Commission Implementing Regulation (EU) 2022/402 of 9 March 2022 imposing a definitive anti-dumping duty on imports of certain aluminium foil originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council
This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.
| Country | 2017 | 2018 | 2019 | Review investigation period | |
| Armenia | Volume (tonnes) | 14 164 | 19 278 | 18 373 | 17 257 |
| Index | 100 | 136 | 130 | 122 | |
| Market share (%) | 19 | 27 | 25 | 22 | |
| Index | 100 | 140 | 129 | 113 | |
| Average price | 2 804 | 2 895 | 2 730 | 2 533 | |
| Index | 100 | 103 | 97 | 90 | |
| Thailand | Volume (tonnes) | 28 | 1 027 | 2 659 | 6 820 |
| Index | 100 | 3 693 | 9 565 | 24 534 | |
| Market share (%) | 0,04 | 1,4 | 4 | 9 | |
| Index | 100 | 3 793 | 9 364 | 22 685 | |
| Average price | 2 337 | 2 544 | 2 426 | 2 381 | |
| Index | 100 | 109 | 104 | 102 | |
| Turkey | Volume (tonnes) | 16 221 | 15 289 | 17 565 | 18 103 |
| Index | 100 | 94 | 108 | 112 | |
| Market share (%) | 22 | 21 | 24 | 23 | |
| Index | 100 | 97 | 108 | 103 | |
| Average price | 2 878 | 2 952 | 2 828 | 2 601 | |
| Index | 100 | 103 | 98 | 90 | |
| Rest of the world | Volume (tonnes) | 3 407 | 2 539 | 1 968 | 558 |
| Index | 100 | 75 | 58 | 16 | |
| Market share (%) | 5 | 4 | 3 | 1 | |
| Index | 100 | 77 | 58 | 15 | |
| Average price | 2 751 | 2 928 | 2 918 | 3 117 | |
| Index | 100 | 106 | 106 | 113 | |
| Total third countries except the PRC | Volume (tonnes) | 33 820 | 38 133 | 40 564 | 42 738 |
| Index | 100 | 113 | 120 | 126 | |
| Market share (%) | 46 | 53 | 55 | 53 | |
| Index | 100 | 116 | 119 | 117 | |
| Average price | 2 834 | 2 910 | 2 764 | 2 545 | |
| Index | 100 | 103 | 98 | 90 | |
| Total third countries except Thailand and the PRC | Volume (tonnes) | 33 792 | 37 106 | 37 905 | 35 918 |
| Index | 100 | 110 | 112 | 106 | |
| Market share (%) | 46 | 51 | 51 | 45 | |
| Index | 100 | 113 | 112 | 98 | |
| Average price | 2 834 | 2 921 | 2 785 | 2 576 | |
| Index | 100 | 103 | 98 | 91 | |
| Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. |
- (132) During the period considered, imports from other third countries increased by around 9 000 tonnes, i.e. by 26 % which is faster than the progression of the Union consumption which resulted in the market share increase from 46 % to 53 %.
- (133) However, 76 % of this increase (6 792 tonnes) were imports from Thailand that are circumventing the definitive anti-dumping measures in force on imports from China as set out in recital (3) and have therefore to be considered as Chinese imports.
- (134) As shown in table 5, while imports from other third countries except Thailand increased by 6 % during the period considered (2 126 tonnes), at a pace slower than the Union consumption, imports from Thailand increased by several thousand times resulting in an increase of market share from 0 % to 9 %. Other third country imports without Thailand lost market share, in particular between 2019 and the review investigation period, where the increase in market share from Thailand was the most pronounced (+5 percentage points).
- (135) During the review investigation period, price levels of imports from Thailand were found to undercut Union industry sales prices by 3,5 % on average, as explained in recital (129) above, while at the same time import prices from other third countries except Thailand were in line with the Union industry sales prices.
5.4. Economic situation of the Union industry
5.4.1. General remarks
- (136) The assessment of the economic situation of the Union industry included an evaluation of all economic indicators having a bearing on the state of the Union industry during the period considered.
- (137) As mentioned in recital (11), sampling was used for the assessment of the economic situation of the Union industry.
- (138) For the injury determination, the Commission distinguished between macroeconomic and microeconomic injury indicators. The Commission evaluated the macroeconomic indicators on the basis of data contained in the replies to the anti-dumping questionnaire by the sampled producers as well as macroeconomic data provided by the non-sampled producers and the Union producers’ association, crosschecked with the data in the review request. The data related to all Union producers. The Commission evaluated the microeconomic indicators on the basis of data contained in the questionnaire replies from the sampled Union producers. The data related to the sampled Union producers. Both sets of data were found to be representative of the economic situation of the Union industry.
- (139) The macroeconomic indicators are: production, production capacity, capacity utilisation, sales volume, market share, growth, employment, productivity, magnitude of the dumping margin, and recovery from past dumping.
