Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of hand pallet trucks and their essential parts originating in the People's Republic of China as extended to imports of hand pallet trucks and their essential parts consigned from Thailand, whether declared as originating in Thailand or not, following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009
Date: 2011-09-13
Institutions: European Commission
Subjects: China, Thailand, anti-dumping measure, hoisting equipment, import (EU), originating product

EUROPEAN COMMISSION 

Brussels, 13.9.2011 
COM(2011) 554 final 

2011/0237 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of hand pallet trucks and their 
essential parts originating in the People's Republic of China as extended to imports of 
hand pallet trucks and their essential parts consigned from Thailand, whether declared 
as originating in Thailand or not, following an expiry review pursuant to Article 11(2) of 
Council 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 Community ('the basic Regulation'), in the expiry review 
proceeding concerning the anti-dumping duty in force in respect of imports of hand 
pallet trucks and their essential parts 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 

A definitive anti-dumping duty on imports of of hand pallet trucks and their essential 
parts  falling  within  CN  codes  ex  8427  90  00  and  ex  8431  20  00  originating  in  the 
People's Republic of China was imposed by Council Regulation (EC) No 1174/2005 
(OJ L 189, 21.7.2005, p. 1), as amended by Council Regulation (EC) No 684/2008 
(OJ L 182, 19.7.2008, p. 1). 

•  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. 

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3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On 20 July 2010, the Commission initiated upon substantiated request of two Union 
producers an expiry review of the anti-dumping duty in force in respect of imports of 
hand  pallet  trucks  and  their  essential  parts  originating  in  the  People's  Republic  of 
China. 

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

Therefore,  it  is  suggested  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation in order to prolong the existing measures, which should be published in 
the Official Journal of the European Union by 19 October 2011 at the latest.  

•  Legal basis 

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

•  Subsidiarity principle 

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

•  Proportionality principle 

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

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

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

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason: 

The basic Regulation does not provide for alternative options. 

4) 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2011/0237 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of hand pallet trucks and their 
essential parts originating in the People's Republic of China as extended to imports of 
hand pallet trucks and their essential parts consigned from Thailand, whether declared 
as originating in Thailand or not, following an expiry review pursuant to Article 11(2) of 
Council 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 Community1 (‘the basic 
Regulation’), and in particular Articles 9(4) and 11 paragraphs (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) 

(3) 

A. 

PROCEDURE 

Measures in force 

The Council, following an anti-dumping investigation ('the original investigation'), by 
Regulation (EC) No 1174/20052, imposed, a definitive anti-dumping duty on imports 
of hand pallet trucks and their essential parts currently falling within CN code ex 8427 
90 00 and ex 8431 20 00 originating in the People's Republic of China ('the definitive 
anti-dumping measures'). The measures took the form of an ad valorem duty ranging 
between 7,6 % and 46,7 %. 

The Council, following an ex officio product scope interim review, by Regulation (EC) 
No 684/20083, clarified the product scope of the original investigation. 

Following  an  ex  officio  anti-circumvention  investigation  of  the  anti-dumping 
measures, the Council, by Regulation (EC) No 499/20094, extended the definitive anti-
dumping  duty  applicable  to  'all  other  companies'  imposed  by  Regulation  (EC)  No 

1 
2 
3 

4 

OJ L 343, 22.12.2009, p. 51. 
OJ L 189, 21.7.2005, p. 1. 
OJ L 192, 19.7.2008, p. 1. 
OJ L 151, 16.6.2009, p. 1. 

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2. 

(4) 

(5) 

3. 

(6) 

1174/2005  to  hand  pallet  trucks  and  their  essential  parts  consigned  from  Thailand 
whether declared as originating in Thailand or not. 

Request for an expiry review 

Following  the  publication  of  a  notice  of  impending  expiry5  of  the  definitive  anti-
dumping measures in force, the Commission received on 21 April 2010 a request for 
the  initiation  of  an  expiry  review  of  these  measures  pursuant  to  Article  11(2)  of  the 
basic Regulation. The request was lodged by two Union producers: BT Products AB 
and Lifter S.r.l. ('the applicants') representing a major proportion, in this case almost 
the total Union production of hand pallet trucks and their essential parts. 

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

Initiation of an expiry review 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for the  initiation  of an  expiry review, the Commission announced on 20 July 
2010,  by  a  notice  published  in  the  Official  Journal  of  the  European  Union6  ('the 
Notice of initiation'), the initiation of an expiry review pursuant to Article 11(2) of the 
basic Regulation.  

4. 

Investigation  

4.1. 

Investigation period 

(7) 

The  investigation  of  continuation  or  recurrence  of  dumping  covered  the  period  from 
1 July  2009  to  30  June  2010  ('the  review  investigation  period'  or  'RIP').  The 
examination  of  the  trends  relevant  for  the  assessment  of  the  likelihood  of  a 
continuation or recurrence of injury covered the period from 1 January 2007 to the end 
of the review investigation period ('the period considered'). 

4.2. 

