Notice of initiation of an anti-dumping proceeding concerning imports of certain seamless pipes and tubes, of iron or steel originating in the People's Republic of China
Date: 2008-07-09
Institutions: European Commission
Subjects: China, anti-dumping legislation, dumping, import, originating product, piping, tube

9.7.2008

EN

Official Journal of the European Union

C 174/7

V

(Announcements)

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of an anti-dumping proceeding concerning imports of certain seamless pipes
and tubes, of iron or steel originating in the People's Republic of China

(2008/C 174/04)

The Commission has received a complaint pursuant to Article 5
of Council Regulation (EC) No 384/96 of 22 December 1995
on protection against dumped imports from countries not
members of
the European Community (‘the basic Regu-
lation’) (1), alleging that imports of certain seamless pipes and
tubes, of iron or steel originating in the People's Republic of
China (‘the country concerned’), are being dumped and are
thereby threatening to cause material injury to the Community
industry.

1. Complaint

The complaint was lodged on 28 May 2008 by the Defence
Committee of the Seamless Steel Tubes Industry of the European
Union (‘the complainant’) on behalf of producers representing a
major proportion,
in this case more than 50 %, of the total
Community production of certain seamless pipes and tubes, of
iron or steel.

2. Product

The product allegedly being dumped is certain seamless pipes
and tubes, of
iron or steel, of circular cross-section, of an
external diameter not exceeding 406,4 mm with a Carbon
Equivalent Value (CEV) not exceeding 0,86 according to the
International Institute of Welding (IIW) formula and chemical
analysis (2), originating in the People's Republic of China (‘the
product concerned’) and normally declared within CN codes
7304 19 30,
ex
7304 24 00,
ex
ex
7304 31 80,
7304 39 93,
ex
ex 7304 51 89, ex 7304 59 92 and ex 7304 59 93. These CN
codes are only given for information.

7304 19 10,
7304 23 00,
7304 29 30,
7304 39 92,

7304 11 00,
7304 22 00,
7304 29 10,
7304 39 58,

ex
ex
ex
ex

ex
ex
ex
ex

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

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

(2) The CEV shall be determined in accordance with Technical Report,
1967, IIW doc. IX-535-67, published by the International Institute of
Welding (IIW).

3. Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation,
the complainant established normal value for
the People's
the price in a market
Republic of China on the basis of
economy country, which is mentioned in point 5.1(d). The alle-
gation of dumping is based on a comparison of normal value,
thus calculated, with the export prices of the product concerned
when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

4. Allegation of injury

The complainant has provided prima facie evidence that imports
of the product concerned from the People's Republic of China
have increased significantly in absolute terms and in terms of
market share indicating the likelihood of substantially increased
imports.

Moreover, it is alleged that imports are entering the Community
at prices that have already had, among other consequences,
some negative impact on the level of prices charged by the
Community industry.

Furthermore, the complainant has provided prima facie evidence
that there is sufficient freely disposable capacity and also that
there is an imminent and substantial increase in such capacity
in the People's Republic of China. It is also alleged that the flow
of imports of the product concerned is likely to rise due to the
recent initiations of trade defence investigations on imports of
similar products in traditional markets other than the EU, i.e. in
Canada, Mexico and Ukraine. This can lead to a redirection of
exports from these markets to the Community.

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Official Journal of the European Union

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In addition, the complainant has provided prima facie evidence
that
the product being investigated have
increased.

inventories of

It is alleged that the change in circumstances outlined above is
clearly foreseen and imminent and would create a situation in
which the dumping would cause injury.

— the names and the precise activities of all related
involved in the production and/or
the product

companies (1)
selling (export and/or domestic) of
concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the Com-
munity industry and that there is sufficient evidence to justify
the initiation of a proceeding, the Commission hereby initiates
an investigation pursuant to Article 5 of the basic Regulation.

5.1. Procedure for the determination of dumping and injury

The investigation will determine whether the product concerned
originating in the People's Republic of China is being dumped
and whether this dumping has caused injury.

