Council Regulation (EC) No 435/2008 of 19 May 2008 amending Regulation (EC) No 1371/2005 imposing a definitive anti-dumping duty on imports of grain-oriented flat-rolled products of silicon-electrical steel originating in the United States of America and Russia and repealing the anti-dumping duties imposed by Regulation (EC) No 1371/2005 on imports of grain-oriented flat-rolled products of silicon-electrical steel originating in Russia
Date: 2008-05-19
Institutions: Council of the European Union
Subjects: Russia, United States, anti-dumping duty, anti-dumping legislation, import, originating product, plate, steel

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

I

REGULATIONS

COUNCIL REGULATION (EC) No 435/2008

of 19 May 2008

amending Regulation (EC) No 1371/2005 imposing a definitive anti-dumping duty on imports of
grain-oriented flat-rolled products of silicon-electrical steel originating in the United States of
America and Russia and repealing the anti-dumping duties imposed by Regulation (EC) No
1371/2005 on imports of grain-oriented flat-rolled products of silicon-electrical steel originating
in Russia

THE COUNCIL OF THE EUROPEAN UNION,

except Viz Stal, Russia, which is subject to a duty of 0 %,
are 37,8 % for the USA and 11,5 % for Russia.

Having regard to the Treaty
Community,

establishing the European

B. REQUEST FOR REVIEW

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’), and in particular Articles 9 and 11(3)
thereof,

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

Whereas:

(1)

(2)

A. MEASURES IN FORCE

By Regulation (EC) No 1371/2005 (2),
the Council
imposed a definitive anti-dumping duty on imports of
grain-oriented flat-rolled products of
silicon-electrical
(‘GOES’) originating in the United States of
steel
America (‘USA’) and Russia (the ‘definitive Regulation’).

By Decision 2005/622/EC (3), the Commission accepted
price undertakings offered by two cooperating exporting
producers whose exports to the Community of GOES are
subject to a company-specific duty of 31,5 % (AK Steel
Corporation, USA) and 11,5 % (Novolipetsk Iron and
Steel Corporation (‘NLMK’), Russia). The anti-dumping
duties applicable to imports from all other companies,

(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 223, 27.8.2005, p. 1. Regulation as last amended by Regu-

lation (EC) No 41/2008 (OJ L 16, 19.1.2008, p. 1).

(3) OJ L 223, 27.8.2005, p. 42.

(3)

(4)

The Commission was notified in early 2007 that NLMK
had acquired 100 % of Viz Stal. Evidence was provided
regarding the production, sales and distribution of GOES
under the new corporate structure. As a consequence, the
circumstances on the basis of which the measures were
established appeared to have changed in a lasting way
the new corporate
and the dumping margin under
structure
as
compared to the level of the measures in force.

significantly different

appeared to be

Journal of

Having determined that there was sufficient prima facie
evidence that the individual duties in force for NLMK and
Viz Stal were no longer appropriate, and after consulting
the Advisory Committee, the Commission initiated ex
officio, by a notice (‘notice of initiation’) published in
the Official
the European Union, a partial
interim review in accordance with Article 11(3) of the
basic Regulation (4). The investigation was limited to the
examination of the level of dumping for the two Russian
exporting producers NLMK and Viz Stal
in order to
calculate one
the new joint
company. As stated in the notice of initiation, this exa-
mination would be made on the basis of data collected
during the investigation that led to the imposition of the
existing measures.

single measure

for

C. PRODUCT UNDER REVIEW

(5)

The product under review is grain-oriented flat-rolled
products of silicon-electrical steel, of a thickness of
more than 0,16 mm, currently classifiable within CN
codes ex 7225 11 00 (of a width of 600 mm or more)
and ex 7226 11 00 (of a width of less than 600 mm).

(4) OJ C 39, 23.2.2007, p. 26.

(6)

(7)

(8)

(9)

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GOES are produced from hot-rolled coils of silicon-
alloyed steel of different
thicknesses of which the
particular grain structure is uniformly directed in order
to allow for magnetic conductivity with a high degree of
Inefficiency with regard to this magnetic
efficiency.
conductivity is called ‘core loss’, which is the prime
indicator of the quality of the product.