Parties concerned by the investigation 

(8) 

(9) 

(10) 

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

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  unrelated  importers,  it  was  considered 
appropriate, in accordance with Article 17 of the basic Regulation, to examine whether 
sampling  should  be  used.  In  order  to  enable  the  Commission  to  decide  whether 
sampling  would  be  necessary  and,  if  so,  to  select  a  sample,  the  above  parties  were 
requested, pursuant to Article 17 of the basic Regulation, to make themselves known 

5 

6 

OJ C 70, 19.3.2010, p. 29. 
OJ C 196, 20.7.2010, p. 15. 

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within 15 days of the initiation of the reviews and to provide the Commission with the 
information  requested  in  the  Notice  of  initiation.  However,  no  unrelated  importers 
came forward to cooperate. Sampling was therefore not necessary.  

(11)  The Commission sent questionnaires to all parties known to be concerned and to those 
who  made  themselves  known  within  the  deadlines  set  in  the  Notice  of  initiation. 
Replies  were  received  from  the  two  groups  of  Union  producers  which  are  the 
applicants. None of the known exporting producers in the People's Republic of China 
('PRC')  cooperated  in  the  review.  None  of  the  importers  came  forward  during  the 
sampling exercise and no other importers or users supplied the Commission with any 
information or made themselves known in the course of the investigation.  

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

Union producers 

– 

– 

Lifter SRL, Casole d'Elsa, Italy; 

BT Products AB, Mjölby, Sweden. 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(13)  The  product  concerned  by  this  review  is  the  same  as  the  one  in  the  original 
investigation  and  clarified  by  the  product  scope  interim  review,  namely  hand  pallet 
trucks  and  their  essential  parts,  i.e.  chassis  and  hydraulics,  originating  in  the  PRC, 
currently falling within CN codes ex 8427 90 00 and ex 8431 20 00. For the purpose 
of  this  Regulation,  hand  pallet  trucks  shall  be  trucks  with  wheels  supporting  lifting 
fork arms for handling pallets, designed to be manually pushed, pulled and steered, on 
smooth,  level,  hard  surfaces,  by  a  pedestrian  operator  using  an  articulated  tiller.  The 
hand pallet trucks are only designed to raise a load, by pumping the tiller, to a height 
sufficient for transporting and do not have any other additional functions or uses such 
as for example (i) to move and to lift the loads in order to place them higher or assist 
in storage of loads (highlifters), (ii) to stack one pallet above the other (stackers), (iii) 
to  lift  the  load  to  a  working  level  (scissorlifts)  or  (iv)  to  lift  and  to  weigh  the  loads 
(weighing trucks). 

(14)  The  investigation  confirmed  that,  as  in  the  original  investigation,  the  product 
concerned and the products manufactured and sold on the domestic market in the PRC, 
as  well  as  those  manufactured  and  sold  in the  EU  by  the  Union  producers,  have  the 
same  basic  physical  and  technical  characteristics  as  well  as  the  same  uses  and  are, 
therefore,  considered  to  be  like  products  within  the  meaning  of  Article  1(4)  of  the 
basic Regulation. 

C. 

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING 

(15) 

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 or recurrence 
of dumping.  

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1. 

Preliminary remarks 

(16)  Nineteen  known  Chinese  exporting  producers  were  contacted  upon  initiation.  Only 
one  company,  Crown  Equipment  (Suzhou),  initially  came  forward  and  agreed  to  be 
included  in  the  sample,  but  withdrew  its  cooperation  subsequently.  Consequently, 
none  of  the  exporting  producers  in  the  PRC  cooperated  with  the  investigation  and 
findings on the likelihood of continuation or recurrence of dumping had to be based on 
facts  available,  in  particular  information  submitted  by  the  applicants,  including 
information in the review request, Eurostat data, as well as official export statistics of 
the PRC. 

2. 

Dumping of imports during the RIP 

2.1. 

Analogue country 

(17) 

(18) 

In  accordance  with  the  provisions  of  Article  2(7)(a)  of  the  basic  Regulation,  normal 
value  had  to  be  determined  on  the  basis  of  the  price  or  constructed  normal  value 
obtained  in  an  appropriate  market  economy  third  country  (the  analogue  country),  or 
the price from the analogue country to other countries, including the Union, or, where 
those are not possible, on any other reasonable basis, including the price actually paid 
or  payable  in  the  Union  for  the  like  product,  duly  adjusted  if  necessary  to  include  a 
reasonable profit margin. 

In the original investigation, Canada served as an analogue country for the purposes of 
establishing  normal  value.  Given  that  production  in  Canada  had  ceased,  Brazil  was 
envisaged  as  analogue  country  in  the  notice  of  initiation  of  the  present  review. 
However,  none  of  the  known  Brazilian  exporting  producers  agreed  to  cooperate. 
Alternatively,  cooperation  was  sought  from  27  Indian  producers  and  two  Taiwanese 
producers, but similarly no cooperation could be obtained. Interested parties have not 
put forward any other suggestions for an analogue country. 

(19)  One non-cooperating exporter claimed that the Commission did not demonstrate that 
the use of analogue country data was impossible in the current case. The suggestions 
given by the company have been checked. In some cases companies proposed by the 
non-cooperting exporter appeared not to be a producer of the product concerned. The 
company also suggested that Vietnam could have been used as an analogue country: 
However,  Vietnam  could  not  be  taken  into  account  because  it  is  not  considered  as  a 
market  economy  country.  As  explained  in  recitals  (17)  and  (18)  above,  the 
Commission  contacted  a  large  number  of  companies  in  three  potential  analogue 
countries: Brazil, India and Taiwan. Despite these efforts no cooperation was obtained. 
Without any analogue country cooperation, in compliance with Article 2(7)(a) of the 
basic  Regulation,  the  normal  value  had  to  be  based  on  the  price  actually  paid  or 
payable  in  the  European  Union  for  the  like  product,  duly  adjusted  if  necessary  to 
include a reasonable profit margin. Therefore the claim had to be rejected. 

