Proposal for a COUNCIL REGULATION clarifying the scope of the definitive anti-dumping duties imposed by Regulation (EC) No 383/2009 on imports of certain PSC wires and strands originating in the People's Republic of China
Date: 2012-09-26
Institutions: European Commission
Subjects: China, anti-dumping duty, import (EU), originating product, steel, wire

EUROPEAN COMMISSION 

Brussels, 26.9.2012  
COM(2012) 544 final 

2012/0256 (NLE) 

Proposal for a 

COUNCIL REGULATION 

clarifying the scope of the definitive anti-dumping duties imposed by Regulation (EC) 
No 383/2009 on imports of certain PSC wires and strands originating in the People's 
Republic of China 

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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  Community1  (‘the  basic  Regulation’)  in  the  proceeding  concerning  the 
review  limited  to  the  product  scope  of  the  measures  applicable  to  imports  of  certain 
pre-  and  post-stressing  wires  and  wire  strands  of  non-alloy  steel  (PSC  wires  and 
strands) 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 

A definitive anti-dumping duty on imports of certain pre- and post-stressing wires and 
wire  strands  of  non-alloy  steel  (PSC  wires  and  strands)  originating  in  the  People’s 
Republic of China imposed by Council Regulation (EC) No 383/20092.  

Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

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

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

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

On 4 October 2011, the Commission initiated a partial interim review investigation of 
the anti-dumping measures applicable to imports of PSC wires and strands originating 

1 
2 

OJ L 343, 22.12.2009, p. 51. 
OJ L 118, 13.5.2009, p. 1 

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in China, limited to the examination of the product scope. 

The  applicant  claimed  that  a  particular  product  type,  galvanised  stranded  wire 
consisting of seven wires, should be excluded from the product scope under measures 
on  the  grounds  that  this  product  type  has  different  basic  physical  and  technical 
characteristics from those of the product scope subject to the existing measures.  

The  investigation  showed  that  the  product  type  requested  to  be  excluded  does  indeed 
not fall fully under the definition of the product concerned as it has 

– 

– 

– 

physical differences regarding the diameter of the wires,  

a clearly different application than the product concerned and  

is used in a different industry which was not investigated in the original anti-
dumping proceeding.  

Therefore,  the  galvanized  stranded  wire  consisting  of  seven  wires  respecting  the 
International  Standard  IEC  61089  or  the  European/Cenelec  Standard  UNE-50182 
should be excluded from the scope of the measures. 

It  is  therefore  proposed  that  the  Council  adopt the  attached  proposal  for  a  Regulation 
which should be published in the Official Journal of the European Union. 

Legal basis 

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

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

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2012/0256 (NLE) 

Proposal for a 

COUNCIL REGULATION 

clarifying the scope of the definitive anti-dumping duties imposed by Regulation (EC) 
No 383/2009 on imports of certain PSC wires and strands originating in the People's 
Republic of China 

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 11(3), thereof, 

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

Whereas: 

A. PROCEDURE 

1. 

(1) 

2. 

(2) 

(3) 

Measures in force 
By  Regulation  (EC)  No  383/20092  ('definitive  Regulation'),  the  Council  imposed  a 
definitive  anti-dumping  duty  on  imports  of  PSC  wires  and  strands  originating  in  the 
People's Republic of China ('the measures in force'). 

Request for an interim review 

The Commission received a request from ECN Cable Group S.L., a Spanish producer 
of cables ('the applicant') for a partial interim review pursuant to Article 11(3) of the 
basic Regulation. 

The applicant requested the exclusion of certain wires and strands from the scope of 
the current anti-dumping measures on imports of certain pre- and post-stressing wires 
and wire strands of non-alloy steel (PSC wires and strands) originating in the People's 
Republic of China. The product requested to be excluded is stranded wire consisting of 
seven wires of non-alloy steel, plated or coated with zinc, containing by weight 0.6% 
or more of carbon, with a maximum cross-sectional dimension exceeding 3 mm, and 
respecting  the  International  Standard  IEC  60888  or  the  European/Cenelec  Standard 
UNE-EN 50189 ('strands used as a steel core for conductors'). 