— Tuscany Intertrade UK, Edinburgh, United Kingdom,

— Moorfield Commodities Company, Lugano, Swit-

zerland.

The market is typically divided into high conductivity or
high permeability grades and regular grades. The high
permeability grades allow lower core losses
to be
the sheets. Such
achieved for any given thickness of
characteristics
industrial
producers of electrical power transformers.

especially

relevant

are

for

D. INVESTIGATION

The Commission advised the Community producers of
GOES, all known Community importers and users as
well as all known exporting producers in the USA and
Russia of the initiation of the review.

The Commission requested information from all
the
abovementioned parties and from the other parties
who made themselves known within the time limit set
in the notice of
the investigation. The
Commission also gave the interested parties the oppor-
tunity to make their views known in writing and to
request a hearing.

initiation of

E. RESULTS OF THE INVESTIGATION

1. Determination of dumping

(10) As stated above, the calculation of the dumping margin
for the merged entity was based on the data collected
during the investigation period of the investigation that
the existing measures (‘the
led to the imposition of
original investigation period’). On this basis, a weighted
average of the dumping margins established for NLMK
and Viz Stal results in a dumping margin of 0,7 % for the
new merged entity.

2. Lasting nature of changed circumstances

(11)

In accordance with Article 11(3) of the basic Regulation,
it was also examined whether the changed circumstances
could reasonably be said to be of a lasting nature. In this
regard, the new company, OJSC Novolipetsk Steel, co-
operated in the investigation and provided relevant infor-
mation. With regard to the product
this
company’s exports to the Community, cooperation was
also obtained from the following unrelated companies:

flow of

(12)

(13)

(14)

(15)

(16)

On-the-spot investigations were made at the premises of
both of these companies.

Formerly, NLMK exported to the Community via its
related company Stinol AG (Switzerland). However,
it
was found that, since the beginning of 2006, all sales
by NLMK to the Community have been made via the
independent
Intertrade UK and
Tuscany
Moorfield Commodities Company. Stinol AG has been
a dormant company since the end of 2005.

traders

Viz Stal was formerly part of the Duferco group and
exported via Duferco subsidiaries such as Duferco SA
Switzerland and Duferco Commerciale Italy. Since May
2006, all of Viz Stal’s sales to the Community have been
made via the independent trader Moorfield Commodities
Company.

It was also verified that, since its establishment, the new
entity, OJSC Novolipetsk Steel, as regards its imports into
the Community, has only sold via these two traders
thereby continuing to use the same sales channels for
sales of GOES to the Community market.

the undertaking,

In regard to import prices
from the two former
companies, NLMK and Viz Stal, following the acceptance
of a price undertaking in August 2005, NLMK submitted
all relevant monitoring information, as required by the
terms of
to the Commission on a
quarterly basis. Following the takeover by NLMK, Viz
Stal has voluntarily reported its
since August
2006 under the framework of the undertaking. It was
verified that the current price undertaking for the former
NLMK was respected by both the former NLMK and Viz
Stal companies.

sales

It was found, in fact, that the prices at which Viz Stal,
whose products are subject to 0 % anti-dumping duty,
has sold GOES on the Community market since August
2006 were higher than those at which the company had
sold during the original investigation period. It was also
noted that Viz Stal accounted for the bulk of sales of
both companies during the original investigation period,
and continued to export significantly greater quantities of
GOES to the EC than NLMK.

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(17)

(18)

steel products,

it
for GOES will

Since the existing measures were imposed in August
2005, Community and world market prices have
increased significantly. With continuing high world
is not expected that
demand for
to
in the short-
fall
market prices
medium-term. In light of this fact, as well as the fact
that Viz Stal (which continued in 2006 to account for
significantly greater sales quantities of GOES to the EC
than NLMK and was found not to be dumping during
investigation) has increased its prices since
the original
August 2006, it is considered that the findings in recital
(10) above are of a lasting nature.

