Council Regulation (EC) No 1001/2008 of 13 October 2008 imposing a definitive anti-dumping duty on imports of certain tube and pipe fittings, of iron or steel, originating in the Republic of Korea and Malaysia following an expiry review pursuant to Article 11(2) of Regulation (EC) No 384/96
Date: 2008-10-13
Institutions: Council of the European Union
Subjects: Malaysia, South Korea, anti-dumping duty, import (EU), originating product, piping

L 275/18

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Official Journal of the European Union

16.10.2008

COUNCIL REGULATION (EC) No 1001/2008

of 13 October 2008

imposing a definitive anti-dumping duty on imports of certain tube and pipe fittings, of iron or
steel, originating in the Republic of Korea and Malaysia following an expiry review pursuant to
Article 11(2) of Regulation (EC) No 384/96

THE COUNCIL OF THE EUROPEAN UNION,

lation (EC) No 655/2006 (6), whether declared as orig­
inating in the Philippines, Indonesia, Sri Lanka or not.

Having regard to the Treaty
Community,

establishing the European

2. Request for a review

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,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

1. Measures in force

In August 2002, definitive anti-dumping measures on
imports of certain tube and pipe fittings (‘TPFs’ or the
‘product concerned’) originating, inter alia, in the Republic
of Korea and Malaysia (the ‘countries concerned’) were
imposed by Council Regulation (EC) No 1514/2002 (2)
(the ‘original investigation’). The anti-dumping duties in
force for Malaysia are: 59,2 % for Anggerik Laksana Sdn
Bhd and 75 % for all other companies; for the Republic
of Korea the duty is 44 % for all companies.

(58,6 %)

Outside the scope of
this proceeding, anti-dumping
measures are currently in force imposed by Council
Regulation (EC) No 964/2003 (3) on exports from the
People’s Republic of China
and Thailand
(58,9 %), with the exception of
in
Thailand, and those consigned from Taiwan, whether
declared as originating in Taiwan or not. The measures
for the product concerned originating in China were
extended to imports of
the same product consigned
from Indonesia
by Council Regulation (EC) No
2052/2004 (4), Sri Lanka by Council Regulation (EC)
No 2053/2004 (5) and the Philippines by Council Regu­

two companies

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 228, 24.8.2002, p. 1.
(3) OJ L 139, 6.6.2003, p. 1.
(4) OJ L 355, 1.12.2004, p. 4.
(5) OJ L 355, 1.12.2004, p. 9.

(3)

(4)

(5)

(6)

(7)

impending
Following the publication of a notice of
expiry (7) of
the anti-dumping measures in force on
imports of TPFs originating in the Republic of Korea
and Malaysia,
to
review these measures pursuant to Article 11(2) of the
basic Regulation.

the Commission received a request

The request was lodged on 23 May 2007 by the Defence
Committee of the Steel Butt-Welding Fittings Industry of
the European Union (the
applicant) on behalf of
producers representing a major proportion, in this case
more than 50 %, of the total Community production of
certain tube and pipe fittings.

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

that

Having determined, after consultation of the Advisory
Committee,
the
the Commission initiated an
initiation of a review,
expiry review (8) pursuant to Article 11(2) of the basic
Regulation.

sufficient evidence existed for

3. Investigation

the

the

advised

officially

producers,

the exporting producers

The Commission
applicant
Community
Community
in the countries
producers,
concerned, the importers/traders, users and their asso­
ciations known to be concerned, as well as the represen­
tatives of the governments of both exporting countries,
of the initiation of the review.

other

(8)

The Commission sent questionnaires to all these parties
and to those who made themselves known within the
time limit set out in the notice of initiation.

(6) OJ L 116, 29.4.2006, p. 1.
(7) OJ C 286, 23.11.2006, p. 8.
(8) OJ C 192, 18.8.2007, p. 15.

