Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of barium carbonate originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
Date: 2011-07-18
Institutions: European Commission
Subjects: China, anti-dumping measure, chemical salt, import (EU)

EUROPEAN COMMISSION 

Brussels, 18.7.2011 
COM(2011) 438 final 

2011/0189 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of barium carbonate 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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EXPLANATORY MEMORANDUM 

1. 

Context of the proposal 

Grounds for and objectives of the proposal 

This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 30 
November 2009 on protection against dumped imports from countries not members of 
the  European  Community1  (‘the  basic  Regulation’)  in  the  proceeding  concerning  the 
review  of  the  measures  applicable  to  imports  of  barium  carbonate  originating  in  the 
People’s Republic of China. 

General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

Existing provisions in the area of the proposal 

In  July  2005,  the  Council,  by  Regulation  (EC)  No  1175/20052,  imposed  a  definitive 
specific anti-dumping duty on imports of barium carbonate originating in China.  

Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

Consultation of interested parties and impact assessment 

Consultation of interested parties 

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

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

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

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

1 
2 

OJ L 343, 22.12.2009, p. 51. 
OJ L 189, 21.7.2005, p. 15. 

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3. 

Legal elements of the proposal 

Summary of the proposed action 

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

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

Legal basis 

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

Subsidiarity principle 

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

Proportionality principle 

The proposal complies with the proportionality principle because the form of action is 
described  in  the  above-mentioned  basic  Regulation  and  leaves  no  scope  for  national 
decision. 

Indication of how financial and administrative burden falling upon the Union, national 
governments,  regional  and  local  authorities,  economic  operators  and  citizens  is 
minimized and proportionate to the objective of the proposal is not applicable. 

Choice of instruments 

Proposed instrument: Council Regulation. 

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

4. 

Budgetary implication 

The proposal has no implication for the Union budget. 

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2011/0189 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of barium carbonate 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 Community3 ('the basic 
Regulation') and in particular Articles 9(4) and 11(2), (5) and (6) thereof, 

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

Whereas: 

1. 

(1) 

2. 

(2) 

(3) 

A. 

PROCEDURE 

Measures in force 

By  Regulation  (EC)  No  1175/20054  the  Council,  imposed  a  definitive  anti-dumping 
duty on imports of barium carbonate ('BaCO3') originating in the People's Republic of 
China  ('PRC').  The  rate  of  the  definitive  specific  duty  ranged  from  6.3  to  56.4€  per 
tonne. 

Request for an expiry review 

Following the publication, in March 2010, of a notice of impending expiry of the anti-
dumping  measures  applicable  to  imports  of  BaCO3  originating  in  the  PRC5,  the 
Commission  received  on  19  April  2010  a  request  for  an  expiry  review  pursuant  to 
Article 11(2) of the basic Regulation. 

The expiry review request was lodged by Solvay & CPC Barium Strontium GmbH & 
Co.  KG  (‘the  applicant’),  the  sole  producer  of  BaCO3  in  the  European  Union, 
representing 100 % of the total Union production of BaCO3. The request was based on 
the grounds that the expiry of the measures would be likely to result in a continuation 
of dumping and continuation of injury to the Union industry.  

3 
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5 

OJ L 343, 22.12.2009, p. 51. 
OJ L 189, 21.7.2005, p. 15. 
OJ C 78, 27.3.2010, p. 4. 

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(4) 

Having  determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient 
evidence existed for the initiation of an expiry review pursuant to Article 11(2) of the 
basic  Regulation,  the  Commission  published  a  notice  of  initiation  in  the  Official 
Journal of the European Union6 ('notice of initiation)'. 

3. 

Investigation 

3.1. 

Review investigation period and period considered 

(5) 

(6) 

The  investigation  regarding  the  continuation  or  recurrence  of  dumping  and  injury 
covered the period from 1 July 2009 to 30 June 2010 ('Review investigation period' or 
'RIP'). 

The  examination  of  the  trends  relevant  for  the  assessment  of  a  likelihood  of  a 
continuation of injury covered the period from 1 January 2007 up to the end of the RIP 
('period considered'). 

3.2. 

Parties concerned by the investigation 

(7) 

(8) 

(9) 

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

The  Commission  also  gave  interested  parties  the  opportunity  to  make  their  views 
known in writing and to request a hearing within the time limit set out in the notice of 
initiation.  All  interested  parties,  who  so  requested  and  showed  that  there  were 
particular reasons why they should be heard, were granted a hearing. 

