Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of certain footwear with uppers of leather originating in the People's Republic of China and Vietnam
Date: 2008-10-03
Institutions: European Commission
Subjects: China, Viet Nam, anti-dumping duty, dumping, footwear industry, import, originating product

3.10.2008

EN

Official Journal of the European Union

C 251/21

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of
certain footwear with uppers of leather originating in the People's Republic of China and Vietnam

(2008/C 251/12)

Following the publication of a notice of impending expiry (1) of
the anti-dumping measures in force on imports of certain foot-
wear with uppers of leather originating in the People's Republic
of China and Vietnam (‘countries concerned’), the Commission
has received a request for review pursuant to Article 11(2) of
Council Regulation (EC) No 384/96 of 22 December 1995 on
from countries not
protection against dumped imports
members of
(‘the basic Regu-
lation’).

the European Community (2)

6403 91 93,
6403 99 05,
6403 99 33,
6403 99 91,

6403 91 98,
ex
6403 99 31,
ex
6403 99 38,
ex
ex
6403 99 96,
ex 6403 99 98 and ex 6405 10 00. These CN codes are given
only for information.

6403 91 96,
6403 99 11,
6403 99 36,
6403 99 93,

ex
ex
ex
ex

ex
ex
ex
ex

3. Existing measures

1. Request for review

The request was lodged on 30 June 2008 by the European
Confederation of the Footwear Industry (CEC) (‘the applicant’)
on behalf of producers representing a major proportion, in this
case more than 35 %, of the total Community production of
certain footwear with uppers of leather.

The measures currently in force are definitive anti-dumping
duties imposed by Council Regulation (EC) No 1472/2006 (3)
on imports of certain footwear with uppers of leather origin-
ating in the People's Republic of China and Vietnam, extended
by Council Regulation (EC) No 388/2008 (4) to imports of the
same product, consigned from the Macao SAR, whether
declared as originating in the Macao SAR or not.

2. Product

4. Grounds for the review

classifiable within

The product under review is footwear with uppers of leather or
composition leather, excluding sports footwear, footwear invol-
ving special technology, slippers and other indoor footwear and
footwear with a protective toecap, originating in the People's
Republic of China and Vietnam (‘the product concerned’),
6403 20 00,
currently
6403 51 15,
ex
6403 51 95,
ex
6403 59 11,
ex
6403 59 39,
ex
6403 59 99,
ex
6403 91 13,
ex
6403 91 91,
ex

6403 51 11,
6403 51 91,
6403 59 05,
6403 59 35,
6403 59 95,
6403 91 11,
6403 91 18,

6403 51 05,
6403 51 19,
6403 51 99,
6403 59 31,
6403 59 91,
6403 91 05,
6403 91 16,

codes
ex
ex
ex
ex
ex
ex
ex

ex
ex
ex
ex
ex
ex
ex

CN

The request is based on the grounds that the expiry of measures
would be likely to result
in continuation or recurrence of
dumping and injury to the Community industry.

In view of the provisions of Article 2(7) of the basic Regulation,
the applicant established normal value for the People's Republic
the price in an
of China and Vietnam on the basis of
appropriate market economy country, which is mentioned in
point 5.1(d). The allegation of continuation of dumping is based
on a comparison of normal value, established as set out in the
preceding sentence, with the export prices of
the product
concerned when sold for export to the Community.

(1) OJ C 75, 26.3.2008, p. 25.
(2) OJ L 56, 6.3.1996, p. 1.

(3) OJ L 275, 6.10.2006, p. 1.
(4) OJ L 117, 1.5.2008, p. 1.

C 251/22

EN

Official Journal of the European Union

3.10.2008

On this basis, the dumping margins calculated are significant for
all exporting countries concerned.

within the time limit set in point 6(b)(i) and in the
formats indicated in point 7:

Furthermore, the applicant points out that during the period of
imposition of measures, the exporters/producers of the product
concerned from the People's Republic of China tried to under-
mine the existing measures by circumvention practices, which
were counteracted by Regulation (EC) No 388/2008.

The applicant has provided evidence that
the
product concerned from the People's Republic of China and
Vietnam have continued to enter in significant quantities, and
that such quantities would be likely to remain at their current
levels,
inter alia, due to the potential of the
manufacturing facilities of the exporting producers.

if not increase,

imports of

In addition, the applicant alleges that the current improved
situation with regard to injury is mainly due to the existence of
measures and that any continuation of substantial imports at
dumped prices from the countries concerned would likely lead
to a recurrence of further injury of the Community industry
should measures be allowed to lapse.

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review,
the Commission hereby initiates a review in
accordance with Article 11(2) of the basic Regulation.

5.1. Procedure for the determination of likelihood of dumping

and injury

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

numbers and contact person,

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

— the turnover in local currency and the sales volume
in pairs for the product concerned sold to other
third countries during the period 1 July 2007 to
30 June 2008,

— the precise activities of the company with regard to
the product concerned and the production volume
in pairs of the product concerned, the production
capacity and the investments in production capacity
during the period 1 July 2007 to 30 June 2008,

— 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,

— the last available audited statutory accounts (in case
your company is not under obligation to have
audited statutory accounts, please provide the non
audited version); in case the documents are not in
one of
the European
Union, please provide translation to one of those
languages, preferably English,

languages of

the official

The investigation will determine whether the expiry of
the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of dumping and injury.

