Proposal for a COUNCIL IMPLEMENTING REGULATION imposing a definitive anti-dumping duty on imports of certain stainless steel fasteners and parts thereof originating in the People's Republic of China and Taiwan following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009
Date: 2011-12-07
Institutions: European Commission
Subjects: China, Taiwan, anti-dumping duty, anti-dumping measure, export price, import, originating product, steel

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 863 final 

2011/0419 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION 

imposing a definitive anti-dumping duty on imports of certain stainless steel fasteners 
and parts thereof originating in the People's Republic of China and Taiwan following an 
expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009 

 
 
  
 
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  stainless  steel 
fasteners and parts thereof originating in the People's Republic of China and Taiwan. 

•  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 certain stainless steel fasteners and parts 
thereof falling within CN codes 7318 12 10, 7318 14 10, 7318 15 30, 7318 15 51, 7318 
15  61  and  7318  15  70  originating  in  the  People's  Republic  of  China,  Indonesia, 
Taiwan,  Thailand  and  Vietnam  was  imposed  by  Council  Regulation  (EC)  No 
1890/20051 as last amended by Council Regulation (EC) No 768/20092. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

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

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

1 
2 

OJ L 302, 19.11.2005, p. 1. 
OJ L 221, 25.8.2009, p. 1.  

EN 

1 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On 19 November 2010, the Commission initiated upon a substantiated request by the 
European  Industrial  Fasteners  Institute  ('EIFI')  on  behalf  of  five  Union  producers  an 
expiry  review  of  the  anti-dumping  duty  in  force  in  respect  of  imports  of  certain 
stainless steel fasteners and parts thereof originating in the People's Republic of China 
and Taiwan. 

The review investigation found continuing dumping of certain stainless steel fasteners 
and  parts  thereof  originating  in  the  People's  Republic  of  China  and  Taiwan,  which, 
should  anti-dumping  measures  be  allowed  to  lapse,  would  result  in  the  recurrence  of 
injury  to  the  Union  industry.  It  was  further  established  that  continuation  of  measures 
would not be against 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 18 February 2012 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 

EN 

2 

   EN 

 
 
 
 
 
 
 
 
 
 
The proposal has no implication for the Union budget. 

EN 

3 

   EN 

 
 
 
2011/0419 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION 

imposing a definitive anti-dumping duty on imports of certain stainless steel fasteners 
and parts thereof originating in the People's Republic of China and Taiwan 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 Community3 (‘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) 

(2) 

(3) 

By  Regulation  (EC)  No  1890/2005  of  14  November  20054  the  Council  imposed  a 
definitive anti-dumping duty and collected definitively the provisional duties imposed 
on  imports  of  certain  stainless  steel  fasteners  and  parts  thereof  ('SSF')  originating  in 
the  People's  Republic  of  China,  Indonesia,  Taiwan,  Thailand  and  Vietnam.  At  the 
same  time,  the  proceeding  on  imports  of  SSF  originating  in  Malaysia  and  the 
Philippines was terminated.  

On 25 August 2009, following a review initiated on the basis of Article 11(3) of the 
basic  Regulation,  the  Council  by  Regulation  (EC)  No  768/2009  of  17  August  20095 
amended the above mentioned measures as far as one exporting producer in Vietnam 
is concerned.  

The  Regulation  which  led  to  the  imposition  of  the  definitive  anti-dumping  duty  on 
imports  of  certain  SSF  originating,  inter  alia,  in  the  People's  Republic  of  China 
('PRC')  and  Taiwan  will  hereinafter  be  referred  to  as  'the  original  Regulation'.  The 
investigation  that  led  to  the  measures  imposed  by  the  original  Regulation  on  the 
countries concerned will be hereinafter referred to as 'the original investigation'.  

3 
4 
5 

OJ L 343, 22.12.2009, p. 51. 
OJ L 302, 19.11.2005, p. 1. 
OJ L 221, 25.8.2009, p. 1. 

EN 

4 

   EN 

 
                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

2.  Request for an expiry review 

Following  the  publication  of  a  notice  of  impending  expiry6  of  the  definitive  anti-
dumping measures in force, the Commission received on 19 August 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  the  European  Industrial  Fasteners 
Institute  ('EIFI')  ('the  applicant')  on  behalf  of  five  Union  producers:  Bulnava  S.r.l., 
Inox  Viti  di  Cattinori  Bruno  &  C.s.n.c.,  Inox  Bolt  S.r.l.,  Bontempi  Vibo  S.p.A.  and 
Ugivis S.A. representing a major proportion, in this case more than 25%, of the total 
Union production of SSF.  

The request was limited to the anti-dumping measures imposed on imports originating 
in  the  PRC  and  Taiwan  ('the  countries  concerned').  Consequently,  the  anti-dumping 
measures  imposed  by  the  original  Regulation  on  imports  of  SSF  originating  in 
Vietnam, Indonesia and Thailand are not subject to this review. 

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

3. 

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  19 
November 2010, by a notice published in the Official Journal of the European Union7, 
the  initiation  of  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic  Regulation 
('notice of initiation'). 

4. 

Investigation  

4.1.  Review investigation period and the period considered 

The investigation of continuation of dumping covered the period from 1 October 2009 
to 30 September 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 

The  Commission  officially  advised  the  applicant,  other  known  Union  producers, 
exporting  producers,  importers,  users  in  the  Union  known  to  be  concerned  and  their 
associations, and the representatives of the countries concerned of the initiation of the 
expiry review.  

(10)  The  Commission  also  gave  interested  parties  the  opportunity  to  make  their  views 
known in writing and to request a hearing within the time limit set out in the notice of 

6 
7 

OJ C 129, 19.5.2010, p. 16. 
OJ C 315, 19.11.2010, p. 7. 

EN 

5 

   EN 

 
                                                 
initiation.  All  interested  parties,  who  so  requested  and  showed  that  there  were 
particular reasons why they should be heard, were granted a hearing.  

(11) 

(12) 

In  view  of  the  apparent  large  number  of  exporting  producers  from  the  countries 
concerned,  unrelated  importers  in  the  Union  and  Union  producers  involved  in  the 
investigation,  sampling  was  envisaged  in  the  notice  of  initiation,  in  accordance  with 
Article 17 of the basic Regulation.  

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 
of  the  notice  of  initiation  and  to  provide  the  Commission  with  the  information 
requested in the notice of initiation. In view of the replies received it was decided to 
apply  sampling  in  respect  of  Taiwanese  exporting  producers,  unrelated  importers  in 
the Union and Union producers. As regards the PRC, no exporting producers from the 
PRC cooperated in the investigation.  

(13)  Thirty six Taiwanese exporters/groups of exporters provided the requested information 
and agreed to be included in the sample. Ten of them could not be taken into account 
as they  appeared to be trading companies only or did not export to the Union in the 
RIP.  On  the  basis  of  the  information  received  from  the  cooperating  Taiwanese 
companies,  the  Commission  selected  a  sample  of  four  exporting  producers. 
Subsequently  one  sampled  company  withdrew  its  cooperation.  The  remaining  three 
sampled companies represented 41,6% of the Taiwanese exports to EU during the RIP. 

(14)  As regards unrelated importers in the Union, out of eight companies which provided 
the  requested  information,  the  three  largest  ones  representing  almost  90%  of  the 
imported volume reported by the cooperating companies were selected for the sample. 
Subsequently only one importer submitted a questionnaire reply. 

