Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of tungsten carbide, tungsten carbide simply mixed with metallic powder and fused tungsten carbide originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
Date: 2011-02-28
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, import, originating product, tungsten

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EUROPEAN COMMISSION 

Brussels, 28.2.2011 
COM(2011) 87 final 

2011/0040 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of tungsten carbide, tungsten 
carbide simply mixed with metallic powder and fused tungsten carbide originating in 
the People's Republic of China following an expiry review pursuant to Article 11(2) of 
Regulation (EC) No 1225/2009 

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Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of tungsten carbide, tungsten 
carbide simply mixed with metallic powder and fused tungsten carbide originating in 
the People's Republic of China following an expiry review pursuant to Article 11(2) of 
Regulation (EC) No 1225/2009 

EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  1225/2009  of 
30 November 2009 on protection against dumped imports from countries not members 
of the European Community (‘the basic Regulation’), in the expiry review proceeding 
concerning  the  anti-dumping  duty  in  force  in  respect  of  imports  of  tungsten  carbide, 
tungsten  carbide  simply  mixed  with  metallic  powder  and  fused  tungsten  carbide 
originating in the People's Republic of China (‘PRC’). 

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 
By  Regulation  (EEC)  No  2737/901,  the  Council  imposed  a  definitive  anti-dumping 
duty of 33% on imports of tungsten carbide and fused tungsten carbide originating in 
the  People’s  Republic  of  China  (‘PRC’).  By  Decision  90/480/EEC2  the  Commission 
accepted undertakings given by two major exporters concerning the product subject to 
measures. 

Following the withdrawal of the undertakings by the two Chinese exporters concerned, 
the Commission imposed by Regulation (EC) No 2286/943 a provisional anti-dumping 
duty on imports of the product concerned. 
By Regulation (EC) No 610/954, the Council amended Regulation (EEC) No 2737/90 
and  imposed  a  definitive  duty  of  33%  on  imports  of  tungsten  carbide  and  fused 
tungsten carbide. Following a review which had been initiated pursuant to Article 11(2) 
of  the  basic  Regulation  (‘the  previous  review  investigation’),  these  measures  were 
extended for another five-year period by Regulation (EC) No 771/985.  

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4 
5 

OJ L 264, 27.9.1990, p. 7. 
OJ L 264, 27.9.1990, p. 59. 
OJ L 248, 23.9.1994, p. 8. 
OJ L 64, 22.3.1995, p. 1. 
OJ L 111, 9. 4. 1998, p. 1. 

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By Regulation (EC) No 2268/20046, following an expiry review, the Council imposed 
a  definitive  anti-dumping  duty  of  33%  on  imports  of  tungsten  carbide  and  fused 
tungsten carbide originating in the PRC. 
By Regulation (EC) No 1275/20057, the Council amended the definition of the product 
scope to also cover tungsten carbide simply mixed with metallic powder. 

Consistency with other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not provide for a general impact assessment but contains an 
exhaustive list of conditions that have to be assessed. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

On 30 December 2009, the Commission announced by a notice (‘Notice of initiation’), 
published  in  the  Official  Journal  of  the  European  Union,  the  initiation  of  an  expiry 
review  of  the  anti-dumping  measures  applicable  to  imports  of  tungsten  carbide  and 
fused tungsten carbide originating in the PRC. 

The  review  was  initiated  following  a  substantiated  request  lodged  by  the  European 
Association of Metals (Eurometaux) on behalf of Union producers representing a major 
proportion, in this case more than 85%, of the Union production of tungsten carbide, 
tungsten carbide simply mixed with metallic powder and fused tungsten carbide.  

The review investigation found continuing dumping of the product concerned, which, 
should anti-dumping measures be lifted, would result in the recurrence of injury to the 
Union industry. It was further established that the lapse of measures would not be in 
the interest of the Union.  

Therefore,  it  is  suggested  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation in order to prolong the existing measures, which should be published in the 

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OJ L 395, 31.12.2004, p. 56 
OJ L 202, 3.8.2005, p. 1. 

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Official Journal of the European Union by 29 March 2011 at the latest.  

Legal basis 

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

Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  European  Union.  The 
subsidiarity principle therefore does not apply. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons: 

The form of action is described in the 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 instruments: regulation. 

Other means would not be adequate for the following reason: 

The basic Regulation does not provide for alternative options. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2011/0040 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of tungsten carbide, tungsten 
carbide simply mixed with metallic powder and fused tungsten carbide originating in 
the People's Republic of China following an expiry review pursuant to Article 11(2) 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 Community8 (‘the basic 
Regulation’), and in particular Article 11(2) thereof, 

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

Whereas: 

A. 

PROCEDURE 

(1) 

(2) 

(3) 

1.  Measures in force 
By  Regulation  (EEC)  No  2737/909,  the  Council  imposed  a  definitive  anti-dumping 
duty of 33% on imports of tungsten carbide and fused tungsten carbide originating in 
the People’s Republic of China (‘PRC’). By Decision 90/480/EEC10 the Commission 
accepted undertakings given by two major exporters concerning the product subject to 
measures 

Following the withdrawal of the undertakings by the two Chinese exporters concerned, 
the  Commission  imposed  by  Regulation  (EC)  No  2286/9411  a  provisional  anti-
dumping duty on imports of the product concerned 
By Regulation (EC) No 610/9512, the Council amended Regulation (EEC) No 2737/90 
and  imposed  a  definitive  duty  of  33%  on  imports  of  tungsten  carbide  and  fused 
tungsten  carbide.  Following  a  review  which  had  been  initiated  pursuant  to  Article 
11(2)  of  the  basic  Regulation  (‘the  previous  review  investigation’),  these  measures 
were extended for another five-year period by Regulation (EC) No 771/9813  

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13 

OJ L 343, 22.12.2009, p. 51. 
OJ L 264, 27.9.1990, p. 7. 
OJ L 264, 27.9.1990, p. 59. 
OJ L 248, 23.9.1994, p. 8. 
OJ L 64, 22.3.1995, p. 1. 
OJ L 111, 9. 4. 1998, p. 1. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

By Regulation (EC) No 2268/200414, following an expiry review, the Council imposed 
an  anti-dumping  duty  of  33%  on  imports  of  tungsten  carbide  and  fused  tungsten 
carbide originating in the People’s Republic of China (‘PRC’). 
By  Regulation  (EC)  No  1275/200515,  the  Council  amended  the  definition  of  the 
product scope to also cover tungsten carbide simply mixed with metallic powder. 