(4) 

The applicant provided prima facie evidence demonstrating that the basic physical and 
technical characteristics of the product to be excluded differ significantly from those 
of the product concerned subject to the measures in force . 

3. 

Initiation 

1 
2 

OJ L 343, 22.12.2009, p. 51. 
OJ L 118, 13.5.2009, p. 1. 

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(5) 

4. 

(6) 

(7) 

(8) 

(9) 

Having determined, that sufficient evidence existed to justify the initiation of a partial 
interim  review,  and  after  consulting  the  Advisory  Committee,  the  Commission 
announced  by  a  notice  published  on  4  October  2011  in  the  Official  Journal  of  the 
European Union3 ('the Notice of Initiation') the initiation of a partial interim review in 
accordance with the provisions of Article 11(3) of the basic Regulation limited to the 
examination of the product scope. 

Review investigation 

The Commission officially informed the authorities of the People's Republic of China 
('the  country  concerned')  and  all  other  parties  known  to  be  concerned,  i.e.  known 
exporting  producers  in  the  country  concerned,  users  and  importers  in  the  Union  and 
producers  in  the  Union,  of  the  initiation  of  the  partial  interim  review  investigation. 
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. 

The  Commission  sent  questionnaires  to  all  parties  known  to  be  concerned,  and  all 
other parties which made themselves known within the deadlines set out in the Notice 
of Initiation. 

Questionnaire  replies  were  received  from  the  applicant,  two  Chinese  exporting 
producers, twelve Union producers of PSC wires and strands, two Union producers of 
conductors  for  electricity  lines,  six  users  and  two  Union  importers.  In  view  of  the 
scope  of  the  partial  review,  no  investigation  period  was  set  for  the  purpose  of  this 
partial review.  

The  Commission  sought  and  verified  all  information  deemed  necessary  for  the 
purpose of the assessment as to whether there was a need to amend the scope of the 
existing  anti-dumping  measures  and  carried  out  verification  visits  at  the  premises  of 
the following companies:  

–  ECN Cable Group S.L. Vitoria Gasteiz, Spain 

–  Tycsa – Trenzas y Cables de Acero PSC, S.L., Santander, Spain 

–  DWK Drahtwerk Koln GmbH, Köln, Germany  

–  Nedri Spanstaal, B.V.,Venlo, Netherlands 

–  Gongyi Hengxing Hardware co., Ltd, Henan Province, China 

–  Solidal Condutores Eléctricos S.A, Esposende, Portugal 

–  Tele-fonika Kable Sp. z o.o. S.K.A, Krakow, Poland 

B. PRODUCT CONCERNED  

1. 

Product concerned 

(10)  The product concerned is the same as defined in Article 1 of the definitive Regulation, 
i.e. not plated or not coated wire of non-alloy steel, wire of non-alloy steel plated or 
coated with zinc and stranded wire of non-alloy steel whether or not plated or coated 
with  not  more  than  18  wires,  containing  by  weight  0.6%  or  more  of  carbon,  with  a 
maximum  cross-sectional  dimension  exceeding  3  mm,  currently  falling  within  CN 
codes ex 7217 10 90, ex 7217 20 90, ex 7312 10 61, ex 7312 10 65 and ex 7312 10 69 
and originating in the People’s Republic of China.  

3 

OJ C 291 4.10.2011, p. 6. 

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C. RESULTS OF THE REVIEW INVESTIGATION 

1. 

Background 

(11)  Pre-  or  post-stressed  wires  or  strands  are  made  of  high-carbon  steel  and  are  used 
mostly  in  the  construction  industry  for  concrete  reinforcement,  suspension  elements 
and stay-cable bridges. PSC wires and strands are manufactured from steel wire rods.  