(15)  Twelve Union producers provided the requested information and agreed to be included 
in  the  sample.  On  the  basis  of  the  information  received  from  the  cooperating  Union 
producers,  the  Commission  selected  a  sample  of  six  Union  producers.  Subsequently 
one  sampled  Union  producer  withdrew  its  cooperation.  The  remaining  five  sampled 
producers represented 38% of the sales by all Union producers to unrelated customers 
in the EU during the RIP. 

(16)  The Commission sent questionnaires to the sampled parties and to all users known to 
be  concerned.  As  explained  above,  replies  to  the  questionnaires  were  received  from 
five Union producers, three exporting producers from Taiwan and one importer. None 
of the users contacted came forward or made themselves known in the course of the 
investigation.  

(17)  As explained in recitals (13) and (15) one sampled Taiwanese exporting producer and 
one sampled Union producer decided not to submit a questionnaire reply. However, in 
both  cases  the  sample  of  the  remaining  companies  was  considered  to  be  still 
representative in terms of the relevant sales volumes.  

(18)  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 

EN 

6 

   EN 

 
injury and for the determination of the Union interest. Verification visits were carried 
out at the premises of the following companies: 

(a)  Union producers 

– 

– 

– 

– 

– 

Bulnava S.r.l, Suello, Italy; 

Inox Viti di Cattinori Bruno & C.s.n.c, Grumello del Monte, Italy; 

Bontempi Vibo S.p.A., Rodengo Saiano, Italy; 

Reisser Schraubentechnik GmbH, Ingelfingen-Criesbach, Germany; 

Ugivis S.A, Belley, France.  

(b)  Exporting producers in Taiwan 

– 

– 

– 

Arrow Fastener Co., Ltd. and its related exporters, Shu-Lin City; 

Shekai Precision Co., Ltd. and its related exporter, Kaohsiung; 

Yi Tai Shen Co., Ltd. Tainan Hsien. 

(c)  Unrelated importer in the Union 

–  Wurth Group, Kunzelsau, Germany.  

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(19)  The  product  concerned  by  this  review  is  the  same  as  the  one  defined  in  the  original 
Regulation, namely certain stainless steel fasteners and parts thereof, originating in the 
People's Republic of China and Taiwan, currently falling within CN codes 7318 12 10, 
7318  14  10,  7318  15  30,  7318  15  51,  7318  15  61  and  7318  15  70  (‘the  product 
concerned’). 

(20)  The  review  investigation  confirmed  that,  as  in  the  original  investigation,  the  product 
concerned and the products manufactured and sold by the exporting producers on the 
domestic  markets,  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. 

(21)  Four parties came forward and claimed that the products falling under CN codes 7318 
12  10,  7318  14  10  and  7318  15  51  should  be  excluded  from  the  scope  of  this 
investigation  because  allegedly  they  are  not  produced  within  the  Union.  This  claim 
was rejected because (i) no evidence was presented showing that these products would 
be  different  in  terms  of  basic  physical  and  technical  characteristics  and  (ii)  in  any 
event the product scope cannot be modified in the context of an expiry review.  

(22)  After disclosure of the essential facts and considerations on the basis of which it was 
recommended that the existing measures be maintained (the 'final disclosure') one of 
the  Taiwanese  exporting  producers  claimed  that  bi-metal  fasteners  should  not  be 

EN 

7 

   EN 

 
included  in  the  product  scope  due  to  the  significant  differences  existing  between  the 
bi-metal  fasters  and  stainless  steel  fasteners  in  terms  of  unit  sales  price,  cost  of 
production,  basic  physical  and  technical  characteristics,  as  well  as  applications. 
However, as explained in recital (21) above the product scope cannot be modified in 
the  context  of  an  expiry  review.  This  claim  could  be  dealt  with  in  a  product  scope 
interim review, which can be requested by the company.  

C. 

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING 

(23) 

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. 

1. 

PRC 

1.1.  Preliminary remarks 

(24)  As  explained  above,  none  of  the  Chinese  exporting  producers  cooperated  in  the 

investigation.  

(25)  Therefore, findings on the likelihood of continuation or recurrence of dumping set out 
below had to be based on best facts available, in particular the Eurostat data and the 
information  submitted  by  the  Union  industry  in  the  review  request.  Official  Chinese 
exports  statistics  could  not  be  used  in  this  case  as  the  product  concerned  represents 
only  a  small  fraction  of  the  quantities  reported  in  the  relevant  Harmonized  System 
Tariff positions.  

1.2.  Dumping of imports during the RIP 

(26) 

In  view  of  the  lack  of  cooperation  of  the  Chinese  exporting  producers  no  individual 
dumping margins could be calculated.  

(27)  According to the review request, exports from the PRC into the Union were allegedly 
dumped  with  margins  ranging  from  13,6%  to  61,8%.  As  mentioned  in  the  notice  of 
initiation, the applicant compared the export prices from the PRC to the Union with a 
constructed  normal  value  in  Taiwan,  the  analogue  country  used  in  the  original 
investigation.  

(28)  As  there  was  no  cooperation  from  the  Chinese  companies,  there  is  no  information 
available which would allow a different conclusion. Moreover, it is noted that normal 
value  established  for  the  only  cooperating  Taiwanese  company  was  found  to  be 
substantially  higher  than  the  normal  value  established  by  the  applicant  in  the  expiry 
investigation request. Since there is no indication that export prices from the PRC to 
the Union are different than in the request, it is likely that dumping from the PRC has 
continued at higher levels than those indicated in the request.  

1.3.  Development of imports should measures be repealed  

(29)  Further to the analysis of the existence of dumping during the RIP, the likelihood of 

the recurrence of dumping was also investigated.  

EN 

8 

   EN 

 
(30) 

In this respect the following elements were analysed: the spare capacity of the Chinese 
exporting producers; the attractiveness of the Union market for the Chinese producers 
and their export to third countries. 

1.3.1. Spare capacity of the Chinese exporting producers 

(31)  As  there  is  little  public  information  available  on  the  Chinese  SSF  industry,  the 
information  contained  in  the  review  request  was  used  to  estimate  the  capacity  in  the 
PRC.  On  that  basis,  it  appears  that  new  production  facilities  of  SSF  have  been 
established in the PRC since 2003. Moreover,  as a consequence of the anti-dumping 
measures imposed on imports of certain iron and steel fasteners8 and of the subsequent 
drop of the Chinese imports of that type of fasteners into the Union as from 2009, the 
Chinese producers have significant unused production capacity which could be used to 
manufacture the product concerned as the production can be easily switched between 
the two types of fasteners. 

1.3.2. Attractiveness of the Union market 

(32)  The  attractiveness  of  the  Union  market  can  be  illustrated  by  the  fact  that  the 
imposition  of  the  anti-dumping  duties  did  not  stop  the  expansion  of  the  Chinese 
exports  of  the  product  concerned.  On  the  contrary,  according  to  Eurostat  data  the 
volume  of  imports  from  the  PRC  to  the  Union  has  increased  by  13%  between  2007 
and the RIP. The price evolution of Chinese imports for the same period showed that 
the  average  import  price  according  to  Eurostat  increased.  However,  a  more  detailed 
analysis showed that the price of SSF declared in the CN code representing 59% of the 
total quantity imported during the RIP decreased by 24% during the period considered. 
This demonstrates that despite the measures in force the Chinese exporters were still 
able to increase the export volume and to further reduce their prices for the majority of 
exported product concerned.  

1.3.3. Export to third countries 

(33)  With regard to the volumes and prices of Chinese exports to third countries, it has to 
be  noted  that  Chinese  export  data  concern  whole  HS  codes.  By  comparison  to  EU 
import statistics on TARIC level the product concerned is accounted for around 3% in 
terms  of  volume  within  these  HS  codes.  The  export  data  are  therefore  not  a  very 
meaningful source of information. Due to the lack of cooperation of Chinese exporting 
producers, no other relevant information could be obtained with regard to the Chinese 
exports to third countries. 

