Commission Regulation (EC) No 390/2007 of 11 April 2007 imposing a provisional anti-dumping duty on imports of peroxosulphates (persulphates) originating in the United States of America, the People’s Republic of China and Taiwan
Date: 2007-04-11
Institutions: European Commission
Subjects: China, Taiwan, United States, anti-dumping duty, chemical salt, import, originating product

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COMMISSION REGULATION (EC) No 390/2007

of 11 April 2007

imposing a provisional anti-dumping duty on imports of peroxosulphates (persulphates) originating
in the United States of America, the People’s Republic of China and Taiwan

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

writing and to request a hearing within the time limit set
in the notice of initiation.

Having regard to the Treaty
Community,

establishing the European

(5)

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 7 thereof,

Whereas:

(1)

(2)

(3)

(4)

A. PROCEDURE

1. Initiation

On 31 May 2006, the Commission received a complaint
concerning peroxosulphates (persulphates) originating in
the United States of America (USA), the People's Republic
of China (PRC) and Taiwan lodged pursuant to Article 5
of the basic Regulation by CEFIC (the complainant) on
behalf of producers representing 100 % of
the total
Community production of persulphates.

This complaint contained evidence of dumping and of
material injury resulting therefrom, which was considered
sufficient to justify the opening of a proceeding.

On 13 July 2006, the proceeding was initiated by the
publication of a notice of initiation in the Official Journal
of the European Union (2).

2. Parties concerned by the proceeding

(6)

(7)

(8)

(9)

the PRC and Taiwan,

complainant
The Commission officially advised the
Community producers, the exporting producers in the
USA,
traders, users,
suppliers and associations known to be concerned, and
the representatives of the USA, the PRC and Taiwan of
the initiation of the proceeding. Interested parties were
given the opportunity to make their views known in

importers,

(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 C 162, 13.7.2006, p. 5.

if

treatment

individual

they so wished,

In order to allow exporting producers in the PRC to
submit a claim for market economy treatment (MET)
the
(IT),
or
Commission sent claim forms to the Chinese exporting
producers known to be concerned and to other Chinese
exporting producers that made themselves known within
initiation. Six
in the notice of
the deadlines set out
exporting producers together with their
related sales
companies, where appropriate, requested MET pursuant
to Article 2(7) of the basic Regulation, or IT should the
investigation establish that
the
conditions for MET.

they did not meet

the apparent high number of exporting
In view of
producers in the PRC the Commission indicated in the
notice of initiation that sampling might be applied in this
investigation for
the determination of dumping and
injury in accordance with Article 17 of the basic Regu-
lation.

In order to enable the Commission to decide whether
sampling would be necessary and,
to select a
sample, all exporting producers in the PRC were asked
to make themselves known to the Commission and to
provide, as specified in the notice of
initiation, basic
information on their activities related to the product
concerned during the calendar year 2005.

if so,

Given that only six exporting producers cooperated in
the investigation, it was decided that sampling was not
required.

Questionnaires were sent
to all parties known to be
concerned and to all other companies that made them-
selves known within the deadlines set out in the notice
of initiation. Replies were received from six exporting
two in the USA and one in
producers in the PRC,
Taiwan, and one producer
in the analogue country,
Turkey. Full questionnaire replies were also received
from two Community producers and two importers
cooperated
reply.
Furthermore, none of
the users replied to the ques-
tionnaire and no other users supplied the Commission
with any information or made themselves known in the
course of this investigation.

questionnaire

submitting

by

a

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(10)

The Commission sought and verified all the information
deemed necessary for a provisional determination of
dumping, resulting injury and Community interest and
carried out verifications at the premises of the following
companies:

(11)

In view of the need to establish a normal value for
exporting producers
to which MET might not be
granted, a verification to establish normal value on the
basis of data from an analogue country, Turkey in this
the following
case,
company:

the premises of

took place at

(a) Community producers

— Degussa
Germany

Initiators GmbH&Co. KG,

Pullach,

— RheinPerChemie GmbH, Hamburg, Germany

Producer in Turkey

— Ak-kim Kimya Sanayi Ve Ticaret A.Ș., Istanbul.

(b) Exporting producers in the PRC

3. Investigation period and period considered

— Degussa-AJ
Shanghai
Shanghai AJ
Shanghai

and

(Shanghai)
its
Import

Co.,

Initiators

Ltd,
company
and Export Co., Ltd,

trading

related

(12)

The investigation of dumping and injury covered the
period from 1 July 2005 to 30 June 2006 (investigation
period or IP). The examination of the trends relevant for
injury covered the period from 1
the assessment of
January 2003 to the end of
the investigation period
(period considered).

— ABC Chemicals (Shanghai) Co., Ltd, Shanghai and
its related trading company Siancity Xiamen Co.,
Ltd, Xiamen

— Hebei Jiheng Group Co., Ltd, Hengshui

— Hebei Yatai Electrochemistry Co., Ltd, Wang Jia

Jing

— Shaanxi Baohua Technologies Co., Ltd, Baoji

— Shangyu Jiehua Chemical Co., Ltd, Shangyu

(13)

(14)

(c) Exporting producers in the USA

— E.I. DuPont De Nemours, Wilmington, Delaware

(15)

— FMC Corporation, Tonawanda, New York

(d) Related trader in Switzerland

— DuPont De Nemours International S.A., Geneva

(e) Exporting producers in Taiwan

— San Yuan Chemical Co., Ltd, Chiayi.

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

The product concerned is peroxosulphates (persulphates)
originating in the USA, the PRC and Taiwan (the product
concerned). The product concerned is normally declared
within CN codes 2833 40 00 and ex 2842 90 80 (CN
codes since 1 January 2007).

four main types:

Persulphates are white, crystalline, odourless salts, which
ammonium persulphate
comprise
(NH4)2S2O8, sodium persulphate (Na2S2O8), potassium
persulphate (K2S2O8) and potassium monopersulphate
(2KHSO5 * KHSO4 * K2SO4).

The product concerned is used as an initiator or as an
oxidising agent
in a number of applications. Some
examples include its use as a polymerisation initiator in
the production of polymers, as an etching agent in the
production of printed circuit boards, in hair cosmetics, in
textile desizing,
in paper manufacturing, as a denture
cleanser and as a disinfectant.

the same product on the grounds that

(16) One US exporting producer claimed that potassium
monopersulphate (KMPS) should not be considered part
of
it has a
different chemical composition and structure, different
end-uses and different customers.
It was also claimed
that KMPS would be sold at different price levels from
the other product types.

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(17)

(18)

shown that, despite
The investigation has however
differences in chemical
formula, and partially distinct
uses, the different types of the product concerned all
share the same basic chemical and technical character-
istics and can be used for the same basic purposes. It is
acknowledged that not all types are used for all appli-
cations, but they were all found to be interchangeable for
least some significant applications. As far as the
at
different price levels are concerned,
it is recalled that
this alone is not determinant as to whether several
product types constitute one single product. As it has
been found that all four types had similar characteristics
and common end-uses this argument had to be rejected.
Consequently, all four types are provisionally considered
to constitute a single product for the purpose of this
proceeding.

(22)

sold domestically by the

The Commission subsequently identified those product
companies having
types
overall
sales, which were
domestic
identical or directly comparable with the types sold for
export to the Community.

representative

(23) Domestic

sufficiently

that product

sales of a particular product

type were
representative when the
considered as
type sold on the domestic
volume of
to independent customers during the investi-
market
gation period represented 5 % or more of
the total
volume of the comparable product type sold for export
to the Community.

2. Like product

(24)

sold

the Community

the basic physical and
The investigation showed that
the persulphates produced
technical characteristics of
and
the
industry
by
Community, persulphates produced and sold on the
domestic markets of the USA, the PRC and Taiwan and
persulphates imported into the Community from these
countries, as well as those produced and sold in Turkey,
the analogue country, are the same and that
these
products have the same uses.

in

The Commission subsequently examined whether the
domestic sales of each type of persulphates sold dom-
estically in representative quantities by each company in
each exporting country could be considered as being
made in the ordinary course of
to
Article 2(4) of the basic Regulation. This was done by
establishing the proportion of profitable domestic sales
to independent customers, of each exported product
type, on the domestic market during the investigation
period, as follows:

trade pursuant

(19)

It is therefore provisionally concluded that these products
are alike within the meaning of Article 1(4) of the basic
Regulation.

C. DUMPING

1. General methodology

(20)

The general methodology set out below has been applied
to all cooperating exporting producers in the USA and
Taiwan, as well as for the cooperating Chinese exporting
producers for which MET was granted. The presentation
of the findings on dumping for each of the countries
concerned therefore only describes matters specific to
each exporting country.