2.2. 

Normal value 

(20) 

In  view  of  lack  of  co-operation  from  an  analogue  country  in  the  present  review,  the 
price  actually  paid  or  payable  in  the  Union  for  the  like  product  duly  adjusted  if 
necessary  to  include  a  reasonable  profit  margin,  was  used  as  a  basis  to  establish 
normal  value.  The  same  methodology  was  used  for  both  the  company  that  received 

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MET in the original investigation as well as for the companies not granted MET in the 
original investigation.  

2.3. 

Export price  

(21) 

In  view  of  the  fact  that  no  co-operation  was  obtained  from  the  Chinese  exporting 
producers,  the  export  price  was  established  on  the  basis  of  facts  available.  Different 
sources of information were consulted in order to establish the export price: Eurostat 
data, offers of Chinese exporting producers as submitted by the applicants and export 
invoices collected from Member States' customs authorities. 

2.4. 

Comparison  

(22)  The weighted average normal value was compared with the weighted average export 
price,  on  an  ex-works  basis,  at  the  same  level  of  trade.  In  accordance  with  Article 
2(10)  of  the  basic  Regulation,  and  for  the  purpose  of  ensuring  a  fair  comparison, 
differences in factors affecting price and price comparability were taken into account. 
Adjustments  were  made  for  ocean  and  domestic  freight  in  the  exporting  country,  as 
well as insurance. 

2.5. 

Dumping margin  

(23) 

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  price.  This  comparison  showed  the  existence  of 
significant  dumping  during  the  RIP  ranging  from  97  %  to  224  %.  The  significant 
difference  in  dumping  margins  is  due  to  the  different  data  used  for  establishing  the 
export price. 

3. 

Development of imports should measures be repealed  

(24)  Further to the analysis of the existence of dumping during the RIP, the likelihood of 
continuation of dumping should measures be repealed was investigated. Given the fact 
that no exporting producer in the PRC cooperated in this investigation, the conclusions 
below  rely  on  facts  available  in  accordance  with  Article  18  of  the  basic  Regulation, 
namely  information  provided  in  the  review  request  as  well  as  data  provided  by  the 
applicants, Eurostat data and official export statistics of the PRC. 

(25) 

In  this  respect,  the  following  elements  were  analysed:  development  of  imports  from 
the  PRC,  spare  capacity  of  the  exporters  and  attractiveness  of  the  Union  market, 
Chinese domestic prices and export prices to third countries. 

3.1. 

Development of imports from the PRC 

(26)  The  Chinese  exporting  producers  continued  to  supply  significant  volumes  of  hand 
pallet trucks to the EU market following the imposition of the measures in 2005. The 
volume  of  imports  from  the  PRC  into  the  EU  during  the  RIP,  nearly  400.000  units, 
corresponding  to  99  %  of  total  EU  imports,  considerably  exceeded  the  levels  noted 
prior  to  the  imposition  of  measures  (ranging  from  118.000  units  in  2000  to  280.000 
units in the original IP). 

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3.2. 

Spare capacity of the exporters 

(27) 

In the absence of other sources of information concerning production and capacity in 
the PRC, the analysis was made in accordance with Article 18 of the basic Regulation 
on  the  basis  of  information  submitted  by  the  applicants.  The  market  information 
contained  in  the  review  request,  which  has  not  been  challenged  by  the  interested 
parties,  points  to  a  huge  capacity  in  the  PRC.  Already  the  production  levels  in  2008 
and 2009, respectively 1,5 million units and 800.000 units, were more than twice the 
size of the entire EU market. In addition, only a limited fraction of Chinese production 
(14 % in 2008 and 23 % in 2009) was sold on the Chinese domestic market.  

(28)  The  levels  of  production  clearly  point  to  the  conclusion  that  in  the  absence  of 
measures,  significant  additional  quantities  of  Chinese  hand  pallet  trucks  could  be 
directed to the Union market. 

3.3. 

Attractiveness of  the  Union  market,  Chinese domestic prices and export prices  to 
third countries 

(29)  The  Union  market  remains  to  be  attractive  for  the  Chinese  exporting  producers  in 
terms  of  prices.  Imports  from  the  PRC  entered  the  EU  at  roughly  one  third  of  the 
prices charged by the Union industry to its unrelated EU customers. 

(30)  Based on the Chinese export statistics, it was found that during the RIP the Union was 
the destination for 40 % of all Chinese exports of hand pallet trucks. The USA is the 
second largest export market for Chinese hand pallet trucks, accounting for 20 % of all 
Chinese  exports,  while  the  remaining  volumes  are  fragmented  among  different 
destinations.  

