Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of silicon originating in the People's Republic of China, as extended to imports of silicon consigned from the Republic of Korea, whether declared as originating in the Republic of Korea or not, following an expiry review pursuant to Article 11(2) and a partial interim review pursuant to Article 11(3) of Regulation (EC) No 1225/2009
Date: 2010-04-30
Institutions: European Commission
Subjects: China, South Korea, anti-dumping duty, import, originating product, semi-metal

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EUROPEAN COMMISSION 

Brussels, 30.4.2010 
COM(2010)202 final 

2010/0109 (NLE) 

Proposal for a 

COUNCIL REGULATION  

imposing a definitive anti-dumping duty on imports of silicon originating in the People's 
Republic of China, as extended to imports of silicon consigned from the Republic of 
Korea, whether declared as originating in the Republic of Korea or not, following an 
expiry review pursuant to Article 11(2) and a partial interim review pursuant to Article 
11(3) of Regulation (EC) No 1225/2009

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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  Community1  (‘the  basic  Regulation’)  in  the  proceeding  concerning  the 
review  of  the  measures  applicable  to  imports  of  silicon  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 

In July 1990, the Council, by Regulation (EC) No 2200/902, imposed a definitive ad-
valorem  anti-dumping  duty  on  imports  of  silicon  originating  in  China.  The  measures 
were  renewed  twice  -  by  Council  Regulations  (EC)  No  2496/973  and  398/20044.  In 
January  2007,  by  Council  Regulation  (EC)  No  42/20075,  measures  were  extended  to 
imports  of  silicon  consigned  from  the  Republic  of  Korea  whether  declared  as 
originating in the Republic of Korea or not.  

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. 

1 
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4 
5 

OJ L 343, 22.12.2009, p. 51. 
OJ L 198, 28.7.1990, p. 57.  
OJ L 345, 16.12.2009, p. 1. 
OJ L 66, 4.3.2004, p. 15. 
OJ L 13, 19.1.2007, p. 1. 

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The basic Regulation does not provide 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 

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  findings  of  the 
investigation  on  the  lasting  nature  of  a  lower  level  of  dumping  and  the  likelihood  of 
continuation of dumping as well as the likelihood of recurrence of injury to the Union 
industry. 

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

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 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 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 instrument: Council Regulation. 

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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2010/0109 (NLE) 

Proposal for a 

COUNCIL REGULATION (EC) No 

imposing a definitive anti-dumping duty on imports of silicon originating in the People's 
Republic of China, as extended to imports of silicon consigned from the Republic of 
Korea, whether declared as originating in the Republic of Korea or not, following an 
expiry review pursuant to Article 11(2) and a partial interim review pursuant to Article 
11(3) of Regulation (EC) No 1225/2009 

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 Community6 (‘the basic 
Regulation’) and in particular Articles 9 and 11(2) and 11(3) thereof, 

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

Whereas: 

A. PROCEDURE 

Measures in force 

In  March  2004,  following  an  expiry  review,  the  Council,  by  Regulation  (EC)  No 
398/20047, imposed a definitive anti-dumping duty on imports of silicon originating in 
the People's Republic of China ('PRC'). The rate of the definitive duty applicable to the 
net free-at-Union frontier price, before duty, was 49%. The original measures had been 
imposed by Regulation (EC) No 2200/908.  

In January 2007, by Council Regulation (EC) No 42/20079 the definitive anti-dumping 
duty  was  extended  to  imports  of  silicon  consigned  from  the  Republic  of  Korea, 
whether declared as originating in the Republic of Korea or not. 

Request for an expiry review and a partial interim review 

Following  the  publication,  in  October  2008,  of  a  notice  of  impending  expiry  of  the 
anti-dumping  measures  applicable  to  imports  of  silicon  originating  in  the  PRC10,  the 

OJ L 343, 22.12.2009, p. 51. 
OJ L66, 4.3.2004, p. 15. 
OJ L198, 28.7.1990, p. 57.  
OJ L13, 19.1.2007, p. 1. 

1. 

(1) 

(2) 

2. 

(3) 

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Commission  received  on  1  December  2008  a  request  for  a  review  pursuant  to 
Article 11(2)  of  the  basic  Regulation.  In  addition,  the  Commission  received  on  18 
December 2008 a request for a partial interim review pursuant to Article 11(3) of the 
basic Regulation. 

The  expiry  review  request  was  lodged  by  Euroalliages  (Liaison  Committee  of  the 
Ferro-Alloy  Industry)  on  behalf  of  the  producers  in  the  Union  representing  a  major 
proportion, in this case 100% of the total Union production of silicon. 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 Union industry.  

The  partial  interim  review  request  was  lodged  by  EUSMET  (European  Users  of 
Silicon Metal) and is limited in scope to the examination of dumping. The request was 
based  on  prima  facie  evidence  that  the  circumstances  on  the  basis  of  which  the 
measures  were  established  had  changed  and  that  the  new  circumstances  were  of  a 
lasting nature. 

Having  determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient 
evidence existed for the initiation of an expiry review and an interim review pursuant 
to  Article  11(2)  and  11(3)  respectively  of  the  basic  Regulation,  the  Commission 
published a notice of initiation of these reviews in the Official Journal of the European 
Union11 ('notice of initiation)'. 

Investigation 

The  Commission  officially  advised  the  applicant  Union  producers,  the  exporting 
producers  in  the  PRC,  importers/traders,  users  in  the  Union  known  to  be  concerned 
and  their  associations  as  well  as  the  authorities  of  the  PRC  of  the  initiation  of  the 
reviews.  

In  view  of  the  apparent  large  number  of  Chinese  exporting  producers  listed  in  the 
requests  sampling  was  envisaged  in  the  notice  of  initiation  for  the  determination  of 
dumping and the likelihood of recurrence or continuation dumping, in accordance with 
Article 17 of the basic Regulation.  

In  order  to  enable  the  Commission  to  decide  whether  sampling  would  be  necessary 
and, if so, to select a sample, all exporting producers were asked to make themselves 
known to the Commission and to provide, as specified in the notice of initiation, basic 
information  on  their  activities  related  to  the  product  concerned  during  the  period  1 
January 2008 to 31 December 2008. 

(4) 

(5) 

(6) 

3. 

(7) 

(8) 

(9) 

(10)  The Commission received replies from 11 companies or company groups in the PRC. 
However,  after  examination  of  the  information  submitted  by  these  companies  it 
became  apparent  that  only  a  low  number  of  replies  were  made  by  companies  that 
exported  own-produced  silicon  to  the  European  Union.  It  was  therefore  decided  that 
sampling was not necessary in respect of Chinese exporting producers.  

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OJ C254, 7.10.2008, p. 9. 
OJ C51, 4.3.2009, p. 17. 

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(11)  All  the  above  mentioned  companies  or  company groups  in the  PRC also  stated their 
intention to request individual examination in application of Article 17(3) of the basic 
Regulation.  

(12)  The  Commission  sent  market  economy  treatment  (‘MET’)  or  individual  treatment 
(‘IT’) claim forms to the Chinese exporting producers known to be concerned. Claims 
for  MET,  or  for  IT  in  case  the  investigation  would  establish  that  the  exporting 
producers  do  not  meet  the  conditions  for  MET,  were  received  from  three  Chinese 
exporters. However, one of these exporters withdrew its claim subsequently, while the 
other two were found not to be exporting own-produced silicon to the European Union 
during the IP. The claims of these two companies were therefore not assessed.  

(13) 

In  addition,  six  other  Chinese  companies  or  company  groups  submitted  claim  forms 
for  IT.  However,  in  the  course  of  the  investigation  three  companies  ceased  co-
operation. Of the three remaining company groups, one sold the product concerned to 
an  unrelated  trader.  The  investigation  could  not  establish  with  certainty  whether  the 
Union  market  was  the  final  destination  of  the  sales.  As  this  company  group  can 
therefore not be regarded as an exporting producer, the claim for individual treatment 
had to be rejected. As indicated in recital (30), for one company where co-operation 
was  insufficient  within  the  meaning  of  Article  18  of  the  basic  Regulation,  findings 
were  based  on  facts  available.  The  IT  claim  of  the  remaining  company  was  found 
admissible.  

(14)  Finally,  out  of  the  two  remaining  companies  requesting  to  be  in  the  sample  and 
claiming individual examination, only one submitted a questionnaire reply within the 
deadlines  set  in  the  notice  of  initiation.  This  company  did  however  not  export  the 
product concerned to the Union market. 

(15)  The Commission sent questionnaires to all parties known to be concerned and to those 

who requested a questionnaire within the time limit set out in the notice of initiation. 

(16)  The  Commission  also  gave  interested  parties  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. 

(17)  Replies to the questionnaire were received from the applicant Union producers, twelve 
users, two associations of users, six exporters/producers in China and three producers 
in the analogue country. 