(25) Where the sales volume of a product type, sold at a net
sales price equal
to or above the calculated cost of
production, represented more than 80 % of
the total
type, and where the weighted
sales volume of
average price of that type was equal to or above the
cost of production, normal value was based on the
actual domestic price. This price was calculated as a
weighted average of the prices of all domestic sales of
irrespective of whether
that type made during the IP,
these sales were profitable or not.

that

(26) Where the volume of profitable sales of a product type
represented 80 % or less of the total sales volume of that
type, or where the weighted average price of that type
was below the cost of production, normal value was
based on the actual domestic price, calculated as a
weighted average of profitable sales of that type only,
provided that these sales represented 10 % or more of
the total sales volume of that type.

1.1. Normal value

(21)

In accordance with Article 2(2) of the basic Regulation,
the Commission first examined for each exporting
producer whether the domestic sales of
the product
concerned to independent customers were representative,
i.e. whether the total volume of such sales was equal to
or greater than 5 % of the total volume of the corre-
sponding export sales to the Community.

(27) Where the volume of profitable sales of any product type
represented less than 10 % of the total sales volume of
that type, it was considered that this particular type was
sold in insufficient quantities for the domestic price to
provide an appropriate basis for the establishment of the
normal value.

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(28) Wherever domestic prices of a particular product type
sold by an exporting producer could not be used in
order to establish normal value, another method had to
be applied. In accordance with Article 2(3) of the basic
a
Regulation
constructed normal value, as follows.

the Commission

calculated

instead

(29) Normal value was constructed by adding to each
exporter’s manufacturing costs of
the exported types,
adjusted where necessary, a reasonable amount
for
selling, general and administrative expenses (SG&A) and
a reasonable margin of profit.

(30)

In all cases SG&A and profit were established pursuant to
the methods set out in Article 2(6) of the basic Regu-
lation. To this end, the Commission examined whether
the SG&A incurred and the profit realised by each of the
exporting producers concerned on the domestic market
constituted reliable data.

1.2. Export price

(31)

In all cases where the product concerned was exported to
independent customers in the Community, the export
price was established in accordance with Article 2(8) of
the basic Regulation, namely on the basis of export
prices actually paid or payable.

the

(32) Where the export sale was made via related importers
based in the Community,
export price was
constructed, pursuant to Article 2(9) of the basic Regu-
lation, on the basis of the price at which the imported
products were first resold to an independent buyer, duly
adjusted for all costs incurred between importation and
resale, as well as a reasonable margin for SG&A and
profits. In this regard, the related importers’ own SG&A
costs were used. The profit margin was established on
the basis of the information available from cooperating
unrelated importers.

(33) Where the export sale was made via a related trader
located outside the Community, the export price was
established on the basis of the first resale price to inde-
pendent customers in the Community.

affecting prices and price comparability in accordance
with Article 2(10) of the basic Regulation.

1.4. Dumping margins

Pursuant to Articles 2(11) and (12) of the basic Regu-
lation dumping margins were established on the basis of
a comparison of a weighted average normal value by
product type with a weighted average export price by
product type as established above.

In order to determine the dumping margin for non-
the level of non-
cooperating exporting producers,
cooperation was
the
volume of exports to the Community reported by the
cooperating exporting producers was compared with the
equivalent Eurostat import statistics.

first established. To this end,

(36)

(37)

(38) As the level of cooperation in the USA and Taiwan was
high (effectively 100 %), and since there was no reason to
believe that any exporting producer in these countries
it was
deliberately
considered appropriate to set
the residual dumping
margin for any non-cooperating exporting producers in
each of
the
the level of
highest margin imposed on a cooperating exporter.

the countries concerned at

from cooperating,

abstained

(39) As regards the PRC, the level of cooperation assessed at
the level of the country was also very high (above 85 %).
The specific methodology applied to determine the coun-
trywide dumping margin for the PRC is explained below.

2. USA

2.1. Normal value

(40)

For both cooperating exporting producers,
the total
volume of domestic sales of the like product was rep-
resentative as defined in recital 21 above. For all product
types normal value was thus based on prices paid or
payable, in the ordinary course of trade, by independent
customers in the USA, as explained in recitals 25 and 26,
since these sales represented in all cases 10 % or more of
the total sales volume of that type.

1.3. Comparison

(34)

The comparison between normal value and export price
was made on an ex-factory basis.

2.2. Export price

(35)

For the purpose of ensuring a fair comparison between
the normal value and the export price, due allowance in
the form of adjustments was made for differences

(41)

The exports of the one of the cooperating exporting
producers were made directly to independent customers
in the Community. The export price was therefore based,
for that exporter, on the prices actually paid or payable
for the product concerned in accordance with Article
2(8) of the basic Regulation.

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(42)

For the other exporter, all its sales to the Community are
through a related trading company in Switzerland. The
export price was therefore established as described in
recital 33.

(43)

(44)

(45)

(46)

(47)

Furthermore, a significant part of the export sales of this
exporting producer in the USA to the Community via its
related company in Switzerland were to a related
company which used the product concerned as a raw
material
to produce another product which is not
considered to be a like product within the meaning of
Article 1(4) of the basic Regulation.

for the transactions between the
Since the prices set
related company in the
exporting producer and its
Community
in
via
Switzerland was found to have been affected by the re-
lationship between the three companies,
these prices
could not be relied upon to determine an export price
for those transactions.

related trading company

their

Since furthermore no export price could be constructed
based on the resale price of the related company to
independent customers, as the product concerned goes
under substantial transformation to get the final product
manufactured by the related company, all those trans-
actions corresponding to captive use were ignored in
the determination of the export price.

2.3. Comparison

The normal value and export prices were compared on
an ex-works basis, as described above, with adjustments,
in accordance with Article 2(10) of
where appropriate,
for
the basic Regulation. Adjustments were made
discounts,
handling,
transport,
loading and ancillary costs, packing, credit and import
duties.

insurance,

rebates,

For
the sales channelled by one exporting producer
through its related trader in Switzerland, an adjustment
was made in accordance with Article 2(10)(i) of the basic
Regulation. The adjustment was based on the markup
in
received by the related trader in Switzerland, but
this calculation the actual profit of the related trader
could not be used since the relationship between the
exporting producer and the related trader significantly
affected transfer prices. The markup was thus calculated
as the sum of the SG&A expenses borne by the related
trading company during the IP and a reasonable margin
for profit, which was set at 5 % at this stage,
in the
absence of any meaningful information from cooperating
unrelated companies assuming comparable functions.

(48) One exporting producer in the USA claimed a level of
trade adjustment under Article 2(10)(d) of
the basic
Regulation on the grounds that certain of its domestic
sales were allegedly not comparable to its export sales
due to the existence of categories of customers on the
domestic market
functions are
assumed by the exporting producer. However, the inves-
tigation established that
this claim was unwarranted,
insofar as the company did not provide evidence in
functions.
support
Moreover, the alleged differences in prices between the
categories claimed were not
found consistent across
product types. Therefore, the claim was rejected.

for which different

differences

alleged

the

of

in

2.4. Dumping margins

(49)

Since the level of cooperation was high, and there was
no reason to believe that any exporting producer delib-
erately abstained from cooperation, the residual margin
applicable to all other exporters in the USA was set at
the same level as the one established for the cooperating
exporting producer with the highest dumping margin.

(50)

The dumping margins, expressed as a percentage of the
cif import price at the Community border, duty unpaid,
are provisionally the following:

E.I. DuPont De Nemours

FMC Corporation

All other companies

28,3 %

84,1 %

84,1 %

3. China

3.1. Market economy treatment (MET)

(51)

in
Pursuant to Article 2(7)(b) of the basic Regulation,
anti-dumping investigations concerning imports orig-
inating in the PRC, normal value shall be determined
in accordance with paragraphs 1 to 6 of
the said
Article for those producers which are found to meet
the criteria laid down in Article 2(7)(c) of the basic Regu-
lation.

(52)

Briefly, and for ease of reference only, the MET criteria
are set out in summarised form below:

1. Business decisions and costs are made in response to
market signals and without significant State inter-
ference
substantially
reflect market values;

and costs of major

inputs

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2. Firms have one clear set of basic accounting records
which are independently audited, in line with interna-
tional accounting standards (IAS) and are applied for
all purposes;

3. There are no significant distortions carried over from

the former non-market economy system;

4. Bankruptcy

and property

laws

guarantee

legal

certainty and stability; and

5. Exchange rate conversions are carried out at market

rates.

