Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of furfuryl alcohol originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 384/96
Date: 2009-11-16
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, chemical alcohol, import, originating product

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.11.2009 
COM(2009) 625 final 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of furfuryl alcohol originating in the 
People's Republic of China following an expiry review pursuant to Article 11(2) of 
Regulation (EC) No 384/96 

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EXPLANATORY MEMORANDUM 

1. 

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  (‘the  basic  Regulation’)  in  the  proceeding  concerning  the 
review  of  the  measures  applicable  to  imports  of  furfuryl  alcohol  originating  in  the 
People’s Republic of China ('China'). 

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 

Not applicable. 

Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

Consultation of interested parties and impact assessment 

Consultation of interested parties 

Interested parties concerned by the proceeding have had the possibility to defend their 
interests during the investigation, in line with the provisions of the basic Regulation. 

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  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

3. 

Legal elements of the proposal 

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Summary of the proposed action 

In October 2003, the Council, by Regulation (EC) No 1905/20031, imposed definitive 
anti-dumping  measures  in  the  form  of  a  specific  duty  on  imports  of  furfuryl  alcohol 
('FA')  originating  in  China.  Following  the  publication,  in  May  2008,  of  a  notice  of 
impending expiry of the anti-dumping measures applicable to imports of FA originating 
in China2, the Commission received a request for a review pursuant to Article 11(2) of 
the basic Regulation. 

Having  determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient 
evidence  existed  for  the  initiation  of  an  expiry  review,  on  30  October  2008,  the 
Commission  initiated  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic 
Regulation,  of  the  measures  currently  in  force  concerning  imports  of  furfuryl  alcohol 
originating in China. 

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  definitive  findings  of 
the  investigation  on  recurrence  of  dumping  and  the  likelihood  of  recurrence  of  injury 
towards the Community industry. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation in 
order to extend the measures currently in force for a period of two years. 

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. 

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 because the form of action is 
described  in  the  above-mentioned  basic  Regulation  and  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 instrument: Regulation. 

Other  means  would  not  be  adequate  because  the  basic  Regulation  does  not  foresee 

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OJ L283, 31.10.2003, p. 1 
OJ C111, 6.5.2008, p. 50. 

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alternative options. 

4. 

Budgetary implication 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of furfuryl alcohol originating in the 
People's Republic of China following an expiry review pursuant to Article 11(2) of 
Regulation (EC) No 384/96 

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 Community3 (‘the basic 
Regulation’) and in particular Articles 9 and 11(2) thereof, 

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

Whereas: 

1. 

(1) 

2. 

(2) 

A. PROCEDURE 

Measures in force 

In October 2003, the Council, by Regulation (EC) No 1905/20034, imposed definitive 
anti-dumping  measures  in  the  form  of  a  specific  duty  on  imports  of  furfuryl  alcohol 
('FA')  originating  in  the  People's  Republic  of  China  (‘China’).  The  specific  duty 
amounts  ranged  from  EUR  84  to  EUR  160  per  ton  for  four  cooperating  Chinese 
producers,  while  the  country  wide  duty  was  set  at  EUR  250  per  ton  ('the  original 
investigation').  

Request for an expiry review 

Following the publication, in May 2008, of a notice of impending expiry of the anti-
dumping measures applicable to imports of FA originating in China5, the Commission 
received on 30 July 2008 a request for a review pursuant to Article 11(2) of the basic 
Regulation. 

(3) 

The  request  was  lodged  by  International  Furan  Chemicals  BV  ('the  applicant')  on 
behalf of the sole producer in the Community representing 100 % of the Community 

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OJ L 56, 6.3.1996, p.1.  
OJ L283, 31.10.2003, p. 1 
OJ C111, 6.5.2008, p. 50. 

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

(4) 

Having  determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient 
evidence existed for the initiation of an expiry review pursuant to Article 11(2) of the 
basic Regulation, the Commission published a notice of initiation of this review in the 
Official Journal of the European Union6. 

3. 

Investigation 

3.1. 

Procedure 

(5) 

(6) 

(7) 

The Commission officially advised the applicant Community producer, the exporting 
producers  in  China,  the  Chinese  authorities,  the  producer  in  the  suggested  analogue 
country, United States of America, the importers/traders and users in the Community 
known  to  be  concerned,  of  the  initiation  of  the review.  Interested  parties  were  given 
the opportunity to make their views known in writing and to request a hearing within 
the time limit set out in the notice of initiation. 

Questionnaires were sent to all the parties that were officially advised of the initiation 
of the review and to those who requested a questionnaire within the time limit set out 
in the notice of initiation.  

Replies  to  the  questionnaire  were  received  from  the  applicant  Community  producer, 
two traders, ten users, two associations of users, one exporting producer in China and 
the producer in the analogue country. 

3.2. 

Interested parties and verification visits 

(8) 

The Commission sought and verified all the information it deemed necessary for the 
purpose  of  the  determination  of  the  likelihood  of  continuation  or  recurrence  of 
dumping and injury and for the determination of the Community interest. Verification 
visits were carried out at the premises of the following companies: 

–  Community producer and related companies: 

- TransFurans Chemicals BVBA, Geel, Belgium 

- International Furan Chemicals BV, Rotterdam, the Netherlands 

- Central Romana Corporation, LTD, La Romana, Dominican Republic 

–  Exporting producers in China: 

- Zhucheng Taisheng Chemical Co. Ltd. 

–  Producer in the analogue country 

- Penn Speciality Chemicals Inc., United States of America ('USA') 

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OJ C275, 30.10.2008, p. 21 

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–  Unrelated importers/traders: 

- S. Chemicals, the Netherlands 

–  Users: 

- Kiilto OY, Finland 

- Mazzon Flli., Italy 

- SATEF Hüttenes-Albertus, Italy 

- Ashland Sudchemie Kernsfest, Germany 

- Hüttenes-Albertus, Germany 

3.3. 

Review investigation period and period under consideration 

(9) 

The  investigation  regarding  the  continuation  or  recurrence  of  dumping  and  injury 
covered  the  period  from  1  October  2007  to  30  September  2008  ('RIP'  or  'Review 
Investigation Period'). 