2.  Request for a review 
Following  the  publication  of  a  notice  of  impending  expiry16  of  the  definitive  anti-
dumping measures in force, the Commission received on 30 September 2009 a request 
for the initiation of an expiry review of these measures pursuant to Article 11(2) of the 
basic  Regulation.  The  request  was  lodged  by  the  European  Association  of  Metals 
(Eurometaux)  ('the  applicants')  on  behalf  of  Union  producers  representing  a  major 
proportion,  in  this  case  more  than  85%,  of  the  total  Union  production  of  tungsten 
carbide,  tungsten  carbide  simply  mixed  with  metallic  powder  and  fused  tungsten 
carbide. 

The request was based on the grounds that the expiry of the measures would be likely 
to  result  in  a  continuation  or  recurrence  of  dumping  and  recurrence  of  injury  to  the 
Union industry. 

3. 

Initiation  

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  an  expiry  review,  the  Commission  announced  on  30 
December 2009, by a notice published in the Official Journal of the European Union17 
('the Notice of initiation'), the initiation of an expiry review pursuant to Article 11(2) 
of the basic Regulation.  

4. 

Investigation  

4.1. Investigation period 
The investigation of continuation or recurrence of dumping covered the period from 1 
January 2009 to 31 December 2009 (‘the review investigation period’ or ‘RIP’). The 
examination of the trends relevant for the assessment of the likelihood of a recurrence 
of  injury  covered  the  period  from  1  January  2006  to  the  end  of  the  RIP  (‘the  period 
considered’). 

4.2. Parties concerned by the investigation 

(10)  The  Commission  officially  advised  the  applicant,  other  known  Union  producers, 
exporting  producers,  importers  and  users  known  to  be  concerned,  producers  in  the 
analogue  country  and  the  representatives  of  the  PRC  of  the  initiation  of  the  expiry 
review.  Interested  parties  were  given  the  opportunity  to  make  their  views  known  in 
writing and to request a hearing within the time limit set out in the Notice of initiation.  

(11)  All interested parties, who so requested and showed that there were particular reasons 

why they should be heard, were granted a hearing.  

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OJ L 395, 31.12.2004, p. 56. 
OJ L 202, 3.8.2005, p. 1. 
OJ C 115, 20.5.2009, p. 18 
OJ C 322, 30.12.2009, p. 23. 

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(12)  The Commission sent questionnaires to all parties known to be concerned and to those 
who  made  themselves  known  within  the  deadlines  set  in  the  Notice  of  initiation. 
Replies  were  received  from  seven  Union  producers,  one  exporting  producer  in  the 
PRC, one exporting producer in the analogue country and three users.  

(13)  None of the importers replied to the sampling exercise nor supplied the Commission 
with any information or made themselves known in the course of the investigation. As 
only  one  exporting  producer  form  the  PRC  came  forward  with  the  requested 
information, it was not necessary to select a sample.  

(14)  The  Commission  sought  and  verified  all  the  information  it  deemed  necessary  for  a 
determination of the likelihood of continuation or recurrence of dumping and resulting 
injury and of the Union interest. Verification visits were carried out at the premises of 
the following companies: 

(a)  Union producers 

Wolfram Bergbau und Hütten-GmbH Nfg.KG., St Peter, Austria 

H. C. Starck GmbH & Co. KG, Goslar, Germany 

Eurotungstène poudres S.A., Grenoble, France 

Global Tungsten & Powders spol. s r.o, Brutal, Czech Republic 

Treibacher Industrie AG, Althofen, Austria 

(b)  Analogue Country 

Global Tungsten & Powders Corp., USA 

(c)  User 

Sandvik Hard Materials, Epinouze, France 

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B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(15)  The  product  concerned  by  the  present  review  is  tungsten  carbide,  tungsten  carbide 
simply mixed with metallic powder and fused tungsten carbide originating in the PRC 
and currently falling within CN codes 2849 90 30 and ex 3824 30 00.  

(16)  Tungsten  carbide,  tungsten  carbide  simply  mixed  with  metallic  powder  and  fused 
tungsten  carbide  are  compounds  of  carbon  and  tungsten  produced  by  heat  treatment 
(carburisation  in  the  first  case,  fusion  in  the  third).  These  products  are  intermediate 
products, used as input materials in the manufacture of hard metal components such as 
cemented  carbide  cutting  tools  and  high-wear  components,  in  abrasion-resistant 
coatings,  in  bits  for  oil  drilling  and  mining  tools  as  well  as  in  dies  and  tips  for  the 
drawing and forging of metals.  

(17)  The  present  investigation  confirmed  that,  the  product  concerned  manufactured  and 
sold  by  the  exporting  producer  to  the  Union  is  identical  in  terms  of  physical  and 
chemical characteristics and uses to the product produced by the Union producers and 
sold on the Union market or to the one produced and sold in the analogue country and 
are, therefore, considered to be like products within the meaning of Article 1(4) of the 
basic Regulation.  

LIKELIHOOD OF A CONTINUATION OR A RECURRENCE OF DUMPING 

Preliminary remarks 

C. 

1. 

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(18) 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  it  was  examined  whether 
dumping  was  currently  taking  place  and,  if  so,  whether  or  not  the  expiry  of  the 
existing measures would be likely to lead to a continuation or recurrence of dumping. 
It  is  recalled  that  in  the  context  of  investigation  under  this  Article,  market  economy 
treatment ('MET') is not reconsidered. 

(19)  As  explained  above,  it  was  not  necessary  to  apply  sampling  in  respect  of  exporting 

producers in the PRC.  

(20)  At the sampling stage, the sole co-operating Chinese exporting producer appeared to 
represent less that 5% of total Chinese exports to the Union. The Chinese authorities 
and  the  other  interested  parties  were  notified  of  the  possibility  that  Article  18  of  the 
basic  Regulation  might  be  applied  due  to low level of co-operation by  the exporting 
producers. The Commission did not receive any answer to this communication. 

(21)  However,  further  in  the  investigation,  in  the  reply  to  the  questionnaire,  the  co-
operating  exporting  producer  corrected  the  error  in  reporting  its  export  sales  to  the 
Union and revised upwards its export volume to the Union. In parallel, the volumes of 
the  product  concerned  exported  to  the  Union  form  the  PRC  were  further  analysed 
based  on  EUROSTAT  figures.  As  a  result,  and  after  the  verification  of  the 
questionnaire  reply,  it  was  established  that  the  export  volume  of  the  co-operating 
exporting producer was very high18. On the basis of these findings, it was concluded 
that co-operation was high. 