(18)  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 Union interest. Verification visits 
were carried out at the premises of the following companies: 

–  Applicant Union producers: 

- Ferroatlantica SL, Madrid, Spain 

- Ferropem SAS, Chambery, France 

- RW Silicium GmbH, Pocking, Germany 

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–  Exporting producers in the PRC: 

-Jinneng Group 

-Datong Jinneng Industrial Silicon Co., Datong 

-Shanghai Jinneng International Trade Co., Ltd, Shanghai 

- Chongqing Trust-Glory New Metal Group 

-Sichuan Dechang County Guo Yan Silicon Co. Ltd, Dechang 

-Chongqing Trust-Glory New Metal Co., Ltd, Chongqing 

- Bluestar Group 

-Bluestar Silicon Materials Co., Ltd, Lanzhou 

-China Bluestar International Chemical Co., Ltd, Beijing 

- Jingyu Sunny Silicon Co., Ltd, Jingyu 

- Mudanjiang Group 

- Mudanjiang Shunda Chemical Co., Ltd, Mudanjiang 

- Dongning Xinshun Guangfu Material Co., Ltd, Dongning 

- DC/JYKN group 

-  Dalian  DC  Silicon  Co.,  Ltd,  Dalian-  Sichuan  Jinyang  Kangning  Silicon  Co.  Ltd, 
Leshan 

–  Producers in the analogue country (Brazil): 

- Globe Metais Industria e Comercio S.A., Breu Branco 

- Companhia Brasileira Carbureto de Calcio, Santos Dumont 

- Rima Industrial S/A, Belo Horizonte 

–  Users: 

–  Aluminium industry 

- Trimet Aluminium AG, Essen, Germany 

- Raffmetal S.p.A., Brescia, Italy 

- Vedani Carlo Metalli S.p.A., Milan, Italy 

–  Chemical industry 

- Momentive Performance Materials GmbH, Leverkusen, Germany 

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- Wacker Chemie AG, Munich, Germany 

- Dow Corning Ltd, Cardiff, United Kingdom 

4. 

Review investigation period and period considered 

(19)  The  investigation  regarding  the  continuation  or  recurrence  of  dumping  and  injury 
covered  the  period  from  1  January  2008  to  31  December  2008  ('RIP'  or  'Review 
Investigation Period'). 

(20)  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'). 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

The product concerned 

(21)  The  product  concerned  is  the  same  as  that  in  the  previous  investigations,  i.e.  silicon 
metal  originating  in  the  PRC,  currently  falling  within  CN  code  2804  69  00  (silicon 
content less than 99.99% by weight). Purely by reason of the current classification set 
out  in  the  Combined  Nomenclature,  it  should  read  "silicon".  Silicon  with  a  higher 
purity, that is containing by weight not less than 99.99% of silicon, used mostly in the 
electronic semi-conductor industry, falls under a different CN code and is not covered 
by this proceeding.  

(22)  Silicon is produced in electric submerged arc furnaces with carbothermic reduction of 
quartz (silica) in the presence of various types of carbon reductants. It is marketed in 
the  form  of  lumps,  grains,  granules  or  powder  according  to  internationally  accepted 
technical specifications as regards its purity.  

(23)  Silicon is used primarily by two industries, the chemical industry for the production of 
methylchlorosilanes  or  trichlorosilanes  and  tetrachlorosilicon  and  the  aluminium 
industry  for  the  production  of  aluminium  alloys,  primary  and  secondary  smelters, 
intended for the production of casting alloys for different industries, in particular the 
automotive and building industries.  

2. 

Like product 

(24)  As in the previous expiry reviews, this investigation has shown that silicon produced 
in the PRC and exported to the Union, the silicon produced and sold on the domestic 
market of the analogue country (Brazil) and that manufactured and sold in the Union 
by  the  applicant  Union  producers  have  the  same  basic  physical  and  chemical 
characteristics and the same basic uses.  

(25) 

It was therefore concluded that these products must be considered to be like products 
within the meaning of Article 1(4) of the basic Regulation. 

1. 

Market Economy Treatment 

C. DUMPING 

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(26)  As  mentioned  above  in  recital  (12),  in  the  course  of  the  investigation,  the  three 
companies claiming MET either did not export own-produced silicon to the European 
Union or dropped their MET claim. MET was therefore not granted to any company. 

2. 

Individual treatment ('IT') 

(27)  As a general rule, pursuant to Article 2(7)(a) of the basic Regulation, a country-wide 
duty, if any, is established for countries falling under that Article, except in those cases 
where companies are able to demonstrate that they meet all criteria set out in Article 
9(5) of the basic Regulation and therefore qualify to be granted IT.  

(28)  Briefly, and for ease of reference only, these criteria are set out in a summarised form 

below:  

a) In the case of wholly or partly foreign owned firms or joint ventures, exporters are free to 
repatriate capital and profits;  

b) Export prices and quantities, and conditions and terms of sales are freely determined;  

c) the majority of the shares belong to private persons, and it must be demonstrated that the 
company is sufficiently independent from State interference 

d) Exchange rate conversions are carried out at the market rate.  

e) State interference is not such as to permit circumvention of measures if individual exporters 
are given different rates of duty. 

(29) 

It  is  first  noted  that  the  company  mentioned  in  recital  (12)  above  that  first  claimed 
MET but then withdrew its MET claim also withdrew its claim for IT. This claim was 
therefore not examined further. 

(30)  Of  the  six  companies  or  company  groups  which  claimed  only  IT,  three  ceased 
cooperation  and  one  did  not  supply  the  necessary  information  within  the  time  limits 
set and therefore significantly impeded the investigation within the meaning of Article 
18  of  the  basic  Regulation.  They  were  therefore  regarded  as  non-cooperating  and 
findings  with  regard  to  them  were  based  on  the  facts  available  in  accordance  with 
Article 18(1) of the basic Regulation. 

(31)  The  four  companies  or  company  groups  concerned  were  notified  of  the  likely 
application  of  facts  available  and  the  reasons  thereof  and  given  an  opportunity  to 
provide further explanations in accordance with Article 18(4) of the basic Regulation. 
However,  no  new  evidence  or  information  was  received  from  any  of  the  four 
companies  that  could  have  repaired  the  deficiencies  of  the  replies  submitted  or 
changed  the  conclusion  that  Article  18  of  the  basic  Regulation  should  be  applied  to 
these companies.  

(32)  Of the two remaining company groups, and as indicated in recital (13), one company 
group  cannot  be  regarded  as  an  exporting  producer  of  the  product  concerned  and  its 
claim for individual treatment was therefore not assessed. 

(33)  The remaining exporter was found to fulfil all criteria set in Article 9(5) of the basic 

Regulation. 

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(34)  From the above, it is concluded that IT should be granted to the Jinneng Group. 

3. 

Normal value 

3.1. 

Analogue country 

(35)  According  to  Article  2(7)(a)  of  the  basic  Regulation,  normal  value  for  the  exporting 
producers  not  granted  MET  has  to  be  established  on  the  basis  of  the  prices  or 
constructed value in an analogue country. Although Norway was used as an analogue 
country in the  original investigation and in the following expiry reviews, the current 
investigation  revealed  that  circumstances  with  regard  to  the  Norwegian  market  had 
since  changed  significantly.  Thus,  domestic  production  in  Norway  decreased  by 
around  20%  between  2005  and  2008  and  imports  of  silicon  in  Norway  represented 
97%  of  the  domestic  consumption.  During  the  IP,  there  was  only  one  domestic 
producer supplying the domestic market. 

(36)  Therefore,  Brazil  as  suggested  by  both  applicants  was  envisaged  as  an  appropriate 
market  economy  third  country  in  the  notice  of  initiation.  Indeed,  the  investigation 
revealed that Brazil is the second largest world producer of silicon after the PRC and 
that  the  Brazilian  market  is  highly  competitive  with  7  silicon  producers  present, 
producing  several  different  grades  of  silicon.  Brazil  was  also  considered  as  an  open 
market with significant import volumes mostly from the PRC. Although invited to do 
so, none of the interested parties commented on the choice of Brazil.  

(37)  Considering  the  above,  on  the  basis  of  the  information  available  at  the  time  of 

selection, it was concluded that Brazil was the most appropriate analogue country.  

3.2. 

Determination of normal value in the analogue country 

(38)  Three producers in Brazil co-operated by submitting information concerning cost and 
sales  of  silicon  on  the  Brazilian  domestic  market.  Pursuant  to  Article  2(7)(a)  of  the 
basic  Regulation,  normal  value  for  the  exporting  producers  not  granted  MET  was 
established  on  the  basis  of  verified  information  received  from  these  producers  as  set 
out below.  

(39) 

It  was  examined  whether  each  type  of  the  product  concerned  sold  in  representative 
quantities on the Brazilian domestic market could be considered as being sold in the 
ordinary  course  of  trade  pursuant  to  Article  2(4)  of  the  basic  Regulation.  This  was 
done  by  establishing  for  each  product  type  the  proportion  of  profitable  sales  to 
independent customers on the domestic market during the investigation period. 

(40)  Where the sales volume of a product type, sold at a net sales price equal to or above 
the calculated cost of production, represented more than 80 % of the total sales volume 
of that type, and where the weighted average price of that type was equal to or above 
the cost of production, normal value was based on the actual domestic price. This price 
was  calculated  as  a  weighted  average  of  the  prices  of  all  domestic  sales  of  that  type 
made during the IP, irrespective of whether these sales were profitable or not. 

(41)  Where the volume of profitable sales of a product type represented 80 % or less of the 
total sales volume of that type, or where the weighted average price of that type was 
below  the  cost  of  production,  normal  value  was  based  on  the  actual  domestic  price, 
calculated as a weighted average of profitable sales of that type only. 