(9)

(10)

(11)

(12)

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Official Journal of the European Union

L 275/19

The Commission also gave interested parties the oppor­
tunity to make their views known in writing and to
request a hearing within the time limit set out in the
notice of initiation.

nuation or recurrence of injury covered the period from
1 January 2002 up to the end of the IP (the ‘period
considered’).

the apparent high number of exporting
In view of
producers in the Republic of Korea,
importers/traders
of the product concerned and Community producers,
in
sampling was envisaged in the notice of initiation,
accordance with Article 17 of the basic Regulation. In
order to be able to decide whether sampling would be
necessary and, if so, to select a sample, the Commission
sent out sampling forms requesting specific information
each
on the average
Community producer, exporting producer and importer
concerned. No reply was received from any Korean
exporting producer and eleven replies were received
four Community producers
from importers. Only
replied to the sampling form. It was therefore decided
that sampling was not necessary.

and prices of

sales volume

(14)

(15)

Four Community producers replied to the questionnaire,
but one sent a partial answer and failed to reply after a
deficiency letter had been sent. Regarding Malaysia, two
replies to the questionnaire were received, one from a
newcomer company and the other from a company
that later on refused the verification visit. No Korean
exporting producers replied to the questionnaire. Two
importers submitted a reply to the questionnaire.

The Commission sought and verified all
information
deemed necessary for the purposes of determining the
likely continuation or
recurrence of dumping and
injury and the Community interest. Verification visits
the following
were carried out at
companies:

the premises of

(a) applicant Community producers:

— Erne Fittings GmbH, Schlins, Austria,

— Interfit SA, Maubeuge, France,

— Virgilio Cena & Figli SpA, Brescia, Italy;

(b) newcomer producer in Malaysia:

Pantech Steel Industries Sdn Bhd, Selangor, Malaysia.

4. Investigation period

(13)

The investigation of continuation or
recurrence of
dumping covered the period from 1 July 2006 to
30 June 2007 (the ‘IP’). The examination of the trends
relevant for the assessment of a likelihood of a conti­

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

(not

including stainless

The product under review is tube and pipe fittings (other
than cast fittings, flanges and threaded fittings), of iron or
steel
steel), with a greatest
external diameter not exceeding 609,6 mm, of a kind
used for butt-welding or other purposes, originating in
the Republic of Korea and Malaysia, currently classifiable
within CN codes
ex 7307 93 19,
ex 7307 99 30 and ex 7307 99 90.

ex 7307 93 11,

used mainly

TPFs are manufactured essentially by cutting and forming
tubes and pipes. They are used to join tubes and pipes
and come in different shapes: elbows, reducers, tees and
caps, as well as different sizes and material grades. They
industry,
are
the
construction,
and
industrial installations. When sold for use in the petro­
chemical industry, the global standard used is the ANSI
standard. For other purposes, the most common standard
used in the Community is the DIN standard.

petrochemical

shipbuilding

generation,

energy

in

2. Like product

(16) As in the original proceeding,

the TPFs produced in the

the investigation has
shown that
countries
concerned, sold domestically and/or exported to the
technical
Community, have the same basic physical,
and chemical
the
and end uses
characteristics
products
sold in the Community by the applicant
Community producers and are therefore considered to
be like products within the meaning of Article 1(4) of
the basic Regulation.

as

C. LIKELIHOOD OF A CONTINUATION OF DUMPING

(17)

In accordance with Article 11(2) of the basic Regulation,
it was examined whether the expiry of the measures
would be likely to lead to a continuation of dumping.

1. Preliminary remarks

(18) As mentioned above, in the absence of cooperation from
any exporting producers in Korea and Malaysia, except
for one newcomer company, this examination had to be
based on information available to the Commission from
other sources. In this respect, and in accordance with the
provisions of Article 18 of the basic Regulation, Eurostat
data referring to the 8-digit CN code, checked against
other sources, were used to establish import quantities
and prices. Facts available were used to calculate the
dumping margin,
in this case the information
i.e.
contained in the request and US statistics.

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(19) Due to the current small volume of imports of TPFs from
Korea and Malaysia in the EU, the Commission had to
use data from another country. The USA was considered
appropriate, since the market is of a similar size, with
large
many domestic producers but
proportion of
imports, making this market a very
competitive one. In addition, the USA is the major desti­
nation for exports from Korea and Malaysia.

also with a

the dumping
dumping in both countries concerned,
margin being equal
to the amount by which the
normal value established exceeded the export price. The
dumping margin found, as a percentage of
the CIF
Community-frontier import price, was 15,1 % for Korea
and 61,3 % for Malaysia.

