Council Regulation (EC) No 91/2009 of 26 January 2009 imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People's Republic of China
Date: 2009-01-26
Institutions: Council of the European Union
Subjects: China, anti-dumping measure, iron, metal product, steel

31.1.2009

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Official Journal of the European Union

L 29/1

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 91/2009

of 26 January 2009

imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in
the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

(3)

On 9 November 2007, the proceeding was initiated by
the publication of a notice of initiation (2) in the Official
Journal of the European Union (the Notice of Initiation).

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 9 thereof,

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Initiation

On 26 September 2007,
the Commission received a
complaint lodged pursuant to Article 5 of Council Regu­
lation (EC) No 384/96 on protection against dumped
imports from countries not members of the European
Community (the basic Regulation) by the European
Industrial Fasteners Institute (EIFI, the complainant) on
behalf of producers representing a major proportion, in
this case more than 25 %, of
the total Community
production of certain iron or steel fasteners.

This complaint contained evidence of dumping of certain
fasteners from the People's Republic of
iron or steel
China (PRC) and of material injury resulting therefrom,
which was considered sufficient to justify the opening of
a proceeding.

(4)

(5)

(6)

(7)

2. Non-imposition of provisional measures

Given the need to further examine certain aspects of the
investigation, it was decided to continue the investigation
without
the imposition of provisional measures on
imports of certain iron or steel fasteners from the PRC.

On 4 August 2008, all interested parties were provided
with an information document detailing the preliminary
findings of the investigation at that stage of the investi­
gation (the information document) and inviting the
parties to comment on those findings.

Subsequent to that date, the investigation was continued
with regard to, inter alia, Community interest aspects and
a detailed analysis of the product scope/product compar­
ability carried out, as it had been disputed by various
interested parties.

3. Parties concerned by the proceeding

producers,

Community

complainant

the exporting producers,

other
The
Community producers,
the
importers, users, associations known to be concerned
and representatives of the government of the PRC were
the proceeding.
officially advised of
Interested parties were given an opportunity to make
their views known in writing and to request a hearing
within the time limit set in the notice of initiation.

the initiation of

(1) OJ L 56, 6.3.1996, p. 1.

(2) OJ C 267, 9.11.2007, p. 31.

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Official Journal of the European Union

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(8)

(9)

the

country,

in particular

concerning the

the Community

A number of interested parties made their views known
in writing,
choice of
analogue
type and quality differences
between Chinese fasteners and those produced and sold
the
by
of
complainants
interest
interested parties who so
aspects. Moreover,
requested and showed that
there were particular
reasons why they should be heard, were granted a
hearing.

standing
and Community

and injury

producers,

all

period and expressed a wish to be included in the
sample were considered as cooperating companies and
were taken into account in the selection of the sample.
These companies accounted for 110 out of the total of
120 companies or groups that made themselves known
after initiation.

(14)

Exporting producers which did not make themselves
known within the aforesaid period were considered as
not cooperating with the investigation.

All interested parties (Community producers, Community
importers and Chinese exporting producers)
that had
made submissions regarding the product scope attended
an adversarial meeting organised in accordance with
Article 6(6) of the basic Regulation under the auspices
of the Hearing Officer on 18 September 2008 (adver­
sarial meeting).

(15) According to Article 17(1) of the basic Regulation, the
exporters with the largest exported volume to the
Community were selected so as to achieve the largest
representative volume of exports which could reasonably
be investigated within the time available.

(10) Given the large number of known exporting producers in
the PRC, as well as
the large number of known
Community producers and importers, sampling for the
determination of dumping and injury was provided for in
the Notice of Initiation, in accordance with Article 17 of
the basic Regulation.

(16) On this basis, a sample of nine Chinese exporting
producers
selected
companies represented 61 % of the exports, by the coop­
erating companies, of
the product concerned to the
Community, and 39 % of the total exports from the PRC.

selected. The

groups was

or

4. Sampling

4.1. Sampling of exporting producers in the PRC

(17)

In accordance with Article 17(2) of the basic Regulation,
the cooperating exporting producers and the authorities
of the PRC were given an opportunity to comment on
the selection of the sample.

(11) As

stated above,

the large number of
sampling was
exporting
PRC,
proposed in the Notice of Initiation in accordance with
Article 17(1) of the basic Regulation.

in view of
the
in

producers

(12)

if so,

In order to enable the Commission to decide whether
sampling would be necessary and,
to select a
sample, exporting producers were requested to make
themselves known within 15 days from the date of the
initiation of the investigation and to provide basic infor­
mation on their exports and domestic sales, and the
related companies
names and activities of all
the
selling of
involved in the production and/or
product concerned. The authorities in the PRC were
also consulted.

their

(18) A number of Chinese exporters argued that they should
have been included in the sample because of particular
circumstances regarding their companies, such as the fact
that they manufactured specific product types allegedly
not produced by the companies selected for the sample.
However, the types of the iron or steel fasteners manu­
factured by exporters were not part of the criteria used to
select the sample. As stated in recital 15, the criterion
used was the exporters with the largest exported volume
to the Community. This is in line with the requirements
of Article 17(1) of the basic Regulation.

(19) Questionnaires were sent for completion to the sampled
companies and replies from all of them were received
within the given deadlines.

(13) A total of 120 companies or groups of companies in the
PRC came forward and provided the requested infor­
mation within the given deadline. However, it appeared
from the data provided that some of these companies or
groups did not produce fasteners themselves and some
reported exports
fasteners
produced by related companies. Those companies or
groups
that produced and exported the product
concerned to the Community during the investigation

to the Community of

(20)

Five companies not selected in the sample submitted
replies to the questionnaire with a view to requesting
individual examination in application of Articles 9(6)
and 17(3) of
these
requests were accepted. Since the other company did
not produce the product concerned itself,
its request
was refused.

the basic Regulation. Four of

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(21)

rather

Following the definitive disclosure, one exporter argued
that the companies which were individually investigated
should be counted as part of the sample for the appli­
cation of Article 9(5) of the basic Regulation. Another
the Commission should have
exporter argued that
enlarged the original
than accepting
sample,
requests for individual examination under Article 17(3).
In this respect, it should be noted that the sample is still
considered sufficiently representative. Even after four of
the sampled companies failed to cooperate, as mentioned
in recital 62, the remaining sampled companies represen­
ted 54 % of the total exports by cooperating companies
of the product concerned to the Community. Moreover,
it is considered appropriate, for reasons of objectivity and
transparency, to select a sample at the beginning of the
proceeding, and maintain it throughout the proceeding
unless there are grounds to consider that this sample is
no longer representative. Finally, for the same reasons the
sampling exercise should be considered as distinct and
separate from the granting of
individual examination
under Article 17(3) of the basic Regulation.

4.2. Sampling of Community producers

(22) As stated, in view of the large number of producers in
the Community, sampling was proposed in the Notice of
Initiation in accordance with Article 17(1) of the basic
Regulation.

(23)

In order to enable the Commission to decide whether
sampling would be necessary and if so to select a
sample, Community producers were requested to make
themselves known within 15 days from the date of the
initiation of the investigation and to provide basic infor­
mation on their production and sales, and the names and
activities of all their related companies involved in the
production and/or selling of the product concerned.

(24) A total of 46 Community producers that produced the
product concerned in the Community during the inves­
tigation period and expressed a wish to be included in
the sample within the aforesaid period were considered
as cooperating companies and were taken into account
in the selection of the sample.

(25)

(26)

These Community producers represented over 30 % of
the estimated production in the Community in 2006.
These producers
the
considered to constitute
Community industry as mentioned in recital 114.

are

The issue of the standing of the Community industry was
questioned by some importers in the Community and
also by some
certain
exporting producers.
interested parties provided, after the publication of the
Notice of Initiation, lists of Community producers that
allegedly had not been consulted as to their support or
otherwise for the proceeding. A questionnaire was subse­

Indeed,

came

to all such producers. Moreover, several
quently sent
companies
forward on their own initiative
without having received a questionnaire. However, none
the responses received from these producers has
of
standing mentioned in the
reduced the
preceding recital.
these companies
supported the complaint.

In fact, many of

level of

(27)

In accordance with Article 17(1) of the basic Regulation,
the Community producers,
from among those that
constitute the Community industry, with the largest
production volume were selected in the sample so as
of
achieve
to
production of
like product produced in the
Community which could reasonably be investigated
within the time available.

representative

volume

largest

the

the

(28) On this basis, a sample of seven producers was selected.
The selected companies accounted for around 70 % of
the production of the Community industry. After one
sampled producer was considered as not cooperating,
this percentage decreased to around 65 %.

(29)

In accordance with Article 17(2) of the basic Regulation,
the cooperating Community producers were given the
opportunity to comment on the
the
sample. No comments were received that warranted
changes to the sample.

selection of

(30) Questionnaires were sent for completion to the sampled
companies and replies from all of them were received
within the given deadlines.

4.3. Sampling of Community importers

(31) As

in view of

stated above,

the large number of
importers in the Community, sampling was proposed
in the Notice of
Initiation in accordance with
Article 17(1) of the basic Regulation.

(32)

In order to enable the Commission to decide whether
sampling would be necessary and if so to select a
sample, Community importers were requested to make
themselves known within 15 days from the date of the
initiation of the investigation and to provide basic infor­
mation on their imports and sales, and the names and
activities of all their related companies involved in the
production and/or selling of the product concerned.

(33) A total of 45 companies or groups of companies in the
Community came forward and provided the requested
information within the given deadline
representing
close to 29 % of
imported volume in the
Community.

the total

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(34) According to Article 17(1) of the basic Regulation, the
Community importers with the largest sales volume were
selected so as to achieve the largest representative volume
which can reasonably be investigated. Therefore,
the
importers in terms of volumes of sales
seven largest
were selected to be part of the sample. Questionnaires
were sent for completion to the sampled companies and
replies from all of them were received within the given
deadlines.

— Finnveden Bulten, AB Göteborg, (Sweden)

— Srubex Fabryca Lancut S.A, Lancut, (Poland)

— Growermetal SRL, Lecco, (Italy)

— Invitea SpA, Milano, (Italy)

5. Market economy treatment (MET) and individual

treatment (IT)

(b) Exporting producers and their related companies in

the PRC

(35)

In order to allow exporting producers in the PRC to
submit a claim for MET or IT, if they so wished, claim
forms were sent
to the Chinese exporting producers
known to be concerned, to the known associations of
the PRC. 106
exporters and to the authorities of
to
exporting
Article 2(7) of
these
companies also claimed IT should the investigation
the conditions for
they did not meet
establish that
MET. Two other companies claimed only IT. All
the
nine companies selected in the sample claimed MET
and IT.

requested MET
basic Regulation. All

producers

pursuant

the

6. Questionnaires and verification visits

(36) Questionnaires were sent

to the sampled exporting
producers in the PRC and the four exporting producers
in the PRC who requested and were granted individual
the sampled Community producers and
examination,
importers as well as
in the Community.
to users
Replies were received from all 9 sampled exporting
the 4 exporting producers
producers
granted individual examination, one exporter
in the
PRC not selected in the sample who requested but was
eventually refused individual examination as mentioned
in recital 20, seven sampled Community producers,
three users, and
seven sampled unrelated importers,
two producers in the analogue country, India.

in the PRC,

(37)

The Commission sought and verified all the information
deemed necessary for a determination of dumping,
resulting injury and Community interest and carried
out verifications at
following
companies:

the premises of

the

(a) Community producers

— A. Agrati SpA, Milano, (Italy)

— Societa Bulloneria Europea SpA, Monfalcone and

Reggio Emilia, (Italy)

— Fontana Luigi SpA and LOBO SpA, Milano, (Italy)

— Changshu City

and
Changshu British Shanghai International Fastener
Co. Ltd, Changshu

Standard Parts

Factory

— Zhangjiagang City Jinli Standard Fastener Co. Ltd,

Zhangjiagang, and

— Ningbo Yonghong Fasteners Co., Ltd, Ningbo

— Ningbo Jinding Fastening Piece Co., Ltd, Ningbo

— Kunshan Chenghe Standard Component Co., Ltd,

Kunshan

— Pol Shin Fastener (ZheJiang) Co., Ltd, Jiashan

— Biao Wu Tensile Fasteners Co., Ltd and Shanghai

Prime Machinery Co., Ltd, Shanghai

— Zhejiang Zhapu Industrial Co., Ltd,

Jiaxing
Washan Fasteners Co., Ltd and Zhejiang WB
Auto Fasteners Co., Ltd, Jiaxing

— Eastport Fastener Manufacturing Co., Ltd, Ningbo

— CELO Suzhou Precision Fasteners Co., Ltd,

Taicang

— Golden Horse (Dong Guan) Metal Manufactory

Co., Ltd, Dongguan City

— Yantai Agrati Fasteners Co., Ltd, Yantai

— Zhejiang Guanglong Hardware and Plastic Co.,
Ltd, and Zhejiang Guanglong Plating Machinery
& Product Co., Ltd, Anji

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(c) Related companies in the Community

B. PRODUCT CONCERNED AND LIKE PRODUCT

— Celo S.A., Barcelona, Spain

(40)

(d) Related company in Taiwan

— Sunny Corp., Taipei

(e) Unrelated importers in the Community

— Adolf Würth GmbH, Kunzelsau, Germany

— Chaves Bilbao, S.A., Larrabetzu, Spain

(41)

(42)

— FM Bulloneria Viterie SpA, Reggio Emilia, Italy

— F. Reyher Nchfg. GmbH & CO KG, Hamburg,

Germany

— Hexstone Ltd t/a Owlett Jaton, Stone, UK

— VIPA SpA, Reggio Emilia, Italy

(38)

In view of the need to establish a normal value for
exporting producers in the PRC to which MET might
not be granted, a verification to establish normal value
on the basis of data from the analogue country (India)
took place at the premises of the following companies:

(f) Producers in the analogue country, India

— Pooja Forge Ltd, Faridabad

— Mohindra Fasteners Ltd, New Delhi

7. Investigation period

(39)

The investigation of dumping and injury covered the
period from 1 October 2006 to 30 September 2007
(investigation period or IP). With respect to the trends
relevant
for the injury assessment, data covering the
period from 1 January 2003 to the end of the investi­
gation period (period considered) was analysed.

