Council Regulation (EC) No 654/2008 of 29 April 2008 imposing a definitive anti-dumping duty on imports of coumarin originating in the People’s Republic of China, as extended to imports of coumarin consigned from India, Thailand, Indonesia and Malaysia, whether declared as originating in India, Thailand, Indonesia and Malaysia or not following an expiry review pursuant to Article 11(2) of Regulation (EC) No 384/96
Date: 2008-04-29
Institutions: Council of the European Union
Subjects: China, India, Indonesia, Malaysia, Thailand, anti-dumping duty, anti-dumping legislation, import, organic chemical, originating product

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 654/2008

of 29 April 2008
imposing a definitive anti-dumping duty on imports of coumarin originating in the People’s
Republic of China, as extended to imports of coumarin consigned from India, Thailand,
Indonesia and Malaysia, whether declared as originating in India, Thailand,
Indonesia and
Malaysia or not following an expiry review pursuant to Article 11(2) of Regulation (EC) No 384/96

THE COUNCIL OF THE EUROPEAN UNION,

connection with the investigation into alleged circum-
vention of
the anti-dumping measures by imports of
coumarin consigned from India or Thailand.

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),
and in particular Articles 9, 11(2), 8 and 13 thereof,

2. Request for a review

(3)

(4)

(5)

(6)

Having regard to the proposal submitted by the Commission
after consulting the Advisory Committee,

Whereas:

A. PROCEDURE

1. Measures in force

(1)

The Council, by Regulation (EC) No 769/2002 (2)
imposed a definitive anti-dumping duty of EUR 3 479
per tonne on imports of coumarin originating in the
People’s Republic of China and extended to imports
consigned from India and Thailand by Council Regu-
lation (EC) No 2272/2004 (3) and to imports consigned
from Indonesia and Malaysia by Council Regulation (EC)
No 1650/2006 (4).

(2)

The Commission, by a Decision (5) dated 3 January 2005,
accepted an undertaking offered by an Indian producer in

(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).

(2) OJ L 123, 9.5.2002, p. 1. Regulation as amended by Regulation (EC)

No 1854/2003 (OJ L 272, 23.10.2003, p. 1).

(3) OJ L 396, 31.12.2004, p. 18.
(4) OJ L 311, 10.11.2006, p. 1.
(5) OJ L 1, 4.1.2005, p. 15.

The request was lodged on 8 February 2007 by the
(the
European Chemical
in the
applicant) on behalf of
the
Community,
Community production of coumarin.

sole producer
totality

Industry Council

representing

(CEFIC)

the

the

of

The applicants alleged and provided sufficient prima facie
evidence that: (a) there is a likelihood of continuation or
recurrence of dumping and injury to the Community
industry, and (b) the imports of the product concerned
from the People’s Republic of China have continued to
enter the Community in significant quantities and at
dumped prices.

It was also alleged that the volumes and the prices of the
imported product concerned have continued, among
other consequences, to have a negative impact on the
level of prices charged by the Community industry,
resulting in substantial adverse effects on its financial
situation and its employment.

Furthermore, the applicant pointed out that during the
imposition of measures,
period of
the exporters/pro-
the product concerned from the People’s
ducers of
Republic of China has
existing
undermined
measures by circumvention practices, which have been
counteracted by the extension of measures as enacted
by Council Regulation (EC) No 2272/2004 and Council
Regulation (EC) No 1650/2006.

the

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3. Initiation

6. Verification of information received

(7)

(8)

(9)

(10)

that

sufficient evidence existed for

Having determined, after consultation of the Advisory
Committee,
the
initiation of an expiry review, the Commission initiated
an investigation pursuant to Article 11(2) of the basic
Regulation by a notice published in the Official Journal of
the European Union (1).

4. Period of investigation

The review investigation period (RIP) for the examination
of continuation or recurrence of dumping and injury
covered the period from 1 April 2006 to 31 March
the
2007. The examination of
assessment of continuation or
injury
covered the period from 1 January 2003 up to the end
of the RIP (period under review).

relevant
recurrence of

trends

for

5. Parties concerned by the investigation

the

advised

officially

applicant
The Commission
the exporting producers in the
Community producer,
PRC and their representatives,
the Chinese authorities
and the importers, users and associations known to be
review. The
initiation of
concerned, of
Commission sent questionnaires to exporting producers,
a producer in India (analogue country as mentioned at
recital
the sole Community producer, known
importers and users and to those parties which made
themselves known within the time limit set
in the
notice of initiation of the review.

