Council Regulation (EC) No 818/2008 of 13 August 2008 amending Regulation (EC) No 2074/2004 imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms originating in the People’s Republic of China and terminating the investigation concerning the possible circumvention of anti-dumping measures imposed by that Regulation by imports of certain ring binder mechanisms consigned from Thailand, whether declared as originating in Thailand or not
Date: 2008-08-13
Institutions: Council of the European Union
Subjects: China, Thailand, anti-dumping duty, import (EU), office supplies, originating product

19.8.2008

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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 818/2008

of 13 August 2008

amending Regulation (EC) No 2074/2004 imposing a definitive anti-dumping duty on imports of
certain ring binder mechanisms originating in the People’s Republic of China and terminating the
investigation concerning the possible circumvention of anti-dumping measures imposed by that
Regulation by imports of certain ring binder mechanisms consigned from Thailand, whether
declared as originating in Thailand or not

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against dumped imports
from countries not members of the European Community (1)
(the basic Regulation) and in particular Article 13 thereof,

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

Whereas:

1. PROCEDURE

1.1. Existing measures

(1)

By Regulation (EC) No 119/97 (2), the Council imposed
definitive anti-dumping duties ranging from 32,5 % to
39,4 % on imports of certain ring binder mechanisms
(RBMs) originating in the People’s Republic of China
(PRC). These rates of duty were applicable to RBMs
other than those with 17 or 23 rings, while RBMs
with 17 and 23 rings were subject to a duty equal to
the difference between the minimum import price (MIP)

(2)

(3)

(4)

(5)

of EUR 325 per 1 000 pieces
free-at-
Community-frontier not cleared through customs price
whenever the latter was lower than the MIP.

and the

By Regulation (EC) No 2100/2000 (3),
the Council
amended and increased the above mentioned duties for
certain RBMs other than those with 17 or 23 rings,
following an investigation pursuant to Article 12 of the
ranged from
basic Regulation. The amended duties
51,2 % to 78,8 %.

Following an expiry review investigation (the review
investigation) pursuant
the basic
by Regulation (EC) No
Regulation,
2074/2004 (4),
anti-dumping
measures for four years.

the Council,
extended

to Article 11(2) of

existing

the

On 1 July 2004, following an anti-circumvention inves­
tigation pursuant to Article 13 of the basic Regulation,
by Regulation (EC) No 1208/2004 (5)
the Council
extended the measures
to imports of certain RBMs
consigned from Vietnam.

On 24 December 2004, by Regulation (EC) No
2231/2004 (6)
the Commission terminated an anti-
imports of
circumvention investigation concerning
certain RBMs consigned from Thailand as it was found
that there was genuine production of RBMs in Thailand
which accounted for 100 % of Community imports from
Thailand during the period of investigation defined for
that investigation.

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

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

(2) OJ L 22, 24.1.1997, p. 1.

(3) OJ L 250, 5.10.2000, p. 1.
(4) OJ L 359, 4.12.2004, p. 11.
(5) OJ L 232, 1.7.2004, p. 1.
(6) OJ L 379, 24.12.2004, p. 68.

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(6)

(7)

(8)

(9)

On 12 January 2006, following an anti-circumvention
investigation pursuant to Article 13 of the basic Regu­
lation, by Regulation (EC) No 33/2006 (1) the Council
extended the measures
to imports of certain RBMs
consigned from the Lao People’s Democratic Republic.

(the

initiating

Regulation),

circumvention

On 6 December 2007, by Regulation (EC) No
1434/2007 (2)
the
Commission initiated an investigation pursuant
to
the basic Regulation concerning the
Article 13(3) of
possible
anti-dumping measures
of
imposed by Regulation (EC) No 2074/2004, by
imports of certain RBMs consigned from Thailand,
whether slightly modified or not and whether declared
as originating in Thailand or not, and by imports of
certain slightly modified RBMs originating in the PRC
and made such imports subject to registration.

1.2. Request

The anti-circumvention investigation was initiated on the
basis of a request,
lodged by Ring Alliance Ringbuch­
technik GmbH, which contained sufficient prima facie
evidence that
the anti-dumping measures are being
circumvented by means of a slight modification of the
product concerned to make it fall under customs codes
which are normally not subject to measures and that the
modification does not alter the essential characteristics of
the
request
contained sufficient prima facie evidence that the anti-
dumping measures are being circumvented by means of
transhipment via Thailand of
the product concerned,
whether slightly modified or not.

