Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of powdered activated carbon originating in the People's Republic of China
Date: 2008-06-06
Institutions: European Commission
Subjects: China, anti-dumping duty, coal, dumping, import, originating product

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.6.2008 
COM(2008) 341 final 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of powdered activated carbon 
originating in the People's Republic of China 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of 
22 December 1995 on protection against dumped imports from countries not members of the 
European  Community,  as  last  amended  by  Council  Regulation  (EC)  No 2117/2005  of  21 
December 2005 ('the basic Regulation'). 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and is the 
result  of  an  investigation  which  was  carried  out  in  line  with  the  substantive  and  procedural 
requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

Council Regulation (EC) No 1011/2002 of 10 June 2002 imposing a definitive anti-dumping 
duty on imports of powdered activated carbon (PAC) originating in the People's Republic of 
China. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

(2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  investigation  have  already  had  the  possibility  to  defend 
their interests during the investigation, in line with the provisions of the basic Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not foresee a general impact assessment but contains an exhaustive 
list of conditions that have to be assessed. 

(3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On 13 June 2007, the Commission announced by a notice, published in the Official Journal of 
the European Union (OJ C 131, 13.06.2007, Notice of initiation (2007/C 131/09), p. 14), the 
initiation  of  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic  Regulation,  concerning 
imports into the Community of PACoriginating in the People's Republic of China.  

The  anti-dumping  proceeding  was  initiated  following  a  request  for  review  lodged  on 
12 March 2007 by the European Chemical Industry Council (CEFIC) on behalf of producers 
representing  a  major  proportion,  in  this  case  more  than  50%,  of  the  total  Community 
production of PAC. 

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The enclosed Commission proposal for a Council Regulation contains the conclusions of the 
investigation  on  the  continuation  or  recurrence  of  injurious  dumping  and  on  whether  the 
maintenance  of  the  anti-dumping  measures  is  not  against  the  overall  interest  of  the 
Community.  

It is proposed that the Council adopts the attached proposal for a Regulation which should be 
published in the Official Journal of the European Union. 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against  dumped 
imports from countries not members of the European Community, as last amended by Council 
Regulation (EC) No 2117/2005 of 21 December 2005. 

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Community.  The  subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason. The form 
of  action  is  described  in  the  above-mentioned  basic  Regulation  and  leaves  no  scope  for 
national  decision.  indication  of  how  financial  and  administrative  burden  falling  upon  the 
Community,  national  governments,  regional  and  local  authorities,  economic  operators  and 
citizens is minimized and proportionate to the objective of the proposal, is not applicable. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate because the above-mentioned basic Regulation does not 
foresee alternative options. 

(4) 

BUDGETARY IMPLICATION 

The proposal has no implications for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of powdered activated carbon 
originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 Community1 ('the basic 
Regulation'), and in particular Articles 9 and 11(2) thereof, 

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

Whereas: 

1. 

1.1. 

(1) 

(2) 

1.2. 

(3) 

(4) 

PROCEDURE 

Measures in force 
By  Regulation  (EC)  No  1006/96  of  3  June  19962,  following  an  anti-dumping 
investigation,  the  Council  imposed  a  definitive  anti-dumping  duty  of  EUR  323  per 
tonne on imports on powdered activated carbon originating in the People's Republic of 
China (PRC) ('the original investigation'). 
By  Regulation  (EC)  No  1011/2002  of  10  June  20023,  following  an  expiry  review 
pursuant to Article 11(2) of the basic Regulation, the Council renewed the imposition 
of  the  definitive  anti-dumping  duty  on  imports  on  powdered  activated  carbon 
originating in the PRC ('the first expiry review investigation'). 

Request for a review (Present investigation) 
Following the publication of a notice of impending expiry4, the Commission received 
a request on 12 March 2007 for an expiry review pursuant to Article 11(2) of the basic 
Regulation. 

The  request  was  lodged  by  the  European  Chemical  Industry  Council  (CEFIC)  ('the 
applicant')  on  behalf  of  two  producers  representing  a  major  proportion,  in  this  case 
more than 50%, of the total Community production of powdered activated carbon. The 
request was based on the grounds that the expiry of the measures would be likely to 
result in continuation or recurrence of dumping and injury to the Community industry. 

(5) 

Having  determined,  after  consulting  the  advisory  committee,  that  sufficient  evidence 
existed for the initiation of the expiry review, the Commission initiated this review on 

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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). 
OJ L 134, 5.6.1996, p.20. 
OJ L 155, 14.6.2002, p.1. 
OJ C 228, 22.9.2006, p.3. 

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1.3. 

(6) 

(7) 

(8) 

13 June 2007, by a notice published in the Official Journal of the European Union (the 
"notice of initiation")5. 

Parties concerned by the investigation 

The Commission officially advised the exporters/producers, the representatives of the 
exporting  country,  importers,  suppliers,  producers,  users  in  the  Community  and  the 
applicant  of  the  initiation  of  the  expiry  review.  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.  All  interested  parties,  who  so  requested 
and showed that there were particular reasons why they should be heard, were granted 
a hearing. 

(a) 

Sampling of exporters/producers in the PRC 

In view of the apparent large number of exporters/producers in the PRC (132 listed in 
the  review  request),  it  was  considered  appropriate  to  examine  whether  sampling 
should  be  used  in  the  expiry  review  in  conformity  with  Article  17  of  the  basic 
Regulation. In order to enable the Commission to decide whether sampling would be 
necessary  and,  if  so,  to  select  a  sample,  the  exporters/producers  were  requested, 
pursuant to Article 17(2) of the basic Regulation, to make themselves known within 15 
days  of  the  initiation  of  the  expiry  review  and  provide  the  Commission  with  the 
information  requested  in  the  notice  of  initiation.  However,  no  exporter/producer 
replied  to  the  sampling  questions  or  otherwise  made  itself  known  in  response  to  the 
notice of initiation and, thus, sampling for exporters/producers was not at issue. 

