Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of lever arch mechanisms originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
Date: 2012-08-09
Institutions: European Commission
Subjects: China, anti-dumping measure, import (EU), office supplies

EUROPEAN COMMISSION 

Brussels, 9.8.2012  
COM(2012) 453 final 

2012/0218 (NLE) 

Proposal for a 

COUNCIL REGULATION 

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

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT 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  concerning  imports  of 
lever arch mechanisms originating in the People's Republic of China. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

• 

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 contain provisions for a general impact assessment but 
contains an exhaustive list of conditions that have to be assessed.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

• 

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: 

Other means would not be adequate because the basic Regulation does not provide 
for alternative options.  

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4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

5. 

OPTIONAL ELEMENTS  

An  expiry  review  investigation  on  imports  of  lever  arch  mechanisms  originating  in  the 
People's Republic of China was initiated on 23 July 2011. 

The investigation revealed a strong liklihood of recurrence of dumping and injury and there 
was  no  evidence  that  the  extension  of  the  measures  would  be  against  Union  interest. 
Therefore, it is proposed to continue the measures. 

On  22  June  2012,  the  Commission  disclosed  its  findings  in  relation  to  the  present 
investigation and allowed interested patries to comment thereon. No comments were received 
that were of a nature to alter the findings mentioned therein. Of particular note was that no 
cooperation was forthcoming from exporting producers in the PRC. 

It  is  therefore  proposed  that  the  Commission  adopts  the  attached  proposal  for  a  Council 
Regulation  with  a  view  to  its  transmission  to  the  Council  and  its  publication  in  the  Official 
Journal of the European Union on 11 September 2012 at the latest. 

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2012/0218 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of lever arch mechanisms 
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 Community ('the basic 
Regulation')1, and in particular Articles 9(4), 11(2), 11(5) and 11(6) thereof, 

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

Whereas: 

A. PROCEDURE 

1. 

(1) 

2. 

(2) 

(3) 

3. 

(4) 

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Measures in force 
By Regulation (EC) No 1136/20062 ('the original Regulation') the Council imposed a 
definitive  anti-dumping  duty  of  27.1%  and  47.4%  on  imports  of  lever  arch 
mechanisms ('LAM') originating in the People's Republic of China ('PRC'). 

Request for an expiry review 
Following  the  publication  of  a  notice  of  impending  expiry3  of  the  definitive  anti-
dumping measures in force, the Commission received on 26 April 2011 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  LAMMA  (Lever  arch  mechanism 
manufacturers  association)  on  behalf  of  three  Union  producers  ('the  applicant') 
representing a major proportion, in this case more than 50%, of the Union production 
of lever arch mechanisms.  

The request provided sufficient evidence that the expiry of the measures imposed on 
imports of LAM originating in the PRC would be likely to result in a continuation or 
recurrence of dumping and injury to the Union industry. 

Initiation of an expiry review 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed for the initiation of an expiry review, the Commission announced on 23 July 
2011, by a notice published in the Official Journal of the European Union4 ('the notice 

OJ L 343, 22.12.2009, p. 51. 
OJ L 205, 27.7.2006, p. 1. 
OJ C 5, 8.1.2011, p. 11. 
OJ C 217, 23.7.2011, p. 35. 

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of initiation'), the initiation of an expiry review pursuant to Article 11(2) of the basic 
Regulation. 

4. 

Investigation 

(5) 

(6) 

(7) 

(8) 

(9) 

4.1.  Review investigation period and the period considered 

The investigation concerning the likelihood of continuation or recurrence of dumping 
covered the period from 1 July 2010 to 30 June 2011 ('the review investigation period' 
or 'RIP'). The examination of the trends relevant for the assessment of a likelihood of a 
continuation or recurrence of injury covered the period from 1 January 2008 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 in the country concerned, unrelated importers, users in the Union 
known to be concerned, as well as the representatives of the country concerned of the 
initiation of the expiry review. 

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

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

In  respect  of  exporting  producers  in  the  PRC  and  unrelated  importers,  in  order  to 
enable the Commission to decide whether sampling would be necessary and, if so, to 
select a representative sample, those parties were requested to make themselves known 
within 15 days of the initiation of the review and to provide the Commission with the 
information requested in the notice of initiation. Given that no exporting producer in 
the  PRC  made  itself  known  and  provided  the  Commission  with  the  information 
requested  in  the  notice  of  initiation  and  that  only  one  unrelated  importer  made  itself 
known  but  did  not  provide  the  Commission  with  the  information  requested  in  the 
notice of initiation , sampling was not considered necessary in either case. 

(10)  The Commission announced in the notice of initiation that it had provisionally selected 
a sample of Union producers. This sample consisted of two companies, out of the six 
Union producers that were known prior to the initiation of the investigation, selected 
on the basis of their sales and production volume of the product concerned in 2010 as 
well  as  geographic  location  in  the  Union.  The  sample  represented  over  50%  of  the 
total  estimated  Union  production  and  sales  during  the  RIP.  Interested  parties  were 
invited to consult the file and to comment on the appropriateness of this choice within 
15  days  of  the  date  of  publication  of  the  notice  of  initiation.  No  interested  party 
opposed to the proposed sample.  

