Commission Regulation (EC) No 217/2007 of 28 February 2007 initiating an investigation concerning the possible circumvention of countervailing measures imposed by Council Regulation (EC) No 1628/2004 on imports of certain graphite electrode systems originating in India by imports of certain artificial graphite originating in India and making such imports subject to registration
Date: 2007-02-28
Institutions: European Commission
Subjects: India, countervailing charge, electrical equipment, fraud against the EU, import, originating product

1.3.2007

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Official Journal of the European Union

L 62/19

COMMISSION REGULATION (EC) No 217/2007

of 28 February 2007

initiating an investigation concerning the possible circumvention of countervailing measures
imposed by Council Regulation (EC) No 1628/2004 on imports of certain graphite electrode
systems originating in India by imports of certain artificial graphite originating in India and
making such imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

C. EXISTING MEASURES

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 2026/97 of
6 October 1997 on protection against subsidised imports
from countries not members of the European Community (1)
(the basic Regulation), and in particular Article 23(2) and Article
24(3) and 24(5) thereof,

(5)

(6)

After having consulted the Advisory Committee,

The measures currently in force and allegedly being
circumvented are countervailing measures imposed by
Council Regulation (EC) No 1628/2004 (2).

D. GROUNDS

The request contains sufficient prima facie evidence that
the countervailing measures on imports of the product
concerned are being circumvented by means of imports
of the product under investigation.

Whereas:

(7)

The evidence submitted is as follows:

(1)

(2)

(3)

(4)

A. REQUEST

The Commission has received a request pursuant
to
Article 23(2) of the basic Regulation to investigate the
the countervailing measures
alleged circumvention of
electrode
imposed on imports of
systems originating in India.

certain graphite

The request was lodged on 15 January 2007 by the
European Carbon and Graphite Association (ECGA) on
behalf of Community producers of certain graphite
electrode systems.

B. PRODUCT

The product concerned by the possible circumvention is
graphite electrodes of a kind used for electric furnaces,
with an apparent density of 1,65 g/cm3 or more and an
electrical resistance of 6,0 μΩ.m or less, falling within CN
code ex 8545 11 00 (TARIC code 8545 11 00 10) and
nipples used for such electrodes, falling within CN code
ex 8545 90 90 (TARIC code 8545 90 90 10) whether
imported together or
separately originating in India
(‘the product concerned’). These codes are given for infor-
mation only.

The product under investigation is artificial graphite rods
of a diameter of 75 mm or more originating in India
(‘the product under
investigation’), normally declared
under CN code ex 3801 10 00 (TARIC 3801 10 00 10).
This code is given for information only. The product
in the
under investigation is an intermediate product
manufacturing of the product concerned, and it already
embodies the basic characteristics of the latter product.

(i) the request shows that a significant change in the
pattern of trade involving exports from India to the
Community has taken place following the imposition
of
product
concerned, and that there is insufficient due cause
the
or justification other than the imposition of
duty for such a change;

countervailing measures

the

on

(ii) this change in the pattern of trade appears to stem
from a simple conversion operation carried out in
the Community whereby imports of
the product
under investigation are converted into the product
concerned;

(iii) furthermore,

the remedial effects of

the request contains sufficient prima
facie evidence that
the
existing countervailing measures on the product
concerned are being undermined in terms of
quantity. Significant volumes of
the
product under investigation from India appear to
have replaced imports of the product concerned;

imports of

(iv) finally,

the request contains sufficient prima facie
evidence that the imported product under investi-
gation still benefits from the subsidy;

(v) should circumvention practices covered by Article
than simple
the basic Regulation, other
23 of
conversion, be identified in the course of the inves-
tigation, the investigation may cover these practices
also.

(1) OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Regu-

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

(2) OJ L 295, 18.9.2004, p. 4.

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Official Journal of the European Union

1.3.2007

(8)

(9)

E. PROCEDURE

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant
the basic
Regulation and to make imports of the product under
investigation subject to registration, in accordance with
Article 24(5) of the basic Regulation.

to Article 23 of

(a) Questionnaires

In order to obtain the information it deems necessary for
the Commission will send question-
its investigation,
naires to the exporters/producers and to the associations
of exporters/producers in India, to the importers and to
the associations of importers in the Community which
cooperated in the investigation that led to the existing
measures, and to the authorities of India. Information, as
appropriate, may also be sought from the Community
industry.

related to producers

to the
they are not
measures.
Importers wishing to obtain an exemption
should submit a request duly supported by evidence
within the time limit indicated in Article 3(3) of this
Regulation.

subject

F. REGISTRATION

(15)

the product under

Pursuant to Article 24(5) of the basic Regulation, imports
of
investigation should be made
subject to registration in order to ensure that, should
the investigation result
in findings of circumvention,
countervailing duties of an appropriate amount can be
levied retroactively from the date of registration of such
imports originating in India.

