Proposal for a COUNCIL REGULATION extending the definitive anti-dumping duty imposed by Council Regulation (EC) No 91/2009 on imports of certain iron or steel fasteners originating in the People's Republic of China to imports of certain iron or steel fasteners consigned from Malaysia, whether declared as originating in Malaysia or not
Date: 2011-06-27
Institutions: European Commission
Subjects: China, Malaysia, anti-dumping measure, iron, metal product, steel

EUROPEAN COMMISSION 

Brussels, 27.6.2011 
COM(2011) 390 final 

2011/0171 (NLE) 

Proposal for a 

COUNCIL REGULATION 

extending the definitive anti-dumping duty imposed by Council Regulation (EC) 
No 91/2009 on imports of certain iron or steel fasteners originating in the People's 
Republic of China to imports of certain iron or steel fasteners consigned from Malaysia, 
whether declared as originating in Malaysia or not 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 
30 November  2009  on  protection  against  dumped  imports  from  countries  not 
members of the European Community ('the basic Regulation') in the investigation of 
possible circumvention of the anti-dumping measures imposed by Council Regulation 
(EC)  No  91/2009  on  imports  of  certain  iron  or  steel  fasteners  originating  in  the 
People's Republic of China ('the PRC') by imports consigned from Malaysia. 

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 and in particular Article 
13 thereof. 

Existing provisions in the area of the proposal 

The  measures  currently  in  force  were  imposed  by  Council  Regulation  (EC)  No 
91/2009 imposing a  definitive anti-dumping duty on imports of  certain iron or steel 
fasteners originating in the People's Republic of China. 

Consistency with the other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION  OF 
ASSESSMENT 

INTERESTED 

PARTIES  AND 

IMPACT 

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. 

EN 

2 

   EN 

 
 
 
 
 
 
 
 
 
 
3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

On 28 October 2010 the Commission, by Regulation (EU) No 966/2010, initiated ex 
officio  an  investigation  concerning  the  possible  circumvention  of  anti-dumping 
measures imposed by Council Regulation (EC) No 91/2009 on imports of certain iron 
or  steel  fasteners  originating  in  the  PRC  by  imports  consigned  from  Malaysia, 
whether declared as originating in Malaysia or not.  

The  investigation  was  initiated  as  the  Commission  had  at  its  disposal  prima  facie 
evidence that the anti-dumping measures on imports of certain iron or steel fasteners 
were being circumvented by means of transhipment via Malaysia.  

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  findings  of  the 
investigation, which has confirmed that transhipment of certain Chinese-origin iron or 
steel  fasteners  is  taking  place  via  Malaysia  and  that  all  other  criteria  for  the 
establishment of circumvention as set out in Article 13(1) of the basic Regulation are 
met.  

It is therefore proposed to extend the anti-dumping measures in force on certain iron 
or  steel  fasteners  originating  in  the  PRC  to  imports  of  the  same  product  consigned 
from Malaysia. The duty corresponds to the country-wide duty on imports of certain 
iron or steel fasteners from the PRC (85%). The duty shall be levied from the date of 
initiation of the investigation. 

Several  cooperating  producers  in  Malaysia  requested  exemption  from  the  possible 
extended measures. For the companies which did not fully cooperate or were found to 
be  engaged  in  circumvention  practises,  it  is  proposed  to  deny  exemptions.  For  the 
companies  which  cooperated  fully  and  were  found  not  to  be  circumventing  the 
measures, it is proposed to grant exemptions.  

The  relevant  Council  Regulation  should  be  published  in  the  Official  Journal  of  the 
European Union no later than 26 July 2011. 

Legal basis 

Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against 
dumped  imports  from  countries  not  members  of  the  European  Community  and  in 
particular Article 13 thereof.  

Subsidiarity principle 

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

Proportionality principle 

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

EN 

3 

   EN 

 
 
 
 
 
The form of action is described in the above-mentioned basic Regulation and leaves 
no scope for national decision. 

Indication  of  how  the  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 above-mentioned 
basic Regulation does not provide for alternative options. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

EN 

4 

   EN 

 
 
 
 
 
 
 
2011/0171 (NLE) 

Proposal for a 

COUNCIL REGULATION 

extending the definitive anti-dumping duty imposed by Council Regulation (EC) 
No 91/2009 on imports of certain iron or steel fasteners originating in the People's 
Republic of China to imports of certain iron or steel fasteners consigned from Malaysia, 
whether declared as originating in Malaysia or not 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 (the ‘basic 
Regulation’), and in particular Article 13 thereof, 

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

Whereas: 

1. 

PROCEDURE 

1.1. 

