Commission Implementing Regulation (EU) 2022/1924 of 10 October 2022 imposing a definitive anti-dumping duty on imports of sodium cyclamate originating in the People’s Republic of China and Indonesia following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council

11.10.2022	EN	Official Journal of the European Union	L 264/12

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union ¹ (‘the basic Regulation’), and in particular Article 11(2) thereof,

Whereas:

1. PROCEDURE

1.1.   Previous investigations and measures in force

• (1) On 19 December 2002, following a complaint logged by the Union industry, the European Commission (‘the Commission’) initiated an anti-dumping proceeding concerning imports of sodium cyclamate originating in the People’s Republic of China (‘the PRC’ or ‘China’) and Indonesia (‘the original investigation’) ². By Regulation (EC) No 435/2004 ³, the Council imposed anti-dumping duties on imports of sodium cyclamate, originating in the PRC and Indonesia (‘the original measures’).

• (2) The original measures were subsequently subject to two expiry reviews ⁴ pursuant to Article 11(2) of the basic Regulation (‘the previous expiry reviews’) and to a partial interim review ⁵ pursuant to Article 11(3) of the basic Regulation.

• (3) The original measures applied to all imports of sodium cyclamate originating in the PRC and Indonesia, with the exception of imports of sodium cyclamate produced by Chinese exporting producers Fang Da Food Additive (Shen Zhen) Limited and Fang Da Food Additive (Yang Quan) Limited (the companies belong to the same group and are further referred to as ‘Fang Da’). A zero duty rate was originally determined for these companies as no dumping was found ⁶.

• (4) In line with the WTO Appellate Body report in case Mexico – Definitive Anti-dumping Measures on Beef and Rice ⁷, Fang Da was not examined in the previous expiry reviews of the measures as imposed by Regulation (EC) No 435/2004 and was not subject to the measures in force following these reviews.

• (5) On 12 August 2015, following a complaint lodged by the Union industry, the Commission initiated an anti-dumping investigation concerning imports into the Union of sodium cyclamate originating in the PRC, limited to the Fang Da group ⁸. By Regulation (EU) 2016/1159 ⁹, the Commission imposed anti-dumping duties on imports of sodium cyclamate originating in the PRC and produced by Fang Da.

• (6) As a result, the rate of the duty applicable for Indonesia ranged from 0,24 EUR/kg to 0,27 EUR/kg and for the PRC from 0,23 EUR/kg to 1,17 EUR/kg (‘the measures in force’).

1.2.   Request for an expiry review

• (7) Following the publication of a notice of impending expiry ¹⁰ the Commission received a request for a review pursuant to Article 11(2) of the basic Regulation.

• (8) The request for a review was lodged on 14 April 2021 by Productos Aditivos S.A. (‘the applicant’), the sole manufacturer of sodium cyclamate in the Union and thus representing 100 % of the total Union production of sodium cyclamate. The request for the review was based on the grounds that the expiry of the measures would be likely to result in continuation of dumping from the PRC and recurrence of dumping from Indonesia as well as continuation of injury to the Union industry ¹¹ caused by imports from the PRC and likelihood of recurrence of injury from Indonesia.

• (9) The applicant requests the expiry review of the measures imposed under both, Regulation (EU) 2016/1159 and Regulation (EU) 2016/1160 ¹².

1.3.   Initiation of an expiry review

• (10) Having determined, after consulting the Committee established by Article 15(1) of the basic Regulation, that sufficient evidence existed for the initiation of the expiry review, on 16 July 2021 the Commission initiated the expiry review with regard to imports into the Union of sodium cyclamate originating in the PRC and Indonesia (‘the countries concerned’) on the basis of Article 11(2) of the basic Regulation. It published a Notice of Initiation in the Official Journal of the European Union ¹³ (‘the Notice of Initiation’).

1.4.   Review investigation period and period considered

• (11) The investigation of continuation or recurrence of dumping covered the period from 1 July 2020 to 30 June 2021 (‘review investigation period’ or ‘RIP’). The examination of trends relevant for the assessment of the likelihood of a continuation or recurrence of injury covered the period from 1 January 2018 to the end of the review investigation period (‘the period considered’).

1.5.   Interested parties

• (12) In the Notice of Initiation, interested parties were invited to contact the Commission in order to participate in the investigation. In addition, the Commission specifically informed the applicant, the known producers in the countries concerned and the authorities of the countries concerned, known importers and users about the initiation of the expiry review and invited them to participate.

• (13) Interested parties had an opportunity to comment on the initiation of the expiry review and to request a hearing with the Commission and/or the Hearing Officer in trade proceedings. Parties did not request a hearing.

1.6.   Comments on initiation

• (14) The Commission received comments on initiation from the Government of Indonesia (‘GOI’). The GOI claimed that as the anti-dumping duties have been in force since 2004, any injury caused by the imports of the product under review has been fully remedied. Furthermore, it was stated that in case the Union industry was still injured, other factors than imports of the product under review injured the Union industry, including self-inflicted injury, such as mismanagement or consumer preference, which could determine users to prefer imported rather than domestic product and the Commission should investigate these factors.

• (15) The Commission notes that the GOI did not submit any evidence in support of its claim and therefore it was rejected as being unsubstantiated. Thus, the Commission considered that the request provided sufficient evidence that the expiry of the measures would likely result in a continuation and recurrence of dumping and continuation and recurrence of injury, thereby satisfying the requirements set out in Article 11(2) of the basic Regulation. Furthermore, the claims put forward by the GOI, whilst unsubstantiated, were examined in detail in the course of the investigation and are further addressed below.

1.7.   Sampling

• (16) In the Notice of Initiation, the Commission stated that it might sample the interested parties in accordance with Article 17 of the basic Regulation.

1.7.1.   Sampling of importers

• (17) To decide whether sampling was necessary and, if so, to select a sample, the Commission asked unrelated importers to provide the information specified in the Notice of Initiation.

• (18) Since only one unrelated importer came forward with the requested information, it was not necessary to sample unrelated importers.

1.7.2.   Sampling of exporting producers in the countries concerned

• (19) To decide whether sampling was necessary and, if so, to select a sample, the Commission asked all known exporting producers in the PRC and Indonesia to provide the information specified in the Notice of Initiation. In addition, the Commission asked the Missions of the PRC and Indonesia to the European Union respectively to identify and/or contact other exporting producers, if any, that could be interested in participating in the investigation.

• (20) None of the exporting producers in the countries concerned provided the requested information and agreed to be included in the sample.

1.8.   Replies to the questionnaire

• (21) The Commission sent a questionnaire concerning the existence of significant distortions in the PRC, within the meaning of Article 2(6a)(b) of the basic Regulation, to the Government of the PRC (‘GOC’).

