Commission Implementing Regulation (EU) 2025/291 of 13 February 2025 imposing a provisional anti-dumping duty on imports of decor paper originating in the People’s Republic of China

(258) While the Union industry started in 2020 from an unfavourable economic position due to frequent machines stoppages and the resort to short time work for several Union industry producers caused by plummeting demand at the outset of the COVID-19 pandemic (recital (250)), in 2021 the Union industry was able to improve their economic situation due to the increased market demand for decor paper at the start of the COVID-19 pandemic. However, this positive trend was reversed by 2022 and the subsequent period, when Union producers experienced not only dwindling demand, but also increased competition from fast-growing Chinese dumped volumes.

(259) In addition, as already highlighted in recital (219), starting from 2022, the Union industry was faced with increases in the cost of production driven mainly by higher costs of raw materials and energy. The Union industry, however, could not increase their sales prices sufficiently to offset these significant cost increases due to price suppression from Chinese imports. The gap between cost of production and sales prices in the Union was around 4 % during 2023 and the investigation period, leading to a sharp decrease in profitability as compared to 2021.

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

(261) In accordance with Article 3(6) of the basic Regulation, the Commission examined whether the dumped imports from the country concerned caused material injury to the Union industry. In accordance with Article 3(7) of the basic Regulation, the Commission also examined whether other known factors could at the same time have injured the Union industry. The Commission ensured that any possible injury caused by factors other than the dumped imports from the country concerned was not attributed to the dumped imports. These factors are:, effects of the dumped imports, imports from third countries, effects of the decrease in consumption on the Union market, as well as the export performance of the Union industry.

(262) As shown in Table 3, Chinese imports steadily increased during the period considered, from a market share of 1 % in 2020 to 7 % in the investigation period. Moreover, Chinese import volumes almost doubled in the span of one year, between 2022 and 2023. Chinese landed prices remained below Union industry’s prices throughout the period considered, even in 2021 when market demand for decor paper in the Union increased significantly. Moreover, the Chinese market share followed a steep upward trend, increasing by 521 % during the period considered (recital (213)), from 1 % to 7 %.

(263) The Commission also found that Chinese import prices were consistently lower than the Union industry’s cost of production, exerting price suppression during the period considered. As demand in 2022 dwindled, and the Union industry started to face increased and fast-growing competition from Chinese dumped imports, the Union industry was unable to set their prices above cost of production.

(264) Chinese dumped on the Union market exerted price suppression on Union industry sales prices.

(265) In addition, as already mentioned in recital (218), the Commission established a weighted average undercutting margin of between 9,3 % and 10,9 % by the imports from the sampled exporting producers on the Union market in the investigation period, coinciding in time with the increasingly deteriorating situation of the Union industry.

(266) The analysis of the injury indicators shows that the economic situation of the Union industry worsened especially towards the second half of the period considered and this coincided with a significant increase of dumped imports from the country concerned, which were found to undercut the Union industry prices during the investigation period. Those imports, in any event, caused significant price suppression throughout the period considered, as the Union industry was not able to increase its prices in line with the increase of cost of production, and even had to decrease the prices below the cost of production in the investigation period.

(267) In view of the above considerations, the Commission provisionally established that there is a causal link between the material injury suffered by the Union industry and the dumped imports from China within the meaning of Article 3(6) of the basic Regulation. Such injury had both volume and price effects.

(268) The Commission also examined whether other known factors, individually or collectively, were capable of attenuating the causal link established between the dumped imports to the effect that such link would no longer be genuine and substantial.

(269) During the period considered, Union consumption spiked in 2021 thanks to favourable market conditions in the construction and renovation sectors created by the COVID-19 pandemic. Following the relaxation of the COVID-19 measures in 2022, demand for decor paper-based applications consequently decreased. This downward trend started in 2022 and lasted throughout 2023 and the investigation period.

(270) However, slumping demand cannot break the causal link between the influx of dumped imports from the PRC and the injury suffered by the Union industry, as the EU industry sales quantity on the EU market experienced a sharper drop in 2022 (9 %) and the period comprising 2023 and the investigation period (16 %) as compared to the decline in the consumption (3 % in 2022 and 14 % in 2023 and the investigation period). In addition, as already highlighted in Table 3, Chinese exporters were able to sharply increase their exports to the EU during the period considered, and to almost double their market share in only one year (from 2022 to 2023); the trends in consumption must thus be seen not only in the context of an established decrease in demand in the Union market, but also taking into account the trend of Chinese imports, whereby a sharp rise in dumped imports negatively affected the sales volume of the Union industry.

(272) As explained in recitals (204)-(205), due to the inclusion of different products that are not the product under investigation under the relevant CN codes, and in the absence of more accurate sources of information, the Commission had to apply a ratio to the imports from Eurostat, based on the difference between the actual post-initiation imports of the product under investigation as recorded under the respective 10-digit TARIC codes and the overall Union imports under the corresponding CN codes. Hence, the figures from third countries are given mostly as an indication for the market trends in terms of volume and market share and not for the purpose of defining import prices of the product under investigation.

(273) The Commission found that out of all countries exporting decor paper into the Union, only the United Kingdom held a market share above 1 %. However, based on market information obtained by the Commission in the process of the anti-dumping investigation and by the complainants, there were no known decor paper producers in the United Kingdom.

