Notice of initiation of a safeguard investigation concerning imports of steel products

(2018/C 111/10)

The information currently available to the European Commission (‘the Commission’), including the surveillance measures in place (1), has revealed that imports of certain steel products have recently increased sharply, showing that there is sufficient evidence that these trends in imports appear to call for safeguards measures. The Commission has therefore decided to initiate ex officio a safeguard investigation, pursuant to Article 5 of Regulation (EU) 2015/478 of the European Parliament and of the Council (2) and Article 3 of Regulation (EU) 2015/755 of the European Parliament and of the Council (3).

1.   PRODUCTS UNDER INVESTIGATION

The products subject to this investigation are certain steel products (the ‘products concerned’). The products concerned, together with the CN codes within which they are currently classified, are listed in Annex I to this Notice. Those CN codes are given for information purposes only.

2.   INCREASE IN IMPORTS AND INJURY

The information currently available to the Commission indicates that total imports of the products concerned increased from 17,8 million tonnes to 29,3 million tonnes in the period 2013-2017. Imports of the products concerned increased by around 65 % between 2013 and 2016. The main increases took place in 2015 and especially in 2016, when they reached 28,6 million tonnes. Imports of the products concerned have remained at a significant level thereafter. In addition, there have been sudden, recent, significant and sharp increases in imports of each of the products concerned in absolute terms. In addition, the Commission also notes that total imports of the products concerned increased in relative terms as well, i.e. from 7,3 % to 11,6 % in terms of production and from 12,2 % to 17,6 % in terms of consumption. In both instances, the increases manifested themselves during the period 2014-2016 after which imports remained at a relatively high level. The increase in imports appear to be the result of unforeseen developments such as the global overcapacity in steel making and trade measures adopted by a series of third countries during the last years in the context of that global overcapacity.

There is also sufficient evidence showing that the volume and the prices of these imports have caused or are threatening to cause significant overall impairment of the position of the Union industry, based on the economic indicators specified in Article 9 of Regulation (EU) 2015/478 and Article 6 of Regulation (EU) 2015/755. In particular, this evidence shows that imports of the products concerned have had, for some categories of products, among other consequences, a negative impact on the market shares of the Union producers. In addition, the import prices were throughout the period lower than the Union industry's sales prices. This has put significant pressure on the Union industry's sales prices resulting in a negative or a low level of profit. For some of the products concerned, even though the financial situation appears to have improved in 2017, they are still in a fragile situation and vulnerable to a further increase in imports, which is likely to be imminent given the context of an overall steel overcapacity, the increasing number of trade defence measures taken by third countries on steel products and the recent Section 232 measures by the United States of America. The investigation will examine the situation of the products concerned, including the situation of each of the product categories individually, also based on the most recent developments, such as any trade diversion resulting from the US measures.

3.   PROCEDURE

Having determined, after informing the Member States, that there is sufficient evidence to justify the initiation of an investigation, the Commission hereby initiates an investigation pursuant to Article 5 of Regulation (EU) 2015/478 and Article 3 of Regulation (EU) 2015/755.

The investigation will determine whether, as a result of unforeseen developments, the products concerned are being imported into the Union in such greatly increased quantities and/or on such terms or conditions as to cause, or threaten to cause, serious injury to the Union producers of like or directly competing products.

3.1.   Written submissions, questionnaire replies and correspondence

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the known producers of the like or directly competing products and to any known associations of producers, in the Union. The completed questionnaires must reach the Commission within 21 days from the date on which they are sent.

All interested parties including exporting producers, importers and users of the products concerned and their associations are invited to make known their views in writing, submit information and to provide supporting evidence. Representations in a free format should be submitted within 21 days of the date of publication of this Notice in the Official Journal of the European Union. Interested parties may make themselves known by contacting the Commission, preferably by email, immediately but no later than 15 days after the publication of this Notice in the Official Journal of the European Union, and request a questionnaire. The completed questionnaire should be submitted within 21 days from the date on which they are sent.

Any submission of views and information after the above deadlines may be disregarded.

3.2.   Instructions for making written submissions and sending completed questionnaires and correspondence

Information submitted to the Commission shall be free from copyrights. Interested parties, before submitting to the Commission information and/or data which is subject to third party copyrights, must request specific permission to the copyright holder explicitly allowing a) the Commission to use the information and data for the purpose of this trade defence proceeding and b) to provide the information and/or data to interested parties to this investigation in a form that allows them to exercise their rights of defence.

All written submissions, including the information requested in this Notice, completed questionnaires and correspondence provided by interested parties for which confidential treatment is requested shall be labelled ‘Limited’ (1). Parties submitting information in the course of this investigation are invited to reason their request for confidential treatment.

In order to ensure adequate right of defence to all interested parties during the investigation, parties providing ‘Limited’ information are required to furnish non-confidential summaries of it, which will be labelled ‘For inspection by interested parties’. These summaries should be sufficiently detailed to permit a reasonable understanding of the substance of the information submitted in confidence. If a party providing confidential information fails to show good cause for a confidential treatment request or does not furnish a non-confidential summary of it in the requested format and quality, such information may be disregarded.

