Notice of initiation of an anti-dumping proceeding concerning imports of certain candles, tapers and the like originating in the People's Republic of China
Date: 2008-02-16
Institutions: European Commission
Subjects: China, anti-dumping legislation, consumer goods, dumping, import, originating product

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Official Journal of the European Union

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Notice of initiation of an anti-dumping proceeding concerning imports of certain candles, tapers
and the like originating in the People's Republic of China

(2008/C 43/05)

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 certain candles, tapers and the
like, originating in the People's Republic of China (‘the country
concerned’), are being dumped and are thereby causing material
injury to the Community industry.

the European Community (1)

increased overall
share.

in absolute terms and in terms of market

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 quantities
sold by the Community industry, resulting in substantial adverse
effects on the overall performance, the financial situation and
the employment situation of the Community industry.

1. Complaint

producers:

The complaint was lodged on 3 January 2008 by the following
Community
EIKA
Bolsius
Wachswerke Fulda GmbH, Euro Candle KFT, Gies Kerzen
GmbH, Liljeholmens Stearinfabriks AB, SER Wax Industry and
Vollmar GmbH (‘the
representing a major
complainants’)
proportion,
in this case more than 25 %, of the total Com-
munity production of certain candles, tapers and the like.

International

BV,

2. Product

the purpose of

The product allegedly being dumped is certain candles, tapers
and the like, other than memory lights and other outdoor
burners, originating in the People's Republic of China (‘the
product concerned’). For
this proceeding,
memory lights and other outdoor burners are defined as
candles, tapers and the like, the fuel of which contains more
than 500 ppm of
toluene and/or more than 100 ppm of
benzene and/or have a wick with a diameter of at least 5 milli-
metres and/or are individually contained in a plastic container
with vertical walls of at least 5 cm in height. The product
concerned is normally declared within CN codes ex 3406 00 11,
ex 3406 00 19 and ex 3406 00 90. These CN codes are only
given for information.

3. Allegation of dumping

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

On this basis, the dumping margin calculated is significant.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from the People's Republic of China have

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

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

5. 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.

5.1. Procedure for the determination of dumping and injury

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

(a) Sampling

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
People's Republic of China

expor ters/producers

in

the

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in point 6(b)(i) and in the
formats indicated in point 7:

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

numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 January 2007
to 31 December 2007,

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— the turnover in local currency and the sales volume
in tonnes for the product concerned 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.

to its possible inclusion in the sample.

By providing the above information,
the company
agrees
If
the sample,
the company is chosen to be part of
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 country and any known associa-
tions of exporters/producers.

Since a company cannot be sure to be chosen into
the sample, exporters/producers that wish to claim an
individual margin (2) are advised to request a question-
naire 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,

(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
Regulation (EEC) No 2913/92 establishing the Community Customs
Code (OJ L 253, 11.10.1993, p. 1).

(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 invol-
ving 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.

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

companies (3)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

By providing the above information,
the company
agrees
If
the sample,
the company is chosen to be part of
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

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
injury to the Community industry by
investigate
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
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 indi-
cated in point 7:

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

numbers and contact person,

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

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

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— the 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,

facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in point 8.

— 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,

(b) Questionnaires

— 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,

— 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 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

(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

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

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

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
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).

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.

(d) Selection of the market economy country

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

forthcoming,

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

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

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

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(e) Market economy treatment

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that
they operate under market economy conditions,
i.e. that
they meet the criteria laid down in Article 2(7)(c) of the
basic Regulation, normal value will be determined in
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 named
in the complaint and to any association of exporters/produ-
cers 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.

6. Time limits

(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.

(ii) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

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
sample as referred to in point 5.1(a)(iv) must reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

(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 Brazil 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.

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-

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

status and/or for individual treatment

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

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7. Written submissions, questionnaire replies and cor-

9. Schedule of the investigation

respondence

All submissions and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by interested
parties on a confidential basis shall be labelled as ‘Limited’ (1)
and, in accordance with Article 19(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘For inspection by interested parties’.

Commission address for correspondence:
European Commission
Directorate General for Trade
Directorate H
Office: J-79 4/23
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
significantly impedes the investigation, provisional or final find-
ings, affirmative or negative, may be made in accordance with
Article 18 of the basic Regulation, on the basis of the facts
available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 18 of the basic Regulation, the result may be less favour-
able to that party than if it had cooperated.

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

10. Processing of personal data

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

their

they may request

in the exercise of

the intervention of

It is also noted that if interested parties consider that they are
encountering difficulties
rights of
the Hearing
defence,
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-
in particular, with
tion of their interests in this proceeding,
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
European Parliament and of the Council of 30 May 2001 regarding
public access to European Parliament, Council and Commission docu-
ments (OJ L 145, 31.5.2001, p. 43). It is a confidential document
pursuant to Article 19 of the basic Regulation and Article 6 of the
WTO Agreement on Implementation of Article VI of the GATT 1994
(Anti-dumping Agreement).

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