COMMISSION IMPLEMENTING REGULATION (EU) 2021/328
of 24 February 2021
imposing a definitive countervailing duty on imports of continuous filament glass fibre products originating in the People’s Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Measures in force
1.2.
Initiation of an expiry review
1.3.
Review investigation period and period considered
1.4.
Interested parties
1.5.
Sampling
1.5.1.
Sampling of Union producers
1.5.2.
Sampling of unrelated importers
1.5.3.
Sampling of exporting producers in the PRC
1.6.
Questionnaire replies and verification visits
1.7.
Non-cooperation of the GOC
1.8.
Non-cooperation by the Chinese exporting producers
2.
PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
2.2.
Like product
3.
SUBSIDISATION
3.1.
Introduction: Presentation of GOC plans, projects and other documents
3.2.
Subsidies and subsidy programmes within the scope of the current investigation
3.3.
Preferential financing
3.3.1.
Financial institutions providing preferential financing
3.3.2.
Preferential financing: loans
3.3.2.1. Benefit
3.3.2.2. Specificity
3.3.2.3. Conclusion
3.3.3.
Preferential financing: other types of financing
3.3.3.1. Credit lines
3.4.
Preferential insurance: export credit insurance
3.5.
Government provision of goods for less than adequate remuneration
3.5.1.
Raw materials for less than adequate remuneration
3.5.2.
Land use rights (LUR)
(a)
Legal basis
(b)
Findings of the investigation
(c)
Conclusion
(d)
Calculation of the subsidy amount
3.6.
Government revenue that was forgone or not collected
3.6.1.
Provision of electricity at reduced rates
(a)
Legal basis
(b)
Findings of the investigation
(c)
Conclusion
(d)
Calculation of the subsidy amount
3.6.2.
Tax exemption and reduction programmes
3.6.2.1. EIT privileges for High and New Technology Enterprises
(a)
Legal basis
(b)
Findings of the investigation
(c)
Calculation of the subsidy amount
3.6.2.2. EIT offset for research and development expenses
(a)
Legal basis
(b)
Findings of the investigation
(c)
Calculation of the subsidy amount
3.6.2.3. Dividends exemption between qualified resident enterprises
(a)
Legal basis
(b)
Findings of the investigation
(c)
Calculation of the subsidy amount
3.6.2.4. Land use tax exemption
(a)
Legal basis
(b)
Findings of the investigation
(c)
Conclusion
(d)
Calculation of the subsidy amount
3.7.
Conclusion on continuation of subsidisation
3.8.
Developments should measures be repealed
3.8.1.
Capacity
3.8.2.
Prices on the Union market
Importer/tonne |
2016 |
2017 |
2018 |
2019 |
Total |
776 268 |
872 093 |
1 000 941 |
907 082 |
United States |
161 619 |
201 706 |
272 616 |
138 253 |
EU 28 |
97 684 |
94 035 |
97 563 |
95 610 |
South Korea |
78 324 |
86 704 |
87 076 |
82 324 |
India |
39 318 |
47 207 |
66 471 |
62 973 |
Japan |
33 190 |
46 024 |
51 620 |
51 653 |
Importer/EUR per tonne |
2016 |
2017 |
2018 |
2019 |
Total |
926,52 |
867,70 |
844,54 |
820,13 |
United States |
940,09 |
916,30 |
846,45 |
876,85 |
EU 28 |
1 027,18 |
985,83 |
1 044,33 |
1 025,66 |
South Korea |
849,45 |
796,85 |
768,97 |
748,49 |
India |
900,21 |
891,25 |
850,06 |
882,00 |
Japan |
1 025,70 |
929,03 |
906,18 |
913,94 |
3.9.
Conclusion on continuation of subsidisation
4.
INJURY
4.1.
Definition of the Union industry and Union production
|
2016 |
2017 |
2018 |
RIP (2019) |
Total Union Production (tonnes) |
701 611 |
694 178 |
693 123 |
657 750 |
Index |
100 |
99 |
99 |
94 |
Source: Request and Surveillance 2 database |
4.2.
Union consumption
|
2016 |
2017 |
2018 |
RIP (2019) |
Total Union consumption(tonnes) |
978 454 |
1 045 331 |
1 060 071 |
984 122 |
Index (2016 = 100) |
100 |
107 |
108 |
101 |
Source: Request and Surveillance 2 database |
4.3.
Imports from China
4.3.1.
Volume and market share of the imports from China
|
2016 |
2017 |
2018 |
RIP(2019) |
Volume of imports from China (tonnes) |
79 374 |
58 456 |
50 177 |
51 512 |
Index |
100 |
74 |
63 |
65 |
Market share (%) |
8 |
6 |
5 |
5 |
Source: Surveillance 2 database |
4.3.2.
Prices of imports from China
|
2016 |
2017 |
2018 |
RIP(2019) |
Import prices from PRC (EUR per tonne) |
1 068 |
1 058 |
1 028 |
990 |
Index |
100 |
99 |
96 |
93 |
Source: Surveillance 2 database |
4.3.3.
Price undercutting
4.4.