2. 

Dumping of imports during the RIP 

2.1. 

Analogue country 

(22)  Since  no  exporting  producer  from  PRC  were  granted  MET  in  the  previous 
investigations,  the  normal  value  for  China  was  established  in  accordance  with  the 
provisions of Article 2(7)(a) of the basic Regulation. 

(23) 

In the Notice of initiation, it was envisaged to use the USA as an appropriate analogue 
country  for  the  purpose  of  establishing  normal  value  for  the  PRC.  Interested  parties 
were  invited  to  comment  on  the  appropriateness  of  this  choice.  No  comments  or 
objections were received from any parties in that respect. The USA was used also as 
an analogue country in the original investigation and no new or changed circumstances 
which  would  justify  a  change  appeared  to  exist  nor  were  communicated  to  the 
Commission.  It  was  considered  that  USA  was  representative  as  a  reference  market, 
especially in view of the openness and competitiveness of the US domestic market. In 
addition, one producer from USA agreed to cooperate within the present review. 

(24)  Therefore,  USA  has  been  used  as  an  analogue  market  economy  country  for  the 

purpose of this review. 

2.2. 

Normal value 

(25)  Pursuant to Article 2(7) of the basic Regulation, normal value was established on the 
basis  of  the  verified  information  received  from  the  co-operating  US  producer  in  the 
analogue country, i.e. on the basis of prices paid or payable on the domestic market in 
the  USA,  for  product  types  which  were  found  to  be  sold  in  the  ordinary  course  of 
trade. 

18 

The exact percentage cannot be disclosed due to confidentiality reasons. 

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(26)  As a result, normal value was established as the weighted average domestic sales price 

to unrelated customers by the co-operating producer in the USA. 

(27) 

(28) 

It  was  first  established  whether  the  total  domestic  sales  of  the  like  product  to 
independent  customers  of  the  US  co-operating  producer  were  representative  in 
accordance with Article 2(2) of the basic Regulation, i.e. whether they accounted for 
5% or more of the total sales volume of the product concerned exported to the Union. 
The  domestic  sales  of  the  co-operating  US  producer  were  found  to  be  sufficiently 
representative during the review investigation period. 

It was subsequently examined whether the domestic sales of the like product could be 
regarded as being sold in the ordinary course of trade pursuant to Article 2(4) of the 
basic  Regulation.  This  was  done  by  establishing  for  the  like  product  sold  on  the  US 
market the proportion of profitable domestic sales to independent customers during the 
RIP. 

(29)  Since the volume of profitable sales of the like product represented less than 80% of 
the  total  sales  volume  of  the  like  product,  normal  value  was  based  on  the  actual 
domestic price, calculated as a weighted average of profitable sales. 

2.3. 

Export price 

(30)  As  explained  above,  in  view  of  the  fact  that  the  co-operating  exporting  producer 
represented more than 90% of total Chinese imports to the Union, the export price was 
examined  on  the  basis  of  data  provided  by  that  exporting  producer,  i.e.  the  duly 
adjusted price actually paid or payable for the product concerned when sold for export 
to the Union. 

2.4. 

Comparison 

(31)  The weighted average normal value was compared with the weighted average export 
price for each type of product concerned, on an ex-works basis, at the same level of 
trade  and  the  same  level  of  taxation.  In  accordance  with  Article  2(10)  of  the  basic 
Regulation,  and  for  the  purpose  of  ensuring a  fair  comparison,  differences  in  factors 
which  were  claimed  and  demonstrated  to  affect  price  and  price  comparability  were 
taken into account. Adjustments were made for ocean and domestic freight, insurance, 
bank charges and packaging costs. Further, a 5% adjustment on the export price for the 
export tax was made and the adjustment for Value Added Tax (VAT) on the normal 
value. 

2.5. 

(32) 

Dumping margin 

In  accordance  with  Article  2(11)  of  the  basic  Regulation,  the  dumping  margin  was 
established  per  product  type  on  the  basis  of  a  comparison  of  the  weighted  average 
normal value with the weighted average export price at the same level of trade. This 
comparison showed the existence of dumping during the RIP amounting to more than 
80%, hence at a significantly higher level than in the last review investigation (31%). 
The  precise  dumping  margin  cannot  be  disclosed  due  to  confidentiality  reasons.  The 
calculations have been based on data provided by one exporting producer in the PRC 
and  one  producer  in  the  analogue  country.  Disclosure  of  the  dumping  margin  would 
allow  both  the  co-operating  exporting  producer  in  the  PRC  and  the  producer  in  the 
analogue  country  to  deduce  respectively  the  other's  normal  value  and  export  price  , 
which would amount to a clear breach of both parties right to confidentiality . 

3. 

3. Development of imports should measures be repealed  

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3.1. 

Preliminary remark 

(33)  The  data  included  in  this  section  were  obtained  through  the  analysis  of  the  data 
provided  by  the  cooperating  exporting  producer,  by  EUROSTAT,  by  the  review 
request. 

3.2. 

Spare capacity of the Chinese exporting producers 

(34)  Data on spare capacity provided by the co-operating Chinese exporting producer were 
presented with a 20% increase or decrease  to respect  confidentiality. The production 
capacity  in  the  PRC  amounted  to  around  21  000  tonnes  in  2006  and  2007  and 
increased  substantially  to  around  35  000  tonnes  in  2008  and  the  RIP,  an  increase  of 
more  than  80%  over  the  period  considered.  These  figures  can  be  considered  as 
conservative, as the review request reported a production capacity in the vicinity of 50 
000 tonnes. 

(35) 

In  addition  the  co-operating  exporting  producer  reported  a  substantial  increase  in 
capacity during the period considered.  

(36)  On  the  basis  of  the  information  collected  during  the  investigation,  the  total  Chinese 
production capacity exceeded considerably the actual Chinese production (by at least 
more than 20 000 tonnes in 2008 and in the RIP). 

(37) 

(38) 

In  the  RIP  the  PRC  had  a  spare  capacity  amounting  to  a  six  fold  of  the  Union 
consumption (25 000 tonnes as related to 3 800 tonnes of Union consumption). 

In view of the above, it is clear that a large part of the spare capacity available in the 
PRC  could  be  used  to  increase  exports  to  the  Union  in  the  absence  of  anti-dumping 
measures.  

