Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of tartaric 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: 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) 112 final 

2012/0051 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of tartaric 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 

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  tartaric  acid  originating  in  the  People's  Republic  of 
China. 

•  General context 

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

•  Existing provisions in the area of the proposal 

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 L23, 27.1.2006, p.1.), as last amended 
by Council Regulation (EU) No XX/2012 (OJ LXX, xx.yy.2012, p.x.). 

•  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,  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  foresee  a  general  impact  assessment  but 
contains an exhaustive list of conditions that have to be assessed. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  26  January  2011,  the  Commission  initiated  an  expiry  review  of  the  anti-
dumping  measures  applicable  to  imports  of  tartaric  acid  originating  in  the 
People's Republic of China.  

tartaric  acid 
investigation  found  continuing  dumping  of 
The  review 
originating  in  the  People's  Republic  of  China,  which,  if  anti-dumping 
measures  were  lifted,  would  result  in  the  recurrence  of  injury  to  the  Union 
industry.  It  was  further  established  that  the  continuation  of  measures  would 
not be against the Union interest. 

It  is  therefore  proposed  that  the  Council  adopt  the  attached  proposal  for  a 
Regulation in order to prolong the measures currently in force on imports of 
tartaric  acid  originating  in  the  People's  Republic  of  China,  which  should  be 
published in Official Journal of the European Union by the 24th of April 2012. 

•  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  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  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. 

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4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2012/0051 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of tartaric 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 Community1 (the ‘basic 
Regulation’), and in particular Article 9(4) and Article 11(2), 11(5) and 11(6) thereof, 

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

Whereas: 

1. 

(1) 

(2) 

(3) 

A. PROCEDURE 

Previous investigations and measures in force 

By Regulation (EC) No 130/20062 (the ‘original Regulation’), 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'). It is recalled that 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%  while  it  ranged  between  4.7%  and  34.9%  for  other  Chinese  exporting 
producers. 

On 22 February 2008, following a review initiated on the basis of Article 11(3) of the 
basic Regulation, the Council by Regulation (EC) No 150/20083 amended the scope of 
the above mentioned measures. 

On XX April 2012, following a review of the existing measures on Hangzhou Bioking 
initiated on the basis of Article 2(3) of Regulation (EC) No 1515/2001, in light of the 
WTO Appellate Body report entitled 'Mexico – Definitive Anti-Dumping Measures on 
Beef and Rice4, which found in paragraphs 305 and 306 that an exporting producer not 

1 
2 
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4 

OJ L 343, 22.12.2009, p. 51. 
OJ L 23, 27.1.2006, p. 1. 
OJ L 48, 22.2.2008, p. 1. 
WT/DS295/AB/R, 29 November 2005. 

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(4) 

2. 

(5) 

(6) 

3. 

(7) 

4. 

(8) 

(9) 

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,  the  Council  by 
Regulation (EU) No XXX/20125 amended the measures regarding Hangzhou Bioking. 

The investigation that led to the measures imposed by the original Regulation will be 
hereinafter referred to as 'the original investigation'. 

Request for an expiry review 

Following  the  publication  of  a  notice  of  impending  expiry6  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 the basic 
Regulation.  The  request  was  lodged  by  the  following  producers  ('the  applicants'): 
Distillerie Bonollo SpA, Industria Chimica Valenzana SpA, Distillerie Mazzari SpA, 
Caviro  Distillerie  S.r.l  and  Comercial  Quimica  Sarasa  s.l.  representing  a  major 
proportion, in this case more than 50%, of the total Union production of TA. 

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

Initiation of an expiry review  

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  an  expiry  review,  the  Commission  announced  on  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  Union7, 
('notice of initiation').  

Parallel cases 

The  Commission  also  announced  on  29  July  2011  the  initiation  of  an  anti-dumping 
proceeding8  pursuant  to  Article  5  on  imports  of  TA  originating  in  China,  limited  to 
one Chinese exporting producer, Hangzhou Bioking. 

On the same day, the Commission announced the initiation of a partial interim review9 
pursuant  to  Article  11(3)  of  the  basic  Regulation  of  the  anti-dumping  measures 
applicable  to  imports  of  TA  originating  in  China  limited  to  the  examination  of 
dumping as far as two Chinese exporting produces are concerned, namely Changmao 
Biochemical  Engineering  Co.,  Ltd,  Changzhou  City,  and  Ninghai  Organic  Chemical 
Factory, Ninghai. 

5. 

Investigation 

5.1. 

Review investigation period and the period considered 

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7 
8 
9 

OJ L XX, XX.XX.XXX, p. X 
OJ C 211, 4.8.2010, p. 11. 
OJ C 24, 26.1.2011, p. 14. 
OJ C 223, 29.7.2011, p. 11. 
OJ C 223, 29.7.2011, p. 16. 

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(10)  The investigation of continuation of dumping covered the period from 1 January 2010 
to 31 December 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’). 

5.2. 

Parties concerned by the investigation 

(11)  The  Commission  officially  advised  the  applicants,  other  known  Union  producers, 
exporting  producers,  importers,  users  in  the  Union  known  to  be  concerned  and  their 
associations,  and  the  representatives  of  the  exporting  country  concerned  of  the 
initiation of the expiry review. 

(12) 

(13) 

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. 

In  view  of  the  apparent  large  number  of  exporting  producers  from  China,  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. 

(14) 

In view of the replies received it was decided to apply sampling in respect of Union 
producers.  No  unrelated  importers  in  the  Union  cooperated  in  the  investigation.  As 
regards  exporting  producers  from  China,  only  two  exporting  producers  manifested 
their  willingness  to  cooperate  in  the  investigation.  It  was  therefore  decided  that 
sampling was not necessary as regards exporting producers. 

(15)  Six Union producers provided the information requested in the notice of initiation and 
agreed  to  be  included  in  the  sample.  On  the  basis  of  the  information  received  from 
these  Union  producers,  the  Commission  selected  a  sample  of  four  Union  producers 
which were found to be representative of the Union industry in terms of sales volumes 
of the like product in the Union. Their combined sales volume represented 61% of the 
sales volume in the Union market. 

(16)  Questionnaire replies were received from the four sampled Union producers, two users 
in  the  Union,  and  two  exporting  producers  in  China.  In  addition,  two  cooperating 
Union producers provided the requested general data for the injury analysis. 