(a) Sampling

In view of the apparent large number of parties involved in
this proceeding,
the Commission may decide to apply
sampling in accordance with Article 17 of the basic Regu-
lation.

to its possible inclusion in the sample.

the company
By providing the above information,
If
agrees
the company is chosen to be part of
the sample,
this will imply replying to a questionnaire and accepting
an on-the-spot
the
company indicates that it does not agree to its possible
inclusion or inclusion in the sample, it will be deemed
not to have co-operated in the investigation. The conse-
in point 8
quences of non-cooperation are set out
below.

investigation of

its response.

If

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will, in addition, contact the authori-
ties of the exporting country and any known associa-
tions of exporters/producers.

Since a company cannot be certain that
it will be
selected in the sample, exporters/producers that wish to
claim an individual margin (2) pursuant to Article 17(3)
of the basic Regulation are advised to request a ques-
tionnaire within the deadline foreseen in point 6(a)(i) of
this notice, and file it within the deadline foreseen in
point 6(a)(ii) first paragraph of this notice. However,
attention is drawn to the last sentence of point 5.1(b)
of this notice.

(i) Sampling

for
People's Republic of China

expor ters/producers

in

the

(ii) Sampling for impor ters

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in point 6(b)(i) and in the
format indicated in point 7:

— name, address, e-mail address, telephone, and fax

numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned produced and sold
for export to the Community during the period
1 July 2007 to 30 June 2008,

— the turnover in local currency and the sales volume
in tonnes for the product concerned produced and
sold on the domestic market during the period
1 July 2007 to 30 June 2008,

— the precise activities of the company with regard to

the product concerned,

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers, or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in point 6(b)(i) and in the formats indicated in
point 7:

— name, address, e-mail address, telephone, and fax

numbers and contact person,

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying down
provisions for
the implementation of Council Regulation (EEC)
No 2913/92 establishing the Community Customs Code (OJ L 253,
11.10.1993, p. 1).

(2) Individual margins may be claimed pursuant to Article 17(3) of the
basic Regulation for companies not included in the sample, Article 9(5)
of the basic Regulation concerning individual treatment in cases invol-
ving non market economy countries/economies in transition, and
Article 2(7)(b) of the basic Regulation for companies claiming market
economy status. Note that claims for individual treatment necessitate
an application pursuant to Article 9(5) of the basic Regulation and that
claims regarding market economy status necessitate an application
pursuant to Article 2(7)(b) of the basic Regulation.

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— the total turnover in euro of the company during

— the precise activities of the company with regard to

the period 1 July 2007 to 30 June 2008,

the product concerned,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in euro of imports
into and resales made in the Community market
during the period 1 July 2007 to 30 June 2008, of
the imported product concerned originating in the
People's Republic of China,

— the names and the precise activities of all related
involved in the production and/or

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

the company
By providing the above information,
If
agrees
the company is chosen to be part of
the sample,
this will imply replying to a questionnaire and accepting
the
an on-the-spot
company indicates that it does not agree to its possible
inclusion or inclusion in the sample, it will be deemed
not to have co-operated in the investigation. The conse-
quences of non-cooperation are set out
in point 8
below.

investigation of

its response.

If

the selection of

In order to obtain the information it deems necessary
for
the
Commission will, in addition, contact any known asso-
ciations of importers.

the sample of

importers,

— the value in euro of sales of the product concerned
made in the Community market during the period
1 July 2007 to 30 June 2008,

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 July 2007 to 30 June 2008,

— the volume in tonnes of

the
product concerned during the period 1 July 2007
to 30 June 2008,

the production of

— the names and the precise activities of all related
involved in the production and/or

companies (1)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample.

to its possible inclusion in the sample.

the company
By providing the above information,
If
agrees
the company is chosen to be part of
the sample,
this will imply replying to a questionnaire and accepting
an on-the-spot
the
company indicates that it does not agree to its possible
inclusion or inclusion in the sample, it will be deemed
not to have co-operated in the investigation. The conse-
quences of non-cooperation are set out
in point 8
below.

investigation of

its response.