1. Product concerned

The product concerned is certain iron or steel fasteners,
other than of stainless steel, i.e. wood screws (excluding
coach screws), self-tapping screws, other screws and bolts
with heads (whether or not with their nuts or washers,
but excluding screws turned from bars, rods, profiles or
wire, of solid section, of a shank thickness not exceeding
6 mm and excluding screws and bolts for fixing railway
track construction material), and washers, originating in
the People's Republic of China (all together hereinafter
referred to as fasteners or product concerned).

The product concerned is normally declared within CN
codes
7318 14 99,
7318 15 59, 7318 15 69, 7318 15 81, 7318 15 89,
ex 7318 15 90, ex 7318 21 00 and ex 7318 22 00.

7318 14 91,

7318 12 90,

Fasteners are used to mechanically join two or more
elements in construction, engineering, etc., and are used
in a wide variety of
industrial sectors, as well as by
consumers. Based on their basic physical and technical
characteristics and end uses, all fasteners are considered
to constitute a single product for the purpose of the
proceeding. Within the same national or international
standards, fasteners should comply with the same basic
physical and technical characteristics including notably
strength, tolerance, finishing and coating.

in the PRC argued that

(43) During the investigation, and in particular at the adver­
importers or exporting
sarial meeting, a number of
producers
some types of
screws, washers, or bolts with low resistance grades
should be excluded from the product scope of the inves­
tigation, on the grounds that
they are neither being
produced by the Community industry nor similar to
the typical products of the Community industry. In this
respect, the investigation found that there is significant
production by the Community industry of the same or
similar types of fasteners. Moreover, the basic Regulation
does not require that exported products be identical in all
respects in order to be considered as a single product for
the purpose of the investigation. These arguments had
therefore to be dismissed.

(44) One Community distributor,

in particular, argued that
wood screws should be excluded from the scope of the
investigation as allegedly they (i) were not manufactured
in large quantities by the Community industry, and (ii)
those Community producers who specialise in wood
the proceeding.
in support of
screws were not
there is
the investigation has shown that
However,
among
significant
screws
Community
those
supporting the proceeding. Moreover, it is recalled that
the minimum level of support stipulated in the basic
Regulation is not required for each product type, and
for defining the
that
serve as a basis
product
the
arguments above had to be dismissed.

investigation. Therefore,

production
producers,

of wood
including

this cannot

scope of

some

the

of

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(45) Another Community distributor argued that

to the Community industry. Firstly,

fasteners
destined for the do-it-yourself
(DIY) market segment
should be excluded from the scope of the investigation
as allegedly they were not substitutable with fasteners
produced by the Community industry, and are the
product of a separate ‘industry branch’. Following the
disclosure,
this distributor requested and was granted
an additional hearing, during which they reiterated their
arguments that DIY fasteners can clearly be separated
they are of no
from the other products, and that
interest
it should
be noted that DIY fasteners are not
fundamentally
different from other fasteners destined for a more profes­
sional use, and fasteners used in DIY, professional or
industrial uses are to some extent overlapping categories.
The same distributor described some of
the typical
characteristics of
the so-called DIY fasteners, such as
packaging, resistance, markings or coating and argued
that on this basis, fasteners for the DIY segment of the
market could be distinguished from fasteners intended
for use in other segments. However,
it was considered
that those characteristics were not sufficient to draw a
clear line distinguishing the fasteners destined for the DIY
market segment, from other types of fasteners. Finally,
during the investigation and in particular the adversarial
meeting, the representatives of the Community industry
also provided examples of Community companies which
in which
are producing screws and standard fasteners,
It has
the so-called DIY fasteners should be included.
also been ascertained that
the remaining Community
producers have the technical capacity to produce those
so allowed. The
fasteners
arguments of
to be
dismissed.

this distributor had therefore

the market conditions

if

of
further

those nail-screws

(46) A Community producer of anchors imported, from the
PRC, nail-screws used in the production of anchors and
argued that, to the best of their knowledge, there is no
in the
production capacity
Community. They
claimed that nail-screws
should not be included in the product scope as they
cannot be used as a normal screw. However, the inves­
tigation has shown that nail-screws share the same basic
physical characteristics as other fasteners and are also
being produced by the Community industry. These
findings have not been disputed by the company in
question. Accordingly, there were no reasons to exclude
these products from the product scope.

(47)

Two Community producers argued that fasteners without
heads, and ‘female’ fasteners should be included in the
scope of the investigation, on the grounds they have
similar physical characteristics to those of the product
concerned, and are also subject to injury from imports
originating in the PRC.
it should be
pointed out that those products were not included in
the scope of the complaint mentioned in recital 1 and
that, as a consequence, there is no information about

In this respect,

it is
these products in the investigation file. Therefore,
not possible to accept at this stage such changes to the
product scope of the investigation.

2. Like product

to

by

comparable

those manufactured

(48) A number of parties claimed that the fasteners manu­
factured in the PRC for export to the Community were
not
the
Community industry, and that
the latter are used in
applications which differed from fasteners produced in
thus not being in direct competition with
the PRC,
them.
In particular, they claimed that the majority of
fasteners produced in the PRC: (i) are standard products
(mainly ranging between 4.8 and 8.8 class of resistance)
having no special characteristics regarding raw material,
resistance, coating, or certification/safety related aspects;
(ii) they are destined for lower-end applications (non-
professional use and general distribution) as opposed to
high-tech applications; and (iii) they do not meet the
strict requirements of specific end-users such as the auto­
motive, chemical or aerospace industry. Those claims
were stated in a number of written submissions and in
the adversarial meeting. They were also stated in a
written submission received from the PRC authorities.

(49)

(50)

that

levels

Some importers and their associations also claimed,
during the adversarial meeting,
fasteners manu­
factured in the PRC were sold at consistently lower
price
compared to those produced by the
Community industry, and that this demonstrated that
the Chinese and Community-produced fasteners were
destined for different applications. Also to support their
claim, they noted that the Community industry had been
able to increase the volume of its sales and the average
unit selling price, even though the imports from the PRC
had increased significantly during the same period.

fasteners.

In that respect it is recalled that during the adversarial
meeting it was recognised by all parties that there is an
important distinction in the fasteners industry between
standard and so-called ‘special’
Standard
products are described in detail by industry standards
such as, for example, Deutsches Institut für Normung
(DIN) or German Institute for Standardisation standards.
These standards ensure that the products manufactured
by different suppliers in different countries are essentially
interchangeable from a user point of view. Special
fasteners, on the other hand, conform to a particular
is also generally
user's design and/or requirements.
recognised that special
fasteners tend to be used in
more demanding applications such as the automotive,
chemical and other industries and are, on average, signifi­
cantly more expensive to produce and sell than standard
fasteners.

It

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(51) Although the distinction between standard and special
fasteners was not originally part of the product
type
classification (product control numbers or PCN) used in
the investigation,
it was decided after the adversarial
meeting that it should be added to the product charac-
teristics being considered for the dumping and injury
margin calculations. Given that the vast majority of the
exports of the product concerned by the investigated
companies were of standard products, this means that
comparison made are between
in most
standard products produced in the PRC, the analogue
country and the Community.

cases

the

(52)

(53)

a

It was

differences

claimed that,

concluded that

between fasteners of

The submission from the PRC authorities mentioned in
recital 48 enclosed an analysis report detailing alleged
given
quality
standard (DIN 933 is used as an example) manufactured
in the Community and the PRC. This analysis took into
account variations in geometry, hardness and chemical
although both
composition.
the
products tested conformed to the DIN standard,
Community-produced fasteners had a greater consistency,
i.e. less variation with respect to all parameters analysed,
than the PRC-produced fasteners. On this basis, the PRC
the Community-produced
authorities
could not be
product, given its
compared to the PRC product.
it
respect,
In that
should be noted that
the purpose of DIN and other
widely accepted standards is to ensure that products
satisfy certain essential user requirements. Any residual
variation must be within limits which do not substan­
tially affect the fastener's quality and function. Therefore,
a fastener which is marketed as a DIN 933 bolt must be
essentially comparable to another
fastener marketed
under the same standard. Any perceived differences in
quality, which may subsist from a user's point of view,
can be dealt with through an adjustment for physical
differences (see recital 103) but do not mean that the
two products are not comparable.

superior quality,

the
In the same submission it was also argued that
fasteners manufactured by the Community industry
benefit from superior coating techniques which are not
available to manufacturers in the PRC and that therefore
those products cannot be considered alike. However, the
differences in types of coating have been taken into
account by the PCN used in the investigation, and do
not
the fasteners manufactured by the
Community industry and those manufactured in the
PRC are not alike within the meaning of Article 1(4)
this article requires
of
the like product has characteristics closely
only that
resembling those of
the product under consideration.
This argument could therefore not be accepted.

the basic Regulation.

imply that

Indeed,

(54)

In summary, as far as the alleged differences in physical
and technical characteristics are concerned, the investi­

gation showed that despite the wide range of product
types on the market, many of the types manufactured
in the PRC for export
to the Community and those
manufactured by the Community industry were largely
marketed under similar industry standards. Furthermore,
for the purpose of the investigation, price comparisons
were made almost exclusively between fasteners of the
‘standard’ types. In this respect, it is recalled that fasteners
manufactured and classified under the same standards
in principle, satisfy all requirements in terms of
must,
the mechanical properties of
the raw material used,
form, tolerances etc. While it is recognised that not all
types of fasteners can be used for all applications, and
that this is particularly the case for ‘special’ fasteners and
high-end applications, it was found that, within the same
standard, all types of fasteners were found to be inter­
changeable for most of the other applications. Moreover,
notwithstanding the lower prices observed in the PRC,
the European Association of the Iron and Steel Industry
(Eurofer) confirmed that
there is no major quality
difference between the steel produced in the PRC and
the steel produced in the Community when the steel
corresponds to a standardised grade. As a result,
it is
concluded that raw material quality differences do not
affect
the comparability between fasteners exported
from the PRC and those produced and sold in the
Community.

(55) As far as the different price levels are concerned,

it is
considered that price differences between products per se
do not justify the conclusion that a certain product type
should be considered as a different product. As it has
been found that all types of fasteners within the same
standard had similar basic characteristics and end-uses,
the above argument had to be rejected.

(56)

(57)

India, are mostly high-value product

It was also argued by several
importers and exporting
producers that the fasteners produced in the analogue
country,
types
destined for the automotive industry and similar appli­
cations, and therefore are not alike to the fasteners
exported to the Community by the PRC producers. The
investigation has shown, however, that both special and
standard products are also produced and sold in India. As
explained above those fasteners have been found to have
the same basic physical and technical characteristics as
products exported from the PRC.

It is therefore concluded that the fasteners produced and
sold by the Community industry in the Community,
fasteners produced and sold on the domestic market in
the PRC and those produced and sold on the domestic
market in India, which served as an analogue country,
and fasteners produced in the PRC and sold to the
Community
of
alike within
Article 1(4) of the basic Regulation.

the meaning

are

L 29/8

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Official Journal of the European Union

31.1.2009

C. DUMPING

1. Market economy treatment (MET)

(58)

Pursuant to Article 2(7)(b) of the basic Regulation,
in
anti-dumping investigations concerning imports originat­
ing in the PRC, normal value is determined in accordance
with paragraphs 1 to 6 of the said Article for those
producers which are found to meet
the criteria laid
down in Article 2(7)(c) of the basic Regulation.

(59)

Briefly, and for ease of reference only, the MET criteria
are set out in summarised form below:

1. business decisions and costs are made in response to
market conditions and without significant State inter­
ference;

2. firms have one clear set of basic accounting records
which are independently audited in line with inter­
national accounting standards and are applied for all
purposes;

3. there are no significant distortions carried over from

the former non-market economy system;

4. bankruptcy

and property

laws

guarantee

legal

certainty and stability; and

5. exchange rate conversions are carried out at market

rates.

is clear that

(63) All five of the remaining sampled companies or groups
were denied MET on the grounds that the costs of the
major input, steel wire rod, did not substantially reflect
market values, as required by Article 2(7)(c) of the basic
Regulation. It was found that the prices of steel wire rod,
or in some cases, drawn steel wire, charged on the
Chinese market were significantly lower
than those
charged on other markets, such as Europe, India, North
America and Japan (1). Given that China has to import
the majority of its iron ore at international market prices,
it
from any natural
it does not benefit
comparative
advantage, which would explain these
abnormally low prices of steel wire rod on the Chinese
domestic market. At the same time various studies (2),
and even the annual reports of some large steel wire
rod producers (3)
(which supply producers of fasteners
with their raw material, albeit mostly via traders) point
to significant State interference in this
sector. For
instance according to the audited financial statements
of
them
obtained significant Government subsidies in 2006 and
2007. Moreover, thanks to various tax concessions and
grants one of the above companies paid only around
4,5 % of tax on its profit of CNY 2,8 billion in 2007
instead of the standard corporate income tax of 33 %.
One of the reports referred to above, ‘Money for Metal’,
summarises
of
Government subsidies received by the major Chinese
steel producers over the last decade. The same report
identifies more than CNY 393 billion in subsidies
granted to Chinese steel producers and concludes that
this has resulted in artificial growth of China's steel
capacity and production at
its inter­
national competitors.

referred to above, both of

the expense of

the producers

amounts

various

types

and

the

(64)

The interested parties were given an opportunity to
comment on the above findings.

