Commission Implementing Regulation (EU) 2021/1930 of 8 November 2021 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of birch plywood originating in Russia

• (143) With regard to the exercise of grouping, the Commission recalled, as noted in recital (95) of the provisional Regulation, that birch plywood is sold in a large variety of dimensions, qualities and according to specific customer specifications. Therefore, as already explained in recital (95) of the provisional Regulation, with the aim to conduct a proper comparison of the products sold by the Union industry with the equivalent product types sold by the Russian exporting producers, the Commission carried out an approximation by grouping some closely resembling product types, though maintained the large majority of product types. Given the wide variety of PCNs that only varied slightly in terms of dimensions, thickness and/or coating, a grouping of closely similar PCNs was possible without unduly affecting the accurateness of the comparison. This methodology allowed the Commission to compare a critical mass of imports with sales by the Union industry. Specifically, the Commission took the following actions to allow a proper comparison of the products concerned: 1) three types of phenolic film coating were grouped (F-W-HT as described in the questionnaire); 2) two types of non-coated but similar surface qualities were grouped (CP and WG); and 3) the Commission calculated the surface for each plywood sheet, by multiplying width and length. This calculation was done in square millimetres to allow the comparison of similar dimensions positioned differently and/or reported differently. One interested party claimed that the price difference between the various product types grouped together was [4 % to 7 %]. Even if the alleged price difference would be accepted, the Commission did not consider this difference to be significant. Indeed, it showed that the grouping carried out by the Commission did not prevent an accurate price comparison. As a result, the Commission considered that the grouping performed at provisional stage allowed for a reasonable and reliable price comparison and product comparability of equivalent product types.

• (144) After provisional disclosure, some parties provided comments relating to the calculation of the undercutting margin as indicated in recital (100) of the provisional Regulation. Further to those comments and slight changes made to the weighted average undercutting margin, the margin for the cooperating sampled exporting producers was revised and now ranges from 9,6 % to 18,4 % for the imports from the country concerned on the Union market. The weighted average undercutting found on the basis of the data provided by the sampled exporting producers was 12,6 %.

• (145) Following final disclosure, Sveza Group claimed that the undercutting and underselling calculations were flawed for the following reasons: (i) given the significant lack of competitive overlap between product types originating in Russia and product types produced and sold by the Union industry, the calculations were not representative; (ii) the grouping of different product types was flawed as it failed to take into account variations in dimensions, which has an impact on prices due to, among other factors, different fiber directions; and (iii) the Commission failed to take into account SG&A and profits of related importers when carrying out its calculations.

• (146) With regard to the competitive overlap, the Commission, contrary to the claim, found a significant level of matching between Union and Russian sales. It was similarly established that birch plywood sold by the Union and Russian producers shared the same basic physical and technical characteristics, and that both the Union industry and the exporting producers compete in the same sectors and for the same final users. As to the second claim, the Commission maintained its position as explained in recital (143) that the grouping of some product types and the conversion into surface area were both appropriate and necessary to allow for a reasonable price comparison of equivalent product types given the numerous slight variations between different PCNs. The Commission also noted that Sveza Group did not put forward any other alternative method to allow for a proper price comparison. With regard to the third claim, the Commission maintained its position as set out in recital (141) and recalled the following.

• (147) As regards the calculation of undercutting, the Commission considered the point at which Russian imports entered into competition with the products of the Union producers in the Union market, and therefore looked at the purchasing price of the first unrelated party because that party had the choice to source either from the Union industry or from Russian suppliers. In case of export prices to related importers, the methodology as set in Article 2(9) of the basic Regulation was used. The application by analogy of Article 2(9) of the basic Regulation allows the establishment of a price that is fully comparable to the price that is used when examining sales made to unrelated customers and also comparable to the sales price of the Union industry and therefore a deduction of SG&A and profit from the resale price to unrelated customers made by the related importer was warranted.

• (148) Such a deduction was also needed to allow for an accurate calculation of underselling. The target price of the Union industry was based on its cost of production plus the target profit, without taking into consideration whether products were then sold in the Union to related or unrelated customers and, accordingly did not include any SG&A and profit of related selling entities in the Union either.

4.4.   Economic situation of the Union industry

4.4.1.   General remarks

• (149) In the absence of any comments with respect to this section, the Commission confirmed its conclusions set out in recitals (101) to (105) of the provisional Regulation.

4.4.2.   Macroeconomic indicators

4.4.2.1.   Production, production capacity and capacity utilisation

• (150) In the absence of any comments with respect to this section, the Commission confirmed its conclusions set out in recitals (106) to (109) of the provisional Regulation.

4.4.2.2.   Sales volume and market share

• (151) The Union industry’s sales volume and market share developed over the period considered as follows, having taken into account the methodology for the identification of imports as set out above in section 4.3.1:

Table 4

Sales volume and market share

	2017	2018	2019	IP
Total sales volume on the Union market (m3)	821 341	818 621	757 103	680 243
Index	100	100	92	83
Market share	47 %	44 %	41 %	39 %
Index	100	94	88	83
Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.

• (152) Throughout the period considered the total Union industry’s sales volume decreased significantly by 17 %. Union sales volume remained at the same level from 2017 to 2018, but showed in 2019 a decrease of 8 % and a further decrease of 10 % from 2019 to the IP.

• (153) The Union industry’s market share was similarly reduced by 17 %, showing an invariably declining trend that reduced the presence of Union industry in the market from 47 % of market share in 2017 to 39 % in the IP.