(10)  The  examination  of  the  trends  relevant  for  the  assessment  of  a  likelihood  of  a 
continuation or recurrence of injury covered the period from 1 January 2005 up to the 
end of the RIP ('period considered' or 'period under consideration'). 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

The product concerned 

(11)  The product concerned is the same as in the original investigation, i.e. FA originating 

in China, currently falling within CN code ex 2932 13 00.  

(12)  FA  is  a  chemical  product.  It  is  a  colourless  to  pale  yellow  liquid  that  is  soluble  in 
many common organic solvents. The raw material for the production of FA is furfural 
(FF), which is a chemical liquid obtained by processing different types of agricultural 
waste such as sugar cane, corncobs and rice hulls among others. 

(13)  FA is a commodity product. The main use of FA is the production of synthetic resins, 
used in the production of foundry moulds which are used to make metal castings for 
industrial purposes. 

2. 

Like product 

(14)  As in the  previous investigation, this  investigation has  shown that the basic  physical 
and technical characteristics of FA produced and sold by the Community industry in 
the Community, FA produced and sold on the domestic Chinese market, FA imported 
into the Community from China as well as FA produced and sold in the USA are the 
same and that they have the same use. 

(15) 

It was therefore concluded that all these products constitute one like product within the 
meaning of Article 1(4) of the basic Regulation. 

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C. LIKELIHOOD OF CONTINUATION OF DUMPING 

(16) 

(17) 

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

In accordance with Article 11(9) of the basic Regulation, the same methodology was 
used  as  in  the  original  investigation.  As  an  expiry  review  does  not  provide  for  any 
examination of changed circumstances, no further consideration was given to whether 
or not producers should be granted market economy treatment (MET). 

1. 

Preliminary remarks  

(18) 

It  is  recalled  that  in  the  original  investigation  a  total  of  four  Chinese  exporting 
producers  cooperated  with  the  investigation  and  requested  MET  pursuant  to  Article 
2(7)(b) of the basic Regulation. However, none of these Chinese exporting producers 
fulfilled  all  of  the  required  conditions  for granting  MET  and  therefore  all  claims  for 
MET had to be rejected. All of them were granted individual treatment (IT) since the 
investigation revealed that they fulfilled the required criteria. It is noted that the only 
Chinese exporter which cooperated with the present expiry review was granted IT in 
the original investigation.  

(19)  The only cooperating Chinese exporting producer accounted for 23,1% of imports into 
the  Community  during  the  RIP.  No  reliable  information  on  imports  of  the  product 
concerned to the Community during the RIP could be gathered directly from the other 
exporting producers. Under these circumstances, and in accordance with Article 18 of 
the basic Regulation, for total import quantities and prices the Commission had to use 
facts available, i.e. Eurostat and the documentation submitted by the applicant in the 
request for the initiation of the review. 

(20)  The  existing  anti-dumping  duties,  ranging  from  €84  to  €160/tonne,  with  a  country-

wide residual duty of €250/tonne, correspond to  the level of injury established during 
the previous investigation.  

2. 

Dumping in the investigation period 

2.1. 

Analogue country 

(21) 

In the original investigation the United States of America ('the USA') was used as an 
appropriate market economy country for the purpose of establishing the normal value 
for  China.  In  the  notice  of  initiation  of  the  current  investigation  the  Commission 
indicated  its  intention  to  use  the  USA  as  analogue  country.  Interested  parties  were 
invited to comment on this intention. The USA was considered appropriate in view of 
the  size  and  openness  of  its  domestic  market  and  the  fact  that  one  US  producer  had 
agreed to cooperate fully in the investigation.  

(22)  An importers' association opposed the choice of the USA as analogue country, arguing 
that  there  was  only  one  main  producer  in  the  USA  and  that  domestic  prices  were 
extremely high. One Chinese exporting producer claimed that the level of competition 
in  the  USA  was  lower  than  that  on  the  Chinese  domestic  market  and  therefore  the 
markets  were  not  comparable.  It  was  found,  however,  that  while  there  was  only  one 
producer  on  the  market  in  the  USA,  imports  also  played  a  role  which  ensured  a 

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sufficient  level  of  competition  on  this  sizeable  market.  Furthermore,  none  of  the 
known producers contacted in other possible analogue countries, including Thailand, 
Turkey and South Africa, agreed to cooperate.  

(23)  Based  on  the  above,  it  was  concluded  that  the  USA  was  the  most  appropriate  and 

reasonable analogue country in accordance with Article 2(7) of the basic Regulation. 

2.2. 

Normal value 

(24)  Pursuant to Article 2(7)(a) of the basic Regulation normal value was established on the 

basis of verified information received from the producer in the USA. 

(25)  The Commission first established that the total domestic sales of the US producer were 
made  in  sufficient  quantities  and  could  thus  be  considered  representative  within  the 
meaning of Article 2(2) of the basic Regulation. 

(26) 

It  was  subsequently  examined  whether  the  product  concerned  sold  in  representative 
quantities  on  the  analogue  country's  domestic  market  could  be  considered  as  being 
sold in the ordinary course of trade pursuant to Article 2(4) of the basic Regulation. It 
was found that the sales volume on a per type basis, sold at a net sales price equal to or 
above the cost of production, represented 80% or more of the total sales volume and 
the weighted average price of that type was equal to or above the cost of production. 
Therefore the actual domestic prices, calculated as a weighted average of the prices of 
all  domestic  sales  made  during  the  RIP,  irrespective  of  whether  these  sales  were 
profitable or not, could be used. 

(27)  Normal value was thus determined, as set out in Article 2(1) of the basic Regulation, 
on the basis of prices paid or payable, in the ordinary course of trade, by independent 
customers on the domestic market of the analogue country. 

2.3. 

Export price 

(28)  The only Chinese exporting producer which cooperated was granted IT in the original 
investigation. In accordance with Article 2(8) of the basic Regulation the export price 
of the product concerned for this company was established on the basis of the export 
prices  actually  paid  or  payable  to  the  first  independent  customer  located  in  the 
Community. 

(29)  Given  that  cooperation  from  China  was  very  low,  the  countrywide  dumping  margin 
applicable  to  all  other  exporters  in  China  was  calculated  using  the  Chinese  export 
statistics. 

2.4. 

