Proposal for a Council Regulation extending the suspension of the definitive anti-dumping duty imposed by Regulation (EC) 1683/2004 on imports of glyphosate originating in the People's Republic of China
Date: 2010-02-04
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, herbicide, import, originating product

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EUROPEAN COMMISSION 

Brussels, 4.2.2010 
COM(2010)29 final 

2010/0028 (NLE) 

Proposal for a 

COUNCIL REGULATION 

extending the suspension of the definitive anti-dumping duty imposed by Regulation 
(EC) 1683/2004 on imports of glyphosate 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 
1225/20091  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  glyphosate  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  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  1683/20042  of  24  September  2004  imposing  a 
definitive anti-dumping duty on imports of glyphosate originating in the People's 
Republic of China. 

Council  Regulation  (EC)  No  163/20023  of  28  January  2002  extending  the 
definitive  anti-dumping  measures  imposed  by  Regulation  (EC)  No  368/98  on 
imports of glyphosate originating in the People’s Republic of China to imports of 
the  same  product  consigned  from  Malaysia  or  Taiwan,  whether  declared  as 
originating  in  Malaysia  or  Taiwan  or  not  and  terminating  the  investigation  in 
respect of imports from one Malaysian and one Taiwanese exporting producer. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

•  Consultation of interested parties 

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

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OJ L 343, 22.12.2009, p.51 
OJ L 303, 30.9.2004, p. 1. 
OJ L 30, 31.1.2002, p. 1. 

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•  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 

•  Summary of the proposed action 

Anti-dumping duties were suspended for a period of nine months by Commission 
Decision  of  14  May  20094  further  to  a  substantiated  request  received  from  the 
users and distributors of the product concerned., according to Article 14(4) of the 
basic Regulation.  

The  reasons  at  the  origin  of  the  suspension  are  still  continuing,  therefore  the 
injury linked to the imports of the product concerned originating in the People's 
Republic of China is unlikely to resume in the short term. 

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 at the earliest convenience. 

•  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, and in particular Article 14 (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 

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OJ L 120, 15.5.2009, p. 20 

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Community,  national  governments,  regional  and  local  authorities,  economic 
operators  and  citizens  is  minimized  and  proportionate  to  the  objective  of  the 
proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: Council Regulation. 

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

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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2010/0028 (NLE) 

Proposal for a 

COUNCIL REGULATION 

extending the suspension of the definitive anti-dumping duty imposed by Regulation 
(EC) 1683/2004 on imports of glyphosate 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 Community5 (the 'basic 
Regulation'), and in particular Article 14(4) thereof,  

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

Whereas: 

A. PROCEDURE 

(1) 

(2) 

(3) 

Following  a  review  investigation  carried  out  pursuant  to  Article  11(2)  of  the  basic 
Regulation  ('review  investigation'),  the  Council,  by  Regulation  (EC)  No  1683/20046, 
imposed  a  definitive  anti-dumping  duty  on  imports  of  glyphosate  originating  in  the 
People's  Republic  of  China  currently  falling  within  CN  codes  ex  2931  00  99  and  ex 
3808 93 27 (the 'product concerned'), as extended to imports of glyphosate consigned 
from Malaysia (whether declared as originating in Malaysia or not) with the exception 
of  those  produced  by  Crop  Protection  (M)  Sdn.  Bhd.  and  as  extended  to  imports  of 
glyphosate consigned from Taiwan (whether declared as originating in Taiwan or not) 
with  the  exception  of  those  produced  by  Sinon  Corporation  .  The  rate  of  the  anti-
dumping duty is 29,9%. 

By Decision 2009/383/EC7 (the 'suspension Decision'), the Commission suspended the 
definitive anti-dumping duties for a period of nine months, with effect from 16 May 
2009. 

On  29  September  2009  an  expiry  review  of  the  measures  was  initiated8,  further  to  a 
request lodged by the Union industry. 

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OJ L 343, 22.12.2009, p. 51.  
OJ L 303, 30.9.2004, p. 1 
OJ L 120, 15.5.2009, p. 20 

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B. GROUNDS FOR EXTENDING THE SUSPENSION 

(4) 

(5) 

(6) 

Article  14(4)  of  the  basic  Regulation  provides  that  anti-dumping  measures  may  be 
suspended  for  a  period  of  nine  months  by  a  decision  of  the  Commission  on  the 
grounds  that  market  conditions  have  temporarily  changed  to  an  extent  that  injury 
would  be  unlikely  to  resume  as  a  result  of  such  a  suspension.  Article  14(4)  further 
specifies that the suspension may be extended for a further period, not exceeding one 
year, if the Council so decides, acting on a proposal from the Commission.  

Following  the  suspension  of  the  definitive  anti-dumping  duties  by  Decision 
2009/383/EC,  the  Commission  has  continued  to  monitor  the  market  situation  of 
glyphosate,  in  particular  with  regard  to  import  flows  from  the  People's  Republic  of 
China. 