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

(10) 

In  order  to  enable  the  Commission  to  decide  whether  sampling  would  be  necessary 
and, if so, to select a sample, all exporting producers were asked to make themselves 
known to the Commission and to provide, as specified in the notice of initiation, basic 
information  on  their  activities  related  to  the  product  concerned  during  the  period  1 
July 2009 to 30 June 2010. 

(11)  The  Commission  received  replies  from  only  3  companies  or  company  groups  in  the 
PRC  and  therefore  it  was  decided  that  sampling  was  not  necessary  in  respect  of 
Chinese exporting producers.  

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

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

(13)  Replies to the questionnaire were received from the applicant Union producer and its 
related  agent,  nine  users,  four  importers,  two  exporters/producers  in  China  and  two 

6 

OJ C192, 16.7.2010, p. 4. 

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producers in possible analogue countries. One of the Chinese exporting producers that 
replied to the sampling exercise decided not to co-operate further in the proceeding. 

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

(a)  Applicant Union producer 

–  Solvay  &  CPC  Barium  Strontium  GmbH  &  Co.  KG,  Hannover  and  its  related 

company Solvay Bario e Derivati SpA., Massa 

(b)  Exporting producers in the PRC 

–  Zaozhuang Yongli Chemical Co., Ltd., Shangdong Province 

–  Guizhou Red Star Developing Import & Export Co., Ltd., Guizhou Province 

(c)  Producer in the analogue country (India) 

–  Solvay Vishnu Barium Private Limited, Hyderabad  

(d) 

Importers 

–  Norkem Limited, Knutsford, United Kingdom 

–  L'Aprochimide Srl, Muggio, Italy 

(e)  Users 

–  Technische Glass Illmenau GmbH, Illmenau, Germany 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

Product concerned 

(15)  The product concerned is the same as that in the previous investigation and is defined 
as follows: barium carbonate with a strontium content of more than 0,07 % by weight 
and a sulphur content of more than 0,0015 % by weight, whether in powder, pressed 
granular or calcined granular form, originating in the PRC, currently falling within CN 
code ex 2836 60 00. 

(16)  BaCO3 is used primarily in the brick and tile industry, the ceramics sector and in the 
production of ferrite. It was previously used in the production of cathode ray television 
tubes  (CRT)  but  this  application  has  disappeared  in  the  EU  following  their 
replacement by LCD- and plasma-screens. 

2. 

Like product 

(17)  As in the original investigation, this procedure has shown that BaCO3 produced in the 
PRC and exported to the Union, as well as the barium carbonate produced and sold on 
the domestic market of the analogue country (India) and that manufactured and sold in 

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the Union by the applicant Union producer have the same basic physical and chemical 
characteristics and the same basic uses.  

(18)  Therefore  these  products  are  considered  to  be  like  products  within  the  meaning  of 

Article 1(4) of the basic Regulation. 

C. 

DUMPING 

(19) 

In accordance with Article 11(2) of the basic Regulation, it was examined whether the 
expiry of the existing measures would be likely to lead to a continuation of dumping. 

1. 

General 

(20)  Of the 16 known Chinese exporting producers contacted at the initiation of the expiry 
review, three replied to the sampling exercise but only two fully co-operated with the 
Commission by replying to a full questionnaire.  

2. 

Analogue country 

(21)  Since the PRC is an economy in transition and in accordance with Article 2(7)(a) of 
the  basic  Regulation,  normal  value  for  exporting  producers  not  granted  market 
economy treatment has to be determined on the basis of the price or constructed value 
in an appropriate market economy third country ('analogue country'). 

(22)  The USA was used as analogue country in the original investigation and proposed in 
the  present  investigation  for  the  purposes  of  establishing  normal  value.  However,  it 
was considered necessary to verify if this country was still appropriate for the present 
expiry  review.  Letters  were  sent  to  all  known  producers  of  barium  carbonate 
worldwide,  i.e.  in  Brazil,  India,  Japan  and  the  USA.  Two  replies  were  received,  one 
from a producer in the USA and another from a producer in India. 

