Proposal for a COUNCIL REGULATION amending Regulation (EC) No 130/2006 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of tartaric acid originating in the People’s Republic of China, and excluding company Hangzhou Bioking Biochemical Engineering Co., Ltd from the definitive measures
Date: 2012-03-16
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping measure, import (EU), organic acid, originating product

EUROPEAN COMMISSION 

Brussels, 16.3.2012  
COM(2012) 114 final 

2012/0053 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 130/2006 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of tartaric acid 
originating in the People’s Republic of China, and excluding company Hangzhou 
Bioking Biochemical Engineering Co., Ltd from the definitive measures 

 
 
 
 
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No 
1515/2001  of  23  July  2001  on  the  measures  that  may  be  taken  by  the 
Community following a report adopted by the WTO Dispute Settlement Body 
concerning anti-dumping and anti-subsidy matters, in relation with the expiry 
review  proceeding  concerning  the  anti-dumping  duty  in  force  in  respect  of 
imports of tartaric acid originating in the People's Republic of China. 

•  General context 

This  proposal  is  made  in  the  context  of  the  implementation  of  Council 
Regulation  (EC)  No  1515/2001  and  is  the  result  of  a  review  of  Council 
Regulation (EC) No 130/2006 which was carried out in light of the report of 
the Appellate Body of the WTO in Mexico — Beef and Rice1. 

•  Existing provisions in the area of the proposal 

The measures currently in force are a definitive anti-dumping duty imposed by 
Council Regulation (EC) No 130/2006 on imports of tartaric acid originating 
in the People's Republic of China (OJ L 23, 27.1.2006, p. 1.), as last amended 
by Council Regulation (EC) No 150/2008 (OJ L 48, 22.2.2008, p.1). 

•  Consistency with the 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. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of Council Regulation (EC) 
No 1515/2001.This Regulation does not foresee a general impact assessment. 

1 

Mexico  —  Definitive  Anti-dumping  Measures  on  Beef  and  Rice,  Report  of  the  Appellate  Body, 
WT/DS295/AB/R, 29 November 2005 

EN 

2 

   EN 

 
                                                 
3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  26  January  2011,  the  Commission  initiated,  pursuant  to  Article  2(3)  of 
Regulation  (EC)  No  1515/2001,  a  review  of  Council  Regulation  (EC)  No 
130/2006  in  relation  with  an  expiry  review  of  the  anti-dumping  measures 
applicable  to  imports  of  tartaric  acid  originating  in  the  People's  Republic  of 
China.  

The  review  investigation  found  that,  in  light  of  the  report  of  the  Appellate 
Body of the WTO in Mexico — Beef and Rice, the continued imposition of 
the measures imposed on Hangzhou Bioking by Council Regulation (EC) No 
130/2006  was  no  longer  appropriate  and  Council  Regulation  (EC)  No 
130/2006 should be amended accordingly. 

It  is  therefore  proposed  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation in order that the company Hangzhou Bioking is excluded from the 
scope of Council Regulation (EC) No 130/2006, which should be published in 
Official Journal of the European Union by the 24 April 2012. 

•  Legal basis 

Council Regulation (EC) No 1515/2001 of 23 July 2001 on the measures that 
may  be  taken  by  the  Community  following  a  report  adopted  by  the  WTO 
Dispute Settlement Body concerning anti-dumping and anti-subsidy matters.  

•  Subsidiarity principle 

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

•  Proportionality principle 

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

The form of action leaves no scope for national decision. 

Indication  of  how  the  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  above-
mentioned basic Regulation does not foresee alternative options. 

EN 

3 

   EN 

 
4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

EN 

4 

   EN 

 
 
2012/0053 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 130/2006 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of tartaric acid 
originating in the People’s Republic of China, and excluding company Hangzhou 
Bioking Biochemical Engineering Co., Ltd from the definitive measures 

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  1515/2001  of  23  July  2001  on  the  measures 
that  may  be  taken  by  the  Community  following  a  report  adopted  by  the  WTO  Dispute 
Settlement Body concerning anti-dumping and anti-subsidy matters2, and in particular Article 
2(1) thereof, 

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

Whereas: 

1. 