(12)  There are two main different types of PSC wires and strands: the ones used in concrete 
applications  that  are  not  galvanized  and  the  ones  used  for  stay  cable  bridges  or 
suspension  bridges  that  are  galvanized.  The  galvanized  strands  used  for  suspension 
bridges  represent  only  around  1%  of  the  total  Union  PSC  wires  and  strands  market. 
Accordingly,  the  main  users  of  the  PSC  wires  and  strands  are  enterprises  in  the 
construction industry. 

(13)  The applicant is a Spanish producer of conductors for overhead electricity lines. The 
product  type  which  the  applicant  is  seeking  to  have  excluded  from  the  product 
definition  is  a  seven  wire  galvanised  strand  used  as  a  steel  core  for  conductors  for 
overhead electricity lines. 

2. 

(14) 

Methodology 

In  order  to  assess  whether  strands  used  as  a  steel  core  for  conductors  for  overhead 
electricity  lines  should  be  covered  by  the  product  definition  of  Article  1  of  the 
definitive  Regulation,  it  was  examined  whether  strands  used  as  a  steel  core  for 
conductors  and  other  PSC  wires  and  strands  shared  the  same  physical  and  technical 
characteristics and end uses. In this regard the interchangeability between the strands 
used  as  steel  core  for  conductors  for  overhead  electricity  lines  and  other  PSC  wires 
and strands subject to the measures concerned in the Union was also assessed.  

(15)  The  applicant  proposed  to  differentiate  the  two  products  by  the  use  of  standards. 
According  to  the  applicant,  the  PSC  wires  and  strands  used  in  the  construction 
industry do not meet the requirements of the International Standard IEC 60888 or the 
European/Cenelec Standard UNE-EN 50189. Both of these norms apply to zinc-coated 
steel wires to be used in stranded conductors of electricity.  

3. 

Findings 

3.1. 

Physical and technical characteristics 

(16)  The standards referred to in the request and set out in recital (15) above are only used 
with  regard  to  the  conductors  for  electricity  lines.  Accordingly,  the  EU  producers  of 
PSC wires and strands for the use in the construction industry were not familiar with 
these norms and consequently their questionnaire replies showed differing opinions as 
to whether these standards are met with regard to seven wire galvanized strands used 
for suspension bridges.  

(17)  The investigation revealed that most physical characteristics/standard specifications of 
the two products in question are at least partially comparable, however it also revealed 
that there is one identifiable particular physical difference – which allows for a clear 
distinction of the two  products  - when comparing the  norms used for  conductors for 
overhead lines with the norm for pre-stressing steel used in the construction business.  

(18)  According  to  standard  EN10337  for  pre-stressing  steel,  which  is  used  in  the 
construction  industry,  "the  diameter  of  the  central  wire  shall  be  at  least  3%  greater 
than  the  diameter  of  the  outer  helical  wires"  (point  7.1.3.  of  the  norm),  whereas, 

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according to the standard for overhead conductors (EN 50182), the wires in a seven-
wire galvanized strand used as a steel core for conductors have all the same diameter.  

(19)  The  differences  in  thickness  of  the  central  wire  can  be  verified  by  using  equipment 
that is able to measure the thickness of the wires. Accordingly, this product type can 
be distinguished from other product types of the product concerned.  

(20) 

Interested  parties  were  consulted  and,  in  summary,  agreed  that  it  is  possible  to 
distinguish the two types of products as described above. 

3.2. 

Basic end-uses and interchangeability 

(21)  The  investigation  also  showed  that  the  two  product  types  have  different,  distinct 
applications and are used in two different industries. PSC wires and strands are used in 
the  construction  industry  while  the  strands  requested  to  be  excluded  are  used  as  a 
supporting core in the conductors for overhead electricity lines in the cable industry.  

(22)  Furthermore  due  to  the  different  specifications  of  each  product  type  there  is  no 
possible  interchangeability  in  the  applications  of  the  PSC  wires  and  strands  and  the 
strands used as a steel core for conductors.  