2. Dumping of

imports during the investigation

period

(a) Normal value

(25)

In accordance with Article 18 of the basic Regulation,
and in the absence of any cooperation from Korean or
Malaysian exporting producers, except for one newcomer
the normal value was based on the data
company,
provided in the request, i.e. estimated cost of manufac­
turing to which was added 12,3 % and 15,1 % for SGA
and 5,6 % and 6 % for profit for Korea and Malaysia
of
respectively,
as
turnover.
the above percentages
It
are rather conservative.

expressed
both
is considered that

percentage

a

3. Developments of

imports should measures be

repealed

(a) Preliminary remarks

the

likelihood of

the existence of dumping
Further to the analysis of
during the
continuation of
IP,
dumping was also examined. In the absence of cooper­
ation from any Korean or Malaysian exporting producers,
except for one newcomer company, and given the lack of
publicly available information on the TPF industry, the
conclusions below rely mainly on the facts available in
accordance with Article 18 of
the basic Regulation,
namely Eurostat data,
the review request, and US
statistics.

(b) Export price

exporting

In accordance with Article 18 of the basic Regulation,
and in the absence of cooperation from both Korean and
from one
producers,
Malaysian
newcomer company, the export price was calculated by
using the Korean and Malaysian export prices for the
product concerned to the USA, derived from the USA
import statistics. These figures were adjusted by product
types in proportion to the tonnage of each product type
based on information provided in the request.

except

(c) Comparison

The weighted average normal value was compared with
the weighted average export price of TPFs, in accordance
with Article 2(11) of the basic Regulation, both at ex-
works level.

For the purpose of ensuring a fair comparison between
normal value and export price, account was taken of
differences in factors affecting prices and price compa­
rability in accordance with Article 2(10) of the basic
Regulation. In this respect, adjustments were made for
inland and ocean freight,
loading
and ancillary costs.

insurance, handling,

(d) Dumping margin

The
comparison of
constructed export price

constructed normal value

and
existence of

showed the

(b) Korean and Malaysian production capacity

(26)

The capacity available in both Korea and Malaysia is
estimated at 35 300 tonnes and their export capacity at
20 000 tonnes. This represents more than one quarter of
the Community consumption.

(c) Korean and Malaysian export prices to the Community

(27) As mentioned in the preliminary remarks, the exports of
the product concerned from the two countries concerned
to the Community market are almost non-existent. With
regard to the exports to other third countries, it is alleged
in the request that the exports of the product concerned
to the USA are made at dumped prices.

(28)

(d) Conclusion on the likelihood of a continuation of dumping

from these

In the light of the above, i.e. the high dumping margins,
the huge spare capacity available in these countries
it may be
together with their high export capacities,
concluded that dumped imports
two
countries to the EU would resume if the measures were
allowed to lapse. In addition, despite the high level of the
anti-dumping duties imposed on their exports which
the exporting producers in
virtually ceased, none of
Malaysia requested an interim review. Furthermore,
it
the Korean exporting
should be borne in mind that
companies have never cooperated in the original investi­
gation. The absence of cooperation in this investigation
also suggests that these exporting producers were not
willing or able to show that no dumping would take
place if measures were allowed to lapse.

(20)

(21)

(22)

(23)

(24)

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L 275/21

D. DEFINITION OF THE COMMUNITY INDUSTRY

(29)

Three companies cooperated fully in the investigation. These companies are located in France
(Interfit), Austria (Erne Fittings) and Italy (Virgilio Cena). The Austrian group also has a related
company in Germany (Siekmann Fittings). The investigation established that the three applicant
and fully cooperating Community producers represented more than 50 % of
the Community
production of TPFs and therefore constitute the Community industry within the meaning of
Articles 4(1) and 5(4) of the basic Regulation.

E. SITUATION ON THE COMMUNITY MARKET

1. Consumption in the Community market

(30)

Community consumption was based on the combined volume of sales made by the applicant
Community producers and other Community producers, based on the request, and imports from
the countries concerned and imports from other third countries, both based on Eurostat.

