Council Regulation (EC) No 426/2008 of 14 May 2008 amending Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on imports of certain castings originating in the People’s Republic of China
Date: 2008-05-14
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, anti-dumping legislation, cast-iron, import, iron and steel product, originating product, road services department

17.5.2008

EN

Official Journal of the European Union

L 129/1

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

I

REGULATIONS

COUNCIL REGULATION (EC) No 426/2008

of 14 May 2008

amending Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on imports of
certain castings originating in the People’s Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

(2)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against dumped imports
from countries not members of the European Community (1)
(the ‘basic Regulation’),

Having regard to Article 1(4) of Council Regulation (EC) No
1212/2005 of 25 July 2005 imposing a definitive anti-dumping
duty on imports of certain castings originating in the People’s
Republic of China (2),

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

Whereas:

The sampled companies were attributed the individual
duty rates established during the investigation. The coop-
erating non-sampled companies which were granted
market economy treatment (‘MET’),
in accordance with
the provisions of Article 2(7)(c) of the basic Regulation,
were attributed the 0 % dumping duty which was estab-
lished for the sole sampled company which was granted
MET. The cooperating non-sampled companies which
were granted individual treatment (‘IT’),
in accordance
with the provisions of Article 9(5) of the basic Regu-
lation, received the weighted average duty of 28,6 %
established for
that were
granted IT. A countrywide duty of 47,8 % was imposed
on all other companies.

sampled companies

the

(3)

Article 1(4) of Regulation (EC) No 1212/2005 gives the
possibility to Chinese exporting producers which meet
the four criteria set out in that Article to be granted
the same treatment as the one mentioned in recital (2)
above for the cooperating companies not included in the
sample (‘New Exporting Producer Treatment’ or ‘NEPT’).

A. MEASURES IN FORCE

(4)

Nine companies have requested to be granted NEPT.

B. NEW EXPORTING PRODUCERS' REQUESTS

(1)

coated or painted or

By Regulation (EC) No 1212/2005, the Council imposed
a definitive anti-dumping duty on imports into the
Community of castings of non-malleable cast iron of a
kind used to cover and/or give access to ground or sub-
thereof, whether or not
surface systems, and parts
machined,
fitted with other
materials, excluding fire hydrants, originating in the
People’s Republic of China
(‘the product
concerned’),
declared within CN codes
7325 10 50, 7325 10 92 and ex 7325 10 99 (TARIC
code 7325 10 99 10). Given the large number of coop-
erating parties, a sample of Chinese exporting producers
was selected during the investigation which led to the
imposition of the measures.

normally

(‘PRC’)

(5)

to determine
An examination has been carried out
the applicants fulfils the criteria for
whether each of
being granted NEPT as set out in Article 1(4) of Regu-
lation (EC) No 1212/2005, by verifying that:

1.

it did not export to the Community the products
described in recital (1) above during the investigation
period (1 April 2003 to 31 March 2004);

(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 199, 29.7.2005, p. 1. Regulation as last amended by Regu-

lation (EC) No 268/2006 (OJ L 47, 17.2.2006, p. 3).

2.

it is not related to any of the exporters or producers
in the People’s Republic of China which are subject to
the anti-dumping measures imposed by that Regu-
lation;

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Official Journal of the European Union

17.5.2008

3.

4.

it has actually exported to the Community the
products concerned after the investigation period on
which the measures are based, or it has entered into
an irrevocable contractual obligation to export a
significant quantity to the Community;

it operates under market economy conditions defined
in Article 2(7)(c) of the basic Regulation or alterna-
tively that it fulfils the requirements to have an indi-
vidual duty in accordance with Article 9(5) of the
basic Regulation.

C. FINDINGS

Companies which have submitted incomplete replies

(10) One Chinese company requesting NEPT did not submit
any reply to the questionnaire and one company did not
submit any reply to a deficiency letter of their ques-
tionnaire reply. It was therefore not possible to verify
whether these companies fulfilled the criteria set out in
Article 1(4) of Regulation (EC) No 1212/2005 and their
request had to be rejected. These companies were
informed that their application would not be considered
any further and were given the opportunity to comment.
No comments were received.

(6)

the applicants
Since the fourth criterion implies that
submit a claim for MET or IT, the Commission sent
MET and IT claim forms to all Chinese applicants. All
Chinese applicant companies requested MET pursuant to
Article 2(7) of the basic Regulation.

(11)

(7)

Briefly, and for ease of reference only, the MET criteria
are set out in summarised form below:

1. business decisions and costs are made in response to
market signals and without significant State inter-
ference; and costs of major
substantially
reflect market values;

inputs

2. firms have one clear set of basic accounting records
which are independently audited in line with interna-
tional accounting standards (1) and are applied for all
purposes;

3. there are no significant distortions carried over from

the former non-market economy system;

4. bankruptcy

and property

laws

guarantee

legal

certainty and stability;

5. exchange-rate conversions are carried out at market

rates.

