Commission Regulation (EC) No 1497/2001 of 20 July 2001 imposing provisional anti-dumping duties on imports of urea originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the Ukraine, accepting an undertaking offered by the exporting producer in Bulgaria and terminating the proceeding as regards imports of urea originating from Egypt and Poland

• Published date: 21 July 2001
• Subject Matter: Dumping
• Official Gazette Publication: Official Journal of the European Communities, L 197, 21 July 2001

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32001R1497

Commission Regulation (EC) No 1497/2001 of 20 July 2001 imposing provisional anti-dumping duties on imports of urea originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the Ukraine, accepting an undertaking offered by the exporting producer in Bulgaria and terminating the proceeding as regards imports of urea originating from Egypt and Poland

Official Journal L 197 , 21/07/2001 P. 0004 - 0027

Commission Regulation (EC) No 1497/2001

of 20 July 2001

imposing provisional anti-dumping duties on imports of urea originating in Belarus, Bulgaria, Croatia, Estonia, Libya, Lithuania, Romania and the Ukraine, accepting an undertaking offered by the exporting producer in Bulgaria and terminating the proceeding as regards imports of urea originating from Egypt and Poland

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community(1), as last amended by Regulation (EC) No 2238/2000(2), and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

1. Investigations concerning other countries

(1) In March 2000, the Commission initiated a review(3) of the definitive anti-dumping duties imposed by Council Regulation (EC) No 477/95(4) on imports of urea originating in the Russian Federation ("Russia"), pursuant to Article 11(2) of Regulation (EC) No 384/96 ("the basic Regulation"). As a result of this review, the Council, by Regulation (EC) No 901/2001(5), imposed a definitive anti-dumping duty on imports of urea originating in Russia.

2. Present investigation

Initiation

(2) On 6 September 2000 a complaint was lodged by the European Fertiliser Manufacturers Association (EFMA), on behalf of producers representing a major proportion, in this case more than 80 % of the Community production of urea. The complaint contained evidence of dumping of the said product and of material injury resulting therefrom, which was considered sufficient to justify the initiation of a proceeding.

(3) Consequently, on 21 October 2000, the Commission announced by a notice ("notice of initiation") published in the Official Journal of the European Communities(6) the initiation of an anti-dumping proceeding with regard to imports into the Community of urea originating in Belarus, Bulgaria, Croatia, Egypt, Estonia, Libya, Lithuania, Poland, Romania and the Ukraine.

Investigation

(4) The Commission officially advised the exporting producers, the importers and the users known to be concerned as well as the representatives of the exporting countries concerned and the complainant Community producers about the initiation of the proceeding. Interested parties were given the opportunity to make their views known in writing and to request a hearing within the time limit set out in the notice of initiation.

(5) The Commission sent questionnaires to 13 Community producers, all exporters/producers, all importers as well as all users known to be concerned as well as to all parties which made themselves known within the deadline set out in the notice of Initiation. Replies to these questionnaires were received from nine Community producers, 17 exporting producers, 10 importers, and seven users of urea.

The Commission sought and verified all the information deemed necessary for the purpose of a provisional determination of dumping, injury and Community interest. Verification visits were carried out at the premises of the following companies:

Community producers

- Agrolinz Melamin GmbH, Linz

- Grande Paroisse SA, Paris

- Hydro Agri Brunsbüttel, Brunsbüttel

- Hydro Agri Sluiskil BV, Sluiskil

- Hydro Agri Italia, Milan

- SKW Stickstoffwerke Piesteritz BV, Wittenberg

Unrelated importers in the Community

- Helm Dungemittel GmbH, Hamburg

- Unifert France, Sête

- Usborne Fertiliser Ltd, Southampton

Users in the Community

- National Farmers' Union of England and Wales, London

- Framlingham Farmers Ltd, Framlingham

- Neste Chemicals - Sadepan Chimica srl, Helsinki

Exporting producers

Bulgaria

- Chimco AD, Vratza, and its related company Chimco Trade, Varna

Croatia

- Petrokemija d.d., Kutina

Egypt

- El-Delta Company for Fertilisers and Chemical Industries (Asmeda), El Mansura

- Abu Qir Fertilisers and Chemical Industries, Alexandria

Estonia

- JSC Nitrofert, Kothla Jarve

Lithuania

- Joint Stock Company Achema, Jonava and its related company Joint Stock Company Agrochema, Jonava