(26)),

the

the

Sampling for exporters/producers in the People’s Republic of
China

In view of the apparent number of exporting producers
involved in this proceeding, the use of sampling tech-
niques was envisaged in the notice of
initiation in
accordance with Article 17 of the basic Regulation. In
order to decide whether sampling would be necessary
and,
if so, to select a sample, all exporting producers
were asked to make themselves known and to provide,
as specified in the notice of initiation, basic information
on their activities related to coumarin during the inves-
tigation period. Two companies in the People’s Republic
of China replied to the sampling questionnaire but only
one indicated its willingness to cooperate and replied to
the dumping questionnaire, as follows:

— Nanjing Jingqiao Perfumery/China Tuhsu Flavours &

Fragrances Imp. & Exp. Corp.

(12)

the likelihood of continuation or

The Commission sought and verified all
information it
deemed necessary for the purpose of the determination
of
recurrence of
dumping and injury and of Community interest. The
Commission also gave the parties directly concerned
the opportunity to make their views known in writing
and to request a hearing.

(13)

Verification visits were carried out at the premises of the
following companies:

Community producer:

— Rhodia Organics, (Lyon) France,

importers/users:

— Henkel KGaA, (Krefeld) Germany.

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

(14)

(15)

The product concerned is the same as in the original
investigation, i.e. coumarin, a whitish crystalline powder
with the characteristic odour of newly mown hay. Its
main uses are as an aroma chemical and as a fixative
in the preparation of
such
compounds being used in the production of detergents,
cosmetics and fine fragrances.

compounds,

fragrance

Coumarin, which was originally a natural product
is now produced synthe-
obtained from Tonka beans,
It can be obtained by a synthesis process
tically.
to obtain salicilaldehyde (Perkin
starting from phenol
reaction) or by a synthesis from orthocresol
(Raschig
reaction). The main physical specification of coumarin
is
the
indicator. The standard quality coumarin marketed in
the Community has a melting point varying between
68 °C and 70 °C which corresponds to 99 % purity.

its purity, of which the melting point

is

(16)

The
product
ex 2932 21 00.

concerned

falls within

CN code

(11)

importers/users
The Community producer and four
replied to the questionnaires. With respect
to the
analogue country, the Indian producer contacted by the
Commission services refused to cooperate.

(1) OJ C 103, 8.5.2007, p. 15.

2. Like product

(17) As in the original investigation, coumarin exported to the
Community from the PRC as well as coumarin produced
and sold by the Community industry in the Community
market were found to have effectively identical physical
characteristics and uses and are thus like products within
the meaning of Article 1(4) of the basic Regulation.

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(18)

(19)

C. LIKELIHOOD OF A CONTINUATION OR
RECURRENCE OF DUMPING

1. General issues

In accordance with Article 11(2) of the basic Regulation,
it was examined whether dumping was currently taking
place and whether or not the expiry of the measures
would be likely to lead to a continuation or recurrence
of dumping.

In accordance with Article 11(9) of the basic Regulation,
the same methodology was used as in the original inves-
tigation. As an expiry review does not provide for any
examination of changed circumstances, it was not recon-
sidered whether producers were entitled to market
economy treatment (‘MET’).

(25) Wherever warranted, export price data from cooperating
producers and Chinese export statistics available to the
Commission (which also included products other than
the product concerned) used as a complement.

3. Analogue country

(26)

Coumarin is a fragrance produced in only a few countries
around the world and therefore the choice for an
analogue country was extremely limited. According to
the information available to the investigation, the only
producing countries during the RIP were France, China
and India. The USA was used in the previous review
the company had since ceased its
investigation but
production.
suggested in the Notice of
Initiation but no Indian producer agreed to cooperate.

