Commission Regulation (EC) No 1071/2007 of 18 September 2007 imposing a provisional anti-dumping duty on imports of coke of coal in pieces with a diameter of more than 80 mm (Coke 80+) originating in the People’s Republic of China
Date: 2007-09-18
Institutions: European Commission
Subjects: China, EU production, anti-dumping duty, coal industry, coke, consumption, import (EU), originating product

19.9.2007

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Official Journal of the European Union

L 244/3

COMMISSION REGULATION (EC) No 1071/2007

of 18 September 2007

imposing a provisional anti-dumping duty on imports of coke of coal in pieces with a diameter of
more than 80 mm (Coke 80+) originating in the People’s Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

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 Community (1),
(‘the basic Regulation’) and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

1. Initiation

the European Union (2),

On 20 December 2006, pursuant to Article 5 of the
the Commission announced by a
basic Regulation,
initiation) published in the Official
notice (notice of
the initiation of an
Journal of
anti-dumping proceeding concerning imports into the
Community of coke of coal
in pieces with a diameter
of more than 80 mm (Coke 80+) originating in the
People’s Republic of China (the PRC or the country
concerned).

complainants)

The proceeding was
initiated following a complaint
lodged on 20 November 2006 by three Community
(the
producers
representing a major
proportion,
in this case more than 30 %, of the total
Community production of Coke 80+. The complaint
contained prima facie evidence of dumping of the said
product and of material
injury resulting therefrom,
which was considered sufficient to justify the initiation
of a proceeding.

(4)

(5)

(6)

2004

March

Commission Decision No 2730/2000/ECSC (4)
(the
previous measures), but the measures were suspended
Decision
in
2004/264/EC (5) due to a temporary change in market
conditions. The suspension was extended by Council
Regulation (EC) No 2117/2004 (6) until 15 December
2005, when the measures expired.

Commission

by

2. Parties concerned by the proceeding

to

users

known

importers/traders
as
as well

The Commission officially advised the
complaining
producers and other known Community producers, the
representatives of the PRC, exporting producers in the
PRC,
be
and
associations known to be
concerned,
concerned of the initiation of the proceeding. Interested
parties were given the opportunity to make their views
known in writing and to request a hearing within the
time limit set in the notice of initiation. One exporter in
the PRC, as well as producers, users and one importer in
the Community made their views known in writing. All
parties who so requested within the given time limit and
showed that
there were particular reasons why they
should be heard were granted a hearing.

the apparent

large number of exporting
In view of
producers and importers involved in the investigation,
the application of sampling techniques was envisaged
in the notice of
in accordance with Arti-
cle 17 of the basic Regulation.

initiation,

if so,

exporting

producers

In order to enable the Commission to decide whether
to select a
sampling would be necessary and,
sample,
importers were
and
requested to make themselves known and to provide
initiation.
information as
to
one
Only
cooperate.
It was consequently decided that sampling
was not necessary.

specified in the notice of

exporting

producer

forward

came

(3)

The product concerned was already subject
to anti-
dumping measures from June 2000 until 2004. The
measures were imposed provisionally by Commission
Decision No 1238/2000/ECSC (3) and definitively by

(7)

Also as far as the importers of Coke 80+ are concerned,
given that only one importer indicated its willingness to
cooperate,
sampling was not
necessary.

it was decided that

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(4) OJ L 316, 15.12.2000, p. 30. Decision as amended by Council

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

Regulation 997/2004 (OJ L 183, 20.5.2004, p. 1).

(2) OJ C 313, 20.12.2006, p. 15.
(3) OJ L 141, 15.6.2000, p. 9.

(5) OJ L 81, 19.3.2004, p. 89.
(6) OJ L 367, 14.12.2004, p. 3.

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Official Journal of the European Union

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(8)

(9)

sole

to allow the

cooperating exporting
In order
producer in the PRC to submit a claim for market
economy treatment (MET) pursuant to Article 2(7) of
the basic Regulation or
(IT)
pursuant to Article 9(5) of the basic Regulation, if it so
wished, the Commission sent a MET/IT claim form to the
sole Chinese
exporting
producer requested neither MET nor IT.

cooperating company. This

individual

treatment

cooperating exporting producer,

The Commission sent questionnaires to all parties known
to be concerned and to all other companies that made
themselves known within the deadlines set out in the
notice of initiation. Replies were received from the sole
Chinese
from five
from one importer and from
Community producers,
36
submitted
users
comments without
questionnaire.
Submissions were made also by the European Foundry
Association (CAEF), acting also on behalf of its members,
comprising national foundry associations from 17 EU
Member States.

addition,

replying

to the

several

users.

In

(c) Users in the Community

— Rockwool

International A/S and its subsidiary
Rockwool A/S, Denmark; both in Hedehusene,
Denmark;

— Fritz Winter Eisengiesserei GmbH & Co, Stadtta-

lendorf, Germany.

(11)

In the absence of any claims for MET or IT, and since a
normal value for exporting producers in the PRC should
be established on the basis of data from the selected
analogue country, a verification visit took place at the
premises of the following companies:

(10)

The Commission sought and verified all
information it
deemed necessary for the purpose of a preliminary deter-
mination of dumping, resultant injury and Community
interest. Verification visits were carried out at
the
following companies:

(a) Community producers

Producers of the analogue country USA

— Tonawanda Coke Co., New York;

— Erie Coke Co., Pennsylvania.

— Industrial Química del Nalón,

SA, Oviedo,

Asturias, Spain,

— Industrias Doy Manuel Mórate, SL, Oviedo,

Asturias, Spain,

3. Investigation period

(12)

The investigation of dumping and injury covered the
period from 1 October 2005 to 30 September 2006
(investigation period or IP). The examination of trends
relevant for the assessment of injury covered the period
the IP (period
from 1 January 2003 to the end of
considered).

— Italiana Coke SpA, Savona, Italy,

B. PRODUCT CONCERNED AND LIKE PRODUCT

— OKD, OKK, a.s., Ostrava-Přívoz, Czech Republic,

(13)

— Productos de Fundición, S.A., Baracaldo, Vizcaya,

Spain;

1. Product concerned

The product concerned is coke of coal in pieces with a
diameter of more than 80 mm (Coke 80+) originating in
the People's Republic of China (the product concerned),
normally declared within CN code ex 2704 00 19.

