COMMISSION IMPLEMENTING REGULATION (EU) 2022/72
of 18 January 2022
imposing definitive countervailing duties on imports of optical fibre cables originating in the People’s Republic of China and amending Implementing Regulation (EU) 2021/2011 imposing a definitive anti-dumping duty on imports of optical fibre cables originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Comments concerning initiation
1.3.
Registration of imports
1.4.
Investigation period and period considered
1.5.
Interested parties
1.6.
Sampling
1.6.1.
Sampling of Union producers
1.6.2
Sampling of importers
1.6.3.
Sampling of exporting producers in China
1.7.
Individual examination
1.8.
Questionnaire replies and verification visits
1.9.
Non-imposition of provisional measures and subsequent procedure
1.10.
Final disclosure
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
3.
SUBSIDISATION
3.1.
Introduction: Government plans, projects and other documents
‘XXVIII.
Information Industry
3.2.
Partial non-cooperation and use of facts available
3.2.1.
The application of the provisions of Article 28(1) of the basic Regulation in relation to preferential lending
3.2.2.
The application of the provisions of Article 28(1) of the basic Regulation in relation to export credit insurance
3.2.3.
Use of facts available in relation to input materials
3.3.
Subsidies and subsidy programmes within the scope of the current investigation
3.4.
Grant programmes
3.4.1.
Grants related to technology, innovation and development
(a) Legal basis
(b) Findings
(c) Conclusion
(d) Calculation of the subsidy amount
3.4.2.
Other grants
(a) Legal Basis
(b) Findings of the investigation
(c) Conclusion
(d) Calculation of the subsidy amount
3.4.3.
Conclusion on grants programmes
Company name |
Subsidy rate |
||||||
FTT Group:
|
1,79 % |
||||||
ZTT Group:
|
0,33 % |
3.5.
Preferential financing
3.5.1.
Financial institutions providing preferential financing
3.5.1.1. State-owned financial institutions acting as public bodies
(1)
Partially cooperating State-owned financial institutions
(a) Ownership and formal indicia of control by the GOC
(b) Meaningful control by the GOC
(c) Conclusion on State-owned banks
(2)
Non-cooperating State-owned financial institutions
Name |
Information on ownership structure |
Bank of Beijing |
At least 21 % of the shares held by the local and national government and SOEs |
Sinomach Finance Ltd |
Belongs to China National Machinery Industry Corporation Ltd (Sinomach), which is a state-owned enterprise |
(3)
Conclusion on State-owned financial institutions
3.5.1.2. Private financial institutions entrusted or directed by the State
3.5.2.
Credit ratings
3.5.3.
Preferential financing: loans
3.5.3.1. Types of loans
(1)
Short-term and long-term loans
(2)
Loans with the specific purpose to replace other loans
(3)
Shareholder loan
3.5.3.2. Specificity
3.5.3.3. Benefit and calculation of the subsidy amount
(1)
FTT Group
(2)
ZTT Group
3.5.3.4. Conclusion on preferential financing: loans
Company name |
Subsidy rate |
||||||
FTT Group:
|
0,90 % |
||||||
ZTT Group:
|
0,38 % |
3.5.4.
Preferential financing: other types of financing
3.5.4.1 Credit lines
(a) General
(b) Findings
(c) Specificity
(d) Calculation of the benefit
3.5.4.2. Bank acceptance drafts
(a) General
(b) Specificity
(c) Calculation of the benefit
3.5.4.3. Convertible corporate bonds
(a) Financial institutions acting as public bodies
(b) Specificity
(c) Calculation of the benefit
3.5.4.4 Corporate bonds
(a) Legal basis
(b) Regulatory framework governing corporate bonds
(c) Financial institutions acting as public bodies
(d) Specificity
(e) Calculation of the benefit
3.5.4.5. Conclusion on preferential financing: other types of financing
Company name |
Subsidy rate |
||||||
FTT Group:
|
3,51 % |
||||||
ZTT Group:
|
2,62 % |
3.6.