(31) On this basis, during the period considered, Community consumption increased by 26 %, from
58 561 tonnes in 2002 to 73 519 tonnes during the IP. Tube and pipe fittings are used mainly
in the petrochemical
instal­
lations which, combined with the recovery of the steel industry, may explain this rise.

industry, construction, energy generation, shipbuilding and industrial

(32)

(33)

(34)

Table 1

Community consumption

Community consumption

2002

2003

2004

2005

2006

IP

Tonnes

Index

Y/Y trend

58 561

62 122

64 480

56 255

65 667

73 519

100

100

106

6

110

4

96

– 14

112

16

126

13

Source: Eurostat, request, verified questionnaire replies of the Community industry.

2. Imports from the countries concerned

(a) Volume and market share

Volumes imported from Malaysia and Korea decreased drastically from 404 to 11 tonnes. This seems
to be the result of the anti-dumping measures in force since February 2002. Their market share is de
minimis.

Table 2

Imports from the countries concerned

Imports from the countries concerned

2002

2003

2004

2005

2006

Tonnes

Index

Y/Y trend

Market share in % of Community
consumption

Source: Eurostat.

404

100

100

1

22

5

– 95

0,04

54

13

8

94

23

10

0,08

0,17

17

4

– 19

0,03

IP

11

3

– 1

0,01

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Official Journal of the European Union

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(b) Price evolution of the imports and undercutting

(35) Due to very limited imports from the countries concerned and in view of the large variety of different
types of products, prices provided by Eurostat cannot be considered as a reliable source for a detailed
analysis.

(36)

In the absence of cooperation in the countries concerned, the undercutting margins were calculated
using the same methodology as in the request, i.e. by comparing the export prices of the countries
concerned to the USA and prices of the applicants charged on the Community market. The under­
cutting margin is 25,2 % for Korea and 53,3 % for Malaysia.

3. Economic situation of the Community industry

(a) Production, production capacity and capacity utilisation

(37)

The Community industry’s production increased by 5 % during the period considered, while
Community consumption increased by 26 %.

(38)

Tonnes

Index

Y/Y trend

Table 3

Production volume

Production volume

2002

2003

2004

2005

2006

IP

46 454

43 504

47 155

40 881

49 300

48 922

100

100

94

– 6

102

8

88

– 14

106

18

105

– 1

Source: Verified questionnaire replies of the Community industry.

(39) During the period considered the production capacity of the Community industry increased by 6 %,

despite a slight decrease in 2003.

(40)

Tonnes

Index

Y/Y trend

Table 4

Production capacity

Production capacity

2002

2003

2004

2005

2006

IP

89 400

87 800

89 700

90 300

94 800

95 000

100

100

98

– 2

100

2

101

1

106

5

106

0

Source: Verified questionnaire replies of the Community industry.

(41) During the period considered capacity utilisation decreased by 1 %.

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Official Journal of the European Union

L 275/23

(42)

%

Index

Y/Y trend

Table 5

Capacity utilisation

Capacity utilisation

2002

2003

2004

2005

2006

52

100

100

50

95

– 5

53

101

6

45

87

– 14

52

100

13

IP

51

99

– 1

Source: Verified questionnaire replies of the Community industry.

(b) Sales volume and sales prices

(43)

The Community industry’s sales to unrelated customers on the Community market increased by 11 %
between 2002 and IP.

(44)

Table 6

Community industry’s sales to unrelated parties

Community industry’s sales to unrelated
parties

2002

2003

2004

2005

2006

IP

Tonnes

Index

Y/Y trend

34 968

34 893

38 401

32 841

36 908

38 750

100

100

100

– 0,2

110

10

94

– 16

106

12

111

5

Source: Verified questionnaire replies of the Community industry.

(45) During the period considered, the average sales prices charged by the Community industry on the
Community market increased gradually. The total increase between 2002 and the IP was 63 %. This
rise is partly explained by the increase in the cost of the main raw material, steel tubes, and partly by
a shift in two Community producers’ production scope to focus on more expensive special types.