• (22) The Commission sent links to the questionnaires to the sole Union producer and the unrelated importer that provided the information requested in the Notice of Initiation. The same questionnaires had also been made available online ¹⁴ on the day of initiation.

• (23) Questionnaire replies were received from the sole Union producer, one unrelated importer and two Union users.

1.9.   Verification

• (24) The Commission sought and verified all the information it deemed necessary for the determination of likelihood of continuation and recurrence of dumping and injury and of the Union interest. Verification visits, pursuant to Article 16 of the basic Regulation, were carried out at the premises of the following companies:

Union producer

• — Productos Aditivos S.A., Montcada i Reixac, Spain.

2. PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT

2.1.   Product under review

• (25) The product under review is the same as in the original investigation and previous expiry reviews, namely sodium cyclamate, currently falling under CN code ex 2929 90 00 (TARIC code 2929900010) (‘the product under review’).

• (26) Sodium cyclamate is a commodity product used as a food additive and is widely used as a sweetener by the food industry, as well as by the producers of low-caloric and dietetic table-top sweeteners. Small volumes are also used by the pharmaceutical industry.

• (27) Sodium cyclamate is a chemically pure substance. However, as is the case for any pure chemical, it may contain a small proportion of impurities in amounts of mg/kg of the product. The content of the impurities, determined by the Union legislation, defines the quality of sodium cyclamate. Sodium cyclamate can be found in two different forms: hydrated (HC), with 15 % of moisture; and anhydrous (AC), with a content of up to 1 % of moisture. These two forms of sodium cyclamate have the same main characteristics and uses; they only vary in their degree of sweetness; the HC type is less sweet due to the water content. Prices vary due to the same reason. The AC type is more expensive than the HC form. Both forms should be therefore considered as one product for the purposes of this proceeding.

2.2.   Product concerned

• (28) Product concerned by this investigation is the product under review originating in the PRC and Indonesia.

2.3.   Like product

• (29) Similarly to what was established in the original investigation, as well as in the previous expiry reviews, this expiry review investigation confirmed that the following products have the same basic physical and chemical characteristics as well as the same basic uses:

• — the product concerned;

• — the product produced and sold on the domestic market of the countries concerned; and

• — the product produced and sold in the Union by the Union industry.

• (30) These products are therefore considered to be like products within the meaning of Article 1(4) of the basic Regulation.

3. DUMPING

3.1.   The PRC

3.1.1.   Preliminary remarks

• (31) In accordance with Article 11(2) of the basic Regulation, the Commission examined whether the expiry of the measures in force would be likely to lead to a continuation or recurrence of dumping from the PRC.

• (32) During the review investigation period, imports of sodium cyclamate from the PRC continued at high levels. According to Comext ¹⁵, imports of sodium cyclamate from the PRC accounted for [51 % – 66 %] of the Union market in the review investigation period compared to between 38 % and 45 % on the Union market during the previous expiry review, while for Indonesia between 0 % and 2 % of the Union market in the review investigation period compared to 0 % and 1 % of the Union market during the previous expiry review. In absolute terms, the volumes of dumped imports from the PRC (excluding the imports from the exporter Fang Da) and Indonesia were at similar levels in the current expiry review as compared to the previous expiry review.

• (33) As mentioned in recital 23, none of the exporters/producers from the PRC cooperated in the investigation. Therefore, on 31 August 2021 the Commission informed the authorities of the PRC that due to the absence of cooperation, the Commission may apply Article 18 of the basic Regulation concerning the findings with regard to the PRC. The Commission did not receive any comments or requests for an intervention of the Hearing Officer in this regard.

• (34) Consequently, in accordance with Article 18 of the basic Regulation, the findings in relation to the likelihood of continuation or recurrence of dumping from the PRC were based on facts available, in particular information in the request for review, information obtained from cooperating parties in the course of the investigation (namely, the applicant) and information from other publicly available sources, in particular the Global Trade Atlas (‘GTA’) ¹⁶.

3.1.2.   Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of sodium cyclamate originating in the PRC

• (35) Given the sufficient evidence available at the initiation of the investigation tending to show, with regard to the PRC, the existence of significant distortions within the meaning of point (b) of Article 2(6a) of the basic Regulation, the Commission initiated the investigation on the basis of Article 2(6a) of the basic Regulation.

• (36) In order to obtain information it deemed necessary for its investigation with regard to the alleged significant distortions, the Commission sent a questionnaire to the GOC. In addition, in point 5.3.2 of the Notice of Initiation, the Commission invited all interested parties to make their views known, submit information and provide supporting evidence regarding the application of Article 2(6a) of the basic Regulation within 37 days of the date of publication of the Notice of Initiation in the Official Journal of the European Union.

• (37) No questionnaire reply was received from the GOC and no submission on the application of Article 2(6a) of the basic Regulation was received within the deadline. Subsequently, on 10 June 2022 the Commission informed the GOC that it would use facts available within the meaning of Article 18 of the basic Regulation for the determination of the existence of the significant distortions in the PRC.

• (38) In point 5.3.2 of the Notice of Initiation, the Commission also specified that, in view of the evidence available, Thailand could be a possible appropriate representative country pursuant to Article 2(6a)(a) of the basic Regulation for the purpose of determining the normal value based on undistorted prices or benchmarks. The Commission further stated that it would examine other possibly appropriate countries in accordance with the criteria set out in first indent of Article 2(6a)(a) of the basic Regulation.

• (39) On 8 March 2022, the Commission informed by a note (‘the First Note’) interested parties on the relevant sources it intended to use for the determination of the normal value. In that note, the Commission provided a list of all factors of production such as raw materials, labour and energy used in the production of sodium cyclamate. In addition, based on the criteria guiding the choice of undistorted prices or benchmarks, the Commission identified Argentina, Malaysia and Thailand as possible appropriate representative countries. The Commission received no comments on the First Note.

• (40) On 5 May 2022, the Commission informed by a second note (‘the Second Note’) interested parties on the relevant sources it intended to use for the determination of the normal value. In the Second note, the Commission identified Malaysia as the appropriate representative country and it also informed interested parties that it would establish selling, general and administrative costs (‘SG&A’) and profits based on data of the company Ajinomoto (Malaysia) Berhad (‘Ajinomoto Malaysia’), a manufacturer of food, seasoning and synthetic sweeteners in Malaysia. No comments were received.

3.1.3.   Normal value

• (41) According to Article 2(1) of the basic Regulation, ‘the normal value shall normally be based on the prices paid or payable, in the ordinary course of trade, by independent customers in the exporting country’.