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

(34) 

In view of the findings described above, it can be concluded that the exports from the 
PRC are still being dumped and that there is a likelihood of continuation of dumping 
on the Union market in case the current anti-dumping measures are removed. Indeed, 
taking into account the existing spare capacity in the PRC and the fact that imports of 
the product concerned into the Union increased during the  period considered despite 
the existence of anti-dumping measures, there appears to be an incentive for Chinese 

8 

Council Regulation (EC) No 91/2009 of 26 January 2009, OJ L 29, 31.1.2009, p. 1. 

EN 

9 

   EN 

 
                                                 
exporting  producers  to  further  increase  their  exports  to  the  Union  market  at  dumped 
prices shall the measure be allowed to lapse.  

2. 

TAIWAN 

2.1.  Preliminary remarks 

(35) 

(36) 

their  willingness 

It is noted that in view of the large number of Taiwanese exporting producers which 
to  cooperate,  a  representative  sample  of  four 
expressed 
companies/groups  of  companies  was  selected  for  further  investigation.  One  of  these 
four companies later withdrew its cooperation. However, as the remaining companies 
represented in terms of volume 41,6% of the total Taiwanese exports9 to the Union in 
the RIP the sample was still considered representative.  

It is further noted that during the verifications visits carried out at the premises of the 
remaining  three  sampled  companies  it  was  not  possible  to  verify  the  information 
provided  in  the  questionnaire  reply  by  one  of  them  while  it  was  established  that  the 
second  company  provided  misleading  information.  The  exporting  producers  in 
question were immediately informed of the Commission's intention to apply Article 18 
of  the  basic  Regulation  which  would  result  in  disregarding  the  information  provided 
and  consequently  resorting  to  the  best  facts  available.  The  companies  were  given  an 
opportunity  to  submit  further  comments  on  this  situation.  However,  the  subsequent 
comments  did  not  alter  the  Commission's  decision  to  rely  on  facts  available  with 
regard  to  these  two  exporting  producers.  As  a  result,  an  individual  dumping  margin 
was calculated only for one Taiwanese exporting producer.  

(37) 

In view of the above, most of the findings concerning the likelihood of continuation or 
recurrence of dumping set out below had to be based on facts available, in particular 
the  data  provided  by  the  sole  cooperating  Taiwanese  exporting  producer,  one 
cooperating importer, Eurostat data and the information submitted by the applicant in 
the review request. Official Taiwanese exports statistics could not be used in this case 
as  the  product  concerned  represent  only  a  small  fraction  of  the  quantities  declared 
under the relevant Harmonized System Tariff positions.  

2.2.  Dumping of imports during the RIP 

2.2.1. Normal value 

(38) 

In  accordance  with  Article  2(2)  of  the  basic  Regulation,  the  Commission  first 
examined  whether  the  cooperating  Taiwanese  exporting  producer's  domestic  sales  of 
the  like  product  to  independent  customers  were  representative,  i.e.  whether  the  total 
volume of such sales was equal to at least 5% of the total volume of the corresponding 
export sales to the Union.  

(39)  The  Commission  subsequently  identified  those  types  of  the  like  product  sold 
domestically  by  the  company  that  were  identical  or  directly  comparable  to  the  types 
sold for export to the Union. The elements taken into account in defining the product 
types  were  i)  type  of  fasteners,  ii)  grade  of  steel  used  as  raw  material,  iii)  fasteners' 
DIN norm, iv) fasteners' diameter and v) their length.  

9 

According to Eurostat Comext database.  

EN 

10 

   EN 

 
                                                 
(40) 

It  was  further  examined  whether  the  domestic  sales  of  the  cooperating  exporting 
producer were representative for each product type, i.e. whether domestic sales of each 
product type constituted at least 5% of the sales volume of the same product type to 
the Union. For the product types sold in representative quantities it was then examined 
whether such sales were made in the ordinary course of trade ('OCOT'), in accordance 
with Article 2(4) of the basic Regulation.  

(41)  The  examination  as  to  whether  the  domestic  sales  of  each  product  type,  sold 
domestically  in  representative  quantities,  could  be  regarded  as  having  been  made  in 
the  OCOT  was  made  by  establishing  the  proportion  of  the  profitable  sales  to 
independent customers of the type in question. In all cases where the domestic sales of 
the  particular  product  type  were  made  in  sufficient  quantities  and  in  the  OCOT, 
normal value was based on the actual domestic price, calculated as a weighted average 
of all the domestic sales of that type made during the RIP. 

(42)  For the remaining product types where domestic sales were not representative or not 
sold  in  the  OCOT,  normal  value  was  constructed  in  accordance  with  Article  2(3)  of 
the  basic  Regulation.  Normal  value  was  constructed  by  adding  to  the  manufacturing 
costs  of  the  exported  types,  adjusted  where  necessary,  a  reasonable  percentage  for 
selling, general and administrative expenses and a reasonable margin for profit, on the 
basis of actual data pertaining to production and sales of the like product in the OCOT, 
in accordance with the first sentence of Article 2(6) of the basic Regulation. 

2.2.2  Export price  

(43)  All but one export sales to the Union market of the cooperating Taiwanese exporting 
producer  were  made  directly  to  independent  customers.  Thus,  the  export  price  was 
established  on  the  basis  of  the  prices  actually  paid  or  payable  for  the  product 
concerned in accordance with Article 2(8) of the basic Regulation. 

(44)  For the export transaction where the export to the Union was made through a related 
trading company, the export price was established on the basis of the first resale price 
of the related trader to independent customers in the Union, pursuant to Article 2(9) of 
the basic Regulation. 

2.2.3. Comparison  

(45)  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  normal  value  and  the  export  price,  account  was 
taken,  in  accordance  with  Article  2(10)  of  the  basic  Regulation,  of  differences  in 
factors  which  were  demonstrated  to  affect  prices  and  price  comparability.  For  this 
purpose,  due  allowance  in  the  form  of  adjustments  was  made  for  differences  in 
transport,  insurance,  handling,  loading  and  ancillary  costs,  financial  costs,  packing 
costs, commissions and rebates where applicable and justified.  

2.2.4. Dumping margin  

(46)  As  provided  for  under  Article  2(11)  of  the  basic  Regulation,  the  weighted  average 
normal  value  by  type  was  compared  with  the  weighted  average  export  price  of  the 
corresponding type of the product concerned. Based on the above methodology, it was 

EN 

11 

   EN 

 
found that the cooperating exporter continued to engage in dumping practices during 
the RIP. On the basis of 4 months out of the 12 months of the RIP, dumping amounted 
to 22%.  

(47) 

It  is  recalled,  that  basing  the  dumping  calculation  on  4  months  of  the  RIP  is  a 
methodology normally used by the Commission in expiry reviews, where it should be 
determined whether there is continuation of dumping or a likelihood that dumping will 
recur. Indeed, in expiry reviews it is not required to establish a dumping margin for all 
transactions  since  such  calculation  is  only  necessary  to  amend  the  level  of  the  anti-
dumping measure in force, which is not the purpose of an expiry review. The 4 months 
selected were the last months of each quarter and therefore evenly spread over the 12 
month period of the RIP.  

(48)  After the final disclosure the sole cooperating Taiwanese exporting producer claimed 
that certain domestic transactions reported in the questionnaire which were taken into 
account  for  the  normal  value  calculation  were  actually  destined  for  exports  to  the 
European  Union,  not  for  domestic  consumption.  The  company  argued  that  these 
resales were made through independent fastener manufacturers or traders in Taiwan.  