(17)  Exports made by Hangzhou Bioking, whose individual dumping margin in the original 
investigation  was  zero,  have  been  excluded  from  both  dumping  and  injury  analysis, 
including  the  likelihood  of  continuation  of  dumping  and  risk  of  recurrence  of  injury 
resulting from dumped imports. The analysis in the present review was therefore based 
on exports of product concerned from China to the Union during the RIP excluding the 
exports  made  by  the  producer  Hangzhou  Bioking  and  is  also  referred  to  as  'exports 
subject to measures' in this Regulation. 

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

(a) 

Union producers: 

–  Comercial Quimica Sarasa S.L.; 

–  Alcoholera Vinícola Europea S.A.; 

–  Distillerie Mazzari S.p.a.; 

–  Distillerie Bonollo S.p.a.; 

(b) 

Exporting producers in China: 

–  Changmao Biochemical Engineering Co Ltd; 

–  Ninghai Organical Chemical Factory; 

(c) 

Users 

–  Danisco A/S; 

–  Kerry (NL) B.V.; 

(d) 

Producer in the analogue country 

–  Tarcol S.A., Argentina. 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(19)  The  product  concerned  by  this  review  is  the  same  as  the  one  defined  in  Regulation 
(EC)  No  150/2008,  which  amended  the  scope  of  the  measures  established  by  the 
original Regulation as explained above. Namely, the product concerned is tartaric acid, 
excluding D-(-)-tartaric acid with a negative optical rotation of at least 12,0 degrees, 
measured  in  a  water  solution  according  to  the  method  described  in  the  European 
Pharmacopoeia, originating in China, currently falling within CN code ex 2918 12 00 
(TARIC code 2918 12 00 90) (‘the product concerned’) 

(20)  The  review investigation  confirmed  that,  as  in  the  original  investigation,  the  product 
concerned imported into the Union market and the products manufactured and sold by 
the exporting producers on the domestic markets, as well as those manufactured and 
sold  in  the  Union  by  the  Union  Industry  (‘the  like  product’),  have  the  same  basic 
physical  and  chemical  characteristics  and  uses.  Therefore,  these  products  are 
considered  to  be  like  products  within  the  meaning  of  Article  1(4)  of  the  basic 
Regulation. 

C. 

LIKELIHOOD OF CONTINUATION OF DUMPING 

1. 

Preliminary remarks 

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(21) 

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

(22)  As  mentioned  in  recital  (13),  in  view  of  the  potentially  large  number  of  exporting 
producers  involved  in  this  review,  sampling  was  foreseen  in  the  notice  of  initiation. 
From  the  20  known  exporting  producers,  only  the  two  companies,  both  benefiting 
from  market  economy  treatment,  came  forward  and  agreed  to  cooperate.  These  two 
companies cover most of the imports of product concerned from China to the Union 
during the RIP excluding the exports made by the company Hangzhou Bioking, whose 
individual dumping margin in the original investigation was zero. 

2. 

Dumping of imports during the RIP 

2.1. 

Analogue country 

(23)  Since  China  is  an  economy  in  transition  and  in  accordance  with  the  provisions  of 
Article  2(7)(a)  of  the  basic  Regulation,  normal  value  for  exporting  producers  not 
granted  market  economy  treatment  ('MET')  has  to  be  determined  on  the  basis  of  the 
price or constructed value in an appropriate market economy third country ('analogue 
country'). 

(24)  As  in  the  original  investigation,  Argentina  was  proposed  as  analogue  country  in  the 
notice  of  initiation  for  the  purpose  of  establishing  normal  value.  Interested  parties 
were given the opportunity to comment on the appropriateness of this choice. 

(25)  One  industrial  consumer  of  tartaric  acid  highlighted  some  constraints  linked  to  the 
choice  of  Argentina  as  analogue  market  arguing  that  it  should  not  be  the  sole 
benchmark  for  the  purpose  of  determining  normal  value.  The  party  concerned 
addressed in particular alleged differences in the production processes between China 
and  Argentina,  the  limited  amount  of  annual  production  as  compared  to  world 
production  and  currency  exchange  rates  fluctuation.  However,  none  of  these 
arguments were substantiated by any documentary evidence. 

(26) 

In  any  event,  the  different  production  processes  in  Argentina  and  China  and  the 
resulting  impact  on  the  costing  and  the  valuation  of  the  product  concerned  were 
already carefully considered in the original investigation and it was concluded that it 
did  not  alter  the  comparability  of  the  products  that  were  found  to  be  similar.  As  the 
allegation  of  the  industrial  consumer  did  not  bring  any  new  element  and  its  claims 
were  not  substantiated,  the  argument  is  rejected.  The  findings  of  the  current  expiry 
review,  therefore  confirm  the  findings  of  the  original  investigation,  i.e.  that  the 
differences in production processes did not have an impact on the comparability of the 
products. 

(27)  The  limited  size  of  the  annual  production  in  Argentina  as  compared  to  the  world 
market of TA is not a relevant argument when assessing whether a specific market is 
suitable  to  establish  normal  value  in  an  analogue  market.  Indeed,  the  investigation 
confirmed  that  Argentina  is  an  open  and  competitive  market  with  at  least  two 
operators. On these grounds, the argument is rejected. 

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(28)  The  argument  of  significant  currency  exchange  fluctuation  between  regions  was  not 
substantiated.  In  addition,  the  on  spot  investigation  did  not  gather  any  element 
pointing  to  any  distortion  of  currency  rates  between  regions.  On  these  grounds,  the 
argument is also rejected. 

(29)  Therefore,  as  in  the  original  investigation,  it  was  concluded  that  Argentina  was  an 

appropriate analogue country from which normal value will be determined. 

(30)  Two  known  Argentinean  companies  were  contacted  but  only  one  of  them  agreed  to 
cooperate,  to  reply  to  the  questionnaire  and  to  accept  a  verification  visit.  Its  figures 
have been used for the determination of the normal value. 

2.2. 

Normal value 

(31)  For  the  two  companies  granted  MET  in  the  original  investigation,  normal  value  has 
been  established  based  on  their  respective  data.  In  accordance  with  Article  2  of  the 
basic  Regulation,  the  Commission  examined  whether  the  domestic  sales  of  tartaric 
acid  to  independent  customers  were  representative  during  the  RIP,  i.e.  if  the  sales 
volume  of  the  product  intended  for  domestic  consumption  represents  5%  or  more  of 
their exports of the product concerned to the Union. 