Existing measures 

(1) 

By  Regulation  (EC)  No  91/20092,  ('the  original  Regulation’),  the  Council  imposed  a 
definitive  anti-dumping  duty  of  85%  on  imports  of  certain  iron  or  steel  fasteners 
originating  in  the  People’s  Republic  of  China  ('the  PRC'  or  'China')  for  all  other 
companies  than  the  ones  mentioned  in  Article  1(2)  and  Annex  1  of  that  Regulation. 
These  measures  will  hereinafter  be  referred  to  as  'the  measures  in  force'  and  the 
investigation  that  led  to  the  measures  imposed  by  the  original  Regulation  will  be 
hereinafter referred to as 'the original investigation'. 

1.2. 

Ex-officio initiation 

(2) 

Following  the  original  investigation,  evidence  at  the  disposal  of  the  Commission 
indicated that the anti-dumping measures on imports of certain iron or steel fasteners 
originating  in  the  People's  Republic  of  China  (the  product  concerned)  are  being 
circumvented by means of transhipment via Malaysia.  

(3) 

Prima  facie  evidence  at  the  Commission's  disposal  showed  that,  following  the 
imposition  of  the  measures  in  force,  a  significant  change  in  the  pattern  of  trade 

1 
2 

OJ L 343, 22.12.2009, p. 51. 
OJ L 29, 31.1.2009, p. 1. 

EN 

5 

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(4) 

(5) 

(6) 

involving exports from the PRC and Malaysia to the Union occurred, which seemed to 
be caused by the imposition of the measures in force. There was insufficient due cause 
or justification other than the imposition of the measures in force for such a change.  

Furthermore, the evidence pointed to the fact that the remedial effects of the measures 
in  force  were  being  undermined  both  in  terms  of  quantity  and  price.  The  evidence 
showed  that  these  increased  imports  from  Malaysia  were  made  at  prices  below  the 
non-injurious price established in the original investigation. 

Finally, there was evidence that prices of certain iron or steel fasteners consigned from 
Malaysia were dumped in relation to the normal value established for the like product 
during the original investigation. 

Having  determined,  after  consulting  the  Advisory  Committee,  that  sufficient  prima 
facie evidence existed for the initiation of an investigation pursuant to Article 13 of the 
basic Regulation, the Commission, on an ex-officio basis, initiated an investigation by 
Commission  Regulation (EU) No 966/20103 ('the  initiating Regulation’). Pursuant to 
Articles  13(3)  and  14(5)  of  the  basic  Regulation,  the  Commission,  by  the  initiating 
Regulation, also directed the customs authorities to register imports of certain iron or 
steel fasteners consigned from Malaysia. 

1.3. 

Investigation 

(7) 

(8) 

(9) 

The  Commission  officially  advised  the  authorities  of  the  PRC  and  Malaysia,  the 
exporting producers and traders in those countries, the importers in the Union known 
to  be  concerned  and  the  Union  industry  of  the  initiation  of  the  investigation. 
Questionnaires were sent to the producers/exporters in the PRC and Malaysia known 
to the Commission or which made themselves known within the deadlines specified in 
recital 19 of the initiating Regulation. Questionnaires were also sent to importers in the 
Union.  Interested  parties  were  given  the  opportunity  to  make  their  views  known  in 
writing and to request a hearing within the time limit set in the initiating Regulation. 

Nineteen  exporting  producers  in  Malaysia,  three  groups  of  exporting  producers  in 
China  and  three  unrelated  importers  in  the  Union  made  themselves  known.  Several 
other companies contacted the Commission but claimed that they were not involved in 
the production or export of the product under investigation.  

The following companies submitted replies to the questionnaires and verification visits 
were subsequently carried out at their premises, with the exception of Menara Kerjaya 
Fasteners  Sdn.  Bhd,  TR  Formac  Sdn.  Bhd.  and  Excel  Fastener  Manufacturing  Sdn. 
Bhd:  

Exporting producers in Malaysia: 

– 

– 

Sofasco Industries (M) Sdn. Bhd, Penang, 

Tigges Fastener Technology (M) Sdn. Bhd, Ipoh, 

–  MCP Precision Sdn. Bhd, Penang, 

3 

OJ L 282, 28.10.2010, p. 29. 

EN 

6 

   EN 

 
                                                 
– 

– 

HBS Fasteners Sdn. Bhd, Klang, 

TZ Fasteners (M) Sdn. Bhd, Klang, 

–  Menara Kerjaya Fasteners Sdn. Bhd, Penang, 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Chin Well Fasteners Company Sdn. Bhd, Penang,  

Acku Metal Industries (M) Sdn. Bhd, Penang, 

Grand Fasteners Sdn. Bhd, Klang,  

Jinfast Industries Sdn. Bhd, Penang, 

Andfast Malaysia Sdn. Bhd, Ipoh, 

ATC Metal Industrial Sdn. Bhd, Klang, 

Pertama Metal Industries Sdn. Bhd, Shah Alam, 

Excel Fastener Manufacturing Sdn. Bhd, Ipoh, 

TI Metal Forgings Sdn. Bhd, Ipoh, 

TR Formac (Malaysia) Sdn. Bhd, Klang, 

United Bolt and Nut Sdn. Bhd, Seremban, 

Power Steel and Electro Plating Sdn. Bhd, Klang, 

KKC Fastener Industry Sdn. Bhd, Melaka. 

