COMMISSION IMPLEMENTING REGULATION (EU) 2023/2757
of 13 December 2023
imposing a definitive anti-dumping duty on imports of trichloroisocyanuric acid originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of the Regulation (EU) 2016/1036 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous investigations and measures in force
1.2.
Initiation of an expiry review
1.3.
Separate newcomer review
1.4.
Request for an expiry review
1.5.
Review investigation period and period considered
1.6.
Interested parties
1.7.
Comments on initiation
1.8.
Sampling
1.8.1.
Sampling of unrelated importers
1.8.2.
Sampling of exporting producers in the People’s Republic of China
1.9.
Questionnaires, replies to the questionnaires
1.10.
Verification visits
1.11.
Subsequent procedure
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
DUMPING
3.1.
Preliminary remarks
3.2.
Non-cooperation from Chinese exporting producers and the GOC
3.3.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of TCCA originating in the PRC
3.4.
Normal value
3.4.1.
Existence of significant distortions
3.4.1.1. Introduction
3.4.1.2. Significant distortions affecting the domestic prices and costs in the PRC
3.4.1.3. 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
3.4.1.4. 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
3.4.1.5. 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
3.4.1.6. 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
3.4.1.7. Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.4.1.8. 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
3.4.1.9. Systemic nature of the distortions described
3.4.1.10. Comments received concerning the existence of significant distortions
3.4.1.11. Conclusion
3.4.2.
Representative country
3.4.2.1. General remarks
3.4.2.2. Conclusion
3.4.3.
Sources used to establish undistorted costs
3.4.4.
Undistorted costs and benchmarks
3.4.5.
Factors of production (‘FOP’)
Factor of Production |
Commodity Code |
Applicable unit cost |
Unit of measurement |
Source of information |
Raw materials |
|
|||
Caustic soda |
2815 12 00 |
522,81 EUR/tonne |
tonnes |
GTA(92) |
Chlorine |
2801 10 00 |
1 416,87 EUR/tonne |
tonnes |
USITC(93) |
Cyanuric acid |
2933 69 80 |
8 475,21 EUR/tonne |
tonnes |
USITC |
Labour |
||||
Labour Cost in manufacturing industries |
N/A |
4,89 EUR/hour |
hours worked |
Instituto Nacional de Estadística y Geografía(94) |
Energy |
||||
Electricity |
N/A |
0,05986 EUR/kWh |
kWh |
Comisión Federal de Electricidad(95) |
Natural gas |
N/A |
0,020 EUR/kWh |
kWh |
Comisión Reguladora de Energía(96) |
3.4.5.1. Raw materials
3.4.5.2. Labour
3.4.5.3. Electricity
3.4.5.4. Natural gas
3.4.5.5. Manufacturing overhead costs, SG&A, and profit
3.4.6.
Calculation of the normal value
3.5.
Export price
3.6.
Comparison
3.7.
Dumping margin
3.8.
Likelihood of continuation of dumping
3.8.1.
Production capacity and spare capacity in the PRC
3.8.2.
Export prices to third countries
3.8.3.
Attractiveness of the Union market
3.8.4.
Conclusion on the likelihood of continuation of dumping
4.
INJURY
4.1.
Preliminary remark
4.2.
Definition of the Union industry and Union production
4.3.
Union consumption
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Union consumption |
[50 000 -60 000 ] |
[55 000 -65 000 ] |
[65 000 -75 000 ] |
[60 000 -70 000 ] |
||
Index |
100 |
[105 -110 ] |
[120 -130 ] |
[110 -120 ] |
||
|
4.4.
Imports from the country concerned
4.4.1.
Volume and market share of the imports from the country concerned
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Volume of imports from the country concerned (tonnes) |
22 680 |
27 727 |
44 546 |
39 826 |
||
Index |
100 |
122 |
196 |
176 |
||
Market share (%) |
[25 -45 ] |
[35 -55 ] |
[50 -70 ] |
[50 -70 ] |
||
Index |
100 |
111 |
152 |
152 |
||
|
4.4.2.
Prices of the imports from the country concerned
|
2019 |
2020 |
2021 |
Review Investigation period |
||
China |
1 681 |
1 307 |
1 499 |
2 559 |
||
Index |
100 |
78 |
89 |
152 |
||
|
4.4.3.
Price undercutting
4.5.
Imports from third countries other than the PRC
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Volume (in tonnes) |
3 772 |
411 |
214 |
806 |
||
Index |
100 |
11 |
6 |
21 |
||
Market share (%) |
[5 -7 ] |
[0 -2 ] |
[0 -2 ] |
[1 -3 ] |
||
Index |
100 |
10 |
4 |
18 |
||
Average price (EUR/tonne) |
1 701 |
1 790 |
3 211 |
3 798 |
||
Index |
100 |
105 |
189 |
223 |
||
|
4.6.
Economic situation of the Union industry
4.6.1.
General remarks
4.6.2.
