Proposal for a Council Regulation ¨Terminating the partial interim review of the anti-dumping measures applicable to imports of certain tungsten electrodes originating in the People's Republic of China
Date: 2010-01-29
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, electrical equipment, import, originating product

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EUROPEAN COMMISSION 

Brussels, 29.1.2010 
COM(2010)17 final 

2010/0009 (NLE) 

Proposal for a 

COUNCIL REGULATION 

Terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain tungsten electrodes originating in the People's Republic of China 

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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 1225/2009 of 
30  November  2009  on  protection  against  dumped  imports  from  countries  not 
members  of  the  European  Community  ('the  basic  Regulation')  in  the  proceeding 
concerning  imports  of  certain  tungsten  electrodes  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  260/2007  imposing  a  definitive  anti-dumping  duty  on 
imports of certain tungsten electrodes 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. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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On  4  December  2008  the  Commission  initiated  a  partial  interim  review  limited  to 
dumping for one exporting producer of certain tungsten electrodes originating in the 
People's Republic of China upon the request of the exporter concerned. 

On  9  November  2009  the  company  concerned  withdrew  its  request  for  a  review. 
Upon consideration of whether it would be warranted to continue the investigation ex 
officio,  it  was  concluded  that  the  review  should  be  terminated.  It  is  therefore 
proposed that the Council adopt the attached proposal for a Regulation which should 
be published in the Official Journal of the European Union by 3 March 2010 at the 
latest. 

•  Legal basis 

Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against 
dumped imports from countries not members of the European Community. 

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  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  Union, 
national governments, regional and local authorities, economic operators and citizens 
is minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason: 

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 Union budget.  

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2010/0009 (NLE) 

Proposal for a 

COUNCIL REGULATION 

Terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain tungsten electrodes originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 (‘the basic 
Regulation’) and in particular Articles 11(3) and 9(1) thereof, 

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

Whereas: 

1. 

PROCEDURE 

1.1. 

Measures in force 

(1) 

By  Regulation  (EC)  No  260/20072,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports of certain tungsten electrodes originating in the People's Republic of 
China. For the three companies with individual duties, the duties in force range from 
17% to 38,8%. The residual duty is 63,5%.  

1.2. 

Request for review 

(2) 

(3) 

(4) 

In May 2008, the Commission received a request for a partial interim review pursuant 
to  Article 11(3)  of  the  basic  Regulation  from  one  exporting  producer  of  certain 
tungsten electrodes originating in the People's Republic of China. 

The request was lodged by Shandong Weldstone Tungsten Industry Co. Ltd. ('SWT' or 
'the applicant'). 

The  applicant  had  provided  prima  facie  evidence  showing  that,  on  the  basis  of  a 
comparison of constructed normal values and export prices to the Union, its dumping 
margin appeared to be substantially lower than the existing level of the measure and 
that  the  continued  application  of  the  measure  at  the  existing  level  was  no  longer 
necessary to offset dumping. 

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OJ L 343, 22.12.2009, p. 51. 
OJ L 72, 13.3.2007, p. 1. 

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1.3. 

Initiation 

(5) 

(6) 

(7) 

2. 

(8) 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed to justify the initiation of a partial interim review, the Commission announced, 
by a notice ('the notice of initiation') published in the Official Journal of the European 
Union3,  the  initiation  of  a  partial  interim  review  in  accordance  with  Article  11(3)  of 
the  basic  Regulation,  limited  to  the  examination  of  dumping  as  far  as  SWT  is 
concerned. The 'product concerned' was the same as that set out in Council Regulation 
(EC)  No  260/2007,  being  tungsten  welding  electrodes,  containing  94%  or  more  by 
weight of tungsten, other than those obtained simply by sintering, whether or not cut to 
length, falling within CN codes ex 8101 99 10 and ex 8515 90 00 and originating in 
the People's Republic of China.  

The  investigation  of  dumping  covered  the  period  from  1  October  2007  to  30 
September 2008. 

The Commission officially advised the applicant, representatives of the Union industry 
and  the  representatives  of  the  exporting  country  of  the  initiation  of  the  review 
investigation. Interested parties were given the opportunity to make their views known 
in writing and to request a hearing within the time limit set in the notice of initiation.  

WITHDRAWAL  OF  THE  REQUEST  AND  TERMINATION  OF  THE 
PROCEEDING 

By  letter  to  the  Commission  dated  9  November  2009  SWT  formally  withdrew  its 
request  for  the  partial  interim  review  of  the  anti-dumping  measures  applicable  to 
imports of certain tungsten electrodes originating in the People's Republic of China. In 
the  light  of  the  recent  economic  crisis,  the  applicant  has  begun  to  reconsider  the 
economic viability of certain aspects of its operations.  

(9) 

The  representatives  of  the  Union  industry  considered  that  the  reasons  given  by  the 
applicant for the withdrawal were circumstantial and not acceptable.  

(10)  However,  since  the  request  for  the  review  had  already  been  submitted  in  May  2008, 
i.e. before the onset of the economic crisis, and that the applicant withdrew the request 
well after the beginning of the crisis, when the investigation was still on-going and not 
yet  complete,  the  Commission  cannot  consider  the  reasons  for  withdrawal  as 
circumstantial. 

(11) 

It was considered whether it would be warranted to continue the review investigation 
ex  officio.  The  Commission  services  found  that  the  termination  would  not  affect  the 
actual  anti-dumping  measures  and  no  compelling  arguments  were  received  that 
termination would be against the Union interest. On this basis, the review investigation 
should be terminated.  

(12) 

Interested parties were informed of the intention to terminate the review investigation 
and were given the opportunity to comment. No comments received were such as to 
alter the conclusions set out in recitals 10 and 11. 

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OJ C 309, 4.12.2008, p. 11. 

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(13) 

It  is  therefore  concluded  that  the  review  concerning  imports  of  certain  tungsten 
electrodes originating in the People's Republic of China should be terminated without 
amending the anti-dumping measures in force, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  partial  interim  review  of  the  anti-dumping  measures  applicable  to  imports  of  certain 
tungsten electrodes originating in the People's Republic of China initiated pursuant to Article 
11(3)  of  Regulation  (EC)  No  1225/2009  is  hereby  terminated  without  amending  the  anti-
dumping measures in force. 

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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