(23)  After  a  careful  analysis  of  criteria  such  as  total  production,  number  of  producers, 
competition  in  the  market,  total  imports,  anti-dumping  duties  and  customs  duties  in 
both the American and the Indian domestic markets it was decided to select India as 
analogue  country.  The  choice  of  India,  in  accordance  with  Article  2(7)  of  the  basic 
Regulation, was considered to be more appropriate than USA due to its bigger market 
size, the larger volumes of imports and the stronger competition in its domestic market 
for this product. No comments or objections were received from any interested party 
in  that  respect.  As  a  result,  the  normal  value  for  exporting  producers  not  granted 
market economy treatment was based on the data provided by the producer in India. 

3. 

Dumping of imports during the RIP 

3.1. 

Normal value 

(24)  For the company granted MET in the original investigation, in accordance with Article 
2(2) of the basic Regulation, the Commission examined whether the domestic sales of 
barium  carbonate  to  independent  customers  were  representative  during  the  RIP,  i.e. 
whether the total volume of such sales represented at least 5 % of their export sales of 
the  product  concerned  to  the  Union.  The  investigation  showed  that  these  sales  were 
not  representative  and  therefore  the  normal  value  had  to  be  constructed.  The 
established  normal  value  was  based  on  the  total  cost  of  manufacturing  plus  the 

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company's  selling  general  and  administrative  costs  (SGA)  and  profit  achieved  on 
domestic sales made in the ordinary course of trade of the like product.  

(25)  For the company that was not granted MET in the original investigation, pursuant to 
Article 2(7)(a) of the basic Regulation, normal value was established on the basis of 
the information received from the cooperating producer in the analogue country.  

(26) 

It  was  first  established  whether  the  total  domestic  sales  of  the  like  product  to 
independent customers 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  cooperating 
producer in India were considered sufficiently representative during the RIP. 

(27)  The  Commission  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  Indian  market  the  proportion  of  profitable  domestic  sales  to  independent 
customers  during  the  RIP.  Since  there  were  no  profitable  sales  of  the  like  product 
during the RIP, the normal value had to be constructed. The normal value was based 
on the total cost of manufacturing of the producer concerned plus a reasonable amount 
for selling, general and administrative (SGA) costs and a reasonable amount of profit 
in  accordance  with  Article  2(6)(c)  of  the  basic  Regulation.  The  SGA  costs  and  the 
profit added to the manufacturing costs of the like product used were in line with those 
used in the original investigation and amounted to 10,6 % for SGA costs and 7,2 % for 
profit.  No  information  was  provided  showing  that  these  amounts  would  not  be 
reasonable nor that the profit level used would exceed the profit normally realised by 
other exporters or producers on sales of products of the same general category in the 
domestic market of the country of origin.  

3.2. 

Export price 

(28)  All export sales to the Union of the co-operating exporting producers concerned were 
made  directly  to  independent  customers  in  the  Union  and  therefore,  the  export  price 
was established in accordance with Article 2(8) of the basic Regulation on the basis of 
the prices actually paid or payable.  

3.3. 

Comparison 

(29)  The  comparison  between  normal  value  and  export  price  was  made  on  an  ex-works 

basis.  

(30)  For  the  purposes  of  ensuring  a  fair  comparison  between  the  normal  value  and  the 
export  price,  and  in  accordance  with  Article  2(10)  of  the  basic  Regulation,  due 
allowance in the form of adjustments was made with regard to certain differences in 
transport and commissions, which affected prices and price comparability. 

3.4. 

Dumping margin 

(31) 

In  accordance  with  Article  2(11)  of  the  basic  Regulation,  the  dumping  margin  was 
established  on  the  basis  of  a  comparison  of  the  weighted  average  normal  value  with 
the weighted average export prices at the same level of trade. 

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(32)  For the company that was granted MET in the original investigation this comparison 

showed that the company continued dumping at an even higher level.  

(33)  For  the  company  that  was  not  granted  MET  in  the  original  investigation  the 
comparison  conducted  in  accordance  with  Article  2(11)  of  the  basic  Regulation 
showed significant dumping. This company represents 98 % of exports subject to the 
residual duty, the remaining 2 % of exporting producers that did not co-operate in the 
proceeding  cannot  influence  the  dumping  margin  found.  In  addition  in  view  of  their 
non-co-operation it is considered that they cannot dump at a lower level than the co-
operating company.  

D. 

