Notice of initiation of an expiry review of the antidumping measures applicable to imports of urea originating in Belarus, Croatia, Libya and Ukraine
Date: 2006-12-22
Institutions: European Commission
Subjects: Belarus, Croatia, Libya, Ukraine, anti-dumping legislation, organic fertiliser

22.12.2006

EN

Official Journal of the European Union

C 316/13

Notice of initiation of an expiry review of the antidumping measures applicable to imports of urea
originating in Belarus, Croatia, Libya and Ukraine

(2006/C 316/06)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of urea origin-
ating in Belarus, Croatia, Libya
(‘countries
concerned’), the Commission has received a request for review
pursuant to Article 11(2) of Council Regulation (EC) No 384/96
on protection against dumped imports from countries not
members of
the European Community (‘the basic Regu-
lation’) (2).

and Ukraine,

1. Request for review

On this basis, the dumping margins calculated for Croatia and
Libya are significant.

In view of the provisions of Article 2(7) of the basic Regulation,
the applicant established normal value for Belarus on the basis
of the price in an appropriate market economy country, which
is mentioned in point 5.1(d). The allegation of recurrence of
dumping is based on a comparison of normal value, as set out
in the previous sentence, with the export prices of the product
concerned when sold for export to the United States of America
given the current absence of significant volumes from Belarus.

The request was lodged on 17 October 2006 by the European
Fertiliser Manufacturers Association (EFMA) (‘the applicant’) on
behalf of producers representing a major proportion,
in this
case more than 50 %, of the total Community production of
urea.

The allegation of recurrence of dumping for Ukraine is based on
a comparison of a constructed normal value with the export
prices of the product concerned when sold for export to Brazil
import
and Turkey given the current absence of significant
volumes from Ukraine.

2. Product

The product under review is urea, whether or not in aqueous
solution originating in Belarus, Croatia, Libya and Ukraine (‘the
product concerned’), currently classifiable within CN codes
3102 1010 and 3102 10 90. These CN codes are given only
for information.

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 92/2002 (3), as
last amended by Council Regulation (EC) No 73/2006. (4)

4. Grounds for the review

The request is based on the grounds that the expiry of the
measures would be likely to result in a continuation or recur-
rence of dumping and injury to the Community industry.

On the basis of the above comparisons of normal values and
export prices, which show dumping from Belarus and Ukraine,
the applicant alleges that there is a likelihood of recurrence of
dumping.

The applicant further alleges the likelihood of further injurious
dumping. In this respect, the applicant presents evidence that,
should measures be allowed to lapse, the likely prices of the
imports from the countries concerned would undercut
the
Community industry's prices in the short and the medium term.
Furthermore, the applicant presents evidence that the current
import level of the product concerned is likely to increase due
to the existence of unused capacity in the countries concerned.

imports of

is also alleged that

It
the product
the flow of
concerned is likely to rise due to the measures in force on
imports of similar products originating in some of the countries
concerned in traditional markets other than the EU (i.e. the
United States of America) or other measures restricting access to
third country markets (Chinese import and export restrictions)
which can lead to a further direction to the Community of
potential exports.

The allegation of continuation of dumping in respect of Croatia
is based on a comparison of normal value, established on the
basis of domestic prices, with the export prices of the product
concerned when sold for export to the Community.

In addition, the applicant alleges that any recurrence of substan-
tial
imports at dumped prices from the country concerned
would likely lead to a recurrence of further injury of the Com-
munity industry should measures be allowed to lapse.

The allegation of continuation of dumping in respect of Libya is
based on a comparison of a constructed normal value with the
export prices of the product concerned when sold for export to
the Community.

5. Procedure

(1) OJ C 93, 21.4.2006, p. 6.
(2) 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.).

(3) OJ L 17, 19.1.2002, p. 1.
(4) OJ L 12, 18.1.2006, p. 1.

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
the Commission hereby initiates a review in
expiry review,
accordance with Article 11 (2) of the basic Regulation.

C 316/14

EN

Official Journal of the European Union

22.12.2006

5.1. Procedure for the determination of likelihood of dumping

— any other relevant information that would assist the

and injury

Commission in the selection of the sample,

The investigation will determine whether the expiry of
the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury.