- (140) The microeconomic indicators are: average unit prices, unit cost, labour costs, inventories, profitability, cash flow, investments, return on investments, and ability to raise capital.
5.4.2. Macroeconomic indicators
5.4.2.1. Production, production capacity and capacity utilisation
- (141) The total Union production, production capacity and capacity utilisation developed over the period considered as follows:
Table 6
Production, production capacity and capacity utilisation
| 2017 | 2018 | 2019 | Review investigation period | |
| Production volume (tonnes) | 41 387 | 35 173 | 36 292 | 39 460 |
| Index | 100 | 85 | 88 | 95 |
| Production capacity (tonnes) | 52 900 | 47 600 | 48 100 | 50 750 |
| Index | 100 | 90 | 91 | 96 |
| Capacity utilisation (%) | 78,2 | 73,9 | 75,5 | 77,8 |
| Index | 100 | 94 | 96 | 99 |
| Source: information provided by the sampled and non-sampled Union producers, information provided by the Union producer’s associations. | Source: information provided by the sampled and non-sampled Union producers, information provided by the Union producer’s associations. | Source: information provided by the sampled and non-sampled Union producers, information provided by the Union producer’s associations. | Source: information provided by the sampled and non-sampled Union producers, information provided by the Union producer’s associations. | Source: information provided by the sampled and non-sampled Union producers, information provided by the Union producer’s associations. |
- (142) Although Union consumption increased by 8 % during the period considered as mentioned in recital (113), production volume of the like product decreased by 15 % from 2017 to 2018, after which it slightly recovered over the rest of the period considered, resulting in a decrease of 5 % during the full period considered. Therefore, the increase of the Union consumption has not benefitted the Union industry.
- (143) The decrease of the production volume is partly due to the Union industry’s restructuring processes undertaken to recover from the injury suffered during the review investigation period of the previous expiry review investigation (1 October 2013 to 30 September 2014), and partly due to the increasing unfair competition that the Union industry faced from circumvented imports of the product under review coming from Thailand. As explained in recital (132), the increase in import volumes from third countries was mainly due to an increase in circumvented AHF from Thailand.
5.4.2.2. Sales volume and market share
- (144) The Union industry’s sales volume and market share developed over the period considered as follows:
Table 7
Sales volume and market share
| 2017 | 2018 | 2019 | Review investigation period | |
| Total sales volume on the Union market (tonnes) | 38 107 | 31 871 | 31 550 | 35 739 |
| Index | 100 | 84 | 83 | 94 |
| Market share (%) | 51 | 44 | 42 | 45 |
| Index | 100 | 86 | 82 | 87 |
| Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. |
- (145) Sales volume of the Union industry decreased by 6 % during the period considered. It decreased steadily up to 2019 (by 17 %) and recovered partially during the review investigation period, increasing by 11 percentage points. However, this increase was not in line with the increase in Union consumption which resulted overall in a loss of market share of the Union industry from 51 % in 2017 to 45 % in the review investigation period (minus 6 percentage points), while the market share of the circumvented imports from Thailand gained 9 percentage points during the same period.
5.4.2.3. Growth
- (146) Although Union consumption increased by 8 % during the period considered, the sales volume of the Union industry decreased by 6 %, which resulted in a 13 % market share loss for the Union industry over the period considered. Consequently, there was no growth for the Union industry during the period considered.
5.4.2.4. Employment and productivity
- (147) Employment and productivity developed over the period considered as follows:
Table 8
Employment and productivity
| 2017 | 2018 | 2019 | Review investigation period | |
| Number of employees (FTE) | 394 | 356 | 359 | 378 |
| Index | 100 | 90 | 91 | 96 |
| Productivity (unit/employee) | 105 | 99 | 101 | 104 |
| Index | 100 | 94 | 96 | 99 |
| Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. | Source: Information provided by the applicant, information provided by the sampled and non-sampled Union producers. |
- (148) The number of employees of the Union industry decreased between 2017 and the review investigation period by 4 %. The productivity of the Union industry’s workforce, measured as output (tonnes) per employee, followed the same trend up to 2019 and recovered in the review investigation period following the production and sales increase, as explained in recitals (142) and (145) above.
- (149) The decrease of the number of employees is due to the decrease of production volume, which is also linked to the decrease of the Union industry’s sales volume.
5.4.2.5. Magnitude of the dumping margin and recovery from past dumping
- (150) The Commission concluded in recital (89) that dumping from the PRC continued during the review investigation period. The Commission also concluded that there was a strong likelihood of continuation of dumping from the PRC, if the measures lapse.
- (151) Notwithstanding the anti-dumping measures in force since 2009, the Union industry has lost substantial sales volume which is reflected in a loss of market share of 13 % over the period considered. Thus, no full recovery from the past dumping could be established and the Union industry remains highly vulnerable to the injurious effects of any dumped imports in the Union market.