(31)  Chinese  export  prices  to  the  EU  are  overall  in  line  with  the  average  Chinese  export 
prices to all third countries except the USA. However, it can be concluded that at least 
part of the Chinese exports to third countries other than the EU or the USA (40 % of 
total Chinese exports) could potentially be re-directed to the EU should measures be 
repealed.  Such  a  development  is  likely  not  only  because  higher  prices  could  be 
achieved in the absence of measures but notably because of the fragmentation of those 
third country exports. Given the importance of the EU market and already established 
sales channels, it would be easier to handle one export destination instead of different 
countries. 

(32)  Chinese export prices to the EU are considerably higher than Chinese export prices to 
the  USA  (17  %  more  expensive  during  the  RIP).  Given  the  non-cooperation  from 
Chinese exporters, it cannot be determined to what extent this price difference can be 
explained by differences in the product mix. Nevertheless, on the basis of the export 
data available, it cannot be excluded that hand pallet trucks currently exported to the 
USA at lower prices would be (partly) redirected to the Union market should measures 
be  repealed.  Such  a  development  could  be  explained  by  the  reasons  mentioned  in 
recital (31) above.  

(33)  The  above  price  comparisons  demonstrate  that  the  EU  remains  a  highly  attractive 
destination  for  the  Chinese  exporting  producers,  which  would  in  all  likelihood 
continue to export large quantities of hand pallet trucks at low prices. 

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3.4. 

Conclusion of the likelihood of continuation or recurrence of dumping 

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

D. 

DEFINITION OF THE UNION INDUSTRY 

1. 

Union production 

(35)  Within  the  Union,  the  like  product  is  manufactured  by  the  two  groups  of  companies 
which are the applicants, as well as by a third Union producer of hand pallet trucks. 
The  output  of  these  companies  constitutes  the  total  Union  production  of  the  like 
product within the meaning of Article 4(1) of the basic Regulation. 

2. 

Union industry 

(36)  Since these producers account for the total Union production of hand pallet trucks and 
their  essential  parts,  they  are  deemed  to  constitute  the  Union  industry  within  the 
meaning of Article 4(1) and Article 5(4) of the basic Regulation and will hereinafter 
be referred to as the 'Union industry'. 

(37)  One  non-cooperating  exporter  claimed  that  that  the  Commission  has  used  an 
inaccurate  definition  of  the  Union  industry  because  it  included  a  non-cooperating 
Union producer under the definition of Union  industry and in the scope of its injury 
analysis.  They  argued  that  this  was  done  in  violation  of  Article  5(4)  of  the  basic 
Regulation.  However,  pursuant  to  Article  4(1)  of  the  basic  Regulation,  the  Union 
industry includes Union producers of the like product as a whole. The non-cooperating 
producer therefore forms part of the Union industry according to the basic Regulation. 
As  explained  in  recital  (42),  data  for  the  non-cooperating  Union  producer  have  only 
been included with respect to the analysis of sales volumes to unrelated customers and 
market shares of the Union industry. It is also noted that in case the non-cooperating 
Union  producer  was  excluded  from  the  analysis,  the  findings  of  the  investigation 
would remain unchanged. 

E. 

SITUATION ON THE UNION MARKET 

1. 

Preliminary remark 

(38)  Given that no Chinese exporting producer of the product concerned cooperated in this 
investigation,  data  relating  to  imports  of  the  product  concerned  into  the  European 
Union originating in the PRC ('the country concerned') are based on Eurostat figures. 

2. 

Consumption in the Union market 

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

industry on the Union market and import data from Eurostat. 

(40)  Between  2007  and  the  RIP,  Union  consumption  decreased  by  40  %,  with  the  main 

decrease occurring between 2008 and 2009. 

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Total EU consumption (pieces) 
Index (2007=100) 

2007 
783.330 
100 

2008 
654.843 
84 

2009 
385.410 
49 

RIP 
468.557 
60 

Table 1 

3. 

Volume, market share and prices of imports from the PRC 

(41)  The volume of imports originating in the PRC has decreased by 37 % over the period 
considered  and  reached  a  level  of  387.907  pieces  during  the  RIP.  However, 
notwithstanding  the  significant  decrease  in  Union  demand,  the  market  share  of 
Chinese  imports  increased  over  the  period  considered  since  Chinese  imports  did  not 
decrease at the same rate as Union consumption. The market share of imports from the 
country concerned therefore significantly increased between 2007 and the RIP, when it 
reached around 83 %. The average price of the Chinese imports have slightly varied 
over the period considered. 

Table 2 

Volume of imports from the country concerned  
(pieces) * 
Index (2007=100) 
Market share of imports from the country concerned * 
Price of imports from the country concerned 
(EUR/piece) * 
Index (2007=100) 

2007 

2008 

2009 

RIP 

612.222 
100 
78 % 

522.573 
85 
80 % 

300.222 
49 
78 % 

387.907 
63 
83 % 

96 
100 

92 
96 

100 
104 

97 
101 

* Data from Eurostat. In 2007 and 2008, a part of Chinese products were declared with Thai 
origin, until the imposition of anti-circumvention measures on imports from Thailand in 2008. 
Therefore those Thai imports were added to the imports from the country concerned, sliughtly 
affecting the 2007 and 2008 data in Table 2 above. 

4. 

