Proposal for a COUNCIL IMPLEMENTING REGULATION imposing a definitive anti-dumping duty on imports of chamois leather originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009
Date: 2012-11-05
Institutions: European Commission
Subjects: China, animal skin, anti-dumping duty, import (EU), leather, originating product

EUROPEAN 
COMMISSION 

Brussels, 5.11.2012  
COM(2012) 634 final 

2012/0300 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION  

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

EN 

   EN 

 
 
 
 
  
 
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 chamois leather 
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  chamois  leather  falling  within  CN 
codes 4114 10 10 and 4114 10 90 originating in the People's Republic of China was 
imposed by Council Regulation (EC) No 1338/2006 (OJ L 251, 14.9.2006, p. 1.). 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2) 

CONSULTATION  OF 
ASSESSMENT 

INTERESTED 

PARTIES  AND 

IMPACT 

•  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. 

EN 

2 

   EN 

 
3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  13  September  2011,  upon  substantiated  request  of  two  Union  producers,  the 
Commission initiated an expiry review of the anti-dumping duty in force in respect 
of imports of chamois leather originating in the People’s Republic of China. 

The  review  investigation  found  that  there  is  a  likelihood  of  a  continuation  of 
dumping  and  injury  to  the  Union  industry  should  the  anti-dumping  measures  be 
allowed to expire. It was further established that continuation of measures would not 
be against the interest of the Union. 

Therefore,  it  is  suggested  that  the  Council  adopts  the  attached  proposal  for  a 
Regulation in order to prolong the existing measures, which should be published in 
the Official Journal of the European Union by 12 December 2012 at the latest. 

•  Legal basis 

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

•  Subsidiarity principle 

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

•  Proportionality principle 

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

The form of action is described in the above-mentioned basic Regulation and leaves 
no scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Union, 
national governments, regional and local authorities, economic operators and citizens 
is minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason: 

The basic Regulation does not provide for alternative options. 

4) 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget.

EN 

3 

   EN 

 
2012/0300 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING REGULATION  

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

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 ('the basic 
Regulation'), and in particular Article 9(4) and 11(2).  

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

Whereas: 

1. 

(1) 

2. 

(2) 

A. 

PROCEDURE 

Measures in force 

The  Council,  following  an  anti-dumping  investigation  ('the  original  investigation'), 
imposed by Regulation (EC) No 1338/20062 a definitive anti-dumping duty on imports 
of  chamois  leather  currently  falling  within  CN  code  4114  10  10  and  4114  10  90 
originating  in  the  People's  Republic  of  China  ('PRC'  or  the  country  concerned)  ('the 
definitive anti-dumping measures'). The measures took the form of an ad valorem duty 
at the level of 58.9%. 

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 14 June 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  the  UK  Leather  Federation  (‘the 
applicant’),  representing  more  than  50%,  of  the  total  Union  production  of  chamois 
leather. 

1 
2 
3 

OJ L 343, 22.12.2009, p. 51. 
OJ L 251, 14.9.2006, p. 1. 
OJ C 19, 20.1.2011, p. 9. 

EN 

4 

   EN 

 
                                                 
(3) 

3. 

(4) 

The application  submitted  was  based on the grounds  that  the  expiry  of  the  measures 
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  13 
September 2011, by a notice published in the Official Journal of the European Union4 
('the Notice of initiation'), the initiation of an expiry review pursuant to Article 11(2) 
of the basic Regulation. 

4. 

Investigation 

4.1. 

Review investigation period and period considered 

(5) 

The investigation of a continuation 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  the  likelihood  of  a  continuation  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 

(6) 

(7) 

(8) 

(9) 

The  Commission  officially  advised  the  applicant  and  other  known  Union  producers, 
exporting producers in the country concerned, unrelated importers, users in the Union 
known  to  be  concerned,  and  the  representatives  of  the  exporting  country  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 out in 
the Notice of initiation. 

In  view  of  the  apparent  large  number  of  Union  producers,  exporting  producers  and 
unrelated  importers,  it  was  considered  appropriate,  in  accordance  with  Article  17  of 
the basic Regulation, to examine whether sampling should be used. In order to enable 
the Commission to decide whether sampling would be necessary and, if so, to select a 
sample, those parties were requested, pursuant to Article 17 of the basic Regulation, 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. 

Sampling  for  Union  producers  has  been  applied  and  out  of  three  known  Union 
producers two groups of producers have been sampled. 

Six  known  exporting  producers  in  the  PRC  were  contacted.  However,  none  of  these 
companies cooperated in the investigation. 