LIKELIHOOD OF CONTINUATION OF DUMPING 

(34) 

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

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

(36)  According  to  the  complaint,  the  PRC  is  by  far  the  biggest  producer  worldwide  of 
Barium Carbonate. In addition the PRC is also the biggest producer of Barite which is 
the  main  raw  material  for  the  production  of  the  product  concerned.  The  two  co-
operating  companies  alone  have  a  production  capacity  of  331  000  tonnes  per  year 
which  is  around  3  times  the  EU  consumption  in  the  RIP.  In  addition  these  two 
companies have a total spare capacity of 34000 tonnes which is enough to supply half 
of the EU consumption. 

(37)  Three  of  the  major  worldwide  producers  of  Barium  carbonate  (the  USA,  India  and 
Brazil) have currently anti-dumping measures on Chinese imports of the PC. It can be 
concluded  that  given  the  significant  spare  production  capacity  in  China  and  the 
dumping  practices  in  several  markets,  should  the  measures  be  repealed,  additional 
volumes would be directed to the EU market. 

(38)  The fact that, despite the existence of anti-dumping measures on Chinese imports, the 
Chinese exporting producers have managed to export significant quantities to the EU 
in the RIP (at an average price of 251€/t) and to increase th eir market share in the EU, 
shows the continued interest of the Chinese exporters in the EU market. 

(39) 

It  is  even  more  clear  on  the  basis  of  the  Chinese  export  statistics  that  the  EU  is  an 
attractive  market  for  the  Chinese  exporting  producers  since  they  achieved  some  of 
their highest export prices (albeit dumped) when exporting to the EU. According to the 
Chinese export statistics the average selling price to the EU during the RIP was 269 
USD FOB while the average export price to India was 220 USD.  

(40)  The Chinese export statistics showed that despite the end of the main application for 
barium carbonate (CRT's production) Chinese exports have increased worldwide from 
130 000 tonnes in 2009 to 158 000 tonnes in 2010. 

(41)  Should measures be repealed, it is expected that, in view of the huge spare production 
capacity in China, Chinese exports will very likely be directed to the EU. The fact that 

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major markets around the world like the USA, India and Brazil are protected by high 
anti-dumping duty supports this conclusion.  

(42)  The prices of these imports would likely continue to be at dumped prices as there is no 
indication that the exporters would change their pricing behaviour if measures were to 
be repealed.  

(43) 

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

E. 

DEFINITION OF THE UNION INDUSTRY 

(44)  The sole co-operating Union producer accounted for 100 % of the Union production of 
BaCO3 during the RIP. It is therefore deemed to constitute the Union industry within 
the meaning of Article 4(1) and Article 5(4) of the basic Regulation. 

F. 

SITUATION OF THE UNION MARKET 

1. 

Union consumption 

Table 1: Union consumption 

2007

2008

2009

RIP 

Consumption (in tonnes)  

123.354

104.037

62.637

76.560

Index 

100

84

51

62

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

(45)  Union consumption was based on the combined volume of sales by the Union industry 

in the Union and the volume of imports from third countries, based on Eurostat data. 

(46)  On  this  basis  and  as  shown  in  Table  1  above,  Union  consumption  decreased 
significantly during the period considered, i.e. by 38 % which is mainly explained by 
the disappearance of the CRT manufacturing activity in the EU. 

2. 

Volume, market share and prices of imports from the PRC 
Table 2: Imports from the PRC in volume, market share and import price 

Import volume (tonne) 

76.306

64.573 

37.341

48.720

2007

2008 

2009

RIP

Index 

Market share  

Index 

CIF Import price Eur per tonne 

Index 

Source: Eurostat statistics 

100

85 

49

64

61,9 %

62,1 % 

59,6 %

63,6 %

100

230

100

100 

257 

112 

96

239

104

103

251

109

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(47)  During  the  period  considered  the  import  volumes  from  the  PRC  decreased  by  36  % 
while  consumption  in  the  Union  decreased  by  38  %.  Despite  the  anti-dumping 
measures in place, and against the background of decreasing consumption, the Chinese 
market share increased by three percentage points over the period considered. 

(48)  Average import prices from the PRC increased by 9 % over the period considered. The 
highest increase in prices occurred between 2007 and 2008 as prices dropped in 2009 
before increasing again in the RIP. 