(53)

Six exporting producers
to
Article 2(7)(b) of the basic Regulation and replied to

requested MET pursuant

in

three

companies

exporting producers

all
applications

the MET claim form for exporting producers within the
given deadline. The Commission sought and verified at
information
these
the premises of
deemed
submitted
as
the MET
the MET
necessary. The investigation revealed that
could only be granted to three exporting producers,
whereas the claim had to be rejected for the other
three exporting producers. It is noted that for one of
the
this
decision is subject to further examination of late infor-
mation that could not be fully investigated at this stage,
as described below. This information, if confirmed by the
further investigation, could lead to a significant change in
the factual situation on the basis of which MET was
insofar as it may affect the
granted to that company,
fulfilment of criterion 1. The following table summarises
the determination for the three companies for which
MET was not granted against each of the five above-
mentioned criteria:

granted MET,

Company

1

2

3

(1)

(2)

Criterion

(3)

(4)

Not fulfilled

Not fulfilled

Not fulfilled

Fulfilled

Not fulfilled

Not fulfilled

Not fulfilled

Fulfilled

Not fulfilled

Not fulfilled

Not fulfilled

Fulfilled

(5)

Fulfilled

Fulfilled

Fulfilled

(54)

The investigation showed for companies 1, 2 and 3
above that they did not meet the requirements of the
aforementioned criteria 1, 2 and 3.

used to start the company was obtained from the village-
owned and collectively-owned enterprises managed by
and the
the
company was not able to explain and demonstrate the
origin of the capital.

current Chairman of

company

the

(55) Namely, all three companies could not demonstrate that
their business decisions were taken in response to market
signals, without significant State interference.

(57) Moreover, all three companies’ accounts were not kept in
line with IAS, and signs of serious negligence in the audit
of those accounts were found.

(56)

Indeed for company 1 it was found that the majority of
the Directors on the Board, including the Chairman, who
owns a significant share in the company, were the same
as before privatisation and had been appointed by the
the
State. They were also found to be members of
Communist Party. Moreover, the company was unable
to prove payment for the shares during the privatisation
process. In company 2, which was founded as a State-
owned enterprise and privatised in 2000, the investi-
gation showed that three members of the management
staff
to the privatisation
conducted the privatisation and still had control over
the main decision-making bodies of
the company.
Those three persons were found to be members of the
Communist Party. Furthermore, company 2 was found to
have provided false information with regard to the
its shares and the privatisation process,
ownership of
thereby hiding significant State
to
company 3, there were strong indications that capital

interference. As

in post prior

that were

(58)

Finally, distortions carried over from the non-market
economy system were found to affect
the costs for
both companies,
in particular with regard to cost of
the land-use rights acquired (companies 1 and 3) or
assets transferred during the privatisation (company 2).

(59) With regard to the three other cooperating exporting
producers it was initially concluded that the companies
met all five criteria.

(60) However, after the disclosure to the interested parties,
which were given an opportunity to comment on the
above findings,
the Community industry claimed that
two of the three exporting producers for which it was
proposed to grant MET should be denied MET (hereunder
referred to as company 4 and company 5).

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(61)

They alleged for company 4 that there was State inter-
ference in the management as well as in the financing of
the company.

the same shareholder, that the accounts were in line with
IAS, and that their land-use right prices were similar to
other companies in the same area and at market prices.

(62)

For company 5 the Community industry stated that they
had understated their number of employees, and queried
the payment of the original capital. They also queried the
losses made by a related trading company.

(69)

Those comments were taken into consideration by the
Commission. However they did not change the finding
that these three companies should be denied MET.

(63) With regard to company 4,

it was not possible to
conclude at this stage whether the allegations constituted
sufficient grounds to deny MET. Whereas the allegations
are considered to be serious, there is at present uncer-
tainty about
the facts underlying these allegations.
Further analyses of the information submitted by the
are
as
company
necessary before a final decision is reached.
In these
to impede the
particular circumstances,
in order not
rights of defence of interested parties,
it was therefore
considered appropriate to grant MET to company 4 at
this stage and to continue the investigation regarding its
MET claim.

investigations

additional

as well

(64) As regards the allegations made against company 5, these
were merely assumptions. The Commission verified the
information submitted by this exporting producer and
concluded that the allegations were not substantiated.
The Commission's findings as regards this company are
thus maintained.

(70)

(71)

(72)

(65)

(66)

(67)

Following disclosure of the Commission's findings, all
three companies denied MET submitted that the determi-
nation was incorrect, that they met all five MET criteria
and that they should be granted MET as a consequence.

In particular, company 1 contended that it had submitted
the proof of the payment in cash for the shares to the
Commission and denied any State influence on its
decision-making
its
It
accounts were kept in line with IAS and that the cost
of the land-use right was in line with market values.

process.

argued

also

that

2

in

contested

that membership

the
Company
Communist Party of
its top management should lead
to the conclusion that there is State interference in the
company's decision process, and said that it submitted
supporting evidence for the payment of the shares during
its privatisation process. The company further argued
that, despite breaching some of the IAS,
its accounts
were in line with the Chinese Accounting Standards.

(68)

Company 3 stated that
the
company was sourced from other companies owned by

the capital used to start

Indeed, company 1 merely alleged that bank statements
were not commonly used in China, but it could not give
any supporting evidence that the shares for its privati-
sation were effectively paid for. The company did not
either contest the fact that the management structure
of the company was the same as prior to privatisation
nor that the Chairman was a member of the Communist
Party. The fact
the main shareholders were not
represented in the Board of Directors was also not
the company
contested. Therefore it was found that
had not
it was not
sufficiently demonstrated that
subject to significant State interference.

that

findings and support

Furthermore, no new elements were provided to reject
claim that accounts
the
complied with IAS and that land-use rights costs were
within market conditions.

the

the shares,

Company 2 disputed the conclusion reached by the
Commission but did not deny the facts on which they
were based. Concerning the privatisation process and the
it
payment of
provided supporting evidence but did not address the
fact
these documents were false, as admitted by
the General Manager during the verification visit. The
the key management
company also confirmed that
the
positions were
Communist Party.

the company argued that

by members

occupied

that

of

(73) Moreover, no new elements were provided to support the
claim that accounts complied with IAS, the company's
statement only being that they were in line with the
Chinese Accounting Standards.

(74)

For company 3, the Commission continued to doubt the
origin of the capital of the company. Indeed, company 3
merely stated that the capital was sourced from related
companies belonging to the Chairman of company 3
through loans which were repaid within a few months.
This new information was not only found to contradict
the statements made by representatives of company 3
during the verification at the premises of the company,
where no documented evidence was made available for
inspection, but is also clearly deficient as it does not
provide any indication of the origin of the funds used
to repay those loans.

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(75)

in fact

investigation were

it provided only partial

The company furthermore restated that its accounts were
kept in line with IAS and that the discrepancies identified
reconcilable.
during the
However,
information to
document the alleged reconciliation, accounting merely
for a minor part of the differences found. In any case,
this new information was submitted only after the inves-
tigation and at such a late stage that
it would be
impractical to verify it. Furthermore, the company also
did not demonstrate that their low land-use right price
was actually a market price.

(76) On this basis, MET is granted to three exporting

producers:

— Degussa-AJ (Shanghai) Initiators Co., Ltd

as explained in recitals 25 and 26, and for the product
types for which the domestic sales were insufficient to be
considered representative or they were not made in the
ordinary course of trade, normal value was constructed
as described in recitals 27 to 30.

(80)

In the cases where the normal value had to be
constructed, the margins for SG&A expenses and profit
referred to in recitals 29 and 30 were based on the actual
SG&A and profit made by the exporting producer for its
domestic sales, in the ordinary course of trade, of the like
product on the domestic market, in accordance with the
first sub-paragraph of Article 2(6) of the basic Regu-
lation.

(b) D e t e r m i n a t i o n o f n o r m a l

f o r
t h e e x p o r t i n g p r o d u c e r s n o t g r a n t e d
M E T

v a l u e

— ABC Chemicals (Shanghai) Co., Ltd

(i) Analogue country

— Hebei Yatai Electrochemistry Co., Ltd

3.2. Individual treatment (‘IT’)

if any,

to Article 2(7)(a) of
is

the basic Regulation, a
Pursuant
to be established for
countrywide duty,
countries falling under
in those
cases where companies are able to demonstrate that
the
they meet all criteria set out
basic Regulation and are therefore granted individual
treatment (‘IT’).

that Article, except

in Article 9(5) of

The exporting producers to which MET could not be
granted also claimed IT in the event that they were not
granted MET. However, the companies’ claim for indi-
treatment was also rejected as they failed to
vidual
meet the criteria set out in Article 9(5)(b), namely that
export prices and quantities were freely determined and
that State interference would not be such as to permit
circumvention of measures if
individual exporters are
given different rates of duty.