5.4.3. Microeconomic indicators
5.4.3.1. Prices and factors affecting prices
- (152) The weighted average unit sales prices of the sampled Union producers to unrelated customers in the Union developed over the period considered as follows:
Table 9
Sales prices in the Union
| 2017 | 2018 | 2019 | Review investigation period | |
| Average unit sales price in the Union on the total market (EUR/tonne) | 2 822 | 2 930 | 2 810 | 2 663 |
| Index | 100 | 104 | 100 | 94 |
| Unit cost of production (EUR/tonne) | 2 645 | 2 776 | 2 620 | 2 574 |
| Index | 100 | 105 | 99 | 97 |
| Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. |
- (153) The average unit sales price increased between 2017 and 2018 and decreased in 2019 at the same level of 2017, then dropped by 6 % during the review investigation period. While the Union industry managed to keep its sales prices above the unit cost of production during the entire period considered, the price pressure of the increased circumvented imports from Thailand were showing an effect on the Union industry sales prices during the review investigation period, were they dropped to a higher degree than the unit cost.
5.4.3.2. Labour costs
- (154) The average labour costs of the sampled Union producers developed over the period considered as follows:
Table 10
Average labour costs per employee
| 2017 | 2018 | 2019 | Review investigation period | |
| Average labour costs per employee (EUR) | 19 444 | 19 827 | 20 487 | 22 184 |
| Index | 100 | 102 | 105 | 114 |
| Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. |
- (155) The average labour cost progressively increased over the period considered. Overall, the average labour cost per employee increased by 14 %. This trend was mostly influenced by the restructuring process on the Union industry, as some producers invested in creating sales structures in different Member States.
5.4.3.3. Inventories
- (156) Stock levels of the sampled Union producers developed over the period considered as follows:
Table 11
Inventories
| 2017 | 2018 | 2019 | Review investigation period | |
| Closing stocks (tonnes) | 978 | 940 | 1 693 | 1 425 |
| Index | 100 | 96 | 173 | 146 |
| Closing stocks as a percentage of production | 2,4 | 2,7 | 4,7 | 3,6 |
| Index | 100 | 113 | 197 | 153 |
| Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. |
- (157) Inventories cannot be considered as a relevant injury indicator in this sector, as production and sales are mainly based on orders and, accordingly, producers tend to hold limited stocks. Therefore, the trends on inventories are given for information only.
- (158) Overall, inventories increased during the period considered by 46 %. Initially they decreased by 4 % from 2017 to 2018 before progressively increasing in 2019 and the review investigation period.
5.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
- (159) Profitability, cash flow, investments and return on investments of the sampled Union producers developed over the period considered as follows:
Table 12
Profitability, cash flow, investments and return on investments
| 2017 | 2018 | 2019 | Review investigation period | |
| Profitability of sales in the Union to unrelated customers (% of sales turnover) | 8,2 | 7,4 | 6,8 | 3,4 |
| Index | 100 | 90 | 83 | 41 |
| Cash flow (EUR) | 10 768 045 | 10 888 351 | 8 682 415 | 10 199 898 |
| Index | 100 | 101 | 81 | 95 |
| Investments (EUR) | 1 141 165 | 4 327 224 | 1 119 149 | 1 665 356 |
| Index | 100 | 379 | 98 | 146 |
| Return on investments (%) | 10 | 7 | 5 | 1 |
| Index | 100 | 74 | 55 | 15 |
| Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. | Source: Questionnaire replies of the sampled Union producers. |
- (160) The Commission established the profitability of the sampled Union producers by expressing the pre-tax net profit of the sales of the like product to unrelated customers in the Union as a percentage of the turnover of those sales.
- (161) After the previous expiry review investigation mentioned in recital (1), where the anti-dumping measures were imposed, the situation of the Union industry improved and its profit margin reached 8,2 % in 2017. However, the situation deteriorated subsequently and profit margins declined as from 2018 reaching only 3,4 % in the review investigation period, corresponding to a decrease of 59 % over the period considered.
- (162) This was mainly due to the price pressure exerted by the circumvented imports from Thailand which entered into the Union undercutting those of the Union industry and exerting a significant price pressure that forced the Union industry to reduce their prices levels, as explained above in recital (153).
- (163) The net cash flow is the Union industry’s ability to self-finance their activities. Given that the Union industry is still profitable, despite the decreasing trend, the cash flow remained overall relatively stable over the period considered.
- (164) Investments increased by 46 % in the period considered, which is mainly due to the efforts made by the Union industry to rationalize its production and increase efficiency and productivity to face the increasing low priced imports. However, in the same period, the return on investments, which is expressed as the profit in percentage of the net book value of investments dropped from 10 % to 1 % and therefore followed the same trend as the profitability.
- (165) The decreasing profitability and return on investment made it increasingly difficult for the sampled Union producers to raise capital for investment. With returns on investments falling so quickly, the sampled producers’ ability to raise capital in the future is in even greater jeopardy.