(274) An increase in market share from third countries was only experienced in 2021, a period market by high demand and high profit margins, and in 2022, when some residual market demand from the previous year persisted. By 2023 and during the investigation period, the market share dropped by 6 percentage points. In any event, the overall market share of the UK in the EU remained quite stable during the period considered (around 1–2 %), while the market share of other third countries actually decreased from 5 % to 1 %. It was therefore provisionally concluded that imports from other countries have not contributed to the injury suffered by the Union industry.

(276) In the period considered, the Union industry decreased its export volume by 29 %, following the same trend as sales on the Union market. Export volumes peaked in 2021, as the global COVID-19 lockdowns triggered an uptick in demand of decor paper worldwide. The following years were market by a steady decline in export volumes.

(277) The average export prices increased, during the period considered, by 45 %. Export prices followed the same trend as sales prices in the Union; however, export prices were set above the average cost of production, with the exception of 2020. This also helped the Union industry to recover some of the losses on the EU market.

(278) While the Union industry was able to charge higher prices for its exports sales, its already limited export volumes further decreased by 29 % over the period considered. As the export volumes were limited, and still profitable, the trend in export sales did not attenuate the causal link.

(279) In 2020, the Union market experienced a decrease in demand, driven by the market uncertainty due to the outset of the COVID-19 pandemic. This resulted in temporary reductions in production and number of machines in operation. Consequently, the Union industry was not able to keep its sales prices above the costs of production and suffered losses in this period (recital (239)). However, market demand started to improve in the second half of the year, peaking in 2021 due to the boom in home renovations (recital (250)). As already shown in Table 11, 2021 was the only year for which the Union industry was able to keep its prices above cost of production, as the Union economic situation deteriorated in 2022 and the following years, including in the investigation period.

(280) While at the beginning of the period considered Chinese imports into the Union were negligible in terms of volume and market share, and the Union industry nonetheless experienced a negative economic downturn, it must be considered that the market contraction and erosion in profitability experienced in 2020 was driven by the uncertainty connected with the outset of the COVID-19 pandemic. However, all these reasons did not attenuate the causal link between Chinese imports and the injury experienced during the investigation period.

(281) As a matter of fact, the analysis of the historical profitability in the Union for sales to unrelated showed that in the years prior to 2020, the Union industry was in a generally positive financial situation, with weighted profit margins ranging between 2,3 % and 6,5 % in the period between 2014 and 2019, when Chinese imports of decor paper into the Union were negligible or non-existent.

(282) As already explained in recital (250), decreasing demand was already negatively affecting the Union industry. The rapid influx of Chinese dumped imports, whose market share doubled between 2022 and 2023, forced the Union industry to set their sales prices in the Union below cost of production in order to stay competitive with Chinese prices and maintain their presence on the market.

(283) In light of the above considerations, a causal link was established between the injury suffered by the Union industry and the dumped imports from China, which was not attenuated by the factors mentioned above.

(284) After initiation, the CNFPIA submitted that injury was caused by imports from other countries and by the complainants’ production efficiency. To support its claim, the CNFPIA used data from Eurostat to show that the import price from China is higher than that from the other countries, and that the import price from other countries is also lower than the EU import price from EU members.

(285) The Commission considered that, as already explained in recital (267) and Section 4.3, the CN codes reported at initiation include a basket of different products outside of the product concerned. Albeit the average prices reported in Table 12 are lower than Chinese prices, the figures from third countries are given mostly as an indication for the market trends in terms of volume and market share and not for the purpose of defining import prices of the product under investigation. In any event, even if the prices reported in Table 12 were the actual import prices, those imports would not cause injury given the low volumes and market share. In particular, the market share of imports from the United Kingdom was rather limited at 2 %, while the volume of imports from other third countries drastically decreased in 2023. Therefore, the Commission rejected this claim.

(286) In the present case, the complainants claimed the existence of raw material distortions within the meaning of Article 7(2a) of the basic Regulation. Thus, in order to conduct the assessment on the appropriate level of measures, the Commission first established the amount of duty necessary to eliminate the injury suffered by the Union industry in the absence of distortions under Article 7(2a) of the basic Regulation. Then it examined whether the dumping margin of sampled exporting producers would be higher than their injury margin (see recital (296) below).

(287) The injury would be removed if the Union Industry were able to obtain a target profit by selling at a target price in the sense of Articles 7(2c) and 7(2d) of the basic Regulation.

(288) In accordance with Article 7(2c) of the basic Regulation, for establishing the target profit, the Commission took into account the following factors: the level of profitability before the increase of imports from the country concerned, the level of profitability needed to cover full costs and investments, research and development (R & D) and innovation, and the level of profitability to be expected under normal conditions of competition. Such profit margin should not be lower than 6 %.

(289) The complainant submitted that, based on the prior performance of the Union industry, under normal market conditions a reasonable profit of 10 % should be considered. This level of the target profit was, however, not evidenced nor supported by the findings of the investigation.

(290) Information relating to the establishment of the normal profit was additionally included in the questionnaire sent to the sampled Union producers. This included the profitability of the like product for the 10 years preceding the investigation period.

(291) As a first step, the Commission established a basic profit covering full costs under normal conditions of competition based on a weighted average of the profit margins achieved by the three sampled Union producers in 2014, a profitable year marked by a favourable economic period in the construction sector and prior to the arrival of Chinese dumped imports in 2020. Such profit margin was established at 6,5 %.

(292) The Union Industry provided evidence that its level of investments, research and development (‘R&D’) and innovation during the period considered would have been higher under normal conditions of competition. The Commission verified this information based on investment plans and refused and postponed projects, demonstrating that that these investments were genuinely planned. Indeed, the claims of the EU Industry were found to be warranted. To reflect this in the target profit, the Commission calculated the difference between investments, R & D and innovation (‘IRI’) expenses under normal conditions of competition as provided by the EU Industry and verified by the Commission with actual IRI expenses over the period considered. Such difference, expressed as a percentage of turnover, was set between 0,5 % and 1,3 % for each of the sampled companies.