(11)  The  Commission  sent  questionnaires  to  the  two  sampled  Union  producers,  the 

importer that made itself known and all users known to be concerned. 

(12)  Replies  to  the  questionnaires  were  received  from  the  two  sampled  Union  producers 
and two users. The unrelated importer mentioned in recital (9) above that made itself 
known neither replied to the sampling questions nor filled in a questionnaire reply. 

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

(a)  Union producers  

Industria Meccanica Lombarda S.r.l., Offanengo, Italy 

NIKO Metallurgical company, d.d. Zelezniki, Slovenia 

– 

– 

(b)  user  

– 

HIT OFFICE s.r.o. Teplice, Czech Republic 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

(14)  The product concerned by this review is the same as the one in the original Regulation, 
namely  lever  arch  mechanisms  generally  used  for  archiving  sheets  and  other 
documents in binders or files currently falling within CN code ex 8305 10 00 (TARIC 
code 8305 10 00 50) ('the product concerned') and originating in the People's Republic 
of  China.  These  lever  arch  mechanisms  consist  of  arched  sturdy  metal  elements 
(normally  two)  on  a  back  plate  and  having  at  least  one  opening  trigger  that  permits 
inserting and filing of sheets and other documents. Ring binder mechanisms classified 
within the same CN code are not included in the scope of the product concerned for 
the purpose of this investigation.  

(15)  The  present  review  investigation  confirmed  that,  as  in  the  original  investigation,  the 
product  concerned  and  that  produced  in  the  Union  by  the  Union  producers  have  the 
same  basic  technical  and  physical  characteristics  and  the  same  uses.  They  were 
therefore  considered  to  be  like  products  according  to  Article  1(4)  of  the  basic 
Regulation. 

C. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING 

(16) 

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. 

Preliminary remarks 

(17)  As  mentioned  above,  in  recital  (9),  none  of  the  known  Chinese  exporting  producers 
contacted  at  initiation  cooperated  in  the  investigation.  The  Chinese  authorities  were 
notified of this fact, the possible application of Article 18(1) of the basic Regulation 
and were given an opportunity to present their comments. No comments were received 
in this regard. 

(18)  Therefore, and in accordance with Article 18(1) of the basic Regulation, the findings 
in  relation  to  the  likelihood  of  continuation  or  recurrence  of  dumping  set  out  below 
had to be based on facts available, in particular publicly available information such as 
official company websites and product web search engines, information in the request 
for  review  and  information  obtained  from  cooperating  parties  in  the  course  of  the 
review investigation (namely the applicants and the sampled Union producers). 

2. 

Dumping of imports during the RIP 

(19)  For the purpose of establishing normal value, the notice of initiation made reference to 

the use of an analogue country.  

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(20)  As  concerns  the  export  price,  due  to  the  lack  of  cooperation  from  both  exporting 
producers  in  the  PRC  and  unrelated  importers  in  the  Union  market  the  Commission 
was unable to establish any export sales quantities or prices on a transactional basis. In 
this  respect,  the  Commission  considered  alternative  means  to  determine  the  export 
price. 

(21)  Firstly,  it  was  considered  whether  Eurostat,  cross-checked  with  other  available  data, 
could  be  used  as  an  alternative  means  to  establish  export  prices.  These  were 
considered unsuitable insofar as one of the sources also covered other imports than the 
product concerned and the other sources did not allow for the possibility to compare 
export prices with those of the Union industry on a type per type basis. 

(22)  Secondly,  the  Commission  also  considered  having  recourse  to  the  export  prices 
contained in the request for review. It is recalled that this methodology was used in the 
original  investigation  and  that  it  permits  a  comparison  on  a  type  per  type  basis. 
However,  the  invoices  contained  in  the  request  for  review  were  for  export  prices  to 
other third countries. 

(23)  Accordingly, no  dumping calculation could be made on the basis of export prices to 
the  Union  and  it  was  not  possible  to  establish  an  affirmative  determination  of 
dumping.  The  investigation  therefore  focused  on  the  likelihood  of  a  recurrence  of 
dumping. 

3. 

Likelihood of recurrence of dumping 

(24)  As regards the investigation of the likelihood of recurrence of dumping, the following 
elements  were  analysed:  the  relationship  between  normal  value  and  export  prices  to 
third countries; production capacity, production and spare capacity in the PRC; and the 
attractiveness of the Union market in relation to imports from the PRC. 

3.1 Relationship between the normal value and export prices to third countries 

(25) 

In view of the lack of cooperation from exporting producers in the PRC, normal value 
was  compared  to  export  prices  from  the  PRC  in  accordance  with  Article  2(7)  of  the 
basic Regulation. 

3.1.1  Basis for determining normal value 

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

(27)  The request for review by the Union industry cited a number of producers in market 
economy  countries  other  than  the  Union  (namely  in  India,  Iran  and  Thailand).  Upon 
initiation,  these  producers  were  duly  contacted  by  the  Commission  as  well  as  other 
potential producers in such countries that could be identified from publicly available 
sources. 