• (42) However, according to Article 2(6a)(a) of the basic Regulation, ‘in case it is determined […] that it is not appropriate to use domestic prices and costs in the exporting country due to the existence in that country of significant distortions within the meaning of point (b), the normal value shall be constructed exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks’, and ‘shall include an undistorted and reasonable amount of administrative, selling and general costs and for profits’.

• (43) As further explained below, the Commission concluded in the present investigation that, based on the evidence available, and in view of the lack of cooperation of the GOC and the Chinese producers, the application of Article 2(6a) of the basic Regulation was appropriate.

3.1.3.1.   Existence of significant distortions

• (44) In the recent investigation concerning acesulfame potassium ¹⁷ originating in the PRC, the Commission found that significant distortions in the sense of Article 2(6a)(b) of the basic Regulation were present in the chemical and petrochemical sectors in the PRC. The Commission concluded in that investigation that, based on the evidence available, the application of Article 2(6a) of the basic Regulation was also appropriate.

• (45) In that investigation, the Commission found that there is substantial government intervention in the PRC resulting in a distortion of the effective allocation of resources in line with market principles ¹⁸.

• (46) In particular, in the acesulfame potassium investigation the Commission concluded that a substantial degree of ownership by the GOC persisted in the sense of Article 2(6a)(b), first indent of the basic Regulation ¹⁹.

• (47) Furthermore, the Commission established that the GOC was also in a position to interfere with prices and costs through State presence in firms in the sense of Article 2(6a)(b), second indent of the basic Regulation ²⁰.

• (48) The Commission further found that the State’s presence and intervention in the financial markets, as well as in the provision of raw materials and inputs, have an additional distorting effect on the market. The system of planning in the PRC also results in resources being concentrated in sectors designated as strategic or otherwise politically important by the GOC, rather than being allocated in line with market forces ²¹.

• (49) Moreover, the Commission concluded that the Chinese bankruptcy and property laws do not work properly in the sense of Article 2(6a)(b), fourth indent of the basic Regulation, thus generating distortions in particular when maintaining insolvent firms afloat and when allocating land use rights in the PRC ²².

• (50) In the same vein, the Commission found distortions of wage costs in the chemical sector in the sense of Article 2(6a)(b), fifth indent of the basic Regulation ²³, as well as distortions in the financial markets in the sense of Article 2(6a)(b), sixth indent of the basic Regulation, in particular concerning access to capital for companies in the PRC ²⁴.

• (51) As in previous investigations concerning the chemical sector in the PRC, the Commission examined in the present investigation whether it was appropriate or not to use domestic prices and costs in the PRC, due to the existence of significant distortions within the meaning of point (b) of Article 2(6a) of the basic Regulation. That analysis covered the examination of the substantial government interventions in the PRC’s economy in general, but also the specific market situation in the relevant sector including the product under review.

• (52) The Commission carried out the analysis on the basis of the evidence available on the file, including the evidence contained in the request, as well as in the Commission’s report on significant distortions in China ²⁵ (‘Report’), which relies on publicly available sources.

• (53) The request in this case referred to the Report, in particular to Chapter 16 describing the Chinese chemical sector.

• (54) The Commission further supplemented the information contained in the request with its own research on the various criteria relevant to confirm the existence of significant distortions in the PRC as also found by its previous investigations in this respect.

• (55) In the chemical sector, a significant degree of ownership and control by the GOC persists ²⁶ in the sense of Article 2(6a)(b), first indent of the basic Regulation. Since there was no cooperation from any Chinese exporters of the product under review, the exact ratio of private and State-owned sodium cyclamate producers could not be further determined.

• (56) However, the Commission established that a number of Chinese sodium cyclamate producers are state-owned, such as the Tianjin North Food Co. Ltd., which is 100 % controlled by the state-owned Tianjin Bohai Light Industry Investment Group Co ²⁷.

• (57) As to the GOC being in a position to interfere with prices and costs through State presence in firms in the sense of Article 2(6a)(b), second indent of the basic Regulation, during the investigation the Commission established the existence of personal connections between the Chinese Communist Party (‘CCP’) and companies manufacturing the product under review. To provide an example, in the abovementioned Tianjin North Food Co. Ltd., the Chairman of the Board of Directors simultaneously holds the position of the Secretary of the Company’s Party organization ²⁸.

• (58) Both public and privately owned enterprises in the chemical sector are also subject to policy supervision and guidance. As in any other sector in the PRC, these producers are constrained to host Party-building activities and maintain a close affiliation to the CCP and its ideology. The following examples illustrate the trend of an increasing level of intervention by the GOC also in the sodium cyclamate sector.

• (59) First, the investigation revealed Party-building activities in the Tianjin Bohai Light Industry Group. The company’s website, referring to an April 2021 meeting of the Group’s Disciplinary Committee, states that ‘the Group Company’s Disciplinary Committee organized a meeting of the coordination group for the building of Party style, clean government and anti-corruption work, to promote feedback from central inspection and rectification of, to thoroughly implement the key tasks of the Municipal Disciplinary Committee and of the Disciplinary Inspection and Supervision Team of the Municipal SASAC Party Committee in 2021 and to listen to the relevant responsible comrades of the Group Company’s Strategic Development Department, Financial Management Department, Operations Management Department, and Compliance Management Department as regards the implementation of the mixed-ownership reform of state-owned enterprises’ ²⁹.

• (60) Allegiance to the CCP leadership is confirmed also by the following reference related to the celebrations of the Party’s 100^th anniversary within the Group in July 2021: ‘Everyone expressed that it is necessary to unswervingly listen to the Party’s words, be grateful to the Party’s, and follow the Party. "I listened to the important speech of the General Secretary at the celebration meeting, and I was very excited. I will always pass on the great spirit of the founding the Party, implement the original intention, shoulder the mission bravely, so as to bring my due contribution to promoting the high-quality development of the Group” said Gao Lei, an outstanding Communist Party member of Boqing Group and deputy director of the Group’s Compliance Management Department.’ ³⁰

• (61) CCP interferences are not limited to state-owned companies. The investigation has shown that the Party’s supervising role and policy guidance role extends also to private companies. An example provides an article published by the administration of the Jianan district ³¹, concerning the National Xuchang Economic and Technological Development Zone [^ntr32-L_2022264EN.01001201-E0032]: ‘The Secretary of the Municipal Party Committee, went to the National Xuchang Economic and Technological Development Zone to investigate the construction of key projects […] [He] inquired in detail about orders, parts procurement, etc. […] At the project site of Ruida Food Additives Co., Ltd. with an annual output of 15 000 tons of sodium cyclamate, investors from Tianjin Pharmaceutical Group (SOE) repeatedly praised Xuchang for its good business environment. [The Secretary of the Municipal Party Committee] expressed the hope that Tianjin Pharmaceutical Group will strengthen its investment confidence and take Xuchang as the supporting point. […] As an advanced manufacturing agglomeration area and a regional economic growth pole, the National Xuchang Economic and Technological Development Zone must thoroughly implement Xi Jinping’s economic thought for a new era of socialist economic with Chinese characteristics, fully and accurately implement the new development concept, keep a clear head at all times, and enhance the sense of responsibility and crisis. Based on the new development pattern of "dual circulation", strengthen the planning of key industries and focus on enhancing the development potential.’ The direct reference to the privately owned sodium cyclamate producer Xuchang Ruida Food additives, 100 % owned by Ruida Bio-Technology ^33 34in the context of CCP’s industrial policies which the industrial zone is expected to follow aptly demonstrates the influence of the Party over the business conduct of individual economic operators, irrespective of ownership type.