India was

(20)

Statistical data showed that about 214 tonnes were
imported to the EU from all sources, out of which
representing
about 137 tonnes originated in China,
around 20 % of EU consumption.

(27)

In light of these findings the normal value had to be
established ‘on any other reasonable basis’ in accordance
the basic Regulation. The
with Article 2(7)(a) of
Community industry data was considered reasonable
for such a purpose.

(21)

(22)

(23)

(24)

2. Sampling (exporters) and cooperation

It is recalled that, in the previous investigation, the results
of which were published in May 2002, there was no
cooperation from Chinese
exporting producers and
none were awarded MET or IT.

(28)

Sampling forms were sent out to 21 potential produ-
in the PRC but only two companies
cers/exporters
responded, only one of which cooperated with the inves-
response;
tigation by
a
sampling,
single
response covered around 5 % of Chinese imports in the
In terms of capacity this cooperator possessed
RIP.
around 17 % of total Chinese capacity.

therefore, was not warranted. This

questionnaire

completing

4. Dumping during the review investigation period

recital

the reasons explained at

For
(23), dumping
margins were calculated using CN code data which
were cross-checked with the information received from
the sole cooperating Chinese exporting producer. The
export prices of the imports from China were adjusted
to ensure that they were on a comparable basis to the
normal value. These adjustments ensured that the calcu-
lations were made on the ex works basis and the
difference between the export price and the normal
value was expressed as a percentage of the CIF export
price. On this basis, the margin of dumping was around
45 % during the RIP.

company of

In light of this very low level of cooperation and the
limited representativeness of one
the
Chinese market and production, it was determined that
no reliable information on imports of
the product
concerned to the Community during the RIP could be
gathered directly from the exporting producers. Under
these circumstances, and in accordance with Article 18
of the basic Regulation, the Commission resorted to the
use of the facts available, i.e. CN code data. Nevertheless,
the information in the single questionnaire response was
used to the extent possible to cross check the results
based on the data available pursuant to Article 18.

5. Price comparisons

(29)

It was clear that should the measures be allowed to lapse
that there was a clear incentive for the Chinese exporters
to sell high volumes on the very large EU market. This
following information
conclusion is based on the
calculated during the investigation:

(i) Chinese domestic prices in the RIP were around

25 % lower than those on the EU market;

It was established that the CN code data were the best
facts available for most of the aspects of this investi-
data
gation.
under
and
TARIC
Article 14(6) of
the basic Regulation confirmed the
accuracy of the CN code figures.

collected

data

(ii) the Chinese producers sell most of their production
on export markets because their domestic market is
not large enough to absorb all their production and
because domestic prices
to those
achievable in third country markets;

similar

are

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(iii) Community market prices were higher

than the
export prices to third countries achieved by the
Chinese exporting producers, which would signal
that dumping exists also in other third country
there would be a significant
markets and that
incentive for producers in the PRC to re-direct
their exports to the Community.

6. Unused capacity and stocks in the PRC

(30)

In the previous investigation which concluded in May
2002,
it was established that there was an enormous
availability of unused Chinese production capacity
(between 50 % and 60 % of production capacity). Due
to the low cooperation rate of the Chinese exporting
producers very little information was made available to
the investigation concerning current unused capacity and
stocks in the PRC.

(31) However, according to its questionnaire response,

the
sole cooperator had substantial unused capacity. This
producer had around 500 tonnes in stock at the end
of the RIP, which represented more than 70 % of the
this
EU market
in the RIP. Bearing in mind that
producer only represents between 15-20 % of
the
Chinese production capacity it is likely that even higher
stocks are available to penetrate the EU market should
measures be repealed.

(32)

7. Possible absorption capacity of
markets or home market of PRC

third country

Bearing in mind the above price comparisons and availa-
bility of unused capacity and stocks it cannot be argued
that Chinese production will be absorbed by third
country markets and the Chinese domestic market. This
is because consumption on the third country markets has
remained relatively stable over the past 10 years and is
expected to remain stable in the future. Bearing this in
mind it is evident that the Chinese producers are likely to
need to continue to export to the Community. This is
due to the fact that the EU market is one of the most
attractive in the world bearing in mind its size and the
relatively high prices that can be achieved. If measures
are repealed,
is clear that even larger volumes of
dumped imports would be re-directed into the EU
market.

it

8. Circumvention practices

(33) As mentioned in recital (1), the measures under review
have been extended to India, Thailand, Malaysia and

the

indicates

strong interest of

Indonesia as a result of a circumvention investigation.
This
the Chinese
producers to enter the Community market and their will-
ingness to do so even when anti-dumping measures are
in place. The existence of the circumvention practices
therefore support the conclusion that there is a strong
likelihood that greater levels of dumped imports would
return to the Community market should the measures be
repealed.