Comparison 

(30) 

In  order  to  ensure  a  fair  comparison  of  the  normal  value  and  the  export  price,  due 
allowance, in the form of adjustments, was made for differences affecting prices and 
price  comparability  in  accordance  with  Article  2(10)  of  the  basic  Regulation. 
Appropriate adjustments concerning transport, insurance, and credit costs were granted 
in  all  cases  where  they  were  found  to  be  reasonable,  accurate  and  supported  by 
verified evidence. 

2.5. 

Dumping margin 

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(31) 

In accordance with Article 2(11) of the basic Regulation the weighted average normal 
value established for the USA was compared with the weighted average export price 
of the co-operating Chinese exporting producer on an ex-works basis. This comparison 
showed the existence of significant dumping, the dumping margin amounting to more 
than 40%.  

(32)  Based on Eurostat and Chinese statistics, for all other Chinese exports to the EU the 
margin of dumping was also found to be substantial, in the same range as above.  

3. 

Development of imports should measures be allowed to lapse 

3.1. 

Preliminary remark  

(33) 

It is recalled that measures have been in force since October 2003. 

3.2. 

Evolution of production and capacity utilisation in China 

(34) 

In the absence of meaningful cooperation by the Chinese exporting producers during 
the current investigation no verifiable data was available on their capacity and capacity 
utilization.  

(35)  According to  the applicant's estimate,  the total production capacity in China in 2006 

amounted to around 364 900 tonnes of FA per year. 

(36)  According to the China National Chemical Information Center7, "China's production 
capacity  for  furfural  and  furfuryl  alcohol  has  undergone  unduly  rapid  expansion  in 
recent years. The overall slackness of downstream consumption sectors such as furan 
resins has led to a serious oversupply in the furfural and furfuryl alcohol market"(.) 
"Furfural  and  especially  furfuryl  alcohol  production  in  China  still  has  to  depend  on 
exports". This source also states that there were more than 300 FA producers in China 
in  2005.  The  total  annual  production  capacity  of  FA  was  240 000  tonnes  and  the 
output was around 140 000 tonnes. 

(37)  According to the estimation of the sole cooperating Chinese exporting producer, total 

production of FA in China in 2008 amounted to 200 000 tonnes. 

(38) 

In  any  event,  Chinese  production  capacity  continues  to  be  substantial.  Furthermore, 
despite  the  measures  in  place,  Chinese  exports  to  the  EU  continued  to  increase. 
Whatever the source of information it is clear that Chinese production capacity largely 
exceeds EU consumption. 

(39)  The Community market is a large and stable market for FA and given the existence of 
high anti-dumping  measures in the USA (ranging from 43% to 50% and renewed in 
July 2006) on imports from China, it is expected that if existing measures are allowed 
to lapse Chinese producers would have every incentive to ship spare capacities to the 
Community. 

7 

The China National Chemical Information Center (Chem China) was established in October 1992 after 
the  merger  of  the  Scientific  and  Technological  Information  Research  Institute  of  the  Ministry  of  the 
Chemical  Industry  established  in  1959  and  the  Economic  Information  Center  of  the  Ministry  of  the 
Chemical Industry established in 1984. http://www.chemchina.com.cn/chempwas/en/7under_8.htm 

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(40)  On the basis of the above it may be concluded that, in the light of the huge capacity 
available  in  China  and  the  existence  of  anti-dumping  duties  in  another  important 
market,  the  USA,  there  is  a  strong  likelihood  of  increased  dumped  imports  into  the 
Community should measures be allowed to lapse. 

3.3. 

Volume and price of imports from China to the EU 

(41)  During  the  RIP  imports  of  the  product  concerned  from  China  amounted  to 
approximately  21  000  tonnes.  The  unit  price  was  €1 210  per  tonne  on  average  (see 
recital (57). During the same period the average Community unit selling price was far 
above this price making the EU market very attractive to Chinese exporters should the 
measures be allowed to lapse. 

3.4. 

Volume and prices of Chinese exports to third countries 

(42)  Based  on  the  data  provided  by  the  co-operating  Chinese  exporting  producer  it  was 
found  that  this  company  exported  larger  quantities  to  third  countries  than  to  the  EU 
and at prices significantly below those of Community producers on the EU market and 
also below Chinese export prices to the EU. 

(43)  This is confirmed by publicly available Chinese statistics which showed that for most 
of the investigation period Chinese companies exported mainly to Asian countries at 
prices  far  below  those  of  their  exports  to  the  Community  market.  In  these 
circumstances, if measures are allowed to lapse, Chinese exporting producers may re-
direct  these  sales  to  the  higher  priced  Community  market  but  still  at  dumped  prices 
that would undercut those of the Community industry. 

(44)  Limited information is available on the domestic prices in China. 

(45)  However,  based  on  the  questionnaire  reply  from  the  sole  co-operating  Chinese 
company, this company sold the product concerned on its domestic market at a price 
far below that of its exports to third countries and to the EU.  

3.5. 

Conclusion 

(46)  The investigation showed that, whilst the import volumes of the product concerned in 
the  RIP  were  relatively  high,  the  level  of  dumping  found  for  these  imports  was 
significant. 

(47) 

In  view  of  the  spare  capacity  available  in  China,  which  largely  exceeds  total  EU 
consumption, the significant difference in prices charged to the EU and third countries 
and  the  resulting  attractiveness  of  the  Community  market,  as  showed  in  recital  (41) 
above,  to  the  Chinese  exporting  producers,  it  is  concluded  that  there  is  a  strong 
likelihood  of  increased  dumped  imports  into  the  Community  should  measures  be 
allowed to lapse.  

D. DEFINITION OF THE COMMUNITY INDUSTRY 

(48)  As in the original investigation, there is only one producer of FA in the Community: 
TransFurans  Chemicals,  Belgium  ('TFC').  Accordingly,  the  production  of  TFC 
constitutes the total Community production within the meaning of Article 4(1) of the 
basic Regulation. 

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(49)  The  Community  production  is  fully  integrated  in  a  single  economic  entity  which 

consists of three companies and operates as follows: 

(50)  TFC transforms the raw material, furfural, delivered by the mother company Central 
Romana  Corporation  (“CRC”),  Dominican  Republic,  into  the  product  concerned. 
International Furan Chemicals (“IFC”) situated in the Netherlands acts as the world-
wide sales agent for the product concerned produced by TFC. TFC, IFC and CRC are 
related through common ownership. 

