Proposal for a Council Regulation amending Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on imports of certain castings originating in the People’s Republic of China
Date: 2009-03-12
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, cast-iron, import, iron and steel product, originating product, road services department

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.3.2009 
COM(2009) 117 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on 
imports of certain castings originating in the People’s Republic of China 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1) 

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CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of  22 
December 1995 on protection against dumped imports from countries not members of 
the European Community, as last amended by Council Regulation (EC) No 2117/2005 
of 21 December 2005 ("the basic Regulation"), in the proceeding concerning imports 
of certain castings originating in the People’s Republic of China.  

120 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

Council  Regulation  (EC)  No  1212/2005  imposing  a  definitive  anti-dumping  duty  on 
imports of certain castings originating in the People’s Republic of China. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

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141 

2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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229 

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3) 

305 

The applicants and the Community industry have been informed of the findings of the 
examination and have had the opportunity to submit their comments. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The  basic  Regulation  does  not  make  provision  for  a  general  impact  assessment  but 
contains an exhaustive list of conditions that have to be assessed. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

By  Regulation  (EC)  No  1212/2005,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports of certain castings originating in the People’s Republic of China.  

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During  the  investigation  which  led  to  the  imposition  of  measures,  given  the  large 
number  of  exporting  producers  of  the  product  concerned  in  the  People's  Republic  of 
China, sampling was applied. 

Article 1(4) of Council Regulation (EC) No 1212/2005 gives the possibility to Chinese 
exporting producers which meet certain criteria to be granted the same treatment as the 
co-operating companies not included in the sample ('new exporting producer treatment' 
or 'NEPT'). 

Six companies have requested new exporting producer treatment and their claims have 
been examined. 

It is therefore proposed that the Council adopts the attached proposal for a Regulation, 
which sets out the name and duty rate of the company to which new exporting producer 
treatment is granted. The Regulation should be published in the Official Journal of the 
European Union. 

310 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community  as  last 
amended by Council Regulation (EC) No 2117/2005 of 21 December 2005 ("the basic 
Regulation"). 

Council  Regulation  (EC)  No  1212/2005  imposing  a  definitive  anti-dumping  duty  on 
imports of certain castings originating in the People’s Republic of China. 

329 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reasons: 

–  Council Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on 
imports of certain castings originating in the People’s Republic of China leaves no 
scope for national decision. 

–  indication of how financial and administrative burden falling upon the Community, 
national  governments,  regional  and  local  authorities,  economic  operators  and 
citizens  is  minimized  and  proportionate  to  the  objective  of  the  proposal  is  not 
applicable. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason: 

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–  the above-mentioned basic Regulation does not foresee alternative options. 

4) 

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BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1212/2005 imposing a definitive anti-dumping duty on 
imports of certain castings originating in the People’s Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  

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 Community1 (the ‘basic 
Regulation’),  

Having  regard  to  Article  1(4)  of  Council  Regulation  (EC)  No  1212/2005  of  25  July  2005 
imposing  a  definitive  anti-dumping  duty  on  imports  of  certain  castings  originating  in  the 
People’s Republic of China2, 

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

Whereas: 

A.  MEASURES IN FORCE 

(1) 

(2) 

By  Regulation  (EC)  No  1212/2005,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports into the Community of castings of non-malleable cast iron of a kind 
used to cover and/or give access to ground or sub-surface systems, and parts thereof, 
whether  or  not  machined,  coated  or  painted  or  fitted  with  other  materials,  excluding 
fire  hydrants,  originating  in  the  People's  Republic  of  China  ('PRC')  (‘the  product 
concerned’), normally declared within CN codes 7325 10 50, 7325 10 92 and ex 7325 
10 99 (Taric code 7325 10 99 10). Given the large number of co-operating parties, a 
sample  of  Chinese  exporting  producers  was  selected  during  the  investigation  which 
led to the imposition of the measures. 

The  sampled  companies  were  attributed  the  individual  duty  rates  established  during 
the investigation. The cooperating non-sampled companies which were granted market 
economy treatment ('MET'), in accordance with the provisions of Article 2(7)(c) of the 
basic Regulation, were attributed the 0% anti-dumping duty which was established for 
the  sole  sampled  company  which  was  granted  MET.  The  cooperating  non-sampled 
companies  which  were  granted  individual  treatment  ('IT'),  in  accordance  with  the 

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2 

OJ L 56, 6.3.1996, p. 1. 
OJ L 199, 29.7.2005, p. 1. 

