COMMISSION IMPLEMENTING REGULATION (EU) 2021/2287
of 17 December 2021
imposing definitive countervailing duties on imports of aluminium converter foil originating in the People’s Republic of China and amending Implementing Regulation (EU) 2021/2170 imposing definitive anti-dumping duties on imports of aluminium converter foil originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.1.1.
Comments concerning initiation
1.2.
Registration of imports, non-imposition of provisional measures and subsequent procedure
1.3.
Investigation period and period considered
1.4.
Interested parties
1.5.
Sampling
1.5.1.
Sampling of Union producers
1.5.2.
Sampling of importers
1.5.3.
Sampling of exporting producers in China
1.6.
Individual examination
1.7.
Questionnaire replies and verification visits
1.8.
Final disclosure
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
2.3.1.
ACF of gauge below 6 microns
2.3.2.
ACF for car batteries
2.4.
Withdrawal of the United Kingdom from the EU
3.
SUBSIDISATION
3.1.
Introduction: Presentation of Government plans, projects and other documents
3.2.
Partial non-cooperation and use of facts available
3.2.1.
Application of the provisions of Article 28(1) of the basic Regulation in relation to preferential lending
3.2.2.
Application of the provisions of Article 28(1) of the basic Regulation in relation to export credit insurance
3.2.3.
Application of the provisions of Article 28(1) of the basic Regulation in relation to input materials
3.2.4.
Application of the provisions of Article 28(1) of the basic Regulation concerning Yongxin
3.2.5.
Application of the provisions of Article 28(1) of the basic Regulation concerning Nanshan Group
3.3.
Subsidies and subsidy programmes within the scope of the current investigation
3.4.
Preferential financing
3.4.1.
Financial institutions providing preferential financing
3.4.1.1.
State-owned financial institutions acting as public bodies
3.4.1.2.
Cooperating State-owned financial institutions
3.4.1.3.
Ownership, formal indicia and exercise of control by the GOC
3.4.1.4.
Conclusion on cooperating State-owned financial institutions
3.4.1.5.
Non-cooperating State-owned financial institutions
Bank of Yantai |
6,4 % of the bank’s shares are state owned. |
Huishang Bank |
32,45 % are state-owned (Anhui province energy group, Anhui province Guoyuan Financial Group etc.). |
Nanyang Commercial Bank |
On 30 May 2016, the bank became a wholly-owned subsidiary of China Cinda Group, which is fully owned by the GOC. |
3.4.1.6.
Conclusion on all State-owned financial institutions
3.4.1.7.
Private financial institutions entrusted or directed by the State
3.4.1.8.
Credit ratings
3.4.2.
Preferential financing: loans
3.4.2.1.
Types of loans
(1) Short-term and long-term loans
(2) Loans with the specific purpose to replace other loans
3.4.2.2.
Specificity
3.4.2.3.
Calculation of the subsidy amount
(a) Nanshan Group
(b) Wanshun Group
(c) Daching Group
3.4.2.4.
Conclusion on preferential financing: loans
Company name |
Subsidy amount |
Nanshan Group |
1,45 % |
Wanshun Group |
1,93 % |
Daching Group |
4,36 % |
3.5.
Preferential financing: other types of financing
3.5.1.
Credit lines
3.5.1.1.
General
3.5.1.2.
Findings of the investigation
3.5.1.3.
Specificity
3.5.1.4.
Calculation of the subsidy amount
3.5.2.
Bank acceptance drafts
3.5.2.1.
General
3.5.2.2.
Specificity
3.5.2.3.
Calculation of the subsidy amount
3.6.
Convertible corporate bonds
3.6.1.1.
Legal basis/Regulatory Framework
3.6.1.2.
Financial institutions acting as public bodies
3.6.1.3.
Specificity
3.6.1.4.
Calculation of the subsidy amount
3.6.2.
Corporate bonds
3.6.2.1.
Legal basis/Regulatory Framework
3.6.2.2.
Financial institutions acting as public bodies
3.6.2.3.
Specificity
3.6.2.4.
Calculation of the subsidy amount
3.6.3.
Conclusion on preferential financing: other types of financing
Company name |
Subsidy amount |
Nanshan Group |
7,78 % |
Wanshun Group |
3,20 % |
Daching Group |
2,82 % |
3.6.4.
Preferential insurance: export credit insurance
3.6.4.1.
Legal basis/Regulatory Framework
3.6.4.2.
Findings of the investigation
3.6.4.3.
Calculation of the subsidy amount
Company name |
Subsidy amount |
Nanshan Group |
0,11 % |
Wanshun Group |
0,27 % |
Daching Group |
0,13 % |
3.7.