(51)  Based  on  the  above,  TFC  and  its  related  company  IFC  constitute  the  Community 
industry within the meaning of Articles 5(4) and 4(1) of the basic Regulation. It should 
be noted, that in order to make a meaningful assessment of certain injury indicators, it 
was necessary to take into account also certain data from CRC. 

E. SITUATION ON THE COMMUNITY MARKET 

1. 

Preliminary remark 

(52)  Given  that  the  Community  industry  comprises  only  one  company,  specific  data 
relating  to  the  Community  industry,  as  reported  in  the  verified  questionnaire  replies, 
consumption and the market share of the Chinese exporting producers as well as other 
third  countries'  imports have been indexed in order to preserve the confidentiality of 
the data submitted in accordance with Article 19 of the basic Regulation. 

2. 

Community consumption 

(53)  Community consumption was calculated on the basis of the combined volume of sales 
by the Community industry in the Community of its own produced FA, imports from 
China as well as imports from other third countries.  

(54)  With  regard  to  the  import  volumes  from  the  country  concerned,  and  as  during  the 
original investigation, Chinese official export statistics were used rather than Eurostat 
import statistics, since the former appeared to be more accurate in view of the fact that 
certain data in Eurostat concerning this product were classified as 'secret' and therefore 
not  publicly  available.  As  far  as  the  import  volumes  of  other  third  countries  are 
concerned Eurostat statistics were used since no other more reliable information was 
available. 

Table 1 Community consumption (based on sales volume) 

Index 

Y/Y 
trend 

2005

100 

2006

108 

2007 

158 

RIP 

166 

8% 

47% 

5% 

Source:  verified  questionnaire  reply  of  the  Community  industry,  Eurostat,  Chinese  official  export 
statistics 

(55)  On  this  basis  and  as  shown  in  table  1  above,  Community  consumption  increased 

significantly during the period under consideration, i.e. by 66%. 

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(56) 

It  is  noted  that  the  above  development  may  be  affected  by  the  possible  existence  of 
secret data concerning imports of Thailand as mentioned below in recital (61). 

3. 

Volume, market share and prices of imports from China 

Table 2 Imports from China in volume, market share and import price 

Imports in tonnes 

16.010

10.635

19.245 

21.002

2005 

2006 

2007 

RIP 

Index 

Market share (index) 

CIF Import price Eur/tonnes 

 Index 

Source: Chinese official export statistics 

100

100

887

100

66

62

738

83

120 

76 

893 

101 

131

79

1.210

136

(57)  The import volume from China increased by 31% during the period considered, from 
16 010 tonnes in 2005 to 21.002 tons in the RIP, while market share decreased by 21% 
during the period considered. This development has to be seen against the background 
of  the  significant  increase  of  Community  consumption  by  66%  during  the  same 
period. 

(58) 

It  should  be  noted  that  the  Community  industry  was  itself  importing  between  5.000 
and 9.000 tons during the RIP of the product concerned from China which it re-sold on 
the Community market. The Community industry was therefore also the main importer 
of the product concerned from China. Imports were done by the Community industry 
because,  producing  already  at  full  capacity  (see  recitals  (64)  and  (65)  below),  it  was 
not able to meet the demand in the Community market. 

(59)  Average import prices from China increased over the period considered by 36%, i.e. 

from 887 €/ton in 2005 to 1.210 €/ton during the RIP. 

(60)  The comparison of the CIF import price at Community frontier charged to independent 
customers, including post-importation costs, with the Community industry's ex-works 
prices,  for  the  same  product  types,  revealed  that  Chinese  import  prices  were  not 
undercutting the Community industry's sales price during the RIP. 

4. 

Volume, market share and prices of imports from other third countries  

Table 3 Imports from other third country markets 

2005 

2006 

2007 

RIP 

Thailand 

Tonnes 

673

208

10.660 

11.450

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Index 

Market share indexed 

100

100

31

28

1.584 

1.701

1.017 

1.044 

Import price in €/tonne 

1.059 

822 

1.086  

1.302 

Index 

South Africa 

Tonnes 

Index 

Market share indexed 

100 

890

100

100 

Import price in €/tonne 

682

 Index 

Other third countries 

Tons 

Index 

Market share indexed 

100 

160

100

100 

78 

0

0

0 

0 

0

11

7

0 

103 

123 

123 

2.695

14 

8 

303

183 

930 

1.301

136 

191 

193 

120 

75 

239

149

100 

Import price in €/ton 

1.790

7.500

3.051 

3.368

 Index 

Source: Eurostat 

100 

419 

170 

188 

(61) 

It  is  noted  that  Eurostat  data  for  Thailand  show  an  increase  in  import  volume  from 
insignificant quantities in 2005 and 2006 to 10 660 tonnes in 2007 and 11 450 tonnes 
during the RIP, with a significant increase in its market share from an index of 100 to 
1  044  during  the  period  under  consideration.  However,  it  is  noted  that  Eurostat  data 
contained some secret data with regard to Thai imports during 2005 and 2006 and the 
increase in imports and market share was in fact lower as shown above. Import prices 
from Thailand increased by 23% over the period considered and were above Chinese 
prices as well as above the Community industry's prices during the RIP. 

(62)  Although  imports  from  South  Africa  increased  during  the  period  considered,  they 
remained at a relatively low level with price levels similar to the Thai imports. 

(63) 

Imports from other third countries did not represent significant volumes. 

5. 

Economic situation of the Community industry 

5.1.  Production, production capacity and capacity utilisation 

EN 

14 

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(64)  The  Community  industry’s  production  increased  by  8%  during  the  period  under 
consideration.  The  production  capacity  of  the  Community  industry  remained  stable 
during this period. 

(65)  Capacity  utilisation  increased  by  8%  during  the  period  considered,  as  such  reaching 
full  capacity.  The  Community  industry  was  from  2006  onwards  producing  above  its 
theoretical installed capacity. 

Table 4 Community production 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100 

104 

106 

108 

4% 

1% 

2% 

Source: verified questionnaire reply of the Community industry 

Table 5 Community production capacity 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100

100

100 

100

0% 

0% 

0% 

Source: verified questionnaire reply of the Community industry 

Table 6 Capacity utilisation 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100

104

106 

108 

4% 

1% 

2% 

Source: verified questionnaire reply of the Community industry 

5.2. 