(49)  The  Union  industry's  average  ex-works  price  was  compared  with  the  Chinese  CIF 
average import prices at the Union frontier. These prices were derived from Eurostat 
figures  and  included  post-importation  costs,  customs  and  anti-dumping  duties.  The 
comparison  showed  that  Chinese  import  prices  undercut  the  Union  industry's  sales 
price by 37,9 % during the RIP. Based on the above it was found that if measures had 
not  been  in  place  Chinese  import  prices  would  have  undercut  those  of  the  Union 
industry by 44,1 %.  

3. 

Volume and market share of imports from other third countries 

(50)  Total  import  volumes  of  BaCO3  from  third  countries  other  than  the  PRC  were 
insignificant and represented less than 1 % of the Union consumption over the period 
considered.  

(51) 

It should be noted that import prices from other third countries did not undercut Union 
prices in the RIP. 

4. 

Economic situation of the Union industry 

4.1. 

Production, production capacity and capacity utilisation 

(52) 

It  should  be  noted  that  since  the  Union  industry  consists  in  only  one  producer,  data 
pertaining  to  production,  capacity  and  utilisation  had  to  be  reported  in  the  form  of 
indexes. 

Table 3: Union production, production capacity and capacity utilisation 

Index 

Production 

Production capacity 

Capacity utilisation 

2007

2008

2009 

RIP 

100

100

100

79

100

79

36 

100 

36 

47

100

47

Source: Verified questionnaire replies of the Union industry 

(53)  The  Union  industry’s  production  decreased  by  53  %  over  the  period  considered.  It 
should be noted that the Union industry has adapted its production model since 2003 
in  order  to  adequately  meet  the  new  market  situation  and  the  disappearance  of  the 
CRTT-screen activity in the EU. As a consequence, production capacity was reduced 
by  more  than  50  %  as  the  product  under  review  is  now  produced  in  alternating 
campaigns on the same equipment as strontium carbonate ('SrCO3'). 

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(54)  The  production  capacity  of  the  Union  industry  remained  unchanged  over  the  period 
considered. Capacity utilisation thus developed similarly to production volumes. 

4.2. 

Inventories 

Table 4: Inventories 

Index 

2007

100

2008

97

2009 

41 

RIP 

41

Source: Verified questionnaire replies of the Union industry 

(55)  Stocks  decreased  by  59  %  during  the  period  considered.  This  decrease  is  due  to 
reduced  demand  and  the  ability  for  the  EU  industry  to  adapt  to  the  new  market 
situation. 

4.3. 

Sales volume and prices  

Table 5: Sales volumes, values and unit selling price 

2007

2008

2009 

RIP 

Sales in volume (index) 

Sales in value (index) 

Unit selling price (index) 

100

100

100

84

92

109

53 

66 

124 

59

73

123

Source: Verified questionnaire replies of the Union industry 

(56)  The Union industry sales volume decreased by 41 % over the period considered. The 
major  decrease  took  place  in  2009  due  to  the  general  economic  downturn.  Thus  the 
Union industry sales volume decreased proportionally more than the EU consumption 
in the same period. Sales value decreased less significantly than volume as the Union 
industry  managed  to  increase  its  price  levels  over  the  period  considered  where  unit 
selling prices increased by 23 %. 

4.4. 

Market share and growth  

Table 6: Union industry’s market share 

Index 

2007

100

2008

100

2009 

105 

RIP 

95

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

(57)  The  Union  industry's  market  share  increased  by  5  %  in  2009  before  dropping 
significantly by 10 % in the RIP. This indicates that in the absence of growth on the 
market, the Union industry could not maintain its market share. 

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4.5. 

Employment, productivity and wages 

Table 7: Employment, wages and productivity 

Employment (index) 

Wages 
index) 

(EUR/employee; 

Productivity (index) 

2007 

100

100

100

2008

87

108

91

2009 

55 

106 

65 

RIP 

57

113

82

Source: Verified questionnaire replies of the Union industry 

(58)  Employment  decreased  significantly  over  the  period  considered  as  a  consequence  of 
the  economic  downturn  and  the  new  market  situation.  Average  wages  increased  by 
13 %  as  a  consequence  of  high  inflation  rate  which  directly  impacted  salary 
indexation. Productivity decreased by 18 % during the same period as a result of the 
decrease  in  production  volume  which  could  not  be  compensated  by  the  headcount 
reduction. 

4.6. 