(b) Unrelated importer in the Community

— ThyssenKrupp MinEnergy GmbH, Essen,

Germany;

(14)

Coke of coal in pieces with a diameter of more than 80
mm (Coke 80+) is prepared from bituminous coal which
is an organic sedimentary rock extracted from the
ground. Steel industry uses primarily small and medium
sized coke (Coke 80–; also called blast furnace coke),
whereas cast iron and isolation industries use large size
coke (Coke 80+; also called foundry coke)
for their
cupolas. Both types of coke fall under the same CN code.

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(15)

The investigation showed that all types of the product
concerned, despite differences
raw materials
qualities, differences in the production methods and
different lump sizes, have the same basic technical and
chemical characteristics and are used as a combustion
agent for use in cupola ovens.

in coal

(20)

(21)

(16)

It is therefore concluded that the product concerned is
foundry coke originating in the PRC, that is to say coke
of coal in pieces with a diameter of more than 80 mm of
a kind used in cupola ovens. It is also concluded that all
foundry coke is one single product since it always has
the same basic technical and chemical characteristics and
the same use.

The USA has a relatively large and open domestic market
for Coke 80+, with five domestic producers (during the
IP) and a sufficient level of imports. In addition, similar
processes as in the PRC are used for the production of
the product concerned.

For Australia,

The suitability of other countries which were considered
as possibly having Coke 80+ production was also
examined.
country where
evidence of the production of the product concerned
was found, information provided by the sole Australian
producer indicated that the Australian domestic market is
very limited.

the only

2. Like product

(17)

The investigation showed that Coke 80+ produced and
sold in the Community by the Community industry, that
to the
produced in the PRC and sold for export
and that produced and sold in the
Community
analogue
same basic
physical, technical and chemical characteristics and uses.
They are therefore considered to be alike within the
meaning of Article 1(4) of the basic Regulation.

country (the USA) have

the

C. DUMPING

1. Cooperation

(18) As mentioned in recital 6, only one Chinese exporting
producer cooperated in the proceeding. The export sales
made by this exporting producer represented less than
30 % of the total Coke 80+ imports originating in China
It is therefore
sold to the Community during the IP.
concluded that the level of cooperation was very low.
The representatives of
the PRC were informed that
such low level of cooperation may lead to the application
of Article 18 of the basic Regulation.

2. Normal value

(a) Analogue country

(22) On the basis of the above, it was concluded that the USA
country.
from the

was
a
Accordingly,
American Association of coke producers.

an analogue
sought

cooperation was

suitable

choice

as

(b) Determination of normal value

(23)

Pursuant to Article 2(7) of the basic Regulation, normal
value was established on the basis of the verified infor-
mation received from two cooperating companies in
the USA.

(24) As far as the determination of normal value is concerned,
the Commission first established,
in accordance with
Article 2(2) of the basic Regulation, that the domestic
sales to independent customers of the like product manu-
factured by the two cooperating producers in the USA
i.e. that the total volume of such
were representative,
sales
the total export
volume of the product concerned to the Community.
the product
In this respect,
concerned consists of one single product type.

it should be noted that

represented at

least 5 % of

(25)

The Commission subsequently examined whether the
above domestic sales could be regarded as being sold
in the ordinary course of trade pursuant to Article 2(4)
of the basic Regulation. It was found that more than
95 % of sales by volume on the domestic market were
profitable.

(19)

it was envisaged to use the
In the notice of initiation,
USA as an appropriate analogue country for the purpose
of establishing normal value for the PRC and interested
parties were invited to comment on the appropriateness
of this choice. No comments or objections were received
from any parties in this respect.

(26) As a result, normal value was established as the weighted
average of the ex-works domestic sale prices to unrelated
customers made by the two cooperating producers in
the USA.

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3. Export price

(27)

In view of the limited cooperation from the PRC, the
export price was mainly based on the best information
available,
the basic
in accordance with Article 18 of
there is no specific
Regulation. Since January 2006,
TARIC code for Coke 80+. As a consequence, Eurostat
figures could not be used to calculate Chinese export
prices of Coke 80+ or volume for the IP. However,
detailed information on quantities and prices of Coke
80+ imported from China during the IP could be
obtained from the customs authorities of
importing
Member States.

the best

(28) As such information relating to imports of the product
information
concerned during the IP was
available in accordance with Article 18 of the basic Regu-
lation,
it was used to assess the volume and price of
Chinese exports during the IP. However, in consideration
of the fact that the sole cooperating exporting producer
had submitted information on export prices, this infor-
mation was also considered and was found to be in line
with the information obtained from the abovementioned
customs authorities. The weighted average net ex-works
export price established on the basis of this data was
EUR 107,73 per tonne.

4. Comparison

(29)

The normal value and export prices were compared on
an ex-works basis. For the purpose of ensuring a fair
comparison between the normal value and the export
price, due allowance in the form of adjustments was
made for differences affecting prices and price compar-
the basic
ability in accordance with Article 2(10) of
concerning
Regulation.
differences
discounts,
transport and insurance, packing, credit and after-sales
costs were granted where they were found to be appro-
priate and supported by verified evidence.

adjustments
characteristics,

Appropriate
physical
in

an adjustment was granted for the quality differences
found. As for the screening in Europe, no adjustment
is necessary since this operation takes place after the
determination of the CIF value, which is the starting
is
point
determined.

from which the

export price

ex-works

5. Dumping margin

(32)

The dumping margin was established on the basis of a
comparison of a weighted average ex-works normal value
with a weighted average ex-works export price,
in
accordance with Article 2(11) and (12) of the basic Regu-
lation. The country wide dumping margin, expressed as a
percentage of the CIF Community frontier price, duty
unpaid, is 53,3 %.

D. INJURY

1. General

(33) As mentioned in recital 3, anti-dumping measures were
imposed in 2000 on imports of Coke 80+ originating in
the PRC. Those measures were suspended in March 2004
and expired in December 2005. Therefore, in the early
part of the period considered there were measures in
place on imports from the country concerned.

2. Community production and Community industry

seven producers. The output of

(34) Within the Community, the like product is manufactured
by
seven
Community producers is therefore deemed to constitute
the Community production within the meaning of
Article 4(1) of the basic Regulation.

these

(30)

The sole Chinese cooperating exporting producer argued
that
the product concerned imported from the PRC
during the IP was of a different quality than the like
product manufactured in the analogue country and
required additional screening operations before it could
be actually sold.

