Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of trichloroisocyanuric acid originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
Date: 2011-11-25
Institutions: European Commission
Subjects: China, anti-dumping duty, chlorine, import (EU), originating product

EUROPEAN COMMISSION 

Brussels, 25.11.2011 
COM(2011) 806 final 

2011/0381 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of trichloroisocyanuric acid 
originating in the People’s Republic of China following an expiry review pursuant to 
Article 11(2) of Regulation (EC) No 1225/2009 

 
 
  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  1225/2009  of 
30 November 2009 on protection against dumped imports from countries not members 
of the European Community1 (‘the basic Regulation’) in the expiry review proceeding 
concerning the anti-dumping duty in force in respect of imports of trichloroisocyanuric 
acid originating in the People’s Republic of China (‘PRC’). 

0 

General context 

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

Existing provisions in the area of the proposal 

By  Regulation  (EC)  No  1631/20052  the  Council  imposed  definitive  anti-dumping 
measures consisting of individual duties ranging from 7.3 % to 40.5 % with a residual 
duty  of  42.6 %3  on  imports  of  trichloroisocyanuric  acid  originating  in  the  People’s 
Republic of China (‘PRC’). 

By Regulation (EC) No 855/20104 the Council lowered the individual duty applied to 
one company from 14.1 % to 3.2 %. 

Consistency with other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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

Collection and use of expertise 

There was no need for external expertise. 

1 
2 
3 

4 

OJ L 343, 22.12.2009, p. 51. 
OJ L 261, 7.10.2005, p. 1. 
Duties  range  from  7.3 %  (Puyang)  to  8.1 %  (Hebei),  14.1 %  (Heze),  40.5 %  (Zhucheng)  and  42.6 % 
(other exporting producers). 
OJ L 254, 29.9.2010, p. 1. 

EN 

1 

   EN 

 
 
 
 
 
 
 
 
 
                                                 
Impact assessment 

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

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

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

On  6  October  2010,  the  Commission  announced  by  a  notice  (‘Notice  of  initiation’), 
published  in  the  Official  Journal  of  the  European  Union5,  the  initiation  of  an  expiry 
review of the anti-dumping measures applicable to imports of trichloroisocyanuric acid 
originating in the PRC. 

The  review  was  initiated  following  a  substantiated  request  lodged  by  the  European 
Chemical  Industry  Council  on  behalf  of  Union  producers  representing  a  major 
proportion,  in  this  case  more  than  90 %,  of  the  total  Union  production  of 
trichloroisocyanuric acid. 

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

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.  

Legal basis 

Council  Regulation  (EC)  No  1225/2009  of  30  November  2009  on  protection  against 
dumped imports from countries not members of the European Community6. 

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 abovementioned basic Regulation and leaves no 
scope for national decision. 

An indication of how the financial and administrative burden falling upon the Union, 
national governments, regional and local authorities, economic operators and citizens is 

5 
6 

OJ C 270, 6.10.2010, p. 7. 
OJ L 343, 22.12.2009, p. 51. 

EN 

2 

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minimised and proportionate to the objective of the proposal is not applicable. 

Choice of instruments 

Proposed instrument: regulation. 

Other means would not be adequate for the following reason. 

The basic Regulation does not provide for alternative options. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

EN 

3 

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2011/0381 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of trichloroisocyanuric acid 
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 Community7 (‘the basic 
Regulation’), and in particular Article 11(2) thereof, 

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

Whereas: 

A. 

PROCEDURE 

1.  Measures in force 

(1) 

By  Regulation  (EC)  No  1631/20058  the  Council  imposed  definitive  anti-dumping 
measures consisting of individual duties ranging from 7.3 % to 40.5 % with a residual 
duty  of  42.6 %9  on  imports  of  trichloroisocyanuric  acid  originating  in  the  People’s 
Republic of China (‘PRC’). 

(2) 

By Regulation (EC) No 855/201010 the Council lowered the individual duty applied to 
one company from 14.1 % to 3.2 %. 

7 
8 
9 

10 

OJ L 343, 22.12.2009, p. 51. 
OJ L 261, 7.10.2005, p. 1. 
Duties  range  from  7.3 %  (Puyang)  to  8.1 %  (Hebei),  14.1 %  (Heze),  40.5 %  (Zhucheng)  and  42.6 % 
(other exporting producers). 
OJ L 254, 29.9.2010, p. 1. 

EN 

4 

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2.  Request for a review 

(3) 

Following  the  publication  of  a  notice  of  impending  expiry11  of  the  definitive  anti-
dumping measures in force, on 6 July 2010 the Commission received a request for the 
initiation of an expiry review of these measures pursuant to Article 11(2) of the basic 
Regulation.  The  request  was  lodged  by  the  European  Chemical  Industry  Council 
(‘CEFIC’) on behalf of Union producers representing a major proportion, in this case 
more  than  90 %,  of  the  total  Union  production  of  trichloroisocyanuric  acid  (‘the 
applicants’). 

(4) 

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. 

(5) 

(6) 

(7) 

(8) 

(9) 

3. 