Imports from other third countries
Country |
|
2016 |
2017 |
2018 |
RIP (2019) |
Egypt |
Volume (tonnes) |
50 529 |
95 865 |
147 189 |
141 809 |
Index |
100 |
190 |
291 |
281 |
|
Market share (%) |
5 |
9 |
14 |
14 |
|
Average price |
993 |
918 |
897 |
890 |
|
Malaysia |
Volume (tonnes) |
98 446 |
111 373 |
115 249 |
77 410 |
Index |
100 |
113 |
117 |
79 |
|
Market share (%) |
10 |
11 |
11 |
8 |
|
Average price |
930 |
941 |
985 |
951 |
|
Norway |
Volume (tonnes) |
41 362 |
43 006 |
44 289 |
44 479 |
Index |
100 |
104 |
107 |
108 |
|
Market share (%) |
4 |
4 |
4 |
5 |
|
Average price |
1 156 |
1 126 |
1 101 |
1 078 |
|
All other countries excluding China |
Volume (tonnes) |
86 240 |
85 548 |
93 266 |
89 832 |
Index |
100 |
99 |
108 |
104 |
|
Market share (%) |
9 |
8 |
9 |
9 |
|
Average price |
1 090 |
1 045 |
1 017 |
1 019 |
|
Source: Surveillance 2 database |
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
|
2016 |
2017 |
2018 |
RIP(2019) |
Production capacity (tonnes) |
759 107 |
760 104 |
753 688 |
770 642 |
Index |
100 |
100 |
99 |
102 |
Capacity utilisation (%) |
92 |
91 |
92 |
85 |
Source: Applicant |
4.5.2.2. Sales volume and market share
|
2016 |
2017 |
2018 |
RIP(2019) |
Sales volume on the Union market (tonnes) |
622 504 |
651 082 |
609 902 |
579 080 |
Index |
100 |
105 |
98 |
93 |
Market share (%) |
64 |
62 |
58 |
59 |
Source: Applicant, Surveillance 2 |
4.5.2.3. Employment and productivity
|
2016 |
2017 |
2018 |
RIP |
Number of employees |
3 620 |
3 636 |
3 661 |
3 656 |
Index |
100 |
100 |
101 |
101 |
Productivity (tonne/employee (FTE)) |
194 |
191 |
189 |
180 |
Index |
100 |
99 |
98 |
93 |
Source: Applicant |
4.5.3.
Microeconomic indicators
4.5.3.1. Prices and factors affecting prices
|
2016 |
2017 |
2018 |
RIP |
Average unit sales price in the Union on the total market (EUR/tonne) |
1 167 |
1 123 |
1 139 |
1 106 |
Index |
100 |
96 |
98 |
95 |
Unit cost of production (EUR/tonne) |
1 035 |
1 027 |
1 086 |
1 115 |
Index |
100 |
99 |
105 |
108 |
Source: Sampled Union producers |
4.5.3.2. Labour costs
|
2016 |
2017 |
2018 |
RIP |
Average labour costs per employee (EUR) |
55 351 |
56 722 |
57 703 |
58 366 |
Index |
100 |
102 |
104 |
105 |
Source: Sampled Union producers |
4.5.3.3. Inventories
|
2016 |
2017 |
2018 |
RIP |
Closing stocks (tonnes) |
80 078 |
63 974 |
86 975 |
86 772 |
Index |
100 |
80 |
109 |
108 |
Source: Sampled Union producers |
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2016 |
2017 |
2018 |
RIP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
12,6 |
10 |
7,4 |
3,7 |
Cash flow |
99 824 451 |
99 239 696 |
54 615 552 |
49 028 234 |
Index |
100 |
99 |
55 |
49 |
Investments |
17 532 291 |
34 598 499 |
52 191 829 |
29 187 167 |
Index |
100 |
197 |
298 |
166 |
Return on investment (%) |
18 |
15 |
10 |
6 |
Source: Sampled Union producers |
4.6.
Conclusion on injury
5.
CAUSATION
6.
LIKELIHOOD OF RECURRENCE OF INJURY
6.1.
Likely price levels of imports from China in the absence of anti-subsidy measures
6.2.
Attractiveness of the Union market
6.3.
Spare capacity in China
6.4.
Likelihood of recurrence of injury
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of the users
7.3.
Interest of the unrelated importers
7.4.
Conclusion on Union interest
8.
COUNTERVAILING MEASURES
Article 1
Company |
Definitive countervailing duty (%) |
TARIC additional code |
Jushi Group Co., Ltd; Jushi Group Chengdu Co., Ltd; Jushi Group Jiujiang Co., Ltd. |
10,3 |
B990 |
Changzhou New Changhai Fiberglass Co., Ltd; Jiangsu Changhai Composite Materials Holding Co., Ltd; Changzhou Tianma Group Co., Ltd. |
4,9 |
A983 |
Chongqing Polycomp International Corporation |
9,7 |
B991 |
Other companies cooperating listed in Annex I of Implementing Regulation (EU) No 1379/2014 |
10,2 |
|
All other companies |
10,3 |
A999 |