Inventories 

(66)  Stocks  decreased  by  50%  during  the  period  considered  which  was  due  to  the  high 
demand during this period, in particular during the RIP, and the Community industry's 
insufficient capacity to supply the Community market. As a consequence, stocks were 
continuously reduced. 

Table 7 Inventories 

Index 

Y/Y trend 

2005 

2006 

2007 

RIP 

100

81

89 

50

-19% 

10% 

-44% 

EN 

15 

   EN 

 
 
 
 
 
 
 
  
  
Source: verified questionnaire reply of the Community industry 

5.3. 

Sales, market share and prices 

Table 8 Sales volumes and values 

2005 

2006 

2007 

RIP 

Sales in volume – index 

100

151

147 

134

Y/Y trend 

51% 

-2% 

9% 

Sales in value - index 

100

127

156 

175

Y/Y trend 

27% 

23% 

12% 

Source: verified questionnaire reply of the Community industry 

(67)  The Community industry sales volume increased by 51% from 2005 to 2006, reaching 
a peak in 2006, but then continuously decreased. At the same time, the market share of 
the Community industry decreased by 19%. This is due to the fact that demands to the 
Community  industry  increased  more  than  the  overall  increase  in  sales  volume.  As 
mentioned  above,  since  the  Community  industry  already  produced  at  full  capacity  it 
was  not  able  to  increase  its  sales  volume  to  the  same  extent  as  the  increase  in 
consumption. 

Table 9 Community industry’s market share 

Index 

Y/Y trend 

2005 

100 

2006 

140 

40% 

2007 

93 

-34% 

RIP 

81 

-13% 

Source: verified questionnaire replies of the Community industry, Eurostat, Chinese export statistics 

(68)  Unit  selling  prices  of  the  Community  industry  first  decreased  by  16%  from  2005  to 
2006, and increased afterwards continuously. Over the total period considered, average 
prices of the Community industry increased thus by 31%. 

Table 10 Community industry sales prices 

Index 

Y/Y trend 

2005 

2006 

2007 

RIP 

100

84

106 

131

-16% 

26% 

23% 

Source: verified questionnaire reply of the Community industry 

5.4.  Factors affecting Community prices 

EN 

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(69)  The pressure from demand throughout the period considered led to, as a consequence, 
a  significant  increase  in  prices.  The  high  demand  during  the  RIP  even  caused 
temporary shortages on the Community market. 

(70)  Price  levels  on  the  Community  market  were  generally  high  throughout  the  period 
considered.  The  dumped  imports  from  China  did  not  exert  any  significant  price 
pressure during this period. Thus, the same increasing trend can also be observed for 
the Chinese imports and the imports from the other third countries, with the exception 
of 2006, when both volumes and prices dropped. 

(71)  The  sales  margins  were  less  influenced  by  the  full  cost  of  production,  and  the  price 
increases  were  mainly  due  to  market  developments.  This  is  also  evidenced  by  the 
exceptional increase in cost in 2006 (due to an exceptional increase in the fuel oil costs 
for  the  production  of  FF)  which  did  not  have  a  direct  impact  on  the  Community 
industry's sales price which decreased during this same year. 

5.5.  Employment, productivity and wages 

(72)  Employment remained overall stable during the period considered, while productivity 
increased  by  6%  during  the  same  period  which  is  due  to  the  increase  in  production 
volume. The processing of FF into FA is a rather simple process and therefore not very 
labour intensive. The average wages decreased by 4% during the period considered. 

Table 11 Employment 

Index 

Y/Y trend 

2005 

2006 

2007 

RIP 

100

106

105 

102

6% 

-1% 

-3% 

Source: verified questionnaire reply of the Community industry 

Table 12 Productivity 

Index 

Y/Y trend 

2005 

2006 

2007 

RIP 

100

98

100 

106

-2% 

2% 

6% 

Source: verified questionnaire reply of the Community industry 

Table 13 Wages 

2005 

2006 

2007 

RIP 

Index 

100

102

95 

96

Y/Y trend 

- 

2% 

-6% 

1% 

Source: verified questionnaire reply of the Community industry 

EN 

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5.6.  Profitability 

(73)  The profitability of the Community industry increased overall significantly from 2005 
to the RIP, i.e. by 43% and reached a very high level during the RIP, exceeding by far 
the  target  profit  set  during  the  original  investigation  (15.17%).  It  is  noted  that  the 
profitability  of  the  Community  industry  reached  high  levels  throughout  the  period 
considered with the exception of 2006. In 2006, the exceptional high costs for fuel oil, 
which  is  one  of  the  main  cost  factors  for  the  production  of  FF,  combined  with  low 
sales prices resulted in losses for the Community industry. 

Table 14 Profitability 

2005 

2006 

2007 

RIP 

Index 

100

-27

125 

143

 Y/Y trend 

- 

-127% 

562% 

14% 

Source: verified questionnaire reply of the Community industry 

5.7. 

Investments, return on investments and ability to raise capital 

(74) 

Investments increased during the period under consideration although the total amount 
was not significant, being equivalent to only a small percentage of the profits obtained. 
The Community industry did not invest in new capacities but these investments were 
rather  in  repairs  and  maintenance.  The  investigation  also  showed  that  the  return  on 
investments, i.e. pre-tax net profit of the like product expressed as a percentage of the 
net book value of fixed assets allocated to the like product, increased notably during 
the period considered. 

Table 15 Investments 

Index 

Y/Y trend 

2005 

2006 

2007 

RIP 

100

116

150 

187

16% 

29% 

25% 

Source: verified questionnaire reply of the Community industry 

Table 16 Return on investments 

ROI 

2005 

4,3% 

2006 

-6,1% 

2007 

8,3% 

RIP 

18,4% 

Source: verified questionnaire reply of the Community industry 

(75)  The  investigation  did  not  bring  into  light  any  evidence  that  the  Community  industry 

has major problems in raising capital. 

5.8.  Cash flow 

EN 

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(76)  Cash flow followed a similar trend as profitability, increasing significantly during the 

period under consideration. 