(b) 

Sampling of Community importers 

In view of the apparent large number of importers in the Community (33 listed in the 
review request), it was considered appropriate to examine whether sampling should be 
used  in  the  expiry  review  in  conformity  with  Article  17  of  the  basic  Regulation.  In 
order to enable the Commission to decide whether sampling would be necessary and, 
if  so,  to  select  a  sample,  importers  in  the  Community  were  requested,  pursuant  to 
Article 17(2) of the basic Regulation, to make themselves known within 15 days of the 
initiation  of  the  expiry  review  and  provide  the  Commission  with  the  information 
requested in the notice of initiation. 

(9) 

However, since only three out of the 33 importers which were contacted replied to the 
sampling  questions  and  agreed  to  co-operate,  it  was  decided  that  sampling  was  not 
warranted in this case. 

1.4. 

Questionnaires and verification 

(10)  Questionnaires  were  sent  to  the  representatives  of  the  exporting  country  and  to  all 
known importers, suppliers, producers, users in the Community and producers in the 
analogue  country,  the  United  States  of  America  ('USA')  (see  recitals  (22)  to  (24) 
below). 

(11)  Complete  replies  to  the  questionnaires  were  received  from  three  suppliers  of  raw 
materials  to  the  Community  industry,  three  users,  two  Community  producers 
supporting the request for the review, one additional producer opposing the proceeding 

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OJ C 131, 13.6.2007, p.14 

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and  one  producer  in  the  analogue  country.  No  exporting  producer  in  the  PRC  co-
operated. 

(12)  The  Commission  sought  and  verified  all  the  information  deemed  necessary  for  its 
analysis and carried out verification visits at the premises of the following companies: 

(a) 

Community producers 

– 

– 

Norit  B.V.,  Amersfoort,  the  Netherlands,  and  Glasgow,  United 
Kingdom 

CECA S.A., Paris and Bordeaux, France. 

(b) 

Other producer 

– 

Chemviron Carbon S.A., Feluy, Belgium 

(c) 

Community suppliers 

– 

– 

– 

Klasmann & Deilmann GmbH, Geeste, Niedersachsen, Germany 

Rheinbraun Brennstoff GmbH, Cologne, Germany 

WTL International Ltd., Macclesfield, Cheshire, United Kingdom 

(d) 

Producer in the analogue country 

– 

Norit Americas Inc., Marshall, Texas, USA 

1.5. 

Review investigation period 

(13)  The  investigation  of  the  likelihood  of  continuation  or  recurrence  of  dumping  and 
injury covered the period from 1 April 2006 to 31 March 2007 (review investigation 
period or 'RIP'). 

(14)  The  examination  of  trends  relevant  for  the  assessment  of  the  likelihood  of  a 
continuation or recurrence of injury covered the period from 1 January 2003 up to the 
end of the RIP ('period considered'). 

2. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(15)  The  product  under  consideration  is  the  same  as  in  the  original  investigation  and  the 
subsequent expiry review, i.e. powdered activated carbon ('PAC') currently classifiable 
within CN code ex 3802 10 00. PAC is a micro-porous form of carbon, obtained from 
a  variety  of  raw  materials  such  as  coal,  lignite,  peat,  wood,  olive  stones  or  coconut 
shells, which are activated by means of steam or chemical process. PAC is a very fine 
powder. Activated carbons are also sold in granular forms (granulated activated carbon 
'GAC') which are not covered by the measures in force nor by this review. 

(16)  As confirmed by the previous expiry review PAC is defined as consisting of at least 90 

% by mass (% m/m) of particles with a size less than 0,5 mm.  

(17)  The  general  applications  of  PAC  are  water  treatment  (potable  water  as  well  as 
treatment of waste water), gas and air purification, solvent recovery, decolourisation of 
sugar,  vegetable  oils  and  fats,  deodorisation  and  purification  of  different  products  in 
the  chemical  (i.e.  organic  acids),  pharmaceutical  (i.e.  gastrointestinal  capsule)  and 
food industries (i.e. alcoholic and soft drinks). 

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(18)  The present investigation has confirmed that PAC produced and sold by Community 
producers and PAC imported from the PRC as well as PAC produced and sold in the 
the analogue country (USA) share the same basic physical and technical characteristics 
and  are  in  all  respects  identical.  Therefore,  they  are  considered  to  be  like  products 
within the meaning of Article 1(4) of the basic Regulation. 

3. 

3.1. 

(19) 

LIKELIHOOD OF A CONTINUATION AND/OR RECURRENCE OF DUMPING 

Preliminary remarks 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  the  purpose  of  an  expiry 
review  is  to  determine  whether  the  expiry  of  the  measures  is  likely  to  lead  to  a 
continuation or recurrence of dumping. 

importer  had  also  co-operated  with 

(20)  At the outset, the volumes exported to the Community during the RIP were examined. 
It should be noted that, since none of the Chinese exporting producers or any importer 
in  the  Community  co-operated  with  the  present  investigation,  export  data  were 
established in accordance with Article 18 of the basic Regulation, i.e. on the basis of 
information available. In this respect, it is recalled that no Chinese exporting producer 
or  Community 
the  first  expiry  review 
investigation.  However,  since  the  imposition  of  a  definitive  anti-dumping  duty  in 
1996, Eurostat statistics have been available for imports of PAC. These statistics have 
been confirmed by market research information submitted by the Community industry. 
On  this  basis,  and  in  the  absence  of  any  other  more  reliable  information,  these 
statistics were used. They showed that during the RIP some 529 tonnes of PAC were 
imported from the PRC into the Community. This quantity is small in comparison with 
the  quantity  imported  into  the  Community  before  the  imposition  of  measures,  but  it 
still represented more that 1 % of the PAC consumption in the Community during the 
RIP. However, an indicative dumping calculation was made. 