(28)  The  notice  of  initiation  specified  that  if  no  cooperation  was  forthcoming  from 
producers  in  market  economy  countries  other  than  the  Union,  the  Commission 
envisaged  using  the  prices  actually  paid  or  payable  in  the  Union  as  the  basis  for 
determining the normal value. Indeed, the prices actually paid or payable in the Union 
was the basis used to determine normal value in the original investigation. 

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(29)  No  interested  party  commented  on  the  appropriateness  of  the  above-mentioned  basis 

for determining normal value. 

(30)  No  producer  in  market  economy  countries  other  than  the  Union  contacted  by  the 

Commission decided to cooperate in the present review. 

(31) 

In the above context, the Commission was left with no other alternative than to rely on 
the prices actually paid or payable in the Union as the basis to determine normal value. 

3.1.2  Normal value 

(32)  Pursuant to Article 2(7)(a) of the basic Regulation and as explained at recitals (26) to 
(31) above, normal value was established using the price actually paid or payable in 
the Union for the like product which were found to be in the ordinary course of trade. 

(33)  As a result, normal value was established as the weighted average domestic sales price 

to unrelated customers of the sampled Union producers.  

(34) 

It was first established whether the domestic sales of the like product to independent 
customers  of  the  sampled  Union  producers  were  representative  in  accordance  with 
Article  2(2)  of  the  basic  Regulation,  i.e.  whether  the  total  volume  of  such  sales 
represented at least 5% of the total sales volume of the product concerned exported to 
the  Union.  Given  the  lack  of  cooperation  from  exporting  producers  in  the  PRC, 
information  in  relation  to  the  total  sales  volume  exported  to  the  Union  had  to  be 
determined according to facts available. As mentioned at recital (21) above, Eurostat 
and  other  statistics  were  considered  unsuitable  for  the  purposes  of  establishing  a 
continuance  of  dumping,  however,  they  can  be  used  to  indicate  a  level  of  imports 
(needed for the overall volume exported from the PRC) to the Union.  On that basis, 
the  domestic  sales  of  the  sampled  Union  producers  were  considered  to  be  overall 
sufficiently  representative  during  the  RIP.  In  view  of  the  lack  of  cooperation  from 
exporters in the PRC, it was not possible to analyse representativity on a type per type 
basis. 

(35)  The Commission subsequently examined whether the domestic sales of each sampled 
Union  producer  could  be  considered  as  having  been  made  in  the  ordinary  course  of 
trade,i.e. whether for each sampled Union producer the average sales prices were equal 
or above the average costs of production and therefore profitable. 

(36)  On  this  basis  it  was  established  that  sales  of  the  Union  producers  were  on  average 
profitable and normal value was consequently determined on the basis of the weighted 
average sales prices of the sampled Union producers 

3.1.3  Export price 

(37) 

In  the  absence  of  cooperation  from  exporting  producers,  the  most  appropriate  basis 
was found to be the information on the export prices from the PRC to third countries 
contained in the request for review. 

3.1.4  Comparison 

(38)  The comparison between the weighted average normal value and the weighted average 
export price was made on an ex-works basis. This comparison showed that the export 
price  to  third  countries  in  the  request  for  review  was  significantly  lower  than  the 
normal  value  (over  30%).  This  indicates  that  prices  to  the  Union  will  be  very  likely 
dumped should measures be repealed. 

3.2 Production capacity of the exporting producers 

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(39)  Since  no  cooperation  from  exporting  producers  was  forthcoming,  the  following 
conclusions rely mainly on the information contained in the request for review, cross-
checked where possible against publicly available information. 

(40)  On this basis, it was found that the PRC production capacity of LAM is estimated to 
be  at  least  within  a  range  of  between  600  million  and  700  million  pieces,  which  is 
based on information provided by the Union industry. 

(41) 

In  addition,  information  obtained  during  the  investigation  shows  that  the  production 
capacity  in  the  PRC  for  LAM  can  be  easily  increased,  inter  alia,  through  the 
employment of additional workforce and by limited investment in tooling, in case of 
increased demand. 

(42)  No  interested  party  has  come  forward  with  other  comments  and/or  information  in 

relation to production capacity in the PRC.  

(43)  On this basis, production capacity in the PRC is around 170%-350% higher than the 

Union consumption and significantly more than the Union production.  

3.3  Production and spare capacity of exporting producers in the PRC 

(44)  Since  no  cooperation  from  exporting  producers  was  forthcoming,  information  in 
relation  to  actual  production  and  spare  capacity  relied  mainly  on  the  information 
contained  in  the  request  for  review,  cross-checked  where  possible  against  publicly 
available information. 

(45) 

In  the  request  for  review,  production  of  LAM  was  estimated  at  between  200-400 
million  pieces  and  the  spare  capacity  of  between  200-500  million  pieces.  This  spare 
capacity corresponds roughly to the equivalent of Union consumption. 

(46)  The  submitted  estimates  were  found  to  be  reasonable  after  being  cross-checked  by 

reference to publicly available sources where possible.  