If

(iii) Sampling for Community producers

(iv) Final selection of the samples

In view of the large number of Community producers
supporting the complaint, the Commission intends to
investigate
injury to the Community industry by
applying sampling.

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
Community producers, or
representatives acting on
their behalf, are hereby requested to provide the
following information on their company or companies
within the time limit set in point 6(b)(i) and in the
formats indicated in point 7:

— name, address, e-mail address, telephone, and fax

numbers and contact person,

— the total turnover in euro of the company during

the period 1 July 2007 to 30 June 2008,

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying down
provisions for
the implementation of Council Regulation (EEC)
No 2913/92 establishing the Community Customs Code (OJ L 253,
11.10.1993, p. 1).

All
interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in point 6(b)(ii).

samples

The Commission intends to make the final selection of
the parties
the
concerned that have expressed their willingness to be
included in the sample.

after having

consulted

Companies included in the samples must reply to a
questionnaire within the time limit set in point 6(b)(iii)
and must cooperate within the framework of the inves-
tigation.

forthcoming,

sufficient co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 17(4) and 18 of the basic Regulation, on the
facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in point 8.

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(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the sampled Community industry and to any association of
producers in the Community, to the sampled exporters/pro-
ducers in the People's Republic of China, to any association
of exporters/producers, to the sampled importers, to any
known association of importers named in the complaint,
and to the authorities of the exporting country concerned.

Exporters/producers
in the People's Republic of China
claiming an individual margin, with a view to the applica-
tion of Articles 17(3) and 9(6) of the basic Regulation, must
submit a completed questionnaire within the time limit set
in point 6(a)(ii) of this notice. They therefore have to request
a questionnaire within the time limit set in point 6(a)(i).
However, such parties should be aware that if sampling is
applied to exporters/producers, the Commission may none-
theless decide not
to calculate an individual margin for
them, if the number of exporters/producers is so large that
individual examination would be unduly burdensome and
would prevent the timely completion of the investigation.

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence has to reach the Commission within
the time limit set in point 6(a)(ii).

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii).

(d) Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it
is envisaged to choose the United States of America as an
appropriate market economy country for the purpose of
establishing normal value in respect of the People's Republic
of China. Interested parties are hereby invited to comment
on the appropriateness of this choice within the specific
time limit set in point 6(c).

do so within the specific time limit set in point 6(d). The
Commission will send claim forms to all exporters/produ-
cers in the People's Republic of China who have either been
included in the sample or named in the complaint and to
exporters/producers named in the
any association of
complaint, as well as to the authorities of
the People's
Republic of China.

5.2. Procedure for assessment of Community interest

In accordance with Article 21 of the basic Regulation and in the
event that the allegations of dumping and injury caused thereby
are substantiated, a decision will be reached as to whether the
adoption of anti-dumping measures would not be against the
Community interest. For this reason the Commission may send
questionnaires to the known Community industry,
importers,
their representative associations, representative users and repre-
sentative consumer organisations. Such parties, including those
they prove
not known to the Commission, provided that
that there is an objective link between their activity and the
product concerned, may, within the general time limits set in
point 6(a)(ii), make themselves known and provide the Commis-
sion with information. The parties which have acted in confor-
mity with the preceding sentence may request a hearing setting
the particular reasons why they should be heard within the time
limit set in point 6(a)(iii). It should be noted that any informa-
tion submitted pursuant to Article 21 of the basic Regulation
will only be taken into account if supported by factual evidence
at the time of submission.

6. Time limits

(a) General time limits

(i) For par ties to request a questionnaire

All interested parties should request a questionnaire as
soon as possible, but not later than 15 days after the
publication of this notice in the Official Journal of the
European Union.