Economic situation of the Union industry  

(42)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
relevant  economic  factors  and  indices  having  a  bearing  on  the  state  of  the  Union 
industry. For confidentiality reasons (only two producers – the applicants – cooperated 
in the review) only indices are disclosed below. As concerns the total EU sales volume 
to  unrelated  customers  as  well  as  the  market  share  of  the  Union  industry  shown  in 
Tables  6  and  7  below,  in  order  to  be  consistent  with  Tables  1  and  2  above 
(consumption  and  Chinese  market  share),  the  data  are  based  on  all  three  Union 
producers  i.e.  including  the  two  applicant  groups  and  the  third  manufacturer  not 
cooperating  in  the  review  (the  sales  volume  figures  of  the  latter  are  based  on  the 
information submitted by the applicants). 

4.1. 

Production 

(43) 

In the RIP, production decreased by 35 % compared to 2007.  

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Production (pieces) 
Index (2007=100) 

Table 3 

2007 

2008 

2009 

RIP 

100 

84 

55 

65 

4.2. 

Capacity and capacity utilisation rates 

(44)  Production  capacity  remained  stable  between  2007  and  the  RIP.  While  capacity 
utilisation was already at a low level in 2007, the decrease in production between 2007 
and  the  RIP  led  to  a  further  significant  decrease  of  capacity  utilisation  by  20 
percentage points between 2007 and the RIP where capacity utilization was at a very 
low level. 

Table 4 

2007 

2008 

2009 

RIP 

100 

100 

100 

100 

100 

84 

55 

65 

Production capacity (pieces) 
Index (2007=100) 
Capacity utilisation 
Index (2007=100) 

4.3. 

Stocks  

(45)  The level of closing stocks of the Union industry increased by 56 % between 2007 and 

the RIP.  

Table 5 

2007 

2008 

2009 

RIP 

100 

131 

59 

156 

Closing stock (pieces) 
Index (2007=100) 

4.4. 

Sales volume  

(46)  The sales by the Union industry on the Union market to unrelated customers decreased 
by 50 % over the period considered with the largest decrease between 2008 and 2009. 

EU Sales volume to unrelated customers (pieces) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

79 

55 

50 

Table 6 

4.5.  Market share 

(47)  The  market  share  held  by  the  Union  industry  declined  from  an  already  low  level  in 
2007 by further 16 % between 2007 and the RIP. Two of the four Union producers of 

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the original investigation have stopped manufacturing hand pallet trucks. Both events 
can  be  seen  as  developing  from  the  increased  pressure  that  the  Chinese  dumped 
imports  have  been  exercising  on  the  European  market,  which  pressure  was  felt  even 
more by the Union industry in a situation of strongly decreasing consumption. 

Market share of the Union industry 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

95 

111 

84 

Table 7 

4.6. 

Growth  

(48)  Between  2007  and  the  RIP,  the  Union  consumption  decreased  by  40  %.  The  Union 
industry  lost  3,2  percentage  points  of  market  share,  whilst  the  imports  concerned 
gained 5 percentage points of market share. 

4.7. 

Employment 

(49)  The level of employment of the Union industry declined by 17 % between 2007 and 
the RIP. This shows the efforts made by the Union industry to rationalise production 
in a situation of strongly decreasing demand. 

Employment product concerned (persons) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

84 

76 

83 

Table 8 

4.8. 

Productivity 

(50)  Productivity  of  the  Union  industry's  workforce,  measured  as  output  per  person 

employed per year, decreased by 22 % between 2007 and the RIP.  

Productivity (pieces per employee) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

103 

74 

78 

Table 9 

4.9. 

Sales prices and factors affecting domestic prices 

(51)  Unit sales prices of the Union industry slightly increased by 4 % between 2007 and the 

RIP. 

Unit price EU market (EUR/piece) 
Index (2007=100) 

EN 

Table 10 

13 

2007 

2008 

2009 

RIP 

100 

101 

103 

104 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.10.  Wages  

(52)  Between 2007 and the RIP, the average wage per employee decreased by 29 %. This 
also shows the succesfull efforts made by the Union industry to contain costs, despite 
the problems caused by the drastic reduction in the volume of production.  

Table 11 

Annual labour cost per employee ('000 EUR) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

91 

63 

71 

4.11. 

Investments  

(53)  Between 2007 and the RIP, the annual flow of investments in the product concerned 

made by the Union industry decreased sharply by 91 %. 

Net investments (EUR) 
Index (2007=100) 

Table 12 

2007 

2008 

2009 

RIP 

100 

58 

27 

9 

4.12. 

Profitability and return on investments 

(54)  Profitability of the Union industry decreased substantially by 66 % between 2007 and 

the RIP.  

(55)  The  return  on  investments  (‘ROI’)  decreased  also  significantly,  by  57  %  during  the 

period considered. 

Table 13 

Net Profit of EU sales to unrelated customers (% of 
net sales) 
Index (2007=100) 
ROI (net profit in % of net book value of investments) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

100 

100 

68 

80 

-2 

-2 

34 

43 

4.13.  Cash flow and ability to raise capital  

(56)  The net cash-flow from operating activities is reported in table 14 below. There were 
no  indications  that  the  Union  industry  encountered  difficulties  in  raising  capital, 
mainly due to the fact that some of the producers are incorporated in larger groups. 

