Commission Implementing Regulation (EU) 2025/1506 of 24 July 2025 imposing a definitive countervailing duty on imports of certain organic coated steel products 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

THE EUROPEAN COMMISSION,

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

Having regard to Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports from countries not members of the European Union (1) (‘the basic Regulation’), and in particular Article 18 thereof,

Whereas:

(1) The Council, by Council Implementing Regulation (EU) No 215/2013 (2), imposed a countervailing duty on imports of certain organic coated steel products originating in the People’s Republic of China (‘China’, ‘the PRC’, or ‘the country concerned’) (‘the original measures’). The investigation that led to the imposition of the original measures will hereinafter be referred to as ‘the original investigation’.

(2) By Implementing Regulation (EU) No 214/2013 (3), the Council imposed, in parallel, a definitive anti-dumping duty on imports of certain organic coated steel products originating in China. The anti-dumping duties currently in force range from 0 % to 26,1 %.

(3) Following an expiry review pursuant to Article 18 of the basic Regulation, on 2 May 2019, the Commission re-imposed the definitive countervailing duties on imports of certain organic coated steel products originating in the PRC by Regulation (EU) No 2019/688 (the ‘previous expiry review’) (4). The countervailing duties currently in force range from 13,7 % to 44,7 %.

(4) The level of the combined anti-dumping and countervailing duties ranges from 13,7 % to 58,3 %.

(5) Following the publication of a Notice of impending expiry of the countervailing measures in force (5), the Commission received a request for the initiation of an expiry review of the countervailing measures pursuant to Article 18 of the basic Regulation (‘the request’).

(6) The request was submitted on 2 February 2024 by the European Steel Association (‘EUROFER’ or ‘the applicant’) on behalf of the Union industry of organic coated steel products in the sense of Article 10(6) of the basic Regulation, representing more than 70 % of the total Union production of certain organic coated steel products. The request was based on the grounds that the expiry of the countervailing measures would likely result in the continuation or recurrence of subsidisation and injury to the Union industry.

(7) Having determined, after consulting the Committee established by Article 25(1) of the basic Regulation, that sufficient evidence existed for the initiation of an expiry review, the Commission announced on 30 April 2024, by a Notice published in the Official Journal of the European Union (6) (‘the Notice of Initiation’), the initiation of an expiry review of the countervailing measures applicable pursuant to Article 18 of the basic Regulation.

(8) Prior to the initiation of the expiry review, and in accordance with Article 10(7) of the basic Regulation, the Commission notified the Government of China (‘GOC’) that it had received a properly documented review request and invited the GOC for consultations in accordance with Article 10(7) of the basic Regulation. The Commission did not receive any request for pre-initiation consultations.

(9) By a Notice published in the Official Journal of the European Union on 30 April 2024 (7), the Commission also announced the initiation of an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 (8) of the definitive anti-dumping measures in force with regard to imports into the Union of certain organic coated steel products originating in the PRC.

(10) The investigation of the likelihood of continuation or recurrence of subsidisation covered the period from 1 January 2023 to 31 December 2023 (‘the review investigation period’ or ‘RIP’). The examination of the trends relevant for the assessment of the likelihood of continuation or recurrence of injury covered the period from 1 January 2020 to the end of the review investigation period (‘the period considered’).

(11) In the Notice of Initiation, the Commission invited interested parties to contact it in order to participate in the investigation. In addition, the Commission specifically informed the applicant, the known Union producers, the known unrelated importers in the Union, unrelated users in the Union known to be concerned, the known producers in the PRC and the authorities of the PRC about the initiation of the expiry review and invited them to participate.

(12) Interested parties were invited to make their views known, submit information and provide supporting evidence within the time limits set out in the Notice of Initiation. Interested parties were also granted the opportunity to request in writing a hearing with the Commission investigation services and/or the Hearing Officer in trade proceedings.

(13) In its Notice of Initiation, the Commission stated that it might sample the interested parties in accordance with Article 27 of the basic Regulation.

(14) In the Notice of Initiation, the Commission stated that it had provisionally selected a sample of Union producers, in accordance with Article 27 of the basic Regulation. Prior to the initiation, 14 Union producers had provided the information requested for the selection of the sample and expressed their willingness to cooperate with the Commission. On that basis, the Commission provisionally selected a sample of three producers, which were found to be representative of the Union industry in terms of volume of production and sales of the like product in the Union. The sampled Union producers accounted for 26 % of the estimated total production of the Union industry and for 28 % of the total sales volume of the Union industry to unrelated customers in the Union during the review investigation period (RIP). The Commission invited interested parties to comment on the provisional sample. No comments were received and the provisional sample was thus confirmed.

