COMMISSION IMPLEMENTING REGULATION (EU) 2023/1647
of 21 August 2023
imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People’s Republic of China following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 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.
Separate anti-dumping review investigation
1.5.
Review investigation period and period considered
1.6.
Interested parties
1.7.
Sampling
1.7.1.
Sampling of exporting producers in the PRC
1.7.2.
Sampling of Union producers
1.7.3.
Sampling of unrelated importers
1.8.
Questionnaires and verification visits
1.9.
Disclosure
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
LIKELIHOOD OF CONTINUATION OF SUBSIDISATION
3.1.
Non-cooperation and the use of facts available in accordance with Article 28(1) of the basic Regulation
3.2.
Subsidies and subsidy programmes examined in the current expiry review
3.3.
Subsidies countervailed in the original and previous expiry review investigations
3.3.1.
Preferential lending
3.3.1.1.
Government intervention in favour of the coated fine paper industry
3.3.1.2.
State-owned banks acting as public bodies
3.3.1.3.
Benefit
3.3.1.4.
Specificity
3.3.1.5.
Conclusion
3.3.2.
Income tax Programmes
3.3.2.1.
Preferential tax policies for companies that are recognised as high or new technology enterprises
3.3.2.1.1. Legal Basis
3.3.2.1.2. Eligibility
3.3.2.1.3. Practical implementation
3.3.2.1.4. Findings of the original, previous expiry review and the current investigations.
3.3.2.1.5. Conclusion
3.3.2.2.
Preferential tax policies for research & development
3.3.2.2.1. Legal Basis
3.3.2.2.2. Eligibility
3.3.2.2.3. Practical implementation
3.3.2.2.4. Findings of the original, previous expiry review and current investigation
3.3.2.2.5. Conclusion
3.3.2.3.
Dividend tax exemption between qualified resident entreprises
3.3.2.3.1. Legal Basis
3.3.2.3.2. Eligibility
3.3.2.3.3. Practical implementation
3.3.2.3.4. Findings of the current investigation
3.3.2.3.5. Conclusion
3.3.3.
Indirect Tax and Import Tariff Programmes
3.3.3.1.
Value-Added Tax (VAT) and tariff exemptions on imported equipment
3.3.3.1.1. Legal Basis
3.3.3.1.2. Eligibility
3.3.3.1.3. Practical implementation
3.3.3.1.4. Findings of the original, previous expiry review and current investigation
3.3.3.1.5. Conclusion
3.3.3.2.
VAT rebates on domestically produced equipment
3.3.3.2.1. Legal Basis
3.3.3.2.2. Eligibility
3.3.3.2.3. Practical implementation
3.3.3.2.4. Findings of the original, previous expiry review and current investigation
3.3.3.2.5. Conclusion
3.3.4.
Grant Programmes
3.3.4.1.
Introduction
3.3.4.2.
Findings of the original, previous expiry review and current investigation
3.3.4.3.
Conclusion
3.3.5.
Government Provision of Goods and Services for less than adequate remuneration: provision of land
3.3.5.1.
Legal Basis
3.3.5.2.
Practical implementation
3.3.5.3.
Findings of the original, previous expiry review and recent investigation
3.3.5.4.
Conclusion
3.3.6.
Export insurance programmes for the coated fine paper industry
3.3.6.1.
Legal Basis
3.3.6.2.
Sinosure is a public body
3.3.6.3.
Benefit
3.3.6.4.
Based on the information provided in the request as well as on the findings in recent investigations, the Commission concluded that a benefit within the meaning of Articles 3(2) and 6(c) of the basic Regulation exists since Sinosure, as a policy mandate, provides export credit insurance on terms more favourable than the recipient could normally obtain on the market, or provides insurance cover that would otherwise not be available at all on the market. Specificity
3.3.6.5.
Conclusion
3.3.7.
VAT rebates for products furnished with at least 70% recycled fibre and agricultural residues
3.3.7.1.
Legal Basis
3.3.7.2.
Eligibility
3.3.7.3.
Practical implementation
3.3.7.4.
Findings of the previous review investigation
3.3.7.5.
Conclusion
3.4.
Overall conclusion regarding the continuation of subsidisation
3.5.
Development of imports should measures be repealed
3.5.1.
Production capacity and spare capacity in the PRC
3.5.2.
Attractiveness of the Union market
3.6.