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(42)  Depending  on  the  product  type,  normal  value  was  established  based  on  weighted 
average  sales  prices  of  all  sales  or  weighted  average  sales  prices  of  profitable  sales 
only,  on  the  domestic  market  of  the  analogue  country  based  on  the  verified  data  of 
three producers in that country. 

4. 

Export price 

IT company 

(43)  All export sales to the European Union by the sole exporting producer granted IT were 
made through a related trader located in the PRC and subsequently resold to unrelated 
customers in the Union. In this case the export price  was  established on the basis of 
Article 2(8) of the basic Regulation. 

(44)  The Union industry claimed that export prices were not freely determined within the 
meaning  of  Article  9(5)(b)  of  the  basic  Regulation.  In  particular  it  was  claimed  that 
price  "negotiations"  were  ongoing  between  the  Chinese  customs  authorities  and  the 
exporters  in  view  of  the  determination  of  a  "reasonable"  price  level.  However,  the 
evidence submitted in this respect did not relate to silicon and it was also considered 
that  these  alleged  "negotiations"  did  not  have  an  impact  on  the  price  charged  to  the 
final customer, which was the result of free negotiation between the parties. This claim 
had therefore to be rejected. 

(45)  The  Union  industry  further  claimed  that  the  company  to  which  IT  was  granted  was 
State-owned,  received  input  subsidies  and  had  significant  trading  activities  which 
would permit circumvention of the measures. However, the investigation revealed that 
the exporter in question was no longer State-owned during the RIP and therefore there 
was  no  State  interference  in  its  trading  activities  such  as  to  permit  circumvention  of 
the  measures.  As  far  as  input  subsidies  are  concerned,  the  claim  was  found  to  be 
unsubstantiated. These claims had therefore to be rejected.  

5. 

Comparison 

(46)  The  normal  value  and  export  prices  were  compared  on  an  ex-works  basis.  For  the 
purpose of ensuring a fair comparison between 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. 
Claimed  adjustments  were  made  in  respect  of  transport,  physical  characteristics, 
inspection costs, handling and packing where applicable and justified. An adjustment 
was also made under Article 2(10)(i) given that the related trader was found to have 
functions of an agent working on a commission basis. 

(47)  The  investigation  revealed  that  export  duties  were  levied  on  export  sales  of  silicon 
during  the  IP.  As  the  duties  had  an  effect  on  price  comparability,  it  was  considered 
appropriate to adjust the export price in accordance with Article 2(10)(k) of the basic 
Regulation for other factors affecting price comparability. 

(48) 

(49) 

EN 

It  is  noted  that  normal  value  and  export  price  were  compared  at  the  same  level  of 
indirect taxation, i.e. VAT included. 

It was claimed that the fact that the VAT paid on purchases of raw material of silicon 
was  refundable  should  be  reflected  in  the  calculation  of  the  normal  value.  However, 

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the VAT paid on such purchases was found to be deductible regardless of the export 
VAT  refund  regime  of  the  exported  goods  and  regardless  of  the  destination  of  the 
goods.  The  fact  that  the  VAT  paid  on  purchases  of  raw  material  of  silicon  was 
refundable is thus a neutral factor which has no impact on the comparability of export 
price and normal value. Therefore, this claim had to be rejected.  

(50) 

It was also claimed that the methodology used to take account of indirect taxation was 
different  from  the  one  used  in  other  cases  and  that  the  VAT  on  export  sales  should 
have been deducted from the export price. It is noted that Article 2(10)(b) of the basic 
Regulation provides that an adjustment for indirect taxation may only be made to the 
normal  value  and  in  the  circumstances  described  in  the  above-mentioned  Article, 
which are not present in the current case. The claim was therefore rejected. 

6. 

Dumping margin 

6.1. 

For the IT company 

(51)  The  dumping  margin  for  the  sole  exporting  producer  to  whom  IT  was  granted  was 
established by comparing the weighted average ex-works export prices, by PCN to the 
respective normal value of the analogue country as established above.  

(52)  The  dumping  margin  for  the  sole  exporting  producer  granted  IT,  expressed  as  a 
percentage of the CIF import price at the Union border, duty unpaid, is 16.3%. 

6.2. 

For all other exporters/producers 

(53) 

In order to calculate the countrywide dumping margin applicable to all other non co-
operating  exporters/producers  in  the  PRC,  the  level  of  cooperation  was  first 
established. The degree of cooperation was low, i.e. less than 1% of total imports from 
the  PRC.  Therefore  the  dumping  margin  for  the  non-cooperating  companies  was 
established by comparing the average import value of silicon from China as recorded 
in  Eurostat  duly  adjusted  after  excluding  sales  made  by  the  IT  company  with  the 
respective normal value of the analogue country as established above.  

(54)  One  party  claimed  that  the  level  of  cooperation  was  not  correctly  assessed  as  one 
cooperating  exporter  had  exported  significant  quantities  of  silicon  to  the  Union.  In 
those  circumstances,  it  was  claimed  that  the  information  from  this  exporter  should 
have  been  used  to  calculate  the  countrywide  dumping  margin  as  was  done  in  the 
review mentioned in recital (1) above. These claims had to be rejected on the grounds 
that the prices this company charged to its related company in the Union were found 
not to be made at arm's length. 

(55)  Alternatively,  it  was  argued  that  data  provided  by  the  cooperating  importers  should 
have been used to determine the countrywide dumping margin. As mentioned above in 
recital (54), a large part of the quantities imported by these cooperating parties were 
not  made  at  arm's  length  and  therefore  the  prices  were  considered  unreliable.  The 
remaining imports were considered insufficiently representative in terms of quantities 
as to base the countywide duty upon. This argument was therefore rejected. 

(56)  Following  the  disclosure,  comments  received  with  regard  to  the  product  mix  of  the 
normal  value  were  taken  into  account  in  establishing  the  countrywide  dumping 

EN 

12 

   EN 

 
margin.  The  comparison  was  thus  made  using  the  information  submitted  by  the 
cooperating importers as regards product types. 

(57)  On  this  basis  the  countrywide  dumping  margin  amounts  to  19.0%  of  the  CIF  Union 

frontier price, duty unpaid. 

D. LASTING NATURE OF THE CHANGED CIRCUMSTANCES AND 
LIKELIHOOD OF CONTINUATION OF DUMPING 

1. 

Lasting nature of the changed circumstances 

(58) 

(59) 

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

In order to examine whether the level of the dumping margin found during the RIP is 
of  a  lasting  nature  the  development  of  export  prices  and  normal  value  has  been 
considered. 

(60) 

It is first noted that the dumping margin found in the last review12; i.e. 12.5%, is closer 
to the level found in the current proceeding than to the existing level of measures. 

(61)  As  far  as  post  RIP  export  prices  are  concerned,  Eurostat  data  show  that  they  have 

decreased by around 15% over the first nine months of 2009. 

(62)  As far as normal value is concerned, the investigation revealed that normal value had 
decreased in similar proportions over the same period. As a consequence, the dumping 
margin for exports of silicon over the first nine months of 2009 would be of a similar 
level as the one found in the RIP. 

(63)  The  above  demonstrates  that  Chinese  export  prices  are  closer  to  world  prices  than 

when measures were originally imposed13.  

(64)  On the above basis, it was concluded that the level of dumping found during the RIP is 

of a lasting nature.  

2. 

Likelihood of continuation of dumping at the levels found in the interim review  

(65) 

In accordance with Article 11(2) of the basic Regulation, it was examined whether it 
was likely that dumping at the level found in the interim review would continue should 
measures be repealed. 

(66)  With  regard  to  the  likelihood  of  continuation  of  dumping  the  development  of 
production and production capacity was examined as well as the likely development of 
export sales to the European Union and to other third country markets. 

3. 

Production capacity, production volume and consumption in the PRC 

12 
13 

OJ L66, 4.3.2004, p. 15. 
OJ L 345, 16.12.1997, p. 1. 

EN 

13 

   EN 

 
                                                 
(67)  Total production capacity of silicon in the PRC had to be estimated. While statistics14 
provided  by  the  parties  concerned  indicated  a  total  capacity  of  2.2  million  tonnes  in 
2008,  the  investigation  revealed  that  this  figure  was  clearly  overestimated  because  it 
did  not  take  into  account  a  significant  number  of  furnace  closures  (due  to  e.g.  the 
restructuring of the silicon industry, the economic crisis and the earthquake in Sichuan 
province  in  2008)  and  also  did  not  take  into  account  the  unstable  energy  supply  in 
some  regions  leading  factually  to  a  lower  capacity  than  the  one  recorded  in  the 
available statistics. After appropriate adjustments, the actual production capacity was 
therefore estimated to be around 1.5 million tonnes which corresponded to an increase 
of at least 25% in comparison to the capacity in 2002 (the investigation period of the 
previous expiry review mentioned in recital (1) above) where it was estimated between 
600 000 tonnes and 1.2 million tonnes15. 

(68)  EUSMET  claimed  that  it  had  submitted  a  detailed  calculation  of  the  production 
capacity  in  China  using  an  operating  rate  of  40%.  Its  capacity  estimate  amounted  to 
1.16  million  tonnes.  This  claim  was  however  found  to  be  unsubstantiated  since  in 
particular  no  supporting  document  was  provided  concerning  the  operating  rate  used. 
The operating rate used by the Commission stems from verified data provided by the 
main cooperating producers in the PRC and was therefore considered the most reliable 
information available in this respect. This claim had therefore to be rejected.  