Initiation 

Having determined, after consulting the Advisory Committee, that there was sufficient 
evidence  for  the  initiation  of  an  expiry  review,  on  6  October  2010  the  Commission 
announced  the  initiation  of  such  a  review,  pursuant  to  Article  11(2)  of  the  basic 
Regulation, in a notice published in the Official Journal of the European Union12 (‘the 
Notice of initiation’). 

4. 

Investigation 

4.1. Investigation period 

The review investigation period (RIP) lasted from 1 July 2009 to 30 June 2010. The 
likelihood  of  continuation  or  recurrence  of  injury  aspects  was  analysed  during  the 
period from 1 January 2007 to the end of the RIP (period considered). 

4.2. Parties concerned by the investigation 

The  Commission  officially  advised  the  applicants,  the  other  known  Union  producer, 
exporting  producers,  importers  and  users  known  to  be  concerned,  as  well  as  the 
representatives of the PRC, of the initiation of the expiry review.  

Interested  parties  were  given  the  opportunity  to  make  their  views  known  in  writing 
and  to  request  a  hearing  within  the  time  limit  set  out  in  the  Notice  of  initiation.  All 
interested  parties  who  requested  a  hearing  and  who  showed  that  there  were  specific 
reasons why they should be heard, were granted a hearing. 

In  view  of  the  apparently  large  number  of  exporting  producers  in  the  PRC  and 
unrelated  importers  in  the  Union,  sampling  was  envisaged  for  these  parties  in  the 
notice of initiation, 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, the above parties were requested, pursuant to Article 17 
of the basic Regulation, to make themselves known within 15 days of the publication 

11 
12 

OJ C 104, 23.4.2010, p. 15. 
OJ C 270, 6.10.2010, p. 7. 

EN 

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of  the  notice  of  initiation  and  to  provide  the  Commission  with  the  information 
requested in the Notice of initiation.  

(11)  None of the exporting producers in the PRC cooperated in the investigation. 

(12)  As regards importers, a few companies initially came forward but then withdrew their 

cooperation at a later stage. 

(13)  The Commission sent questionnaires to all the parties known to be concerned within 
the  deadlines  set  in  the  Notice  of  initiation.  Replies  were  received  from  the  three 
known Union producers and from two users. 

(14)  The  Commission  sought  and  verified  all  the  information  it  deemed  necessary  with  a 
view  to  determining  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 two major EU producers: 

- 

- 

Fluidra (Inquide Sau), Passeig de Sanllehy, 25, 08213 Polinya (Barcelona), Spain; 

Ercros (Aragonesas), Avenida Diagonal 595, Barcelona, Spain. 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(15)  The  product  concerned  by  the  current  review  is  trichloroisocyanuric  acid  and 
preparations thereof (‘TCCA’), also referred to as ‘symclosene’ under the international 
non-proprietary name (INN), currently falling within CN codes ex 2933 69 80 and ex 
3808 94 20 (TARIC codes 2933 69 80 70 and 3808 94 20 20), and originating in the 
People’s Republic of China. 

(16)  TCCA  is  a  chemical  product  used  as  a  broad-spectrum  organic  chlorine  disinfectant 
and bleacher, in particular used for disinfecting water in swimming pools. It is sold in 
the  form  of  powder,  granules,  tablets  or  chips.  All  forms  of  TCCA  and  preparations 
thereof  share  the  same  basic  characteristics  (chemical  composition)  and  properties 
(disinfectant), are all intended for similar use and are therefore considered as a single 
product. 

(17)  The present investigation has confirmed that the product concerned, as manufactured 
and sold by  exporting  producers  to the Union, is similar in terms of its physical and 
chemical characteristics, as well as its uses, to the product produced and sold by the 
Union producers on the Union market and by the producer in the analogue country on 
both its domestic and export markets. Hence, they are considered to be like products 
within the meaning of Article 1(4) of the basic Regulation. 

C. 

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING 

1. 

Preliminary remarks 

(18) 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  a  review  was  held  to 
determine  whether  the  expiry  of  the  existing  measures  was  likely  to  lead  to  a 
continuation or recurrence of dumping. 

EN 

6 

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(19)  As  explained  above,  none  of  the  30  known  exporting  producers  contacted  came 
forward during the sampling exercise or made themselves known in the course of the 
investigation. 

(20)  Since  none  of  the  exporting  producers  in  the  PRC  cooperated,  the  findings  on  the 
likelihood  of  continuation  or  recurrence  of  dumping  rely  on  facts  available  in 
accordance with Article 18 of the basic Regulation, namely Eurostat data, the review 
request and official Chinese export statistics. 

(21)  Additionally,  data  submitted  by  the  cooperating  exporting  producer  in  the  analogue 

country, Japan, were used to determine the normal value. 

2.  Dumping of imports during the RIP 

2.1  Analogue country 

(22)  Since the People’s Republic of China is an economy in transition and since, pursuant 
to  Article  2(7)(a)  of  the  basic  Regulation,  normal  value  has  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  on  the  basis  of  the  price  from  the 
analogue  country  to  other  countries,  including  the  European  Union,  or  where  those 
cannot be determined, 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. 