Conclusion on the likelihood of continuation of subsidisation
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Total Union consumption |
3 433 636 |
3 268 584 |
2 453 924 |
2 576 925 |
||
Index |
100 |
95 |
71 |
75 |
||
|
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the country concerned
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Volume of imports from the country concerned (tonnes) |
232 |
242 |
127 |
197 |
||
Index |
100 |
104 |
54 |
85 |
||
Market share |
0,007 % |
0,007 % |
0,005 % |
0,008 % |
||
Index |
100 |
109 |
76 |
113 |
||
|
4.3.2.
Prices of the imports from the country concerned
4.4.
Imports from third countries other than China
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Volume (tonnes) |
7 500 |
6 065 |
35 584 |
24 398 |
||
Index |
100 |
81 |
474 |
325 |
||
Market share |
0,22 % |
0,19 % |
1,45 % |
0,95 % |
||
Index |
100 |
85 |
664 |
433 |
||
Average price (EUR/tonne) |
832 |
931 |
648 |
685 |
||
Index |
100 |
112 |
78 |
82 |
||
|
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
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Production volume (tonnes) |
4 968 337 |
4 582 940 |
3 300 705 |
3 703 442 |
||
Index |
100 |
92 |
66 |
75 |
||
Production capacity (tonnes) |
5 451 528 |
5 121 138 |
4 595 798 |
4 044 648 |
||
Index |
100 |
94 |
84 |
74 |
||
Capacity utilisation |
91,1 % |
89,5 % |
71,8 % |
91,6 % |
||
Index |
100 |
98 |
79 |
100 |
||
|
4.5.2.2.
Sales volume and market share
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Total Sales volume on the Union market (tonnes) |
3 425 903 |
3 262 278 |
2 418 213 |
2 552 330 |
||
Index |
100 |
95 |
71 |
75 |
||
Market share |
99,8 % |
99,8 % |
98,5 % |
99,0 % |
||
Index |
100 |
100 |
99 |
99 |
||
|
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Number of employees |
6 677 |
6 405 |
5 793 |
5 175 |
||
Index |
100 |
96 |
87 |
78 |
||
Productivity (tonne/employee) |
744 |
716 |
570 |
716 |
||
Index |
100 |
96 |
77 |
96 |
||
|
4.5.2.5.
Magnitude of the subsidisation and recovery from past subsidy
4.5.3.
Microeconomic indicators
4.5.3.1.
Prices and factors affecting prices
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Average unit sales price in the Union |
654 |
667 |
616 |
650 |
||
Index |
100 |
102 |
94 |
99 |
||
Unit cost of production |
674 |
662 |
639 |
712 |
||
Index |
100 |
98 |
95 |
106 |
||
|
4.5.3.2.
Labour costs
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Average labour costs per employee (EUR) |
72 907 |
72 704 |
68 780 |
76 280 |
||
Index |
100 |
100 |
94 |
105 |
||
|
4.5.3.3.
Inventories
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Closing stocks (tonnes) |
151 882 |
139 168 |
122 377 |
107 146 |
||
Index |
100 |
92 |
81 |
71 |
||
Closing stocks as a percentage of production |
3,06 % |
3,04 % |
3,71 % |
2,89 % |
||
Index |
100 |
99 |
121 |
95 |
||
|
4.5.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Review Investigation period |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
-3,6 % |
-0,8 % |
-5,6 % |
-9,5 % |
||
Index |
- 100 |
-24 |
- 158 |
- 267 |
||
Cash flow (EUR) |
53 230 728 |
116 531 955 |
68 541 389 |
30 295 619 |
||
Index |
100 |
219 |
129 |
57 |
||
Investments (EUR) |
21 327 970 |
39 328 573 |
20 843 097 |
32 601 304 |
||
Index |
100 |
184 |
98 |
153 |
||
Return on investments |
-7,2 % |
-1,7 % |
-8,7 % |
-24,5 % |
||
Index |
- 100 |
-23 |
- 122 |
- 341 |
||
|
4.6.
Conclusion on injury
5.
LIKELIHOOD OF RECURRENCE OF INJURY
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers and traders
6.3.
Interest of users
6.4.
Conclusion on Union interest
7.
ANTI-SUBSIDY MEASURES
Article 1
Company |
Countervailing duty (%) |
TARIC additional code |
Gold East Paper (Jiangsu) Co., Ltd, Zhenjiang City, Jiangsu Province, PRC; Gold Huasheng Paper (Suzhou Industrial Park) Co., Ltd, Suzhou City, Jiangsu Province, PRC |
12 % |
B001 |
Shangdong Chenming Paper Holdings Limited, Shouguang City, Shandong Province, PRC; Shouguang Chenming Art Paper Co., Ltd, Shouguang City, Shandong Province, PRC |
4 % |
B013 |
All other companies |
12 % |
B999 |