5.4.4. Conclusion on injury
- (166) The evolution of the micro and macro indicators during the period considered showed that the financial situation for the Union industry deteriorated. Overall, the trends of the main economic indicators worsened over the period considered.
- (167) In particular, production, sales volumes and market shares decreased, as well as sales prices which had a negative effect on employment and productivity as well as on profitability. The increased price pressure from the circumvented imports coming from Thailand in particular did not allow the Union industry to align its sales prices with the development of its production costs with negative effects on its profitability which saw a decrease of almost 60 % over the period considered. Finally, the rapidly decreasing returns on investments has a negative impact on the Union industry’s ability to raise capital and investments.
- (168) On the other hand, despite the declining trends, the Union industry still managed to maintain large sales volume and considerable market share. Likewise, despite the negative trend, profitability remained positive throughout the period considered. Therefore, the Commission concluded that the Union industry did not suffer material injury within the meaning of Article 3(5) of the basic Regulation during the review investigation period, but was in a fragile situation.
- (169) Therefore, the Commission further examined the likelihood of recurrence of injury if the measures lapse.
6. LIKELIHOOD OF RECURRENCE OF INJURY
- (170) The Commission concluded in recital (168) that the Union industry did not suffer material injury during the review investigation period, but was in a fragile situation. Therefore, the Commission assessed, in accordance with Article 11(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury originally caused by the dumped imports from the PRC if the measures were allowed to lapse.
- (171) In order to establish whether there is likelihood of recurrence of injury originally caused by the dumped imports from the country concerned, the Commission considered the following elements: (i) production volume and spare capacity in the PRC and attractiveness of the Union market; (ii) likely price levels of imports from the PRC and their impact on the Union industry’s situation, should the measures allowed to lapse; and (iii) the existence of circumvention practices.
6.1. Production volume and spare capacity in the PRC – attractiveness of the Union market
- (172) As set out in recital (91), the production capacity in the PRC substantially exceeds the production volumes and internal demand on the Chinese domestic market. Given in addition the conclusions on the attractiveness of the Union market as described in recitals (102) to (105), such spare capacity will very likely largely be used for exports to the Union market, if measures were allowed to lapse.
6.2. Likely price levels of imports from the PRC and their impact on the Union industry’s situation should the measures lapse
- (173) In order to assess the impact of future imports on the situation of the Union industry, the Commission considered that price levels of the Chinese exports without anti-dumping duties would be a reasonable indicator of future price levels to the Union market. On this basis, as set out in recitals (127) and (128) respectively, the average undercutting margin for the product under review was found to be 4,2 % for all import regimes, and 7,2 %, under the inward processing regime, the latter, subject to no duties, is considered the best indicator of the likely price levels in the absence of anti-dumping measures.
- (174) Moreover, as explained in recital (120), almost all the imports from the PRC into the Union were made under the inward processing regime. Therefore, it can be concluded that the anti-dumping measures were effective in preventing dumped imports from the PRC from entering the Union market and that they will most likely resume if the measures will expire.
- (175) The product under review is a commodity product, and therefore the market is price sensitive. A surge in imports at low prices would force the Union industry to further reduce their prices as it has already been done in order to compete with the circumvented imports from Thailand, as explained above in recitals (133) and (135).
- (176) Considering the above, and if confronted with an increase of low priced imports from the PRC, the Union producers, in an attempt to keep sales volumes and market shares, would reduce their prices by 4,2 % (at the level of the undercutting), this would have an impact on the industry’s overall profitability, which would decrease from 3,4 % in the review investigation period to -1 % and therefore turn negative in short term.
- (177) On the other hand, if the Union industry keeps its current price levels, and considering AHF is a commodity product, this would have an almost immediate negative impact on its sales and production volume as well as market share. Moreover, a decrease in production volume would result in an increase of the unit costs of production due to the reduced economy of scales. This would further deteriorate the Union industry’s profitability and turn into losses in short term.
- (178) With a loss of profitability, the Union industry would not be able to carry out necessary investments. Ultimately, this would also lead to loss of employment and risk of closure of production lines.
6.3. Existence of circumvention practices
- (179) As set out in recital (104), the Chinese exporters have a history of dumping practices towards the Union market. Currently, as mentioned in recitals (2) and (3), two anti-circumvention measures are in place, one against imports of a slightly modified product from China and a second, more recent, for imports coming from Thailand were Chinese exporting producers set up assembly operations.
- (180) As indicated in recitals (153) and (162), circumvention practices from Thailand were the main cause for the Union industry’s losses in sales volume and marked share during the period considered. The existence of these circumvention practices show that circumvented imports that enter the Union market without anti-dumping duties have significant negative effect on the Union industry’s situation, that materialise quickly due to the price sensitivity of the market.
6.4. Conclusion
- (181) In view of the above, the Commission concluded that the expiry of the measures would in all likelihood result in a significant increase of dumped imports from the PRC at prices undercutting the Union industry prices, and therefore further aggravate the already fragile economic situation of the Union industry. It is highly likely that this would lead to a recurrence of material injury and as a consequence, the viability of the Union industry would be at serious risk.
