Commercial Information Circulars

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

14 July 2010

Dear Sirs,

Commercial Information Circular No. 321/2010

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

Further to the Commercial Information Circulars No. 289/2005 of 2 August 2005, 327/2008 of 13 June 2008, and 131/2010 of 25 March 2010, the European Commission (the Commission) has published a decision repealing the acceptance of a joint price undertaking offered by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) together with 20 cooperating Chinese companies concerning the anti-dumping measures on imports of certain castings originating in the Mainland of China. The decision can be accessed through the following link : http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:179:0008:0010: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, 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

15 July 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 Commission accepted a joint price undertaking offered by the China Chamber of Commerce for Import and Export of Machinery and Electronics Products (CCCME) together with 20 cooperating Chinese companies. According to the undertaking offer, the CCCME and the companies agreed not to sell the product concerned to the first independent customer in the European Union (EU) below a certain minimum import price (MIP) as stated in the undertaking. The companies also agreed not to circumvent the undertaking by, inter alia, making compensatory arrangements with their customers and making misleading declarations on the origin of the product concerned or the identity of the exporter. The CCCME and the companies also undertake to provide regular and detailed quarterly reports to the Commission to allow effective monitoring and to allow on-spot verification visits at their premises in order to verify the accuracy and veracity of the data submitted in the said quarterly reports and to provide all information considered necessary by the Commission. The offer was accepted by the Commission on the condition that a breach by any of the companies or the CCCME shall be considered as a breach of the undertaking by all signatories. The undertaking further stipulates that any breach or suspected breach of any provision of the undertaking shall lead to acceptance of the undertaking being withdrawn for all companies, regardless of the level of materiality of the breach.
A verification visit carried out in 2010 at the premises of one of the co-signatories of the undertaking, Hebei Jize Xian Ma Gang Cast Factory (Ma Gang) indicated that it has been circumventing the terms of the undertaking in several ways since the acceptance of the undertaking. Ma Gang continuously breached the MIP by means of a compensatory arrangement with at least one customer. The company also provided misleading information during the verification visit. In view of the findings, the Commission decided to withdraw the acceptance of the undertaking with effect from 15 July 2010. Accordingly, the definitive anti-dumping duties imposed on imports of the product concerned produced by the companies should apply (for details, please refer to Commercial Information Circular No.289/2005).

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.