(32)  For one company granted MET, normal value had to be constructed since its domestic 
sales  were  not  sufficient  to  be  considered  representative  as  explained  in  recital  (31). 
Therefore,  the  established  normal  value  was  calculated  using  the  company's  cost  of 
manufacturing  and  adding  selling,  general  and  administrative  costs  ('SG&A')  and 
profit achieved on the domestic sale made in the ordinary course of trade. 

(33)  For the other company granted MET, since the domestic sales were representative and 
made in the ordinary course of trade, normal value was established on the prices paid 
by independent customers in the exporting country. 

(34)  As far as the companies not granted MET in the original investigation are concerned, 
pursuant  to  Article  2(7)(a)  of  the  basic  Regulation,  normal  value  was  established  on 
the  basis  of  information  collected  from  the  co-operating  producer  in  the  analogue 
country. 

(35)  Therefore, the domestic sales to independent customers in the analogue country were 
also  assessed  in  accordance  with  the  criterion  defined  in  Article  2  of  the  basic 
Regulation.  The  Commission  could  verify  that  these  sales  were  made  in  sufficient 
quantities  and  in  the  ordinary  course  of  trade  and  could  thus  be  used  to  determine 
normal value for the companies not granted MET. 

2.3. 

Export price 

(36)  All  export  sales  to  the  Union  of  the  co-operating  exporting  producers  were  made 
directly to independent customers established in the Union. In accordance with Article 
2(8) of the basic Regulation, the export price was established on the basis of the prices 
actually paid or payable. 

(37)  For the export price of all other producers established in China, information was taken 

from imports statistics made available in the database 14-6. 

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2.4. 

Comparison 

(38)  The  comparison  between  normal  value  and  export  price  was  made  on  an  ex-works 

basis. 

(39)  For the purpose of ensuring a fair comparison between the normal value and the export 
price of the co-operating exporting producers, and in accordance with Article 2(10) of 
the basic Regulation, due allowance in the form of adjustments was made with regard 
to  certain  differences  in  transport,  insurance,  taxes  and  credit  costs  which  affected 
prices and price comparability. 

(40) 

In order to fairly compare the ex-works normal value from the analogue country and 
the export price as mentioned in recital (37), the CIF export prices were adjusted to ex-
works using data collected during the verification visits. 

2.5. 

Dumping margin 

(41)  As provided for under Article 2(11) of the basic Regulation, the dumping margin was 
established  on  the  basis  of  a  comparison  of  the  weighted  average  normal  value  with 
the weighted average export price. 

(42)  For  the  co-operating  exporting  producers,  granted  MET  in  the  original  investigation 
this  comparison  showed  that  these  companies  continued  dumping  although  at  a 
slightly lower level. 

(43)  The residual duty calculated showed a significant level of dumping even higher than in 

the original investigation. 

3. 

Likelihood of continuation of dumping 

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

continuation of dumping was also investigated. 

(45) 

In  this  respect,  the  following  elements  were  analysed:  the  volume  and  prices  of 
dumped imports from China, the production capacity and the spare capacity in China, 
the attractiveness of the Union market and other third markets. 

3.1. 

Volume and prices of dumped imports from China 

(46)  After imposition of definitive measures in January 2006, dumped imports from China 
continued to increase, raising from 3.034 metric tonnes ('MT') in 2007 to 3.649 MT in 
the RIP id est an increase of around 20%. In parallel, market share of dumped imports 
from China gained 1.0 percentage points in the period considered from 12.6 % in 2007 
to 13.5% in the RIP. 

(47) 

In  the  same  period,  prices  of  dumped  imports  from  China  remained  relatively  stable 
with an increase of 12.6% between 2007 and 2008 followed by a continued reduction 
in 2009 and the RIP, to reach in the latter period the level achieved in 2007. 

3.2. 

Production capacity and spare capacity in China 

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(48)  As far as the total production capacity of TA in China is concerned, different sources 
of  information  publicly  available10  point  to  a  production  capacity  that  is  largely  in 
excess of demand on the Chinese domestic market. 

(49)  Total  production  capacity  in  China  has  been  assessed  at  around  25.000  MT,  taking 
into  account  information  gathered  on  spot  during  the  investigation  and  following 
market  researches11.  The  Chinese  market  is  small  when  compared  to  the  available 
capacity in China with an estimated consumption of 5.000 MT.  

(50) 

In  addition,  there  are  strong  indications  that  capacity  in  China  is  even  higher  than 
25.000 MT. Indeed, total capacity of the two co-operating Chinese exporters went up 
by  more  than  200%  comparing  data  for  the  original  IP  to  the  current  RIP.  The 
corresponding spare capacity was of around 20% of total capacity in the RIP. 

(51)  Furthermore,  information  collected  from  extracts  of  the  reports  mentioned  above  in 
recital (48) and publicly available information show that at least two new producers of 
tartaric acid were set up in 2007. 

(52)  On these grounds, it is clear that capacity in China is disproportionate as compared to 
domestic  consumption,  which  confirms  a  clear  need  for  the  Chinese  producers  to 
increase their position on export markets. 

3.3. 

Attractiveness of the Union market and other third markets 

(53)  From  the  information  gathered  at  the  Chinese  cooperating  companies,  the  level  of 
prices to third countries is in line with the level of prices that they could obtain in the 
Union market. As mentioned above, there is an important production overcapacity on 
the Chinese domestic market suggesting a strong and natural need to find alternative 
markets to absorb this excess in production capacity. 

(54)  The Union market is by far the biggest in the world reaching around 40% of the world 
consumption of tartaric acid and is still growing as mentioned in recital (60). It is also 
clear, based on information collected during the investigation that Chinese companies 
have  shown  a  big  interest  in  developing  their  presence  on  the  biggest  market  in  the 
world and maintaining a significant market share on the Union market. 

4. 

Conclusion of the likelihood of continuation of dumping 

(55) 

In view of the findings described above, it can be concluded that significant volumes 
of imports from China are still being dumped and that there is a strong likelihood of 
continuation  of  dumping.  Given  the  potential  spare  capacity  in  China  including  the 
new producers that appeared on the Chinese market and the fact that the Union market 
is the biggest market in the world with attractive level of prices, it can be concluded 
that the Chinese exporters are likely to further increase their exports to the Union at 
dumped prices should the anti-dumping measures be allowed to lapse.  