7. UNION INTEREST
- (182) In accordance with Article 21 of the basic Regulation, the Commission examined whether maintaining the existing anti-dumping measures would be against the interest of the Union as whole. The determination of the Union interest was based on an appreciation of all the various interests involved, including those of the Union industry, importers, distributors and users.
- (183) All interested parties were given the opportunity to make their views known pursuant to Article 21(2) of the basic Regulation.
7.1. Interest of the Union industry
- (184) The Union industry is composed of around eight companies and employed around 1 000 workers directly with many more relying on it indirectly. As mentioned in recital (11), the Commission selected a sample of Union producers. The sample consisted of 3 Union producers that provided a reply to the questionnaire. The sample was considered representative for the Union industry.
- (185) As set out above, the Union industry did not suffer material injury during the period considered but it is in a fragile situation, as confirmed by the negative trends of the injury indicators. Removing the anti-dumping duties would lead to a likely recurrence of material injury which would be translated in a loss of sales and production volume, as well as market share leading to a loss of profitability and employment.
- (186) On the other hand, the Union industry has proven to be a viable industry. After the last expiry review it managed improving its situation under fair conditions on the Union market, making investments and reaching a fair profitability. The continuation of the measures would prevent low priced imports from the PRC to flood the Union market and therefore allow the Union industry to maintain sustainable price levels and increase its profitability to reach levels necessary for future investments.
- (187) On this basis, the Commission thus concluded that the maintenance of the anti-dumping measures is in the interest of the Union industry.
7.2. Interest of unrelated importers, traders and users
- (188) The Commission contacted all known unrelated importers, traders and users. Only one importer, Cellofix, provided comments but did not submit a reply to the questionnaire.
- (189) Cellofix opposed the renewal of the measures in force claiming that: (i) it would not result in a recurrence of injury for the Union industry and, (ii) it would not be in the interest of the Union.
- (190) As regards the first point, Cellofix argued that the current measures have been in force for a period of over eleven years during which it claimed the Union industry had recovered from any injury suffered. This would also be evidenced by the industry’s growth.
- (191) The Commission disagrees with this claim. As set out in section 5.4, the investigation established a general downward trend of the Union industry’s economic and financial indicators and showed that the Union industry was in a fragile situation during the review investigation period. As set out in recital (146), the Commission did also not find that there was a growth of the Union industry. It is recalled that on the basis of these developments the Commission concluded that the expiry of the measures would likely lead to a recurrence of material injury. The arguments of the importer in this respect were therefore rejected.
- (192) As regards the second point that the renewal of the measures will not be in the Union interest, the importer claimed that, following the adoption of the definitive anti-dumping measures in 2009, it has struggled to buy AHF from the Union industry due to their lack of production capacity but also due to the pressure exerted by its large competitors on the Union producers, in order to limit the supply to Cellofix.
- (193) Concerning the alleged lack of production capacity, the investigation has shown that the Union industry had about 10 000 tonnes of spare capacity available which does not suggest any problems of the Union industry to supply the Union market. Regarding the alleged pressure on the Union industry to limit supply of AHF, the company did not provide any evidence to support this claim. These claims were therefore dismissed.
- (194) Given the non-cooperation of any other importers, traders or users, no information was available on the impact of the duties on these parties. The original investigation revealed, however, that any impact on other interested parties was not as such that measures had to be considered to be against the Union interest and likewise, the previous expiry review investigation established that the maintenance of the measures would not have a significant negative impact on the situation these parties.
- (195) On the basis of the above, the Commission concluded that the maintenance of the anti-dumping measures in force would not have any significant adverse effects on importers, traders or users.
7.3. Conclusion on Union interest
- (196) On the basis of the above, the Commission concluded that there were no compelling reasons of the Union interest against the maintenance of the existing measures on imports of the product under review originating in the PRC.
8. ANTI-DUMPING MEASURES
- (197) Based on the conclusions reached by the Commission concerning the continuation of dumping from the PRC, the recurrence of injury caused by dumped imports from the PRC, and the Union interest, the Commission finds that the anti-dumping measures on imports of certain aluminium foil originating in the PRC should be maintained.
- (198) To minimize the risks of circumvention due to the high 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’.
- (199) 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.
- (200) Should the exports by one of the companies benefiting from lower individual duty rates increase significantly in volume after the imposition of the measures concerned, such an increase in volume could be considered as constituting in itself a change in the pattern of trade due to the imposition of measures within the meaning of Article 13(1) of the basic Regulation. In such circumstances and provided the conditions are met an anti-circumvention investigation may be initiated. This investigation may, inter alia, examine the need for the removal of individual duty rates and the consequent imposition of a country-wide duty.
- (201) The individual company anti-dumping duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in the PRC and produced by the named legal entities. Imports of the product under review 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.
- (202) 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 60. 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.