• (62) Further, it was established that policies discriminating in favour of domestic producers or otherwise influencing the market in the sense of Article 2(6a)(b), third indent of the basic Regulation are in place in the sodium cyclamate sector. Food additives, such as the product under review, are considered essential for food safety policy and are accordingly reflected in the 13^th Five Years Plan on Food Technological Innovation ³⁵. Chemical synthetic sweeteners are further listed in the 2019 version of the Guiding Catalogue for industry structural adjustment ³⁶ and are therefore subject to the respective government policies in place.

• (63) The State interferes also in markets of inputs used for the production of sodium cyclamate, in particular the electricity markets. While electricity is one of the main inputs in the manufacture of sodium cyclamate, the prices of electricity are not market-based in the PRC and are also affected by significant distortions (through central price-setting, price differentiation and in direct power purchase practices), as established in the Report ³⁷.

• (64) While the energy market in China has undergone a number of changes and reforms, some prices relevant for the energy system are still not market-based. The government recognises that the prices are still largely controlled by the State: ‘The current electricity price management is still based on government prices. Price adjustments often lag behind changes in costs and it is difficult to timely and reasonably reflect the electricity usage costs […] An effective competitive mechanism for the sale of electricity has not yet been established, market transactions between electricity generation enterprises and users are limited and it is difficult to involve the decisive role of the market in the allocation of resources’ ³⁸.

• (65) This State-induced market weakness is at the origin of further attempts to manage the market, which is reflected in a number of subsequent administrative documents. For example, in November 2020, the NDRC released the Notice on promoting the signing of mid to long-term 2021 electricity contracts ³⁹.

• (66) The document instructs ‘the competent departments of local governments […] to strive to ensure that the contracted electricity volume is not lower than 80 % of the average volume over the past three years’, and with regard to pricing to ‘establish a deviation settlement mechanism […] in the local market regulations to deal with deviations between the contracted power volume and the actual implementation’ and to ‘[i]mprove the medium and long-term transaction price mechanism. All localities shall strictly implement the power transmission and distribution prices as approved by the government.’

• (67) The Notice contains also specific provisions on implementation, notably through the establishment of a tracking mechanism for the contract signing progress, or by strengthening contracts monitoring, disclosure and enforcement ⁴⁰.

• (68) The present investigation has not revealed any evidence that the discriminatory application or inadequate enforcement of bankruptcy and property laws according to Article 2(6a)(b), fourth indent of the basic Regulation in the chemical sector referred to above in recital 49 would not affect the manufacturers of the product under review.

• (69) The chemical sector is also affected by the distortions of wage costs in the sense of Article 2(6a)(b), fifth indent of the basic Regulation, as also referred to above in recital 50. Those distortion affect the sector both directly (when producing the product under review or the main inputs), as well as indirectly (when having access to capital or inputs from companies subject to the same labour system in the PRC).

• (70) Moreover, no evidence was submitted in the present investigation demonstrating that the chemical sector is not affected by the government intervention in the financial system in the sense of Article 2(6a)(b), sixth indent of the basic Regulation, as also referred to above in recital 50. Therefore, the substantial government intervention in the financial system leads to the market conditions being severely affected at all levels.

• (71) Finally, the Commission recalls that in order to produce the product under review, a number of inputs is needed. When the producers of the product under review purchase or contract for these inputs, the prices paid (and which are recorded as their costs) are exposed to the same systemic distortions mentioned before. For instance, suppliers of inputs employ labour that is subject to the distortions; they may borrow money that is subject to the distortions on the financial sector/capital allocation; and they are subject to the planning system that applies across all levels of government and sectors.

• (72) As a consequence, not only the domestic sales prices of the product under review are not appropriate for use within the meaning of Article 2(6a)(a) of the basic Regulation, but all the input costs (including raw materials, energy, land, financing, labour, etc.) are also affected because their price formation is affected by substantial government intervention, as described in Parts I and II of the Report.

• (73) Indeed, the government interventions described in relation to the allocation of capital, land, labour, energy and raw materials are present throughout the PRC. This means, for instance, that an input that in itself was produced in the PRC by combining a range of factors of production is exposed to significant distortions. The same applies for the input to the input and so forth.

• (74) No evidence or argument to the contrary has been submitted by the GOC or the producers in the present investigation.

• (75) In sum, the evidence available showed that prices or costs of the product under review, including the costs of raw materials, energy and labour, are not the result of free market forces because they are affected by substantial government intervention within the meaning of Article 2(6a)(b) of the basic Regulation as shown by the actual or potential impact of one or more of the relevant elements listed.

• (76) On that basis, and in the absence of any cooperation from the GOC, the Commission concluded that it is not appropriate to use domestic prices and costs to establish normal value in this case.

• (77) Consequently, the Commission proceeded to construct the normal value exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, that is, in this case, on the basis of corresponding costs of production and sale in an appropriate representative country, in accordance with Article 2(6a)(a) of the basic Regulation, as discussed in the following section.

3.1.3.2.   Representative country

3.1.3.2.1.   General remarks

• (78) The choice of the representative country was based on the following criteria pursuant to Article 2(6a) of the basic Regulation:

• — A level of economic development similar to the PRC. For this purpose, the Commission used countries with a gross national income per capita similar to the PRC on the basis of the database of the World Bank ⁴¹.

• — Production of the product under review in that country ⁴².

• — Availability of relevant public data in the representative country.

• — Where there is more than one possible representative country, preference should be given, where appropriate, to the country with an adequate level of social and environmental protection.

