Commercial Information Circulars

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Ref : EIC 230/2/3/2/13

25 March 2010

Dear Sirs,

Commercial Information Circular No. 131/2010

European Union (EU)* : Acceptance of Offers Joining the Joint Price Undertaking Accepted in Connection with the Anti-dumping Measures on Imports of Certain Castings Originating in the Mainland of China

Further to the Commercial Information Circular No. 327/2008 of 13 June 2008, the European Commission (the Commission) has published a decision accepting the undertaking offered in connection with the anti-dumping measures on imports of certain castings originating in the Mainland of China by (i) the China Chamber of Commerce for Import and Export of Machinery and Electronics Products (CCCME) and HanDan County Yan Yuan Smelting and Casting Co., Ltd; (ii) CCCME and XianXian Guozhuang Precision Casting Co. Ltd; and (iii) CCCME and Weifang Stable Casting Co., Ltd., but rejecting the undertaking by Wuxi Norlong Foundry Co., Ltd (Norlong). The notice can be accessed through the following link : http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:077:0055:0058:EN:PDF.

DETAILS

Salient points are set out below :

(a) Product

Castings of non-malleable cast iron and spheroidal graphite cast iron (ductile iron) of a kind used to cover and/or to give access to ground or sub-surface systems, and parts thereof, whether or not machined, coated or painted or fitted with other materials, excluding fire hydrants, originating in the People's Republic of China, currently classifiable within CN codes 7325 10 50, 7325 10 92, ex 7325 10 99 (Taric code 7325 10 99 10), and ex 7325 99 10 (Taric code 7325 99 10 10).

(b) Effective Date

25 March 2010.

BACKGROUND

Definitive anti-dumping duty on imports of certain castings originating in the Mainland of China has been imposed since 30 July 2005 at a rate of 47.8% of the net, free-at-Union-frontier price before duty (except for a number of companies with individual duty ranging from 0% to 37.9%).
Subsequent to the imposition of definitive anti-dumping duty, in 2006, the CCCME together with 20 cooperating Chinese companies offered a joint price undertaking. The offer was accepted by the Commission.
CCCME, together with HanDa, XianXian and Weifang, submitted formal offers to join the joint liability undertaking. According to the undertaking offer, which is identical to the above-mentioned joint undertaking accepted by the Commission in 2006, the CCCME and the companies undertake to ensure that the product concerned was exported at or above a minimum price set at a level that eliminated the injurious effects of dumping. In addition, the offer includes the indexation of the minimum price of the product concerned in accordance with public international quotations for its main raw material. CCCME and the companies also undertake to provide regular and detailed reports to the Commission to allow effective monitoring. Investigation showed that there were no company specific reasons that would call for a refusal of the offer, and as the companies received an individual duty rate, the Commission considered the joint undertaking offered by the CCCME and the companies is acceptable. In the event of a breach or withdrawal of the undertaking, or in case of a withdrawal of acceptance of the undertaking by the Commission, the definitive anti-dumping duty imposed on the product concerned shall automatically apply.
With regard to the separate undertaking offered by Norlong, the Commission considered that the original undertaking accepted was a joint liability undertaking of 20 companies together with the CCCME. Norlong failed to provide any relevant argument suggesting that it was in a different situation as the other companies that are part of the joint undertaking or justifying that it should have a different treatment. Norlong’s separate undertaking offer was therefore rejected.

ENQUIRIES

For enquiries concerning the contents of this circular, please contact the undersigned at telephone number 2398 5684.

Yours faithfully,

(Alex LI)

for Director-General of Trade and Industry

* The EU includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

Note ：

(1) While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.

(2)The biweekly newsletter "Business Alert - EU" of the Hong Kong Trade Development Council provides up-to-date information on the latest developments in EU trade policy and trade regulations. The newsletter is available for free e-subscription and can be accessed through
http://www.tdctrade.com/alert/eualert.htm.