9. Conclusion on the likelihood of a continuation

and/or recurrence of dumping

(34) On the basis of the above, it is concluded that dumping
is likely to continue should measures be repealed.

D. DEFINITION OF THE COMMUNITY INDUSTRY

(35)

The company represented by the applicant was the only
producer of coumarin in the Community during the
investigation period. This Community producer
is
therefore deemed to constitute the Community industry
within the meaning of Article 4(1) and Article 5(4) of the
basic Regulation.

E. ANALYSIS OF THE SITUATION IN THE COMMUNITY

1. Community consumption (1)

(36)

The product under review constitutes a part of a single
CN Code. In order to establish the volume of products
within this CN code which are not
the product
concerned the Commission services compared CN data
with other available statistical sources as mentioned in
recital (23). This comparison showed that almost 100 %
of the products imported under this code were in fact the
product concerned.

(37)

The Community consumption was therefore established
in adding the full CN Code data for the imports into the
European Community to the sales volumes of
the
Community industry on the Community market as
reported in the questionnaire reply.

(38) Overall,

the

apparent

consumption

coumarin
decreased by 8 % during the period under review, with
a decrease until 2005 and an increase
thereafter.
Consumption levels would now have appeared to have
stabilised.

of

(1) For confidentiality reasons, given that one single Community
producer
figures
the Community
contained in this Regulation will be indexed or given approximately.

constitutes

industry;

the

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(39)

The Community consumption developed as follows:

Table 1

2004

91,4

2003

100

2005

82,4

2006

90

RIP

92,3

Community consumption
(index 2003 = 100)

2. Imports from the country concerned

(a) Volume and market share

(40) As explained in recital (36) CN code 2932 21 00 was used as the source for the imports of the

product concerned onto the Community.

(41) With respect to the Chinese imports, attention must be paid to the proven circumvention practices
that led to the extension of measures to imports of coumarin from India, Thailand, Indonesia and
Malaysia. As a consequence of the anti-circumvention measures adopted, imports originating in the
PRC as well as imports originating in PRC but shipped from other countries have decreased during
the period under review. While the imports of Chinese origin is still significant this decrease showed
that the anti-circumvention measures were effective.

(42) As explained in recital

(38) the apparent consumption decreased in the period considered. The
Chinese imports diminished even further in proportion to the consumption resulting in a loss of
market share in the Community to the benefit of the Community industry. The volume of imports
from third countries into the Community remained at the same level during the period under review.

Table 2

2004

99,4

2003

100

Volume of dumped imports
(index 2003 = 100)

Volume of
countries

imports from third

100

78

2005

49,7

74,7

2006

47

65,5

RIP

50,1

66,6

Range
dumped imports

of market

share

of

30 %-40 %

40 %-50 %

20 %-30 %

10 %-20 %

20 %-30 %

(b) Prices

(43) Over the period under review, the average CIF prices of the coumarin imported from China were

steadily far below the Community industry’s prices.

3. Economic situation of the Community industry

(a) Production

(44)

The Community industry had to decrease its production volume of the product concerned by 25 %
between 2003 and the RIP. This is linked to the fact that from 2003 and onwards, the Community
industry lost sales volume due to circumvention practices. Furthermore, it also lost sales volume in
exports to third countries as the Community industry also in the third country export markets faced
the pressure of low-priced Chinese exports.

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(b) Capacity and capacity utilisation

(45) As explained in recitals (36) to (39), the Community industry’s sales of the product concerned in the
Community were relatively stable throughout the period under revision. However, during the same
period, the Community industry saw a serious decline in the volume exported to third countries. In
these circumstances in order to optimise the level of capacity utilisation, the Community industry had
to reduce capacity. This notwithstanding, capacity utilisation remained relatively low.