1.4. 

Investigation period 

(10)  The  investigation  period  covered  the  period  from  1  January  2008  to  30  September 
2010  (the  ‘IP’).  Data  was  collected  for  the  IP  to  investigate  inter  alia  the  alleged 
change in the pattern of trade. For the period 1 October 2009  to 30 September 2010 
more detailed data were collected in order to examine the possible undermining of the 
remedial effect of the measures in force and existence of dumping.  

2. 

RESULTS OF THE INVESTIGATION 

2.1. 

General considerations 

(11) 

In  accordance  with  Article  13(1)  of  the  basic  Regulation,  the  assessment  of  the 
existence of circumvention was made by analysing successively whether there was a 
change  in  the  pattern  of  trade  between  third  countries  and  the  Union;  if  this  change 
stemmed from a practice, process or work for which there was insufficient due cause 
or economic justification other than the imposition of the duty; if there was evidence 
of injury or that the remedial effects of the duty were being undermined in terms of the 
prices  and/or  quantities  of  the  like  product;  and  whether  there  was  evidence  of 
dumping in relation to the normal values previously established for the like product, if 
necessary in accordance with the provisions of Article 2 of the basic Regulation. 

EN 

7 

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2.2. 

Product concerned and the like product 

(12)  The product concerned is as defined in the original investigation: Certain iron or steel 
fasteners, other than of stainless steel, i.e. wood screws (excluding coach screws), self-
tapping screws, other screws and bolts with heads (whether or not with their nuts or 
washers, but excluding screws turned from bars, rods, profiles or wire, of solid section, 
of  a  shank  thickness  not  exceeding  6  mm  and  excluding  screws  and  bolts  for  fixing 
railway  track  construction  material),  and  washers,  originating  in  the  PRC,  currently 
falling within CN codes 7318 12 90, 7318 14 91, 7318 14 99, 7318 15 59, 7318 15 69, 
7318 15 81, 7318 15 89, ex 7318 15 90, ex 7318 21 00 and ex 7318 22 00.  

(13)  The product under investigation is the same as that defined in the previous recital, but 
consigned from Malaysia, whether declared as originating in Malaysia or not.  

(14)  The investigation showed that iron or steel fasteners, as defined above, exported to the 
Union from the PRC and those consigned from Malaysia to the Union have the same 
basic physical and technical characteristics and have the same uses, and are therefore 
to  be  considered  as  like  products  within  the  meaning  of  Article  1(4)  of  the  basic 
Regulation. 

2.3. 

Degree of co-operation and determination of the trade volumes  

(15)  As stated in recital (9), nineteen exporting producers in Malaysia and three exporting 

producers in China co-operated by submitting questionnaire replies.  

Malaysia 

(16)  After  the  submission  of  its  questionnaire  reply,  one  Malaysian  company  notified  the 

Commission that it had ceased its activities and therefore it withdrew its cooperation.  

(17) 

In  the  case  of  several  other  Malaysian  companies  the  application  of  Article  18(1)  of 
the  basic  Regulation  was  found  to  be  warranted  for  the  reasons  explained  below  in 
recitals (32) to (60).  

(18)  The  cooperating  Malaysian  exporting  producers  covered  55%  of  the  total  Malaysian 
exports  of  the  product  under  investigation  to  the  Union  in  the  IP  as  reported  in 
COMEXT. The overall export volumes were based on COMEXT. 

People's Republic of China 

(19)  There was  a low level of co-operation  by  producers/exporters in the PRC, with only 
three  exporters/producers  submitting  a  questionnaire  reply.  Moreover,  none  of  these 
companies exported the product concerned to the Union or to Malaysia. Therefore, on 
the  basis  of  the  information  submitted  by  the  co-operating  parties  no  reasonable 
determination could be made as to export volumes of the product concerned from the 
PRC.  

(20)  Given the above, findings in respect of imports of certain iron or steel fasteners into 
the Union and exports of the product concerned from the PRC to Malaysia had to be 
made partially on the basis of facts available in accordance with Article 18 of the basic 
Regulation. COMEXT data were used to determine overall import volumes from the 
PRC  to  the  Union.  Chinese  and  Malaysian  national  statistics  were  used  for  the 

EN 

8 

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determination of the overall exports to Malaysia from the PRC. Data were also cross-
checked  with  detailed  import-  and  export  data  that  were  provided  by  the  customs 
authorities of Malaysia.  