• (79) As explained in recitals 39 and 40, the Commission issued two notes for the file on the sources for the determination of the normal value: the first note on factors of production of 8 March 2022 and the second note on the factors of production of 5 May 2022. These notes described the facts and evidence underlying the relevant criteria, and addressed the comments received by the parties on these elements and on the relevant sources. In the Second Note, the Commission informed interested parties of its intention to consider Malaysia as an appropriate representative country in the present case, if the existence of significant distortions pursuant to Article 2(6a) of the basic Regulation would be confirmed.

3.1.3.2.2.   A level of economic development similar to the PRC

• (80) In the First Note on factors of production, the Commission explained that sodium cyclamate did not appear to be produced in any of the countries with a level of economic development similar to the PRC in accordance with the criteria mentioned in recital 78. It was only produced in the PRC, Indonesia and in the EU.

• (81) As a result, the Commission considered whether there was production of a product in the same general category and/or sector as the product under review. The Commission consequently indicated that it would consider production of sweeteners, flavourings and food additives, which were products in the same general category as sodium cyclamate, to establish an appropriate representative country for the application of Article 2(6a) of the basic Regulation.

• (82) In the First Note on factors of production, the Commission identified Argentina, Malaysia and Thailand as countries with a similar level of economic development as the PRC according to the World Bank, i.e. they are all classified by the World Bank as ‘upper-middle income’ countries on a gross national income basis where production of products in the same general category was known to take place.

3.1.3.2.3.   Availability of relevant public data in the representative country

• (83) In the First Note the Commission identified one company in Argentina, one company in Malaysia and four companies in Thailand for which financial information for products in the same general category as the product under review was readily available in the Dun and Bradstreet database ⁴³ or company’s website.

• (84) With regard to Argentina, the Commission found readily available financial information for one producer of products in the same general category as the product under review, Laboratorios Argentinos Farmesa, of products in the same general category as sodium cyclamate, in the Dun and Bradstreet database for 2020 but did not find published financial statements.

• (85) With regard to Malaysia, the Commission found readily available published financial statements for one producer of products in the same general category as the product under review, Ajinomoto Malaysia, for the financial years ending on 31 March 2018, 2019, 2020 and 2021 ⁴⁴ as well as readily available financial data for that company in the Dun and Bradstreet database.

• (86) With regard to Thailand, the Commission found readily available financial data for three producers of products in the same general category, as the product under review, in the Dun and Bradstreet database for one of them the financial year ended on 31 December 2020 and for the other two the financial year ended on 31 March 2021. Furthermore, the Commission also found readily available data for financial year ending on 31 March 2021 for Ajinomoto Company (Thailand) Ltd. However, the financial information of Ajinomoto Company (Thailand) Ltd was incorporated in the annual report of the Ajinomoto Group without any separate declaration for the Ajinomoto Company (Thailand). The data for the other three Thai companies was not used as their data either did not cover much of the RIP and or did not make its full audited accounts available on their websites.

• (87) In view of the above, the Commission considers that the financial information available for the Malaysian company Ajinomoto Malaysia would be the most appropriate source to establish the SG&A and profits for the construction of the normal value. The audited financial statements overlapping the review period by 9 months are readily available for Ajinomoto Malaysia and allows a reliable calculation of the SGA and profit margin for the construction of the normal value. Furthermore, Ajinomoto Malaysia is a large company and has significant production of products in the same general category as the product under review. On the other hand, as explained above, the information for Ajinomoto Company (Thailand) was consolidated at group level without any separate declaration of the financial data for Ajinomoto Thailand.

• (88) Therefore, the Commission concluded that the financial data of Ajinomoto Malaysia, which included flavourings and food additives, was appropriate for the purpose of this review.

• (89) The Commission also analysed the imports of the main factors of production into Argentina, Malaysia and Thailand. It was noted that for certain factors of production of sodium cyclamate, significant percentage of the imports into Argentina, Malaysia and Thailand of raw materials originated from China. Chinese quantities were significant for activated carbon for all three countries. For sulfamic acid, the quantities were significant for Argentina and Thailand. For cyclohexylamine quantities were significant for Malaysia and Thailand. In addition to this, quantities are significant for hydrochloric acid for Thailand. This was also the case for other possible representative countries such as Brazil, the Philippines, Peru, Russia, Kazakhstan, Turkey and South Africa for which the Commission was not able to find producers of similar products with readily available financial information. Mexico and Colombia reported reasonable volume of imports of these factors of production from other countries. However, the Commission was not able to find producers of similar products with readily available financial information in these countries.

• (90) Therefore, while the high volume of imports from the PRC for the factors of production mentioned above could have a distorting effect on the price of the imports from other countries, considering that the current investigation is an expiry review pursuant to Article 11(2) on the basic Regulation which does not require a precise dumping margin calculation, but rather to establish the likelihood of continuation or recurrence of dumping, the Commission considered that in this case it can use the import price from other countries following the methodology stated in recital 100 despite the high volume of imports from the PRC.

• (91) In the light of the above considerations, the Commission informed the interested parties with the Second Note that it intends to use Malaysia as an appropriate representative country and the Ajinomoto (Malaysia) Berhad, in accordance with Article 2(6a)(a), first ident of the basic Regulation in order to source undistorted prices or benchmarks for the calculation of normal value.

• (92) Interested parties were invited to comment on the appropriateness of Malaysia as a representative country and of Ajinomoto (Malaysia) Berhad as producer in the representative country. No comments were received.

3.1.3.2.4.   Level of social and environmental protection

• (93) Having established that Malaysia was the appropriate representative country, on the basis of all of the above elements, there was no need to carry out an assessment of the level of social and environmental protection in accordance with the last sentence of Article 2(6a)(a) first indent of the basic Regulation.

3.1.3.2.5.   Conclusion

• (94) In view of the above analysis, Malaysia met the criteria laid down in Article 2(6a)(a), first indent of the basic Regulation in order to be considered as an appropriate representative country.

3.1.3.3.   Sources used to establish undistorted costs

• (95) In the First Note, the Commission listed the factors of production such as materials, energy and labour used in the production of the product under review by the exporting producers and invited the interested parties to comment and propose publicly available information on undistorted values for each of the factors of production mentioned in that note.

• (96) Subsequently, in the Second Note, the Commission stated that, in order to construct the normal value in accordance with Article 2(6a)(a) of the basic Regulation, it would use GTA to establish the undistorted cost of most of the factors of production, notably the raw materials. In addition, the Commission stated that it would use the Institute of Labour Market Information and Analysis (ILMIA) ⁴⁵ for establishing undistorted costs of labour, electricity price information published by the electricity company Tenaga Nasional Berhad (TNB) in its website ⁴⁶ for electricity costs. For gas price statistics it would use data published by the Malaysian Energy Commission (Suruhanjaya Tenaga) in its website ⁴⁷ in its regular press releases.