(69)  The same party also argued that furnaces equal to or below a certain capacity threshold 
would  be  shut  down  as  a  result  of  a  government  decision  which  would  reduce  even 
further  the  total  capacity  in  China.  However,  the  investigation  revealed  that  the 
government policy in question did not apply to the whole of China. EUSMET did not 
provide  any  evidence  showing  the  number  of  furnaces  concerned  and  the  impact  on 
the  total  capacity.  The  investigation  also  did  not  bring  to  light  any  significant 
reduction of capacity on this basis. Therefore, this claim had to be rejected.  

(70)  EUSMET  further  alleged  that  production  capacity  would  be  close  to  the  PRC  sales 
volume  in  2008;  i.e.  960 000  tonnes  without,  however,  substantiating  this  statement 
with any evidence. In addition, various factors had an impact on sales volume (such as 
production  for  stock,  supply  of  raw  materials  and  logistical  problems  due  to  the 
Olympic  Games)  and  therefore  it  was  considered  that  sales  volume  cannot  be 
considered to be equal to the production capacity. This argument had therefore to be 
rejected. 

(71)  As  far  as  production  volume  of  silicon  is  concerned,  on  the  basis  of  the  information 
available, the investigation revealed that production volume increased significantly by 
79% from 535 000 tonnes in 2002 to 960 000 tonnes in the RIP. Spare capacities were 
therefore  conservatively  estimated  to  be  around  540 000  tonnes  in  the  RIP  which  is 
close  to  the  total  EU  consumption  during  the  RIP  and  which  represented  almost 
double  the  Chinese  domestic  consumption  of  silicon  during  the  same  period  (see 
recital (72) below). 

(72)  The  investigation  revealed  at  the  same  time  that  the  Chinese  consumption,  which 
represented around 280 000 tonnes in the RIP, is likely to increase in the coming years 

14 
15 

CRU March 2009. 
OJ L 66, 4.3.2004, p. 15. 

EN 

14 

   EN 

 
                                                 
as  indicated  below  in  recital  (73).  The  increase  in  consumption  has  to  be  seen  as  a 
combination of factors and policy measures in the silicon industry and its downstream 
industry.  The  downstream  industry  in  the  PRC  is  growing  and  several  investments 
have  been  made  and  are  planned  in  the  near  future  to  satisfy  the  growing  need  for 
downstream  products.  In  addition,  the  Chinese  authorities  have  introduced  import 
restrictions for several sources (e.g. Germany, United Kingdom, Japan and USA) with 
regard  to  an  important  downstream  product  (siloxane)  which  was  sourced  in 
significant quantities from these countries. 

(73)  While it is difficult to estimate the precise impact of the policy measures including the 
restructuring of the silicon industry, several interested parties indicated that demand in 
the  PRC  would  reach  around  580 000  tonnes  by  the  end  of  2011.  This  estimate  was 
considered to be reasonable. 

(74)  Nevertheless,  even  if  considering  the  above  mentioned  forecast  of  the  domestic 
demand and even if Chinese exports to other markets would reach their high levels of 
2008 (see recital (79) below) overcapacity would still be significant (around 240 000 
tonnes in 2011). It is also noted that given the ongoing restructuring process not only 
demand is likely to increase in the PRC but also production capacities and volumes.  

(75) 

(76) 

In regard to the likely increase in production capacity in the PRC, EUSMET provided 
information on several planned silicon production plants and alleged that most of these 
plants will not materialize. Their allegation was merely based on comments provided 
by its members and was not substantiated. It also claimed that if Chinese production 
capacity is likely to increase, it would be mainly on account of a project planned by 
one Union producer that would add 100 000 MT/year to the production capacity of the 
PRC. The information provided by EUSMET was not  substantiated and therefore its 
claim was rejected.  

In this regard EUSMET claimed that Chinese domestic consumption had far outpaced 
the increase in production and would continue to increase. Therefore, the production 
volume  in  the  PRC  cannot  meet  adequately  the  demand  on  the  Chinese  domestic 
market.  As  stated  above,  it  is  undisputed  that  Chinese  domestic  demand  is  likely  to 
increase  in  the  future.  However,  as  also  outlined  above,  the  findings  of  the 
investigation  did  not  confirm  the  allegations  made  by  EUSMET.  EUSMET  neither 
quantified the increase in demand nor the future production volumes in China nor did 
it  provide  any  other  information  or  evidence  in  support  of  its  claim  which  had 
therefore to be disregarded.  

4. 

Volume  and  price  of  imports  from  the  PRC  to  the  EU  and  other  third  country 
markets 

(77)  During  the period  considered, Chinese exports  to the EU increased by 113%  despite 
the measures in force. As far as prices are concerned and despite an increasing trend 
during  the  RIP,  they  were,  throughout  the  period  considered,  below  the  Union 
industry's  sales  prices  in  the  EU.  As  indicated  in  recital  (54)  and  (62)  silicon  export 
prices  to  the  EU  were  also  at  significantly  dumped  levels  both  during  and  after  the 
RIP.  

(78)  The price level in the EU was still at higher levels than in other third country markets. 
This  explains  partly  the  high  interest  of  the  Chinese  exporters  in  the  Union  market 

EN 

15 

   EN 

 
despite  the  anti-dumping  measures  in  force.  In  this  context,  it  is  also  noted  that 
Chinese  exporters  were  circumventing  the  anti-dumping  measures  in  force  by 
transhipment via the Republic of Korea16 which further reinforces the conclusion that 
the Chinese exporters have a high interest in the Union market. 

5. 

Volume and prices of Chinese exports to third countries 

(79)  Chinese exports to other third country markets were significant in volume, exceeding 
the volumes exported to the European Union. However, it should also be noted that the 
FOB  prices  to  third  countries  were  on  average  between  4%  and  14%  lower  than  the 
export price to the EU in 2008 and the first nine months of 200917 respectively. 

(80)  EUSMET  claimed  that  the  Commission’s  finding  of  higher  average  Chinese  export 
prices  to  the  Union  did  not  take  account  of  the  product  mix  in  other  markets.  It  is 
noted that EUSMET did not submit any evidence in support of this claim. It did not 
provide any information or explanation to  what  extent  the  product  mix  of  exports  to 
other  third  counties  would  indeed  be  different.  The  evidence  provided  concerning 
price differences between product types related furthermore to the EU market only and 
to a period largely before the RIP, i.e. 2001/02. Therefore, it could not be considered 
as  a  sufficiently  accurate  basis  to  determine  price  differences  between  product  types 
during and after the RIP. In any event, the information available relating to the RIP did 
not alter the conclusions in recital (79) above. This claim was therefore rejected. 

(81)  With  the  exception  of  the  USA,  which  is  protected  by  high  anti-dumping  duties 
(139.49%) against silicon originating in the PRC, Chinese exports had free access to 
other major third country markets.  

(82)  EUSMET submitted that the Asian market would be the main destination for Chinese 
silicon and that the growth in the Japanese and Korean markets would be significant. It 
is not contested that Asia is the main destination for Chinese silicon. However, even 
though  consumption  may  increase  in  the  coming  years  in  the  Japanese  and  South 
Korean markets, this consumption increase is not expected to be such as to be able to 
absorb the significant Chinese overcapacities. In addition, the investigation has shown 
that the Japanese market, which is the main export market for China, is saturated with 
Chinese silicon. 

(83)  EUSMET  alleged  that,  if  measures  were  allowed  to  lapse,  supply  patterns  for  the 
chemical users would not be affected. However, the investigation did not confirm this 
allegation since various users (chemical and aluminium applications) stated that they 
would indeed source increased quantities from China would the measures be allowed 
to lapse. Therefore, this argument was rejected.  

(84)  Considering the above, it is expected that Chinese spare capacities will be shipped to 

the Union market should measures be allowed to lapse. 

(85)  Given  that  imports  into  the  EU  during  the  RIP  were  dumped,  it  is  very  likely  that 
dumping will also continue should the measures be allowed to lapse. This is borne out 
by the development after the RIP where imports of silicon from the PRC continued to 
be at price levels below the ones during the RIP (see recital (131) below).  

16 
17 

OJ L 13, 19.1.2007, p. 1. 
Source: Chinese export statistics. 

EN 

16 

   EN 

 
                                                 
6. 

Conclusion 

(86)  The  investigation  showed  that  export  volumes  of  the  product  concerned  to  the  EU 
increased significantly over the period considered and that the level of dumping found 
for these imports was significant in the RIP.  

(87) 

In  view  of  the  spare  capacities  available  in  the  PRC  during  the  RIP  and  despite  the 
increasing domestic demand, there is a strong likelihood that large quantities of silicon 
will  be  exported  to  the  EU  at  dumped  prices  should  measures  be  allowed  to  lapse. 
Indeed,  domestic  demand  in  the  PRC  will  not  be  able  to  absorb  the  spare  capacities 
and  the  EU  market  is  the  only  significant  market  where  overcapacities  could  be 
exported.  The  EU  market  is  indeed  an  attractive  market  for  Chinese  exports  since 
prices  charged  to  EU  customers  are  on  average  higher  than  those  charged  to  third 
country  customers.  The  interest  of  Chinese  exporters  in  the  EU  market  is  also 
confirmed by circumvention practices in the past.  