Grant programmes
3.7.1.
Grants related to technology, innovation and development
3.7.1.1.
Legal basis/Regulatory Framework
3.7.1.2.
Findings of the investigation
3.7.1.3.
Specificity
3.7.1.4.
Calculation of the subsidy amount
3.7.2.
Other grants
3.7.2.1.
Legal basis/Regulatory Framework
3.7.2.2.
Findings of the investigation
3.7.2.3.
Specificity
3.7.2.4.
Calculation of the subsidy amount
Company name |
Subsidy amount |
Nanshan Group |
1,22 % |
Wanshun Group |
0,42 % |
Daching Group |
0,25 % |
3.8.
Revenue foregone through tax exemptions and reduction programmes
3.8.1.
Direct tax exemptions and reductions
3.8.1.1.
EIT privileges for High and New Technology Enterprises
3.8.1.2.
Legal basis/Regulatory Framework
3.8.1.3.
Findings of the investigation
3.8.1.4.
Calculation of the subsidy amount
3.8.2.
EIT offset for research and development expenses
3.8.2.1.
Legal basis/Regulatory Framework
3.8.2.2.
Findings of the investigation
3.8.2.3.
Calculation of the subsidy amount
3.8.3.
Dividends exemption between qualified resident enterprises
3.8.3.1.
Legal basis/Regulatory Framework
3.8.3.2.
Findings of the investigation
3.8.3.3.
3. Calculation of the subsidy amount
3.8.4.
Land use tax exemption
3.8.4.1.
Legal basis/Regulatory Framework
3.8.4.2.
Findings of the investigation
3.8.4.3.
Specificity
3.8.4.4.
Calculation of the subsidy amount
3.8.5.
Indirect tax and tariff exemption programmes
3.8.5.1.
VAT exemptions and import tariff rebates for the use of imported equipment and technology
3.8.5.2.
Legal basis/Regulatory Framework
3.8.5.3.
Findings of the investigation
3.8.5.4.
Calculation of the subsidy amount
3.8.6.
Total for all tax exemption schemes and reduction programmes
Company name |
Subsidy amount |
Nanshan Group |
2,51 % |
Wanshun Group |
0,70 % |
Daching Group |
1,06 % |
3.9.
Government provision of goods and services for less than adequate remuneration
3.9.1.
Provision of land for less than adequate remuneration
3.9.1.1.
Legal basis/Regulatory Framework
3.9.1.2.
Findings of the investigation
3.9.1.3.
Specificity
3.9.1.4.
Calculation of the subsidy amount
Company name |
Subsidy amount |
Nanshan Group |
4,47 % |
Wanshun Group |
1,78 % |
Daching Group |
1,28 % |
3.9.2.
Provision of electricity at reduced rate
3.9.2.1.
Legal basis/Regulatory Framework
3.9.2.2.
Findings of the investigation
3.9.2.3.
Specificity
3.9.2.4.
Calculation of the subsidy amount
Company name |
Subsidy amount |
Wanshun Group |
0,18 % |
Daching Group |
0,20 % |
3.9.3.
Provision of input materials for less than adequate remuneration
3.9.3.1.
Provision of primary aluminium for less than adequate remuneration
3.9.3.2.
Provision of steam coal for less than adequate remuneration
3.10.
Conclusion on subsidisation
Company name |
Subsidy amount |
Nanshan Group |
18,2 % |
Wanshun Group |
8,6 % |
Daching Group |
10,1 % |
Other cooperating companies |
12,3 % |
All other companies |
18,2 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
|
2017 |
2018 |
2019 |
IP |
||
Total Union consumption |
201 281 |
201 696 |
191 084 |
189 149 |
||
Index |
100 |
100 |
95 |
94 |
||
Captive market |
27 209 |
27 340 |
28 727 |
29 128 |
||
Index |
100 |
100 |
106 |
107 |
||
Free market |
174 073 |
174 356 |
162 358 |
160 021 |
||
Index |
100 |
100 |
93 |
92 |
||
|
4.4.
Imports from the country concerned
4.4.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
IP |
||
Volume of imports from the country concerned (tonnes) |
36 660 |
42 343 |
46 595 |
44 276 |
||
Index |
100 |
115 |
127 |
121 |
||
Market share |
18 % |
21 % |
24 % |
23 % |
||
Index |
100 |
115 |
134 |
129 |
||
|
4.4.2.
Prices of the imports from the country concerned and price undercutting
|
2017 |
2018 |
2019 |
IP |
||
Import price |
2 869 |
2 893 |
2 801 |
2 782 |
||
Index |
100 |
101 |
98 |
97 |
||
|
4.5.
Economic situation of the Union industry
4.5.1.