(10)  With regard to importers, 35 unrelated importers of chamois leather in the Union were 
identified  and  invited  to  provide  sampling  information.  Only  two  of  them  came 
forward  and  were  willing  to  cooperate  in  the  current  review.  Consequently,  no 
sampling was necessary for unrelated importers. 

4 

OJ C 270, 13.9.2011, p. 6. 

EN 

5 

   EN 

 
                                                 
(11)  The Commission sent questionnaires to all parties known to be concerned and to those 
who  made  themselves  known  within  the  deadlines  set  in  the  Notice  of  initiation. 
Replies  were  received  from  the  sampled  groups  of  Union  producers  and  two 
cooperating  unrelated  importers.  None  of  the  exporting  producers  in  the  PRC 
cooperated  in  the  review  and  no  relevant  consumer  association  supplied  the 
Commission  with  any  information  or  made  itself  known  in  the  course  of  the 
investigation. 

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

Union producers 

– 

Hutchings&Harding Ltd, Cambridge, United Kingdom; and 

–  Marocchinerie e Scamoscerie Italiane Spa, Turin, Italy. 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

(13)  The  product  concerned  by  this  review  is  the  same  as  the  one  in  the  original 
investigation,  namely  chamois  leather  and  combination  chamois  leather,  whether  or 
not  cut  to  shape,  including  crust  chamois  leather  and  combination  crust  chamois 
leather  originating  in  the  People’s  Republic  of  China  ('the  product  concerned'), 
currently falling within CN codes 4114 10 10 and 4114 10 90. 

(14)  The  investigation  confirmed  that,  as  in  the  original  investigation,  the  product 
concerned and the products manufactured and sold on the domestic market in the PRC, 
as well as those manufactured and sold in the Union by the Union producers, have the 
same  basic  physical  and  technical  characteristics  as  well  as  the  same  uses  and  are, 
therefore,  considered  to  be  like  products  within  the  meaning  of  Article  1(4)  of  the 
basic Regulation. 

C. 

LIKELIHOOD OF A CONTINUATION OF DUMPING 

(15) 

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 of dumping. 

1. 

Preliminary remarks 

(16)  As stated in recital (9) above, none of the six Chinese exporting producers contacted 
cooperated with the investigation and findings on the likelihood of a continuation of 
dumping had to be based on facts available, in particular information submitted by the 
applicant,  including  information  in  the  review  request,  and  statistics  in  accordance 
with Article 18 of the basic Regulation. 

EN 

6 

   EN 

 
2. 

Dumping of imports during the RIP 

2.1. 

Analogue country 

(17) 

(18) 

In  accordance  with  the  provisions  of  Article  2(7)(a)  of  the  basic  Regulation,  normal 
value  had  to  be  determined  on  the  basis  of  the  price  or  constructed  normal  value 
obtained 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. 

In the original investigation, the USA served as an analogue country for the purpose of 
establishing  the  normal  value.  The  only  chamois  leather  producer  operating  in  the 
USA at the time of the original investigation has since closed its production site. Since 
then its chamois leather has been imported from a joint venture company in Turkey. 
As there is no more significant production of chamois leather left in the United States 
other  countries,  i.e.  New  Zealand,  Turkey  and  India,  were  envisaged  as  analogue 
countries in the Notice of initiation of the present review. Potential analogue country 
producers  located  in  India,  Turkey  and  New  Zealand  were  contacted,  but  no 
cooperation could be obtained. 

(19)  Regarding the normal value, in the absence of cooperation from an analogue country 
producer, it was determined on the basis of information on the average price of Indian 
imports into the Union as available in the import statistics from Eurostat for the RIP. 
(India  being  the  country  with  the  highest  volume  of  imports  into  the  Union). 
Regarding the export price, in the absence of cooperation from the exporting producers 
from  the  PRC,  it  was  based  on  the  information  on  the  average  price  of  the  Chinese 
imports into the Union as available in the import statistics from Eurostat for the RIP. 
On  that  basis  the  dumping  margin  was  established  as  the  difference  between  the 
average  price  of  the  Indian  imports  into  the  Union  used  as  normal  value  and  the 
average  price  of  the  Chinese  imports  used  as  export  price.  The  dumping  calculation 
resulted in a dumping margin of 64%. 

2.2. 

Development of imports should measures be repealed 

(20)  Further to the analysis of the existence of dumping during the RIP, the likelihood of 
continuation of dumping should measures be repealed was investigated. Given the fact 
that no exporting producer in the PRC cooperated in this investigation, the conclusions 
below  rely  on  facts  available  in  accordance  with  Article  18  of  the  basic  Regulation, 
namely information provided in the review request, data provided by the applicant, as 
well as Eurostat data. 