(293) Such percentages were added to the basic profit of 6,5 % mentioned in recital (287), leading to target profits ranging between 7,0 % and 7,8 % based on each company circumstances.

(294) On this basis, the Commission calculated a non-injurious price of 2 361 EUR/tonne for the like product of the Union industry by applying the above-mentioned target profit margin (see recital (291)) to the cost of production of the sampled Union producers during the investigation period and then adding the adjustments under Article 7(2d) on a type-by-type basis.

(295) The Commission then determined the underselling margin level on the basis of a comparison of the weighted average import price of the sampled cooperating exporting producers in the PRC, as established for the price undercutting calculations, with the weighted average non-injurious price of the like product sold by the sampled Union producers on the Union market during the investigation period. Any difference resulting from this comparison was expressed as a percentage of the weighted average import CIF value.

(297) As explained in the Notice of Initiation, the complainant provided the Commission sufficient evidence that there are raw material distortions in the country concerned regarding the product under investigation. Therefore, in accordance with Article 7(2a) of the basic Regulation, this investigation examined the alleged distortions to assess whether, if relevant, a duty lower than the margin of dumping would be sufficient to remove injury.

(298) The complainant has provided sufficient evidence in the complaint that there are raw material distortions within the meaning of Article 7(2a) of the basic Regulation in the PRC with regard to the product concerned. According to the evidence in the complaint, titanium dioxide and wood pulp, each individually accounting for more than 17 % of the cost of production of the product concerned, is subject to export licencing requirements in the PRC.

(299) Therefore, as announced in the Notice of Initiation, in accordance with Article 7(2a) of the basic Regulation, the Commission examined the alleged distortions.

(300) The Commission first identified the main raw materials used in the production of the product concerned by each of the sampled exporting producers. As main raw materials were considered those raw materials which are likely to represent at least 17 % of the cost of production of the product concerned. The Commission established that both titanium dioxide and wood pulp represented at least 17 % of the cost of production of the product concerned. For the purpose of this calculation, an undistorted price of the raw material as established in Thailand was used. However, the investigation established that wood pulp was not sourced domestically, but imported by the sampled exporting producers, so there was no need to further examine this raw material.

(301) The Commission then examined whether titanium dioxide is distorted by one of the measures listed in Article 7(2a) of the basic Regulation: dual pricing schemes, export taxes, export surtax, export quota, export prohibition, fiscal tax on exports, licensing requirements, minimum export price, value added tax (VAT) refund reduction or withdrawal, restriction on customs clearance point for exporters, qualified exporters list, domestic market obligation, captive mining. For this purpose the Commission used a list of goods subject to export licenses maintained by the GOC (Ministry of Commerce and its competent local departments). The 2023 and 2024 lists specified that titanium dioxide (TiO2) and other titanium-related products are subject to export licensing requirements.

(302) Subsequently, the Commission compared the price of titanium dioxide to prices in the representative international markets. It was found that the unit price of titanium dioxide in the PRC, as reported by the sampled exporting producers, was almost half the unit price in representative countries, including Thailand, which was considered an appropriate representative country. This was also confirmed by the reported import prices of titanium dioxide of one of the sampled exporting producers, that sourced around 10 % of titanium dioxide outside the PRC.

(303) The Commission concluded that titanium dioxide is subject to a distortion within the meaning of Article 7(2a) of the basic Regulation.

(304) In accordance with Article 7(2b) of the basic Regulation, the Commission examined whether it could clearly conclude that it was in the Union interest to determine the amount of provisional duties in accordance with Article 7(2a) of the basic Regulation. The determination of the Union interest was based on an appreciation of all pertinent information to this investigation, including the spare capacities in the exporting country, competition for raw materials and the effect on supply chains for Union companies. In order to conduct this assessment, the Commission analysed the specific questions in the questionnaires submitted by the cooperating users, organised verification visits to LamiGraf and Interprint, and also hearings with both users (recital (6)).

(305) On the basis of information provided by the complainants (129), spare decor paper production capacity in China was estimated in 2022 at around [600 000–650 000] tonnes. In line with this information, the Commission established that during the IP the two sampled exporting producers in China had production capacities of [550 000–600 000] tonnes and spare capacities of [40 000–60 000] tonnes. By contrast, the Union market between 2022 and the investigation period had a size of [370 000–420 000] tonnes. In relative terms, spare capacities in China are therefore of a sizeable magnitude.

(306) The Commission therefore concluded that a significant spare capacity existed in China and that, if used, this spare capacity had the potentiality to increase the global supply of the product under investigation, depress prices and consequently undermine the effectiveness of the measure if not set at the level of dumping.

(307) As regards competition for raw materials, the Commission established that TiO2, representing more than 17 % of undistorted production costs, is subject to export licensing requirements, and that the unit price of this raw material in China, as reported by the sampled exporting producers, was only around half the unit price in all possible representative countries that were considered in the 1st FOP Note, namely, Brazil Indonesia, Malaysia, Thailand, and Türkiye. As set out in Section 6.3 above, the Chinese raw material market of TiO2 was considered to be distorted.

(308) Export licensing requirements on TiO2 in China oblige exporting companies to receive prior approval from the government in the form of licenses or permits in order to export the product.

