Commercial Information Circulars

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

27 April 2012

Dear Sirs,

Commercial Information Circular No. 308/2012

European Union (EU)* : Initiation of a Countervailing Proceeding Concerning Imports of Bicycles Originating in the Mainland of China

The European Commission ('the Commission') has announced the initiation of a countervailing proceeding on imports of bicycles 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:2012:122:0009:0018:EN:PDF.

DETAILS

2.Salient points are set out below-

(a) Date of Publication of the Notice	:	27 April 2012
(b) Product Coverage	:	Bicycles and other cycles (including delivery tricycles but excluding unicycles), not motorised, currently falling within the CN codes 8712 00 30 and ex 8712 00 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 and sales volume, activities of their company/related companies, and indication of agreement to their possible inclusion in the sample which implies replying to a questionnaire and accepting a visit at their premises to verify their responses. Such information should reach the Commission within 15 days from 27 April 2012, unless otherwise specified. All interested parties wishing to submit any other relevant information regarding the selection of the sample must do so within 21 days from 27 April 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 have agreed to their possible inclusion in the sample but are not selected will 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 applicable claim forms, and must submit the duly 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 determine an individual subsidy margin for them if, for instance, the number of exporting producers is so large that individual examination would be unduly burdensome and would prevent the timely completion of the investigation. 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 27 April 2012, unless otherwise specified. All interested parties may make their views known, submit information and provide supporting evidence within 37 days from 27 April 2012, unless otherwise specified. All interested parties may request to be heard by the Commission investigation services. 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, the request must be submitted within 15 days from 27 April 2012. Thereafter, a request to be heard should be submitted within the specific deadlines set by the Commission in its communication with the parties. Interested parties should make all submissions and requests in electronic format (non-confidential submissions via e-mail, 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 must 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 (DG 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 22985353 E-mail: TRADE-AS589-BICYCLES-A@ec.europa.eu (to be used by exporters, related importers, associations and representatives of the Mainland of China) 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 regarding 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 27 April 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 27 April 2012. Investigation will be concluded within 13 months from 27 April 2012.

BACKGROUND

3.The Commission initiated the countervailing proceeding on the basis of a complaint lodged on 15 March 2012 by European Bicycle Manufacturers Association (EBMA) on behalf of producers representing a major proportion, in this case more than 25% of the total Union production of bicycles. 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 imports of the product from 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 and the financial situation of the Union industry.

4.Definitive anti-dumping duty on imports of bicycles originating in the Mainland of China has been imposed since 10 September 1993. Based on the findings of a circumvention investigation, with effect from 19 January 1997, the definitive anti-dumping duty imposed on imports of bicycles originating in the Mainland of China was extended to imports of certain bicycle parts originating in the Mainland of China.

5.Consequent to an expiry review, the duty had been extended for another five years since 15 July 2000. On the basis of an interim review, the subject anti-dumping duty has been increased from 30.6% to 48.5%, and imposed for a new five-year period since 15 July 2005. Consequent to another expiry review initiated in July 2010, the duty has been extended for a further five years with effect from 7 October 2011. The Commission also initiated an interim review of the anti-dumping measures on imports of bicycles originating in the Mainland of China on 9 March 2012 (for details, please refer to the Commercial Information Circular No. 194/2012 of 9 March 2012).

ENQUIRIES

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

Yours faithfully,

(Ms Wendy LAU)

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.