Companies which have submitted a complete reply

Seven companies submitted complete replies to the ques-
tionnaires. The Commission sought and verified all infor-
mation it deemed necessary for the purpose of the deter-
mination of
in
Article 1(4) of Regulation (EC) No 1212/2005. Verifi-
the
cation visits were carried out at
seven following companies:

the fourth criterion (MET/IT) set out

the premises of

— Wuxi Norlong Foundry Co. Ltd (Wuxi New District,

Jiangsu) (‘Norlong’),

— Baoding City Maikesaier Casting Ltd (Xinanli, Hebei)

(‘Maikesaier’),

— XianXian Guozhuang Precision Casting Co. Ltd

(Guozhuang, Hebei) (‘XianXian’),

— Changsha Wuxing Foundry Co. Ltd (Wangcheng
County, Changsha) (‘Wuxing’) and related company
Changsha J & J Sunshine Machinery and Electronic
Co. Ltd (189 Wuyi Road, Changsha) (‘Sunshine’),

Questionnaires were sent
to all applicants who were
asked to supply evidence to demonstrate that they met
the criteria mentioned above.

— Baoding Yuehai Machine Manufacturing Co. Ltd

(Baoding, Hebei) (‘Yuehai’),

Exporting producers
fulfilling these criteria may be
granted the duty rate applicable to the cooperating
to
companies not
Article 1(4) of Regulation (EC) No 1212/2005.

included in the sample, pursuant

(1) International accounting standards refer to all major recognised
international standards of accounting, including US GAAP and the
works of the International Accounting Standard Committee Foun-
dation (‘IASCF’)
International Accounting
Standards Board (‘IASB’), covering the International Accounting
Standard Board Framework (‘IASBF’), the International Accounting
Standard (‘IAS’),
the International Financial Reporting Standards
(‘IFRS’) and the International Financial Reporting Interpretations
Committee publications (‘IFRIC’).

effectuated by

the

— HanDan County Yan Yuan Smelting and Casting Co.

Ltd (Han Dan County, Hebei) (‘Yan Yuan’),

— Tianjin Loiselet Art Casting Co. Ltd (Jinghai, Tianjin)

(‘Loiselet’).

(12)

For each of the seven companies visited, it was verified
whether the four criteria mentioned at recital (5) above
were met.

(8)

(9)

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(13)

(14)

(15)

(16)

(17)

(18)

the four criteria set out

For two Chinese exporting producers, Maikesaier and
Yuehai, the examination of the information submitted
they had provided sufficient evidence to
showed that
prove that
in
they meet
Article 1(4) of Regulation (EC) No 1212/2005 and,
concerning the last criterion,
the five
conditions for MET. Therefore, these two producers can
be granted the weighted average duty rate for companies
granted MET applicable to the cooperating companies
in accordance
not
with Article 1(4) of Regulation (EC) No 1212/2005
and be added to the list of exporting producers of
Article 1(2) of that Regulation.

included in the sample (i.e. 0 %)

they meet

that

to be used for an individual dumping margin calculation
and therefore it cannot be concluded whether they fulfil
the second criterion for IT. All other four criteria for IT
are met. However, considering the fact, that their export
prices would not be used to calculate the dumping
margin,
the
weighted average duty rate of 28,6 % calculated for the
sampled companies granted IT in the original
investi-
gation, it is concluded that, in the context of this exam-
these companies can be granted the same
ination,
treatment as those falling under the weighted average
duty rate.

fell under

companies

these

three

if

Four Chinese exporting producers, Norlong, XianXian,
Yan Yuan and Loiselet provided sufficient evidence to
prove that
in
Article 1(4) of Regulation (EC) No 1212/2005.
However, concerning the last criterion, they could not
show that they meet the conditions to be granted MET.

the four criteria set out

they meet

it had received a
found that
For Norlong it was
substantial public land-use right refund. Criterion 3 for
MET was therefore not considered to be fulfilled. It was
also concluded that in the light of the fact that criterion
3 could not be met, a final determination concerning
criterion 1 could not be made. However, no evidence
was found that
the five
this company did not
criteria for IT.

fulfil

(20)

Therefore, Norlong, XianXian, Yan Yuan and Loiselet can
be granted the weighted average duty rate for companies
granted IT applicable to the cooperating companies not
included in the sample (i.e. 28,6 %) in accordance with
Article 1(4) of Regulation (EC) No 1212/2005 and be
added to the list of exporting producers of Article 1(2) of
that Regulation.

(21) Wuxing was found not to provide sufficient evidence to
the product concerned
show to be the producer of
exported to the EC. Therefore,
this producer did not
fulfil the third criterion set out in Article 1(4) of Regu-
lation (EC) No 1212/2005, and its request for NEPT was
therefore rejected.

For XianXian it was found that it could not fulfil criteria
1, 2 and 3 for MET. The company did not submit
sufficient evidence to show that
it operated under
market economy conditions and that its costs reflected
market values. Furthermore, the company was found not
to have one clear set of accounting standards audited in
line with international accounting standards. Finally,
it
was found that the company had obtained land rent
contracts at abnormally low prices in both absolute
and relative figures.

