LegalizeCommission Implementing Regulation (EU) 2022/802 of 20 May 2022 imposing a provisional anti-dumping duty on imports of electrolytic chromium coated steel products originating in the People’s Republic of China and Brazil
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.
- (277) Regarding Handan Jintai Packing Material Co., Ltd, the Commission examined whether a duty lower than the margin of dumping would be sufficient to remove injury. Having found distortions on raw materials with regard to the product concerned in the sense of Article 7(2a) of the basic Regulation, namely in the form of VAT refund withdrawals for HRC, the Commission concluded that it would be in the Union interest, as provided for in Article 7(2b) of the basic Regulation, to set the amount of the duty at the level of the dumping margin, as a duty lower than the margin of dumping would not be sufficient to address the injury suffered by the Union industry.
- (278) The provisional duty for the other cooperating non-sampled companies in the PRC is based on the weighted average injury margin as established above for the two sampled companies in the PRC, which is lower than the weighted average dumping margins for the two sampled companies in the PRC.
- (279) Given the low level of cooperation from producers in the PRC and the fact that the duty level for Jintai was based on the dumping margin found in accordance with Article 7(2a) of the basic Regulation, the level of the countrywide duty level was based on the highest dumping margins found per product types sold in representative quantities by Jintai. The Commission did not need to calculate the underselling or the injury margins as regards non-cooperating companies because of the findings of significant distortions under Article 7(2a).
- (280) Cooperation in Brazil was high and as a result, the residual duty is set at the same level as the one applicable to Companhia Siderúrgica Nacional.
- (281) Details are provided in the table below. On the basis of the above, the provisional anti-dumping duty rates (listed in the last column), expressed on the CIF Union border price, customs duty unpaid, should be as follows:
| Country | Company | Provisional dumping margin | Provisional injury margin | Provisional anti-dumping duty |
|---|---|---|---|---|
| The People’s Republic of China | Baoshan Iron & Steel Co., Ltd | 43,3 % | 33,2 % | 33,2 % |
| Handan Jintai Packing Material Co., Ltd. | 53,9 % | 53,9 % | 53,9 % | |
| Other cooperating companies | 45,1 % | 36,7 % | 36,7 % | |
| All other companies | 77,9 % | 77,9 % | 77,9 % | |
| Brazil | Companhia Siderúrgica Nacional | 66,8 % | 52,0 % | 52,0 % |
| All other companies | 66,8 % | 52,0 % | 52,0 % |
- (282) 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 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.
- (283) 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.
- (284) 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’.
- (285) 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.
- (286) 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 rate(s) and the consequent imposition of a country-wide duty.
9. INFORMATION AT PROVISIONAL STAGE
- (287) In accordance with Article 19a of the basic Regulation, on 25 April 2022, the Commission informed interested parties about the planned imposition of provisional duties. This information was also made available to the general public via DG TRADE’s website. Interested parties were given three working days to provide comments on the accuracy of the calculations specifically disclosed to them. Following comments received, the Commission made corrections to the calculations where warranted.
10. FINAL PROVISIONS
- (288) In the interests of sound administration, the Commission will invite the interested parties to submit written comments and/or to request a hearing with the Commission within a fixed deadline. Interested parties may also request a hearing with the Hearing Officer in trade proceedings.
- (289) The findings concerning the imposition of provisional duties are provisional and may be amended at the definitive stage of the investigation,
HAS ADOPTED THIS REGULATION:
Article 1
A provisional anti-dumping duty is imposed on imports of flat-rolled products of iron or non-alloy steel, plated or coated with chromium oxides or with chromium and chromium oxides, also designated as electrolytic chromium coated steel products, currently falling under CN codes 7210 50 00 and 7212 50 20 and originating in the People’s Republic of China and Brazil.