Table 17 Cash flow 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100

-167

294 

661

-267% 

276% 

125% 

Source: verified questionnaire reply of the Community industry 

5.9.  Growth 

(77)  The Community industry did not directly benefit from the growth of the market during 
the period considered, since, while it increased its sales volume it lost overall market 
share. However, this situation is due to the Community industry's decision to maintain 
its  production  capacity  at  the  same  levels  throughout  the  period  considered.  Indeed, 
although  profitability  was  high,  and  demand  was  increasing,  no  investments  were 
made to increase capacity. 

5.10.  Magnitude of the dumping margin 

(78)  During the RIP, despite the measures in force substantial dumping continued albeit at 
lower  levels  than  established  in  the  original  investigation,  based  both  on  the  data 
obtained from the sole cooperating exporting producer and the calculations based on 
facts available (Chinese statistics). 

5.11.  Recovery from the effects of past dumping 

(79)  Even if the Community industry has had the chance to recover from past dumping, in 
particular in terms of sales volume, sales prices and profitability, dumping margins are 
still significant. 

5.12.  Export activity of the Community industry 

Table 18 Export volume of the Community industry 

2005 

2006 

2007 

RIP 

Index 

100

82

78 

96

Y/Y trend 

- 

-18% 

-5% 

23% 

Source: verified questionnaire reply of the Community industry 

(80)  The  Community  industry's  main  export  market  is  the  USA.  Although  decreasing  in 
2006 and 2007, export levels of 2005 were almost reached in RIP. It should be noted 
that the volume exported to the USA was significant, i.e. it corresponded to 25% of its 
total production volume during the RIP, while on the other hand large volumes of the 
product  concerned  were  also  imported  by  the  Community  industry  from  China  to 
satisfy  the  demand  of  their  customers  in  the  Community.  The  Community  industry 

EN 

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own production of FA was exported to the more lucrative USA market where prices 
were at even higher levels than on the Community market. 

6. 

Conclusion on the situation of the Community industry 

(81)  The  anti-dumping  measures  had  a  clear  positive  impact  on  the  situation  of  the 
Community industry. All main injury indicators, such as production (+8%) and sales 
volume (+34%), sales value (+75%), average sales price (+31%), investments (+87%), 
profitability (+43%), cash flow (+561%), stocks (-50%) and productivity (+6%) have 
shown  positive  developments.  In  particular,  profit  levels  of  the  Community  industry 
were high throughout the period considered with the exception of 2006. 

(82)  As  far  as  the  market  share  of  the  Community  industry  is  concerned,  the  decreasing 
trend could not be considered as pointing to injury. Indeed, the Community industry, 
already  producing  at  maximum  capacity,  could  not  supply  the  increasing  demand, 
which had, despite increasing sales volumes, a negative effect on its market share. 

(83) 

In conclusion, in view of the positive development of the indicators pertaining to the 
Community  industry,  it  is  considered  to  be  in  a  good  situation  and  it  could  not  be 
established  that  material  injury  has  continued.  Therefore,  it  was  examined  whether 
there is a likelihood of recurrence of injury should measures be allowed to lapse. 

F. LIKELIHOOD OF RECURRENCE OF INJURY 

1. 

Summary of the analysis of the likelihood of the continuation of dumping and the 

recurrence of injurious dumping 

(84) 

It  is  recalled  that  even  with  the  measures  in  force,  the  exporting  producers  in  China 
were still dumping at significant levels, as explained in recital (31) above. Removal of 
the  measures  could,  if  the  export  prices  were  reduced  commensurately,  lead  to  even 
higher dumping margins. 

(85)  As  mentioned  above,  the  incentive  to  increase  export  volumes  to  the  Community  is 
considerable,  since  the  other  major  export  market  for  China,  i.e.  the  USA  has  high 
anti-dumping  measures  in  place  against  China  with  prohibitive  character  and  this 
market is therefore practically not accessible for Chinese exports. 

(86)  Furthermore it was found that the Chinese producers had significant spare capacities 
due to a structural overcapacity in China caused by a decrease of domestic demand in 
China due to a shrinking market after the Olympic Games in 2008 and the effect of the 
global economic crisis. 

(87) 

(88) 

(89) 

It  was  also  found  that  Chinese  export  prices  to  third  countries  were  at  lower  levels 
than those to the Community. 

It was therefore concluded that there was a likelihood of continuation of dumping and 
a risk of an increase of the volume of imports exerting a downward pressure on prices 
in the Community, at least in the short term, if measures were repealed. 

It is normally the case that an increase of dumped imports would exercise a downward 
pressure on the sales price level and would negatively affect the Community industry's 
profitability as well as its financial recovery that was observed during the RIP. 

EN 

20 

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2. 

Impact  of  the  dumped  imports  on  the  Community  industry  –  indications  and 

likely development during the post RIP period 

(90)  The  market  share  of  the  Community  Industry  went  down  already  as  from  2006,  and 
this during a period of increasing consumption, whilst from the same year onwards the 
market share of the Chinese imports increased. In view of these mixed indicators (i.e. 
overall recovery by the Community Industry, but loss of market share), the post-RIP 
developments were examined to get a clearer picture of likely future trends. It should 
also  be  recalled  that  the  likelihood  of  recurrence  of  injury  caused  by  a  downward 
pressure on prices may also be influenced or accentuated by the evolution of the global 
economy and its effects on demand and consumption. 

(91)  Additional  information  was  collected  in  order  to  determine  whether  the  conclusions 
drawn on the basis of the analysis of the period considered and more in particular the 
RIP,  remain  valid  after  the  RIP.  In  this  regard,  the  Community  industry  submitted 
information  on  the  development  of  their  sales  prices  in  the  Community  covering  the 
period  from  October  2008  to  April  2009  as  well  as  on  Chinese  import  volumes  and 
average import prices during the same period. 

(92)  On  this  basis,  a  clear  and  continuous  downward  trend  of  the  Community  industry's 
sales  prices  on  the  Community  market  could  be  observed,  i.e.  sales  prices  in  April 
2009 decreased by 35% as compared to the average sales price during the RIP. As far 
as  sales  volumes  of  the  Community  industry  are  concerned,  while  there  is  no 
continuous downward trend, sales in April 2009 were 33% lower than in March 2009. 
There were indications that orders to the Community industry have been decreasing. 