3.1.3.3.1.   Undistorted costs and benchmarks

3.1.3.3.1.1.   Factors of production

• (97) Considering all the information based on the request and subsequent information submitted by the applicant and collected during the verification visit, the following factors of production and their sources have been identified in order to determine the normal value in accordance with Article 2(6a)(a) of the basic Regulation:

Table 1

Factors of production of sodium cyclamate

Factor of Production	Commodity Code in Malaysia	Undistorted value	Unit of measurement
Raw materials	Raw materials	Raw materials	Raw materials
Hydrochloric Acid	28061000 28061010 28061020	3,29 CNY	kg
Sulfamic Acid	28111920	7,09 CNY	kg
Cyclohexylamine	29213000	26,97 CNY	kg
Sodium Hydroxide	28151200	1,15 CNY	kg
Activated Charcoal (Carbon)	38021000	18,89 CNY	kg
Labour	Labour	Labour	Labour
Direct and indirect labour in the manufacturing sector	[N/A]	53,6 CNY	Per hours
Energy	Energy	Energy	Energy
Electricity	[N/A]	0,54 CNY	kWh electricity
Gas	[N/A]	0,13 CNY	kWh gas

• (98) The Commission also included a value for manufacturing overhead costs in order to cover costs not included in the factors of production referred to above. The methodology to establish this amount is duly explained in recital 106.

Raw materials

• (99) The cost structure of sodium cyclamate is mainly determined by the costs of the raw materials, i.e. various chemicals, as well as energy.

• (100) In order to establish the undistorted price of raw materials as delivered at the gate of a representative country producer, the Commission used as a basis the weighted average import price to the representative country as reported in the GTA to which import duties were added. An import price in the representative country was determined as a weighted average of unit prices of imports from all third countries excluding the PRC and countries which are not members of the WTO, listed in Annex 1 of Regulation (EU) 2015/755 of the European Parliament and the Council ⁴⁸. The Commission decided to exclude imports from the PRC into the representative country as it concluded in recitals 44-77 that it is not appropriate to use domestic prices and costs in the PRC due to the existence of significant distortions in accordance with Article 2(6a)(b) of the basic Regulation. Given that there is no evidence showing that the same distortions do not equally affect products intended for export, the Commission considered that the same distortions affected export prices. After excluding the PRC as well as non-WTO Members, the imports from other third countries remained representative.

• (101) Normally, domestic transport prices should also be added to these import prices. However, considering the finding in recital 114 as well as the nature of this expiry review investigation, which is focused on finding whether dumping continued during the review investigation period or could reoccur, rather than finding its exact magnitude, the Commission decided that adjustments for domestic transport were unnecessary. Such adjustments would only result in increasing the normal value and hence of the dumping margin.

Labour

• (102) The Commission used the statistics published by the Institute of Labour Market Information and Analysis (ILMIA) ⁴⁹ in Malaysia to determine the wages in Malaysia by using the information for average labour cost per employee in the manufacturing sector for the investigation period.

Electricity

• (103) Prices for electricity for companies (industrial users) in Malaysia are published by the electricity company Tenaga Nasional Berhad (TNB) on its website ⁵⁰. The most recent rates were published on 1 January 2014 and were still applicable in the RIP. In order to establish the electricity cost per kWh, the Commission used the rate of tariff E1 applicable to medium voltage general industrial tariff, which was considered to be appropriate for the sodium cyclamate industry.

Natural gas

• (104) The price of natural gas for companies (industrial users) in Malaysia is published by Malaysian Energy Commission (Suruhanjaya Tenaga) on its website ⁵¹ in its regular press releases. The Commission used the data of the average industrial gas prices converted to kWh covering the RIP.

3.1.3.3.1.2.   Manufacturing overhead costs, SG&A, profits and depreciation

• (105) According to Article 2(6a)(a) of the basic Regulation, ‘the constructed normal value shall include an undistorted and reasonable amount for administrative, selling and general costs and for profits’. In addition, a value for manufacturing overhead costs needs to be established to cover costs not included in the factors of production referred to above.

• (106) In order to establish an undistorted value of the manufacturing overheads and given the absence of cooperation from the Chinese producers, the Commission used facts available in accordance with Article 18 of the basic Regulation. Therefore, based on the data included in the review request, the Commission established the ratio of manufacturing overheads to the total manufacturing costs. This percentage was then applied to the undistorted value of the cost of manufacturing to obtain the undistorted value of manufacturing overheads.

• (107) For establishing an undistorted and reasonable amount for SG&A and profit, the Commission relied on the financial year data ending on 31 March 2020 for Ajinomoto Malaysia. The Commission made this data available to interested parties in the Second Note.

3.1.3.4.   Calculation of the normal value

• (108) On the basis of the above, the Commission constructed the normal value on an ex-works basis in accordance with Article 2(6a)(a) of the basic Regulation.

• (109) First, the Commission established the undistorted manufacturing costs. In the absence of cooperation by the exporting producers, the Commission relied on the information provided by the applicant in the review request on the usage of each factor (materials and labour) for the production of sodium cyclamate. These consumption ratios provided by the applicant were verified during the verification. The Commission multiplied the consumption ratios by the undistorted costs per unit observed in the representative country Malaysia.

• (110) Once the undistorted manufacturing costs were established, the Commission added the manufacturing overheads, SG&A and profit. Manufacturing overheads were determined based on data provided by the applicant in the review request. SG&A and profit were determined based on the financial statements of Ajinomoto Malaysia) for the year ended March 2021 as reported in the company’s audited accounts ⁵². The Commission added the following items to the undistorted costs of manufacturing:

• — Manufacturing overheads, which accounted in total [2 % – 4 %] of the direct costs of manufacturing,

• — SG&A, which accounted for 34,7 % of the Costs of Goods Sold (‘COGS’) of Ajinomoto Malaysia, and

• — Profits, which amounted to 19,8 % of the COGS as achieved by Ajinomoto Malaysia.

• (111) On that basis, the Commission constructed the normal value per product type on an ex-works basis in accordance with Article 2(6a)(a) of the basic Regulation.

3.1.4.   Export price

• (112) In the absence of cooperation by Chinese producers, the export price was determined based on CIF Comext database (Eurostat) adjusted to ex-works level. Thus, the CIF price was reduced by the (sea) freight, insurance cost and domestic transport cost.

3.1.5.   Comparison

• (113) The Commission compared the constructed normal value in accordance with Article 2(6a)(a) of the basic Regulation with the export price as established above.