Preferential insurance: export credit insurance
(a) Legal basis
(b) Findings of the investigation
(c) Calculation of the subsidy amount
Company name |
Subsidy rate |
||||||
FTT Group:
|
0,08 % |
||||||
ZTT Group:
|
0,54 % |
3.7.
Revenue foregone through tax exemptions and reduction programmes
3.7.1.
Tax exemptions and reductions
3.7.1.1. EIT privileges for High and New Technology Enterprises
(a) Legal basis
(b) Findings of the investigation
(c) Calculation of the subsidy amount
3.7.1.2. EIT offset for research and development expenses
(a) Legal basis
(b) Findings of the investigation
(c) Calculation of the subsidy amount
3.7.1.3. Dividends exemption between qualified resident enterprises
(a) Legal basis
(b) Findings of the investigation
(c) Calculation of the subsidy amount
3.7.1.4. Accelerated depreciation of equipment used by High-Tech enterprises
(a) Legal basis
(b) Findings of the investigation
(c) Conclusion
3.7.1.5. Land use tax exemption
(a) Legal basis
(b) Findings of the investigation
(c) Conclusion
(d) Calculation of the subsidy amount
3.7.1.6. Total for all tax exemption schemes and reduction programmes
Company name |
Subsidy rate |
||||||
FTT Group:
|
2,43 % |
||||||
ZTT Group:
|
0,82 % |
3.7.2.
Provision of electricity at reduced rate
(a) Legal basis
(b) Findings of the investigation
(c) Conclusion
(d) Calculation of the subsidy amount
Company name |
Subsidy rate |
||||||
FTT Group:
|
0,18 % |
||||||
ZTT Group:
|
0,06 % |
3.8.
Provision of goods for less than adequate remuneration
3.8.1.
Provision of land for less than adequate remuneration
(a) Legal basis
(b) Findings of the investigation
(c) Conclusion
(d) Calculation of the subsidy amount
Company name |
Subsidy rate |
||||||
FTT Group:
|
0,84 % |
||||||
ZTT Group:
|
0,40 % |
3.8.2.
Provision of raw materials for less than adequate remuneration
3.9.
Conclusion on subsidisation
Company name |
Subsidy rate |
||||||
FTT Group:
|
10,33 % |
||||||
ZTT Group:
|
5,1 % |
||||||
Other cooperating companies |
7,8 % |
||||||
All other companies |
10,33 % |
4.
INJURY
4.1.
Unit of measurement
4.2.
Definition of the Union industry and Union production
4.3.
Exclusion of two producers from the Union industry
4.4.
Determination of the relevant Union market
4.5.
Captive use
4.6.
Union consumption
|
2017 |
2018 |
2019 |
IP |
||
Total free market Union consumption |
1 276 902 |
1 537 999 |
1 655 737 |
1 760 092 |
||
Index |
100 |
120 |
130 |
138 |
||
Captive market |
61 505 |
59 802 |
62 710 |
54 205 |
||
Index |
100 |
97 |
102 |
88 |
||
|
4.7.
Imports from the country concerned
4.7.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
IP |
||
Volume of imports from the country concerned (cable-km) |
189 479 |
354 167 |
434 754 |
498 335 |
||
Index |
100 |
187 |
229 |
263 |
||
Market share (%) |
14,8 |
23,0 |
26,3 |
28,3 |
||
Index |
100 |
155 |
177 |
191 |
||
|
4.7.2.
Prices of the imports from the country concerned, price undercutting, price depression
|
2017 |
2018 |
2019 |
IP |
||
China |
452,9 |
401,9 |
468,5 |
349,1 |
||
Index |
100 |
89 |
103 |
77 |
||
|
|
2017 |
2018 |
2019 |
IP |
Average price |
854 |
720 |
593 |
320 |
Index |
100 |
84 |
69 |
38 |
Representativeness (%) |
94 |
35 |
59 |
62 |
4.8.