(47) 

In  relation  to  spare  capacity,  as  mentioned  in  recital  (41)  above,  the  information 
obtained  during  the  investigation  shows  that  the  production  capacity  in  the  PRC  for 
LAM  can  be  easily  increased,  inter  alia,  through  the  employment  of  additional 
workforce and by limited investment in tooling, in case of increased demand. 

(48)  Based  on  the  above,  it  can  reasonably  be  concluded  that  substantial  spare  capacity 
exists  in  the  PRC.  As  explained  at  recitals  (49)  to  (55)  below,  there  is  a  strong 
likelihood that such spare capacity would be directed towards the Union market should 
measures be repealed.  

3.4  Attractiveness of the Union market 

(49) 

Information  gathered during the  present review  reveals  that  the  Union  market  would 
be  an  attractive  market  for  imports  of  LAM  from  the  PRC,  should  measures  be 
repealed.  It  is  recalled  that  prior  to  the  imposition  of  the  measures  in  force, 
consumption in the Union was substantial and close to 400 million pieces. At the same 
time, imports from the PRC were over 200 million pieces accounting for over 50% of 
the entire Union consumption. 

(50)  The investigation has demonstrated that Union demand for LAM remained substantial. 
The  Union  consumption  has  only  modestly  declined  over  the  period  considered  as 
determined at recitals (63) to (64) and (98) below and the Union market remains the 
largest worldwide for LAM, representing over 50% of the world market.  

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(51)  Furthermore,  there  are  few  other  markets  for  LAM,  which  are  not  likely  to 

accommodate the excess PRC capacity 

(52)  Moreover, as established at recital (38) above, a comparison between the export prices 
of imports from the PRC to third countries with prices in the Union market shows that 
the  Union  market  would  be  attractive  for  such  low-priced  imports,  if  measures  were 
repealed. This is also due to the fact that the prevailing prices are generally higher in 
the Union market than in other export markets. 

(53)  Given the above considerations, if measures were to be repealed, the likelihood would 
be that the exports from the PRC would be directed towards the Union market. 

(54)  Publicly  available  information  in  respect  of  producers  in  the  PRC  reveals  that  such 
companies often primarily or exclusively direct their sales to the export market. 

(55)  Finally,  it  should  be  observed  that  since  the  imposition  of  definitive  measures  a 
number  of  cases  of  misclassification  of  LAM  imports  have  been  observed  whereby 
large volumes of separate LAM and covers were declared as complete lever arch files. 
This resulted in no duties being paid for such imports. This misclassification prompted 
the Customs Code Committee (in November 2010) to clarify in a statement that LAM 
imported  under  such  circumstances  must  be  separately  declared.  It  is  too  early  to 
determine whether such a statement has had the required effect and the Commission 
intends  to  monitor  the  situation  closely.  However,  the  practice  constitutes  further 
evidence  that,  in  spite  of  measures,  the  Union  market  continues  to  be  attractive  for 
exporting producers in the PRC.  

3.5.  Conclusion on the likelihood of a recurrence of dumping 

(56)  As mentioned in recital (38) above, a comparison between the export prices to other 
third countries contained in the request for review with the price on the Union market 
reveals a strong likelihood that dumping may recur. 

(57) 

In addition, considering the significant production capacity available in the PRC, the 
ability  of  Chinese  producers  to  increase  rapidly  their  production  volumes  and  direct 
them  for  export,  the  likely  low  prices  of  such  exports  and  the  attractiveness  of  the 
Union market for such exports, it is reasonable to assume that a repeal of the measures 
would  result  in  increased  exports  at  dumped  levels  of  LAM  from  the  PRC  to  the 
Union.  

E. DEFINITION OF THE UNION INDUSTRY 

(58)  During the RIP LAM were manufactured in the Union by six known producers, out of 
which three were the applicants in the present case. No other companies came forward 
as Union producers in the course of this investigation. It is therefore considered that 
these six producers represent the Union industry within the meaning of Articles 4(1) 
and 5(4) of the basic Regulation (hereinafter referred to as the ‘Union industry’).  

F. SITUATION ON THE UNION MARKET 

1. 

Preliminary remark 

(59)  For the purpose of the injury analysis data were obtained from Eurostat statistics and 
other  statistical  sources  available  to  the  Commission,  the  request  for  review,  the 
responses to the questionnaire and information gathered during the verification visits.  

(60)  The  macroeconomic  indicators,  namely  production,  production  capacity,  capacity 
utilisation,  sales  in  the  EU  and  to  third  markets,  market  share,  growth,  employment 
and productivity, magnitude of the actual dumping margin and the recovery from the 

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past dumping are based on the data submitted by  the Union  industry. In this context 
the  questionnaire  responses  obtained  from  the  two  sampled  Union  producers  were 
complemented by information provided by all other Union producers. 

(61)  The  microeconomic  indicators,  namely  stocks,  wages,  sales  prices,  profitability, 
investment,  return  on  investment,  cash  flow  and  ability  to  raise  capital  refer  to  data 
supplied  by  the  two  sampled  Union  producers.  Due  to  the  fact  that  the  sampled 
companies represent over 50% of the total estimated Union production and sales, the 
sampled Union producers were deemed to be representative of the Union industry for 
the purposes of this review. Data relating to the two sampled companies can only be 
provided  in  indexed  form,  so  as  to  preserve  confidentiality  of  business  sensitive 
information pursuant to Article 19 of the basic Regulation.  