(21)  The  import  volume  recorded  in  Malaysian  and  Chinese  statistics  covered  a  larger 
product  group  than  the  product  concerned  or  the  product  under  investigation. 
However,  in  view  of  COMEXT  data  and  verified  data  regarding  Chinese  and 
Malaysian  fastener  producers,  it  could  be  established  that  a  significant  part  of  this 
import volume covered the product concerned. Accordingly, these data could be used 
to establish any change in the pattern of trade and they could be cross-checked with 
other  data  such  as  the  data  provided  by  the  cooperating  exporting  producers  and 
importers.  

2.4. 

Change in the pattern of trade 

Imports of certain iron or steel fasteners into the Union 

(22) 

Imports  of  the  product  concerned  from  China  to  the  Union  dropped  dramatically 
subsequent to the imposition of the original measures in January 2009.  

(23)  On the other hand, total imports of the product under investigation from Malaysia to 
the  Union  increased  significantly  in  2009  and  2010.  Both  COMEXT  data  and  the 
export data provided by the cooperating companies show that exports from Malaysia 
to the Union increased in those years whereas they were stable in previous years.  

(24)  Table  1  shows  import  quantities  of  certain  iron  or  steel  fasteners  from  the  PRC  and 

Malaysia into the Union since the imposition of the measures in 2009: 

Table 1: Evolution of imports of certain iron or steel fasteners to the Union since the 
imposition of the measures  

Import volumes given in tonnes.

2008 

2009 

1.10.2009-30.09.2010 

PRC 
Share of total imports  
Malaysia 
Share of total imports 

432.049 64.609
82.2% 38.0%
8.791 31.050
1.7% 18.3%

Source: COMEXT, Malaysian, Chinese statistics  

27.000 
15.4% 
89.000 
50.9% 

(25)  The  data  above  clearly  show  that  since  2009  Malaysian  exporters  have  significantly 
outsold  and  to  some  extent  replaced  the  Chinese  exporters  on  the  Union  market  in 
terms  of  volume.  Since  the  imposition  of  the  measures,  the  decrease  of  Chinese 
imports into the EU has been significant (94%).  

Chinese exports to Malaysia 

(26)  A  dramatic  increase  of  exports  of  fasteners  can  also  be  observed  from  the  PRC  to 
Malaysia  within  the  same  period:  from  a  relatively  small  amount  in  2008  (8.829 
tonnes) they increased to 89.471 tonnes in the IP.  

Table 2: Import of fasteners from China into Malaysia from 2008 

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9 

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2008 

2009 

1.10.2009-
30.09.2010 

Import (MT) 

8.829 

61.973 

89.471 

Yearly change (%) 

600% 

Index (2008=100) 

100 

700 

45% 

1013 

Source: Malaysian customs statistics 

(27)  To  establish  the  trend  of  the  China  to  Malaysia  trade  flow  of  certain  iron  or  steel 
fasteners,  both  Malaysian  and  Chinese  statistics  were  considered.  Both  of  these  data 
are  only  available  at  a  higher  product  group  level  than  the  product  concerned. 
However,  in  view  of  COMEXT  data  and  verified  data  regarding  Chinese  and 
Malaysian  fastener  producers,  it  was  established  that  a  significant  part  covered  the 
product concerned, so these data could be taken into account.  

Production volumes in Malaysia 

(28)  The  evolution  of  the  total  production  volume  of  cooperating  producers  in  Malaysia 
had remained relatively stable prior to the imposition of measures in 2009. Malaysian 
producers however have increased their output since then considerably.  

Table 3: Production of the product under investigation of the cooperating companies 
in Malaysia 

2008 

2009 

1.10.2009-
30.09.2010 

Production volume (MT)

38.763

33.758

61.262 

Source: Information provided by the cooperating producers  

2.5. 

Conclusion on the change in the pattern of trade 

(29)  The  overall  decrease  of  Chinese  exports  to  the  Union  as  from  2009  and  the  parallel 
increase of exports from Malaysia and of exports from the PRC to Malaysia after the 
imposition  of  the  original  measures  constituted  a  change  in  the  pattern  of  trade 
between  the  above  mentioned  countries  on  the  one  hand  and  the  Union  on  the  other 
hand.  

2.6. 

Nature of the circumvention practice 

(30)  Article  13(1)  of  the  basic  Regulation  requires  that  the  change  in  the  pattern  of  trade 
stems  from  a  practice,  process  or  work  for  which  there  is  insufficient  due  cause  or 
economic justification other than the imposition of the duty. The practice, process or 
work includes, inter alia, the consignment of the product subject to measures via third 
countries and the assembly of parts by an assembly operation in the Union or a third 
country.  For  this  purpose  the  existence  of  assembly  operations  is  determined  in 
accordance with Article 13(2) of the basic Regulation. 

