COMMISSION IMPLEMENTING REGULATION (EU) 2019/1693
of 9 October 2019
imposing a provisional anti-dumping duty on imports of steel road wheels originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Interested parties
1.3.
Sampling
1.3.1.
Sampling of Union producers
1.3.2.
Sampling of importers
1.3.3.
Sampling of exporting producers in the PRC
1.4.
Individual examination
1.5.
Questionnaire replies and verification visits
1.6.
Investigation period and period considered
1.7.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
2.4.
Conclusion on product concerned
3.
DUMPING
3.1.
Preliminary remarks
3.2.
Normal value
3.2.1.
Existence of significant distortions
3.2.1.1.
Introduction
3.2.1.2.
Significant distortions affecting the domestic prices and costs in the PRC
3.2.1.3.
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
3.2.1.4.
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
3.2.1.5.
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
3.2.1.6.
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
3.2.1.7.
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.2.1.8.
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
3.2.1.9.
Systemic nature of the distortions described
3.2.1.10.
Conclusion
3.2.2.
Representative country
3.2.2.1.
General remarks
3.2.2.2.
A level of economic development similar to the PRC
3.2.2.3.
Production of the product under investigation in the representative country and availability of the relevant public data in the representative country
3.2.2.4.
Level of social and environmental protection
3.2.2.5.
Conclusion
3.2.3.
Sources used to establish undistorted costs
3.2.4.
Undistorted costs and benchmarks
3.2.4.1.
Factors of production
Factor of Production |
Code in the Brazilian tariff classification |
Undistorted value |
||
Raw Materials |
||||
Hot-rolled flat steel products, not pickled, width of 600 mm or more and thickness |
|
|
||
|
7208 36 |
4,91 CNY/kg |
||
|
7208 37 00 |
4,86 CNY/kg |
||
|
7208 38 |
4,89 CNY/kg |
||
|
7208 39 |
4,57 CNY/kg |
||
Section steel |
|
|
||
|
[N/A] |
5,06 CNY/kg |
||
Paint |
|
|
||
|
3208 10 |
42,87 CNY/kg |
||
|
3208 20 |
42,12 CNY/kg |
||
|
3208 90 |
54,65 CNY/kg |
||
|
3907 30 |
28,70 CNY/kg |
||
Welding wire |
|
|
||
|
7217 30 |
12,51 CNY/kg |
||
|
7229 20 00 |
9,73 CNY/kg |
||
|
7229 90 00 |
21,74 CNY/kg |
||
Valve |
8481 30 00 |
10,30 CNY/pcs |
||
Gases |
|
|
||
|
2711 12 |
3,73 CNY/kg |
||
|
2804 21 |
N/A (see recitals (153) and (154)) |
||
|
2804 30 00 |
10,86 CNY/m3 |
||
|
2804 40 00 |
6,69 CNY/m3 |
||
|
2811 21 00 |
24,76 CNY/kg |
||
Other chemicals |
|
|
||
|
2806 10 |
1,68 CNY/kg |
||
|
2815 12 00 |
2,41 CNY/kg |
||
|
2836 20 |
1,45 CNY/kg |
||
|
2918 11 00 |
21,22 CNY/kg |
||
|
3402 19 00 |
15,03 CNY/kg |
||
|
3403 19 00 |
44,54 CNY/kg |
||
|
3810 10 |
66,46 CNY/kg |
||
|
3814 00 |
40,26 CNY/kg |
||
|
3815 90 |
74,48 CNY/kg |
||
|
3906 90 |
17,74 CNY/kg |
||
Labour |
||||
Labour costs in manufacturing sector |
[N/A] |
34,53 CNY/hour |
||
Energy |
||||
Electricity |
[N/A] |
0,69 – 1,01 CNY/kWh |
||
Natural gas |
[N/A] |
3,42 – 4,03 CNY/m3 |
||
Water |
[N/A] |
181,92 CNY/month or 35,41 – 70,67 CNY/ton |
||
Wood pellets |
4401 31 00 |
0,65 CNY/kg |
||
By-product/waste |
||||
Steel scrap in turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings, whether or not in bundles |
7204 41 00 |
1,70 CNY/kg |
(a) Raw materials and scrap
(b) Labour
(c) Electricity
(d) Natural gas and wood pellets
(e) Water
3.2.4.2.
Manufacturing overhead costs, SG&A and profits
3.2.4.3.
Calculation of the normal value
3.3.
Export price
3.4.
Comparison
3.4.1.