(46)

Table 7

Community industry’s sales price

Community industry’s sales price

2002

2003

2004

2005

2006

IP

EUR/tonne

Index

Y/Y trend

1 553

1 652

1 783

2 133

2 217

2 528

100

100

106

6

115

8

137

23

143

5

163

20

Source: Verified questionnaire replies of the Community industry.

(c) Market share

(47)

The overall market share held by the Community industry from 2002 to the IP decreased by 7
percentage points.

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Official Journal of the European Union

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(48)

Table 8

Market share of the Community industry’s sales

Market share of the Community industry’s
sales

2002

2003

2004

2005

2006

IP

Percentage of market

60 %

56 %

60 %

58 %

56 %

53 %

Source: Eurostat and verified questionnaire replies of the Community industry.

(d) Growth

(49) While Community consumption increased by 26 % during the period considered, the volume of
Community industry sales on the market increased by only 11 % and the Community industry
market share on the market decreased by 7 percentage points. Thus,
the growing trend in
Community consumption was not followed by a corresponding increase in Community industry
sales.

(e) Profitability and return on investments

(50) During the period considered, profitability, expressed as a percentage of net sales value to unrelated

parties, developed as follows:

(51)

Table 9

Profitability

Profitability

Percentage of net sales value

2002

2 %

2003

1 %

2004

4 %

2005

1 %

2006

6 %

IP

10 %

Source: Verified questionnaire replies of the Community industry.

(52)

The Community industry’s profitability followed a positive trend, in line with the increase in the
Community industry sales prices. Despite a significant decrease in 2003 and 2005, overall profit­
ability reached 10 %. This was due to a switch to the production of products with a higher added
value during the period considered, when the average profit made by the Community industry was
4 %.

(53)

Return on investments, expressed as profits/losses in relation to the net book value of investments,
followed the same trend as profitability.

(54)

Table 10

Return on investments

Return on investments

2002

2003

2004

2005

2006

%

Index

Y/Y trend

6

100

100

2

37

– 63

11

184

147

4

62

– 122

18

310

248

IP

37

618

309

Source: Verified questionnaire replies of the Community industry.

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Official Journal of the European Union

L 275/25

(55)

(56)

(57)

(58)

(59)

(60)

(f) Cash flow

There were considerable fluctuations in cash flow between 2002 and 2005 and a dramatic increase in
2006 and during the IP. This increase of cash flow also indicates that the industry was recovering.
This level of cash flow allows companies to invest in the TPF business again after low periods.

Table 11

Cash flow

Cash flow

2002

2003

2004

2005

2006

IP

EUR

Index

Y/Y trend

1 310 693 3 826 570 2 378 520 1 233 797 7 559 501 10 040 180

100

100

292

192

181

– 110

94

– 87

577

483

766

189

Source: Verified questionnaire replies of the Community industry.

(g) Investments and ability to raise capital

The Community industry increased investments by 65 % during the period considered. Most of them
were concentrated on machinery to increase productivity. None of
the companies investigated
mentioned any current difficulty in raising capital.

Table 12

Investments

Investments

2002

2003

2004

2005

2006

IP

EUR

Index

Y/Y trend

5 839 416 5 824 908 3 438 352 7 422 926 9 986 636 9 643 822

100

100

100

– 0,2

59

– 41

127

68

171

44

165

– 6

Source: Verified questionnaire replies of the Community industry.

(h) Stocks

The table below shows that closing stocks maintained a stable curve; nevertheless,
considered there is a small decrease of around 1 %.

in the period

Table 13

Stocks

Closing stock in volume

2002

2003

2004

2005

2006

IP

Tonnes

Index

Y/Y trend

7 233

7 115

7 449

7 206

7 580

7 190

100

100

98

– 2

103

5

100

– 3

105

5

99

– 5

Source: Verified questionnaire replies of the Community industry.

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(i) Employment, productivity and labour cost

(61) After a decrease of 5 % in 2003, during the period considered the overall labour force decreased by

2 %.

(62)

Table 14

Employment

Employment

Number of employees

Index

Y/Y trend

2002

760

100

100

2003

725

95

– 5

2004

719

95

– 0,8

2005

692

91

– 3

2006

729

96

5

IP

741

98

2

Source: Verified questionnaire replies of the Community industry.

(63)

In line with the increase in production and the decrease in employment, productivity improved by
8 % during the investigation period.