(88) 

It is therefore concluded that there is a likelihood of continuation of dumping.  

E. DEFINITION OF THE UNION INDUSTRY 

(89)  The  three  complainant  Union  producers  replied  to  the  questionnaires  and  cooperated 
fully  in  the  investigation.  The  complainants'  production  constitutes  the  total  Union 
production within the meaning of Article 4(1) of the basic Regulation.  

F. SITUATION OF THE UNION MARKET 

1. 

Preliminary remark  

(90)  Specific  data  relating  to  the  Union  industry  and  consumption  had  to  be  indexed,  in 
accordance with Article 19 of the basic Regulation, as the Union industry comprises 
only three producers, two of which belong to the same group. Eurostat data had to be 
adjusted to take account of the data for which confidential treatment was requested by 
Member  States  regarding  their  imports  of  silicon,  and  for  this  reason  also  had  to  be 
indexed. 

2. 

Union consumption 

Table 1: Union consumption (based on sales volume)  

Index 

Y/Y trend 

2005

100 

2006

115 

15% 

2007 

118 

3% 

RIP 

121 

3% 

Source: Verified questionnaire replies of the Union industry and adjusted Eurostat statistics 

(91)  Union consumption was based on the combined volume of sales by the Union industry 
in  the  Union  and  the  volume  of  imports  from  third  countries,  based  on  adjusted 
Eurostat data. 

EN 

17 

   EN 

 
 
 
(92)  On  this  basis  and  as  shown  in  Table  1  above,  Union  consumption  increased 

significantly during the period considered, i.e. by 21%. 

3. 

Volume, market share and prices of imports from the PRC 

Table 2: Imports from the PRC in volume, market share and import price 

Indices 

Imports volume  

Market share  

CIF Import price Eur/tonnes 

Source: Adjusted Eurostat statistics 

2005 

2006 

2007 

RIP 

100

100

100

183

159

106

168 

143 

120 

213

176

188

(93)  During  the  period  considered  the  import  volumes  from  the  PRC  increased  by  113% 
while the consumption in the Union increased by 21%. The figures include imports of 
silicon from the Republic of Korea, as in 2007 measures were extended to that country 
following  an  anti-circumvention  proceeding.  Despite  the  anti-dumping  measures  in 
place the Chinese market share increased by seventy six percentage points during the 
period considered and it is well above the 3.9% market share held in 2002, the RIP of 
the  previous  investigation.  However,  the  vast  majority,  i.e.  around  90%  of  the 
quantities imported from the PRC, were placed under the Inward Processing Regime 
with suspended payment of duties.  

(94)  Average  import  prices  from  the  PRC  increased  by  88%  over  the  period  considered. 

However the higher increase in prices occurred between 2007 and the RIP. 

(95)  The  Union  industry's  average  ex-works  price  was  compared  with  the  Chinese  CIF 
average import prices at the Union frontier. These prices were derived from adjusted 
Eurostat  figures  and  included  post-importation  costs,  customs  and  anti-dumping 
duties. The comparison showed that Chinese import prices did not undercut the Union 
industry's sales price during the RIP. The Chinese average import prices included also 
the  sales  of  Chinese  silicon  destined  for  Inward  Processing.  It  should  be  noted  that 
prices of silicon destined for Inward Processing, which represented the vast majority 
of  Chinese  imports,  were  found,  on  average,  to  be  15%  higher  during  the  RIP  than 
prices of silicon for free circulation.  

(96)  Based on the above it was found that if measures had not been in place Chinese import 
prices  for  quantities  destined  for  free  circulation  would  have  undercut  those  of  the 
Union industry by 12%. 

4. 

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

Table 3: Imports from other third countries (volume) 

Indices 

Norway 

2005 

2006 

2007 

RIP 

100

114

100 

113

EN 

18 

   EN 

 
Brazil 

Russia  

Bosnia Herzegovina  

Other third countries  

Total 

Market share  

Source: Eurostat 

100

100

100

100

100

100

113

39

202

110

112

97

123 

114 

165 

101 

112 

95 

93

116

174

118

110

91

Table 4: Imports from other third countries (average prices) 

Indices 

Norway  

Brazil 

Russia  

Bosnia Herzegovina  

Other third countries 

Total 

Source: Eurostat 

2005 

2006 

2007 

RIP 

100

100

100

100

100

100

93

98

130

102

112

100

101 

108 

116 

116 

116 

108 

128

149

170

163

119

145

(97)  Whilst the total import volumes of silicon from third countries other than the PRC and 
the  Republic  of  Korea  increased  by  10%  during  the  period  considered,  the  market 
share of these imports fell by nine percentage points in the RIP. The major exporters to 
the  Union  were  Brazil,  Norway  and  Russia,  while  Bosnia  Herzegovina  was  a  new 
source of supply. 

(98)  Prices of imports from these countries increased by 45% over the period considered. 
They  were  on  average  15%  above  the  Chinese  prices  except  in  the  RIP  when  they 
were 5% lower.  

5. 

Economic situation of the Union industry 

5.1. 

Production, production capacity and capacity utilisation 

Table 5: Union production, production capacity and capacity utilisation 

Index 

Production 

2005 

100 

2006 

94 

2007 

108 

RIP 

107 

EN 

19 

   EN 

 
Y/Y trend 

Production 
capacity 

Y/Y trend 

Capacity 
utilisation 

Y/Y trend 

100 

100 

-6% 

14% 

102 

2% 

92 

-8% 

112 

11% 

96 

3% 

0% 

114 

2% 

94 

-2% 

Source: Verified questionnaire replies of the Union industry 

(99)  The Union industry’s production increased by  7%  during the period considered. The 
production  capacity  of  the  Union  industry  showed  an  overall  increase  of  14%  in  the 
period  considered  as  a  result  of  investments.  However  capacity  utilisation  decreased 
by  6%  during  the  period  considered.  This  development  has  to  be  seen  against  the 
background of the significant increase in Union consumption by 21% during the same 
period. 

5.2. 

Inventories 

Table 6: Inventories 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100

91

-9%

82 

-9% 

82

0%

Source: Verified questionnaire replies of the Union industry 

(100)  Stocks decreased by 18% during the period considered. This was due to high demand, 
in particular during 2007 and the RIP which were exceptionally favourable periods in 
the  economic  cycle.  Stocks  in  2005  represented  around  27%  of  the  Union  industry's 
EU sales volume while they fell to 19% of EU sales volume during the RIP.  

5.3. 

Sales, market share and prices  

Table 7: Sales volumes and values 

2005 

2006 

2007 

Sales in volume (index) 

100 

Y/Y trend 

Sales in value (index) 

100 

Y/Y trend 

103 

3% 

105 

5% 

116 

13% 

132 

27% 

RIP 

118 

2% 

178 

45% 

EN 

20 

   EN 

 
 
 
 
 
 
 
 
 
Source: verified questionnaire replies of the Union industry 

Table 8: Union industry’s market share 

Index 

Y/Y trend 

2005 

100 

2006 

89 

-11% 

2007 

98 

9% 

RIP 

98 

-1% 

Source: Verified questionnaire replies of the Union industry, adjusted Eurostat statistics 

Table 9: Union industry unit sales prices 

Index 

Y/Y trend 

2005 

100 

2006 

2007 

102 

2% 

114 

12% 

RIP 

150 

37% 

Source: Verified questionnaire replies of the Union industry 

(101)  The Union industry sales volume increased by 18% during the period considered. At 
the same time, sales value increased by 78%, with major increases occurring in 2007 
and the RIP, as a result of the increased demand on the silicon market. However, the 
market share of the Union industry decreased by two percentage points in the RIP. The 
decrease  in  the  Union  industry's  market  share  as  well  as  the  decrease  in  its  capacity 
utilisation over the period considered as mentioned in recital (99) above showed that 
the  Union  industry  did  not  manage  to  fully  take  advantage  of  the  increased  demand 
and consumption in the silicon market, in terms of market share in particular.  

(102)  Unit selling prices of the Union industry increased substantially in 2007 and in the RIP 
as during these two years there was a strong demand in the silicon market which led to 
exceptionally  high  prices.  Over  the  period  considered  average  prices  of  the  Union 
industry increased by 50%. The substantial increase in selling prices combined with a 
lower  increase  in  costs  of  production  played  a  major  role  in  the  significant 
improvement of the financial situation of the Union industry. 

5.4. 

Factors affecting Union prices 

(103)  The  high  demand  throughout  the  period  considered  led  to  a  significant  increase  in 
prices.  Price  levels  of  imports  from  third  countries,  including  the  PRC,  followed  the 
same increasing trend as the Union industry's prices.  

(104)  During the period considered average unit costs of production increased by 21% while 

the corresponding increase in the average unit selling price was 50%.  