3.3. Normal value

(a) D e t e r m i n a t i o n o f n o r m a l

f o r
t h e e x p o r t i n g p r o d u c e r s g r a n t e d M E T

v a l u e

the total volume of domestic sales of

For the three cooperating exporting producers granted
MET,
the like
representative as defined in recital 21
product was
types normal value
above. For some of
was based on prices paid or payable,
in the ordinary
course of trade, by independent customers in the PRC,

the product

(77)

(78)

(79)

(81) According to Article 2(7)(a) of

the basic Regulation,
normal value for the exporting producers not granted
MET has to be established on the basis of the domestic
prices or constructed normal value in an analogue
country.

(82)

In the notice of initiation, the Commission indicated its
intention to use Japan as an appropriate analogue
country for the purpose of establishing normal value
and interested parties were invited to comment on this.
However, no comment was received.

(83) All known producers of persulphates in Japan were

contacted, but none agreed to cooperate.

(84)

(85)

The Commission then contacted and sent questionnaires
to all known producers of persulphates in the other
countries where the Commission was aware that such
and Turkey. No
producers
Indian companies
response was
contacted but one producer in Turkey replied to the
questionnaire.

India
received from the

existed, namely

The Commission then examined whether Turkey was a
reasonable choice of analogue country. It was concluded
that Turkey, despite having only one producer of the
product concerned, was an open market with a low
import
from third
significant
duty
countries. Furthermore,
the investigation showed no
reason, such as excessively high cost of raw materials
or energy, to consider that Turkey was not adequate
for the purpose of establishing normal value.

imports

and

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The data submitted in the cooperating Turkish producer's
reply was verified on the spot and was found to be
reliable information on which a normal value could be
based.

commissions were granted in all cases where they were
found to be reasonable, accurate and supported by
verified evidence.

It is therefore provisionally concluded that Turkey is an
appropriate
in
country
accordance with Article 2(7) of the basic Regulation.

reasonable

analogue

and

(94)

(86)

(87)

(88)

(89)

(ii) Normal value

to Article 2(7)(a) of

Pursuant
the basic Regulation,
normal value for the exporting producers not granted
MET was established on the basis of verified information
received from the producer in the analogue country, i.e.
on the basis of prices paid or payable on the Turkish
market for comparable product types, in accordance with
the methodology set out above.

sales on the domestic market

Since
to unrelated
customers were representative and overall profitable,
normal value was established on the basis of all prices
paid or payable on the Turkish market for comparable
product types, for sales in the ordinary course of trade as
described in recitals 25 and 26.

3.4. Export prices

(90) All cooperating exporting producers made export sales to
the Community either directly to independent customers
through related or unrelated
in the Community; or
companies located in the PRC, in Hong Kong or in the
Community.

(91) Where the product concerned was directly exported to
independent customers in the Community, the export
prices were based on the prices actually paid or
in accordance with
payable for the product concerned,
Article 2(8) of the basic Regulation.

(92) Where sales were made via a related company in the
established
in
Community
the
accordance with Article 2(9) of
the basic Regulation.
Where sales were made via a related company outside
the Community the export price was established on the
basis of the method set out in recital 33.

export price was

3.5. Comparison

(93) Adjustments were made, where

in
accordance with Article 2(10) of the basic Regulation,
and
in respect of
and
ancillary

insurance, handling
credit, bank charges

costs, packing,

appropriate,

transport,

the

sales

shown

For
channelled through related trading
companies, an adjustment was applied in accordance
the basic Regulation, where
with Article 2(10)(i) of
these
perform
been
have
companies
functions similar to those of an agent working on a
commission basis.
the allocation of
SG&A expenditure provided by the related company
was found to be reliable and this adjustment was based
on that amount of SG&A expenses plus a profit margin
of 5 %, being a reasonable profit margin in the absence
of any meaningful data from cooperating unrelated
importers or traders in the Community.

respect,

In this

to

3.6. Dumping margins

(a) F o r t h e c o o p e r a t i n g e x p o r t i n g

p r o d u c e r s g r a n t e d M E T

(95)

The comparison between the normal value and the
export price showed that for two of the three exporters
concerned the dumping margin was below 2 %,
i.e. de
minimis. The dumping margins expressed as a percentage
of the cif import price at the Community border, duty
unpaid, are thus provisionally the following:

Company

Provisional
dumping margin

ABC Chemicals (Shanghai) Co., Ltd

de minimis

Degussa-AJ (Shanghai) Initiators Co., Ltd

14,4 %

Hebei Yatai Electrochemistry Co., Ltd

de minimis

(b) F o r a l l o t h e r e x p o r t i n g p r o d u c e r s

(96)

In order to calculate the countrywide dumping margin
applicable to all other exporters in the PRC, since the
level of cooperation found was high as explained above a
comparison was made, on an ex-works basis, between
the weighted average export price of the three coop-
erating exporters that were not granted MET and the
normal value calculated based on the data in the
analogue country.

(97) On this basis the countrywide level of dumping was
the Cif

provisionally
established
Community frontier price, duty unpaid.

102,7 % of

at

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4. Taiwan

4.1. Normal value

(98)

For the only cooperating exporting producer, the total
volume of domestic sales of the like product was repre-
sentative as defined in recital 21 above. For all product
types normal value was thus based on prices paid or
payable, in the ordinary course of trade, by independent
customers in Taiwan, as explained in recitals 25 and 26,
since these sales represented in all cases 10 % or more of
the total sales volume of that type.

4.2. Export price

(99)

The exports of the only cooperating exporting producer
were made directly to independent customers in the
Community. The export price was therefore based on
the prices actually paid or payable for
the product
concerned in accordance with Article 2(8) of the basic
Regulation.

4.3. Comparison

(100) The normal value and export prices were compared on
an ex-works basis, as described above, with adjustments,
where appropriate,
in accordance with Article 2(10) of
the basic Regulation. Adjustments were made for rebates,
transport,
loading and ancillary
insurance, handling,
costs, packing and credit costs.

(101) The cooperating exporting producer claimed a level of
its
trade adjustment on the grounds that certain of
domestic sales were allegedly made at a level of trade
not comparable with its export sales. In the course of
the investigation,
it was found that the level of trade
declared for one of the main domestic customers was
erroneous, which cast serious doubts on the reliability
of the classification of customers submitted to support
this level of trade adjustment. In any case, the alleged
differences in prices between the categories claimed were
not found consistent across product types during the IP
and the claim had therefore to be rejected.

(102) The

for

claimed

cooperating

commissions

producer
in

exporting
differences

an
adjustment
paid,
referring in particular to commissions paid to an agent
in Taiwan for sales on the Taiwanese market. However, it
was found during the investigation that, based on the
information submitted by the exporting producer, the
functions to the ones
agent was performing similar
exerted by the
exporting
the
sales department of
producer for export sales. Whereas fees were found to
have been effectively paid to that agent, they were thus
not found to affect the price comparability of domestic
prices and export prices. The claim was
therefore
rejected, since the conditions set out in the first sub-
paragraph of Article 2(10) of the basic Regulation were
not met.

(103) Furthermore,

the

claimed

producer

exporting

an
adjustment for transport costs incurred on its domestic
the company could not properly
market. However,
substantiate its claim and the documents
submitted
were partially misleading. It was consequently informed
that in the light of Article 18 of the basic Regulation the
provisions on partial cooperation would apply.
In the
absence of a satisfying explanation from the company
with regard to the submitted documents, recourse was
made in the dumping calculation to facts available as
regards the transport costs on the domestic market.
The adjustment was based on the amounts that could
be justified by invoices received from freight forwarding
agents.

4.4. Dumping margins

(104) Since the level of cooperation was high, and there was
no reason to believe that any exporting producer delib-
erately abstained from cooperation, the residual margin
applicable to all other exporters in Taiwan was set at the
same level as the one established for the cooperating
exporting producer.