(39)  Moreover,  information  submitted  during  the  investigation  indicated  important 
distortions  in  the  raw  materials  market  used  to  manufacture  the  product  concerned. 
Firstly,  raw  materials  are  subject  to  quotas  granted  by  the  Chinese  authorities. 
Secondly,  the  Chinese  authorities  limit  the  access  to  raw  materials  through  the 
imposition of export taxes and VAT rebate policies, which as indicated in recital (31) 
also  applied  to  the  product  concerned.  These  factors  constitute  additional  elements 
pointing to the likelihood of continuation of dumping in the present case. 

3.3. 

Attractiveness of the Union market and export prices to third countries 

(40)  Price  information  provided  by  the  co-operating  exporter,  which  cannot  be  disclosed 
due to confidentiality reasons, shows that the Union constitutes indeed an interesting 
market  for  the  Chinese  exporting  producers.  Throughout  the  period  considered  the 
prices  achieved  on  other  third  country  markets  were  below  (except  in  2007)  those 
charged  to  the  Union  (roughly  between  10  and  20%  lower  in  different  years 
throughout the period considered).  

(41)  On  these  grounds,  it  can  be  concluded  that  in  terms  of  prices  achievable,  the  EU 

market is definitely an attractive alternative for the Chinese exporters. 

(42)  On that basis, Chinese exporting producers have an incentive to direct their exports to 
the  Union  market,  should  measures  be  repealed.  The  high  prevailing  prices  in  the 
Union  market  would  allow  the  Chinese  exporting  producers  to  achieve  better  profit 
margins.  

3.4. 

Circumvention of measures 

EN 

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(43) 

In  2005  the  measures  have  been  extended  to  an  additional  CN  code  as  it  was  found 
that Chinese exporters were circumventing the measures by adding small quantities of 
another metallic powder (mostly cobalt) to tungsten carbide powder19. This confirmed 
circumvention practice is yet another element pointing to the conclusion of likelihood 
of  continuation  of  dumping.  It  constitutes  clear  evidence  that  European  market 
continues to be attractive for the Chinese exporting producers who would likely direct 
higher  volumes  of  tungsten  carbide  into  the  EU  in  the  absence  of  anti-dumping 
measures.  

3.5. 

Conclusion of the likelihood of continuation of dumping 

(44)  The  foregoing  analysis  demonstrates  that  Chinese  imports  continued  to  enter  the 
Union market at dumped prices with very high dumping margins. Given most notably 
the analysis of price levels on the EU and other third country markets as well as the 
capacities  available  in  the  PRC,  it  can  be  concluded  there  is  a  likelihood  of 
continuation of dumping should measures be removed.  

D. 

SITUATION ON THE UNION MARKET  

1.  Definition of the Union industry 

(45)  Within the Union, the like product is manufactured by seven companies or groups of 

companies.  

(46)  They  are  therefore  deemed  to  constitute  the  Union  industry  within  the  meaning  of 
Article 4(1) and Article 5(4) of the basic Regulation and will hereinafter be referred to 
as the ‘Union industry’. 

Preliminary remark 

(47)  Data relating to imports of the product concerned into the European Union originating 
in the PRC had to be indexed in order to preserve confidentiality pursuant to Article 
19 of the basic Regulation. 

(48)  Regarding import volumes under TARIC code 3824 30 00 10, due to the inclusion of 
products  other  than  the  product  concerned  in  the  import  data  available  at  CN  code 
level from Eurostat (CN code 3824 30 00), the following analysis has been made on 
the basis of import data at TARIC code level, supplemented by information from data 
collected  in  accordance  with  Article  14(6)  of  the  basic  Regulation.  TARIC  data  are 
considered confidential as they provide a level of detail which allows for identification 
of the parties.. For this reason some information was presented in ranges. 

(49)  Union  industry  data  were  obtained  from  questionnaire  responses  of  the  seven  Union 

producers.  

Consumption in the Union market 

(50)  Union  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the  Union 

industry on the Union market, and import data from Eurostat. 

(51)  Between  2006  and  the  RIP,  Union  consumption  decreased  by  62%,  with  the  main 
decrease occurring between 2008 and the RIP. In the RIP, consumption decreased by 
63% compared to 2008.  

19 

OJ  L  202,  03.08.2005,  p.  1,  Council  Regulation  (EC)  No  1275/2005  of  26  July  2005  amending 
Regulation (EC) No 2268/2004 imposing a definitive anti-dumping duty on imports of tungsten carbide 
and fused tungsten carbide originating in the People’s Republic of China 

EN 

   EN 

 
 
                                                 
Table 1 
Consumption 

Volume (tonnes) 
+ Total imports 
+  EU  production  sold 
on the EU market 

= Consumption 
year-on-year increase 

2006 

2007 

2008 

RIP 

1.766  

8.281  

10.047  

1.885  

8.334  

10.218  
2% 

2.303  

7.981  

10.284  
1% 

755  

3.024  

3.779  
-63% 

Volume,  market  share  and  prices  of  dumped  imports  from  the  People's 

Republic of China  

(52)  The  volumes,  market  shares  and  average  prices  of  dumped  imports  from  the  PRC 
developed  as  set  out  below.  The  following  quantity  and  price  trends  are  based  on 
Eurostat. 

Table 2 
Imports from PRC 

Volume  of  imports  from  the  country  concerned 
(tonnes) 

Index (2006=100) 
Market share of imports from the country concerned 
Price  of 
the  country  concerned 
(EUR/tonne) 

imports  from 

Index (2006=100) 

2006 
More  than 
700  

100  
7,1% 

2007 

2008 

More 
than 
700  

104  
7,3% 

More 
than 
400  

60  
4,2% 

RIP 
More 
than 60  

11  
2,1% 

25.622  

21.883  

22.434  

22.110  

100  

85  

88  

86  

(53)  The volume of dumped imports of the product concerned originating in the PRC has 
decreased by 89% over the period considered and reached a level of around 80 tonnes 
during  the  RIP.  Their  market  share  also  dropped  from  7,1%  in  2006  to  2,1%  in  the 
RIP.  

(54)  A  possible  explanation  for  this  decrease  is  a  substantial  increase  of  PRC's  domestic 
consumption  during  the  period  considered.  In  addition,  through  a  system  of  export 
quotas and export tariffs Chinese authorities appear to pursue a policy of conserving 
PRC's tungsten resources.  

(55)  Prices  of  Chinese  imports  decreased  by  14%  during  the  period  considered.  This 
evolution  reflects  the  general  trend  also  observed  with  regard  to  the  Union  industry 
prices.  