(31)

The chemical and dimensional quality requirements of
the product concerned and of the like product manu-
factured in the analogue country were compared and

(35) Of these seven producers, a total of five declared their
interest in cooperating in the proceeding within the time
limit set out in the notice of
initiation and properly
cooperated with the investigation. These five producers
were found to account for a major proportion of the
total Community production of
in
this case around 75 %. The five cooperating producers
therefore constitute the Community industry within the
meaning of Article 4(1) and Article 5(4) of the basic
Regulation and will be hereafter
referred to as the
‘Community industry’. The remaining two Community
producers will be hereafter referred to as the ‘other
Community producers’. These two other Community
producers did not oppose the complaint.

the like product,

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(36)

3. Community consumption

Community consumption was established on the basis of
the Community industry’s own
the sales volumes of
production destined for the Community market, the EC
sales volume information obtained from the other
Community producers and cross-checked against esti-
mations made by the Community industry producers
and information obtained from users, and on the basis
of import volumes. As for the Chinese import volumes,
there was no specific TARIC code for Coke 80+ in year
2006 and thus no Eurostat data available. Therefore, the
import volumes for the IP have provisionally been estab-
lished on the basis of the detailed information obtained
from EC customs authorities, as mentioned in recital 27.
For the years 2003 and 2005, the import volumes have
provisionally been based on Eurostat data, which have
been cross-checked against market data obtained during
the investigation from users and importers. As for year
2004, the Eurostat data as far as import volumes are
concerned are in a sharp contrast to market information
investigation from producers,
obtained during
the
importers and users.
infor-
mation shows that there were few Chinese imports in

Indeed, while the market

limited

the Eurostat

figures, on the contrary, show a
2004,
significant peak of such imports in 2004. Therefore, it
seems probable that after the suspension of the previous
measures in March 2004, importers declared some Coke
80– under the TARIC code of Coke 80+ and thus the
Eurostat data do not give an accurate picture of import
volumes in 2004. For that reason, and in view of the
exporting
very
producers and importers in the Community, at
this
stage of the investigation, the import volumes for 2004
have been established on the basis of
information
provided in the complaint, which is in line with infor-
mation obtained during the investigation from importers
and users. The Commission will continue its investigation
on the import volumes before definitive determinations
are made.

cooperation from Chinese

(37) On the basis of

the above,

it was found that

the
Community consumption increased over
the period
considered and during the IP the Community market
for the product concerned and the like product was
approximately 25 % higher than in 2003.

2003

2004

2005

IP

Total EC consumption (thousand tonnes)
(range) (1)

1 100-1 500

1 300-1 700

1 350-1 750

1 400-1 800

Index (2003 = 100)

100

119

122

125

(1) For confidentiality reasons, given that there are only two companies in the category ‘other Community producers’, only ranges

are given for the total EC consumption figures.

4. Imports from the country concerned

(a) Volume and market share of the imports concerned

(38)

Based on information available from customs authorities and from cooperating parties, the PRC has
been, throughout the period considered, the only source of imports of the product concerned to the
EC. Therefore, all import volumes in the EC during the period considered are deemed as originating
in the PRC.

(39) On the basis of the facts available at this stage as described in recital 36, it was found that Chinese
import volumes of the product concerned into the Community increased by 45 % from 2003
(around 311 000 tonnes) to the IP (more than 452 000 tonnes).

(40)

The market share held by imports from the country concerned increased from 24 % in 2003 to 28 %
during the IP,
i.e. by 4 percentage points. During the IP, the market share of imports from the
country concerned increased by 3 percentage points, as compared to year 2005.

Volume of imports from the PRC
(tonnes)

Index (2003 = 100)

Market share of imports from the PRC

2003

2004

2005

IP

310 755

150 000

386 485

452 011

100

24 %

48

10 %

124

25 %

145

28 %

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(b) Prices

(41)

Since there is no Eurostat data available for the Chinese imports of the product concerned for 2006
(see recital 36), and in view of the very limited cooperation from Chinese exporting producers and
importers in the Community, the average price of imports of the product concerned originating in
the PRC has, for the IP, provisionally been established on the basis of the detailed information
obtained from EC customs authorities mentioned in recital 27. For years 2003-2005, the average
import price has provisionally been established on the basis of Eurostat data, which are in line with
the findings of the investigation. It is noted that, as concerns the Eurostat data for year 2004,
although they seem inaccurate as far as import volumes are concerned (see recital 36), for import
prices the Eurostat data for year 2004 are in line with the findings of the investigation and
comparisons made between price trends of Coke 80+ and Coke 80– during the whole period
considered. Therefore, Eurostat data have provisionally been used for establishing the imports
prices also for year 2004. The Commission, however, will still continue the investigation into
import prices before definitive determinations are made.

(42)

Based on the abovementioned data, the average price of imports of the product concerned originating
in the PRC more than doubled from 2003 (EUR 122/tonne) to 2004 (EUR 275/tonne), but declined
significantly in 2005 (EUR 224/tonne), a trend which continued during the IP (EUR 156/tonne). In
terms of percentages, the prices decreased by 35 % from 2004 to the IP; however, over the whole
period considered (2003 — IP), the prices increased by 27 %.

Average cif Community frontier price of
imports from the PRC (EUR/tonne)

Index (2003 = 100)

2003

122

100

2004

275

225

2005

224

184

IP

156

127

(c) Price undercutting

(43)

For the determination of price undercutting, the price data referring to the IP were analysed. The
relevant sales prices of the Community industry were net prices to independent customers after
deduction of discounts and rebates. Where necessary, these prices were adjusted to an ex-works
level, i.e. excluding freight cost in the Community. The prices of the imports concerned, based on
data available as mentioned in recital 41, were adjusted, where necessary, to cif Community frontier
with an appropriate adjustment for post-importation costs (screening and customs clearance costs), as
incurred by importers in the Community.

(44)

The comparison showed that during the IP, the product concerned originating in the PRC was sold in
the Community at prices which undercut the Community industry's sales prices, when expressed as a
percentage of the latter, by 10,2 %.

5. Situation of the Community industry

(45)

Pursuant to Article 3(5) of the basic Regulation, the Commission examined all relevant economic
factors and indices having a bearing on the state of the Community industry during the period
considered.

(a) Production

(46)

From a level of around 824 000 tonnes in 2003, the Community industry's production increased to
a peak during 2004 of around 1 017 000 tonnes, before decreasing in 2005 and increasing again
slightly during the IP. The significant increase in the production of the Community industry in 2004
can be explained by the low supply on the market due to the low imports from the PRC, and by the
closure of other plants producing Coke 80+ in the Community. Overall, production increased over
the period considered by 18 % to around 971 000 tonnes during the IP.