(62)  Due  to  the  lack  of  cooperation  from  the  Chinese  exporting  producers  and  unrelated 
importers,  the  development  of  import  price  and  undercutting  is  based  on  alternative 
sources  such  as  the  request  for  review,  Eurostat  and  other  confidential  statistics 
available  to  the  Commission  as  well  as  information  collected  during  the  verification 
visits. Import data were based on the request for review which was based on Eurostat 
data. Given that these data covered also other imports than the product concerned, they 
were  cross-checked  and  duly  adjusted  against  other  confidential  statistical  sources 
available  to  the  Commission.  Therefore,  some  figures  below  have  been  indexed  or 
bracketed to protect confidential statistics. 

2. 

Consumption on the Union market 

(63)  The Union consumption was established on the basis of the sales volume of the Union 
industry  on  the  Union  market  and  imports.  It  was  established  that  the  consumption 
during the RIP was within the range between 200 and 350 million pieces. 

(64)  The consumption of LAM in the Union decreased by 12% over the period considered. 
This could be partly attributed to the economic crisis as well as changing patterns in 
consumption (e.g. promotion of green office and electronic filing, general decrease in 
administrative jobs). 

Table 1 
Consumption 
2009 

2008 

2010 

100 

84 

90 

RIP 

88 

Volume  
Index (2008=100) 

Source: Questionnaire replies, Review request, Eurostat and other statistical sources available to the Commission  

3. 

Volume and market share of imports from the PRC 

(65)  As  described  in  Table  2  below,  market  share  decreased  by  54%  during  the  period 

considered. 

(66)  Moreover,  since  the  imposition  of  anti-dumping  duties  in  2006  the  Chinese  imports 
considerably decreased from 51% market share in the IP of the original investigation 
to  between  7-15%  during  the  RIP.  Concerning  import  volumes  from  the  PRC,  they 
remained low during the period considered due to the anti-dumping measures in force. 
However,  the  Chinese  imports  continued  to  be  a  major  source  (between  85-95%  in 
RIP) of total imports in the Union, due to the limited exports of LAM by other third 
countries. In the period considered imports decreased by 59%.  

EN 

Table 2 

11 

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Volume of imports 
Index (2008=100) 

Market share of 
imports Index 
(2008=100) 

Imports from PRC 

2008 

100 

100 

2009 

2010 

56 

66 

44 

48 

RIP 

41 

46 

Source: Questionnaire replies, Review request, Eurostat and other statistical sources available to the Commission  

4. 

Trend in prices of imports from the PRC and price undercutting 

4.1 Trend in prices 

(67)  Due  to  the  lack  of  cooperation  of  the  Chinese  exporting  producers  and  lack  of 
alternative  sources  it  was  not  possible  to  establish  an  accurate  import  price.  This  is 
because,  as  explained  in  recital  (21)  above,  statistics  were  considered  unsuitable 
insofar  as  one  of  the  sources  also  covered  other  imports  than  the  product  concerned 
and the other sources did not allow for the possibility to compare export prices with 
those of the Union industry on a type per type basis. 

(68)  Nevertheless, it is considered that the other confidential statistical sources available to 
the Commission were suitable to indicate the overall trend in import prices from the 
PRC. The trend in import prices shows a price increase over the period considered. 

Table 3 
Prices of imports of the product concerned 

PRC 
Index 

2008 

2009 

100 

102 

2010 

118 

RIP 

118 

Source: Questionnaire replies, Review request, Eurostat and other statistical sources available to the Commission 

4.2 Price undercutting 

(69)  Due  to  the  lack  of  cooperation  of  the  Chinese  exporting  producers  and  lack  of 
alternative sources, the undercutting calculation was, for the reasons set out in recitals 
(37) above, based on the export prices to third countries contained in the request for 
review. The level of undercutting indicatively established amounts to about 20%. 

5. 

Import volumes and market shares of imports from other third countries  

(70)  The  main  producers  of  LAM  in  the  world  are  located  in  the  Union  and  the  PRC. 
Imports  from  other  third  countries  such  as  India  were  found  to  be  negligible,  below 
1%.  

6. 

Economic situation of the Union industry 

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

6.1.  Macroeconomic elements 

(a)  Production 

(72)  The production volume in the Union remained within the same range over the period 
considered with the exception of 2009. The decrease in 2009 due to a certain degree to 
the global economic crisis was compensated by an increase in 2010.  

EN 

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(73)  Despite the downward trend in sales in the Union as explained in recitals (75) to (77) 
below,  the  Union  producers  could  maintain  the  production  levels  during  the  period 
considered as they were able to increase their exports to third markets as explained in 
recital (78).  

Table 4 
Total Union production 

2008 

2009 

2010 

RIP 

351,480 
100 

301,661 
86 

360,007 
102 

354,646 
101 

Volume ('000 pieces) 
Production 
Index (2008=100) 
Source: Questionnaire replies. 