(23)  On  this  basis,  it  is  considered  that  there  are  significant  basic  physical  and  technical 
differences  between  PSC  wires  and  strands  and  the  strands  used  as  a  steel  core  for 
conductors for overhead electricity lines, which are identifiable.  

3.3. 

Product investigated in the original investigation  

(24)  None  of  the  companies  that  cooperated  in  the  original  investigation  (seven  EU 
producers, seven exporting producers in the PRC, four unrelated importers in the EU 
and  seven  users)  was  involved  in  manufacturing  and/or  trading  of  strands  used  as  a 
steel core for conductors. It is apparent from the original investigation that the relevant 
information  was  at  that  time  not  collected  with  regard  to  the  strands  used  as  a  steel 
core for conductors. 

(25)  Thus, it seems that although the strands used as a steel core for conductors were not 
explicitly  excluded,  the  investigation  at  that  time  did  not  intend  to  include  them  as 
product concerned. 

4. 

Allegations of possible circumvention of the measures in place 

(26)  Some  interested  parties  expressed  concerns  regarding  possible  circumvention  of  the 
measures if the strands used as a steel core for conductors were to be excluded from 
the scope of the measures. 

(27)  However,  the  seven  wire  galvanized  strands  used  in  the  conductors  for  overhead 
electricity lines are sold non-further-coated, whereas the galvanized seven wire strands 
used  in  the  construction  of  bridges,  suspension  elements  and  wind  generators  are 
mostly further coated with polyethylene and waxed or greased for a life-expectancy of 
50 or more years.  

(28)  During  the  investigation  only  one  application  for  galvanised  PSC  wire  and  strands, 
which  is  not  further  coated  –  the  temporary  support  of  bridges  during  the  building 
process – was identified. However, this application represents only a small fraction of 
the  already  small  market  of  all  galvanised  PSC  wire  and  strands  applications  (see 
recital 12). 

(29)  Therefore,  the  different  types  of  strands  are  in  the  vast  majority  of  cases  easily 
distinguishable  between  –  galvanised  or  non-galvanised  and  within  the  group  of 

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galvanised  between  further  coated  and  non-further-coated  -  thereby  making  control 
feasible.  

(30) 

In  addition,  the  vast  majority  of  EU  Member  States  require  for  standard/traditional 
"PSC  applications"  a  national  homologation  for  the  utilization  of  PSC  wires  and 
strands in order to ensure product quality. The homologation process is very detailed 
and  it  is  mandatory  to  disclose  the  wire  rod  quality  and  supplier,  the  production 
facilities, the machinery used, the laboratory tests, etc. 

(31) 

In some cases the national homologation process can – in accordance with procedures 
in force in most EU Member States - be replaced by a "quality reception" or a "project 
specific homologation".  

(32)  However,  in  both  cases,  an  independent  technical  expert  certifies  that  the  products 
intended to be used are in line with the PSC standard specifications. These procedures 
provide  additional  assurance  regarding  any  possible  attempts  to  circumvent  the 
measures. 

(33)  Furthermore,  the  different  product  types  can  be  distinguished  if  necessary  by  using 
special  measuring  instruments/equipment  in  cases  where  galvanised  non-further-
coated strands should be cleared through customs for free circulation.  

(34)  From the above it can be concluded that the risk of circumvention is minimal. 

D. 

CONCLUSIONS ON THE PRODUCT SCOPE 

(35)  The above findings show that the strands used as steel core for conductors and other 
PSC wires and strands subject to the measures concerned do not share the same basic 
physical  and  technical  characteristics  and  end-uses.  The  two  products  have  different 
end-uses, target different markets and are not interchangeable. In addition, the strands 
used  as  steel  core  for  conductors  were  not  investigated  in  the  framework  of  the 
original investigation. On this basis, it is concluded that the strands used as steel core 
for conductors and other PSC wires and strands are two different products.  

(36) 

In view of the above, and since it could be established that the strands used as a steel 
core for conductors can be distinguished from the product concerned, they should be 
excluded from the product scope of the measures in force.  

