Proposal for a COUNCIL REGULATION terminating the expiry and partial interim review of the anti-dumping measures concerning imports of certain castings originating in the People's Republic of China
Date: 2011-07-29
Institutions: European Commission
Subjects: China, anti-dumping measure, import, spare part, third country

EUROPEAN COMMISSION 

Brussels, 29.7.2011 
COM(2011) 467 final 

2011/0205 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the expiry and partial interim review of the anti-dumping measures 
concerning imports of certain castings originating in the People's Republic of China 

 
 
  
 
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  proceeding 
concerning imports of certain castings 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 

Council Regulation (EC) No 1212/2005 of 25 July 2005 imposing a definitive anti-
dumping duty on imports of certain castings originating in the People's Republic of 
China as last amended by Council Regulation (EC) No 500/2009. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  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 contain provisions for a general impact assessment but 
contains an exhaustive list of conditions that have to be assessed. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On 27 July 2010, the Commission announced the initiation of an expiry review of the 
anti-dumping  measures  in  force  in  respect  of  certain  castings  originating  in  the 
People's  Republic  of  China.  The  request  was  lodged  by  the  Eurofonte,  acting  on 
behalf of seven of its members, and by Fundiciones de Odena (‘the applicants’) on 
behalf of producers representing a major proportion, in this case more than 25% of 
the  Union  production  of  certain  castings.  The  purpose  of  this  investigation  was  to 
examine whether the expiry of measures would be likely to result in a continuation or 
recurrence of dumping and recurrence of injury to the Union industry. 

On  1  December  2010,  the  Commission  also  announced  the  initiation  of  a  partial 
interim  review  of  the  measures  in  force.  The  request  was  lodged  by  Shandong 
Lulong Group Co. Ltd., an exporting producer from the People's Republic of China. 
The review was limited in scope to the examination of dumping as far as Shandong 
Lulong Group Co. Ltd. was concerned. 

In  the  course  of  the  expiry  review  investigation,  the  applicants  formally  withdrew 
their request for an expiry review.  

Following this withdrawal, the Commission has not identified arguments suggesting 
that  the  Union  interest  might  justify  pursuing  the  expiry  and  partial  interim  review 
investigations and therefore suggests terminating the investigations and repealing the 
measures. 

It  is  therefore  proposed  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation which should be published in the Official Journal of the European Union 
at the earliest opportunity and in any event no later than 26 October 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. 

•  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. 

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•  Choice of instruments 

Proposed instruments: 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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2011/0205 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the expiry and partial interim review of the anti-dumping measures 
concerning imports of certain castings originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 ('the basic 
Regulation') and in particular Articles 9 and 11(2), (3), (5) and (6) thereof, 

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

Whereas: 

1. 

PROCEDURE 

1.1.  Measures in force 

(1) 

Following an anti-dumping investigation carried out pursuant to Article 5 of the basic 
Regulation, the Council, by Regulation (EC) No 1212/20052 imposed a definitive anti-
dumping  duty  on  imports  of  certain  castings  originating  in  the  People’s  Republic  of 
China. This Regulation was last amended by Council Regulation (EC) No 500/20093. 

(2) 

Individual duty rates ranged from 0% to 37,9% depending on the manufacturer of the 
product concerned, and the residual duty level was set at 47,8 %.  

1.2. 

Requests for reviews 

(3) 

Following  the  publication  of  a  notice  of  impending  expiry  of  certain  anti-dumping 
measures  applicable  to  imports  of  certain  castings  originating  in  the  People's 
Respublic of China4, the Commission received on 25 March 2010 a request for review 
pursuant to Article 11(3) of the basic Regulation and on 29 April 2010 another request 
for review pursuant to Article 11(2) of the basic Regulation. 

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OJ L 343, 22.12.2009, p. 51. 
OJ L 199, 29.7.2005, p. 1. 
OJ L 151, 16.6.2009, p. 6. 
OJ C 72, 20.3.2010, p.11. 

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(4) 

(5) 

(6) 

The  request  pursuant  to  Article  11(2)  of  the  basic  Regulation  was  lodged  by  the 
Eurofonte,  acting  on  behalf  of  seven  of  its  members,  and  by  Fundiciones  de  Odena 
(‘the applicants’) on behalf of producers representing a major proportion, in this case 
more than 25% of the Union production of certain castings. 

The  request  contained  prima  facie  evidence  showing  that  the  expiry  of  the  measures 
would be likely to result in a continuation or recurrence of dumping and injury to the 
Union industry. 

The request pursuant to Article 11(3) of the basic Regulation was lodged by Shandong 
Lulong  Group  Co.  Ltd.,  an  exporting  producer  from  the  People's  Republic  of  China. 
The  request  was  limited  in  scope  to  the  examination  of  dumping  as  far  Shandong 
Lulong Group Co. Ltd was concerned. 

