COMMISSION IMPLEMENTING REGULATION (EU) 2021/633
of 14 April 2021
imposing a definitive anti-dumping duty on imports of monosodium glutamate originating in the People’s Republic of China and in 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. Parallel anti-circumvention investigation
1.5. Review investigation period and period considered
1.6. Interested parties
1.6.1. Sampling
1.6.1.1. Sampling of producers in the People’s Republic of China and Indonesia
1.6.1.2. Sampling of importers
1.6.2. Replies to the questionnaire
1.6.3. Verification
2. PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1. Product under review
2.2. Like product
3. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING
3.1. Preliminary remarks
3.1.1. PRC
3.1.2. Indonesia
3.2. Continuation of dumping during the review investigation period
3.2.1. PRC
3.2.2. Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of product under review originating in the PRC.
3.2.2.1. Normal value
3.2.3. Existence of significant distortions
3.2.3.1. Introduction
3.2.3.2. Significant distortions affecting the domestic prices and costs in the PRC
3.2.3.3. Significant distortions according to Article 2(6a)(b), first indent of the basic Regulation: the market in question being served to a significant extent by enterprises which operate under the ownership, control or policy supervision or guidance of the authorities of the exporting country
3.2.3.4. Significant distortions according to Article 2(6a)(b), second indent of the basic Regulation: State presence in firms allowing the state to interfere with respect to prices or costs
3.2.3.5. Significant distortions according to Article 2(6a)(b), third indent of the basic Regulation: public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces
3.2.3.6. Significant distortions according to Article 2(6a)(b), fourth indent of the basic Regulation: the lack, discriminatory application or inadequate enforcement of bankruptcy, corporate or property laws
3.2.3.7. Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.2.3.8. Significant distortions according to Article 2(6a)(b), sixth indent of the basic Regulation: access to finance granted by institutions which implement public policy objectives or otherwise not acting independently of the State
3.2.3.9. Systemic nature of the distortions described
3.2.3.10. Conclusion
3.2.4. Representative country
3.2.4.1. General remarks
3.2.4.2. Production of the product under investigation in the representative country and level of economic development similar to the PRC
3.2.4.3. Readily available data in the representative country
3.2.4.4. Conclusion on representative country
3.2.5. Sources used to establish undistorted costs and benchmarks
3.2.6. Factors of production
Factor of production |
Commodity code |
Unit of measurement |
Undistorted value |
Raw materials |
|||
Corn |
1005 90 90 00 2 |
KG |
1,59 CNY/kg |
Enzymes |
3507 |
KG |
73,81 CNY/kg |
Anhydrous ammonia |
2814 10 |
KG |
1,97 CNY/kg |
Oxygen-function amino-compounds |
2922 49 |
KG |
57,89 CNY/kg |
Sulphuric acid |
2807 0000 10 2 |
KG |
0,49 CNY/kg |
Phosphoric Acid |
2809 20 32 |
KG |
7,89 CNY/kg |
Sodium hydroxide in aqueous solution |
2815 12 |
KG |
2,30 CNY/kg |
Sodium bicarbonate |
2836 30 |
KG |
3,20 CNY/kg |
Disodium phosphate |
2835 22 00 |
KG |
7,4 CNY/kg |
Activated Carbon |