5.5.  Employment, productivity and wages 

Table 10: Employment 

2005 

2006 

2007 

RIP 

EN 

21 

   EN 

 
 
 
 
 
 
Index 

Y/Y trend 

100 

93 

-7%

91 

-2% 

100 

9%

Source: Verified questionnaire replies of the Union industry 

Table 11: Productivity 

Index 

Y/Y trend 

2005 

100 

2006 

101 

2007 

119 

1%

18% 

Source: Verified questionnaire replies of the Union industry 

Table 12: Wages (EUR/employee) 

Index 

Y/Y trend 

2005 

100 

- 

2006 

94 

-6%

2007 

107 

13% 

Source: Verified questionnaire replies of the Union industry 

RIP 

108 

-11%

RIP 

117 

10%

(105)  Employment  remained  stable  overall  during  the  period  considered,  while  average 
wages  increased  by  17%.  Productivity  increased  by  8%  during  the  same  period  as  a 
result of the increase in production volume. 

5.6. 

Profitability 

Table 13: Profitability 

2005 

2006 

2007 

RIP 

Index 

100

Y/Y trend 

- 

161

61%

389 

228% 

671

282%

Source: Verified questionnaire replies of the Union industry 

(106)  The profitability of the Union industry increased almost six fold from 2005 to the RIP 
reaching  a  high  level  during  the  RIP.  These  increased  profits  in  2007  and  the  RIP 
resulted from increased selling prices due to a strong demand in the silicon market as a 
result  of  the  prevailing,  exceptionally  favourable,  economic  conditions.  This  was 
despite a 21% increase in the costs of production over the period.  

5.7. 

Investments, return on investments and ability to raise capital 

Table 14: Investments and return on investments 

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Index 

Y/Y trend 

ROI 

2005 

100 

7% 

2006 

135 

35% 

14% 

2007 

310 

174% 

47% 

RIP 

717 

408% 

96% 

Source: Verified questionnaire replies of the Union industry 

(107)  Investments  increased  significantly  during  the  period  considered,  i.e.  by  six  times, 
corresponding  to  around  30%  of  the  profits  obtained.  The  Union  industry 
demonstrated its commitment to the Union silicon market as the investments related to 
increases  in  production  capacity,  either  by  installing  new  machinery  or  by  the 
upgrading  of  existing  machinery.  Additionally,  they  invested  in  the  metallurgical 
process  of  the  high  purity  silicon  for  use  in  the  solar  energy  industries.  This  new 
product has very good prospects in the future.  

(108)  The investigation also showed that the return on investments, i.e. pre-tax net profit of 
the product expressed as a percentage of the net book value of fixed assets allocated to 
the product, increased notably during the period considered. The investigation did not 
bring to light any evidence that the Union industry had any major problems in raising 
capital. 

5.8.  Cash flow 

Table 15: Cash flow 

2005 

2006 

2007 

RIP 

Index 

Y/Y trend 

100

114

14%

348 

233% 

672

325%

Source: Verified questionnaire replies of the Union industry 

(109)  Cash  flow  followed  a  similar  positive  trend  to  profitability,  increasing  significantly 

during the period considered. 

5.9.  Growth 

(110)  During  the  period  considered  the  Union  industry  did  not  manage  to  fully  take 
advantage  of  the  significant  growth  in  consumption  while  producing  at  80%  of  its 
capacity  and  lost  two  percentage  points  of  its  market  share.  Despite  the  measures  in 
force, the Chinese imports mainly took over the increase in consumption with the vast 
quantities placed under the Inward Processing Regime.  

5.10.  Magnitude of the dumping margin 

(111)  During the RIP, despite the measures in force substantial dumping continued albeit at 
lower levels than those established in the original investigation, based both on the data 

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obtained from the sole cooperating exporting producer granted IT and the calculations 
based on facts available. 

5.11.  Recovery from the effects of past dumping 

(112)  The  Union  industry,  in  a  positive  economic  context,  managed  to  recover  from  past 
dumping,  in  particular  in  terms  of  sales  volume,  sales  prices  and  profitability.  It  is 
recalled, however that dumping margins remained significant.  

5.12.  Export activity of the Union industry 

Table 16: Export volume of the Union industry 

2005 

2006 

2007 

RIP 

Index 

100

Y/Y trend 

- 

72

-28%

168 

96% 

27

-141%

Source: Verified questionnaire replies of the Union industry 

(113)  Union  industry  exports  of  silicon  fell  by  more  than  half  over  the  period  considered, 
mainly  in  the  RIP.  Whilst  in  comparative  terms  this  fall  might  appear  dramatic,  in 
absolute terms it is less significant, as the Union industry is not export oriented. The 
Union  producers  are  strongly  committed  to  the  Union  market.  It  should  be  noted, 
however, that some of the Union producers have related companies outside the Union 
producing and selling for these markets, thus decreasing the need for export from the 
Union.  

5.13.  Conclusion on the situation of the Union industry 

(114)  The anti-dumping measures had a clear positive impact on the situation of the Union 
industry. During the period considered, all main injury indicators, such as production, 
productivity,  stocks,  sales  volume,  sales  prices,  investments,  profitability  and  cash 
flow, showed positive developments. The profit achieved in the RIP reflects the fact 
that this was during an exceptionally favourable period in the economic cycle. 

(115)  As  far  as  the  market  share  of  the  Union  industry  is  concerned,  the  slight  decreasing 
trend  could  be  considered  as  pointing  to  injury  in  the  sense  that,  despite  available 
production  capacity,  the  Union  industry  did  not  manage  to  take  advantage  of  the 
increased consumption.  

(116)  In conclusion, in view of the positive development of the indicators pertaining to the 
Union industry, it is considered that the Union industry did not suffer material injury 
during the period concerned. It was therefore examined whether there was a likelihood 
of recurrence of injury should measures be allowed to lapse. 

G. LIKELIHOOD OF RECURRENCE OF INJURY 

1. 

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

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(117)  It  is  recalled  that  despite  the  measures  in  force,  Chinese  imports  increased 
substantially and took over the major part of the market share lost by the imports from 
third countries. The exporting producers in the PRC continued to dump at significant 
levels. Based on this, there is no reason to believe that the Chinese will not continue to 
dump. In addition, during the RIP, if measures had not been in place Chinese import 
prices  for  quantities  destined  for  free  circulation  would  have  undercut  those  of  the 
Union industry by 12%.  

(118)  It is also noted that in 2007, following an anti-circumvention proceeding, the measures 
were  extended  to  imports  of  silicon  consigned  from  the  Republic  of  Korea,  whether 
declared as originating in the Republic of Korea or not. The extension of measures had 
a positive effect as imports of silicon from the Republic of Korea fell sharply. 

(119)  The investigation showed that the Chinese producers had significant spare capacities 
during the RIP i.e. around 540 000 tonnes. Despite the expected increase in demand in 
the PRC overcapacity is, as explained in recital (74), expected to persist in the coming 
years. 

(120)  As mentioned earlier, the Union market is a major outlet for the PRC, since the other 
major  export  market,  the  USA,  has  high  anti-dumping  measures  in  place  against  the 
PRC which is therefore practically inaccessible to Chinese exports.  

(121)  Chinese import prices were found to be lower than the third country import prices by 
15%  on  average  and  only  in  the  RIP  were  higher  by  5%.  In  view  of  the  Chinese 
exporting  producers'  interest  for  the  Union  market,  it  is  expected,  if  measures  were 
repealed,  that  a  huge  volume  of  exports  at  prices  below  those  of  the  third  countries 
would  be  directed  to  the  Union  market,  with  a  strong  overall  depressing  effect  on 
prices. 

(122)  EUSMET claimed that the 56% market share held by third country imports compared 
to the relatively low market share held by the Chinese imports would have had a more 
decisive  impact  on  Union  producers'  market  share  in  the  RIP  particularly  since  the 
third  country  imports  were  5%  lower  priced  than  the  Chinese.  In  this  regard,  it  was 
found that, despite the prices of third country imports being 5% lower in the RIP than 
those  of  imports  from  the  PRC,  the  market  share  of  the  former  imports  fell  by  4% 
between  2007  and  the  RIP  compared  to  a  gain  in  market  share  of  imports  from  the 
PRC of 34% (see Tables 2 and 3 above). Over the same period, the market share of the 
Union  industry  was  stable.  In  these  circumstances,  it  cannot  be  concluded  that  third 
country imports had a decisive impact on the market share of the Union industry in the 
RIP.  

(123)  It was claimed that the Commission did not take into consideration the likely increase 
of the cost of production, based namely on higher electricity cost, shortage of power 
supply, increased investment cost, high inflation, increase in raw  material prices  and 
international transportation costs, when evaluating the likely development of Chinese 
export  prices.  Even  if  electricity  costs  would  increase  in  China  this  is  not  the  sole 
significant  cost  element.  Furthermore,  no  indication  was  provided  concerning  the 
extent  of  such  increase  and  its  precise  impact  on  the  total  cost  and  resulting  sales 
prices. As far as the other elements are concerned, they are either purely speculative 
and/or  were  not  sufficiently  substantiated  or  quantified  as  to  draw  any  meaningful 
conclusions thereon. It should also be noted that it is erroneous to assume that export 

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prices are necessarily based on the level of the cost of production, since various other 
factors  may  also  have  an  impact  on  the  price  level  such  as  government  policies  or 
questions of supply and demand.  

(124)  It was also found that in third country markets where anti-dumping duties are not in 
force,  Chinese  export  prices  during  the  RIP  were  at  levels  lower  than  those  to  the 
Union. 