Furthermore,

concerned.

product

the

1.3. Product concerned

The product concerned is, as defined in Regulation (EC)
No 2074/2004, certain RBMs currently classifiable within
CN code ex 8305 10 00. These RBMs consist of
two
rectangular steel sheets or wires with at least four half-
rings made of steel wire fixed on them and which are
kept together by a steel cover. They can be opened either
by pulling the half rings or by using a small steel trigger
mechanism fixed to the RBM.

1.4. Investigation

(10)

The Commission officially advised the authorities of the
PRC and Thailand, the producers/exporters in Thailand
and in the PRC and the importers in the Community
known to the Commission of the initiation of the inves­
tigation. Questionnaires were sent to the producers/ex­
porters in Thailand and the PRC and to the importers in
the Community. Interested parties were given the oppor­
tunity to make their views known in writing and to
request a hearing within the time limit set
in the
initiating Regulation.

(1) OJ L 7, 12.1.2006, p. 1.
(2) OJ L 320, 6.12.2007, p. 23.

its related Chinese
(11) One producer/exporter in Thailand,
exporting producer and its parent
trading company
based in Hong Kong submitted a complete reply to the
questionnaire as did another Chinese exporting producer
trading
together with its Hong Kong based parent
company. Replies
also
submitted by six importers in the Community. The
Commission carried out
the
premises of the following companies:

to the questionnaire were

verification visits

at

— Thai Stationery Industry Co. Ltd, Thailand (TSI),

— Wah Hing Stationery Manufactory Limited, Hong

Kong (WHS),

— Wah Hing Stationery Manufactory Limited, Pan Yu

Shi, Guangzhou, PRC,

— World Wide Stationery Manufacturing Co. Ltd, Hong

Kong,

— Donghguan Humen Nanzha World Wide Stationery

Manufacturing Co. Ltd, PRC.

1.5. Investigation period

(12)

The
investigation period covered the period from
1 October 2006 to 30 September 2007 (the IP). Data
was collected from 2004 to the end of the IP in order to
investigate the change in the pattern of trade (the period
investigated).

(13)

(14)

2. RESULTS OF THE INVESTIGATION

2.1. Slightly modified RBMs

2.1.1. Essential characteristics

The investigation established that one of the two coop­
erating Chinese exporting producers was producing
slightly modified RBMs. The modification consisted in
changing the rectangular shape of the sheets by using
chamfered sheets which have
and by
cutting material off
the sheets so that
the edges of
their shape is no longer rectangular. Chamfering means
cutting a furrow in the sheet in the form of a column.
types were identified in the
These particular product
Community market as ‘wave blade’ RBMs.

indentations

enabled

concerned

this modification of

the
It was also established that
in
the
product
Community to classify these product
types under
TARIC codes not subject to the measures, in particular
TARIC code 8305 10 00 90 which existed until
the
initiating Regulation came into force.

importers

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(15)

the modification
The question of whether or not
mentioned in recital 13 altered the essential characteris­
tics of the product concerned was then investigated. In
this regard, it was found that the slightly modified RBMs
differ slightly only in the shape of the sheets but that that
modification does not alter the essential characteristics of
the product concerned.
the slightly modified
RBM continues to be comprised of two sheets with at
least four half-rings attached to them and continues to be
kept together by a steel cover. The opening systems also
remain the same since both products can be made to
open either by pulling the half-rings or with a trigger
mechanism.

Indeed,

(16) Moreover, there were only minor changes in the sheets
since otherwise they would have endangered the proper
functioning of the slightly modified RBMs in terms of
tension and adhesive forces.

(17)

the base,

It will be recalled that a large number (several hundreds)
types of RBMs varying in a number of
of different
features such as the width of
the type of
mechanism, the number of rings, the opening system,
etc., are present on the Community market. All these
types of RBMs were nevertheless considered to constitute
one single product in the previous investigations as it
was found that all types have the same basic physical
and technical characteristics and that
they are largely
interchangeable. Equally, this rather minor difference in
the appearance of the RBMs was found not to be suf­
ficiently different to warrant a finding of different like
products. Therefore it
is concluded that all RBMs
constitute a single product for the purpose of this inves­
tigation.

(18) On the basis of the above it was concluded that the
slightly modified products with chamfered
sheets
the product
should be covered by the definition of
concerned,
its
alter
essential characteristics.

this modification did not

as

(21)

In view of the above, it is considered that there was a
change in the pattern of trade of the slightly modified
RBMs exported by the cooperating Chinese exporting
producer to the Community in the period investigated.