(37)  All  interested  parties  were  informed  of  the  essential  facts  and  considerations  on  the 
basis  of  which  the  above  conclusions  were  reached.  Parties  were  granted  a  period 
within  which  they  could  make  representations  subsequent  to  this  disclosure.  No 
submissions were received that would result in a different conclusion.  

E. 

RETROACTIVE APPLICATION  

(38)  Since  the  current  proceeding  is  limited  to  the  clarification  of  the  product  scope  and 
since  the  strands  used  as  steel  core  for  conductors  were  not  covered  in  the  original 
investigation and the consequent anti-dumping measures, it is considered appropriate 
that  the  findings  be  applied  from  the  date  of  the  entry  into  force  of  the  definitive 
Regulation, including any imports subject to provisional duties between 16 November 
2008  and  13  May  2009.  The  Commission  has  not  found  any  overriding  reason 
preventing the application of such retroactive provision. 

(39)  Consequently, for goods not covered by Article 1(1) of Council Regulation (EC) No 
383/2009  as  amended  by  this  Regulation,  the  definitive  anti-dumping  duty  paid  or 
entered in the accounts pursuant to Article 1(1) of Regulation (EC) No 383/2009 and 
the  provisional  antidumping  duties  definitively collected  pursuant  to  Article  2  of  the 

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same  Regulation  should  be  repaid  or  remitted.  Repayment  or  remission  must  be 
requested  from  national  customs  authorities  in  accordance  with  applicable  customs 
legislation.  In  cases  where  the  time  limits  provided  for  in  Article  236(2)  of  Council 
Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the  Community 
Customs Code have expired before or on the date of publication of this Regulation, or 
if  they  expire  within  six  months  after  that  date,  they  are  hereby  extended  so  as  to 
expire six months after the date of publication of this Regulation.  

HAS ADOPTED THIS REGULATION: 

Article 1 

Article 1(1) of Council Regulation (EC) No 383/2009 shall be replaced by the following: 

A definitive anti-dumping duty is hereby imposed on imports of not plated or not coated wire 
of non-alloy steel, wire of non-alloy steel plated or coated with zinc and stranded wire of non-
alloy steel whether or not plated or coated with not more than 18 wires, containing by weight 
0.6  %  or  more  of  carbon,  with  a  maximum  cross-sectional  dimension  exceeding  3  mm, 
currently falling within CN codes ex 7217 10 90, ex 7217 20 90, ex 7312 10 61, ex 7312 10 
65 and ex 7312 10 69 (TARIC codes 7217 10 90 10, 7217 20 90 10, 7312 10 61 11, 7312 10 
61 91, 7312 10 65 11, 7312 10 65 91, 7312 10 69 11 and 7312 10 69 91) and originating in 
the People’s Republic of China. Galvanised (but not with any further coating material) seven 
wire strands in which the diameter of the central wire is identical or less than 3 % greater than 
the diameter of any of the 6 other wires shall not be covered by the definitive anti-dumping 
duty.  

Article 2 

For goods not covered by Article 1(1) of Council Regulation (EC) No 383/2009 as amended 
by this Regulation, the definitive anti-dumping duty paid or entered into the accounts pursuant 
to Article 1(1) of Regulation (EC) No 383/2009 in its initial version and the provisional anti-
dumping duties definitively collected pursuant to Article 2 of the same Regulation shall be 
repaid or remitted. Repayment and remission shall be requested from national customs 
authorities in accordance with applicable customs legislation. In cases where the time limits 
provided for in Article 236(2) of Council Regulation (EEC) No 2913/92 of 12 October 1992 
establishing the Community Customs Code4 have expired before or on the date of publication 
of this Regulation, or if they expire within six months after that date, they are hereby extended 
so as to expire six months after the date of publication of this Regulation. 

4 

OJ L 302, 19.10.1992, p. 1. 

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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. It shall apply from 14 May 2009. 

Article 3 

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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