Proposal for a Council Regulation Repealing the anti-dumping duty imposed by Regulation (EC) No 172/2008 on imports of ferro-silicon originating in the former Yugoslav Republic of Macedonia.
Date: 2009-11-30
Institutions: European Commission
Subjects: North Macedonia, anti-dumping duty, anti-dumping legislation, import, iron, originating product, semi-metal

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.11.2009 
COM(2009)659 final 

Proposal for a 

COUNCIL REGULATION 

Repealing the anti-dumping duty imposed by Regulation (EC) No 172/2008 on imports 
of ferro-silicon originating in the former Yugoslav Republic of Macedonia. 

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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, as last amended by Council Regulation (EC) No 2117/2005 
of 21 December 2005 (‘the basic Regulation’) in the proceeding concerning imports of 
ferro-silicon  originating  in  the  People’s  Republic  of  China,  Egypt,  Kazakhstan,  the 
former Yugoslav Republic of Macedonia and Russia. 

•  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  172/2008,  imposing  a  definitive  anti-dumping  duty  and 
collecting  definitely  the  provisional  duty  imposed  on  imports  of  ferro-silicon 
originating in the People’s Republic of China, Egypt, Kazakhstan, the former Yugoslav 
Republic of Macedonia and Russia. 

•  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. 

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3. 

Legal elements of the proposal 

•  Summary of the proposed action 

On  22  April  2009  the  Commission  initiated  a  partial  interim  review  of  the  anti-
dumping  measures  applicable  to  imports  of  ferro-silicon  originating  in  the  People’s 
Republic  of  China,  Egypt,  Kazakhstan,  the  former  Yugoslav  Republic  of  Macedonia 
and Russia. The investigation was limited in scope to the examination of dumping as 
far  as  the  applicant,  Silmak  Dooel  Export  Import,  is  concerned.  This  exporting 
producer is currently subject to the anti-dumping duty of 5,4%, which is also the level 
of the residual duty for imports of ferro-silicon from the former Yugoslav Republic of 
Macedonia. 

The investigation showed that no dumping took place during the investigation period. 
It  was  also  concluded  that  the  circumstances  found  during  the  current  investigation 
period were of a lasting nature. 

It is therefore suggested that the Council adopts the attached proposal for a Regulation, 
which  should  be  published  no  later  than  21  July  2010,  in  order  to  repeal  the  anti-
dumping  duty  applicable  to  imports  of  ferro-silicon  from  the  former  Yugoslav 
Republic of Macedonia.  

•  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 for the following reason: 

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 provide for 

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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 

Repealing the anti-dumping duty imposed by the Regulation (EC) No 172/2008 on 
imports of ferro-silicon originating in the former Yugoslav Republic of Macedonia 

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), and in particular Article 11 paragraphs 3 and 6 thereof, 

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

Whereas: 

1. 

PROCEDURE  

1.1. 

Existing measures 

(1) 

The Council, by Regulation (EC) No 172/20082 ('the original Regulation'), imposed a 
definitive  anti-dumping  duty  on  imports  of  ferro-sillicon  ('FeSi')  originating  in  the 
People's  Republic  of  China,  Egypt,  Kazakhstan,  the  former  Yugoslav  Republic  of 
Macedonia  and  Russia.  The  measures  consist  of  ad  valorem  duties  in  the  range  of 
5,4%  to  33,9%  depending  on  the  country  of  origin,  with  the  exception  of  four 
companies  expressly  mentioned  in  the  original  Regulation  which  are  subject  to 
individual duty rates. 

1.2. 

Request for a review 

(2) 

Subsequent  to  the  imposition  of  definitive  measures,  the  Commission  received  a 
request for a partial interim review pursuant to  Article  11(3) of the basic Regulation 
('the  interim  review').  The  request,  limited  in  scope  to  the  examination  of  dumping, 
was  lodged  by  an  exporting  producer  from  the  former  Yugoslav  Republic  of 
Macedonia,  Silmak  Dooel  Export  Import  ('the  applicant'  or  'Silmak').  The  applicant 
cooperated in the investigation which led to the findings and conclusions laid down in 

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OJ L 56, 6.3.1996, p. 1.  
OJ L 55, 28.2.2008, p. 6.  

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the original Regulation ('the original investigation'). The anti-dumping duty applicable 
to the applicant, which is the only known exporting producer of the product concerned 
originating in the former Yugoslav Republic of Macedonia, is 5,4%.  