(64)

Table 15

Productivity

Productivity

2002

2003

2004

2005

2006

Tonnes/employee

Index

Y/Y trend

61

100

100

60

98

– 2

66

107

9

59

97

– 11

68

111

14

Source: Verified questionnaire replies of the Community industry.

IP

66

108

– 3

(65) During the period considered, the labour costs of the Community industry gradually increased. The
total increase in labour cost for the period considered was 22 %. The main increase in labour costs
happened in a company which changed its product mix from commodities to specialised products,
which required higher professional qualifications.

(66)

Table 16

Labour costs

Labour costs/wages

2002

2003

2004

2005

2006

IP

EUR

Index

Y/Y trend

28 941 652 28 436 139 29 607 915 29 754 664 33 069 402 35 312 821

100

100

98

– 2

102

4

103

1

114

11

122

8

Source: Verified questionnaire replies of the Community industry.

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L 275/27

4. Effect of other factors

(a) Export activity of the Community industry

(67)

The Community industry’s exports of tube and pipe fittings during the period considered were not
very stable, showing strong fluctuations. Overall, the level of exports to third countries decreased by
15 %, this reduction being mainly due to the unfavourable EUR/USD exchange rate.

(68)

Table 17

Exports of the Community industry

Exports of the Community industry

2002

2003

2004

2005

2006

IP

Tonnes

Index

Y/Y trend

10 893

8 003

9 358

8 410

11 890

9 278

100

100

73

– 27

86

12

77

– 9

109

32

85

– 24

Source: Verified questionnaire replies of the Community industry.

(b) Import volumes and prices from other third countries

(69)

Regulation (EC) No 964/2003 imposed anti-dumping duties on imports of TPFs from the People’s
Republic of China (58,6 %) and Thailand (58,9 %). Measures are applicable for the product concerned
originating in China and consigned from one of the following countries: the Philippines, Indonesia,
Sri Lanka and Taiwan. Despite the measures in force against imports from China, exports from China
to the EU are increasing steadily.

(70)

The total import volumes of TPFs from third countries other than the countries concerned more than
doubled during the period considered, increasing from 9 654 tonnes in 2002 to 24 105 tonnes at
the end of the IP.

(71)

Import volumes of TPFs into the Community from countries other than Korea and Malaysia
developed as follows:

(72)

Table 18

Imports from other third countries

Imports from other third countries

2002

2003

2004

2005

2006

IP

Tonnes

Index

Y/Y trend

Source: Eurostat.

9 654

12 453

11 488

13 344

19 020

24 105

100

100

129

29

119

– 10

138

19

197

59

250

53

(73)

The market share of imports originating in third countries other than the countries concerned
reached 33 % of the EU consumption. This means an increase of 99 % in the period considered,
from 16 to 33 %.

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(74)

Table 19

Market share of imports from other third countries

Market share imports from other third
countries

2002

2003

2004

2005

2006

IP

Percentage of market

16 %

20 %

Index

Y/Y trend

100

100

122

22

18 %

108

– 14

24 %

29 %

33 %

144

36

176

32

199

23

Source: Eurostat and market information provided by the applicant producers.

(75)

Table 20

Main imports into the EU

Imports from other third countries in
tonnes

2002

2003

2004

2005

2006

IP

China

Taiwan

Vietnam

India

Thailand

859

1 428

1 772

2 236

5 846

1 101

2 372

1 894

2 540

4 774

1 835

1 214

767

694

1 224

1 522

1 569

1 537

1 763

1 552

676

1 508

778

558

1 622

8 339

5 854

1 475

2 096

2 334

(c) Recovery from the effects of dumping

(76) As shown by the positive evolution of most of the indi­
cators listed above, in the years 2002 to mid-2007 the
economic situation of
the Community industry has
partially recovered from the injurious effect of dumped
imports originating in the two countries concerned.

(77)

5. Conclusion on the situation of the Community

industry

The measures in force have led to a partial recovery of
the Community industry since 2002. The Community
industry managed to increase its sales volumes and its
prices. Injury indicators such as production, production
capacity, profitability, investments, return on investments
and productivity also showed a positive development.
This demonstrates that the Community industry made
to improve its competitiveness. As a result,
efforts
Community industry sales
in the Community have
been profitable since 2002.