Economic situation of the Union industry
4.8.1.
General remarks
4.8.2.
Macroeconomic indicators
4.8.2.1. Production, production capacity and capacity utilisation
|
2017 |
2018 |
2019 |
IP |
Production volume (cable-km) |
1 062 482 |
1 195 017 |
1 250 881 |
1 229 252 |
Index |
100 |
112 |
118 |
116 |
Production capacity (cable-km) |
1 585 738 |
1 748 667 |
2 019 526 |
2 084 082 |
Index |
100 |
110 |
127 |
131 |
Capacity utilisation (%) |
67 |
68 |
62 |
59 |
Index |
100 |
102 |
92 |
88 |
4.8.2.2. Sales volume and market share
|
2017 |
2018 |
2019 |
IP |
||
Sales volume on the Union market (cable-km) |
882 772 |
945 842 |
1 009 439 |
995 703 |
||
Index |
100 |
107 |
114 |
113 |
||
Captive market |
61 505 |
59 802 |
62 710 |
54 205 |
||
Index |
100 |
97 |
102 |
88 |
||
Captive market as a % of Union sales |
7,0 |
6,3 |
6,2 |
5,4 |
||
Index |
100 |
91 |
89 |
78 |
||
Free market sales |
821 268 |
886 040 |
946 729 |
941 498 |
||
Index |
100 |
108 |
115 |
115 |
||
Market share of free market sales (%) |
64,3 |
57,6 |
57,2 |
53,5 |
||
Index |
100 |
90 |
89 |
83 |
||
|
4.8.2.3. Growth
4.8.2.4. Employment and productivity
|
2017 |
2018 |
2019 |
IP |
||
Number of employees (FTE(145)) |
4 088 |
4 589 |
4 815 |
4 659 |
||
Index |
100 |
112 |
118 |
114 |
||
Productivity (cable-km/FTE) |
260 |
260 |
260 |
264 |
||
Index |
100 |
100 |
100 |
102 |
||
|
4.8.2.5. Magnitude of the subsidy margin and recovery from past subsidisation
4.8.3.
Microeconomic indicators
4.8.3.1. Prices and factors affecting prices
|
2017 |
2018 |
2019 |
IP |
||
Average unit sales price in the Union (EUR/ cable-km) |
816 |
861 |
944 |
821 |
||
Index |
100 |
105 |
116 |
101 |
||
Unit cost of production (EUR/ cable-km) |
756 |
785 |
860 |
758 |
||
Index |
100 |
104 |
114 |
100 |
||
|
|
2017 |
2018 |
2019 |
IP |
Average price |
817 |
780 |
792 |
719 |
Index |
100 |
95 |
97 |
88 |
Representativeness (%) |
42 |
38 |
35 |
34 |
2017 |
2018 |
2019 |
IP |
100 |
73 |
56 |
59 |
4.8.3.2. Labour costs
|
2017 |
2018 |
2019 |
IP |
||
Average labour costs per employee (EUR/FTE) |
39 511 |
35 826 |
39 157 |
38 966 |
||
Index |
100 |
91 |
99 |
99 |
||
|
4.8.3.3. Inventories
|
2017 |
2018 |
2019 |
IP |
||
Closing stocks (cable-km) |
134 925 |
161 561 |
161 878 |
171 058 |
||
Index |
100 |
120 |
120 |
127 |
||
Closing stocks as a percentage of production (%) |
12,7 |
13,5 |
12,9 |
13,9 |
||
Index |
100 |
106 |
102 |
110 |
||
|
4.8.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2017 |
2018 |
2019 |
IP |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
8,1 |
8,4 |
8,5 |
7,9 |
||
Index |
100 |
104 |
104 |
97 |
||
Cash flow (EUR) |
33 254 746 |
48 644 480 |
41 707 715 |
39 805 852 |
||
Index |
100 |
146 |
125 |
120 |
||
Investments (EUR) |
60 405 839 |
67 794 023 |
82 761 718 |
59 886 812 |
||
Index |
100 |
112 |
137 |
99 |
||
Return on investments (%) |
34 |
36 |
24 |
20 |
||
Index |
100 |
105 |
70 |
58 |
||
|
|
2014 |
2015 |
2016 |
Profit margin (in %) |
10,4 |
12,6 |
12,4 |
4.9.