(93)  As  far  as  the  Community  industry's  profitability  is  concerned  the  negative 
development has been significant. Thus, profit levels shrank continuously and dropped 
by  almost  80%  in  April  2009  when  compared  to  the  profit  level  reached  during  the 
RIP. Thus, the Community industry's profit levels have not reached the target profit set 
during the original investigation since March 2009 and fell in April 2009 far below it. 

(94)  As  far  as  the  Chinese  imports  are  concerned,  Chinese  import  prices  followed  a 
continuous  downward  trend,  however  less  accentuated  than  the  decrease  in  import 
volumes and the decrease in the Community industry sales prices on the Community 
market.  The  Chinese  import  prices,  while  mostly  still  slightly  above  the  Community 
industry's sales price, were in some months undercutting them, which shows that the 
price pressure on the market from these imports has increased. Similarly at the end of 
this period the Chinese prices were found to be underselling the Community industry 
prices. 

(95)  On  the  basis  of  the  above,  and  given  the  clear  downward  trend  of  the  Community 
industry's  financial  situation,  it  was  concluded  that  a  recurrence  of  injury  is  likely 
should measures be allowed to lapse. 

(96) 

It  is  noted  that  due  to  the  global  economic  crisis,  demand  in  the  Community  has 
decreased  significantly  which  has  had  a  negative  impact  on  the  sales  volumes,  sales 
prices  and  profitability  on  the  Community  market.  The  financial  position  of  the 
Community  industry  has  deteriorated,  making  the  Community  industry  particularly 
vulnerable  and  thus  more  easily  affected  by  dumped  imports  from  China.  This 

EN 

21 

   EN 

 
situation  will  likely  further  deteriorate  in  case  of  a  surge  of  such  imports  should 
measures be allowed to lapse. 

3. 

Conclusions on the likelihood of recurrence of injury 

(97) 

(98) 

In summary it is considered that in case measures were repealed, there is a short term 
likelihood of a significant increase of dumped imports from China to the Community 
with downward pressure on prices as a consequence and a recurrence of injury to the 
Community industry.  

It is noted, however, that in general the situation of the Community industry during the 
period  considered  was  positive  –  whereby  it  was  on  the  whole  able  to  recover  from 
past  dumping  and  made  substantial  profits  towards  the  end  of  the  period.  It  is  thus 
considered  that  less  time  than  the  standard  five  years  may  be  needed  for  the 
Community industry to be able to recover from the current precarious situation, which 
may  in  any  event  be  a  temporary  phenomenon,  and  to  prevent  injury  from  recurring 
should measures be allowed to lapse. In the medium term, demand on the Community 
industry may increase again. Should this be the case, and on the basis of the specifics 
of the Community market and in particular the need for the Community users of a fast 
and reliable source of supply, it is considered that the Community industry may in the 
medium term recover from any injury suffered or that a recurrence of injury would no 
longer be likely. The situation could thereafter be reviewed. 

G. COMMUNITY INTEREST 

1. 

Preliminary remark 

(99) 

In  accordance  with  Article  21  of  the  basic  Regulation  it  was  examined  whether  the 
continuation of the existing anti-dumping measures would be against the interest of the 
Community  as  a  whole.  The  determination  of  Community  interest  was  based  on  an 
appreciation  of  all  the  other  various  interests  involved,  i.e.  those  of  the  Community 
industry, those of the importers/traders as well as the users of the product concerned. 

(100)  It should be recalled that in the original investigation, the imposition of measures was 
not  considered  to  be  against  the  Community  interest.  Furthermore,  the  present 
investigation  is  an  expiry  review,  thus  analysing  a  situation  in  which  anti-dumping 
measures are in place. 

(101)  On this basis it was examined whether there are compelling reasons which would lead 
to the conclusion that it is not in the Community interest to maintain measures in this 
particular  case,  despite  the  above  conclusions  on  the  likelihood  of  continuation  of 
dumping and recurrence of injury. 

2. 

Interest of the Community industry 

(102)  It  is  recalled  that  dumping  during  the  RIP  was  still  present  and  that  there  exists  a 
likelihood of continuation of dumping of the product concerned originating in China 
and the likelihood of recurrence on injury to the Community industry. 

(103)  The  Community  industry  has  proven  to  be  a  viable  and  competitive  industry, 
confirmed by the positive development of all main injury indicators during the period 
considered.  The  previously  imposed  anti-dumping  measures  have  contributed  to  the 

EN 

22 

   EN 

 
price  level  as  established  during  the  RIP  which  allowed  the  Community  industry  to 
restore its profitability. 

(104)  Therefore it is in the interest of the Community industry to maintain measures against 

the dumped imports from China. 

3. 

Interest of unrelated importers/traders 

(105)  The  Commission  sent  questionnaires  to  all  known  unrelated  importers/traders.  Only 

one importer/trader co-operated with the investigation. 

(106)  The  investigation  showed  that  the  volumes  traded  by  the  cooperating  unrelated 
importer during the period under  consideration were not  significant, and sales of the 
product concerned represented only a small part of its total sales. 

(107)  It is considered that continuation of the measures will not change the current situation 
of the importers/traders. It is clear that the importers may also rely on other sources of 
supply, as can be seen from the market share held by other third countries, in particular 
Thailand which showed that competition on the Community market is ensured. 

(108)  On  the  basis  of  the  above,  it  was  considered  that  the  continuation  of  the  measures 

would not significantly affect the importers/traders. 

4. 

Interest of users 

(109)  The  Commission  sent  questionnaires  to  all  known  unrelated  users.  Eight  users  co-
operated with the investigation, representing 44% of the total imports from China. The 
investigation  showed  that  these  users  were  importing  directly  the  product  concerned 
from China. Additionally two user associations replied submitting their comments. 

(110)  The main industrial users of FA in the Community are the furan resin manufacturers. 
The  investigation  showed  that  despite  measures  in  force,  at  least  some  of  the  users 
reached still quite high profit margins during the RIP.  

(111)  The  users  also  pointed  out  that  the  Community  industry  should  remain  an  important 
source of supply in order to grant short term availability of the product concerned and 
a certain reliability and consistency of the supply. 

(112)  Considering the above, it was considered that the continuation of the measures would 

not have a significantly negative effect on the industrial users. 

5. 

