Commission Regulation (EC) No 488/2008 of 2 June 2008 imposing a provisional anti-dumping duty on imports of citric acid originating in the People's Republic of China
Date: 2008-06-02
Institutions: European Commission
Subjects: China, anti-dumping duty, import, organic acid, originating product

3.6.2008

EN

Official Journal of the European Union

L 143/13

COMMISSION REGULATION (EC) No 488/2008

of 2 June 2008

imposing a provisional anti-dumping duty on imports of citric acid originating in the People's
Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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) and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

A. PROCEDURE

1. Initiation

On 23 July 2007, a complaint concerning imports of
citric acid originating in the People's Republic of China
was lodged by the European Chemical Industry Council
(CEFIC) (the complainant) on behalf of a producer rep-
resenting a major proportion of the total Community
production of citric acid, in this case more than 25 %.

This complaint contained evidence of dumping of the
said product and of material injury resulting therefrom,
which was considered sufficient to justify the initiation of
a proceeding.

On 4 September 2007, the proceeding was initiated by
the publication of a notice of initiation in the Official
Journal of the European Union (2).

2. Parties concerned by the proceeding

officially

The Commission
exporting
producers, importers, users known to be concerned and
their associations, consumers associations, the represen-
the exporting country and the Community
tatives of

advised

the

(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 C 205, 4.9.2007, p. 14.

(5)

(6)

(7)

(8)

the

producers of
anti-dumping
initiation of
proceeding. Interested parties were given the opportunity
to make their views known in writing and to request a
hearing within the time-limit set out in the notice of
initiation.

the

(MET) or

In order to allow exporting producers to submit a claim
for market economy treatment
individual
treatment (IT), if they so wished, the Commission sent
claim forms to the Chinese exporting producers known
to be concerned and to the representatives of the PRC.
Eight exporting producers,
including groups of related
companies, requested MET pursuant to Article 2(7) of
the basic Regulation, or alternatively IT – should the
investigation establish that
the
conditions for MET.

they do not meet

the apparent

In view of
large number of exporting
producers and importers involved in this investigation,
in
sampling was envisaged in the notice of initiation,
accordance with Article 17 of the basic Regulation.

if so,

In order to enable the Commission to decide whether
sampling would be necessary and,
to select a
sample, exporting producers and importers and represen-
tatives acting on their behalf were requested to make
themselves known and to provide, as specified in the
notice of initiation, basic information on their activities
related to the product concerned within 15 days of the
date of publication of the notice of initiation.

As far as the exporting producers are concerned,
in
accordance with Article 17 of the basic Regulation, a
sample was selected based on the largest representative
volume of exports of citric acid to the Community,
which could reasonably be investigated within the time
available. On the basis of the information received from
the exporting producers, a sample of four companies, or
groups of related companies (the sampled companies)
having
the
volume
exports
In terms of export volume
Community was selected.
the
the four sampled companies represent 79 % of
total exports of citric acid from the PRC to the
Community
In
accordance with Article 17(2) of the basic Regulation,
the parties concerned were consulted and raised no
objection.

investigation

period.

during

largest

the

the

to

of

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(9)

All four producers outside the sample have requested an
individual margin,
in accordance with Article 17(3) of
the basic Regulation. Only one company, DSM Citric
Acid (Wuxi) Ltd., has submitted the requested infor-
mation within the timeframe foreseen. Therefore, only
one complete request
for an individual margin was
received. As this request was not considered unduly
burdensome and would not have prevent completion
of
the request was
accepted.

the investigation in good time,

(10) With regard to unrelated Community importers,

groups of

related companies

in
accordance with Article 17 of the basic Regulation, a
sample was selected based on the largest representative
volume of
imports of citric acid to the Community,
which could reasonably be investigated within the time
available. On the basis of the information received from
the unrelated Community importers, a sample of four
companies, or
(the
largest volume of
sampled companies) having the
imports to the Community was selected.
In terms of
import volume the four sampled companies represent
imports of citric acid from the PRC
36 % of the total
to the Community during the investigation period.
In
accordance with Article 17(2) of the basic Regulation,
the parties concerned were consulted and raised no
objection. One of the sampled importers was not able
three
to provide
remaining
total
imports of citric acid from the PRC to the Community
during the investigation period.

requested information. The
the
represent 29 % of

the
importers

(11)

The Commission sought and verified all the information
deemed necessary for a provisional determination of
dumping, resulting injury and Community interest and
carried out verification at the premises of the following
companies:

(a) producers in the Community:

— Yixing Union Biochemical Co. Ltd, Yixing City,

Jiangsu Province,

— Shanxi Ruicheng, Ruicheng County,

Shanxi

Province,

— Laiwu Taihe Biochemistry Co. Ltd, Laiwu City,

Shandong Province,

— Weifang Ensign Industry Co. Ltd, Changle City,

Shandong Province,

— DSM Citric Acid (Wuxi) Ltd, West Wuxi, Jiangsu

Province;

(c) related companies in the PRC:

— Anhui

BBCA Maanshan
Maanshan, Anhui Province,

Biochemical

Ltd,

— China National Xin Liang Storage Transportation

& Trading Corp., Beijing,

— DSM (China) Ltd., Shanghai,

— Shanxi Dimine
Shanxi Province;

International Trade, Taiyuan,

(d) unrelated importers in the Community:

— Azelis group, St. Augustin, Germany,

— Rewe Food Ingredients, Köln, Germany,

— Jungbunzlauer Austria AG, Vienna, Austria,

— Brenntag, Mülheim/Ruhr, Germany.

— S.A. Citrique Belge N.V., Tienen, Belgium;

(12) All interested parties, who so requested and showed that
there were particular reasons why they should be heard,
were granted a hearing.

(b) exporting producers in the PRC:

— Anhui BBCA Biochemical Co., Ltd, Bengbu City,

Anhui Province,

(13)

In view of the need to establish a normal value for
to which MET might not be
exporting producers
granted, a verification to establish normal value on the
basis of data from an analogue country, Canada in this
case (see recitals (40) to (44) below), took place at the
premises of the following company:

— RZBC Co., Ltd, Rizhao, Shandong Province,

(e) producer in Canada:

— TTCA Co., Ltd., Anqiu City, Shandong Province,

— Jungbunzlauer Canada, Port Colborne, Ontario.