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Production (tonnes)

Index (2003 = 100)

2003

2004

2005

IP

823 728

1 016 682

953 522

971 137

100

123

116

118

(b) Production capacity and capacity utilisation rates

(47)

The production capacity of the Community industry remained stable at the level of around 1,1
million tonnes throughout the period considered. Capacity utilisation was 75 % in 2003. It increased
to 93 % in 2004, decreased slightly to 87 % in 2005, and picked up again to 89 % in the IP. It
should be noted that this industry is particular in the sense that its production capacity utilisation
rate is rather fixed, since the production process cannot be temporarily stopped.

Production capacity (tonnes)

1 092 472

1 092 472

1 092 472

1 092 472

2003

2004

2005

IP

Index (2003 = 100)

Capacity utilisation

Index (2003 = 100)

(c) Sales volume

100

75 %

100

100

93 %

123

100

87 %

116

100

89 %

118

(48)

Sales volumes by the Community industry of its own production to unrelated customers on the
Community market increased sharply in 2004 (40 %), but levelled down during 2005 (decline of 12
percentage points) and the IP (decline of further 3 percentage points). Overall, the sales volumes
increased by 25 % over the whole period considered,
i.e. by a percentage corresponding to the
growth in the Community consumption.

EC sales volume (tonnes)

658 641

921 347

845 688

825 013

Index (2003 = 100)

100

140

128

125

2003

2004

2005

IP

(d) Market share

(49)

The market share held by the Community industry remained relatively stable over the period
considered, being at around 51 % both in 2003 and during the IP. A peak was experienced in
2004, due to the shortage of Chinese imports. Over the whole period considered, the Community
industry has thus been able to benefit from the growth of the market, i.e. the increased Community
consumption, by maintaining its market share. However, as for the IP, the Community industry lost
around 2,5 % of its market share as compared to year 2005.

Market share of the Community industry

51,2 %

Index (2003 = 100)

100

2003

2004

60,3 %

118

2005

53,8 %

105

IP

51,3 %

100

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(e) Growth

(50)

Between 2003 and the IP, when the Community consumption increased by 25 percentage points, the
volume of sales by the Community industry on the Community market increased in equivalent
amount and its market share thus remained stable. During the same time period, dumped imports
gained around 4 percentage points of market share, corresponding to an increase of around 141 000
tonnes sold on the Community market.

(f) Sales prices in the Community

(51) Average unit prices for Community industry’s sales to unrelated customers increased significantly
from 2003 (EUR 154/tonne) to 2005 (EUR 244/tonne), then took a downward turn during the IP,
but still remained at a level 29 % higher than in 2003 (EUR 199/tonne).

Unit price EC market (EUR/tonne)

Index (2003 = 100)

2003

154

100

2004

192

125

2005

244

158

IP

199

129

(52) Given the level of price undercutting of the imports concerned, these imports were undoubtedly a

factor affecting the Community industry's sales prices.

(g) Stocks

(53)

The level of closing stocks of the Community industry increased considerably during the period
considered. The stocks increased first by 29 % in 2004, by further 41 percentage points in 2005 and
by 88 percentage points during the IP. The level of inventories as compared to the annual production
volume is, however, relatively insignificant (around 3,5 % in 2003 and 7,6 % during the IP). Since the
Community industry's EC sales volume increased overall during the period considered, as described in
recital 48, the increase in closing stocks is explained by the decrease in the Community industry's
export sales during the period considered, as described in recital 70.

Closing stock (tonnes)

28 761

37 007

48 834

74 127

Index (2003 = 100)

100

129

170

258

2003

2004

2005

IP

(h) Investments

(54)

The Community industry's annual investments in the production of the like product remained stable
over the period considered, at the level of around EUR 9 million per annum, except for a temporary
lower level in 2004. The Community industry's investments were for the maintenance and renewal of
existing equipment (partly to meet certain EU environmental legislation requirements) and not for the
purpose of increasing capacity.

Net investments (EUR 1 000)

Index (2003 = 100)

2003

8 951

100

2004

8 139

91

2005

9 059

101

IP

9 070

101

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(i) Profitability, return on investment, cash flow and ability to raise capital

(55) During the period considered, profitability of the Community industry, expressed as a percentage of
net sales,
increased significantly from 2003 (11 %) to 2005 (18 %), but the situation changed
dramatically in the IP, when the Community industry started to make losses (– 1 %). The dramatic
drop in profitability achieved by the Community industry was due to steep decline in sales prices
between 2005 and the IP.

(56)

The return on investments (ROI), expressed as the profit in percent of the net book value of
investments, broadly followed the profitability trend.

(57) With regard to the cash flow generated by the Community industry, a similar negative trend was
found, resulting in a significant overall deterioration of the Community industry's financial situation
during the IP.

(58)

The Community industry did not report any actual difficulties encountered in raising capital.
i.e. that the production process cannot be
However, due to the specific nature of the industry,
stopped without destroying the ovens, closing down some ovens and then later restarting them
would require large additional investments (estimated by the Community industry to be in the region
of EUR 2 million per oven.). The Community industry estimates that the ability to raise additional
capital for such investments would be limited unless there is reliance by the investors on the
profitability of the Coke 80+ market. Consequently, the production capacity of the Community
industry is necessarily rather fixed.

Profitability of EC sales to unrelated
customers (% of net sales)

Index (2003 = 100)

ROI (profit in % of net book value of
investments)

Index (2003 = 100)

2003

11 %

100

5 %

100

2004

17 %

158

23 %

460

2005

18 %

169

17 %

340

Cash flow (1 000 EUR)

17 641

13 633

34 600

Index (2003 = 100)

100

77

196

IP

– 1 %

– 8

– 9 %

– 180

4 669

26

(j) Employment, productivity and wages

(59)

The employment level of the Community industry increased by 13 % from 2003 to the IP. When
compared to the increased production, productivity of
the Community industry's workforce,
measured as output
(tonnes) per person employed per year, remained stable. Average annual
labour costs per employee increased by 9 % over the period considered.

Number of employees

Index (2003 = 100)

2003

680

100

2004

754

111

2005

734

108

IP

767

113

Productivity (tonnes/employee)

1 676

1 954

1 760

1 697

Index (2003 = 100)

Annual labour cost per employee
(1 000 EUR)

Index (2003 = 100)

100

28

100

117

28

100

105

29

105

101

31

109

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(k) Magnitude of the dumping margin

(60) Given the volume, the market share and the price of the dumped imports, the impact on the
the actual dumping margin cannot be considered

the magnitude of

Community industry of
negligible.

