Explanatory Memorandum to COM(2011)87 - Definitive anti-dumping duty on imports of tungsten carbide, tungsten carbide simply mixed with metallic powder and fused tungsten carbide from China

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CONTEXT OF THE PROPOSAL

Grounds for and objectives of the proposal This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community (‘the basic Regulation’), in the expiry review proceeding concerning the anti-dumping duty in force in respect of imports of tungsten carbide, tungsten carbide simply mixed with metallic powder and fused tungsten carbide originating in the People's Republic of China (‘PRC’).

General context This proposal is made in the context of the implementation of the basic Regulation and is the result of an investigation which was carried out in line with the substantive and procedural requirements laid out in the basic Regulation.

Existing provisions in the area of the proposal By Regulation (EEC) No 2737/90 i, the Council imposed a definitive anti-dumping duty of 33% on imports of tungsten carbide and fused tungsten carbide originating in the People’s Republic of China (‘PRC’). By Decision 90/480/EEC i the Commission accepted undertakings given by two major exporters concerning the product subject to measures. Following the withdrawal of the undertakings by the two Chinese exporters concerned, the Commission imposed by Regulation (EC) No 2286/94 i a provisional anti-dumping duty on imports of the product concerned. By Regulation (EC) No 610/95 i, the Council amended Regulation (EEC) No 2737/90 and imposed a definitive duty of 33% on imports of tungsten carbide and fused tungsten carbide. Following a review which had been initiated pursuant to Article 11 i of the basic Regulation (‘the previous review investigation’), these measures were extended for another five-year period by Regulation (EC) No 771/98 i. By Regulation (EC) No 2268/2004 i, following an expiry review, the Council imposed a definitive anti-dumping duty of 33% on imports of tungsten carbide and fused tungsten carbide originating in the PRC. By Regulation (EC) No 1275/2005 i, the Council amended the definition of the product scope to also cover tungsten carbide simply mixed with metallic powder.

Consistency with other policies and objectives of the Union Not applicable.

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

Consultation of interested parties

Interested parties concerned by the proceeding have had the possibility to defend their interests during the investigation, in line with the provisions of the basic Regulation.

Collection and use of expertise

There was no need for external expertise.

Impact assessment This proposal is the result of the implementation of the basic Regulation. The basic Regulation does not provide for a general impact assessment but contains an exhaustive list of conditions that have to be assessed.

1.

LEGAL ELEMENTS OF THE PROPOSAL



Summary of the proposed action On 30 December 2009, the Commission announced by a notice (‘Notice of initiation’), published in the Official Journal of the European Union, the initiation of an expiry review of the anti-dumping measures applicable to imports of tungsten carbide and fused tungsten carbide originating in the PRC. The review was initiated following a substantiated request lodged by the European Association of Metals (Eurometaux) on behalf of Union producers representing a major proportion, in this case more than 85%, of the Union production of tungsten carbide, tungsten carbide simply mixed with metallic powder and fused tungsten carbide. The review investigation found continuing dumping of the product concerned, which, should anti-dumping measures be lifted, would result in the recurrence of injury to the Union industry. It was further established that the lapse of measures would not be in the interest of the Union. Therefore, it is suggested that the Council adopts the attached proposal for a Regulation in order to prolong the existing measures, which should be published in the Official Journal of the European Union by 29 March 2011 at the latest.

Legal basis Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community.

Subsidiarity principle The proposal falls under the exclusive competence of the European Union. The subsidiarity principle therefore does not apply.

Proportionality principle The proposal complies with the proportionality principle for the following reasons:

The form of action is described in the above-mentioned basic Regulation and leaves no scope for national decision.

Indication of how financial and administrative burden falling upon the Union, national governments, regional and local authorities, economic operators and citizens is minimized and proportionate to the objective of the proposal is not applicable.

Choice of instruments

Proposed instruments: regulation.

Other means would not be adequate for the following reason: The basic Regulation does not provide for alternative options.

2.

BUDGETARY IMPLICATION



The proposal has no implication for the Union budget.