(49) 

(50) 

It is noted that this claim was not supported by any evidence showing that these goods 
would be exported to the European Union. Therefore this claim was rejected. 

In view of the application of Article 18 of the basic Regulation with regard to the other 
two  sampled  exporting  producers,  no  dumping  margin  was  calculated  for  them. 
However,  according  to  the  review  request  exports  from  Taiwan  were  allegedly 
dumped  with  margins  ranging  from  14%  to  50%.  There  is  no  available  information 
which  would  allow  drawing  a  different  conclusion.  Moreover,  the  fact  that  the  sole 
investigated company was found to practise dumping in the Union market and that the 
average  price  of  the  product  concerned  imported  from  Taiwan  is  lower  than  the 
average  export  price  of  that  company,  confirm  the  existence  of  dumping  at  the 
country-wide level on the basis of verified information.  

2.3.  Development of imports should measures be repealed  

(51)  Further to the analysis of the existence of dumping during the RIP, the likelihood of 

the continuation of dumping was also investigated for Taiwan.  

(52) 

In  this  respect  the  following  elements  were  analysed:  the  spare  capacity  of  the 
exporting  Taiwanese  producers,  the  attractiveness  of  the  Union  market  for  the 
Taiwanese producers and their export to third countries. 

2.3.1. Spare capacity of the exporters 

(53)  Regarding  the  spare  capacity  of  the  exporters,  since  little  public  information  is 
available about the Taiwanese SSF industry, the following conclusions rely mainly on 
the  information  contained  in  the  review  request  and  on  information  obtained  during 
the verification visits. According to the review request, new Taiwanese producers of 
SSF have invested in new equipment to increase their production capacity. In addition, 
the  verification  showed  that  the  investments  in  capacity  are  expected  to  increase  by 
12%  in  2011  compared  to  the  IP  of  the  original  investigation.  During  the  RIP,  the 
spare  capacity  of  the  cooperating  producer  was  7%  of  the  total  production  capacity. 

EN 

12 

   EN 

 
The stock levels were found to be very low as the cooperating company produced the 
product concerned only against orders. 

2.3.2. Attractiveness of the Union market 

(54)  The  attractiveness  of  the  Union  market  can  be  illustrated  by  the  fact  that  the 
imposition  of  the  anti-dumping  duties  did  not    affect  the  Taiwanese  exports  to  the 
Union. According to Eurostat and verified import data, the volumes of imports from 
Taiwan  were  rather  stable  between  2007  and  the  RIP  but  the  value  of  these  imports 
decreased by 16% in the same period. This indicates that the average selling price of 
SSF  originating  in  Taiwan  decreased  during  the  RIP.  This  demonstrates  that  despite 
the  measures  in  force  the  Taiwanese  exporters  were  still  able  to  maintain  the  export 
volume and to further reduce their prices.  

(55) 

In this regard, one of the interested Taiwanese parties pointed out that the decrease in 
the  Taiwanese  export  prices  had  not  been  a  result  of  the  exporters'  hostile  price 
behaviour but had followed rather the evolution of the prices of the main raw material 
i.e.  wire  rods.  It  is  noteworthy  that  the  decrease  in  raw  material  prices  affected  all 
producers  of  SSF  in  a  similar  way.  However  the  conlusion  that  the  Union  market 
remains attractive for the Taiwanese exporters remains unchanged as they managed to 
maintain the volume of their exports despite the anti-dumping measures in force.  

2.3.3. Export prices to third countries 

(56)  With  regard  to  the  Taiwanese  exports  to  third  countries,  it  has  to  be  noted  that  the 
Taiwanese  export  data  which  could  be  analysed  concern  whole  HS  codes.  By 
comparison to EU import statistics on TARIC level the product concerned accounted 
for around 2,6% in terms of volume within these HS codes. Therefore, these data are 
meaningless  as  a  source  of  information  on  volumes  and  prices  of  exports  to  third 
countries  of  the  product  concerned  from  Taiwan.  However,  verified  export  data 
obtained  from  the  three  sampled  Taiwanese  exporters  show  a  decrease  in  export 
volume to third countries. This points to the fact that the Taiwanese exports are more 
EU oriented.  

(57) 

It is also noted that the information provided by  the cooperating Taiwanese exporter 
shows that the unit sales price is 10% higher when selling to the Union compared to 
other countries and that the volume exported to other countries represents only 20% of 
the exports volume to the Union.  

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

(58) 

In  view  of  the  findings  described  above,  it  can  be  concluded  that  the  exports  from 
Taiwan  are  still  being  dumped  and  that  there  is  a  likelihood  of  continuation  of 
dumping on the Union market in case the current anti-dumping measures are removed. 
Indeed, taking into account the existing spare capacity in Taiwan and the attractiveness 
of  the  Union  market,  there  appears  to  be  an  incentive  for  Taiwanese  exporting 
producers  to  increase  their  exports  to  the  Union  market  at  dumped  prices  shall  the 
current measure be allowed to lapse.  

D. 

DEFINITION OF THE UNION INDUSTRY 

1.  Union production 

EN 

13 

   EN 

 
(59)  All available information concerning Union producers, including information provided 
in  the  review  request  and  data  collected  from  Union  producers  before  and  after  the 
initiation  of  the  investigation,  was  used  in  order  to  establish  the  total  Union 
production. 

(60)  On  that  basis,  the  total  Union  production  was  estimated  to  be  around  63 000  tonnes 
during  the  IP.  This  figure  includes  the  production  of  all  Union  producers  that  made 
themselves known and the estimated production volume of producers which remained 
silent in the proceeding. 

(61)  As  indicated  in  recital  (11)  sampling  was  applied  for  investigating  Union  producers. 
Out  of  the  12  producers  that  provided  information  for  the  selection  of  the  sample,  a 
sample  of  six  producers  was  selected.  Subsequently,  as  explained  in  recital  (17)  one 
producer  did  not  cooperate.  The  cooperating  sampled  companies  represented  around 
31% of the total estimated Union production. 

2.  Union industry 

(62)  All Union producers, referred to in recital (59) (59)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’.  

E. 

SITUATION ON THE UNION MARKET 

1. 

Preliminary remark 

(63)  The relevant Eurostat import statistics for CN codes 7318 12 10, 7318 14 10, 7318 15 
30, 7318 15 51, 7318 15 61 and 7318 15 70, together with data provided in the review 
request and data collected from Union producers before and after the initiation of the 
investigation,  supplemented  by  the  verified  questionnaire  responses  of  the  sampled 
Union producers were used in the evaluation of volume and price trends.  

2.  Union consumption 

(64)  Union  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the  Union 
industry  in  the  Union,  taken  from  the  review  request  and  supplemented  by  verified 
data  obtained  from  the  cooperating  sampled  producers  and  the  volume  of  imports 
based on data from Eurostat. 

(65)  On this basis the Union consumption developed as follows: 

Table 1 

2007 

2008 

2009 

RIP 

Total Union consumption (tonnes) 

123.224

120.598  101.143  121.402

Index (2007=100) 

100 

98 

82 

99 

(66)  Between 2007 and the RIP, Union consumption remained relatively stable. However, 
between 2007 and 2009 there was a dramatic decrease by 18% in line with the global 

EN 

14 

   EN 

 
 
negative  effects  of  the  financial  crisis.  Between  2009  and  the  RIP  the  Union 
consumption recovered again, showing an increase of 20%. 