- (203) All interested parties were informed of the essential facts and considerations on the basis of which it was intended to recommend that the existing measures be maintained. They were also granted a period to make representations subsequent to this disclosure. No comments were received.
- (204) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 61, 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.
- (205) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 15(1) of Regulation (EU) 2016/1036,
HAS ADOPTED THIS REGULATION:
Article 1
A definitive anti-dumping duty is hereby imposed on imports of aluminium foil of a thickness of not less than 0,008 mm and not more than 0,018 mm, not backed, not further worked than rolled, in rolls of a width not exceeding 650 mm and of a weight exceeding 10 kg, currently falling under CN code ex 7607 11 19 (TARIC code 7607111910), and originating in the People’s Republic of China.
The rates of the definitive anti-dumping duty applicable to the net, free-at-Union-frontier price, before duty, of the product described in paragraph 1 and produced by the companies listed below shall be as follows:
| Country | Company | Anti-dumping duty | TARIC additional code |
|---|---|---|---|
| PRC | Alcoa (Shanghai) Aluminium Products Co., Ltd and Alcoa (Bohai) Aluminium Industries Co., Ltd | 6,4 % | A944 |
| PRC | Shandong Loften Aluminium Foil Co., Ltd | 20,3 % | A945 |
| PRC | Zhenjiang Dingsheng Aluminium Co., Ltd | 24,2 % | A946 |
| PRC | All other companies | 30,0 % | A999 |
The application of the individual duty rates specified for the companies mentioned in paragraph 2 shall be conditional upon presentation to the Member States’ customs authorities of a valid commercial invoice, on which shall appear a declaration dated and signed by an official of the entity issuing such invoice, identified by his/her name and function, drafted as follows: ‘I, the undersigned, certify that the (volume) of (product concerned) sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in [country concerned]. I declare that the information provided in this invoice is complete and correct.’ If no such invoice is presented, the duty applicable to all other companies shall apply.
The definitive anti-dumping duty applicable to “all other companies” as set out in paragraph 2, is hereby extended to imports into the Union of certain aluminium foil originating in the People’s Republic of China, currently falling under CN codes ex 7607 11 19 and ex 7607 11 90 (TARIC codes 7607111930, 7607111940, 7607111950, 7607119044, 7607119046, 7607119071, and 7607119072), with the exception of those produced by the companies listed below:
| Company name | TARIC additional code |
|---|---|
| Jiangsu Zhongji Lamination Materials Co., Ltd | C198 |
| Luoyang Wanji Aluminium Processing Co., Ltd | C199 |
| Xiamen Xiashun Aluminium Foil Co., Ltd | C200 |
| Yantai Donghai Aluminum Foil Co., Ltd | C201 |
The definitive anti-dumping duty applicable to imports originating in the People’s Republic of China, as set out in paragraph 2, is hereby extended to imports of certain aluminium foil, currently falling under CN codes ex 7607 11 19 and ex 7607 11 90 (TARIC codes 7607111910, 7607111930, 7607111940, 7607111950, 7607119044, 7607119046, 7607119071, 7607119072) consigned from Thailand, whether declared as originating in Thailand or not (TARIC additional code C601).
Unless otherwise specified, the provisions in force concerning customs duties shall apply.
Article 2
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, 9 March 2022.
For the Commission
The President
Ursula VON DER LEYEN
Council Regulation (EC) No 925/2009 of 24 September 2009 imposing a definitive anti-dumping duty and collecting definitively the duty imposed on imports of certain aluminium foils originating in Armenia, Brazil and the People’s Republic of China (OJ L 262, 6.10.2009, p. 1).
Commission Implementing Regulation (EU) 2015/2384 of 17 December 2015 imposing a definitive anti-dumping duty on imports of certain aluminium foils originating in the People’s Republic of China and terminating the proceeding for imports of certain aluminium foils originating in Brazil following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 1225/2009 (OJ L 332, 18.12.2015, p. 63).
Commission Implementing Regulation (EU) 2017/271 of 16 February 2017 extending the definitive anti-dumping duty imposed by Council Regulation (EC) No 925/2009 on imports of certain aluminium foil originating in the People’s Republic of China to imports of slightly modified certain aluminium foil (OJ L 40, 17.2.2017, p. 51).
Commission Implementing Regulation (EU) 2021/1474 of 14 September 2021 extending the definitive anti-dumping duty imposed by Implementing Regulation (EU) 2015/2384 and Implementing Regulation (EU) 2017/271 on imports of certain aluminium foil originating in the People’s Republic of China to imports of certain aluminium foil consigned from Thailand, whether declared as originating in Thailand or not. (OJ L 325, 15.9.2021, p. 6).
Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of certain aluminium foil originating in the People’s Republic of China (OJ C 436, 17.12.2020, p. 10).
https://trade.ec.europa.eu/tdi/case_details.cfm?id=2500
Inward processing means that non-Union goods are imported in order to be used in the customs territory of the Union in one or more processing operations, for instance, for the purposes of manufacturing or repair. When imported, such goods are not subject to the import duties.