Profitability 

Table 8: Profitability 

Index 

2007

-100

2008

-192

2009 

-351 

RIP 

-206

Source: Verified questionnaire replies of the Union industry 

(59)  The profitability of the Union industry decreased by more than 106 % over the period 
considered as a consequence of the economic downturn and the disappearance of the 
CRTT-screen application which both affected sales volumes and costs of production. 
The industry was continually loss-making throughout the period considered. 

4.7. 

Investments, return on investments and ability to raise capital 

Table 9: Investments and return on investments 

Investment 
(index) 

Return 
investment 
(index) 

on 

2007

2008

2009 

RIP 

100

82

90 

97

-100

-251

-506 

-176

Source: Verified questionnaire replies of the Union industry 

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(60) 

Investments  remained  stable  during  the  period  considered.  Investments  made  by  the 
Union industry were expensed in the year when they were made. Return on investment 
(profit expressed as a percentage of investments per year) developed negatively over 
the period considered in line with profitability.  

(61)  The investigation did not bring to light any evidence that the Union industry had any 
major  problems  in  raising  capital.  It  should  however  be  noted  that  the  investments 
made in the period considered were not significant. 

4.8. 

Cash flow 

Table 10: Cash flow 

Index 

2007

-100

2008

-83

2009 

25 

RIP 

32

Source: Verified questionnaire replies of the Union industry 

(62)  Cash flow improved significantly over the period considered as a consequence of the 

reduction in inventory volumes.  

4.9. 

Magnitude of the dumping margin 

(63)  During the RIP, despite the measures in force substantial dumping continued at even 
higher  levels  than  those  established  in  the  original  investigation,  based  both  on  the 
data obtained from the cooperating exporting producers and EUROSTAT. 

4.10. 

Recovery from the effects of past dumping 

(64)  The  Union  industry,  in  a  negative  economic  context  explained  by  the  general 
economic  downturn  and  the  disappearance  of  one  important  application,  did  not 
recover  from  past  dumping,  in  particular  in  terms  of  sales  volume,  sales  price  and 
profitability. It was found moreover that dumping continued in the RIP. 

4.11. 

Export activity of the Union industry 

Table 11: Export volume of the Union industry 

Index 

2007

100

2008

86

2009 

45 

RIP 

66

Source: Verified questionnaire replies of the Union industry 

(65)  Union industry exports of BaCO3 decreased by 34 % over the period considered. The 
Union industry could only export limited volumes given the severe competition from 
Chinese exports on non-EU markets. The decrease in export volumes over the period 
considered is also explained by the economic downturn.  

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4.12.  Conclusion on the situation of the Union industry 

(66)  While  all  main  injury  indicators,  such  as  sales  volume,  profitability,  production, 
employment  and  productivity  showed  negative  developments  during  the  period 
considered, the anti-dumping measures had a softening impact on the situation of the 
Union industry.  

(67)  As  far  as  the  market  share  of  the  Union  industry  is  concerned,  the  slight  decreasing 
trend shows that, despite existing measures and while market consumption decreased, 
Chinese  imports  not  only  excluded  other  countries  from  the  market  but  also  gained 
market share at the expense of the Union industry.  

(68) 

In conclusion, in view of the negative development of the indicators pertaining to the 
Union  industry,  it  is  considered  that  the  Union  industry  continued  to  suffer  material 
injury  during  the  period  concerned.  It  was  therefore  examined  whether  there  was  a 
likelihood of continuation of injury should measures be allowed to lapse. 

G. 

LIKELIHOOD OF CONTINUATION OF INJURY 

1. 

(69) 

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

It  is  recalled  that  consumption  on  the  EU  market  decreased  significantly  since  the 
original  investigation  due  to  the  disappearance  of  the  CRT  and  to  the  economic 
downturn. In these circumstances, the market share of Chinese imports has increased 
by  more  than  15  %  while  the  market  share  of  the  Union  industry  and  third  country 
imports decreased significantly. This demonstrates that, despite the measures in force 
and  the  decreasing  EU  consumption,  the  Chinese  exporting  producers  showed  a 
continuous interest in the EU market and were able to exclude third countries from the 
EU market. 

(70) 

It  is  also  recalled  that  the  exporting  producers  in  the  PRC  continued  to  dump  and 
undercut  Union  industry  prices  at  very  significant  levels  in  the  RIP.  Based  on  this, 
there is no reason to believe that the Chinese will not continue to dump and undercut 
Union industry prices in the future. 

