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Anti-dumping and Anti-subsidy Actions

Commodity: Cycles, with pedal assistance, with an auxiliary electric motor, currently falling within CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711 60 90 10).

Countries/Economies: The Chinese mainland. 

Action: On 21 December 2017, the Official Journal published a notice of initiation of an anti-subsidy proceeding concerning imports of electric bicycles. The European Commission had received a complaint alleging that imports of electric bicycles, originating in the Chinese mainland, are being subsidised and are thereby causing material injury to the Union industry. The complaint was lodged on 8 November 2017 by the European Bicycle Manufacturers Association (‘EBMA’) on behalf of producers (‘the complainants’) said to be representing more than 25% of the total Union production of electric bicycles. The alleged subsidy practices consist, among others, of (1) direct transfers of funds and potential direct transfers of funds or liabilities, (2) government revenue forgone or not collected, and (3) government provision of goods or services for less than adequate remuneration. The complaint is said to contain evidence, for example, of various grants as subsidies for environmental protection and subsidies for technology, innovation and development. The complainants allege that the measures are subsidies since they involve a financial contribution from the Government of mainland China or other regional and local governments (including public bodies) and confer a benefit to the exporting producers of the product under investigation. They are alleged to be limited to certain enterprises or industry or group of enterprises and are therefore specific and countervailable. On this basis the alleged subsidy amounts appear to be significant. The evidence provided by the complainant shows that the volume and the prices of the imported product under investigation have had, among other consequences, a negative impact on the quantities sold and the market share held by the Union industry as well as on the Union's prices that could not be raised to a reasonable level due to the downward price pressure of the imported product under investigation resulting in substantial adverse effects on the overall performance of the Union industry. The Commission envisages using the sampling procedure. For the details of this, please refer to the notice of initiation.

Dates: Subject to the provisions of the notice, all interested parties have been 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 the notice. All interested parties may request to be heard by the Commission investigation services. Any request to be heard should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation the request must be submitted within 15 days of the date of publication of the notice. Thereafter, a request to be heard must be submitted within the specific deadlines set by the Commission in its communication with the parties. The investigation will be concluded within 13 months of the date of the publication of the notice. Provisional measures may be imposed no later than nine months from the publication of notice.

 

Commodity: High tenacity yarn of polyesters (other than sewing thread), not put up for retail sale, including monofilament of less than 67 decitex, falling within CN code 5402 20 00. This description is set out in Article 1(1) of Implementing Regulation 2017/325

Countries/Economies: The Chinese mainland.

Action: On 19 December 2017, the Official Journal published Commission Implementing Regulation 2017/2368 amending Implementing Regulation 2017/325 imposing a definitive anti-dumping duty on imports of high tenacity yarns of polyesters originating in the Chinese mainland following an expiry review. It will be recalled that by Implementing Regulation 2017/325, the Commission imposed a definitive anti-dumping duty on imports of the product concerned. However, Implementing Regulation 2017/325 did not provide for the possibility of companies who did not export the high tenacity yarns of polyesters during the original investigation period to request a review to determine whether they could also be made subject to the duty rate imposed on the cooperating companies not part of the sample. Such a review (a new exporter review) could be carried out if sufficient evidence is brought to the Commission by a new exporter or producer in the exporting country in question that it (1) has not exported the product during the period of investigation on which the measures were based; (2) is not related to an exporter or producer subject to the measures imposed; and (3) has either actually exported the goods concerned or has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the period of investigation. It is therefore deemed appropriate to amend Implementing Regulation 2017/325 accordingly to allow new exporters the possibility to request such review. In view of the foregoing, Article 1 of Implementing Regulation 2017/325 is amended, so as to provide for that possibility.

Dates: Commission Implementing Regulation 2017/2368 entered into force on the day following that of its publication in the Official Journal.

 

Commodity: Citric acid (including trisodium citrate dihydrate), currently falling within CN codes ex 2918 14 00 (TARIC code 2918 14 00 20) and ex 2918 15 00 (TARIC code 2918 15 00 13).

Countries/Economies: The Chinese mainland, Cambodia

Action: On 13 December 2017, the Official Journal published Commission Implementing Regulation 2017/2300 initiating an investigation concerning the possible circumvention of anti-dumping measures imposed by Implementing Regulation 2015/82 on imports of citric acid originating in the Chinese mainland by imports of citric acid consigned from Cambodia, whether declared as originating in Cambodia or not, and making such imports subject to registration. The European Commission received a request to investigate the possible circumvention of the anti-dumping measures imposed on imports of citric acid. The request was lodged on 30 October 2017 by the European industry manufacturing citric acid. The measures currently in force and possibly being circumvented are anti-dumping measures imposed by Commission Implementing Regulation 2015/82. The request is said to contain sufficient evidence that the anti-dumping measures imposed on the product concerned are being circumvented by imports of the product under investigation consigned from Cambodia. For example, the request shows that a significant change in the pattern of trade involving exports from the Chinese mainland and Cambodia to the EU has taken place following the imposition of measures on the product concerned, without sufficient due cause or economic justification for such a change other than the imposition of the duty. This change appears, to the Commission, to stem from the transhipment, with or without minor processing operations, of the product concerned originating in the Chinese mainland via Cambodia to the EU.

Dates: New Commission Implementing Regulation 2017/2300 entered into force on the day following that of its publication in the Official Journal. The customs authorities are ordered to take the appropriate steps to register the imports of the product concerned into the EU. Registration will expire nine months following the date of entry into force of the Regulation. Interested parties must make themselves known by contacting the Commission and requesting the relevant questionnaires from the Commission within 15 days from the date of entry into force of the Regulation. Interested parties, if their representations are to be taken into account during the investigation, must present their views in writing and submit questionnaire replies or any other information within 37 days from the date of receipt of the questionnaire, unless otherwise specified. Producers in Cambodia requesting exemption from registration of imports or measures must submit a request duly supported by evidence within the same 37-day time limit. Interested parties may also apply to be heard by the Commission within the same 37-day time limit. The investigation will be concluded within nine months of the date of entry into force of Commission Implementing Regulation 2017/2300.

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