Commission Implementing Regulation (EU) 2021/546 of 29 March 2021 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of aluminium extrusions originating in the People’s Republic of China (OJ L 109, 30.3.2021, p. 1); Commission Implementing Regulation (EU) 2021/582 of 9 April 2021 imposing a provisional anti-dumping duty on imports of aluminium flat-rolled products originating in the People’s Republic of China (OJ L 124, 12.4.2021, p. 40); Commission Implementing Regulation (EU) 2021/983 of 17 June 2021 imposing a provisional anti-dumping duty on imports of aluminium converter foil originating in the People’s Republic of China (OJ L 216, 18.6.2021, p. 142).
Commission Implementing Regulation (EU) 2020/1428 of 12 October 2020 imposing a provisional anti-dumping duty on imports of aluminium extrusions originating in the People’s Republic of China (OJ L 336, 13.10.2020, p. 8), recitals 91-97 and 154-158; Implementing Regulation (EU) 2021/582, recitals 125-131 and 185-188; Implementing Regulation (EU) 2021/983, recitals 80-86 and 140-143.
Implementing Regulation (EU) 2020/1428, recitals 98-104; Implementing Regulation (EU) 2021/582, recitals 132-137; Implementing Regulation (EU) 2021/983, recitals 87-92.
Implementing Regulation (EU) 2020/1428, recitals 105-112; Implementing Regulation (EU) 2021/582, recitals 138-143; Implementing Regulation (EU) 2021/983, recitals 93-98. While the right to appoint and to remove key management personnel in SOEs by the relevant State authorities, as provided for in the Chinese legislation, can be considered to reflect the corresponding ownership rights, CCP cells in enterprises, state owned and private alike, represent another important channel through which the State can interfere with business decisions. According to the PRC’s company law, a CCP organisation is to be established in every company (with at least three CCP members as specified in the CCP Constitution) and the company shall provide the necessary conditions for the activities of the party organisation. In the past, this requirement appears not to have always been followed or strictly enforced. However, since at least 2016 the CCP has reinforced its claims to control business decisions in SOEs as a matter of political principle. The CCP is also reported to exercise pressure on private companies to put ‘patriotism’ first and to follow party discipline. In 2017, it was reported that party cells existed in 70 % of some 1.86 million privately owned companies, with growing pressure for the CCP organisations to have a final say over the business decisions within their respective companies. These rules are of general application throughout the Chinese economy, across all sectors, including the producers of aluminium foils and the suppliers of their inputs.
Implementing Regulation (EU) 2020/1428, recitals 113-135; Implementing Regulation (EU) 2021/582, recitals 144-166; Implementing Regulation (EU) 2021/983, recitals 99-120.
Implementing Regulation (EU) 2020/1428, recitals 136-140; Implementing Regulation (EU) 2021/582, recitals 167-171; Implementing Regulation (EU) 2021/983, recitals 121-125.
Implementing Regulation (EU) 2020/1428, recitals 141-142; Implementing Regulation (EU) 2021/582, recitals 172-173; Implementing Regulation (EU) 2021/983, recitals 126-127.
Implementing Regulation (EU) 2020/1428, recitals 143-153; Implementing Regulation (EU) 2021/582, recitals 174-184; Implementing Regulation (EU) 2021/983, recitals 128-139.
SWD(2017) 483 final/2, 20.12.2017, https://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156474.pdf.
Commission Implementing Regulation (EU) 2019/915 of 4 June 2019 imposing a definitive anti-dumping duty on imports of certain aluminium foil in rolls originating in the People’s Republic of China following an expiry review under Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council, OJ L 146, 5.6.2019, p. 63–97.
OECD Trade Policy Papers, No 218, OECD Publishing, Paris, available at: http://dx.doi.org/10.1787/c82911ab-en
Think!Desk China Consulting & Research, “Final Report – Analysis of Market Distortions in the Chinese Non- Ferreous Metal Industry”.
http://www.gov.cn/xinwen/2019-11/06/content_5449193.htm (last viewed 29 October 2021).
Certain Aluminium Foil from the People’s Republic of China: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order, 83 Fed. Reg. 17,360 (Dep’t Comm, Apr. 19, 2018)
Implementing Regulation (EU) 2021/582, recitals 141-142; Implementing Regulation (EU) 2021/983, recitals 96-97.
See at: http://www.nanshan.com.cn/searchdetails?id=2838&cid= (accessed on 31 August 2021).
See at: https://www.dfdcjt.com/article/item.html?id=2166 (accessed on 31 August 2021).
The 13th Five-Year Plan for Economic and Social Development of the People’s Republic of China (2016-2020), available at
https://en.ndrc.gov.cn/newsrelease_8232/201612/P020191101481868235378.pdf (last viewed 6 May 2021).
Implementing Regulation (EU) 2021/582, recitals 147-155; Implementing Regulation (EU) 2021/983, recitals 102-109.