Dumping margin
Company |
Provisional dumping margin (%) |
Xingmin Intelligent Transportation Systems Co., Ltd |
69,4 |
Tangshan Xingmin Wheels Co., Ltd. |
69,4 |
Xianning Xingmin Wheels Co., Ltd. |
69,4 |
Company |
Provisional dumping margin (%) |
Xingmin Intelligent Transportation Systems Co., Ltd |
69,4 |
Tangshan Xingmin Wheels Co., Ltd. |
69,4 |
Xianning Xingmin Wheels Co., Ltd. |
69,4 |
Other cooperating companies |
69,4 |
All other companies |
80,1 |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union market and consumption
|
2015 |
2016 |
2017 |
IP |
Total Union consumption (thousand pieces) |
38 554 |
38 523 |
40 161 |
39 387 |
Index |
100 |
100 |
104 |
102 |
Source: EUWA, sampled producers. |
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the PRC
|
2015 |
2016 |
2017 |
IP |
Volume of imports from the PRC (thousand pieces) |
1 007 |
1 257 |
1 963 |
2 093 |
Index |
100 |
125 |
195 |
208 |
Market share |
2,6 % |
3,3 % |
4,9 % |
5,3 % |
Index |
100 |
125 |
187 |
204 |
Source: EUWA. |
4.3.2.
Prices of the imports from the PRC and price undercutting
|
2015 |
2016 |
2017 |
IP |
PRC |
2,04 |
1,90 |
1,85 |
1,90 |
Index |
100 |
93 |
91 |
93 |
Source: Eurostat. |
4.4.
Economic situation of the Union industry
4.4.1.
General remarks
4.4.2.
Macroeconomic indicators
4.4.2.1.
Production, production capacity and capacity utilisation
|
2015 |
2016 |
2017 |
IP |
Production volume (thousand pieces) |
36 399 |
35 252 |
36 860 |
34 999 |
Index |
100 |
97 |
101 |
96 |
Production capacity (thousand pieces) |
52 050 |
52 226 |
52 744 |
52 289 |
Index |
100 |
100 |
101 |
100 |
Capacity utilisation |
69,9 % |
67,5 % |
69,9 % |
66,9 % |
Index |
100 |
97 |
100 |
96 |
Source: EUWA, sampled producers. |
4.4.2.2.
Sales volume and market share
|
2015 |
2016 |
2017 |
IP |
Total sales volume on the Union market (thousand pieces) |
32 731 |
32 299 |
32 581 |
31 451 |
Index |
100 |
99 |
100 |
96 |
Market share |
84,9 % |
83,8 % |
81,1 % |
79,8 % |
Index |
100 |
99 |
96 |
94 |
Source: EUWA, sampled producers. |
4.4.2.3.
Growth
4.4.2.4.
Employment and productivity
|
2015 |
2016 |
2017 |
IP |
Number of employees |
2 970 |
2 949 |
2 947 |
2 985 |
Index |
100 |
99 |
99 |
100 |
Productivity (thousand pieces/employee) |
12,3 |
12,0 |
12,4 |
11,6 |
Index |
100 |
98 |
102 |
95 |
Source: EUWA, sampled producers. |
4.4.2.5.
Magnitude of the dumping margin and recovery from past dumping
4.4.3.
Microeconomic indicators
4.4.3.1.
Prices and factors affecting prices
|
2015 |
2016 |
2017 |
IP |
Average unit EXW sales price in the Union to unrelated customers |
15,3 |
15,8 |
18,0 |
18,4 |
Index |
100 |
104 |
118 |
121 |
Unit cost of production |
14,4 |
14,3 |
17,1 |
18,5 |
Index |
100 |
99 |
118 |
128 |
Source: sampled producers. |
4.4.3.2.
Labour costs
|
2015 |
2016 |
2017 |
IP |
Average labour costs per employee |
51 975 |
48 466 |
51 577 |
53 484 |
Index |
100 |
93 |
99 |
103 |
Source: sampled producers. |
4.4.3.3.
Inventories
|
2015 |
2016 |
2017 |
IP |
Closing stocks (thousand pieces) |
2 327 |
1 845 |
2 155 |
1 631 |
Index |
100 |
79 |
93 |
70 |
Closing stocks as a percentage of production |
6,4 % |
5,2 % |
5,8 % |
4,7 % |
Index |
100 |
82 |
91 |
73 |
Source: EUWA, sampled producers. |
4.4.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2015 |
2016 |
2017 |
IP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
2,3 % |
7,1 % |
3,5 % |
– 1,1 % |
Index |
100 |
309 |
153 |
– 49 |
Cash flow (EUR) |
7,9 % |
11,9 % |
4,3 % |
6,1 % |
Index |
100 |
151 |
54 |
78 |
Investments (000 EUR) |
7 326 |
6 830 |
9 990 |
13 713 |
Index |
100 |
93 |
136 |
187 |
Return on investments |
16,1 % |
48,6 % |
24,7 % |
–5,5 % |
Index |
100 |
301 |
153 |
–34 |
Source: Sampled producers |
4.4.4.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the dumped imports
5.2.