(3) 

In  its  request  for  the  interim  review  the  applicant  argued  that  a  comparison  of  its 
constructed  normal  value  and  its  export  prices  to  the  Community  indicated  that  the 
dumping margin was substantially lower than the current level of measure. Therefore, 
it  claimed  that  the  continued  application  of  the  measure  at  its  current  level  was  no 
longer necessary to offset dumping.  

1.3. 

Initiation of a partial interim review 

(4) 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  an  interim  review,  the  Commission  decided  to  initiate  a 
partial interim review in accordance with Article 11(3) of the basic Regulation, limited 
in  scope  to  the  examination  of  dumping  as  far  as  Silmak  is  concerned.  The 
Commission published a notice of initiation on 22 April 2009 in the Official Journal of 
the European Union3 and commenced an investigation.  

1.4. 

Product concerned and like product 

(5) 

The  product  concerned  by  the  interim  review  is  the  same  as  that  in  the  original 
investigation, i.e. a ferro-alloy containing by weight more than 8% and less than 96% 
silicon and at least 4% iron. Production of FeSi takes place in electric arc furnaces by 
means  of  reducing  quartz  using  carbon-bearing  products.  The  product  is  essentially 
used as a deoxidiser and as an alloying component in the iron and steel industry. FeSi 
is sold in the form of lumps, grains or powder and exists in various qualities depending 
on the silicon and the impurity content (e.g. aluminium). FeSi with a silicon content of 
70%  and  higher  was  considered  as  high  purity,  with  a  silicon  content  of  more  than 
55% and less than 70% as medium purity, and with a silicon content of less than 55% 
as low purity FeSi. The product concerned is currently falling within CN codes 7202 
21 00, 7202 29 10 and 7202 29 90.  

(6) 

The  product  produced  and  sold  in  the  former  Yugoslav  Republic  of  Macedonia  and 
that exported to the Community, have the same basic physical, technical and chemical 
characteristics and uses and are therefore considered to be alike within the meaning of 
Article 1(4) of the basic Regulation.  

1.5. 

Parties concerned 

(7) 

The  Commission  officially  advised  the  Community  industry,  the  applicant  and  the 
authorities of the exporting country of the initiation of the interim 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. All interested parties, 
who so requested and showed  that there were particular reasons  why they  should be 
heard, were granted a hearing.  

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OJ C 93, 22.4.2009, p.22. 

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(8) 

The Commission sent a questionnaire to the applicant and received a reply within the 
deadline set for that purpose. The Commission sought and verified all the information 
it  deemed  necessary  for  the  determination  of  dumping,  and  a  verification  visit  was 
carried out at the premises of the applicant:  

– 

Silmak  Dooel  Export-Import,  Jegunovice,  the  former  Yugoslav  Republic  of 
Macedonia.  

1.6. 

Investigation period 

(9) 

The investigation of dumping covered the period from 1 January 2008 to 31 December 
2008 ('the investigation period' or 'IP'). 

2. 

RESULTS OF THE INVESTIGATION 

2.1. 

Normal value  

(10) 

In  accordance  with  Article  2(2)  of  the  basic  Regulation,  the  Commission  first 
examined  whether  the  applicant's  domestic  sales  of  the  like  product  to  independent 
customers were representative, i.e. whether the total volume of such sales was equal to 
at least 5% of the total volume of the corresponding export sales to the Community. 

(11)  As the investigation established that there were no representative domestic sales of the 
like product in the former Yugoslav Republic of Macedonia, normal value had to be 
constructed. In accordance with Article 2(3) of the basic Regulation, normal value was 
constructed  by  adding  to  the  manufacturing  costs  of  the  exported  types  a  reasonable 
amount  for  selling,  general  and  administrative  expenses  ('SG&A')  and  a  reasonable 
profit margin.  

(12) 

In order to establish whether the applicant's own SG&A and profit margin realised on 
the  domestic  sales  of  the  like  product  could  be  used,  the  Commission  subsequently 
examined  whether  there  were  any  domestic  sales  of  FeSi  in  the  IP  which  could  be 
regarded as having been made in the ordinary course of trade, pursuant to Article 2(4) 
of  the  basic  Regulation.  It  was  found  that  the  company  had  few  profitable  domestic 
sales transactions during the IP, corresponding to very small quantities. The company 
claimed that these transactions concerned trial product types which could not therefore 
be  considered  to  be  in  the  ordinary  course  of  trade.  The  claim  was  examined  and 
accepted.  