3802 10 00 00 0 |
KG |
25,75 CNY/kg |
Liquid oxygen |
2804 40 |
KG |
1,06 CNY/kg |
Energy/Consumable Items |
|||
Oil |
2710 19 |
L |
3,35 CNY/L |
Rice Husk |
1213 00 |
KG |
3,91 CNY/kg |
Electricity |
Provincial Electricity Authority of Thailand |
KWH |
0,71 CNY/kWh |
Labour |
|||
Direct Labour |
International Labour Organization – ILOSTAT |
HRS |
17,13 CNY/hour |
By product/waste |
|||
Liquid Fertilizer |
3105 |
KG |
2,64 (neg.) CNY/kg |
3.2.6.1. Raw materials
3.2.6.2. Labour
3.2.6.3. Electricity
3.2.6.4. Consumables/negligible quantities
3.2.6.5. Manufacturing overhead costs, SG&A, profits and depreciation
3.2.7. Calculation
3.2.8. Export price
3.2.9. Comparison and dumping margin
3.2.10. Conclusion
3.3. Indonesia
3.3.1. Normal value
3.3.2. Export price
3.3.3. Comparison and dumping margin
3.3.4. Conclusion
4. LIKELIHOOD OF CONTINUATION OF DUMPING
4.1. PRC
4.1.1. Production capacity and spare capacity in the PRC
4.1.2. Attractiveness of the Union market, export prices to third country markets and circumvention
4.1.3. Conclusion on the likelihood of continuation of dumping
4.2. Indonesia
4.2.1. Production capacity and spare capacity in Indonesia
4.2.2. Market situation in Indonesia
4.2.3. Attractiveness of the Union market and export prices to third country markets
4.2.4. Conclusion on the likelihood of continuation of dumping
5. INJURY
5.1. Definition of the Union industry and Union production
5.2. Union consumption
|
2016 |
2017 |
2018 |
Review Investigation Period |
Free market |
[48 170 –78 448 ] |
[49 430 –80 501 ] |
[46 745 –76 127 ] |
[45 712 –74 445 ] |
Index (FY2016 = 100) |
100 |
103 |
97 |
95 |
Captive market |
[78 – 127] |
[104 – 169] |
[125 – 204] |
[190 – 310] |
Index (FY2016 = 100) |
100 |
134 |
161 |
245 |
Captive consumption v Free market consumption |
0,16 % |
0,21 % |
0,27 % |
0,42 % |
Source: Questionnaire reply, Eurostat |
5.3. Imports from the countries concerned
5.3.1. Volume and market share of the imports from the countries concerned
|
2016 |
2017 |
2018 |
Review Investigation Period |
Volume of imports from the PRC |
3 604 |
3 643 |
2 223 |
3 485 |
Index (FY2016 = 100) |
100 |
101 |
62 |
97 |
Market share |
[3,7 % – 6,0 %] |
[3,6 % – 5.9] |
[2,3 % – 3,8 %] |
[3,7 % – 6,1 %] |
Index (FY2016 = 100) |
100 |
99 |
64 |
102 |
Volume of imports from Indonesia |
7 496 |
7 855 |
8 269 |
5 060 |
Index (FY2016 = 100) |
100 |
105 |
110 |
68 |
Market share |
[7,6 % – 12,4 %] |
[7,8 % – 12,7 %] |
[8,7 % – 14,1 %] |
[5,4 % – 8,8 %] |
Index (FY2016 = 100) |
100 |
102 |
114 |
71 |
Source: Eurostat |
5.3.2. Inward processing system
|
2016 |
2017 |
2018 |
Review Investigation Period |
Import volume from the PRC under the normal regime |
1 930 |
1 022 |
872 |
1 125 |
Index (FY2016 = 100) |
100 |
53 |
45 |
58 |
Market share |
[2,0 % – 3,2 %] |
[1,0 % – 1,7 %] |
[0,9 % – 1,5 %] |
[1,2 % – 2,0 %] |
Index (FY2016 = 100) |
100 |
52 |
47 |
61 |
Import volume from the PRC under the inward processing system |
1 673 |
2 621 |
1 351 |
2 359 |
Index (FY2016 = 100) |
100 |
157 |
81 |
141 |
Market share |
[1,7 % – 2,8 %] |
[2,6 % – 4,2 %] |
[1,4 % – 2,3 %] |
[2,5 % – 4,1 %] |
Index (FY2016 = 100) |
100 |
153 |
83 |
149 |
Source: Eurostat |
5.3.3. Prices of the imports from the countries concerned and price undercutting
|
2016 |
2017 |
2018 |
Review Investigation Period |