4.4.2.3.   Growth

• (154) In a context of a sound market with stable Union consumption, the above figures showed that the Union industry experienced substantial decreases in respect of production, sales volume and market share.

4.4.2.4.   Employment and productivity

• (155) In the absence of any comments with respect to this section, the Commission confirmed its conclusions set out in recitals (114) to (116) of the provisional Regulation.

4.4.2.5.   Magnitude of the dumping margin and recovery from past dumping

• (156) In the absence of any comments with respect to this section, the Commission confirmed its conclusions set out in recitals (117) to (118) of the provisional Regulation.

4.4.3.   Microeconomic indicators

• (157) In the absence of any comments with respect to this section, the Commission confirmed its conclusions set out in recitals (119) to (131) of the provisional Regulation.

4.5.   Conclusion on injury

• (158) In a context of a stable Union consumption, imports from Russia increased during the period considered (+ 14 %), at prices which significantly undercut those of the Union industry. This allowed Russian exporting producers to reach a market share of 46 % in the IP (up from 40 % in 2017).

• (159) In these circumstances, the economic situation of the Union industry worsened as shown by all major macro-indicators presenting a negative trend: production (- 14 %), EU sales (- 17 %) and a significant reduction of its market share (from 47 % to 39 %) in the period considered.

• (160) In reaction to the pressure of low Russian prices, the Union industry tried to reduce cost and adjustments in employment (- 12 %) were undertaken, as shown in table 6 of the provisional Regulation. However, as a result of the pressure exerted by dumped Russian imports in terms of increased volumes and low prices, EU sales dropped and stocks increased rapidly (+ 22 %) in the period considered, reaching their maximum level (+ 41 %) in 2018, as shown in table 9 of the provisional Regulation.

• (161) The cost of production of the Union industry went up significantly during the period considered (+ 10 %), as shown in table 7 of the provisional Regulation, mainly because of a strong increase in the raw material prices.

• (162) The Union industry’s cost increased more than sales prices in view of the pressure made by the dumped imports. Consequently, profitability collapsed in the period considered, from a healthy situation (+ 9,7 %) in 2017 to an unsustainable loss making scenario (- 2,8 %) in the IP, as shown in table 10 of the provisional Regulation.

• (163) On the basis of the above, the Commission concluded that the Union industry suffered material injury within the meaning of Article 3(5) of the basic Regulation.

5. CAUSATION

5.1.   Effects of the dumped imports

• (164) Following provisional disclosure, some parties claimed that Russian imports could not have been the cause of injury since they operate in different segment of the market.

• (165) As described in section 5.2.7 below, the investigation established that the Union industry and the exporting producers compete in the same sectors and supply the same final users.

• (166) In the absence of any other comments with respect to this section, the Commission confirmed its conclusions set out in recitals (138) to (141) of the provisional Regulation.

5.2.   Effects of other factors

5.2.1.   Imports from third countries

• (167) To determine the volume of imports from third countries, the Commission, as explained in section 4.3.1 above, applied the same ratio (TARIC/CN) observed after initiation between the import volumes in tonnes of the full CN code and the imports for the product concerned based on TARIC data. To convert tonnes into cubic meters, the Commission used a conversion key of 0,69.

• (168) The only third countries which imported significant volumes to the Union were Belarus and Ukraine. For Belarus, the ratio (TARIC/CN) observed after initiation has been established at 39 % and for Ukraine at 61 %.

• (169) The Commission established the prices of imports based on EUR / tonne at CN level, as explained in section 4.3.2 above.

• (170) The volume of imports from other third countries developed over the period considered as follows:

Table 5

Imports from third countries

Country		2017	2018	2019	Investigation period
Ukraine	Volume (m3)	67 831	83 465	86 795	88 303
	Index	100	123	128	130
	Market share	4 %	4 %	5 %	5 %
	Average price (EUR / tonne)	651	725	641	616
	Index	100	111	98	95
Belarus	Volume (m3)	124 561	141 310	138 307	145 731
	Index	100	113	111	117
	Market share	7 %	8 %	8 %	8 %
	Average price (EUR / tonne)	403	481	387	363
	Index	100	119	96	90
Other third countries22	Volume (m3)	31 760	38 267	38 097	35 520
	Index	100	120	120	112
	Market share	2 %	2 %	2 %	2 %
	Average price (EUR / tonne)	566	576	565	561
	Index	100	102	100	99
Total of all third countries except Russia	Volume (m3)	224 153	263 043	263 199	269 555
	Index	100	117	117	120
	Market share	13 %	14 %	14 %	15 %
	Average price (EUR / tonne)	537	574	535	520
	Index	100	107	100	97
Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.

• (171) Compared to Russia, Belarus and the Ukraine had a limited presence on the Union market. In the period considered their market shares remained relatively stable, with minimal increase of 1 percentage point over the period considered, at a level of 8 % and 5 % respectively during the IP. All the other third countries slightly increased their presence, but their market share remained low at 2 %. The combined market share of imports from all third countries except Russia increased by 1 % from 2017 to 2018, and 1 % from 2019 to the IP, reaching a level of 15 %.

• (172) In terms of prices during the period considered, Ukraine sold at prices slightly higher than Russia, and Belarus at lower prices. The lower prices from Belarus were explained, both by importers and complainants, by its limited technology that only allows producing a very specific and cheaper quality product type. In contrast to Belarus, imports from Russia concerned a wider variety of products and also concerned higher quality birch plywood, thus showing higher average prices.

• (173) On that basis, the Commission concluded that the impact of imports from other countries did not attenuate the causal link between dumped Russian imports and the material injury suffered by Union producers.