3.2. 

(21) 

Likelihood of continuation of dumping 

In  the  context  of  the  likelihood  of  a  continuation  of  dumping,  it  was  investigated 
whether dumping of exports from the PRC was currently taking place. This was done 
on  the  grounds  that,  if  dumping  was  taking  place  now,  it  could  be  an  important 
indication that dumping would be likely to continue in the future, should the measures 
be allowed to expire. 

(a) 

Analogue country 

(22)  Since the PRC is an economy in transition, normal value was determined on the basis 
of  information  obtained  in  an  appropriate  market  economy  third  country  selected  in 
accordance with Article 2(7) of the basic Regulation.  

(23)  The USA were selected as an appropriate analogue country in the original and the first 
expiry review investigation. As indicated in the Notice of Initiation, the Commission 
envisaged using the USA as an appropriate analogue country also in the present expiry 
review investigation. In this respect, the investigation revealed that the USA were the 
most appropriate analogue country for the following reasons: 

The  USA  are  one  of  the  largest  producing  countries  of  PAC  world-wide.  Figures 
submitted by the co-operating producer in the USA and the Community producers in 
the  request  for  review  showed  that  the  production  volume  of  both  countries  is 
comparable. Furthermore, as mentioned in recital (18), PAC produced and sold in the 

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USA was found to be a like product to PAC produced in the PRC and exported to the 
Community.  Domestic  sales  made  by  the  co-operating  US-producer  (in  terms  of 
volume) were representative when compared to the imports of PAC from the PRC into 
the  Community.  Finally,  the  level  of  competition  in  the  USA  was  found  to  be  very 
high.  Indeed,  in  addition  to  the  competition  amongst  several  producers  in  the  USA, 
there was also competition from imported PAC (mainly from the PRC, Sri Lanka and 
the  Philippines),  which  could  be  imported  during  the  RIP  without  quantitative 
restrictions or import duties. Furthermore, the main US producer of PAC was willing 
to co-operate.  

(24)  Given  the  above,  and  as  no  comments  were  received  on  the  choice  of  the  analogue 
country  by  any  of  the  interested  parties,  the  USA  was  consequently  selected  as  the 
most appropriate analogue country. 

(b) 

Normal value  

(25) 

In accordance with Article 2(1) of the basic Regulation, it was considered whether the 
representative domestic sales of PAC in the USA were, considering the prices charged, 
made  in  the  ordinary  course  of  trade.  In  this  respect,  it  was  examined  whether 
domestic  sales  were  profitable.  For  this  purpose,  the  full  cost  of  production  of  each 
grade  during  the  RIP  was  compared  to  the  average  price  of  the  sales  transactions  of 
each grade made during the same period. It was found that the majority of sales were 
made  at  a  profit.  The  investigation  also  revealed  that  all  sales  were  made  to 
independent customers. As a result the prices paid or payable for PAC by independent 
customers  on  the  US  domestic  market  in  the  ordinary  course  of  trade  were  used  to 
determine the normal value in accordance with Article 2(1) of the basic Regulation. 

(c) 

Export price 

(26)  As  mentioned  above,  no  Chinese  exporting  producer  or  any  importer  of  PAC  in  the 
Community  co-operated  with  this  expiry  review  investigation.  Therefore,  the  export 
price was determined on the basis of facts available in accordance with Article 18 of 
the basic Regulation. As already mentioned in recital (20) above and in the absence of 
any other more reliable information, this was done by reference  to the average  price 
from the Eurostat (TARIC) import statistics during the RIP. 

(d) 

Comparison 

(27)  For the purpose of ensuring a fair comparison between normal value and export price, 
account  was  taken  of  differences  in  factors,  which  were  found  to  affect  prices  and 
price  comparability  in  accordance  with  Article  2(10)  of  the  basic  Regulation.  In  this 
regard,  adjustments  for  differences  in  freight,  insurance  and  inland  transport  costs 
were made. In the absence of any information from Chinese exporting producers, the 
adjustments on the export price were based on facts available, in this case on relevant 
information given in the review request. 

(e) 

Dumping margin 

(28)  The  comparison  of  the  weighted  average  normal  value  with  the  weighted  average 
export  price  of  all  grades  showed  that  exports  of  PAC  to  the  Community  were  still 
being dumped at a substantial margin during the RIP. The dumping margin was equal 
to  the  amount  by  which  the  normal  value  exceeded  the  prices  for  exports  to  the 

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Community.  The  weighted  average  dumping  margin  exceeded  20  %.  Although  this 
dumping margin had to be based, to a large extent, on facts available because of the 
non-cooperation  of  Chinese  exporting  producers,  it  is  nevertheless  indicative  of 
current Chinese export behaviour. Obviously, had there been cooperation by Chinese 
exporting producers, this would have allowed a more precise calculation. 

3.3. 

(29) 

Development of exports to the Community should measures expire 

It  was  also  considered  how  exports  of  PAC  from  the  PRC  to  the  Community  would 
develop should measures expire. For that purpose the spare production capacity in the 
PRC, the export volume and the domestic market in the PRC as well as the Chinese 
price behaviour to other third countries were examined. In the absence of co-operation 
from exporting producers, market research information submitted by the Community 
industry was used.  