The PRC |
1,06 |
0,89 |
0,88 |
0,93 |
Index (FY2016 = 100) |
100 |
85 |
83 |
88 |
Indonesia |
1,24 |
1,12 |
1,07 |
1,17 |
Index (FY2016 = 100) |
100 |
91 |
87 |
94 |
Source: Eurostat (without imports under inward processing) |
5.4. Imports from third countries other than the PRC and Indonesia
Country |
|
2016 |
2017 |
2018 |
Review Investigation Period |
Vietnam |
Volume (tonnes) |
3 399 |
1 523 |
1 642 |
2 642 |
Index (FY2016 = 100) |
100 |
45 |
48 |
78 |
|
Market share |
[3,5 % – 5,6 %] |
[1,5 % – 2,5 %] |
[1,7 % – 2,8 %] |
[2,8 % – 4,6 %] |
|
Index (FY2016 = 100) |
100 |
44 |
50 |
82 |
|
Average price (EUR/kg) |
1,32 |
1,34 |
1,24 |
1,31 |
|
Index (FY2016 = 100) |
100 |
101 |
94 |
99 |
|
Brazil |
Volume (tonnes) |
1 900 |
1 296 |
1 014 |
1 339 |
Index (FY2016 = 100) |
100 |
68 |
53 |
70 |
|
Market share |
[1,9 % – 3,1 %] |
[1,3 % – 2,1 %] |
[1,1 % – 1,7 %] |
[1,4 % – 2,3 %] |
|
Index (FY2016 = 100) |
100 |
67 |
55 |
74 |
|
Average price (EUR/kg) |
1,20 |
1,20 |
1,21 |
1,22 |
|
Index (FY2016 = 100) |
100 |
100 |
101 |
102 |
|
Other third countries |
Volume (tonnes) |
344 |
345 |
386 |
365 |
Index (FY2016 = 100) |
100 |
100 |
112 |
106 |
|
Market share |
[0,3 % – 0,6 %] |
[0,3 % – 0,6 %] |
[0,4 % – 0,7 %] |
[0,4 % – 0,6 %] |
|
Index (FY2016 = 100) |
100 |
98 |
116 |
112 |
|
Average price (EUR/kg) |
2,49 |
2,83 |
2,39 |
2,65 |
|
Index (FY2016 = 100) |
100 |
114 |
96 |
107 |
|
Total of all third countries except the countries concerned |
Volume (tonnes) |
5 642 |
3 164 |
3 041 |
4 346 |
Index (FY2016 = 100) |
100 |
56 |
54 |
77 |
|
Market share |
[5,7 % – 9,3 %] |
[3,1 % – 5,1 %] |
[3,2 % – 5,2 %] |
[4,7 % – 7,6 %] |
|
Index (FY2016 = 100) |
100 |
55 |
56 |
81 |
|
Average price (EUR/kg) |
1,35 |
1,44 |
1,38 |
1,40 |
|
Index (FY2016 = 100) |
100 |
107 |
102 |
103 |
|
Source: Eurostat |
5.5. Economic situation of the Union industry
5.5.1. General remarks
5.5.2. Production, production capacity and capacity utilisation
|
2016 |
2017 |
2018 |
Review Investigation Period |
Production volume (tonnes) |
[47 400 –77 195 ] |
[50 105 –81 599 ] |
[48 624 –79 188 ] |
[50 108 –81 605 ] |
Index (FY2016 = 100) |
100 |
106 |
103 |
106 |
Production capacity (tonnes) |
[61 600 –100 320 ] |
[61 600 –100 320 ] |
[61 600 –100 320 ] |
[61 600 –100 320 ] |
Index (FY2016 = 100) |
100 |
100 |
100 |
100 |
Capacity utilisation |
[54 % – 88 %] |
[57 % – 93 %] |
[55 % – 90 %] |
[57 % – 93 %] |
Index (FY2016 = 100) |
100 |
106 |
103 |
106 |
Source: Questionnaire reply |
5.5.3. Sales volume and market share
|
2016 |
2017 |
2018 |
Review Investigation Period |
Sales volume on the Union market (tonnes) |
[36 451 – 59 363 ] |
[39 167 – 63 787 ] |
[37 272 – 60 700 ] |
[36 689 – 59 750 ] |
Index (FY2016 = 100) |
100 |
107 |
102 |
101 |
Market share |
[53 % – 89 %] |
[55 % – 93 %] |
[56 % – 93 %] |
[56 % – 94 %] |
Index (FY2016 = 100) |
100 |
105 |
105 |
106 |
Source: Questionnaire reply |
5.5.3.1. Growth
5.5.4. Employment and productivity
|
2016 |
2017 |
2018 |
Review Investigation Period |
Number of employees |
[137 – 222] |
[138 – 225] |
[133 – 217] |
[132 – 215] |
Index (FY2016 = 100) |
100 |
101 |
97 |
97 |
Productivity (tonnes/employee) |
[243 – 396] |
[253 – 413] |
[256 – 416] |
[266 – 433] |
Index (FY2016 = 100) |
100 |
104 |
105 |
109 |
Source: Questionnaire reply |