1.1. Sampled companies

(65)

(60) As mentioned in recital 35, 106 exporting producers,
including all the nine sampled companies claimed MET.

(61)

The Commission verified all
these companies' or groups' MET applications at
premises of the nine sampled companies or groups.

information submitted in
the

(62) Of the nine companies or groups inspected for MET, four
were deemed to have provided false or misleading infor­
mation. The four companies or groups concerned were
notified of this and given an opportunity to comment in
the basic Regulation.
accordance with Article 18 of
However, no new evidence or information was received
from any of the four companies that would prevent the
application of Article 18 of the basic Regulation to these
companies. Given the application of the said article to
these four companies, no MET determination was made.

sampled

companies

Several exporting producers argued that the decision to
all
refuse MET
under
to
Article 2(7)(c) of
the basic Regulation, based on
distorted raw material costs, was a misinterpretation of
this Article, which they claimed should be understood to
apply to companies individually, rather than to the sector
in general.
In addition some companies argued that
market values referred to in the said article should be
interpreted as market values in the PRC rather than inter­
national market values.

(1) Source: Steel Bulletin Board and data obtained from and verified at

the companies investigated.

(2) For instance ‘Money for Metal: A detailed Examination of Chinese
Government Subsidies to its Steel Industry’ by Wiley Rein LLP, July
‘China Government Subsidies Survey’ by Anne Stevenson-
2007,
‘Shedding Light on Energy Subsidies in
Yang, February 2007,
China: An Analysis of China's Steel Industry from 2000-2007’ by
Usha C.V. Haley, ‘China's Specialty Steel Subsidies: Massive, Pervasive
and Illegal’ by the Specialty Steel Industry of North America and
‘The China Syndrome: How Subsidies and Government Intervention
Created the World's Largest Steel Industry’ by Wiley Rein & Fielding
LLP, July 2006.

(3) Annual Reports 2007 of Maanshan Iron & Steel Co., Ltd and

Baoshan Iron & Steel Co., Ltd.

31.1.2009

EN

Official Journal of the European Union

L 29/9

(66)

it

to these

arguments,

is noted
the basic Regulation requires,

that
In reply
Article 2(7)(c) of
inter
alia, that the costs of major inputs substantially reflect
market values. The main input of fasteners, steel wire
rod, accounts for around 50 % of the cost of manufac­
turing. Based on data obtained and verified during the
investigation as well as from independent market sources,
such as the ‘Steel Bulletin Board’, it is undisputable that
prices of steel wire rod on the Chinese domestic market
are significantly below prices on other markets. Given
that
from any natural
comparative advantage with regard to iron ore, which
it imports at international market prices, it is considered
that
there is no justification for the abnormally low
prices of steel wire rod, which do not substantially
reflect market values. This conclusion applies equally to
the sector as a whole as well as individually to all of the
investigated sampled companies. Therefore criterion 1 of
Article 2(7)(c) is not considered to be met.

the PRC does not benefit

(67) As regards the interpretation of ‘market value’,

some

steel
of

in the Chinese
above,

In this regard, as mentioned above,

‘market
value’ has to be understood as a non-distorted market
price.
there are
several sources and studies which point to State inter­
ference
as
largest Chinese
mentioned
producers of steel wire rod received various types of
subsidies in 2006 and 2007, as evidenced by their
audited financial statements. It should also be borne in
mind that it is up to the exporting producers to demon­
economy
they operate under market
strate
that
conditions and that
their major inputs
the costs of
substantially reflect market values. This has not been
demonstrated in this case.

sector. Moreover,
the

(68)

It

exporting

producers

that even if

Chinese
and

is clear however,

and
Indian producers. Moreover,

Some exporting producers have also argued that even if
there was a price difference between raw material prices
on the Chinese domestic market and other international
markets, this difference could be explained by quality
differences.
some
quality differences existed, they could not explain the
huge price gap found for steel of similar grades used
the
by
the
Community
the
difference between Chinese prices of steel wire rod and
from published
prices on other markets, as apparent
sources, and referring to the same type of wire rod is
very significant; according to data published by the Steel
Bulletin Board, Chinese domestic prices of steel wire rod
were in the range of EUR 300-350/tonne in the IP
whereas prices in North America, Europe and Japan
ranged between EUR 400-500/tonne for
the same
quality. Data obtained and verified during the investi­
and
gation at
above
Community producers
published data. Therefore it is maintained, that, even if
there were any quality differences,
these could not
explain the huge price difference between raw material
prices found on the Chinese domestic market and those
charged on other international markets.

exporting producers
in line with the

sampled
is

the

(69)

that

also argued

exporting producers

any
Some
distortions in raw material prices should be dealt with
by adjusting the normal value in the dumping calculation
rather than denying MET. However,
in this case, given
the high proportion of steel wire rod in the total cost, it
is clear that Article 2(7)(c), which requires, inter alia, that
the ‘costs of major inputs substantially reflect market
values’
in the
is not met. Hence, any adjustment
dumping calculations in order to address the distorted
largely mean­
input costs would render Article 2(7)(c)
ingless.

(70) One exporting producer group disputed the conclusion
that MET should be refused also because it was found
that the Chinese State (with a 47,18 % shareholding) was
in a position to either significantly influence or block any
decisions regarding the company, and submitted evidence
in this regard. In particular, it argued that decisions on
prices, costs and inputs were taken by the general
manager and vice general managers, appointed by the
Board of Directors
shareholders.
Therefore it claimed that the fact that certain decisions
were adopted by the shareholder meeting with a 2/3
majority was
those decisions
irrelevant, as none of
concerned business decisions regarding prices, costs and
inputs.

and not by the

(71)

It is considered that the fact that the Board of Directors,
appointed by the controlling shareholder,
remained
unchanged during the privatisation process casts doubts
over the independence of the Board members vis-à-vis
the State. It is also noteworthy that the composition of
the Board of Directors did not reflect the proportion of
shareholding in the group following the privatisation.
Therefore it cannot be excluded that business decisions
were indirectly influenced by the State and the company
was unable to provide any evidence to the contrary.

(72)

Therefore the initial finding that MET should be denied
to this group also on this ground is maintained.

(73) A second exporting producer which was denied MET
disputed the Commission's conclusions
regarding its
accounting standards and distortions carried over from
the former non-market economy system and submitted
arguments that these findings should not be a basis to
deny them MET. These findings have been analysed in
detail. As regards the accounting standards,
is still
undisputed that the company did not comply with inter­
national and Chinese accounting standards with regard to
the
the depreciation of a fixed asset. As
distortions carried over from the former non-market
economy system linked to the privatisation of
the
company prior to the IP, the company did not submit
any new evidence which would allow the Commission to
alter its conclusions as to the privatisation process.

regards

it

L 29/10

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Official Journal of the European Union

31.1.2009

(74)

Therefore the initial finding that MET should be denied
to this company on these further two grounds is main­
tained.

(75) A third exporting producer argued that the fact that a
majority of its capital was controlled through a Trade
Union did not imply that the first MET criterion was
not fulfilled. However, the company could not demon­
strate how the shareholders were able to exert control
over the company freely and according to their share
capital, as is the case in a market economy environment.
Therefore, State interference cannot be excluded. The
same company disputed the finding that it had received
financial support from the State on especially favourable
conditions, given that its debts to the State carried a
certain interest rate which was close to the prevailing
market rates. However, not only was the agreed interest
rate below market levels, but also the debts to the State
had not been serviced in accordance with the agreed
also claimed that only
schedules. This
Chinese accounting standards
should be used as a
criterion for granting MET.

company

(76) However, Article 2(7)(c) of the basic Regulation requires
that companies are audited in line with international
accounting standards, as mentioned above. Moreover,
this company's accounting practices were also found
not to be in line with Chinese accounting regulations.
Their claims therefore had to be dismissed.

1.2. Companies granted individual examination

(77) As mentioned above,

four exporting producers not
selected in the sample requested and were granted indi­
vidual examination in accordance with Article 17(3) of
the basic Regulation.

(78) One producer group provided misleading information
and thus the provisions of Article 18(1) of the basic
Regulation were applied. MET was denied to two of
the remaining three companies on the same grounds as
described above for the sampled companies, i.e. they did
not meet the first MET criterion under Article 2(7)(c) of
the basic Regulation as costs of their major input, steel
wire, did not substantially reflect international market
values. As for the fourth company, MET was denied as
this company did not fulfil the second and third MET
criteria.

(79) One of the companies granted individual examination
disputed the Commission's finding that MET should be
refused to it based on the failure to fulfil the first MET
criterion, claiming that steel wire was not a main input in
its production process and in addition, part of it had
been sourced from sources other than Chinese steel
mills. However,
this company's costs in the IP were
inflated by start-up costs, hence making the proportion
of steel wire in the total cost appear less significant than
it would be in normal circumstances. As regards the

proportion of steel wire sourced from Chinese steel
mills,
steel wire
purchased in the IP. These claims were therefore rejected.

it accounted for

the majority of

2. Individual treatment (IT)

2.1. Sampled companies

(80)

to Article 2(7)(a) of

the basic Regulation, a
Pursuant
countrywide duty (if any)
is established for countries
falling under that Article, except in those cases where
companies are able to demonstrate, in accordance with
Article 9(5) of the basic Regulation, that their export
prices and quantities as well as the conditions and
terms of
that exchange
rates are carried out at market rates; and that any State
interference is not such as to permit circumvention of
measures if exporters are given different rates of duty.

sales are freely determined;

(81) All five exporting producers in the sample which were
denied MET also claimed IT in the event that they were
the information
not granted MET. On the basis of
available it was
these
initially found that
companies met all of the requirements to be granted IT
in accordance with Article 9(5) of the basic Regulation.

four of

the preliminary findings of

(82) As disclosed to the interested parties in the information
the
document setting out
investigation,
it was initially intended not to grant IT
to the fifth company on the grounds that it could not
demonstrate that
foreign shareholders were free to
repatriate capital and profits, as required by the basic
Regulation. Following disclosure of
the preliminary
the company submitted additional
findings, however,
explanations, which were confirmed during a hearing
with a representative of the foreign shareholder.
It is
therefore accepted that there were no restrictions to the
repatriation of capital and profits, and the company can
thus be granted IT.

(83)

It was therefore concluded that of
the nine sampled
exporting producers in the PRC, IT should be granted
to the following ones:

— Ningbo Yonghong Fasteners Co., Ltd

— Ningbo Jinding Fastener Co., Ltd

— Biao Wu Tensile Fasteners Co., Ltd

— Kunshan Chenghe Standard Components Co., Ltd

— Changshu City Standard Parts Factory and Changshu
British Shanghai International Fastener Co., Ltd

31.1.2009

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Official Journal of the European Union

L 29/11

2.2. Companies granted individual examination

(90)

(84) All of the three exporting producers denied MET also
claimed IT in the event
they were not granted
that
MET. On the basis of the information available it was
found that they met all of the requirements to be granted
IT in accordance with Article 9(5) of the basic Regu­
lation.

(85)

It was therefore concluded that IT should be granted to
the following three exporting producers in the PRC:

— CELO Suzhou Precision Fasteners Co., Ltd

— Golden Horse (Dong Guan) Metal Manufactory Co.,

Ltd

— Yantai Agrati Fasteners Co., Ltd

3. Determination of normal value for the exporting

producers in the PRC not granted MET

3.1. Analogue country

(86) According to Article 2(7)(a) of

the basic Regulation,
normal value for the exporting producers not granted
MET has to be established on the basis of the prices or
constructed value in an analogue country.

