Notice concerning an exemption granted to one company in Taiwan from the anti-dumping measures applicable to imports of glyphosate consigned from Taiwan

(2006/C 167/06)

The Commission published in August 2005 a notice (1) (‘the Notice’) informing interested parties of information received concerning a Taiwanese company that was granted an exemption from the anti-dumping measures extended in 2002 to imports of glyphosate consigned from Taiwan. Following such publication, the exemption granted to the company in question has been examined and the following conclusions have been reached.

A.   PROCEDURE

1.   Product and existing measures

The product concerned is glyphosate falling within CN codes ex 2931 00 95 and ex 3808 30 27.

The Council, by Regulation (EC) No 368/1998 (2), imposed definitive anti-dumping measures on imports of glyphosate originating in the People's Republic of China (‘the PRC’). In January 2002, following an anti-circumvention investigation pursuant to Article 13 of Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (3) (‘the basic Regulation’), the Council, by Regulation (EC) No 163/2002 (4), extended the duty imposed on imports of glyphosate originating in the PRC, to imports of glyphosate consigned from Malaysia and Taiwan (whether declared as originating in Malaysia or Taiwan or not), with the exception of those produced by Sinon Corporation in Taiwan and one named company in Malaysia.

Following reviews under Article 11(2) and Article 11(3) of the basic Regulation, the Council, by Regulation (EC) No 1683/2004 (5), imposed a definitive anti-dumping duty on imports of glyphosate originating in the PRC and extended this duty to imports of glyphosate consigned from Malaysia and Taiwan (whether declared as originating in Malaysia or Taiwan or not), again with the exception of those produced by Sinon Corporation in Taiwan and one named company in Malaysia.

2.   Scope of the notice

The information received by the Commission, in the form of a report from a leading company specializing in the supply of company-specific information relating to, inter alia, matters such as shareholdings, indicated the existence of a possible relationship between Sinon Corporation and a second Taiwanese company (‘the second Taiwanese company’), which, if confirmed, may have required the withdrawal of the exemption granted.

The Notice opened an examination to determine whether in fact Sinon Corporation met, at the time the exemption was granted, all the conditions for exemption from the measures extended to imports of glyphosate consigned from Taiwan and, if so, if it continued to meet these conditions.

3.   Examination period

The examination covered the period from 1 July 2004 to 30 June 2005 (the ‘EP’). Data from 2000 up until the EP was collected to examine any changes in the pattern of trade.

4.   Examination

The Commission sent a copy of the Notice to the Taiwanese authorities in order to allow them to comment and to provide information for the examination.

Questionnaires were sent to Sinon Corporation and to the second Taiwanese company. The Commission received a full questionnaire reply from Sinon Corporation and a partial reply from the second Taiwanese company. The information submitted by Sinon Corporation was verified at the company's premises in Taiwan.

A written submission was also received from the European Glyphosate Association which represents producers of glyphosate in the Community.

B.   FINDINGS

1.   Company links

During the examination, the information collected from all sources concerning the existence of a possible relationship between Sinon Corporation and the second Taiwanese company was verified, updated, where necessary, and examined.

An updated report from the company specializing in the supply of company-specific information was requested. This did not show the link between Sinon Corporation and the second Taiwanese company that had previously been reported. The specialist company in question declared that the information reported previously was inaccurate and that the relationship between Sinon Corporation and the second Taiwanese company was merely one of supplier/customer.

The examination confirmed that Sinon Corporation and the second Taiwanese company, both currently and in the past, have supplied and purchased goods to and from each other. It was found that there was a historic and ongoing close working relationship between the two companies. However, on the basis of the information received, the examination and verifications carried out during this examination, no evidence of a relationship between the two companies, other than one of supplier/customer, was found.

2.   Production and supply of glyphosate

Information received and verified during the examination shows that there is evidence of ongoing production of glyphosate by Sinon Corporation in sufficient volumes to account for consignments to the Community. It was established that the company had increased its production capacity for the product concerned. This had been achieved by the conversion of a production line which had been previously dedicated to a different product. The examination also established that all of the glyphosate consigned by Sinon Corporation to the Community was produced by that company. It is therefore considered that Sinon Corporation continues to meet all of the conditions for exemption from the measures extended to imports of glyphosate consigned from Taiwan.

3.   Conclusions

On the basis of the above, it is concluded that there is no evidence to show that the conditions for exemption were not met at the time the exemption was granted, to the extent that no evidence of a relationship between Sinon Corporation and the second Taiwanese company, other than one of supplier/customer was found. Moreover, it is found that the conditions for exemption continue to be met to the extent that the examination established that all of the glyphosate consigned by Sinon Corporation to the Community was produced by that company.

The parties concerned were informed of the findings and conclusions resulting from this examination and were given the opportunity to comment. No comments were received.

C.   TERMINATION OF THE EXAMINATION

On the basis of the above, the current examination is hereby terminated, leaving the exemption from the anti-dumping measures extended to imports of glyphosate consigned from Taiwan, which was granted to Sinon Corporation, in place and unchanged.

If any material information provided by parties during the course of this examination is, at any time in the future, found to have been inaccurate, a further examination may be carried out to consider whether or not the above conclusions should be revised.

(1)  OJ C 200, 17.8.2005, p. 3.

(2)  OJ L 47, 18.2.1998, p. 1. Regulation as last amended by Regulation (EC) No 1086/2000 (OJ L 124, 25.5.2000, p. 1).

(3)  OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(4)  OJ L 30, 31.1.2002, p. 1.

(5)  OJ L 303, 30.9.2004, p. 1.