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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

16 May 2016

Dear Sirs,

Commercial Information Circular No. 434/2016

European Union (EU) * : Initiation of a countervailing proceeding concerning imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the Mainland of China

Further to Commercial Information Circular No. 181/2016 dated 15 February 2016, the European Commission (the Commission) has published a notice initiating a countervailing proceeding concerning imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the Mainland of China. The notice can be accessed through the following link:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016XC0513(05)&from=EN

DETAILS

2.Salient points of the notice are set out below-

(a) Product under investigation
 
: Certain flat rolled products of iron, non-alloy steel or other alloy steel (not including stainless steel), whether or not in coils (including products cut-to-length and 'narrow strip'), not further worked than hot-rolled (hot-rolled flat), not clad, plated or coated, excluding grain-oriented silicon electrical steel, currently falling within CN codes 7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 00, 7208 38 00, 7208 39 00, 7208 40 00, 7208 52 99, 7208 53 90, 7208 54 00, 7211 14 00, 7211 19 00, 7225 19 10, 7225 30 10, 7225 30 30, 7225 30 90, 7225 40 12, 7225 40 15, ex 7225 40 60, 7225 40 90, 7226 19 10, ex 7226 20 00, 7226 91 20, 7226 91 91 and 7226 91 99. These CN codes are given for information only.
(b) Procedures :
In view of the potentially large number of exporting producers in the Mainland of China involved in the proceeding and in order to complete the investigation within the statutory time limits, 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, are requested to make themselves known by providing the Commission with the information requested in Annex I to the notice, including identity and contact details, turnover, sales volume, activities of the company and related companies, and the company's investments relating to the product under investigation. By providing the information, the company agrees to its possible inclusion in the sample. If selected to be in the sample, the company will have to complete a questionnaire and accept a visit at its premises in order to verify its response. Such information should reach the Commission within 15 days from 13 May 2016, 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 13 May 2016, unless otherwise specified.

If a sample is necessary, the exporting producers may be selected based on the largest representative volume of exports to the EU 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 and the authorities of the Mainland of China will have to 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 to be in the sample will be considered to be cooperating.  Non-sampled cooperating exporting producers wishing to claim an individual subsidy margin must request a questionnaire and return it duly completed within the same deadline.  Exporting producers claiming an individual subsidy margin should be aware that the Commission may nonetheless decide not to determine their individual subsidy margin if, for instance, the number of exporting producers is so large that such determination would be unduly burdensome and would prevent the timely completion of the investigation.

Subject to the provisions of the notice, all interested parties are invited to make their views known, submit information and to provide supporting evidence within 37 days from 13 May 2016, unless otherwise specified.

All interested parties may request to be heard by the Commission investigation services.  Any 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 13 May 2016.  Thereafter, a request to be heard must be submitted within the specific deadlines set by the Commission in its communication with the parties.

Interested parties are invited to make all submissions and requests by, in general, email including scanned powers of attorney and certification sheets.  By using email, interested parties express their agreement with the rules applicable to electronic submissions contained in the document 'CORRESPONDENCE WITH THE EUROPEAN COMMISSION IN TRADE DEFENCE CASES' available at:
http://trade.ec.europa.eu/doclib/docs/2011/june/tradoc_148003.pdf.

Commission address for correspondence:
European Commission
Directorate-General for Trade
Directorate H
Office: CHAR 04/039
1049 Brussels
Belgium

Email SUBSIDY: TRADE-HRF-SUBSIDY@ec.europa.eu
Email INJURY: TRADE-HRF-INJURY@ec.europa.eu
 
Interested parties may request the intervention of the Hearing Officer in trade proceedings, 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 the investigation the request must be submitted within 15 days from 13 May 2016. For further information and contact details, interested parties may consult the Hearing Officer's web pages at:
http://ec.europa.eu/trade/trade-policy-and-you/contacts/hearing-officer/.
(c) Investigation
Schedule
: The investigation will be concluded within 13 months from 13 May 2016. Provisional measures may be imposed no later than nine months from the same date.

BACKGROUND

3.The Commission initiated this countervailing proceeding on the basis of a complaint lodged on 31 March 2016 by the European Steel Association (EUROFER) ('the complainant') on behalf of producers representing more than 25% of the total EU production of certain hot-rolled flat products of iron, non-alloy or other alloy steel. The prima facie evidence provided by the complainant is said to have showed that the producers of the product under investigation from the Mainland of China have benefited from a number of subsidies granted by the Government of the Mainland of China and that imports of the product under investigation from the Mainland of China have increased overall in absolute terms and in terms of market share at a significant rate indicating the likelihood of substantially increased imports. Moreover, it is alleged that imports are entering the EU at prices that have already had, among other consequences, negative impact on the level of the sales prices, quantities sold, market share and profits of the EU industry.

ENQUIRIES

4.For enquiries concerning the content of this circular, please contact the undersigned at telephone number 2398 5350.

Yours faithfully,

(Y K So)
for Director-General of Trade and Industry

* The EU member countries are Austria, Belgium, Bulgaria, Croatia, 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.
Note 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 can be accessed through
http://economists-pick-research.hktdc.com/business-news/subindex/en/Business-Alert-EU/1X2ZT68A/1/0.htm.