(61) As indicated in recital 3, the previous anti-dumping measures were suspended in March 2004, since
given the temporary change in market conditions it was considered that the injury linked to the
imports of the product concerned originating in the PRC was unlikely to resume. The period for
which the evolution of volumes and prices of the product concerned was then investigated was from
1 October 2002 to 30 September 2003. The suspension was extended until December 2005, when
the measures expired. In light of this, it is considered that past dumping did not influence signifi-
cantly the situation of the Community industry during the period considered in this investigation.

6. Conclusion on injury

(62)

Between 2003 and the IP, the volume of the dumped imports of the product concerned originating
in the PRC increased by 45 % and their share of the Community market increased by around 4
percentage points. The average prices of dumped imports were lower than those of the Community
industry during the period considered, except for the exceptional year 2004. Moreover, during the IP,
the prices of the imports from the country concerned significantly undercut those of the Community
industry. Indeed, a 10,2 % undercutting margin was found.

(63) Most injury indicators developed positively for the Community industry up to 2005 (even though
some levelling down from the exceptional year 2004 was evidenced already in 2005), but took a
downward turn during the IP. This is the case especially regarding the financial indicators of the
Community industry, in particular, the profitability: the profit margins of 17-18 % attained during
2004-2005 dropped dramatically during the IP, and the Community industry ended up making a
loss. Also the return on investments and cash flow developed negatively. This dramatic drop was due
to a steep decline in sales prices between 2005 and the IP, when the average sales prices of the like
product produced by the Community industry decreased by 19 %, to the detriment of its profitability.

(64) Also, many other injury indicators developed negatively between 2005 and the IP, albeit

less
markedly than the profitability: sales volume of the Community industry decreased by around
3 %, the Community industry lost 2,5 % of its market share,
its average sales prices declined by
19 %. On the other hand, the production volume, capacity utilisation rate and employment showed a
slightly positive development from 2005 to the IP.

(65)

In the light of the foregoing, it is provisionally concluded that the Community industry has suffered
material injury within the meaning of Article 3(5) of the basic Regulation.

1. Introduction

E. CAUSATION

(66)

In accordance with Article 3(6) and (7) of the basic Regulation, the Commission has examined
whether dumped imports of the product concerned originating in the PRC have caused injury to
the Community industry to a degree that may be considered material. Known factors other than the
dumped imports, which could at the same time have injured the Community industry, were also
examined to ensure that possible injury caused by these other factors was not attributed to the
dumped imports.

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(67)

(68)

(69)

2. Effect of the dumped imports

Between 2003 and the IP, the volume of the imports of the product concerned originating in the
PRC increased by 45 % and their share of the Community market was at significant levels during the
whole period considered, i.e. constantly representing 24 % market share or more. During the IP, this
market share was 28 %. The average price of these imports increased by 46 % overall between 2003
and the IP, but prices were generally lower than those of the Community industry during the period
considered, expect for the exceptional year of 2004. In the IP, the average prices of imports from the
PRC undercut the average Community industry prices by 10,2 %. The Community industry, in order
to ensure its presence on its home market and due to the low market prices set by imports from the
PRC, felt obliged to decrease its sales prices by 29 % during the IP. Nevertheless, it lost 2,5 % of its
market share from 2005 to the IP.

Therefore, the effect of this unfair pricing behaviour of the dumped imports from the PRC was that
the Community industry's prices were suppressed and that they could no longer cover the high cost
of raw materials. This was confirmed by the plummeting profitability of the Community industry
during the IP.

Based on the above, it is provisionally concluded that the low-priced imports from the PRC which
significantly undercut the prices of the Community industry during the IP and which also increased
in volume have had a determining role in the deterioration of the situation of the Community
industry, which is reflected in the sharp decrease of profitability and deterioration of other
financial indicators during the IP, as well as in loss of market share.

3. Effect of other factors

(a) Export performance of the Community industry

(70) As can be seen from the table below, the volume of export sales of Coke 80+ by the Community
industry decreased by 36 % during the period considered. However, during the IP, when the profit-
ability of the Community industry plummeted, as explained above, the export sales picked up
considerably. In addition, the level of export sales is not very important in the context of the
Community industry's overall sales, representing only 10 % of total sales in the IP. It is therefore
considered that the drop in these exports did not have a significant impact on the material injury
suffered by the Community industry.

Export sales volume (tonnes)

140 511

103 409

56 453

90 402

Index (2003 = 100)

100

74

40

64

2003

2004

2005

IP

(b) Imports from other third countries

(71) According to the best facts available mentioned in recital 38, there were no imports from third
countries other than the PRC during the period considered. Therefore, it is concluded that imports
into the EC originating in other third countries did not contribute to the material injury suffered by
the Community industry.

(c) Competition from other Community producers

(72) As indicated in recital 35, the two other Community producers did not cooperate with the inves-
tigation. These two producers, however, provided the Commission with certain information
concerning their overall production and sales volumes, which was cross-checked against information
obtained from the cooperating Community producers. No information was available concerning the
sales prices of the other Community producers.

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19.9.2007

(73) On the basis of the available data, it is estimated that the sales volume of the two other Community
producers in the Community was in the range of 280 000 and 380 000 tonnes during the IP (1).
Similarly, their corresponding market share was around 20 %. As established above, the Community
industry's market share remained relatively stable over the whole period considered, whereas the
Chinese imports gained market share over the same period by 4 percentage points. Therefore, the
Chinese imports must logically have gained volumes mainly from other Community producers when
considering the whole period. However, the 3 percentage points gain of market share obtained by the
Chinese imports during the IP corresponds to a loss of market share by the Community industry of a
similar magnitude (2,5 percentage points).

(74) Given the above, and in the absence of information to the contrary, it is concluded that the other

Community producers have not contributed to the injury suffered by the Community industry.

(d) Prices of raw materials

(75)

Some interested parties claimed that the injury suffered by the Community industry was attributable
to the increases in the cost of raw materials. In this respect, it was found that the basic raw material
used in the production of Coke 80+, coking coal, represents around 50 % of the cost of manufac-
turing of Coke 80+. The coking coal used by the Community industry is sourced from the USA,
except for one Community industry producer, which uses locally sourced coking coal. As regards the
prices of the coking coal used by the Community industry, the investigation showed that these
increased significantly and constantly over the period considered, as illustrated in the table below:

Average coking coal cost (EUR/tonne of
Coke 80+ produced)

Index (2003 = 100)

2003

77

100

2004

97

125

2005

126

163

IP

127

164

(76)

it

In this respect,
the increase in raw
is noted that
material prices between 2003 and 2005 could be
passed on to the sales prices of
the Community
increased
industry, which, as mentioned in recital 51,
during the same period, coinciding with the higher
profit margins of
the Community industry. On the
contrary, during the IP, despite the only 1 percentage
the raw material as
point
compared to year 2005, the financial situation of the
Community industry deteriorated dramatically, since its
sales prices decreased significantly.

increase in the price of

a considerable decrease in the sales prices of
the
Community industry, which in turn coincided with a
sharp drop in the Community industry’s profitability,
return on investments and cash flow. In addition, the
increased Chinese imports during the IP led to a gain
in market
(3 percentage points), which is
reflected in a loss of Community industry's market
share by a similar percentage (2,5 percentage points).

share

(77)

Consequently, it is considered that the prices of the raw
materials did not contribute to the material
injury
suffered by the Community industry.