Table 3

2004

63,4

63,5

99,8

2003

100

100

100

2005

66,3

63,5

2006

70,3

63,5

RIP

75,4

63,5

104,4

110,8

118,8

Production

Production capacity

Capacity utilisation

(c) Sales in the Community

(46)

The sales volume in the EC of the Community industry has increased by 36 % during the period
under review. This development was made possible due to the extension of the measures for a new
period of five years and due to the effective elimination of circumvention practices. In consequence
and as explained in recital (41), the Chinese imports decreased during that same period of time.
Imports from India, the only other known third country producing coumarin, were limited to that
under the undertaking.

(d) Stocks

(47)

The level of the stocks of the Community industry decreased during the period under review.

(e) Market shares

(48)

The Community industry gained market share during the period under review. As explained in
recitals (41) and (42) the efficiency of the measures in place has allowed the Community industry
to recover market share. The 22 percentage points increase of market share during the period under
review was clearly linked to the elimination of the circumvention practices.

(49)

(50)

(51)

(f) Prices

The average net sales price of coumarin on the EC market decreased by 10 % in 2004 in comparison
with the prices of the year 2003. After 2004, the prices recovered gradually but never reached those
of 2003 in the RIP. A full recovery in terms of price was thus far not reached, as would have been
expected.

The price situation reflects the strong pressure by imports from China. Over the period considered,
the average CIF prices of the imports from China were steadily far below the Community industry’s
prices. With the measures in place, during the RIP, coumarin originating in China was sold at the
same prices as those of the Community industry. To this end the prices of Chinese exports has acted
as ceiling forcing Community industry to align their prices accordingly As a consequence,
Community industry prices are severely depressed and the industry shows low profitability.

For the purpose of determining the continuation of undercutting by coumarin originating in China,
Community industry’s ex-works prices to unrelated customers have been compared with the CIF
Community frontier import prices using CN code data as explained in recital (23). The comparison
showed that while prices were close to the non-injurious price established for the Community
industry, imports were not undercutting the prices of the Community industry.

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Table 4

2004

50,3

98

90,4

2003

100

100

100

2005

31

136,5

93,7

2006

20,9

149,3

96,6

RIP

3,7

148

97,3

Stocks

Market shares of the C.I.

Prices

(g) Profitability

(52)

(53)

(54)

The profitability on sales of the product concerned to unrelated customers in the Community appears
to be slightly positive during the RIP. It remained negative from the year 2004 onwards with a small
improvement as from the year 2006. This low profitability level is partially due to depressed sales
prices as explained in recitals (49) and (50), combined with an increase in cost, notably as concerns
the price of raw materials. Improvement of the productivity could only partly compensate for the
negative impact of these elements on the profitability. Overall the profit was well below the normal
profit for the whole period considered.

(h) Cash flow and ability to raise capital

The development of the cash flow generated by the Community industry in relation to sales of the
product concerned on the EU market mirrors the development of profitability. It is worth noting
that, while the cash flow was low, it remained in positive values during the period under review.

The investigation established that the Community industry is not experiencing any difficulties to raise
capital and that capital expenditure was very limited through the period under review. The ability to
raise capital cannot, however, be considered as a meaningful indicator for this investigation since the
Community industry is a large group for which the production of coumarin represents only a small
part of its total production. The ability to raise capital is closely linked to the performance of the
group as a whole rather than the individual performance of the product concerned.

(i) Employment, productivity and wages

(55)

Employment by the Community industry decreased during the period under review in particular from
the year 2004 onwards. This decrease is linked to the reorganisation of the production process of
the Community industry
coumarin undertaken by Community industry. The productivity of
measured in terms of production volume per person employed increased markedly during the
period under investigation.

(56)

The cost of wages as a whole diminished as a direct consequence of the reorganisation described
under recital (55). The average wages per employee remained at the same level during the period
under review.