10 
11 

Like the "Chemical Economic Handbook 'CEH', or reports from CCM International LTD 
Like the "Chemical Economic Handbook 'CEH', or reports from CCM International LTD 

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D. 

DEFINITION OF THE UNION INDUSTRY 

(56)  During  the  RIP,  the  like  product  was  produced  by  nine  producers  in  the  Union.  Of 
these nine producers, six producers fully cooperated with the investigation, submitted 
sampling forms and requested to be included in the sample. These six producers were 
found to account for a major proportion, in this case more than 73%, of the total Union 
production of the like product. As mentioned in recital (57) below, 9 producers having 
provided the data in the review request, are hereafter referred to as the 'Union industry' 
within the meaning of Article 4(1) and Article 5(4) of the basic Regulation. 

(57)  For  the  purpose  of  the  injury  analysis,  the  injury  indicators  have  been  established  at 

the following two levels: 

– 

– 

the  macroeconomic  elements  (production,  capacity,  capacity  utilisation, 
productivity, sales volume, market share, growth, employment, and magnitude 
of  dumping  margins  and  recovery  from  the  effects  of  past  dumping)  were 
assessed  at  the  level  of  the  whole  Union  production,  on  the  basis  of  the 
information  collected  from  the  producers  that  came  forward  in  the  context  of 
the sampling exercise and on an estimation based on the data from the review 
request for the other three Union producers,  

the  analysis  of  microeconomic  elements  (average  unit  prices  stocks,  wages, 
profitability,  return  on  investments,  cash  flow,  ability  to  raise  capital  and 
investments)  was  carried  out  on  the  basis  of  information  provided  by  the 
sampled Union producers. 

(58) 

It is noted that the Union market for TA is characterised by a relatively small number 
of  producers,  mostly  small  and  medium  enterprises  located  in  Italy  and  Spain.  With 
the exception of one producer established in Spain, which only produces TA, all other 
producers  are  vertically  integrated,  with  the  main  activity  being  producing  alcohol 
from wine lees, a process for which TA is a by-product. 

E. 

SITUATION ON THE UNION MARKET 

1. 

Consumption in the Union market 

(59)  Union  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the  Union 
industry  on  the  Union  market,  the  Chinese  export  database  and  the  imports  volumes 
data  for  the  Union  market  obtained  from  Eurostat  and,  concerning  the  other  Union 
producers, from estimation based on the review request. 

(60)  Union  consumption  of  TA  increased  between  2007  and  the  RIP  by  11  %.  In  details, 
the apparent demand went down from 2007 to 2009 by 15%. However, during the RIP 
the  Union  consumption  reached  29.964  tonnes, representing  a  significant  increase  of 
26 percentage points as compared to the previous year. This increase is explained by 
the high price elasticity of the TA. Indeed, when prices are low, as was the case during 
the  RIP,  TA  can  be  used  in  additional  applications  as  a  substitute  for  other  raw 
material chemical products such as citric acid and malic, hence an increase of the total 
Union consumption. 

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Table 1 

Total EU consumption (tonnes) 

2007 
26 931 
100 

2008 
25 333 
94 

2009 
22 983 
85 

RIP 
29 964 
111 

Index 

Source: Questionnaire replies, Chinese export database, Eurostat 

2. 

Volume, market share and prices of imports from China 

2.1. 

Volume and market share 

(61)  The  volume  of  all  imports  of  the  product  concerned  from  China  into  the  Union 
increased  by  45%  during  the  period  considered.  It  reached  8.495  tonnes  in  the  RIP 
corresponding to a market share of 28.4%. 

(62)  The volume of imports of TA from Chinese exporters being subject to anti-dumping 
measures  into  the  Union  increased  by  20%  and  reached  3.649  tonnes  in  the  RIP 
corresponding  to  a  market  share  of  12,2%,  up  from  11.3%  at  the  beginning  of  the 
period  considered.  The  remaining  imports,  4.846  tonnes,  were  made  by  a  Chinese 
exporter subject to a 0% and which also increased its share in total Chinese exports to 
the Union during the period considered (+9 percentage points). 

Table 2 

Volume of imports subject to measures 
from China (tonnes) 

 Index=100

Market share of imports subject to 
measures from China 

 Index=100 

2007 

2008 

2009 

RIP 

3.035 
100 

3.042 
100 

2.945 
97 

3.649 
120 

11.3% 
100 

12.0% 
106 

12.8% 
113 

12.2% 
107 

2.2. 

Prices and undercutting 

(63)  The  following  table  shows  the  development  of  average  CIF  EU  frontier  prices  of 
imports under measures from China and the relevant average sales prices of the Union 
industry.  

Table 3 

Price of Chinese Imports (EUR/tonne) 
subject to measures 

 Index=100

2007 

2008 

2009 

RIP 

1.834 
100 

2.060 
112 

1.966 
107 

1.819 
99 

Source: Questionnaire replies, article14.6 Data 

(64)  Average unit selling prices of Chinese exports subject to measures at CIF level in the 
RIP reached 1.819 €/MT, corresponding, over the  period considered, to an increase of 
20%. 

(65)  Concerning  the  selling  price  on  the  Union  market  of  the  TA  during  the  RIP,  a 
comparison  was  made  between  the  prices  of  TA  produced  and  sold  by  the  Union 
industry and those of the imports subject to measures from China. The relevant sales 
prices  of  the  Union  industry  were  those  to  independent  customers,  adjusted  where 

EN 

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necessary  to  an  ex-works  level,  i.e.  excluding  freight  costs  in  the  Union  and  after 
deduction of discounts and rebates. These prices were compared with the sales prices 
charged  by  the  afore  mentioned  Chinese  exporting  producers  net  of  discounts  and 
adjusted  where  necessary  to  CIF  EU  frontier  with  an  appropriate  adjustment  for  the 
customs  clearance  costs  and  post  importation  costs.  The  Union  weighted  average 
selling price during the RIP was 2.496 €/MT. 

(66)  The comparison on a type by type basis showed that, during the RIP, imports subject 
to  measures  from  China  of  the  product  concerned  were  sold  in  the  Union  at  prices 
which  significantly  undercut  the  Union  industry’s  prices,  when  expressed  as  a 
percentage of the latter, by 32.6 %.  

3. 