(23) 

In its Notice of initiation the Commission announced that Japan had been used in the 
previous  investigation  as  an  appropriate  market  economy  country  for  the  purpose  of 
establishing  normal  value  in  respect  of  the  PRC  and  that  it  envisaged  using  Japan 
again for this purpose. In the course of the present review investigation, producers in 
other market economy countries such as the USA and Taiwan were also contacted, to 
seek  their  cooperation.  However,  cooperation  was  obtained  only  from  one  exporting 
producer in Japan. 

(24) 

It  was  therefore  considered  that  Japan  was  an  appropriate  analogue  country.  In  this 
connection,  no  comments  or  objections  on  the  appropriateness  of  this  country  were 
received from interested parties. 

2.2  Normal value 

(25)  Pursuant to Article 2(7) of the basic Regulation, normal value was established on the 
basis  of  the  information  received  from  the  cooperating  exporting  producer  in  the 
analogue country, i.e. on the basis of prices paid or payable on the domestic market in 
Japan for like products which were found to be sold in the ordinary course of trade. 

(26) 

It  was  first  established  for  the  cooperating  exporting  producer  in  Japan  whether  its 
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  at  least  5 %  of  the  total  export  sales  volume  of  the  product  concerned  into  the 
Union. Domestic sales of the cooperating exporting producer in Japan were found to 
be representative during the RIP. 

EN 

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(27)  Subsequently, domestic sales were examined to determine whether they were made in 
the  ordinary  course  of  trade  (‘OCOT’),  in  accordance  with  Article  2(4)  of  the  basic 
Regulation. 

(28)  Since all sales on the domestic market were considered to have been sold at a profit, 
normal value was based on the actual weighted average domestic price during the RIP. 

2.3  Export price 

(29) 

In  the  absence  of  any  cooperation  from  exporting  producers  in  the  PRC,  the  export 
price was established on the basis of Eurostat data. 

2.4  Comparison 

(30)  The comparison between the weighted average normal value and the weighted average 
export price was made on an ex-works basis and at the same level of trade. In order to 
ensure a fair comparison between the normal value and the export price, account was 
taken,  in  accordance  with  Article  2(10)  of  the  basic  Regulation,  of  differences  in 
factors which affect prices and price comparability. For this purpose, due allowance in 
the form of adjustments was made for differences in transport and insurance costs. 

2.5  Dumping margin 

(31)  As  provided  for  under  Article  2(11)  of  the  basic  Regulation,  the  weighted  average 
normal  value  was  compared  with  the  weighted  average  export  price.  Based  on  the 
above methodology, the dumping margin established amounts to 75 %. 

3.  Development of imports if measures were repealed 

3.1  Preliminary remark 

(32) 

(33) 

In addition to analysing the existence of dumping during the RIP, the likelihood of the 
continuation of dumping was also investigated. 

In  this  respect  the  following  elements  were analysed:  the  spare  capacity  available  in 
the PRC, the attractiveness of the Union market for Chinese exporting producers and 
their exports to third countries. 

3.2  Spare capacity of Chinese exporting producers 

(34) 

In the absence of other information concerning production capacity, the analysis was 
carried out in accordance with Article 18 of the basic Regulation on the basis of the 
information contained in the review request. 

(35)  According to the review request, with rates below 40 % production capacity utilisation 
in the PRC remained low during the period considered. As a result of huge production 
capacity and low domestic demand, there appears to be more than 180 000 tonnes of 
spare capacity available in the PRC which could be exported. This compares to Union 
consumption of around 44 000 tonnes in the RIP. 

3.3.  Attractiveness of the Union market 

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(36)  The  attractiveness  of  the  Union  market  is  reflected  in  the  fact  that  the  imposition  of 
anti-dumping  duties  did  not  stop  the  expansion  of  Chinese  exports  to  the  Union. 
Although during the period 2007-2009 import volumes were at a lower level compared 
to the investigation period of the original investigation that led to the imposition of the 
measures, import volumes in the RIP were above that level, reaching 22 696 tonnes. 

(37)  Despite the increase in the average import price during the period considered, prices 

remained constantly below those of the Union industry. 

(38)  The fact that Chinese imports during the period considered increased during the RIP to 
a level that was higher than during the original investigation period shows that there is 
continued Chinese interest in the Union market. 

3.4.  Export prices to third countries 

(39)  Chinese  export  statistics  were  analysed  with  respect  to  Chinese  export  volumes  and 
prices to other third countries. According to these statistics, 24 % of exports from the 
PRC in 2010 were destined for the Union market. EU export prices at FOB level were 
slightly higher than export prices to the rest of the world. However, in the absence of 
cooperation  or  any  data  in  the  review  request  regarding  exports  to  other  third 
countries,  it  was  not  possible  to  compare  those  prices  at  CIF  level  with  the  average 
price of the Union industry. Nevertheless, the fact that export prices to third countries 
are on average lower than export prices to the Union can be seen as an indication that 
the Union market is an attractive market for Chinese exporters and that exports would 
be likely to increase further in the absence of measures. 

