Commercial Information Circulars

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

2 September 2011

Dear Sirs,

Commercial Information Circular No. 527/2011

European Union (EU)* : Termination of the Expiry Review, the Partial Interim Review, and the Anti-dumping Measures on Imports of Certain Castings Originating in the Mainland of China

Further to the Commercial Information Circulars No. 340/2010 of 27 July 2010 and No. 557/2010 of 1 December 2010, the Council of the EU has published a regulation ('the regulation') to terminate the expiry review and the partial interim review of the anti-dumping measures imposed on certain castings 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:2011:227:0001:0002:EN:PDF.

DETAILS

2. The European Commission (the Commission) initiated the expiry review on 27 July 2010 at the request of Eurofonte and Fundiciones de Odena (the applicants) on the grounds that the expiry of the measures would be likely to result in recurrence of dumping and recurrence of injury to the Union industry.

3. Separately, a partial interim review was initiated on 1 December 2010 at the request of Shandong Lulong Group Co. Ltd. ('Lulong'), which was limited in scope to the examination of dumping as far as Lulong was concerned, on the grounds that the circumstances on the basis of which the measures were imposed had changed and that these changes were of a lasting nature.

4. By a letter dated 9 June 2011 to the Commission, the applicants formally withdrew their request. The applicants argued that, in view of the volatility of the relevant economic parameters, future injurious dumping could not be excluded. The Commission acknowledges that the castings market has been subject to significant changes in the last year with a general decline in demand, including for imports of certain castings. It was considered that the present proceeding should be terminated since the investigation had not brought to light any consideration showing that its termination would not be in the Union interest. It was therefore concluded that the anti-dumping expiry review proceeding concerning imports of certain castings originating in the Mainland of China should be terminated.

5. As a consequence of the termination of the expiry review, the Commission further concluded that the partial interim review concerning Lulong should also be terminated.

6. Moreover, with the termination of the expiry review, the Council of the EU has decided to repeal the anti-dumping measures imposed on certain castings originating in the Mainland of China with effect from 3 September 2011. However, the applicants considered that a surge of Chinese imports could cast the viability of the Union industry into doubt and, on this basis, they considered that the Commission should actively monitor imports of the product concerned and be ready to open a new proceeding at short notice. Since it is not clear how the market will develop in the short-to-medium term, the Commission acknowledges that the reappearance of injurious dumping cannot be entirely excluded. It is therefore considered appropriate to monitor imports of the product concerned originating in the Mainland of China from 2 September 2011 for a period not exceeding 24 months. Furthermore, the Commission does not rule out the opening of a new investigation concerning the same product if and when evidence is provided that points to injurious dumping.

BACKGROUND

7. 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%).

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.