Proposal for a Council Regulation concluding the 'new exporter' review of Regulation (EC) No 1338/2006 imposing a definitive anti-dumping duty on imports of chamois leather originating in the People's Republic of China, levying retroactively and imposing an anti-dumping duty with regard to imports from one exporter in this country and terminating the registration of these imports
Date: 2009-11-30
Institutions: European Commission
Subjects: China, animal skin, anti-dumping duty, anti-dumping legislation, import, leather, originating product

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.11.2009 
COM(2009)663 final 

Proposal for a 

COUNCIL REGULATION 

concluding the 'new exporter' review of Regulation (EC) No 1338/2006 imposing a 
definitive anti-dumping duty on imports of chamois leather originating in the People's 
Republic of China, levying retroactively and imposing an anti-dumping duty with 
regard to imports from one exporter in this country and terminating the registration of 
these imports 

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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 chamois leather originating in the People's Republic of 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 

Council Regulation (EC) No 1338/2006 imposing a definitive anti-dumping duty on 
imports of chamois leather originating in the People’s Republic of China. 

•  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 contain provisions for 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  3  July  2009  the  Commission  initiated  a  'new  exporter'  review  of  Council 
Regulation  (EC)  No  1338/2006  imposing  a  definitive  anti-dumping  duty  and 
collecting  definitively  the  provisional  duty  imposed  on  imports  of  chamois  leather 
originating  in  the  People's  Republic  of  China,  repealed  the  duty  with  regard  to 
imports  from  one  exporter  in  this  country  and  made  these  imports  subject  to 
registration.  The  company  concerned  is  Henan  Prosper  Skins  &  Leather  Enterprise 
Co., Ltd. ('the applicant'). 

During  the  investigation,  the  applicant  provided  false  and  misleading  information 
within  the  meaning  of  Article  18(1)  of  the  basic  Regulation,  and  refused  to 
cooperate. Finally, the applicant withdrew its request for a review. It was considered 
appropriate to continue the investigation ex officio and base findings with regard to 
the  applicant  on  facts  available  within  the  meaning  of  Article  18  of  the  basic 
Regulation. On that basis it was concluded that an anti-dumping duty set at the level 
of the duty applicable to 'all companies' imposed by Regulation (EC) No 1338/2006 
should be imposed retroactively on the applicant.  

It  is  therefore  proposed  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation which should be published in the Official Journal of the European Union 
as soon as possible. 

•  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  and  in 
particular article 11(4) thereof. 

•  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: 

The  form  of  action  is  described  in  the  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. 

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•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason: 

Other means would not be adequate because the basic Regulation does not provide 
for alternative options. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget.  

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Proposal for a 

COUNCIL REGULATION 

concluding the 'new exporter' review of Regulation (EC) No 1338/2006 imposing a 
definitive anti-dumping duty on imports of chamois leather originating in the People's 
Republic of China, levying retroactively and imposing an anti-dumping duty with 
regard to imports from one exporter in this country and terminating the registration of 
these imports 

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 Articles 11(4) thereof, 

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

Whereas: 

1. 

(1) 

MEASURES IN FORCE 

By  Regulation  (EC)  No  1338/20062,  the  Council,  following  an  investigation  ('the 
original investigation'), imposed a definitive anti-dumping duty on imports of chamois 
leather  originating  in  the  People's  Republic of  China  ('PRC').  The  measures  in  force 
consist of an ad valorem definitive country-wide duty rate of 58,9%. 

2. 

CURRENT INVESTIGATION 

(a) 

Request for a review 

(2) 

to 

the 

imposition  of 

Subsequent 
the 
Commission received a request for a 'new exporter' review pursuant to Article 11(4) of 
the basic Regulation. The request was based on the claim that the exporting producer, 
Henan Prosper Skins and Leather Enterprise Co. Ltd. ('the applicant')  

the  definitive  anti-dumping  measures, 

-  did  not  export  chamois  leather  before  or  during  the  investigation  period  of  the 
original investigation, 

- was not related to any of the exporting producers subject to the measures imposed 
by Regulation (EC) No 1338/2006, 

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OJ L 56, 6.3.1996, p. 1. 
OJ L 251, 14.9.2006, p. 1. 

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-  had  started  to  export  chamois  leather  to  the  Community  after  the  end  of  the 
investigation period of the original investigation, 

- operates under market economy conditions as defined in Article 2(7)(c) of the basic 
Regulation  or  alternatively  claims  individual  treatment  in  conformity  with  Article 
9(5) of the basic Regulation. 

(b) 

Initiation of a 'new exporter' review 

(3) 

(4) 

The  Commission  examined  the  prima  facie  evidence  submitted  by  the  applicant  and 
considered it sufficient to justify the initiation of a review pursuant to Article 11(4) of 
the  basic  Regulation.  After  consultation  of  the  Advisory  Committee  and  after  the 
Community  industry  concerned  had  been  given  the  opportunity  to  comment,  the 
Commission initiated, by Regulation (EC) No 573/20093, a review of Regulation (EC) 
No 1338/2006 with regard to the applicant. 

Pursuant  to  Article  2  of  Commission  Regulation  573/2009,  the  anti-dumping  duty 
imposed  by  Council  Regulation  (EC)  No  1338/2006  on  imports  of  chamois  leather 
produced by the applicant was repealed. Simultaneously, pursuant to Article 14(5) of 
the  basic  Regulation,  customs  authorities  were  directed  to  take  appropriate  steps  to 
register the imports of chamois leather produced by the applicant. 