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Official Journal of the European Union

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(14)

(15)

(16)

(17)

(18)

3. Investigation period

The investigation of dumping and injury covered the
period from 1 July 2006 to 30 June 2007 (investigation
period or IP). With respect to the trends relevant for the
data
injury
covering the period from 1 January 2004 to 30 June
2007 (period considered).

the Commission analysed

assessment,

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

The product concerned is citric acid (including sodium
citrate), an acidulant and pH regulator for many appli-
cations such as beverages,
food, detergents, cosmetics
and pharmaceuticals. Its main raw materials are sugar/-
molasses, tapioca, corn or glucose (obtained from cereals)
and different agents for the submerged microbial fermen-
tation of carbohydrates.

The product concerned includes citric acid monohydrate
(CAM), citric acid anhydrous (CAA) and trisodium citrate
dihydrate (TSC). These three types form the product
concerned as they share similar basic chemical characte-
ristics and have similar usage. The types of product are
falling within CN Codes 2918 14 00 (CAM, CAA) and
ex 2918 15 00 (TSC). The CN code 2918 15 00 also
includes other
the
product concerned.

salts and esters, which are not

The investigation has shown that the different types of
the product concerned all share the same basic technical
and chemical characteristics and are basically used for the
considered to
same purposes. They
are
this
constitute a single product
proceeding.

therefore
for

the purpose of

2. Like product

The citric acid produced and sold in the Community by
the Community industry and the citric acid produced and
sold in the PRC and in Canada, which served as an
analogue country, were found to have essentially the
same technical and chemical characteristics and the
same basic uses of the citric acid produced in the PRC
and sold for export
to the Community. They are
therefore provisionally considered to be alike within the
meaning of Article 1(4) of the basic Regulation.

C. DUMPING

1. General

(19) As stated in recital (6) above, sampling was envisaged for
exporting producers
in the PRC in the notice of
initiation. In total, eight groups of companies replied to
the sampling questionnaire within the time limits and
provided the requested information. They represented
96 % of
imports reported by Eurostat. The
level of cooperation is therefore considered to be high.
All of exporting producers have requested MET and IT.
four groups of
As mentioned at

(8) above,

the total

recital

companies were selected in the sample on the basis of
their export volume to the Community.

2. Market Economy Treatment (MET)

(20)

Pursuant to Article 2(7)(b) of the basic Regulation,
in
anti-dumping investigations concerning imports originat-
ing in the PRC, normal value shall be determined in
accordance with paragraphs 1 to 6 of the said Article
the
for those producers which were found to meet
criteria laid down in Article 2(7)(c) of the basic Regu-
lation.

(21)

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; costs of major inputs substantially reflect
market values;

2. firms have one clear set of basic accounting records
which are independently audited in line with interna-
tional accounting standards 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.

(22) All eight companies or groups of companies of Chinese
exporting producers
cooperating in this proceeding
requested MET pursuant to Article 2(7)(b) of the basic
Regulation and replied to the MET claim form for
exporting producers within the given deadlines. All of
these groups included both producers of the product
concerned and companies related to the producers and
the
involved in citric acid business.
Commission’s consistent practice to examine whether a
the
group of
conditions
had
requested MET:

related companies as a whole fulfils

for MET. The

following

Indeed,

groups

is

it

— Anhui BBCA Biochemical Co., Ltd,

— RZBC Co., Ltd,

— TTCA Co., Ltd,

— Yixing Union Biochemical Co. Ltd,

— Shanxi Ruicheng,

— Laiwu Taihe Biochemistry Co. Ltd,

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— Weifang Ensign Industry Co. Ltd,

— DSM Citric Acid (Wuxi) Ltd.

(23)

cooperating

above mentioned
the Commission sought
and

For
the
producers,
deemed
submitted in the MET claim at
companies in question as deemed necessary.

necessary

all
the

verified

exporting
information
information
the

the premises of

(24)

Two companies or groups of companies (Laiwu Taihe
and DSM Wuxi) fulfilled all the criteria as summarised
in recital (21) above and could be granted MET.

their assets in order

Three companies or groups of companies (RZBC Co. Ltd,
TTCA Co., Ltd. and Yixing Union Biochemical) have
mortgaged most of
to receive
loans. Despite having mortgaged most of their assets,
they were still
in a position to guarantee loans that
were granted to other companies. As compensation,
RZBC, TTCA Co., Ltd and Yixing Union Biochemical
received similar guarantees for their own loans from
the same companies for which they had acted as a
to
guarantor. The companies used these guarantees
their
obtain further loans amounting to 25-50 % of
total assets. These companies argued that such system
is also applied in market
economy countries and
explicitly provided for under Chinese banking legislation.
However, the information collected during the investi-
gation showed that the banks' policy should normally
be to grant loans only for a fraction of the value of
the assets used as a guarantee and not for an amount
which exceeds such value. Moreover, the banking system
from which the
loans were obtained was under
it was concluded
substantial State influence. Therefore,
that the three abovementioned companies did not meet
criterion 1 as
above.
Accordingly, they could not therefore be granted MET.

summarised in recital

(21)

(25)

(26)

(27) One company, Anhui BBCA Biochemical Co., Ltd,
received a significant sum of money during the IP
(close to 10 % of its total assets or 15 % of it annual
turnover). Moreover, certain rents were received free of
charge. In view of this and the significant level of the
subsidy received, it is considered that criteria 1 and 3 as
summarised in recital (21) above are not fulfilled. The
company's comments in this respect were not such as to
change the nature of the findings.

interest

took place. Therefore,

(28) One company, Shanxi Ruicheng, received private loans
worth around 20 % of assets. For all of these loans, no
repayment terms had been agreed (so far), and no accrual
or payment of
the
company's credit costs were subject
to considerable
company could not present
distortions. Since
contracts for these loans,
it cannot be excluded that
there has been State interference regarding these loans,
which means criterion 1 as summarised in recital (21)
above is not fulfilled. The company's comments in this
respect were not such as to change the nature of the
findings.

the

(29) On the basis of

the eight Chinese
the above, six of
companies or groups of companies that had requested
MET could not show that they fulfil all the criteria set
out in Article 2(7)(c) of the basic Regulation.

(30)

It was therefore considered that MET should be granted
to two companies (Laiwu Taihe and DSM Wuxi) and
rejected for
the remaining six companies/groups of
companies. The Advisory Committee was consulted and
did not object to these conclusions.