Employees

Wages

Productivity

Table 5

2004

86

89,6

76,4

2003

100

100

100

2005

61

65,5

2006

57

63,4

111,8

129,4

RIP

57

63,4

135,3

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(j) Investment and return on investment

(57) During the period under

investigation,

the level of
investments reached its peak in 2004, whereas since
then it started to decrease. Under the current market
conditions, the Community industry is more concerned
with maintaining the existing production equipment than
with extending production capacity.

it
economic

vention was found has had a positive impact on the
allowed a partial
Community industry,
in that
recovery from a difficult
situation. The
continuous efforts made by the Community industry in
terms of cost cutting and increase of productivity per
employee could only just counterbalance the increase
of raw material prices and the decrease in sales prices
on the Community market.

(58)

Seen from this perspective,
the return on investment
expressed as the relation between the net profit of the
its fixed
Community industry and the book value of
assets mirrors the profitability trend as explained in
recital (52).

(63)

The circumvention practices of the Chinese producers, as
explained in recital (33), support the conclusion that the
Chinese exporting producers have a strong interest in
entering the Community market.

(k) Growth

(59) As explained from recital (36) onwards the sales volume
of the Community industry on the EU market has largely
increased allowing the Community industry to recover
significant market share.

(64) Having regard to the above analysis, the situation of the
Community industry is still precarious although the
measures have served to limit the injurious effects of
imports at dumped prices
dumping. Any increase of
would however in all likelihood aggravate the situation
and wipe out all the efforts made by the Community
industry that would in all
likelihood have to cease
production of coumarin.

(60)

(61)

(l) Magnitude of the dumping margin

The analysis with regard to the magnitude of dumping
takes into account the fact that there are measures in
force in order to eliminate injurious dumping. Never-
imports during the RIP
theless, given the volume of
level of dumping found
combined with a significant
the
(28)),
(see recital
Community industry cannot be considered negligible.

its impact on the situation of

(m) Recovery from the effects of past dumping

the imposition of

It should also be taken into account that the Community
industry would not have been able to recover from past
the anti-dumping
dumping after
measures in 2002 because of circumvention practices
against which measures were only adopted in 2004
and 2006. Before the imposition of anti-circumvention
measures by the Council on India, Thailand, Indonesia
and Malaysia and the acceptance of the undertaking by
the Commission in 2005, the level of imports from the
four countries above was considerable and prevented the
Community industry from recovering from the effects of
dumping.

4. Conclusion on the situation of the Community

market

(62)

The imposition of the anti-dumping measures on imports
of coumarin originating from the PRC and the extension
of the measures to the countries from which circum-

F. LIKELIHHOOD OF RECURRENCE OF INJURY

1. Likelihood of recurrence of injury

(65) With regard to the likely effect on the Community
the
industry of
following factors were considered in line with the
elements summarised in recitals (28) to (34).

the measures in force,

the expiry of

(66)

The Community industry has increased the volume of its
sales on the Community market as a consequence of the
It is clear from the data that the
measures in force.
market share of the Community industry has increased
consumption
significantly
in a market where
decreased by 8 % during the period under
review.
However, the Community industry continued to suffer
from price depression.

the

to a certain extent

(67) As explained above in recital (38) while the consumption
decreased by 8 %, the forecast of the world consumption
of coumarin, although subject
to
fashion trends,
is not expected to change to a major
degree. In the absence of measures, there are clear indi-
cations that significant imports from China will continue
at dumped prices. Moreover, the large spare production
capacity in China suggests that there is a significant like-
lihood that the import volumes in the Community would
increase if the measures were repealed.

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(68)

The extension of measures following the anti-circum-
vention proceedings was largely effective in terms of
halting the circumvention practices of
the product
concerned originating in the PRC but consigned from
India, Thailand, Indonesia and Malaysia. It is likely that
the Chinese exporting producers will have to pursue
aggressive price practices in the Community in order to
compensate for the market share that was lost when
circumvention was stopped.

