Notice of initiation of an anti-dumping proceeding concerning imports of monosodium glutamate originating in the People's Republic of China
Date: 2007-09-05
Institutions: European Commission
Subjects: China, anti-dumping legislation, chemical compound, dumping, import, originating product

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Official Journal of the European Union

5.9.2007

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of an anti-dumping proceeding concerning imports of monosodium glutamate
originating in the People's Republic of China

(2007/C 206/08)

The Commission has received a complaint pursuant to Article 5
of Council Regulation (EC) No 384/96 of 22 December 1995
on protection against dumped imports from countries not
the European Community (‘the basic Regu-
members of
lation’) (1), alleging that
imports of monosodium glutamate,
originating in the People's Republic of China (‘the country
concerned’), are being dumped and are thereby causing material
injury to the Community industry.

1. Complaint

The complaint was lodged on 23 July 2007 by Ajinomoto
Foods Europe S.A.S. (‘the complainant’), the sole producer in the
European Community, representing 100 % of the Community
production of monosodium glutamate.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China have
increased overall
in absolute terms and in terms of market
share.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the quantities sold, the market share held
and the level of prices charged by the Community industry,
resulting in substantial adverse effects on its financial situation
and employment situation of the Community industry.

5. Procedure

2. Product

The product allegedly being dumped is monosodium glutamate
originating in the People's Republic of China (‘the product
concerned’), normally declared within CN code ex 2922 42 00.
This CN code is only given for information.

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the Com-
munity industry and that there is sufficient evidence to justify
the initiation of a proceeding, the Commission hereby initiates
an investigation pursuant to Article 5 of the basic Regulation.

3. Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for
the People's
Republic of China on the basis of
the price in a market
economy country, which is mentioned in point 5.1(d). The alle-
gation of dumping is based on a comparison of normal value,
thus calculated, with the export prices of the product concerned
when sold for export to the Community.

5.1. Procedure for the determination of dumping and injury

The investigation will determine whether the product concerned
originating in the People's Republic of China is being dumped
and whether this dumping has caused injury.

(a) Sampling

On this basis, the dumping margin calculated is significant.

(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).

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

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(i) Sampling

for
People's Republic of China

expor ters/producers

in

the

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 July 2006 to
30 June 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 January 2006
to 30 June 2007,

— whether the company intends to claim an individual
margin (1) (individual margins can only be claimed
by producers),

— the precise activities of the company with regard to

the production of the product concerned,

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

companies (2)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

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

investigation of

response.

its

If

(1) Individual margins may be claimed pursuant to Article 17(3) of the
basic Regulation for companies not included in the sample, Article 9(5)
of the basic Regulation concerning individual treatment in cases
involving non market economy countries/economies in transition, and
Article 2(7)(b) of the basic Regulation for companies claiming market
economy status. Note that claims for individual treatment necessitate
an application pursuant to Article 9(5) of the basic Regulation and that
claims regarding market economy status necessitate an application
pursuant to Article 2(7)(b) of the basic Regulation.

(2) 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).

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 country, and any known associa-
tions of exporters/producers.

(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
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 euro of the company during

the period 1 July 2006 to 30 June 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 euro of imports
into and resales made in the Community market
during the period 1 July 2006 to 30 June 2007 of
the imported product concerned originating in the
People's Republic of China,

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

companies (3)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

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

investigation of

response.

its

If

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

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

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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,

supporting evidence has to reach the Commission within
the time limit set in point 6(a)(ii).

(iii) Final selection of the sample

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).

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 cooperate within the framework of the investiga-
tion.

forthcoming,

sufficient co-operation is not

the
If
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.

(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 any association of
exporters/producers, to the sampled importers, to any asso-
ciation of importers named in the complaint, and to the
authorities of the exporting country concerned.

Exporters/producers
in the People's Republic of China
claiming an individual margin, with a view to the applica-
tion of Articles 17(3) and 9(6) of the basic Regulation, must
submit a completed questionnaire within the time limit set
in point 6(a)(ii) of this notice. They therefore have to request
a questionnaire within the time limit set in point 6(a)(i).
However, such parties should be aware that if sampling is
applied to exporters/producers, the Commission may none-
theless decide not
to calculate an individual margin for
them, if the number of exporters/producers is so large that
individual examination would be unduly burdensome and
would prevent the timely completion of the investigation.

(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

that

Furthermore, the Commission may hear interested parties,
provided
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).

they make

showing

request

a

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose Thailand as an appropriate market
economy country for the purpose of establishing normal
value in respect of the People's Republic of China. Interested
parties are hereby invited to comment on the appropriate-
ness of this choice within the specific time limit set in
point 6(c).

(e) Market economy status

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
operate under market economy conditions,
i.e. that they
meet the criteria laid down in Article 2(7)(c) of the basic
Regulation, normal value will be determined in accordance
with Article 2(7)(b) of the basic Regulation. Exporters/pro-
ducers intending to submit duly substantiated claims must
do so within the specific time limit set in point 6(d). The
Commission will send claim forms to all exporters/produ-
cers in the People's Republic of China named in the
complaint and to any association of exporters/producers
named in the complaint, as well as to the authorities of the
People's Republic of China.

5.2. Procedure for assessment of Community interest

In accordance with Article 21 of the basic Regulation and in the
event that the allegations of dumping and injury caused thereby
are substantiated, a decision will be reached as to whether the
adoption of anti-dumping measures would not be against the
Community interest. For this reason the Community industry,
importers, their representative associations, representative users
and representative consumer organisations, 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 precedent 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.

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6. Time limits

(a) General time limits

(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.

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

claim for ms

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

All interested parties should request a questionnaire or
other claim forms as soon as possible, but not later
than 10 days after 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 Thailand which, as mentioned in
point 5.1(d), is envisaged as a market-economy country for
the purpose of establishing normal value in respect of the
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.

(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.

selected

Companies
submit
a
questionnaire replies within the time limits specified in
point 6(b)(iii).

sample must

in

(iii) Hear ings

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

(b) Specific time limit in respect of sampling

(i) The

information specified in points 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 of the European Union, given that the Commis-
sion 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 point 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.

(d) Specific time limit for submission of claims for market economy

status and/or for individual treatment.

Duly substantiated claims for market economy status (as
mentioned in point 5.1(e)) and/or for individual treatment
pursuant to Article 9(5) of the basic Regulation, must reach
the Commission within 15 days of the date of publication
of this notice in the Official Journal of the European Union.

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 H
Office: J-79 4/22
B-1049 Brussels
Fax (32-2) 295 65 05

(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
European Parliament and of the Council of 30 May 2001 regarding
public access to European Parliament, Council and Commission docu-
ments (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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8. Non-cooperation

9. Schedule of the investigation

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, provisional or final find-
ings, 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 of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 18 of the basic Regulation, the result may be less favour-
able to that party than if it had cooperated.

The investigation will be concluded, according to Article 6(9) of
the basic Regulation within 15 months of the date of the publi-
cation of this notice in the Official Journal of the European Union.
According to Article 7(1) of the basic Regulation, provisional
measures may be imposed no later than 9 months from the
publication of this notice in the Official Journal of the European
Union.

10. 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.