Implementing Regulation (EU) 2021/582, Implementing Regulation (EU) 2021/983, recital 111.
According to available information, in 2020 the Chinese aluminium foil production increased by 3,8 % year-on-year (see China Nonferrous Metals News – Exploring a new "blue ocean" for aluminum foil applications, available at: https://finance.sina.com.cn/money/future/indu/2021-07-14/doc-ikqciyzk5369663.shtml, last viewed 22 September 2021), In addition, while China’ electrolytic aluminium production capacity was reported in 2020 to amount to approximately 38,55 million tons per year, it was expected to increase by 3,163 million tons in 2021 (see Review and Outlook of the Aluminum Market in 2020, available at: https://www.sohu.com/a/445610891_782456, last viewed 22 September 2021).
Implementing Regulation (EU) 2021/582, recitals 162-165; Implementing Regulation (EU) 2021/983, recitals 116-120.
World Bank Open Data – Upper Middle Income, https://data.worldbank.org/income-level/upper-middle-income
Financial data for the only producing company (Rusal Armenal, CJSC) could not be found in Dun and Bradstreet database (https://globalfinancials.com/index-admin.html), nor on the company’s website or anywhere else in the internet.
Implementing Regulation (EU) 2020/1428, recital 169.
The financial data from the five aluminium extrusion companies were used in two recent Commission investigations on aluminium products: aluminium flat-rolled products (OJ L 124, 12.4.2021, p. 40, rec. 266-267) and aluminium converter foil (OJ L 216, 18.6.2021, p. 142, rec. 223).
http://www.gtis.com/gta/secure/default.cfm
https://data.tuik.gov.tr/Kategori/GetKategori?p=istihdam-issizlik-ve-ucret-108&dil=2
https://data.tuik.gov.tr/Kategori/GetKategori?p=cevre-ve-enerji-103&dil=2
Regulation (EU) 2015/755 of the European Parliament and of the Council of 29 April 2015 on common rules for imports from certain third countries (OJ L 123, 19.5.2015, p. 33). These countries are Azerbaijan, Belarus, North Korea, Turkmenistan and Uzbekistan. Article 2(7) of the basic Regulation considers that domestic prices in those countries cannot be used for the purpose of determining normal value.
https://data.tuik.gov.tr/Kategori/GetKategori?p=istihdam-issizlik-ve-ucret-108&dil=2
This was the most recent period for which hourly labour costs for this activity were available at the moment we consulted the dataset.
The category "basic metals" includes aluminium under code C24.42 (see https://ec.europa.eu/eurostat/documents/3859598/5902521/KS-RA-07-015-EN.PDF, p. 156).
https://data.tuik.gov.tr/Bulten/DownloadIstatistikselTablo?p=RQJc6lWaNMpivNV6h1MxkWk9ycHqk1cNqZM2UJkJfMUYAmenKIIz/lKzy74RY7Y2
https://data.tuik.gov.tr/Kategori/GetKategori?p=cevre-ve-enerji-103&dil=2
https://data.tuik.gov.tr/Kategori/GetKategori?p=cevre-ve-enerji-103&dil=2
https://globalfinancials.com/index-admin.html (accessed on 28 September 2021).
Annex 1C.3 to the request of review (CRU Overcapacity in Chinese rolled product sector increases focus on exports and European Union Chamber of Commerce in China, Overcapacity in China – an impediment to the Party’s reform agenda) and Chapter 15 of the Commission Staff Working document on significant distortions in the economy of the People’s Republic of China for the purposes of trade defence investigations.
Annex 1C.3 to the request of review (CRU Overcapacity in Chinese rolled product sector increases focus on exports).
Chapter 6 of CRU, The Global Market Outlook for Aluminium Foil to 2022 (Annex 1C.3 to the request of review).
http://www.sheitc.sh.gov.cn/jjyw/20210106/ada4d50132bf4ccaa5c97944073a7d2d.html (last visited 2 September 2021).
https://www.globaltradealert.org/data_extraction
http://i-tip.wto.org/goods/Forms/TableView.aspx
t20.007357 (Annex 1B.4: Open Annexes, part 1, p. 27 to 32).
Annex 1C.3 to the request of review (CRU Global outlook for foil and outlook for primary aluminium, p. 9).
The production volume is based on EU-27 data as the United Kingdom ceased to be part of the European Union as from 1 February 2020 and the transition period for the United Kingdom’s withdrawal ended on 31 December 2020.
Implementing Regulation (EU) 2017/271.
The consumption is based on EU-27 data, excluding data related to the United Kingdom.
During the investigation period, 1 339 tonnes were importer under the inward processing statistical regime, 106 tonnes under the normal statistical regime and 143 tonnes were the circumvented imports under Regulation (EU) 2017/271.
European Commission, Directorate-General for Trade, Directorate G, Rue de la Loi 170, 1040 Brussels, Belgium.
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
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