An examination of recent import flows reveals that imports from the People's Republic 
of  China  remained  at  low  levels  and  even  decreased  after  the  suspension  of  the 
measures. 

(7)  With  regard  to  the  Union  industry,  it  is  noted  that  its  situation  has  remained  stable 
after  the  entry  into  force  of  the  suspension  on  16  May  2009.  Notwithstanding  a 
moderate decrease in production and sales of the generic product (basic product from 
which formulations are obtained) in direct competition with the Chinese imports, this 
trend  is  in  line  with  the  reduced  consumption  figures  for  the  period  between 
September  2008  and  August  2009.  Favourable  unit  sale  prices  (indicating  the  Union 
industry's shifting focus towards formulated products at higher added value) and stable 
costs of production enabled the industry to achieve a comfortable profit for the period 
between  September  2008  and  August  2009.  On  the  basis  of  the  market  information 
currently available, it is not expected that this situation will change substantially in the 
short term in the event of an extension of the suspension of the measures. 

(8) 

(9) 

Due to, inter alia, a considerable amount of stocks held by producers, importers and 
users the market appears stable in the months following the suspension. Imports from 
China have decreased considerably between May and October 2009 and are lower in 
comparison  with  the  period  when  the  anti-dumping  duty  was  in  place.  Against  this 
background  of  decreased  imports,  the  decreased  export  prices  from  China  seen 
between May and October 2009 did not have a significant impact on the situation of 
the Union industry. Sufficient evidence is not at hand showing that imports will surge 
in the short term. 

Notwithstanding the indications given by the Union industry on increased production 
capacity in the People's Republic of China, current statistics do not show evidence of 
increased  imports  in  the  EU.  Even  though  Chinese  production  capacity  is  likely  to 
continue to increase in the next years, the worldwide demand is also expected to grow. 
In  addition,  the  internal  Chinese  market  consumption  has  increased  considerably.  It 
must also be pointed out that the actual output resulting from this capacity expansion 
has been limited.  

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OJ C 234, 29.9.2009, p. 9.  

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(10)  No indications have been found as to why the prolongation of the suspension would 

not be in the Union interest. 

(11) 

In conclusion, notwithstanding a decrease in export prices from the People's Republic 
of China during the recent months, factors such as the low imported quantities and the 
high profit levels of the Union industry indicate that the injury linked to the imports of 
the  product  concerned  originating  in  the  People's  Republic  of  China  is  unlikely  to 
resume  as  a  result  of  the  extension  of  the  suspension.  The  continuation  of  the 
suspension  will  in  principle  be  for  one  year.  However,  in  accordance  with  Article 
14(4)  last  paragraph  of  the  basic  Regulation,  the  measures  may  at  any  time  be 
reinstated if the reason for suspension is no longer applicable. This might in particular 
be decided if it is found in the expiry review that the measures should continue. 

(12) 

It  is  recalled  that  this  analysis  is  without  prejudice  to  the  outcome  of  the  current 
review initiated pursuant to Article 11(2) of the basic Regulation, which is subject to 
different legal criteria. 

C. CONSULTATION OF THE UNION INDUSTRY 

(13) 

In  accordance  with  the  provisions  of  Article  14(4)  of  the  basic  Regulation,  the 
Commission has informed the Union industry of its intention to extend the suspension 
of  the  anti-dumping  measures  in  force.  The  Union  industry  has  been  given  an 
opportunity to comment and to be heard and their comments were taken into account. 
In  particular  it  is  recalled  that  in  accordance  with  Articles  3  and  4  of  the  basic 
Regulation,  the  injury  analysis  is  performed  with  respect  to  the  Union  industry  as  a 
whole and, as a result, the global situation of the Union industry may not necessarily 
reflect the situation of all individual producers. 

D. CONCLUSION 

(14)  The  Commission  therefore  considers  that  all  requirements  for  extending  the 
suspension  of  the  anti-dumping  duty  imposed  on  the  product  concerned  are  met,  in 
accordance with Article 14(4) of the basic Regulation. Consequently, the anti-dumping 
duty imposed by Regulation (EC) No 1683/2004 should continue to be suspended for 
a period of one year. 

(15)  The Commission will continue to monitor the development of imports and the prices 
of  the  product  concerned.  Should  the  situation  which  led  to  the  extension  of  the 
suspension  change  subsequently,  the  Commission  may  reinstate  the  anti-dumping 
measures by repealing the suspension of the anti-dumping duties forthwith, 

HAS ADOPTED THIS REGULATION: 

The  suspension  of  the  definitive  anti-dumping  duties  imposed  by  Commission  Decision 
2009/383/EC is hereby extended for a period of one year.  

Article 1 

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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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