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

(242) The Chinese database shows that in the recent past China exported significant volumes to countries outside the Union at low prices. In 2020-2023 Chinese FOB prices to the Union were between 27 % and 63 % higher than for instance to Türkiye (the former) or Thailand (the latter), China’s main export market for this product. During the review investigation period, the volumes exported to countries outside the Union were bigger than the total Union industry production and the apparent consumption in the Union. Because of the attractiveness of the Union market in terms of pricing, openness (there are no customs duties for this product) and increased apparent consumption, it is considered that if the measures are terminated, Chinese exporters are likely to re-direct significant volumes of OCS to the more lucrative Union market. The fact that the Union recently adopted safeguards on certain steel products, including OCS, does not alter this conclusion. The import volumes under the tariff rate quotas are set at levels which may allow China to export significant amounts of OCS.

(243) The market for OCS products is very price competitive as the competition mainly takes place on the basis of prices. The potential pressure on the Union industry’s prices is further exacerbated by the fact that, according to the request, Chinese sales usually take place for relatively big quantities. If cheap and subsidised imports are sold in significant quantities on the Union market, the Union producers will lose large sales volumes. The ability to raise capital and to invest could be hindered if the profitability of Union producers drops further or becomes negative.

(244) In view of the above, it is concluded that the absence of measures would in all likelihood result in a significant increase of subsidised imports from China at injurious prices, and therefore further aggravate the injurious situation of the Union industry.

(245) In accordance with Article 31 of the basic Regulation, the Commission examined whether maintaining the existing countervailing measures would be against the interest of the Union as whole. The determination of the Union interest was based on an appreciation of all the various interests involved, including those of the Union industry, importers and users.

(246) The investigation showed that should the measures expire, this would likely have a significant negative effect on the Union industry. The Union industry’s situation would quickly deteriorate in terms of lower sales volumes and sales prices resulting in a strong decrease in profitability. The continuation of measures would allow the Union industry to further exploiting its potential on a Union market that is a level-playing field.

(247) Therefore, maintaining the countervailing measures in force is in the interest of the Union industry.

(248) As mentioned in recital 15 above, ten known importers were contacted in this investigation and invited to cooperate. None came forward or cooperated in any way in the investigation.

(249) It is recalled that in the original investigation it was found that, given the importers’ profits and sources of supply, any negative impact of the imposition of measures on importers, if any, would not be disproportionate.

(250) In the current investigation there is no evidence on file suggesting the opposite, and it can thus accordingly be confirmed that the measures currently in force had no substantial negative effect on the financial situation of importers and that the continuation of the measures would not unduly affect them.

(251) 59 known users were contacted in this investigation and invited to cooperate. No user came forward or cooperated in any way in the investigation.

(252) It is recalled that in the original investigation ten users submitted questionnaire replies. At that time it was found that, given the users’ profits and sources of supply, the impact of the imposition of measures on users, if any, would not be disproportionate.

(253) In the current investigation there is no evidence on file suggesting that the measures in force affected them in any negative way. In fact the applicant submitted evidence that key users experienced improvements in profitability during the period under review. According to the request, the measures in place do not have a sizeable impact on users and consumers as OCS represents a negligible part of the cost of downstream products (e.g. 0,42 EUR of the cost of producing a washing machine or 0,4 % of the investment of an empty factory building).

(254) On that basis it is confirmed that the measures currently in force had no substantial negative effect on the financial situation of users and that the continuation of the measures would not unduly affect them.

(255) Therefore, the Commission concluded that there are no compelling reasons of Union interest against the maintenance of the definitive countervailing measures on imports of organic coated steel originating in China.

(256) On the basis of the conclusions reached by the Commission on recurrence of subsidy, recurrence of injury and Union interest, the countervailing measures on organic coated steel from China should be maintained.

(257) To minimise the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual countervailing duties. The application of individual countervailing 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 countervailing duty applicable to ‘all other imports originating in the People’s Republic of China’.

(258) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of countervailing 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.

(259) 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 23(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.

(260) The individual company countervailing duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in China and produced by the named legal entities. Imports of the organic coated steel 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 People’s Republic of China’. They should not be subject to any of the individual countervailing duty rates.

(261) A company may request the application of these individual countervailing duty rates if it changes subsequently the name of its entity. The request must be addressed to the Commission. The request must contain all the relevant information enabling to demonstrate that the change does not affect the right of the company to benefit from the duty rate which applies to it. If the change of name of the company does not affect its right to benefit from the duty rate which applies to it, a regulation about the change of name will be published in the Official Journal of the European Union.

(262) In view of Article 109 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council (73) when an amount is to be reimbursed following a judgment of the Court of Justice of the European Union, the interest to be paid should be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union on the first calendar day of each month.

(263) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 15(1) Regulation (EU) 2016/1036,

HAS ADOPTED THIS REGULATION:

Article 1

In cases where the countervailing duty has been subtracted from the anti-dumping duty for certain exporting producers, refund requests under Article 21 of Regulation (EU) 2016/1037 shall also trigger the assessment of the dumping margin for that exporting producer prevailing during the refund investigation period. The amount to be reimbursed to the applicant for refund cannot exceed the difference between the duty collected and the combined countervailing and anti-dumping duty established in the refund investigation.