(13)  Based  on  the  above  analysis,  it  was  concluded  that  the  applicant  did  not  have  any 
domestic sales of the like product in the ordinary course of trade during the IP. Thus, 
pursuant to Article 2(6)(c) it was considered reasonable when constructing the normal 
value  to  follow  the  same  method  as  that  applied  in  the  original  investigation.  As  a 
consequence, the weighted average SG&A incurred by the Egyptian producers in the 
original investigation, because of their comparable production and sales structures, and 
a  profit  margin  of  5%  which  was  considered  a  reasonable  profit  for  this  type  of 
commodity market, were added to the cost of manufacturing of the applicant.  

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2.2. 

Export price  

(14)  Since  all  export  sales  of  the  applicant  to  the  Community  were  made  directly  to 
independent  customers,  the  export  prices  were  established  on  the  basis  of  the  prices 
actually paid or payable for the product concerned in accordance with Article 2(8) of 
the basic Regulation. 

2.3. 

Comparison  

(15)  The comparison between the weighted average normal value and the weighted average 
export price was made on an ex-works basis and at the same level of trade. In order to 
ensure a fair comparison between normal value and export price, account was taken, in 
accordance with Article 2(10) of the basic Regulation, of differences in factors which 
were  demonstrated  to  affect  prices  and  price  comparability.  For  this  purpose,  due 
allowance  in  the  form  of  adjustments  was  made  for  costs  of  freight  and  insurance, 
handling,  packing  and  ancillary  expenses,  financial  costs,  bank  charges  and  anti-
dumping duties paid by the applicant where applicable and justified.  

2.4. 

Dumping margin  

(16)  As  provided  for  under  Article  2(11)  of  the  basic  Regulation,  the  weighted  average 
normal  value  by  type  was  compared  with  the  weighted  average  export  price  of  the 
corresponding  type  of  the  product  concerned.  This  comparison  did  not  show  the 
existence of dumping.  

3. 

LASTING NATURE OF CHANGED CIRCUMSTANCES  

(17) 

(18) 

In  accordance  with  Article  11(3)  of  the  basic  Regulation,  it  was  also  examined 
whether the changed circumstances could reasonably be considered to be of a lasting 
nature.  

In  this  regard  the  investigation  showed  that  Silmak  had  made  substantial  efforts  to 
change  the  structure  of  its  production  towards  higher  grade  product  types  (with  a 
silicon  content  of  75%  or  higher)  resulting in  an  increase  in  its  export  prices,  which 
was on average higher than the increase in the costs.  

(19)  The applicant provided full cooperation in this interim  review  and the  data collected 
and verified allowed to establish a dumping margin based on its own data, including 
individual export prices to the Community. The result of this calculation indicates that 
the  continued  application  of  the  measure  at  its  current  level  would  no  longer  be 
justified.  

(20)  Evidence obtained and verified during the investigation also showed that the changes 
in  the  applicant's  production  structure  are  to  be  considered  lasting.  No  element 
emerged  in  the  course  of  the  investigation  that  would  suggest  otherwise.  It  was 
therefore  considered  that  the  circumstances  that  led  to  the  initiation  of  this  interim 
review are unlikely to change in the foreseeable future in a manner that would affect 

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the  findings  of  the  interim  review.  Therefore  it  was  concluded  that  the  changed 
circumstances are of a lasting nature. 

4. 

ANTI-DUMPING MEASURES  

(21) 

(22) 

(23) 

It is noted that the comparison of the applicant's export data with Eurostat showed that 
the company's export quantity of the product concerned in the IP corresponded to the 
total quantity of the product concerned imported into the Community from the former 
Yugoslav Republic of Macedonia during the same period. 

In  the  light  of  the  results  of  this  review  investigation,  it  is  considered  appropriate  to 
repeal  the  anti-dumping  duty  applicable  to  imports  of  the  product  concerned 
originating in the former Yugoslav Republic of Macedonia.  

Interested parties were informed of the essential facts and considerations on the basis 
of which it was intended to recommend the repeal of the measure imposed by Council 
Regulation (EC) No 172/2008 on imports of the product concerned originating in the 
former Yugoslav Republic of Macedonia and were given an opportunity to comment. 
No comments were received from the interested parties.  

HAS ADOPTED THIS REGULATION: 

Sole Article 

The partial interim review of the antidumping measures applicable to imports of ferro-silicon, 
currently falling within CN codes 7202 21 00, 7202 29 10 and 7202 29 90, originating in the 
former  Yugoslav  Republic  of  Macedonia,  initiated  pursuant  to  Article  11(3)  of  Regulation 
(EC) No 384/96, is hereby terminated and the measure in force on imports originating in the 
former Yugoslav Republic of Macedonia is repealed. 

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

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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