Commission Implementing Regulation (EU) 2025/1720 of 6 August 2025 imposing a definitive anti-dumping duty on imports of certain aluminium foil in rolls originating in the People’s Republic of China following an expiry review under Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council

• (147) The unit cost of production increased by 55 % over the period considered, following a similar trend as the sales price. From 2020 to 2021, the cost of production increased by 13 %. The surge of unit cost of production in the RIP was caused by a steep increase in energy and commodity prices, due to a global demand rebound following the COVID-19 pandemic and the military aggression in Ukraine Although production costs increased significantly over the period considered, the Union industry was, with the exception of 2021, able to increase its sales prices accordingly to remain profitable.

4.6.2.7.   Labour costs

• (148) The average labour costs of the sampled Union producers developed over the period considered as follows:

Table 10

Average labour costs per employee

• (149) During the period considered average labour costs increased by 24 %. While the number of employees in the RIP decreased as mentioned in recital 142, the average cost per employee increased compared to 2020.

4.6.2.8.   Inventories

• (150) Stock levels of the sampled Union producers developed over the period considered as follows:

Table 11

Inventories

• (151) Over the period considered the stock of AHF of the Union industry decreased by 38 %. The stock had a peak in 2022 of 18 % and a sharp decrease during the review investigation period by 56 percentage points. This is in line with the decrease in the production and production capacity.

4.6.2.9.   Profitability, cash flow, investments, return on investments and ability to raise capital

• (152) Profitability, cash flow, investments and return on investments of the sampled Union producers developed over the period considered as follows:

Table 12

Profitability, cash flow, investments and return on investments

• (153) The Commission established the profitability of the sampled Union producers by expressing the pre-tax net profit of the sales of the like product to unrelated customers in the Union as a percentage of the turnover of those sales.

• (154) Overall, the profitability of the Union industry increased by 2 percentage points from 6 % to 8 % over the period considered. It first decreased from 6 % to minus 2 % in 2021 and then increased to 5 % in 2022 and to 8 % in the RIP.

• (155) Net cash flow is the ability of the Union producers to self-finance their activities. The trend in net cash flow increased during the period considered by 99 %. It first decreased between 2020 and 2021 by 112 % and from then on increased until the RIP.

• (156) Between 2020 and the review investigation period, investments decreased by 46 %. In general, investments aimed at improving quality and greening production. Return on investments is the profit in percentage of the net book value of investments. Return on investments sharply fluctuated over the period considered. From 2020 to the review investigation period the fluctuations ranged from – 114 % to 189 %. From 2020 to 2021 it strongly dropped, followed by a strong rebound in the review investigation period, to reach a level of 110 percentage points above the starting point of the period considered in 2020.

4.6.2.10.   Conclusion on injury

• (157) The measures in force ensured protection to the Union industry, allowing it to increase its market share, increase prices in line with the increased costs and to reach a profitable level and a positive return on investment at the end of the period considered.

• (158) On the other hand, the Union industry experienced a decrease in production, production capacity and a decreasing capacity utilisation.

• (159) Furthermore, despite the measures in force, Chinese exporters continued to export the product concerned in increasing volumes, from negligible quantities in 2020 to 640 tonnes during the RIP and to expand their market share, which went up from almost 0 % to 1 % during this period.

• (160) At the same time, imports from third countries increased both in absolute volume and in market share during the period considered. Although the average prices of these imports were below those of the Union industry, the Commission, as set out in recital 127 concluded that the Union industry did not suffer material injury during the review investigation period. However, given the price undercutting and the increasing volume of such imports, there is a risk that, in the absence of measures, these imports could cause material injury to the Union industry in the future

• (161) On the basis of the above, the Commission concluded that the Union industry did not suffer material injury within the meaning of Article 3(5) of the basic Regulation during the review investigation period.

5. LIKELIHOOD OF RECURRENCE OF INJURY

• (162) The Commission concluded in recital 161 that the Union industry did not suffer material injury during the review investigation period. Therefore, the Commission assessed, in accordance with Article 11(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury, originally caused by the dumped imports from the PRC if the measures were allowed to lapse.