Economic indicators
4.6.2.1. Production, production capacity and capacity utilisation
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Production volume – Index |
100 |
[110 -115 ] |
[120 -125 ] |
[130 -135 ] |
||
Production capacity – Index |
100 |
[110 -115 ] |
[110 -115 ] |
[110 -115 ] |
||
Capacity utilisation – Index |
100 |
[100 -105 ] |
[105 -110 ] |
[110 -115 ] |
||
|
4.6.2.2. Sales volume and market share
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Total Sales volume on the Union market – Index |
100 |
[110 -115 ] |
[90 -95 ] |
[80 -85 ] |
||
Market share (%) |
[50 -65 ] |
[52 -67 ] |
[35 -45 ] |
[34 -44 ] |
||
Index |
100 |
[100 -105 ] |
[70 -75 ] |
[70 -75 ] |
||
|
4.6.2.3. Growth
4.6.2.4. Employment and productivity
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Number of employees – Index |
100 |
[105 -110 ] |
[125 -130 ] |
[115 -120 ] |
||
Productivity (tonne/employee) – Index |
100 |
[100 -105 ] |
[95 -100 ] |
[110 -115 ] |
||
|
4.6.2.5. Magnitude of the dumping margin and recovery from past dumping
4.6.2.6. Prices and factors affecting prices
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Average unit sales price in the Union – Index |
100 |
[90 -95 ] |
[100 -105 ] |
[125 -130 ] |
||
Unit cost of production – Index |
100 |
[90 -95 ] |
[115 -120 ] |
[155 -160 ] |
||
|
4.6.2.7. Labour costs
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Average labour costs per employee – Index |
100 |
[95 -100 ] |
[95 -100 ] |
[95 -100 ] |
||
|
4.6.2.8. Inventories
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Closing stocks – Index |
100 |
[40 -45 ] |
[70 -75 ] |
[30 -35 ] |
||
Closing stocks as a percentage of production – Index |
100 |
[35 -40 ] |
[55 -60 ] |
[20 -25 ] |
||
|
4.6.2.9. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Profitability of sales in the Union to unrelated customers (%) |
[5 -15 ] |
[7 -20 ] |
[(-10 )-0 ] |
[(-10 )-(-20 )] |
||
Index |
100 |
[130 -140 ] |
[(-10 )-0 ] |
[(-10 )-(-20 )] |
||
Cash flow – Index |
100 |
[145 -150 ] |
[(- 105 )-(- 110 )] |
[(- 170 )-(- 175 )] |
||
Investments – Index |
100 |
[70 -75 ] |
[25 -30 ] |
[75 -80 ] |
||
Return on investments – Index |
100 |
[150 -155 ] |
[(- 150 )-(- 154 )] |
[(- 245 )-(- 250 )] |
||
|
4.6.2.10. Export performance
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Export volume – Index |
100 |
[940 -950 ] |
[2 255 -2 265 ] |
[3 070 -3 080 )] |
||
Average unit price – Index |
100 |
[80 -85 ] |
[85 -90 ] |
[145 -150 ] |
||
|
4.6.2.11. Profitability of the product under review
|
2019 |
2020 |
2021 |
Review Investigation period |
||
Profitability total product under review (%) |
[5 -15 ] |
[7 -21 ] |
[(-10 )-0 ] |
[0 -10 ] |
||
Index |
100 |
[130 -135 ] |
[(-10 )-0 )] |
[0 -10 ] |
||
|
4.7.
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
5.2.2.
Exceptional situation during the RIP and export performance of the Union industry
5.2.3.
Long-term contracts with customers
5.2.4.
Conclusion on causation
6.
LIKELIHOOD OF CONTINUATION OF INJURY
6.1.
Spare capacity in the PRC
6.2.
Trade measures in third country markets
6.3.
Attractiveness of the Union market
6.4.
Post-RIP developments
|
China-EU prices/tonne |
Undercutting |
||
Q4 2022 |
2 139 |
[-5 %-10 %] |
||
Q1 2023 |
1 727 |
[20 %-30 %] |
||
Q2 2023 |
1 507 |
[30 %-40 %] |
||
Period Oct 22-May 23 |
1 731 |
[20 %-25 %] |
||
|
7.
LIKELIHOOD OF RECURRENCE OF INJURY
8.
CONCLUSION ON THE LIKELIHOOD ANALYSIS
9.
UNION INTEREST
9.1.
Interest of the Union industry
9.2.
Interest of unrelated importers and traders
9.3.
Interest of users
9.4.
Conclusion on Union interest
10.
ANTI-DUMPING MEASURES
Article 1
Company |
Anti-dumping duty |
TARIC additional code |
Hebei Jiheng Chemical Co. Limited |
8,1 % |
A604 |
Puyang Cleanway Chemicals Limited |
7,3 % |
A628 |
Heze Huayi Chemical Co. Limited |
3,2 % |
A629 |
Zhucheng Taisheng Chemical Co. Limited |
40,5 % |
A627 |
Liaocheng City Zhonglian Industry Co. Ltd |
32,8 % |
A998 |
All other companies |
42,6 % |
A999 |