Article 2

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, 24 July 2025.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 176, 30.6.2016, p. 55, ELI: http://data.europa.eu/eli/reg/2016/1037/oj, as last amended by Regulation (EU) 2018/825 of the European Parliament and of the Council of 7 June 2018.

(2) Council Implementing Regulation (EU) No 215/2013 of 11 March 2013 imposing a countervailing duty on imports of certain organic coated steel products originating in the People’s Republic of China (OJ L 73, 15.3.2013, p.16, ELI: http://data.europa.eu/eli/reg_impl/2013/215/oj).

(3) Council Implementing Regulation (EU) No 214/2013 of 11 March 2013 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain organic coated steel products originating in the People’s Republic of China (OJ L 73, 15.3.2013, p.1, ELI: http://data.europa.eu/eli/reg_impl/2013/214/oj).

(4) Commission Implementing Regulation (EU) 2019/688 of 2 May 2019 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 (OJ L 116, 3.5.2019, p. 39, ELI: http://data.europa.eu/eli/reg_impl/2019/688/oj).

(5) Notice of impending expiry of certain countervailing measures (OJ C 274, 3.8.2023, p.18).

(6) Notice of initiation of an expiry review of the anti-subsidy measures applicable to imports of certain organic coated steel products originating in the People’s Republic of China (OJ C, C/2024/2975, 30.4.2024, ELI: http://data.europa.eu/eli/C/2024/2975/oj).

(7) Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of certain organic coated steel products originating in the People’s Republic of China (OJ C, C/2024/2970, 30.4.2024, ELI: http://data.europa.eu/eli/C/2024/2970/oj).

(8) 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 (OJ L 176, 30.06.2016, p. 21, ELI: http://data.europa.eu/eli/reg/2016/1036/oj).

(9) Trade Defence Investigations, https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2720.

(10) WT/DS437/AB/R, United States – Countervailing Duty Measures on Certain Products from China, Appellate Body Report of 18 December 2014, paragraphs 4.178 – 4.179. This Appellate Body Report quoted WT/DS295/AB/R, Mexico – Definitive Anti-Dumping Measures on Beef and Rice, Appellate Body Report of 29 November 2005, paragraph 293; and WT/DS436/AB/R, United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India, Appellate Body Report of 8 December 2014, paragraphs 4.416-4.421.

(11) Commission Implementing Regulation (EU) No 2023/1123 of 7 June 2023 imposing a definitive countervailing duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in 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 (OJ L148, 7.6.2023, p. 84, ELI: http://data.europa.eu/eli/reg_impl/2023/1123/oj).

(12) Commission Implementing Regulation (EU) No 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China (OJ L, L/2024/2754, 29.10.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/2754/oj).

(13) Commission Implementing Regulation (EU) No 2025/796 of 24 April 2025 imposing a definitive countervailing duty on imports of mobile access equipment originating in the People’s Republic of China and amending Implementing Regulation (EU) 2025/45 imposing a definitive anti-dumping duty on imports of mobile access equipment originating in the People’s Republic of China (OJ L, L/2025/796, 25.4.2025, ELI: http://data.europa.eu/eli/reg_impl/2025/796/oj).

(14) https://ec.europa.eu/transparency/documents-register/detail?ref=SWD(2024)91&lang=en.

(15) The raw material industry includes petrochemical, steel, non-ferrous metals, building materials and other industries. Thus, steel is specifically cited as a strategic industry and a beneficiary of all GOC policies to promote favoured industries.

(16) A significant OCS producer.

(17) Chapter III, Article 12 of Decision No. 40.

(18) See recital 182 of the original investigation.

(19) Article 3(1)(a)(iii) of the basic Regulation.

(20) Commission Implementing Regulation (EU) 215/2013 of 11 March 2013 imposing a countervailing duty on imports of certain organic coated steel products originating in the People’s Republic of China, OJ L 73/16, 15.3.2013. See recitals 49 to 73.

(21) WT/DS379/AB/R (US — Anti-Dumping and Countervailing Duties on Certain Products from China), Appellate Body Report of 11 March 2011, DS 379, paragraph 318. See also WT/DS436/AB/R (US — Carbon Steel (India)), Appellate Body Report of 8 December 2014, paragraphs 4.9-4.10, 4.17-4.20 and WT/DS437/AB/R (United States — Countervailing Duty Measures on Certain Products from China) Appellate Body Report of 18 December 2014, paragraph 4.92.

(22) See recitals 87 to 98.

(23) See recitals 74 to 83 and 99-100.

(24) China’s status as a non-market economy, US Department of Commerce A-570-056, 26 October 2017, p. 57, https://enforcement.trade.gov/download/prc-nme-status/prc-nme-review-final-103017.pdf.

