Commission Implementing Regulation (EU) 2023/100 of 11 January 2023 imposing a provisional anti-dumping duty on imports of stainless steel refillable kegs originating in the People’s Republic of China

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

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 shall do so within 5 calendar days of the date of entry into force of this Regulation. The Hearing Officer shall examine requests submitted outside this time limit and may decide whether to accept to such requests if appropriate.

OJ L 176, 30.6.2016, p. 21.

OJ C 195, 13.5.2022, p. 24.

https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2602

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 (OJ L 36, 17.2.2022, p. 1); Commission Implementing Regulation (EU) 2022/95 of 24 January 2022 imposing a definitive anti-dumping duty on imports of certain tube and pipe fittings, of iron or steel, originating in the People’s Republic of China, as extended to imports of certain tube and pipe fittings, of iron or steel consigned from Taiwan, Indonesia, Sri Lanka and the Philippines, whether declared as originating in these countries or not, following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council (OJ L 16, 25.1.2022, p. 36); 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 (OJ L 450, 16.12.2021, p. 59); 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 (OJ L 132, 19.4.2021, p. 145).

See Implementing Regulation (EU) 2022/191 recital 208, Implementing Regulation (EU) 2022/95 recital 59, Implementing Regulation (EU) 2021/2239 recitals 67-74 and Implementing Regulation (EU) 2021/635 recitals 149-150.

See Implementing Regulation (EU) 2022/191 recital 192, Implementing Regulation (EU) 2022/95 recital 46, Implementing Regulation (EU) 2021/2239 recitals 67-74 and Implementing Regulation (EU) 2021/635 recitals 115-118.

See Implementing Regulation (EU) 2022/191 recitals 193-194, Implementing Regulation (EU) 2022/95 recital 47, Implementing Regulation (EU) 2021/2239 recitals 67-74, and Implementing Regulation (EU) 2021/635 recitals 119-122. 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 China’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 the product under investigation and the suppliers of their inputs.

See Implementing Regulation (EU) 2022/191 recitals 195-201, Implementing Regulation (EU) 2022/95 recitals 48-52, Implementing Regulation (EU) 2021/2239 recitals 67-74, and Implementing Regulation (EU) 2021/635 recitals 123-129.

See Implementing Regulation (EU) 2022/191 recital 202, Implementing Regulation (EU) 2022/95 recital 53, Implementing Regulation (EU) 2021/2239 recitals 67-74, and Implementing Regulation (EU) 2021/635 recitals 130-133.

See Implementing Regulation (EU) 2022/191 recital 203, Implementing Regulation (EU) 2022/95 recital 54, Implementing Regulation (EU) 2021/2239 recitals 67-74, and Implementing Regulation (EU) 2021/635 recitals 134-135.

See Implementing Regulation (EU) 2022/191 recital 204, Implementing Regulation (EU) 2022/95 recital 55, Implementing Regulation (EU) 2021/2239 recitals 67-74, and Implementing Regulation (EU) 2021/635 recitals 136-145.

Commission staff working document SWD(2017) 483 final/2, 20.12.2017, available at: https://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156474.pdf

European Union Chamber of Commerce in China, Overcapacity in China : an impediment to the Party’s reform agenda, available at: https://www.europeanchamber.com.cn/en/publications-overcapacity-in-china (accessed on 16 November 2022).

Implementing Regulation (EU) 2021/635 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 (OJ L 110, 8.4.2020, p. 3).

Global Forum on steel excess capacity, Ministerial Report, 20 September 2018.

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; https://policycn.com/policy_ticker/higher-expectations-for-large-scale-steel-enterprise/?iframe=1&secret=c8uthafuthefra4e, and www.xinhuanet.com/english/2019-04/23/c_138001574.htm (accessed on 28 October 2022).

Available at http://www.jjckb.cn/2019-04/23/c_137999653.htm (accessed on 28 October 2022).

As was the case of 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 (accessed on 28 October 2022).

See: https://www.miit.gov.cn/gzcy/yjzj/art/2020/art_af1bef04b9624997956b2bff6cdb7383.html (accessed on 16 November 2022).

See Section IV, Subsection 3 of the Plan, available at: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2021/art_2960538d19e34c66a5eb8d01b74cbb20.html (accessed on 16 November 2022).

See the 14^th Five-Years Plan on the Steel Industry development, Foreword.

See the group’s website, available at: http://www.baowugroup.com/about/board_of_directors (accessed on 7 September 2022).