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Cash flow (EUR) 
Index (2007=100) 

Table 14 

2007 

2008 

2009 

100 

84 

65 

RIP 

73 

4.14.  Magnitude of dumping margin 

(57)  Given the volume, market share and prices of the imports from the PRC, the impact on 
the  Union  industry  of  the  actual  margins  of  dumping  cannot  be  considered  to  be 
negligible. 

4.15.  Recovery from the effects of past dumping  

(58)  The indicators examined above show that, notwithstanding the imposition of the anti-
dumping measures in 2005, the economic and financial situation of the Union industry 
has  remained  substantially  fragile,  because  of  the  overwhelming  presence  of  low 
priced  chinese  goods  in  the  EU  market.  This  already  precarious  situation  has  turned 
into a clearly injurious picture during 2009 and the RIP, when a substantial decrease in 
Union consumption has highlighted the full extent of the negative pressure exerced by 
the dumped chinese imports. During that period in fact, the Union industry has seen its 
production  and  sales  volumes  decrease  at  a  higher  rate  than  the  Union  consumption 
and has therefore experienced a substantial additional loss in market shares. Over the 
same  period,  and  despite  the  measures,  the  market  share  of  Chinese  imports  has 
further  increased  and  Chinese  products  have  continued  to  be  imported  at  prices 
substantially  lower  than  the  prices  of  the  Union  industry.  During  the  RIP,  profits 
further decreased for the Union industry. Therefore, the Union industry was not able to 
recover  from  the  effects  of  dumping  and  its  situation  has  even  further  deteriorated 
during the RIP. 

4.16.  Conclusions 

(59)  Between  2007  and  the  RIP,  and  notwithstanding  the  existence  of  the  anti-dumping 
measures,  a  number  of  important  indicators  developed  negatively:  profitability 
decreased by 4,9 percentage points, production and sales volumes decreased by 35 % 
and 50 % respectively, capacity utilisation went down by 35 % and was followed by a 
decrease  in  employment.  Although  a  part  of  these  negative  developments  may  be 
explained  by  the  strong  decrease  in  consumption,  which  declined  by  40  %  over  the 
period  considered,  the  Union  industry's  further  decrease  in  market  share  (down  by  4 
percentage points between 2007 and the RIP) and the constant increase in market share 
of imports from the PRC is a clear sign of the increasing pressure resulting from the 
dumped Chinese imports. Given the quasi monopoly already reached by the Chinese 
imports in the Union market, any further increase of Chinese imports, also because of 
their  significantly  low  prices,  may  reduce  the  level  of  production  utilisation  of  the 
Union  industry  under  the  minimum  necessary  to  ensure  its  sustainability.  In  this 
respect,  it  is  recalled  that  two  Union  producers  have  been  forced  to  leave  the  hand 
pallet  truck  business  in  the  course  of  the  period  considered,  as  already  mentioned  at 
recital (47) above.  

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(60) 

In its comments to the disclosure one Chinese exporting producer claimed that certain 
indicators  including  production,  sales  volume,  profitability,  capacity  utilisation, 
employment show in fact no negative development for the Union industry. However, 
the company had only looked at the development between 2009 and the RIP while for 
the  assessment  of  injury  the  overall  development  of  the  Union  industry  during  the 
period considered, i.e. between 2007 and the RIP needs to be assessed. As explained 
above  (see  recitals  (43)  to  (49)),  all  the  injury  indicators  mentioned  by  the  Chinese 
exporter developed in a negative direction during the period considered. 

(61)  Moreover, the same exporter claimed that the Commission did not distinguish between 
the injurious effects caused by the dumped imports and other effects, in particular the 
slump  of  demand  as  a  result  of  the  economic  crisis.  However,  while  it  is  true  that 
Union consumption decreased by 40 % over the period considered, Chinese exporters 
managed  to  significantly  gain  market  share  at  the  same  time  at  the  expense  of  the 
Union  industry.  In  addition,  as  explained  in  recital  (58)  above,  it  is  recalled  that  the 
impact  of  dumped  imports  was  actually  more  injurious  during  the  period  of  weak 
demand. 

It is therefore concluded that, despite the existence of the antid-umping measures, the 
Union industry has suffered material injury during the RIP. 

5. 

Impact of dumped imports and other factors  

5.1. 

Impact of the dumped imports  

(62)  Despite a decrease in consumption in the European Union over the period considered, 
the volume of imports from the country concerned did not decrease at the same rate, 
thereby resulting  in  the Chinese imports further increasing their market share.  In the 
absence  of  cooperation  from  Chinese  exporting  producers,  price  undercutting  and 
underselling  were  calculated  on  the  basis  of  best  facts  available,  which  included 
various  sources  of  information  i.e.  Eurostat  data,  offers  from  Chinese  exporting 
producers as submitted by the applicants, and export invoices collected from Member 
States'  customs  authorities.  The  imports  from  the  country  concerned  were  found  to 
clearly  undercut  the  prices  of  the  Union  industry  by  between  43  %  and  78  %, 
depending on the source of information used. 

5.2. 

Imports from other countries 

(63) 

Imports  from  other  countries  are  at  a  very  low  level  and  dropped  further  by  79 % 
between  2007  and  the  RIP.  The  market  share  of  imports  from  other  countries 
decreased  during  the  RIP  as  well.  For  confidentiality  reasons  (two  producers  are 
constituting the Union industry) only indices are disclosed below. 