(c) 

Product concerned 

(5) 

The  product  concerned  by  the  current  review  is  chamois  leather  as  defined  in  the 
original investigation, i.e. chamois leather and combination chamois leather, whether 
or  not  cut  to  shape,  including  crust  chamois  and  combination  crust  chamois  leather 
('chamois  leather')  originating  in  the  People's  Republic  of  China,  currently  falling 
within CN codes 4114 10 10 and 4114 10 90. 

(d) 

Parties concerned 

(6) 

The  Commission  officially  advised  the  Community  industry,  the  applicant  and  the 
representatives  of  the  exporting  country  of  the  initiation  of  the  review.  Interested 
parties  were  given  the  opportunity  to  make  their  views  known  in  writing  and  to  be 
heard. 

(e) 

Review investigation period 

(7) 

3. 

(8) 

The  investigation  of  dumping  covered  the  period  from  1  July  2008  to  30  June  2009 
('review investigation period' or 'RIP'). 

WITHDRAWAL  OF  COOPERATION  AND  OF  THE  REQUEST  FOR  A 
'NEW EXPORTER' REVIEW 

The Commission sent a questionnaire to the applicant and received a reply within the 
deadlines  set.  During  the  verification  of  the  applicant's  questionnaire  reply  at  their 
premises, the applicant provided false and misleading information within the meaning 
of Article 18 (1) of the basic Regulation. Furthermore, the applicant decided to cease 

3 

OJ L 172, 2.7.2009, p. 3. 

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cooperation  altogether  and  the  verification  had  to  be  terminated  without  being 
completed. On 21 September 2009, the applicant formally withdrew its application for 
a 'new exporter' review.  

The  applicant  was  informed  that  the  information  supplied  by  it  could  not  be 
considered  reliable  and  would  be  rejected  and  was  invited  to  provide  further 
explanations  within  a  given  deadline  in  accordance  with  Article  18(4)  of  the  basic 
Regulation. The applicant did not supply any further explanation.  

In  the  above  circumstances,  despite  the  withdrawal  of  the  application,  it  was 
considered appropriate to continue the investigation ex officio and base findings with 
regard to the applicant on facts available within the meaning of Article 18 of the basic 
Regulation. 

(9) 

(10) 

(11) 

In the absence of other information, the duty rate to be applied to the applicant is set at 
the level of the country-wide duty.  

4. 

(12) 

CONCLUSION OF THE INVESTIGATION AND RETROACTIVE LEVYING 
OF THE ANTI-DUMPING DUTY 

In the light of the above findings, it was concluded that imports into the Community of 
chamois  leather  and  combination  chamois  leather,  whether  or  not  cut  to  shape, 
including  crust  chamois  leather  and  combination  crust  chamois  leather,  currently 
falling  within  CN  codes  4114  10  10  and  4114  10  90,  originating  in  the  People's 
Republic of China, produced and sold for export to the Community by Henan Prosper 
Skins & Leather Enterprise Co., Ltd (TARIC additional code A957) should be subject 
to  an  anti-dumping  duty  at  the  level  of  the  antidumping  duty  imposed  by  Council 
Regulation  (EC)  No  1338/2006  on  all  companies  in  the  People's  Republic  of  China 
and that that rate of anti-dumping duty should be re-imposed and levied retroactively 
on  imports  of  the  product  concerned,  which  have  been  made  subject  to  registration 
pursuant to Article 3 of Commission Regulation (EC) No 573/2009. 

5. 

DISCLOSURE AND DURATION OF THE MEASURES 

(13)  The  applicant,  the  Community  industry  and  the  representatives  of  the  exporting 
country  were  informed  of  the  essential  facts  and  considerations  leading  to  the  above 
conclusions and were given an opportunity to comment. No comments of a nature as 
to warrant a change of the above conclusions were received. 

(14)  This  review  does  not  affect  the  date  on  which  the  measures  imposed  by  Regulation 
(EC) No 1338/2006 will expire pursuant to Article 11(2) of the basic Regulation. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. The new exporter review initiated by Commission Regulation (EC) No 573/2009 is hereby 
concluded  and  an  anti-dumping  duty  set  at  the  level  of  the  anti-dumping  duty  applicable 
according to Article 1(2) of Council Regulation (EC) No 1338/2006 to all companies in the 
People's  Republic  of  China  is  hereby  imposed  on  imports  identified  in  Article  1  of 
Commission Regulation (EC) No 573/2009. 

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2.  An  anti-dumping  duty  set  at  the  level  of  the  anti-dumping  duty  applicable  according  to 
Article  1(2)  of  Council  Regulation  (EC)  No  1338/2006  to  all  companies  in  the  People's 
Republic of China is hereby levied with effect from 3 July 2009 on imports of chamois leather 
which  have  been  registered  pursuant  to  Article  3  of  Commission  Regulation  (EC)  No 
573/2009. 

3. The customs authorities are hereby directed to cease the registration carried out pursuant to 
Article 3 of Commission Regulation (EC) No 573/2009. 

4. Unless otherwise specified, the provisions in force concerning customs duties shall apply. 

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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