2008/899/EC: Commission Decision of 2 December 2008 accepting the undertakings offered in connection with the anti-dumping proceeding concerning imports of citric acid originating in the People's Republic of China
Date: 2008-12-02
Institutions: European Commission
Subjects: China, anti-dumping duty, import, organic acid, originating product

L 323/62

EN

Official Journal of the European Union

3.12.2008

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COMMISSION

COMMISSION DECISION

of 2 December 2008

accepting the undertakings offered in connection with the anti-dumping proceeding concerning
imports of citric acid originating in the People's Republic of China

(2008/899/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 Articles 8 and 9
thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

By Regulation (EC) No 488/2008 (2), the Commission
imposed provisional anti-dumping duties on imports
into the Community of citric acid originating in the
People's Republic of China (PRC).

Following the adoption of the provisional anti-dumping
measures, the Commission continued the investigation of
dumping, injury and Community interest. The definitive
findings and conclusions of the investigation are set out

(3)

(4)

(5)

in Council Regulation (EC) No 1193/2008 (3) imposing a
definitive anti-dumping duty and collecting definitively
the provisional duty imposed on imports of citric acid
originating in the PRC.

The investigation confirmed the provisional findings of
injurious dumping relating to imports of citric acid orig­
inating in the PRC.

B. UNDERTAKINGS

Subsequent to the adoption of provisional anti-dumping
measures, six cooperating exporting producers in the
PRC, namely Anhui BBCA Biochemical, RZBC, TTCA,
Yixing Union Biochemical, Laiwu Taihe Biochemistry
and Weifang Ensign Industry offered price undertakings
in accordance with Article 8(1) of the basic Regulation.
In these undertakings,
the exporting producers have
offered to sell the product concerned at or above price
levels which eliminate the injurious effects of dumping.
Each exporting producer offered one minimum import
price for all different product types in order to limit the
risk of circumvention.

In addition, the offers provide for the indexation of the
minimum prices given that the prices of the product
in particular prices
concerned varied significantly,
increased considerably after
the investigation period.
The indexation is made in accordance with public inter­
national quotations of corn, the main raw material used
the exporting
by the exporting producers. However,
producers offered to fix the minimum prices at least at
the level of the non-injurious price even if the indexation
would lead to a lower price level.

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 143, 3.6.2008, p. 13.

(3) See page 1 of this Official Journal.

3.12.2008

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Official Journal of the European Union

L 323/63

(6)

(7)

(8)

(9)

(10)

(11)

Laiwu Taihe Biochemistry, which was accorded market
economy treatment, offered to calculate its minimum
price based on the normal value established during the
investigation.

the offers
compensation by some specific companies,
contain special cross-compensation clauses in respect of
sales by the companies concerned to those EC customers
whose organisation or structure extends beyond the EU.
These clauses significantly reduce the risk of cross-
compensation.

Moreover, the exporting producers,
in order to reduce
the risk of price violations by means of cross-compen­
sation of prices, firstly offered to report all non-EU sales
to those customers whose organisation or
structure
extends beyond the EU, should the exporting producer
sell to this customer in the EU. Secondly, the exporting
producers agreed to respect a certain price regime in
relation to those non-EU sales.

exporting

producers will

the
The
Commission with regular
and detailed information
concerning their exports to the Community, meaning
that the undertakings can be monitored effectively by
the Commission.

provide

also

It is also noted that the China Chamber of Commerce of
Metals, Minerals & Chemicals Importers & Exporters
(‘CCCMC’)
is joining the six companies mentioned in
recital (4), and that therefore the CCCMC will also play
an active role in the monitoring of the undertakings.
Thus,
the Commission considers the risk of circum­
venting the agreed undertakings as limited.

that

argued

industry

Subsequent to the disclosure of the undertaking offers,
the Community industry objected to these undertaking
offers. The Community
an
indexation based on corn is not appropriate as other
main inputs constitute major variant components of
the costs and suggested instead an indexation based on
both raw material and energy costs. As concerns the
Community
an
indexation based also on energy, it is noted that energy
is not a major cost driver. Moreover, there would be no
clear source of indexation as the energy required can be
produced from different sources such as coal, natural gas
or electricity.

comments

suggesting

industry's

(12)

In view of this, the undertakings offered by the exporting
producers are acceptable.