(71)  The investigation showed that the Chinese producers had significant spare capacities 
during the RIP i.e. around 280.000 tonnes. This represents more than 3 times the size 
of  the  EU  market  in  the  RIP.  Despite  the  expected  increase  in  demand  in  the  PRC, 
overcapacity is expected to persist and remain very significant in the coming years. 

(72)  The  Union  market  is  the  main  export  destination  for  the  PRC.  Other  major  export 
markets  such  as  the  USA  and  India,  have  high7  anti-dumping  measures  in  place 
against  BaCO3  originating  in  the  PRC.  These  markets  are  therefore  practically 
inaccessible to Chinese exports. In view of the Chinese exporting producers' interest in 
the Union market, it is expected that, if measures were repealed, a significant volume 
of exports would flood into the Union market, with a strong overall depressing effect 
on prices. 

7 

Indian  anti-dumping  duties  against  Chinese  BaCO3  range  from  76.06  USD  to  236  USD  per  ton;  US 
anti-dumping duties against Chinese BaCO3 range from 34,4 to 81,3 %. 

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2. 

Conclusion on likelihood of continuation of injury 

(73)  On the basis of the above, it is considered that if measures were repealed, there would 
be a likelihood of a significant increase in dumped imports from the PRC to the Union, 
with  downward  pressure  on  prices.  Such  situation  would  likely  lead  to  the 
disappearance  of  the  Union  industry  in  the  medium  term  as  on  the  one  hand,  the 
reduced  sales  volumes  would  not  allow  the  EU  industry  to  dilute  fixed  costs 
sufficiently, and on the other hand, it would not be able to reach sufficient price levels. 
The  continuation  of  injury  was  magnified  in  the  period  considered  by  the  economic 
downturn and the disappearance of an important application. 

3. 

Post RIP developments 

(74)  Although PRC import prices increased by 17,8 % from the end of the RIP to February 
2011  while  Union  industry  selling  prices  increased  by  only  around  7  %  in  the  same 
period,  PRC  imports  were  still  undercutting  EU  prices  by  more  than  15  %  after  the 
RIP. 

1. 

Preliminary remark 

H. 

UNION INTEREST 

(75) 

In  accordance  with  Article  21  of  the  basic  Regulation  it  was  examined  whether  the 
continuation of the existing anti-dumping measures would be against the interest of the 
Union as a whole. The determination of Union interest was based on an appreciation 
of the various interests involved, i.e. those of the Union industry, importers and users 
of the product concerned. 

(76)  As the present investigation is an expiry review, it requires analysis of a situation in 
which  anti-dumping  measures  have  already  been  in  place  and  the  assessment  of  any 
undue negative impact on the parties concerned by the current anti-dumping measures. 

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

2. 

Interests of the Union industry 

(78)  The investigation revealed that the Union industry was operating very cost-efficiently. 
Indeed, it reduced headcount and changed production models in order to adapt to the 
new market situation and ensure the sustainability of the plant where, as indicated in 
recital (53), BaCO3 and SrCO3 are produced in alternating campaigns. Although the 
measures  did  not  contribute  to  the  recovery  of  the  financial  situation  of  the  Union 
industry,  they  had  a  softening  effect  on  its  financial  situation.  Indeed,  without  the 
measures  in  place,  it  is  likely  that  the  EU  market  would  have  been  flooded  by  low-
priced  imports  originating  in  PRC  and  the  Union  industry  would  have  had  to  close 
down. 

(79)  As  mentioned  above,  the  production  model  of  the  Union  industry  is  based  on  two 
products  that  are  interdependent;  i.e.  sufficient  sales  volumes  for  both  products  are 
necessary  in  order  to  dilute  fixed  costs.  Should  measures  be  allowed  to  lapse,  the 

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expected increased volume of dumped imports will lead to a substantial reduction of 
the BaCO3 activity, which, itself, will make the SrCO3 activity less profitable, leading 
eventually to the dismantlement of the whole plant. 

(80)  On  the  basis  of  the  above,  it  was  concluded  that  it  is  in  the  interest  of  the  Union 
industry that measures against the dumped imports from the PRC be maintained. 

3. 

