Notice of initiation of a partial interim review of the countervailing measures applicable to imports of sulphanilic acid originating in India
Date: 2007-09-29
Institutions: European Commission
Subjects: India, chemical product, countervailing charge, export subsidy, import, originating product

29.9.2007

EN

Official Journal of the European Union

C 229/9

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of a partial interim review of the countervailing measures applicable to imports
of sulphanilic acid originating in India

(2007/C 229/06)

The Commission has decided on its own initiative to initiate a
partial interim review limited to the level of subsidization for
certain Indian exporting producers pursuant to Article 19 of
Council Regulation (EC) No 2026/97 of 6 October 1997 on
from countries not
protection against
subsidised imports
members
basic
(‘the
of
Regulation’) (1).

Community

European

the

1. Product

The product under review is sulphanilic acid originating in India
(‘the product concerned’), currently classifiable within CN code
ex 2921 42 10. This CN code is given only for information.

2. Existing measures

The measures currently in force are a definitive countervailing
duty imposed by Council Regulation (EC) No 1338/2002 (2) on
imports of sulphanilic acid originating in India.

These measures are currently subject to an expiry review (3).

3. Grounds for the review

There is sufficient prima facie evidence available to the Commis-
sion that the circumstances with regard to subsidisation on the
basis of which measures were established have changed and that
these changes are of a lasting nature.

Indeed, the benefits from two subsidy schemes (the Duty Entitle-
ment Passbook Scheme (‘DEPBS’) and the Income Tax Exemp-
tion under Section 80 HHC of the Income Tax Act (‘ITES’)
appear to have significantly decreased. This is due to the modifi-
cation of the relevant basic Indian laws on which these schemes
are based.

(1) OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Regulation

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

(2) OJ L 196, 25.7.2002, p. 1. Regulation as last amended by Regulation

(EC) No 123/2006 (OJ L 22, 26.1.2006, p. 5).

(3) OJ C 171, 24.7.2007, p. 14.

As a consequence, the level of subsidisation is likely to have
decreased for those companies whose measures are based either
fully or partly on benefits obtained from one or both of the
aforesaid two schemes in the investigation period used in the
investigation that led to the determination of the level of the
existing measures.

This indicates that the measures mentioned in the preceding
point on imports of the product under review at their present
level may no longer be necessary to counteract the current
subsidisation. Therefore, the measures should be reviewed for
the companies in question.

These companies include those listed in the Annex and any
other producer of the product under review that makes itself
known to the Commission within the deadline set in point 5(i)
below and demonstrates within the same time limit that (1) it
enjoyed benefits
the two schemes
from one or both of
mentioned above during the investigation period used in the
investigation that led to the determination of the level of the
measure to which they are subject (1 July 2000-30 June 2001),
and that (2) given the structural changes in these schemes as
mentioned above, the benefit accruing from these schemes has
decreased.

In addition, if the review investigation shows or any interested
party provides sufficient prima facie evidence within the deadline
set in point 5(i) below that exporters of the product concerned
that are concerned by the current review are benefiting from
subsidy schemes other than those mentioned above, an investi-
gation of these schemes may also be made within the frame-
work of the current review.

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EN

Official Journal of the European Union

29.9.2007

Insofar as the modified subsidy margins resulting from the
current investigation could have an impact on the measures
applicable for cooperating companies in the investigation that
set the level of the measures and/or on the residual measure
applicable for all other companies, these rates may be revised
accordingly.

should be noted that,

It
those companies which are
subject to both anti-dumping and countervailing measures, the
anti-dumping measure may be adjusted accordingly should there
be a change in the countervailing measure.

for

4. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an ex
officio partial interim review, the Commission hereby initiates a
review in accordance with Article 19 of the basic Regulation.

The investigation will assess the need for the continuation,
removal or amendment of the existing measures in respect of
those companies having benefited from one or both subsidy
schemes mentioned above and, for those companies, in respect
of other schemes where sufficient evidence is provided as
mentioned in point 3, paragraph 6 above. The investigation will
also assess the need, depending on the findings of the current
investigation, to revise the measures applicable to other compa-
nies that cooperated in the investigation that set the level of the
existing measures and/or the residual measure applicable for all
other companies.

(a) Questionnaires

5. Time limits

(i) For parties to make themselves known, to submit questionnaire

replies and any other information

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, in particular the authori-
ties of the exporting country concerned, or any other infor-
mation,
including that mentioned in point 3, sixth para-
graph, 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 Regu-
lation depends on the party's making itself known within
the aforementioned period.

(ii) Hearings

interested parties may also apply to be heard by the

All
Commission within the same 40-day time limit.

6. Written submissions, questionnaire replies and cor-

respondence

All submissions and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by interested
parties on a confidential basis shall be labelled as ‘Limited’ (1)
and, in accordance with Article 29(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘FOR INSPECTION BY INTERESTED PARTIES’.

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the companies listed in the annex and to the authorities of
the exporting country concerned. The questionnaire reply
and supporting evidence should reach the Commission
within the time limit set in point 5(i).

Commission address for correspondence:

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

(b) Collection of information and holding of hearings

7. Non-cooperation

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence must reach the Commission within the
time limit set in point 5(i).

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 5(ii).

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

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the
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 29 of the basic Regulation and Article 12 of the
WTO Agreement on Subsidies and Countervailing Measures.

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Official Journal of the European Union

C 229/11

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made,
in accordance with Article 28 of the
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially, and use of facts
available is made, the result may be less favourable to that party
than if it had cooperated.

9. Other interim reviews under Article 19 of the basic

Regulation

The scope of the current review is as set out in point 4 above.
Any party wishing to claim a review on the basis of other
grounds may do so in accordance with the provisions of
Article 19 of the basic Regulation.

8. Schedule of the investigation

The investigation shall be concluded, according to Article 22(1)
of the basic Regulation, within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

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 of 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).

Kokan Synthetics & Chemicals Pvt. Ltd, 14 Guruprasad, Gokhale Road (N), Dadar (W), Mumbai 400 028, India.

ANNEX

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