(ii) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

(e) Market economy treatment

For those exporters/producers in the People's Republic of
China who claim and provide sufficient evidence that they
operate under market economy conditions,
i.e. that they
meet the criteria laid down in Article 2(7)(c) of the basic
Regulation, normal value will be determined in accordance
with Article 2(7)(b) of the basic Regulation. Exporters/pro-
ducers intending to submit duly substantiated claims must

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies or
any other information within 40 days of the date of
publication of this notice in the Official Journal of the
European Union, unless otherwise specified. All expor-
ters/producers concerned by this proceeding, who wish
to apply for individual examination in accordance with
Article 17(3) of the basic Regulation, must also submit

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a questionnaire reply within 40 days of the date of the
publication of this notice in the Official Journal of the
European Union, unless otherwise specified. Attention is
drawn to the fact that the exercise of most procedural
rights set out in the basic Regulation depends on the
party's making itself known within the aforementioned
period.

selected

Companies
submit
a
questionnaire replies within the time limits specified in
point 6(b)(iii).

sample must

in

(iii) Hear ings

All interested parties may also apply to be heard by the
Commission within the same 40-day time limit.

(b) Specific time limit in respect of sampling

Journal of

(i) The information specified in points 5.1(a)(i), 5.1(a)(ii)
and 5.1(a)(iii) should reach the Commission within
15 days of the date of publication of this notice in the
Official
the European Union, given that the
Commission intends to consult parties concerned that
have expressed their willingness to be included in the
sample on its final selection within a period of 21 days
of the publication of this notice in the Official Journal of
the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iv) must
reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

(iii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date of
the notification of their inclusion in the sample.

(c) Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the
appropriateness of the United States of America which, as
mentioned in point 5.1(d),
is envisaged as a market
economy country for the purpose of establishing normal
value in respect of the People's Republic of China. These
comments must reach the Commission within 10 days of
the date of publication of this notice in the Official Journal of
the European Union.

(d) Specific

time limit

for

the submission of

claims

for market

economy and/or for individual treatment

Duly substantiated claims for market economy treatment (as
mentioned in point 5.1(e)) and/or for individual treatment

pursuant to Article 9(5) of the basic Regulation, must reach
the Commission within 15 days of the date of publication
of this notice in the Official Journal of the European Union.

7. Written submissions, questionnaire replies and cor-

respondence

All submissions and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
specified and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party). All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by interested
parties on a confidential basis shall be labelled as ‘Limited’ (1)
and, in accordance with Article 19(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘For inspection by interested parties’.

Commission address for correspondence:

European Commission
Directorate-General for Trade
Directorate H
Office: J-79 4/23
B-1049 Brussels
Fax (32-2) 295 65 05

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits or
significantly impedes the investigation, provisional or final find-
ings, affirmative or negative, may be made in accordance with
Article 18 of the basic Regulation, on the basis of the facts
available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 18 of the basic Regulation, the result may be less favour-
able to that party than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 6(9) of
the basic Regulation within 15 months of the date of the publi-
cation of this notice in the Official Journal of the European Union.
According to Article 7(1) of the basic Regulation, provisional

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the
European Parliament and of the Council regarding public access to
European Parliament, Council and Commission documents (OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article 19
of the basic Regulation and Article 6 of the WTO Agreement on Imple-
mentation of Article VI of the GATT 1994 (Anti-dumping Agreement).

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11. Hearing Officer

their

they may request

in the exercise of

the intervention of

It is also noted that if interested parties consider that they are
rights of
encountering difficulties
defence,
the Hearing
Officer of DG Trade. He acts as an interface between the inter-
ested parties and the Commission services, offering, where
necessary mediation on procedural matters affecting the protec-
in particular, with
tion of their interests in this proceeding,
regard to issues concerning access to file, confidentiality, exten-
sion of time limits and the treatment of written and/or oral
submission of views. For further information and contact details
interested parties may consult the Hearing Officer's web pages
of the website of DG Trade (http://ec.europa.eu/trade).

measures may be imposed no later than 9 months from the
publication of this notice in the Official Journal of the European
Union.

10. Processing of personal data

It is noted that any personal data collected in this investigation
will be treated in accordance with Regulation (EC) No 45/2001
of the European Parliament and of the Council on the protec-
tion of individuals with regard to the processing of personal
data by the Community institutions and bodies and on the free
movement of such data (1).

(1) OJ L 8, 12.1.2001, p. 1.