• (174) After final disclosure, Sveza Group argued that the Commission ignored the fact that imports from Belarus and Ukraine both increased in volume and at lower prices (after adjustment for customs duty) than Russian exports to the Union, thus contributing to the injury. By failing to consider those elements the Commission committed a manifest error in it analysis of imports from third countries. Also, the Government of the Russian Federation (‘GOR’) claimed that the Commission had not properly assessed the impact of imports from third countries on the Union industry

• (175) The Commission rejected this claim. First, concerning Ukrainian imports, it recalled that the import prices were based on Eurostat data at CIF level and thus before any application of customs duty. Thus, the Commission confirmed that prices from Ukraine were higher than Russian import prices. In any case, should the Commission compare Russian and Ukrainian imports after the custom duty (only applying to Russian imports), prices from both countries would be in the same range. Given their limited volume and market share, imports from Ukraine did not attenuate the causal link between dumped Russian imports and the material injury suffered by Union producers.

• (176) Second, whilst the volumes from both Ukraine and Belarus increased, they increased from a relatively small starting point and their impact on the Union market was marginal as their respective market shares only increased by 1 percentage point, whereas Russian imports increased its market share with 6 percentage points. The Commission therefore confirmed its provisional finding that imports from other countries did not attenuate the causal link.

• (177) Finally, the Commission recalled that imports from third countries other than Ukraine and Belarus only accounted for around 2 % of the Union market and remained at that level during the period considered. Similarly, the price level also remained stable during the period considered. Those imports were thus not considered susceptible to cause injury to the Union industry. This claim was therefore rejected.

5.2.2.   Export performance of the Union industry

• (178) Following provisional disclosure, one exporting producer, the Sveza Group, claimed that the positive export performance of the Union industry contributed to the injury, since allegedly, the increase in export sales would have been to the detriment of the domestic sales. After final disclosure also the GOR claimed that the export performance of the Union industry (increased exports at low prices) had been a cause of injury.

• (179) During the IP the Union industry had sufficient production capacity to cover the increase in export sales. The same applied to the sampled Union producers. Furthermore the increase in the volume of exports represented only a small part of the decrease of 17 %, as shown in table 4 above, suffered in the volume of domestic sales. As a result, the increase of exports of the Union industry does not contribute to the injury suffered by Union industry.

• (180) Following provisional disclosure, the exporter producer UPM noted that the analysis of the export performance in the provisional Regulation relied on the data for the sampled Union producers, which showed an increase, contrary to the export performance for the Union industry as a whole as estimated by the complainants, which showed a decrease.

• (181) The exports for the entire Union industry provided by the complainant showed a decrease of 4 % during the period considered. While export volumes decreased by 12 % from 2017 to 2019, export volumes increased by 8 % from 2019 to the IP, which resulted in an increase of exports as a percentage of its total sales. Accordingly, the export performance of the entire Union industry could not have contributed to the injury suffered by the Union industry.

• (182) In the absence of any other comments with respect to this section, the Commission confirmed its conclusions set out in recitals (150) to (152) of the provisional Regulation.

5.2.3.   Competitive disadvantage in access to the main raw material

• (183) Following provisional disclosure, some parties claimed that the Union industry suffers from a limited availability of the main raw material, i.e. birch wood logs, which would be the origin of lower production volumes, costs increases and therefore be the cause of injury.

• (184) As explained in recital (154) of the provisional Regulation, access to the main raw material, birch wood logs, did not explain the injury, since Union producers had sufficient access to supplies of birch logs. Table 9 of the provisional Regulation showed that stocks of sampled union producers increased by 22 % over the period considered, and specifically by 6 % from 2019 to the IP. The evolution of stocks indicated that the problem did not reside in the production, but rather in its commercialization. As a result, the decrease in production during the period considered was not explained by the availability of wood.

• (185) The investigation also established that the cost of raw material did not attenuate the causal link. The problem resided rather in the limited ability of the Union industry to raise prices to the same extent as costs increases due to the pressure exerted by dumped imports from Russia, both in terms of volumes and prices. Specifically this could be observed, as explained in recital (155) of the provisional Regulation, by the fact that between 2019 and the IP the cost of production of the Union industry decreased, whereas this did not result in an improvement of its profitability. Therefore, the Commission dismissed these claims.

5.2.4.   Self-inflected injury

• (186) After final disclosure the GOR claimed that capacity expansions to accommodate increased production, which were not materialized, was a cause of Injury.

• (187) The Commission, contrary to the claim, found, that annual investments, as shown in table 10 and explained in recital (130) of the provisional Regulation, decreased over the period considered by 1 %. Similarly, as explained in recital (108) of the provisional Regulation, Union production capacity was reduced by overall 3 % in the period considered.

• (188) The Commission therefore concluded that the claim that expansion capacity investments were a source of injury was thus unfounded, as was also set out in recitals (156) to (157) of the provisional Regulation.

5.2.5.   Strikes in Finland

• (189) Following provisional disclosure, several interested parties claimed that the strikes in Finland affected negatively to the Union industry resulting in lower production volumes and consequently in lower sales volumes. The strikes allegedly would have also result in an increase of cost resulting in lower profitability.

• (190) The increase in stocks, as shown in table 9 of the provisional Regulation, evidenced that the problems did not reside in the production. Concerning the increase in cost, contrary to the allegations, table 7 of the provisional Regulation showed a decrease of costs during the period when the strikes took place. Therefore the Commission concluded that the strikes of the mills in Finland did not contribute to the injury suffered by the Union industry.