3. Individual treatment (IT)

(31)

to Article 2(7)(a) of

the basic Regulation, a
Pursuant
country-wide duty,
is established for countries
falling under that Article, except in those cases where
companies are able to demonstrate that they meet all
criteria set out in Article 9(5) of the basic Regulation.

if any,

For two companies (TTCA Co., Ltd and Weifang Ensign),
the value of land use right and/or fixed assets increased
substantially (500-1 500 %) over a relatively short period
of time, between the moment when they were acquired
or brought into the company as a capital contribution
and a later date (between 1 and 5 years later) when they
were evaluated again. This indicates that the respective
assets were acquired at a value below market price which
would represent a hidden subsidy. Both companies
claimed that
the increase had actually not been so
substantial and was rather in line with the increase
normally observed in China for comparable assets.
However, no evidence was provided to this effect.
Given the advantage that these companies received by
obtaining assets for prices substantially below market
value, compliance with criterion 3 as summarised in
recital (21) above is not satisfied.

(32) All exporting producers who requested MET also claimed
IT in the event that they would not be granted MET.

(33) Of the six companies or groups of companies that were
not be granted MET, all fulfilled all the criteria set out in
Article 9(5) and were granted IT.

4. Normal value

(34) Normal value had to be established for all four sampled
companies, plus the sole company submitting a complete
request for an individual margin, as explained in recital
(9) above (the examined companies).

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4.1. Companies or groups of

companies which could be

4.2. Companies or groups of companies which could not be

granted MET

granted MET

that

their

could be

the basic Regulation,

(35) As far as the determination of normal value is concerned,
in accordance with
the Commission first established,
the
for each of
Article 2(2) of
granted MET
exporting producers
the product
whether
total domestic
concerned were representative,
the total
volume of such sales represented at least 5 % of their
total export sales volume of the product concerned to
the Community. One (DSM Wuxi) of the five examined
companies could be granted MET. For this company
which could be granted MET, the domestic sales of the
product concerned were found to be representative.

sales of
i.e. whether

(36)

(37)

The Commission subsequently examined whether the
domestic sales of each type of the product concerned,
sold domestically in representative quantities, could be
considered as being made in the ordinary course of
trade pursuant to Article 2(4) of the basic Regulation.
This was done by establishing the proportion of profi-
table domestic sales to independent customers, of the
sole exported product type.

For DSM Wuxi, the investigation showed that sales of the
type exported were not made in the
sole product
ordinary course of
trade. Since domestic sales could
not be used in order to establish normal value, another
method had to be applied. In this regard, normal value
was constructed in accordance with Article 2(3) of the
basic Regulation on the basis of the company's manufac-
turing
concerned. When
constructing normal value pursuant to Article 2(3) of
the basic Regulation, a reasonable amount for selling,
general and administrative (SG&A) expenses and profit
was added to the manufacturing costs.

product

costs

the

of

(40) According to Article 2(7)(a) of

the basic Regulation,
normal value for the exporting producers not granted
MET has to be established on the basis of the prices or
constructed value in an analogue country.

(41)

In the notice of initiation, the Commission indicated that
it envisaged using the United States of America as an
appropriate analogue country for the purpose of estab-
lishing normal value for the PRC. Interested parties were
invited to comment on this. Two interested parties
objected to this proposal. RZBC Co. proposed Thailand
as analogue country.

If

these domestic

(mainly to Japan).

(42) As regards Thailand, available information suggests that
the total production of the two Thai producers is only
thereof being
around 10 000 tonnes, 5 000 tonnes
exports
sales
(averaging 2 500 tonnes per company) are compared
with Chinese exports to the Community (more than
50 000 tonnes for the biggest exporters),
it is unlikely
representative
that any of
domestic sales. Moreover, RZBC argues that
the cost
structure of the Thai companies is more likely to be
comparable with the situation in the PRC. The main
to support this likelihood is, however, that
argument
both Thailand and the PRC are Asian countries.
It
should be noted that labour costs typically account for
5-10 % of turnover, so they are certainly not a main
element in the cost structure of any citric acid producer.

the Thai producers has

could also not be

(38) As DSM Wuxi had no domestic sales of the like product
in the ordinary course of trade, SG&A and profit could
not be established according to the methodology set out
in the chapeau of Article 2(6) of the basic Regulation. As
no sampled exporting producers were granted MET,
SG&A and profit
established
according to the methodology set out in Article 2(6)(a)
of the basic Regulation. In addition, as DSM Wuxi sells
almost exclusively citric acid, SG&A and profit could also
not be established according to the methodology set out
in Article 2(6)(b) of the basic Regulation. It was therefore
decided to establish SG&A and profit according to
Article 2(6)(c) of the basic Regulation. In this respect,
the amounts for SG&A and profit for domestic sales of
the like product established for the cooperating company
in the analogue country were used.

(43)

(44)

(39) Where appropriate,

the costs of manufacturing and
SG&A expenses as verified were used in constructing
normal values.

It is worth noting that the Thai companies are signifi-
cantly smaller than the companies in the main producing
countries (China, EU, USA, Canada and Brazil). The
major Chinese producers are around 10-20 times larger
than the Thai producers, while the size of the Canadian
producer
is
the major Chinese
comparable.

producers

and

The USA has been originally selected as analogue
country, and two United States companies
initially
agreed to cooperate. Subsequently, both United States
companies mentioned above withdrew their cooperation.
The sole producer in Canada and two producers in Brazil
were therefore contacted and asked to cooperate with the
investigation. However, only the sole Canadian producer
cooperated in the investigation. Therefore, the prices in
the Canadian market of citric acid sold in the ordinary
course of trade were used as a basis for establishing
normal value for the comparable product types of the
exporting producers not granted MET.

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5. Export price

(45)

The exporting producers made export
to the
Community either directly to independent customers or
through related or unrelated trading companies located
inside and outside the Community. All companies or
groups of companies could be granted either MET or IT.

sales

(52)

the cooperating companies not

included in the
For
sample and not granted individual examination,
the
dumping margin was calculated as a weighted average
of the margins established for all the companies in the
sample.

(46) Where export sales to the Community were made either
directly to independent customers in the Community or
through unrelated trading companies, export prices were
established on the basis of the prices actually paid or
payable for the product concerned in accordance with
Article 2(8) of the basic Regulation.

(47) Where export

to the Community were made
sales
through related trading companies
located in the
Community, export prices were established on the basis
of the first resale prices of these related traders to inde-
pendent customers
to
Article 2(9) of the basic Regulation.

in the Community, pursuant

6. Comparison

(48)

The normal value and export prices were compared on
an ex-works basis and at the same level of trade. For the
purpose of ensuring a fair comparison between the
normal value and export prices, due allowance in the
form of adjustments was made for differences affecting
prices and price
comparability in accordance with
Article 2(10) of the basic Regulation.

(49) On this basis, allowances for transport and insurance
costs, handling,
loading and ancillary costs, packing
costs, credit costs were made where applicable and
justified.