(87)

(88)

(89)

In the Notice of Initiation, the intention was indicated to
use India as an appropriate analogue country for the
purpose of establishing normal value for the PRC and
interested parties were invited to comment on this.

importers

in the Community and exporting
Several
producers in the PRC opposed the choice of
India,
arguing that its product range is not comparable with
that of the Chinese exporting producers. Most of those
parties suggested using Taiwan instead.

cooperation from
The Commission actively sought
including in
known producers of fasteners worldwide,
the Taiwanese producers
Taiwan. However, none of
agreed to cooperate. Neither did any other
third
country producers offer to cooperate in the proceeding.
By contrast, two Indian producers agreed to cooperate by
replying to the questionnaire intended for producers in
the analogue country. The data submitted in their ques­
tionnaire replies were verified at the premises of these
two companies. However only one of the companies
provided sufficiently detailed data to be used as a basis
for establishing normal value.

the definitive disclosure,

a number of
Following
importers and exporters questioned the appropriateness
of using the data from the latter Indian producer on the
grounds that (i) the quantity produced and sold in the
Indian domestic market by this producer would allegedly
not be representative of the quantity exported from the
PRC to the Community; and (ii) this Indian producer has
links with one of the Community
alleged commercial
producers supporting the complaint. In this respect,
it
should be noted that (i) the sales volume of the Indian
producer were considered sufficiently representative to
allow for the establishment of reliable normal, values;
and (ii) the fact that the analogue country producer has
links
the
complaint does not make the choice of that analogue
country unreasonable. It was also noted that these links
were established after the IP. Given the above and the
absence of
third country
producers, the choice of India as analogue country was
considered reasonable.

to a Community producer

cooperation from other

supporting

(91)

(92)

(93)

In view of the foregoing, considering the conditions of
competition and openness of the Indian market, and the
fact that cooperating Indian producer sold product types
comparable to those exported by the PRC exporting
it was concluded that India was a suitable
producers,
market economy third country within the meaning of
Article 2(7) of the basic Regulation.

3.2. Normal value

to Article 2(7)(a) of

Pursuant
the basic Regulation,
normal value for the exporting producers not granted
MET was established on the basis of verified information
received from the producer in the analogue country as
set out below.

It was examined whether each type of
the product
concerned sold in representative quantities on the
Indian domestic market could be considered as being
sold in the ordinary course of
to
Article 2(4) of the basic Regulation. This was done by
establishing for each product type the proportion of pro­
fitable sales to independent customers on the domestic
market during the investigation period.

trade pursuant

(94) Where the sales volume of a product type, sold at a net
to or above the calculated cost of
sales price equal
the total
production, represented more than 80 % of
sales volume of
type, and where the weighted
average price of that type was equal to or above the
cost of production, normal value was based on the
actual domestic price. This price was calculated as a
weighted average of the prices of all domestic sales of
that type made during the IP,
irrespective of whether
these sales were profitable or not.

that

L 29/12

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Official Journal of the European Union

31.1.2009

(95) Where the volume of profitable sales of a product type
represented 80 % or less of the total sales volume of that
type, or where the weighted average price of that type
was below the cost of production, normal value was
based on the actual domestic price, calculated as a
weighted average of profitable sales of that type only.

(96) Depending on the product type, normal value was estab­
lished based on weighted average sales prices of all sales
or weighted average sales prices of profitable sales only,
on the domestic market of the analogue country based
on the verified data of one producer in that country.

(97) One of the companies granted individual examination
the normal value
and some importers claimed that
obtained from a
in India, which
single producer
allegedly does not produce similar types of fasteners as
the company in question, would not provide for the best
basis for a proper comparison. Therefore it suggested
that, as provided for by Article 2(7)(a) of the basic regu­
lation, the normal value should be calculated ‘on any
other reasonable basis’, in this case on the basis of the
alleged
exporters'
distortions in raw material costs.

adjusted

figures,

own

the

for

(98)

The above claim was rejected, since it was found that the
Indian producer, as mentioned in recital 91, also sold
types of
fasteners which were comparable to those
exported by the PRC exporting producers. In addition,
as explained in recital 103, appropriate adjustments
affecting price comparability were made to the normal
value.

of the information available from cooperating unrelated
importers.

3.4. Comparison

(101) The normal value and export prices were compared on
an ex-works basis. For the purpose of ensuring a fair
comparison between the normal value and the export
price, due allowance in the form of adjustments was
made for differences affecting prices and price compar­
ability in accordance with Article 2(10) of
the basic
Regulation.

(102) The price comparison between the fasteners exported
from the PRC and those sold on the Indian market by
the Indian cooperating producer was made by distin­
guishing between standard and special fastener types.

(103)

the

applied by

control procedures

In addition, based on evidence collected on the spot, the
quality
Indian
producer whose data was used for establishing the
normal value were more advanced than those observed
the Chinese cooperating exporting producers who
at
produced and exported mainly
standard types of
In these cases an adjustment based on the
fasteners.
cost of quality control
the Indian producer
was made to the Indian normal value

found at

(104)

appropriate

above,
adjustments
In addition to the
concerning transport,
insurance, handling and ancillary
costs, packing, credit, and bank charges were granted
in all cases where they were found to be reasonable,
accurate and supported by verified evidence.

3.3. Export prices

(99)

In all cases where the product concerned was exported to
independent customers in the Community, the export
price was established in accordance with Article 2(8) of
the basic Regulation, namely on the basis of export
prices actually paid or payable.

4. Dumping margins

4.1. For the sampled cooperating exporting producers granted

IT

(100) As regards two exporting producers, all or part of their
export sales to the Community were made via related
companies located in the Community and subsequently
resold to unrelated companies in the Community.
In
these cases the export price was constructed, pursuant
to Article 2(9) of the basic Regulation, on the basis of
the price at which the imported products were first
resold to an independent buyer, duly adjusted for all
costs
incurred between importation and resale, and
profits. The profit margin was established on the basis

(105) For the five sampled companies granted IT, dumping
margins were established by comparing the weighted
average normal
Indian
producer who cooperated fully with each company's
weighted average export price to the Community, as
provided for in Article 2(11) of the basic Regulation.

established

value

the

for

(106) The sample average was calculated as a weighted average
of the dumping margins of all five cooperating sampled
companies, in accordance with Article 9(6) of the basic
Regulation.

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Official Journal of the European Union

L 29/13

(107) The

definitive

a
dumping margins,
percentage of the cif import price at the Community
border, duty unpaid, are the following:

expressed

as

Company

Dumping margin

Biao Wu Tensile Fasteners Co., Ltd

69,9 %

Kunshan Chenghe Standard Components Co.,
Ltd

93,2 %

margin for the non-cooperating companies was estab­
lished as an average of the value found from Eurostat
data and the highest margins found for product types
sold in a representative quantity by the cooperating
exporting producer with the highest dumping margin.

(111) On this basis the countrywide dumping margin amounts
to 115,4 % of the cif Community frontier price, duty
unpaid.

Ningbo Jinding Fastener Co., Ltd

74,5 %

1. Community production

D. INJURY

Ningbo Yonghong Fasteners Co., Ltd

105,3 %

Changshu City Standard Parts Factory and
Changshu
International
Fastener Co., Ltd

Shanghai

British

63,1 %

Cooperating exporting producers not selected
to form part of the sample

78,1 %

4.2. For

the cooperating exporting producers granted indi­

vidual examination

(108) Dumping margins were established as described above, in

recital 107.

(109) The

definitive

a
dumping margins,
percentage of the cif import price at the Community
border, duty unpaid, are the following:

expressed

as

Company

Dumping margin

CELO Suzhou Precision Fasteners Co., Ltd

0,0 %

Golden Horse (Dong Guan) Metal Manu­
factory Co., Ltd

26,5 %

Yantai Agrati Fasteners Co., Ltd

0,0 %

(112) The investigation established that

the like product

is
manufactured by a high number of producers in the
Community, estimated at over 300 mostly small and
medium-sized enterprises but
including a few larger
companies. A majority of Community producers did
not make themselves known following the publication
of the Notice of Initiation. The complaining producers
on whose behalf the complaint was lodged cooperated
with the investigation, although one of the companies,
selected in the sample, did not provide sufficient infor­
mation during the on-spot verification to be considered
as cooperating. This company was therefore excluded
from the data relating to the Community industry. A
number of other producers,
supporting or
opposing the complaint, supplied general data on their
volume of production and sales. Since many producers in
the Community, mostly small
enterprises, did not
cooperate with the investigation, it was not possible to
define precisely
volume of Community
total
production on the basis of individual company data.

either

the

(113) Consequently, the volume of Community production has
been estimated by using Eurostat industrial production
data. Based on this data, the total Community production
in 2006 was found to be 1 431 602 tonnes.

2. Definition of the Community industry

(114) The production of

the Community producers

that
supported the complaint and fully cooperated in the
the production of
investigation represents 27,0 % of
the product
is
therefore considered that
these companies constitute
the Community industry within the meaning of Articles
4(1) and 5(4) of the basic Regulation.

concerned in the Community.

It

4.3. For all other exporting producers

(115)

(110)

In order to calculate the countrywide dumping margin
applicable to all other exporters in the PRC, the level of
cooperation was first established. The degree of cooper­
ation can be considered low, i.e. approximately 53 % of
imports from the PRC. Therefore the dumping
total

It was alleged by some Community importers and
exporting producers, and confirmed by the investigation,
that a number of the cooperating Community producers,
in addition to their own manufacturing facilities in the
Community had also imported significant quantities of
the product concerned from the PRC for resale on the
Community market.

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Official Journal of the European Union

31.1.2009

(116) Moreover,

partly

relocated

producers

it was argued that three of the cooperating
Community
their
had
production by establishing production sites in the PRC
and that, therefore, should be excluded from the standing
the Chinese
calculation. However,
subsidiaries of these producers were established predom-
inantly to serve the PRC market and the centre of interest
of these companies had remained in the Community.

it was found that

(117) As far as the volume of

imports by the cooperating
manufacturers in the Community is concerned, the inves­
tigation revealed that some companies imported rela­
tively low quantities of the product concerned originating
in the PRC, when compared to the sales of their own
production in the Community. Those sales,
through
related and unrelated companies, were in much lower
quantities than what was alleged by the aforementioned
parties.

should all be considered as part of
production.

the Community

3. Community consumption

(119) Community consumption in 2006 was established on
the basis of the total production volume reported to
Eurostat by the Member States authorities, plus imports
and minus exports. The apparent consumption was
found to be in line with that mentioned in the
complaint. Therefore, in the absence of any other infor­
mation, the data found in the complaint for 2004-2005
were also used. For the years between 2003 and the IP
the import and export volumes were based on Eurostat
data. For 2003 no data were available and therefore an
estimate of
the Community consumption and market
shares was not possible.

(118) The investigation revealed that the centre of interest of
these companies was undoubtedly in the Community,
from the PRC they
and that despite their

imports

(120) On the basis of these data,

it was found that between
2004 and the IP demand for the product concerned in
the Community increased by 29 %.

2003

2004

2005

2006

IP

Community consumption (tonnes)

N/A

1 761 838

1 744 473

2 104 425

2 272 981

Index 2004 = 100

N/A

100

99

119

129

Sources: Eurostat, Comext, complaint.

4. Imports into the Community from the country concerned

4.1. Volume and market share of imports concerned

(121) The volume of imports from the PRC was obtained from Eurostat data. In terms of volume and

market share, the evolution of imports from the PRC has been the following:

Import volumes from PRC (tonnes)

216 085

295 227

387 783

485 435

601 887

2003

2004

2005

2006

IP

Index

Market share PRC

Source: Eurostat.

100

N/A

137

179

225

17 %

22 %

23 %

279

26 %

(122) While consumption of the product concerned increased by 29 % between 2004 and the IP, imports
from the PRC rose continuously, by 103 % during the same period. Consequently, the market share
of the PRC during the period considered increased from 17 % to 26 % in the same period.

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4.2. Prices of imports and undercutting

(123) The following table shows the development of average import prices from the PRC. Over the period
considered, these prices remained fairly stable, with a slight increase until 2005 and a decrease in
2006.

Import prices from the PRC EUR/tonnes

938,70

968,11

992,56

931,30

958,28

2003

2004

2005

2006

IP

Index

Source: Eurostat.

100

103

106

99

102

(124) Concerning the selling price on the Community market of the product concerned during the IP, a
comparison was made between the prices of the sampled Community producers and those of the
sampled exporting producers in the PRC. The relevant sales prices of the Community industry were
those to independent customers, adjusted where necessary to an ex-works level, i.e. excluding freight
costs in the Community and after deduction of discounts and rebates. These prices were compared
with the sales prices charged by the Chinese exporting producers net of discounts and adjusted where
necessary to cif Community frontier prices with an appropriate adjustment for the customs clearance
costs and post-importation costs. Given that the Community industry sells its production both to
distributors and end-users, whereas the Chinese goods are sold via related or unrelated importers
and/or traders, an adjustment to the import price was made where appropriate to ensure that the
comparison is made at the same level of trade.

(125) As mentioned, Community importers and exporting producers submitted that the Chinese products
are mostly standard fasteners of basic quality, while the Community industry tends to cater to the
most expensive fasteners market segments. Therefore,
it was claimed that any price comparisons
based on average prices would be misleading. In this respect, it should be noted that the undercutting
margin was established on the basis of company data by product type, which takes into consideration
the characteristics of the products being compared. In particular, a similar method was used as the
one described in recitals 102 and 103 and standard fasteners, which constitute the vast majority of
the Chinese exports, were distinguished from special fastener types.

(126) The comparison shows that, during the IP,
Community at prices which undercut
percentage of the latter, by an average of more than 40 %.

imports of the product concerned were sold in the
the Community industry's prices, when expressed as a

5. Situation of the Community industry

(127)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports from the PRC on the Community industry included an analysis of all economic factors and
indices having a bearing on the state of the industry from 2003 to the IP. The analysis of the
situation of the Community industry was carried out for the sampled companies as mentioned above,
except for production, production capacity, capacity utilisation, sales, market share, employment and
productivity, where the figures are for the total Community industry and are based on the infor­
mation provided by the cooperating Community producers.