G. TIME LIMITS

(16)

In the interest of sound administration,
should be stated within which:

time limits

(10)

interested parties should contact the
In any event, all
Commission forthwith, but not
than the time
later
limit set in Article 3 of this Regulation in order to find
if
out whether
necessary, request a questionnaire within the time limit
set in Article 3(1) of this Regulation, given that the time
limit set in Article 3(2) of this Regulation applies to all
interested parties.

they are listed in the request and,

— interested parties may make themselves known to the
Commission, present
in writing and
submit questionnaire replies or any other information
to be taken into account during the investigation,

their views

— importers in the Community may request exemption

from registration of imports or measures,

(11)

The authorities in India will be notified of the initiation
of the investigation and provided with a copy of the
request.

— interested parties may make a written request to be

heard by the Commission.

(b) Collection of information and holding of hearings

(12) All

interested parties are hereby invited to make their
views known in writing and to provide supporting
the Commission may hear
evidence.
interested parties, provided that they make a request in
writing and show that there are particular reasons why
they should be heard.

Furthermore,

(13)

(14)

(c) Exemption from registration of imports or measures

In accordance with Article 23(3) of the basic Regulation,
investigation may be
imports of
exempted from registration or measures if the impor-
tation does not constitute circumvention.

the product under

Since the possible circumvention takes place inside the
Community, exemptions may be granted, in accordance
with Article 23(3) of the basic Regulation, to importers
of the product under investigation that can show that

(17) 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 time limits
mentioned in Article 3 of this Regulation.

H. NON-COOPERATION

(18)

In cases in which any interested party refuses access to or
otherwise does not provide 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.

(19) 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 findings are therefore based on the facts
available in accordance with Article 28 of the basic Regu-
lation, the result may be less favourable to that party
than if it had cooperated,

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Official Journal of the European Union

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HAS ADOPTED THIS REGULATION:

Article 1

if

imports

to Article
An investigation is hereby initiated pursuant
in order to
23(2) of Council Regulation (EC) No 2026/97,
determine
artificial
graphite rods of a diameter of 75 mm or more originating in
India, normally
ex 3801 10 00
falling within CN code
circumventing the measures
(TARIC 3801 10 00 10),
imposed by Council Regulation (EC) No 1628/2004.

into the Community of

are

Article 2

The customs authorities are hereby directed, pursuant to Article
23(2) and Article 24(5) of Regulation (EC) No 2026/97, to take
the
into the
to register
Community identified in Article 1 of this Regulation.

appropriate

imports

steps

the

Registration shall expire nine months following the date of
entry into force of this Regulation.

The Commission, by Regulation, may direct customs authorities
to cease registration in respect of imports into the Community
of products imported by importers having applied for an
exemption of registration and having been found not to be
circumventing the countervailing duties.

Article 3

1.
Questionnaires should be requested from the Commission
within 15 days of the date of publication of this Regulation in
the Official Journal of the European Union.

2.
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 in

writing and submit questionnaire replies or any other infor-
mation within 40 days from the date of the publication of
this Regulation in the Official
the European Union,
unless otherwise specified.

Journal of

3.
Importers requesting exemption of imports from regis-
tration or measures should submit a request duly supported
by evidence within the same 40-day time limit.

Interested parties may also apply to be heard by the

4.
Commission within the same 40-day time limit.

Any information relating to the matter, any request for a
5.
hearing or for a questionnaire as well as any request
for
exemption of imports from registration or measures 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 Regu-
lation, questionnaire replies and correspondence provided by
interested parties on a confidential basis shall be labelled as
‘Limited’ (1) and, in accordance with Article 29(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 H
J-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05.

Article 4

This Regulation shall enter into force on the day following 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, 28 February 2007.

For the Commission

Peter MANDELSON
Member of the Commission

(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
the Council of 30 May 2001
European Parliament and of
regarding public access
to European Parliament, Council and
Commission documents (OJ L 145, 31.5.2001, p. 43). It is a confi-
dential document pursuant to Article 29 of Regulation (EC) No
2026/97 and Article 12 of the WTO Agreement on Subsidies and
Countervailing Measures.