(21) 

In  this  respect,  the  following  elements  were  analysed:  development  of  imports  from 
the PRC, production and spare capacity of the exporting producers and attractiveness 
of the Union market in terms of prices and volumes. 

(22)  As  indicated  in  recital  (32)  below,  the  price  comparison  between  imports  from  the 
PRC  in  the  RIP  and  Union  industry  prices  shows  significant  undercutting  (51.6%). 
The Union market continues to be attractive for Chinese exporting producers, both in 
terms  of  price  and  volumes.  This  is  reinforced  by  the  fact  that  there  are  significant 

EN 

7 

   EN 

 
production  capacities  available  in  the  PRC  since  the  imposition  of  measures  when 
imports from the PRC were reduced. Already prior to the imposition of measures the 
PRC tripled its Union market share for this product - from 10.7% market share of the 
Union  market  in  2001  to  31.7%  in  2004.  Furthermore,  Chinese  export  prices  to  the 
Union are still higher than those on the markets of certain other third countries making 
the Union market attractive to the Chinese exporting producers. 

(23)  The foregoing analysis demonstrates that Chinese exports continued to enter the Union 
market  at  dumped  prices  with  very  high  dumping  margins.  Given  most  notably  the 
analysis of price levels in the Union as well as capacities available in the PRC, it can 
be  concluded  there  is  a  likelihood  of  a  continuation  of  dumping  should  measures  be 
removed. 

1. 

Union industry 

D. 

INJURY 

(24)  Within  the  Union,  the  like  product  is  manufactured  by  three  (groups  of)  companies. 
Two of them are represented by the applicant and are based in the UK and Italy with 
some  processing  in  Poland  and  Romania.  A  third  producer  is  based  in  Italy  and  is 
supporting the request. All other chamois leather producers are reported to have closed 
their manufacturing sites since 2006 when the original measures were introduced. 

(25)  The total Union production within the meaning of Article 4(1) of the basic Regulation 
was  established  on  the  basis  of  the  questionnaire  replies  from  the  sampled  Union 
producers  and  the  basic  macro  data  submitted  by  the  third  producer  in  the 
standing/sampling exercise. Those companies constitute the Union industry within the 
meaning of Article 4(1) and Article 5(4) of the basic Regulation and will be thereafter 
referred to as the 'Union industry. The two sampled producers account for 80% of the 
Union production. 

(26)  Since the microeconomic injury indicators are based on data of two companies only, 
they are presented in an indexed format in order to preserve confidentiality, pursuant 
to Article 19 of the basic Regulation. 

2. 

Consumption in the Union market 

(27)  Union  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the  Union 

industry on the Union market and import data from Eurostat. 

(28) 

It  is  also  noted  that  since  2010  there  have  been  significant  volumes  of  low-priced 
chamois  leather  exported  to  the  rest  of  the  Union  via  Spain  (some  31%  in  terms  of 
market share). It is noted that Spain has no longer any production of the like product 
and the sales of chamois leather from Spain to the rest of the Union exceed imports. 
Those  volumes  have  been  added  to  the  consumption  figure.  Between  2008  and  the 
RIP, Union consumption increased by 26%, with the main increase occurring between 
2009 and 2010. 

EN 

8 

   EN 

 
Table 1 

2008 
22,107 
100 

2009 
22,300 
101 

2010 
28,434 
129 

RIP 
27,827 
126 

Total Union consumption (`000 sq ft) * 
Index (2008=100) 

* Data from Eurostat and questionnaire replies 

3. 

Imports from the PRC 

(a) Volume and market share 

(29)  Following  the  imposition  of  measures  in  2006,  the  Chinese  imports  decreased 
significantly and are still rather limited, corresponding to a market share of some 4% 
during  the  RIP.  Notwithstanding,  over  the  period  considered  the  volume  of  imports 
originating  in  the  PRC  has  increased  by  9  percentage  points  and  reached  a  level  of 
1,103,330  square  feet  during  the  RIP.  However,  Chinese  imports  did  not  increase  at 
the  same  rate  as  Union  consumption  and  the  market  share  of  Chinese  imports 
decreased over the period considered. 

Table 2 

2008 

2009 

2010 

RIP 

Volume of imports from the country 
concerned  
(`000 sq ft)* 
Index (2008=100) 
Market share of imports from the country 
concerned * 

1,010.00
100 

786.67 
78 

5% 

4% 

883.33  1,103.33

87 

3% 

109 

4% 

* Data from Eurostat 

(b) Prices 

(i) Price evolution 

(30)  The  average  price  of  the  Chinese  imports  have  varied  over  the  period  considered. 
Compared  to  2008,  the  price  initially  increased  in  2009  before  dropping  by  13%  in 
2010 and climbing back to its 2008 level during the RIP. 