5.1. Production, production capacity and capacity utilisation

(128) The evolution of production, production capacity and capacity utilisation for the Community

industry was the following:

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Total Community industry

2003

2004

2005

2006

IP

Production in volume (tonnes)

379 354

407 185

371 884

387 057

403 040

Index

100

107

98

102

106

Production capacity (tonnes)

712 567

726 171

731 200

742 901

768 689

Index

Capacity utilisation (%)

100

53

102

56

102

51

104

52

108

52

(129) Despite the significant increase in demand of 29 % between 2004 and the IP, the Community
the period considered and was only 6 %

industry's production volume fluctuated throughout
higher in the IP compared to 2003.

the figures regarding production capacities had been overestimated,

(130) Production capacity grew only slightly over the period considered, which means that capacity
utilisation remained at a very low level of 52 to 53 % throughout the period. Some Community
importers claimed that
for
example by assuming continuous production (24 hours/365 days) or by underestimating the time
necessary to switch the tooling for new production types or by including old equipment. However,
capacity was calculated on the basis of 3 shifts on 220 days, with due regard to the production
bottlenecks which in most cases were found to be in the heat treatment line. The number of cold
forging machines available has been verified, and the average time needed to adapt the tooling to new
production batches (which can range between 2 and 12 hours) has been taken into account in the
calculation of the capacity available.

(131) The evolution of production and capacity indicators of the Community industry can be explained as

follows:

— The Community industry maintained or tried to improve its presence into the market segments of
higher quality product (special products), which command a higher unit price, but are also
produced in smaller quantities.

— The Community industry had therefore to upgrade their equipment and adapt production
patterns in order to produce these more specialised product types, which explains the slight
increase in overall capacity and also the high percentage of idle capacity, previously dedicated
to the production of standard types.

(132) Community unrelated importers also argued that, had the Community producers additionally
produced the equivalent quantities that were imported from the PRC in the period considered, the
impact upon capacity utilisation would have been very small and it would have remained below
60 %. In this respect, it should be noted that the quantities imported from the PRC during the period
considered are significant as they represent about 26,9 % of the total Community production in
2006. Consequently, the positive effect on capacity utilisation would have been more significant than
alleged if these quantities had been produced in the Community, for which the capacity was available.

(133) Following the definitive disclosure, several Community unrelated importers argued that should the
measures be finally adopted, they would lead to a shortage of supply in the Community market, of
more than 200 000 tonnes. However, based on the spare capacity levels found in the IP, the actual
production capacity available in the Community is estimated to be above 2,5 million tonnes i.e. well
in excess of the level of Community consumption of 2,27 million tonnes. Therefore, it was found
that the spare production capacity available in the Community is well above the alleged shortage of
200 000 tonnes and would easily meet the demand for the product concerned.

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5.2. Stocks

(134) The figures below represent the Community industry's volume of stocks at the end of each period.

Sampled Community Industry

2003

2004

2005

2006

IP

Stock in volume of finished goods

78 722

82 275

77 293

72 360

74 859

Index

100

105

98

92

95

(135) Stocks decreased by 5 % during the period considered, despite the 7 % increase in production. This is
mainly related to the decreasing share of standard products in the Community industry's portfolio.
However, considering that the production of the like product in the Community is predominantly by
order, the level of inventories is not considered to be a very meaningful indicator for this product.

5.3. Sales, market share, growth and average unit prices in the Community

(136) The figures below represent

the Community industry's sales to independent customers in the

Community.

Total Community industry

2003

2004

2005

2006

IP

Sales of the Community industry in the
Community (1 000 EUR)

722 974

739 563

754 101

816 532

874 380

Index

100

102

104

113

121

Sales of the Community industry in the
Community (tonnes)

338 417

383 625

351 296

378 650

377 966

Index

100

113

104

112

112

selling price of

Unit
the Community
industry in the Community (EUR/tonnes)

2 136

1 928

2 147

2 156

2 313

Index

Market share of Community Industry in
(tonnes)

100

N/A

90

100

101

22 %

20 %

18 %

108

17 %

Index

N/A

100

92

83

76

(137) The Community industry's sales volumes increased by 12 % during the period considered and by
21 % in value as a result of the increasing share of special products based on customers' drawings.

(138) At the same time,

it was found that average sales prices to unrelated buyers in the Community
market increased during the period considered. This price increase should be seen in the light of the
significant increase in raw material prices and the fact that the Community industry has concentrated
its efforts on the higher segment of the market (special products) which was less affected by the
dumped imports. High-quality products, meeting specific needs from the customers, as opposed to
standard products, are generally more expensive on a unit-selling price basis. Hence, the increase in
sales prices reflects both the increase in raw material costs but also the changes in the product range
produced by the Community industry.

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(139) After an increase between 2003 and 2004, the volume of sales of the Community producers
decreased by 1 %. At the same time, Community consumption increased by 29 %, meaning that
the Community industry was unable to take advantage of the increase in Community consumption
and thus that the market share of the Community producers declined by 24 % in less than three
years. In all likelihood the drop in the Community producers' market share, if calculated for the
whole period considered (i.e. including 2003), would be even higher.

(140)

It was thus found that the Community industry could not benefit from the growth of the market
resulting from the increase in Community consumption as dumped imports from the PRC deprived
Community producers of the opportunity to continue production of standard products on a larger
scale.

5.4. Profitability and cash flow

Sampled Community industry

2003

2004

2005

2006

IP

Profitability of sales of the like product in
the Community

Cash flow from sales of the like product in
the Community (1 000 EUR)

2,1 %

4,7 %

3,4 %

2,9 %

4,4 %

60 772

69 501

80 874

73 372

65 200

Index

100

114

133

121

107

(141) The levels of profits from the sale of the like product by the Community industry fluctuated

throughout the period considered while only reaching moderately positive levels.

(142) Profitability was at its lowest level in 2003 (2,1 %) but it has since improved, which is linked partly
to the efforts of the Community industry to reduce manufacturing costs and increase productivity
and the fact that they concentrated their efforts on the supply of high quality products generating
higher revenues than standard products, the former being less affected by dumped imports from the
PRC than the latter.

(143)

It should be noted that the overall positive profitability during the period under consideration
coincided with an expanding market during an expansion phase of the economic cycle which
took place during 2004 and beginning of 2008, and it is likely to deteriorate significantly when
these trends are reversed. Indeed, as a widespread industrial product, fasteners are highly sensitive to
the variations of the general economic situation and the industrial production in particular.

(144) The evolution of the cash flow from the sales in the Community of the like product increased by

33 % up to 2005, but returned in the IP to close to its initial level.

5.5. Investments, return on investments, and ability to raise capital

(145) The production of fasteners is relatively capital intensive. The Community industry has argued that
the optimisation of production is needed to respond to a more and more challenging market
environment. In order to achieve this flexibility, the Community industry has maintained relatively
high levels of investment, which has declined somewhat during the period considered but still
remains at a significant level. This investment was mainly for the purchase of new machinery to
optimise production.

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Official Journal of the European Union

L 29/19

Sampled Community industry

2003

2004

2005

2006

IP

Total

investments in the PC (1 000 EUR)

35 294

23 965

31 373

30 634

31 442

Index

100

68

89

87

89

(146) During the period considered, the return on investment, expressed as a percentage of net sales,
increased by seven percentage points between 2003 and the IP. This was explained by the fact
that the Community industry has tried to maximise the use of its existing production capacities
without making large scale investments. As shown during the investigation, all sampled producers
have developed their internal tooling resources so as to adapt their production facilities to their new
customer base (special products based on customers' drawings).

Sampled Community industry

Return on investment

2003

6 %

2004

16 %

2005

12 %

2006

12 %

IP

13 %

(147) No evidence was found in respect of a reduced or increased ability to raise capital over the period

considered.

5.6. Employment and productivity

(148) The evolution of employment, productivity and labour costs in the Community industry were as

follows:

Total Community industry

2003

2004

2005

2006

IP

Number of employees

5 600

6 353

6 359

6 272

6 257

Index

Productivity (tonnes/employee)

Index

100

68

100

113

114

112

112

64

95

58

86

62

91

64

95

(149) The Community industry increased its number of employees between 2003 and the IP. This was a
result of both an effort to maintain production volume and production of more diversified complex
products requiring a constant flexibility of tooling and machineries. The results of this strategic
process within the Community industry was also reflected in productivity, which remained stable
during the period considered although they had to adapt to their new customer base (special products
based on customers' drawings) requiring more human resources.

5.7. Wages

(150) Average wage levels increased moderately during the period considered.

Sampled Community industry

2003

2004

2005

2006

IP

Labour costs per employee for the PC

30 478

32 042

32 089

34 232

35 662

Index

100

105

105

112

117

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5.8. Magnitude of the actual margin of dumping and recovery from past dumping

(151) As indicated in recital 150, the dumping margins found are clearly above de minimis. Furthermore,
given the volume and the price of the dumped imports, the impact of the actual margin of dumping
cannot be considered negligible.

(152) The Community is not recovering from the effects of past dumping since no investigations have been

carried out prior to the current one.

5.9. Conclusion on injury

(153) Between 2003 and the IP the volume of dumped imports of the product concerned from the PRC
increased by almost 180 %, reaching a 26 % market share in the IP. Moreover, in the IP, the sales
prices of the Community industry were substantially undercut by those of the dumped imports of the
product concerned. On a weighted average basis, price undercutting was over 40 %.

(154) At the same time, while the Community consumption increased by 29 %, the sales volume of the
Community industry only decreased by 1 %. Its market share fell by 24 % and it could not fully pass
on the global increase in raw material prices to its customers, resulting in continuing low levels of
profitability.

(155) As a consequence, production did not increase at the same pace as Community consumption, and
capacity utilisation remained very low, at around 50 %, during the period considered. This has also
had a negative impact on profitability, as it kept the industry from fully taking advantage of
economies of scale.

(156) The impact of the dumped imports upon the profitability of the Community industry was somewhat
mitigated during the period under consideration by the Community market expansion and the
favourable economic cycle. However, this situation could be reversed when this cycle comes to an
end.

(157) Notwithstanding the industry's considerable efforts to maintain production volume, through flexible
production throughout the period considered and its continuing efforts to increase productivity and
competitiveness, its profitability, cash flow and return on investment did not reflect the continuing
increase of the Community demand for the product concerned. This trend could severely impact the
Community industry's capacity to maintain the production of high-quality parts.

(158) Subsequent to the disclosure of the information document, exporting producers in China and the
Community importers argued that since some indicators such as sales volume, prices, and profit
show a positive evolution during the period considered, the Commission should conclude that the
Community industry has not suffered material injury.

(159) The Community industry, on the other hand, has argued that the current low levels of profitability
are increasingly affecting its ability to maintain and improve the production equipment at a level
which would allow them to maintain a significant presence in the higher end of the market. Hence,
the loss of high production volumes of standard products is also affecting the Community industry
capacity to continue to provide high-quality products.

(160) The investigation has since confirmed that material injury resulted from the significant displacement
of Community products by Chinese imports in some important market segments, with a negative
impact on capacity utilisation and profitability, although this impact has been somewhat attenuated
by the fact hat the industry managed to compensate lower production volumes by focusing on
market segments and products generating higher revenues.

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(161)

In the light of the foregoing, it is concluded that the Community industry suffered material injury
within the meaning of Article 3 of the basic Regulation.

1. Preliminary remark

E. CAUSATION

(162)

link between the dumped imports from the PRC and the material

In accordance with Articles 3(6) and (7) of the basic Regulation, it was examined whether there was a
injury suffered by the
causal
Community industry. Known factors other than the dumped imports, which could at the same
time have injured the Community industry, were also examined to ensure that the possible injury
caused by these other factors was not attributed to the dumped imports.

2. Effect of the imports from the PRC

(163) Between 2004 and the IP, the apparent Community consumption increased by 29 % (in volume),
while the Community producers' sales only increased by 17 %. The Community producers therefore
lost over 6,8 percentage points of market share in the same period.

(164) Community unrelated importers argued that if sales were expressed in value rather than quantities,
the picture would be significantly different, as the unit selling price of Community produced fasteners
is significantly higher than PRC products and has increased during the period considered. However,
when analysing the impact of low-priced imports on the Community market,
it was considered
in line with past practice, to assess import trends and market shares primarily by
appropriate,
volumes and not values. Sales values furthermore are affected by changes in the product mix, as
is the case here where the Community industry moved to higher value products. Finally, it should be
noted that trends in sales are only one of the injury factors and is not decisive as such.

(165) The significant increase in the volume of the dumped imports from the PRC by over 170 % between
2003 and the IP and of their market share in volume of the Community market from 17 % to 26 %
between 2004 and the IP coincided with the continuously declining loss of market share of the
Community producers.

(166)

In the period considered, the prices of the dumped imports remained relatively stable and low, in
spite of the increase in raw material prices experienced at a world wide level. Unlike PRC exporters,
the selling prices applied by Community producers followed the upward trend in raw material costs.

(167)

In reaction to the increasing quantities of imports of standard products originating in the PRC, the
Community industry has developed its production activities of special parts (based on drawings from
customers), thus managing to maintain its production volumes and avoid a further deterioration of
profitability. However, these products, belonging to the higher end of the market cannot fully
compensate for the loss of high volumes of production of standards products.

