Notice of initiation of an expiry review of the countervailing measures applicable to imports of sulphanilic acid originating in India
Date: 2007-07-24
Institutions: European Commission
Subjects: India, chemical product, countervailing charge, export subsidy, import, originating product

C 171/14

EN

Official Journal of the European Union

24.7.2007

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of an expiry review of the countervailing measures applicable to imports of
sulphanilic acid originating in India

(2007/C 171/11)

Following the publication of a notice of impending expiry (1) of
the anti-subsidy measures in force on imports of sulphanilic
acid originating in India, (‘country concerned’), the Commission
has received a request for review pursuant to Article 18 of
Council Regulation (EC) No 2026/97 of 6 October 1997 on
protection against
from countries not
subsidised imports
the European Community (‘the basic Regu-
members of
lation’) (2).

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.

2. Product

The product under review is sulphanilic acid originating in 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.

3. Existing measures

The measures currently in force are a definitive countervailing
duty imposed by Council Regulation (EC) No 1338/2002 (3), as
last amended by Council Regulation (EC) No 123/2006 (4).

4. Grounds for the review

The applicants have provided evidence that the expiry of the
measures would lead to a continuation or recurrence of subsidi-
sation and injury.

It is alleged that the producers of the product concerned have
benefited and will continue to benefit from a number of subsi-
dies granted by the Government of India. These alleged subsidies
consists of schemes of benefits to industries located in export

processing zones/export oriented units; the post-export duty
the export promotion capital
entitlement passbook scheme;
goods scheme; the export income tax exemption scheme; the
advance licenses- advance release orders scheme; the income tax
incentive for research and development scheme,
the export
credits scheme; and the duty-free replenishment certificate.

The total subsidy estimated is significant.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the government of India
or other regional governments and confer a benefit to the reci-
pients, i.e. to exporters/producers of sulphanilic acid. They are
alleged to be contingent upon export performance or explicitly
limited to certain enterprises and therefore specific and counter-
vailable.

The applicants further allege the likelihood of injurious subsidi-
sation. The applicants have provided evidence that imports of
the product concerned from 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
country 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 subsidised prices from the
country concerned would likely lead to a recurrence of further
injury of the Community industry should measures be allowed
to lapse.

5. Procedure

(1) OJ C 272, 9.11.2006, p. 18.
(2) OJ L 288, 21.10.97, p. 1. Regulation as last amended by Regulation

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

(3) OJ L 196, 25.7.2002, p. 1.
(4) OJ L 22, 26.1.2006, p. 1.

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 18 of the basic Regulation.

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Official Journal of the European Union

C 171/15

5.1. Procedure for the determination of likelihood of subsidi-

zation 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 subsidization and injury.

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,

(a) Sampling

(ii) Final selection of the sample

In view of the apparent number of parties involved in this
proceeding, the Commission may decide to apply sampling,
in accordance with Article 27 of the basic Regulation.

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).

(i) Sampling for impor ters

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

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

numbers and contact person,

— the total turnover in EUR of the company during

the period 1 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
India,

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

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

— by providing the above information, the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this
will imply replying to a questionnaire and accepting
an on-the-spot investigation of its response. If the
company indicates that
it does not agree to its
possible inclusion 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 Commission intends to make the final selection of
the sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

Companies included in the sample must reply to a ques-
tionnaire within the time limit set in point 6 (b)(iii) and
must co-operate within the framework of the investiga-
tion.

sufficient

forthcoming,

co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 27(4) and 28 of the basic Regulation, on the
facts available. A finding based on facts available may be
less advantageous to the party concerned, as explained
in point 8.

(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the Community industry and to any association of produ-
cers in the Community, 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 country concerned.

(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).

(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).

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).

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Official Journal of the European Union

24.7.2007

5.2. Procedure for the assessment of Community interest

(b) Specific time limit in respect of sampling

importers,

In accordance with Article 31 of the basic Regulation and in the
event that the continuation or recurrence of subsidization and
injury is confirmed, a determination will be made as to whether
to maintain, amend or repeal the anti-subsidy measures would
not be against the Community interest. For this reason the
their representative associa-
Community industry,
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 31 will only be taken into account if supported by
factual evidence at the time of submission.

6. Time limits

(a) General time limits

(i) For par ties to request a questionnaire

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

(ii) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

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

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

(iii) Hear ings

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

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

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(ii) 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.

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 29(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘FOR INSPECTION BY INTERESTED PARTIES’.

Commission address for correspondence:

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

8. Non-co-operation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits, or
significantly impedes the investigation, findings, affirmative or
negative, may be made in accordance with Article 28 of the
basic Regulation, on the basis of the facts available.

(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 29 of the basic Regulation and Article 12 of the WTO Agree-
ment on Subsidies and Countervailing Measures.

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Official Journal of the European Union

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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 28 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 22(1)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

maintained in accordance with Article 22(2) 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 19
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

10. Possibility to request a review under Article 19 of the

basic Regulation

As this expiry review is initiated in accordance with the provi-
sions of Article 18 of the basic Regulation, the findings thereof
will not
the existing measures being
lead to those measures being repealed or
amended but will

lead to the level of

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.