(50)

(51)

For the sales channelled through related importers based
in the Community, an adjustment was applied in
accordance with Article 2(10)(i) of the basic Regulation,
where these companies have been shown to perform
functions similar to that of an independent importer.
the
This adjustment was based on the SG&A of
importers plus a profit, based on data obtained from
unrelated importers in the Community.

7. Dumping margins

For the sampled exporting producers, individual dumping
margins were established on the basis of a comparison of
a weighted average normal value with a weighted average
export price, in accordance with Article 2(11) and (12) of
the basic Regulation. For RZBC, since this group of
companies includes two exporting producers, a single
dumping margin was established as the average of the
dumping margins of the two companies.

(53) Given the high level of cooperation (96 %), referred to at
recital (19) above, a country-wide dumping margin was
set at the same level as the highest margin found for a
cooperating company.

(54) On this basis,

the provisional dumping margins
the CIF Community

expressed as a percentage of
frontier price, duty unpaid, are:

Company

Provisional dumping
margin

Anhui BBCA Biochemical Ltd

DSM Citric Acid (Wuxi) Ltd

RZBC Co.

RZBC (Juxian) Co. Ltd

TTCA Co., Ltd

Yixing Union Biochemical

Laiwu Taihe Biochemistry Co. Ltd

Shanxi Ruicheng

Weifang Ensign Industry Co. Ltd

All other companies

54,4 %

19,6 %

60,1 %

60,1 %

57,3 %

56,8 %

57,5 %

57,5 %

57,5 %

60,1 %

D. INJURY

1. Community production and Community industry

(55) Within the Community, the like product is manufactured
by two companies:
Jungbunzlauer, Austria and S.A.
Citrique Belge in Belgium (part of the DSM group, head-
Jungbun-
quartered in Switzerland). The complainant
total
the
represents a major proportion of
zlauer
known Community production of the like product, i.e.
in this case more than 25 %. Both producers fully coop-
erated in the investigation, but
the second European
producer took a neutral position to the investigation.

(56)

S.A. Citrique Belge N.V. had made some imports from
the PRC in the IP. However, the volumes of its imports
were insignificant (between 1 % and 6 % of production
during the IP – this range is given for confidentiality
thus it was not considered appropriate to
reasons),
exclude
the
this producer
Community industry.

from the definition of

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(57) As the two cooperating producers mentioned in recital
(11) above accounted for 100 % of the total Community
production during the IP, they are deemed to constitute
industry within the meaning of
the Community
the basic Regulation
Article 4(1) and Article 5(4) of
and will hereinafter be referred to as the ‘Community
industry’.

(58) Given that the Community industry comprises only two
producers, data relating to the Community industry had
to be indexed or ranges have been used in order to
preserve confidentiality pursuant
to Article 19 of the
basic Regulation.

2. Community consumption

(59)

Community consumption was established on the basis of the sales volumes of the Community
industry's own production on the Community market and Community import volumes data
obtained from Eurostat.

(60)

Between 2004 and the IP, the Community market for the product concerned and the like product
has strongly increased by 15 %, which is due to the increase in citric acid applications.

2004

2005

2006

IP

Consumption in tonnes

360 000-380 000

360 000-380 000

390 000-410 000

420 000-440 000

Index (2004 = 100)

100

99

106

115

3. Imports from the country concerned

(a) Volume of the imports concerned

(61)

The volume of imports of the product concerned from the PRC into the Community increased
significantly throughout the period considered. Imports in the EU increased by 37 % since 2004.

Imports

2004

2005

2006

IP

PRC tonnes

145 025

151 806

171 703

198 288

Index (2004 = 100)

100

105

118

137

(b) Market share of the imports concerned

(62)

The market share held by imports from the PRC increased steadily by 7 percentage points throughout
the period concerned. In detail, it rose by 2 percentage points between 2004 and 2005, by further 2
percentage points between 2005 and 2006 and by 3 percentage points during the IP. In the IP, the
market share of Chinese imports was 46 %.

(c) Prices

(i) P r i c e e v o l u t i o n

(63)

From 2004 to 2005, the average price of imports of the product concerned originating in the PRC
increased by 3 % and then fell sharply by 9 percentage points from 2005 to 2006. During the IP, the
price remained at the low level of 2006. Overall, prices of imports from the countries concerned
decreased by 6 % during the period considered.

Unit price

PRC (EUR/tonne)

Index (2004 = 100)

2004

588

100

2005

606

103

2006

551

94

IP

553

94

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(ii) P r i c e u n d e r c u t t i n g

(64)

For the determination of the price undercutting the price data pertaining to the IP were analysed. The
relevant sales prices of the Community industry were net prices after deduction of discounts and
rebates. Where necessary, these prices were adjusted to an ex-works level, i.e. excluding freight cost in
the Community. The import prices of the PRC were also net of discounts and rebates and were
adjusted, where necessary, to cif Community frontier with an appropriate adjustment for the customs
duties (6,5 %) and post-importation costs. The latter included also an adjustment for special treatment
costs incurred by importers in the Community to de-cake certain volumes of the product concerned
before further selling. The Community industry's sales prices and the import prices of the PRC were
compared at the same level of trade, namely to independent customers within the Community
market. During the IP, the weighted average price undercutting margin thus calculated, expressed
as a percentage of the Community industry's sales prices, was 17,42 % for the PRC.

4. Situation of the Community industry

(65)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports on the Community industry raised an evaluation of all economic factors having a bearing on
the state of the Community industry during the period considered. For confidentiality reasons, given
that the analysis concerns only two companies, most indicators are presented in indexed form or
ranges are given.

(a) Production, capacity and capacity utilisation

(66)

The Community industry's production increased by 5 % during the period considered and production
capacity also increased by 3 % in order to benefit from the increased consumption. During the period
considered capacity utilisation slightly increased by 2 %.

2004

2005

2006

IP

Production in tonnes
(ranges)

260 000-280 000

265 000-285 000

270 000-290 000

275 000-295 000

Production (index)

100

99

102

105

Production capacity in
tonnes (ranges)

Production capacity
(index)

Capacity utilisation (index)

315 000-335 000

315 000-335 000

320 000-340 000

320 000-340 000

100

100

100

99

103

99

103

102

(b) Sales volume and market shares in the Community

(67) Given that the Community industry comprises only two producers and that the Community market
for citric acid is supplied by only three origins/sources (the Community industry, the PRC, Israel),
data relating to the market shares of the Community industry are presented in an indexed format in
order to preserve the confidentiality of the data submitted in confidence by the Community industry,
pursuant to Article 19 of the basic Regulation.