EN 

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Transhipment 

(31)  The  investigation  revealed  that  some  importers  in  the  Union  had  sourced  Chinese 
origin  fasteners  from  Malaysian  exporters  who  had  not  co-operated  with  the  present 
investigation.  This  information  was  cross-checked  with  Malaysian  trade  databases 
which  showed  that  at  least  some  of  the  fasteners  exported  by  these  non-cooperating 
companies were indeed produced in the PRC.  

(32) 

(33) 

In  addition,  as  set  out  in  detail  in  recitals  (52)  to  (58)  below,  it  was  found  that  a 
number of the co-operating Malaysian producers provided misleading information, in 
particular  regarding  the  relationship  to  Chinese  manufacturers,  imports  of  finished 
goods from China and the origin of exports of the product under investigation to the 
Union. Some of them were found to export Chinese origin iron or steel fasteners to the 
Union. This is also confirmed by the findings with regard to the change in the pattern 
of trade as described above in recital (29). 

In 2009 the European Anti-fraud Office (OLAF) started an investigation into alleged 
transhipment  of  the  same  product  through  Malaysia.  Moreover,  the  investigation 
revealed  that  the  Malaysian  authorities  have  carried  out  investigations  into  alleged 
circumvention  practices  at  the  same  time  and  concluded  that  several  companies, 
mainly  traders,  committed  fraud  by  falsifying  the  origin  of  certain  iron  or  steel 
fasteners imported from the PRC to Malaysia when re-exporting the product. 

(34)  The existence of transhipment of Chinese-origin products via Malaysia was therefore 

confirmed. 

Assembly and/or completion operations  

(35)  One company inspected was not manufacturing fasteners from raw material (i.e. wire 
rod)  but  was  completing  fasteners  from  semi-finished  blanks,  (i.e.  wire  rod  that  had 
been  cut  and  headed,  but  not  yet  threaded,  heat  treated  or  plated).  However,  this 
company did not export during the IP. Another company was manufacturing fasteners 
mainly from wire rod, but also some from semi-finished blanks. For this company, it 
was established that no circumvention took place in the light of the provisions set out 
in Article 13(2) of the basic Regulation, as set out in more detail in recitals (62) and 
(63) below.  

2.7. 

Insufficient due cause or economic justification other than the imposition of the 
anti-dumping duty 

(36)  The investigation did not bring to light any other due cause or economic justification 
for  the  transhipment  than  the  avoidance  of  the  measures  in  force  on  certain  iron  or 
steel  fasteners  originating  in  the  PRC.  No  elements  were  found,  other  than  the  duty, 
which  could  be  considered  as  a  compensation  for  the  costs  of  transhipment,  in 
particular regarding transport  and  reloading,  of  the  product  concerned  from  the  PRC 
via Malaysia.  

2.8. 

Undermining of the remedial effect of the anti-dumping duty  

(37)  To  assess  whether  the  imported  products  had,  in  terms  of  quantities  and  prices, 
undermined the remedial effects of the measures in force on imports of certain iron or 
steel  fasteners  originating  in  the  PRC,  verified  data  from  the  cooperating  exporting 

EN 

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producers  and  COMEXT  data  were  used  as  the  best  data  available  concerning 
quantities  and  prices  of  exports  by  non-cooperating  companies.  The  prices  so 
determined  were  compared  to  the  injury  elimination  level  established  for  Union 
producers in recital (226) of the original Regulation. 

(38)  The  increase  of  imports  from  Malaysia  was  considered  to  be  significant  in  terms  of 
quantities. The estimated Union consumption in the IP gives a similar indication about 
the  significance  of  these  imports.  The  comparison  of  the  injury  elimination  level  as 
established in the original Regulation and the  weighted average export price showed 
significant  underselling.  It  was  therefore  concluded  that  the  remedial  effects  of  the 
measures in force are being undermined both in terms of quantities and prices. 

2.9. 

Evidence of dumping  

(39)  Finally,  in  accordance  with  Article  13(1)  and  (2)  of  the  basic  Regulation  it  was 
examined  whether  there  was  evidence  of  dumping  in  relation  to  the  normal  value 
previously established for the like products. 

(40) 

In the original Regulation the normal value was established on the basis of prices in 
India,  which  in  that  investigation  was  found  to  be  an  appropriate  market  economy 
analogue country for the PRC. It was considered appropriate to use the normal value 
as previously established in line with Article 13(1) of the basic Regulation.  

(41)  A significant part of Malaysian exports were covered by non-cooperating exporters or 
by  cooperating  exporters  that  had  provided  misleading  information.  For  this  reason, 
for establishing the export prices from Malaysia, it was decided to base them on facts 
available, i.e. on the average export price of certain iron or steel fasteners during the IP 
as reported in COMEXT.  