Table 3 

Price of imports from the country concerned 
 (EUR/sq ft) * 
Index (2008=100) 

2008 

2009 

2010 

RIP 

0.45 
100 

0.61 
136 

0.39 
87 

0.46 
102 

* Data from Eurostat  

(ii) Price undercutting 

(31)  For the purpose of analysing price undercutting, the weighted average sales prices of 
the Union industry to unrelated customers on the Union market were compared to the 

EN 

9 

   EN 

 
 
 
 
corresponding weighted average CIF prices of exporters from the PRC. Therefore, the 
sales  prices  of  the  Union  industry  have  been  adjusted  in  particular  for  credit  costs, 
delivery  costs,  packaging  and  commissions  to  an  ex-works  level.  The  CIF  prices  of 
exports from the PRC have been obtained from Eurostat and adjusted to cover all costs 
related  to  customs  clearance,  i.e.  customs  tariff  and  post  importation  costs  (landed 
price). 

(32)  The  comparison  showed  that  during  the  RIP  the  imports  of  the  product  concerned 

undercut the Union industry's prices by around 51.6%. 

4. 

Economic situation of the Union industry 

(33)  Pursuant to Article 3(5) of the basic Regulation, the examination of the impact of the 
dumped imports on the Union industry included an evaluation of all economic factors 
and  indices  having  a  bearing  on  the  state  of  the  Union  industry  during  the  period 
considered. 

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

the following two levels: 

–  The macroeconomic indicators (production, capacity, sales volume, market share, 
growth, employment, productivity, average unit prices and magnitude of dumping 
margins and recovery from the effects of past dumping) were assessed at the level 
of  the  whole  Union  industry,  on  the  basis  of  the  information  collected  from  the 
full questionnaire replies by the sampled companies and the macro data provided 
by the third Union producer. 

–  The analysis of microeconomic indicators (stocks, wages, profitability, return on 
investments, cash flow, ability to raise capital and investments) was based on the 
information derived from the duly verified questionnaire replies provided by the 
sampled  companies.  This  information  is  considered  to  be  representative  of  the 
whole Union industry. Given that these indicators relate to two companies  only, 
the  absolute  figures  cannot  be  disclosed  for  confidentiality  reasons  pursuant  to 
Article 19 of the basic Regulation and only indices are provided below. 

(a) Macroeconomic indicators 

4.1. 

Production 

(35)  Since  2008  the  Union  production  decreased  continuously  and  was  ending  up  12% 
below its 2008 level during the RIP, despite the fact that consumption was increasing 
at the same time by 26%. 

Production (`000 sq ft) * 
Index (2008=100) 

* Data from questionnaire replies 

Table 4 

2008 
7,659 
100 

2009 
7,223 
94 

2010 
7,100 
93 

RIP 
6,753 
88 

4.2. 

Production capacity and capacity utilisation rates 

EN 

10 

   EN 

 
 
(36)  Production  capacity  remained  stable  between  2008  and  the  RIP.  While  capacity 
utilisation was already at a low level in 2008, the decrease in production between 2008 
and the RIP led to a further significant decrease of capacity utilisation by 7 percentage 
points between 2008 and the RIP. 

Table 5 

2008 
13,290 
100 
58% 
100 

2009 
13,290 
100 
54% 
94 

2010 
13,290 
100 
53% 
93 

RIP 
13,290 
100 
51% 
88 

Production capacity (`000 sq ft) * 
Index (2008=100) 
Capacity utilisation* 
Index (2008=100) 

* Data from questionnaire replies 

4.3. 

Sales volume 

(37)  The sales by the Union industry on the Union market to unrelated customers increased 
by 5% between 2008 and 2009, before dropping 2% in 2010 and rising again during 
the RIP. Over all, the sales volume increase by 9% over the period considered. 

Table 6 

Union Sales volume to unrelated customers 
(`000 sq ft) * 
Index (2008=100) 

* Data from questionnaire replies 

4.4. 

Market share 

2008 

2009 

2010 

RIP 

5,144 
100 

5,393 
105 

5,324 
103 

5,627 
109 

(38)  Between  2008  and  2009  the  Union  industry  managed  to  slightly  regain  1%  market 
share from its already low level of 23% in 2008, before its market share declined by 4 
percentage points to only 20% in the RIP. 

Table 7 

Market share of the Union industry* 
Index (2008=100) 

* Data from Eurostat and questionnaire replies 

4.5. 