(78) However, the Community industry did not manage to
take advantage of the significant growth in consumption
in the Community and some of the positive factors are
also the result of
the disappearance of a significant
Community producer in the United Kingdom, whose
activities were taken over by two of
the companies
supporting the request.

(79)

It may nevertheless be concluded that the introduction of
measures against Korea and Malaysia had a positive
impact on the economic situation of the Community
industry.

(80)

the tentative recovery of

In view of
the Community
industry, the continuation of injury caused by dumped
imports could not be established.
therefore
examined whether there would be recurrence of injury
if the measures were allowed to lapse.

It was

F. LIKELIHOOD OF RECURRENCE OF INJURY

(81) As mentioned above,

the Korean and Malaysian
to redirect huge export
producers have the potential
if measures are
volumes to the Community market
allowed to lapse. According to the
these
countries are heavily dependent on export markets:
75 % for Korea and 84 % for Malaysia. In addition,
it
seems that other export markets, such as the USA and
Japan, could not absorb the spare capacity, since export
volumes to these countries are already significant, and
therefore these would be directed to the Community
market. In addition, it seems that there is a general over­
capacity on the Asian market.

request,

16.10.2008

EN

Official Journal of the European Union

L 275/29

(82) With regard to prices,

it was found from US statistics
that the Malaysian and Korean export prices to the USA
were lower than those of the Community industry. Even
though a detailed analysis could not be carried out
it is
because of the many different types of products,
likely that these exporters will align their prices with
the very low ones from the other Asian countries in
order to regain their lost market share. Such pricing
behaviour, attested by their non-cooperation coupled
with their ability to deliver significant quantities of the
product concerned to the Community market, would
suggest a negative impact on the Community industry.

(83)

it

should be borne in mind that

In addition,
the
Community industry needs to remain competitive to
produce a certain volume of standard products, which
are therefore in direct competition with the imports
from Korea and Malaysia, in order to make economies
of scale.

(84)

In the light of the above, it is concluded that allowing the
likelihood result in a
measures to lapse would in all
recurrence of injury to the Community industry caused
by the dumped imports.

G. COMMUNITY INTEREST

1. Introduction

(85) According to Article 21 of the basic Regulation, it was
examined whether a prolongation of the existing anti-
dumping measures would be contrary to the interests
of the Community industry as a whole. The determi­
the Community interest was based on an
nation of
appreciation of all
i.e.
those of the Community industry, the importers/traders
as well as the users of
the product concerned. No
submissions were received from users.

the various interests involved,

(86)

information

the measures,
from all

In order to assess the likely impact of the continuation or
the Commission
non-continuation of
requested
parties
interested
mentioned above. The Commission sent sampling ques­
tionnaires to 64 importers of the product concerned and
received eleven answers. The Commission sent a ques­
tionnaire to these 11 companies and only received two
partial answers which did not provide any evidence that
the measures in force had materially affected them. It is
clear that the importers have found other sources of
supply, as can be seen from the significant market
third countries, which
share (33 %) held by other
showed
the
competition
of
Community market are ensured.

conditions

that

on

(87)

Furthermore, the fact that the present investigation is a
review, thus analysing a situation in which anti-dumping
measures have
the
allows
assessment of any undue negative
impact on the
parties concerned by the current anti-dumping measures.

already been in place,

(88) On this basis,

it was examined whether, despite the
conclusions on continuation of dumping and likelihood
of recurrence of injury, compelling reasons existed which
would lead to the conclusion that it was not in the
Community interest
in this
particular case.

to maintain measures

2. Interests of the Community industry

(89)

The Community industry has proved to be a structurally
viable industry. This was confirmed by the positive deve­
lopment of
its economic situation at a time when
effective competition had been restored after the impo­
sition of the anti-dumping measures that are currently in
force.
the efforts made by the Community
industry to rationalise its production and enhance its
competitiveness have led to a reasonable profit in the
last two years of the period considered.

