Commission Regulation (EC) No 1028/2007 of 5 September 2007 initiating an investigation concerning the possible circumvention of anti-dumping measures imposed by Council Regulation (EC) No 1472/2006 on imports of certain footwear with uppers of leather originating in the People's Republic of China by imports of certain footwear with uppers of leather consigned from Macao SAR, whether declared as originating in Macao SAR or not, and making such imports subject to registration
Date: 2007-09-05
Institutions: European Commission
Subjects: China, Macao, anti-dumping legislation, anti-dumping measure, footwear industry, import, leather, originating product, trading operation

6.9.2007

EN

Official Journal of the European Union

L 234/3

COMMISSION REGULATION (EC) No 1028/2007

of 5 September 2007

initiating an investigation concerning the possible circumvention of anti-dumping measures
imposed by Council Regulation (EC) No 1472/2006 on imports of certain footwear with uppers
of leather originating in the People's Republic of China by imports of certain footwear with uppers
of leather consigned from Macao SAR, whether declared as originating in Macao SAR or not, and
making such imports subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 on
from countries not
protection against dumped imports
members of the European Community (the basic Regulation) (1),
and in particular Articles 13(3), 14(3) and 14(5) thereof,

After having consulted the Advisory Committee,

Whereas the Commission has decided, pursuant to Article 13(3)
of the basic Regulation to investigate on its own initiative the
possible circumvention of the anti-dumping measures imposed
on imports of certain footwear with uppers of leather origi-
nating in the People's Republic of China.

(2)

(3)

(4)

A. PRODUCT

ex 6403 99 36,
ex 6403 99 33,
ex 6403 99 31,
ex 6403 99 38,
ex 6403 99 93,
ex 6403 99 91,
ex 6403 99 96, ex 6403 99 98 and ex 6405 10 00 (2)
(the product concerned). These codes are given for infor-
mation only.

footwear

The product under investigation is footwear with uppers
leather or composition leather, excluding sports
of
footwear,
technology,
involving
slippers and other indoor footwear and footwear with
a protective toecap consigned from Macao SAR (the
product under investigation) normally declared under
the same codes as the product concerned.

special

B. EXISTING MEASURES

The measures currently in force and possibly being
circumvented are antidumping measures imposed by
Council Regulation (EC) No 1472/2006 (3).

C. GROUNDS
The Commission has at its disposal sufficient prima facie
evidence that the anti-dumping measures on imports of
the product concerned are being circumvented by means
of the transhipment via Macao SAR and/or by assembly
in Macao SAR of the product under investigation.

(1)

indoor

footwear

slippers and other

The product concerned by the possible circumvention is
footwear with uppers of leather or composition leather,
involving special
excluding sports footwear,
technology,
footwear and
footwear with a protective toecap (certain footwear
with uppers of
leather) originating in the People's
Republic of China, normally declared under CN codes
ex 6403 51 11,
6403 20 00,
ex 6403 51 91,
ex 6403 51 15,
ex 6403 59 05,
ex 6403 51 95,
ex 6403 59 35,
ex 6403 59 11,
ex 6403 59 95,
ex 6403 59 39,
ex 6403 91 11,
ex 6403 59 99,
ex 6403 91 18,
ex 6403 91 13,
ex 6403 91 96,
ex 6403 91 91,
ex 6403 99 11,
ex 6403 91 98,

ex 6403 51 19,
ex 6403 51 99,
ex 6403 59 31,
ex 6403 59 91,
ex 6403 91 05,
ex 6403 91 16,
ex 6403 91 93,
ex 6403 99 05,

ex 6403 51 05,

(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).

(5)

The evidence is as follows:

— the request shows that a significant change in the
pattern of trade involving exports from the People's
Republic of China and Macao SAR to the Community
has taken place following the imposition of measures
on the product concerned, and that there is insuf-
ficient due cause or justification other than the impo-
sition of the duty for such a change,

(2) As defined in Commission Regulation (EC) No 1719/2005 of
27 October 2005 amending Annex I to Council Regulation (EEC)
No 2658/87 on the tariff and statistical nomenclature and on the
Common Customs Tariff (OJ L 286, 28.10.2005, p. 1). The product
coverage is determined in combining the product description in
Article 1(1) and the product description of
the corresponding
CN codes taken together.
(3) OJ L 275, 6.10.2006, p. 1.