3.1.6.   Dumping margin

• (114) On this basis, the weighted average dumping margins expressed as a percentage of the CIF Union frontier price, duty unpaid, was higher than 100 %. It was therefore concluded that dumping continued during the review investigation period.

3.2.   Indonesia

3.2.1.   Preliminary remarks

• (115) During the review investigation period, imports of sodium cyclamate from Indonesia virtually disappeared and therefore this negligible volume could not form the basis for the findings of a continuation of dumping. The Commission analysed the likelihood of recurrence of dumping in the next section.

4. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING

4.1.   The PRC

• (116) Further to the finding of the existence of dumping during the review investigation period as stated in recital 114, the Commission investigated, in accordance with Article 11(2) of the basic Regulation, the likelihood of continuation of dumping should the measures be repealed with regard to imports from the PRC.

• (117) As a consequence of the non-cooperation of exporting producers/producers in the PRC, the Commission based its assessment on the facts available in accordance with Article 18 of the basic Regulation, namely on findings of the previous expiry review mentioned in recital 5, on information provided in the request for review, readily available information, and GTA. The following elements were analysed: the production capacity and spare capacity in the PRC, the attractiveness of the Union market, export prices to third country markets, and possible absorption capacity of third country markets.

4.1.1.   Production capacity and spare capacity in the PRC

• (118) In the absence of cooperation from the Chinese exporters/producers, the Commission had to resort to its own research, the data collected in the previous expiry reviews, data available in the request for the review and to the statistics. The Chinese production capacity has been maintained at 75 000-80 000 tonnes per year in the last 10 years ⁵³.

• (119) The Commission was not able to find readily available information regarding the demand in the PRC of sodium cyclamate. Based on GTA, Chinese exports to third countries amounted to around 23 000 tonnes per year during the review investigation period. The spare capacity of the cooperating exporting producer in the anti-dumping investigation carried out in 2016 ⁵⁴ was [5 % -15 %]. This is a conservative approach as it is unlikely that country-wide capacity utilisation would be this high. Based on this, in the absence of any other available information, even if Chinese capacity utilisation would be this high, the Commission considered that the Chinese spare capacity was [5 % – 15 %] or [3 750 – 12 000] which is [1,05 – 2,5] times higher than the total demand in the Union.

4.1.2.   Attractiveness of the Union market and export prices to third country markets

• (120) The attractiveness of the Union market for Chinese exports was apparent given their continuing and massive presence even with anti-dumping measures – reaching [51 % – 66 %] of the Union market share during the RIP as mentioned in table 3.

• (121) Furthermore, the Commission examined whether it is likely that Chinese exporting producers would increase even more their export sales to the Union at dumped prices should measures be allowed to lapse. Therefore, the Commission examined the price levels of the Chinese exporting producers to the Union as compared to other third country markets.

• (122) In the absence of cooperation, the Commission used GTA. It was found that the average sales price of the Union industry ([1 807 – 2 650] EUR/tonne) was higher than the average export price from the PRC to third countries during the review investigation period (1 373 EUR/tonne). Therefore, there would be an economic incentive for the Chinese exporting producers to shift exports from third countries to the Union, should the measures lapse, as the Union market is attractive. In such case the Chinese producers would be able to export to the Union at prices higher than those to other third country markets but still below the Union industry’s prices.

4.1.3.   Possible absorption capacity of third country markets

• (123) As already indicated in the Regulation (EU) 2016/1160, sodium cyclamate is prohibited for use in food, beverage and pharmaceutical products in a number of large third country markets, including United States. There were no indications in the file that point towards an expected growth of other third country markets for sodium cyclamate, nor was there any indication in the file of the size of the Chinese domestic market and the expected growth thereof.

• (124) Therefore, it is estimated that the absorption capacity of markets other than the Union market is rather low and hence, the Union would be an attractive market, should the measures be allowed to lapse.

4.1.4.   Conclusion on the likelihood of continuation of dumping

• (125) Based on the above-mentioned spare capacity in the PRC, the attractiveness of the Union market for the Chinese exporting producers as evidence by the third country export prices and the low absorption capacity of other markets, the Commission concluded that there is a strong likelihood that the expiry of the anti-dumping measures would result in an increase of dumped exports.

• (126) In view of its findings on the continuation of dumping during the RIP and on the likely development of exports should the measures lapse as explained in recital 125, the Commission concluded that there is a strong likelihood that the expiry of the anti-dumping measures on imports from the PRC would result in the continuation of dumping.

4.2.   Indonesia

• (127) The Commission investigated, in accordance with Article 11(2) of the basic Regulation, the likelihood of recurrence of dumping, should the measures be repealed. The following elements were analysed: the production capacity and spare capacity in Indonesia, attractiveness of the Union market and export prices to third country markets, as well as possible absorption capacity of third country markets.

• (128) As mentioned in recital 20, none of the producers from Indonesia cooperated in the investigation. Therefore, the Commission informed the authorities of Indonesia that due to the absence of cooperation, the Commission may apply Article 18 of the basic Regulation concerning the findings with regard to the exporting producers in Indonesia. The Commission did not receive any comments or requests for an intervention of the Hearing Officer in this regard.

• (129) Consequently, in accordance with Article 18 of the basic Regulation, the findings in relation to the likelihood of recurrence of dumping were based on facts available, including information in the request for the review, information obtained from cooperating parties in the course of the review investigation, import-export statistics and other readily available information.

4.2.1.   Production capacity and spare capacity in Indonesia

• (130) In the absence of cooperation from Indonesia, the Commission had to resort to the data collected in the previous expiry reviews, data available in the request for the review and GTA. Based on the information available for one Indonesian exporting producer, the Indonesian capacity was estimated in the second expiry review to be at least 10 000 tonnes ⁵⁵. According to the request for the review, production capacity in Indonesia remains the same. Based on GTA, it could be established that Indonesian exports to third countries amounted to around 2 500 tonnes during the review investigation period. On this basis, the free capacity of Indonesia for its domestic market and the Union market can be estimated at 7 500 tonnes. This estimate can be assumed to be conservative given that in the first expiry review, the total Indonesian capacity was estimated to be 18 000 tonnes in 2008.

• (131) As there is no data available regarding domestic sales by the Indonesian producers, the free (available) capacity that could be directed towards the Union market can only be roughly estimated. In the second expiry review, domestic sales by the Indonesian companies were estimated at 2 000 tonnes ⁵⁶, which on the current capacity estimate of the Indonesian producers would still leave a free capacity of 5 500 tonnes for the Union market. This would account for more than [115 % – 154 %] of the Union consumption during the review investigation period. Therefore, it can be concluded that there is a substantial spare capacity in Indonesia to increase sales to the Union market significantly in the event that the measures in force are allowed to expire.