See the company’s website, available at: https://www.baosteel.com/about/manager (accessed on 7 September 2022).

Shandong Gold Group conveys, learns and implements the spirit of the 20th National Congress of the Communist Party of China (original text in Chinese), press article available on China Gold News’ website: https://www.gold.org.cn/ky1227/kydj/202210/t20221028_193328.html (accessed on 17 November 2022).

Report, Part III, Chapter 14, p. 346 ff.

See People's Republic of China 14^th Five-Year Plan for National Economic and Social Development and Long-Range Objectives for 2035, Part III, Article VIII, available at: https://cset.georgetown.edu/publication/china-14th-five-year-plan/ (accessed on 28 October 2022).

See in particular Sections I and II of the Plan.

The provisions of this section are very detailed and set out strict targets for the future: ‘For iron and steel enterprises that plan to relocate or renovate in different places, the governments of the places where they move in and move out should strengthen communication and coordination, and transfer relevant energy consumption and coal consumption indicators through the energy use rights trading market to achieve win-win cooperation and ensure the smooth and orderly progress of the project. Build 6 characteristic steel production bases in Anyang, Jiyuan, Pingdingshan, Xinyang, Shangqiu, Zhoukou, etc., and improve the scale, intensification, specialisation and distinction of the industry. Among them, by 2025, the production capacity of pig iron in Anyang City will be controlled to stay below 14 million tonnes, and the production capacity of crude steel will be controlled within 15 million tonnes and an 8,5 million-tonnes production centre of high-quality special steel will be formed in Anyang Base of Anyang Iron and Steel Group Co., Ltd.; support Henan Jiyuan Iron and Steel (Group) Co., Ltd. to build a production base for excellent and special steel bars and wires and a regional processing centre; to support Angang Group Xinyang Iron and Steel Co., Ltd., Minyuan Iron and Steel Group Co., Ltd., and Henan Angang Zhoukou Iron and Steel Co., Ltd. to build regional iron and steel complexes.’

See points 2, 8 and 16, respectively, of the Hebei Province’s Three year action plan on cluster development in the steel industry chain 2020 2022.

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; available at: http://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf ( accessed on 28 October 2022).

See Implementing Regulation (EU) 2021/635, recitals 134-135 and Implementing Regulation (EU) 2020/508, recitals 143-144.

World Bank Open Data – Upper Middle Income, https://data.worldbank.org/income-level/upper-middle-income.

bvdinfo.com

https://www.globaltradealert.org/data_extraction

NACE code is the standard European nomenclature of productive economic activities. Following codes were researched: 2591 (steel drums and similar containers), 2592 (light metal packing), 2599 (other fabricated metal products), 2829 (general purpose machinery), 2893 (machinery for food, beverage and tobacco processing).

Orbis database, provided by Bureau Van Dijk (https://orbis.bvdinfo.com).

https://www.mococa.com

https://ilostat.ilo.org/

https://www.globalpetrolprices.com/Brazil/

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).

https://ilostat.ilo.org/data/data-catalogue/

Duly adjusted for statutory time not worked, such as vacation and national holidays.

https://establishbrazil.com/articles/whats-real-cost-employee ;

https://www.globalpetrolprices.com/Brazil/

https://www.edp.com.br/tarifas-vigentes/

https://www.gov.br/mme/pt-br/assuntos/secretarias/energia-eletrica/publicacoes/informativo-gestao-setor-eletrico

The peak and off-peak hours and the various additional cost applicable during the period.

https://www.gov.br/mme/pt-br/assuntos/secretarias/energia-eletrica/publicacoes/informativo-gestao-setor-eletrico/informativo-gestao-setor-eletrico-ano-2021.pdf/view

Since the only available unit of quantity in Comext and Commission Surveillance databases is weight, the conversion of quantities from tonnes/kilograms into units (number of kegs) has been done throughout the investigation under the formula 1 keg=10 kg when relying on those databases. This was the conversion rate used in the complaint and the Commission further analysis confirmed that 10 kg is approximately the average weight of a keg on the market.

The upper figure for the year 2 018 differs from the value found in the Note to the File from 2 September 2022. This is due to the clerical error identified in aggregation of data from customs authorities that was subsequently corrected.

EXW price including transport related costs and import duties applicable on the US market

Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1) as amended by Commission implementing regulation (EU) 2022/1998 of 20 September 2022 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 282, 31.10.2022, p. 1).