(309) Such procedures not only give the government control over the exporters and the amounts of exported goods but may also increase transaction costs or prevent exporters from reacting quickly to sales opportunities abroad due to long processing times.

(310) By artificially increasing the level of raw materials supply, the GOC exerts a downward pressure on prices of domestic TiO2. This creates a comparative disadvantage for the Union industry compared to the exporting producers in China.

(311) As explained in recital (27), the main use of decor paper is in the furniture, interior-design and construction and renovation industries as a laminate on a backing material. The main downstream users are printers, impregnators, and laminators. Printers print a particular design on decor paper (e.g. wood, grain, marble); impregnators typically impregnate décor paper with synthetic resin, such as melamine or urea resin, while laminators laminate decor paper onto wood-based panels such as medium density fibreboards or particleboard through the use of high temperatures and pressure, or, alternatively, by means of adhesives.

(312) No unrelated importer and trader came forward in this investigation. Two companies initially came forward as unrelated importers but were both considered as users given the degree of processing of decor paper in their respective production processes.

(313) In total, four users participated in this investigation opposing the imposition of duties. Out of those, two printers submitted questionnaire replies. The others submitted comments.

(314) Both cooperating users submitted that if anti-dumping duties were imposed on Chinese imports, users on the Union market could experience higher costs which would also spill over to end consumers. Both users also highlighted that if duties are imposed, the Turkish market would become more competitive, driving independent printers and impregnators to move production outside of the Union.

(315) One user also submitted that if high anti-dumping duties are imposed, Chinese imports of decor paper into the Union will virtually stop, and the EU would remain the only viable supplier due to high-entry barriers for new players in the decor paper sector, namely high investments in greenfield projects, environmental barriers, as decor paper producers traditionally need access to a water source, and barriers to know-how and quality. This combination would lead Union producers to increase prices following the lack of competition.

(316) First, the Commission analysed the profitability of both cooperating users and considered that they are in a difficult economic situation. However, even though users would experience an increase in the cost of sourcing decor paper from China, the difference between the dumping and injury margin (around 8 percentage points, on average) is not such that a duty set at the lower level of the injury margin would lead to a significant improvement in their economic situation. Furthermore, since there was no cooperation from other users, the situation of the two users may not be representative for other users that are active in other market segments such as impregnators and laminators. In fact, the Commission recalled that no impregnator or laminator came forward in this investigation.

(317) Second, although the possibility of sourcing decor paper from other third countries is limited, the Union industry was not yet running at full capacity and would be able to meet future market demand, and future increases in demand, also in light of foregone post-IP investments by the Union producers in additional production capacity.

(318) In particular, one of the sampled Union producers reported a foregone investment in the installation of a pre-impregnated paper machine. This would not only add additional capacity but would also diversify the sources of pre-impregnated decor paper and increase competition in the Union market. This is important as one of the users, Interprint, submitted during its hearing that such specific type of decor paper is produced by only two companies worldwide.

(319) The imposition of duties would thus allow the Union industry to invest in expansion capacity and diversification of their product mix, thereby giving more diversification options also for users. Therefore, in case anti-dumping measures are imposed at the level of the dumping margins, the impact on unrelated importers and traders would be limited, and not to the extent that it would outweigh the benefits for the Union industry, which needs this level of protection in view of the injury established caused by dumped imports from China and taking into account the above raw material distortions.

(320) LamiGraf argued that the differences in raw material costs between China and the EU are influenced by various factors which should be taken into account for the assessment for the level of measures, and that the non-application of the lesser duty rule requested by the complainants would restrict competitive supply of decor paper within the Union. The Kastamonu Group submitted that the imposition of any anti-dumping measures on imports of decor paper from China would limit the availability of an adequate supply of decor paper to meet the needs of EU users.

(321) The Commission recalled that the injury established caused by dumped imports from China and taking into account the above raw material distortions warrants the imposition of measures. Contrary to the claim of LamiGraf, competitive supply would be restricted in the absence of measures, as the Union industry would no longer be able to meet the demand of the user industry which requires a viable economic situation of the Union industry, which cannot be achieved in case the level playing field would not be restored.

(322) Having assessed all pertinent information to this investigation, the Commission concluded that it is in the Union interest to determine the amount of provisional duties in accordance with Article 7(2a) of the basic Regulation. In view of the analysis set out above, the Commission concluded that, in accordance with Article 7(2a) of the basic Regulation, it is in the interest of the Union to set the level of the provisional duties on the basis of the level of dumping, subject to the further considerations in the context of Article 21 set out in Section 7.2 below.

(323) It is recalled that the Union industry consists of seven producers, employing more than 2 000 workers during the investigation period.

(324) Notwithstanding the fact that the Union industry in 2020 faced an economic downturn due to the market contraction caused by the COVID-19 pandemic, followed by a sharp rebound in profitability, sales volumes, cash flow, and return on investment in 2021, the sales and profitability of the Union industry deteriorated significantly during the second half of the period considered, with a consequent negative impact on its production volumes, investments, and cash flow. The Commission concluded at this stage that the Union industry suffered material injury caused by the dumped imports from the country concerned (see recital (174) above).

(325) The absence of measures is likely to have a significant negative effect on the Union industry in terms of further price suppression, lower sales and further deterioration of the profitability. The measures will allow the Union industry to reach its potential on the Union market, undertake foregone investments, and improve profitability to levels to be expected under normal conditions of competition.

(326) Consequently, the Commission concluded that the imposition of measures is in the interest of the Union industry and its upstream suppliers.