(42)  For the purpose of a fair comparison between the normal value and the export price, 
due  allowance,  in  the  form  of  adjustments,  was  made  for  differences  which  affect 
prices  and  price  comparability  in  accordance  with  Article  2(10)  of  the  basic 
Regulation.  Accordingly,  adjustments  were  made  for  differences  in  indirect  taxes, 
transport and insurance costs based on the average costs of the cooperating Malaysian 
producers/exporters in the IP.  

(43) 

In  accordance  with  Articles  2(11)  and  2(12)  of  the  basic  Regulation,  dumping  was 
calculated  by  comparing  the  weighted  average  normal  value  as  established  in  the 
original Regulation and the weighted average export prices during this investigation’s 
IP, expressed as a percentage of the CIF price at the Union frontier duty unpaid. 

(44)  The  comparison  of  the  weighted  average  normal  value  and  the  weighted  average 

export prices so established showed dumping. 

3. 

MEASURES 

(45)  Given the above, it was concluded that the  definitive  anti-dumping duty imposed on 
imports of certain iron or steel fasteners originating in the PRC was circumvented by 
transhipment from Malaysia pursuant to Article 13(1) of the basic Regulation. 

(46) 

In  accordance  with  the  first  sentence  of  Article  13(1)  of  the  basic  Regulation,  the 
measures in force on imports of the product concerned originating in the PRC, should 

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(47) 

(48) 

be  extended  to  imports  of  the  same  product  consigned  from  Malaysia,  whether 
declared as originating in Malaysia or not. 

In  particular  in  the  light  of  the  low  level  of  co-operation  from  Chinese  exporting 
producers, the measure to be extended should be the one established in Article 1(2) of 
Regulation  (EC)  No  91/2009  for  "all  other  companies",  which  is  a  definitive  anti-
dumping duty of 85% applicable to the net, free-at-Union-frontier price, before duty. 

In accordance with Articles 13(3) and 14(5) of the basic Regulation, which provides 
that  any  extended  measure  should  apply  to  imports  which  entered  the  Union  under 
registration imposed by the initiating Regulation, duties should be collected on those 
registered imports of certain iron or steel fasteners consigned from Malaysia. 

4. 

REQUESTS FOR EXEMPTION 

(49)  The  nineteen  companies  in  Malaysia  submitting  a  questionnaire  reply  requested  an 
exemption  from  the  possible  extended  measures  in  accordance  with  Article  13(4)  of 
the basic Regulation. 

(50)  As explained in recital (16), one of these companies subsequently ceased co-operation 

and withdrew its request for an exemption.  

(51)  Two companies were found not to export the product during the IP and no conclusions 
could be drawn as to the nature of their operations. Therefore, an exemption to these 
companies can not be granted at this stage. However, should it appear, after extension 
of the anti-dumping measures in force, that the conditions in Article 11(4) and 13(4) of 
the  basic  Regulation  are  fulfilled,  both  companies  may  request  a  review  of  their 
situation. 

(52)  One of these companies questioned, since there had not been a request from the Union 
industry  for  registration,  whether  Article  14(5)  second  sentence  of  the  basic 
Regulation had been respected when the registration of the imports was instructed in 
the  initiating  Regulation.  However,  this  was  an  anti-circumvention  investigation 
initiated  by  the  Commission  ex  officio  on  the  basis  of  Article  13(3)  in  combination 
with the first sentence of Article 14(5) of the basic Regulation. The second sentence of 
Article 14(5) of the basic Regulation is therefore not relevant for this case. Any other 
interpretation  would  remove  the  effet  utile  of  the  fact  that  Article  13(3)  of  the  basic 
Regulation  provides  that  the  Commission  can  ex  officio  investigate  possible 
circumvention.  

(53)  The  same  company  also  alleged  that  consultation  of  the  Advisory  Committee,  as  set 
out in the first sentence of Article 14(5) of the basic Regulation, would not have taken 
place.  However,  in  accordance  with  Article  13(3)  and  Article  14(5)  of  the  basic 
Regulation,  the  initiation  was  instigated  by  the  Commission  after  consultation  of  the 
Advisory  Committee,  even  though  this  was  not  explicitly  mentioned  in  the  initiating 
Regulation.  

(54)  Seven  companies  were  found  to  have  provided  false  or  misleading  information.  In 
accordance with Article 18(4) of the basic Regulation, these companies were informed 
of  the  intention  to  disregard  the  information  submitted  by  them  and  were  granted  a 
time-limit to provide further explanations.  

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(55)  Further explanations by these companies were not such that this would lead to change 
the  conclusion  that  these  companies  have  misled  the  investigation.  Therefore  in 
accordance  with  Article  18(1)  of  the  basic  Regulation,  findings  with  regard  to  these 
companies were based on facts available.  

