Council Regulation (EC) No 649/2008 of 8 July 2008 imposing a definitive anti-dumping duty on imports of powdered activated carbon originating in the People’s Republic of China
Date: 2008-07-08
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, coal, dumping, import, originating product

10.7.2008

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Official Journal of the European Union

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

I

REGULATIONS

COUNCIL REGULATION (EC) No 649/2008

of 8 July 2008

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,

(2)

Having regard to the Treaty
Community,

establishing the European

By Regulation (EC) No 1011/2002 (3),
following an
expiry review pursuant
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).

to Article 11(2) of

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against dumped imports
from countries not members of the European Community (1)
(the basic Regulation), and in particular Articles 9 and 11(2)
thereof,

1.2. Request for a review (Present investigation)

(3)

Following the publication of a notice of
expiry (4),
the Commission received a
12 March 2007 for an expiry review pursuant
Article 11(2) of the basic Regulation.

impending
request on
to

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

(4)

Whereas:

1. PROCEDURE

1.1. Measures in force

(5)

(1)

By Regulation (EC) No 1006/96 (2), 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).

than 50 %, of

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

the expiry of

that

the

determined,
that

after
sufficient
expiry

advisory
Having
existed for
the
committee,
initiation of
the Commission
initiated this review on 13 June 2007, by a notice
published in the Official
the European Union
(the notice of initiation) (5).

consulting
evidence
review,

Journal of

the

the

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 931/2003 (OJ L 133, 29.5.2003, p. 36).

(EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(2) OJ L 134, 5.6.1996, p. 20.

(4) OJ C 228, 22.9.2006, p. 3.
(5) OJ C 131, 13.6.2007, p. 14.

(3) OJ L 155, 14.6.2002, p. 1. Regulation as amended by Regulation

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1.3. Parties concerned by the investigation

(11)

(6)

(7)

(8)

in

users

suppliers,

producers,

the representatives of

The Commission officially advised the exporters/pro-
the exporting country,
ducers,
importers,
the
Community and the applicant of the initiation of the
expiry review. Interested parties were given the oppor-
tunity to make their views known in writing and to
request a hearing within the time limit set out in the
interested parties, who so
notice of
requested and showed that
there were particular
reasons why they should be heard, were granted a
hearing.

initiation. All

(a) Sampling of exporters/producers in the PRC

In view of the apparent large number of exporters/pro-
ducers 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
sampling would be
Commission to decide whether
necessary and, if so, to select a sample, the exporters/pro-
ducers 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
sampling would be
Commission to decide whether
importers in
necessary and,
the
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 infor-
mation requested in the notice of initiation.

if so, to select a sample,

Community

requested,

pursuant

were

(9)

However, since only three out of the 33 importers which
were contacted replied to the sampling questions and
agreed to cooperate,
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
known importers,
exporting
suppliers, producers, users
in the Community and
producers in the analogue country, the United States of
America (USA) (see recitals 22 to 24).

country

and

all

to

suppliers

raw materials

Complete replies to the questionnaires were received
from three
the
of
two Community
Community industry,
producers supporting the request
for the review, one
additional producer opposing the proceeding and one
producer
country. No exporting
producer in the PRC cooperated.

three users,

analogue

in the

to

(12)

The Commission sought and verified all the information
deemed necessary for its analysis and carried out verifi-
cation visits at the premises of the following companies:

(a) Community producers

— Norit BV, Amersfoort,

the Netherlands,

and

Glasgow, United Kingdom,

— CECA SA, Paris and Bordeaux, France,

(b) Other producer

— Chemviron Carbon SA, Feluy, Belgium,

(c) Community suppliers

— Klasmann & Deilmann GmbH, Geeste, Nieder-

sachsen, Germany,

— Rheinbraun
Germany,

Brennstoff

GmbH,

Cologne,

— WTL International Ltd, Macclesfield, Cheshire,

United Kingdom,

(d) Producer in the analogue country

— Norit Americas Inc., Marshall, Texas, USA.

(13)

(14)

1.5. Review investigation period

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 investi-
gation period or RIP).

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).

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(15)

2. PRODUCT CONCERNED AND LIKE PRODUCT

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
steam or
shells, which are activated by means of
fine powder.
chemical processes. PAC is
Activated carbons are also sold in granular
forms
(granulated activated carbon GAC) which are not
covered by the measures in force or by this review.

very

a

(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.

(21)

(17)

(18)

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 purifi-
cation of different products in the chemical (i.e. organic
acids), pharmaceutical (i.e. gastrointestinal capsules) and
food industries (i.e. alcoholic and soft drinks).

investigation has

The present
confirmed that PAC
produced and sold by Community producers and PAC
imported from the PRC as well as PAC produced and
sold in 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. LIKELIHOOD OF A CONTINUATION
AND/OR RECURRENCE OF DUMPING

3.1. Preliminary remarks

(19)

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 conti-
nuation or recurrence of dumping.

