Notice of initiation of an expiry review of the antidumping measures applicable to imports of sulphanilic acid originating in the People's Republic of China and India
Date: 2007-07-24
Institutions: European Commission
Subjects: India, anti-dumping duty, anti-dumping legislation, chemical product, import, originating product

C 171/18

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Official Journal of the European Union

24.7.2007

Notice of initiation of an expiry review of the antidumping measures applicable to imports of
sulphanilic acid originating in the People's Republic of China and India

(2007/C 171/12)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of sulphanilic
acid originating in the People's Republic of China and India
(‘countries concerned’), the Commission has received a request
for review pursuant to Article 11(2) of Council Regulation (EC)
No 384/96 of 22 December 1995 on protection against
dumped imports from countries not members of the European
Community (‘the basic Regulation’) (2).

On this basis, the dumping margin calculated is significant.

Furthermore, the applicants point out that during the period of
imposition of measures, the exporters/producers of the product
concerned from the People's Republic of China tried to under-
mine the existing measures by absorption practices which were
counteracted by Council Regulation (EC) No 236/2004 (5).

1. Request for review

The request was lodged on 24 April 2007 by two Community
producers: Sorochimie Chimie Fine and CUF, Quimicos Indus-
triais, S.A. (‘the applicants’) representing 100 % of the Com-
munity production of sulphanilic acid.

With regard to the likelihood of recurrence of dumping in
respect of the People's Republic of China it is also alleged that
the exports to other third countries, i.e. Japan and Brazil are
made at dumped prices, and that antidumping measures are in
force in other relevant third countries (i.e. the USA).

2. Product

The product under review is sulphanilic acid originating in the
People's Republic of China and India (‘the product concerned’),
currently classifiable within CN code ex 2921 42 10 (TARIC
2921 42 10 60). This CN code is given only for information.

The allegation of likelihood of recurrence of dumping in respect
of India is based on a comparison of normal value, established
on the basis of domestic prices and constructed cost, with the
likely export prices of the product concerned when sold for
export to the Community, should measures expire.

3. Existing measures

The measures currently in force are a definitive anti-dumping
duty imposed by Council Regulation (EC) No 1339/2002 (3), as
last amended by Council Regulation (EC) No 123/2006 (4).

It is alleged that export prices would in all likelihood drop to
levels where significant dumping would exist. This is supported
by the allegation that the undertaking in force for the majority
of Indian exports has acted as a price floor for export prices. In
addition, it is also alleged that the exports to other third coun-
tries, i.e. Thailand and Mexico are made at dumped prices, and
that antidumping measures are in force in other relevant third
countries (i.e. the USA).

4. Grounds for the review

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

In view of the provisions of Article 2(7) of the basic Regulation,
normal value was established for the People's Republic of China
on the basis of the price in an appropriate market economy
country, which is mentioned in point 5.1(d). The likelihood of
continuation of dumping is based on a comparison of normal
value, as set out in the preceding sentence, with the export
prices of the product concerned when sold for export to the
Community.

(1) OJ C 272, 9.11.2006, p. 18.
(2) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Council Regu-

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

(3) OJ L 196, 25.7.2002, p. 11.
(4) OJ L 22, 26.1.2006, p. 5.

imports of

The applicants have provided evidence that
the
product concerned from the People's Republic of China and
India have continued to enter in significant quantities, and that
such quantities would be likely to remain at their current levels,
if not increase i.a. due to the measures in force on imports of
the product originating in the countries concerned in traditional
markets other than the EU (i.e. the USA).

The applicants allege that the removal of injury is mainly due to
the existence of measures and that any continuation or recur-
rence of substantial imports at dumped prices from the coun-
tries concerned would likely lead to a recurrence of further
injury of the Community industry should measures be allowed
to lapse.

(5) OJ L 40, 12.2.2004, p. 17.

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Official Journal of the European Union

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5. Procedure

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

5.1. Procedure for the determination of likelihood of dumping

and injury

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

(a) Sampling

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

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

companies (1)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

— by providing the above information, the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this
will imply replying to a questionnaire and accepting
an on-the-spot investigation of its response. If the
company indicates that
it does not agree to its
possible inclusion or inclusion in the sample, it will
be deemed to not have co-operated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will, in addition, contact the authori-
ties of the exporting countries, and any known associa-
tions of exporters/producers.

(i) Sampling

for
People's Republic of China

expor ters/producers

in

the

(ii) Sampling for impor ters

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in point 6(b)(i) and in the
formats indicated in point 7:

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

numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 April 2006 to
31 March 2007,

— the turnover in local currency and the sales volume
in tonnes of the product concerned sold on the
domestic market during the period 1 April 2006 to
31 March 2007,

— the turnover in local currency and the sales volume
in tonnes for the product concerned sold to other
third countries during the period 1 April 2006 to
31 March 2007,

— the precise activities of the company with regard to
the production of the product concerned and the
the product
production volume
concerned, the production capacity and the invest-
ments in production capacity during the period 1
April 2006 to 31 March 2007,

in tonnes of

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in point 6(b)(i) and in the formats indicated in point
7:

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

numbers and contact person,

— the total turnover in EUR of the company during

the period 1 April 2006 to 31 March 2007,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in EUR of imports
into and resales made in the Community market
during the period 1 April 2006 to 31 March 2007
of the imported product concerned originating in
the People's Republic of China and India,

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July
1993 laying down provisions for the implementation of Council Regu-
lation (EEC) No 2913/92 establishing the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

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

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

— by providing the above information, the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this
will imply replying to a questionnaire and accepting
an on-the-spot investigation of its response. If the
it does not agree to its
company indicates that
possible inclusion or inclusion in the sample, it will
be deemed to not have co-operated in the investiga-
tion. The consequences of non-cooperation are set
out in point 8 below.

the selection of

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

the sample of

importers,

(iii) Final selection of the samples

All
interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in point 6(b)(ii).

samples

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

after having

consulted

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6 (b)(iii)
and must co-operate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 17(4) and 18 of the basic Regulation, on the
facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in point 8.

(c) Collection of information and holding of hearings

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

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii).

(d) Selection of the market economy country

In the previous investigation India was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
China. The Commission envisages to use India again for this
purpose. Interested parties are hereby invited to comment
on the appropriateness of this country within the specific
time limit set in point 6(c).

5.2. Procedure for the assessment of Community interest

In accordance with Article 21 of the basic Regulation and in the
event that the likelihood of a continuation or recurrence of
dumping and injury is confirmed, a determination will be made
as to whether to maintain, or repeal the anti-dumping measures
would not be against the Community interest. For this reason
the Community industry, importers, their representative associa-
tions, representative users and representative consumer organi-
sations, provided that they prove that there is an objective link
between their activity and the product concerned, may, within
the general time limits set in point 6(a)(ii), make themselves
known and provide the Commission with information. The
parties which have acted in conformity with the previous
sentence may request a hearing, setting the particular reasons
why they should be heard, within the time limit set in point 6(a)
(iii). It should be noted that any information submitted pursuant
to Article 21 will only be taken into account if supported by
factual evidence at the time of submission.

(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the Community industry and to any association of produ-
cers in the Community, to the sampled exporters/producers
in the People's Republic of China, to the exporters/producers
in India, to any association of exporters/producers, to the
sampled importers, to any association of importers named
in the request or which co-operated in the investigation
leading to the measures subject to the present review, and to
the authorities of the exporting countries concerned.

(1) For guidance on the meaning of related companies, please refer to

Article 143 of Commission Regulation (EEC) No 2454/93.

6. Time limits

(a) General time limits

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

claim for ms

interested parties who did not co-operate in the
All
investigation leading to the measures subject
to the
present review should request a questionnaire or other
claim forms as soon as possible, but not later than 15
days after the publication of this notice in the Official
Journal of the European Union.

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(ii) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies or
any other information within 40 days of the date of
publication of this notice in the Official Journal of the
European Union, unless otherwise specified. Attention is
drawn to the fact that the exercise of most procedural
rights set out in the basic Regulation depends on the
party's making itself known within the aforementioned
period.

Companies selected in a sample must submit question-
naire replies within the time limit specified in point 6
(b)(iii).

7. Written submissions, questionnaire replies and cor-

respondence

All submissions and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by interested
parties on a confidential basis shall be labelled as ‘Limited (1)’
and, in accordance with Article 19(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘FOR INSPECTION BY INTERESTED PARTIES’.

Commission address for correspondence:

European Commission
Directorate General for Trade
Directorate B
Office: J-79 4/23
B-1049 Brussels
Fax (32-2) 295 65 05

(iii) Hear ings

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

8. Non-co-operation

(b) Specific time limit in respect of sampling

the European Union, given that
to consult parties

(i) The information specified in point 5.1(a)(i) and 5.1(a)(ii)
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
the Commission
of
intends
concerned that have
expressed their willingness to be included in the sample
on its final selection within a period of 21 days of the
publication of this notice in the Official Journal of the
European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) must
reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

(iii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date of
the notification of their inclusion in the sample.

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

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits, or
significantly impedes the investigation, findings, affirmative or
negative, may be made in accordance with Article 18 of the
basic Regulation, on the basis of the facts available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made,
in accordance with Article 18 of the
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially, and use of facts
available is made, the result may be less favourable to that party
than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(5)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

Parties to the investigation may wish to comment on the
appropriateness of India which, as mentioned in point 5.1
the
(d),
is envisaged as a market-economy country for
the
purpose of establishing normal value in respect of
People's Republic of China. These comments must reach the
Commission within 10 days of the date of publication of
this notice in the Official Journal of the European Union.

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the Euro-
pean Parliament and of the Council of 30 May 2001 regarding public
access to European Parliament, Council and Commission documents
(OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant to
Article 19 of the basic Regulation and Article 6 of the WTO Agreement
on Implementation of Article VI of the GATT 1994 (Anti-dumping
Agreement).

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

the basic Regulation

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

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

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

independently of

11. Processing of personal data

Please note that any personal data collected in this investigation
will be treated in accordance with Regulation (EC) No 45/2001
of the European Parliament and the Council of 18 December
2000 on the protection of individuals with regard to the proces-
sing of personal data by the Community institutions and bodies
and on the free movement of such data (1).

(1) OJ L 8, 12.1.2001, p. 1.