(105) The dumping margins, expressed as a percentage of the
cif import price at the Community border, duty unpaid,
are provisionally the following:

San Yuan Chemical Co., Ltd

All other companies

22,6 %

22,6 %

D. INJURY

1. Community production and Community industry

of

that

the basic Regulation. One
one

(106) Within the Community the like product is manufactured
by two producers located in Germany, on behalf of
which the complaint was lodged and which cooperated
in the investigation. During the IP, their output which
was in the range 24 000 and 29 000 tonnes represented
100 % of the Community production. Moreover, both
producers are deemed to constitute the Community
industry within the meaning of Articles 4(1) and 5(4)
exporting producer
of
claimed
producers
imported the product concerned form China during the
IP and should therefore be excluded from the definition
of
the Community industry. However, and as also
mentioned below in recital 151, the import levels were
low and were only made to maintain global customers.
in addition, the average resale price levels were
Since,
significantly higher than the Chinese import prices,
it
this Community
was
producer were rather an act of self-defence against the
dumped imports than self-inflicted injury. Therefore, the
two Community producers were considered as being the
Community industry within the meaning of Article
4(1)(a) of the basic Regulation.

the Community

considered that

imports of

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2. Community consumption

(107) Community consumption was established on the basis of
the sales volumes on the Community market by the two
Community producers, the imports from the countries
concerned and from other third countries under the
relevant CN codes according to Eurostat and in the
case of Taiwan and USA on the basis of actual verified
data. As far as the PRC is concerned, the reported import
volume by the cooperating Chinese exporting producers
imports from the PRC.
did not
from the PRC are
Therefore,
concerned,
in the purpose of
determining total Community consumption Eurostat
data were the most reliable source of information.

as
it was considered that

the total

represent

imports

regards

ex 2842 90 80. The Eurostat data concerning CN code
ex 2842 90 80 comprises one particular type of per-
sulphates (monopersulphate) mainly imported from the
USA and other products such as salts of inorganic acids
or peroxoacids, which are not product concerned. As it
was not possible to retrieve from this broader category of
products the data for persulphates only, it was considered
that import data from Eurostat concerning this particular
CN code would not reflect a reliable picture of
the
situation and should therefore not be used. In any case,
and as mentioned above in recital 107, as regards the
USA and Taiwan actual verified import data were used.

(108) As mentioned in recital 13 the product concerned is
presently declared within CN codes 2833 40 00 and

(109) On the basis of these data, it was found that over the
period considered, consumption increased by 7 %.

Table 1

Consumption in the EU (volume)

2003

2004

2005

IP

Consumption in tonnes (ranges)

37 000-42 000

40 000-45 000

39 000-44 000

40 000-45 000

Consumption (Index)

100

108

105

107

3. Cumulative assessment of the effects of the imports concerned

(110) The Commission examined whether imports of persulphates originating in the PRC, Taiwan and the
USA should be assessed cumulatively in accordance with Article 3(4) of the basic Regulation.

(111) The dumping margin established in relation to the imports of each of the countries concerned was
above the de minimis threshold as defined in Article 9(3) of the basic Regulation and the volume of
imports from each of these countries was not negligible in the sense of Article 5(7) of the basic
Regulation,
i.e. their market shares attaining 14,9 %, 5,9 % and 9,3 % respectively in the IP As
mentioned in recital 95 for two exporting producers in the PRC the dumping margin established
was below the de minimis threshold. Therefore, imports of these companies were not considered.

(112) As regards the conditions of competition, the investigation showed, as outlined in recital 18 above
that persulphates imported from the countries concerned and that of the Community industry were
alike in all their basic physical and technical characteristics. Also, persulphates originating in these
countries on the one hand and persulphates produced and sold in the Community on the other hand
were sold through comparable sales channels and under similar commercial conditions;
thus
competing with each other. It was also found that export prices from the PRC, Taiwan and the
USA showed a similar trend during the period considered and were significantly undercutting the
Community prices.

(113)

In the light of the above, it is provisionally considered that all the criteria set out in Article 3(4) of
the basic Regulation were met and that imports from the countries concerned should be examined
cumulatively.

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4. Imports from the countries concerned

4.1. Volume and market share of the imports concerned

(114)

Imports from the countries concerned increased by 43 % between 2003 and the IP. While these
imports amounted to 8 778 tonnes in 2003 they reached a level of 12 593 tonnes during the IP. The
increase of imports was particularly marked between 2003 and 2004 since they rose by 31 %.

Table 2

Imports from the countries concerned

Imports (tonnes)

PRC

Index

Taiwan

Index

USA

Index

2003

3 214

100

2 080

100

3 484

100

2004

5 228

163

2 760

133

3 499

100

2005

5 811

181

2 700

130

3 818

110

IP

6 235

194

2 480

119

3 878

111

Total countries concerned

8 778

11 487

12 329

12 593

Index

100

131

140

143

(115) The market share held by the countries concerned increased between 2003 and the IP from 22,6 %
to 30,2 % i.e. by 7,6 percentage points. The increase was particularly marked between 2003 and
2004 when it went up by 4,8 percentage points.

Table 3

Market share of the countries concerned

Market shares

PRC

Taiwan

USA

2003

8,3 %

5,3 %

9,0 %

2004

12,5 %

6,6 %

8,3 %

2005

14,3 %

6,6 %

9,4 %

IP

14,9 %

5,9 %

9,3 %

Total countries concerned

22,6 %

27,4 %

30,3 %

30,2 %

4.2. Prices

(116) From 2003 to the IP, prices of the imports from the countries concerned decreased by 12 %. Thus,

they decreased from EUR 946/tonne in 2003 to EUR 828/tonne in the IP.

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Table 4

Prices of the imports concerned

Unit prices (EUR/tonne)

Total countries concerned

Index

2003

946

100

2004

852

90

2005

779

82

IP

828

88

4.3. Price undercutting

(117) For the determination of price undercutting the price data referring to the IP was analysed. The
relevant sales prices of the Community industry were net prices after deduction of discounts and
rebates. Where necessary, these prices were adjusted to an ex-works level, i.e. excluding freight cost in
the Community. The import prices of the countries concerned were also net of discounts and rebates
and were adjusted where necessary to Cif Community frontier.

(118) The Community industry's sales prices and the import prices of the countries concerned were
compared at the same level of trade, namely to independent customers within the Community
market.

(119) During the IP, the weighted average price undercutting margins, expressed as a percentage of the
Community industry's sales prices, was 30,2 % for the Taiwanese exporter, 30,3 % for the PRC, and
7,4 % for the USA. The total weighted average undercutting margin for all countries concerned was
22,7 % during the IP.

5. Situation of the Community industry

(120)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports on the Community industry included an evaluation of all economic factors having a bearing
on the state of the Community industry during the period considered. For confidentiality reasons,
given that the analysis concerns only two companies, most indicators are presented in indexed form
or ranges are given.

5.1. Production, capacity and capacity utilisation

Table 5

Production, capacity and capacity utilisation

2003

2004

2005

IP

Production in tonnes (ranges)

29 000-34 000

29 000-34 000

26 000-31 000

24 000-29 000

Production (index)

100

100

90

86

Production capacity in tonnes
(ranges)

Production capacity (index)

Capacity utilisation

37 000-42 000

37 000-42 000

37 000-42 000

37 000-42 000

100

83 %

100

83 %

100

75 %

100

71 %

(121) The production volume of the Community industry showed a clear negative trend between 2003 and
the IP. Whereas between 2003 and 2004 the production volume was stable, it suddenly diminished
by 10 % in 2005 and this trend continued during the IP. Although the capacity utilisation was above
70 % during the IP, the Community industry's production overall decreased by 14 % during the
period considered.

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(122) The production capacity remained stable between 2003 and the IP.

5.2. Sales volume, market shares, growth and average unit price in the EC

(123) The table below shows the Community industry’s performances in relation to its sales to independent

customers in the Community.

Sales volume, market share, prices and average unit prices in the Community

Table 6

Sales volume (index)

Market Share (index)

2003

100

100

2004

2005

96

89

91

87

IP

90

84

Unit prices in EUR (ranges)

1 000-1 400

900-1 300

900-1 300

850-1 250

Unit prices (index)

100

93

93

92

(124) The Community industry’s sales volume decreased gradually by 10 % during the period considered.

This has to be seen in the light of an increasing consumption in the EC.

(125) Overall, the market share of the Community industry continuously decreased by 11 percentage
points between 2003 and the IP. The decrease was particularly pronounced between 2003 and
2004 where 7,6 percentage points were lost. Both the decrease in sales volume and market shares
should be seen in the light of the evolution of the Community consumption which rose by 7 % and
the increasing imports from the countries concerned during the period considered. During the same
period, unit costs of the Community industry increased by 5 %. Indeed, the decrease of production
volume when capacities remained stable and resulted in a higher allocation of overhead costs by unit.