(1) 

2. 

(2) 

A. PROCEDURE 

Measures in force 

By  Regulation  (EC)  No  130/20063,  the  Council  imposed  a  definitive  anti-dumping 
duty, ranging from 0% to 34.9%, on imports of tartaric acid ('TA') originating in the 
People’s  Republic  of  China  ('China').  The  rate  of  the  definitive  anti-dumping  duty 
imposed  on  TA  produced  by  the  Chinese  exporting  producer  Hangzhou  Bioking 
Biochemical Engineering Co., Ltd. ('Hangzhou Bioking') was 0%. 

Initiation  of  an  expiry  review  and  of  a  review  of  existing  measures  on  Hangzhou 
Bioking 

Following  the  publication  of  a  notice  of  impending  expiry4  of  the  anti-dumping 
measures  in  force,  the  Commission  received  on  27  October  2009  a  request  for  the 
initiation of an expiry review of these measures pursuant to Article 11(2) of Council 
Regulation (EC) No 1225/2009 of 30 November  2009 on protection  against  dumped 

2 
3 
4 

OJ L 201, 26.7.2001, p. 10. 
OJ L 23, 27.1.2006, p. 1. 
OJ C 211, 4.8.2010, p. 11. 

EN 

5 

   EN 

 
                                                 
imports  from  countries  not  members  of  the  European  Community5  (‘the  basic 
Regulation’). 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  an  expiry  review,  the  Commission  announced  on  26 
January 2011 the initiation of an expiry review pursuant to Article 11(2) of the basic 
Regulation,  by  a  notice  published  in  the  Official  Journal  of  the  European  Union6 
('Notice of initiation').  

In the Notice of initiation, the Commission also announced the initiation of a review of 
existing measures on Hangzhou Bioking pursuant to Article 2(3) of Regulation (EC) 
No 1515/2001 in order to allow for any necessary amendment of Regulation (EC) No 
130/2006 in the light of the WTO Appellate Body report entitled 'Mexico – Definitive 
Anti-Dumping Measures on Beef and Rice7. This report found in paragraphs 305 and 
306  that  an  exporting  producer  not  found  to  be  dumping  in  an  original  investigation 
has  to  be  excluded  from  the  scope  of  the  definitive  measure  imposed  as  a  result  of 
such  investigation  and  cannot  be  made  subject  to  administrative  and  changed 
circumstances review.  

Initiation of a new proceeding  

On  29  July  2011,  the  Commission  announced,  by  a  notice  published  in  the  Official 
Journal  of  the  European  Union8,  the  initiation  of  an  anti-dumping  investigation 
pursuant  to  Article  5  of  the  basic  Regulation  concerning  imports  into  the  European 
Union of tartaric acid originating in China, limited to Hangzhou Bioking. 

Exclusion of Hangzhou Bioking from the definitive anti-dumping measures imposed 
by Regulation (EC) 130/2006 

Since  Hangzhou  Bioking  should  be  excluded  from  the  definitive  anti-dumping 
measure  imposed  by  Regulation  (EC)  No  130/2006  in  order  not  to  make  Hangzhou 
Bioking fall under two anti-dumping proceedings at the same time, 

(3) 

(4) 

3. 

(5) 

4. 

(6) 

HAS ADOPTED THIS REGULATION: 

Regulation (EC) No 130/2006 is hereby amended as follows: 

Article 1 

In Article 1(2), in the table, the entry concerning Hangzhou Bioking Biochemical Engineering 
Co., Ltd shall be deleted and the entry 'All other companies' shall be replaced by the entry 'All 
other  companies  (except  Hangzhou  Bioking  Biochemical  Engineering  Co.,  Ltd  –  TARIC 
additional code A687)'. 

5 
6 
7 
8 

OJ L 343, 22.12.2009, p. 51. 
OJ C 24, 26.1.2011, p. 14. 
WT/DS295/AB/R, 29 November 2005. 
OJ C 223, 29.7.2011, p. 11. 

EN 

6 

   EN 

 
                                                 
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 

7 

   EN