• (163) Despite the existing measures, the Union market proved to continue being an attractive market for Chinese exporting producers in terms of size and pricing. Chinese imports of the product concerned continued to enter the Union market at significantly dumped prices. The substantial spare capacity in China, combined with trade defence measures in place in several third markets on Chinese exporting producers – highlighting a consistent pattern of dumping – supports the likelihood of recurrence of injury that, should the antidumping measures be allowed to lapse. It would in that case be highly likely that Chinese exports to the Union would rapidly gain market share at the expense of the Union industry, which would face an immediate drop in its sales volumes and an increase in its fixed costs per unit. The increase in fixed costs combined with a decrease in sales prices in a shrinking market would immediately worsen the situation for the Union industry. Consequently, the Union industry would become loss-making, the overall economic situation of the Union industry would be negatively affected, and material injury linked to the dumped/subsidised imports would recur.

5.1.   Imports from third countries

• (164) Import volumes from third countries other than the China significantly increased from 88 tonnes in 2020 to 4 892 tonnes during the review investigation period.

• (165) Since the total Union consumption decreased over the period considered, this increase translated into market share of the imports from third countries over the same period from 0,1 % in 2020 to 8 %.

• (166) While Chinese import prices showed an increasing trend over the period considered, they remained consistently below the prices of the Union industry. More significantly, when compared to the Union target price, the gap is even more pronounced. During the review investigation period, the average price of Chinese imports stood at EUR 5 246 per tonne, whereas the average Union sales price was EUR 5 674 per tonne, and the target price was set at EUR 5 708 per tonne. This persistent undercutting, particularly in relation to the target price, indicates that Chinese imports continue to exert downward pressure on prices in the Union market. In view of this price disparity, and in the absence of trade defence measures, there is a clear risk that such undercutting could lead to material injury to the Union industry in the future.

• (167) The Commission also analysed whether the Chinese weighted export prices to third countries other than the Union, adjusted to a Union landed price, undersold the Union industry when compared with the Union industry target price during the RIP. In view of the lack of cooperation by Chinese exporters, the Commission based its analysis on data in the expiry review request. The analysis identified four third countries where the Chinese exporting producers sold the product concerned during the review investigation period at prices below approximately 35 % of the average Union industry’s target price.

• (168) As explained in Section 3.3.1, there are substantial excess capacities in the PRC, which largely exceed the total Union consumption during the RIP. In addition, the Commission has found no elements that could indicate any significant increase of domestic demand of the product under review in the PRC or in any other third country marked in the near future. The Commission therefore concluded that domestic demand in PRC or in other third country markets could not absorb the available capacity in the PRC.

• (169) In conclusion, the analysis demonstrated – on the basis of facts available – that the Chinese exporting producers were able to sell at prices significantly below the Union target price. In view of the significant spare capacities available in China, it was also noted that large volumes of aluminium foil in roles could potentially be produced to be sold on the EU market. The Commission thus concluded that, should measures be allowed to lapse, the Chinese exporters would be able to exercise significant price pressure and thus cause injury to the Union industry

• (170) Another indication of the Union market’s attractiveness is the fact that since the beginning of the imposition of the measures, there were attempts for circumvention from Chinese exporters which were identified and neutralized in 2021. In its anti-circumvention investigation ³³, the Commission found that Thai producers which are known to export their products to the Union were all subsidiaries of Chinese aluminium household foil producers who are subject to anti-dumping duties when exporting from the PRC.

• (171) Average price of imports from third countries other than the PRC overall increased by 83 % during the period considered but remained below the price levels of the Union industry, as reported in Table 9.

• (172) During the period considered, imports of the product under review from other third countries came mainly from Türkiye, Indonesia, and India.

• (173) Average prices of imports from the PRC decreased by 15 % between 2020 and 2021, increased significantly in 2022 and during the RIP.

• (174) As indicated in recital 113, due to the negligible volume of imports of AHF into the Union during the review investigation period, the price of these sales were not considered as representative and could not be used to draw any conclusions concerning prices of imports from the PRC into the Union and the pricing behaviour of the exporting producers.

• (175) On the basis of the above, the Commission concluded that the absence of measures would, in all likelihood lead to a significant increase in dumped imports from PRC at injurious price. If the measures were allowed to lapse the recovery of the Union industry will be nullified.

5.2.   Export performance of the Union industry

• (176) The volume of exports of the sampled Union producers developed over the period considered as follows:

Table 13

Export performance of the sampled Union producers

• (177) During the period considered the exports of the sampled Union producers decreased by 40 % and the average prices increased by 60 %. The exports of the Union industry to unrelated customers decreased significantly, they followed a similar pattern as the overall Union production which decreased by 16 %.