(126) The Community industry’s unit sales prices also continuously decreased by 8 % during the period
considered. This decrease in prices shows that the Community industry was not able to pass on the
overall cost increase to their customers. On the contrary, the Community industry had to decrease
prices in order not to lose more clients or orders.

5.3. Stocks

(127) The figures below represent the volume of stocks at the end of each period.

Table 7

Stocks

2003

2004

2005

IP

Stocks in tonnes (ranges)

2 000-2 500

1 800-2 300

2 700-3 200

2 100-2 600

Stocks (index)

100

83

124

103

(128) The investigation revealed that stocks cannot be considered as a meaningful injury factor since the
vast majority of production is made in response to orders. Therefore, the trends on stocks are given
for information. In any case, the level of stocks remained rather stable overall. It decreased by 17 %
between 2003 and 2004, then increased by 41 % until the end of 2005 and then decreased again by
21 % to reach almost the same level as in 2003.

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5.4. Investments and ability to raise capital

Table 8

Investments

Investments (index)

2003

100

2004

21

2005

28

IP

55

(129) Between 2003 and the IP, investments for the production of the like product diminished by 45 %.
Following a sharp decline of 79 % between 2003 and 2004, it remained at a low level in 2004.
During the IP, the value of the investments increased by 27 % but in comparison to 2003,
it
remained at a low level. During the investigation it was found that
investments in buildings,
plants and machinery were mainly made to maintain the production capacity. In view of the low
capacity utilisation mentioned before, investments were in any case not made with the purpose to
increase the overall production capacity.

(130) The investigation showed that the financial performances of the Community industry deteriorated but
it did not reveal that its ability to raise capital was seriously affected yet during the period considered.

5.5. Profitability, return on investment and cash flow

Table 9

Profitability, return on investment and cash flow

2003

2004

2005

IP

Profitability on EC sales (range)

15-25 %

10-20 %

2-11 %

1-10 %

Profitability on EC sales (index)

100

79

26

20

Return on total investments
(range)

Return on total investments
(index)

Cash flow (index)

30-40 %

20-30 %

5-15 %

1-10 %

100

100

77

88

26

41

19

28

(131) The decline in sales volume combined with decreasing sales prices between 2003 and the IP,
significantly affected the profitability achieved by the Community industry, i.e. it declined by 15,5
percentage points between 2003 and the IP. The negative trend was in particular pronounced
between 2004 and 2005, when profitability dropped by more than 10 % points. The return on
investments was calculated by expressing the pre-tax net profit of the like product as a
total
fixed assets allocated to the like product. This indicator
percentage of the net book value of
followed a similar trend as profitability, decreasing significantly over the period considered, par-
ticularly pronounced between 2004 and 2005, where the return on investment dropped by 17
percentage points. With regard to the cash flow generated by the Community industry, a similar
negative trend was found, resulting in a dramatic overall deterioration of the Community industry's
financial situation in the IP.

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5.6. Employment, productivity and wages

Table 10

Employment, productivity and wages

Number of employees (index)

Employment cost (index)

Average labour costs

Productivity (index)

2003

100

100

100

100

2004

2005

95

93

98

105

89

88

99

101

IP

87

86

99

99

(132) The number of personnel employed by the Community industry decreased overall by 13 % partly due
to the restructuring process at the beginning of the period considered. Thus, although overall
employment costs decreased considerably, average wages remained stable. The decrease in the
number of employment was similar
to the decrease in production. As a consequence the
Community industry was able to maintain the same level of productivity as in 2003.

5.7. Magnitude of the dumping margin

(133) Given the volume and the price of the dumped imports, the impact of the actual margins of dumping

cannot be considered negligible.

5.8. Recovery from past dumping

(134)

the Council

In December 1995,
imposed a definitive anti-dumping duty on peroxodisulphates
(persulphates) originating in the PRC (1). These measures were terminated in April 2002 (2). The
figures collected during the present investigation suggest that although having recovered from past
dumping practices, the situation of the Community industry deteriorated significantly after 2002
when anti-dumping duties were repealed and dumped imports re-entered the Community market.

5.9. Growth

(135) The investigation showed that despite an increase in consumption by 7 %, the Community industry
lost sales volume (– 10 %) and market share (– 11 percentage points) during the period considered. It
thus did not benefit from any growth during the period considered.

6. Conclusion on injury

(136) During the period considered, the volume of dumped imports of persulphates from the countries
concerned increased significantly,
i.e. by 43 % and likewise their market shares increased by 7,6
percentage points to reach 30,2 % of the Community market in the IP. At the same time, prices of
these imports decreased significantly, undercutting the Community industry's sales prices on average
by 22,7 %.

(1) Council Regulation (EC) No 2961/95 (OJ L 308, 21.12.1995, p. 61).
(2) Council Regulation (EC) No 695/2002 (OJ L 109, 25.4.2002, p. 1).

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(137) The analysis of the injury indicators revealed that the situation of the Community industry de-
teriorated significantly over the period considered. All
injury indicators follow a negative trend
over the period considered. In particular, in order not to lose more market share and to keep the
production at a reasonable level, the Community industry had no other option than to follow the
price levels set by the dumped imports, i.e. to decrease its prices by 8 % between 2003 and the IP.
This resulted in the significant drop in profitability over the period considered. Moreover, the
Community industry was not able to pass on any cost increase to their customers and their
financial situation deteriorated significantly during the period considered.

(138) The decrease of sales volume also implied that the Community industry could not benefit from the

increase of demand in the persulphates market.

(139)

In light of the foregoing, it is provisionally concluded that the Community industry has suffered
material injury within the meaning of Article 3(5) of the basic Regulation.

1. Introduction

E. CAUSATION

(140)

In accordance with Article 3(6) and 3(7) of the basic Regulation, the Commission has examined
whether the dumped imports of the product concerned originating in the United States of America,
PRC and Taiwan have caused injury to the Community industry to a degree that may be considered
as material. Known factors other than the dumped imports, which could at the same time have
injured the Community industry, were also examined to ensure that possible injury caused by these
other factors was not attributed to the dumped imports.

2. Effect of the dumped imports

(141)

Imports from the countries concerned increased significantly by 43 % in terms of volume, and by 7,6
percentage points in terms of market share. At the same time the market share of the Community
industry decreased by roughly 11 percentage points. The average unit selling price per tonne of the
imports from the countries concerned diminished by 12 %, undercutting the average Community
industry prices by 22,7 % on average in the IP. The substantial increase in the volume of imports
from the countries concerned and their gain in market share during the period considered, at prices
which were significantly lower than those of the Community industry, coincided with the evident
deterioration of the overall financial situation of the Community industry during the same period.
This deterioration is seen, in particular, in terms of sales prices, profitability, return on investment,
cash flow and employment.

(142)

In the analysis of the effect of the dumped imports, it was found that price is an important element
of competition because quality issues do not play a significant role. It should be noted that the prices
of dumped imports were considerably below both, those of the Community industry as well as those
of other third country exporters.

(143)

It is therefore provisionally concluded that the pressure exerted by the imports concerned, which
increased their volume and market share from 2003 onwards, and which were made at very low and
dumped prices, played a determining role in the deterioration of the Community industry’s financial
situation.

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Official Journal of the European Union

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3. Effect of other factors

(a) Imports originating in third countries other than the PRC, US and Taiwan

Table 11

Imports originating in other third countries (quantity)

Imports (tonnes)

Turkey

Index

Japan

Index

Others

Index

Total other countries

Index

2003

2 161

100

146

100

158

100

2 466

100

2004

2 327

108

0

0

260

165

2 587

105

2005

1 198

55

24

16

976

618

2 198

89

Table 12

Imports originating in other third countries (average price)

Average prices (EUR)

Turkey

Index

Japan

Index

Others

Index

Total other countries

Index

2005

977

96

827

97

805

37

899

83

2003

1 022

100

856

100

2 202

100

1 088

100

2004

974

95

0

0

1 277

58

1 004

92

Table 13

Market shares

Market shares (%)

2003

2004

2005

Turkey

Japan

Others

Total other countries

5,6

0,4

0,4

6,3

5,5

0,0

0,6

6,2

2,9

0,1

2,4

5,4

IP

1 247

58

10

7

1 005

636

2 262

92

IP

900

88

1 635

191

839

38

876

80

IP

3,0

0,0

2,4

5,4

L 97/24

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Official Journal of the European Union

12.4.2007

(144) According to Eurostat data and to the information
the main third
collected during the
investigation,
country from which persulphates
imported is
are
Turkey with a market share of 3 % during the IP.
Another, however minor exporting country is Japan
although it represents import volumes close to 0 %.