(f) 

Production capacity, domestic market in China and export volume 

(30)  The  information  available  to  the  Commission  showed  that  the  PRC,  with  some  300 
manufacturers, is the largest producer and exporter of activated carbons (granular and 
powdered) in the world. During the RIP, the Chinese production capacity of PAC was 
estimated  at  about  190 000  tonnes,  of  which  around  70 000  tonnes  were  sold 
domestically  and  around  60  000  tonnes  exported.  A  spare  capacity  of  approximately 
60 000  tonnes  was  thus  available.  It  is  noted  that  this  spare  capacity  exceeds  the 
Community consumption in the RIP. 

(31)  The main export markets for Chinese PAC are South East Asia, Japan, the Republic of 
Korea,  the  USA  and  Europe.  However,  according  to  the  evidence  submitted  by  the 
Community  industry,  the  additional  need  for  imported  PAC  in  third  countries  would 
be  minimal  and  the  capability  to  absorb  further  Chinese  exports  therefore  almost 
negligible. Furthermore, it should be noted that a number of potential export markets 
in the Asian region, such as India and Indonesia, apply high customs tariffs for PAC. 

(32)  On the basis of data available, it is estimated that the annual growth rate of domestic 
consumption, production and production capacity of PAC in the PRC will be around 5 
%.  Given  that  the  USA  imposed  anti-dumping  measures  on  Chinese  steam  activated 
PAC  in  April  2007  (i.e.  after  the  IP),  exports  may  even  decrease.  Thus,  the  spare 
capacities will certainly not decrease but in all likelihood even increase in the future. 

(33)  Furthermore,  according  to  the  information  available  to  the  Commission,  the  Chinese 
activated carbon industry is currently facing financial problems, in particular because 
the  low  capacity  utilisation  is  leading  to  increased  costs.  This  also  increases  the 
pressure to export at dumped prices in order to have better economies of scale. 

(34) 

In these circumstances, should the measures be removed and the Community become 
an  attractive  export  market,  it  is  very  likely  that  the  Chinese  producers  will  increase 
their capacity utilisation in order to export significant volumes and, thus, reduce their 
costs and improve their financial situation. 

(g) 

Price behaviour on third country markets 

(35)  An analysis of the prices of Chinese exports to other third countries, such as the USA, 
revealed that exports of PAC were also made at very low prices even dumped at very 
significant  rates  (higher  than  the  dumping  margin  established  in  the  present  expiry 

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review  investigation,  see  recital  (28)  above).  It  is  obvious  that  there  is  a  history  of 
Chinese dumping practices for this product. 

(36)  Consequently,  should  the  anti-dumping  duty  be  removed,  the  Community  market 
would most likely attract large quantities of low priced dumped Chinese PAC. In this 
respect,  it  should  also  be  noted  that  Chinese  imports  remained,  albeit  in  smaller 
quantities,  present  on  the  Community  market  since  the  imposition  of  anti-dumping 
measures  in  1996,  which  will  facilitate  an  increase  of  imports  should  measures  be 
allowed to expire. 

3.4. 

(37) 

Conclusion on the likelihood of a continuation of dumping 

Imports of Chinese PAC during the RIP were made above de minimis levels and were 
still  dumped.  It  was  established  that  dumping  continued  and  that  there  is  a  strong 
likelihood that it would continue should measures be allowed to expire. Moreover, in 
such  a  case  it  is  likely  that  exports  of  Chinese  PAC  to  the  Community  will 
significantly  increase  (and  return  to  at  least  the  levels  found  in  the  original 
investigation)  since  there  are  significant  spare  capacities  available  in  the  PRC.  The 
prices  of  these  additional  import  quantities  will  in  all  likelihood  be  dumped  at 
significant levels. 

4. 

DEFINITION OF THE COMMUNITY INDUSTRY 

(38)  The  investigation  showed  that  PAC  is  currently  produced  by  a  limited  number  of 
producers  in  the  Community.  The  two  applicant  producers  and  two  other  producers, 
which  did  not  cooperate  in  the  investigation,  are  following  the  traditional  process  of 
mixing up the necessary raw material to obtain PAC by activation processes.  

(39) 

It was also found that certain other producers in the Community manufacture PAC by 
milling  GAC  imported  from  the  PRC.  On  the  basis  of  estimates  provided  by  the 
Community industry, out of the GAC being imported from the PRC, approximately 10 
000 tonnes are being milled into PAC in the Community. Indeed, one other producer 
that  co-operated  with  the  Commission  during  the  investigation  manufactured  PAC 
using  this  method.  However,  as  was  the  case  in  the  first  review  investigation,  these 
quantities  have  not  been  included  in  the  calculation  of  total  Community  production 
and of Community consumption.  

(40)  The two Community producers on whose behalf the request for the review was lodged 
co-operated  with  the  investigation.  They  represented  around  80%  of  Community 
production  of  PAC  and  therefore  constitute  the  Community  industry  within  the 
meaning of Article 4(1) and 5(4) of the basic Regulation.  

(41)  As  the  Community  industry  is  constituted  by  two  Community  producers,  the 
information concerning the Community industry had to be indexed where appropriate 
to preserve confidentiality of sensitive data. 

5. 

SITUATION ON THE COMMUNITY MARKET 

5.1. 

Consumption on the Community market 

(42)  Community consumption (EU-27) was established on the basis of: 

– 

– 

Sales  on  the  Community  market  by  the  two  co-operating  Community 
producers 

Sales  on  the  Community  market  by  non-cooperating  Community 
producers of PAC (as estimated by the applicant) 

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– 

Import statistics as derived from Eurostat. 