Growth 

2008 
23% 
100 

2009 
24% 
104 

2010 
19% 
80 

RIP 
20% 
87 

(39)  Between  2008  and  the  RIP,  whilst  the  Union  consumption  increased  by  26%,  the 
volume of sales by the Union producers on the Union market increased only by 9%, 
and  the  Union  producers'  market  share  decreased  by  3  percentage  points.  It  is  thus 
concluded  that  the  Union  producers  could  hardly  benefit  from  the  growth  of  the 
market. 

4.6. 

Employment 

EN 

11 

   EN 

 
 
 
 
(40)  After a first significant 9% drop of employment between 2008 and 2009, the level of 
employment of the Union industry continued to decline. From 74 employees in 2008 
only 59 employees are left in the RIP, which means an overall drop of 19%. 

Table 8 

Employment product concerned (persons)* 
Index (2008=100) 

* Data from questionnaire replies 

4.7. 

Productivity 

2008 
74 
100 

2009 
67 
91 

2010 
62 
84 

RIP 
59 
81 

(41)  Productivity  of  the  Union  industry's  workforce,  measured  as  output  per  person 
employed per year, increased by 9% between 2008 and the RIP. This is a reflection of 
the fact that employment declined at a faster pace than the production. 

Productivity (sq ft per employee) 
Index (2008=100) 

* Data from questionnaire replies 

Table 9 

2008 

2009 

2010 

RIP 

104,031 107,536 114,512  113,655

100 

103 

110 

109 

4.8. 

Sales prices and factors affecting domestic prices 

(42)  Unit  sales  prices  of  the  Union  industry  have  remained  stable  between  2008  and  the 
RIP. As mentioned above the Union industry prices were significantly undercut by the 
dumped  Chinese  imports.  However,  the  maintained  prices  level  has  been  at  the 
expense of the Union Industry's market share. 

Table 10 

2008 
1.01 
100 

2009 
0.97 
96 

2010 
1.01 
100 

RIP 
1.01 
100 

Unit price Union market (EUR/sq ft)* 
Index (2008=100) 

* Data from questionnaire replies 

4.9. 

Magnitude of dumping margin 

(43)  Given the volume, market share and prices of the imports from the PRC, the impact on 
the  Union  industry  of  the  actual  margin  of  dumping  cannot  be  considered  to  be 
negligible. 

4.10.  Recovery from the effects of past dumping 

(44)  The indicators examined above show that, notwithstanding the imposition of the anti-
dumping measures in 2006, the economic and financial situation of the Union industry 
has  remained  substantially  fragile  and  injurious.  Thus,  no  actual  recovery  from  the 
past dumping could be established and it is considered that the Union industry remains 
vulnerable to the injurious effect of any dumped imports in the Union market. 

EN 

12 

   EN 

 
 
 
 
(b) Microeconomic indicators 

4.11. 

Stocks 

(45)  The  level  of  closing  stocks  of  the  Union  industry  increased  significantly  by  31% 
between 2008 and the RIP. Further analysis allowed the fine-tuning of the assessment 
of the evolution on the number of months of production being stocked. In this respect, 
in 2008 the sampled producers kept around five months of production (43%) but the 
pressure  of  the  dumped  imports  forced  them  to  increase  stocks  to  more  than  seven 
months  of  production  (corresponding  to  63%  of  total  yearly  production)  during  the 
RIP. The conclusion that the trend of stocks shows an injurious situation is therefore 
confirmed. 

Table 11 

2008 

2009 

2010 

RIP 

Business confidential data 

100 

116 

135 

131 

Closing stock (sq ft)* 
Index (2008=100) 

* Data from questionnaire replies 

4.12.  Wages 

(46)  The average wage per employee was stable between 2008 and 2009 as well as between 
2010  and  the  RIP.  The  sharp  increase  by  20%  between  2009  and  2010  is  due  to  a 
significant  increase  of  labour  cost  by  two  of  the  sampled  companies  despite  the  fact 
that employment has been reduced. 

Table 12 

Annual labour cost per employee ('000 
EUR)* 
Index (2008=100) 

* Data from questionnaire replies 

4.13. 

Investments 

2008 

2009 

2010 

RIP 

Business confidential data 

100 

100 

120 

120 

(47)  The sampled companies' annual investments in the production of the like product were 
predominantly for the maintenance and increased by 21% between 2008 and the RIP. 
The  sharp  increase  between  2010  and  the  RIP  is  due  to  the  purchase  of  some 
equipment by one of the sampled companies in 2011. 

Net investments (EUR)* 
Index (2008=100) 

* Data from questionnaire replies 

Table 13 

2008 

2009 

2010 

RIP 

Business confidential data 

100 

102 

72 

121 

4.14. 