Effects of other factors
5.2.1.
Imports from third countries
Country |
|
2015 |
2016 |
2017 |
IP |
Turkey |
Volume (thousand pieces) |
3 433 |
3 450 |
3 557 |
3 793 |
Index |
100 |
100 |
104 |
110 |
|
Market share |
8,9 % |
9,0 % |
8,9 % |
9,6 % |
|
Index |
100 |
101 |
100 |
108 |
|
Average price (per kilo) |
2,11 |
1,98 |
2,00 |
1,96 |
|
Index |
100 |
94 |
95 |
93 |
|
Other countries |
Volume (thousand pieces) |
1 383 |
1 517 |
2 050 |
2 050 |
Index |
100 |
110 |
148 |
148 |
|
Market share |
3,6 % |
3,9 % |
5,1 % |
5,2 % |
|
Index |
100 |
110 |
142 |
145 |
|
Average price (per kilo) |
2,85 |
2,69 |
2,77 |
2,85 |
|
Index |
100 |
94 |
97 |
100 |
|
Source: EUWA for volumes, Eurostat for price trends. |
5.2.2.
Export performance of the Union industry
|
2015 |
2016 |
2017 |
IP |
Export volume (thousand pieces) |
1 003 |
1 156 |
1 401 |
1 371 |
Index |
100 |
115 |
140 |
137 |
Average price (euro pieces) |
16,2 |
16,0 |
19,3 |
17,4 |
Index |
100 |
99 |
119 |
108 |
Export market share |
3,0 % |
3,5 % |
4,1 % |
4,2 % |
Index |
100 |
116 |
139 |
140 |
Source: EUWA (volume), sampled producers (prices). |
5.2.3.
The price of the steel
|
2015 |
2016 |
2017 |
IP |
Index |
100 |
98 |
122 |
133 |
Source: sampled producers. |
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers and users
6.3.
Conclusion on Union interest
7.
PROVISIONAL ANTI-DUMPING MEASURES
7.1.
Injury elimination level (Injury margin)
7.2.
Provisional measures
Company |
Dumping margin (%) |
Injury margin (%) |
Provisional anti-dumping duty (%) |
Xingmin Intelligent Transportation Systems Co., Ltd |
69,4 |
50,3 |
50,3 |
Tangshan Xingmin Wheels Co., Ltd. |
69,4 |
50,3 |
50,3 |
Xianning Xingmin Wheels Co., Ltd. |
69,4 |
50,3 |
50,3 |
Other cooperating companies |
69,4 |
50,3 |
50,3 |
All other companies |
80,1 |
66,4 |
66,4 |
8.
INFORMATION AT PROVISIONAL STAGE
9.
FINAL PROVISIONS
Article 1
Company |
Provisional anti-dumping duty (%) |
TARIC additional code |
Xingmin Intelligent Transportation Systems Co., Ltd |
50,3 |
C508 |
Tangshan Xingmin Wheels Co., Ltd. |
50,3 |
C509 |
Xianning Xingmin Wheels Co., Ltd. |
50,3 |
C510 |
Other cooperating companies listed in Annex I |
50,3 |
See Annex I |
All other companies |
66,4 |
C999 |
Article 2
Article 3
ANNEX I
Chinese cooperating exporting producers not sampled
Name |
TARIC additional code |
Dongfeng Automobile Chassis System CO., Ltd (also called ‘Dongfeng Automotive Wheel Co., Ltd’) |
|
Hangzhou Forlong Impex Co., Ltd |
|
Hangzhou Xingjie Auto Parts Manufacturing Co., Ltd |
|
Jiaxing Henko Auto Spare Parts Co., Ltd |
|
Jining Junda Machinery Manufacturing Co., Ltd |
|
Nantong Tuenz Corporate Co., Ltd |
|
Ningbo Luxiang Autoparts Manufacturing Co., Ltd |
|
Shandong Zhengshang Wheel Technology Co., Ltd |
|
Shandong Zhengyu Wheel Group Co., Ltd |
|
Xiamen Sunrise Group Co., Ltd |
|
Yantai Leeway Electromechanical Equipment Co., Ltd |
|
Yongkang Yuefei Wheel Co., Ltd |
|
Zhejiang Jingu Co., Ltd |
|
Zhejiang Fengchi Mechanical Co., Ltd |
|
Zhengxing Wheel Group Co., Ltd |
|
Zhenjiang R & D Auto Parts Co., Ltd |
|