Proposal for a Council Regulation extending the suspension of the definitive anti-dumping duty imposed by Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in the People’s Republic of China
Date: 2007-06-21
Institutions: European Commission
Subjects: China, anti-dumping duty, ferro-alloy, import, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.6.2007 
COM(2007) 345 final 

Proposal for a 

COUNCIL REGULATION 

extending the suspension of the definitive anti-dumping duty imposed by Regulation 
(EC) No 215/2002 on imports of ferro molybdenum originating in the People’s Republic 
of China 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

110 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of  22 
December 1995 on protection against dumped imports from countries not members of 
the European Community, as last amended by Council Regulation (EC) No 2117/2005 
of 23 December 2005 (the basic Regulation) in the proceeding concerning imports of 
ferro molybdenum originating in the People's Republic of China (PRC).  

120 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

139 

•  Existing provisions in the area of the proposal 

Council  Regulation  (EC)  No  215/2002,  imposing  a  definitive  anti-dumping  duty  on 
imports of ferro molybdenum originating in the PRC.  

Commission Decision of 23 October 2006, suspending for a period of nine months the 
definitive  anti-dumping  duty  imposed  by  Council  Regulation  (EC)  No  215/2002  on 
imports of ferro molybdenum originating in the PRC.  

141 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

219 

229 

230 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not foresee a general impact assessment but the requirement 
that the measures should not be contrary to the “Community interest” means that the 
assessment  of  the  wider  impact  of  the  measures  forms  an  integral  part  of  the 
investigation.  

EN 

2 

   EN 

 
 
 
3)  LEGAL ELEMENTS OF THE PROPOSAL 

305 

•  Summary of the proposed action 

In  February  2002,  a  definitive  anti-dumping  duty  of  22,5%  was  imposed  by  Council 
Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in the PRC. 

In  October  2006  the  Commission,  by  Commission  Decision  of  23  October  2006 
suspended  for  a  period  of  nine  months  the  definitive  anti-dumping  duty  imposed  by 
Council Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in 
the PRC. 

The enclosed Commission proposal for a Council Regulation extends until 31 January 
2008  the  suspension  of  the  definitive  anti-dumping  duty  imposed  by  Council 
Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in the PRC. 

Member States were consulted and raised no objection to the proposal. 

It  is  proposed  that  the  Council  adopt  the  attached  proposal  for  a  Regulation  which 
should be published in the Official Journal of the European Union by 21 July 2007 at 
the latest. 

310 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 2117/2005 of 23 December 2005. 

329 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The form of action is described in the above-mentioned basic Regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable, but the 
basic Regulation limits the level of the duties that may be imposed to that necessary to 
redress the injury caused by the dumping found. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason(s). 

331 

332 

341 

342 

EN 

3 

   EN 

 
 
 
The above-mentioned basic Regulation does not foresee alternative options. 

4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

EN 

4 

   EN 

 
 
 
 
Proposal for a 

COUNCIL REGULATION 

extending the suspension of the definitive anti-dumping duty imposed by Regulation 
(EC) No 215/2002 on imports of ferro molybdenum originating in the People’s Republic 
of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 Community1 (the basic 
Regulation) and in particular Article 14 thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the  Advisory 
Committee, 

Whereas: 

A. 

PROCEDURE 

(1) 

(2) 

(3) 

The  Council,  by  Regulation  (EC)  No  215/20022,  imposed  a  definitive  anti-dumping 
duty  on  imports  of  ferro  molybdenum  originating  in  the  People’s  Republic  of  China 
(PRC),  falling  under  CN  code  7202  70  00  (the  product  concerned).  The  rate  of  the 
anti-dumping duty is 22,5 %.  

In  October  2006,  the  Commission  by  Decision  (2006/714/EC)  of  23  October  20063 
suspended  for  a  period  of  nine  months  the  definitive  anti-dumping  duty  imposed  by 
Council  Regulation  (EC)  No  215/2002  on  imports  of  the  product  concerned 
originating in the PRC. 

The  decision  to  suspend  the  definitive  anti-dumping  duty  imposed  by  Council 
Regulation (EC) No 215/2002 was taken in line with the provisions of Article 14(4) of 
the  basic  Regulation  which  provides  that,  in  the  Community  interest,  anti-dumping 
measures  may  be  suspended  on  the  grounds  that  market  conditions  have  temporarily 
changed  to  an  extent  that  injury  would  be  unlikely  to  resume  as  a  result  of  such 
suspension,  provided  that  the  Community  industry  has  been  given  an  opportunity  to 
comment and these comments have been taken into account. 

