Notice of initiation of an anti-dumping proceeding concerning imports of stainless steel cold rolled flat products originating in the People's Republic of China, the Republic of Korea and Taiwan
Date: 2008-02-01
Institutions: European Commission
Subjects: China, South Korea, Taiwan, anti-dumping legislation, steel

1.2.2008

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Official Journal of the European Union

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PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of an anti-dumping proceeding concerning imports of stainless steel cold rolled
flat products originating in the People's Republic of China, the Republic of Korea and Taiwan

(2008/C 29/09)

the European Community (1)

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
members of
(‘the basic Regu-
lation’), alleging that imports of stainless steel cold rolled flat
products, originating in the People's Republic of China, the
Republic of Korea and Taiwan (‘the countries concerned’), are
being dumped and are thereby causing material injury to the
Community industry.

1. Complaint

The complaint was lodged on 21 December 2007 by EUROFER
(‘the complainant’) on behalf of producers representing a major
proportion,
in this case more than 25 %, of the total Com-
munity production of stainless steel cold rolled flat products.

thus calculated, with the export prices of the product concerned
when sold for export to the Community.

The allegation of dumping in respect of the Republic of Korea is
based on a comparison of normal value established on the basis
the product
of domestic prices, with the export prices of
concerned when sold for export to the Community.

The allegation of dumping in respect of Taiwan is based on a
comparison of a constructed normal value with the export
prices of the product concerned when sold for export to the
Community.

On this basis, the dumping margins calculated are significant for
all exporting countries concerned.

2. Product

not

than

steel,

further worked

The product allegedly being dumped is flat-rolled products of
stainless
cold-rolled
(cold-reduced), originating in the People's Republic of China, the
Republic of Korea and Taiwan (‘the product concerned’),
normally declared within CN codes 7219 31 00, 7219 32 10,
7219 34 10,
7219 32 90,
7219 34 90,
7220 20 21,
7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81 and
7220 20 89. These CN codes are only given for information.

7219 33 10,
7219 35 10,

7219 33 90,
7219 35 90,

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,

(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).

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China, the
Republic of Korea and Taiwan 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 market share held and the level of prices
charged by the Community industry, resulting in substantial
the profitability
adverse effects on the overall performance,
the Community
situation and the employment situation of
industry.

5. Procedure

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.

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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, the Republic of
Korea and Taiwan is being dumped and whether this dumping
has caused injury.

(a) Sampling

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.

(i) Sampling

for

expor ters/producers

People's Republic of China,
Korea and Taiwan

the
the Republic of

in

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
format 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 manufactured by
the company and sold for export to the Community
during the period 1 January 2007 to 31 December
2007,

— the turnover in local currency and the volume in
tonnes of the product concerned manufactured by
the company and sold on the domestic market
during the period 1 January 2007 to 31 December
2007,

— 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 (1)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

By providing the above information,
agrees

to its possible inclusion in the sample.

the company
If

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July
1993 laying down provisions for the implementation of Council Regu-
lation (EEC) No 2913/92 establishing the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

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

its response.

If

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

Since a company cannot be sure to be chosen for the
sample, exporters/producers that wish to claim an indi-
vidual margin (2) are advised to request a questionnaire
within the deadline foreseen in point 6(a)(i) of
this
notice, and file it within the deadline foreseen in point
6(a)(ii) first paragraph of this notice. However, attention
is drawn to the last sentence of point 5.1(b) of this
notice.

(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 January 2007 to 31 December 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 January 2007 to 31 December
2007 of the imported product concerned origin-
ating in the People's Republic of China, the Republic
of Korea and Taiwan,

(2) 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.

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

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

the company
By providing the above information,
If
agrees
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 or inclusion in the sample, it will be deemed
to not have co-operated in the investigation. The conse-
quences of non-cooperation are set out
in point 8
below.

investigation of

its response.

If

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,

(iii) Sampling for Community producers

In view of the large number of Community producers
supporting the complaint, the Commission intends to
investigate
injury to the Community industry by
applying sampling.

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
Community producers or representative acting on their
behalf are hereby requested to provide the following
information on their company or companies within the
time limit set in point 6(b)(i) and in the format indi-
cated in point 7:

— 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,
If
agrees
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 or inclusion in the sample, it will be deemed
to not have co-operated in the investigation. The conse-
quences of non-cooperation are set out
in point 8
below.

investigation of

its response.

If

(iv) Final selection of the samples

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).

samples

The Commission intends to make the final selection of
the
the parties
concerned that have expressed their willingness to be
included in the sample.

after having

consulted

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6(b)(iii)
and must cooperate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

If
the
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.

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

numbers and contact person,

(b) Questionnaires

— the total turnover in euro of the company during
the period 1 January 2007 to 31 December 2007,

— the precise activities of the company with regard to

the product concerned,

— the value in euro of sales of the product concerned
made in the Community market during the period
1 January 2007 to 31 December 2007,

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 January 2007 to 31 December 2007,

— the volume in tonnes of

the
product concerned during the period 1 January
2007 to 31 December 2007,

the production of

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

companies (1)
selling of the product concerned,

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

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

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires to
the sampled Community industry and to any association of
producers in the Community, to the sampled exporters/pro-
ducers in the People's Republic of China, the Republic of
Korea and Taiwan to any association of exporters/producers,
to the sampled importers, to any association of importers
named in the complaint, to known users and to the authori-
ties of the exporting countries concerned.

the basic Regulation, must

Exporters/producers in the People's Republic of China, the
Republic of Korea and Taiwan claiming an individual
margin, with a view to the application of Articles 17(3)
submit a
and/or 9(6) of
in
set
completed questionnaire within the time limit
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-
to calculate an individual margin for
theless decide not
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.

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(c) Collection of information and holding of hearings

6. Time limits

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

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii).

(a) General time limits

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

claim for ms

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.

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose Mexico 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 treatment

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
i.e. that they
operate under market economy conditions,
meet
the
the criteria laid down in Article 2(7)(c) of
basic Regulation, normal value will be determined in
the basic Regulation.
accordance with Article 2(7)(b) of
Exporters/producers 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/producers in the People's Republic of China who
have either been included in the sample or 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.

(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. All expor-
ters/producers concerned by this proceeding, who wish
to apply for individual examination in accordance with
Article 17(3) of the basic Regulation, must also submit
a questionnaire reply 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

Journal of

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

(ii) All other information relevant for the selection of the
reach the
sample as referred to in 5.1(a)(iv) must
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

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(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.

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

Parties to the investigation may wish to comment on
the appropriateness of Mexico 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.

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 favor-
able to that party than if it had cooperated.

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

status and/or for individual treatment

9. Schedule of the investigation

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’.

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

It is noted 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 (2).

11. Hearing Officer

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.

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits, or

their

they may request

in the exercise of

the intervention of

It is also noted that if interested parties consider that they are
rights of
encountering difficulties
defence,
the Hearing
Officer of DG Trade. He acts as an interface between the inter-
ested parties and the Commission services, offering, where
necessary, mediation on procedural matters affecting the protec-
tion of their interests in this proceeding,
in particular, with
regard to issues concerning access to the file, confidentiality,
extension of time limits and the treatment of written and/or
oral submission of views. For further information and contact
details, interested parties may consult the Hearing Officer's web
pages on the website of DG Trade (http://ec.europa.eu/trade).

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the Euro-
pean Parliament and of the Council of 30 May 2001 regarding public
access to European Parliament, Council and Commission documents
(OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant to
Article 19 of the basic Regulation and Article 6 of the WTO Agreement
on Implementation of Article VI of the GATT 1994 (Anti-dumping
Agreement).

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