General remarks
4.5.2.
Macroeconomic indicators
4.5.2.1.
Production, production capacity and capacity utilisation
|
2017 |
2018 |
2019 |
IP |
||
Production volume (tonnes) |
240 005 |
240 349 |
212 713 |
208 976 |
||
Index |
100 |
100 |
89 |
87 |
||
Production capacity (tonnes) |
296 161 |
283 091 |
281 091 |
278 319 |
||
Index |
100 |
96 |
95 |
94 |
||
Capacity utilisation |
81 % |
85 % |
76 % |
75 % |
||
Index |
100 |
105 |
93 |
93 |
||
|
(c) Sales volume and market share
|
2017 |
2018 |
2019 |
IP |
||
Total sales volume on the Union market (tonnes) |
148 840 |
144 726 |
130 060 |
132 227 |
||
Index |
100 |
97 |
87 |
89 |
||
Market share |
74 % |
72 % |
68 % |
70 % |
||
Index |
100 |
97 |
92 |
95 |
||
Captive market sales (tonnes) |
22 378 |
22 392 |
23 972 |
25 106 |
||
Index |
100 |
100 |
107 |
112 |
||
Market share of captive market sales |
11 % |
11 % |
13 % |
13 % |
||
Index |
100 |
100 |
113 |
119 |
||
Free market sales (tonnes) |
126 462 |
122 334 |
106 087 |
107 120 |
||
Index |
100 |
97 |
84 |
85 |
||
Market share of free market sales |
63 % |
61 % |
56 % |
57 % |
||
Index |
100 |
97 |
88 |
90 |
||
|
4.5.2.2.
Growth
4.5.2.3.
Employment and productivity
|
2017 |
2018 |
2019 |
IP |
||
Number of employees |
2 220 |
2 151 |
2 072 |
2 003 |
||
Index |
100 |
97 |
93 |
90 |
||
Productivity (tonne/FTE) |
108 |
112 |
103 |
104 |
||
Index |
100 |
103 |
95 |
97 |
||
|
4.5.2.4.
Magnitude of the subsidy margin and recovery from past subsidisation
4.5.3.
Microeconomic indicators
4.5.3.1.
6. Prices and factors affecting prices
|
2017 |
2018 |
2019 |
IP |
||
Average unit sales price on the free market (EUR/tonne) |
3 396 |
3 557 |
3 408 |
3 359 |
||
Index |
100 |
105 |
100 |
99 |
||
Unit cost of production (EUR/tonne) |
3 423 |
3 642 |
3 733 |
3 687 |
||
Index |
100 |
106 |
109 |
108 |
||
|
4.5.3.2.
7. Labour cost
|
2017 |
2018 |
2019 |
IP |
||
Average labour costs per employee (EUR) |
75 686 |
80 542 |
74 897 |
94 489 |
||
Index |
100 |
106 |
99 |
125 |
||
|
4.5.3.3.
Inventories
|
2017 |
2018 |
2019 |
IP |
||
Closing stocks (tonnes) |
8 745 |
8 598 |
6 664 |
7 491 |
||
Index |
100 |
98 |
76 |
86 |
||
Closing stocks as a percentage of production |
7,9 % |
7,9 % |
7,3 % |
8,2 % |
||
Index |
100 |
99 |
92 |
103 |
||
|
4.5.3.4.
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) |
-1,9 % |
-1,0 % |
-8,1 % |
-9,6 % |
||
Cash flow (EUR) |
1 714 095 |
12 673 563 |
2 805 796 |
-11 241 877 |
||
Index |
100 |
739 |
164 |
- 656 |
||
Investments (EUR) |
21 447 204 |
19 751 766 |
19 457 392 |
16 592 531 |
||
Index |
100 |
92 |
91 |
77 |
||
Return on investments |
-2 % |
-5 % |
-19 % |
-24 % |
||
Index |
- 100 |
- 210 |
- 769 |
- 997 |
||
|
4.6.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the subsidised imports
5.2.
Effects of other factors
5.2.1.
Consumption
5.2.2.
COVID-19 pandemic
5.2.3.
Lack of investment
5.2.4.
Restructuring of the Union industry
5.2.5.
High wages, energy costs and lack of vertical integration
5.2.6.
Imports from third countries
Country |
|
2017 |
2018 |
2019 |
IP |
||
Total of all third countries except the country concerned |
Volume (tonnes) |
10 950 |
9 680 |
9 675 |
8 625 |
||
Index |
100 |
88 |
88 |
79 |
|||
Market share |
5 % |
5 % |
5 % |
5 % |
|||
Average price |
3 192 |
3 386 |
3 474 |
3 575 |
|||
Index |
100 |
106 |
109 |
112 |
|||
|
5.2.7.