(22)

(23)

It was found that Yan Yuan did not meet criterion 2 for
MET. The 2006 accounts of this company had not been
audited, contrary to Chinese law and international
accounting standards, and other accounting irregularities
were also discovered, notably the fact that raw materials
individuals, without
were purchased
invoicing.

from private

For Loiselet it was found that criteria 2 and 3 for MET
were not met. In particular, it was established that most
the company’s main assets did not appear in the
of
accounts of the company. It also appeared that rental
agreement for the land and buildings of the plant was
not respected.

(19)

In view of the conclusions reached on the accounting
practices of XianXian, Yan Yuan and Loiselet, it cannot
be concluded that their export prices are reliable enough

D. MODIFICATION OF THE LIST OF COMPANIES
BENEFITING FROM INDIVIDUAL DUTY RATES

In consideration of the findings of the investigation as
indicated in recital (13) above, it is concluded that the
companies Maikesaier and Yuehai should be added to the
list of individual companies mentioned under Article 1(2)
of Regulation (EC) No 1212/2005 with a duty rate of
0 %.

For the companies Norlong, XianXian, Yan Yuan and
Loiselet, based on the findings of
the investigation
indicated in recitals (14) to (20) above, it is concluded
that these four companies should be added to the list of
individual companies mentioned under Article 1(2) of
Regulation (EC) No 1212/2005 with a duty rate of
28,6 %.

(24)

The company Wuxing, considering the findings of the
investigation as indicated in recital (21) above, cannot
be granted NEPT and should therefore remain subject
to the residual duty of 47,8 % according to Article 1(2)
of Regulation (EC) No 1212/2005.

(25) All the applicants and the community industry have been
informed of the findings of the investigation and have
had the opportunity
comments.
Following disclosure, comments were received from
Norlong, XianXian and Loiselet. No additional
infor-
mation was brought forward permitting to lead to any
different conclusions for any of the three companies,

to submit

their

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HAS ADOPTED THIS REGULATION:

Article 1

Article 1(2) of Regulation (EC) No 1212/2005 shall be replaced by the following:

‘2.
The rate of the definitive anti-dumping duty applicable to the net, free-at-Community-frontier
price, before duty, for products described in paragraph 1 and produced in the People’s Republic of
China by the companies listed below shall be as follows:

Company

Anti-dumping duty
(%)

TARIC additional
code

Shijiazhuang Transun Metal Products Co. Ltd, Xinongcheng
Liulintun, Luancheng County, Shijiazhuang City,
Hebei Province, 051430 PRC

Shaoshan Huanqiu Castings Foundry, Fengjia Village,
Yingtian Township, Shaoshan, Hunan, PRC

Fengtai Handan Alloy Casting Co. Ltd,
Beizhangzhuang Town, Handan County, Hebei, PRC

Shanxi Jiaocheng Xinglong Casting Co. Ltd,
Jiaocheng County, Shanxi Province, PRC

Tianjin Jinghai Chaoyue Industrial and Commercial Co. Ltd,
Guan Pu Tou Village, Yang Cheng Zhuang Town,
Jinghai District, 301617 Tianjin, PRC

Baoding City Maikesaier Casting Ltd,
Xin’anli Town, Tang County
Hebei, Baoding 072350, PRC

Baoding Yuehai Machine Manufacturing Co. Ltd,
No 333 Building A Tian E West Road,
Baoding, Hebei, PRC

Shanxi Yuansheng Casting and Forging Industrial Co. Ltd,
No 8 DiZangAn, Taiyuan, Shanxi, 030002, PRC

Botou City Simencum Town Bai fo Tang Casting Factory,
Bai Fo Tang Village, Si Men Cum Town, Bo Tou City,
062159, Hebei Province, PRC

Hebei Shunda Foundry Co. Ltd, Qufu Road, Quyang,
073100, PRC

XianXian Guozhuang Precision Casting Co. Ltd,
Guli Village, Xian County,
Hebei, Gouzhuang, PRC

Wuxi Norlong Foundry Co. Ltd,
Wuxi New District,
Jiangsu, PRC

HanDan County Yan Yuan Smelting and Casting Co. Ltd,
South of Hu Cun Village, Hu Cun Town,
Han Dan County, Hebei, PRC

Tianjin Loiselet Art Casting Co. Ltd,
Dongzhuangke, Yangchenzhuang,
Jinghai, Tianjin, PRC

Changan Cast Limited Company of Yixian Hebei,
Taiyuan Main Street, Yi County, Hebei Province,
074200, PRC

Shandong Huijin Stock Co. Ltd, North of Kouzhen Town,
Laiwu City, Shandong Province, 271114, PRC

All other companies

0

0

0

0

0

0

0

18,6

28,6

28,6

28,6

A675

A676

A677

A678

A679

A867

A868

A680

A681

A682

A869

28,6

A870

28,6

A871

28,6

A872

31,8

A683

37,9

47,8

A684

A999’

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

Article 2

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

Done at Brussels, 14 May 2008.

For the Council
The President

A. BAJUK