5.2.6.   COVID-19 effects

• (191) Following provisional disclosure, some parties claimed that the lockdowns imposed as a result of the COVID-19 might have resulted in production stoppages which might have affected production volumes, employment and costs. After final disclosure also the GOR claimed that the COVID-19 pandemic was the main reason for the injurious situation of the Union industry.

• (192) As explained in recital (128) the evolution of the stocks and the cost contradicted the allegations. The COVID-19 crisis did not negatively affect production volumes and employment in the IP. The Commission, thus, dismissed these claims and concluded that effects of the COVID-19 did not attenuate the causal link.

5.2.7.   Product comparability

• (193) Following provisional disclosure, some parties claimed a lack of competitive overlap between the birch plywood produced by the Russian industry and the plywood produced by the Union industry, since they allegedly produce different qualities destined to different segments, and that therefore, Russian imports were not the cause of injury.

• (194) The Commission, nonetheless, compared thousands of different types of plywood products and established a significant level of matching (over 68 %) between Union sales and Russian imported products. Furthermore, the investigation established that not only the imported and like Union products shared the same basic physical and technical characteristics, but also, that both the Union industry and the exporting producers compete in the same sectors and for the same final users. The Commission, thus, concluded that the alleged lack of product comparability and competition did not attenuate the causal link.

• (195) Following final disclosure, Sveza Group insisted that there was a significant lack of product comparability and hence competitive overlap that must be considered for the causation analysis. It further claimed that the Commission argument that product comparability was not an issue for causation purposes was flawed and inconsistent with WTO rules. Also the GOR claimed that the Commission had not sufficiently analysed product comparability and the competitive overlap between product types with different characteristics.

• (196) The Commission disagreed with the claim that it had not considered product comparability for causation purposes, and considered it to be a misinterpretation of its findings. As described in recital (194) the Commission found, contrary to the claim by the exporting producer, that, given the significant level of product matching and competition in the same sectors and for the same users, there was both product comparability and competition. Accordingly, the allegation concerning a lack of product comparability and competition was unfounded and could not attenuate the causal link.

• (197) Another exporting producer (SPM) also referred to the alleged lack of product comparability and competition and requested that product types that were not produced by the Union industry should be excluded from the product scope.

• (198) The Commission rejected this claim for the reasons set out in recital (196) above. Furthermore, the Commission recalled that it, as described in recital (143), the Commission had grouped closely resembling product types to ensure that a fair price comparison, based on representative volumes, could be made between Russian imports and the product sold by the Union industry.

• (199) In the absence of any other comments with respect to this section, the Commission confirmed its conclusions set out in recitals (162) to (163) of the provisional Regulation.

• (200) Following final disclosure, Sveza Group claimed that the Commission failed to take due account of information concerning the post-IP data, which in its view demonstrated that Russian imports could not cause injury to the Union industry. In particular, it referred to certain statements by the complainant that they had not been able to pass on global price increases due to agreed contracts and that in the post-IP period there was neither any undercutting or underselling. Instead, long-term contracts and variations in raw material prices were the source of any alleged injury.

• (201) Also, SPM claimed that the Commission has failed to properly take into account post-IP developments in the assessment of injury and causation, which according to SPM is a requirement when post-IP developments are manifest, undisputed and lasting.

• (202) The Commission considered for its injury and causation analysis the situation as established during the IP. The Commission recalled that, as provided in Article 6(1) of the basic Regulation, information relating to a period subsequent to the investigation period shall, normally, not be taken into account. It further considered that the situation post-IP is of a temporary character and the result of an unexpected and rapid post-COVID recovery. Therefore, it was not considered that those temporary circumstances were of such a character that they would made the proposed imposition of definitive anti-dumping duties inappropriate, even in light of post-IP developments. Nevertheless, as explained in recital (16), the Commission will analyse the post-IP situation in the context of a possible suspension of the duties due to a temporary change of market conditions. That analysis will however be carried out in due course and concluded in a separate decision.

5.3.   Conclusion on causation

• (203) On the basis of the above and in the absence of any other comments, the Commission concluded that none of the factors, analysed either individually or collectively, attenuated the causal link between the dumped imports and the injury suffered by the Union industry to the effect that such link would no longer be genuine and substantial, confirming the conclusion in recitals (164) to (166) of the provisional Regulation.

6. LEVEL OF MEASURES

6.1.   Injury margin

• (204) The claims made by UPM and Sveza Group concerning adjustments under Article 2(9) of the basis Regulation in the undercutting calculations also apply to the calculation of the injury elimination level. Those claims were rejected by the Commission as set out in section 4.3.3 above.

• (205) Following final disclosure Sveza Group also claimed that the Commission had wrongly computed the injury margin as it had not deducted the injurious effects of other factors. According to Sveza Group, the Commission must ensure that the amount of the anti-dumping duty imposed (if any) does not exceed that which is necessary to counter the injurious effects of the dumped imports, including by ensuring that the amount of the anti-dumping duty does not take into account injurious effects caused by factors other than those imports. Therefore, Commission must adjust the injury margin to exclude the injury caused by factors other than Russian imports.

• (206) First, the Commission recalled that the anti-dumping duty was based on the established dumping margin. Therefore, the imposed duty does not exceed what is necessary to counteract the injurious effects of the dumped imports, notwithstanding the fact that the established injury margin is significantly higher than the dumping margin. In this respect the Commission also recalled that, as described in Section 5.2 above, the Commission examined several other factors possibly contributing to the injury and found that none of those factors, either individually or taking together were able to attenuate the causal link between the dumped imports and the injury suffered. Finally, the injury margin determination must be done according to the provisions of Article 7(2c) and (2d) of the basic Regulation. Therefore, the Commission established the target price and level of profitability by taking into account the factors listed.

