COMMISSION IMPLEMENTING REGULATION (EU) 2022/1924
of 10 October 2022
imposing a definitive anti-dumping duty on imports of sodium cyclamate originating in the People’s Republic of China and Indonesia following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous investigations and measures in force
1.2.
Request for an expiry review
1.3.
Initiation of an expiry review
1.4.
Review investigation period and period considered
1.5.
Interested parties
1.6.
Comments on initiation
1.7.
Sampling
1.7.1.
Sampling of importers
1.7.2.
Sampling of exporting producers in the countries concerned
1.8.
Replies to the questionnaire
1.9.
Verification
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
DUMPING
3.1.
The PRC
3.1.1.
Preliminary remarks
3.1.2.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of sodium cyclamate originating in the PRC
3.1.3.
Normal value
3.1.3.1. Existence of significant distortions
3.1.3.2. Representative country
3.1.3.2.1. General remarks
3.1.3.2.2. A level of economic development similar to the PRC
3.1.3.2.3. Availability of relevant public data in the representative country
3.1.3.2.4. Level of social and environmental protection
3.1.3.2.5. Conclusion
3.1.3.3. Sources used to establish undistorted costs
3.1.3.3.1. Undistorted costs and benchmarks
3.1.3.3.1.1. Factors of production
Factor of Production |
Commodity Code in Malaysia |
Undistorted value |
Unit of measurement |
Raw materials |
|||
Hydrochloric Acid |
28061000 28061010 28061020 |
3,29 CNY |
kg |
Sulfamic Acid |
28111920 |
7,09 CNY |
kg |
Cyclohexylamine |
29213000 |
26,97 CNY |
kg |
Sodium Hydroxide |
28151200 |
1,15 CNY |
kg |
Activated Charcoal (Carbon) |
38021000 |
18,89 CNY |
kg |
Labour |
|||
Direct and indirect labour in the manufacturing sector |
[N/A] |
53,6 CNY |
Per hours |
Energy |
|||
Electricity |
[N/A] |
0,54 CNY |
kWh electricity |
Gas |
[N/A] |
0,13 CNY |
kWh gas |
3.1.3.3.1.2. Manufacturing overhead costs, SG&A, profits and depreciation
3.1.3.4. Calculation of the normal value
3.1.4.
Export price
3.1.5.
Comparison
3.1.6.
Dumping margin
3.2.
Indonesia
3.2.1.
Preliminary remarks
4.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING
4.1.
The PRC
4.1.1.
Production capacity and spare capacity in the PRC
4.1.2.
Attractiveness of the Union market and export prices to third country markets
4.1.3.
Possible absorption capacity of third country markets
4.1.4.
Conclusion on the likelihood of continuation of dumping
4.2.
Indonesia
4.2.1.
Production capacity and spare capacity in Indonesia
4.2.2.
Attractiveness of the Union market and export prices to third country markets
4.2.3.
Possible absorption capacity of third country markets
4.2.4.
Conclusion
5.
INJURY
5.1.
Definition of the Union industry and Union production
5.2.
Union consumption
|
2018 |
2019 |
2020 |
Review Investigation period |
Total Union consumption |
[3 629 – 4 838 ] |
[3 564 – 4 752 ] |
[4 001 – 5 335 ] |
[3 583 – 4 778 ] |
Index (FY2018 = 100) |
100 |
98 |
110 |
99 |
Captive market |
[22 – 29 ] |
[23 – 30 ] |
[13 – 17 ] |
[16 – 22 ] |
Index (FY2018 = 100) |
100 |
104 |
59 |
76 |
Free market |
[3 607 – 4 809 ] |
[3 541 – 4 722 ] |
[3 988 – 5 318 ] |
[3 567 – 4 756 ] |
Index (FY2018 = 100) |
100 |
98 |
111 |
99 |
Captive consumption v free market consumption |
0,60 % |
0,64 % |
0,32 % |
0,46 % |
Source: Eurostat and Questionnaire reply of the Union producer |
5.3.
Imports from the countries concerned
5.3.1.
Volume and market share of the imports from the countries concerned
|
2018 |
2019 |
2020 |
Review Investigation period |
Volume of imports from the PRC (tonnes) |
1 371 |
1 472 |
2 402 |
2 370 |
Index (FY2018 = 100) |
100 |
107 |
175 |
173 |
Market share |
[29 % – 38 %] |
[32 % – 41 %] |
[46 % – 60 %] |
[51 % – 66 %] |
Index (FY2018 = 100) |
100 |
109 |
158 |
175 |
Volume of imports from Indonesia (tonnes) |
113 |
19 |
24 |
5 |
Index (FY2018 = 100) |
100 |
17 |
21 |
4 |
Market share |
[2,3 % – 3,1 %] |
[0,4 % – 0,5 %] |
[0,4 % – 0,6 %] |
[0,11 % – 0,14 %] |
Index (FY2018 = 100) |
100 |
17 |
19 |
4 |
Source: Eurostat and Questionnaire reply of the Union producer |
5.3.2.