3.  Volume, market share and prices of imports from the countries concerned 

3.1.  Cumulation 

(67) 

(68) 

In order to make an assessment as to the cumulation of the imports from the countries 
concerned, the individual situation of both countries was examined in the light of the 
conditions set out in Article 3(4) of the basic Regulation. 

It was found that the import volumes of both the PRC and Taiwan were above the de 
minimis threshold laid down in Article 5(7) of the basic Regulation and not negligible. 
In  addition,  import  volumes  from  the  two  countries  followed  a  largely  similar  trend 
during  the  period  considered,  decreasing  between  2007  and  2009,  followed  by  an 
increase in the RIP. As regards average import prices, as explained in recital (32) the 
price evolution of Chinese imports showed that the average import price according to 
Eurostat  increased.  However,  a  more  detailed  analysis  showed  that  the  price  of  SSF 
declared in the CN code representing a majority of the total quantity imported during 
the  RIP  decreased  by  24%  during  the  period  considered.  The  Taiwanese  prices 
decreased throughout the period considered, and were at their lowest level in the RIP. 
The investigation also showed that the conditions of competition between the relevant 
operators were similar. It was therefore considered that the conditions for cumulation 
were met. 

3.2.  Dumped imports from the PRC and Taiwan 

(69) 

Imports from the PRC and Taiwan developed as follows during the period considered: 

Table 2 

Volume of imports from countries 
concerned (tonnes) 
Index (2007=100) 
Market share of imports from countries 
concerned 
Index (2007=100) 
Average import price from the countries 
concerned (EUR/tonne) 
Index (2007=100) 

2007 

2008 

2009 

RIP 

8.559 
100 

6.636 
78 

6.154 
72 

8.795 
103 

6,9% 
100 

5,5% 
79 

6,1% 
88 

7,2% 
104 

4.998 
100 

4.709 
94 

4.656 
93 

4.730 
95 

(70)  As  shown  in  the  above  table,  the  volume  of  imports  originating  in  the  countries 
concerned increased by 3% over the period considered. In line with evolution of the 
consumption, there was a drop in the period 2008-2009. However, this decrease was 
less marked than the decrease in consumption in the same period. Between 2009 and 
the RIP imports increased again by as much as 43%. 

EN 

15 

   EN 

 
 
 
(71)  Average  import  prices  decreased  by  5%  during  the  period  considered.  As  for  the 
volumes,  also  import  prices  were  at  their  lowest  level  in  2009  after  which  they 
increased slightly. 

(72)  Over  the  period  considered  market  share  of  the  dumped  imports  followed  the 

evolution of the consumption and remained stable at around 7%. 

3.3.  Price undercutting 

(73) 

In  view  of  the  non-cooperation  of  the  Chinese  exporting  producers  and  limited 
cooperation  of  the  Taiwanese  exporting  producers  there  is  very  limited  information 
available in respect of the types of SSF exported to the Union. This together with the 
fact that the product concerned covers a variety of different types of SSF with a large 
price variation (for example, the unit prices within the category of wood screws may 
vary by 30 times), made it impossible to make a meaningful price comparison for the 
purpose  of  establishing  the  undercutting  margins.  The  comparison  of  the  weighted 
average sales price of the Union industry to unrelated customers in the Union, adjusted 
to  ex-works  level  with  the  average  CIF  import  price  of  the  countries  concerned, 
derived from Eurostat did not show any undercutting in the RIP. As regards Taiwan, 
the  sole  cooperating  exporting  producer  exported  a  specific  type  of  SSF  for  which 
there  is  very  limited  production  in  the  Union.  Therefore,  in  the  absence  of  matching 
product types no undercutting calculation on a type by type basis could be performed 
for this company. 

4. 

Economic situation of the Union industry  

4.1.  Preliminary remarks 

(74)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
economic factors and indices having a bearing on the state of the Union industry.  

(75)  Due to the use of sampling, the injury indicators have been established partially for the 
Union  industry  as  a  whole  and  partially  for  the  sampled  Union  producers  only.  The 
injury analysis with regard to macroeconomic data, such as market share, production, 
capacity  and  capacity  utilisation,  sales  volume,  growth,  stocks,  employment  and 
productivity is based on data of the Union industry as a whole. Otherwise, data with 
regard to the sampled Union producers have been used (transaction prices, investment 
& return on investment, wages, profitability, cash flow and ability to raise capital). 

4.2.  Production 

(76)  The  table  below  shows  that  production  decreased  by  17%  during  the  period 
considered.  In  line  with  a  decreased  demand,  the  Union  industry’s  production  first 
decreased sharply by 24% between 2007 and 2009, and then slightly increased by 10% 
between 2009 and the RIP.  

Production (tonnes) 
Index (2006=100) 

EN 

Table 3 

16 

2007 
74.514 
100 

2008 
69.514 
93 

2009 
56.396 
76 

RIP 
62.213 
83 

   EN 

 
 
Source: Macro data 

4.3.  Capacity and capacity utilisation  

(77)  Production capacity declined during the period considered by 13% and in line with the 
evolution of the production the rate of the capacity utilisation showed a slight decrease 
of 4% between 2007 and the RIP. 

Table 4 

2007 

2008 

2009 

RIP 

148.039 140.743 127.200  128.881

100 
50% 
100 

95 
49% 
98 

86 
44% 
88 

87 
48% 
96 

Production capacity (tonnes) 
Index (2006=100) 
Capacity utilisation 
Index (2006=100) 

Source: Macro data 

4.4.  Stocks  

(78)  The level of closing stocks of the Union industry decreased in 2008 compared to 2007 
and  then  remained  stable  between  2008  and  RIP.  In  the  RIP,  the  level  of  stocks 
increased somewhat, but was still 26% lower than in 2007.  

Table 5 

2007 
9.688 
100 

2008 
7.465 
77 

2009 
6.964 
72 

RIP 
7.139 
74 

Closing stock (tonnes) 
Index (2006=100) 

Source: Micro data 

4.5.  Sales volume  

(79)  The sales by the Union industry on the Union market to unrelated customers decreased 
by  25%  over  the  period  considered.  Sales  volumes  decreased  by  28%  between  2007 
and 2009 reaching their lowest level in 2009. However, during the RIP sales volumes 
recovered  and  showed  an  increase  of  5%  when  compared  to  2009  levels.  It  is 
noteworthy that this increase was much less than the increase in demand (20%) in the 
same period.  

Table 6 

2007 

2008 

2009 

RIP 

62.326 
100 

56.042 
90 

44.627 
72 

46.851 
75 

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

Source: Macro data 

4.6.  Market share 

(80)  The market share held by the Union industry declined progressively by 12 percentage 

points between 2007 and the RIP.  

EN 

17 

   EN 

 
 
 
 
Table 7 

Market share of the Union industry 

50,6% 

46,5% 

44,1% 

38,6% 

Index (2007=100) 

100 

92 

87 

76 

2007 

2008 

2009 

RIP 

Source: Macro data 

4.7.  Growth  

(81)  As shown in Table 1 in recital (65), Union consumption decreased between 2007 and 
2009  after  which  it  increased  again  to  almost  the  same  level  as  in  2007.  The  Union 
industry  however  lost  12  percentage  points  of  market  share  during  the  period 
considered, whilst the imports concerned managed to keep their market share stable. 

4.8.  Employment 

(82)  The level of employment of the Union industry declined by 7% between 2007 and the 

RIP. 

