Commercial Information Circulars

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

27 June 2011

Dear Sirs,

Commercial Information Circular No. 367/2011

European Union (EU)* : Termination of the Expiry Review, the "New Exporter" Review, and the Anti-dumping Measures on Imports of Certain Magnesia Bricks Originating in the Mainland of China

Further to the Commercial Information Circulars No. 436/2010 of 28 September 2010 and No. 460/2010 of 8 October 2010, the Council of the EU has published a regulation ('the regulation') to terminate the expiry review and the "new exporter" review of the anti-dumping measures imposed on certain magnesia bricks originating in the Mainland of China; and to repeal those anti-dumping measures. The regulation can be accessed through the following link : http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:166:0001:0005:EN:PDF.

DETAILS

(i) Expiry Review

2. The European Commission (the Commission) initiated the expiry review on 8 October 2010 at the request of the Magnesia Bricks Production Defence Coalition ('the applicant'), on the grounds that the expiry of the anti-dumping measures would likely result in continuation of dumping and recurrence of injury. The applicant also claimed that an Austrian-based company, RHI AG ('RHI'), should be excluded from the definition of the Union industry as it had shifted its core business activities to the Mainland of China, where it has a related company producing the product concerned and increased its business activities relating to the product concerned in the Mainland of China.

3. Based on the data from on-spot verification, the Commission concluded that RHI still has its core business activities in the EU, in particular with regard to its production volume and production capacity in the Union, and its production capacity in the Mainland of China. The company's situation has not changed substantially since the original investigation. The Commission therefore rejected the applicant's argument that RHI should be excluded from the definition of the Union industry. In the light of the above, the Commission considered that the expiry review proceeding concerning imports into the Union of certain magnesia bricks originating in the Mainland of China should be terminated.

(ii) "New Exporter" Review

4. The Commission initiated the "new exporter" review on 28 September 2010 at the request of TRL China Ltd. ('TRL'), which alleged that it operated under market economy conditions, it did not export the product concerned to the Union during the period of investigation on which the anti-dumping measures were based (i.e. 1 April 2003 to 31 March 2004) and that it was not related to any of the exporting producers of the product which are subject to the anti-dumping measures.

5. In view of the termination of the expiry review and given the fact that TRL did not export the product concerned between the date of the entry into force and the date of expiry of the anti-dumping measures (13 October 2010), the Commission considered that the "new exporter" review concerning imports into the Union of certain magnesia bricks originating in the Mainland of China should therefore also be terminated. The registration of imports carried out pursuant to the review is also ceased with effect from 26 June 2011.

(iii) Anti-dumping Measures

6. The Commission has adopted the regulation to repeal the anti-dumping measures imposed on certain magnesia bricks originating in the Mainland of China. The definitive anti-dumping duties paid or entered in the accounts on imports of certain magnesia bricks originating in the Mainland of China released for free circulation as from 14 October 2010 shall be repaid or remitted. In the view of the circumstances arising from the investigation, the Commission will monitor the export and import flows of the product concerned as well as the relevant CN Codes. Should the flows appear to change, the Commission will give consideration to the action to be taken.

BACKGROUND

7. Definitive anti-dumping duty on imports of certain magnesia bricks originating in the Mainland of China was imposed with effect from 13 October 2005 for five years at a rate of 39.9% of the net, free-at-Union-frontier price before duty (except for seven companies with individual duty rates ranging from 0% to 18.6%).

ENQUIRIES

8. 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.