(145)

Imports originating in third countries other than the
PRC, US and Taiwan decreased by 8 %,
from 2 466
tonnes in 2003 to 2 262 tonnes during the IP. Conse-
quently, their market share decreased overall from 6,3 %
in 2003 to 5,4 % in the IP.

(146)

Imports from Turkey amounted to 2 161 tonnes in 2003
and decreased over the period considered by 42 % to
1 247 tonnes in the IP, attaining a market share of
lower
3 %. Although Turkish imports were made at
prices
the Community industry sales
price, their limited and even gradually shrinking market
share were not considered as having had a negative effect
on the situation of the Community industry.

than those of

(147) As

to imports

from the remaining third countries
Eurostat statistics show very low import levels; i.e. 304
tonnes in 2003 which augmented to 1 015 tonnes in the
IP. In spite of this growth, the level of these imports
remains close to de minimis, representing only 2,4 % of
the Community consumption in the IP. Furthermore,
prices of these imports were significantly higher than
prices from the countries concerned and Turkey. Thus,
these imports have not had a
it
significant
the Community
industry.

impact on the state of

is concluded that

(c) Non-dumped imports originating in the PRC

of

imports

threshold.

(150) As mentioned in recital 95 for two exporting producers
the dumping margin established was below the de
these
Therefore,
minimis
companies were not considered in the injury analysis
above. Instead it was examined whether these imports
injury suffered by the
could have caused the material
Community
limited
volume of these imports, attaining a market share of
it was considered that the non-
6,9 % during the IP,
link
dumped imports
between the dumped imports and the material
injury
suffered by the Community industry.

could not break the

industry. However,

given the

causal

(d) Imports of the Community industry

(151) One Community producer

imported

the product
concerned from its related company in the PRC and
resold it on the Community market. Although the
resale prices were indeed undercutting the Community
industry prices,
it should be noted that the volume of
the Chinese imports only represented a minor part of the
total imports from the PRC (less than 4 %). Furthermore,
these imports were only made to maintain global
customers who would have otherwise purchased the
product
at
dumped prices. Moreover,
the resale price on the
Community market was on average significantly higher
than the import prices of the other Chinese exporting
producers. Therefore, it was concluded that the imports
of the Community industry of the product concerned
from the PRC did not break the causal
link between
the dumped imports and the material injury suffered by
the Community industry.

concerned from the Chinese

suppliers

(148)

It can thus provisionally be concluded that imports other
the US and Taiwan did not
than from the PRC,
contribute
injury suffered by the
Community industry.

to the material

(b) Exports by the Community industry

(149) Exports of persulphates by the Community industry
outside the Community were decreasing during the
period considered (by 13 %). Likewise, export prices of
the Community industry decreased during the period
considered by 9 %. However, these exports represented
the Community industry’s total sales to
only 6 % of
unrelated parties in the IP and thus it was concluded
that
impact on the
material injury suffered by the Community industry.

they did not have a significant

4. Conclusion on causation

In particular,

(152) The coincidence in time between, on the one hand, the
increase in dumped imports from the PRC, the US and
Taiwan, their increase in market shares and the under-
cutting found and, on the other hand, the evident de-
terioration in the situation of the Community industry,
leads to the conclusion that the dumped imports caused
the material injury suffered by the Community industry
within the meaning of Article 3(6) of the basic Regu-
lation.
the Community industry had to
lower its selling prices on the Community market due
to the price pressure of the dumped imports. Thus, the
overall cost
increase could not be passed on to the
customers and profit margins decreased significantly
with a drastic impact on the Community industry's
overall financial situation. The possible effect of other
factors mainly imports from other third countries, non-
dumped imports originating from the PRC exports of the
Community industry and the development of costs were
analysed but found not to be a determining reason for
the injury suffered by the Community industry.

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Official Journal of the European Union

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(153) Based on the above analysis, which has properly distin-
guished and separated the effects of all known factors
the Community
having an effect on the situation of
industry from the
the dumped
it is provisionally concluded that the imports
imports,
of persulphates from the PRC, the US and Taiwan have
caused material injury to the Community industry within
the meaning of Article 3(6) of the basic Regulation.

effect of

injurious

F. COMMUNITY INTEREST

(154)

dumping,

In accordance with Article 21 of the basic Regulation, it
examined whether, despite
conclusion on
was
injurious
for
exist
compelling
concluding that it is not in the Community interest to
adopt measures in this particular case. The likely impact
of possible measures on all parties involved in the
taking
proceeding and also the consequences of not
measures have to be considered in this respect.

the
reasons

(155)

In order to assess the likely impact of the imposition or
non-imposition of measures information was requested
from all interested parties which were either known to be
concerned or which made themselves known. On this
to the
the Commission sent questionnaires
basis,
Community industry, 12 unrelated importers and 11
users.

employment

and the
is most

significantly worsening
decreasing revenue
the financial
likely that
trend in the IP,
it
situation of
the Community industry will deteriorate
further in the absence of any measures. This would ulti-
mately lead to cuts in production, which would therefore
threaten
the
and
Community. This is particularly true since the European
market is now one of the few export markets left to the
countries concerned after the imposition of anti-dumping
duties on persulphates from China in the United States of
America. With
the Community
closure
production, the persulphates users would become more
dependent on suppliers outside the Community.

investments

the

of

in

(160) Accordingly, it is provisionally concluded that the impo-
sition of
anti-dumping measures would allow the
from the injurious
Community industry to recover
dumping suffered and would thus be in the interest of
the Community industry.

2. Interest of unrelated importers

(161) The Commission sent questionnaires

to all known
importers/traders. As far as importers are concerned,
only two importers submitted a questionnaire reply.
However,
concerned
imported by these two importers represented 18,9 % of
the total
imports in the Community and 6,7 % of the
Community consumption.

the product

volumes of

the

(156) As

explained in recital 9,

Community
industry
importers replied to the questionnaire.

the
producers,

two complainant
unrelated

two

1. Interests of the Community industry

(157) The injurious

situation of

the Community industry
resulted from its difficulty to compete with the low-
priced, dumped imports.

(158) The imposition of measures

is expected to prevent
further distortions of the market, suppression of prices
and restore fair competition. The Community industry
should then be able to increase the volume of its sales
and to regain market share and thereby generating better
economies of scale, thus achieving the necessary profit
level to improve the industry’s financial situation and to
allow it continued investments in its production facilities,
thus guaranteeing the Community industry’s survival.

(159) Otherwise,

the deterioration of

should anti-dumping measures not be
imposed,
the
Community industry would continue. The Community
industry is particularly marked by a loss of revenue
share and
due
to depressed prices,
the
significant decrease in profit.

falling market
Indeed,

the situation of

in view of

(162)

It should be noted that these importers’ only source of
supply during the IP were the countries concerned (US
and Taiwan) and these importers thus claimed that the
imposition of an anti-dumping duty would have a
significant impact on their financial situation.

concerned,

established that

(163) However, on the basis of information submitted by the
the
it was
importers
proportion of persulphates imports in the company's
total
(i.e.
turnover represented only a negligible part
between 0,03 % and 1,3 %) during the IP. Therefore,
the imposition of an
although it
anti-dumping duty may have a certain impact on these
companies; this impact would be overall negligible.

is not denied that

(164) Furthermore, it can be reasonably expected that any price
increase could at
least be partly passed on to the
customers due to the fact that, as mentioned below in
recital 166, persulphates constitute in most of the cases
only a fraction of these customers total cost. Finally, it
should be noted that other
supply are
available such as Turkey,
Japan as well as those parts
of Chinese exports which are not subject to any anti-
dumping duty.

sources of

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Official Journal of the European Union

12.4.2007

3. Interest of users

(165) The Commission sent questionnaires to all eleven known
users in the Community. None of these users replied to
the
the
Commission with any information or made themselves
known in the course of this investigation.

questionnaire. No

supplied

other

users

(166) There was no indication that users’

interests will be
significantly affected. Indeed, on the basis of the infor-
mation available, persulphates, in most of the cases, only
constitutes a minor part of the total production cost and
the effect of antidumping duties would be negligible.

4. Conclusion on Community interest

(167) Taking into account all of

the above factors,

is
concluded that the imposition of measures would not
have a significantly negative effect, if any at all, on the
situation of
the product
the users and importers of
it is provisionally concluded
concerned. On this basis,
to impose
that
anti-dumping measures.

there are no compelling reasons not

it

(170) The necessary price increase was then determined on the
basis of a comparison of the weighted average import
price, as established for the price undercutting calcu-
lations (see recitals 117 to 119 above), with the non-
injurious price of products sold by the Community
industry on the Community market. The non-injurious
price has been obtained by adjusting the sales price of
the Community industry by the actual loss/profit made
during the IP and by adding the above mentioned profit
margin. Any difference resulting from this comparison
was then expressed as a percentage of
the total cif
import value.