Imports from other third countries 

(67)  The  following  table  shows  the  development  of  imports  from  other  third  countries 
during  the  period  considered  in  terms  of  volume  and  market  share,  as  well  as  the 
average price of these imports. 

Volume of imports from other countries 
(tonne) 

 Index=100
Market share of imports from other third 
countries 

 Index=100

Price of imports (EUR/tonne) 

Source: Eurostat, 14(6) data base 

Table 4 

2007 

2008 

2009 

590 
100 

2.2% 
100 
2.503 

135 
23 

0.5% 
24 
2.874 

156 
26 

0.7% 
31 
2.300 

RIP 

845 
143 

2.8% 
129 
2.413 

(68)  The volume of imports from other third countries of the TA into the EU increased in 
the  period  considered,  by  43%  and  reached  845  tonnes  in  the  RIP.  Prices  of  these 
imports  are  relatively  high  and  significantly  above  the  respective  prices  from  China 
and only slightly below the average level of prices of the Union industry. However, it 
can be considered that exports from other third countries were marginal since during 
the  RIP  they  represented  only  a  market  share  of  2.8%  despite  their  steep  increase  in 
percentage terms at the end of the period considered. 

4. 

Economic situation of the Union industry 

(69)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  all  relevant  economic  factors  and 
indices  having  a  bearing  on  the  state  of  the  Union  industry  during  the  period 
considered have been examined. 

4.1. 

Preliminary remarks 

(70) 

In view of the fact that sampling was used with regard to the Union industry, for the 
purpose of the injury analysis, the injury indicators have been established at two levels 
as mentioned in Recital (57) above. 

4.2. 

Macroeconomic elements 

(a)  Production 

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(71)  The Union production increased by 5% between 2007 and the RIP. More specifically, 
it increased by 19 percentage points between 2009 and RIP to around 30.5 thousands 
MT, following a sharp decrease between 2007 and 2009 of 14%. Increased production 
levels have allowed the Union industry to contain the increase of production costs and 
had a positive impact on the overall Union industry profitability. 

Table 5 

Production in volume (tonne) 

 Index=100

2007 
29.000 
100 

2008 
27.500 
95 

2009 
25.000 
86 

RIP 
30.588 
105 

Source: Questionnaire replies, Review request 

(b)  Production capacity and capacity utilisation 

(72)  The  production  capacity  of  the  Union  producers  decreased  by  2%  throughout  the 

period considered. 

(73)  Capacity  utilisation was 63% in 2007 and dropped to  56% in 2009, to reach 68% in 
the RIP. The lower utilisation rate in 2009 reflected the negative effects of the crisis. 
Total  capacity  utilisation  increased  by  8%  over  the  period  considered,  which 
contributed to a further dilution of fixed costs. 

Table 6 

Production Capacity (tonne) 

Capacity Utilisation 

2007 
46.000 
100 
63% 
100 

2008 
46.000 
100 
60% 
95 

2009 
45.000 
98 
56% 
88 

RIP 
45.000 
98 
68% 
108 

 Index=100

 Index=100

Source: Questionnaire replies, Review request 

(c)  Sales volume 

(74)  The sales volume of the Union producers to unrelated customers on the Union market 
modestly  increased  in  RIP  by  1%.  First  they  decreased  by  11%  between  2007  and 
2008, followed by a further decrease by 9% in 2009, to reach almost the same level at 
the  end  of  the  period  considered  as  the  beginning  of  the  period  considered,  thus 
showing wide variations mainly due to the economic crisis of 2008 and 2009. 

Table 7 

Sales to unrelated parties in the Union 
(tonne) 

 Index=100

2007 

2008 

2009 

RIP 

20.489 
100 

18.165 
89 

16.709 
82 

20.623 
101 

Source: Questionnaire replies, Review request 

(d)  Market share 

(75)  During  the  period  considered,  the  Union  producers  lost  7.3  percentage  points  in 
market share, which decreased from 76.1% in 2007 to 68.8% in the RIP. This loss of 
market  share  reflects  the  fact  that,  despite  an  increase  in  consumption,  the  Union 

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industry's sales were not able to progress at the same pace in the period considered but 
remained somewhat stable. 

Table 8 

Market share of the Union producers 

 Index=100

2007 
76.1% 
100 

2008 
71.7% 
94 

2009 
72.7% 
95 

RIP 
68.8% 
90 

Source: Questionnaire replies, Review request and Eurostat 

(e)  Growth 

(76)  Between  2007  and  the  RIP,  whilst  the  Union  consumption  increased  by  11%,  the 
volume of sales by the Union industry on the Union market remained stable and the 
Union  industry  market  share  decreased  by  10%.  It  is  thus  concluded  that  the  Union 
producers could not benefit from any growth of the market. 

(f)  Employment 

(77)  The employment level of the Union industry shows a decrease of 28% between 2007 
and  the  RIP.  More  specifically,  the  number  of  persons  employed  decreased 
significantly from 320 in 2007 and 2008 to 280 in 2009 and 230 in the RIP. The drop 
in 2009 is a reflection of the restructuring efforts by a number of Union producers. 

Table 9 

Employment (persons) 

2007 
320 
100 

2008 
320 
100 

2009 
280 
88 

RIP 
230 
72 

 Index=100

Source: Questionnaire replies, Review request 

(g)  Productivity 

(78)  Productivity of the Union industry workforce, measured as output (tonnes) per person 
employed  per  year,  increased  by  47%  in  the  period  considered.  This  reflects  that 
production  increased  by  5%,  whilst  employment  levels  decreased  by  28%  and  is  an 
indication  of  the  increased  efficiency  by  the  Union  industry.  This  is  particularly 
obvious in the RIP, when production increased while the employment level continued 
to decrease and productivity was 48 percentage points higher than in 2009. 

Table 10 

Productvity (tonnes per employee) 

 Index=100

2007 
90 
100 

2008 
85 
94 

2009 
89 
99 

RIP 
132 
147 

Source: Questionnaire replies and Review request 

4.3. 