(79) On the other hand, the examination of other factors
which could have injured the Community industry
revealed that none of these could have had a significant
negative impact.

4. Conclusion on causation

(78)

In conclusion, the above analysis has demonstrated that
imports from the PRC provoked a substantial price
depression on the Community market during the IP,
when the imports from the PRC severely undercut the
Community industry prices. This price depression led to

(80)

(1) For confidentiality reasons, given that the analysis concerns only two

companies, only ranges are given.

Based on the above analysis, which has properly distin-
guished and separated the effects of all known factors on
the Community industry from the
the situation of
injurious effects of
is provi-
sionally concluded that the dumped imports originating
in the country concerned have caused material injury to
the Community industry within the meaning of Article
3(6) of the basic Regulation.

the dumped imports,

it

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F. COMMUNITY INTEREST

(81)

on

and

injury

despite

dumping,

examined whether,

the
The Commission
conclusions
causation,
compelling reasons exist which would lead to the
conclusion that it is not in the Community interest to
adopt measures in this particular case. For this purpose,
and pursuant to Article 21(1) of the basic Regulation, the
Commission considered the likely impact of measures for
all parties concerned, as well as the likely consequences
of not taking measures. For reasons of confidentiality,
instead of actual
figures, data relating to individual
importers or users are given below in ranges.

1. Interest of the Community industry

(82) As indicated in recital 35, the Community industry is
composed of five companies, with production facilities
in the Czech Republic, Italy and Spain, and it employs
around 750 persons directly involved in the production,
sales and administration of the like product. If measures
are imposed, it is expected that the price depression on
the Community market will come to an end and that
to
sales prices of
recover,
financial
a
situation of the Community industry will improve.

the Community industry will start
consequence of which the

as

during the IP. The importer/trader purchases Coke 80+
not only from the PRC but also from other sources,
including the Community industry. The average profit
margin attained by the importer in question, on its
trading of Coke 80+, is around 5-10 %.

(87)

importer has

in the imports of

The cooperating importer is not in favour of the impo-
sition of measures. However, given the very strong
position this
the
product concerned,
it would likely be able to pass on
most,
if not all, additional costs caused by the anti-
dumping measures to users. In this respect, the impo-
sition of an anti-dumping duty on imports from the PRC,
as explained in recital 82, will most likely lead to an
upwards correction of market prices. Therefore,
it can
be expected that
importers which buy the product
from the PRC will be able to pass on these duty costs
to the final customer. In any case, in view of the rela-
tively limited weight of this product in the importer's
activities, and the profit margin currently attained with
regard to its trading of Coke 80+, it is expected that a
duty, as provisionally established, would not affect the
financial
to a
significant extent.

this economic operator

situation of

(83) On the other hand, should anti-dumping measures not
it is likely that the negative trend in the
be imposed,
development of the Community industry's financial indi-
cators, and notably its profitability, will continue. The
Community industry will
then be likely to continue
losing market share, as it will no longer be able to
follow the market prices set by dumped imports from
the PRC. This will likely lead to cuts in production and
investments, closure of certain production capacities and
job reductions in the Community.

(84)

In conclusion, the imposition of anti-dumping measures
would allow the Community industry to recover from
the effects of injurious dumping found.

3. Interest of users

(88) As indicated in recital 9, questionnaire replies and other
submissions were received from a large number of users
and their associations. The Community user industry is
comprised of two major sectors, namely producers of
stone wool and foundries.

(a) Stone-wool producers

(89) Users’ questionnaires were submitted by subsidiaries of
Rockwool International A/S (Rockwool), the major stone
wool producer group in the Community. Rockwool uses
Coke 80+ in stone wool production as a combustion
agent to melt stone. Stone wool is used mainly as insu-
lation material. The profit margin attained by the whole
Rockwool group during the IP was above 10 %.

2. Interest of unrelated importers/traders in the

Community

(85) As

indicated in recital 9, only one importer/trader
submitted a questionnaire reply. On the basis of infor-
this
mation mentioned in recital 36, during the IP,
company accounted for almost all Community imports
of the product concerned.

(90)

(91)

(86) On the basis of information submitted by the importer
concerned,
the proportion of
it was established that
imports of the product concerned from the PRC repre-
turnover
sented around 20 % of

the company's total

It was found that Rockwool represented around 13 % of
the total consumption of Coke 80+ in the Community
during the IP and around 18 % of
imports of
Chinese Coke 80+.

total

total of

employing

in the
company has 15 production plants
The
Community,
around 6 600
a
persons. Chinese Coke 80+ is used in its plants in
three EU Member States, employing altogether 2 400
employees, while the rest are using EC Coke 80+.
During the IP, Coke 80+ was
found to represent
between 4 % and 8 % of the total costs of production
of
that used Chinese
companies
Coke 80+.

those Rockwool

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(92)

(93)

(b) Foundries

Foundries are estimated to represent close to 80 % of the
total consumption of coke 80+ in the Community. In the
foundry industry, Coke 80+ is used as a combustion
ferrous
agent
castings, which are used as input in the production of
parts for the automotive, engineering, machinery and
public utilities sectors.

the production of

scrap for

to melt

The possible impact of any anti-dumping measures on
foundries was estimated based on users’ questionnaire
responses received from Community foundries repre-
senting around 18 % of
total consumption of Coke
80+ in the Community and also around 18 % of total
imports of the product concerned from the PRC during
the IP. Substantiated claims were also received from the
CAEF and from the German National Foundry Asso-
ciation.

(94)

Coke 80+ was found to represent during the IP 3 %-6 %
of the total cost of production of the foundries included
in the analysis. This differs from the estimate made by
the CAEF that the coke price might have a share in the
production cost of castings of up to 15 %.