(69) As concluded above in recital (29) the investigation has
established that there would be a clear incentive for the
large volumes
Chinese
to the
to direct
Community should measures
allow to lapse. This
would allow the Chinese exporters to use some of their
excess capacity.

exporters

(70)

(71)

The likelihood of this development is further supported
by the fact that the prices in the Community are higher
than the Chinese export prices to other third countries.
the Chinese
This would most
producers
in the Community
market.

to increase activities

certainly encourage

such circumstances

The increase in imports at lower prices, which would be
the likely consequence of the lifting of measures, would
also most likely have significantly detrimental effects on
Community industry. Under
the
Community industry would either have to follow the
decrease in prices in order to maintain market share,
level and instead
or maintain sales prices at current
loose customers and eventually sales.
In the former
case, Community industry would have to operate at a
loss and in the latter case the loss of sales as such
would eventually lead to increased costs followed by
losses.

(72)

Therefore, should imports increase as forecasted in the
case of termination of measures, the investigation has
revealed that there is a clear likelihood of recurrence of
injury to a Community industry that
is already in a
it would no longer be viable
In essence,
fragile state.
for Community industry to continue production of
coumarin.

G. COMMUNITY INTEREST

1. Introduction

(73) According to Article 21 of

the basic Regulation,

the
Commission examined whether a prolongation of the
existing anti-dumping measures would be against
the
interest of the Community as a whole. The determination
of the Community interest was based on an appreciation

i.e.

the

interests

involved,

the
of all various
importers/traders and the
Community industry,
users of
In order to assess the likely
impact of maintaining or repealing the measures, the
interested
Commission requested information from all
parties mentioned above.

the coumarin.

those of

(74) On this basis it was examined whether, despite the
continuation of
conclusions on the
dumping and likely recurrence of
injury, compelling
reasons existed which would lead to the conclusion
that
the Community to
in the interest of
maintain measures in place in this particular case.

likelihood of

is not

it

2. Interest of the Community industry

(75)

It would clearly be in the interest of the sole Community
producer to be able to continue with the production of
coumarin.

(76)

is also considered that,

It
should the anti-dumping
measures be repealed, dumping is likely to continue
and increase resulting in a continuous deterioration of
the situation of the Community industry, to the point
when the industry would in all likelihood disappears.

(77) Overall,

it can be concluded that the continuation of
the

clearly would be

interest of

in the

measures
Community industry.

3. Interest of importers and users

(78)

Thirteen importers
and 10 industrial users were
contacted and questionnaires were sent. The Commission
services
that
agreed to cooperate.

received four answers

from companies

(79) Out of the four answers, one importer expressed oppo-
sition to the measures, as it was primarily concerned
about price when sourcing the product concerned. This
company did however also state that the impact of the
cost of the coumarin on its total cost of production is
very limited.

importance in the composition of

(80) Although the product concerned is used in other
industries, where quite often it cannot be substituted,
the finished
its
product is very limited in quantities and in prices,
in
most cases less than one percent. The impact of the
duty on the user as well as on final consumer
is
therefore very limited.

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11.7.2008

(81)

(82)

Some users stated that they have a strong preference for
coumarin of Community origin due to its quality
advantages. These users would be seriously affected if
the Community industry were to stop its production as
a result of the measures being repealed.

In analysing Community interest, the need to eliminate
the trade-distorting effects of injurious dumping and to
restore effective competition should be considered,
in
particular.
In this respect it should be noted that the
coumarin world market is very concentrated with only
a few producers, with the most important located in
China and in the Community. From that perspective,
the safeguarding of several sources of supply (including
the Community industry)
considered as
important. Moreover, it should also be recalled that the
purpose of the anti-dumping measures is not to restrict
supply from sources outside the Community, and that
coumarin originating in China may still continue to be
imported to the Community in sufficient quantities.

should be

(83)

The above considerations seen in conjunction with the
low level of cooperation, confirms that importers and
users did not suffer any substantial negative effect on
the measures
their economic situation as a result of
currently in force. Furthermore,
the investigation has
not revealed that any such negative effects would be
aggravated should measures be prolonged.

4. Conclusion on Community interest

(84)

Taking into account all the above factors, it is concluded
that there are no compelling reasons the continuation of
the measures would be against the Community interest.

H. ANTI-DUMPING MEASURES

(85) All parties were informed of

the essential

facts and
considerations on the basis of which it is intended to
recommend that the existing measures be maintained.
They were also granted a period to make representations
subsequent to this disclosure.