(68)

The table below shows the Community industry's performance in relation to its sales to independent
customers in the Community. Sales volumes of the Community industry to independent customers in
the Community went up by 5 % from 2004 to the IP. This has to be seen in the light of a 15 %
increase in Community consumption. Against this background, the market share of the Community
industry has been steadily decreasing from 2004 to the IP and in total it was five percentage points
lower in the IP.

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Community Industry

Sales volume (index)

Market share (index)

2004

100

100

2005

98

99

2006

99

94

IP

105

91

(69) Unit sales prices developed as follows:

Unit prices in EUR
(ranges)

2004

2005

2006

IP

750-850

750-850

780-880

780-880

Unit prices (index)

100

100

102

103

The table shows that the price increased slightly by 3 % over the period considered. It is noted that
the main raw materials for the production of citric acid are sugar/molasses or glucose (obtained from
cereals). In addition, energy is also a major cost in producing citric acid. The total weight of energy
cost in the production of citric acid subsequently amounts to 16 % and therefore,
in normal
circumstances, a significant change in the oil and gas prices can be expected to have a direct
impact on the citric acid sales price.

(70)

It was found that world market prices of the major inputs (sugar/molasses, glucose and energy)
increased significantly during the period considered, leading to considerably higher production costs.
This evolution was not reflected in the sales prices of the Community industry as those prices
increased only by 3 % during the same period. Thus,
the
in order not
Community industry only passed on a small fraction of its higher costs.

to lose customers,

(c) Stocks

(71)

The figures below represent the volumes of stocks at the end of each period. The level of stocks
decreased by 28 % to meet the increasing demand on the market.

2004

2005

2006

IP

Stocks in tonnes (ranges)

20 000-25 000

20 000-25 000

20 000-25 000

15 000-20 000

Stocks (index)

100

98

97

72

(d) Investments and ability to raise capital

(72)

The Community industry's annual investments in the production of the like product declined sharply
over the period considered and were limited in the IP to solely maintenance works.

Investments (index)

2004

100

2005

81

2006

82

IP

79

(e) Profitability, return on investment and cashflow

(73)

In view of very high and extraordinary restructuring costs incurred by one Community producer, it
was not considered reasonable to establish the profitability on the basis of the pre-tax net profit.
Therefore, the profitability of the Community industry was established by expressing the operating
profit on the sales of the like product to unrelated customers as a percentage of the turnover of these
sales.

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Profitability on EC sales
(range)

Profitability on EC sales
(index)

Return on total
investments (range)

Return on total
investments (index)

Cash flow (index)

2004

2005

2006

IP

0 %-10 %

0 %-10 %

(– 10 %)-0 %

(– 10 %)-0 %

100

141

– 126

– 166

(– 10 %)-0 %

0 %-10 %

(– 10 %)-0 %

(– 15 %)-(– 5 %)

– 100

100

124

133

– 75

70

– 175

61

(74) Over the period considered, the profitability of the Community industry deteriorated significantly.
The return on total investments was calculated by expressing the operating profit of the like product
as a percentage of the net book value of fixed assets allocated to the like product. This indicator
developed in line with profitability, decreasing significantly over the period considered. With regard
to the cash flow a similar negative trend was found, resulting in a dramatic overall deterioration of
the Community industry's financial situation in the IP.

(f) Employment, productivity and wages

(75)

The number of employees of the Community industry involved with the like product diminished by
9 % between 2004 and the IP. The average labour cost per employee, declined by 11 %.

Number of employees
(index)

Average labour cost per
employee (index)

Productivity (index)

2004

100

100

100

2005

93

90

106

2006

92

88

112

IP

91

89

115

(76)

Restructuring efforts aiming to decrease production cost, rationalisation and reduction in number of
employees resulted in an increased output per worker (15 % increase over the period considered). It
can therefore be concluded that, during the period considered, the Community industry made very
significant progress in terms of cost efficiency.

(g) Magnitude of the dumping margin

(77) As concerns the impact on the Community industry of the magnitude of the actual margins of
dumping, given the volume and the prices of the imports from the country concerned, this impact
cannot be considered to be negligible.

(h) Recovery from past dumping

(78)

In the absence of any information on the existence of dumping prior to the situation assessed in the
present proceeding, this issue is considered irrelevant.

5. Conclusion on injury

(79) During the period considered a number of injury indicators experienced apparent positive develop-
ments: the Community industry, in an effort to enhance its effectivity, managed to increase its sales
and production volume, production capacity, capacity utilisation and productivity while decreasing its
stocks and annual labour.

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(80) However, against a background of increased consumption, its market share shrunk by 9 % over the
period considered. Moreover,
indicators developed negatively: profitability decreased
continuously. The return on investment and cash flow situation developed also negatively. The
increase in raw material prices was only
reason for this development
is that
increase in sales prices was
partially reflected in the sales prices of the like product. The small
insufficient for the Community industry to maintain its profit margin.

the significant

its financial

(81)

In the light of the foregoing, it is provisionally concluded that the Community industry has suffered
material injury within the meaning of Article 3(5) of the basic Regulation.

1. Introduction

E. CAUSATION

(82)

In accordance with Article 3(6) and (7) of the basic Regulation, the Commission examined whether
dumped imports have caused injury to the Community industry to a degree that enables it to be
classified as material. Known factors other than the dumped imports, which could at the same time
be injuring the Community industry, were also examined to ensure that possible injury caused by
these other factors was not attributed to the dumped imports.

(83)

(84)

(85)

2. Effect of the dumped imports

The significant increase in the volume of the dumped imports by 37 % between 2004 and the IP and
of its corresponding share of the Community market, i.e. by 7 percentage points, as well as the
significant undercutting found (between 15 % and 21 % during the IP) coincided with the dete-
rioration of
the Community industry, while average prices of all
exporting producers in the PRC decreased by 6 %.

the economic situation of

Therefore, the effect of this unfair pricing behaviour of the dumped imports from the PRC was that
the prices on the Community market were suppressed and that the Community industry lost market
share to the dumped imports. The Community industry in order not to lose more market share was
unable to pass on its increased input prices to its customers to an extent that would have been
necessary to remain profitable.

In view of the clearly established coincidence in time between, on the one hand, the surge of dumped
imports at prices significantly undercutting the Community industry's prices and, on the other hand,
the Community industry's decrease of profitability and deterioration of the other financial indicators,
it is provisionally concluded that the dumped imports played a determining role in the injurious
situation of the Community industry.