The rates of the provisional 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 | Provisional anti-dumping duty | TARIC additional code |
|---|---|---|---|
| People’s Republic of China | Baoshan Iron & Steel Co., Ltd | 33,2 % | C039 |
| Handan Jintai Packing Material Co., Ltd. | 53,9 % | C862 | |
| Other cooperating companies: GDH Zhongyue (Zhongshan) Tinplate Industry Co.,Ltd. Shougang Jingtang United Iron & Steel Co., Ltd. | 36,7 % | C137 | |
| All other companies | 77,9 % | C999 | |
| Brazil | Companhia Siderúrgica Nacional | 52,0 % | C212 |
| All other companies | 52,0 % | C999 |
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 release for free circulation in the Union of the product referred to in paragraph 1 shall be subject to the provision of a security deposit equivalent to the amount of the provisional duty.
Unless otherwise specified, the provisions in force concerning customs duties shall apply.
Article 2
Interested parties shall submit their written comments on this regulation to the Commission within 15 calendar days of the date of entry into force of this Regulation.
Interested parties wishing to request a hearing with the Commission shall do so within 5 calendar days of the date of entry into force of this Regulation.
Interested parties wishing to request a hearing with the Hearing Officer in trade proceedings are invited do so within 5 calendar days of the date of entry into force of this Regulation. The Hearing Officer may examine requests submitted outside this time limit and may decide whether to accept to such requests if appropriate.
Article 3
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
Article 1 shall apply for a period of six months.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 20 May 2022.
For the Commission
The President
Ursula VON DER LEYEN
Notice of initiation of an anti-dumping proceeding concerning imports of electrolytic chromium coated steel (ECCS) products originating in the People’s Republic of China and Brazil (OJ C 387, 24.9.2021, p. 2).
Available at https://trade.ec.europa.eu/tdi/case_details.cfm?id=2549
Commission Implementing Regulation (EU) 2022/191 of 16 February 2022 imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People’s Republic of China; Commission Implementing Regulation (EU) 2021/2239 of 15 December 2021 imposing a definitive anti-dumping duty on imports of certain utility scale steel wind towers originating in the People’s Republic of China; Commission Implementing Regulation (EU) 2021/635 of 16 April 2021 imposing a definitive anti-dumping duty on imports of certain welded pipes and tubes of iron or non-alloyed steel originating in Belarus, the People’s Republic of China and Russia following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council and Commission Implementing Regulation (EU) 2020/508 of 7 April 2020 imposing a provisional anti-dumping duty on imports of certain hot rolled stainless steel sheets and coils originating in Indonesia, the People’s Republic of China and Taiwan.
See Commission Implementing Regulation (EU) 2022/191 recitals 206-208, Commission Implementing Regulation (EU) 2021/2239 recital 135, and Commission Implementing Regulation (EU) 2021/635 recitals 149-150, Commission Implementing Regulation (EU) 2020/508 recitals 158-159.
See Commission Implementing Regulation (EU) 2022/191 recital 192, Commission Implementing Regulation (EU) 2021/2239 recitals 58-61, Commission Implementing Regulation (EU) 2021/635 recitals 115-118 and Commission Implementing Regulation (EU) 2020/508 recitals 122-127.
See Commission Implementing Regulation (EU) 2022/191 recitals 193-194, Commission Implementing Regulation (EU) 2021/2239 recitals 62-66, Commission Implementing Regulation (EU) 2021/635 recitals 119-122 and Commission Implementing Regulation (EU) 2020/508 recitals 128-132: 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 to the producers of wire rod producers and the suppliers of their inputs.
See Commission Implementing Regulation (EU) 2022/191 recital 195-201, Commission Implementing Regulation (EU) 2021/2239 recitals 67-74, Commission Implementing Regulation (EU) 2021/635 recitals 123-129 and Commission Implementing Regulation (EU) 2020/508 recitals 133-138.
See Commission Implementing Regulation (EU) 2022/191 recital 202, Commission Implementing Regulation (EU) 2021/2239 recital 75, Commission Implementing Regulation (EU) 2021/635 recitals 130-133 and Commission Implementing Regulation (EU) 2020/508 recitals 139-142.
See Commission Implementing Regulation (EU) 2022/191 recital 203, Commission Implementing Regulation (EU) 2021/2239 recital 76, Commission Implementing Regulation (EU) 2021/635 recitals 134-135 and Commission Implementing Regulation (EU) 2020/508 recitals 143-144.