Profitability and return on investments 

EN 

13 

   EN 

 
 
 
 
(48)  The  Union  industry  was  loss-making  throughout  the  whole  period  considered. 
Between  2008  and  the  RIP,  the  losses  (both  in  absolute  terms  and  expressed  as 
percentage of turnover) more than doubled. 

(49)  Similarly, the return on investments (‘ROI’) was negative throughout the whole period 
considered, and worsened by -131 percentage points between 2008 and the RIP. 

Table 14 

Net Profit of EU sales to unrelated customers 
(% of net sales)* 
Index (2008=100) 
ROI (net profit in % of net book value of 
investments)* 
Index (2008=100) 

* Data from questionnaire replies 

4.15.  Cash flow and ability to raise capital 

2008 

2009 

2010 

RIP 

Business confidential data 

-100 

-95 

-73 

-203 

Business confidential data 

-100 

-95 

-73 

-231 

(50)  The  net  cash-flow  from  operating  activities  remained  negative  throughout  the  whole 
period considered, and worsened by nearly -300 percentage points between 2008 and 
the RIP. 

Cash flow (EUR)* 
Index (2008=100) 

* Data from questionnaire replies 

Table 15 

2008 

2009 

2010 

Business confidential data 

-100 

-115 

-77 

RIP 

-398 

(51)  There  were  no  indications  that  the  Union  industry  encountered  difficulties  in  raising 

capital. 

(c) Impact of dumped imports and other factors 

4.16. 

Impact of the dumped imports 

(52)  Following the imposition of measures, the Chinese imports decreased significantly and 
are  still  rather  limited,  corresponding  to  a  market  share  of  some  4%  during  the  RIP. 
The  price  comparison  between  these  imports  and  Union  industry  prices  however 
shows significant undercutting (51.6%). Given that chamois leather is a standardised 
product,  that  the  product  scope  is  very  limited  and  Chinese  goods  are  in  terms  of 
quality similar to the European, the relatively small market share of Chinese imports 
combined with significant undercutting points to significant impact those imports have 
on the situation of the Union industry. 

4.17. 

Imports from other countries 

(53)  There  are  significant  imports  from  India,  Turkey  and  New  Zealand  as  well  as  some 
imports from other countries, which altogether account for a market share of 46% in 
the RIP (down from 60% in 2008). 

EN 

14 

   EN 

 
 
 
(54)  With  regard  to  imports  from  India,  it  is  noted  that  their  volumes  are  significant  and 
that they have increased their market share from 11% in 2008 to 16% in the RIP. At 
the same time, the average prices of Indian imports are somewhat below the average 
prices of the Union producers. Given the significant volumes and price differential it is 
considered  that  Indian  imports  are  contributing  to  some  extent  to  the  negative 
economic situation of the Union industry. At the same time, it is noted that prices of 
Indian  imports  are  more  than  60%  higher  than  the  dumped  Chinese  imports. 
Consequently, it is considered that this limited impact on the current situation of the 
Union  industry  would  in  all  likelihood  not  break  the  causal  link  between  dumped 
imports and injury  in  case of the likely increase  in the dumped  Chinese  imports and 
further deterioration of the Union industry's situation resulting therefrom if measures 
would be repealed. 

Table 16 

Volume of imports from India (`000 sq 
ft)* 
Market share of imports from India* 
Average price of imports from India 
(EUR/sq ft) 

2008 

2009 

2010 

RIP 

2,330.00 
11% 

2,123.33 
10% 

4,276.67 
15% 

4,436.67 
16% 

0.79 

0.82 

0.66 

0.75 

* Data from Eurostat and questionnaire replies 

(55)  There are also significant imports from Turkey, which account for a market share of 
10%  in  the  RIP  (down  from  18%  in  2008).  At  the  same  time  the  average  prices  of 
these imports are much higher than the chamois leather from the PRC and very close 
to the price level of the Union industry. Given the declining trend of the imports from 
Turkey and their relatively high prices, it is considered that they would not break the 
causal  link  between  dumped  imports  and  injury  in  case  of  the  likely  increase  in  the 
dumped  Chinese  imports  and  further  deterioration  of  the  Union  industry's  situation 
resulting therefrom if measures would be repealed. 

