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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

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

22 February 2012

Dear Sirs,

Commercial Information Circular No. 143/2012

European Union (EU)* : Initiation of a Countervailing Proceeding Concerning Imports of Certain Organic Coated Steel Products Originating in the Mainland of China

The European Commission (the Commission) has announced the initiation of a countervailing proceeding on imports of certain organic coated steel products originating in the Mainland of China. The notice can be accessed through the following link : 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:052:0004:0012:EN:PDF.

DETAILS

2.Salient points are set out below-

a) Date of Publication of the Notice : 22 February 2012
b) Product Coverage :

Certain organic coated steel products, i.e. flat-rolled products of non-alloy and alloy steel (not including stainless steel) which are painted, varnished or coated with plastics on at least one side, excluding so-called 'sandwich panels' of a kind used for building applications and consisting of two outer metal sheets with a stabilising core of insulation material sandwiched between them, and excluding those with a final coating of zinc-dust (a zinc-rich paint containing by weight 70 % or more of zinc), currently falling within CN codes ex 7210 70 80, ex 7212 40 80, ex 7225 99 00, ex 7226 99 70. These CN codes are given for information only.

c) Procedures :

In view of the potentially large number of exporting producers involved in the proceeding, the Commission may apply sampling. To enable the Commission to decide whether sampling is necessary and, if so, to select a sample, all exporting producers, or representatives acting on their behalf should provide information requested in Annex A to the notice in question, including contact details, turnover, activities of their company/related companies, and indication of agreement for being included in the sample which implies replying to a questionnaire and accepting an on-the-spot investigation. Such information should reach the Commission within 15 days from 22 February 2012, unless otherwise specified.

All interested parties wishing to submit any relevant information regarding the selection of the sample must do so within 21 days from 22 February 2012, unless otherwise specified.

If a sample is necessary, the exporting producers may be selected based on the largest representative volume of exports to the Union which can reasonably be investigated within the time available. All known exporting producers, the authorities of the Mainland of China and associations of exporting producers will be notified of the companies selected to be in the sample. All exporting producers selected to be in the sample must submit a completed questionnaire within 37 days from the date of notification of the sample selection, unless otherwise specified.

Companies that had agreed to their possible inclusion in the sample but were not selected shall be considered to be cooperating ("non-sampled cooperating exporting producers"). Non-sampled cooperating exporting producers wishing to claim an individual subsidy margin must request a questionnaire and other claim form, and must submit the completed questionnaire reply within 37 days from the date of notification of the sample selection, unless otherwise specified.

Exporting producers claiming individual subsidy should however note that if sampling is applied, the Commission may decide not to calculate an individual margin for them if the number of exporting producers is so large that individual examination would be unduly burdensome and would prevent the timely completion of the investigation.

All interested parties may make their views known, submit information and provide supporting evidence within 37 days from 22 February 2012, unless otherwise specified.

All interested parties may request to be heard by the Commission. Request to be heard should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation, request must be submitted within 15 days from 22 February 2012. Thereafter, a request to be heard should be submitted within the specific deadlines set by the Commission in its communication with the parties.

In order to determine injury based on positive evidence and objective examination of the volume of the subsidised imports, and in view of the large number of Union producers involved in this proceeding, the Commission has decided to apply sampling, and provisionally selected a sample of Union producers. All interested parties are invited to submit any relevant information regarding the selection of the sample within 21 days from 22 February 2012, unless otherwise specified.

Interested parties should make all submissions and requests in electronic format (the non-confidential submissions via e-mail, the confidential ones on CD-R/DVD), and must indicate the name, address, e-mail address, telephone and fax numbers of the interested party. However, any Powers of Attorney, signed certifications, and any updates thereof, accompanying questionnaire replies shall be submitted on paper, i.e. by post or by hand, at the address below. If an interested party cannot provide its submissions and requests in electronic format, it must immediately contact the Commission. For further information concerning correspondence with the Commission, interested parties may consult the relevant web page on the website of Directorate-General for Trade: http://ec.europa.eu/trade/tackling-unfair-trade/trade-defence

Commission address for correspondence: 
European Commission 
Directorate-General for Trade 
Directorate H 
Office: N105 04/092 
1049 Brussels 
Belgium 
Fax +32 22981697 
E-mail: TRADE-OCS-SUBSIDY@ec.europa.eu

Interested parties may request the intervention of the Hearing Officer of DG Trade, who acts as an interface between the interested parties and the Commission investigation services through reviewing requests for access to the file, disputes on the confidentiality of documents, requests for extension of time limits and requests by third parties to be heard. A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of investigation, the request must be submitted within 15 days from 22 February 2012. For further information and contact details, interested parties may consult the Hearing Officer's web pages on the website of DG Trade (http://ec.europa.eu/trade/tackling-unfair-trade/
hearing-officer/index_en.htm
).

d) Investigation Schedule :

Provisional measures may be imposed no later than nine months from 22 February 2012. Investigation will be concluded within 13 months from 22 February 2012.

BACKGROUND

3.The Commission initiated the countervailing proceeding on the basis of a complaint lodged on 9 January 2012 by Eurofer on behalf of producers representing a major proportion, in this case more than 70%, of the total Union production of certain organic coated steel products. It was alleged that the producers of the product under investigation originating in the Mainland of China had benefited from a number of subsidies and the imports of the product concerned originating in the Mainland of China had increased overall in absolute terms and in terms of market share, resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation of the Union industry.

4.The Commission also initiated an anti-dumping proceeding concerning the product of certain organic coated steel products originating in the Mainland of China on 21 December 2011 (for details, please refer to the Commercial Information Circular No. 823/2011 of 21 December 2011).

ENQUIRIES

5.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.