(b)  Production capacity and capacity utilisation 

(74)  Production  capacity  slightly  increased  due  to  the  investments  in  extra  capacity  and 
modernisation  undertaken  by  the  Union  producers  over  the  period  considered. 
Capacity utilisation remained rather stable, showing a slight decrease in the year 2009. 
This  slight  decrease  is  primarily  attributable  to  the  effects  of  the  global  economic 
crisis during that year. 

Table 5 
Production capacity and capacity utilisation 
2010 

2008 

2009 

Volume ('000 pieces) 
Production capacity 
Index (2008=100) 
Capacity utilisation 
Index (2008=100) 
Source: Questionnaire replies. 

452,407 
100 
77.7% 
100 

453,323 
100 
66.5% 
86 

465,984 
103 
77.3% 
99 

RIP 

465,401 
103 
76.2% 
98 

(c)  Sales volume in the Union 

(75)  The  figures  below  represent  the  Union  industry’s  sales  volume  to  independent 

customers on the Union market. 

Table 6 
Sales to unrelated customers 
2008 
315,715 
100 

2009 
281,281 
89 

2010 
309,941 
98 

RIP 
304,444 
96 

Volume ('000 pieces) 
Index (2008=100) 

Source: Questionnaire replies. 

(76)  The sales in the Union decreased over the period considered by 4%.  

(77) 

In 2009, the sales dropped by 11%. This decline is to be attributed to the effects of the 
global economic crisis. In subsequent years the sales recovered and were close to 2008 
figures during the RIP. 

(d)  Sales to thirds markets  

(78)  The  figures  below  represent  the  Union  industry’s  sales  volume  to  third  markets  and 

show a sharp increase in these sales over the period considered. 

EN 

Table 7 

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Volume ('000 pieces) 
Index (2008=100) 

Sales to third countries 

2008 

26,750 
100 

2009 

42,105 
157 

2010 

59,221 
221 

RIP 

57,148 
214 

Source: Questionnaire replies. 

(e)  Market share 

(79)  Despite  the  decrease  in  sales  in  the  Union,  the  market  share  of  the  Union  industry 
increased by 9% over the period considered to reach a range of 80% to 93% during the 
RIP.  The  increase  in  the  Union  market  share  was  a  result  of  the  decrease  in 
consumption in the Union as well as the decrease of the market share of imports from 
the PRC. 

Index (2008=100) 

Table 8 
EU market share 
2009 

106 

2008 

100 

2010 

109 

RIP 

109 

Source: Questionnaire replies,Review request, Eurostat and other statistical sources available to the Commission 

(f)  Growth 

(80)  Between  2008  and  the  RIP,  the  Union  consumption  shrank  by  12%.  The  volume  of 
sales  by  the  Union  producers  on  the  Union  market  decreased  by  4%.  The  Union 
producers’ market share increased by 9%.  

(g)  Employment  

(81)  Employment in the sector decreased in the Union during the period considered. This 
decrease was linked to the modernisation and mechanisation of the production process 
by the Union industry. 

Table 9 
Union employment 

2008 
710 
100 

2009 
588 
83 

2010 
561 
79 

RIP 
552 
78 

Number of employees 
Index (2008=100) 
Source: Questionnaire replies. 

(h)  Productivity 

(82)  The  productivity  of  the  Union  industry’s  workforce,  measured  as  output  per  person 
employed  per  year,  developed  positively  over  the  period  considered  and  remained 
stable through 2010 and the RIP.  

(83)  This  increase  in  productivity  was  linked  to  the  modernisation  process  undertaken 

which is described in recital (93). 

Table 10 
Productivity 

2008 
495 

2009 
513 

2010 
642 

100 

104 

130 

RIP 
642 

130 

Productivity ('000 
pieces/year) 

Index (2008=100) 
Source: Questionnaire replies. 

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

dumping 

(84) 

It  is  recalled  that  due  to  the  circumstances  described  in  recitals  (19)  to  (23),  no 
dumping  calculation  could  be  carried  out.  However,  a  likelihood  of  recurrence  of 
dumping was established based on a comparison between normal value established on 
the basis of the average Union industry sales prices and export price established on the 
basis of prices to third countries.  

(85)  The  analysis  shows  that  the  Union  industry  recovered  to  a  large  extent  due  to  the 
imposition  of  the  measures  against  dumped  imports  and  the  measures  in  force  are 
proving to be effective.  

6.2 Microeconomic elements  

(a)  Stocks 

(86)  The figures below represent the volume of stocks at the end of each period. 

Table 11 
Closing Stocks 
2009 
43 

2008 
100 

2010 
61 

RIP 
83 

Index (2008=100) 

Source: Questionnaire replies. 

(87)  The investigation showed that stocks held by the Union industry were not a relevant 
indicator for the assessment of the economic situation of the Union industry because 
the level of stocks varies on a seasonal basis. 

(b)  Wages 

(88)  During the period considered the average wage increased by 33% per employee. 

Table 12 
Wages (cost per employee) 

Index (2008=100) 

2008 
100 

2009 
116 

2010 
133 

RIP 
133 

Source: Questionnaire replies. 