— any other relevant information that would assist the

Commission in the selection of the sample.

(a) Sampling

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

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

(i) Sampling

for

expor ters/producers

in

the

People's Republic of China and Vietnam

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

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 countries, and any known associa-
tions of exporters/producers.

(1) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July
1993 laying down provisions for the implementation of Council Regu-
lation (EEC) No 2913/92 establishing the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

3.10.2008

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Official Journal of the European Union

C 251/23

(ii) Sampling for impor ters

(iii) Sampling for Community producers

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,

— the total turnover in euro of the company during

the period 1 July 2007 to 30 June 2008,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in pairs 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
and Vietnam or
consigned from the Macao SAR, whether declared
as originating in the Macao SAR or not,

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

companies (1)
selling of the product concerned,

— the last available audited statutory accounts (in case
your company is not under obligation to have
audited statutory accounts, please provide the non
audited version); in case the documents are not in
one of
the European
Union, please provide translation to one of those
languages, preferably English,

languages of

the official

— 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

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,

(1) For guidance on the meaning of related companies, please refer to

Article 143 of Regulation (EEC) No 2454/93.

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

The selection of the sample will be based on the largest
representative volume of production and sales of the
Community industry which can be reasonably investi-
gated within the time available.

In order to obtain the information necessary for the
selection of the sample of Community producers, the
Commission will contact associations of Community
producers and/or individual Community producers. In
addition, individual Community producers, particularly
those not members of an association, may also indicate
their willingness to be included in the sample. These
by
producers
contacting the Commission within the time limit set in
point 6(b)(i).

should make

themselves

known

(iv) Final selection of the samples

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

samples

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

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 co-operate 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.

(b) Questionnaires

producers

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
sampled
exporters/producers in the People's Republic of China and
Vietnam, to any association of exporters/producers, to the
sampled importers, to any known association of importers,
and to the authorities of the exporting countries concerned.

in the Community,

to the

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Official Journal of the European Union

3.10.2008

(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 must 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 the previous investigation Brazil was used as an appro-
priate market economy country for the purpose of estab-
lishing normal value in respect of the People's Republic of
China and Vietnam. The Commission envisages using Brazil
again for this purpose. Interested parties are hereby invited
to comment on the appropriateness of this country within
the specific time limit set in point 6(c).

5.2. Procedure for the assessment of Community interest

importers,

In accordance with Article 21 of the basic Regulation, in order
to decide if the measures are in the interest of the Community,
a determination will be made as to whether maintaining the
anti-dumping measures would not be against the Community
interest. For this reason the Commission may send question-
naires to the known Community industry,
their
representative associations, representative users and representa-
tive consumer organizations. Such parties, including those not
yet known to the Commission, provided that
they prove
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 infor-
mation 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

(ii) For par ties

to make themselves known,

to
submit questionnaire replies and any other
infor mation

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. 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 limit 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 limits 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 point 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

(i) For par ties to request a questionnaire

interested parties who did not co-operate in the
All
investigation leading to the measures subject
to the
present review should request a questionnaire or other
claim forms as soon as possible, but not later than
15 days after the publication of
this notice in the
Official Journal of the European Union.

Parties to the investigation may wish to comment on
the appropriateness of Brazil 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 and Vietnam. These comments
must reach the Commission within 10 days of the date of
publication of
the
this notice in the Official
European Union.

Journal of

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C 251/25

7. Written submissions, questionnaire replies and cor-

10. Possibility to request a review under Article 11(3) of

respondence

the basic Regulation

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: N-105 04/092
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, findings, 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
in accordance with Article 18 of the
and use may be made,
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially, and use of facts
available is made, the result may be less favourable to that party
than if it had cooperated.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(5)
of the basic Regulation within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

As this expiry review is initiated in accordance with the provi-
sions of Article 11(2) of
the basic Regulation, the findings
thereof will not lead to the level of the existing measures being
amended but will
lead to those measures being repealed or
maintained in accordance with Article 11(6) of the basic Regu-
lation.

If any party to the proceeding considers that a review of the
level of the measures is warranted so as to allow for the possibi-
lity to amend (i.e. increase or decrease) the level of the measures,
that party may request a review in accordance with Article 11(3)
of the basic Regulation.

Parties wishing to request such a review, which would be carried
out
the expiry review mentioned in this
notice, may contact the Commission at the address given above.

independently of

11. 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 of 18 December
2000 on the protection of individuals with regard to the proces-
sing of personal data by the Community institutions and bodies
and on the free movement of such data (2).

12. 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-
tion of
in particular with
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).

their interests in this proceeding,

(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 of 30 May 2001 regarding
public access to European Parliament, Council and Commission docu-
ments (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 Implementation of Article VI of the GATT 1994
(Anti-dumping Agreement).

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