4.  Conclusion of the likelihood of continuation or recurrence of dumping 

(40) 

In view of the above findings, it can be concluded that exports from the PRC are still 
being dumped and that it is likely that dumping will continue on the Union market if 
the  current  anti-dumping  measures  are  removed.  Indeed,  taking  into  account  the 
existing spare capacity in the PRC and the attractiveness of the Union market, based 
on  a  comparison  between  export  prices  to  the  EU  and  those  to  third  countries,  it  is 
likely  that  the  volume  of  dumped  Chinese  exports  into  the  Union  would  increase 
substantially if measures were allowed to lapse. 

D. 

SITUATION ON THE UNION MARKET 

1.  Definition of the Union industry 

(41)  The  product  concerned  is  manufactured  within  the  Union  by  three  companies.  They 
are  therefore  deemed  to  constitute  the  Union  industry  within  the  meaning  of 
Article 4(1)  and  Article  5(4)  of  the  basic  Regulation  (hereinafter  referred  to  as  the 
‘Union industry’). 

2. 

Preliminary remark 

(42)  Data  were  obtained  from  Eurostat  statistics,  the  review  request,  the  responses  to  the 

questionnaire and information gathered during the verification visits. 

(43)  The economic indicators concerning production, capacity, utilisation rate of capacity, 
volume  of  sales,  market  share  and  employment  refer  to  data  supplied  by  the  three 

EN 

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Union producers. All the other indicators refer to data supplied by the applicants only, 
because  of  the  limited  cooperation  of  one  of  the  Union  producers  that  was  not  an 
applicant  in  the  present  review.  Considering  that  the  applicants  represented  around 
90 % of EU production in the RIP, their data were deemed to be representative of the 
Union  industry  for  the  purposes  of  this  review.  Only  the  data  obtained  from  the 
applicants were verified on the spot. 

(44)  Data relating to the economic situation of the Union industry as well as consumption 
can  only  be  provided  in  indexed  form,  so  as  to  preserve  confidentiality  pursuant  to 
Article 19 of the basic Regulation. This is because such economic indicators concern 
only  two  producers  or,  in  some  cases,  three  producers,  one  of  them  being  only 
marginally active in the sector. 

(45) 

In  June  2009,  one  of  the  applicants  closed  down  one  of  its  two  plants,  stopping 
production as of this date and laying off all employees. At first the plant in question 
was put on hold for a few months, but it closed down definitely in January 2010. This 
had some impact on a number of indicators such as consumption, production volume 
and productivity, as further explained below in recitals (47) and (62). 

3.  Consumption in the Union market 

(46)  Union  consumption  was  established  on  the  basis  of  the  sales  volume  of  the  three 

Union producers on the EU market and import data from Eurostat. 

(47)  Between  2007  and  2009  EU  consumption  of  TCCA  decreased  by  19 %  before 
recovering in the RIP at a level exceeding by 6 % the one achieved in 2007. For the 
years  2008  and  2009  this  trend  can  be  explained  by  the  combined  effects  of  lower 
demand, due to the global economic crisis, and restricted supply, due to the closure of 
one  production  site  in  2009  (see  recital  (45)).  The  higher  level  of  EU  consumption 
achieved in the RIP is mainly linked to the recovery from the economic crisis and the 
increase of imports from the PRC. 

Table 1 
EU Consumption 

2007 

2008 

2009 

RIP 

EU Consumption (MT) 
Index (2007=100)  

100 

93 

81 

106 

4.  Volume and market share of dumped imports from the People’s Republic 

of China 

(48)  Trends in the volumes and market shares of dumped imports from the PRC are set out 
below.  The  following  quantity  and  market  shares  are  based  on  Eurostat  import 
statistics, since no Chinese exporters/producers cooperated in this review. 

(49)  Quantities of TCCA imported from the PRC decreased slightly in 2008 and 2009. This 
downturn in imports was followed by a significant increase in the RIP (more than 35 % 

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as compared to 2009). In parallel, Chinese imports continuously increased their market 
share during the period considered. 

Table 2 
PRC import volumes and market shares 

Import volumes in MT 

2007 

2008 

2009 

RIP 

17 957 

17 298 

16 645 

22 696 

Index (2007=100)  

Market shares (Ranges) 

100 
40 %-
50 % 

96 
40 %-
50 % 

93 
45 %-
55 % 

126 
50 %-
60 % 

5. 

Trends in prices of dumped imports from the People’s Republic of China 
and price undercutting 

5.1  Trends in prices 

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(50)  Prices of imports from the PRC have shown a steady increase of 11.3 %. On the one 
hand  this  trend  can  be  attributed  to  the  evolution  of  the  prices  of  the  main  raw 
materials component that started to increase more substantially in 2009 and during the 
RIP.  On  the  other  hand,  it  may  to  a  certain  extent  reflect  a  variation  in  the  product 
mix13. 