(15) In order to decide whether sampling was necessary and, if so, to select a sample, the Commission asked the ten unrelated importers identified in the request to provide the information specified in the Notice of Initiation. None of them came forward.

(16) To decide whether sampling was necessary with regard to the exporting producers and, if so, to select a sample, the Commission asked all known exporting producers in the PRC to provide the information specified in the Notice of Initiation. In addition, the Commission asked the Mission of the People’s Republic of China to the European Union to identify and/or contact other exporting producers, if any, that could be interested in participating in the investigation.

(17) No exporting producer returned the sampling form. Subsequently, on 2 August 2024 the Commission informed the Government of China (‘GOC’) that there was no cooperation by exporting producers in the PRC and thus it would apply the provisions of Article 28 of the basic Regulation with regard to the findings of continuation of subsidisation.

(18) The Commission sent questionnaires to the three sampled Union producers, the applicant and the GOC. Questionnaires for the Union producers, unrelated importers, users and the exporting producers in the PRC were also made available online (9), on the day of initiation of the investigation.

(19) Replies to the questionnaires were received from the three sampled Union producers and the applicant.

(21) On 06 June 2025, the Commission disclosed the essential facts and considerations on which basis it intended to maintain the countervailing duties in force. All parties were granted a period within which they could make comments on the disclosure.

(22) No parties made any comments on the final disclosure. No parties requested a hearing.

(23) The product under review is the same as the one in the original investigation, that is certain organic coated steel products, i.e. flat-rolled products of non-alloy and alloy steel (not including stainless steel) which are painted, varnished or coated with plastics on at least one side, excluding so-called ‘sandwich panels’ of a kind used for building applications and consisting of two outer metal sheets with a stabilising core of insulation material sandwiched between them, excluding those products with a final coating of zinc-dust (a zinc-rich paint, containing by weight 70 % or more of zinc), and excluding those products with a substrate with a metallic coating of chromium or tin, currently falling within CN codes ex 7210 70 80 , ex 7212 40 80 , ex 7225 99 00 and ex 7226 99 70 (TARIC codes 7210 70 80 11, 7210 70 80 91, 7212 40 80 01, 7212 40 80 21, 7212 40 80 82, 7225 99 00 11, 7225 99 00 91, 7226 99 70 11 and 7226 99 70 91) (‘the product under review’ or ‘OCS’).

(24) The product under review is obtained by applying an organic coating to flat-rolled steel products. The organic coating provides protection and aesthetic and functional properties to steel products.

(25) OCS is mainly used in the construction sector and for further processing in products used in construction. Other applications include home appliances.

(26) The product concerned by this investigation is the product under review originating in the People’s Republic of China (‘the product concerned’).

(28) In accordance with Article 18 of the basic Regulation, and as stated in the Notice of Initiation, the Commission examined first whether the expiry of the existing measures would be likely to lead to a continuation of subsidisation.

(29) On 21 May 2024 the Commission sent a questionnaire to the GOC together with specific appendixes which the GOC was asked to forward for banks and other financial institutions known by the GOC to have provided loans to the industry concerned as well as to the producers and distributors of the hot-rolled and cold-rolled steel providing inputs for the production of the product under review.

(30) The Commission received no reply to above questionnaires either from the GOC nor financial institutions or upstream companies.

(31) As explained in recital 17, the Commission informed the Chinese authorities by Note Verbale of 2 August 2024, that following non-cooperation from the GOC and the Chinese exporting producers of the product under review, the Commission intended to make its findings on the basis of the facts available, in accordance with Article 28(1) of the basic Regulation. They were also informed that a finding based on facts available may be less favourable than if the GOC and exporting producers cooperated.

(32) No comments in this regard were received. The Commission, in accordance with Article 28 of the basic Regulation, considered the use of facts available necessary in order to establish the continuation of subsidy practices of China in the organic coated steel industry.

(33) On the use of facts available, the Appellate Body has recalled that Article 12.7 of the SCM Agreement permits the use of facts on record solely for the purpose of replacing information that may be missing, in order to arrive at an accurate subsidisation or injury determination. In particular, the Appellate Body has explained that ‘there has to be a connection between the “necessary information” that is missing and the particular “facts available” on which a determination under Article 12.7 is based.’ Therefore, ‘an investigating authority must use those “facts available” that “reasonably replace the information that an interested party failed to provide”, with a view to arriving at an accurate determination.’ The Appellate Body has further explained that ‘the facts available’ refers to those facts that are in the possession of the investigating authority and on its written record. As determinations made under Article 12.7 are to be made on the basis of ‘the facts available’, ‘they cannot be made on the basis of non-factual assumptions or speculation.’ Furthermore, in reasoning and evaluating which facts available can reasonably replace the missing information, ‘all substantiated facts on the record must be taken into account’ by an investigating authority. The Appellate Body has explained that ascertaining the ‘reasonable replacements for the missing “necessary information” involves a process of reasoning and evaluation’ on the part of the investigating authority. Where there are several facts available to an investigating authority that it needs to choose from, ‘it would seem to follow naturally that the process of reasoning and evaluation would involve a degree of comparison’ in order to arrive at an accurate determination. The evaluation of the ‘facts available’ that is required, and the form it may take, depend on the particular circumstances of a given case, including the nature, quality, and amount of evidence on the record and the particular determinations to be made. The nature and extent of the explanation and analysis required will necessarily vary from determination to determination (10).