2.1.3. Insufficient due cause or economic justification

(22) As noted above, the investigation showed that the modi­
fications made to the product concerned were very
minor. It was also found that if a certain saving in the
use of the main raw material could be made due to the
chamfering operation, this saving was negligible (around
2 %). Moreover, any saving in the consumption of raw
materials was largely offset by costs incurred for the
adaptation of machinery before the production process
of the chamfered sheets could begin.

(23)

It was also found that all sales of the slightly modified
product were only to the Community and were essen­
tially made to the operator upon whose request they
were designed. This means that
the slightly modified
RBMs have essentially one buyer worldwide.

(24) Moreover, the group of companies to which the Chinese
exporting producer belongs do not produce any wave
blade RBMs in their Thai subsidiary.
It was stated by
the representatives of TSI in this regard that there was
no demand for such types, as RBMs originating in
Thailand are not subject to anti-dumping measures.

(25)

In view of the above, it can be concluded that there was
no economic justification other than the imposition of
the anti-dumping duties for the change in the pattern of
trade between the Chinese exporting producer and the
slightly
Community stemming from the practice of
modifying the product concerned.

2.1.2. Change in the pattern of trade

The imports into the Community of the slightly modified
RBMs started in 2003 after the initiation of the expiry
to
review investigation of
imports of RBMs originating in the PRC.

the measures applicable

(26)

(19)

(20)

to the Commission,

This type of RBM was designed at the request of an
operator in the Community and, on the basis of the
information available
imports
started in the second half of 2003. The import levels
identified in the course of the current investigation are
as follows: 3,8 million pieces or approximately 234
tonnes in 2004, 2,7 million pieces or approximately
166 tonnes in 2005, 4,3 million pieces or approximately
262 tonnes in 2006 and 2,7 million pieces or 167
tonnes in the IP (representing 1 % of the Community
consumption).

2.1.4. Undermining of

the remedial effects of

the duty in
terms of the prices and/or the quantities of the like
products

that
in place. While imports of

Based on the trade flow analysis set out above,
it was
found that a change in the pattern of the Community
there were anti-
imports is linked to the fact
dumping measures
the
slightly modified RBMs were absent on the Community
they
market before
amounted to 234 tonnes in 2004, to 166 tonnes in
2005, to 262 tonnes in 2006 and to 167 tonnes in
the IP, representing 1 % of Community consumption.

imposition of measures,

the

(27)

The investigation revealed that the imports of slightly
modified RBMs from the PRC have taken place at price
levels below the export price and well below the normal
value established in the review investigation.

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it was concluded that the
(28) On the basis of the above,
change in trade flows,
together with the abnormally
low export price of the slightly modified products, has
undermined the remedial effects of
the anti-dumping
measures in terms of both quantities and prices of the
like products.

to produce the quantity of RBMs exported to the
Community during the IP, but also in the years of the
period investigated. Therefore, it was concluded that TSI
had to be considered as a genuine producer of certain
it was considered that
RBMs.
transhipment of RBMs via Thailand has not taken place
in the IP.

In these circumstances,

(29)

(30)

(31)

(32)

(33)

2.1.5. Evidence of dumping in relation to the normal values
previously established for like or similar products

In accordance with Article 13(1) of the basic Regulation,
the question of whether there was evidence of dumping
in relation to the normal values previously established for
the like product was examined.
In this regard, export
the slightly modified RBMs made by the
prices of
Chinese
IP were
exporting producer
compared with the normal values established in the
In
types.
review investigation for comparable product
types were
the
determined by the width of
the type of
mechanism, the number of rings, the opening system
and the length.

the different product
the base,

comparison,

during

the

For the purpose of a fair comparison between the normal
value and the export price, due allowance, in the form of
adjustments, was made for differences which affect prices
and price comparability, pursuant to Article 2(10) of the
basic Regulation.

the comparison of

In accordance with Articles 2(11) and 2(12) of the basic
Regulation,
the weighted average
normal value as established in the review investigation
and the weighted average export price established during
the IP, expressed as a percentage of the cif price at the
Community frontier, duty unpaid,
revealed dumping
above the de minimis threshold.

2.2. Alleged transhipment via Thailand

TSI, the sole exporter of RBMs in Thailand, was set up in
1998, i.e. one year after the imposition of anti-dumping
duties on certain RBMs from the PRC. The company is a
subsidiary of WHS, a Hong Kong-based trading company
for RBMs that also owns an RBMs production plant in
the PRC. As was found in the previous anti-circum­
established that TSI’s
vention investigation,
it was
exports to the Community in the IP accounted for
100 % of Community imports from Thailand as shown
by Eurostat. On this basis and in the absence of any
evidence to the contrary, it was concluded that TSI was
the sole exporter of RBMs in Thailand.