See Commission Implementing Regulation (EU) 2022/191 recital 203, Commission Implementing Regulation (EU) 2021/2239 recital 76, Commission Implementing Regulation (EU) 2021/635 recitals 136-145 and Commission Implementing Regulation (EU) 2020/508 recitals 145-154.
Commission Implementing Regulation (EU) 2017/969 of 8 June 2017 imposing definitive countervailing duties on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People's Republic of China and amending Commission Implementing Regulation (EU) 2017/649 imposing a definitive anti-dumping duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People’s Republic of China (OJ L 146, 9.6.2017, p. 17).
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Report – Chapter 14, p. 358: 51 % private and 49 % SOEs in terms of production and 44 % SOEs and 56 % private companies in terms of capacity.
Available at:
www.gov.cn/zhengce/content/2016-02/04/content_5039353.htm (last viewed 6 May 2021);
https://policycn.com/policy_ticker/higher-expectations-for-large-scale-steel-enterprise/?iframe=1&secret=c8uthafuthefra4e (last viewed 6 May 2021), and
www.xinhuanet.com/english/2019-04/23/c_138001574.htm (last viewed 6 May 2021).
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As was the case of the merger between the private company Rizhao and the SOE Shandong Iron and Steel in 2009. See Beijing steel report, p. 58, and the acquired majority stake of China Baowu Steel Group in Magang Steel in June 2019, see https://www.ft.com/content/a7c93fae-85bc-11e9-a028-86cea8523dc2 (last viewed 6 May 2021).
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See the group’s web, available at: http://www.baowugroup.com/about/board_of_directors (accessed on 28 March 2022).
See the company’s web, available at: https://www.baosteel.com/about/manager (accessed on 28 March 2022).
http://www.baowugroup.com/party_building/overview
Ibidem.
See Articles of Association of Baosteel, Article 133.4:
http://static.sse.com.cn//disclosure/listedinfo/announcement/c/2021-01-08/600019_20210108_8.pdf (last viewed 6 May 2021).
Report, Part III, Chapter 14, p. 346 ff.
Introduction to The Plan for Adjusting and Upgrading the Steel Industry.
Report, Chapter 14, p. 347.
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 2 March 2020).
Report – Chapter 14, p. 349.
Report – Chapter 14, p. 352.
‘Guiding Catalogue for Industry Restructuring (2019 Version)’ approved by Decree of the National Development and Reform Commission of the People's Republic of China No. 29 of 27 August 2019 http://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf, last accessed on 11 April 2022.
Report – Chapter 14, pp. 375 – 376.
See Commission Implementing Regulation (EU) 2021/635, recitals 134-135 and Commission Implementing Regulation (EU) 2020/508, recitals 143-144.
The full list available under the following link:
https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fkjt.hebei.gov.cn%2Fwww%2Fxwzx15%2Ftzgg35%2Fsttz15%2F227382%2F2020102009523655218.doc&wdOrigin=BROWSELINK
World Bank Open Data – Upper Middle Income, https://data.worldbank.org/income-level/upper-middle-income
https://ilostat.ilo.org/
http://www.edp.com.br/distribuicao-es/saiba-mais/informativos/tarifas-aplicadas-a-clientes-atendidos-em-alta-e-media-tensao-(grupo-a)
https://www.comgas.com.br/tarifas/historico-de-tarifas/
http://site.sabesp.com.br/site/interna/Default.aspx?secaoId=183
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). Article 2(7) of the basic Regulation considers that domestic prices in those countries cannot be used for the purpose of determining normal value and, in any event, such import data was negligible.
Commission implementing Regulation (EU) 2022/58 of 14 January 2022 imposing a definitive anti-dumping duty on imports of certain grain-oriented flat-rolled products of silicon-electrical steel originating in the People’s Republic of China, Japan, the Republic of Korea, the Russian Federation and the United States of America following an expiry review (OJ L 10, 17.1.2022, p. 17).
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Commission Decision in Case M.8713 – Tata steel/ThyssenKrupp/JV, 11 June 2019, recitals 384, 388 and 390.
The Paris Agreement is an agreement within the United Nations Framework Convention on Climate Change.
Anti-dumping Complaint of 12 August 2021, par. 32.
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