Analysis of sales based on tenders
4.10.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the subsidised imports
5.2.
Effects of other factors
5.2.1.
Imports from third countries
Country |
|
2017 |
2018 |
2019 |
IP |
||
Korea |
Volume (cable-km) |
20 450 |
51 339 |
44 405 |
45 908 |
||
|
Index |
100 |
251 |
217 |
224 |
||
|
Market share (%) |
1,6 |
3,3 |
2,7 |
2,6 |
||
|
Average price (EUR/ cable-km) |
796 |
873 |
1 627 |
1 073 |
||
|
Index |
100 |
110 |
204 |
135 |
||
Turkey |
Volume (cable-km) |
26 732 |
32 932 |
22 922 |
37 008 |
||
|
Index |
100 |
123 |
86 |
138 |
||
|
Market share (%) |
2,1 |
2,1 |
1,4 |
2,1 |
||
|
Average price (EUR/ cable-km) |
428 |
501 |
776 |
594 |
||
|
Index |
100 |
117 |
181 |
139 |
||
Norway |
Volume (cable-km) |
12 143 |
11 622 |
22 728 |
26 471 |
||
|
Index |
100 |
96 |
187 |
218 |
||
|
Market share (%) |
1,0 |
0,8 |
1,4 |
1,5 |
||
|
Average price (EUR/ cable-km) |
330 |
271 |
279 |
261 |
||
|
Index |
100 |
82 |
85 |
79 |
||
Other third countries |
Volume (cable-km) |
126 307 |
114 520 |
77 787 |
107 334 |
||
|
Index |
100 |
91 |
62 |
85 |
||
|
Market share (%) |
9,9 |
7,4 |
4,7 |
6,1 |
||
|
Average price (EUR/ cable-km) |
1 631 |
1 728 |
2 447 |
1 218 |
||
|
Index |
100 |
106 |
150 |
75 |
||
Total of all third countries except the country concerned |
Volume (cable-km) |
185 633 |
210 414 |
167 842 |
216 721 |
||
|
Index |
100 |
113 |
90 |
117 |
||
|
Market share (%) |
14,5 |
13,7 |
10,1 |
12,3 |
||
|
Average price (EUR/ cable-km) |
1 280 |
1 247 |
1 708 |
964 |
||
|
Index |
100 |
97 |
133 |
75 |
||
|
5.2.2.
Export performance of the Union industry
|
2017 |
2018 |
2019 |
IP |
||
Export volume (cable-km) |
85 676 |
99 295 |
95 397 |
108 672 |
||
Index |
100 |
116 |
111 |
127 |
||
Average price (EUR/cable-km) |
1 329 |
1 111 |
1 282 |
949 |
||
Index |
100 |
84 |
96 |
71 |
||
|
5.2.3.
Captive volumes
5.2.4.
Price of raw materials
5.2.5.
Effect of COVID-19 pandemic
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers
6.3.
Interest of users and distributors
6.4.
Other factors
6.5.
Conclusion on Union interest
7.
DEFINITIVE COUNTERVAILING MEASURES
7.1.