(95)

(96)

(c) Arguments presented by users

The first main argument put forward by the users against
the imposition of measures is that the demand for coke
in the Community cannot be met by the European
producers alone. This has been acknowledged also by
the Community industry, and it is also clearly reflected
in the fact that the EC consumption during the IP was at
1,6 million tonnes (and which according to projections
of users is likely to increase in the coming years),
whereas the total Community production, based on
information obtained
from both the Community
industry producers and the other Community producers
(see recital 72) was at
time around 1,3 million
that
tonnes. Given that the Community industry operates at
a high capacity utilisation rate, it is evident that imports
are needed to meet the user demand, even if all the EC
production were consumed within the Community.

is

to remedy unfair

it should be noted that the purpose of
In this regard,
anti-dumping measures
trading
practices having an injurious effect on the Community
industry and re-establish a situation of effective compe-
tition on the Community market, not to stop imports.
competitive
As
in the
concerns
Community market,
it should be noted that although
the effect of the imposition of anti-dumping measures
would probably be that the price levels of the exports
originating in the PRC in the Community would increase,

environment

the

the measures as proposed are not such as to close the
Community market
and
therefore will allow the continued presence of Chinese
products in the market.

to the Chinese

exporters

(97) Moreover, users have argued that

their

competitiveness

the imposition of
measures would result in an increase in purchase costs,
and thus
which could affect
in the
their manufacturing operations
compromise
Community.
the situation
It was also argued that
would be even more dismal for those users that cannot
switch from Chinese Coke 80+ to European Coke 80+,
since they would have no other option than bear the
additional burden of an anti-dumping duty.

(98)

(99)

(100)

The investigation showed that Coke 80+ represents
between 4 % and 8 % of the total costs of stone wool
production and 3-6 % of the total costs of foundries.
Therefore, even if the importers were to pass on the
cost of duty fully to the users, an anti-dumping duty
as proposed would cause a maximum hypothetical
increase in the cost of production of both Rockwool
and of foundries of around 1 %.

of

or

for

the

eventual

disappearance

the Community users,

Furthermore, it should be noted that, in the event of a
reduction
the
Community industry of Coke 80+, the available sources
of supply would also be reduced with the consequent
negative effect
for which
Coke 80+ is of strategic importance. In such an event,
the supply of Coke 80+ in the Community could become
entirely dependent on Chinese production, which would
then enjoy a dominant position in the Community
the
market.
considered that
it
existence of alternative sources of supply is vital
for
guaranteeing proper access to raw materials.

In this

respect,

is

Information available to the Commission indicates that
shortages of supply of Chinese Coke 80+ for export are
currently taking place for reasons unrelated to the anti-
instead based on measures
dumping proceeding, but
adopted by the Chinese Government
to curb exports
of, inter alia, the product concerned. The export tax on
Coke 80+ has been increased from 5 % to 15 % as of 1
June 2007. The reduction or even disappearance of the
Community industry could exacerbate such problems
and create supply shortage to the user industry. On the
other hand, the removal of the unfair advantages gained
by the dumping practices is designed to prevent
the
further decline of
the Community industry and thus
help to maintain the availability of a wide choice of
supply sources and even strengthen competition among
existing producers.

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(d) Conclusion

the

any

total

(101) The evidence available to the Commission at this stage
indicates that Coke 80+ represents only a marginal
proportion of
costs of both stone-wool
producers and foundries and that therefore the impact
of
costs of
anti-dumping measure on their
production is likely to be limited. In addition, it is not
excluded that importers would carry part of the cost
the
increase or that users could pass part or all of
increase in costs to their final customers. Therefore,
it
is
impact of an anti-dumping
measure such as the one proposed is not likely to signif-
icantly affect the economic situation of users. In view of
the limited impact of an anti-dumping measure on the
costs of users, it is unlikely that any closures would take
imposition of measures.
place as a result of
Therefore,
the user
industry is not likely to be significant.

impact on the employment of

concluded that

the

the

4. Conclusion on Community interest

(102) The effects of the imposition of measures are expected to
enable the Community industry to improve its profit-
ability, with consequent beneficial effects on the compe-
titive conditions on the Community market. In view of
the unfavourable financial situation of the Community
there
industry,
in the absence of
the Community industry may close down
measures,
production facilities and lay off workforce.
In that
the Community market would become more
event,
dependent on imports.

is a risk that,

(103) As for importers, whilst negative effects could result in
the form of price increases, the extent of these may be
reduced by decreasing margins or by passing part of the
increase on to the user industry.

(104) As regards users, an anti-dumping duty as proposed
would have a very limited effect on their cost of
production.

provisional measures should be imposed in order to
prevent further injury to the Community industry by
the dumped imports.

1. Injury elimination level

(107) The level of

the provisional anti-dumping measures
should be sufficient
to eliminate the injury to the
Community industry caused by the dumped imports,
without exceeding the dumping margin found. When
calculating the amount of duty necessary to remove the
effects of the injurious dumping, it was considered that
any measures should allow the Community industry to
cover its costs of production and to obtain overall a
profit before tax that could be reasonably achieved
in the
under normal conditions of competition,
absence of dumped imports. The pre-tax profit margin
used provisionally for this calculation was 15,3 % of
turnover, corresponding to the average profit margin
attained by the Community industry during 2003-2005.

i.e.

(108) The necessary price increase was then determined on the
basis of a comparison of average import price, as estab-
lished for the price undercutting calculations (see recital
43), with the non-injurious price of the like product sold
by the Community industry on the Community market.
The non-injurious price has been obtained by adjusting
the sales price of the Community industry in order to
reflect the above mentioned profit margin. The difference
resulting from this comparison, when expressed as a
percentage of the total cif import value, amounted to
35,7 %, i.e. less than the dumping margin found.

(109) Given that no exporting producer

from the PRC
requested individual
treatment, a single country-wide
injury elimination level was calculated for all exporters
in the PRC.

(105)

In light of the above, it is provisionally concluded that no
compelling reasons exist for not imposing measures in
the present case and that the application of measures
would be in the interest of the Community.

2. Provisional measures

(110)

In the light of the foregoing and pursuant to Article 7(2)
of the basic Regulation, it is considered that a provisional
anti-dumping duty should be imposed at the level of the
lowest of the dumping and injury margins found,
in
accordance with the lesser duty rule.

G. PROPOSAL

FOR PROVISIONAL ANTI-DUMPING

MEASURES

(106)

In view of
dumping,

the conclusions reached with regard to
injury, causation and Community interest,

(111) On the basis of the above, the provisional anti-dumping

duty should therefore amount to 35,7 %.