Conclusion on Community interest 

(113)  Given the above, it is concluded that there are no compelling reasons, on the grounds 
of Community interest, against the prolongation of the anti-dumping measures. 

H. ANTI-DUMPING MEASURES 

(114)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be maintained. They 
were also granted a period to submit comments and claims subsequent to disclosure. 

EN 

23 

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(115)  It is clear that the Community industry was able to profit from the measures in force 
and  its  situation  improved  significantly  over  the  period  considered  with  respect  to 
most  injury  indicators.  The  Community  industry  realised  high  profit  margins  during 
the RIP and sales and production volumes reached their maximum levels. On the basis 
of  the  positive  economic  development  of  the  Community  industry  during  the  period 
considered, it could not be established that material injury continued. 

(116)  Nevertheless,  the  investigation  showed  on  one  hand  that,  despite  an  increase  in 
consumption,  the  Community  industry  lost  market  share  while  the  Chinese  imports 
increased  their  market  share.  On  the  other  hand  the  investigation  also  revealed  that 
spare capacities exist in China and that high dumping continued during the RIP. 

(117)  In addition, the investigation on the likelihood of recurrence of injury showed that the 
situation  of  the  Community  industry  deteriorated  after  the  RIP  and  lead  to  injury 
towards the beginning of the second quarter of 2009. It also revealed that there were 
significant  spare  capacities  available  in  China  and  the  incentive  to  direct  these  spare 
capacities  to  the  Community  should  measures  be  allowed  to  lapse  was  high.  This 
expected  surge  of  dumped  imports  is  likely  to  increase  the  price  pressure  in  the 
Community with a negative effect on the Community industry's price and profit levels. 
It was therefore established that there was a likelihood of recurrence of injury, should 
measures be allowed to lapse, at least on the short term. 

(118)  This would have an even more negative impact in the context of the current economic 
crisis, which has lead to a contraction  in consumption after  the  RIP.  In this  scenario 
the  impact  of  increased  dumped  imports  would  multiply  its  negative  effects  on  the 
Community industry. 

(119)  Finally, it is considered that should the economy recover in the medium term, demand 
for  FA  in  the  Community  will  increase.  Under  these  circumstances,  the  Community 
industry will be able to increase its sales volume accordingly. 

(120)  Therefore  it  follows  from  the  above  that  as  provided  in  Article  11(2)  of  the  basic 
Regulation,  the  anti-dumping  measures  applicable  on  imports  of  FA  from  China, 
imposed  by  Council  Regulation  (EC)  No  1905/2003  should  be  maintained  for  an 
additional period of two years without prejudice to the other provisions of Article 11 
of the basic Regulation. 

(121)  Following  disclosure,  the  Community  industry  claimed  that  the  definitive  measures 
should be extended for five years arguing that the sudden change in market conditions 
after the RIP would show that any future developments in the market are uncertain and 
highly difficult to predict. Thus, the assessment of the Community Institutions, i.e. that 
the  economy  may  recover  in  the  medium  term  and  that  the  demand  for  FA  in  the 
Community may consequently improve would not be sufficiently accurate. However, 
as mentioned above in recitals (117) to (119), it was considered that the developments 
after the RIP, including the effects of the economic crisis, are likely to be of a short 
term  nature  warranting  the  imposition  of  measures  for  no  more  than  two  years. 
Therefore, the claims of the Community industry in this respect had to be rejected. 

(122)  In order to minimise the risks of circumvention due to the high difference in the duty 
rates, it is considered that special measures are needed in this case to ensure the proper 
application of the anti-dumping duties. These special measures include the following: 

EN 

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The  presentation  to  the  Customs  authorities  of  the  Member  States  of  a  valid 
commercial invoice, which shall conform to the requirements set out in the Annex 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. 

(123)  Should the exports by one of the four 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 circumstances and provided the conditions are met an 
anti-circumvention  investigation  may  be  initiated.  This  investigation  may,  inter  alia, 
examine  the  need  for  the  removal  of  individual  duty  rates  and  the  consequent 
imposition of a country-wide duty. 

HAS ADOPTED THIS REGULATION: 

Article 1 

(1)  A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  furfuryl 
alcohol, currently falling within CN code ex 2932 13 00 (TARIC code 2932 
13 00 90), originating in the People's Republic of China. 

(2)  The  rate  of  the  definitive  anti-dumping  duty  applicable  for  the  product 

described in paragraph 1 shall be as follows: 

Companies 

Rate of anti-dumping 
duty (Euro per ton) 

TARIC additional 
code 

Gaoping Chemical Industry Co. Ltd  

Linzi Organic Chemical Inc. 

Zhucheng Taisheng Chemical Co. Ltd. 

Henan Huilong Chemical Industry Co. 
Ltd. 

All other companies 

160 

84 

97 

156 

250 

A442 

A440 

A441 

A484 

A999 

(3) 

In cases where goods have been damaged before entry into free circulation and, 
therefore,  the  price  actually  paid  or  payable  is  apportioned  for  the 
determination  of  the  customs  value  pursuant  to  Article  145  of  Commission 
Regulation  (EEC)  No  2454/93,  the  amount  of  the  anti-dumping  duty, 
calculated on the basis of paragraph 2 above, shall be reduced by a percentage 
which corresponds to the apportioning of the price actually paid or payable. 

(4)  The  application  of  the  individual  duty  rates  specified  for  the  four  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  requirements  set  out  in  the  Annex  of  this 

EN 

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Regulation.  If  no  such  invoice  is  presented,  the  duty  rate  applicable  to  all 
other companies shall apply. 

(5)  Unless otherwise specified, the provisions in force concerning customs duties 

shall apply. 

This  Regulation  shall  enter  into  force  on  the  day  following  its  publication  in  the  Official 
Journal of the European Union and shall be in force for a period of two years. 

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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ANNEX 

The  valid  commercial  invoice  referred  to  in  Article  1(4)  of  this  Regulation  must  include  a 
declaration signed by an official of the company, in the following format: 

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 furfuryl alcohol 
currently classifiable within CN code ex 2932 13 00 (TARIC additional code) sold for export 
to  the  European  Community  covered  by  this  invoice  was  manufactured  by  [company  name 
and address] in the People's Republic of China; I declare that the information provided in this 
invoice is complete and correct." 

3. Date and signature. 

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