4.2.2.   Attractiveness of the Union market and export prices to third country markets

• (132) Based on the questionnaire reply of the Union producer and the GTA statistics, the average sales price of the Union industry ([1 807 – 2 650] EUR/tonne) was higher than the average export price from Indonesia to third countries during the review investigation period (1 526 EUR/tonne). Therefore, there would be an economic incentive for the Indonesian exporting producers to shift exports from third countries to the Union, should the measures lapse. In such case they would be able to export to the Union at prices higher than those to other third country markets but still below the Union industry’s prices.

• (133) Furthermore, in order to have an indication of the likely prices to the Union in the absence of measures, the Commission also compared the Indonesian export price to third countries with the Indonesian normal value.

• (134) In the absence of cooperation from Indonesia, the Commission determined the normal value based on the information provided in the request for the expiry review and other readily available information. In the request, the normal value was constructed on the basis of the cost components of the Union producer such as raw materials, labour, energy and water, maintenance, depreciation and overheads. The total costs thus calculated were increased by a profit. The Commission adjusted the cost components for inflation between the period of reference used in the request for the review (i.e. 2020) and the review investigation period. In addition, the Commission adjusted raw material and labour costs based on readily available information.

• (135) In the absence of cooperation by exporting producers from Indonesia, the Commission used other information available to establish the export price. Indonesian export statistics available in GTA were used to establish export prices. The average export price to all third countries was used. The FOB price from the GTA was reduced by the domestic transport cost ⁵⁷ to adjust it to the ex-works level.

• (136) The Commission compared the constructed normal value and the export price on an ex-works basis.

• (137) On this basis, the price difference found as a percentage of the CIF frontier price, was 29,6 %, which was higher than the highest dumping margin established in the original investigation (18,1 %).

• (138) This suggest that if the measures lapse the dumping margin would likely be higher than in the original investigation.

4.2.3.   Possible absorption capacity of third country markets

• (139) As mentioned in recital 131, the estimated free capacity of sodium cyclamate in Indonesia is 5 500 tonnes, more than twice the total volume of exports from Indonesia to third countries during the review investigation period. Throughout the period considered export to third countries decreased by 25 % and there were no indications pointing towards an expected growth of third country markets for sodium cyclamate (nor was there any indication of the expected growth of the Indonesian domestic market). In this respect it should also be noted that, as mentioned in recital 123, sodium cyclamate is prohibited for use in several large third country markets. On this basis, it is considered that the absorption capacity of third country markets is rather low and hence, the Union would be an attractive market, should measures be repealed.

4.2.4.   Conclusion

• (140) In view of the assessment made in recitals 130 to 139, in particular the significant spare capacity of Indonesian exporters, the low absorption capacity of third country markets and high sales prices in the Union compared to third markets, the Commission concluded that dumped imports from Indonesia are likely to recur if the measures in force were allowed to lapse.

5. INJURY

5.1.   Definition of the Union industry and Union production

• (141) The like product was manufactured by one producer in the Union during the period considered. This producer constitutes the ‘Union industry’ within the meaning of Article 4(1) of the basic Regulation.

• (142) The total Union production during the review investigation period was established at [1 462 – 1 827] tonnes.

5.2.   Union consumption

• (143) Sodium cyclamate is produced only in the Union, the PRC and Indonesia. The Commission established the Union consumption on the basis of the Union industry’s sales volume on the Union market plus the volume of imports from the PRC and Indonesia, based on Eurostat.

• (144) Union consumption developed as follows:

Table 2

Union consumption (tonnes)

	2018	2019	2020	Review Investigation period
Total Union consumption	[3 629 – 4 838 ]	[3 564 – 4 752 ]	[4 001 – 5 335 ]	[3 583 – 4 778 ]
Index (FY2018 = 100)	100	98	110	99
Captive market	[22 – 29 ]	[23 – 30 ]	[13 – 17 ]	[16 – 22 ]
Index (FY2018 = 100)	100	104	59	76
Free market	[3 607 – 4 809 ]	[3 541 – 4 722 ]	[3 988 – 5 318 ]	[3 567 – 4 756 ]
Index (FY2018 = 100)	100	98	111	99
Captive consumption v free market consumption	0,60  %	0,64  %	0,32  %	0,46  %
Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer

• (145) The Union consumption of sodium cyclamate on the free market was rather stable between 2018 and 2019. It increased during 2020 due to COVID-19 which caused companies to increase their stocks, in particular during the first half of the year. During the review investigation period, Union consumption returned to the level of 2018.

• (146) There is also a very small captive consumption in the Union representing less than 0,7 % of the consumption of the free market during the entire period considered. The captive consumption decreased by 24 % over the period considered.

5.3.   Imports from the countries concerned

5.3.1.   Volume and market share of the imports from the countries concerned

• (147) The Commission established the volume of imports on the basis of Eurostat. The market share of the imports was established on the basis of the Eurostat and data provided by the Union industry.

• (148) Imports into the Union from the countries concerned developed as follows:

Table 3

Import volume (tonnes) and market share

	2018	2019	2020	Review Investigation period
Volume of imports from the PRC (tonnes)	1 371	1 472	2 402	2 370
Index (FY2018 = 100)	100	107	175	173
Market share	[29  % – 38  %]	[32  % – 41  %]	[46  % – 60  %]	[51  % – 66  %]
Index (FY2018 = 100)	100	109	158	175
Volume of imports from Indonesia (tonnes)	113	19	24	5
Index (FY2018 = 100)	100	17	21	4
Market share	[2,3  % – 3,1  %]	[0,4  % – 0,5  %]	[0,4  % – 0,6  %]	[0,11  % – 0,14  %]
Index (FY2018 = 100)	100	17	19	4
Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer	Source: Eurostat and Questionnaire reply of the Union producer

• (149) The volume of imports from the PRC increased significantly by 73 % in the review investigation period as compared to the beginning of the period considered.

• (150) The volume of imports from Indonesia decreased significantly in the review investigation period as compared to the beginning of the period considered and were negligible in the review investigation period.

• (151) The market share of imports from the PRC increased by 75 % in the review investigation period as compared to the beginning of the period considered. The Commission observed that the market share of the imports from the PRC increased at the expense of the sales volume and market share of the Union industry as described in recitals 168 to 170.

5.3.2.   Inward processing system

• (152) Sodium cyclamate was imported from the PRC under the normal regime as well as under the inward processing system. As concerns Indonesia, sodium cyclamate was imported only under the normal regime.

• (153) The imports from the PRC under the normal regime and under inward processing system developed as follows:

Table 4

Import volume (tonnes) from the PRC under the normal regime and inward processing system