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Official Journal of the European Union

6.9.2007

— this change in the pattern of trade appears to stem
from the transhipment of certain footwear with
uppers of
People's
Republic of China via Macao SAR and/or assembly
in Macao SAR of certain footwear with uppers of
leather,

leather originating

in the

(9)

set

in Article 3 of

interested parties should contact the
In any event, all
than the time
later
Commission forthwith, but not
limit
if
necessary, request a questionnaire within the time limit
set in Article 3(1) of this Regulation, given that the time
limit set in Article 3(2) of this Regulation applies to all
interested parties.

this Regulation and,

of

— furthermore, the evidence points to the fact that the
existing
anti-dumping
the
remedial
effects
measures on the product
concerned are being
undermined both in terms of quantity and price.
the product
Significant volumes of
under investigation appear to have replaced imports
of
there is
sufficient evidence that this increase in imports is
made at prices well below the non-injurious price
led to the
established in the investigation that
existing measures,

the product concerned.

In addition,

imports of

— finally,

its disposal

the Commission has sufficient prima facie
evidence at
the
that
product under investigation are dumped in relation
to the normal value previously established for the
product concerned.

the prices of

(10)

The authorities of the People's Republic of China and
Macao SAR will be notified of the initiation of the inves-
tigation.

(b) Collection of information and holding of hearings

(11) All

interested parties are hereby invited to make their
views known in writing and to provide supporting
the Commission may hear
evidence.
interested parties, provided that they make a request in
writing and show that there are particular reasons why
they should be heard.

Furthermore,

(6)

(7)

(8)

Should circumvention practices via Macao SAR covered
by Article 13 of the basic Regulation, other than trans-
hipment and assembly, be identified in the course of the
investigation, the investigation may cover these practices
also.

(c) Exemption of

imports

from registration or

measures

(12)

In accordance with Article 13(4) of the basic Regulation,
imports of
investigation may be
exempted from registration or measures if such impor-
tation does not constitute circumvention.

the product under

D. PROCEDURE

(13)

In the light of the above, the Commission has concluded
that sufficient evidence exists to justify the initiation of
an investigation pursuant to Article 13 of the basic Regu-
lation and to make imports of the product under inves-
tigation, whether declared as originating in Macao SAR
or not,
in accordance with
Article 14(5) of the basic Regulation.

to registration,

subject

Since the possible circumvention takes place outside the
Community, exemptions may be granted, in accordance
with Article 13(4) of the basic Regulation, to producers
in Macao SAR of certain footwear with uppers of leather
that can show that they are not related to any producer
subject to the measures and that are found not to be
engaged in circumvention practices as defined in Articles
13(1) and 13(2) of
the basic Regulation. Producers
wishing to obtain an exemption should submit a
request duly supported by evidence within the time
limit indicated in Article 3(3) of this Regulation.

(a) Questionnaires

In order to obtain the information it deems necessary for
its investigation,
the Commission will send question-
naires to the exporters/producers and to the associations
of exporters/producers in Macao SAR, to the importers
and to the associations of importers in the Community
which cooperated in the investigation that led to the
existing measures and to the authorities of the People's
Republic of China and Macao SAR.
Information, as
appropriate, may also be sought from the Community
industry.

E. REGISTRATION

(14)

the product under

Pursuant to Article 14(5) of the basic Regulation, imports
investigation should be made
of
subject to registration in order to ensure that, should
the investigation result
in findings of circumvention,
anti-dumping duties of an appropriate amount can be
levied retroactively from the date of
registration of
such imports consigned from Macao SAR.

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F. TIME LIMITS

HAS ADOPTED THIS REGULATION:

(15)

In the interest of sound administration,
should be stated within which:

time limits

— interested parties may make themselves known to the
Commission, present
in writing and
submit questionnaire replies or any other information
to be taken into account during the investigation,

their views

— producers in Macao SAR may request exemption of

imports from registration or measures,

— interested parties may make a written request to be

heard by the Commission.