(35) Before analysing the alleged subsidisation in the form of specific subsidies or subsidy programmes (sections 3.4 and following below) the Commission assessed government plans, projects and other documents, which were relevant for more than one of the subsidies or subsidy programmes. It found that all subsidies or subsidy programmes under assessment form part of the implementation of the GOC’s central planning for the following reasons.

(36) The Commission in the current investigation established that the main document of relevance during the review investigation period was the 14th FYP on developing the raw materials industry, such as the steel one. Steel industry being an important part of the raw materials industry, it represents a key field that shapes China’s international competitive edges, and the ‘main battlefield’ for the restructuring of the industrial foundation and green industrial development. The Plan carries an emphasis on cultivating a group of leading enterprises in the industrial chain with ecological leadership and core competitiveness.

(37) The Preamble to China’s 14th FYP, published in March 2021 and covering the review investigation period, confirms the strategic role to be played by steel in the Chinese economy: ‘The raw material industry (15) is the foundation of the real economy, a basic industry that supports the development of the national economy and a key field for gaining international competitive advantages. It is the main force in the reengineering of the industrial base and the main battlefield for the green development of the industry. In order to implement the “Fourteenth Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Outline of Long-Term Goals for 2035”, and to improve the quality and efficiency of the development of the raw material industry, this plan is formulated’

(39) The Hebei Province plan from 2023 provides: ‘In order to speed up the formation of innovative capacities of steel enterprises, create an important engine for the development of new industrialisation, further enhance core competitiveness, promote the transformation of “steel to materials, manufacturing to services”, and promote high-end, smart and green development based on the actual situation of our province …..’

(40) The Chongqing City plan states: ‘Advanced steel materials. Vigorously develop high-quality construction steel, Automobile and motorcycle steel, high-quality special steel, and high-end stainless steel as well as a scrap steel recycling system. [In the field of] high-quality construction steel, concentrate on the development of weathering steel, large-size section steel, steel for offshore engineering as well as high-strength structural steel, and expedite the development of high-strength earthquake-resistant steel bars, high-ductility cold-rolled ribbed steel bars and other products for building structures. Supports applications such as hot-dip galvanised chromium-free passivated sheet and chromium-free colour-coated plates. In the field of automobile and motorcycle steel, expedite R&D and industrialisation of ultra-high-strength steel and hot-formed steel, support the development of bar and wire rod for application in automobiles and motorcycles, and accelerate the development and application of steel for energy-saving and new energy vehicles, advanced rail transit equipment and other products. In the field of high-quality special steel, focus on the development of high-temperature resistant steel, corrosion-resistant steel, non-oriented silicon steel, bearing steel, high-performance tool and die steel, high-performance oriented electrical steel, low-expansion steel, amorphous alloy, high-temperature alloy, and other products. Cultivate and develop high-quality iron-based alloy powders and steel for application in semiconductor manufacturing. In the field of high-end stainless-steel concentrate on the development of stainless-steel sheet, strip, wire, rod as well as stainless steel used in decorative pipes, fluid welded pipes and seamless pipes. Support the construction of a scrap steel recycling system, vigorously develop the intravenous industry [industries with a special emphasis on the reuse and recycling of waste materials] and encourage short-process smelting to produce high-quality special steel and stainless steel’.

(41) The Anshan City 14th FYP sets long terms goals up to 2035. The preamble celebrates the achievements of the 13th five-year plan as follows: ‘The optimisation and upgrading of traditional industries with steel, magnesite, and equipment manufacturing as the “one wing” have achieved remarkable results. Several major projects to promote industrial upgrading, such as Kobe Steel’s high-strength automotive sheets and Zizhu steel rail, have been successfully implemented. […] Supply-side structural reform has achieved remarkable results. “ditiaogang” [sub-standard steel] enterprises have been dismantled, 4,6 million tonnes of backward production capacity have been eliminated, and the improvement of “many, small, scattered and chaotic” mines has achieved remarkable results’.