3. Effect of other factors

(a) Imports originating in third countries other than the PRC

(86) According to Eurostat, the main third country from which citric acid is imported is Israel. However,
the market share held by imports from Israel is limited and declining over the period considered,
from 5 % in 2004 to only 3 % during the IP. In addition, average prices of imports from Israel are at
the same level or even exceeding Community prices over the period considered.

Average price (EUR)

Israel

Index (2004 = 100)

2004

807

100

2005

788

98

2006

865

107

IP

839

104

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Official Journal of the European Union

3.6.2008

to the

imports

from Israel,

the findings with regard to these imports,

there are no
Further
significant imports from other countries. On the basis
of
it can
thus provisionally be concluded that
imports other
than from the PRC did not contribute to the material
injury suffered by the Community industry.

manufacture the like product, sugar made up from 6
to 21 % (range is given for confidentiality reasons) of
its cost of manufacturing from January until June 2006
and this did not increase during the IP further than the
increase of the world market prices for sugar.

(b) Rise in the costs of raw materials due to the EU sugar

(93)

market reform

Thus, the investigation has shown that the reform of the
sugar market had no considerable impact on the cost
situation of the Community industry.

(87)

(88)

(89)

(90)

(91)

Some interested parties claimed that any injury suffered
by the Community industry was linked to the rise of
sugar price, used as the main raw material
for the
production of the like product, due to the reform of
sugar regime in the EU and the subsequent abolition of
the production refund granted to the chemical industry.

In this respect it is noted that one Community producer
uses as main raw material mainly molasses, which were
never subject to production refunds although formally
falling under the common agricultural policy for sugar.

The investigation showed that in respect of their usage of
the Community industry was
sugar as raw material,
the
indeed entitled to a production refund under
Common market organisation for
to help
maintain its competitiveness on the world market. The
corresponded to the difference
production refunds
between EU sugar
intervention price after deducting
sugar world market price plus the standard amount
corresponding to the forwarding costs for exporting
Community sugar. Thereby the Community industry
obtained its supplies of sugar at world market prices.

sugar

i.e.

farmers,

chemical

the markets

in the sugar

Since July 2006 this system has been reformed by down-
scaling the protection for the sugar sector. According to
the new system, as stipulated in Council Regulation (EC)
No 318/2006 of 20 February 2006 on the common
sector (1),
organisation of
firstly the
allowed to freely
industry is
negotiate quantities and prices of industrial sugar with
the reference
sugar producers and beet
price methodology and the quotas have been dropped
in this sector. Secondly, the Community industry can
also buy certain quantities of
industrial sugar on the
world market free of duty. Finally, should there be no
sugar available at a price corresponding to the world
price of sugar, the chemical industry would be entitled
to request
the grant of a production refund. The
provision for those production refunds, although still
existing, has since July 2006 not been used. This can
there were
be considered as a strong indication that
sufficient quantities of sugar available at world market
prices.

(92) Moreover, the analysis showed that depending on the
raw material split of the Community industry used to

(1) OJ L 58, 28.2.2006, p. 1. Regulation as last amended by Regulation

(EC) No 1260/2007 (OJ L 283, 27.10.2007, p. 1).

(94) On the basis of the above, it is provisionally concluded
that the sugar market reform did not contribute to the
material injury suffered by the Community industry.

(c) Rising energy prices

(95)

Some interested parties claimed that any injury suffered
by the Community industry was linked to the rise in
costs of energy.

(96)

(97)

(98)

In this respect it is noted that the production of citric
acid is energy intensive where the total weight of energy
cost in the production amounts to 16 % (see recital (69)
above). The cost of energy has indeed risen relatively
moderately throughout the period considered and this
was reflected in the cost of production.

In any event, it is not the increase in the cost of energy
as such that had a negative impact on the financial
situation of the Community industry, but the inability
to pass on those
to the
to their customers due to the price
necessary extent
volumes of
significant
depression caused by
dumped imports.

increased energy costs

the

sugar and its

Furthermore, it was alleged that the risen energy prices
would also indirectly affect the production of citric acid
as the European citric acid industry would compete with
the biofuel
industry for carbohydrates which is one of
the compounds used for the production of citric acid. As
the demand for energy is increasing and therefore the
demand for biofuels as well, biofuel producers would
be in a position to pay more for those carbohydrates
(i.e.
residual molasses, glucose). This
for those carbohydrates up for
would drive the cost
the Community industry. However, as the analysis of
the cost of manufacturing of the Community industry
has shown, see recitals (69) and (92) above, there has
been no increase in the cost of manufacturing for sugar
or molasses which was not linked to the general increase
of sugar on the world market. Therefore, no indirect
industry to the producers of
impact of
citric
is
established. The
therefore dismissed.

the biofuel
acid could be

argument

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Official Journal of the European Union

L 143/25

(99) On the basis of the above, it is provisionally concluded
that the consequences of the rise in energy costs did not
contribute to the material
injury suffered from the
Community industry.

difference between price levels, and there is thus no
requirement to analyse the factors affecting the level of
those prices.

(d) Price cartel of Community industry

(100) Some interested parties claimed that the loss of market
share for
self-inflicted
the European producers was
because of the citric acid cartel (1991-1995) in which
both the complainant and the other European producer,
under its former ownership, participated. They claim that
due to the anti-competitive practices, the sales price was
artificially high and allowed the Chinese producers to
enter the market. An analysis of statistics shows that
the big boost in Chinese citric acid imports occurred
and even more
between 1998 and 1999 (64 %)
between 2002 and 2004 (137 %), several years after
the cartel had finished.

(106) However, even if

the USD/EUR currency fluctuation
between 2004 and the IP was taken into account and
even assuming that all export sales to the Community
were made in USD, there would still be more than 10 %
undercutting.

(107) Consequently,

it was provisionally concluded that

the
appreciation of the euro in respect of the USD was not
such as to break the causal link between the injury estab-
lished and the imports concerned to the Community
industry and the claim was, therefore, rejected.

(101) On the basis of the above, it is provisionally concluded
that the consequences of the anti-competitive practices in
which the Community industry has taken part did not
injury suffered by the
contribute
Community industry.

to the material

(108)

(e) Currency fluctuations

(102) Some interested parties have claimed that the devaluation
of the USD against the euro has favoured imports of
citric acid into the European Community.

(103) Between 2004 and the end of

the IP,

the USD lost
6,01 % of its value against the euro. Neither the price
development of the Community industry nor the import
volumes from the country concerned or from other third
countries reflect the rather low devaluation of the USD
against the euro.