Table 8 

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

Source: Macro data 

4.9.  Productivity 

2007 

2008 

2009 

RIP 

954 
100 

1.007 
106 

863 
90 

886 
93 

(83)  Productivity  of  the  Union  industry's  workforce,  measured  as  output  per  person 
employed per year, decreased by 10% between 2007 and the RIP. It reached its lowest 
level in 2009, before it recovered during the RIP. 

Table 9 

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

Source: Macro data 

2007 
78,1 
100 

2008 
69 
88 

2009 
65,3 
84 

RIP 
70,2 
90 

4.10.  Sales prices and factors affecting domestic prices 

(84)  Unit sales prices of the Union industry showed a significant declining trend between 
2007  and  2009  when  they  decreased  by  50%.  This  was  partly  due  to  the  significant 
decrease in costs of the raw  material  used  to  produce  SSF.  During  the  RIP  the  sales 
prices  recovered,  however,  compared  to  the  year  2009  but  were  still  35%  lower 
compared to those prevailing at the beginning of the period considered. 

EN 

18 

   EN 

 
 
 
 
(85)  The  investigation  showed  that  the  decrease  in  sales  prices  between  2007  and  2009 
partly reflected the impact of the economic crisis which led to a decrease in costs by 
28% in that period. This decrease mainly reflected the price development of nickel, the 
main  raw  material  used  in  the  production  of  stainless  steel  fasteners.  However,  the 
investigation showed that even if the financial crisis had a negative impact on the sales 
prices, there was also a downward pressure by imports in particular from other third 
countries,  which  expanded  on  the  Union  market  despite  the  flat  consumption  and 
applied price pressure to the core product types manufactured and sold by the Union 
industry which was forced to decrease its sales prices more than the decrease in costs. 
This led to a significant deterioration of the Union industry's performance during this 
period. Even if sales prices increased during the RIP compared to 2009 their level was 
not  sufficient  to  cover  all  costs  and  allow  the  Union  industry  to  make  a  reasonable 
margin of profit. 

(86)  The sales prices reported on the table below are average prices per tonne which largely 
depend  on  the  product  mix.  As  explained  in  recital  (73),  prices  within  certain 
categories of SSF can vary up to even 30 times. 

Table 10 

Average sales prices (EUR/tonne) 

5.842 

4.437 

2.914 

3.803 

2007 

2008 

2009 

RIP 

Index (2007=100) 

Source: Micro data 

4.11.  Wages  

100 

76 

50 

65 

(87)  Between 2007 and the RIP, the average wages per employee decreased by 12%. 

Table 11 

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

2007 

2008 

2009 

RIP 

47 
100 

44 
94 

41 
87 

42 
88 

Source: Micro data 

4.12.  Investments  

(88) 

In 2008 the Union industry invested heavily in the production of SSF, compared to the 
other years covered by the period considered. After this year investments decreased.  

Table 12 

2007 
2.504 
100 

2008 
9899 
395 

2009 
3.087 
123 

RIP 
2.299 
92 

Net investments ( 000 EUR) 
Index (2007=100) 

Source: Micro data 

4.13.  Profitability and return on investments 

EN 

19 

   EN 

 
 
 
 
(89)  As mentioned in recital (85) above, the investigation showed that even if the decrease 
in  sales  prices  partly  reflected  the  decrease  in  costs,  the  price  of  the  Union  industry 
was under the pressure exerted by the imports of SSF and did not allow covering all 
costs  incurred  in  the  production  and  sale  of  SSF.  This  lead  to  a  significant 
deterioration  of  profitability,  which  was  positive  in  2007,  and  negative  thereafter  as 
shown in the table below.  

(90)  The return on investments (‘ROI’) significantly decreased from a level of 29% in 2007 

to -17% in the RIP.  

Table 13 

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

Source: Micro data 

4.14.  Cash flow and ability to raise capital  

2007 

2008 

2009 

RIP 

7% 

-9% 

-36% 

-3% 

29% 

-16% 

-41% 

-17% 

(91)  The net cash-flow from operating activities decreased significantly during the period 
considered.  It  reached  its  lowest  level  in  2009  after  which  itincreased  slightly. 
However, cash flow in the RIP was still significantly lower than in 2007.  

Table 14 

2007 
15.899 
100 

2008 
-698 
-4 

2009 
-12.357 
-78 

RIP 
-8.271 
-52 

Cash flow (000 EUR) 
Index (2007=100) 

Source: Micro data 

4.15.  Magnitude of dumping margin 

(92)  Despite  the  measures  in  force  substantial  dumping  continued  at  levels  of  13,6%  to 
61,8% for the PRC and 14% to 50% for Taiwan, based both on the data obtained from 
the review request and the sole cooperating exporting producer in Taiwan. The impact 
on  the  Union  industry  of  the  actual  margins  of  dumping  cannot  be  considered  to  be 
negligible. 

4.16.  Recovery from the effects of past dumping  

(93)  Almost  all  of  the  indicators  examined  show  a  deterioration  in  the  economic  and 
financial  situation  of  the  Union  industry  following  the  year  2007.  Despite  the 
measures  in  force,  imports  from  the  countries  concerned  have  increased  slightly  and 
managed to keep their market share stable. In 2009 when the financial crisis impacted 
the  overall  demand  in  the  Union  and  sales  prices  were  under  pressure,  the  Union 
producers lost a substantial part of their customers. Only some Union producers were 
able  to increase their production volumes  by producing  other types of fasteners (e.g. 
carbon steel fasteners) and could benefit from economies of scale and thus compensate 
for  the  lost  sales  volume  incurred  in  the  SSF  business.  At  the  same  time,  the  Union 
producers  made  efforts  to  increase  their  investments  in  order  to  produce  more 

EN 

20 

   EN 

 
 
 
efficiently. During the RIP, the Union industry managed to improve their performance, 
although they still remained loss making. The situation is not likely to improve given 
the very low level of capacity utilisation forecast. 

5. 

Impact of dumped imports and other factors 

5.1.  Impact of the dumped imports  

(94)  The  investigation  showed  that  despite  the  measures  in  force  and  the  decrease  in 
consumption  in  the  Union  over  the  period  considered,  imports  from  the  PRC  and 
Taiwan  increased  slightly  over  the  period  considered,  keeping  their  market  share 
stable.  

(95)  As described in recital (73) it was not possible to make a meaningful price comparison 
between the import prices of the countries concerned and the sales prices of the Union 
industry on the Union market in view of the lack of information of types exported by 
the  Chinese  and  Taiwanese  exporting  producers  and  the  large  price  variation  of 
different product types within this average price. Indeed, the export prices of the sole 
cooperating Taiwanese producer could not be compared in a meaningful way with the 
prices  of  the  sampled  Union  producers,  as  there  was  no  matching  of  similar  product 
types.  

(96)  Further  to  the  final  disclosure,  the  cooperating  Taiwanese  producer  mentioned  in 
recital (22) claimed that its exports have not caused any injury to the applicant, since it 
produces types of SSF which are produced only by a few Union producers in limited 
quantities. In this respect it is noted, firstly, that the injury assessment is made for the 
Union industry as a whole and not only for the applicant. Secondly, measures are in 
force for the product scope as defined in the original investigation, and as explained in 
recital (21) it is not possible to modify the product scope in the context of an expiry 
review. 

5.2.  Impact of the economic crisis 

(97)  Due to the positive economic conditions prevailing in the steel and related industries 
in  2007,  the  Union  industry  was  in  a  relatively  good  economic  condition  when  the 
economic  crisis  started  at  the  end  of  2008.  Even  when  the  market  stagnated,  in 
particular  in  2009,  some  Union  producers  continued  their  investments  to  replace 
obsolete machinery and equipment in order to lower the cost of production and to be 
more competitive in face of the dumped imports from the countries concerned and the 
surge of low priced imports from other third countries. Furthermore, when a downturn 
in  demand  was  perceived,  the  Union  producers  were  also  confronted  with  strong 
negotiating power by large distributors which started to exercise more price pressure 
which negatively impacted the Union industries economical situation.  