(168)

In addition, the prices of the dumped imports significantly undercut those of the Community
industry exerting a strong downward pressure at a time when the costs of raw materials increased
significantly. The investigation showed that the Community industry was not in a position to pass on
all cost increases to its customers due to the fierce price pressure exerted by the significant volumes
of dumped products imported from the PRC. This led to a lack of sufficient levels of profitability, and
low return on investment and cash flow.

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(169) A number of exporters, importers and their associations submitted that the Chinese exports are not
in competition with the Community industry products since they are in different, and comple­
mentary, product categories. While it seems to be the case that Chinese exports during the IP
were concentrated in some market segments such as standard screws and bolts,
it should be
borne in mind that there is nevertheless a significant market overlap between products produced
and sold by the Community industry and Chinese exporters, and that this is a dynamically evolving
situation. The Community industry has already lost most of its market share to imports in some
market segments, but it could also lose the market in its current strong products, if the present trends
continue.

(170) Moreover, Eurostat data showed substantial quantities of production in the Community for each CN
code, in competition with imports from the PRC. Some importers have argued that although there is
Community production in all CN codes, this is not the case for some product types and qualities
within each CN code. However, no data were provided to support this statement. Moreover, as
shown in section 4.5.1, Community producers are currently using about one-half of their production
capacity, and are technically capable of producing all kinds of
justified by market
conditions.

fasteners if

(171)

It is therefore concluded that the pressure exerted by the dumped imports, which significantly
increased their volume and market share from 2003 onwards, and which were made at dumped
prices, played a determining role in the injury suffered by the Community industry.

3. Effect of other factors

3.1. Imports from other third countries

(172) As mentioned above,

the PRC was the most significant exporter of

to the
the like product
Community market during the period considered. The share of
imports from the PRC of the
product concerned out of the total imports from the rest of the world increased by 20 % during
the period considered reaching 61 % at the end of the IP.

2003

2004

2005

2006

IP

Total imports from the rest of the world
(excluding PRC) — tonnes

321 059

337 402

306 525

359 860

391 590

Index

100

105

95

112

122

Total imports from the rest of the world
(excluding PRC) — 1 000 EUR

725 264

799 161

825 250

929 873

1 052 993

Index

100

110

114

128

145

Unit Price: (EUR/tonne)

2 258

2 368

2 692

2 583

2 689

Index

100

105

119

114

119

Share of PRC Imports out of total rest of
the world

40,23 %

46,67 %

55,85 %

57,43 %

60,58 %

Source: Comext.

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(173) Furthermore, as shown in the graph below (source: Comext), it was found that the average unit selling
prices (in euro) of imports from the rest of the world did not follow the same trend as imports from
the PRC, as the former increased by 19 % during the period considered against 2 % for the imports
from the PRC. The average unit price (in euro) per tonne of the rest of the world was 180 % higher
than the average unit price per tonne imported from the PRC.

(174) Accordingly,

it

is considered that

imports originating in other third countries could not have
contributed to the injury suffered by the Community industry. More specifically, the table below
which includes information for the main exporting countries, namely Taiwan, Japan and the United
States of America, shows exactly the same trends as for the rest of the world.

2003

2004

2005

2006

IP

Taiwan (tonnes)

171 770

180 176

160 765

169 777

186 901

Japan (tonnes)

USA (tonnes)

22 392

17 289

21 735

52 056

56 852

6 537

6 132

6 059

7 254

7 459

Index (aggregated)

100

101

94

114

125

Aggregated unit price: (EUR/tonne)

2 238

2 297

2 626

2 456

2 510

Source: Comext.

3.2. Export performance of the Community industry

(175)

It was also examined whether or not the exports of the Community industry to non-Community
countries may have contributed to the injury suffered during the period considered. Exports to non-
Community countries represented only around 11 % of the Community industry's production of the
like product in 2006. These exports increased by about 81 % between 2003 and the IP. Furthermore,
these exports were consistently made at prices significantly above sales prices on the Community
market. It is therefore concluded that the export performance to third countries was not a source of
material injury to the Community industry.

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2003

2004

2005

2006

IP

Community Exports to the rest of
world for the PC (tonnes)

the

114 211

135 656

149 463

171 240

197 722

Index

100

119

131

150

173

Community exports to the rest of
world for the PC (1 000 EUR)

the

513 286

611 366

683 624

825 528

927 644

Index

100

119

133

161

181

Unit Price: (EUR/tonne):

4 494

4 506

4 573

4 820

4 691

3.3. Increase in raw material prices

(176) While the evidence available points to some increase of steel prices in the Community during the IP,
it appears that these increases were not the decisive factor behind the deterioration of the situation of
the Community industry. This deterioration was rather due to the loss of market share as pointed out
above in recital 165. The investigation revealed that the increased average unit selling prices during
the period considered were mainly due to the increase of the share of special types in the product
mix of the Community industry as these types are more costly to manufacture.

(177) However, the Community industry could not increase its sales prices sufficiently to make up for the
cost increase generated by the production of high end products. This inflexibility in prices was caused
by the simultaneous surge of dumped imports originating in the PRC, at prices significantly under­
cutting those of the Community industry. Under these circumstances it has to be concluded that the
Community industry was exposed to heavy price pressure by these dumped imports and conse­
quently had no possibility to compensate fully for the increase in costs by increasing its sales prices.

(178) Finally, it should be noted that the increase in raw material prices should have affected all operators
in the market, including the Chinese exporting producers and can therefore not be considered as a
particular factor causing injury to the Community industry, especially since the unit selling prices of
the product concerned originating in the PRC remained stable despite the increase of raw material
prices.

(179) Based on the above, it is concluded that the increase in prices of raw materials per se would not break
the causal link between dumped imports from the PRC and the injury suffered by the Community
industry.

4. Conclusion on causation

(180) The injury in this case mainly takes the form of loss of potential sales volume in a growing market
and market share. The resulting price depression and loss of economies of scale due to low capacity
utilisation led to an insufficient
level of profitability despite the favourable general economic
conditions which have prevailed during the period considered.

(181) The investigation has shown that the lack of improvement regarding the situation of most injury
indicators of the Community industry coincided with a sharp increase in import volumes and market
share from the PRC and a substantial price undercutting by these imports. It was also found that
imports originating in other third countries could not have contributed to the injury suffered by the
Community industry since the average import prices are significantly higher than the PRC imports
prices and the market share of non PRC imports has decreased compared to PRC imports in the
Community.

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(182) The positive evolution of exports of

the Community
industry to non-EU countries means that the potential
effect of
link
between dumped imports from the PRC and the injury
suffered by the Community industry.

that evolution cannot break the causal

(183) Furthermore, although raw material prices experienced an
unprecedented increase in the period considered,
this
should have affected all operators in the market and,
moreover,
the injury indicators
does not suggest that this was the main cause of the
injury suffered by the Community industry.

the time pattern of

(184)

It is therefore concluded that the dumped imports orig­
inating in the PRC have caused material
injury to the
Community industry within the meaning of Article 3(6)
of the basic Regulation.

F. COMMUNITY INTEREST

1. General considerations

(185) Pursuant to Article 21 of the basic Regulation,

exist

interest

compelling reasons

it was
investigated whether
that
could lead to the conclusion that it would not be in
the Community
anti-dumping
measures on imports from the country concerned. Ques­
traders and
to all
tionnaires were
industrial
the
in
users which were mentioned
complaint. Replies to the questionnaire were received
from seven importers, and some information was also
received from industrial users.

to impose

importers,

sent

Community industry would deteriorate. It would not be
able to carry out the necessary investments in order to
compete effectively with the imports from third countries
some
and in particular
their
companies
employees in the near future. With the closure of the
Community production, the Community industry in a
number of downstream sectors would become more
dependent on suppliers outside the Community.

force
the PRC. This will
to cease production and lay off

(188) Accordingly, it is concluded that the imposition of anti-
dumping measures would allow the Community industry
to recover from the effects of injurious dumping suffered
and that it therefore is in the interest of the Community
industry.

3. Interest of unrelated importers/traders in the

Community

the total

imports of

(189) Seven importers selected in the final sample (see recital
28) cooperated in the investigation by submitting a ques­
tionnaire reply. These seven importers represent about
15 % of
the product concerned
into the Community during the IP. However, one
importer did not accept a verification visit and infor­
mation regarding this company had to be disregarded.
the product
For the importers who fully cooperated,
concerned
their
turnover. It was found that, on average, the profitability
for the product concerned is higher than the companies'
general profitability. A surge of imports of the product
concerned by
the period
considered could be observed, as well as a diminution
of purchases from Community producers.

importers during

significant

represents

these

part

of

a

2. Interest of the Community industry

(190)

(186) The imposition of measures

is expected to prevent
further distortions and restore fair competition on the
market. The Community industry is a competitive and
viable industry; this is evidenced by the fact that it can
export a variety of products in strongly competitive
world markets. Thus,
imposition of measures
the
should allow it to reach reasonable capacity utilisation
levels, and improve its financial situation. This will also
to continue investments in technology and
allow it
modernise its production facilities,
thus guaranteeing
the Community industry's survival.

(187) On the other hand, should anti-dumping measures not
the

the situation of

be imposed,

likely that

is

it

that

claimed

importers,

submissions

sufficient capacities

(a) absence of
if any,

received from Community
In several
it was
should
unrelated
the negative impact would be
measures be imposed,
in the
twofold:
to maintain the same level of
Community,
supply of
increased
the product concerned; and (b)
prices of the product concerned, which could not be
passed on to the final customers,
leading to a loss of
profitability by the importers. The investigation revealed
that the product concerned is only a limited part of the
product
unrelated
the rest being purchased mostly in the
importers,
Community. Furthermore,
to rely on a
in order not
single source, the Community importers are purchasing
the same types of product from Community and PRC
producers alike, albeit buying the largest quantities from
the PRC exporting producers. In addition, it was found
rely on Community
that Community importers still
small quantities of
supply of
producers

by Community

offered

range

the

for

L 29/26

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Official Journal of the European Union

31.1.2009

the product concerned in order to meet short-term needs
from customers and to continue to offer a complete
product range. Community importers could not provide
any convincing evidence to prove that Community
producers could not meet the demand for all types of
fasteners, whether standard or corresponding to specific
customers' needs. The investigation also revealed that
Community importers are increasingly offering additional
special logistic services to their customers in addition to
fasteners. Therefore, eventual
the simple supply of
measures which would only be applied to a limited
portion of the product range would have an even more
limited impact since the provision of logistic services is
generating new costs and revenues. Hence,
should
measures be imposed, Community importers could still
offer the same level of services to their customers given
and diversified production capacities
the
available in the Community which would limit
the
impact of the measures on the Community importers'
profitability.

significant

(191) The investigation revealed that

the six Community
unrelated importers visited significantly increased their
purchases of PRC products during the period considered
and this had particularly positive effects on the profit­
ability of their sales of fasteners. On average the profit
margin for the product concerned was found to be
superior to their overall profit and close to 10 % in
average. The overall profitability for the six Community
unrelated importers visited was also found to be positive
in all cases, ranging between 5 and 10 %.

a

together with the recent

the imposition of
sharp increases

strong negative
proposed measures would have
in terms of business
impact upon their business,
In particular,
volume, profitability and employment.
the
importers have claimed that
in
duties,
fasteners' prices due to raw material price increases,
would severely strain their cash flow, and increase their
working capital and financing needs. It was also claimed
that customers would have difficulties
in accepting
further price increases, and the existing contracts would
in many cases mean that the importers would not be
able to pass on the price increases resulting from the
duties. Some importers also claimed that
they are
strongly dependent on imports from the PRC and that
it would be difficult to find alternative suppliers, in the
Community or in other third countries. This would par­
ticularly be the case for importers who have invested in
production facilities in the PRC, or who have established
technical relationships with PRC producers e.g. for the
production of particular fastener types.

(194) Although the above claims could not be verified,

least during a period of

it
the measures could have a
cannot be excluded that
negative impact upon some importers and other traders
in the Community, at
time
before contracts can be renegotiated and the distribution
chain reorganised. The negative impact
likely to
depend on the particular market positioning of those
operators, and also on their relationships with Chinese
exporting producers. However, it is noted that significant
spare production capacity exists among Community
producers and this is a possible alternative source of
supply as are other third country suppliers.

is

it.

continue

importers

Furthermore,

(192) The product mix offered by the investigated companies is
very wide and the product concerned only represents a
portion of
to
concerned from Community
purchase
the product
from other third countries in
producers and import
order not
to rely totally on the supply from PRC
producers, but also to respond to short-term needs.
Since the importers are diversifying their sources of
supply between Community and Far East producers in
order to offer the widest possible product mix to their
customers, it can be considered that the consequences of
the eventual existence of an anti-dumping measure on
one exporting country should not be such as to prevent
them from continuing to offer the same products whilst
maintaining adequate profit margins.

(193) Following the disclosure of the above findings, a number
the

importers and their associations claimed that

of

(195) As for the impact on prices,

it should be noted that
although there was a steep and unprecedented increase
in the price of steel wire rod during the first half of
2008, this was reversed in the second half of the year,
so the imposition of the duty would be likely to take
place in a context of decreasing prices of the product
concerned.

(196)

and distributors

the proposed
In conclusion, although the impact of
is not
measures upon importers
considered to be as strong as claimed by some of
those parties, it cannot be excluded that they would be
negatively affected in terms of cash flow and profitability,
in particular during an initial period following the impo­
sition of the measures.