• (207) As provided by Article 9(4), third subparagraph, of the basic Regulation, and given that the Commission did not register imports during the period of pre-disclosure, it analysed the development of import volumes to establish if there had been a further substantial rise in imports subject to the investigation during the period of pre-disclosure and therefore reflect the additional injury resulting from such increase in the determination of the injury margin.

• (208) Based on data from the Surveillance 2 database, import volumes from Russia during the four weeks period of pre-disclosure were 98,6 % higher than the average import volumes in the investigation period on a four-week basis. On that basis, the Commission concluded that there had been a substantial rise in imports subject to the investigation during the period of pre-disclosure.

• (209) To reflect the additional injury caused by the increase of imports, the Commission decided to adjust the injury elimination level based on the rise in import volume, which is considered the relevant weighting factor based on the wording of Article 9(4) of the basic Regulation. It therefore calculated a multiplying factor established by dividing the sum of the volume of imports during the four weeks of the pre-disclosure period of 85 449 tonnes and the 52 weeks of the IP, by the import volume in the IP extrapolated to 56 weeks. The resulting figure, 1,02, reflects the additional injury caused by the further increase of imports. The injury margin was thus multiplied by this factor. Therefore, the final injury elimination level is as follows:

Country	Company	Injury margin
Russia	Zheshartsky LРK LLC	58,3  %
Russia	Sveza Group	32,2  %
Russia	Syktyvkar Plywood Mill	43,8  %
Russia	Other cooperating companies	39,9  %
Russia	All other companies	58,3  %

• (210) Following final disclosure, Sveza Group claimed that the Commission was not entitled to make an adjustment to the injury margin under Article 9(4). First, it claimed that the Commission used two different sources of data, namely the Surveillance 2 database and Eurostat, to establish the existence of a substantial rise of imports. This was based on the use of one source to establish imports during the pre-disclosure period and another source coupled with an allegedly unreliable method to establish the import volume during the IP. Therefore, the finding of a substantial rise of imports was not based on an objective examination of positive evidence. In addition, Sveza Group argued that the imports during the pre-disclosure period were neither undercutting, nor underselling, the Union prices and no additional injury could therefore have been caused by those imports.

• (211) As explained in recital (207) it is the import volumes, not the prices, which were decisive for considering whether any additional injury was caused by the rise of imports. Indeed, article 9(4), third subparagraph of the basic Regulation requires the Commission to reflect the additional injury resulting from a further substantial rise in imports subject to the investigation, when no registration has taken place during the period of pre-disclosure. As the increase in imports from Russia during the period was objectively very significant, according to this provision the Commission adjusted the injury margins accordingly as the text of the Article reads ‘shall reflect’. As regards the use of different sources of data, the Commission recalled that the analysis was based on a common source, which is the information collected by custom administrations, regardless on which database this information is contained. The Commission also recalled that while both databases, Eurostat and Surveillance 2, are fed with the same information, only Surveillance 2 provides information at the level of daily data necessary for this analysis. As regards the reliability of Eurostat data and the methodology to establish the volume of imports during the IP, the Commission confirmed its position as set out in section 4.3. Therefore, the Commission dismissed the claim.

• (212) In the absence of any other comments with respect to this section, the Commission confirmed its conclusions set out in recitals (168) to (177) of the provisional Regulation as modified by the table above.

7. UNION INTEREST

7.1.   Interest of the Union industry

• (213) Following provisional disclosure, the non-sampled exporting producer Segezha claimed that the imposition of the measures would be to the detriment of Union producers due to the risk of retaliation from the Government of Russia coupled with likely export restrictions of raw materials. The Commission did not have any evidence at its disposal that pointed to any intention of retaliation from the Government of Russia triggered by this proceeding, thus considered the claim unfounded.

• (214) Following final disclosure, Sveza Group claimed that antidumping measures were unlikely to bring any concrete benefit to the Union industry, since, due to the lack of Union production capacity to supply Union demand, there would be continuation of imports from Russia as observed after the imposition of the measures. The Commission recalled that the objective of the measures is not to block the imports from Russia but to establish a level playing field that allows the continuation of the sourcing of birch plywood from Russia but at fair prices.

• (215) In the absence of any other comments with respect to this section, the Commission confirmed its conclusions set out in recitals (179) to (182) of the provisional Regulation.

7.2.   Interest of unrelated importers

• (216) Following provisional disclosure, several importers claimed that the imposition of anti-dumping duties would increase material costs for them and for their customers. These additional costs would be difficult to cover and therefore threaten their profitability and competitiveness. After final disclosure, the Birch Plywood Alliance also claimed that measures would have a negative impact on importers and users.

• (217) Concerning the economic consequences on importers, as described in recital (185) of the provisional Regulation, the investigation established that the sampled importers had a profitable business, with a weighted average profit of 4,7 %, with different shares of birch plywood in their portfolio of products.

• (218) Comments on importers’ interest following provisional disclosure relating to the lack of capacity of the Union industry were the same as comments from users and are addressed in section 7.3 below.

• (219) In the absence of any other comments regarding the interest of unrelated importers, the conclusions set out in recitals (189) to (190) of the provisional Regulation were confirmed.