(43)  As  already  mentioned  in  recital  (39),  there  are  certain  quantities  of  PAC  being 
manufactured by milling GAC imported from the PRC, which have not been included 
in the calculation of Community consumption. 

(44)  On the basis of the above, Community consumption of PAC has increased by 7% over 
the period considered. An increase between 2003 and 2005 of 10% was followed by a 
small decline in 2006; consumption remained thereafter stable during the RIP. 

2003 

2004 

2005 

2006 

RIP 

38 163 

39 499 

41 983 

40 697 

40 783 

100 

104 

110 

107 

107 

Consumption 
(tonnes) 

Index 

(2003 = 100) 

5.2. 

Current imports from the PRC 

(a) 

Volume and market share 

(45)  Based on information from Eurostat, the development of volumes and market share of 
imports  of  PAC  from  the  PRC  is  set  out  in  the  table  below.  The  volume  of  imports 
from the PRC has increased over the period considered by 55%, but their market share 
remained overall below 2%.  

Volume 
imports (tonne) 

of 

Index 

(2003 = 100) 

2003 

2004 

2005 

2006 

341 

662 

600 

515 

RIP 

529 

100 

194 

176 

151 

155 

Market share 

0,9% 

1,7% 

1,4% 

1,3% 

1,3% 

(b) 

Price behaviour of imports  

(46)  The  average  import  prices  of  PAC  originating  in  the  PRC,  as  derived  from  Eurostat 
and  by  adding  post  importation  costs,  customs  and  anti-dumping  duties,  marked  a 
rather moderate increase of 8% over the period considered as shown in the following 
table. 

Price 

(EUR/tonne) 

2003 

2004 

2005 

2006 

RIP 

1 169 

1 104 

1 187 

1 217 

1 267 

Index 

100 

94 

102 

104 

108 

EN 

11 

   EN 

 
 
 
 
(2003 = 100) 

(47) 

In  the  absence  of  detailed  sales  data  by  exporting  producers  in  the  PRC,  the 
Commission  had  to  compare  the  adjusted  import  prices  obtained  from  Eurostat  with 
the average, ex-works sales prices of the Community industry as a whole, i.e. without 
distinction  between  different  grades  of  PAC.  This  comparison  has  shown  that  the 
Chinese export prices during the RIP were 25% to 30% lower than the prices charged 
by the Community industry in the same period.  

5.3. 

Imports from other third countries 

(48)  The  imports  of  PAC  from  countries  other  than  the  PRC  have  increased  significantly 
over the period considered from about 7 300 tonnes in 2003 to 10 000 tonnes in the 
RIP,  representing  market  shares  of  around  19%  and  25%,  respectively.  The  major 
exporting countries have been Malaysia, Indonesia, the Philippines and the USA.  

(49)  While imports from the USA have halved, imports from Malaysia, Indonesia and the 
Philippines  increased  from  2  800  tonnes  in  2003  to  6  200  tonnes  in  the  RIP, 
representing  a  combined  market  share  of  the  Community  market  of  15%  during  the 
RIP.  The  investigation  showed  that  certain  of  the  imports  from  the  three  above 
mentioned countries consist in PAC produced from coconut-shells, which, for reason 
of  availability  of  the  raw  material  concerned,  Community  producers  are  unable  to 
produce  themselves.  Thus,  parts  of  these  imports  have  been  triggered  by  the 
Community  industry  itself  in  order  to  complement  their  range  of  PAC  on  offer  to 
Community users. 

(50) 

In  terms  of  prices,  the  average  import  prices  from  Malaysia,  Indonesia  and  the 
Philippines were lower than those of the Community industry. Prices of imports from 
Malaysia  and  Indonesia  were  in  the  same  range  as  the  prices  of  imports  of  PAC 
originating in the PRC, whereas the prices of imports from the Philippines marked a 
considerable  increase  over  the  period  considered  (37%)  and  were  20%  above  the 
Chinese import prices in the RIP.  

(51)  Prices of imports from the USA were found to be significantly higher than those of the 
Community industry. The vast majority of these imports are speciality grades of PAC 
achieving high prices on the Community market. 

(52) 

In summary, the investigation showed that some imports of PAC from third countries 
are complementary to the production of the Community industry. Other imports were 
made  at  prices  largely  above  the  average  price  charged  by  the  Community  industry. 
There  are  also  other  imports  made  at  relatively  low  prices  that  may  have  a  certain 
effect on the Community market.  However,  on the basis of the trends observed over 
the period considered, it appears that this situation is not likely to expand.  

5.4. 

Economic situation of the Community industry 

(a) 

Production, installed production capacity and capacity utilisation rate 

(53)  The ability to produce PAC can vary depending on the mix of low-activated (shorter 
time in oven) and high-activated (longer time in oven) compounds. Thus, the capacity 
shown in the table below has been established on the basis of a mix of high and low 
activated PAC actually produced. 

2003 

2004 

2005 

2006 

RIP 

EN 

12 

   EN 

 
 
Production 
(tonnes) 

Installed 
production 
capacity (tonnes) 

Capacity 
utilisation rate 

100 

105 

100 

90 

95 

85 

100 

100 

86 

86 

100 

118 

112 

118 

116 

(54)  The  production  of  PAC  by  the  Community  industry  has  been  stable  over  the  period 

considered, with some fluctuations in 2004 and 2005. 

(55) 

Installed  capacity  decreased  between  2003  and  2005.  This  decrease  is  attributable  to 
environmental  legislation introduced in 2003 by the local authorities in one Member 
State  where  one  Community  industry  plant  is  located.  As  a  consequence,  the 
Community  producer  concerned  had  to  stop  the  operation  of  one  of  its  activation 
plants due to these environmental requirements.  