Export performance of the Union industry
|
2017 |
2018 |
2019 |
IP |
||
Export volume (tonnes) |
57 956 |
74 277 |
69 027 |
61 811 |
||
Index |
100 |
128 |
119 |
107 |
||
Average price (EUR/tonne) |
3 498 |
3 632 |
3 475 |
3 400 |
||
Index |
100 |
104 |
99 |
97 |
||
|
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry and suppliers
6.2.
Interest of users
6.3.
End-use exemption request
6.4.
Interest of importers
6.5.
Weighing of the competing interests
6.6.
Conclusion on Union interest
7.
PRICE UNDERTAKING OFFER
8.
DEFINITIVE COUNTERVAILING MEASURES
8.1.
Level of the definitive countervailing measures
Company |
Definitive countervailing duty |
Daching Group, including Xiamen Xiashun Aluminium Foil Co., Ltd |
10,1 % |
Nanshan Group, including Yantai Donghai Aluminum Foil Co., Ltd. |
18,2 % |
Wanshun Group, including Jiangsu Zhongji Lamination Materials Co., Ltd. |
8,6 % |
Other cooperating companies listed in Annex |
12,3 % |
All other companies |
18,2 % |
Company |
Amount of subsidisation |
Dumping margin |
Injury elimination level |
Countervailing duty rate |
Anti-dumping duty rate |
Wanshun Group, including Jiangsu Zhongji Lamination Materials Co., Ltd. |
8,6 % |
81,5 % |
28,5 % |
8,6 % |
28,5 % |
Daching Group, including Xiamen Xiashun Aluminium Foil Co., Ltd |
10,1 % |
16,1 % |
15,4 % |
10,1 % |
6,0 % |
Nanshan Group, including Yantai Donghai Aluminum Foil Co., Ltd. |
18,2 % |
98,5 % |
24,6 % |
18,2 % |
24,6 % |
Other companies cooperating in anti-dumping and in anti-subsidy investigation listed in Annex I |
12,3 % |
69,5 % |
23,6 % |
12,3 % |
23,6 % |
Other companies cooperating in anti-dumping investigation but not in anti-subsidy investigation listed in Annex II |
18,2 % |
69,5 % |
23,6 % |
18,2 % |
23,6 % |
All other companies |
18,2 % |
98,5 % |
28,5 % |
18,2 % |
28,5 % |
9.
DISCLOSURE
10.
FINAL PROVISIONS
Article 1
Company |
Definitive countervailing duty |
TARIC additional code |
Xiamen Xiashun Aluminium Foil Co., Ltd |
10,1 % |
C687 |
Yantai Donghai Aluminum Foil Co., Ltd. |
18,2 % |
C688 |
Jiangsu Zhongji Lamination Materials Co., Ltd. |
8,6 % |
C686 |
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex 1 |
12,3 % |
See Annex I |
Other companies cooperating in anti-dumping investigation but not in anti-subsidy investigation listed in Annex II |
18,2 % |
See Annex II |
All other companies |
18,2 % |
C999 |
Article 2
Company |
Definitive anti-dumping duty |
TARIC additional code |
Xiamen Xiashun Aluminium Foil Co., Ltd |
6,0 % |
C687 |
Yantai Donghai Aluminum Foil Co., Ltd. |
24,6 % |
C688 |
Jiangsu Zhongji Lamination Materials Co., Ltd. |
28,5 % |
C686 |
Other companies cooperating in both anti-subsidy and anti-dumping investigation listed in Annex 1 |
23,6 % |
See Annex I |
Other companies cooperating in anti-dumping investigation but not in anti-subsidy investigation listed in Annex II |
23,6 % |
See Annex II |
All other companies |
28,5 % |
C999’ |
Article 3
ANNEX I
Other companies cooperating in both anti-subsidy and anti-dumping investigation
Country |
Name |
TARIC additional code |
People’s Republic of China |
Zhangjiagang Fineness Aluminum Foil Co., Ltd. |
C689 |
People’s Republic of China |
Kunshan Aluminium Co., Ltd. |
C690 |
People’s Republic of China |
Luoyang Wanji Aluminium Processing Co., Ltd. |
C692 |
People’s Republic of China |
Shanghai Sunho Aluminum Foil Co., Ltd. |
C693 |
People’s Republic of China |
Binzhou Hongbo Aluminium Foil Technology Co. Ltd. |
C694 |
ANNEX II
Other companies cooperating in the anti-dumping investigation but not in the anti-subsidy investigation
Country |
Name |
TARIC additional code |
People’s Republic of China |
Suntown Technology Group Corporation Limited |
C691 |