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provisions of Article 9(5) of the basic Regulation, received the weighted average duty 
of 28,6% established for the sampled companies that were granted IT. A countrywide 
duty of 47,8% was imposed on all other companies. 

Article  1(4)  of  Regulation  (EC)  No  1212/2005  gives  the  possibility  to  Chinese 
exporting producers which meet the four criteria set out in that Article to be granted 
the  same  treatment  as  the  one  mentioned  in  recital  (2)  above  for  the  co-operating 
companies  not  included  in  the  sample  ('New  Exporting  Producer  Treatment'  or 
'NEPT'). 

B. 

NEW EXPORTING PRODUCERS’ REQUESTS 

Six  companies  have  requested  to  be  granted  NEPT.  One  company  subsequently 
withdrew its request in the course of the investigation. 

An  examination  has  been  carried  out  to  determine  whether  each  of  the  applicants 
fulfils  the  criteria  for  being  granted  NEPT  as  set  out  in  Article  1(4)  of  Council 
Regulation (EC) No 1212/2005, by verifying that: 

(1) 

(2) 

(3) 

(4) 

it  did  not  export  to  the  Community  the  product  concerned  during  the 
investigation  period  on  which  the  measures  are  based  (1  April  2003  to  31 
March 2004) (the first criterion); 

it is not related to any of the exporters or producers in the People's Republic 
of  China  which  are  subject  to  the  anti-dumping  measures  imposed  by  that 
Regulation (the second criterion); 

it  has  actually  exported  to  the  Community  the  product  concerned  after  the 
investigation period on which the measures are based, or it has entered into an 
irrevocable  contractual  obligation  to  export  a  significant  quantity  of  the 
product concerned to the Community (the third criterion); 

it operates under market economy conditions defined in Article 2(7)(c) of the 
basic  Regulation  or  alternatively  that  it  fulfils  the  requirements  to  have  an 
individual  duty  applied  in  accordance  with  Article  9(5)  of  the  basic 
Regulation (the fourth criterion). 

Since  the  fourth  criterion  implies  that  the  applicants  submit  a  claim  for  Market 
Economy Treatment ('MET') and/or Individual Treatment ('IT'), the Commission sent 
MET and IT claim forms to all Chinese applicants. Five Chinese applicant companies 
requested  MET  pursuant  to  Article  2(7)  of  the  basic  Regulation.  One  company 
requested only IT pursuant to Article 9(5) of the basic Regulation.  

Questionnaires  were  sent  to  all  applicants  who  were  asked  to  supply  evidence  to 
demonstrate that they met the criteria mentioned above.  

Exporting producers fulfilling these criteria may, pursuant to Article 1(4) of Council 
Regulation  (EC)  No  1212/2005,  be  granted  either  the  0%  duty  rate  applicable  to 
companies to whom MET was granted in accordance with Article 2(7)(c) of the basic 
Regulation,  or  the  weighted  average  duty  rate  of  28,6%  applicable  to  companies  to 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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whom  individual  IT  was  granted  in  accordance  with  Article  9(5)  of  the  basic 
Regulation. 

(9) 

The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the 
purpose of the determination of the fulfilment of the four criteria set out in Article 1(4) 
of Council Regulation (EC) No 1212/2005. 

C. 

FINDINGS 

(10)  The  examination  of  the  requests  established  that  two  companies  did  not  export  the 
product  concerned  to  the  Community  after  the  investigation  period  on  which  the 
measures  are  based,  nor  did  they  enter  into  an  irrevocable  contractual  obligation  to 
export  the  product  concerned  to  the  Community.  These  companies  did  not  meet  the 
third criterion mentioned in recital (5) above and therefore could not be granted NEPT. 

(11)  Two  Chinese  exporting  producers  could  not  show  that  they  were  not  related  to 
exporters or producers in the People's Republic of China which are subject to the anti-
dumping  measures  imposed  by  Council  Regulation (EC) No 1212/2005; indeed they 
could not successfully rebut evidence pointing to such a relationship. These companies 
did  not  meet  the  second  criterion  mentioned  in  recital  (5)  above  and  therefore  could 
not be granted NEPT. 