(327) As explained in recital (312), no unrelated importer or trader came forward to participate in the investigation. Two companies initially came forward as unrelated importers, but given the degree of processing of decor paper, they were both considered to be users. Both companies operated as decor paper printers. As explained in recital (316), no impregnator or laminator came forward in this investigation, and the Commission was thus unable to estimate the impact of duties on these types of users.

(328) The Commission verified the questionnaire replies of the two cooperating users and held hearings with both of them (recital (6)). Decor paper represented around [75–85] % of their total raw material costs and around [40–50] % of their total cost of production. On average, both printers sourced between [15–25] % of the product under investigation from the PRC and represented an estimated [10–20 %] market share in terms of Union consumption of the product under investigation. Both users also demonstrated that they were operating at a loss in the investigation period. The Commission estimated that if duties are imposed at the proposed level, and all other things remaining equal, their cost of production would increase by a weighted average of less than 2 % (130). Moreover, as already acknowledged in recital (314), although the possibility of sourcing decor paper from other third countries is limited, the imposition of duties would not bring a risk of scarcity on the Union market of the product under investigations as the Union industry is not running at full capacity and would be able to meet increased market demand.

(329) Therefore, the Commission confirmed its assessment that the impact of duties on users would be limited, and not to the extent that it would outweigh the benefits for the Union industry (recital (319)).

(330) The effects of the measures on the Union producers would be positive. The risks of a potential negative impact on users and unrelated importers/traders, in particular with respect to supply, would be mitigated by the free available capacity of the Union industry and additional future production capacity expansion. The restoration of fair competition and of a level playing field, in the absence of dumped imports, would benefit the healthy development of the overall market and will allow the Union industry to comply with the costs arising from Union and Member State obligations under international agreements.

(331) On the basis of the above, the Commission provisionally concluded that there were no compelling reasons to come to the conclusion that it was not in the Union interest to impose measures on imports of decor paper originating in the PRC.

(332) On the basis of the conclusions reached by the Commission on dumping, injury, causation, level of measures and Union interest, provisional measures should be imposed to prevent further injury being caused to the Union industry by the dumped imports.

(333) Provisional anti-dumping measures should be imposed on imports of décor paper originating in the People’s Republic of China, in accordance Article 7(2a) of the basic Regulation. The Commission concluded in recital (322) that the appropriate level to remove injury should be the dumping margin.

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

(336) To minimise 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 application of individual anti-dumping duties is only applicable upon presentation of 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. Until such invoice is presented, imports should be subject to the anti-dumping duty applicable to ‘all other imports originating in the PRC’.

(337) 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.

(338) 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.

(339) As mentioned in recital (3), the Commission made imports of the product concerned subject to registration. Registration took place with a view to possibly collecting duties retroactively under Article 10(4) of the basic Regulation.

(340) In view of the findings at provisional stage, the registration of imports should cease/be discontinued.

(341) No decision on a possible retroactive application of anti-dumping measures has been taken/can be taken at this stage of the proceeding.

(342) In accordance with Article 19a of the basic Regulation, 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.

(343) Kingdecor commented that the Commission should not take into account a duplicate line in the TbyT for its calculation. Further, the volume of defective products for which credit notes were issued should be deducted from the respective invoices and lead to a recalculation of the dumping margin. Finally, the Commission should apply a different benchmark value for TiO2 and recalculate the dumping margin accordingly.

(344) The Commission confirms that it had already excluded the duplicate line, which a 0 value from the calculation. The second and third comments do not refer to a clerical error and will be addressed at definitive stage.

(345) 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 and/or the Hearing Officer in trade proceedings within a fixed deadline.

(346) 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

— weighing 30-150 g/m2; having an ash content between 5 % and 50 %;

— having a Klemm absorbency of at least 12 millimetres per 10 minutes or a resin pick-up of 20 % to 200 %;

— having a wet tensile strength of 6 to 12 Newton (N) per 15 millimetres;

— having a Gurley porosity of 3 to 80 seconds per 100 millilitres;

— having a smoothness of 20 to 300 according to the Bekk method;

— in reels with a width up to 300 centimetres

— whether or not pre-impregnated with a combination of latices or natural binders (like starch);

— excluding wallpaper and similar wallcoverings;

— excluding papers saturated with water-based melamine, urea, phenol or any thermosetting, thermoplastic resin solutions,

and originating in the People’s Republic of China.

Article 2

Article 3

Article 4

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

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

Done at Brussels, 13 February 2025.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 176, 30.6.2016, p. 21, ELI: http://data.europa.eu/eli/reg/2016/1036/oj.

(2) Notice of initiation of an anti-dumping proceeding concerning imports of decor paper originating in the People’s Republic of China (OJ C, C/2024/3695, 14.6.2024, ELI: http://data.europa.eu/eli/C/2024/3695/oj).

(3) Commission Implementing Regulation (EU) 2024/2718 of 24 October 2024 making imports of decor paper originating in the People’s Republic of China subject to registration (OJ L, 2024/2718, 25.10.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/2718/oj).

(4) Judgment of 14 March 1990, Gestetner Holdings plc v Council and Commission of the European Communities, C-156/87, ECLI:EU:C:1990:116, para. 43.

(5) https://tron.trade.ec.europa.eu/investigations/case-history?caseId=2734.

(6) Commission Staff Working Document on Significant Distortions in the Economy of the People’s Republic of China for the purposes of Trade Defence Investigations, 10 April 2024, SWD(2024) 91 final. This Report updated the previous Commission Staff Working Document on Significant Distortions in the Economy of the People’s Republic of China for the purposes of Trade Defence Investigations of 20 December 2017, SWD(2017) 483.