(56)  Two of these seven companies were found to have hidden imports of finished goods 
from the PRC. One of these companies had also falsified invoices. Another company 
in  Malaysia  manufacturing  and  exporting  fasteners  that  requested  an  exemption 
appeared to be related to this company.  

(57)  Two  other  companies  were  found  to  have  hidden  their  relationship  to  a  Chinese 

manufacturer of certain iron or steel fasteners.  

(58)  Finally,  two  other  companies  were  found  to  have  hidden  their  relationship  to  each 
other, not having the production capacity to produce what they export and impeded the 
investigation by not providing necessary information.  

(59) 

In  view  of  the  findings  with  regard  to  the  change  in  the  pattern  of  trade  and 
transhipment practises, as set out in recitals (22) to (34) above, and taking into account 
the nature of the misleading information as set out in recitals (56) to (58) above, the 
exemptions as requested by these seven companies could, in accordance with Article 
13(4) of the basic Regulation, not be granted.  

(60)  One company could not show any fastener production facility and refused access to its 
accounts.  Furthermore,  evidence  of  transhipment  practices  during  the  IP  was  found. 
Therefore  the  exemption  could,  in  accordance  with  Article  13(4)  of  the  basic 
Regulation, not be granted.  

(61)  The remaining eight Malaysian exporting producers were found not to be engaged in 

circumvention practices and therefore exemptions to these companies can be granted. 

(62)  One of these eight companies was established after the imposition of the measures in 
force by its Chinese parent company, which is subject to these measures. The Chinese 
parent  company  has  gradually  transferred  part  of  its  machinery  to  Malaysia  for  the 
purpose of serving the EU market through Malaysia. In the start-up phase the company 
produced  some  fasteners  from  semi-finished  products  that  were  shipped  from  its 
Chinese parent company for completion. At a later stage, but still in the IP, when more 
machinery  was  transferred,  fasteners  were  mainly  produced  from  the  raw  material 
steel wire rod, also shipped from its Chinese parent company.  

(63) 

Initially  it  was  considered  that  an  exemption  to  this  company  should  be  denied. 
However, in view of the comments received after disclosure, in particular with regard 
to the value added to the product in Malaysia, it was concluded that the company was 
not  engaged  in  circumvention  practices.  Accordingly,  an  exemption  to  this  company 
can be granted.  

(64)  Another  of  these  eight  companies  is  also  related  to  a  company  in  the  PRC  that  is 
subject to the original measures. However this Malaysian company was established in 
1998 by its Taiwanese owners who only at a later stage, but still before the measures 
against  the  PRC  came  into  force,  established  the  subsidiary  in  the  PRC.  There  is  no 
evidence that this relationship was established or used to circumvent the measures in 

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place  on  imports  originating  in  the  PRC  in  the  sense  of  Article  13(4)  of  the  basic 
Regulation.  

(65)  It  is  considered  that  special  measures  are  needed  in  this  case  in  order  to  ensure  the 
proper application of such exemptions. These special measures are the requirement of 
the  presentation  to  the  Customs  authorities  of  the  Member  States  of  a  valid 
commercial invoice, which shall conform to the requirements set out in the Annex to 
this Regulation. Imports not accompanied by such an invoice shall be made subject to 
the extended anti-dumping duty. 

(66)  Other producers which did not come forward in this proceeding and did not export the 
product  under  investigation  during  the  IP,  which  intend  to  lodge  a  request  for  an 
exemption from the extended anti-dumping duty pursuant to Articles 11(4) and 13(4) 
of the basic Regulation will be required to complete a questionnaire in order to enable 
the Commission to assess such a request. The Commission would normally also carry 
out an on-spot verification visit. Provided that the conditions set in Articles 11(4) and 
13(4) of the basic Regulation are met, an exemption may be warranted.  

(67)  Where  an  exemption  is  warranted,  the  Commission  will,  after  consultation  of  the 
Advisory  Committee,  propose  the  amendment  of  this  Regulation  accordingly. 
Subsequently, any exemption granted will be monitored to ensure compliance with the 
conditions set therein. 

5. 