(c)  Sales prices 

(89)  Average  unit  prices  of  LAM  in  the  Union  increased  slightly  between  2008  and  RIP. 
The relative decrease in 2010 as compared to 2009 is linked to fluctuation of the prices 
of the raw materials. 

Table 13 
Unit price EU market (EUR per 000 pieces) 

2008 
100 

2009 
103 

2010 
101 

RIP 
104 

Index (2008=100) 
Source: Questionnaire replies. 

(d)  Profitability 

(90)  The  profitability  margins  shown  below  are  established  by  expressing  the  financial 
result achieved by the Union industry as a percentage of the turnover achieved on the 
Union market. 

EN 

Table 14 

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Profitability 
2009 
107 

2008 
100 

2010 
105 

RIP 
104 

Index (2008=100) 

Source: Questionnaire replies. 

(91)  Prior to the imposition of definitive measures in 2006 the Union industry was heavily 
loss making. Since then, the economic situation of the LAM industry improved over 
the period considered, however remaining below the target profit of 5% established in 
the original investigation during the RIP.  

(e) 

Investments, return on investments and cash flow 

(92)  The trends for investments, the return on investments and cash flow are shown in the 

following table. 

Table 15 
Investments, return on investment and cash flow 
2010 

2008 

2009 

Investments 
Index (2008=100) 
Return on investment 
Index (2008=100) 
Cash flow  
Index (2008=100) 

Source: Questionnaire replies. 

100 

100 

100 

152 

111 

291 

41 

109 

247 

RIP 

51 

108 

236 

(93)  Due to the recovery after imposition of the measures in 2006, the industry carried out 
significant investments into modernisation and expansion of the production facility, in 
particular  in  2008  and  2009.  The  improved  profitability  and  is  also  reflected  in  the 
improved cash flow.  

(f)  Ability to raise capital 

(94)  The  investigation  did  not  reveal  any  particular  problems  in  the  ability  of  the  Union 

industry to raise capital. 

6.3. Conclusion on the economic situation of the Union industry 

(95)  Based on the above-mentioned analysis, the economic situation of the Union industry 
has  improved  and  the  industry  is  proving  to  be  viable  after  the  imposition  of  the 
measures in 2006. Nonetheless, taking into account that the above mentioned positive 
developments  occurred  only  after  the  imposition  of  measures,  employment  is 
decreasing  and  profitability  is  still  below  its  target  level,  it  is  considered  that  the 
economic situation of the industry remains fragile and vulnerable. It may therefore be 
concluded that the evidence suggests that the removal of injury is partly or solely due 
to the existence of measures. 

G. LIKELIHOOD OF RECURRENCE OF INJURY 

(96)  Since  the  imposition  of  the  measures  in  force  the  situation  of  the  Union  industry 
improved  considerably.  However,  the  findings  of  the  present  analysis  show  that  the 
Union industry still remains fragile and vulnerable.  

(97)  Under such circumstances it is appropriate to carry out an analysis of the likelihood of 
recurrence of material injury in order to examine whether — should the measures be 
repealed  —  projected  developments  in  terms  of  volumes  and  prices  of  imports 

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originating in the PRC would deteriorate the present situation, as detailed below from 
recital (98)to (106). 

(98)  There  are  two  main  producers  of  LAM  in  the  world  –  the  PRC  and  the  Union.  The 
Union  is  the  largest  market  for  LAM  worldwide,  followed  by  South  America  and 
Russia.  There  are  small  producers  in  other  countries,  such  as  India,  but  these 
concentrate on their respective domestic markets.. The USA and Canada use different 
filing systems.  

(99) 

It is recalled that there is significant spare capacity in the PRC and that production of 
LAM in the PRC could be easily increased as explained in recitals (45) to(48) above. 

(100)  It is also recalled that the spare capacity available in the PRC corresponds roughly the 

Union consumption (see recital (45) above). 

(101)  It  was  also  established  that  any  increase  of  LAM  production  in  the  PRC  would  be 
likely to be exported to the Union, if measures were repealed (see recital (53) above). 
This is based on the fact that the EU market remains the largest market worldwide for 
LAM,  with  a  relatively  stable  consumption  and  due  to  the  fact  that  the  prevailing 
prices  are  generally  higher  in  the  Union  market  than  in  other  export  markets  (see 
recital (52) above). Also it should be taken into account that apart from the Union and 
the PRC there are no other significant exporting countries producing LAM. 

(102)  In addition, as mentioned in recital (41) above, production capacity in the PRC can be 
increased  easily  by  the  simple  provision  of  additional  labour.  Therefore,  the  PRC 
exports  would  be  able  to  accommodate  any  increase  in  the  Union  consumption.  In 
view of the potentially low price of Chinese imports, as shown by the comparison with 
their  prices  to  third  country  markets,  and  the  apparent  unlimited  ability  to  supply  at 
low prices, the Union industry would very likely not be able to benefit of any increase 
in demand which would lead to important losses of market share, should measures be 
repealed. 