Level of the definitive countervailing measures
Company |
Countervailing duty rate |
||||||
FTT group:
|
10,3 % |
||||||
ZTT group:
|
5,1 % |
||||||
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex I |
7,8 % |
||||||
Other companies cooperating in the anti-dumping investigation but not in the anti-subsidy investigation listed in Annex II |
10,3 % |
||||||
All other companies |
10,3 % |
Company |
Dumping margin |
Subsidy rate |
Injury elimination level |
Countervailing duty rate |
Anti-dumping duty rate |
||||||
FTT Group:
|
44,0 % |
10,3 % |
61,3 % |
10,3 % |
33,7 % |
||||||
ZTT Group:
|
19,7 % |
5,1 % |
42,0 % |
5,1 % |
14,6 % |
||||||
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex I |
31,2 % |
7,8 % |
52,7 % |
7,8 % |
23,4 % |
||||||
Other companies cooperating in the anti-dumping investigation but not in the anti-subsidy investigation listed in Annex II |
31,2 % |
10,3 % |
52,8 % |
10,3 % |
20,9 % |
||||||
All other companies |
44,0 % |
10,3 % |
61,3 % |
10,3 % |
33,7 % |
7.2.
Special monitoring clause
8.
DISCLOSURE
9.
FINAL PROVISIONS
Article 1
Company |
Definitive countervailing duty |
TARIC additional code |
||||||
FTT Group:
|
10,3 % |
C696 |
||||||
ZTT Group:
|
5,1 % |
C697 |
||||||
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex I |
7,8 % |
|
||||||
Other companies cooperating in the anti-dumping investigation but not in the anti-subsidy investigation listed in Annex II |
10,3 % |
|
||||||
All other companies |
10,3 % |
C999 |
Article 2
Company |
Definitive anti-dumping duty |
TARIC additional code |
||||||
FTT Group:
|
33,7 % |
C696 |
||||||
ZTT Group:
|
14,6 % |
C697 |
||||||
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex I |
23,4 % |
|
||||||
Other companies cooperating in the anti-dumping investigation but not in the anti-subsidy investigation listed in Annex II |
20,9 % |
|
||||||
All other companies |
33,7 % |
C699’ |
Article 3
ANNEX I
Other companies cooperating in both anti-subsidy and anti-dumping investigation
Name of the company |
TARIC additional code |
||||||||||
Dongjie Optical Technology (Suzhou) Co., Ltd |
C700 |
||||||||||
Fasten Group:
|
C701 |
||||||||||
Hangzhou Futong Communication Technology Co., Ltd |
C702 |
||||||||||
Hangzhou Tuolima Network Technologies Co., Ltd |
C703 |
||||||||||
Jiangsu Etern Co., Ltd |
C704 |
||||||||||
Jiangsu Hengtong Group:
|
C705 |
||||||||||
Jiangsu Tongguang Optical Fiber Cable Co., Ltd |
C706 |
||||||||||
LEONI Cable (China) Co., Ltd |
C707 |
||||||||||
Nanjing Huamai Technology Co., Ltd |
C708 |
||||||||||
Ningbo Geyida Cable Technology Co., Ltd |
C709 |
||||||||||
SDG group:
|
C725 |
||||||||||
Shanghai Qishen International Trade Co., Ltd |
C712 |
||||||||||
Shenzhen Wanbao Optical Fiber Communication Co., Ltd |
C713 |
||||||||||
Sichuan Huiyuan Optical Communications Co., Ltd |
C714 |
||||||||||
Suzhou Furukawa Power Optic Cable Co., Ltd |
C715 |
||||||||||
Suzhou Torres Optic-electric Technology Co., Ltd |
C716 |
||||||||||
Twentsche (Nanjing) Fibre Optics Ltd |
C717 |
||||||||||
XDK Communication Equipment (Huizhou) Ltd |
C718 |
||||||||||
Yangtze Optical Fibre and Cable group:
|
C719 |
ANNEX II
Other companies cooperating in anti-dumping investigation but not in anti-subsidy investigation
Name of the company |
TARIC additional code |
Anhui Tianji Information Technology Co., Ltd |
C698 |
Prysmian Wuxi Cable Co., Ltd |
C710 |