Table 15 

Volume of imports from other countries (pieces) 
Index (2007=100) 
Market share of imports from the other countries 
Index (2007=100) 

6. 

Conclusion  

2007 

2008 

2009 

RIP 

100 

100 

60 

71 

6 

12 

21 

34 

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16 

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(64)  As shown under recital (41) the imports from the country concerned have increased in 
terms of market share over the period considered, and this despite a significant drop in 
Union consumption. This has increased the market share held by Chinese imports to 
83  %  of  Union  consumption  during  the  RIP.  This  increased  pressure  in  terms  of 
volumes, despite an overall shrinking demand, has been coupled with significantly low 
Chinese  import  prices  to  the  Union,  which  considerably  undercut  the  prices  of  the 
Union  industry.  It  is  therefore  concluded  that  there  is  a  causal  link  between  the 
dumped imports from the PRC and the material injury suffered by the Union industry 
during the RIP. 

F. 

LIKELIHOOD OF CONTINUATION OF INJURY 

1. 

Preliminary remarks 

(65)  As already seen, the imposition of anti-dumping measures has not allowed the Union 

industry to recover from the injury suffered.  

2. 

Likely development of Chinese exports in case measures are repealed  

(66)  As  mentioned  at  recital  (27)  above,  huge  production  capacities  are  available  in  the 
PRC.  The  production  levels  in  2008  and  2009,  respectively  1,5  million  units  and 
800.000  units,  were  already  more  than  twice  the  size  of  the  entire  EU  market.  In 
addition,  only  a  limited  fraction  of  Chinese  production  (14  %  in  2008  and  23  %  in 
2009) was sold on the Chinese domestic market. In the absence of measures, therefore, 
significant additional quantities of Chinese hand pallet trucks could be directed to the 
Union market. 

(67)  As mentioned above at recital (31), Chinese export prices to the EU are overall in line 
with  the  average  Chinese  export  prices  to  all  third  countries.  However,  it  can  be 
concluded that at least part of the Chinese exports to third countries other than the EU 
or the USA (40 % of total Chinese exports) could potentially be re-directed to the EU 
should  measures  be  repealed.  Such  a  development  is  likely  not  only  because  higher 
prices  could  be  achieved  in  the  absence  of  measures  but  notably  because  of  the 
fragmentation of those third country exports. Given the importance of the EU market 
and  already  established  sales  channels,  it  would  be  easier  to  handle  one  export 
destination instead of bulk of different countries.  

3. 

Conclusion  

(68) 

In the light of the findings mentioned at recitals (66) and (67) above, it is concluded 
that  there  is  likelihood  that  the  material  injury  found  during  the  RIP  will  continue 
should the measures be repealed. This is likely to lead to a further deterioration of the 
economic and financial situation of the Union  industry, which  could even jepodarsie 
its existence in the medium term.  

1. 

Introduction 

G. 

UNION INTEREST 

(69) 

In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether  the 
maintenance  of  the  existing  anti-dumping  measures  would  be  against  the  interest  of 
the  Union  as  a  whole.  The  determination  of  the  Union  interest  was  based  on  an 

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appreciation  of  the  various  interests  involved,  i.e.  those  of  the  Union  industry,  of 
importers, and of users.  

(70) 

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

(71)  On this basis it was examined whether, despite the conclusions on the likelihood of a 
continuation  of  injurious  dumping,  it  could  be  clearly  concluded  that  it  is  not  in  the 
Union interest to maintain measures in this particular case.  

2. 

Interest of the Union industry 

(72)  The Union industry has consistently lost market share while imports from the country 
considered  have  substantially  increased  in  market  share  over  the  period  considered. 
Two of the original four Union producers have stopped the production of the product 
investigated.  Moreover,  the  Union  industry  has  suffered  material  injury  during  the 
period  considered.  Without  the  existence  of  the  measures,  the  Union  industry  would 
likely be in an even worse situation. 

3. 

Interest of importers and users 

(73)  None of unrelated importers and users that were contacted came forward to cooperate. 
It  is  recalled  that,  in  the  original  investigation,  it  was  found  that  the  impact  of  the 
imposition of measures would not be significant for the users. Despite the existence of 
measures for five years, importers/users in the Union continued to source their supply 
mainly from the PRC. No indications were brought forward either that there have been 
difficulties  in  finding  other  sources.  Moreover,  it  is  recalled  that  in  the  original 
investigation cooperating users remained neutral as to the imposition of measures and 
it was concluded that hand pallet trucks were of a minor importance in their business. 
No indications of the contrary were found in the course of this review. It is therefore 
concluded that the maintenance of the anti-dumping measures is not likely to have a 
serious effect on importers/users in the Union. In fact, without measures the Chinese 
dumped imports could monopolise the EU hand pallet trucks market. 

4. 

Conclusion  

(74)  Given  the  above,  it  cannot  be  clearly  concluded  that  the  maintenance  of  the  current 

anti-dumping measures would not be in the Union interest.  

H. 

ANTI-DUMPING MEASURES 

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

(76) 

In  its  comments  to  the  disclosure,  the  Union  industry  stressed  that  the  dumping  and 
undercutting  levels  found  in  the  review  are  much  higher  than  in  the  original 
investigation  and  that  there  was  increasing  pressure  from  dumped  Chinese  imports. 