(104) Therefore the devaluation of the USD against the euro
has
to be considered as negligible and cannot be
considered as a major cause of the loss of the market
share of the Community industry.

(105) Moreover,

it

is recalled that

the investigation has to
examine whether
the dumped imports (in terms of
prices and volumes) have caused material injury to the
Community industry or whether such material injury was
due to other factors. In this respect, with regard to prices,
Article 3(6) of
is
necessary to show that the price level of the dumped
therefore merely refers to a
imports causes injury.

the basic Regulation states that

It

it

4. Conclusion on causation

In conclusion, the above analysis has demonstrated that
there was a substantial
increase in volume and market
share of the imports originating in the country concerned
during the period considered, together with a consid-
erable decrease in their sales prices and a high level of
price undercutting during the IP. This increase in market
share of the low-priced imports coincided with a decline
in the Community industry's market share and a price
depression with a drop in profitability.

(109) On the other hand, the examination of the other factors
which could have injured the Community industry
revealed that none of them could have had a significant
negative impact.

(110) Based on the above analysis which has properly distin-
guished and separated the effects of all known factors on
the Community industry from the
the situation of
injurious effects of
is provi-
sionally concluded that the dumped imports originating
in the country concerned have caused material injury to
industry within the meaning of
the Community
Article 3(6) of the basic Regulation.

the dumped imports,

it

F. COMMUNITY INTEREST

on

injury

despite

dumping,

examined whether,

the
(111) The Commission
conclusions
causation,
compelling reasons existed which would lead to the
conclusion that it is not in the Community interest to
adopt measures in this particular case. For this purpose,
and pursuant to Article 21 of the basic Regulation, the
Commission considered the likely impact of measures for
all parties concerned.

and

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1. Interest of the Community industry

(112) As

sales

(11) above,

indicated in recital

the Community
industry is composed of two companies, with production
facilities in Austria and Belgium, which employs in the
range of 500 to 600 persons directly involved in the
production,
like
product.
it is expected that
the price depression on the Community market will
the
come
Community industry will start to recover, as a conse-
quence of which the
the
Community industry should improve.

and
If measures are imposed,

to an end and that

administration of

sales prices of

situation of

financial

the

the Community industry's financial

(113) On the other hand, should no anti-dumping measures be
imposed, it is likely that the negative trend in the deve-
lopment of
indi-
cators, and notably its profitability, will continue. The
Community industry will then continue to lose market
share as it is not able to follow the artificially low market
prices set by imports from the PRC. Therefore, cuts in
certain
and
production
production
the
in
job
capacities
Community will be a likely result.

investments,
and

of
reduction

closure

(114)

In this respect, it is worth mentioning that since 2004
three producers of citric acid in the Community have
closed down.

(115)

In conclusion, the imposition of anti-dumping measures
would allow the Community industry to recover from
the effects of injurious dumping found.

2. Interest of unrelated importers

(116) As described in recital

(10)

four

above,

the Community imports of

sampled
importers sent questionnaire replies and they accounted
for around 36 % of
the
product concerned during the IP. One of the sampled
importers was not able to provide the requested infor-
mation. Therefore, its submitted questionnaire was disre-
garded. The three remaining questionnaire replies were
verified on the spot.

purchase the product under investigation not only from
the PRC but also from other sources in and outside the
Community,
including from the Community industry.
The average profit margin attained by the sampled
importers, on their trading of citric acid, is around 4,4 %.

(118)

a

fraction of

Importers in the Community are not in favour of the
imposition of measures. The
cooperating importers
argued that the imposition of measures would seriously
harm their operations, as they would not be able to pass
on the price increase to users. In this respect, the impo-
sition of an anti-dumping duty on imports from the PRC,
will most likely lead to an upwards correction of market
prices. The effect of the duties would in all likelihood be
diluted in the importers overall result as citric acid only
turnover. The
represents
significant undercutting still found after adjustment of
the cif Community border prices for post-importation
room for a price
costs also suggests
importers
It can thus not be excluded that
increase.
can pass on a part of the duties to their customers in
the food and beverages industry. In any event, in view of
the limited weight of
in the
sales of
importers' activities, and the profit margin currently
attained both overall and in view of their sales of citric
acid only,
it is expected that the duty as provisionally
established will not affect the financial situation of these
economic operators to a significant extent.

this product

there is

their

total

that

(119) Further,

full capacity,

it was claimed that if duties are imposed, this
could lead to a duopolistic market situation on the
Community market, excluding competition from third
countries. Some interested parties raised concerns about
the ability of European producers to meet the increasing
European demand. The investigation has shown that,
even if operating at
the Community
industry would only have been able to meet 75 % of
the European demand during the IP. In this respect,
it
needs to be underlined that anti-dumping duties should
imports, but rather
not have the effect of stopping all
In combination with
restoring a level playing field.
it is
imports from other third countries such as Israel,
provisionally
a
sufficient
demand.
However, the level of Chinese imports will be closely
examined after the imposition of provisional measures
to analyse the supply situation on the EU market.

this would ensure
Community

concluded that
to meet

supply

(117) The overall weight represented by citric acid in the total
turnover of these importers' activities was very small. On
an average basis, around 1 % of these importers' activities
could be linked to imports of citric acid from the PRC,
to
which is nonetheless considered to be important
importers
complete

range. Certain

product

their

(120) Although importers/distributors are against

the impo-
sition of measures, it can be concluded on the basis of
the information available that any advantage they may
gain from not having anti-dumping measures imposed is
outweighed by the interest of the Community industry in
having the effect of unfair and injurious trading practices
from the PRC neutralised.

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3. Interest of users

(121) Ten users filled in a users' questionnaire. All replies were
incomplete and they therefore could not be fully included
in the analysis, although it clearly appears that citric acid
is used in many different applications but only in small
quantities. Thus, the impact of any anti-dumping duty
would not be
cost of
production. Only one cooperating user indicated that
the imposition of any measures would have a major
impact on its business without
further substantiating
this argument.

significant

their

total

for

(122)

In the light of the above and given the overall low degree
of cooperation, the situation of users in the Community
is therefore unlikely to be substantially affected by the
proposed measures.