(171) These differences were for

for

injury elimination level

it should be recalled that

the Chinese cooperating
exporting producers to whom MET was granted above
the dumping margins found. In order to calculate the
all other
countrywide
the
exporters in the PRC,
level of cooperation was high. Therefore,
the injury
margin was calculated as the difference of the weighted
average cif import prices of the companies to which MET
was not granted and the non-injurious price as calculated
above. In the case of USA, the injury elimination level
was below the dumping margin found for the exporting
producers, whereas for Taiwan the injury elimination
level was above the dumping margin found.

G. PROVISIONAL ANTI-DUMPING MEASURES

1. Injury elimination level

(168)

the conclusions reached with regard to
In view of
dumping,
resulting injury, causation and Community
interest, provisional measures should be imposed in
further injury being caused to the
order to prevent
Community industry by the dumped imports.

2. Provisional measures

(172)

In light of the foregoing,
it is considered that a pro-
visional anti-dumping duty should be imposed at the
level of the dumping margin found, but should not, in
accordance with Article 7(2) of the basic Regulation, be
higher than the injury margin calculated above.

(169) The measures should be imposed at a level sufficient to
eliminate the injury caused by these imports without
exceeding the dumping margin found. When calculating
the amount of duty necessary to remove the effects of
the injurious dumping,
it was considered that any
measures
should allow the Community industry to
cover its costs of production and to obtain overall a
profit before tax that could be reasonably achieved by
this type in the sector under normal
an industry of
conditions of
absence of
competition,
dumped imports, on the sales of the like product in
the Community.
for
producers used for this calculation was 12 %, based on
the complaint and confirmed during this investigation.
The actual profits made by the Community industry in
2003 and 2004, as well as during the years prior to the
period under consideration, were never below this
reference level.

profit margin

in the

pre-tax

The

i.e.

(173) The

the

duty

duty

company

individual

findings of

the present

anti-dumping

rates
specified in this Regulation were established on the
basis of
investigation.
Therefore, they reflect the situation found during this
investigation with respect
to these companies. These
duty rates (as opposed to residual duties applicable to
‘all other companies’
in the USA and in Taiwan and
the
other
countrywide
applicable
companies’
in the PRC) are thus exclusively applicable
to imports of products originating in the country
concerned and produced by the companies and thus by
the specific legal entities mentioned. Imported products
specifically
produced by
mentioned in the operative part of this document with
its name and address, including entities related to those
specifically mentioned, cannot benefit from these rates
and shall be subject to the duty rate applicable to ‘all
other companies’.

company not

any other

‘all

to

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Official Journal of the European Union

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(e.g.

(174) Any claim regarding the application of these individual
following a
company anti-dumping duty rates
change in the name of
the entity or following the
setting up of new production or sales entities) should
be addressed to the Commission (1) forthwith with all
relevant information,
in particular any modification in
the company's activities linked to production, domestic
and export sales associated with, for example, that name
that change in the production and sales
change or
if appropriate, will, after
entities. The Commission,
the Advisory Committee, amend the
consultation of
Regulation
of
updating
companies benefiting from individual duty rates.

accordingly

the

list

by

concerned. These special measures, which only apply to
companies in the PRC for which an individual duty rate
is introduced, include the following:

(177) The presentation to the customs authorities of

the
invoice which
Member States of a valid commercial
must conform to the requirements
in the
Annex to this Regulation. Imports not accompanied by
such an invoice must be made subject to the residual
anti-dumping duty applicable to all other companies in
the PRC.

set out

(175) On the basis of the above, the provisional duty rates are:

Country

Exporting producer

USA

E.I. DuPont De Nemours

FMC Corporation

All other companies

AD duty
rate

10,6 %

39,0 %

39,0 %

PRC

ABC Chemicals (Shanghai) Co., Ltd

0 %

Degussa-AJ (Shanghai) Initiators Co.,
Ltd

14,4 %

Hebei Yatai Electrochemistry Co., Ltd

0 %

All other companies

67,4 %

Taiwan

San Yuan Chemical Co., Ltd

22,6 %

All other companies

22,6 %

the imposition of

(178) Should the exports by the companies in the PRC ben-
efiting from lower individual duty rates increase signifi-
cantly in volume after
the anti-
this increase in volume could be
dumping measures,
in itself, a change in the
considered as constituting,
pattern of
trade due to the imposition of measures
within the meaning of Article 13(1) of the basic Regu-
lation.
the
conditions are met, an anti-circumvention investigation
may be initiated. This
inter alia,
examine the need for the removal of
individual duty
rates and the consequent imposition of a countrywide
or residual duty.

In such circumstances,

investigation may,

and provided

H. FINAL PROVISION

(179)

In the interest of sound administration, a period should
be fixed within which the interested parties which made
themselves known within the time limit specified in the
initiation may make their views known in
notice of
writing and request a hearing. Furthermore,
it should
be stated that the findings concerning the imposition
of anti-dumping duties made for the purposes of this
Regulation are provisional and may have to be recon-
sidered for the purpose of any definitive duty,

3. Special monitoring

HAS ADOPTED THIS REGULATION:

(176)

in the PRC,

In order to minimise the risks of circumvention due to
the high difference in the duty rates as regards exporting
producers
is considered that special
measures are needed in this case to ensure the proper
application of the anti-dumping duties. Only the imports
of the product concerned manufactured by the respective
exporting producer in the PRC can benefit
from the
specific dumping margin calculated for the producer

it

(1) European Commission, Directorate-General for Trade, Direction B-

1049 Brussels, Belgium.

Article 1

A provisional anti-dumping duty is hereby imposed on
1.
imports of peroxosulphates (persulphates), including potassium
peroxymonosulphate
falling within CN codes
2833 40 00 and ex 2842 90 80 (TARIC code 2842 90 80 20)
and originating in the United States of America, the People’s
Republic of China and Taiwan.

sulphate,

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Official Journal of the European Union

12.4.2007

The rate of the provisional anti-dumping duty applicable to the net free-at-Community-frontier price,

2.
before duty, of the products manufactured by the companies below shall be:

Country

Company

Anti-dumping
duty

TARIC
Additional code

The United States of America

E.I. DuPont De Nemours, Wilmington, Delaware

10,6 %

A818

FMC Corporation, Tonawanda, New York

39,0 %

A819

All other companies

39,0 %

A999

The People’s Republic of China

ABC Chemicals (Shanghai) Co., Ltd, Shanghai

0 %

A820

Degussa-AJ (Shanghai) Initiators Co., Ltd, Shanghai

14,4 %

A821

Hebei Yatai Electrochemistry Co., Ltd, Wang Jia Jing

0 %

A822

All other companies

67,4 %

A999

Taiwan

San Yuan Chemical Co., Ltd, Chiayi

22,6 %

A823

All other companies

22,6 %

A999

3.
The application of the individual duty rates specified for
the companies in the People's Republic of China mentioned in
paragraph 2 shall be conditional upon presentation to the
customs authorities of the Member States of a valid commercial
invoice, which shall conform to the requirements set out in the
Annex. If no such invoice is presented, the duty rate applicable
to all other companies shall apply.

The release for free circulation in the Community of the
4.
product referred to in paragraph 1 shall be subject
to the
provision of a security, equivalent to the amount of the pro-
visional duty.

and considerations on the basis of which this Regulation was
adopted, make their views known in writing and apply to be
heard orally by the Commission within one month of the date
of entry into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the
parties concerned may comment on the application of this
Regulation within one month of the date of its entry into force.

Article 3

Unless otherwise

5.
concerning customs duties shall apply.

specified,

the provisions

in force

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Union.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96,
interested parties may request disclosure of the essential facts

Article 1 of this Regulation shall apply for a period of six
months.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 11 April 2007.

For the Commission

Peter MANDELSON
Member of the Commission

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Official Journal of the European Union

L 97/29

ANNEX

The valid commercial invoice referred to in Article 1(3) of this Regulation must include a declaration signed by an official
of the company and bearing the company's official stamp, in the following format:

(1) The name and function of the official of the company which has issued the commercial invoice.

(2) The following declaration:

‘I, the undersigned, certify that the [volume] of persulphates sold for export to the
European Community covered by this invoice was manufactured by [company name and address] [TARIC additional
code] in the People's Republic of China. I declare that the information provided in this invoice is complete and
correct.’