(34) Moreover,

the investigation did not

that any
slightly modified RBMs were produced and exported by
the TSI to the Community during the IP.

reveal

(35)

(36)

(37)

(38)

Based on these findings,
it is also considered that the
company investigated did not fulfil the criteria set out
in Article 13(2) of the basic Regulation as TSI is not an
assembly operation. This conclusion is based on the
interpretation of Article 13(2) as being lex specialis for
assembly operations.

3. MEASURES

In view of the above findings of circumvention within
the meaning of Article 13(1) of the basic Regulation, the
the
existing anti-dumping measures on imports of
product concerned originating in the PRC should be
extended to the slightly modified RBMs originating in
the same country.

In this regard, the definition of the product concerned
given in Article 1 of Regulation (EC) No 2074/2004 shall
be amended accordingly to extend the measures to
certain slightly modified RBMs.

Pursuant to Articles 13(3) and 14(5) of the basic Regu­
lation, which provide that any extended measures shall
be applied against registered imports from the date of
registration, the anti-dumping duty should be collected
on all imports of RBMs which consist of two steel sheets
or wires with at least four half-rings made of steel wire
fixed on them and kept together by a steel cover, and
which can be opened either by pulling the half-rings or
with a small steel trigger mechanism fixed to the ring
binder mechanism, other than those already identified in
Article 1 of Regulation (EC) 2074/2004 and falling
codes
within
ex 8305 10 00 32
which
entered the Community under registration imposed by
the initiating Regulation.

(TARIC
ex 8305 10 00 39)

ex 8305 10 00

CN code

and

The investigation showed that in the years 2004, 2005,
2006 and in the IP, TSI was producing RBMs from the
main raw materials (i.e. coil-rolled steel sheets and coil-
rolled steel wire). Moreover,
the
quantity of raw materials imported by TSI was sufficient

found that

it was

4. TERMINATION OF THE INVESTIGATION AGAINST
THAILAND

(39)

In view of the findings regarding Thailand, the investi­
gation concerning the possible circumvention of anti-
dumping measures
certain RBMs
by
consigned from Thailand should be terminated.

imports of

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5. DISCLOSURE

Article 2

(40) All parties concerned were informed of the essential facts
and considerations leading to the above conclusions and
were invited to comment. No comments which were of a
nature to change the above conclusions were received,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2074/2004 shall be amended as follows:

1. Article 1(1) shall be replaced by the following:

‘A definitive anti-dumping duty is hereby imposed on
imports of certain ring binder mechanisms currently classi­
fiable within CN code ex 8305 10 00 originating in the
People’s Republic of China.

For the purpose of this Regulation, ring binder mechanisms
shall consist of two steel sheets or wires with at least four
half-rings made of steel wire fixed on them and which are
kept together by a steel cover. They can be opened either by
pulling the half rings or with a small steel trigger mechanism
fixed to the ring binder mechanism.’;

2. In Article 1(2)(a), TARIC code ‘8305 10 00 35’ shall be

added to the TARIC codes between brackets;

The duty shall be collected on imports registered in accordance
with Article 2 of Regulation (EC) No 1434/2007 and Articles
13(3) and 14(5) of Regulation (EC) No 384/96 of ring binder
mechanisms which consist of two steel sheets or wires with at
least four half-rings made of steel wire fixed on them and kept
together by a steel cover, and which can be opened either by
pulling the half rings or with a small steel trigger mechanism
fixed to the ring binder mechanism, other than those identified
in Article 1 of Regulation (EC) 2074/2004, and falling within
CN code
applicable until
20 August 2008: ex 8305 10 00 32 and ex 8305 10 00 39)
and originating in the People’s Republic of China.

ex 8305 10 00 (TARIC codes

Article 3

The investigation initiated by Regulation (EC) No 1434/2007
concerning the possible circumvention of
the anti-dumping
imposed by Regulation (EC) No 2074/2004 on
measures
imports of certain ring binder mechanisms originating in the
People’s Republic of China by imports of certain ring binder
mechanisms consigned from Thailand, whether declared as orig­
inating in Thailand or not, and making such imports subject to
registration is hereby terminated.

Article 4

Customs authorities are hereby directed to discontinue the regis­
tration of imports established in accordance with Article 2 of
Regulation (EC) No 1434/2007.

Article 5

3. In Article 1(2)(b), TARIC code ‘8305 10 00 34’ shall be

added to the TARIC codes between brackets.

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, 13 August 2008.

For the Council
The President

B. KOUCHNER