Interested parties are invited to make all submissions and requests by email including scanned powers of attorney and certification sheets, with the exception of voluminous replies which shall be submitted on a CD-ROM or DVD by hand or by registered mail.

By using email, interested parties express their agreement with the rules applicable to electronic submissions contained in the document ‘CORRESPONDENCE WITH THE EUROPEAN COMMISSION IN TRADE DEFENCE CASES’ published on the website of the Directorate-General for Trade:

http://trade.ec.europa.eu/doclib/docs/2011/june/tradoc_148003.pdf

The interested parties must indicate their name, address, telephone and a valid email address and they should ensure that the provided email address is a functioning official business email which is checked on a daily basis. Once contact details are provided, the Commission will communicate with interested parties by email only, unless they explicitly request to receive all documents from the Commission by another means of communication or unless the nature of the document to be sent requires the use of a registered mail. For further rules and information concerning correspondence with the Commission including principles that apply to submissions by email, interested parties should consult the communication instructions with interested parties referred to above.

Commission address for correspondence:

3.3.   Hearings

Pursuant to Article 5 of Regulation (EU) 2015/478 and Article 3 of Regulation (EU) 2015/755, all interested parties may also apply to be heard by the Commission within 21 days of the date of publication of this Notice in the Official Journal of the European Union.

4.   INSPECTION OF INFORMATION

Interested parties who have made known their views or submitted information or requested to be heard in accordance with Article 5 of Regulation (EU) 2015/478 and Article 3 of Regulation (EU) 2015/755, and representatives of the exporting countries, may, upon written request, inspect all information made available to the Commission in connection with the investigation other than internal documents prepared by the authorities of the Union or its Member States, provided that that information is relevant to the presentation of their case and not confidential within the meaning of Article 8 of Regulation (EU) 2015/478 or Article 5 of Regulation (EU) 2015/755, and that it is used by the Commission in the investigation. Interested parties which have come forward may communicate their views on the information in question to the Commission and those views may be taken into consideration where they are supported by sufficient evidence.

5.   NON-COOPERATION

In cases where any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, findings may be made on the basis of facts available, in accordance with Article 5 of Regulation (EU) 2015/478 and Article 3 of Regulation (EU) 2015/755. Where it is found that any interested party has supplied false or misleading information, the information may be disregarded and use may be made of facts available.

6.   HEARING OFFICER

Interested parties may request the intervention of the Hearing Officer in trade proceedings. The Hearing Officer acts as an interface between the interested parties and the Commission investigation services. The Hearing Officer reviews requests for access to the file, disputes regarding the confidentiality of documents, requests for extension of time limits and requests by third parties to be heard. The Hearing Officer may organise a hearing with an individual interested party and mediate to ensure that the interested parties' rights of defence are being fully exercised.

A request for a hearing with the Hearing Officer should be made in writing and should specify the reasons for the request. For hearings on issues pertaining to the initial stage of the investigation the request must be submitted within 15 days of the date of publication of this Notice in the Official Journal of the European Union.

The Hearing Officer will also provide opportunities for a hearing involving parties to take place which would allow different views to be presented and rebuttal arguments offered on issues pertaining to, among other things, the increase of imports, injury, causal link and Union interest.

For further information and contact details interested parties may consult the Hearing Officer's web pages on DG Trade's website: http://ec.europa.eu/trade/trade-policy-and-you/contacts/hearing-officer/

7.   SCHEDULE OF THE INVESTIGATION

If the Commission determines that measures are necessary, the Commission shall take the necessary decisions in accordance with Chapter V of Regulations (EU) 2015/478 and (EU) 2015/755 respectively, no later than nine months from the date of initiation, unless exceptional circumstances exist, in which case that time limit may be extended by a maximum period of two months. If the time limit is extended, the Commission will publish a Notice in the Official Journal of the European Union setting forth the duration of the extension and a summary of the reasons.

8.   PROCESSING OF PERSONAL DATA

Any personal data collected in this investigation will be treated in accordance with Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (4).

(1)  Commission Implementing Regulation (EU) 2016/670 of 28 April 2016 introducing prior Union surveillance of imports of certain iron and steel products originating in certain third countries (OJ L 115, 29.4.2016, p. 37).

(2)  Regulation (EU) 2015/478 of the European Parliament and of the Council of 11 March 2015 on common rules for imports (OJ L 83, 27.3.2015, p. 16).

(3)  Regulation (EU) 2015/755 of the European Parliament and of the Council of 29 April 2015 on common rules for imports from certain third countries (OJ L 123, 19.5.2015, p. 33).

(1)  A ‘Limited’ document is a document which is considered confidential pursuant to Article 8 of Regulation (EU) 2015/478, Article 5 of Regulation (EU) 2015/755 and Article 3.2 of the WTO Agreement on Safeguards. It is also a document protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council (OJ L 145, 31.5.2001, p. 43).

(4)  OJ L 8, 12.1.2001, p. 1.