Notice of initiation of a partial interim review of the anti-subsidy measures applicable to imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries and with a load index exceeding 121 originating in the People’s Republic of China
Date: 2023-12-15
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: China, bus, commercial vehicle, countervailing charge, import (EU), originating product, pneumatic tyre








C_202301491EN.000101.fmx.xml












Official Journal of the European Union


EN
Series C













C/2023/1491


15.12.2023






Notice of initiation of a partial interim review of the anti-subsidy measures applicable to imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries and with a load index exceeding 121 originating in the People’s Republic of China
(C/2023/1491)

The European Commission (‘the Commission’) received a request for a partial interim review pursuant to Article 19 of Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports from countries not members of the European Union (1) (‘the basic Regulation’).
1.   Request for review

The request was lodged on 11 September 2023 by the GITI Group (‘the applicant’).
The review is limited in scope to the examination of how the internal restructuring of the applicant affects the level of subsidisation as far as the applicant is concerned.
2.   Product under review

The product subject to this review is certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 (‘the product under review’). The product concerned by this review is the product under review originating in the People’s Republic of China (‘the PRC’ or ‘the country concerned’), currently falling under CN codes 4011 20 90 and ex 4012 12 00 (TARIC code 4012120010). The CN and TARIC codes are given for information only and without prejudice to a subsequent change in the tariff classification.
3.   Existing measures

By Commission Implementing Regulation (EU) 2018/1690 (2) (‘the original investigation’), the Commission imposed a definitive countervailing duty on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People’s Republic of China. In the original investigation, a countervailing duty was imposed in the form of a fixed duty amount of 11,07 EUR/unit for the applicant.
Commission Implementing Regulation (EU) 2018/1690 also amended Commission Implementing Regulation (EU) 2018/1579 (3), and imposed a definitive anti-dumping duty on the same product, of 36,89 EUR/unit for the applicant.
Following the judgment of the General Court in joined cases T-30/19 and T-72/19, the countervailing (4) and anti-dumping measures (5) were reimposed in April 2023. The measures currently in force for the applicant are a countervailing duty of 11,07 EUR/unit and an anti-dumping duty of 35,74 EUR/unit.
4.   Grounds for the review

The request is based on sufficient evidence provided by the applicant that, as far as subsidisation of the applicant is concerned, the circumstances on the basis of which the existing measures were imposed have changed and that these changes are of a lasting nature.
The request for review arises due to the internal restructuring of the GITI Group. In this regard, in April 2021 it was decided that Giti Radial Tire (Anhui) Company Ltd would absorb the activities of Giti Tire (Anhui) Company Ltd. Giti Tire (Anhui) Company Ltd then prepared for its dissolution and stopped all its production and sales activities of the product concerned, which were taken over by Giti Radial Tire (Anhui) Company Ltd. Giti Tire (Anhui) Company Ltd., sampled in the original investigation, produced and sold the product under investigation, whereas Giti Radial Tire (Anhui) Company Ltd., was also sampled but only sold products (tyres for passenger cars) that were not under the original investigation. The restructuring process was completed by the end of June 2023.
Moreover, Giti Tire (Yinchuan) Company Ltd, which was also sampled in the original investigation and received the same individual anti-dumping and countervailing duty as Giti Tire (Anhui) Company Ltd, has ceased its production operations.
The legal documentation of the merger and ceasing of production indicates that, as a result of this internal restructuring, the beneficiaries of the subsidies have changed.
5.   Procedure

Having determined, after informing the Member States, that sufficient evidence exists to justify the initiation of a partial interim review limited to the examination of how the internal restructuring of the applicant affects the level of subsidisation, the Commission hereby initiates a review in accordance with Article 19 of the basic Regulation.
The review will assess the need for the continuation, removal or amendment of the existing countervailing measures in respect of the applicant.
5.1.   Review investigation period

The investigation will cover the period from 1 July 2022 to 30 June 2023 (‘the review investigation period’).
5.2.   Investigating the exporting producer concerned

In order for the Commission to obtain the information it deems necessary for its investigation, the applicant and its related (6) companies are requested to fill in a questionnaire within 37 days from the date of publication of this Notice.
A copy of the above-captioned questionnaire for the applicant is available in the file for inspection by interested parties and on DG Trade’s website https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2701.
5.3.   Interested parties

In order to participate in the investigation, interested parties, such as exporting producers, Union producers, importers and their representative associations, users and their representative associations, trade unions and representative consumer organisations first have to demonstrate that there is an objective link between their activities and the product under review.
Being considered as an interested party is without prejudice to the application of Article 28 of the basic Regulation.
Access to the file available for inspection for interested parties is made via Tron.tdi at the following address: https://tron.trade.ec.europa.eu/tron/TDI. Please follow the instructions on that page to get access (7).
5.4.   Other written submissions

Subject to the provisions of this Notice, all interested parties are hereby invited to make their views known, submit information and provide supporting evidence. Unless otherwise specified, this information and supporting evidence must reach the Commission within 37 days of the date of publication of this Notice.
5.5.   Possibility to be heard by the Commission investigation services