1.3. 

Initiations 

(7) 

(8) 

(9) 

Accordingly,  after  consultation  of  the  Advisory  Committee,  the  Commission 
published a notice of initiation in the Official Journal of  the European  Union5 of an 
expiry  review of the  anti-dumping  measures applicable to imports into the European 
Union of certain castings currently falling within CN codes 7325 10 50, 7325 10 92, 
ex 7325 10 99 (TARIC code 7325 10 99 10), and ex 7325 99 10 (TARIC code 7325 
99 10 10), originating in the People's Republic of China. 

The Commission officially advised the exporting producers, importers concerned, the 
representatives  of  the  People's  Republic  of  China,  the  representative  users  and  the 
Union producers of the initiation of the expiry review investigation. 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 notice of initiation. 

The  Commission  also  published  in  the  Official  Journal  of  the  European  Union6  a 
notice of initiation of a partial interim review of the anti-dumping measures referred to 
under recital (7), limited in scope to the examination of dumping as far as Shandong 
Lulong Group Co. Ltd was concerned. 

2. 

WITHDRAWAL OF THE REQUEST FOR EXPIRY REVIEW 

(10)  By a letter addressed to the Commission, dated 9 June 2011, the applicants formally 
withdrew  their  request.  In  their  letter  the  applicants  argued  that  in  view  of  the 
volatility  of  the  relevant  economic  parameters,  future  injurious  dumping  cannot  be 
excluded.  Under  those  circumstances  they  consider  that  a  surge  of  Chinese  imports 
could  cast  the  viability  of  the  Union  industry  into  doubt  and,  on  this  basis,  the 
applicants  consider  that  the  Commission  should  actively  monitor  imports  of  the 
product concerned and be ready to open a new proceeding at short notice. 

(11)  The Commission acknowledges that the castings market has been subject to significant 
changes  in  the  last  year,  in  particular  due  to  the  recent  economic  crisis  which  had  a 
significant impact on the construction industry and resulted in cuts in public spending 
for  infrastructure  projects.  This  caused  a  general  decline  in  demand,  including  for 

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6 

OJ C 203, 27.7.2010, p.2.  
OJ C 324, 1.12.2010, p.21 

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imports  of  certain  castings.  Since  it  is  not  clear  how  the  market  will  develop  in  the 
short-to-medium  term,  the  reappearance  of  injurious  dumping  can  not  be  entirely 
excluded. It is therefore considered appropriate to monitor imports into the Union of 
the product concerned originating in the People's Republic of China. The monitoring 
period  should  not  exceed  24  months  from  the  publication  of  the  termination  of  the 
present proceeding. Furthermore, the Commission does not rule out the opening of a 
new investigation concerning the same product if and when evidence is provided that 
points to injurious dumping, in line with the requirements of the basic Regulation. 

(12) 

(13) 

In accordance with Article 9(1) and Article 11(2) of the basic Regulation, a proceeding 
may  be  terminated  where  the  request  for  review  is  withdrawn  unless  such  a 
termination would not be in the Union interest. 

It  was  considered  that  the  present  proceeding  should  be  terminated  since  the 
investigation  had  not  brought  to  light  any  consideration  showing  that  its  termination 
would not be in the Union interest. Interested parties were informed accordingly and 
were  given  the  opportunity  to  submit  comments.  However,  no  such  comments  were 
received as would give reason to reach a different conclusion. 

(14) 

It was therefore concluded that the anti-dumping expiry review proceeding concerning 
imports  into  the  Union  of  certain  castings  originating  in  the  People's  Republic  of 
China should be terminated and the existing measures should be repealed.  

(15)  As  a  consequence  it  was  further  concluded  that  the  partial  interim  review  limited  in 
scope to the examination of dumping as far as Shandong Lulong Group Co. Ltd. was 
concerned should also be terminated, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  expiry  and  partial  interim  review  of  the  anti-dumping  measures  concerning  imports  of 
castings of non-malleable cast iron and spheroidal graphite cast iron (ductile iron) of a kind 
used  to  cover  and/or  to  give  access  to  ground  or  sub-surface  systems,  and  parts  thereof, 
whether  or  not  machined,  coated  or  painted  or  fitted  with  other  materials,  excluding  fire 
hydrants, currently falling within CN codes 7325 10 50, 7325 10 92, ex 7325 10 99 (TARIC 
code 7325 10 99 10) and ex 7325 99 10 (TARIC code 7325 99 10 10), and originating in the 
People's Republic of China, are hereby terminated and the measures repealed. 

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

Article 2 

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

Done in Brussels at 

For the Council 
The President 

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