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(77) 

(78) 

The  Union  industry  therefore  submitted  that  the  Commission  should  also  consider 
reassessing the level of the anti-dumping duties. In view of these comments, and also 
in view of the findings of this review, consideration is being given to the possibility of 
opening a full interim review limited to dumping. 

It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation, the anti-dumping measures applicable to imports of hand pallet trucks and 
their  essential  parts  originating  in  the  People's  Republic  of  China  should  be 
maintained. It is recalled that these measures consist of an ad valorem duty at different 
rates. 

It  is  recalled  that  the  measures  subject  to  the  current  review  were  extended  by 
Regulatio (EC) No 499/2009 to imports of the same product, consigned from Thailand 
whether originating in Thaliand or not. No new element was brought forward in this 
respect in the framework of this review. The definitive anti-dumping duty of 46,7 % 
and  applicable  "for  all  other  companies"  to  imports  originating  in  the  PRC  should 
therefore  be  extended  to  imports  of  the  same  product  consigned  from  Thailand, 
whether declared as originating in Thailandor not.  

(79)  The  individual  company  anti-dumping  duty  rates  specified  in  this  Regulation  are 
solely  applicable  to  imports  of  the  product  concerned  produced  by  these  companies 
and  thus  by  the  specific  legal  entities  mentioned.  Imports  of  the  product  concerned 
manufactured by any other company not specifically mentioned in the operative part 
of  this  Regulation  with  its  name  and  address,  including  entities  related  to  those 
specifically mentioned, cannot benefit from these rates and shall be subject to the duty 
rate applicable to 'all other companies'.  

(80)  Any claim requesting the application of these individual anti-dumping duty rates (e.g. 
following  a  change  in  the  name  of  the  entity  or  following  the  setting  up  of  new 
production or sales entities) should be addressed to the Commission7 forthwith with all 
relevant information, in particular any modification in the company’s activities linked 
to  production,  domestic  and  export  sales  associated  with,  for  instance,  that  name 
change  or  that  change  in  the  production  and  sales  entities.  If  appropriate,  the 
Regulation  will  then  be  amended  accordingly  by  updating  the  list  of  companies 
benefiting from individual duty rates, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 
A definitive anti-dumping duty is hereby imposed on imports of hand pallet trucks and 
their essential parts, i.e. chassis and hydraulics, currently falling within CN codes ex 8427 90 
00 (TARIC codes 8427 90 00 11 and 8427 90 00 19) and ex 8431 20 00 (TARIC codes 8431 
20 00 11 and 8431 20 00 19), originating in the People's Republic of China. For the purpose 
of this Regulation, hand pallet trucks shall be trucks with wheels supporting lifting fork arms 
for  handling  pallets,  designed  to  be  manually  pushed,  pulled  and  steered,  on  smooth,  level, 
hard surfaces, by a pedestrian operator using an articulated tiller. The hand pallet trucks are 
only designed to raise a load, by pumping the tiller, to a height sufficient for transporting and 

7 

European Commission, Directorate-General for Trade, Directorate H, B-1049 Brussels, Belgium. 

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do not have any other additional functions or uses such as for example (i) to move and to lift 
the loads in order to place them higher or assist in storage of loads (highlifters), (ii) to stack 
one  pallet  above  the  other  (stackers),  (iii)  to  lift  the  load  to  a  working  level  (scissorlifts)  or 
(iv) to lift and to weigh the loads (weighing trucks). 

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net  free-at-Union-
2. 
frontier  price,  before  duty,  for  the  products  described  in  paragraph  1  and  produced  by  the 
companies listed below shall be as follows: 

Company 

Ningbo Liftstar Material Transport Equipment Factory, 
Zhouyi  Village,  Zhanqi  Town,  Yin  Zhou  District, 
Ningbo City, Zhejiang Province, 315144, PRC 

Rate of 
duty 
(%) 

TARIC 
additional
code 

32,2 

A600 

Ningbo  Ruyi  Joint  Stock  Co.  Ltd,  656  North  Taoyuan 
Road, Ninghai, Zhejiang Province, 315600, PRC 

28,5 

A601 

Ningbo  Tailong  Machinery  Co.  Ltd,  Economic 
Developing  Zone,  Ninghai,  Ningbo  City,  Zhejiang 
Province, 315600, PRC 

39,9 

A602 

Zhejiang  Noblelift  Equipment  Joint  Stock  Co.  Ltd,  58, 
Jing Yi Road, Economy Development Zone, Changxin, 
Zhejiang Province, 313100, PRC 

7,6 

A603 

All other companies 

46,7 

A999 

3. 
The  definitive  anti-dumping  duty  applicable  to  'all  other  companies',  as  set  out  in 
paragraph 2, is hereby extended to imports of hand pallet trucks and their essential parts, i.e. 
chassis and hydraulics, as further defined in paragraph 1, currently falling within CN codes ex 
8427  90  00  and  ex  8431  20  00  (TARIC  codes  8427  90  00  11  and  8431  20  00  11)  and 
consigned from Thailand, whether declared as originating in Thailand or not. 

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

4. 
apply. 

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

Article 2 

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

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Done at Brussels,  

For the Council 
The President 

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