7.3.   Interest of users

• (220) Following provisional disclosure, some parties claimed that anti-dumping duties would threaten users’ profitability and competitiveness. It was also claimed that the assessment of the interest of users in the provisional Regulation was based on a study commissioned by the complainant and that the Commission disregarded data submitted by importers and users in their questionnaires.

• (221) Concerning the use of data submitted for interested parties, the Commission recalled that the assessment of the Union interest, including the interest of users, was made based on available information, including importers and users questionnaires as well as information provided by interested parties. Concerning the impact on users, as stated in recital (194) of the provisional Regulation, the imposition of measures is likely to have a different impact across users, depending on the share of birch plywood costs in the total costs for that sector and the ability to pass on costs to downstream consumers. On the basis of the explanations detailed in recitals (194) and (195) of the provisional Regulation the Commission established that any negative impact of measures on users does not to outweigh the positive effect of measures on Union producers.

• (222) Following provisional disclosure, some parties claimed that Union producers refused to supply certain customers or certain products.

• (223) Following final disclosure the Birch Plywood Alliance and Sveza Group claimed that the lack of sufficient supply from Union producers is not circumstantial or temporary but structural, and that Union producers refuse to supply certain customers or products.

• (224) The Commission recalled that there is no obligation on the Union industry to fully meet Union demand. In fact, as shown in table 1 and table 4 of the provisional Regulation, the Union industry does not have the capacity to supply the entire Union consumption. Consequently, inevitably there are some customers, which would not be directly supplied by the Union industry. However, as set out in recital (186) of the provisional Regulation, the measures are not meant to bring Russian imports to a halt, but rather to allow the continued sourcing of birch plywood from Russia at fair prices, as has also been after the case following the imposition of provisional duties.

• (225) In addition, as stated in recital (187) of the provisional Regulation, the Union industry has developed an extensive network of retailers, allowing the Union industry to reach small customers which do not have the capacity to buy entire containers. Furthermore, as mentioned above, any consumer can continue sourcing from Russian producers as well as from other third countries, like Ukraine and Belarus.

• (226) Following provisional disclosure, Blomberger Holzindustrie GmbH, a user of birch plywood, claimed that its business would be negatively affected since they operate with long term contracts which cannot be modified on a short notice. However, at the date of the initiation all known interested parties were notified of the start of the proceeding. The Notice of initiation, published in the official journal, provided a detailed schedule of the investigation. An open version of the complaint, containing information on the alleged levels of dumping, was also available from the start of the proceeding. Similarly, all interested parties received a pre-disclosure documents with the expected level of duties, four weeks before its application. As a consequence, the Commission concluded that sufficient information was made available in due time to interested parties on the impact that could arise from the investigation.

• (227) Following provisional disclosure, numerous users and other interested parties claimed that the measures would have a material impact on the users’ financial situation. It was claimed that the situation was particularly aggravated by the post-IP evolution of the market, namely a significant increase in prices, as well as transport prices, forcing users to pay a much higher price for the product concerned compared to the IP. The interested parties argued that users are not able to continue passing on the price increase deriving from the duties in the post-IP market situation to the final customers, and that therefore the analysis on the impact on users and importers at provisional stage was invalidated by the post-IP developments. In this context some parties requested the Commission to assess available post-IP data in order to better asses the Union interest.

• (228) The Commission recalled that the investigation of dumping and injury covered the period from 1 July 2019 to 30 June 2020. The examination of trends relevant for the assessment of injury covered the period from 1 January 2017 to the end of the investigation period. Therefore, the findings of this investigation are based on the information concerning the period mentioned before. In this respect, the Commission considered that the allegedly abnormally high post-IP prices of the product concerned and increase of transport were expected to be of a temporary nature responding to a post-COVID global economic recovery and rise in demand. This was confirmed by an outlook of the World Bank ²³. Accordingly, the information available to the Commission on post-IP developments did not change the conclusions as set out above and in the provisional Regulation.

• (229) Whereas it appeared to be generally accepted that prices will stabilise at a certain point in time, it was difficult for the Commission to determine at which levels and how long the situation of high demand and high prices would last. In any event, the Commission, exceptionally, requested post-IP data about in particular production volume, sales volume, sales prices and profitability of the Union producers, and collected the views of interested parties, in order to further assess the impact of recent market development on the Union interest in due course.

7.4.   Interest of suppliers

• (230) In the absence of comments with respect to this section, the Commission confirmed its conclusions set out in recitals (197) to (200) of the provisional Regulation.

7.5.   Other interested parties: other plywood producers, environmental interest

• (231) Following provisional disclosure, the claim was made that the Commission attributed importance to unsubstantiated arguments by plywood associations of other types of wood. It similarly argued that the argument according to which “higher prices” of birch would have “attracted demand that traditionally was for other type of woods” is illogic. The Commission noted that the argument in recital (201) of the provisional Regulation indicated that certain changes in the demand of other types of plywood were triggered by the decrease of prices of birch plywood relative to the prices of plywood from of other types of wood. Moreover, in the provisional Regulation the Commission considered the arguments submitted by the plywood associations of other types of wood, but did not attribute special importance to these, since, in any event, those arguments would not have changed the conclusion that measures would have a positive effect on Union producers.

• (232) Following provisional disclosure, the exporting producer Segezha claimed that the imposition of measures would be contrary to the European Green Deal since measures would result in an increase of carbon leakage. This claim was, however, already covered by recital (202) of the provisional Regulation. In the absence of any further additional information that substantiated this argument, the Commission confirmed its conclusion of the provisional Regulation.