Inward processing system
|
2018 |
2019 |
2020 |
Review Investigation period |
Volume of imports from the PRC under the normal regime |
1 206 |
1 204 |
2 157 |
2 116 |
Index (FY2018 = 100) |
100 |
100 |
179 |
175 |
Market share |
[26 % – 33 %] |
[26 % – 34 %] |
[41 % – 54 %] |
[45 % – 59 %] |
Index (FY2018 = 100) |
100 |
102 |
162 |
177 |
Volume of imports from the PRC under the inward processing regime |
166 |
268 |
246 |
254 |
Index (FY2018 = 100) |
100 |
162 |
148 |
153 |
Market share |
[2 % – 6 %] |
[3 % – 10 %] |
[3 % – 8 %] |
[3 % – 10 %] |
Index (FY2018 = 100) |
100 |
165 |
134 |
155 |
Source: Eurostat and Questionnaire reply of the Union producer |
5.3.3.
Prices of the imports from the countries concerned and price undercutting
|
2018 |
2019 |
2020 |
Review Investigation period |
The PRC |
1 901 |
1 889 |
1 678 |
1 608 |
Index (FY2018 = 100) |
100 |
99 |
88 |
85 |
Indonesia |
1 907 |
1 864 |
1 750 |
2 012 |
Index (FY2018 = 100) |
100 |
98 |
92 |
105 |
Source: Eurostat (without imports under inward processing) |
5.4.
Imports from third countries other than the PRC and Indonesia
5.5.
Economic situation of the Union industry
5.5.1.
General remarks
5.5.2.
Production, production capacity and capacity utilisation
|
2018 |
2019 |
2020 |
Review Investigation period |
Production volume (tonnes) |
[2 343 – 2 928 ] |
[2 184 – 2 730 ] |
[2 147 – 2 684 ] |
[1 462 – 1 827 ] |
Index (FY2018 = 100) |
100 |
93 |
92 |
62 |
Production capacity (tonnes) |
[4 000 – 5 000 ] |
[4 000 – 5 000 ] |
[4 000 – 5 000 ] |
[4 000 – 5 000 ] |
Index (FY2018 = 100) |
100 |
100 |
100 |
100 |
Capacity utilisation |
[44 % – 70 %] |
[41 % – 66 %] |
[40 % – 64 %] |
[27 % – 44 %] |
Index (FY2018 = 100) |
100 |
93 |
92 |
62 |
Source: Questionnaire reply of the Union producer |
5.5.3.
Sales volume and market share
|
2018 |
2019 |
2020 |
Review Investigation period |
Total sales volume on the Union market |
[2 145 – 2 776 ] |
[2 077 – 2 689 ] |
[1 705 – 2 206 ] |
[1 350 – 1 747 ] |
Index (FY2018 = 100) |
100 |
97 |
79 |
63 |
Market share |
[57 % – 66 %] |
[56 % – 65 %] |
[41 % – 48 %] |
[36 % – 42 %] |
Index (FY2018 = 100) |
100 |
99 |
72 |
64 |
Source: Questionnaire reply of the Union producer |
5.5.4.
Growth
5.5.5.
Employment and productivity
|
2018 |
2019 |
2020 |
Review Investigation period |
Number of employees |
[15 – 22 ] |
[15 – 22 ] |
[15 – 22 ] |
[15 – 22 ] |
Index (FY2018 = 100) |
100 |
100 |
100 |
100 |
Productivity (tonnes/employee) |
[119 – 152 ] |
[111 – 141 ] |
[109 – 139 ] |
[74 – 95 ] |
Index (FY2018 = 100) |
100 |
93 |
92 |
62 |
Source: Questionnaire reply of the Union producer |
5.5.6.
Magnitude of the dumping margin and recovery from past dumping
5.5.7.
Prices and factors affecting prices
|
2018 |
2019 |
2020 |
Review Investigation period |
Average unit sales price in the Union |
[1 749 – 2 565 ] |
[1 797 – 2 636 ] |
[1 817 – 2 664 ] |
[1 807 – 2 650 ] |
Index (FY2018 = 100) |
100 |
103 |
104 |
103 |
Unit cost of production Index (FY2018 = 100) |
100 |
106 |
97 |
115 |
Source: Questionnaire reply of the Union producer |
5.5.8.