(13)

(14)

(15)

containing at

In order to enable the Commission to monitor effectively
the companies' compliance with the undertakings, when
the request for release for free circulation is presented to
the relevant customs authority, exemption from the anti-
dumping duty will be conditional on (i) the presentation
of an undertaking invoice
the
elements listed in the Annex to Regulation (EC) No
1193/2008; (ii) the fact that imported goods are manu­
shipped and invoiced directly by the said
factured,
company to the first
in the
Community; and (iii) the fact that the goods declared
and presented to customs correspond precisely to the
description on the undertaking invoice. Where no such
invoice is presented, or when it does not correspond to
the product presented to customs, the appropriate rate of
anti-dumping duty shall instead be payable.

independent customer

least

aware by the

the undertakings,
To further ensure the respect of
importers have been made
above-
mentioned Council Regulation that the non-fulfillment
of the conditions provided for by that Regulation, or
the withdrawal by the Commission of the acceptance
of
the undertakings, may lead to the customs debt
being incurred for the relevant transactions.

In the event of a breach or withdrawal of the undertaking
or in case of withdrawal of acceptance of the undertaking
by the Commission, the anti-dumping duty imposed in
accordance with Article 9(4) of the basic Regulation shall
automatically apply by means of Article 8(9) of the basic
Regulation,

The Community industry further argued that, because the
the product covered by the
exporting producers sell
undertaking to multinational companies, there is a high
risk of price cross-compensation i.e. the product covered
by the undertaking may be sold to the same customer at
to
artificially low prices outside
In this
compensate the minimum prices in the EC.
regard it should be noted that
the
companies' export sales to the EC are made to traders
and not
to multinational companies. Notwithstanding
this, and to further reduce the remaining risk of cross-

the EC in order

the majority of

HAS DECIDED AS FOLLOWS:

Article 1

The undertakings offered by the exporting producers mentioned
below together with the China Chamber of Commerce of
Metals, Minerals & Chemicals
in
connection with the
anti-dumping proceeding concerning
imports of citric acid originating in the People's Republic of
China, are hereby accepted.

Importers & Exporters,

L 323/64

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Official Journal of the European Union

3.12.2008

Country

Company

Taric Additional Code

People's Republic of China

Anhui BBCA Biochemical Co., Ltd — No 73 Daqing
Road, Bengbu City 233010, Anhui Province

Manufactured by RZBC Co., Ltd — No 9 Xinghai West
Road, Rizhao, Shandong Province and sold by its
related sales company RZBC Imp. & Exp. Co., Ltd —
No 9 Xinghai West Road, Rizhao, Shandong Province

Manufactured by RZBC (Juxian) Co., Ltd — West Wing,
Chengyang North Road, Ju County, Rizhao, Shandong
Province and sold by its related sales company RZBC
Imp. & Exp. Co., Ltd — No 9 Xinghai West Road,
Rizhao, Shandong Province

TTCA Co., Ltd. — West, Wenhe Bridge North, Anqiu
City, Shandong Province

Yixing Union Biochemical Co., Ltd — Economic Devel­
opment Zone Yixing City 214203, Jiangsu Province

Laiwu Taihe Biochemistry Co. Ltd, No 106 Luzhong
Large East Street, Laiwu, Shandong Province

Weifang Ensign Industry Co. Ltd, The West End, Limin
Road, Changle City, Shandong Province

A874

A926

A927

A878

A879

A880

A882

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

Article 2

Done at Brussels, 2 December 2008.

For the Commission

Catherine ASHTON
Member of the Commission