1 

2 
3 

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). 
OJ L 35, 6.2.2002, p.1. 
OJ L293, 24.10.2006,p.15. 

EN 

5 

   EN 

 
                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

The Commission concluded in the Commission Decision of 23 October 2006 that the 
injury  linked  to  the  imports  of  the  product  concerned  originating  in  the  PRC  was 
unlikely  to  resume  as  a  result  of  the  suspension  because  of  the  temporary  change  in 
market conditions, and in particular the high level of prices of the product concerned 
practised on the Community market, which was far above the injurious level found in 
the  original  investigation,  together  with  the  alleged  demand-supply  imbalance  of  the 
product concerned. 

The  Commission  undertook  in  the  Commission  Decision  of  23  October  2006  the 
obligation  to  monitor  the  development  of  imports  and  the  prices  of  the  product 
concerned and to repeal the suspension in case increased volumes at dumped prices of 
the  product  concerned  from  the  PRC  resume  and  consequently  cause  injury  to  the 
Community industry. 

On  31  October  2006  an  ex  officio  full  interim  review  was  initiated  by  a  notice 
published in the Official Journal of the European Union4 since the corpus of evidence 
at the Commission disposal indicated that the circumstances on the basis of which the 
existing  measures  were  established  have  changed  to  an  extent  that  the  existing 
measures may no longer be adequate and that certain of these changes appeared to be 
of a lasting nature. 

B. 

GROUNDS 

Article  14(4)  of  the  basic  Regulation  provides  that,  in  the  Community  interest,  anti-
dumping measures may be suspended for a period of nine months but the suspension 
may  be  extended  for  a  further  period,  not  exceeding  one  year,  if  the  Council  so 
decides, acting on a proposal of the Commission. 

Since the suspension of measure there was no change in the situation set out in recitals 
(5)  to  (10)  of  the  Commission  Decision  of  23  October  2006  with  respect  to  imports 
and prices of the product concerned. Only insignificant volumes of ferro molybdenum 
originating in the PRC were imported into the EC.  

(9)  With  regard  to  the  ex  officio  full  interim  review  it  is  recalled  that  this  should  be 

concluded within 15 months of initiation, i.e. by 31 January 2008. 

C. 

CONCLUSION 

(10)  Given  that  the  situation  in  the  EC  market  has  remained  unchanged  following  the 
suspension of the anti-dumping duty in October 2006 and since the interim review has 
not  been  concluded  yet,  it  is  considered  appropriate  to  extend  the  suspension  of  the 
measures  in  force  in  accordance  with  Article  14(4)  of  the  basic  Regulation.  On  the 
basis of the general principle of predictability  of trade inflows and in anticipation of 
the  results  of  the  currently  conducted  interim  review  it  is  concluded  that  the 
suspension  of  the  measures  in  force  should  be  extended  until  31  January  2008,  i.e. 
until the final time limit for the conclusion of the interim review. No indications have 
been found as to why the extension of the suspension would not be in the Community 
interest. 

4 

OJ C262,31.10.2006, p.28.  

EN 

6 

   EN 

 
                                                 
(11)  Pursuant  to  Article  14(4)  of  the  basic  Regulation,  the  Commission  has  informed  the 
Community  industry  of  its  intention  to  extend  the  suspension  of  the  anti-dumping 
measures  in  force.  The  Community  industry  has  been  given  an  opportunity  to 
comment but its comments did not alter the conclusion that the situation has remained 
as set out in the Commission Decision of 23 October 2006. 

(12)  The  Commission  therefore  considers  that  all  requirements  for  extending  the 
suspension  of  the  anti-dumping  duty  imposed  on  the  product  concerned  are  met,  in 
accordance  with  Article  14(4)  of  the  basic  Regulation.  Consequently,  the  suspension 
of  the  anti-dumping  duty  imposed  by  Regulation  (EC)  No  215/2002  should  be 
extended until 31 January 2008.  

(13)  The  Commission  will  monitor  the  development  of  imports  and  the  prices  of  the 
product concerned. Should a situation arise at any time in which increased volumes at 
dumped prices of the product concerned from the PRC resume and consequently cause 
injury  to  the  Community  industry,  the  Commission  will  propose  reinstating the anti-
dumping duty by repealing the present suspension, 

HAS ADOPTED THIS REGULATION: 

Article 1  

The suspension of the definitive anti-dumping duty imposed by Council Regulation (EC) No 
215/2002  on  imports  of  ferro  molybdenum,  falling  within  CN  code  7202  70  00,  and 
originating in the People's Republic of China is hereby extended until 31 January 2008. 

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

EN 

7 

   EN