(56)  The comparison also showed that imports from the PRC were undercutting the prices 
of the Union industry by more than 10%, after deduction of the anti-dumping duty in 
place. These results are the same as in the last review investigation20. 

Imports from other countries 

20 

See recital (65) of Commission Regulation (EC) No 2268/2004 (OJ L 395/62, 31.12.2004) 

EN 

   EN 

 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
  
                                                 
(57)  The volume of imports from other countries during the period considered are shown in 

the table below. The quantity and price trends are based on Eurostat: 

Table 3 
Imports from other countries 

Imports from other counties (tonnes) 
Index (2006=100) 
Market  share  of  imports  from  other 
countries 

2006 
1.050  

100  

2007 
1.138  

108  

2008 
1.873  

178  

RIP 

675  

64  

10,5% 

11,1% 

18,2% 

17,9% 

Average price (EUR/Tonne) 
Index (2006=100) 

 27.309,1 
100  

 26.626,0 
97  

 21.607,5  
79  

 24.867,4 
91  

US Market share 
Average price (EUR/Tonne) 

4,2% 

3,9% 

3,9% 

3,6% 

 32.948,1 

 32.356,0 

 29.353,3  

 32.054,4 

South Korea Market share 
Average price (EUR/Tonne) 

2,2% 

2,4% 

2,6% 

4,4% 

 33.733,8 

 29.969,5 

 25.789,0  

 24.503,7 

(58)  The imports from third countries decreased by 36% over the period considered. They 
followed  a  general  market  trend  triggered  by  the  shrinking  consumption  (a  drop  by 
62%),  but  not  at  the  same  pace.  Thereby  the  market  share  of  these  imports  has 
increased from 10,5% to 17,9%. However, the impact of those imports on the Union 
industry cannot be considered negative as demonstrated in recitals (85) to (88) below. 

(59) 

It  should  be  noted  that  the  market  share  of  the  Republic  of  Korea  ('Korea')  doubled 
during  the  period  considered,  reaching  4,4%.  The  Korean  average  import  prices 
decreased  during  the  period  considered,  however  remaining  consistently  higher  than 
the average selling price of Chinese export sales.  

Economic situation of the Union industry  

(60)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
relevant  economic  factors  and  indices  having  a  bearing  on  the  state  of  the  Union 
industry.  

5.1.  Production  

(61)  The Union industry’s production first increased by 5,8% in 2007 and 11,6% in 2008 
compared  to  2006,  and  then  declined  sharply  during  the  RIP,  by  56%  compared  to 
2008. 

Table 4 
Total Union production 

Volume (Tonnes) 

Production 

Index (2006=100) 

2006 

2007 

2008 

RIP 

10.094  

10.679  

11.268  

4.861  

100  

106  

112  

48  

5.2.  Capacity and capacity utilisation rates 

EN 

   EN 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
(62)  Production  capacity  increased  by  10,8%  between  2006  and  the  RIP.  As  production 
decreased,  in  particular  during  the  RIP,  the  resulting  capacity  utilisation  showed  an 
overall  decrease  of  57%  between  2006  and  the  RIP,  reaching  a  39%  capacity 
utilisation during the RIP. 

Table 5 
Production capacity and capacity utilisation 

Volume (Tonnes) 
Production capacity 
Index (2006=100) 
Capacity utilisation 
Index (2006=100) 

5.3.  Stocks  

2006 

2007 

2008 

RIP 

11.110  
100  

91%

100  

11.610  
105  

12.230  
110  

12.310  
111  

92%

101  

92% 

101  

39%

43  

(63)  The level of closing stocks of the Union industry increased by 20% in 2008 compared 

to 2006 and then decreased by 26% during the RIP. 

Table 6 
Stocks 

2006 

2007 

2008 

RIP 

1.714  
100  

1.808  
106  

2.054  
120  

1.514  
88  

Volume (Tonnes) 
Closing stock 
Index (2006=100) 

5.4.  Sales volume  

(64)  The sales of the Union industry on the Union market to unrelated customers slightly 
increased between 2006 and 2008 and then decreased by 61% between 2008 and the 
RIP. Sales volumes increased in 2007 and 2008 but declining sharply, during the RIP. 
This development is in line with the general trend of decreasing consumption on the 
Union market. 

Table 7 
Sales to unrelated customers 

2006 

2007 

2008 

RIP 

5.594  
100  

5.630  
101  

5.874  
105  

2.292  
41  

Volume (Tonnes) 
Index (2006=100) 

5.5.  Market share 

(65)  The  market  share  held  by  the  Union  industry  was  rather  stable  between  2006  and 
2008, to increase thereafter by 4 percentage points between 2008 and the RIP. Overall, 
there has been an increase of 5 percentage points during the period considered.  

Table 8 
EU Market share 

EN 

   EN 

 
 
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
  
 
  
  
  
  
 
 
 
 
 
2006 

2007 

2008 

RIP 

EU Market share 
Index (2006=100) 

56% 
100  

55% 
99  

57% 
103  

61% 
109  

5.6.  Growth  

(66)  As  the  decrease  in  sales  was  slightly  lower  than  the  decrease  in  consumption,  the 

Union industry was able to gain some market share. 

5.7.  Employment 

(67)  The  level  of  employment  of  the  Union  industry  declined  by  17%  between  2006  and 
the  RIP.  Employment  decreased  also  in  the  period  2006-2008,  when  production 
slightly  increased,  showing  the  efforts  made  by  Union  industry  to  improve  its 
productivity.  During  RIP  however,  the  sharp  decrease  of  the  output  lead  to  a  strong 
deterioration of employment.  

Table 9 
Employment 

2006 

2007 

2008 

RIP 

674  
100  

667  
99  

653  
97  

557  
83  

(period 

Average 
considered) 
Total employment  
Index (2006=100) 

5.8.  Productivity 

(68)  Productivity  of  the  Union  industry's  workforce,  measured  as  output  per  person 
employed  per  year,  increased  in  2007  and  2008  by  7%  and  15%  respectively, 
compared to 2006 and then decreased by 49% between 2008 and the RIP. 

Table 10 
Productivity 

2006 

2007 

2008 

RIP 

15  

100  

16  

107  

17  

115  

9  

58  

Productivity (tonnes per 
year /employee) 
Index (2006=100) 

5.9.  Sales prices  

(69)  Average  ex-works  sales  price  of  the  Union  industry  to  unrelated  customers  in  the 
Union  followed  a  declining  trend  over  the  period  considered.  Overall,  the  Union 
industry had to decrease its prices by 15,4% between 2006 and the RIP. 