All interested parties may request to be heard by the Commission investigation services. Any request to be heard must be made in writing and must specify the reasons for the request as well as a summary of what the interested party wishes to discuss during the hearing. The hearing will be limited to the issues set out by the interested parties in writing beforehand.
In principle, hearings will not be used to present factual information which is not yet on file. Nevertheless, in the interest of good administration and to enable Commission services to progress with the investigation, interested parties may be directed to provide new factual information after a hearing.
5.6.   Instructions for making written submissions and sending completed questionnaires and correspondence

Information submitted to the Commission for the purpose of trade defence investigations shall be free from copyrights. Interested parties, before submitting to the Commission information and/or data which is subject to third party copyrights, must request specific permission to the copyright holder explicitly allowing the Commission a) to use the information and data for the purpose of this trade defence proceeding and b) to provide the information and/or data to interested parties to this investigation in a form that allows them to exercise their rights of defence.
All written submissions, including the information requested in this Notice, completed questionnaires and correspondence provided by interested parties for which confidential treatment is requested shall be labelled ‘Sensitive’
                (8). Parties submitting information in the course of this investigation are invited to reason their request for confidential treatment.
Interested parties providing ‘Sensitive’ information are required to furnish non-confidential summaries of it pursuant to Article 29(2) of the basic Regulation, which will be labelled ‘For inspection by interested parties’. These summaries must be sufficiently detailed to permit a reasonable understanding of the substance of the information submitted in confidence. If a party providing confidential information fails to show good cause for a confidential treatment request or does not furnish a non-confidential summary of it in the requested format and quality, the Commission may disregard such information unless it can be satisfactorily demonstrated from appropriate sources that the information is correct.
Interested parties are invited to make all submissions and requests via TRON.tdi (https://tron.trade.ec.europa.eu/tron/TDI) including requests to be registered as interested parties, scanned powers of attorney and certification sheets. By using TRON.tdi or email, interested parties express their agreement with the rules applicable to electronic submissions contained in the document ‘CORRESPONDENCE WITH THE EUROPEAN COMMISSION IN TRADE DEFENCE CASES’ published on the website of the Directorate-General for Trade: https://europa.eu/!7tHpY3. The interested parties must indicate their name, address, telephone and a valid email address and they should ensure that the provided email address is a functioning official business email which is checked on a daily basis. Once contact details are provided, the Commission will communicate with interested parties by TRON.tdi or email only, unless they explicitly request to receive all documents from the Commission by another means of communication or unless the nature of the document to be sent requires the use of a registered mail. For further rules and information concerning correspondence with the Commission including principles that apply to submissions via TRON.tdi and by email, interested parties should consult the communication instructions with interested parties referred to above.
Commission address for correspondence:





European Commission




Directorate-General for Trade




Directorate G




Office: CHAR 04/039




1049 Bruxelles/Brussel




BELGIQUE/BELGIË




TRON.tdi: https://tron.trade.ec.europa.eu/tron/tdi
Email: TRADE-R806-INTERIM-SUBSIDY-GITI@ec.europa.eu
6.   Schedule of the investigation

The investigation shall normally be concluded within 12 months and in any event no later than 15 months from the date of the publication of this Notice, pursuant to Article 22(1) of the basic Regulation.
7.   Submission of information

As a rule, interested parties may only submit information in the timeframes specified in section 5 of this Notice.
In order to complete the investigation within the mandatory deadlines, the Commission will not accept submissions from interested parties after the deadline to provide comments on the final disclosure or, if applicable, after the deadline to provide comments on the additional final disclosure.
8.   Possibility to comment on other parties’ submissions

In order to guarantee the rights of defence, interested parties should have the possibility to comment on information submitted by other interested parties. When doing so, interested parties may only address issues raised in the other interested parties’ submissions and may not raise new issues.
Comments on the information provided by other interested parties in reaction to the disclosure of the definitive findings should be submitted within 5 days from the deadline to comment on the definitive findings, unless otherwise specified. If there is an additional final disclosure, comments on the information provided by other interested parties in reaction to this further disclosure should be made within 1 day from the deadline to comment on this further disclosure, unless otherwise specified.
The outlined timeframe is without prejudice to the Commission’s right to request additional information from interested parties in duly justified cases.
9.   Extension to time limits specified in this Notice

Any extension to the time limits provided for in this Notice should only be requested in exceptional circumstances and will only be granted if duly justified.
In any event, any extension to the deadline to reply to questionnaires will be limited normally to 3 days, and as a rule will not exceed 7 days.
Regarding time limits for the submission of other information specified in the Notice of Initiation, extensions will be limited to 3 days unless exceptional circumstances are demonstrated.
10.   Non-cooperation