Data relating to the sampled Union producers 

(h)  Factors affecting sales prices 

(79)  The  annual  average  sales  prices  of  the  sampled  producers  on  the  Union  market  to 
unrelated  customers  increased  by  8%  between  2007  and  2009,  however,  they 
decreased by 6%  during the  period considered as in the RIP the annual average sale 

EN 

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price reached 2.496  €/tonne from 2.667 €/tonne in 2007. The availability of calcium 
tartrate,  which  is  produced  out  of  wine  lees  and  represents  66  %  of  total  costs  of 
manufacturing  of  TA,  varies  according  to  the  quality  of  the  grape  wine  harvest. 
Therefore, favourable or poor climatic conditions have an effect on the overall supply 
of calcium tartrate, which in turn has an impact on the annual averages sales prices. It 
should be noted that 2007 and 2008 have not been two favourable years as far as the 
grape wine harvest is concerned, which subsequently led to an increase of the costs of 
raw materials and sales prices after the production period (as it is a seasonal product, 
effects materialise only several months following the harvest period). Conversely, as 
2009 has been a good wine harvesting year hence, the annual average sale prices in the 
RIP was 14% lower compared to the previous year.  

Table 11 

Unit price EU market (EUR/tonne) 

 Index=100

2007 
2.667 
100 

2008 
2.946 
110 

2009 
2.881 
108 

RIP 
2.496 
94 

Source: Questionnaire replies, Review request 

(i)  Magnitude of dumping margin and recovery from past dumping 

(80)  Given the level of dumping found in this investigation, no full recovery from the past 
dumping could be established and it was considered that the Union industry remains 
vulnerable  to  the  injurious  effect  of  any  dumped  imports  in  the  Union  market.  It  is 
recalled  that  in  the  original  investigation  dumping  margins  of  4.7%  and  10.1%  were 
found for the respective two cooperating Chinese producers being granted MET. The 
dumping  margin  for  all  other  companies  is  34.9%.  Furthermore,  as  mentioned  in 
Recital  (7)  above,  an  anti-dumping  proceeding  limited  to  one  Chinese  exporting 
producer,  Hangzhou  Bioking,  which  is  not  subject  to  measures  was  initiated  and  it 
cannot be excluded that this exporting producer could be found to practice dumping. 
In  addition,  as  stated  in  recitals  (48)  to  (54)  above,  a  likelihood  of  continuation  of 
dumping  was  established  mainly  based  on  available  excess  production  capacity  in 
China and the rather small size of the Chinese domestic market. As regards recovery 
from  past  dumped  imports  from  China,  it  is  important  to  recall  that  after  the 
imposition  of  definitive  measures  in  January  2006,  imports  from  China  subject  to 
measures  continue  to  increase  as  mentioned  in  Recital  (46)  above.  Thus,  no  actual 
recovery  from  the  past  dumping  could  be  established  and  it  is  considered  that  the 
Union industry remains vulnerable to the injurious effects of any dumped imports in 
the Union market. 

(j) 

Stocks 

(81)  Volume of stock remained stable during the period considered with a modest increase 
of 2%. More specifically, it sharply increased by 65% in 2008 as a direct consequence 
of the evolution of sales as mentioned in recital (74) above. Between 2008 and the RIP 
volume  of  stock  decreased  as  sales  to  unrelated  parties  increased  during  the  same 
period. 

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Table 12 

Closing stock (tonne) 

2007 
863 
100 

2008 
1.428 
165 

2009 
933 
108 

RIP 
879 
102 

 Index=100

Source: Questionnaire replies 

(k)  Wages 

(82)  The  average  labour  cost  increased  by  19%  during  the  period  considered  despite  the 
labour  cost  reducing  efforts  of  the  sampled  producers  in  particular  with  regard  to 
unskilled workers, as reflected in the reduction of the overall workforce mentioned in 
Recital (77) above. 

Table 12 

Average Wage (€) 

2007 
28.686 
100 

2008 
31.871 
111 

2009 
31.574 
110 

RIP 
34.245 
119 

 Index=100

Source: Questionnaire replies 

(l) 

Profitability and return on investments 

(83)  During the period considered, the profitability of the sampled producers' sales of the 
like product on the Union market to unrelated customers, expressed as a percentage of 
net sales, increased by more than 6 percentage points. More specifically, the situation 
with regard to profitability of the sampled producers dropped by 3.7 percentage points 
between  2007  and  2008  to  a  level  of  7.7%,  which  was  considered  to  be  below  the 
target profit and increased in 2009 and the RIP to reach 17.6%. 

(84)  The  return  on  investments  (ROI),  expressed  as  the  profit  in  percent  of  the  net  book 
value of investments, broadly followed the profitability trend. It decreased from a level 
of  36.4  %  in  2007  to  21.9  %  in  2008.  It  increased  to  44.4  %  in  2009  and  increased 
again in the RIP to 142.9 %. Overall, the return on investments remained very positive 
over the period considered. 

Table 13 

Profitability of EU (% of net sales) 

ROI (profit in % of net book value of 
investments) 

 Index=100

 Index=100

Source: Questionnaire replies 

2007 
11.4% 
100 

36.4% 
100 

2008 
7.7% 
67 

21.9% 
60 

2009 
12.5% 
109 

44.4% 
122 

RIP 
17.6% 
153 

142.9% 
393 

(m)  Cash flow and and ability to raise capital 

(85)  The  net  cash  flow  from  operating  activities  was  positive  at  €  4,6  million  in  2007.  It 
dropped to € 1,8 million in 2008 and improved significantly until the end of the period 
considered  to  reach  a  level  of  €  6,8  million  in   the  RIP.  Overall,  cash  flow  has  been 
constantly positive in the period considered. 

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(86)  There  were  no  indications  that  the  Union  industry  encountered  difficulties  in  raising 
capital,  mainly  due  to  the  fact  that,  as  mentioned  in  Recital  (58)  above,  most  of  the 
sampled producers are integrated companies. 

Table 14 

Cash Flow (EUR) 

2007 
4.691.458
100 

2008 
1.841.705
39 

2009 

RIP 

4.706.092  6.802.164 

100 

145 

 Index=100

Source: Questionnaire replies 

(n) 

Investments 

(87)  The  sampled  producers'  annual  investments  in  the  production  of  the  like  product 
decreased  by  23%  between  2007  and  the  RIP.  More  specifically, it  increased  by  5% 
between 2007 and 2008 and then it further increased by 32 percentage points in 2009. 
The sharp drop in investments observed between  2009  and  the  RIP  (-  60  percentage 
points) can be partially explained by the fact that investigated companies had already 
during the period considered achieved their necessary scheduled main investments. 