(7) Commission Staff Working Document of 20 December 2017 on Significant Distortions in the Economy of the People’s Republic of China for the Purposes of Trade Defence Investigations, SWD(2017) 483 final/2.

(8) Wood pulp and chemicals are the main input materials to produce décor paper, with wood pulp comprising between 15 to 30 % of the total cost of décor paper production. TiO2 and fillers (e.g. flexonyl or iron oxide) are the main chemicals used and represent up to 50 % of the production costs of decor paper.

(9) Report, p. 358.

(10) Report, p. 320.

(11) Report, p. 357.

(12) 14th Five-Year Plan of the Government of China, p. 26, available at: https://cset.georgetown.edu/wp-content/uploads/t0284_14th_Five_Year_Plan_EN.pdf (accessed on 21 November 2024).

(13) 14th Five Year Plan of the Government of China, p. 9, 85, available at: https://cset.georgetown.edu/wp-content/uploads/t0284_14th_Five_Year_Plan_EN.pdf (accessed on 21 November 2024).

(14) 2019 Catalogue for Guiding Industry Restructuring, p. 38 and Section III.12. See also Commission Implementing Regulation (EU) 2023/1648 of 21 August 2023 imposing a definitive anti-dumping duty on imports of certain coated fine paper originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council (‘Coated fine paper AD 2023’) (OJ L 207, 22.8.2023, p. 41, ELI: http://data.europa.eu/eli/reg_impl/2023/1648/oj), recital 67.

(15) Coated fine paper AD 2023, recital 65.

(16) Forest and Grassland Sectoral Development Plan GOC (2021-2025), p. 9, 10.

(17) Report p. 101.

(18) Report p. 294.

(19) Report p. 265.

(20) Report, p. 265.

(21) Report, p. 265.

(22) Commission Implementing Regulation (EU) 2017/367 of 1 March 2017 imposing a definitive anti-dumping duty on imports of crystalline silicon photovoltaic modules and key components (i.e. cells) originating in or consigned from the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council and terminating the partial interim review investigation pursuant to Article 11(3) of Regulation (EU) 2016/1036 (‘Solar panels AS 2017’) (OJ L 56, 3.3.2017, p. 131, ELI: http://data.europa.eu/eli/reg_impl/2017/367/oj), recitals 464-465.

(23) Report, p. 275.

(24) Report, p. 278.

(25) Report, p. 289.

(26) Report, p. 180.

(27) See, e.g. Council Implementing Regulation (EU) No 452/2011 of 6 May 2011 imposing a definitive anti-subsidy duty on imports of coated fine paper originating in the People’s Republic of China (‘Coated fine paper 2011 AS’) (OJ L 128, 14.5.2011, p. 18, ELI: http://data.europa.eu/eli/reg_impl/2011/452/oj) recital 75; Commission Implementing Regulation (EU) 2017/1187 of 3 July 2017 imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People’s Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council (‘Coated fine paper AS 2017’) (OJ L 171, 4.7.2017, p. 134, ELI: http://data.europa.eu/eli/reg_impl/2017/1187/oj), recital 52; Coated fine paper AD 2023, recital 53; Commission Implementing Regulation (EU) 2023/1647 of 21 August 2023 imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People’s Republic of China following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council (‘Coated fine paper AS 2023’) (OJ L 207, 22.8.2023, p. 1, ELI: http://data.europa.eu/eli/reg_impl/2023/1647/oj), recitals 55-72.

(28) Report, p. 2.

(29) Ibid.

(30) Ibid.

(31) Report, Chapter 2, p. 7.

(32) Report, Chapter 2, p. 7-8.

(33) Report, Chapter 2, p. 10, 18.

(34) See at: http://www.npc.gov.cn/zgrdw/englishnpc/Constitution/node_2825.html (accessed on 18 November 2024).

(35) Report, Chapter 2, p. 29-30.

(36) Report, Chapter 4, p. 57, 92.

(37) Report, Chapter 6, p. 149-150.

(38) Report, Chapter 6, p. 153 -171.

(39) Report, Chapter 7, p. 204-205.

(40) Report, Chapter 8, p. 207-208, 242-243.

(41) Report, Chapter 2, p. 19-24, Chapter 4, p. 69, p. 99-100, Chapter 5, p. 130-131.

(42) See: https://www.hwpaper.cn/ (accessed on 15 November 2024).

(43) See: https://www.kingdecor.cn/sort_8.html (accessed on 15 November 2024).

(44) See: http://www.qifeng.cn/ (accessed on 15 November 2024).

(45) See: https://cn.hengdaxincai.com/tzzgx.html (accessed on 15 November 2024).

(46) See p. 79, available at: http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2024/2024-4/2024-04-02/9935660.PDF (accessed on 18 November 2024).

(47) See p. 144, available at: http://www.chenmingpaper.com/Uploadfile/pdf/202403291007003469.pdf, (accessed on 15 November 2024).

(48) Commission Implementing Regulation (EU) 2024/1923 of 10 July 2024 imposing a provisional anti-dumping duty on imports of titanium dioxide originating in the People’s Republic of China (OJ L, 2024/1923, 11.7.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/1923/oj), recital 133.

(49) See https://www.pgvt.cn/index.php?s=Home/Article/lists/art_type/strat_index (accessed on 30 April 2024).

(50) See http://www.ansteel.cn/yewubankuai/fantaichanye/2016-11-18/5.html (accessed on 30 April 2024).