In cases where any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, findings, affirmative or negative, may be made on the basis of facts available, in accordance with Article 28 of the basic Regulation.
Where it is found that any interested party has supplied false or misleading information, the information may be disregarded and use may be made of facts available.
If an interested party does not cooperate or cooperates only partially and findings are therefore based on facts available in accordance with Article 28 of the basic Regulation, the result may be less favourable to that party than if it had cooperated.
Failure to give a computerised response shall not be deemed to constitute non-cooperation, provided that the interested party shows that presenting the response as requested would result in an unreasonable extra burden or unreasonable additional cost. The interested party should immediately contact the Commission.
11.   Hearing Officer

Interested parties may request the intervention of the Hearing Officer in trade proceedings. The Hearing Officer reviews requests for access to the file, disputes regarding the confidentiality of documents, requests for extension of time limits and any other request concerning the rights of defence of interested parties and third parties as may arise during the proceeding.
The Hearing Officer may organise hearings and mediate between the interested party/-ies and Commissions services to ensure that the interested parties’ rights of defence are being fully exercised. A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. The Hearing Officer will examine the reasons for the requests. These hearings should only take place if the issues have not been settled with the Commission services in due course.
Any request must be submitted in good time and expeditiously so as not to jeopardise the orderly conduct of proceedings. To that effect, interested parties should request the intervention of the Hearing Officer at the earliest possible time following the occurrence of the event justifying such intervention. Where hearing requests are submitted outside the relevant timeframes, the Hearing Officer will also examine the reasons for such late requests, the nature of the issues raised and the impact of those issues on the rights of defence, having due regard to the interests of good administration and the timely completion of the investigation.
For further information and contact details interested parties may consult the Hearing Officer’s web pages on DG Trade’s website: https://policy.trade.ec.europa.eu/contacts/hearing-officer_en
12.   Processing of personal data

Any personal data collected in this investigation will be treated in accordance with Regulation (EU) 2018/1725 of the European Parliament and of the Council (9).
A data protection notice that informs all individuals of the processing of personal data in the framework of Commission’s trade defence activities is available on DG Trade’s website: https://europa.eu/!vr4g9W


(1)  
            OJ L 176, 30.6.2016, p. 55.

(2)  Commission Implementing Regulation (EU) 2018/1690 of 9 November 2018 imposing definitive countervailing duties on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries and with a load index exceeding 121 originating in the People’s Republic of China and amending Commission Implementing Regulation (EU) 2018/1579 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People’s Republic of China and repealing Implementing Regulation (EU) 2018/163 (OJ L 283, 12.11.2018, p. 1).

(3)  Commission Implementing Regulation (EU) 2018/1579 of 18 October 2018 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People's Republic of China and repealing Implementing Regulation (EU) 2018/163 (OJ L 263, 22.10.2018, p. 3).

(4)  Commission Implementing Regulation (EU) 2023/738 of 4 April 2023 re-imposing a definitive countervailing duty on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People’s Republic of China following the judgment of the General Court in joined cases T-30/19 and T-72/19 (OJ L 96, 5.4.2023, p. 45).

(5)  Commission Implementing Regulation (EU) 2023/737 of 4 April 2023 re-imposing a definitive anti-dumping duty on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People’s Republic of China following the judgment of the General Court in joined cases T-30/19 and T-72/19 (OJ L 96, 5.4.2023, p. 9).

(6)  In accordance with Article 127 of Commission Implementing Regulation (EU) No 2015/2447 laying down detailed rules for implementing certain provisions of Regulation (EU) 952/2013 of the European Parliament and of the Council laying down the Union Customs Code, two persons shall be deemed to be related if one of the following conditions is fulfilled: (a) they are officers or directors of one another’s businesses; (b) they are legally recognized partners in business; (c) they are employer and employee; (d) a third party directly or indirectly owns or controls or holds 5 % or more of the outstanding voting stock or shares of both of them; (e) one of them directly or indirectly controls the other; (f) both of them are directly or indirectly controlled by a third person; (g) together they control a third person directly or indirectly; or (h) they are members of the same family. Persons shall be deemed to be members of the same family only if they stand in any of the following relationships to one another: (i) husband and wife, (ii) parent and child, (iii) brother and sister (whether by whole or half blood), (iv) grandparent and grandchild, (v) uncle or aunt and nephew or niece, (vi) parent-in-law and son-in-law or daughter-in-law, (vii) brother-in-law and sister-in-law. In accordance with Article 5(4) of Regulation (EU) No 952/2013 of the European Parliament and the Council of 9 October 2013 laying the Union Customs Code, ‘person’ means a natural person, a legal person, and any association of persons which is not a legal person but which is recognized under Union or national law as having the capacity to perform legal acts (OJ L 269, 10.10.2013, p. 1).

(7)  In case of technical problems please contact the Trade Service Desk by email trade-service-desk@ec.europa.eu or by telephone +32 22979797.

(8)  A ‘Sensitive’ document is a document which is considered confidential pursuant to Article 29 of the basic Regulation and Article 12 of the WTO Agreement on Subsidies and Countervailing Measures. It is also a document protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council (OJ L 145, 31.5.2001, p. 43).

(9)  Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).


ELI: http://data.europa.eu/eli/C/2023/1491/oj
ISSN 1977-091X (electronic edition)