Table 3 
PRC unit price  

2007 

1 048 
100 

2008 

1 052 
100.4 

2009 

1 163 
111 

RIP 

1 167 
111.3 

EUR/MT 
Index (2007=100) 

5.2  Price undercutting 

(51)  Overall, the prices of Chinese imports remained below the prices of the Union industry 
during  the  entire  period.  In  determining  the  extent  of  price  undercutting,  the 
Commission  based  its  calculation  on  the  average  CIF  export  prices  of  the  PRC 
obtained  from  Eurostat.  The  prices  of  the  product  concerned  were  compared  to  the 
weighted  average  price  of  the  Union  industry  adjusted  to  ex-works  level.  The 
comparison  showed  that  imports  from  the  PRC  were  undercutting  the  prices  of  the 
Union industry by more than 10 %, without taking into account the anti-dumping duty 
in place. 

6. Imports from other countries 

(52)  The  volume  and  market  shares  of  imports  from  other  countries  during  the  period 
considered  are  shown  in  the  table  below.  The  respective  data  is  based  on  Eurostat 
figures: 

Table 4 
Imports from other countries (volume and market share) 

third 

Volume of imports from 
other 
countries 
(MT) 
Market  share  of  imports 
third 
other 
from 
countries (Ranges) 

2007 

2008 

2009 

RIP 

501 

239 

296 

378 

Below 
2 % 

Below 
2 % 

Below 
2 % 

Below 
2 % 

(53) 

In  terms  of  volume  and  market  share,  imports  from  other  third  countries  were 
negligible  during  the  period  considered.  Imports  from  the  USA,  another  country 
subject to an anti-dumping measure, stopped completely during the period considered. 

13 

The product concerned is manufactured in different forms falling into two main categories: granular and 
powder products on the one hand and tablets on the other. Prices for tablets are higher than prices for 
granular  and/or  powder  products.  This  means  that  the  prices  of  the  product  concerned  may  vary 
according  to  the  variation  in  composition  of  the  given  product  mix.  In  other  words,  a  product  mix 
containing  a  higher  proportion  of  tablets  would  be  more  expensive  than  a  product  mix  containing 
comparatively more granular and powder products. 

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7. 

Economic situation of the Union industry 

(54)  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. 

7.1.  Production 

(55)  There  was  a  serious  decline  in  production  from  2009  onwards  following  the  global 
economic  crisis  and  the  closing  down  of  one  production  facility  in  June  2009,  when 
production from that plant stopped completely (see recital (45) above). 

Table 5 
EU Production 

EU  Production  Volume 
Index (2007=100) 

2007 

100 

2008 

95.2 

2009 

66.5 

RIP 

70.7 

7.2.  Capacity and capacity utilisation rates 

(56)  Production  capacity  followed  the  same  trend  as  production  during  the  period 
considered. Capacity utilisation, however, was positively influenced during the RIP by 
some process improvements. 

(57)  As a result of the closure of one plant in the Union in 2009 (see recital (45) above), the 

data collected for the RIP is limited to the capacity of the remaining plant. 

Table 6 
EU Production capacity and capacity utilisation 

capacity 

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

7.3.  Stocks 

2007 
100 

2008 
101.5 

2009 
91.0 

RIP 
80.6 

100 

93.4 

72.8 

86.9 

(58)  This indicator was based on the information supplied by the applicants, for the reasons 
explained in recital (54) above. The investigation at the company's premises revealed 
some  seasonal  patterns  in  the  consumption  of  TCCA,  with  the  product  concerned 
being  used  mostly  in  summer.  This  has  an  impact  on  the  variation  in  the  level  of 
stocks throughout the year: stocks peak in winter time and are considerably reduced in 
the summer period. For the years 2007-2009 the figures represent the level of stocks 
on 31 December of the given year. The figure for the RIP, however, shows the level of 
stocks at 30 June 2010, the time of the year with the highest stock utilisation. Hence, 
this indicator does not allow for a proper comparison between the RIP and the rest of 
the  period  concerned  and  is  therefore  considered  not  to  be  relevant  for  assessing 
injury. 

7.4.  Sales volume 

EN 

13 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
  
(59)  The  economic  crisis  had  a  negative  influence  on  the  sales  volume  of  the  product 
concerned on the EU market. The increase during the RIP can be attributed mainly to 
the increase of EU consumption due to recovery from the recession after the economic 
crisis. 

Table 7 
Sales  

2007 

100 

2008 

2009 

RIP 

92 

73 

91 

Volume 
Index (2007=100) 

7.5.  Market share 

(60)  During  the  period  considered  the  Union  industry  was  unable  to  recover  its  market 

share, which decreased significantly over the period considered.  

Table 8 
EU Market share 

2007 

55 %-65 % 

2008 
50 %-
60 % 

2009 
45 %-
55 % 

RIP 
45 %-
55 % 

EU Market share 
(Ranges) 

7.6.  Employment and wages 

(61)  Employment  in  the  sector  decreased  in  the  EU  during  the  period  considered, 
particularly following the closing down of one of the production facilities (see recital 
(45)  above).  As  a  result,  wage  costs  at  the  Union  industry  level  also  went  down. 
Average  wages  per  employee  remained  relatively  stable  throughout  the  period 
considered. 