Labour costs
|
2018 |
2019 |
2020 |
Review Investigation period |
Average labour costs per employee (EUR) |
[28 234 – 41 409 ] |
[33 039 – 48 457 ] |
[32 903 – 48 258 ] |
[31 458 – 46 138 ] |
Index (FY2018 = 100) |
100 |
117 |
117 |
111 |
Source: Questionnaire reply of the Union producer |
5.5.9.
Inventories
|
2018 |
2019 |
2020 |
Review Investigation period |
Closing stocks (tonnes) |
[165 – 238 ] |
[115 – 166 ] |
[419 – 606 ] |
[157 – 227 ] |
Index (FY2018 = 100) |
100 |
70 |
255 |
95 |
Closing stocks as a percentage of production |
[6 % – 9 %] |
[5 % – 7 %] |
[17 % – 25 %] |
[10 % – 14 %] |
Index (FY2018 = 100) |
100 |
75 |
278 |
153 |
Source: Questionnaire reply of the Union producer |
5.5.10.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Review Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) Index (FY2018 = 100) |
- 100 |
- 196 |
230 |
- 440 |
Cash flow (EUR) |
[- 203 365 ; -67 788 ] |
[- 332 146 ; - 110 715 ] |
[8 815 – 2 938 ] |
[- 838 886 ; - 279 629 ] |
Index (FY2018 = 100) |
- 100 |
- 163 |
104 |
- 413 |
Investments (EUR) |
[0 – 50 000 ] |
[0 – 50 000 ] |
[0 – 50 000 ] |
[0 – 50 000 ] |
Index (FY2018 = 100) |
100 |
100 |
100 |
100 |
Return on investments |
[-41 %; -14 %] |
[-90 %; -30 %] |
[22 %; 65 %] |
[- 139 %; -46 %] |
Index (FY2018 = 100) |
- 100 |
- 221 |
261 |
- 344 |
Source: Questionnaire reply of the Union producer |
5.6.
Conclusion on injury
6.
CAUSATION
6.1.
Effects of the dumped imports
6.2.
Effects of other factors
6.2.1.
Imports from third countries
6.2.2.
Export performance of the Union industry
|
2018 |
2019 |
2020 |
Review Investigation period |
Export volume (tonnes) |
[35 – 51 ] |
[32 – 47 ] |
[43 – 64 ] |
[44 – 64 ] |
Index (FY2018 = 100) |
100 |
92 |
124 |
126 |
Average price (EUR/tonne) |
[2 739 – 3 652 ] |
[2 695 – 3 593 ] |
[2 797 – 3 729 ] |
[2 684 – 3 579 ] |
Index (FY2018 = 100) |
100 |
98 |
102 |
98 |
Source: Questionnaire reply of the Union producer |
6.2.3.
Consumption
6.3.
Conclusion on causation
7.
LIKELIHOOD OF CONTINUATION AND/OR RECURRENCE OF INJURY
7.1.
Likelihood of continuation of injury from the PRC
7.2.
Likelihood of recurrence of injury from Indonesia
8.
UNION INTEREST
8.1.
Interest of the Union industry
8.2.
Interest of unrelated importers/traders
8.3.
Interest of users
8.4.
Conclusion on Union interest
9.
ANTI-DUMPING MEASURES
Article 1
Country |
Company |
Anti-dumping duty (EUR per kilogramme) |
TARIC additional code |
The People’s Republic of China |
Golden Time Enterprise (Shenzhen) Co. Ltd, Shanglilang, Cha Shan Industrial Area, Buji Town, Shenzhen City, Guangdong Province, People’s Republic of China; Golden Time Chemical (Jiangsu) Co., Ltd, No 88 Panyao Road, Nanjing Chemical Industry Park, Nanjing, Jiangsu Province, People’s Republic of China |
0,23 |
A473 |
The People’s Republic of China |
Fang Da Food Additive (Shen Zhen) Limited, Gong Le Industrial Estate, Xixian County, Bao An, Shenzhen, 518102, People’s Republic of China |
1,17 |
A471 |
The People’s Republic of China |
Fang Da Food Additive (Yang Quan) Limited, Da Lian Dong Lu, Economic and Technology Zone, Yangquan City, Shanxi 045000, People’s Republic of China |
1,17 |
A472 |
The People’s Republic of China |
All other companies |
0,26 |
A999 |
Indonesia |
PT. Golden Sari (Chemical Industry), Mitra Bahari Blok D1- D2, Jalan Pakin No 1, Sunda Kelapa, Jakarta 14440, Indonesia |
0,24 |
A502 |
Indonesia |
All other companies |
0,27 |
A999 |