community producers: Destilaciones Bordas Chinch-
urreta S.A. and Sensient Fragances S.A.
(‘the complainants’)
representing a major proportion, in this case more than 25 %
of the total Community production of dihydromyrcenol.

2. Product

The product allegedly being subsidized is dihydromyrcenol of a
purity by weight of 93 % or more, originating in India ('the
product
concerned'), normally declared within CN code
ex 2905 22 90. This CN code is only given for information.

4. Allegation of injury

The complainants have provided evidence that imports of the
product concerned from India have increased overall in abso-
lute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the market share held and the level of
prices charged by the Community industry,
resulting in
substantial adverse effects on the overall performance and the
financial situation of the Community industry.

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the basic
Regulation.

5.1. Procedure for the determination of subsidization and

injury

The investigation will determine whether the product described
in point 2 originating in India is being subsidized and whether
this subsidization has caused injury.

3. Allegation of subsidization

(a) Sampling

It is alleged that the producers of the product concerned from
India have benefited from a number of subsidies granted by the
Government of India and from regional subsidies. These subsi-
dies consist of schemes conferring benefits to industries located
in special economic zones/export oriented units, the duty enti-
tlement passbook scheme, duty-free replenishment certificate,
the advance licences/the advance release orders scheme, the
export promotion capital goods scheme,
the export credit
scheme, the income tax incentive for research and develop-
ment, an income tax exemption, the package scheme of incen-
tives of
the Government of Maharashtra and the package
scheme of incentives of the Government of Uttar Pradesh.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of India
or other regional Governments and confer a benefit to the reci-
pients,
i.e. to exporters/producers of dihydromyrcenol. They
are alleged to be contingent upon export performance, or
limited to specific companies and therefore specific and coun-
tervailable.

(1) OJ L 288, 21.10.97, p. 1, as last amended by Council Regulation

(EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

In view of the apparent large number of parties involved in
this proceeding,
the Commission may decide to apply
sampling in accordance with Article 27 of the basic Regu-
lation.

(i) S a mp li ng for e x p o r te r s/ p r odu c e r s i n Indi a

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 compa-
nies within the time limit set in point 6(b)(i) and in the
format indicated in point 7:

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

numbers and contact person,

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

C 275/30

EN

Official Journal of the European Union

11.11.2006

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

— whether the company intends to claim an indivi-
(individual subsidy rates can

dual subsidy rate (1)
only be claimed by producers),

— the precise activities of the company with regard to

the production of the product concerned,

— 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,

— any other relevant information that would assist
the Commission in the selection of the sample,

imply

replying

— 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
and
will
accepting
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-operated in the investi-
gation. The consequences of non-cooperation are
set out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

— the volume in kg and value in euro of imports into
and resales made in the Community market during
the period 1 October 2005 to 30 September 2006
of the imported product concerned originating in
India,

— the names and the precise activities of all related
involved in the production and/or

companies (2)
selling of the product concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

imply

replying

— 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
and
its
accepting
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-operated in the investi-
gation. The consequences of non-cooperation are
set out in point 8 below.

to a questionnaire

investigation of

an on-the-spot

In order to obtain the information it deems necessary
for the selection of
the
Commission will, in addition, contact any known asso-
ciations of importers.

the sample of

importers,

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.

(iii) F i na l se le c ti on of t h e sa mp le s

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 6(b)(ii).

(ii) Sa mp li ng for i mp or te r s

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in point 6(b)(i) and in the formats indicated in
point 7:

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

numbers and contact person,

— the total turnover in euro of the company during
the period 1 October 2005 to 30 September 2006,

samples

The Commission intends to make the final selection of
the
consulted the parties
concerned that have expressed their willingness to be
included in the sample.

after having

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6(b)(iii)
and must cooperate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 27(4) and 28 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 8.

— the total number of employees,

(b) Questionnaires

— the precise activities of the company with regard to

the product concerned,

(1) Individual margins may be claimed pursuant to Article 27(3) of the

basic Regulation for companies not included in the sample.

(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 India, to any association of exporters/produ-
cers, to the sampled importers, to any association of impor-
ters named in the complaint, and to the authorities of the
exporting country concerned.

11.11.2006

EN

Official Journal of the European Union

C 275/31

Exporters/producers in India claiming an individual subsidy
rate, with a view to the application of Articles 27(3) and
15(3) of the basic Regulation, must submit a completed
questionnaire within the time limit set in point 6(a)(ii) of
this notice. They therefore have to request a questionnaire
within the time limit set in point 6(a)(i). However, such
parties should be aware that
if sampling is applied to
exporters/producers,
the Commission may nonetheless
decide not to calculate an individual subsidy rate for them,
if the number of exporters/producers is so large that indivi-
dual 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
known,
than questionnaire
replies and to provide supporting evidence. This informa-
tion and supporting evidence has to reach the Commission
within the time limit set in point 6(a)(ii).

information other

(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
6(b)(iii).

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 6(a)(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.

5.2. Procedure for assessment of Community interest

(b) Specific time limit in respect of sampling

and

representative

In accordance with Article 31 of the basic Regulation and in
the event that the allegations of subsidization and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-subsidy measures would not be
against the Community interest. For this reason the Community
industry, importers, their representative associations, represen-
consumer organisations,
tative users
provided that they prove that there is an objective link between
their activity and the product concerned, may, within the
general time limits set in point 6(a)(ii), make themselves known
and provide the Commission with information. The parties
which have acted in conformity with the precedent sentence
may request a hearing setting the particular reasons why they
should be heard within the time limit set in point 6(a)(iii). It
should be noted that any information submitted pursuant to
Article 31 will only be taken into account if supported by
factual evidence at the time of submission.

6. Time limits

(a) General time limits

(i) The

and
information specified in point 5.1(a)(i)
5.1(a)(ii) 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 Commis-
sion 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 Journal of
the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) 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.

7. Written submissions, questionnaire replies and cor-

respondence

(i) F or p a r ti e s t o r e q u e st a q u e st i onna i r e

All interested parties should request a questionnaire as
soon as possible, but not later than 15 days after the
publication of this notice in the Official Journal of the
European Union.

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,

C 275/32

EN

Official Journal of the European Union

11.11.2006

questionnaire replies and correspondence provided by inter-
ested parties on a confidential basis shall be labelled as
‘Limited (1)’ and, in accordance with Article 29(2) of the basic
accompanied by a non-confidential
Regulation,
version, which will be labelled ‘For inspection by interested
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

8. Non-cooperation

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, provisional or final
findings, affirmative or negative, may be made in accordance

with Article 28 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 of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
the result may be less
Article 28 of the basic Regulation,
favourable to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(9)
of the basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
the basic Regulation,
Union. According to Article 12(1) of
provisional measures may be imposed no later than 9 months
from 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 29 of the basic Regulation and Article 12 of the WTO
Agreement on Subsidies and Countervailing Measures.

It