(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 cooperated 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 importer
had also cooperated with the first expiry review investi-
gation. 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
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.

quantity

small

is

3.2. Likelihood of continuation of dumping

it was

In the context of the likelihood of a continuation of
dumping,
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,
indication that
dumping would be likely to continue in the future,
should the measures be allowed to expire.

it could be an important

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

Initiation,

for

The USA is one of the largest producing countries of
PAC worldwide. Figures submitted by the cooperating
producer in the USA and the Community producers in
the request
the production
review showed that
volume of both countries is comparable. Furthermore,
as mentioned in recital 18, PAC produced and sold in
the USA was found to be a like product
to PAC
produced in the PRC and exported to the Community.
Domestic sales made by the cooperating 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.
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 cooperate.

Indeed,

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

the analogue country by any of

(25)

(b) Normal value

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
to independent
sales were made
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
in accordance with
the normal
determine
Article 2(1) of the basic Regulation.

value

(c) Export price

(26) As mentioned above, no Chinese exporting producer or
any importer of PAC in the Community cooperated with
the export
this expiry review investigation. Therefore,
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
In the absence of any information
costs were made.
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.

(29)

(30)

(31)

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

is nevertheless

indicative of

3.3. 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
the export volume and the domestic
in the PRC,
the Chinese price
market
behaviour to other third countries were examined.
In
the absence of cooperation from exporting producers,
market
the
Community industry was used.

in the PRC as well as

information

submitted

research

by

(f) Production capacity, domestic market in China and export

volume

The information available to the Commission showed
that
is the
the PRC, with some 300 manufacturers,
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.

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,
apply high
India
such as
customs tariffs for PAC.

and Indonesia,

(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

(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 like-
lihood even increase in the future.

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(33)

(34)

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

low capacity utilisation is

the

(39)

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

(40)

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

necessary raw material
processes.

to obtain PAC by activation

PAC

It was also found that certain other producers in the
Community manufacture
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 cooperated with the
Commission during the investigation manufactured PAC
using this method. However, as was the case in the first
these quantities have not been
review investigation,
included
total Community
production and of Community consumption.

calculation of

in the

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

around

They

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
it should also be noted that Chinese imports
respect,
in smaller quantities, present on the
remained, albeit
Community market
anti-
facilitate an
dumping measures in 1996, which will
increase of
imports should measures be allowed to
expire.

imposition of

since

the

(41) As the Community industry consists of two Community
producers, the information concerning the Community
industry had to be
to
preserve confidentiality of sensitive data.

indexed where appropriate

5. SITUATION ON THE COMMUNITY MARKET

5.1. Consumption on the Community market

(42)

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

3.4. Conclusion on the likelihood of a continuation

erating Community producers,

of dumping

— sales on the Community market by the two coop-

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 like-
lihood 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
since there are
significant spare capacities available in the PRC. The
prices of these additional
in all
likelihood be dumped at significant levels.

import quantities will

investigation)

4. DEFINITION OF THE COMMUNITY INDUSTRY

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
investigation, are
following the traditional process of mixing up the

cooperate

in the

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

— 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; after that consumption
remained stable during the RIP.

(36)

(37)

(38)

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2003

2004

2005

2006

RIP

Consumption (tonnes)

38 163

39 499

41 983

40 697

40 783

Index (2003 = 100)

100

104

110

107

107

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 following table. The volume of imports from the PRC has
increased over the period considered by 55 %, but their market share remained overall below 2 %.

Volume of imports (tonnes)

Index (2003 = 100)

2003

341

100

2004

662

194

2005

600

176

2006

515

151

RIP

529

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)

Index (2003 = 100)

2003

1 169

100

2004

1 104

94

2005

1 187

102

2006

1 217

104

RIP

1 267

108

(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 these three countries consist in PAC produced from coconut-shells, which Community
producers are unable to produce themselves, due to the unavailability of the raw material concerned.
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.

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(50)

(51)

(52)

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.

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.

In summary, the investigation showed that some imports of PAC from third countries are comple-
mentary 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.

Production (tonnes)

Installed production capacity
(tonnes)

2003

100

100

2004

105

90

2005

95

85

2006

100

86

Capacity utilisation rate

100

118

112

118

RIP

100

86

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

Sales volumes

Market share

Average sales price

Growth

2003

2004

2005

2006

RIP

100

100

100

100

96

93

99

96

94

87

98

92

96

91

99

95

96

91

99

96

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(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), 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

Stocks

2003

100

2004

138

2005

115

2006

97

RIP

85

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

(d) Profitability, return on investments and cash flow

Profitability on Community sales

Return on investments

Cash flow (in % of Community
Sales)

2003

100

100

100

2004

383

1 051

143

2005

337

692

119

2006

200

215

100

RIP

226

348

128

(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).