5.5.5. Magnitude of the dumping margin and recovery from past dumping
5.5.6. Prices and factors affecting prices
|
2016 |
2017 |
2018 |
Review Investigation Period |
Average unit sales price on the free market (EUR/kg) |
[0,94 – 1,52] |
[0,86 – 1,40] |
[0,84 – 1,36] |
[0,87 – 1,42] |
Index (FY2016 = 100) |
100 |
92 |
90 |
93 |
Unit cost of production (EUR/kg) |
[0,91 – 1,49] |
[0,91 – 1,49] |
[0,95 – 1,55] |
[0,88 – 1,43] |
Index (FY2016 = 100) |
100 |
100 |
104 |
96 |
Source: Questionnaire reply |
5.5.7. Labour costs
|
2016 |
2017 |
2018 |
Review Investigation Period |
Average labour costs per employee (EUR) |
[49 321 –80 323 ] |
[50 538 –82 304 ] |
[48 606 –79 159 ] |
[48 282 –78 631 ] |
Index (FY2016 = 100) |
100 |
102 |
99 |
98 |
Source: Questionnaire reply |
5.5.8. Inventories
|
2016 |
2017 |
2018 |
Review Investigation Period |
Closing stocks (tonnes) |
[12 765 –20 789 ] |
[9 706 –15 807 ] |
[8 054 –13 116 ] |
[9 926 –16 166 ] |
Index (FY2016 = 100) |
100 |
76 |
63 |
78 |
Closing stocks as a percentage of production |
[19 % – 31 %] |
[14 % – 22 %] |
[12 % – 19 %] |
[14 % – 23 %] |
Index (FY2016 = 100) |
100 |
72 |
62 |
74 |
Source: Questionnaire reply |
5.5.9. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2016 |
2017 |
2018 |
Review Investigation Period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
[1,6 % – 2,7 %] |
[-7,2 % – -4,4 %] |
[-15,35 % – -9,4 %] |
[-0,6 % – -0,4 %] |
Index (FY2016 = 100) |
100 |
-269 |
-574 |
-22 |
Cash flow (thousands EUR) |
[5 822 – 9 481 ] |
[3 838 – 6 251 ] |
[-3 733 – -2 292 ] |
[2 886 – 4 699 ] |
Index (FY2016 = 100) |
100 |
66 |
-39 |
50 |
Investments (thousands EUR) |
[4 302 – 7 006 ] |
[4 609 – 7 506 ] |
[5 419 – 8 825 ] |
[3 307 – 5 386 ] |
Index (FY2016 = 100) |
100 |
107 |
126 |
77 |
Return on investments |
[0,3 % – 0,5 %] |
[-6,3 % – -3,9 %] |
[-14,6 % – -8,9 %] |
[-1,5 % – -0,9 %] |
Index (FY2016 = 100) |
100 |
-1 168 |
-2 701 |
-286 |
Source: Questionnaire reply |
5.6. Conclusion on injury
6. LIKELIHOOD OF CONTINUATION AND/OR RECURRENCE OF INJURY
6.1. Likelihood of continuation of injury from the PRC
6.1.1. The production capacity, spare capacity in the PRC and attractiveness of the Union market
6.1.2. Impact of imports from the PRC on the situation of the Union industry should the measures be allowed to lapse
6.1.3. Conclusion
6.2. Likelihood of recurrence of injury from Indonesia
6.2.1. Production capacity and spare capacity in Indonesia, market situation in Indonesia and attractiveness of the Union market
6.2.2. Impact of imports from Indonesia on the situation of the Union industry should the measures be allowed to lapse
6.2.3. Conclusion
7. UNION INTEREST
7.1. Interest of the Union industry
7.2. Interest of unrelated importers
7.3. Interest of users
7.4. Conclusion on Union interest
8. ANTI-DUMPING MEASURES
Article 1
Country |
Company |
Anti-dumping duty (%) |
TARIC additional code |
The PRC |
Hebei Meihua MSG Group Co. Ltd and Tongliao Meihua Bio-Tech Co. Ltd |
33,8 |
A883 |
The PRC |
Fujian Province Jianyang Wuyi MSG Co. Ltd |
36,5 |
A884 |
The PRC |
All other companies |
39,7 |
A999 |
Article 2
Article 3
Article 4
Country |
Company |
Anti-dumping duty (%) |
TARIC additional code |
Indonesia |
PT. Cheil Jedang Indonesia |
7,2 |
B961 |
Indonesia |
PT. Miwon Indonesia |
13,3 |
B962 |
Indonesia |
All other companies |
28,4 |
B999 |