DISCLOSURE 

(68)  All interested parties were informed of the essential facts and considerations leading to 
the above conclusions and were invited to comment. The oral and written comments 
submitted  by  the  parties  were  considered.  With  the  exception  of  the  comments 
received  from  a  company  as  set  out  in  recitals  (62)  and  (63)  above,  none  of  the 
arguments presented gave rise to a modification of the definitive findings,  

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  The  definitive  anti-dumping  duty  applicable  to  'all  other  companies'  imposed  by  Article 
1(2) of Regulation (EC) No 91/2009 on imports of certain iron or steel fasteners, other than of 
stainless steel, i.e. wood screws (excluding coach screws), self-tapping screws, other screws 
and bolts with heads (whether or not with their nuts or washers, but excluding screws turned 
from bars, rods, profiles or wire, of solid section, of a shank thickness not exceeding 6 mm 
and excluding screws and bolts for fixing railway track construction material), and washers, 
originating in the People's Republic of China, is hereby extended to imports of certain iron or 
steel fasteners, other than of stainless steel, i.e. wood screws (excluding coach screws), self-
tapping screws, other screws and bolts with heads (whether or not with their nuts or washers, 
but  excluding  screws  turned  from  bars,  rods,  profiles  or  wire,  of  solid  section,  of  a  shank 
thickness  not  exceeding  6  mm  and  excluding  screws  and  bolts  for  fixing  railway  track 
construction material), and washers, consigned from Malaysia whether declared as originating 
in Malaysia or not, currently falling within CN codes ex 7318 12 90, ex 7318 14 91, ex 7318 
14 99, ex 7318 15 59, ex 7318 15 69, ex 7318 15 81, ex 7318 15 89, ex 7318 15 90, ex 7318 
21 00 and ex 7318 22 00 (TARIC codes 7318 12 90 11, 7318 12 90 91, 7318 14 91 11, 7318 
14 91 91, 7318 14 99 11, 7318 14 99 91, 7318 15 59 11, 7318 15 59 61, 7318 15 59 81, 7318 

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15 69 11, 7318 15 69 61, 7318 15 69 81, 7318 15 81 11, 7318 15 81 61, 7318 15 81 81, 7318 
15 89 11, 7318 15 89 61, 7318 15 89 81, 7318 15 90 21, 7318, 15 90 71, 7318 15 90 91, 7318 
21  00  31,  7318  21  00  95,  7318  22  00  31  and  7318  22  00  95),  with  the  exception  of  those 
produced by the companies listed below: 

Company 

TARIC additional 
code 

Acku Metal Industries (M) Sdn. Bhd  

Chin Well Fasteners Company Sdn. Bhd 

Jinfast Industries Sdn. Bhd  

Power Steel and Electroplating Sdn. Bhd  

Sofasco Industries (M) Sdn. Bhd 

Tigges Fastener Technology (M) Sdn. Bhd 

TI Metal Forgings Sdn. Bhd  

United Bolt and Nut Sdn. Bhd  

B123 

B124 

B125 

B126 

B127 

B128 

B129 

B130 

2.  The  application  of  exemptions  granted  to  the  companies  specifically  mentioned  in 
paragraph 1 of this Article or authorised by the Commission in accordance with Article 2(2) 
shall  be  conditional  upon  presentation  to  the  customs  authorities  of  the  Member  States  of  a 
valid commercial invoice, which shall conform to the requirements set out in the Annex. If no 
such  invoice  is  presented,  the  anti-dumping  duty  as  imposed  by  paragraph  1  of  this  Article 
shall apply. 

3. The duty extended by paragraph 1 of this Article shall be collected on imports consigned 
from Malaysia, whether declared as originating in Malaysia or not, registered in accordance 
with Article 2 of Regulation (EU) No 966/2010 and  Articles  13(3)  and  14(5)  of  Regulation 
(EC)  No  1225/2009,  with  the  exception  of  those  produced  by  the  companies  listed  in 
paragraph 1. 

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

Article 2 

1. Requests for exemption from the duty extended by Article 1 shall be made in writing in one 
of the official languages of the European Union and must be signed by a person authorised to 
represent  the  entity  requesting  the  exemption.  The  request  must  be  sent  to  the  following 
address: 

European Commission 
Directorate-General for Trade 
Directorate H 
Office: N-105 04/92 
1049 Brussels 
Belgium 
Fax (32 2) 295 65 05. 

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2. 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 Regulation 
(EC) No 91/2009, from the duty extended by Article 1. 

Customs authorities are hereby directed to discontinue the registration of imports, established 
in accordance with Article 2 of Regulation (EU) No 966/2010. 

Article 3 

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

Article 4 

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

Done at Brussels, 

For the Council 
The President 

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Annex 

A  declaration  signed  by  an  official  of  the  entity  issuing  the  commercial  invoice,  in  the 
following format, must appear on the valid commercial invoice referred to in Article 1(2): 

(1) 

(2) 

The name and function of the official of the entity issuing the commercial invoice.  

The  following  declaration:  “I,  the  undersigned,  certify  that  the  (volume)  of  [product 
concerned]  sold  for  export  to  the  European  Union  covered  by  this  invoice  was 
manufactured  by  (company  name  and  address)  (TARIC  additional  code)  in  (country 
concerned).  I  declare  that  the  information  provided  in  this  invoice  is  complete  and 
correct.” 

(3) 

Date and signature 

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