31.1.2009

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L 29/27

4. Interest of users and consumers

intended for users were sent
companies. Only
groups of
Two
received.

to 16
(197) Questionnaires
three
companies or
responses were
car manufacturers
indicated that they were not concerned by the current
proceeding, as they did not directly purchase the product
concerned from the PRC and they did not know the
situation with regard to their suppliers. Given their
the automotive
specific requirements,
industry in the broad sense (i.e. including car manufac­
turers and all their parts suppliers) is for the moment
sourcing
the
Community.

concerned mainly

it appears that

product

the

in

the

concerned

(198) The third response was sent by Verband der Automobi­
lindustries (VDA) — German vehicle manufacturers' asso­
in which it is stated that VDA's members are
ciation,
from
product
purchasing
mainly
Community producers, thus confirming the statements
made by the two users mentioned above. However,
VDA opposes the imposition of antidumping measures
on the grounds that its members have an interest in
supply as
keeping as many alternative
possible. In this respect, it is recalled that it is not the
purpose of the measures to close the Community market
to third country suppliers, but only to restore compe­
tition to a level playing field. Even with the anti-dumping
the number of players from the
measures proposed,
Community,
is
expected to be sufficient to ensure a competitive supply
of fasteners to the Community automotive industry.

the PRC and other

third countries

sources of

(199) None of the users contacted reacted to the disclosure of
information document. Following the definitive
the
self-assembly
disclosure, however, one producer of
the proposed anti-dumping
furniture submitted that
duties would have a significant impact on the costs of
its products.
the figures put
forward could not be verified given that the information
was provided at a very late stage of the investigation.
Having said that, the alleged impact upon the overall
furniture costs of this company appears to be overstated
in view of the typical volume of the product concerned
contained in self-assembly furniture.

It should be noted that

(200) Before and after definitive disclosure, some importers and
the
their associations echoed similar concerns about
possible impact upon the economic situation of
the
a major user of
construction industry, which is
cyclical
fasteners

suffering

from a

and is

severe

In this respect,

it should be noted firstly
downturn.
that the construction industry is not exposed to inter­
national competition, which should limit the impact of
cost increases upon its market situation. Secondly, the
weight of the product concerned within the costs of
this industry was never quantified by the parties who
submitted such comments.

(201) Overall, on the basis of the information available on the
file, fasteners,
in most of the cases, only constitute a
small part of the total production cost and the anti-
dumping duties would not have a major impact on the
costs and the competitive situation of the user industries
concerned.

consequences

in terms of

(202) Following the definitive disclosure, one retailer and two
retailer associations for the DIY segment claimed that the
measures would have a strong impact on the retail prices,
inflation,
with negative
consumer welfare and the economic situation of
the
DIY sector. Although these claims could not be verified
in detail due to the lateness of their comments, it should
be noted that the proposed duties would not represent
more than a few percent of the observed retail prices of
fasteners in the DIY sector. Furthermore, based on infor­
mation available, the product concerned represents only
about 0,5 % of the turnover of the DIY sector, which also
indicates that the product concerned does not represent a
major component in a typical consumer's consumption
pattern.

one

in this

although

the measures,

(203) One producer and two associations representing the
submitted comments
so-called anchors
producers of
these parties
following the definitive disclosure. All
opposed
association
recognised that its members faced different situations,
and took diverging positions,
respect. Their
main claim was that Community anchor manufacturers
would be put at a competitive disadvantage, since the
measures would not cover their finished product,
i.e.
anchors, but would cover some components which are
imported from the PRC. It was furthermore claimed that
those
sourced in the
Community, which was disputed by the Community
industry. As the above claims have been made relatively
they could not be properly
late in the proceeding,
verified. However,
if
necessary, the Community producers are in a position
to supply the components currently imported from the
PRC.

it has been established that

could not be

components

L 29/28

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Official Journal of the European Union

31.1.2009

5. Interest of steel suppliers

7. Developments after the IP

(204) Eurofer has claimed that the upstream Community steel
industry i.e. Community producers of wirerods and bars
for cold-heading applications, have faced a deterioration
of their capacity utilisation between 2004 and 2007,
import pressure in their
allegedly due to both direct
product range and the erosion of
their downstream
markets by unfair competition. Hence, this organisation
claimed that Community producers of wirerods and bars
for cold-heading applications also have available capacity
to serve the Community producers of
the product
concerned.

(210) Several

exporters

importers,

and their

associations
submitted that after the IP, due to developments in raw
material costs, the market situation in the PRC and the
increase in transport costs, the prices of the imports of
the product concerned have increased sharply.
It has
been claimed that this would lead to significantly lower
levels of dumping and injury, making the imposition of
measures no longer appropriate.

(205) Shortly afterwards,

this claim was echoed by two
producers of steel wire based in Spain and the Czech
Republic. According to these
is
enough capacity in the Community to cater for an
eventual
increase of the Community production of the
product concerned.

companies,

there

(206) On the basis of the foregoing, it is concluded that the
imposition of measures would be in the interest of the
raw material suppliers in the Community.

6. Competition and trade distorting effects

(207) Several

exporters

importers,

associations
claimed that the imposition of measures would lead to
a reinforcement of the allegedly dominant position of the
two largest Community producers.

and their

(208)

In this respect, it was found that there is a large number
of producers in the Community, as well as imports from
various other third countries which will ensure that users
and retailers will continue to have a wide choice of
reasonable
different suppliers of
prices. Furthermore,
it is considered that the exporting
producers in the PRC will be able to continue to sell the
product concerned, albeit at non-injurious prices, as they
have a strong market position in the Community.

the like product at

(211)

It
should be noted that developments of global
commodity prices, energy etc. affect all actors in the
market in a similar way, and therefore would not per se
lead to lower levels of dumping or undercutting than
those found during the IP.

(212) The issue was nonetheless examined. According to the
last available statistical data,
imports from the PRC
during the first half of 2008 are showing only a small
increase in unit price compared to the previous year,
despite the sharp increase in international steel prices.
Furthermore,
imported from the PRC
the quantities
have not decreased in the first half of 2008.

(213)

the IP which would render

It is concluded, therefore, that there are no developments
after
the imposition of
inappropriate from the point of view of
measures
Community interest.

8. Conclusion on Community interest

(214) Article 21 of the basic Regulation refers to the need to
give special consideration to the need to remedy the
trade distorting effects of
injurious dumping and to
restore effective competition, although this particular
provision has to be seen in the overall framework of
the Community interest test as laid down in the afore­
mentioned Article. Thus,
imposing
measures or not
imposing measures on all parties
concerned have to be taken into account.

effects of

the

(209) Thus, there will be a significant number of actors in the
market, which will be able to satisfy the demand. On the
basis of the above, it is therefore concluded that compe­
tition will most likely remain strong after the imposition
of anti-dumping measures.

(215)

It cannot be excluded that the imposition of measures
would have a negative impact on some importers and
traders in the Community. However, it is considered that
the imposition of measures will bring certain benefits for
its supplier
the Community industry as well as for
industries
increased
in the Community,
production and employment

such as

31.1.2009

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Official Journal of the European Union

L 29/29

(216) Although the cooperation from users has been limited, it
is estimated that the impact of the measures upon the
costs of those industries would be relatively negligible,
and that
lead to a lack of
competition in the Community market.

the measures would not

(217)

In conclusion, in view of the high dumping and injury
margins, it is considered that, in this particular case, on
the basis of
the information submitted there is not
sufficient evidence to conclude that the possible impo­
sition of measures would be clearly disproportionate and
against the Community interest.

G. UNDERTAKINGS

(218) The Commission received undertaking offers from several
individual exporting producers, and from the China
Chamber of Commerce
Import & Export of
for
Machinery & Electronic Products (CCCME) representing
PRC exporters, on behalf of its members. Several other
exporting producers indicated their intention to offer
undertakings.

(219) Firstly, it should be noted that there are more than 100
exporting producers involved in this proceeding. The
number of actual and potential exporting producers
was considered too great
for an undertaking to be
workable, as it would render any type of price under­
taking very difficult to monitor. Furthermore, only eight
of these companies have been investigated and granted
IT.

(221) Finally, the product concerned has shown a considerable
volatility in prices and therefore it is not suitable for a
fixed price undertaking for an extended period of time.
The volatility in prices
in
raw material prices,
particular
namely steel wire rod. This would add to the complexity
of the monitoring of the undertakings.

is due to the volatility,

in recent months, of

(222) Under these circumstances, it was considered that price
undertakings were impracticable and could not be
accepted.

H. DEFINITIVE MEASURES

1. Injury elimination levels

(223) The level of any anti-dumping measures

should be
sufficient
to eliminate the injury to the Community
industry caused by the dumped imports, without
exceeding the dumping margins found. When calculating
the amount of duty necessary to remove the effects of
the injurious dumping,
it was considered that any
measures
should allow the Community industry to
obtain a profit before tax that could be reasonably
i.e.
achieved under normal conditions of competition,
in the absence of dumped imports. For this purpose, it
was considered that a profit margin of 5 % is an appro­
priate level
the Community industry could be
expected to obtain also with regard to the like product
in the absence of injurious dumping.

that

for

(220) Secondly, the product concerned is characterised by a
considerable number of product types, with significantly
different prices and some characteristics not easily
discernible upon importation. This makes it virtually
impossible
each
to establish minimum prices
product type which would be meaningful and could be
properly monitored by the Commission and by the
customs authorities of the Member States upon import­
ation. Moreover, the large number of different product
types, classified under no less
than 10 CN-Codes,
increases the risk of circumvention considerably. At the
same time,
there are currently anti-
dumping measures imposed on certain stainless steel
in the PRC (1). Due to
fasteners originating,
exporting
the
small number of
producers could be individually investigated,
it cannot
be excluded that some companies offering an under­
steel
and sell
taking also produce
fasteners to the same customers in the EU.
In these
cases, there is an additional risk of circumvention.

is noted that

that only a

inter alia,

stainless

those

fact

it

(1) Council Regulation (EC) No 1890/2005 (OJ L 302, 19.11.2005,

p. 1).

(224) The necessary price increase was then determined on the
basis of a comparison, per product type, of the weighted
average import price, as established for the price under­
cutting calculations, with the non-injurious price of the
like product sold by the Community industry on the
Community market. The non-injurious price has been
obtained by adjusting the sales price of the Community
industry in order to reflect the above mentioned profit
margin. Any difference resulting from this comparison
was then expressed as a percentage of
the total cif
import value.

(225) Following the definitive disclosure, one exporter pointed
out a clerical error in the injury margin calculation. It
was found that this error affected the injury margins for
all the exporters. All the injury margins were corrected
accordingly.

L 29/30

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Official Journal of the European Union

31.1.2009

(226) The abovementioned price

following injury margins
producers:

comparison showed the
the sampled exporting

for

Company

injury margin

Biao Wu Tensile Fasteners Co., Ltd

Changshu City Standard Parts Factory and
International
Changshu
Fastener Co., Ltd

Shanghai

British

Kunshan Chenghe Standard Components Co.,
Ltd

Ningbo Jinding Fastener Co., Ltd

Ningbo Yonghong Fasteners Co., Ltd

Cooperating exporting producers not selected
to form part of the sample

99,0 %

65,3 %

79,5 %

64,4 %

78,3 %

77,5 %

(229) On this basis the countrywide injury margin amounts to
85,0 % of the cif Community frontier price, duty unpaid.

some importers claimed that

(230) During the proceeding, and in particular following defi­
nitive disclosure,
they
perform a number of operations in the PRC, such as
retail packaging and quality control, the value of which
should not be included in the cif price on the basis of
which the duty will be applied. However, this situation
was not
the investigated exporting
producers and, even if proven, would appear to affect
only a small fraction of the imports from PRC. Never­
theless,
investigate this
issue.

the Commission may further

found in any of

(231)

In the light of the foregoing and pursuant to Article 9(4)
of the basic Regulation, it is considered that a definitive
anti-dumping duty should be imposed in respect of
imports of certain fasteners originating in the PRC at
the level of the lower of the dumping or injury margins.

(227) For the cooperating exporting producers granted indi­
the injury margins, calculated as

vidual examination,
explained above, are the following:

2. Definitive measures

(232) Consequently,
follows:

the anti-dumping duties should be as

Company

injury margin

CELO Suzhou Precision Fasteners Co., Ltd

0,3 %

Golden Horse (Dong Guan) Metal Manu­
factory Co., Ltd

133,2 %

Yantai Agrati Fasteners Co., Ltd

0 %

(228) As mentioned in recital 110, the degree of cooperation
of the PRC exporting producers can be considered low.
Therefore the injury margin for the non-cooperating
companies was established on average of
the value
found in Eurostat data and the highest margins found
for product types sold in a representative quantity by the
cooperating exporting producer with the highest injury
margin.