Libya

- National Oil Corporation and its related company Sirte Oil Company, Tripoli and Marsa-el-Brega

Poland

- Zaklady Chemiczne "Police", Police

Romania

- S.C. Amonil SA, Slobozia

- Petrom SA Sucursala Doljchim Craiova, Craiova

- Sofert SA, Bacau

Ukraine

- Open Joint Stock Company Concern Stirol, Gorlovka

- Open Joint Stock Company Cherkassy Azot, Cherkassy

- Joint Stock Company DniproAzot, Dniprodzerzhinsk(7)

Related importers

- Chempetrol Overseas Ltd, Malta

Producers in the analogue country (USA)

- Terra Industries Inc., Sioux City.

(6) The investigation of dumping and injury covered the period from 1 July 1999 to 30 June 2000 ("the investigation period" or "IP"). As for the trends relevant for the assessment of injury, the Commission analysed the period from 1996 to the end of the investigation period ("the period considered").

(7) Several parties objected to the choice of the dates determining the IP. Some of these claimed that the export prices increased shortly after the end of the IP selected by the Commission and thus that the 12-month IP should end in September 2000. Other parties suggested that an 18-month period starting in January 1999 would allow a more representative analysis of the situation.

(8) These submissions had to be rejected. When selecting the IP, the Commission, in line with Article 6(1) of the basic Regulation, had to ensure that the data of the period leading to the most representative results should be taken into account. In this regard, it was found that the "agricultural season" in the Community rather than another period would be the most appropriate choice due to the fact that it conditions the sales of urea in the Community and a number of internal reporting systems are adapted to this period. It was therefore concluded that an IP based on the "agricultural season" would allow for the most reliable and meaningful findings as to the existence of injurious dumping and Community interest.

3. Product concerned and like product

Product concerned

(9) The product concerned by this proceeding, urea, is manufactured essentially by combining ammonia and carbon dioxide. The normal raw material for producing both ammonia and carbon dioxide is natural gas. However, they can also be obtained from so-called cracked oil, a by-product from the manufacture of petroleum. Urea may take the form of a liquid or a solid.

(10) Solid urea itself can be subdivided into a prilled and a granular form. Both are pellets, with the granular form being normally larger and harder than the prilled form. Solid urea has both agricultural and industrial applications. Agricultural grade urea can be used either as a fertiliser, which is spread onto the soil, or as an animal feed additive. Industrial grade urea is a raw material for certain glues and resins. Liquid urea can be used both as a fertiliser and for industrial purposes.

(11) All grades of urea have the same basic physical, and chemical characteristics, with only the final stage of manufacture determining whether prills, granules, or solution are produced. Also, it was found that the form of the urea does not necessarily determine the use to which it is put. Therefore, they may be regarded for the purposes of this investigation as a single product. The product concerned falls within the CN codes 3102 10 10 and 3102 10 90.

Like product

(12) It is provisionally determined that the product produced in the countries concerned and exported to the Community is alike in all respects to the product sold on the domestic markets of the exporting countries as well as to the product produced by Community producers and sold on the Community market. The same is true with regard to the product produced and sold in the USA which served as a market economy third country for Belarus and Ukraine. All these products were therefore considered to be alike within the meaning of Article 1(4) of the basic Regulation.

B. DUMPING

(13) Eight countries subject to the present proceeding are market economy countries, i.e. Bulgaria, Croatia, Egypt, Estonia, Libya, Lithuania, Poland and Romania. Out of the two remaining two countries, Belarus is considered as a non-market economy country while with regard to Ukraine normal value will be established in the same way as in market economy countries provided that the conditions set out in Article 2(7)(b) and (c) of the basic Regulation are met. For this reason, market economy countries, on the one hand, and Belarus and Ukraine, on the other are considered separately.

MARKET ECONOMY COUNTRIES

1. General methodology

(14) The general methodology set out hereinafter has been applied for all exporting market economy countries concerned and for those exporting producers in the Ukraine which qualified for market economy status ("MES"). The presentation of the findings on dumping for each of the countries concerned therefore only describes what is specific for each exporting country.

Normal value

(15) As far as the determination of normal value is concerned, the Commission first established, for each exporting producer, whether its total domestic sales of urea were representative in comparison with its total export sales to the Community. In accordance with Article 2(2) of the basic Regulation, domestic sales were considered representative when the total domestic...