(12)  One  Chinese  exporting  producer,  Weifang  Stable  Casting,  that  only  requested  IT, 
provided  sufficient  evidence  to  prove  that  it  meets  all  the  four  criteria  mentioned  at 
recital  (5)  above.  This  company  in  fact  could  prove  that  i)  it  did  not  export  to  the 
Community the product concerned during the period 1 April 2003 to 31 March 2004, 
ii)  it  is  not  related  to  any  of  the  exporters  or  producers  in  the  People's  Republic  of 
China  which  are  subject  to  the  anti-dumping  measures  imposed  by  Regulation  (EC) 
No 1212/2005, iii) it actually exported a significant quantity of the product concerned 
to the Community starting from the year 2008, iv) it fulfils all the requirements for IT 
and can therefore be granted an individual duty in accordance with Article 9(5) of the 
basic Regulation. Therefore, this producer could be granted the weighted average duty 
rate for companies granted IT applicable to the co-operating companies not included in 
the sample (i.e. 28,6%) in accordance with Article 1(4) of Council Regulation (EC) No 
1212/2005,  and  be  added  to  the  list  of  exporting  producers  in  Article  1(2)  of  that 
Regulation. 

D.  MODIFICATION OF THE LIST OF COMPANIES BENEFITING FROM 
INDIVIDUAL DUTY RATES 

(13) 

In consideration of the findings of the investigation as indicated in recital (12) above, 
it is concluded that the company Weifang Stable Casting should be added to the list of 
companies individually mentioned under Article 1(2) of Council Regulation (EC) No 
1212/2005 with a duty rate of 28,6%. 

(14)  All the applicants and the Community Industry have been informed of the findings of 
the  investigation  and  have  had  the  opportunity  to  submit  their  comments.  Their 
comments were taken into account where appropriate, 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Article 1(2) of Council Regulation (EC) No 1212/2005 shall be replaced by the following: 

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

Company 

Shijiazhuang Transun Metal Products Co. Ltd., Xinongcheng 
Liulintun, Luancheng County, Shijiazhuang City 
Hebei Province, 051430 PRC 
Shaoshan Huanqiu Castings Foundry, Fengjia Village 
Yingtian Township, Shaoshan, Hunan, PRC 

Fengtai Handan Alloy Casting Co. Ltd. 
Beizhangzhuang Town, Handan County, Hebei, PRC 

Shanxi Jiaocheng Xinglong Casting Co. Ltd. 
Jiaocheng County, Shanxi Province, PRC 
Tianjin Jinghai Chaoyue Industrial and Commercial Co. Ltd. 
Guan Pu Tou Village, Yang Cheng Zhuang Town 
Jinghai District, 301617 Tianjin, PRC 
Baoding City Maikesaier Casting Ltd. 
Xin'anli Town, Tang County 
Hebei; Baoding 072350, PRC 
Baoding Yuehai Machine Manufacturing Co., Ltd.,  
No 333 Building A Tian E West Road,  
Baoding, Hebei, PRC 
Shanxi Yuansheng Casting and Forging Industrial Co. Ltd  
No. 8 DiZangAn, Taiyuan, Shanxi, 030002, PRC 
Botou City Simencum Town Bai fo Tang Casting Factory 
Bai Fo Tang Village, Si Men Cum Town, Bo Tou City 
062159, Hebei Province, PRC 
Hebei Shunda Foundry Co. Ltd., Qufu Road, Quyang 
073100, PRC 
Xianxian Guozhuang Precision Casting Co., Ltd. 
Guli Village, Xian County,  
Hebei, Gouzhuang, PRC 
Wuxi Norlong Foundry Co., Ltd.  
Wuxi New District 
Jiangsu, PRC 
HanDan County Yan Yuan Smelting and Casting Co., Ltd 
South of Hu Cun Village, Hu Cun Town,  
Han Dan County, Hebei, PRC 

Anti-dumping 
duty (%) 

Taric additional 
code 

0  

A675 

0 

0 

0 

0 

0 

0 

A676 

A677 

A678 

A679 

A867 

A868 

18,6 

A680 

28,6 

A681 

28,6 

A682 

28,6 

A869 

28,6 

A870 

28,6 

A871 

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Tianjin Loiselet Art Casting Co., Ltd 
Dongzhuangke, Yangchenzhuang,  
Jinghai, Tianjin, PRC 
Weifang Stable Casting Co., Ltd 
Fangzi District, Weifang City, Shandong Province, PRC 
Changan Cast Limited Company of Yixian Hebei 
Taiyuan main street, Yi County, Hebei Province 
074200, PRC 
Shandong Huijin Stock Co. Ltd., North of Kouzhen Town 
Laiwu City, Shandong Province, 271114, PRC. 

All other companies 

28,6 

A872 

28,6 

A931 

31,8 

A683 

37,9 

A684 

47,8 

A999' 

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

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