(56)  As  a  direct  consequence  of  the  lower  production  capacities  available,  the  capacity 

utilisation rate increased correspondingly.  

(b) 

Sales  volumes,  market  share  of  Community  consumption,  average 
sales price and growth 

2003 

2004 

2005 

2006 

RIP 

Sales volumes  

Market share  

sales 

Average 
price 

Growth 

100 

100 

100 

100 

96 

93 

99 

96 

94 

87 

98 

92 

96 

91 

99 

95 

96 

91 

99 

96 

(57)  Sales volumes were 4% lower during the RIP in comparison with the beginning of the 
period  considered.  As  Community  consumption  increased  by  7%  over  the  period 
considered  (see  recital  (44)  above),  the  market  share  of  the  Community  industry 
decreased  by  9%  over  the  period  considered.  Despite  this  drop  in  market  share,  the 
Community  industry's  market  share  was  kept  above  50%  throughout  the  period 
considered. 

(58)  Average  sales  prices  of  the  Community  industry  on  the  Community  market  have 
remained  rather  stable  over  the  period  considered.  The  stable  sales  prices  in  the 
presence of lower sales volumes resulted in a negative growth of 4% during the period 
considered, mirroring the decrease in sales volumes by the same percentage point. 

(c) 

Stocks 

2003 

2004 

2005 

2006 

RIP 

EN 

13 

   EN 

 
 
 
Stocks  

100 

138 

115 

97 

85 

(59)  Given the interruption of one of the production lines in 2004 (see recital (55) above) 
and  in  order  to  be  able  to  serve  its  customers,  the  Community  industry  had  to 
temporarily  increase  its  stocks.  However,  in  the  course  of  the  following  years,  the 
level  of  stocks  again  reached  the  initial  levels,  at  around  10  -  20%  of  production 
volumes. 

(d) 

Profitability, return on investments and cash flow 

2003 

2004 

2005 

2006 

100 

383 

337 

200 

RIP 

226 

100 

1 051 

692 

215 

348 

100 

143 

119 

100 

128 

Profitability  on 
Community sales 

Return 
investments 

on 

Cash  Flow (in % 
of  Community 
Sales) 

(60)  These three indicators followed a similar pattern (albeit to a different degree) during 
the period considered, namely a sharp increase between 2003 and 2004 followed by a 
gradual decrease up to the end of the RIP.  

(61)  The evolution of profitability, return on investment and cash flow between 2003 and 
2004  should  be  seen  in  the  light  of  the  fact  that,  in  2003,  the  Community  industry's 
financial  performance  was  particularly  poor,  with  its  profitability  on  sales  slightly 
above the break-even level. The poor performance of the Community industry in 2003 
was due to the hardship faced by one of the Community producers in that year. 

(62)  The  decrease  in  profit  between  2005  and  2006  is  partly  due  to  the  costs  that  the 
Community industry incurred to meet certain environmental requirements (see recital 
(55) above). 

(63)  The  other  co-operating  producer  of  PAC,  which  mills  imported  GAC  into  PAC  (see 
recital (39) above), alleged that the Community industry, in view of the increase in its 
profit levels of PAC between 2003 and 2006 as shown in the complaint, was able to 
cross-subsidise  its  sales  of  GAC.  In  other  words  it  alleged  that  since  PAC  has  been 
protected, the Community industry has been able to charge higher prices for PAC and, 
thus, allegedly charge less for its sales of GAC. For this reason, this party opposed the 
continuation of measures. 

(64)  Concerning  the  alleged  cross-subsidization  between  GAC  and  PAC  produced  by  the 
Community  industry,  it  is  noted  that  this  is  partly  outside  the  scope  of  this  review 
since the profitability of sales of GAC has not being analysed in the framework of this 
investigation.  As  regards  the  profit  levels,  it  is  noted  that  while  the  Community 
industry  marked  a  sharp  increase  in  profitability  between  2003  and  2004,  this 
development  was  followed  by  a  period  of  decline  in  2006  and  the  RIP.  As  noted  in 
recital  (61)  above,  the  sharp  increase  between  2003  and  2004  should  be  seen  in 
relation to the poor financial performance of  the Community industry  in  2003 rather 

EN 

14 

   EN 

 
 
than  with  the  good  financial  performance  in  2004.  Moreover,  over  the  period 
considered, the Community industry's profitability never exceeded 5,5% in relation to 
its  sales  of  PAC  on  the  Community  market.  Thus,  the  alleged  possibility  that  the 
increase  in  profitability  during  the  period  considered  was  at  levels  that  would  had 
allowed  the  Community  industry  to  subsidise  its  sales  of  other  products  had  to  be 
dismissed,  as  the  profitability  of  sales  of  PAC  during  the  period  considered  was  too 
low to substantiate any cross-subsidization allegations.  

(e) 

Employment, wages and productivity 

2003 

2004 

2005 

2006 

RIP 

Number 
employees 

of 

100 

Wages/employee 

100 

Productivity 
(tonne/employee) 

100 

97 

100 

108 

88 

99 

108 

90 

100 

111 

90 

97 

111 

(65)  As  shown  in  the  table  above,  the  Community  industry  has  reduced  the  number  of 
employees  over  the  period  considered  by  around  10%.  As  the  actual  production  has 
remained  stable  during  the  same  period  (see  recital  (54)  above),  the  increase  in 
productivity is mirroring these two developments.  

(66)  Moreover, wages have been rather stable during the period considered. 