(70)  As  explained  in  recitals  (55)  and  (56),  the  prices  of  dumped  imports  from  the  PRC 
followed a similar trend to that of the Union industry, but were consistently lower than 
the prices of the Union industry. During the RIP, prices from the PRC were more than 
10%lower than the Union industry's prices. 

Table 11 

EN 

   EN 

 
 
  
  
  
  
  
  
 
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
  
  
  
  
  
  
Unit price EU market  

2006 

2007 

2008 

RIP 

31.030  

29.995  

29.072  

26.241  

100  

97  

94  

85  

Unit prices of Union sales 
(EUR/tonne) 
Index (2006=100) 

5.10.  Wages  

(71)  Between 2006 and the RIP, the average wage per employee increased by 4.8%. 

Table 12 
Labour cost 

Annual labour cost per employee  

Index (2006=100) 

2006 

53.614  
100  

2007 

54.613  
102  

2008 

56.564  
106  

RIP 

56.221  
105  

5.11.  Investments and ability to raise capital 

(72)  Between  2006  and  2008,  the  annual  flow  of  investments  in  the  product  concerned 
made  by  the  Union  industry  increased by 18%. Investments  between 2007 and 2008 
increased  by  103%.  However,  during  the  RIP  investments  decreased  by  65% 
compared to 2008.  

(73) 

Investments  were  mainly  made  in  the  construction  of  new  facilities  to  produce 
tungsten material from used materials and scrap. Investments had to be reduced due to: 
i)  the  decrease  on  the  general  level  of  production  in  the  Union  market,  ii)  the 
distortions on the raw materials (see recital (39) iii) the economic crisis. 

(74)  During the RIP, no significant investments were made. This can be explained in large 
part by the economic crisis which began in 2008 and reached its deepest point during 
the RIP when access to new capital was ever more difficult. 

Table 13 
Investments 

2006 

2007 

2008 

RIP 

Net investments ('000 EUR) 
Index (2006=100) 

18.403  
100  

10.711  
58  

21.756  
118  

7.568  
41  

5.12.  Profitability and return on investments 

(75)  Thanks in part to the anti-dumping measures in force and in part to the efforts made by 
the Union industry to diversify the raw material sources, between 2006 and 2008 the 
Union industry was able to maintain a positive level of profitability, even if it overall 
decreased  by  26%  during  this  period.  During  the  RIP,  however,  the  Union  industry 
had a much less favourable result, showing a certain fragility in this respect.  

(76)  The  return  on  investments  (‘ROI’)  broadly  followed  the  profitability  trend  over  the 

whole period considered. 

Table 14 

EN 

   EN 

 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
  
 
 
 
 
 
  
  
  
  
  
  
Profitability and ROI 

2006 

2007 

2008 

RIP 

Net Profit of EU sales to 
unrelated customers (% of net 
sales) 

ROI (net profit in % of net book 
value of investments) 

5.13.  Cash flow  

10,3% 

5,8% 

7,6% 

-19,5% 

34,8% 

22,1% 

28,8% 

-28,6% 

(77) 

The  trend  of  cash-flow,  which  is  the  ability  of  the  industry  to  self-finance  its 
activities, remained positive during the period under investigation. However, between 
2006 and the RIP, it decreased by around 35%. 

Table 15 
Cash flow 

2006 

2007 

2008 

RIP 

Cash flow ('000 EUR) 

36.125  

39.868  

44.102  

23.540  

Index (2006=100) 

100  

110  

122  

65  

5.14.  Magnitude of dumping margin 

(78)  Dumping from PRC continued during the RIP at a level which is significantly above 
the current level of measures. Furthermore, given the distortions on raw materials, the 
spare  capacity  and  prices  of  the  imports  from  the  PRC,  the  impact  on  the  Union 
industry of the actual margins of dumping cannot be considered to be negligible. 

5.15  Recovery from past dumping 

(79) 

It  was  analysed  whether  the  Union  industry  recovered  from  the  effects  of  past 
dumping.  It  was  concluded  that  it  managed  to  recover  to  a  large  extent  from  such 
effects given that the anti-dumping measures in force proved to be effective. However, 
the  economic  crisis  stopped  that  process  and  has  accentuated  the  difficulties  of  the 
Union industry.  

Impact of dumped imports and other factors 

6.1. Impact of the dumped imports  

(80) 

In  parallel  to  the  shrinking  consumption  in  the  Union,  the  market  share  of  Chinese 
imports  decreased  from  7,1%  to  2,1%  (see  recital  (52)).  The  available  information 
indicates that these imports were made at prices which were lower than those of the 
Union  industry  and  also  lower  than  those  of  the  imports  originating  in  other  third 
countries. As mentioned in recital (56) above, based on a calculation excluding anti-
dumping  duty,  the  Chinese  imports  undercut  the  Union  industry  prices  by  10,7% 
during  the  RIP.  It  is  recalled  that  the  duty  rate  amounts  to  33%.  Consequently,  the 
level of undercutting demonstrates on one hand the effectiveness of the duties in place 
and  on  the  other  hand  the  necessity  to  continue  the  measures.  This  conclusion  is 
reinforced by the fact that the undercutting found was at the same level as in the last 
review investigation. Hence, the price impact of dumped imports from the PRC on the 

EN 

   EN 

 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
  
  
  
  
  
  
Union industry remained unchanged  and, in the absence of any evidence pointing to 
the contrary, it is likely to continue. 

6.2.  Impact of the economic crisis 

(81)  Due  to  the  very  negative  economic  conditions  prevailing  during  the  RIP  in  the 
tungsten's  downstream  sector,  in  particular  in  the  sector  of  steel  and  cemented 
carbides,  which  represents  the  majority  of  tungsten  consumption  in  the  Union,  the 
Union industry drastically reduced production and sales of the product concerned. 

(82)  Prior  to  the  crisis,  companies  operating  in  the  downstream  sector  had  high  level  of 
tungsten' stocks that were not built up during the RIP, further affecting the production 
level of the Union industry. 

(83)  As  production  decreased,  and  as  the  Union  industry  is  a  capital  intensive  one,  thus 
needing to produce certain volumes to keep down the unit fixed cost, the profitability 
was seriously affected. 

(84)  However, the analysis of the Union industry, before the crisis, proofs the effectiveness 
of  the  anti-dumping  measures  in  force.  The  investigation  showed  that  the  largest 
Union  producers  were  making  important  investments  in  order  to  avoid  the  raw 
material  distortions  while  at  the  same  time  they  were  able  to  compete  in  the  market 
keeping a healthy position. 