Biao Wu Tensile Fasteners Co., Ltd

69,9 %

CELO Suzhou Precision Fasteners Co., Ltd

0,0 %

Changshu City Standard Parts Factory and
Changshu
International
Fastener Co., Ltd

Shanghai

British

Golden Horse (Dong Guan) Metal Manu­
factory Co., Ltd

Kunshan Chenghe Standard Components Co.,
Ltd

Ningbo Jinding Fastener Co., Ltd

Ningbo Yonghong Fasteners Co., Ltd

Yantai Agrati Fasteners Co., Ltd

Cooperating companies not included in the
sample (listed in Annex)

All other companies

63,1 %

26,5 %

79,5 %

64,4 %

78,3 %

0,0 %

77,5 %

85,0 %

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Official Journal of the European Union

L 29/31

countrywide

(233) The individual anti-dumping duty rates specified in this
Regulation were established on the basis of the findings
of the present investigation. Therefore, they reflect the
situation found during that
investigation with respect
to these companies. These duty rates (as opposed to
the
other
companies’) are thus exclusively applicable to imports
of products originating in the PRC and produced by
these companies and thus by the specific legal entities
Imported products produced by any other
mentioned.
company not specifically mentioned in the operative
part of this Regulation, including entities related to this
specifically mentioned, cannot benefit from this rate and
shall be subject to the countrywide duty.

applicable

duty

‘all

to

needed in this case to ensure the proper application of
the anti-dumping duties. These special measures include
the following:

(238) The presentation to the Customs authorities of

the
invoice, which
Member States of a valid commercial
shall conform to the requirements set out in Annex II
to this Regulation. Imports not accompanied by such an
invoice shall be made subject
to the residual anti-
dumping duty applicable to all other exporters.

(e.g.

(234) Any claim requesting the application of an individual
following a
company anti-dumping duty rate
change in the name of
the entity or following the
setting up of new production or sales entities) should
be addressed to the Commission forthwith with all
relevant information,
in particular any modification in
the company's activities linked to production, domestic
and export sales associated with, for example, that name
change or
that change in the production and sales
If appropriate, the Regulation will accordingly
entities.
be amended by updating the list of companies benefiting
from individual duties.

(239) Should the exports by one of the companies benefiting
from lower individual duty rates increase significantly in
volume after the imposition of the measures concerned,
such an increase in volume could be considered as
constituting in itself a change in the pattern of trade
due to the imposition of measures within the meaning
of Article 13(1) of the basic Regulation. In such circum­
stances and provided the conditions are met an anti-
circumvention investigation may be initiated. This inves­
tigation may, inter alia, examine the need for the removal
of individual duty rates and the consequent imposition of
a countrywide duty,

(235) All parties were informed of

the essential

facts and
considerations on the basis of which it was intended to
recommend the imposition of definitive anti-dumping
duties. They were also granted a period within which
they could make representations
to this
subsequent
submitted by the parties
disclosure. The comments
were duly considered, and, where appropriate,
the
findings have been modified accordingly.

(236)

In order to ensure equal treatment between any new
exporters and the cooperating companies not included
in the sample, mentioned in the Annex to this Regu­
the weighted
lation, provision should be made for
average duty imposed on the latter companies to be
applied to any new exporters which would otherwise
be entitled to a review pursuant to Article 11(4) of the
basic Regulation, 11(4) does not apply where sampling
has been used.

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
certain iron or steel fasteners, other than of stainless steel, i.e.
wood screws (excluding coach screws), self-tapping screws,
other screws and bolts with heads (whether or not with their
nuts or washers, but excluding screws turned from bars, rods,
profiles or wire, of solid section, of a shank thickness not
exceeding 6 mm and excluding screws and bolts for fixing
railway track construction material), and washers, originating
falling within CN codes
in the People's Republic of China,
7318 15 59,
7318 12 90,
ex 7318 15 90,
7318 15 69,
ex 7318 21 00
codes
7318 15 90 89,
7318 15 90 19,
and
7318 21 00 29,
7318 22 00 99).

7318 14 91,
7318 15 81,

7318 15 90 69,

7318 21 00 99,

7318 22 00 29

ex 7318 22 00

7318 15 89,

7318 14 99,

(TARIC

and

3. Special monitoring

(237)

In order to minimise the risks of circumvention due to
the high difference in the duty rates among the exporting
is considered that special measures are
producers,

it

2.
The rate of the definitive anti-dumping duty applicable to
the net, free-at-Community-frontier price, before duty, of the
products manufactured by the companies listed below shall be
as follows:

L 29/32

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Official Journal of the European Union

31.1.2009

Company

Biao Wu Tensile Fasteners Co., Ltd,
Shanghai

Duty
(%)

69,9

TARIC
additional code

A924

CELO Suzhou Precision Fasteners Co.,
Ltd, Suzhou

0,0

A918

Changshu City Standard Parts Factory
and Changshu British Shanghai Inter­
national Fastener Co., Ltd, Changshu

63,1

A919

Golden Horse
Manufactory Co., Ltd, Dong Guan

(Dong Guan) Metal

26,5

A920

Kunshan Chenghe Standard
Components Co., Ltd, Kunshan

79,5

A921

Ningbo Jinding
Ningbo

Fastener Co.,

Ltd,

64,4

A922

Ningbo Yonghong Fasteners Co., Ltd,
Ningbo

78,3

A923

Yantai Agrati Fasteners Co., Ltd, Yantai

0,0

A925

Companies listed in Annex I

77,5

A928

The application of the individual duty rates specified for
3.
the companies mentioned in paragraph 2 shall be conditional
upon presentation to the customs authorities of the Member
States of a valid commercial invoice, which shall conform to the
If no such invoice is
in Annex II.
requirements
presented,
the duty rate applicable to all other companies
shall apply.

set out

Unless otherwise

4.
concerning customs duties shall apply.

specified,

the provisions

in force

Article 2

Where any party from the People's Republic of China provides
sufficient evidence to the Commission that it did not export the
goods described in Article 1(1) originating from the People's
Republic of China during the period of investigation, that is
1 October 2006 to 30 September 2007; that it is not related
to an exporter or producer subject to the measures imposed by
this Regulation; and that it has either actually exported the
goods concerned or has entered into an irrevocable contractual
obligation to export a significant quantity to the Community
after the end of the period of investigation, the Council, acting
by simple majority on a proposal by the Commission, after
consulting the Advisory Committee, may amend Article 1(2)
in order to attribute to that party the duty applicable to coop­
erating producers not in the sample, i.e., 77,5 %.

All other companies

85,0

A999

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

Article 3

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

Done at Brussels, 26 January 2009.

For the Council
The President

A. VONDRA

31.1.2009

EN

Official Journal of the European Union

L 29/33

ANNEX I

COOPERATING EXPORTING PRODUCERS NOT INCLUDED IN THE SAMPLE

TARIC Additional Code A928

Abel Manufacturing Co., Ltd

Autocraft Industrial (Shanghai) Ltd

Changshu Fuxin Fasteners Manufacturing Co., Ltd

Changshu Shining Sun Fasteners Manufacturing Co., Ltd

Changzhou Oread Fasteners Co., Ltd

Chun Yu (Dongguan) Metal Products Co., Ltd

Cixi Zhencheng Machinery Co., Ltd

Dongguan Danny & Kuen Metal & Co., Ltd

Foshan Nanhai Gubang Metal Goods Co., Ltd

Gem-year industrial Co., Ltd

Guangzhou Tianhe District Zhonggu Hardware Screw Manufacture

Haining Xinxin Hardware Standard Tools Co., Ltd

Haiyan Flymetal Hardware Co., Ltd

Haiyan Haitang Fasteners Factory

Haiyan Hardware Standard Parts Co., Ltd

Haiyan Lianxiang Hardware Products Co., Ltd

Haiyan Mengshi Screws Co., Ltd

Haiyan Self-tapping Screws Co., Ltd

Haiyan Sun's Jianxin Fasteners Co., Ltd

Haiyan Xinan Standard Fastener Co., Ltd

Haiyan Xinglong Fastener Co., Ltd

Hangzhou Everbright Metal Products Co., Ltd

Hangzhou Spring Washer Co., Ltd

Hott Metal Part and Fasteners Inc.

J. C. Grand (China) Corporation

Jiangsu Jiangyu Metal Work Co., Ltd

Jiashan Yongda Screw Co., Ltd

Jiaxiang Triumph Hardware Co., Ltd

Jiaxing Victor Screw Co., Ltd

Jinan Star Fastener Co., Ltd

Jin-Well Auto-parts (zhejiang) Co., Ltd

Kinfast Hardware Co., Ltd

Ningbo Alliance Screws and Fasteners Co., Ltd

Ningbo Anchor Fasteners Industrial Co., Ltd

Ningbo Dafeng Machinery Co., Ltd

Ningbo Development Zone Yonggang Fasteners Co., Ltd

Ningbo Fastener Factory

Ningbo Haixin Hardware Co., Ltd

Ningbo Haixin Railroad Material Co., Ltd

Shanghai

Shanghai

Changshu

Changshu

Changzhou

Dongguan

Cixi

Dongguan

Foshan

Jiashan

Guangzhou

Haining

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Jiaxing

Hangzhou

Hangzhou

Changshu

Jiaxing

Dongtai

Jiashan

Haining

Jiaxing

Jinan

Jiashan

Haining

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

L 29/34

EN

Official Journal of the European Union

31.1.2009

Ningbo Jinhui Gaoqiang Fastener Co., Ltd

Ningbo Jinpeng High Strength Fastener Co., Ltd

Ningbo Jintai Fastener Co., Ltd

Ningbo Jinwei Standard Parts Co., Ltd

Ningbo Jiulong Fasteners Manufacture Co., Ltd

Ningbo Londex Industrial Co., Ltd

Ningbo Minda Machinery & Electronics Co., Ltd

Ningbo Ningli High-Strength Fastener Co., Ltd

Ningbo Qunli Fastener Manufacture Co., Ltd

Ningbo Special - Wind - Fasteners (China) Co., Ltd

Ningbo Xinxing Fasteners Manufacture Co., Ltd

Ningbo Yonggang Fasteners Co., Ltd

Ningbo Zhenhai Xingyi Fasteners Co., Ltd

Ningbo Zhongbin Fastener Manufacture Co., Ltd

Ningbo Zhongjiang High Strength Bolt Co., Ltd

Robertson Inc. (Jiaxing)

Shanghai Boxed Screw Manufacturing Company Limited

Shanghai Fenggang Precision Inc.

Shanghai Foreign Trade Xiasha No. 2 Woodscrew Factory Co., Ltd

Shanghai Great Diamond Fastener Co., Ltd

Shanghai Hang Hong Metal Products Co., Ltd

Shanghai Hangtou Fasteners Co., Ltd

Shanghai Huaming Hardware Products Co., Ltd

Shanghai Moregood C&F Fastener Co., Ltd

Shanghai Moresun Fasteners Co., Ltd

Shanghai Qingpu Ben Yuan Metal Products Co., Ltd

Shanghai Ren Sheng Standardized Item Manufacture Ltd, Co

Shanghai Shuyuan Woodscrews Factory

Shanghai SQB Automotive Fasteners Company Ltd

Shanghai Tapoo Hardware Co., Ltd

Shanghai Yifan High-Intensity Fasteners Co., Ltd

Shanxi Jiaocheng Zhicheng Foundry Ltd

Shenzhen Top United Steel Co., Ltd

Sundram Fasteners (Zhejiang) Limited

Sunfast (Jiaxing) Enterprise Co., Ltd

Suzhou Escort Hardware Manufacturing Co., Ltd

Taicang Rongtong Metal Products Co., Ltd

Tangshan Huifeng Standard Component Make Co., Ltd

Tangshan Xingfeng Screws Co., Ltd

Tapoo Metal Products (Shanghai) Co., Ltd

Tianjin Jiuri Manufacture & Trading Co., Ltd

Wenzhou Excellent Hardware Apparatus Packing Co., Ltd

Wenzhou Junhao Industry Co., Ltd

Wenzhou Tian Xiang Metal Products Co., Ltd

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Ningbo

Jiashan

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Jiaocheng

Shenzhen

Jiaxing

Jiaxing

Suzhou

Taicang

Tangshan

Tangshan

Shanghai

Tianjin

Wenzhou

Wenzhou

Wenzhou

31.1.2009

EN

Official Journal of the European Union

L 29/35

Wenzhou Yili Machinery Development Co., Ltd

Wenzhou Yonggu Fasteners Co., Ltd

Wuxi Huacheng Fastener Co., Ltd

Wuxi Qianfeng Screw Factory

Xingtai City Ningbo Fasteners Co., Ltd

Yueqing Quintessence Fastener Co., Ltd

Zhejiang Jingyi Standard Components Co., Ltd

Zhejiang New Oriental Fastener Co., Ltd

Zhejiang Qifeng Hardware Make Co., Ltd

Zhejiang Rising Fasteners Co., Ltd

Zhejiang Yonghua Fasteners Co., Ltd

Zhejiang Zhongtong Motorkits Co., Ltd

Zhongshan City Jinzhong Fastener Co., Ltd

Wenzhou

Wenzhou

Wuxi

Wuxi

Xingtai

Yueqing

Yueqing

Jiaxing

Jiaxing

Hangzhou

Rui' An

Shamen

Zhongshan

ANNEX II

A declaration signed by an official of the company, in the following format, must appear on the valid commercial invoice
referred to in Article 1(3):

1. [The name and function of the official of the company which has issued the commercial invoice.]

2. The following declaration:

‘I, the undersigned, certify that the [volume] of fastener products sold for export to the
European Community covered by this invoice was manufactured by [company name and registered seat] [TARIC
additional code] in the People's Republic of China. I declare that the information provided in this invoice is complete
and correct.

[Date and signature]’