Table 9 
Employment 

2007 

2008 

2009 

98.7 

84.1 

RIP 

74.2 

104.6 

105.7 

106.0 

Employees 
Index (2007=100) 
Wages per employee 
Index (2007=100) 

7.7.  Productivity 

100 

100 

(62)  The  productivity  of  the  Union  industry’s  workforce,  measured  as  output  per  person 
employed per year, developed negatively over the period considered, showing a sharp 
decrease by around 20 % in 2009. This was a result of the reorganisation required by 
the  closure  of  the  production  facilities,  putting  production  on  hold  for  6  months  in 
2009  until  the  plant  was  closed  down  in  January  2010  (see  recital  (45)  above). 
Productivity  then  recovered  during  the  RIP,  although  for  the  first  semester  it  was 
partly influenced by the negative trends in 2009. 

EN 

Table 10 
Productivity  

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Productivity 
Index (2007=100) 

7.8.  Sales prices 

2007 

100 

2008 

2009 

96.5 

79.2 

RIP 

95.3 

(63)  Average  unit  prices  of  TCCA  in  the  EU  (as  shown  in  the  table  below)  increased 
slightly between 2007 and 2009, returning to the 2007 level during the RIP. To some 
extent, the 2007-2009 increase is related to the product mix effect (see footnote 13). 

Table 11 
Sales price EU market 

2007 

100 

2008 

2009 

RIP 

104.6 

111.4 

103.1 

Average unit price — 
Index (2007=100) 

7.9.  Profitability 

(64)  Profitability  on  sales  of  TCCA  in  the  EU  developed  negatively  from  2007  onwards, 
with a significant loss in 2009. This poor performance has to be seen in relation to the 
closure  in  that  year  of  one  production  site  by  a  Union  producer.  In  the  RIP, 
profitability did become slightly positive, although the profit level was far below the 
normal profit level (i.e. 10 %14) that should be achieved in this sector of activity. This 
shows that the Union industry is still in a weak financial situation. 

Table 12 
Profitability 

2007 

Profitability (range) 

-10 % to 0 % 

7.10. Investments and return on investments 

2008 
-10 % to 
0 % 

2009 
-20 % to 
-10 % 

RIP 
0 % to 
10 % 

(65)  There  was  no  major  capital  expenditure  during  the  period  considered.  The  indexed 
figures shown in the table present the investments made to improve productivity and 
the  production  process.  The  indexes  for  the  return  on  investments  follow  the  same 
trend as profitability. 

Table 13 
Investments 

2006 

100 

2007 

2008 

RIP 

158 

32 

23 

-10 % to 0 % 

-10 % to 
0 % 

-20 % to 
-10 % 

0 % to 
10 % 

Net investments 
Index (2007=100) 

ROI (range) 

7.11.  Cash flow 

14 

See the pre-tax profit margin fixed in Recital 181 of Commission Regulation (EC) No 538/2005 (OJ L 
89, 8.4.2005, p. 4). 

EN 

15 

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(66)  Cash flow remained positive  during the period  considered, with the  exception  of  the 
year 2009, when extra restructuring costs had to be covered due to the closing down of 
one of the production sites (see recital (45) above). The development of cash flow was 
in line with the development of profitability. 

Table 14 
Cash flow 

2007 

Cash flow (range) 

0 % to 10 % 

7.12.  Magnitude of dumping margin 

2008 
0 % to 
10 % 

2009 
-10 % to 
0 % 

RIP 
5 % to 
15 % 

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

7.13.  Recovery from past dumping 

(68)  Anti-dumping  measures  were  imposed  in  October  2005.  Taking  into  account  the 
overall  situation  of  the  Union  industry  as  well  as  the  imports  from  the  PRC  in  the 
period  from  2007  to  RIP,  it  can  be  concluded  that  the  Union  industry  has  not 
recovered fully from these effects despite the anti-dumping measures in force. 

7.14. Conclusion on injury 

(69)  Several  injury  indicators  developed  negatively  during  the  period  considered.  Taking 
into  account  the  overall  worsening  situation  of  the  Union  producers,  the  Union 
industry is considered to have suffered material injury over the period considered. 

8. 

Impact of dumped imports and other factors 

8.1 Impact of dumped imports from the PRC 

(70)  As set out in recital (49), imports of TCCA from the PRC grew significantly between 
2007  and  RIP,  in  terms  of  both  volume  and  market  share.  Significant  price 
undercutting  was  also  found  (see  recital  (51)).  The  continuous  massive  inflow  of 
dumped  imports  from  the  PRC  occurred  in  a  context  of  overall  increasing  EU 
consumption  in  the  period  considered,  reaching  in  the  RIP  a  level  exceeding  by  6 % 
the one achieved in 2007, despite a decrease between 2007 and 2009. As demonstrated 
by the worsening situation of the Union industry, it was mainly imports from the PRC 
that benefited from the increase in consumption. 