(25) Articles 7 and 15 of the Constitution of the People’s Republic of China, Order No 35 of the NDRC – Policies for the development of Iron and Steel Industry (2005), Decision No 40 of the State Council (2011).

(26) Inquiry concerning the continuation of anti-dumping and countervailing measures applying to hollow structural sections exported from the People’s Republic of China, Republic of Korea, Malaysia and Taiwan, Anti-Dumping Commission, Australian Government, Final Report No 379, May 2017, p. 89.

(27)

1) Countervailing Duty Investigation on Food Domestic Dry Containers from the People’s Republic of China: Decision Memorandum for a Preliminary Determination, C-570-015, 22 September 2014, p.14

2) China’s status as a non-market economy, United States Department of Commerce, A-570-053, 26 October 2017, p. 65, https://enforcement.trade.gov/download/prc-nme-status/prc-nme-review-final-103017.pdf.

3) Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products from the People’s Republic of China, C-570-027, 24 May 2016, p. 15.

(28) Ibid. point 2, p. 87.

(29) See chapter 14 of the Report.

(30) See recital 107 to 118.

(31) See chapter 9 of the Report.

(32) See recitals 68 to 74.

(33) See recitals 437 to 450 and 357 to 361 respectively.

(34) See recital 144.

(35) See recital 95.

(36) See chapter 10 of the Report.

(37) Article 3(1)(a)(i) of the basic Regulation.

(38) See recitals 165 to 180.

(39) See recitals 182 to 185.

(40) See recitals 57 to 61, recitals 168 to 216 and recitals 116 to 172 respectively.

(41) See chapter 6.3 of the Report.

(42) See recitals 95 to 104 and annex 3.3-1 of the request.

(43) https://www.shanghai.gov.cn/nw31406/20200820/0001-31406_1426769.html.

(44) http://www.eximbank.gov.cn/info/circus/202301/t20230120_46359.html.

(45) https://finance.hebnews.cn/2023-10/23/content_9087341.htm.

(46) http://www.csteelnews.com/qypd/qydt/202201/t20220105_58447.html.

(47) See recitals 105 to 107 and annex 3.3-2 of the request.

(48) IMF Working Paper ‘Resolving China’s Corporate Debt Problem’, by Wojciech Maliszewski, Serkan Arslanalp, John Caparusso, José Garrido, Si Guo, Joong Shik Kang, W. Raphael Lam, T. Daniel Law, Wei Liao, Nadia Rendak, Philippe Wingender, Jiangyan, October 2016, WP/16/203.

(49) China bond market insight 2021, https://assets.bbhub.io/professional/sites/10/China-bond-market-booklet.pdf.

(50) See recitals 217 to 243 and recitals 173 to 184 respectively.

(51) See recitals 316 to 344.

(52) See recitals 322, 329, 337 of the original Regulation.

(53) 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 (OJ L128, 14.5.2011, p. 18).

(54) Federal Register Vol.73, No 227, page 70961 of 24 November 2008.

(55) Preliminary Affirmative Countervailing Duty Determination of 6 September 2011. Federal Register 2011-22720.

(56) Federal Register Vol.75, No.111, page 32902 of 10 June 2010.

(57) Federal Register Vol.74, No.117, page 29180 of 19 June 2009.

(58) Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of 17 October 2007; Federal Register C-570-907.

(59) See recitals 95 to 113.

(60) See recitals 80 to 85 and recitals 91 to 93.

(61) MySteel Annual Report: Market review of colour-coated coils in 2022 and outlook for 2023 (‘MySteel Annual Report 2022’). Available at https://m.mysteel.com/23/0110/11/2D53D06744974F96_abc.html (last viewed 24 April 2025). MySteel Annual Report: Market review of colour-coated coils in 2023 and outlook for 2024 (‘MySteel Annual Report 2023’). Available at https://m.mysteel.com/a/24010418/66232834598618F7_abc.html (last viewed 24 April 2025).

(62) MySteel Annual Report 2022.

(63) MySteel Annual Report 2023.

(64) MySteel Annual Report 2022.

(65) MySteel Annual Report 2023.

(*1)  Absence of statistical data for 2020 – the indicated volume and value for 2020 is an estimation, representing the arithmetic average of the period 2021-RIP.

(66) Latest developments in steelmaking capacity, OECD: pdf.

(67) Latest developments in steelmaking capacity and outlook until 2026, ref.: https://one.oecd.org/document/DSTI/SC(2024)3/FINAL/en/pdf.

(68) GMK Center provides consulting, analysis and sustainability services for the steel industry, ref.: https://gmk.center/en/

(69) Steel consumption in China may reach 960 million tonnes in 2023 — Global steel news.

(70) https://worldsteel.org/data/annual-production-steel-data/?ind=P1_crude_steel_total_pub/CHN/IND.

(71) Latest developments in steelmaking capacity, OECD: pdf.

(72) Mysteel (Chinese source), OCS capacity research , ref.: https://m.mysteel.com/a/24010418/66232834598618F7_abc.html.

(73) Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).