(f) 

Investments 

2003 

2004 

2005 

2006 

RIP 

Investments (€) 

100 

70 

71 

135 

135 

(67)  The table above shows that during 2006 and the RIP, the Community industry made 
significant investments. For reasons explained in recital (55), these investments were 
triggered by environment requirements. 

(g) 

Ability to raise capital 

(68)  The  Community  industry  did  not  report  any  difficulties  in  raising  capital  over  the 

period considered. 

(h)  Magnitude of dumping 

(69)  As seen above, the facts available show that the dumping margin can be considered to 

be significant.  

(i) 

Recovery from past dumping 

(70)  As already concluded in the previous expiry review, due to the anti-dumping measures 
in force, the Community industry has to a certain extent been able to recover from past 
dumping, but is still in a vulnerable situation. 

EN 

15 

   EN 

 
 
 
5.5. 

Export activity of the Community industry 

Sales 
(tonnes) 
export 

volumes 
for 

Average 
price (export) 

sales 

2003 

2004 

2005 

2006 

RIP 

100 

108 

114 

122 

121 

100 

94 

96 

99 

101 

(71)  Sales volumes for exports have increased throughout the period considered, by around 

21% between 2003 and the RIP. 

(72)  Average  sales  prices  of  exports  sales  have  remained  stable  when  comparing  export 
sales prices in 2003 with those during the RIP. Whereas prices dropped somewhat in 
2004, the Community industry was able to increase its prices as from 2005. 

5.6. 

Conclusion on the situation on the Community market 

(73)  Between  2003  and  the  RIP,  the  following  indicators  concerning  the  Community 
industry  developed  positively:  profitability,  return  on  investments,  cash-flow  and 
capacity  utilisation  and  closing  stocks.  The  unit  sales  prices  and  the  production 
remained  virtually  stable.  In  addition,  productivity  increased  and  the  Community 
industry was able to invest in order to meet certain environmental requirements. 

(74)  Conversely,  the  following  indicators  developed  negatively:  sales  volumes,  market 
share  and  employment.  Moreover,  production  capacity  declined  due 
the 
aforementioned environmental requirements. 

to 

(75)  Overall,  although  the  situation  is  mixed,  positive  developments  appear  to  outweigh 
negative  developments.  In  addition,  when  one  compares  the  above  trends  with  the 
ones found in the original investigation, it is clear that the anti-dumping measures in 
place  had  a  positive  impact  on  the  economic  situation  of  the  Community  industry. 
Nevertheless, 
indicators  showing  positive 
developments, such as, in particular, profitability and return on investment, are still far 
from  reaching  levels  that  could  be  expected  if  the  Community  industry  had  fully 
recovered from the past injurious dumping. 

it  should  be  stressed 

that  even 

(76) 

It  is  therefore  concluded  that,  although  the  situation  of  the  Community  industry  has 
improved,  as  compared  to  the  period  preceding  the  imposition  of  measures,  the 
Community industry is still fragile. 

6. 

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY 

(77)  The  investigation  has  shown  that  the  spare  capacities  in  the  PRC  are  significant, 
exceeding the Community consumption in the RIP. In addition, given the imposition 
of anti-dumping measures against imports of (steam-activated) PAC originating in the 
PRC  by  the  USA,  there  is  an  imminent  risk  of  trade  diversion  of  the  volumes 
previously exported to the USA should measures be allowed to lapse. This is an even 
greater risk since the prices at which PAC has been imported into the USA are even 
lower than those at which they are imported into the Community market.  

(78)  Furthermore,  the  prices  at  which  PAC  is  currently  being  imported  have  been 
established to be dumped and lie far below the average sales prices (and costs) of the 
Community industry.  

EN 

16 

   EN 

 
 
(79)  Therefore, the combined effect of factors such as: 

–  the significant spare capacities found in the PRC, 

–  the  imminent  risk  of  trade  diversion  due  to  the  imposition  of  measures  by  the 

USA, and  

–  the  prevailing  low  level  of  the  prices  at  which  PAC  originating  in  the  PRC  is 

being imported into the Community as well as into the USA 

all point towards a serious risk for recurrence of injury should measures be allowed to lapse. 

(80)  As shown  above, although the  situation of the Community industry has improved as 
compared  to  the  one  prevailing  before  the  imposition  of  existing  antidumping 
measures, it remains fragile. It is likely that if the Community industry were exposed 
to increased volumes of imports from the PRC at dumped prices it would result in a 
deterioration  of  its  financial  situation  as  found  in  the  original  investigation.  On  this 
basis, it is therefore concluded, that the repeal of the measures would in all likelihood 
result in the recurrence of injury to the Community industry. 

7. 

7.1. 

(81) 

COMMUNITY INTEREST 

Preliminary remarks 

In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether  the 
continuation of the existing antidumping measures would be against the interest of the 
Community as a whole. The determination of the Community interest was based on an 
appreciation of all the various interests involved. The present investigation analysed a 
situation in which anti-dumping measures have already been in place and allowed for 
assessment of any undue negative impact on the parties concerned due to the current 
anti-dumping measures. 

(82)  On this basis, it was examined whether, despite the conclusions on the likelihood of a 
continuation  or  recurrence  of  injurious  dumping,  compelling  reasons  existed  which 
would  lead  to  the  conclusion  that  it  is  not  in  the  Community  interest  to  maintain 
measures in this particular case. 

(83)  For  this  reason,  questionnaires  were  sent  out  to,  in  addition  to  the  three  producers 
mentioned  in  recital  (11),  other  producers  (including  those  producers  which  are 
milling  imported  GAC  into  PAC),  four  Community  suppliers,  the  three  Community 
importers that agreed to co-operate (see recital (9) above) and 37 users mentioned in 
the application and/or known to the Commission. 