Interests of unrelated importers 

(81)  The  Commission  sent  questionnaires  to  all  known  unrelated  importers.  Replies  were 
received  from  four  unrelated  importers.  Two  of  these  importers  were  active  in  the 
production of slurry, a solution composed of BaCO3, additives and water, destined to 
the brick industry. 

(82) 

(83) 

Importers  indicated  that  the  imposition  of  anti-dumping  duties  had  pushed  prices 
upward at the time of imposition. In this regard, it should be noted that such difference 
was no longer noticeable as export prices to the EU when compared to average prices 
to all non-EU markets were found to be at similar levels during the RIP8. 

Importers also indicated that there was no shortage of BaCO3 on the EU market even 
though they were facing increasing difficulties to source BaCO3 from the PRC due to 
increased  domestic  demand.  Import  statistics  do  however  not  show  any  decrease  in 
volume of exports of the product concerned to the Union during or after the RIP. This 
is also confirmed by the findings concerning overcapacity of recital (71). 

(84) 

It was also found that the measures in force did not have any negative effects on the 
financial situation of the importers. 

(85)  On the basis of the above, it was concluded that the current measures in force had no 
substantial negative effect on their financial situation and that the continuation of the 
measures would not unduly affect the importers.  

4. 

Interests of users 

(86)  The Commission sent questionnaires to all known users. Replies were received from 
nine  users  of  the  product  concerned.  As  indicated  in  recital  (16),  the  main  industrial 
users  of  BaCO3  in  the  Union  are  active  in  the  brick  and  tile  industry,  the  ceramics 
sector and in the production of ferrite.  

(87)  One user has submitted that the existence or continuation of the measures would not 
be  in  the  interest  of  users,  however  it  did  not  substantiate  their  claim...  None  of  the 
other users replying to the questionnaire indicated that the measures had a significant 
impact on their businesses and that they should be lifted. 

5. 

Conclusion on Union interest 

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

prolongation of the anti-dumping measures in force. 

8 

Source: Chinese export statistics. 

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I. 

ANTI-DUMPING MEASURES 

(89)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the measures be maintained. They were also 
granted  a  period  to  submit  comments  and  claims  subsequent  to  disclosure.  No 
comments were received following disclosure. 

(90) 

It  follows  from  the  above  that,  as  provided  for  under  Article  11(2)  of  the  basic 
Regulation,  the  anti-dumping  measures  applicable  to  imports  of  barium  carbonate 
originating  in  China,  imposed  by  Regulation  (EC)  No  1175/2005  should  be 
maintained, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 
A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  barium  carbonate, 
currently falling within CN code ex 2836 60 00 (TARIC code 2836 60 00 10), originating in 
the People's Republic of China. 

The  amount  of  the  definitive  anti-dumping  duty  shall  be  equal  to  a  fixed  amount  as 

2. 
specified below for products produced by the following manufacturers:  

Company 

Rate of duty 
(EUR/t) 

TARIC additional 
code 

Hubei Jingshan Chutian Barium Salt 
Corp. Ltd, 62, Qinglong Road, Songhe 
Town, Jingshan County, Hubei 
Province, PRC 

Zaozhuang Yongli Chemical Co. Ltd, 
South Zhuzibukuang Qichun, 
Zaozhuang City Center District, 
Shandong Province, PRC 

6,3 

8,1 

A606 

A607 

All other companies 

56.4 

A999 

3. 
In  cases  where  the  goods  have  been  damaged  before  entry  into  free  circulation  and, 
therefore,  the  price  actually  paid  or  payable  is  apportioned  for  the  determination  of  the 
customs value pursuant to Article 145 of Commission Regulation (EEC) No 2454/93 of 2 July 
1993  laying  down  provisions  for  the  implementation  of  Council  Regulation  (EEC)  No 
2913/92 establishing the Customs Community Code  9, the amount of the anti-dumping duty, 
calculated on the basis of the fixed amounts set above, shall be reduced by a percentage which 
corresponds to the apportioning of the price actually paid or payable. 

9 

OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 883/2005 (OJ L 148, 
11.6.2005, p. 5). 

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

4. 
apply. 

This  Regulation  shall  enter  into  force  on  the  day  following  its  publication  in  the  Official 
Journal of the European Union and shall be in force for a period of five years. 

Article 2 

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

Done at Brussels,  

For the Council 
The President 

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