6.3.  Imports from other countries 

(85) 

It is estimated that the volume of imports from other third countries decreased by 36% 
from 1.500 tonnes in 2006 to 675 tonnes in the RIP. The market share of imports from 
other  countries  increased  from  10,5%  in  2006  to  17,9%  in  the  RIP.  Their  average 
imports  price  decreased  by  8,9%  between  2006  and  the  RIP.  The  main  importing 
countries were South Korea and the USA. 

(86)  The  market  share  of  imports  from  South  Korea  doubled  over  the  period  considered 
(from 2,2% to 4,4%). However, the available information indicates that during the RIP 
these imports were made at prices only slightly lower to those of the Union industry 
(by 6,6%), but higher (by 9,8%) than those of the imports originating in the PRC.  

(87)  The market share of imports from the USA decreased by 15,1 percentage points over 
the  period  considered  (from  4,2%  to  3,6%).  The  available  information  indicates  that 
during  the  RIP  these  imports  were  made  at  prices  which  were  above  those  of  the 
Union industry and thus also substantially higher (by 31%) than those of the imports 
originating in the PRC. 

(88) 

In conclusion, among the biggest importers of tungsten carbide into the EU, the South 
Korean and US imports could not have a negative impact on the situation of the Union 
industry  mainly  because  of  their  price  levels  (similar  or  even  higher  than  the  EU 
industry prices) and in the case of US also because of the decreasing market share. 

Conclusion  

(89)  Due  to  the  effective  anti-dumping  duties  in  place,  the  Union  industry  was  able  to 

recover to some extent from the effects of past injurious dumping.  

(90)  Nevertheless, it cannot be concluded that the situation of the Union industry is secure. 
Although  almost  all  injury  indicators  relating  to  the  financial  performance  of  the 
Union  producers  –  such  as  profitability,  return  on  investments  and  cash-flow  –
improved during the first years of the period considered, the investigation also showed 
that during the RIP all injury indicators deteriorated. 

EN 

   EN 

 
 
(91)  Notwithstanding the fact that the decrease in demand during the RIP could be partially 
attributed to the economic crisis, the investigation carefully analysed the impact of low 
dumped priced exports from the PRC on the situation of the Union industry. 

(92)  As  shown  under  recital  (52)  volumes  of  imports  from  the  PRC  indeed  decreased 
between  2006  and  the  RIP.  The  prices  of  those  imports  decreased  by  14%  over  the 
same  period,  which  when  analysed  from  the  perspective  of  the  four  year  period 
considered  mirrors  the  development  of  the  Union  industry  prices.  It  is  notable, 
however, that the substantial price decrease of the Chinese dumped imports occurred 
between 2006 and 2007 (by 15%), i.e. way before economic crisis in the period when 
the Union industry was in the process of recovery. The prices of dumped imports from 
PRC  stabilized  thereafter  and  the  financial-crisis  related  decrease  appears  to  be 
limited.  The  timing  of  the  substantial  price  decrease  on  the  part  of  the  Chinese 
exporters  (before  crisis)  could  indicate  that  they  were  setting  off  more  concentrated 
and forceful price strategy in order to undercut the Union industry prices. Indeed the 
price  differential  between  Chinese  export  prices  and  those  of  the  Union  industry 
amounted to 27% and 22,8% in 2007 and 2008.  

(93) 

In 2008, export prices from China were 22,8% lower than those to the Union industry. 
During the RIP, the gap decreased to 15,7%. With the sharp decline in consumption, 
Union producers had to reduce their prices in order to keep market share. 

(94)  As  shown  under  recital  (57)  the  volume  of  imports  from  other  third  countries 
decreased  by  36%,  in  line  with  the  decrease  in  consumption.  Despite  an  increase  in 
market share the impact of those imports on the situation of the Union industry cannot 
be considered negative as demonstrated in recital (88) above.  

(95)  With regard to the viability of the Union industry it must be noted that the evidence 
collected  during  the  investigation  showed  that  the  Union  industry  has  been  able  to 
compete under normal market conditions against the imports from third countries and 
even  when  prices  were  lower  than  those  of  the  Union  producers  the  gap  was  not  as 
salient as with the prices from China as demonstrated in recitals (85) to (88) above.  

(96)  As a result of the amelioration of the Union industry situation in the years previous to 
the RIP, the industry invested in new cutting edge technology to produce the product 
concerned  from  scrap  and  partially  circumvent  the  distortions  in  place  on  the  raw 
materials. 

(97)  Taking into account the overall situation of the Union industry as well as the imports 
from  PRC  in  the  period  from  2006  to  RIP,  in  conclusion,  in  view  of  the  positive 
developments of some indicators pertaining to the Union Industry, it is considered that 
the Union industry did not suffer material injury during the period considered. It was 
therefore examined whether there was a likelihood of recurrence of injury should the 
measures be allowed to lapse. 

F. 

LIKELIHOOD OF RECURRENCE OF INJURY 

Preliminary remarks 

(98)  As described in recitals (89) to (97) the imposition of anti-dumping measures allowed 
the Union industry to recover from the injury suffered, but only to some extent. Indeed 
when  the  exceptional  levels  of  Union  consumption  experienced  during  most  of  the 
period considered significantly decreased during the RIP, the Union industry appeared 
in a fragile and vulnerable situation, still exposed to the injurious effect of the dumped 
imports from the PRC.  

EN 

   EN 

 
 
(99) 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  imports  from  the  country 
concerned were assessed in order to establish if there was a likelihood of recurrence of 
injury. 

Chinese export volumes and prices to third countries  

(100)  It  was  found  that  export  price  of  Chinese  sales  on  other  third  country  markets  were 
also lower to those charged to the EU (roughly between 10 and 20% lower in different 
years throughout the period considered, except in 2007). The Chinese exporter’s sales 
to non-EU countries were made in significant quantities, accounting for over 80% of 
its total export sales. Therefore, it was considered that, should measures lapse, Chinese 
exporting producers would have an incentive to shift significant quantities of exports 
from other third countries to the more attractive Union market. 

Spare capacity in the PRC market  

(101)  As  described  in  recitals  (34)  to  (42)(34),  data  collected  during  the  investigation 
showed  that  there  is  a  significant  spare  capacity  available  in  the  PRC.  Clear 
indications  were  found  pointing  to  the  conclusion  that  a  large  part  of  this  spare 
capacity could be used to increase exports to the Union in the absence of anti-dumping 
measures.  This  is  confirmed  in  particular  because  there  are  no  indications  that  third 
country markets or the domestic market could absorb any additional production in the 
PRC.  