Table 17 

Volume of imports from Turkey (`000 
sq ft)* 
Market share of imports from Turkey* 
Average price of imports from Turkey 
(EUR/sq ft) 

2008 

2009 

2010 

RIP 

4,063.33 
18% 

2,623.33 
12% 

2,933.33 
10% 

2,700.00 
10% 

0.77 

0.89 

1.05 

1.20 

* Data from Eurostat and questionnaire replies 

(56)  There  are  also  significant  imports  from  New  Zealand,  which  account  for  a  market 
share  of  7%  in  the  RIP  and  they  have  increased  from  3%  in  2008.  However,  the 
average  prices  of  these  imports  are  much  higher  than  the  chamois  leather  from  the 
PRC and even higher than the price level of the Union industry. Given the relatively 
high  prices  of  imports  from  New  Zealand,  it  is  considered  that  they,  too,  would  not 
break the causal link between dumped imports and injury in case of the likely increase 
in  the  dumped  Chinese  imports  and  further  deterioration  of  the  Union  industry's 
situation resulting therefrom if measures would be repealed. 

EN 

15 

   EN 

 
 
 
Table 18 

Volume of imports from New Zealand 
(`000 sq ft)* 
Market share of imports from New 
Zealand* 
Average price of imports from New 
Zealand (EUR/sq ft) 

* Data from Eurostat and questionnaire replies 

2008 

2009 

2010 

RIP 

716.67 

2,426.67 

1,966.67 

1,883.33 

3% 

1.29 

11% 

1.43 

7% 

1.43 

7% 

1.48 

(57) 

Imports from the rest of the world account for a market share of 13% in the RIP (down 
from  27%  in  2008).  At  the  same  time  the  average  prices  of  these  imports  are  much 
higher than the chamois leather from the PRC and are close to the price level of the 
Union  industry.  Given  the  declining  trend  of  the  imports  from  rest  of  the  world  and 
their  relatively  high  prices  compared  to  chamois  leather  imports  from  the  PRC,  it  is 
considered  that  they,  too,  would  not  break  the  causal  link  between  dumped  imports 
and  injury  in  case  of  the  likely  increase  in  the  dumped  Chinese  imports  and  further 
deterioration  of  the  Union  industry's  situation  resulting  therefrom  in  case  measures 
would be repealed. 

Table 19 

Volume of imports from rest of the 
world (`000 sq ft)* 
Market share of imports from rest of 
the world* 
Average price of imports from rest of the 
world (EUR/sq ft) 

2008 

2009 

2010 

RIP 

5,896.67 

4,013.33 

4,480.00 

3,556.67 

27% 

0.63 

18% 

0.84 

16% 

0.81 

13% 

0.84 

* Data from Eurostat and questionnaire replies 

(58) 

Imports  from  all  other  third  countries  taken  together  account  for  a  market  share  of 
46%  in  the  RIP  (down  from  60%  in  2008).  At  the  same  time  the  average  prices  of 
these imports are much higher than the chamois leather from the PRC and very close 
to the price level of the Union industry. Given the declining trend of the imports from 
third  countries  and  their  relatively  high  prices,  it  is  considered  that  they,  taken  as  a 
whole,  would  also  not  break  the  causal  link  between  dumped  imports  and  injury  in 
case of the likely increase in the dumped Chinese imports and further deterioration of 
the Union industry's situation resulting therefrom if measures would be repealed. 

Table 20 

Volume of imports from other 
countries (sq ft)* 
Index (2008=100) 
Market share of imports from other 
countries* 

Average price of imports from other 

2008 

2009 

2010 

RIP 

13,006.67 
100 

11,186.67 
86 

13,656.67  
105 

12,576.67 
97 

60% 

0.74 

51% 

0.98 

49% 

0.91 

46% 

0.98 

EN 

16 

   EN 

 
 
 
 
 
 
 
 
 
countries (EUR/sq ft) 

5. 

Conclusion on the situation of the Union industry  

(59)  There are only three producers (all of them SMEs) left in the Union. All other chamois 
leather  producers  are  reported  to  have  closed  their  manufacturing  sites  since  2006 
when the original measures were introduced. That can be seen as developing from the 
increased  pressure  that  the  Chinese  dumped  imports  have  been  exercising  on  the 
Union market, even in a situation of increasing consumption. 

(60)  The injury analysis shows that the situation of the Union industry deteriorated in the 
period  considered.  In  particular,  production  dropped  by  some  12%  and  even  if  the 
sales increased slightly it was less than the increase in consumption and consequently 
the market share of the Union producers decreased by 3 percentage points. 

(61)  At  the  same  time  the  analysis  of  microeconomic  indicators  show  that  profitability, 
return  on  investment  and  cash  flow  of  the  Union  industry  remained  negative 
throughout the period considered and further deteriorated towards the RIP. 

(62) 

Imports  from  India,  Turkey,  New  Zealand  and  the  rest  of  the  world  have  been 
analysed.  With  regard  to  each  of  those  imports  flows,  as  well  as  all  of  them  taken 
together,  it  is  considered  that  they  would  not  break  the  causal  link  between  dumped 
imports  and  injury in case of the likely  increase  in  the dumped  Chinese  imports and 
further  deterioration  of  the  Union  industry's  situation  resulting  therefrom  in  case 
measures would be repealed. 