(a) Sampling

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

(i) Sampling for expor ters/producers in Ukraine

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
formats 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
tonnes of the product concerned sold for export to
the Community during the period 1 July 2005 until
30 June 2006,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold on the
domestic market during the period 1 July 2005
until 30 June 2006,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold to other
third countries during the period 1 July 2005 until
30 June 2006,

— the precise activities of the company with regard to
the production of the product concerned and the
production volume
the product
concerned, the production capacity and the invest-
ments in production capacity during the period 1
July 2005 until 30 June 2006,

in tonnes of

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

companies (1)
selling (export and/or domestic) of
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).

— 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 exporting country, and any known associa-
tions of exporters/producers.

(ii) Sampling for impor ters

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 EUR of the company during

the period 1 July 2005 until 30 June 2006,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in EUR of imports
into and resales made in the Community market
during the period 1 July 2005 until 30 June 2006
of the imported product concerned originating in
Belarus, Croatia, Libya and Ukraine,

— 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.

22.12.2006

EN

Official Journal of the European Union

C 316/15

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,

(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).

(iii) Sampling for Community producers

In view of the large number of Community producers
supporting the request,
the Commission intends to
investigate
injury to the Community industry by
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):

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

numbers and contact person,

— the total turnover in EUR of the company during

the period 1 July 2005 until 30 June 2006,

— the precise activities of the company with regard to
the production of the product concerned during the
period 1 July 2005 until 30 June 2006,

— the value in EUR of sales of the product concerned
made in the Community market during the period
1 July 2005 until 30 June 2006,

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 July 2005 until 30 June 2006,

— the volume in tonnes of

the
product concerned during the period 1 July 2005
until 30 June 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
consequences of non-cooperation are set out
in
point 8 below.

(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).

samples

The Commission intends to make the final selection of
the
the parties
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 co-operate 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
be less advantageous
to the party concerned, as
explained in point 8.

(b) Questionnaires

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 Ukraine, to the exporters/producers in Belarus,
Croatia, Libya, to any association of exporters/producers, to
the sampled importers,
importers
named in the request or which co-operated in the investiga-
tion leading to the measures subject to the present review,
and to the authorities of the exporting countries concerned.

to any association of

(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 must 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 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 Belarus.
The Commission envisages to use 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 6(c).

C 316/16

EN

Official Journal of the European Union

22.12.2006

5.2. 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, or repeal the anti-dumping measures
would not be against the Community interest. For this reason
the Community industry, importers, their representative associa-
tions, representative users and representative consumer organi-
sations, 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 previous
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

interested parties who did not co-operate in the
All
investigation leading to the measures subject
to the
present review should request a questionnaire as soon
as possible, but not later than 15 days after the publica-
tion 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 limit specified in point 6
(b)(iii).

Journal of

(i) The information specified in paragraph 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
Official
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 Journal of
the European Union.

(ii) All other information relevant for the selection of the
reach the
sample as referred to in 5.1(a)(iv) must
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 the United States of America which, as
mentioned in point 5.1(d),
is envisaged as a market-
economy country for the purpose of establishing normal
value in respect of Belarus. 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.

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’.

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

(iii) Hear ings

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

(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).

22.12.2006

EN

Official Journal of the European Union

C 316/17

8. 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
in accordance with Article 18 of the
and use may be made,
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.

9. 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.

10. Possibility to request a review under Article 11(3) of

the basic Regulation

As this expiry review is initiated in accordance with the provi-
the findings
sions of Article 11(2) of
thereof will not lead to the level of the existing measures being
amended but will
lead to those measures being repealed or
maintained in accordance with Article 11(6) of the basic Regu-
lation.

the basic Regulation,

If any party to the proceeding considers that a review of the
level of the measures is warranted so as to allow for the possibi-
lity to amend (i.e. increase or decrease) the level of the measures,
that party may request a review in accordance with Article 11
(3) of the basic Regulation.

Parties wishing to request such a review, which would be carried
the expiry review mentioned in this
out
notice, may contact the Commission at the address given above.

independently of