• (233) Following the final disclosure, Sveza Group claimed that the balance of interests required under the Union interest assessment did not tip in favour of Union producers. According to Sveza, Union producers are not expected to significantly benefit from the imposition of measures, either volume-wise or price-wise. They also remain unable to supply most users, in a context exacerbated by shortages and rising prices. By contrast, users would be required to bear an extra cost burden in the same context, as they have no choice but to continue sourcing from Russia, at prices, which were allegedly not undercutting or underselling the Union producers.

• (234) The Commission recalled that for the Union interest test under Article 21 of the basic Regulation the need to eliminate the trade distorting effects of injurious dumping and to restore effective competition shall be given special consideration, whilst measures, as determined on the basis of the dumping and injury found, may not be applied where the Commission, on the basis of all the information submitted, can clearly conclude that it is not in the Union's interest to apply such measures.

• (235) It follows that to not apply measures, the balancing of various interest must clearly speak against the imposition of measures. It is, contrary to what Sveza Group suggested, not sufficient that the balancing test does not “tip in favour” of the imposition of measures. In any event, as explained in the preceding recitals, the Commission analysed in detail the various interests and the impact the imposition of measures would have and found that, on balance, the imposition of measures would clearly not be against the Union interest. The claim was therefore rejected.

7.6.   Conclusion on Union interest

• (236) In view of the above and as described in recital (202), the post IP situation is considered to be of a temporary nature. In any event the analysis of the post-IP data showed that the situation of the Union industry, as concluded in section 4.5, has not been significantly reversed. It also showed that imports from Russia to the Union market continued after the imposition of provisional measures, in response to Union demand. Therefore, the Commission considered that the imposition of definitive measures would clearly not be against the Union interest under Article 21. Therefore, the Commission confirmed the conclusions set out in recital (204) of the provisional Regulation.

8. DEFINITIVE ANTI-DUMPING MEASURES

• (237) Following provisional disclosure, some parties claimed that, should measures be imposed, they should be set in the form of a minimum import price since it would balance interest of different parties, would prevent a shortage of the product concerned, and would safeguard the competition in the market. Similarly it was claimed that the minimum import price should take into account the price difference between square and rectangular-shaped plywood.

• (238) The Commission considered that as the product concerned was produced and sold in a wide variety of product types, the imposition of measures in the form of a minimum import price was neither practicable nor would it accurately reflect the level of dumping.

8.1.   Definitive measures

• (239) In view of the conclusions reached with regard to dumping, injury, causation and Union interest, and in accordance with Article 9(4) of the basic Regulation, definitive anti-dumping measures should be imposed in order to prevent further injury being caused to the Union industry by the dumped imports of the product concerned.

• (240) On the basis of the above, the rates at which such duties will be imposed are set as follows:

Company	Definitive anti-dumping duty
Zheshartsky LРK LLC	15,80  %
Sveza Group	14,40  %
Syktyvkar Plywood Mill	15,72  %
Other cooperating companies	14,85  %
All other companies	15,80  %

• (241) The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of this investigation. Therefore, they reflect the situation found during this investigation with respect to these companies. These duty rates are exclusively applicable to imports of the product concerned originating in the country concerned and produced by the named legal entities. Imports of the product concerned produced by any other company not specifically mentioned in the operative part of this Regulation, including entities related to those specifically mentioned, should be subject to the duty rate applicable to ‘all other companies’. They should not be subject to any of the individual anti-dumping duty rates.

• (242) A company may request the application of these individual anti-dumping duty rates if it changes subsequently the name of its entity. The request must be addressed to the Commission ²⁴. The request must contain all the relevant information enabling to demonstrate that the change does not affect the right of the company to benefit from the duty rate which applies to it. If the change of name of the company does not affect its right to benefit from the duty rate which applies to it, a regulation about the change of name will be published in the Official Journal of the European Union.

• (243) To minimize the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual anti-dumping duties. The companies with individual anti-dumping duties must present a valid commercial invoice to the customs authorities of the Member States. The invoice must conform to the requirements set out in Article 1(3) of this Regulation. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to ‘all other companies’.

• (244) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of anti-dumping duty to imports, it is not the only element to be taken into account by the customs authorities. Indeed, even if presented with an invoice meeting all the requirements set out in Article 1(3) of this Regulation, the customs authorities of Member States must carry out their usual checks and may, like in all other cases, require additional documents (shipping documents, etc.) for the purpose of verifying the accuracy of the particulars contained in the declaration and ensure that the subsequent application of the lower rate of duty is justified, in compliance with customs law. To ensure a proper enforcement of the anti-dumping duties, the anti-dumping duty for “all other companies” should apply not only to the non-cooperating exporting producers in this investigation, but to the producers which did not have exports to the Union during the investigation period.

8.2.   Definitive collection of the provisional duties

• (245) In view of the dumping margins found and given the level of the injury caused to the Union industry, the amounts secured by way of the provisional anti-dumping duty imposed by the provisional Regulation should be definitively collected up to the level established by the present Regulation.

• (246) The definitive duty rates being lower than the provisional duty rates, the amounts secured in excess of the definitive anti-dumping duty rates should be released.

9. UNDERTAKING OFFERS

• (247) Following final disclosure, within the deadline specified in Article 8(2) of the basic Regulation, two Russian exporting producers submitted offers for a price undertaking: SPM and UPG.

• (248) According to Article 8 of the basic Regulation, the price undertaking offers must be adequate to eliminate the injurious effect of dumping and their acceptance must not be considered impractical. The Commission assessed the offers in view of these criteria and considered that its acceptance would be impractical for the following reasons.