(51) See the company’s 2023 Annual Report, p. 73, available at: https://static.cninfo.com.cn/finalpage/2024-03-26/1219403167.PDF (accessed on 30 April 2024).

(52) See: http://www.qingshanpaper.com/intro/12.html (accessed on 15 November 2024).

(53) See: http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2018/2018-4/2018-04-17/4241785.PDF (accessed on 15 November 2024).

(54) See: http://www.chenmingpaper.com/about/djgz.aspx (accessed on 15 November 2024).

(55) See Art. 33 of the CCP Constitution, Article 19 of the Chinese Company Law. See also Report, Chapter 3, p. 47-50.

(56) See Section I.19.1, page 43, available at: https://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf, (accessed on 15 November 2024).

(57) See Section I.19.1, page 44, available at:

https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202312/P020231229700886191069.pdf, (accessed on 15 November 2024).

(58) See Implementing Regulation (EU) 2024/1923, recital (159).

(59) For the sulfuric acid process method, see the 2024 Guidance Catalogue, p. 88 (in force as of 1 February 2024) available at https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202312/P020231229700886191069.pdf (accessed on 18 November 2024). The method was listed as restricted in the 2019 Guidance Catalogue, p. 84, as well. For the chloride process method, see the 2019 Guidance Catalogue, p. 15 (in force until 31 January 2024), available at https://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf (accessed on 18 November 2024).

(60) See Section III.8, available at: http://www.xinhuanet.com/2021-03/13/c_1127205564.htm, (accessed on 15 November 2024).

(61) See: https://www.gov.cn/zhengce/zhengceku/2022-06/19/content_5696665.htm, (accessed on 15 November 2024).

(62) Ibid, paragraph 3.

(63) Ibid, paragraph 12.

(64) Report, Chapter 2, p. 24-27.

(65) See: http://www.cnfpia.org/sf_8A67D37C5FBF469EB7F2E8CEFF0B36E5_297_4AAFEFB7475.html (accessed on 19 November 2024).

(66) See at: http://www.cnfpia.org/about-law.html (accessed on 15 November 2024).

(67) See p. 11, Hangzhou Huawang New Material Technology’s annual report 2023, available at: https://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2024/2024-4/2024-04-29/10136207.PDF, (accessed on 19 November 2024).

(68) See at: https://www.kingdecor.cn/list_269.html, (accessed 19 November 2024).

(69) Report, Chapter 3, p. 40.

(70) See for example: Blanchette, J. – Xi’s Gamble: The Race to Consolidate Power and Stave off Disaster; Foreign Affairs, Vol. 100, No 4, July/August 2021, pp. 10-19.

(71) Report, Chapter 3, p. 41.

(72) See at: https://merics.org/en/comment/who-ccp-chinas-communist-party-infographics (accessed on 18 October 2024).

(73) General Office of CCP Central Committee’s Guidelines on stepping up the United Front work in the private sector for the new era, see at: www.gov.cn/zhengce/2020-09/15/content_5543685.htm (accessed on 21 October 2024).

(74) Financial Times (2020) – Chinese Communist Party asserts greater control over private enterprise, see at: https://on.ft.com/3mYxP4j (accessed on 21 October 2024).

(75) See Xianhe 2023 annual report, p. 47, available at:

https://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2024/2024-4/2024-04-27/10119843.PDF (accessed on 25 November 2024).

(76) See Xianhe 2024 half-year report, p. 22, available at:

http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2024/2024-8/2024-08-15/10375049.PDF (accessed on 25 November 2024).

(77) See Qifeng 2023 annual report, p. 27, available at2:

http://www.qifeng.cn/public/upload/file/20240417/1713317915129159.pdf (accessed on 25 November 2024).

(78) See Qifeng 2023 annual report, p. 13, available at:

http://www.qifeng.cn/public/upload/file/20240417/1713317915129159.pdf (accessed on 25 November 2024).

(79) See at: http://www.qingshanpaper.com/news/10237.html (accessed on 25 November 2024) as well as in the company’s 2024 half-year report, p. 49 available at:

https://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2024-08-20/600103_20240820_CTDO.pdf (accessed on 25 November 2024).

(80) See at: http://www.qingshanpaper.com/news/10237.html (accessed on 25 November 2024) as well as in the company’s 2024 half-year report, p. 11 available at:

https://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2024-08-20/600103_20240820_CTDO.pdf (accessed on 25 November 2024).

(81) Report, Chapter 12.

(82) Report, Chapter 4, p. 56-57, 99-100.

(83) See Section IV.12, page 27, available at:

https://www.ndrc.gov.cn/fggz/fzzlgh/dffzgh/202105/P020210513602621066980.pdf (accessed 19 November 2024).

(84) See: https://huanbao.bjx.com.cn/news/20210707/1162695.shtml, (accessed 18 November 2024).

(85) See at: https://huanbao.bjx.com.cn/news/20210707/1162695.shtml (accessed on 26 November 2024).

(86) See at: https://jxt.zj.gov.cn/art/2022/12/19/art_1229123455_5040362.html (accessed on 26 November 2024).

(87) See box 8.3, page 39, http://www.forestry.gov.cn/c/www/lczc/44287.jhtml (accessed on 19 November 2024).

(88) See Implementing Regulation (EU) 2024/1923, recitals (153-172).

(89) Report, Chapter 6, pp. 171-179.

(90) Report, Chapter 9, pp. 260-261.

(91) Report, Chapter 9, pp. 257-260.

(92) Report, Chapter 9, pp. 252-254.