5.3.  Imports from other countries 

(98)  The  impact  of  imports  from  other  third  countries  has  also  been  analysed.  Their 
combined import volume increased by 26% during the period considered, from around 
52.000  tonnes  to  around  66.000  tonnes.  At  the  same  time  average  import  prices 
decreased  by  28%  during  the  period  considered  and  consequently  their  market  share 
increased from 42,5% in 2007 to 54,2% in the RIP.  

EN 

21 

   EN 

 
(99)  The bulk of the imports from other third countries appear to be from India, Philippines 
and Malaysia. Imports from these three countries accounted for a total market share of 
around 36% in the RIP.  

(100)  As  regards  imports  from  India,  they  increased  by  141%  over  the  period  considered, 
from  around  8.000  tonnes  in  2007  to  almost  20.000  tonnes  in  the  RIP.  The  average 
import prices decreased by 32% over the same period and were significantly below the 
average  sales  price  of  the  Union  industry  in  the  RIP.  Consequently,  the  Indian 
exporters increased their market share from 6,7% in 2007 to 16,4% in the RIP.  

(101)  Imports  from  Philippines  show  a  similar  trend  to  those  from  India  and  increased  by 
129% over the period considered, from around 6.000 tonnes in 2007 to almost 14.000 
tonnes in the RIP. The average import prices decreased by 38% over the same period 
and in the RIP they were undercutting the average sales price of the Union industry. 
Consequently, the market share of Philippines increased from 4,9% in 2007 to 11,4% 
in the RIP.  

(102)  As regards imports  from  Malaysia,  although  there was a decreasing trend in imports 
over the period considered (-27%), the Malaysian exporters still had a market share of 
8,2%  in  the  RIP.  Furthermore,  according  to  the  Eurostat  data,  the  average  import 
prices  from  Malaysia  were  higher  than  those  from  the  countries  concerned  in  the 
beginning  of  the  period  considered,  however,  in  the  second  part,  the  prices  were 
significantly lower.  

(103)  In  conclusion,  it  appears  that  exporters  in  other  third  countries,  in  particular  India, 
Philippines and Malaysia, have profited from the existence of anti-dumping measures 
against  the  PRC  and  Taiwan.  In  the  second  part  of  the  period  considered  the  Indian 
and  Philippine  imports  more  than  doubled  at  prices  below  those  of  the  PRC  and 
Taiwan, while the imports from Malaysia showed a decreasing trend. This additional 
price  pressure  had  a  further  negative  impact  on  the  Union  industry  which  saw  its 
profits  and  other  financial  indicators  showing  a  strong  negative  trend  from  2008 
onwards.  Therefore,  the  development  of  imports  from  in  particular  India  and  the 
Philippines have certainly contributed to the loss of market share of the Union industry 
and the negative development of its financial situation. 

Table 15 

Volume of imports from other countries 
(tonnes) 

Index (2007=100) 
Market share of imports from the other 
countries 
Price of imports from the other countries 
(EUR/tonne) 

Index (2007=100) 

2007 

2008 

2009 

RIP 

52.339 

57.920 

50.362 

65.756 

100 

111 

96 

126 

42,5% 

48,0% 

49,8% 

54,2% 

5.830 

4.993 

4.384 

4.196 

100 

86 

75 

72 

2007 

2008 

2009 

RIP 

EN 

22 

   EN 

 
 
 
 
Volume of imports from India (tonnes) 

Index (2007=100) 

Market share of imports from India 

Price of imports from India (EUR/tonne) 

Index (2007=100) 

Volume of imports from Philippines 
(tonnes) 

Index (2007=100) 

Market share of imports from Philippines 
Price of imports from Philippines 
(EUR/tonne) 

Index (2007=100) 

Volume of imports from Malaysia 
(tonnes) 

Index (2007=100) 

Market share of imports from Malaysia 
Price of imports from Malaysia 
(EUR/tonne) 

Index (2007=100) 

6.  Conclusion 

8.282 

13.667 

16.776 

19.945 

100 

165 

203 

241 

6,7% 

11,3% 

16,6% 

16,4% 

4.632 

3.758 

3.123 

3.164 

100 

81 

67 

2007 

2008 

2009 

68 

RIP 

6.048 

7.046 

5.406 

13.854 

100 

117 

89 

229 

4,9% 

5,8% 

5,3% 

11,4% 

5.685 

4.645 

3.474 

3.505 

100 

82 

61 

2007 

2008 

2009 

62 

RIP 

13.548 

13.712 

9.810 

9.933 

100 

101 

72 

73 

11,0% 

11,4% 

9,7% 

8,2% 

5.062 

4.203 

2.963 

3.068 

100 

83 

59 

61 

(104)  While the Union consumption remained rather stable during the period considered the 
Union  industry  lost  25%  of  its  sales  volume  in  the  Union  during  the  same  period, 
leading to a loss of market share from 50,6% in 2007 to 38,6% in the RIP. At the same 
time  dumped  imports  from  the  countries  concerned  managed  to  keep  their  market 
share stable.  

(105)  Between  2007  and  the  RIP,  and  notwithstanding  the  existence  of  the  anti-dumping 
measures, most injury indicators developed negatively: production and sales volumes 
decreased by 17% and 25% respectively, capacity and capacity utilisation dropped and 
were  followed  by  a  decrease  in  employment  and  productivity  levels.  Profitability 
dropped from 7% in 2007 to -3% in the RIP and cash flow showed a similar negative 
trend. 

(106)  It is concluded that the Union industry's situation deteriorated overall during the period 
considered and that the Union industry was in a fragile situation at the end of the RIP, 

EN 

23 

   EN 

 
 
 
 
when  its  efforts  to  maintain  sales  volumes  and  a  sufficient  level  of  prices  were 
hampered  by  the  increased  presence  of  the  dumped  imports  from  the  countries 
concerned as well as low priced imports from other third countries. 

F. 

LIKELIHOOD OF CONTINUATION OF INJURY 

1.  Relationship  between  export  volumes  and  prices  of  the  countries 

concerned to third countries and export volumes and prices to the Union  

(107)  In  the  absence  of  cooperation  from  Chinese  exporters,  there  is  no  information 
available regarding their export prices to other markets. As regards Taiwan, based on 
the information available from the verified companies, average export prices to third 
countries are lower than those charged in the Union market. Therefore, it is considered 
that,  should  measures  lapse,  Taiwanese  exporters  would  have  an  incentive  to  shift 
significant quantities of exports from other third countries to the more attractive Union 
market.  

2.  Unused capacity in the countries concerned 

(108)  Based on the information available it appears that there is a large production capacity 
available both in the PRC and Taiwan and both countries have the ability to increase 
rapidly  their  production  volumes.  In  this  respect  it  is  recalled  that  the  imposition  of 
anti-dumping measures on imports of certain iron or steel fasteners from the PRC in 
200910 has led to a drop in the Chinese imports and freed capacity which could be used 
for  the  production  of  SSF.  Furthermore,  it  is  noteworthy  that  a  circumvention 
investigation  concluded  recently  extended  the  measures  imposed  on  certain  iron  and 
steel  fasteners  originating  in  the  PRC  to  imports  consigned  from  Malaysia11. 
Therefore, the capacity to significantly increase export quantities to the EU exists, in 
particular because there are no indications that third country markets or the domestic 
market could absorb any additional production.  

