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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. 435/2016

European Union (EU) * : Initiation of expiry reviews of the anti-dumping and countervailing measures on imports of certain coated fine paper originating in the Mainland of China

Further to Commercial Information Circulars Nos. 838/2015 and 841/2015 of 26 August 2015, the European Commission (the Commission) has published two notices initiating the expiry reviews of (i) the anti-dumping measures; and (ii) the countervailing measures applicable to imports of certain coated fine paper originating in the Mainland of China (the product). The notices can be accessed through the following links:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016XC0513(03)&from=EN
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016XC0513(04)&from=EN

DETAILS

2.The expiry reviews are initiated at the request of Arctic Paper Grycksbo AB, Burgo Group SpA, Fedrigoni SpA, Lecta Group and Sappi Europe SA, jointly referred to as the 'applicant', representing more than 25 % of the total EU production of certain coated fine paper, on the grounds that the expiry of the respective measures would likely result in (i) recurrence of dumping, (ii) continuation of subsidisation, and in both cases, recurrence of injury to the EU industry. The Commission considers that the applicant has provided prima facie evidence that should the anti-dumping measures be allowed to lapse, imports of the product to the EU is likely to increase due to the existence of unused capacity in the Mainland of China. The Commission also considers that the applicant has provided sufficient evidence that the producers of the product have benefited and are likely to continue to benefit from a number of subsidies granted by the Government of the Mainland of China and regional and local governments in the Mainland of China. In view of the sufficiency of evidence, the Commission considers the initiation of the expiry reviews justified.

3.Salient points of the notices are set out below-

(a) Product
 
: Coated fine paper which is paper or paperboard coated on one or both sides (excluding kraft paper or kraft paperboard), in either sheet or rolls, and with a weight of 70 g/m2 or more but not exceeding 400 g/m2 and brightness of more than 84 (measured according to ISO 2470-1), currently falling within CN codes ex 4810 13 00, ex 4810 14 00, ex 4810 19 00, ex 4810 22 00, ex 4810 29 30, ex 4810 29 80, ex 4810 99 10 and ex 4810 99 80 (TARIC codes 4810 13 00 20, 4810 14 00 20, 4810 19 00 20, 4810 22 00 20, 4810 29 30 20, 4810 29 80 20, 4810 99 10 20 and 4810 99 80 20)

Does not include:
 
  • Rolls suitable for use in web-fed presses, i.e. rolls which, if tested according to the ISO test standard ISO 3783:2006 concerning the determination of resistance to picking - accelerated speed method using the IGT tester (electric model), give a result of less than 30 N/m when measuring in the cross-direction of the paper and a result of less than 50 N/m when measuring in the machine direction
  • Multi-ply paper and multi-ply paperboard
(b) Procedures :
In view of the potentially large number of exporting producers in the Mainland of China involved in the present expiry reviews 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, including the ones who did not cooperate in the investigation leading to the measures subject to the present reviews, are requested to make themselves known by providing the Commission with the information requested in Annex I to the respective notices, including identity and contact details, turnover, sales volume, production and production capacity, activities of the company and related companies.  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 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.

In the previous anti-dumping investigation, the USA was used as a market economy third country for the purpose of establishing normal value in respect of the Mainland of China.  For the purpose of the current investigation, the Commission envisages using the USA again as an appropriate market economy third country.  Interested parties are invited to comment on the appropriateness of this choice within 10 days from 13 May 2016.  According to the information available to the Commission, other market economy producers may be located, inter alia, in India, Indonesia, Norway, South Korea and Switzerland.  The Commission will examine whether there is production and sales of the product in those market economy third countries for which there are indications that production of the product is taking place.

Subject to the provisions of the notices, 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' published 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:
For dumping aspects   : TRADE-CFP-DUMPING-CHINA@ec.europa.eu
For subsidy aspects     : TRADE-CFP-SUBSIDY-CHINA@ec.europa.eu
For injury aspects        : TRADE-CFP-INJURY-CHINA@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 investigations 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 investigations will be concluded within 15 months from 13 May 2016.

BACKGROUND

4.Definitive anti-dumping duty on imports of the product has been imposed since 15 May 2011 and the duty in force is 27.1% of the net, free-at-Union-frontier price, before duty (except for a number of companies whose individual duty rates range from 8.0% to 35.1%).

5.Definitive countervailing duty on imports the product has been imposed since 15 May 2011 and the duty in force is 12% of the net, free-at-Union-frontier price, before duty (except for a number of companies whose individual duty rates range from 4% to 12%).

ENQUIRIES

6.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.