(93) Report, Chapter 13, pp. 360-361, 364-370.

(94) Report, Chapter 13, p. 366.

(95) Report, Chapter 13, pp. 370-373.

(96) Report, Chapter 6, pp. 137-140.

(97) Report, Chapter 6, pp. 146-149.

(98) Report, Chapter 6, pp. 149.

(99) See the Three-year action plan for improving corporate governance of the banking and insurance sectors (2020-2022) issued by the China Banking and Insurance Regulatory Commission (‘CBIRC ’) on 28 August 2020; available at: http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=925393&itemId=928 (accessed on 21 October 2024). The Plan instructs to ‘ further implement the spirit embodied in General Secretary Xi Jinping’s keynote speech on advancing the reform of corporate governance of the financial sector’. Moreover, the Plan’s section II aims at promoting the organic integration of the Party’s leadership into corporate governance: ‘we shall make the integration of the Party’s leadership into corporate governance more systematic, standardised and procedure-based […] Major operational and management issues must have been discussed by the Party Committee before being decided upon by the Board of Directors or the senior management’.

(100) See the Notice on the Commercial banks performance evaluation method issued by the CBIRC on 15 December 2020, available at: http://jrs.mof.gov.cn/gongzuotongzhi/202101/t20210104_3638904.htm (accessed on 21 October 2024).

(101) Report, Chapter 6, pp. 157-158.

(102) Report, Chapter 6, pp. 150-152, 156-160, 165-171.

(103) OECD (2019), OECD Economic Surveys: China 2019, OECD Publishing, Paris. p. 29, see at: https://doi.org/10.1787/eco_surveys-chn-2019-en (accessed on 21 October 2024).

(104) See at: http://www.gov.cn/xinwen/2020-04/20/content_5504241.htm (accessed on 21 October 2024).

(105) WT/DS473- European Union – Anti-Dumping Measures on Biodiesel from Argentina, available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds473_e.htm.

(106) Judgement of 11 July 2017, Viraj Profiles v Council, T-67/14, EU:T:2017:481, para. 98.

(107) Notice of initiation of an anti-dumping proceeding concerning imports of decor paper originating in the People’s Republic of China published on 14 July 2024. C/2024/3695. Available at: Notice of initiation of an anti-dumping proceeding concerning imports of decor paper originating in the People’s Republic of China.

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

(109) https://datawarehouse.dbd.go.th/company/profile/vScPNww_dec61eAs8SfIvBpRIrRb0ZQTkaQ5FAs7U l1gSCofJO0PTqqcpWa511Vv.

(110) NACE Rev. 2: 1723 – Manufacture of paper and paperboard as the narrowest industry sector that contains the 6-digit CN of the product under investigation – Paperboard includes both flexible/lightweight (e.g. specialty) and hard paperboard.

(111) HS codes: 4802 54 , 4802 55 , 4805 91 , 4811 60 .

(112) Global Trade Atlas: https://connect.ihsmarkit.com/, http://www.gtis.com/gta/secure/default.cfm.

(113) https://app.bot.or.th/BTWS_STAT/statistics/BOTWEBSTAT.aspx?reportID=912&language=ENG.

(114) https://www.oecd.org/en/publications/oecd-economic-surveys-thailand-2023_4815cb4b-en.html.

(115) https://www.boi.go.th/upload/content/Cost_of_Doing_Business.pdf.

(116) Metropolitan Electricity Authority Thailand at https://www.mea.or.th/en/statistics/energy-sales.

(117) US Department of Energy: ‘Benchmark the Fuel Cost of Steam Generation’. Available at https://www.energy.gov/eere/amo/articles/benchmark-fuel-cost-steam-generation.

(118) https://public.tableau.com/app/profile/epposite/viz/_16516675014300/sheet0.

(119) 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, ELI: http://data.europa.eu/eli/reg/2015/755/oj). Article 2(7) of the basic Regulation considers that domestic prices in those countries cannot be used for the purpose of determining normal value.

(120) The Labor Force Survey, National Statistical Office Ministry of Digital Economy And Society Thailand https://www.nso.go.th/nsoweb/storage/survey_detail/2024/20240521125659_79859.pdf.

(121) https://www.mea.or.th/en/statistics/energy-sales.

(122) US Department of Energy: ‘Benchmark the Fuel Cost of Steam Generation’. Available at https://www.energy.gov/eere/amo/articles/benchmark-fuel-cost-steam-generation.

(123) https://public.tableau.com/app/profile/epposite/viz/_16516675014300/sheet0.

(124) One of the known EU producers manufactured the like product during the period considered but ceased production of decor paper at the end of 2022. Another producer has been involved in an insolvency procedure since 2023.

(125) Based on information in the complaint about import volumes, it was estimated, conservatively, that the cooperating exporting producers represented close to 90 % of the import volumes to the Union from the PRC. Hence, the import volume was adjusted by adding 10 % to the values submitted by the sampled Chinese exporting producers.

(126) The Commission applied a ratio of 15 % based on the comparison made in Surveillance between CN and TARIC additional codes, as explained in recital (203).

(127) The specific ratio and methodology applied for Chinese imports and imports from third countries has been covered in recital (203) and footnotes 125 and 126 above.

(128) The import values have been adjusted by applying an increase of 10 % to the values submitted by the sampled Chinese exporting producers, as explained in footnote 125.

(129) See Annex 7a of the complaint, slides 35–37.

(130) The increase in cost of production was calculated by taking into account, where possible, the different dumping margins of the Chinese exporting producers.