(103)  On this basis it is to be expected that the conditions of any future significant increase 
of  LAM  imports  from  the  PRC  to  the  Union  would  have  serious  negative 
consequences on the situation of the Union industry. As mentioned above, if measures 
are  repealed,  the  import  volume  of  LAM  from  PRC  is  expected  to  be  important. 
Furthermore, those imports would most probably exert a significant price pressure on 
the Union market, thus on the Union industry, as suggested by the data on the level of 
prices in third country markets. Indeed, according to the data available it is estimated 
that the current Chinese prices do undercut Union prices by around 20% as described 
in  recital  (69)  above,  which  points  to  a  strong  likelihood  for  the  Chinese  imports  to 
occur at prices substantially below Union prices should the measures be lifted.  

(104)  The attractiveness of the Union market for Chinese exporters is also underlined by the 
misclassification  attempts  to  avoid  the  anti-dumping  measures  in  place  (recital  (55) 
above).  

(105)  On the basis of the above, it is likely that the expiry of the anti-dumping measures on 
imports of LAM originating in the PRC would result in a sharp increase in the volume 
of imports into the Union at very low prices, very likely undercutting substantially the 
Union sales prices. This would cause material injury and annihilate the investment and 
recovery efforts made by the industry in the past years.  

(106)  On  this  basis,  it  is  concluded  that  the  repeal  of  measures  in  force  of  imports  from 
LAM originating in the PRC would in all likelihood result in the recurrence of injury 
to the Union industry. 

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1. 

Preliminary remark 

H. UNION INTEREST 

(107)  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. 

(108)  The determination of the Union interest was based on an appreciation of all the various 

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

(109)  In the original investigation the adoption of measures was considered not to be against 
the interest of the Union.  Furthermore, the present investigation is an expiry review, 
thus analysing a situation in which anti-dumping measures are in place. 

(110)  On  this  basis,  it  was  examined  whether,  despite  the  conclusion  on  the  likelihood  of 
recurrence of dumping and injury, there are compelling reasons 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 

(111)  The  continuation  of  the  anti-dumping  measures  on  imports  from  the  country 
concerned would enhance the possibility for the Union industry to reach a reasonable 
level of profitability, as it would help avoiding that the Union industry is pushed out of 
the market by substantial volumes of imports from the PRC.  

(112)  Indeed, there is a clear likelihood of recurrence of the 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.  

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

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

3. 

Interest of importers and users 

(114)  As indicated above, none of the identified unrelated importers submitted questionnaire 
replies. Importers of LAM are normally also users of the product concerned since they 
use it for the production of lever arch files ('LAF').  

(115)  Several users, i.e. producers of LAF, came forward in the course of the investigation. 
Only  one  user  provided  a  questionnaire  reply  which,  given  the  quality  of  the  data 
submitted, was possible to verify only to some extent during the verification visit.  

(116)  The user that was verified claimed that anti-dumping measures should also be imposed 
on  imports  of  LAF  from  the  PRC.  However,  these  claims  were  not  substantiated  by 
any supporting evidence.  

(117)  Two  users  expressed  their  opposition  against  the  continuation  of  the  measures. 

However, their allegations were not substantiated 

(118)  On  the  other  hand,  the  analysis  also  showed  that  if  the  Chinese  were  to  become  the 
sole suppliers of LAM as a consequence of the repeal of the measures, the position of 
the producers of lever arch files would also be endangered due to the disappearance of 
the  competition  on  the  world  LAM  market.  It  was  therefore  considered  that  the 
existing measures contribute to variety of supply and competition on the world market 
for LAM, which ultimately is in the interest of the users.  

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(119)  Other three users using only the LAM produced in the Union remained neutral and one 

of them expressed its support for the continuation of the measures. 

(120)  Given that the cost of LAM represents a minimal percentage of the retail price of LAF, 
the measures have practically no effect, if any, on the price of the final product (LAF), 
and therefore no impact on final consumers. 

4. 

Conclusion on Union interest 

(121)  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. 

I. ANTI-DUMPING MEASURES 

(122)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that existing measures be maintained. They were 
also granted a period within which they could make representations subsequent to this 
disclosure.  The  submissions  and  comments  were  analysed  but  have  not  led  to  the 
alteration of the essential facts and considerations on the basis of which it was decided 
to maintain the anti-dumping measures. 

(123)  It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
lever  arch 

Regulation, 
mechanisms originating in the PRC should be maintained, 

the  anti-dumping  measures  applicable 

imports  of 

to 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  lever  arch 
mechanisms  generally  used  for  archiving  sheets  and  other  documents  in  binders  or 
files currently falling within CN code ex 8305 10 00 (TARIC code 8305 10 00 50) 
and  originating  in  the  People's  Republic  of  China.  These  lever  arch  mechanisms 
consist of arched sturdy metal elements (normally two) on a back plate and having at 
least  one  opening  trigger  that  permits  inserting  and  filing  of  sheets  and  other 
documents. 

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

Manufacturer 

Anti-dumping duty 

TARIC 
additional code 

Dongguan Nanzha Leco Stationary 

27,1% 

A729 

The  First  Industrial  Camp,  Nanzha,  Humen, 
Dongguan, China 

All other companies 

47,4% 

A999 

3. 

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

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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 

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