Indeed,

(90) Given the above,

it appears necessary to maintain the
existing measures in order to avoid the adverse effects
of dumped imports, which could endanger the recovery
process of the Community industry and ultimately its
very existence. It has also to be borne in mind that if
the Community industry disappeared, there would also
be a negative impact on the downstream industry, since
the latter would see a significant reduction in its choice
of suppliers.

3. Interests of importers/traders

(91) As stated above, only two of the 64 unrelated importers
replied to the Commission’s questionnaire. However, they
did not express any negative opinions on a possible
continuation of measures. The lack of cooperation is in
itself an indication that this sector did not suffer any
substantial negative effect on its economic situation as
a result of the measures. This is confirmed by the fact
the importers continued to trade the product
that
concerned in significant volumes,
even raising the
volume imported during the period considered.

(92)

It is therefore concluded that the economic situation of
the importers of the product concerned has not been
negatively influenced by the imposition of
the anti-
dumping measures currently in force. On the same
grounds,
it is also unlikely that a continuation of the
measures would lead to a deterioration in their
economic situation in the future.

L 275/30

EN

Official Journal of the European Union

16.10.2008

4. Interests of users

(93) No users made themselves known in the current inves­
tigation. The users of the product concerned are mainly
the petrochemical and building industries. Their lack of
the tube or pipe
cooperation seems to confirm that
fittings
total
their
production costs and that the measures in force do not
appear to have caused any loss of competitiveness for
them.

represent a very small part of

(94)

It was concluded that maintaining the measures at the
same level would not imply any deterioration in the
situation of the users.

5. Conclusion on Community interest

recommend that the existing measures be maintained.
They were also granted a period within which to make
representations after disclosure. No comments were
received from Korea; one comment was received from
a Malaysian company, but not such as to alter the
above conclusions.

(98)

It
follows from the above that, as provided for by
Article 11(2) of the basic Regulation, the anti-dumping
duties on imports of tube and pipe fittings originating in
the Republic of Korea and Malaysia, imposed by Regu­
lation (EC) No 1514/2002, should be maintained,

(95)

shown that
allowed

the existing anti-
The investigation has
the Community
dumping measures have
If measures
industry to recover to a certain extent.
the
were
recovery process and possibly lead to the disappearance
of the Community industry. Therefore, the continuation
of measures is in the interest of the Community industry.

this would endanger

allowed to lapse,

(96)

Furthermore,
in the past, the existing measures appear
not to have had any significant negative effects on the
economic situation of users and importers. It is therefore
concluded that there are no compelling reasons against
the continuation of the existing anti-dumping measures.

H. ANTI-DUMPING MEASURES

(97) All parties concerned were informed of the essential facts
and considerations on the basis of which it is intended to

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of
fittings,
tube and pipe fittings (other than cast
flanges and threaded fittings), of iron or steel (not including
stainless steel), with a greatest external diameter not exceeding
609,6 mm, of a kind used for butt-welding or other purposes,
originating in the Republic of Korea and Malaysia and falling
ex 7307 93 19,
within
CN
codes
ex 7307 99 30
7307 93 11 94,
7307 93 11 91,
7307 93 19 91,
7307 93 11 95,
7307 93 19 95,
7307 93 19 93,
7307 99 30 93,
7307 93 19 99,
7307 99 30 98,
7307 99 30 94,
7307 99 90 92,
7307 99 90 94,
7307 99 90 95, 7307 99 90 98).

7307 93 11 93,
7307 93 11 99,
7307 93 19 94,
7307 99 30 92,
7307 99 30 95,
7307 99 90 93,

ex 7307 93 11,

ex 7307 99 90

codes
and

(TARIC

2.
The rate of the definitive anti-dumping duty applicable to the net, free-at-Community frontier price,
before duty, of the products described in paragraph 1 and produced by the companies below shall be as
follows:

Country

Company

Rate of duty
(%)

TARIC
additional code

Malaysia

Republic of Korea

Anggerik Laksana Sdn Bhd,
Selangor Darul Ehsan

All other companies

All companies

59,2

75

44

A324

A999

—

3.

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

16.10.2008

EN

Official Journal of the European Union

L 275/31

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

Article 2

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

Done at Luxembourg, 13 October 2008.

For the Council
The President

B. KOUCHNER