4. Conclusion on Community interest

(123) The effects of

In view of

the imposition of measures can be
expected to afford the Community industry the oppor-
tunity to regain lost sales and market shares and to
the unfavourable
improve its profitability.
financial situation of the Community industry, there is
a real risk that, in absence of measures, the Community
industry may close down production facilities and lay off
workforce. In general, the users in the Community would
in the
also benefit
the supply of sufficient volumes of citric
sense that
acid would not be
the overall
jeopardised whilst
increase in purchase price of citric acid would be
it is provisionally
moderate. In the light of the above,
concluded that no compelling reasons exist
for not
imposing measures in the present case on Community
interest grounds.

from the imposition of measures,

G. PROPOSAL FOR PROVISIONAL ANTI-DUMPING
MEASURES

(124)

the conclusions reached with regard to
In view of
dumping, injury, causation and Community interest, pro-
visional measures should be imposed in order to prevent
further injury to the Community industry by the dumped
imports.

In this respect, a
in the absence of dumped imports.
target profit of 9 % has been applied, based on the
profit that was achieved before the major increase in
Chinese imports of citric acid.

2. Provisional measures

(126)

In the light of the foregoing and pursuant to Article 7(2)
of the basic Regulation, it is considered that a provisional
anti-dumping duty should be imposed at the level of the
lowest of the dumping and injury margins found,
in
accordance with the lesser duty rule, which is in all
cases the injury margin found.

(127) The level of cooperation was very high, it was therefore
considered appropriate to set the duty for the remaining
companies, which had not cooperated in the investi-
gation, at the level of the highest duty to be imposed
on the companies cooperating in the investigation.
Therefore, the residual duty was set at the rate of 49,3 %.

(128) Consequently, the provisional anti-dumping duties should

be as follows:

Sampled exporters

Proposed anti-dumping
duty

Anhui BBCA Biochemical Ltd Co. Ltd

42,2 %

DSM Citric Acid (Wuxi) Ltd

RZBC Co.

RZBC (Juxian) Co. Ltd

TTCA Co., Ltd

Yixing Union Biochemical

Laiwu Taihe Biochemistry Co. Ltd

Shanxi Ruicheng

Weifang Ensign Industry Co. Ltd

All other companies

13,2 %

43,2 %

43,2 %

49,3 %

38,8 %

43,2 %

43,2 %

43,2 %

49,3 %

1. Injury elimination level

(125) The level of

the provisional anti-dumping measures
should be sufficient
to eliminate the injury to the
Community industry caused by the dumped imports,
without exceeding the dumping margins found. When
calculating the amount of duty necessary to remove the
effects of the injurious dumping, it was considered that
any measures should allow the Community industry to
obtain a profit before tax that could be reasonably
i.e.
achieved under normal conditions of competition,

(129) The above anti-dumping measures are provisionally
established in the form of ad valorem duties. In consid-
eration of the fact that the production capacity of the
Community Industry may be not sufficient to satisfy the
needs of the Community market (see recital 119), the
level of imports from the PRC after the imposition of
provisional duties will be examined closely. Should it
appear
that some difficulties arise in the supply of
citric acid in the Community market, consideration will
be given to apply an alternative form of measures.

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3. Final provision

(130)

In the interest of sound administration, a period should
be fixed within which the interested parties which made
themselves known within the time limit specified in the
initiation may make their views known in
notice of
writing and request a hearing. Furthermore,
it should
be stated that the findings concerning the imposition
of duties made for the purposes of this Regulation are
provisional and may have to be reconsidered for the
purpose of any definitive measures.

(131) The individual anti-dumping duty rates specified in this
Regulation were established on the basis of the findings
of the present investigation. Therefore, they reflect the
situation found during that
investigation with respect
to these companies. These duty rates (as opposed to
the
other
companies) are thus exclusively applicable to imports
of products originating in the PRC and produced by
these companies and thus by the specific legal entities

country-wide

applicable

duty

all

to

Imported products produced by any other
mentioned.
company not specifically mentioned in the operative
this Regulation with its name and address,
part of
including
specifically
mentioned, cannot benefit from this rate and shall be
subject to the country-wide duty.

to the one

entities

related

(e.g.

(132) Any claim requesting the application of an individual
following a
company anti-dumping duty rate
change in the name of
the entity or following the
setting up of new production or sales entities) should
be addressed to the Commission forthwith with all
relevant information,
in particular any modification in
the company's activities linked to production, domestic
and export sales associated with, for example, that name
change or
that change in the production and sales
If appropriate, the Regulation will accordingly
entities.
be amended by updating the list of companies benefiting
from individual duties,

HAS ADOPTED THIS REGULATION:

A provisional anti-dumping duty is hereby imposed on imports of citric acid and of trisodium citrate
1.
dihydrate falling within CN codes 2918 14 00 and ex 2918 15 00 (TARIC code 2918 15 00 10) and
originating in the People's Republic of China.

Article 1

2.
The rate of the provisional anti-dumping duty applicable to the net, free-at-Community-frontier price,
before duty, of the products described in paragraph 1 and produced by the companies below shall be as
follows:

Company

Anti-Dumping
duty (%)

TARIC Additional
Code

Anhui BBCA Biochemical Co., Ltd — No 73, Fengyuandadao Road, Bengbu City
233010, Anhui Province, PRC

DSM Citric Acid (Wuxi) Ltd — West Side of Jincheng Bridge, Wuxi 214024, Jiangsu
province, PRC

RZBC Co., Ltd — No 9 Xinghai West Road, Rizhao, Shandong Province, PRC

RZBC (Juxian) Co. Ltd, West Wing, Chenyang North Road,
Province, PRC,

Ju County Shandong

TTCA Co., Ltd — West, Wenhe Bridge North, Anqiu City, Shandong Province, PRC

Yixing Union Biochemical Co., Ltd — Industry Zone Yixing City 214203,
Province, PRC

Jiangsu

Laiwu Taihe Biochemistry Co. Ltd, PRC

Shanxi Ruicheng Yellow River Chemicals Co. Ltd., PRC

Weifang Ensign Industry Co. Ltd, PRC

All other companies

42,2

13,2

43,2

43,2

49,3

38,8

43,2

43,2

43,2

49,3

A874

A875

A876

A877

A878

A879

A880

A881

A882

A999

3.6.2008

EN

Official Journal of the European Union

L 143/29

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

3.
subject to the provision of a security, equivalent to the amount of the provisional duty.

4.

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

Article 2

interested parties may request
Without prejudice to Article 20 of Council Regulation (EC) No 384/96,
disclosure of the essential facts and considerations on the basis of which this Regulation was adopted, make
their views known in writing and apply to be heard orally by the Commission within one month of the date
of entry into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the
application of this Regulation within one month of the date of its entry into force.

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

Article 3

Article 1 of this Regulation shall apply for a period of six months.

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

Done at Brussels, 2 June 2008.

For the Commission

Peter MANDELSON
Member of the Commission