3.  Conclusion  

(109)  It is clear that the producers in the countries concerned have the potential to raise their 
export  volumes  significantly  to  the  EU  market.  Moreover,  in  respect  of  Taiwan,  it 
appears that export prices to third countries are lower than those charged in the Union 
market, thus increasing the likelihood that a share of the third country exports would 
be  redirected  to  the  EU  market  in  the  absence  of  measures.  This  would,  in  all 
likelihood, have a negative impact on the economic situation of the Union industry. 

(110)  As shown above, the situation of the Union industry remains vulnerable. If the Union 
industry  were  to  be  exposed  to  increased  volumes  of  imports  from  the  countries 
concerned at dumped prices, this would be likely to result in a further deterioration of 
its  sales,  market  share,  sales  prices,  as  well  as  a  consequent  deterioration  of  its 
financial  situation.  On  this  basis,  it  is  therefore  concluded,  that  the  repeal  of  the 
measures would in all likelihood result in a worsening of the already fragile situation, 
and a continuation of material injury to the Union industry.  

10 
11 

Council Regulation (EC) No 91/2009 of 26 January 2009, OJ L 29, 31.1.2009, p. 1. 
Council Regulation (EC) No 723/2011 of 18 July 2011, OJ L 194, 26.7.2011, p. 6. 

EN 

24 

   EN 

 
                                                 
G. 

UNION INTEREST 

1. 

Introduction 

(111)  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 
appreciation  of  the  various  interests  involved,  i.e.  those  of  the  Union  industry,  of 
importers, and of users. All interested parties were given the opportunity to make their 
views known pursuant to Article 21(2) of the basic Regulation. 

(112)  It should be recalled that, in the original investigation, the imposition 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.  

(113)  On this basis it was examined whether, despite the conclusions on the likelihood of a 
continuation  of  injurious  dumping,  compelling  reasons  existed  which  would  lead  to 
the conclusion that it is not in the Union interest to maintain measures in this particular 
case.  

2. 

Interest of the Union industry 

(114)  The Union industry has proven to be a structurally viable industry. This was confirmed 
by  the  rather  healthy  economic  situation  observed  in  the  beginning  of  the  period 
considered. However, throughout the period considered the Union industry lost sales 
volume and market share and sales prices decreased while imports from the countries 
concerned increased slightly despite the measures in force. During the same period the 
financial  situation  of  the  Union  industry  deteriorated  and  it  turned  loss-making. 
Without the existence of the measures, the Union industry would in all likelihood be in 
an even worse situation. 

3. 

Interest of importers/ users 

(115)  None  of  the  20  contacted  users  came  forward  to  cooperate.  It  is  recalled  that  in  the 
original investigation, only one user cooperated and it was concluded that users could 
obtain the product under investigation not only from the countries concerned, but also 
from other sources of supply. Furthermore, given the marginal impact of SSF on the 
costs of downstream products, it was concluded that the measures would not adversely 
impact the users industry. 

(116)  Only one importer out of the three sampled importers replied to the questionnaire. Its 
share of the imports from the countries concerned was very limited and amounted to 
1,1%  during  the  RIP.  Furthermore,  the  investigation  showed  that  the  importer 
generated a healthy profitability (between 5% and 10%) while the share of the product 
concerned in relation to the total company activity is below 10%. Consequently, it can 
be concluded that the continuation of measures would have a very limited impact on 
this importer. 

4.  Conclusion  

EN 

25 

   EN 

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

maintenance of the current anti-dumping measures.  

H. 

ANTI-DUMPING MEASURES 

(118)  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.  

(119)  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 certain stainless steel 
fasteners and parts thereof originating in the People's Republic of China and Taiwan, 
imposed by Regulation (EC) No 1890/2005 should be maintained,  

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  certain  stainless 
steel fasteners and parts thereof, currently falling within CN codes 7318 12 10, 7318 
14  10,  7318  15  30,  7318  15  51,  7318  15  61  and  7318  15  70  originating  in  the 
People's Republic of China and Taiwan. 

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

Country 

Companies 

AD duty rate (%) TARIC additional 

The 
People’s 
Republic 
of China 

Tengzhou Tengda Stainless 
Steel Product Co. Ltd., 
Tengzhou City 

Tong Ming Enterprise 
(Jiaxing) Co. Ltd., Zhejiang 

All other companies 

Taiwan 

Arrow Fasteners Co. Ltd., 
Taipei  

Jin Shing Stainless Ind. Co. 
Ltd, Tao Yuan 

Min Hwei Enterprise Co. Ltd, 
Pingtung 

Tong Hwei Enterprise, Co. 

11,4 

12,2 

27,4 

15,2 

8,8 

16,1 

16,1 

code 

A650 

A651 

A999 

A653 

A654 

A655 

A656 

EN 

26 

   EN 

 
Ltd., Kaohsiung 

Yi Tai Shen Co. Ltd., Tainan 

Companies listed in the 
Annex 

All other companies  

11,4 

15,8 

23,6 

A657 

A649 

A999 

3. 

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 

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

Done at Brussels,  

For the Council 
The President 

EN 

27 

   EN 

 
 
 
 
ANNEX 

(TARIC additional code A649) 

A-STAINLESS INTERNATIONAL CO. LTD., Taipei  

BOLTUN CORPORATION, Tainan 

CHAEN WEI CORPORATION, Taipei  

CHIAN SHYANG ENT CO. LTD., Chung-Li City  

CHONG CHENG FASTENER CORP., Tainan 

DIING SEN FASTENERS & INDUSTRIAL CO. LTD., Taipei 

DRAGON IRON FACTORY CO. LTD., Kaohsiung 

EXTEND FORMING INDUSTRIAL CORP. LTD., Lu Chu  

FORTUNE BRIGHT INDUSTRIAL CO. LTD., Lung Tan Hsiang 

FWU KUANG ENTERPRISES CO. LTD., Tainan 

HSIN YU SCREW ENTERPRISE CO. LTD., Taipin City 

HU PAO INDUSTRIES CO. LTD., Tainan 

J C GRAND CORPORATION, Taipei 

JAU YEOU INDUSTRY CO. LTD., Kangshan 

JOHN CHEN SCREW IND CO. LTD., Taipei 

KUOLIEN SCREW INDUSTRIAL CO. LTD., Kaohsiung 

KWANTEX RESEARCH INC., Tainan 

LIH LIN ENTERPRISES & INDUSTRIAL CO. LTD., Taipei 

LIH TA SCREW CO. LTD., Kweishan 

LU CHU SHIN YEE WORKS CO. LTD., Kaohsiung 

M & W FASTENER CO. LTD., Kaohsiung 

MULTI-TEK FASTENERS & PARTS MANIFACTURER CORP., Tainan 

NATIONAL AEROSPACE FASTENERS CORP., Ping Jen City 

QST INTERNATIONAL CORP., Tainan 

EN 

28 

   EN 

 
SEN CHANG INDUSTRIAL CO. LTD., Ta-Yuan  

SPEC PRODUCTS CORP., Tainan 

SUMEEKO INDUSTRIES CO. LTD., Kaohsiung  

TAIWAN SHAN YIN INTERNATIONAL CO. LTD., Kaohsiung 

VIM INTERNATIONAL ENTERPRISE CO. LTD., Taichung 

YEA-JANN INDUSTRIAL CO. LTD., Kaohsiung 

ZONBIX ENTERPRISE CO. LTD., Kaohsiung  

ZYH YIN ENTERPRISE CO. LTD., Kaohsiung 

EN 

29 

   EN