(63)

The other cooperating producer of PAC, which mills imported GAC into PAC (see recital 39), 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.

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(64)

Concerning the alleged cross-subsidisation 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 was not 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, the sharp increase between 2003 and 2004 should be seen in relation to the poor
financial performance of the Community industry in 2003 rather 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-
subsidisation allegations.

(e) Employment, wages and productivity

Number of employees

Wages/employee

Productivity (tonne/employee)

2003

100

100

100

2004

97

100

108

2005

88

99

108

2006

90

100

111

RIP

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), the increase in productivity is mirroring these two developments.

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

(f) Investments

Investments (EUR)

2003

100

2004

70

2005

71

2006

135

RIP

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.

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5.5. Export activity of the Community industry

Sales volumes (tonnes) for export

Average sales price (export)

2003

100

100

2004

108

94

2005

114

96

2006

122

99

RIP

121

101

(71)

Sales volumes for exports have increased throughout the
period considered, by around 21 % between 2003 and
the RIP.

(77)

(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)

the following indicators
Between 2003 and the RIP,
concerning the Community industry developed posi-
tively: profitability,
return on investments, cash-flow
and capacity utilisation and closing stocks. The unit
sales prices and the production remained virtually
In addition, productivity increased and the
stable.
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 to the aforementioned
environmental requirements.

(75) Overall, although the situation is mixed, positive deve-
lopments 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
in place had a positive
the anti-dumping measures
impact on the economic situation of the Community
it should be stressed that even
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.

(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

The investigation has shown that the spare capacities in
the PRC are significant, exceeding the Community
consumption in the RIP. In addition, given the impo-
sition 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
the
Community industry.

(and costs) of

(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 impo-

sition 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 of recurrence of injury
should measures be allowed to lapse.

(80) As

situation of

shown above,

the
although the
Community industry has improved as compared to the
one prevailing before the imposition of existing anti-
dumping 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
it is
found in the original
therefore concluded,
the measures
would in all
in the recurrence of
injury to the Community industry.

investigation. On this basis,
that
likelihood result

the repeal of

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L 181/11

7. COMMUNITY INTEREST

7.1. Preliminary remarks

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.

(81)

In accordance with Article 21 of the basic Regulation, it
was examined whether the continuation of the existing
anti-dumping measures would be against the interest of
the Community as a whole. The determination of the
Community interest was based on an appreciation of
all the various interests involved. The present investi-
gation 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)

(84)

For this reason, questionnaires were sent out
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
cooperate (see recital 9) and 37 users mentioned in the
application and/or known to the Commission.

to,

7.2. Interest of the Community industry

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

likely that

concerned

currently

that

and

its

is

it

(85) On this basis, given that

the Community industry
than a majority of Community
represents more
the two Community producers
production and that
have
constituting
both
expressed support of continuation of measures,
it can
be concluded that the continuation of measures would
be in the interest of the Community industry.

the Community

industry

7.3. Interest of Community suppliers

(86)

The Commission received replies to the questionnaire
from three Community suppliers of
raw materials
(lignite, peat and sawdust) to the Community industry.
All three supported the continuation of measures and

(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 cooperate in the investi-
gation. However, none of these three importers replied to
the questionnaire sent by the Commission.

(89)

Thus, the lack of interest in cooperating with the inves-
tigation can indeed be considered as an indication that
the importing activities of any importers of PAC would
not be
continuation of
measures.

seriously affected by the

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 replies to
the questionnaire were received.

(91) None of these three users accepted on-the-spot verifi-
cation of their replies to the questionnaire. 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 conti-
nuation 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.

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Official Journal of the European Union

10.7.2008

(95)

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

HAS ADOPTED THIS REGULATION:

Article 1

(96)

(97)

9. DUTIES

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

The present level of anti-dumping duty, based on an
injury elimination level of 38,6 %,
to EUR
323/tonne (fixed duty).

set

is

(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
raw
from domestically
goods
materials, the dumping margins must be lower.

purchased

derived

(99) However, in the complete absence of any form of coop-
eration 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,

A definitive anti-dumping duty is hereby imposed on
1.
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

2.
EUR 323 per tonne (net weight).

3.
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 Code (1), 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.

Article 2

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

Article 3

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

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

Done at Brussels, 8 July 2008.

For the Council
The President

C. LAGARDE

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regu-

lation (EC) No 214/2007 (OJ L 62, 1.3.2007, p. 6).