8.2 Impact of other factors 

(71)  The Commission analysed whether any known factors other than the dumped imports 
from the PRC could have had a bearing on the continued injury suffered by the Union 
producers. 

(72) 

In  parallel  with  dumped  imports  from  the  PRC,  it  is  likely  that  the  reduced 
performance  of  the  Union  industry  on  third  markets,  where  it  also  faced  Chinese 

EN 

16 

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competition, and on the US market in particular, had a negative impact on the Union 
production. However, most of the activity of the EU producers is devoted to the Union 
market, limiting to some extent the potential impact of reduced exports. 

(73)  The  economic  crisis  also  had  a  negative  impact  on  the  performance  of  the  Union 
industry, leading to a decrease in production and the restructuring of one of the Union 
producers. Nonetheless, the impact of the economic crisis was limited in time (part of 
2008  and  2009),  while  the  economic  situation  of  the  Union  industry  continued  to 
deteriorate  throughout  the  period  considered.  Moreover,  developments  in  the  RIP 
show that the EU industry did start to recover partially. It can therefore be considered 
that the impact of the economic crisis was not insignificant in this case, although it did 
not  break  the  causal  link  between  dumped  imports  from  the  PRC  and  the  injury 
suffered by the Union industry. 

8.3 Conclusion 

(74)  The  continued  dumping  of  imports  from  the  PRC  along  with  the  economic  crisis 
altered  the  recovery  process  and  accentuated  the  difficulties  of  the  Union  industry. 
Although other factors contributed to the deterioration in the performance of the Union 
industry,  none  of  them  proved  to  be  sufficient  to  break  the  causal  link  between 
dumped imports from the PRC and the injury suffered by the Union industry. On these 
grounds, it may be concluded that dumped imports from the PRC have caused material 
injury to the Union industry. 

E. 

LIKELIHOOD OF CONTINUATION OF INJURY 

1. 

Preliminary remarks 

(75) 

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

(76)  With regard to the likely effect on the Union industry of the expiry of the measures in 
force,  the  following  factors  were  taken  into  account  in  line  with  the  elements 
summarised above regarding the likelihood of the continuation of dumping. 

2. 

PRC import volumes and prices 

(77) 

Imports of TCCA from the PRC, representing approximately 98 % of all imports to the 
EU, continued to gain market share during the period considered, reaching over 50 % 
during  the  RIP.  The  investigation  revealed  that  these  imports  were  made  at  dumped 
prices  with  a  substantial  dumping  margin.  Moreover,  the  prices  of  Chinese  imports 
remained  steadily  below  the  Union  industry  prices  during  the  entire  period, 
undercutting the Union prices by over 10 % (without taking into account the measures 
in force). 

3. 

Spare capacity in the PRC market 

(78)  As mentioned in recitals (34) and (35), the analysis of available capacities in the PRC 
showed  that  production  capacity  utilisation  remained  low  during  the  period 
considered. The estimated excess production capacity was found to be more than three 
times higher than in the Union market. At the same time, according to the information 

EN 

17 

   EN 

 
received  in  the  review  request,  there  was  only  a  limited  market  for  the  product 
concerned in the PRC. 

4.  Attractiveness of the EU market 

(79) 

In the light of growing import trends and available spare capacities in the PRC, the EU 
is  likely  to  attract  further  imports  from  the  PRC  in  the  future.  The  fact  that  the  EU 
market  is  attractive  for  Chinese  exporters  is  demonstrated  by  the  developments  in 
2009, when the production shortage in the EU, which was caused by the restructuring 
of the sector, was partially met by extra imports from the PRC. 

(80)  This  situation  may  be  further  exacerbated  by  the  fact  that,  in  the  US  market,  the 
existing anti-dumping measures on TCCA from the PRC have recently been extended. 
It is therefore to be expected that the expiry of the AD-measure in the EU would make 
the Union market comparatively more attractive. 

5. Conclusion on the likelihood of continuation of injury 

(81)  The  Union  industry  had  been  suffering  from  the  effects  of  Chinese  dumped  imports 

for several years and is still in a precarious economic situation. 

(82)  As  established  above,  the  investigation  revealed  that  the  injurious  situation  of  the 
Union industry has continued throughout the period considered. According to Article 
11(2) of the basic Regulation, the continuation of injury is in itself a strong indicator 
that  the  injury  is  likely  to  continue  in  the  future,  which  would  suggest  that  the 
measures should be maintained. 

(83)  Given the spare capacity available in the PRC and the attractiveness of the EU market, 
if  the  measures  are  lifted  the  growing  trend  whereby  large  imports  from  the  PRC  at 
dumped prices significantly undercut EU producers' prices is likely to continue. 

(84) 

If  the  measures  in  force  are  not  extended,  the  situation  of  the  Union  industry  would 
deteriorate and its very existence would be jeopardised. Therefore, it can be concluded 
that there is a clear likelihood of continuation of injury to the Union industry, should 
existing measures be removed. 

F. 