Table 15 

Net investments (EUR) 

2007 
2.518.189
100 

2008 
2.632.013
105 

2009 

RIP 

3.461.990  1.943.290 

137 

77 

 Index=100

Source: Questionnaire replies 

5. 

Conclusion on the situation of the Union industry 

(88)  The  analysis  of  the  macroeconomic  data  shows  that  the  Union  industry  increased  its 
production  and  sales  during  the  period  considered.  However,  the  observed  increase 
which was not significant as such, should be seen in the context of increased demand 
between  2007  and  the  RIP,  which  resulted  in  the  Union  producers’  market  share 
dropping by 7,3 percentage points to 68.8 %. 

(89)  At  the  same  time  the  relevant  microeconomic  indicators  show  an  improvement 
regarding the economic situation of the Union industry. The profitability and return on 
investment remained positive and the cash flow also remained positive in the RIP. 

(90) 

In the light of the foregoing, it is concluded that the Union industry has not suffered 
material injury within the meaning of Article 3(5) of the basic Regulation. However, 
the overall absence of material injury during the RIP should be considered in the light 
of  other  important  injury  indicators,  which  developed  negatively  during  the  period 
considered, in particular sales prices, loss of market share and employment. Therefore, 
the  situation  of  the  Union  industry  is  considered  to  be  still  vulnerable  and  in  some 
aspects,  far  from  the  levels  that  could  be  expected  had  it  recovered  fully  from  the 
injury found in the original investigation. 

F. LIKELIHOOD OF RECURRENCE OF INJURY 

1. 

Impact  of  the  projected  volume  of  imports  and  price  effects  in  case  of  repeal  of 
measures 

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(91)  As  concluded  in  recitals  (48)  to  (52)  above,  the  exporting  producers  in  China  have 
considerable spare capacities and a clear potential to increase their export volumes to 
the Union market significantly including re-directing exports from other markets. 

(92)  The CIF export prices to the Union of TA practiced by the Chinese exporters currently 
subject to measures were significantly lower than the prices of the Union industry in 
the RIP and on a type by type basis undercut it by 32.6%. 

(93)  An  analysis  of  Chinese  exports12 of TA to the rest of the world after the RIP shows 
that  their  volume  was  decreasing  significantly,  from  10.862  MT  in  the  RIP  to  8.118 
MT at the end of July 2011 (-25%). This decrease in Chinese exports volume of 2.744 
tonnes to other makets could create an additional flow of Chinese exports towards the 
Union market. 

(94)  Considering  existing  spare  capacities  for  TA  in  China,  combined  with  the 
attractiveness  of  the  Union  market  as  mentioned above,  exporters  in China would in 
all  likelihood  try  to  increase  their  market  shares  in  the  Union  thereby  materially 
injurying the Union industry. Consequently, in the absence of anti-dumping duties on 
imports of TA originating in China, any increased volumes of dumped imports from 
China would exercise an even stronger price pressure on the Union industry and cause 
material injury. 

(95)  As mentioned in Recital (79) climatic / harvest related conditions partly play a role in 
the  overall  financial  situation  of  the  Union  industry.  It  is  recalled  that  the  TA,  used 
also by wine producers, can be obtained either from the by-products of wine making 
or, as is the case of Chinese exporters, via chemical synthesis, from petrochemical or 
coal related compounds such as benzene.  

(96)  Consequently,  it  should  be  further  noted  that  there  are  no  significant  constraints  in 
production volumes for Chinese production given their synthetic production methods, 
unlike the Union industry producers using natural raw materials - wine lees. 

(97)  Given  that  the  profitability  of  the  Union  industry  is  in  part  dependent  on  climatic 
conditions,  it  appears  that  the  good  profitability  achieved  in  the  RIP  cannot  be 
considered  as  lasting.  Indeed,  even  during  the  period  considered,  the  Union  industry 
was  not  always  able  to  achieve  its  target  profit  of  8%.  Moreover,  in  the  six  month 
period  following  the  end  of  the  RIP,  the  Union  industry's  profitability  already  fell 
significantly  to  around  3%  with  the  industry  again  finding  itself  in  a  vulnerable 
position. 

2. 

Conclusion on the likelihood of recurrence of injury 

(98)  On  this  basis,  it  is  concluded  that  the  repeal  of  the  measures  would  in  all  likelihood 
result in an increase of dumped exports originating in China resulting in a downwards 
pressure  on  Union  industry  prices  and  a  worsening  of  the  economic  situation  of  the 
Union  industry.  It  is  therefore  concluded  that  the  repeal  of  measures  against  China 
would in all likelihood result in the recurrence of injury to the Union industry. 

12 

Source: Chinese exports database 

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1. 

Introduction 

G. UNION INTEREST 

(99) 

In  compliance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether 
maintenance  of  the  existing  anti-dumping  measures  against  China  would  be  against 
the  interest  of  the  Union  as  a  whole.  The  determination  of  the  Union  interest  was 
based  on  an  appreciation  of  all  the  various  interests  involved.  All  interested  parties 
were given the opportunity to make their views known pursuant to Article 21(2) of the 
basic Regulation.  

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

(101)  On  this  basis,  it  was  examined  whether, despite  the conclusions  on the likelihood of 
recurrence of injurious dumping, compelling reasons existed which would lead to the 
conclusion  that  it  is  not  in  the  Union  interest  to  maintain  measures  against  imports 
originating in China. 

2. 

Interest of the Union industry and other Union producers 

(102)  The Union industry has proven to be in general a viable industry. This was confirmed 
by  the  positive  development  of  its  economic  situation  observed  during  the  period 
considered  partly  due  to  its  restructuring  efforts  and  the  measures  in  place.  In 
particular,  the  Union  industry  improved  its  cost  structure  and  profit  situation  and 
production volume along the period considered. 

(103)  It can reasonably be expected that the Union industry will continue to benefit from the 
measures to be maintained. Should the measures against imports originating in China 
not be maintained, it is likely that the Union industry will again suffer material injury 
from  substantial  volumes  of  dumped  imports  from  China,  causing  a  serious 
deterioration  of  its  financial  situation.  Indeed,  there  is  a  clear  likelihood  of  injurious 
dumping  in  substantial  volumes  which  the  Union  industry  could  not  withstand.  The 
Union  industry  would  therefore  continue  to  benefit  from  the  maintenance  of  the 
current anti-dumping measures. 