Conclusion  

(102)  The  Union  industry  had  been  suffering  from  the  effects  of  the  Chinese  dumped 
imports for several years and is still currently in a fragile economic situation.  

(103)  As shown above, the Union industry managed to recover from the Chinese dumping 
practice  thanks  to  the  anti-dumping  measures  in  force.  During  the  RIP,  however,  it 
found itself in a difficult economic situation mainly due to the economic crisis. In this 
context,  should  the  Union  industry  be  exposed  to  increased  volumes  of  dumped  low 
priced imports from the country concerned, this would be likely to result in a further 
deterioration  of  its  sales,  market  share,  sales  prices,  as  well  as  a  consequent 
deterioration of its financial situation. 

(104)  In addition, as stated in recital (56) above, it was also found that the fact that the sales 
price  of  Chinese  producers  undercut  those  of  the  Union  industry  on  average  almost 
11% appears to indicate that in the absence of measures Chinese exporting producers 
are likely to export the product concerned to the Union market at prices considerably 
lower than those of the Union industry. 

(105)  In view of the findings made during the investigation, namely the spare capacity in the 
PRC,  the  distortions  found  in  the  market  for  raw  materials,  the  potential  of  the 
exporting  producers  in  the  country  concerned  to  raise  and/or  redirect  their  export 
volumes  to  the  EU  market,  the  pricing  behaviour  of  the  Chinese  in  other  third 
countries  and  the  attractiveness  of  the  more  lucrative  EU  market,  any  repeal  of  the 
measures would point to a likelihood of recurrence of injury. The latter would be even 
more serious taking into account the present economic crisis.  

I. 

UNION INTEREST 

Introduction 

(106)  In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether  the 
maintenance  of  the  existing  anti-dumping  measures  would  be  against  the  interest  of 

EN 

   EN 

 
 
the  Union  as  a  whole.  The  determination  of  the  Union  interest  was  based  on  an 
appreciation  of  the  various  interests  involved,  i.e.  those  of  the  Union  industry, 
importers and users.  

(107)  It should be recalled that, in the previous investigations, the adoption of measures was 
considered  not  to  be  against  the  interest  of  the  Union.  Furthermore,  the  fact  that  the 
present  investigation  is  a  review,  thus  analysing  a  situation  in  which  anti-dumping 
measures  have  already  been  in  place,  allows  the  assessment  of  any  undue  negative 
impact on the parties concerned by the current anti-dumping measures.  

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

Interest of the Union industry 

(109)  In view of the conclusions on the situation of the Union industry set out at recitals (89) 
to (97) above, and pursuant to the arguments relating to the analysis on the likelihood 
of recurrence of injury as explained in recitals (102) to (105), it can also be considered 
that  the  Union  industry  would  be  likely  to  experience  a  serious  deterioration  of  its 
financial situation in case the anti-dumping duties were allowed to expire.  

(110)  It  is  considered  that  the  continuation  of  measures  would  benefit  the  Union  industry 
which should then be able to increase sales volumes and, likely, sales prices thereby 
generating  the  necessary  return  level  which  would  enable  it  to  continue  to  invest  in 
new  technology  for  its  production  facilities.  By  contrast,  the  discontinuation  of  the 
measures  would  halt  the  recovery  of  the  Union  industry,  seriously  threatening  its 
viability, and, as a consequence, putting its existence at risk, thus reducing supply and 
competition on the market.  

Interest of importers/users 

(111)  One  user  came  forward  and  submitted  a  questionnaire  reply.  The  co-operating  user 
claimed  that  the  continuation  of  measures  would  not  have  a  negative  impact  on 
competition in the EU market, but that on the contrary, it would allow the downstream 
industry to have a wider range of suppliers competing at market prices.  

(112)  It  is  recalled  that,  in  the  previous  investigations,  it  was  found  that  the  impact  of  the 
imposition of measures would not be significant for the users21. Despite the existence 
of measures, importers/users in the Union were able to continue to source their supply, 
inter  alia,  from  the  PRC.  No  indications  were  brought  forward  whether  there  have 
been  difficulties  in  finding  other  sources.  It  is  therefore  concluded  that  the 
maintenance  of  the  anti-dumping  measures  is  not  likely  to  have  a  serious  effect  on 
importers/users in the Union. 

Conclusion  

(113) 

The  effects  of  the  continuation  of  measures  can  be  expected  to  assist  the  Union 
industry,  with  consequent  beneficial  effects  on  the  competitive  conditions  on  the 
Union  market  and  the  reduction  of  the  threat  of  closures  and  reductions  in 
employment.  

21 

See recital (101) of Commission Regulation (EC) No 2268/2004 (OJ L 395/66, 31.12.2004)  

EN 

   EN 

 
 
                                                 
(114) 

Furthermore,  the  continuation  of  the  measures  can  be  expected  to  benefit  the 

users/importers by maintaining a wide range of suppliers in the EU market. 

(115) 

Given  the  above  analysis,  it  is  concluded  that  the  continuation  of  measures  is  not 

against the Union interest. 

J. 

ANTI-DUMPING MEASURES 

(116)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be maintained. They 
were  also  granted  a  period  to  submit  comments  subsequent  to  that  disclosure.  The 
submissions and comments were duly taken into consideration where warranted.  

(117)  It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation,  the  anti-dumping  measures  applicable  to  imports  of  tungsten  carbide, 
tungsten carbide simply mixed with metallic powder and fused tungsten, originating in 
PRC  should  be  maintained.  It  is  recalled  that  these  measures  consist  of  ad  valorem 
duties. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

3. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  tungsten  carbide, 
tungsten  carbide  simply  mixed  with  metallic  powder  and  fused  tungsten  carbide 
currently  falling  within  CN  codes  2849  90  30  and  ex  3824  30  0022  (TARIC  code 
3824 30 00 10) and originating in the People’s Republic of China, 

The rate of duty applicable to the net free-at-Union-frontier price, before duty, for the 
products described in paragraph 1 shall be 33%. 

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

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

22 

The particles are irregular and not free flowing in contrast to “ready to press powder” particles, which 
are 

spherical or granular shaped, homogeneous and free flowing.  
The lack of flowability can be measured and established by using a calibrated funnel e.g. a HALL flow meter  
according to ISO standard 4490.  

EN 

   EN