7.2. 

(84) 

Interest of the Community industry 

It  can  reasonably  be  expected  that  the  Community  industry  will  continue  to  benefit 
from  the  measures  currently  imposed  and  further  recover  by  regaining  market  share 
and improving its profitability. Should the measures not be maintained, it is likely that 
the  Community  industry  will  start  again  to  suffer  injury  from  increased  imports  at 
dumped  prices  from  the  country  concerned  and  that  its  currently  fragile  financial 
situation will deteriorate.  

(85)  On  this  basis,  given  that  the  Community  industry  represent  more  than  a  majority  of 
Community  production  and  that  the  two  Community  producers  constituting  the 
Community industry both have expressed support of continuation of measures, it can 
be  concluded  that  the  continuation  of  measures  would  be  in  the  interest  of  the 
Community industry. 

EN 

17 

   EN 

 
7.3. 

Interest of Community suppliers 

(86)  The  Commission  received  questionnaire  replies  from  three  Community  suppliers  of 
raw  materials  (lignite,  peat  and  saw  dust)  to  the  Community  industry.  All  three 
supported the continuation of measures and stated that a significant part of their sales 
would  be  at  risk  if  measures  would  be  allowed  to  lapse,  putting  in  danger  their 
financial stability. 

(87) 

It  could  therefore  be  concluded  that  the  continuation  of  measures  would  be  in  the 
interest of the Community suppliers of the Community industry. 

7.4. 

Interest of Community importers 

(88)  As mentioned in recital (8), the Commission contacted 33 importers that were listed in 
the  request  to  this  review.  Only  three  importers  agreed  to  co-operate  in  the 
investigation. However, none of these three importers replied to the questionnaire sent 
by the Commission. 

(89)  Thus,  the  lack  of  interest  in  co-operating  with  the  investigation  can  indeed  be 
considered  as  an  indication  that  the  importing  activities  of  any  importers  of  PAC 
would not be seriously affected by the continuation of measures. 

7.5. 

Interest of Community users 

(90)  As  mentioned  in  recital  (83)  above,  37  users  were  contacted,  many  of  whom  were 
customers  of  the  Community  industry.  In  the  end,  only  three  questionnaire  replies 
were received. 

(91)  None of the three users accepted on-spot verification of their questionnaire responses. 
Nevertheless, from the examination of the unverified data it was found that PAC, on a 
weighted  average,  represents  a  very  small  proportion  of  the  operation  costs  of  the 
users concerned. 

(92)  On  this  basis,  it  was  concluded  that  activities  of  any  users  of  PAC  would  not  be 

seriously affected by the continuation of measures. 

7.6. 

Conclusion on Community interest 

(93)  Taking into account the interests of all parties that made themselves known during the 
investigation,  it  appears  that  there  are  no  compelling  reasons  on  the  grounds  of 
Community interest against the prolongation of the anti-dumping measures. 

8. 

FINAL PROVISIONS 

(94)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which  it  was  intended  to  recommend  that  the  existing  measures  on  imports  of  PAC 
would  be  maintained.  They  were  also  granted  a  period  to  make  representations 
subsequent to disclosure. 

(95) 

9. 

(96) 

It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation, the anti-dumping measures applicable to imports of PAC originating in the 
PRC should be maintained. 

DUTIES 

In view of the conclusions reached with regard to continuation of dumping, likelihood 
of recurrence of injury and Community interest, the anti-dumping measures on imports 
of PAC originating in the PRC should be maintained in order to prevent a recurrence 
of injury to the Community industry being caused by dumped imports. 

EN 

18 

   EN 

 
(97)  The present level of anti-dumping duty, based on an injury elimination level of 38,6%, 

is set to € 323/tonne (fixed duty). 

(98)  With  regards  to  the  level  of  the  duty,  one  interested  party  argued  that,  since  the 
abolition of the VAT-rebate that Chinese exporting producers obtain when exporting 
goods derived from domestically purchased raw materials, the dumping margins must 
be lower.  

(99)  However,  in  the  complete  absence  of  any  form  of  co-operation  by  the  Chinese 
exporting  producers  and  the  absence  of  a  request  for  an  interim  review  pursuant  to 
Article 11(3) of the basic Regulation, this alleged change of the cost of production for 
exported goods could not be substantiated, and consequently was dismissed, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

3. 

A definitive anti-dumping duty is hereby imposed on imports on powdered activated 
carbon  falling  within  CN  code  ex  3802  10  00  (TARIC  code  3802  10  00  20) 
originating in the People's Republic of China.  

The  amount  of  the  definitive  anti-dumping  duty  shall  be  EUR  323  per  tonne  (net 
weight). 

In  cases  where  goods  have  been  damaged  before  entry  into  free  circulation  and, 
therefore, the price actually paid or payable is apportioned for the determination of 
the  customs  value  pursuant  to  Article  145  of  Commission  Regulation  (EEC)  No 
2454/93  of  2  July  1993  laying  down  provisions  for  the  implementation  of  Council 
Regulation  (EEC)  No  2913/92  establishing  the  Community  Customs  Code6,  the 
amount of anti-dumping duty, calculated on the basis of the amounts set above, shall 
be  reduced  by  a  percentage  which  corresponds  to  the  apportioning  of  the  price 
actually paid or payable. 

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

Article 2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  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,  

For the Council 
The President  

6 

OJ  L  253,  11.10.1993,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  214/2007  (OJ  L  62, 
1.3.2007, p. 6) 

EN 

19 

   EN