F. CONCLUSION

It was found in the original investigation that NLMK and
Viz Stal accounted for the entirety of known imports of
GOES into the Community from Russia (1). It was also
found that OJSC Novolipetsk Steel continues to account
for all exports of GOES from Russia to the Community.
In light of this, as well as the fact that the dumping
margin for OJSC Novolipetsk Steel
is at a de minimis
level,
the anti-dumping measures
concerning imports of GOES from Russia should be
repealed and the proceeding terminated in accordance
with Article 9(3) of the basic Regulation.

it is concluded that

(19)

In light of this conclusion, the Commission decided by
Decision 2008/384/EC (2) that the undertaking accepted
from NLMK by Decision 2005/622/EC should be
repealed.

(21)

(22)

Following disclosure, the Community industry claimed
that it has not been substantiated that, as mentioned in
recital (17) above, market prices for GOES will not fall in
the short- to medium-term and, as a result, the termi-
nation of the proceeding is not warranted. In support of
its claim that the proceeding should not be terminated,
the Community industry states that during the next two
years, world capacities for the production of GOES will
be expanded by more than 40 % and will significantly
exceed demand. The bulk of these capacity increases will
occur in the People’s Republic of China. In these circum-
stances, the Community industry considers that Russia
will be pushed away from the Chinese market and will
redirect its exports to the European Union (‘EU’). In light
of the above, the Community industry considers that the
termination of the proceeding is not based on changed
circumstances of a lasting nature.

It is noted, however, that the current investigation has
examined the dumping margin for
the new merged
entity. This has been found to be at a de minimis level
as described in recitals (10) and (18) above. As stated in
recital (11) above, an examination has been made as to
whether or not this dumping margin, as well as the new
structure of the company, can be considered to be of a
lasting nature. The investigation has confirmed the
lasting nature of these changed circumstances. The fact
that Russian exporters might export additional quantities
the
to the EU in the coming years does not alter
conclusion regarding
these
the
changed circumstances,

lasting nature of

G. DISCLOSURE

HAS ADOPTED THIS REGULATION:

(20)

Interested parties were informed of the essential facts and
considerations on the basis of which it was intended to
repeal the measures concerning imports of GOES from
Russia and to terminate the proceeding. All parties were
given an opportunity to comment. The comments
received were not of a nature to change the conclusions.

Article 1

Articles 1(1)
1371/2005 shall be replaced by the following:

and 1(2) of Council Regulation (EC) No

‘1.
A definitive anti-dumping duty is hereby imposed on imports of grain-oriented flat-rolled
products of silicon-electrical steel of a thickness of more than 0,16 mm, originating in the United
States of America, falling within CN codes ex 7225 11 00 (products of a width of 600 mm or more)
(TARIC code 7225 11 00 10) and ex 7226 11 00 (products of a width of less than 600 mm) (TARIC
codes 7226 11 00 11 and 7226 11 00 91).

The rate of

2.
Community-frontier price of
companies below shall be as follows:

the definitive anti-dumping duty applicable, before duty,

free-at-
the products described in paragraph 1 and manufactured by the

to the net

Country

Company

Anti-dumping duty

TARIC additional code

United States of America

AK Steel Corporation,
703 Curtis Street,
Middletown,
Ohio

31,5 %

A669

All other companies

37,8 %

A999’

(1) See recital (61) of Regulation (EC) No 1371/2005.
(2) See page 20 of this Official Journal.

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Article 2

The anti-dumping duties on imports of grain-oriented flat-rolled products of silicon-electrical steel of a
thickness of more than 0,16 mm, originating in Russia, falling within CN codes ex 7225 11 00 (products of
a width of 600 mm or more) (TARIC code 7225 11 00 10) and ex 7226 11 00 (products of a width of less
imposed by Regulation (EC) No
than 600 mm)
1371/2005 are hereby repealed and the proceeding with respect to imports originating in Russia is
hereby terminated.

(TARIC codes 7226 11 00 11 and 7226 11 00 91)

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

Article 3

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

Done at Brussels, 19 May 2008.

For the Council
The President

I. JARC