Notice of initiation of an anti-dumping proceeding concerning imports of certain compressors originating in the People's Republic of China
Date: 2006-12-21
Institutions: European Commission
Subjects: China, anti-dumping legislation, import, machinery

C 314/2

EN

Official Journal of the European Union

21.12.2006

Notice of initiation of an anti-dumping proceeding concerning imports of certain compressors
originating in the People's Republic of China

(2006/C 314/02)

The Commission has received a complaint pursuant to Article 5
of Council Regulation (EC) No 384/96 on protection against
dumped imports from countries not members of the European
Community (‘the basic Regulation’) (1) alleging that imports of
certain compressors, originating in the People's Republic of
China (‘the country concerned’), are being dumped and are
thereby causing material injury to the Community industry.

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, the quantities sold
and the level of prices charged by the Community industry,
resulting in substantial adverse effects on the overall perfor-
mance and financial situation of the Community industry.

1. Complaint

The complaint was lodged on 20 November 2006 by Federa-
zione ANIMA/COMPO (‘the complainant’) on behalf of produ-
cers representing a major proportion,
in this case more than
50 % of the total Community production of certain compres-
sors.

2. Product

The product allegedly being dumped is reciprocating compres-
sors, including reciprocating compressor pumps, giving a flow
not exceeding 2 cubic metres (m3) per minute, originating in the
People's Republic of China (‘the product concerned’), normally
declared within CN codes
ex 8414 40 10, 8414 80 22,
ex 8414 80 28 and ex 8414 80 51. These CN codes are only
given for information.

3. Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for
the People's
the price in a market
Republic of China on the basis of
economy country, which is mentioned in point 5.1(d).The alle-
gation of dumping is based on a comparison of normal value,
thus calculated, with the export prices of the product concerned
when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China have
increased overall
in absolute terms and in terms of market
share.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Council Regu-

lation (EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17.).

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the Com-
munity industry and that there is sufficient evidence to justify
the initiation of a proceeding, the Commission hereby initiates
an investigation pursuant to Article 5 of the basic Regulation.

5.1. Procedure for the determination of dumping and injury

The investigation will determine whether the product concerned
originating in the People's Republic of China is being dumped
and whether this dumping has caused injury.

(a) Sampling

In view of the apparent large number of parties involved in
the Commission may decide to apply
this proceeding,
sampling in accordance with Article 17 of the basic Regu-
lation.

(i) Sampling

for
People's Republic of China

expor ters/producers

in

the

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 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
units of the product concerned sold for export to
the Community during the period 1 October 2005
to 30 September 2006,

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

21.12.2006

EN

Official Journal of the European Union

C 314/3

— 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,

— 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,

— 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-operated in the investigation. The
consequences of non-cooperation are set out
in
point 8 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 People's Republic of China, and any known
associations of exporters/producers.

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in units 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 origin-
ating in the People's Republic of China,

— 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,

— 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
it does not agree to its
company indicates that
possible inclusion in the sample, it will be deemed
to not have co-operated in the investigation. The
consequences of non-cooperation are set out
in
point 8 below.

the selection of

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

the sample of

importers,

(ii) Sampling for impor ters

(iii) Sampling for Community producers

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,

(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 invol-
ving non market economy countries/economies in transition, 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 view of the large number of Community producers
supporting the complaint, the Commission intends to
injury to the Community industry by
investigate
applying sampling.

In order to enable the Commission to select a sample,
all Community producers are hereby requested to
provide the following information on their company or
companies 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 total turnover in EUR of the company during
the period 1 October 2005 to 30 September 2006,

— the precise activities of the company with regard to

the production of the product concerned,

— the value in euro of sales of the product concerned
made in the Community market during the period
1 October 2005 to 30 September 2006,

— the volume in units of

the product
concerned made in the Community market during
the period 1 October 2005 to 30 September 2006,

sales of

C 314/4

EN

Official Journal of the European Union

21.12.2006

— the volume in units of

the
product concerned during the period 1 October
2005 to 30 September 2006,

the production of

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

companies (1)
selling of the product concerned,

— 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-operated in the investigation. The
in
consequences of non-cooperation are set out
point 8 below.

(iv) Final selection of the samples

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).

samples

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

after having

consulted

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 17(4) and 18 of the basic Regulation, on the
facts available. A finding based on facts available may
to the party concerned, as
be less advantageous
explained in point 8.

in the People's Republic of China
Exporters/producers
claiming an individual margin, with a view to the applica-
tion of Articles 17(3) and 9(6) 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 none-
theless 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

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence has to reach the Commission within
the time limit set in point 6(a)(ii).

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).

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose Brazil as an appropriate market
economy country for the purpose of establishing normal
value in respect of the People's Republic of China. Interested
parties are hereby invited to comment on the appropriate-
ness of this choice within the specific time limit set in point
6(c).

(b) Questionnaires

(e) Market economy status

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the sampled Community industry and to any association of
producers in the Community, to the sampled exporters/
producers in the People's Republic of China, to any associa-
tion of exporters/producers, to the sampled importers, to
any association of importers named in the complaint, and
to the authorities of the exporting country concerned.

(1) 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).

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
i.e. that they
operate under market economy conditions,
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 point 6(d).
The Commission will send claim forms to all exporters/
producers in the People's Republic of China named in the
complaint and to any association of exporters/producers
named in the complaint, as well as to the authorities of the
People's Republic of China.

21.12.2006

EN

Official Journal of the European Union

C 314/5

5.2. Procedure for assessment of Community interest

In accordance with Article 21 of the basic Regulation and in the
event that the allegations of dumping and injury caused thereby
are substantiated, a decision will be reached as to whether the
adoption of anti-dumping measures would not be against the
Community interest. For this reason the Community industry,
importers, their representative 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 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 21 will only be taken
into account if supported by factual evidence at the time of
submission.

6. Time limits

(a) General time limits

(i) For par ties to request a questionnaire or other

claim for ms

All interested parties 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) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

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).

(iii) Hear ings

All interested parties may also apply to be heard by the
Commission within the same 40 day time limit.

(b) Specific time limit in respect of sampling

Journal of

(i) The information specified in point 5.1(a)(i), 5.1(a)(ii)
and 5.1(a)(iii) should reach the Commission within 15
days of the date of publication of this notice in the Offi-
cial
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 Journal of
the European Union.

the European Union, given that

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

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

Parties to the investigation may wish to comment on the
appropriateness of Brazil which, as mentioned in point 5.1
the
(d),
is envisaged as a market-economy country for
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 and/or for individual treatment

for market economy status

(as
Duly substantiated claims
mentioned in point 5.1(e)) and/or
treatment
pursuant to Article 9(5) of the basic Regulation, must reach the
Commission within 15 days of the date of publication of this
notice in the Official Journal of the European Union.

individual

for

7. 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 interested
parties on a confidential basis shall be labelled as ‘Limited’ (1)
and, in accordance with Article 19(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘For inspection by interested parties’.

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the Euro-
pean 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 Imple-
mentation of Article VI of the GATT 1994 (Anti-dumping Agreement).

C 314/6

EN

Official Journal of the European Union

21.12.2006

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 find-
ings, 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 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
Article 18 of the basic Regulation, the result may be less favour-
able to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 6(9) of
the basic Regulation within 15 months of the date of the publi-
cation of this notice in the Official Journal of the European Union.
According to Article 7(1) of the basic Regulation, provisional
measures may be imposed no later than 9 months from the
publication of this notice in the Official Journal of the European
Union.