(63) 

In the light of the foregoing, it is concluded that the Union industry has continued to 
suffer material injury within the meaning of Article 3(5) of the basic Regulation and 
that  its  situation  is  very  fragile  and  vulnerable  and  far  from  the  levels  that  could  be 
expected had it recovered from the injury found in the original investigation. 

(64) 

It  is  also  concluded  that  the  injurious  situation  of  the  Union  industry  has  been 
predominantly  caused  by  the  continued  existence  (even  if  in  lower  quantities)  of  the 
dumped and low priced imports from the PRC. 

E. 

LIKELIHOOD OF A CONTINUATION OF INJURY 

1. 

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

(65)  Although  the  import  volumes  from  the  PRC  decreased  significantly  after  the 
imposition  of  measures  in  2006,  it  is  considered  that  there  remain  significant 
capacities in the PRC (see recital 22). These spare capacities may be easily diverted to 
the Union market in case measures would be repealed.  

(66) 

It  is  considered  that  in  case  measures  would  be  repealed,  the  Chinese  exporting 
producers would in all likelihood strive to regain any lost market share in the Union. 
Indeed,  the  significant  undercutting  established  by  the  investigation  shows  that  the 
level of prices in the Union makes it a very interesting market for the Chinese imports 
(see recital 22).  

EN 

17 

   EN 

 
 
2. 

Conclusion on the continuation of injury 

(67)  On this basis, it is concluded that the repeal of measures on the imports from the PRC 
would in all likelihood result in the continuation of injury to the Union industry. 

1. 

Introduction 

F. 

UNION INTEREST 

(68) 

(69) 

In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether  the 
maintenance of the existing anti-dumping measures would not be against the interest 
of  the  Union  as  a  whole.  The  determination  of  the  Union  interest  was  based  on  an 
appreciation of the various interests involved, i.e. those of the Union industry, on one 
hand, and of importers and users on the other hand. 

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 for the assessment of any undue negative 
impact on the parties concerned by the current anti-dumping measures.  

(70)  On this basis it was examined whether, despite the conclusions on the likelihood of a 
continuation of injurious dumping, it could be clearly concluded that it would not be in 
the Union interest to maintain measures in this particular case.  

2. 

Interest of the Union industry 

(71)  The  Union  industry,  composed  by  SMEs,  has  consistently  lost  market  share  and  has 
suffered  material  injury  during  the  period  considered.  Should  measures  be  repealed, 
the Union industry would in all likelihood be in an even worse situation. 

3. 

Interest of importers  

(72)  There  are  two  unrelated  importers  cooperating  in  the  investigation.  The  chamois 
leather  related  business  constitutes  only  a  limited  part  of  their  respective  turnovers. 
There  are  no  indications  that  a  continuation  of  measures  would  have  any  significant 
negative effect on their activities.  

4. 

Interest of users and consumers  

(73)  No user or consumer associations made themselves known within the time-limit set in 
the  notice  of  initiation,  which  was  also  the  case  in  the  original  investigation.  Given 
that in the original investigation it was considered that the measures in question would 
not  unduly  affect  the  interest  of  these  parties  and  considering  their  continuous  non-
cooperation,  it  can  be  concluded  that  their  interest  will  remain  unaffected  by  the 
maintenance of the measures. Indeed, the existence of significant imports from other 
sources  and  at  competitive  prices  will  ensure  that  users  and  consumers  continue  to 
have a wide choice of different suppliers of the product in question and at reasonable 
prices. 

5. 

Conclusion  

EN 

18 

   EN 

 
(74)  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.  

G. 

ANTI-DUMPING MEASURES 

(75)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be maintained. They 
were  also  granted  a  period  to  submit  comments  subsequent  to  that  disclosure.  The 
submissions and comments were duly taken into consideration where warranted.  

(76) 

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  chamois  leather 
originating in the PRC should be maintained. It is recalled that these measures consist 
of an ad valorem duty at the level of 58.9%, 

HAS ADOPTED THIS REGULATION: 

Article 1 

A definitive anti-dumping duty is hereby imposed on imports of chamois leather and 
1. 
combination chamois leather, whether or not cut to shape, including crust chamois leather and 
combination crust chamois leather, currently falling within CN codes 4114 10 10 and 4114 10 
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-

2. 
frontier price, before duty, for the products described in paragraph 1 shall be 58.9%. 

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

3. 
apply. 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2 

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

Done at Brussels,  

For the Council 
The President 

EN 

19 

   EN