(104)  Accordingly,  it  is  concluded  that  the  maintenance  of  anti-dumping  measures  against 

China would clearly be in the interest of the Union industry. 

3. 

Interest of importers 

(105)  It  is  recalled  that  in  the  previous  investigations  it  was  found  that  the  impact  of  the 
imposition of measures would not be significant. No traders / importers cooperated in 
the current investigation. Bearing in mind that there is no evidence suggesting that the 
measures in force considerably affected importers, it is concluded that the continuation 
of measures will not affect the Union importers to any significant extent. 

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4. 

Interest of users 

(106)  TA is mainly used in the wine and food industry as a food and beverage additive, and 

in the construction industry as a retardant in the production of gypsum. 

(107)  All known users have been contacted in this investigation. 

(108)  There was no cooperation from users from the construction industry. As established in 
the  original  investigation,  TA  represents  less  than  2%  of  the  costs  of  the  gypsum 
products  where  it  is  used.  Therefore  it  was  concluded  that  the  continuation  of  the 
measures would have a negligible influence on the costs and the competitive position 
of the construction industry. 

(109)  Two major importers / users from the food sector cooperated fully in the proceeding. It 
could be determined that both companies were profitable, including their product lines 
using  the  product  concerned  as  one  of  the  raw  materials.  Besides  sales  of  products 
manufactured  using  the  product  concerned  represented  only  a  minor  percentage  of 
their  total  turnover.  Thus  it  can  be  concluded  that  the  continuation  of  the  measures 
would not  unduly  affect  the users of  the food industry. Moreover for these users the 
existence of diverse supply sources for the product concerned was quite important. 

5. 

Conclusion on Union interest 

(110)  Taking into account all of the factors outlined above, it is concluded that there are no 

compelling reasons against the maintenance of the current anti-dumping measures. 

H. ANTI-DUMPING MEASURES 

(111)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which  it  is  intended  to  recommend  that  the  existing  measures  be  maintained  on 
imports  of  the  product  concerned  originating  in  China.  They  were  also  granted  a 
period to make representations subsequent to this disclosure. 

(112)  A user from the construction sector claimed that the extension of the measures in force 
would cause a shortage of the product concerned, might increase their production costs 
and  thus  result  in  increased  prices  of  their  finished  products.  No  evidence  was 
submitted  to  support  these  claims.  Therefore,  due  to  the  lack  of  justification  of  the 
claims along with the lack of cooperation from users from the construction sector, it 
was not possible to verify these claims. 

(113)  The  two  users  from  the  food  sector  that cooperated  in  the  investigation  claimed  that 
the  impact  of  the  continuation  of  the  measures  on  the  food  industry  had  not  been 
sufficiently considered, and one of them requested a hearing with the Hearing Officer. 

(114)  During the hearing, this user did not disagree with the conclusion that the continuation 
of the measures would overall not negatively affect the profitability of the company as 
a whole but claimed that the impact on the profitability of the specific production line 
using  the  product  concerned,  which  represents  only  a  minor  percentage  of  the  total 
turnover,  would  be  in  their  view  significant.  It  also  claimed  that  domestic  prices  for 
tartaric acid had considerably increased after the review investigation period and that 
these  price  levels  would  again  significantly  reduce  their  product  profitability. 
Nevertheless this user did not deny that the price increase was a result of a lack of raw 

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material supply on the Union market whose level fluctuates regularly depending on the 
wine  harvest  and  cannot  therefore  be  considered  as  lasting  nor  being  caused  by  the 
anti-dumping measures in force.  

(115)  The  other  cooperating  user,  during  a  hearing  with  the  investigation  team,  argued 
against  the  extension  of  the  measures  with  arguments  of  similar  nature.  Therefore, 
these arguments were similarly rejected (see the previous recital) 

(116)  A cooperating Chinese exporting producer argued that the Union industry could not be 
considered  as  still  being  vulnerable,  that  the  essential  cause  influencing  the  Union 
industry  situation  was  closely  associated  with  climatic  conditions  and  that,  in 
consequence, it was against the continuation of the measures. These claims were not 
supported by evidence and hence could not be accepted. Furthermore, they were not of 
a nature as to change the findings as to the situation of the Union industry.  

(117)  Finally  the  Union  industry,  in  consideration  of  its  profitability  figures  during  the 
period considered, justified that the closure in mid 2008 of the sole French producer 
had,  in  the  short  run,  diminished  the  quantity  of  product  concerned  available  in  the 
domestic market, thus temporarily increasing sales prices and, accordingly, increasing 
their  profitability.  The  Union  industry  argued  that  given  these  circumstances,  these 
changes  could  not  in  any  case  be  considered  as  been  of  a  lasting  nature.  Thus,  the 
findings as regard the situation of the Union industry remain unchanged. 

(118)  In summary, after having considered all the comments submitted following disclosure 
to interested parties of the conclusions of the investigation, it was considered that none 
of  them  was  of  such  a  nature  as  to  change  the  conclusions  reached  during  the 
investigation. 

(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  tartaric  acid 
originating in China should be maintained for an additional period of five years. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  tartaric  acid, 
excluding D-(-)-tartaric acid with a negative optical rotation of at least 12,0 degrees, 
measured  in  a  water  solution  according  to  the  method  described  in  the  European 
Pharmacopoeia, currently falling within CN code ex 2918 12 00 (TARIC code 2918 
12 00 90) and originating in the People's Republic of China. 

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

Company  

Anti-Dumping 
Duty 

TARIC Additional 
Code 

Changmao Biochemical Engineering Co., Ltd, 
Changzou City, People’s Republic of China. 

Ninghai Organic Chemical Factory, Ninghai, 
People’s Republic of China. 

All other companies (except Hangzhou 
Bioking Biochemical Engineering Co. Ltd, 
Hangzhou City, People’s Republic of China – 
TARIC additional code A687). 

10.1% 

4.7% 

A688 

A689 

34.9% 

A999 

3. 

4. 

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 

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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

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Annex 

The  valid  commercial  invoice  referred  to  in  Article  1(3)  of  this  Regulation  must  include  a 
declaration signed by an official of the entity, in the following format: 

(1) 

(2) 

The name and function of the official of the entity which has issued the commercial 
invoice. 

The  following  declaration:  “I,  the  undersigned,  certify  that  the  “volume”  of  tartaric 
acid sold for export to the European Union covered by this invoice was manufactured 
by  (entity  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 

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