• (249) Both companies produce and sell hundreds product types with significant differences in prices. One of the companies proposed only one minimum import price (‘MIP’), which raise serious cross compensation risks within different types of products. The other exporting producer offered a MIP which for the majority of product types would be below the non-injurious price and below the levels which would properly reflect the dumping margin. Therefore, the level of minimum import price proposed was not sufficient to remove the injurious effect of dumping.

• (250) One producer proposed to index the minimum import price based on the evolution of birch log prices while the second one did not propose any indexation. However, while indexation would be necessary given the price volatility established on the market, the Commission found that the index proposed did not reflect the evolution of the selling prices. Therefore, the proposed index was considered inaccurate.

• (251) Birch plywood types and models cannot be easily distinguished from one another by a physical inspection. In particular, it would be very difficult to assess the coating type only by physical inspection. Without a detailed lab analysis the customs authorities would not be able to determine whether the imported product corresponds to what is being declared.

• (252) The Commission sent letters to the applicants, setting out the reasons to reject the undertaking offers.

• (253) UPG submitted comments thereto, but did not provide any arguments which affected the reasons to reject the offers. These comments were made available to interested parties on the case file.

• (254) The Commission considered the undertaking offers unenforceable and thus impractical within the meaning of Article 8 of the basic Regulation, for the reasons set out in recitals (247) to (251), and therefore rejected the offers.

10. FINAL PROVISIONS

• (255) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council ²⁵, when an amount is to be reimbursed following a judgment of the Court of Justice of the European Union, the interest to be paid should be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union on the first calendar day of each month.

• (256) Article 3 of this Regulation contains an amendment with regard to the names of the seven exporting producers of the Sveza Group, and of the name of a cooperating non-sampled exporting producer, following a name change that was communicated to the Commission on 28 July 2021 and which did not affect in any manner the findings made in this investigation. The collection of provisional duties will apply to the company names as amended by Article 3 of this Regulation.

• (257) The Committee established by Article 15(1) of the basic Regulation did not deliver an opinion,

HAS ADOPTED THIS REGULATION:

Article 1

Company	Definitive anti-dumping duty	TARIC additional code
Zheshartsky LРK LLC	15,80  %	C661
Sveza Group composed of seven exporting producers: “SVEZA Tyumen” Limited Liability Company; Joint Stock Company “SVEZA Ust-Izhora”; Joint Stock Company “SVEZA Verhnaya Sinyachiha”; Joint Stock Company “SVEZA Kostroma”; Joint Stock Company “SVEZA Manturovo”; Joint Stock Company “SVEZA Novator”; Limited Liability Company “SVEZA Uralskiy”	14,40  %	C659
Syktyvkar Plywood Mill Ltd.	15,72  %	C660
Other cooperating companies listed in the Annex	14,85  %
All other companies	15,80  %	C999

Article 2

The amounts secured by way of the provisional anti-dumping duty under Implementing Regulation (EU) 2021/940 shall be definitively collected. The amounts secured in excess of the definitive rates of the anti-dumping duty shall be released.

Article 3

Article 1 (2) may be amended to add new exporting producers from Russia and make them subject to the appropriate weighted average anti-dumping duty rate for cooperating companies not included in the sample. A new exporting producer shall provide evidence that:

• (a) it did not export the goods described in Article 1(1) during the period of investigation (1 July 2019 to 30 June 2020);

• (b) it is not related to an exporter or producer subject to the measures imposed by this Regulation; and

• (c) it has either actually exported the product concerned or has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the period of investigation.

Article 4

‘Sveza Group composed of seven exporting producers: JSC «SVEZA Manturovo»; JSC «SVEZA Novator»; Tyumen Plywood Plant Limited; JSC «SVEZA Ust-Izhora»; JSC «SVEZA Uralskiy»; JSC «SVEZA Kostroma»; JSC «SVEZA Verhnaya Sinyachiha» ’

is replaced by

‘Sveza Group composed of seven exporting producers: “SVEZA Tyumen” Limited Liability Company; Joint Stock Company “SVEZA Ust-Izhora”; Joint Stock Company “SVEZA Verhnaya Sinyachiha”; Joint Stock Company “SVEZA Kostroma”; Joint Stock Company “SVEZA Manturovo”; Joint Stock Company “SVEZA Novator”; Limited Liability Company “SVEZA Uralskiy” ’.

‘Murashi Plywood Factory’

is replaced by

‘LLC Murashinskiy plywood plant’.

Article 5

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 8 November 2021.

For the Commission

The President

Ursula VON DER LEYEN

The World Bank, “Commodity Prices to Stabilize after Early 2021 Gains, Supported by Global Economic Recovery”,https://www.worldbank.org/en/news/press-release/2021/04/20/commodity-prices-to-stabilize-after-early-2021

ANNEX

Cooperating exporting producers not sampled

Name	TARIC additional code
Arkhangelsk Plywood Plant JSC	C662
CJSC Murom	C663
LLC InvestForest	C664
Joint Stock Company Bryansk Plywood Mill	C665
Joint-Stock Company Krasnyi Yakor	C666
Limited Liability Company Fanernyiy Zavod	C667
Limited Liability Company UPM-Kymmene Chudovo	C668
LLC Murashinskiy plywood plant	C669
Parfino Plywood Factori	C670
ZAO Plyterra	C671
Plywood Plant Vlast Truda JSC	C672
Limited Liability Company Vyatsky Plywood Mill	C673