• (178) Overall, it was concluded that the export performance of the Union industry was negative.

6. UNION INTEREST

• (179) In accordance with Article 21 of the basic Regulation, the Commission examined whether maintaining the existing anti-dumping 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.

6.1.   Interest of the Union industry

• (180) Although the anti-dumping measures had a tempering effect on the volume of dumped imports entering the Union market, as set out in Section 4.6.2.9, the Union industry remained in an instable situation, as confirmed by the negative trends of injury indicators such as production, production capacity, capacity utilisation, employment, export sales and investments.

• (181) Should the measures be allowed to lapse, it is likely that the influx of substantial volumes of dumped imports from the country concerned would cause further injury to the Union industry. This influx would be expected to cause, amongst others, loss of Union market share, decrease in Union sales prices, decrease in Union capacity utilisation and in general a serious deterioration of the Union industry’s financial situation.

• (182) The Commission thus concluded that the continuation of the anti-dumping measures in force would be in the interest of the Union industry.

6.2.   Interest of users and unrelated importers

• (183) The Commission contacted all known users and unrelated importers. No users or unrelated importers came forward and cooperated in this investigation by submitting a questionnaire reply. Given the lack of interest shown by users and unrelated importers, and in the absence of any indications that the conclusions reached in previous investigations had changed, the continuation of the measures was not considered being against the interest of users and importers.

6.3.   Conclusion on Union interest

• (184) On the basis of the above, the Commission concluded that there were no compelling reasons of Union interest against the continuation of the existing measures on imports of aluminium foil in rolls from the PRC.

• (185) Following disclosure, the applicants commented on the European Commission’s decision to maintain anti-dumping duties on aluminium foil rolls from China, indicating that the continuation of the measures will sustain fair competition, prevents market distortion, and supports the continued recovery and sustainability of Union producers. The Commission took good note of this comment.

7. ANTI-DUMPING MEASURES

• (186) On the basis of the conclusions reached by the Commission on continuation and recurrence of dumping, recurrence of injury and Union interest, the anti-dumping measures applicable to imports of aluminium foil in rolls originating in the PRC should be maintained.

• (187) To minimise the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of individual anti-dumping duties. The companies with individual anti-dumping duties must present a valid commercial invoice to the customs authorities of the Member States. The invoice must conform to the requirements set out in Article 1(5) of this Regulation. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to ‘all other companies’

• (188) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of anti-dumping duty and exemptions 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(5) 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 or exemption is justified, in compliance with customs law.

• (189) 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.

• (190) The individual company anti-dumping duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in the PRC and produced by the named legal entities. Imports of the product under review 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 companies’. They should not be subject to any of the individual anti-dumping duty rates.

• (191) A company may request the application of these individual anti-dumping duty rates if it subsequently changes the name of its entity. The request must be addressed to the Commission ³⁴. 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.

• (192) An exporter or producer that did not export the product concerned to the Union during the period that was used to set the level of the duty currently applicable to its exports may request the Commission to be made subject to the anti-dumping duty rate for cooperating companies not included in the sample. The Commission should grant such request, provided that three conditions are met. The new exporting producer would have to demonstrate that: (i) it did not export the product concerned to the Union during the period that was used to set the level of the duty applicable to its exports; (ii) it is not related to a company that did so and thus is subject to the anti-dumping duties; and (iii) it has exported the product concerned thereafter or has entered into an irrevocable contractual obligation to do so in substantial quantities.

• (193) In view of Article 109 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council ³⁵ 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.

• (194) 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

• (a) it did not export the goods described in Article 1(1) originating in the People’s Republic of China during the period between 1 October 2010 to 30 September 2011 (‘original investigation period’);

• (b) it is not related to an exporter or producer subject to the measures imposed by this Regulation, and which have or could have cooperated in the investigation that led to the duty; and

• (c) it has either actually exported the product under review originating in the People’s Republic of China or has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the original investigation period.

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, 6 August 2025.

For the Commission

The President

Ursula VON DER LEYEN

ELI: http://data.europa.eu/eli/reg_impl/2025/1720/oj

ISSN 1977-0677 (electronic edition)