(16) 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 time limits
mentioned in Article 3 of this Regulation.

Article 1

footwear with uppers of

An investigation is hereby initiated pursuant to Article 13(3) of
Regulation (EC) No 384/96, in order to determine if imports
into the Community of
leather or
composition leather as defined in Article 1 of Council Regu-
lation (EC) No 1472/2006, consigned from Macao SAR,
whether originating in Macao SAR or not, are circumventing
the measures imposed by the latter Regulation. The TARIC
codes for imports from Macao SAR are listed in the Annex
of this Regulation.

Article 2

The Customs authorities are hereby directed, pursuant
to
Article 13(3) and Article 14(5) of Regulation (EC) No 384/96
of 22 December 1995, to take the appropriate steps to register
the imports into the Community identified in Article 1 of this
Regulation.

Registration shall expire nine months following the date of
entry into force of this Regulation.

G. NON-COOPERATION

(17)

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,
provisional or
may be made in accordance with Article 18 of
the
basic Regulation, on the basis of the facts available.

final

The Commission, by Regulation, may direct Customs authorities
to cease registration in respect of imports into the Community
of products manufactured by producers having applied for an
exemption from registration and having been found not to be
circumventing the anti-dumping duties.

(18) 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 findings are therefore based on the facts
available in accordance with Article 18 of the basic Regu-
lation, the result may be less favourable to that party
than if it had cooperated.

H. PROCESSING OF PERSONAL DATA

the European Parliament

(19) Any personal data collected in this investigation will be
treated in accordance with Regulation (EC) No 45/2001
and the Council of
of
individuals
18 December 2000 on the protection of
with regard to the processing 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.

Article 3

1.
Questionnaires should be requested from the Commission
within 15 days of the date of publication of this Regulation in
the Official Journal of the European Union.

2.
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 in
writing and submit questionnaire replies or any other infor-
mation within 40 days from the date of the publication of
this Regulation in the Official
the European Union,
unless otherwise specified.

Journal of

3.
Producers in Macao SAR requesting exemption of imports
from registration or measures should submit a request duly
supported by evidence within the same 40-day time limit.

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Interested parties may also apply to be heard by the

4.
Commission within the same 40-day time limit.

5.
Any information relating to the matter, any request for a
for
hearing or for a questionnaire as well as any request
exemption of imports from registration or measures 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 Regu-
lation, 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.

Article 4

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

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

Done at Brussels, 5 September 2007.

For the Commission

Peter MANDELSON
Member of the Commission

(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 documents (OJ L 145, 31.5.2001, p. 43). It is a confi-
dential 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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ANNEX

TARIC codes for footwear with uppers of leather or composition leather as defined in Article 1 of Council
Regulation (EC) No 1472/2006, consigned from Macao SAR, whether originating in Macao SAR or not

CN code

6403 20 00

6403 51 05

6403 51 05

6403 59 05

6403 59 05

6403 91 05

6403 91 05

6403 99 05

6403 99 05

6403 51 11

6403 51 15

6403 51 19

6403 51 91

6403 51 95

6403 51 99

6403 59 11

6403 59 31

6403 59 35

6403 59 39

6403 59 91

6403 59 95

6403 59 99

6403 91 11

6403 91 13

6403 91 16

6403 91 18

6403 91 91

6403 91 93

6403 91 96

6403 91 98

6403 99 11

6403 99 31

6403 99 33

TARIC code
Consigned from Macao SAR

20

15

95

15

95

15

95

15

95

91

91

91

91

91

91

91

91

91

91

91

91

91

95

95

95

95

95

95

95

95

91

91

91

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CN code

6403 99 36

6403 99 38

6403 99 91

6403 99 93

6403 99 93

6403 99 96

6403 99 96

6403 99 98

6403 99 98

6405 10 00

TARIC code
Consigned from Macao SAR

91

91

95

25

95

25

95

25

95

81