(125)  It was therefore concluded that there was a continuation of dumping and a likelihood 
of an increased volume of dumped imports exerting a downward pressure on prices in 
the Union, at least in the short term, if measures were repealed. Based on the above, 
there  is  no  reason  to  believe  that  PRC  prices  will  increase.  Consequently,  there  is  a 
likelihood of recurrence of injury as this would negatively affect the Union industry's 
profitability as well as its financial recovery observed during the RIP. 

2. 

Impact  of  the  dumped  imports  on  the  Union  industry  –  indications  and  likely 
development during the post RIP period 

(126)  During a period of increasing consumption, the market share of the Union industry and 
the market share of imports from third countries decreased, while the market share of 
the  Chinese  imports  increased  significantly.  In  view  of  these  mixed  indicators  (i.e. 
overall recovery by the Union industry, but loss of market share) and the fact that the 
RIP  was  an  exceptionally  favourable  period  in  the  economic  cycle,  the  post-RIP 
developments were examined in order to get a clearer picture of likely future trends. It 
should also be recalled that the likelihood of recurrence of injury caused by downward 
pressure  on  prices  may  also  be  accentuated  by  the  evolution  of  the  global  economy 
and its effects on demand and consumption. 

(127)  Based on adjusted Eurostat data and the information provided by the Union industry 
on  the  development  of  sales  volumes  and  prices  in  the  Union  for  the  period  from 
January 2009 to September 2009, a clear and continuous downward trend in the Union 
industry's  sales  volume  on  the  Union  market  could  be  observed.  Sales  volume 
amounted  to  52%  of  the  quantity  sold  in  the  corresponding  nine  months  of  2008 
although average selling prices remained at the same level as in 2008 due to long-term 
contracts and production cuts. 

(128)  As  far  as  the  Union  industry's  profitability  was  concerned  the  negative  development 
was  significant.  Profit  levels  shrank  continuously  and  fell  to  low  levels  and  even 
below the 6.5% target profit set during the original investigation.  

(129)  It  is  noted  that  due  to  the  global  economic  crisis,  demand  in  the  Union  decreased 
significantly.  This  had  a  negative  impact  on  sales  volumes  and  profitability  on  the 
Union  market.  The  financial  position  of  the  Union  industry  deteriorated,  making  the 
Union industry more vulnerable. Under these circumstances the Union industry would 
not  be  in  a  position  to  overcome  the  negative  impact  of  increased  dumped  imports 
from the PRC. This situation is likely to deteriorate further due to the pressure of such 
imports. 

(130)  Chinese imports decreased both in terms of volumes and prices with the former being 
more  substantial.  In  terms  of  prices  Chinese  imports  prices  decreased  more  than  the 
Union industry prices (8% over 2% respectively). No undercutting or underselling was 

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found  for  the  post  RIP  period.  However,  if  measures  had  not  been  in  place  Chinese 
import prices would have undercut those of the Union industry by 3% and there would 
have  been  an  underselling  of  11%.  In  addition,  it  was  found  that  if  measures  were 
lifted,  import  prices  for  quantities  destined  for  the  free  market  would  have  undercut 
those of the Union industry by 22% and the underselling would have been up to 38%. 

(131)  It was also found that Chinese export prices in third country markets not protected by 
anti-dumping duties were at much lower levels than those to the Union compared with 
those  found  during  the  RIP,  as  mentioned  in  recital  (123)  above.  This  shows  that  in 
times of economic downturn the downward pressure on prices increases. 

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

3. 

Conclusions on the likelihood of recurrence of injury 

(133)  It  is  considered  that  if  measures  were  repealed,  there  would  be  a  likelihood  of  a 
significant  increase  in  dumped  imports  from  the  PRC  to  the  Union,  with  downward 
pressure  on  prices.  Such  a  situation  would  not  only  endanger  the  substantial 
investments  made  by  the  Union  industry  to  develop  and  upgrade  its  production  but 
also the development of a new production for solar silicon which is a future market. 
Furthermore,  the  likelihood  of  the  recurrence  of  injury  is  magnified  by  the  recent 
economic downturn. 

1. 

Preliminary remark 

H. UNION INTEREST 

(134)  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 
Union as a whole. The determination of Union interest was based on an appreciation 
of the various interests involved, i.e. those of the Union industry, importers/traders and 
users of the product concerned. 

(135)  It is recalled that in the previous reviews the adoption of measures was not considered 
to be against the Union interest. Furthermore, as the present investigation is an expiry 
review,  it  requires  analysis  of  a  situation  in  which  anti-dumping  measures  have 
already been in place and the assessment of any undue negative impact on the parties 
concerned by the current anti-dumping measures. 

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

2. 

Interests of the Union industry 

(137)  It is recalled that the high profit margins achieved in 2007 and the RIP were the result 
of  the  increase  in  selling  prices.  This  factor  was  not  expected  to  continue  in  the 
coming years.  

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(138)  The Union industry has proven to be a viable and competitive industry, able to adapt 
to  the  changing  conditions  of  the  market.  This  was  confirmed  in  particular  by  the 
positive development of all main injury indicators during the period considered. The 
continuation of measures since the last expiry review had contributed to the restoration 
of the financial situation of the Union industry and in particular of the price levels on 
the Union market.  

(139)  During the period considered the Union industry demonstrated its commitment to the 
Union  silicon  market  and  improved  its  efficiency  significantly.  The  Union  industry 
made substantial investments in increasing not only its production capacity but also in 
developing research and technology in the metallurgical process for the production of 
high purity silicon for the solar energy industries.  

(140)  The  solar  silicon  market  is  a  new  market  with  excellent  future  prospects  due  to  the 
expected increase in the use of solar energy in the coming years. It is therefore vital for 
the Union industry to participate in this new market. In this respect, two of the Union 
producers  have  plans  to  construct  two  new  plants  for  solar  silicon  in  the  Union  to 
cover part of the Union market's needs. It should be noted that the investments made in 
this  new  niche  market  are  highly  dependent  on  the  existence  of  the  traditional 
production of silicon in the EU which is the main raw material used in the production 
of solar silicon.  

(141)  Moreover,  one  of  the  Union  producers  has  announced  its  plans  to  invest  in  new 
facilities in the PRC to cover the expected increased needs of the Chinese market for 
both traditional silicon and solar silicon. 

(142)  As mentioned above, if measures were allowed to lapse the risk of recurrence of injury 
is very likely and would endanger the recent investments made by the Union industry. 
It is therefore in the interests of the Union industry that measures against the dumped 
imports from the PRC be maintained.  

3. 

Interests of unrelated importers/traders 

(143)  The Commission sent questionnaires to all known unrelated importers/traders. Replies 
were  received  from  two  unrelated  importers  which  were  also  users  of  the  product 
concerned. These companies' comments are dealt with under the section on interests of 
users  below.  One  importer/trader  made  itself  known  but  did  not  reply  to  the 
questionnaire. 

(144)  In  view  of  the  fact  that,  aside  from  sourcing  from  the  PRC,  the  importers  also  have 
access to a supply of silicon from both Union producers and third country sources free 
of anti-dumping duties, such as Norway and Brazil, which have more than 56% of the 
Union market share, it is considered that competition on the Union market is ensured. 

(145)  On  the  basis  of  the  above  and  given  the  lack  of  co-operation  by  any  trader  or  any 
indication to the contrary, it was concluded that the current measures in force had no 
substantial negative effect on their financial situation and that the continuation of the 
measures would not affect the importers.  

4. 

Interests of users 

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(146)  It is recalled that EUSMET, an association of users in the chemical sector, lodged the 
current interim review limited to dumping. The Commission sent questionnaires to all 
known  unrelated  users  and  their  associations.  Twelve  users  co-operated  in  the 
investigation, some of them being the main importers of Chinese silicon placed under 
the Inward Processing Regime. Additionally one other user association co-operated by 
submitting comments. 

(147)  The  main  industrial  users  of  silicon  in  the  Union  are  the  chemical  and  aluminium 
industries which represent 60% and 40% of Union consumption respectively.  

(148)  For the chemical industry silicon is the main raw material for the production of both 
silicones  used  in  a  plethora  of  applications,  in  particular  in  the  automotive  and 
construction  industries  and  polysilicon  used  in  the  electronics  and  solar  energy 
industries. The proportion of silicon in the cost of production of the various types of 
silicones and polysilicon varied from 2 to 35% depending on the production process of 
each  type  of  downstream  product.  On  average,  however,  the  proportion  of  silicon  in 
the  total  cost  of  production  of  silicones  ranged  between  11  and  21%  while  for 
polysilicons  it  ranged  between  2  and  10%.  With  an  anti-dumping  duty  of  19%,  the 
impact on the cost of production of those chemical users that source all of their silicon 
from  the  PRC  is  estimated  to  be  between  2  and  4%.  For  other  chemical  users  the 
impact will be lower.  

(149)  Some  of  the  chemical  companies  co-operating  in  the  investigation  were  the  major 
importers of Chinese silicon placed under the Inward Processing Regime and thus free 
of anti-dumping duties. However, they argued that they could not absorb the duty or 
pass it  on to their  customers  and that the Inward Processing Regime did not remove 
the burden created by the measures in force as they had to devote significant resources 
in  burdensome  customs  and  other  administrative  procedures.  Moreover,  they 
considered that they were driven to invest in new facilities in the PRC in order to be 
close to the source of cheap raw materials and become more competitive on the Asian 
market.  