(86)

follows

from the

It
anti-dumping
above
measures currently in force with regard to imports of
coumarin originating in the People’s Republic of China
should be maintained.

that

the

(87) As outlined in recital

(1), the anti-dumping duties in
force on imports of the product concerned from the
imports of
PRC were extended to cover,
coumarin consigned from India, Thailand,
Indonesia
and Malaysia, whether declared as originating in India,

in addition,

Indonesia and Malaysia or not. The anti-
Thailand,
dumping duty to be maintained on imports of
the
product concerned, should continue to be extended to
imports of coumarin consigned from India, Thailand,
Indonesia and Malaysia, whether declared as originating
in India, Thailand, Indonesia and Malaysia or not. The
Indian exporting producer referred to in recital (2) who
was exempted from the measures on the basis of an
undertaking accepted by the Commission should also
be further exempted from the measures as imposed by
this Regulation under the same conditions,

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of
ex 2932 21 00
coumarin falling within code
(TARIC code 2932 21 00 19) originating in the People’s
Republic of China.

2.

The rate of the duty is set at EUR 3 479 per tonne.

3.
The definitive anti-dumping duty of EUR 3 479 per tonne
applicable to imports originating in China is hereby extended to
the same product mentioned in paragraph 1
imports of
and Malaysia
consigned from India, Thailand,
whether declared as originating in India, Thailand,
Indonesia
and Malaysia
2932 21 00 11,
(TARIC
or
2932 21 00 15 and 2932 21 00 16).

Indonesia

codes

not

Article 2

Imports declared for release into free circulation shall be
1.
exempt
from the anti-dumping duty imposed by Article 1
provided that they are produced by companies from which
undertakings are accepted by the Commission and whose
names are listed in the relevant Commission Decision, as
from time to time amended and have been imported in
conformity with that Decision.

Imports referred to in paragraph 1 shall be exempt from

2.
the anti-dumping duty on condition that:

(a) a commercial invoice containing at least the elements listed
in the Annex is presented to Member States’ customs auth-
orities upon presentation of the declaration for release into
free circulation; and

(b) the goods declared and presented to customs correspond
precisely to the description on the commercial invoice.

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L 183/11

Article 3

Unless otherwise specified, the provisions in force concerning
customs duties shall apply.

pursuant to Article 145 of Commission Regulation (EEC) No
2454/93 (1), the amount of the anti-dumping duty, calculated
on the basis of the amount set above, shall be reduced by a
percentage which corresponds to the apportioning of the price
actually paid or payable.

Article 4

In cases where goods have been damaged before entry into free
circulation and, therefore, the price actually paid or payable is
the customs value
apportioned for

the determination of

Article 5

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

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

Done at Luxembourg, 29 April 2008.

For the Council
The President

D. RUPEL

(1) OJ L 253, 11.10.1993, p. 1.

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ANNEX

The following information shall be indicated on the commercial invoice accompanying the company’s sales of coumarin
to the Community which are subject to the Undertaking:

1. the heading ‘COMMERCIAL INVOICE ACCOMPANYING GOODS SUBJECT TO AN UNDERTAKING’;

2. the name of the company referred to in Article 2(1) issuing the commercial invoice;

3. the commercial invoice number;

4. the date of issue of the commercial invoice;

5. the TARIC additional code under which the goods on the invoice are to be customs cleared at the Community

frontier;

6. the exact description of the goods, including:

— Product Code Number (PCN) used for the purposes of the investigation and the undertaking,

— plain language description of the goods corresponding to the PCN concerned (e.g. PCN …),

— company product code number (CPC) (if applicable),

— CN code,

— quantity (to be given in kilograms);

7. name of the company acting as an importer in the Community to which the commercial invoice accompanying goods

subject to an undertaking is issued directly by the company;

8. the name of the official of the company that has issued the invoice and the following signed declaration:

‘I, the undersigned, certify that the sale for direct export to the European Community of the goods covered by this
invoice is being made within the scope and under the terms of the undertaking offered by [company] and accepted by
the European Commission through Decision [insert number]. I declare that the information provided in this invoice is
complete and correct.’