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3. Form of the measures

it

to remove the effects of
the IP, significant

(112) Anti-dumping measures may take different forms, while
the
the purpose remains
injurious dumping. After
increases
have been observed in the prices of Chinese imports of
the product concerned;
indeed beyond injurious levels.
Under these circumstances and given that this market
has been characterised by high price volatility in the
is considered that a duty in the form of a
past,
minimum import price (MIP)
is the most appropriate
form of measures in this case. A MIP will ensure that
the product concerned is not sold at injurious prices,
while at
the same time it will not unduly increase
prices at moments when prices are at sufficiently high
levels. A MIP can be expected to bring stability to the
market because it will ensure an adequate price level for
the Community industry, allowing it to operate under
viable economic conditions, and, at the same time,
it
will constitute a point of reference for importers and
users to plan their economic activities sufficiently in
advance.

(113) The amount of the minimum import price results from
the application of the injury margin to the export prices
used in the calculation of the injury elimination level
during the IP. The minimum import price thus calculated
amounts to EUR 227 per tonne.

4. Implementation

(114) As explained in recital 14, Coke 80+ is imported under
the same customs nomenclature as Coke 80–. These two
products are only distinguished by their size, but are
destined for two different industries and are primarily
manufactured by different producers in the Community.
This Regulation is meant only to regulate the import of
Coke 80+ entered
circulation in the
Community. Since imports of Coke 80– may contain a
certain percentage of Coke 80+, there is a need to ensure
that imposition of the duty of Coke 80+ does not lead to
an undue application of the duties to Coke 80– in case
of mixed shipments.

into

free

in pieces with smaller diameters, unless it

(115) Therefore, the anti-dumping duty should apply to coke of
in pieces with a diameter of more than 80 mm,
coal
when shipped in mixtures containing both coke of coal
in pieces with a diameter of more than 80 mm and coke
is
of coal
determined that the quantity of coke of coal
in pieces
with a diameter of more than 80 mm does not constitute
more than 20 % of dry net weight of
the mixed
shipment. The quantity of coke of coal in pieces with a
diameter of more than 80 mm contained in mixtures
in
may be determined on the basis of
accordance with Articles 68 to 70 of Council Regulation
(EEC) No 2913/92 (1).
In cases where the quantity of

samples

(1) OJ L 302, 19.10.1992, p. 1. Regulation as last amended by Regu-

lation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

in pieces with a diameter of more than
coke of coal
80 mm is determined on the basis of samples,
the
sample shall be selected in accordance with the norm
ISO 18238:2006.

(116) However, should it be found that mixed coke of coal
(Coke 80+ and Coke 80-) landed and entered into free
circulation into the Community under CN code
ex 2704 00 19, and subsequently screened and sold as
Coke 80+,
the product
concerned and will therefore be subject to the provisions
of this Regulation.

considered as

it will be

(117)

5. Final provision

the

It is recognised that, before arriving at a definitive deter-
mination, a number of elements such as import volumes
and prices, in particular for the year 2004, the effects on
recent
the Community and world markets of
decisions of the Chinese government in respect of coke
exports, as well as the feasibility of an indexation system
to be applied to MIP will
require further analysis.
However,
the information collected and examined up
the investigation clearly shows the
to this stage of
existence of dumping, injury, a causal link between the
dumping and injury and the fact that the imposition of
measures would not be against the Community interest.
It is therefore concluded that the need to obtain more
information and to deepen the analysis in respect of the
abovementioned elements before a definitive determi-
nation is made in no way constitutes an impediment
to the imposition of provisional measures.

(118)

In the interest of sound administration, a period should
be fixed within which the interested parties which made
themselves known within the time limit specified in the
initiation may make their views known in
notice of
writing and request a hearing. Furthermore,
it should
be stated that the findings concerning the imposition
of duties made for the purposes of this Regulation are
provisional and may have to be reconsidered for the
purposes of any definitive duty,

HAS ADOPTED THIS REGULATION:

Article 1

A provisional anti-dumping duty is hereby imposed on
1.
imports of coke of coal
in pieces larger than 80 mm in
maximum diameter (Coke 80+) originating in the People’s
Republic of China and falling within CN code ex 2704 00 19
(TARIC code 2704 00 19 10). The diameter of the pieces shall
be determined in accordance with the norm ISO 728:1995.

19.9.2007

EN

Official Journal of the European Union

L 244/19

The

amount of

the provisional

anti-dumping duty
2.
applicable for products described in paragraph 1 shall be the
difference between the minimum import price of EUR 227 per
tonne and the net,
free-at-Community-frontier price, before
in all cases where the latter is less than the minimum
duty,
import price.

3.
The anti-dumping duty shall also apply to coke of coal in
pieces with a diameter of more than 80 mm when shipped in
mixtures containing both coke of coal in pieces with a diameter
of more than 80 mm and coke of coal in pieces with smaller
diameters unless it is determined that the quantity of coke of
coal in pieces with a diameter of more than 80 mm does not
constitute more than 20 % of dry net weight of the mixed
shipment. The quantity of coke of coal
in pieces with a
diameter of more than 80 mm contained in mixtures may be
determined on the basis of samples in accordance with Articles
68 to 70 of Council Regulation (EEC) No 2913/92. In cases
where the quantity of coke of coal in pieces with a diameter of
more than 80 mm is determined on the basis of samples,
the samples shall be selected in accordance with the norm
ISO 18238:2006.

4.
In cases where goods have been damaged before entry
into free circulation and, therefore, the price actually paid or
payable is apportioned for the determination of the customs
to Article 145 of Commission Regulation
value pursuant
(EEC) No 2454/93 (1),
the minimum import price set out
above shall be reduced by a percentage which corresponds to
the apportioning of the price actually paid or payable. The duty
payable will then be equal to the difference between the reduced
free-at-
and
minimum import price
Community-frontier price, before customs clearance.

reduced net,

the

The release for free circulation in the Community of the
5.
product referred to in paragraph 1 shall be subject
to the
provision of a security equivalent to the amount of the provi-
sional duty.

Unless otherwise

6.
concerning customs duties shall apply.

specified,

the provisions

in force

Article 2

Without prejudice to Article 20 of Council Regulation (EC) No
384/96, interested parties may request disclosure of the essential
facts and considerations on the basis of which this regulation
was adopted, make their views known in writing and apply to
be heard orally by the Commission within one month of the
date of entry into force of this regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the
parties concerned may comment on the application of this
Regulation within one month of the date of its entry into force.

Article 3

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

Article 1 of this Regulation shall apply for a period of six
months.

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

Done at Brussels, 18 September 2007.

For the Commission

Peter MANDELSON
Member of the Commission

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regu-

lation (EC) No 214/2007 (OJ L 62, 1.3.2007, p. 6).