(150)  For the aluminium industry silicon is also an important raw material for the production 
of  casting  alloys  by  the  aluminium  refiners.  These  alloys  are  used  mainly  by  the 
automotive  and  construction  industries.  The  proportion  of  silicon  in  their  cost  of 
production varied from 8 to 10% depending on the quality of scrap they used which 
already  contained  silicon.  Most  of  the  aluminium  refiners  co-operating  in  the 
investigation purchased silicon from other third countries not subject to anti-dumping 
duties due to the fact that their products are destined mainly for the Union market and 
they  cannot,  therefore,  make  use  of  the  Inward  Processing  Regime.  With  an  anti-
dumping  duty  of  19%,  the  impact  on  the  cost  of  production  of  the  aluminium  users 
that  source  all  their  silicon  from  the  PRC  is  estimated  to  be  around  2%.  For  other 
aluminium  users  the  impact  will  be  lower.  The  investigation  showed  that  aluminium 
refiners'  profitability  was  not  particularly  high  and  thus,  increases  in  silicon  prices 
have a negative impact on their profits due to their limited margin. 

(151)  The  chemical  industry  had  around  14 000  employees  and  the  aluminium  industry 
6 000.  During  the  period  considered  employment  in  the  chemical  industry  increased 
by 8% while in the aluminium industry it remained stable.  

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(152)  All users strongly opposed the continuation of measures on the grounds that measures 
had been in force for too long, that they artificially increased the price levels of silicon 
in the Union market irrespective of origin and that the Union industry had not suffered 
injury during the RIP. However, in view of the extremely high market share held by 
the Chinese  exporters for silicon destined for  inward  processing and the competition 
for  silicon  destined  for  free  circulation,  this  statement  is  not  substantiated.  Whilst  it 
was indeed found that for the most part the Union industry did not suffer injury, the 
question of the likelihood of recurrence of injury also has to be considered in an expiry 
review. As stated above (see recital (133) in particular), such likelihood was found in 
this case.  

(153)  EUSMET has alleged there was a shortage of silicon in the RIP on the Union market 
as demonstrated by its claim that orders of some of its members had not been met by 
third  countries'  producers.  However,  this  claim  was  not  substantiated.  In  assessing 
available capacity on the market, EUSMET only took account of the Union producers' 
capacity  without  taking  into  account  imports  from  third  countries  including  China 
placed under the Inward Processing Regime. In conclusion, therefore, it is maintained 
that  there  was  no  shortage  and  that  the  demand  on  the  market  could  be  met  on  the 
basis of the sales of the Union industry and the volume of imports.  

(154)  EUSMET claimed also that the Union industry deliberately limits production through 
seasonal shutdowns and therefore limits sales on the Union market in order to control 
sales  prices.  One  Union  producer  has  resorted  to  production  shutdowns  but  during 
these  periods,  they  had  sufficient  stock  to  supply  their  customers  according  to  their 
long  term  contracts  in  place.  Another  Union  producer  had  some  production  cuts  but 
only  in  the  post-RIP  and  these  were  not  repeated.  Therefore,  EUSMET  claim  that 
shutdowns were intended to control prices was considered to be unfounded. 

(155)  Users, understandably, want to have free access to cheap raw materials in order to be 
more  competitive.  They  consider  freedom  of  sourcing  essential  since  unrestricted 
access  to  silicon  will  in  their  view,  become  more  important  in  the  future  due  to  the 
expected  increase  in  demand  for  silicon  by  2013,  largely  linked  to  the  solar-related 
projects.  EUSMET  argued  that  with  the  expected  increased  demand  in  the  Union 
silicon  market  in  the  years  to  2013,  the  alleged  shortage  will  increase.  Nevertheless, 
the figures provided on which the assumptions have been based, show that the Union 
consumption  even  in  2013  will  be  at  lower  level  than  the  one  existing  during  the 
period considered. There is therefore no reason why the future silicon demand could 
not be met. In addition, freedom of sourcing cannot by itself justify the acceptance of 
dumping practices. Competition on the Union market requires a level playing field for 
all operators. 

(156)  The  chemical  users  also  pointed  out  that  the  Union  industry  would  remain  an 
important  source  of  supply  as  a  guarantee  for  short-term  availability  of  the  product 
concerned, reliability of supply and a higher quality product than the Chinese one. 

(157)  Nevertheless,  the  investigation  showed  that  the  measures  in  force  did  not  have  any 
significant negative effects on their business. In particular some users in the chemical 
industry  considerably  increased  their  imports  of  silicon  from  the  PRC  during  the 
period concerned and most of them were in a healthy financial situation. In summary, 
it  was  considered  that,  as  in  the  previous  expiry  reviews,  the  continuation  of  the 

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measures would not have a significantly negative effect on the industrial users, bearing 
also in mind that the level of the measures proposed would be significantly reduced. 

5. 

Conclusion on Union interest 

(158)  Given  the  above,  it  is  concluded  that  there  are  no  compelling  reasons  against  the 

prolongation of the anti-dumping measures. 

H. ANTI-DUMPING MEASURES 

(159)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which  it  was  intended  to  recommend  that  the  measures  be  maintained  but  at  lower 
levels. They were also granted a period to submit comments and claims subsequent to 
disclosure.  Relevant  representations  submitted  were  analysed  but  have  not  led  to  the 
alteration of the essential facts and considerations on the basis of which it was decided 
to maintain the anti-dumping measures. 

(160)  As a result of the interim review pursuant to Article 11(3) of the basic Regulation and 
in accordance with Article 9(4) of the basic Regulation, an anti-dumping duty should 
be imposed on imports of the product concerned originating in PRC at the level of the 
lesser of the injury margin on which the measures in force are based and the dumping 
margins found in the current review. 

(161)  Consequently,  measures  will  be  set  at  the  level  of  the  dumping  margins  found;  i.e. 

16.3% for the sole company group granted IT and to 21.0% for all other companies. 

(162)  On  this  basis,  the  measures  extended  by  Council  Regulation  (EC)  No  42/200718  to 
imports  of  silicon  consigned  from  the  Republic  of  Korea,  whether  declared  as 
originating in the Republic of Korea or not, following an investigation in accordance 
with Article 13 of the basic Regulation should be maintained but at the levels set out in 
recital (161) above. 

(163)  Exporters in the Republic of Korea which intend to lodge a request for an exemption 
from the extended anti-dumping duty pursuant to Article 13(4) of the basic Regulation 
will  be  required  to  complete  a  questionnaire  in  order  to  enable  the  Commission  to 
determine whether an exemption may be warranted. Such exemption may be granted 
after  the  assessment  of  the  market  situation  of  the  product  concerned,  production 
capacity  and  capacity  utilisation,  procurement  and  sales  and  the  likelihood  of 
continuation  of  practices  for  which  there  is  insufficient  due  cause  or  economic 
justification and the evidence of dumping. The Commission would normally also carry 
out  an  on-the-spot  verification  visit.  The  request  would  have  to  be  addressed  to  the 
Commission,  with  all  relevant  information,  in  particular  any  modification  in  the 
company’s  activities  linked  to  production  and  export  sales  of  the  product  under 
consideration, 

18 

OJ L13, 19.1.2007, p. 1. 

EN 

31 

   EN 

 
                                                 
HAS ADOPTED THIS REGULATION: 

Article 1 

(1) 

(2) 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  silicon,  currently 
falling within CN code 2804 69 00, originating in the People's Republic of China. 

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net,  free-at-Union 
frontier price, before duty, for the product described in paragraph 1 and manufactured 
by the companies listed below shall be as follows: 

Company  

Datong  Jinneng  Industrial  Silicon  Co., 
Pingwang  Industry  Garden,  Datong, 
Shanxi 

Duty rate 

TARIC additional 
code 

16.3% 

A971 

All other companies 

19.0% 

A999 

(3) 

The extension of the definitive anti-dumping duty applicable to imports from 'all other 
companies'  in  the  People's  Republic  of  China  (i.e.  19.0%)  to  imports  of  the  product 
described in paragraph 1 consigned from the Republic of Korea, whether declared as 
originating in the Republic of Korea or not is hereby maintained. The TARIC code for 
imports consigned from the Republic of Korea, whether declared as originating in the 
Republic of Korea or not is (TARIC code 2804 69 00 10). 

(4) 

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

Article 2 

(5) 

Requests  for  exemption  from  the  duty  extended  mentioned  in  Article  1(3)  of  the 
current  regulation  shall  be  made  in  writing  in  one  of  the  official  languages  of  the 
Union and must be signed by a person authorised to represent the applicant. 

(6) 

The request must be sent to the following address: 

European Commission 

Directorate-General for Trade 

Directorate B 

Office: N-105 04/17 

1049 Brussels 

Belgium 

Fax (32-2) 295 65 05 

EN 

32 

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(7) 

In accordance with Article 13(4) of Regulation (EC) No 1225/2009, the Commission, 
after  consulting  the  Advisory  Committee,  may  authorise,  by  decision,  the  exemption 
of  imports  from  companies,  which  do  not  circumvent  the  anti-dumping  measures 
imposed by the current regulation, from the extended duty mentioned in Article 1(3). 

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 five years. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

EN 

33 

   EN