UNION INTEREST 

1. 

Introduction 

(85)  Pursuant  to  Article  21  of  the  basic  Regulation,  it  was  necessary  to  examine  whether 
the  maintenance  of  existing  anti-dumping  measures  would  be  against  the  interest  of 
the  Union  as  a  whole.  Determination  of  the  Union  interest  was  based  on  an 
appreciation  of  the  various  interests  involved,  i.e.  those  of  the  Union  producers, 
importers and users. 

(86) 

In  previous  investigations,  it  was  considered  that  the  adoption  of  measures  was  not 
against the interest of the Union. Furthermore, the fact that the current investigation is 
a review, and thus analyses a situation in which anti-dumping measures are already in 
place,  allows  for  the  assessment  of  any  undue  negative  impact  on  the  parties 
concerned by the current anti-dumping measures. 

EN 

18 

   EN 

 
(87)  On this basis it was examined whether, despite the conclusions on the likelihood of the 
continuation  of  dumping and of injury,  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 

(88) 

(89) 

In view of the conclusions on the situation of the Union industry set out in recital (66) 
above, and in line with the arguments underpinning the likelihood of continuation of 
injury as explained in recitals (78) to (81), it can be considered that the expiry of the 
measures in force would lead to further deterioration in the economic situation of the 
Union  TCCA  industry,  which  has  suffered  from  the  injurious  effect  of  the  dumped 
imports from the PRC and whose situation has been worsened by the global economic 
crisis. 

It  is  considered  that  the  continuation  of  measures  would  benefit  the  Union  industry, 
which could in this case recover from the injurious effect of past dumping aggravated 
by  the  economic  crisis.  In  contrast,  the  discontinuation  of  the  measures  would  put  a 
stop to the recovery of the Union industry, seriously threatening its viability, and, as a 
result,  putting  its  existence  at  risk,  thus  reducing  supply  and  competition  on  the 
market. 

3. 

Interest of importers and users 

(90)  All known users, importers, processors and actors in the downstream TCCA industry 

were contacted. 

(91)  Only two users came forward, both expressing their support for the continuation of the 
measures in  force. Both claimed that the continuation of  measures would not have a 
negative impact on competition in the EU market, but that, on the contrary, it would 
provide the user industry with a wider range of suppliers competing at market prices. 
Since no other parties came forward in this case, there is no evidence to show that the 
maintenance  of  the  anti-dumping  measures  in  the  present  case  would  have  a  serious 
effect on importers and users in the Union. 

4.  Conclusion on Union interest 

(92)  The  continuation  of  measures  can  be  expected  to  assist  the  Union  industry,  with 
consequent beneficial effects on the competitive conditions on the Union market and 
the  consolidation  of  the  sector  after  the  economic  crisis  and  the  restructuring. 
Furthermore,  the  continuation  of  the  measures  can  be  expected  to  benefit  users  and 
importers by maintaining a wide range of suppliers in the EU market. 

(93) 

Taking  all  the  above  factors  into  account,  it  is  concluded  that  there  are  no 

compelling reasons against the continuation of the measures in question. 

G. 

ANTI-DUMPING MEASURES 

(94)  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. 

EN 

19 

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(95) 

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 TCCA originating in 
the PRC should be maintained, 

HAS ADOPTED THIS REGULATION: 

1. 

2. 

3. 

4. 

Article 1 

A definitive anti-dumping duty is hereby imposed on imports of trichloroisocyanuric 
acid and preparations thereof, also referred to as ‘symclosene’ under the international 
non-proprietary name (INN), currently falling within CN codes ex 2933 69 80 and ex 
3808 94 20 (TARIC codes 2933 69 80 70 and 3808 94 20 20), and originating in the 
People’s Republic of China. 

The rate of the definitive anti-dumping duty applicable before duty to the net free-at-
Union-frontier price for products manufactured by the companies listed below shall 
be as follows: 

Company 
 Hebei Jiheng Chemical 
Co. Limited 
Puyang Cleanway 
Chemicals Limited 
Heze Huayi Chemical 
Co. Limited 
Zhucheng Taisheng 
Chemical Co. Limited 
All other companies 

Anti-dumping 
duty rate 

8.1 % 

TARIC 
additional code 
A604 

7.3 % 

3.2 % 

40.5 % 

42.6 % 

A628 

A629 

A627 

A999 

The application of the individual duty rates specified for the companies mentioned in 
paragraph 2 shall be conditional upon presentation to the customs authorities of the 
Member  States  of  a  valid  commercial  invoice,  which  shall  conform  to  the 
requirements  set  out  in  the  Annex.  If  no  such  invoice  is  presented,  the  duty  rate 
applicable to all other companies shall apply. 

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

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

Article 2 

EN 

20 

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

Done at Brussels, 

For the Council 
The President

EN 

21 

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ANNEX 

A declaration signed by an official of the entity issuing the commercial invoice must appear 
on the valid commercial invoice referred to in Article 1(3) according to the following format: 

1. 

2. 

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

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

Date and signature 

EN 

22 

   EN