Notice of initiation of a safeguard investigation concerning imports of Indica rice originating in Cambodia and Myanmar

(2018/C 100/13)

The European Commission (‘the Commission’) has received a request from Italy pursuant to Article 22 of Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised preferences (1) (hereinafter: ‘the GSP Regulation’).

1.   Request

The request by Italy was lodged on 16 February 2018 and calls for the adoption of safeguard measures for rice of the type ‘Indica’ originating in Cambodia and Myanmar since it is imported in volumes and at prices which cause serious difficulties to Union producers of like or directly competing products.

2.   Product under investigation

The product under investigation is semi-milled and milled Indica rice originating in Cambodia and Myanmar (‘the countries concerned’), benefiting from an exemption from customs duties in light of the GSP Regulation and currently falling within CN codes 1006 30 27, 1006 30 48, 1006 30 67 and 1006 30 98. These CN codes are given for information only.

3.   Trends in imports and prices and serious difficulties

Italy has provided prima facie evidence that imports of Indica rice from Cambodia and Myanmar have increased substantially and their respective EU market shares, of Indica rice, grew from 13 % to 21 % and from 0 % to 5 % in the last five rice marketing years. The request also shows that the corresponding import prices were substantially lower than the prices of Union producers, which would have caused serious difficulties to both growers and millers of Indica rice in the European Union (EU). Indeed, the EU production and sales of Indica milled rice decreased 40 % during the last five years, resulting in a drop of EU market shares from 52 % to 30 % in the same period. According to the request, import prices of milled Indica rice from Cambodia and Myanmar were even lower than the average price for raw rice (paddy rice) produced by growers. These imports therefore allegedly had substantial adverse effects on the overall performance of the Union industry.

4.   Procedure

Having determined, after informing the Member States, that there is sufficient prima facie evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation pursuant to Article 24 of the GSP Regulation.

The investigation will determine whether the product under investigation is imported in volumes and/or at prices which cause serious difficulties to the Union producers of like or directly competing products.

4.1.    Investigation period

General data and statistics concerning rice are usually presented for marketing years, reflecting the seasonality of the product under investigation. A marketing year covers a period of 12 months, starting on 1 September and ending on 31 August of the following calendar year. The investigation will cover the five last market years, i.e. the period from 1 September 2012 to 31 August 2017 (‘the investigation period’).

4.2.    Procedure for the determination of serious difficulties

A determination of serious difficulties is based on positive evidence and involves an objective examination of the volume and prices of the imports in the Union market and the consequent impact of those imports on the Union industry. In order to establish whether the Union industry faces serious difficulties, Union producers of the product under investigation are invited to participate to the Commission investigation.

4.3.    Scope of the investigation and data collection

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to (1) the known producers of the like or directly competitive products in the Union, (2) to the known exporters/producers and importers of the product under investigation and/or to any known association of exporters/producers and importers of the product under investigation.

1.   Union producers

In view of the large number of Union producers involved in this proceeding and in order to complete the investigation within the statutory time limits, the Commission has decided to limit to a reasonable number the individual Union producers that will be investigated by selecting a sample (this process is also referred to as ‘sampling’), pursuant to Article 11(6) of Regulation (EU) No 1083/2013 (2).

For this purpose, the Commission has provisionally selected a sample of Union producers. Details can be found in the file for inspection by interested parties. Interested parties are hereby invited to consult the file (for this they should contact the Commission using the contact details provided in section 4.6 below). Other Union producers, or representatives acting on their behalf, that consider that there are reasons why they should be included in the sample must contact the Commission within 15 days of the date of publication of this Notice in the Official Journal of the European Union.

All interested parties wishing to submit any other relevant information regarding the selection of the sample must do so within 15 days of the publication of this Notice in the Official Journal of the European Union.

All known Union producers and/or associations of Union producers will be notified by the Commission of the companies finally selected to be in the sample.

In order to obtain information it deems necessary for its investigation, the Commission will send questionnaires to the sampled Union producers and to any known association of Union producers. These parties must submit a completed questionnaire within 30 days from the date of the notification of the sample selection.

2.   Exporting producers in the countries concerned and importers in the EU

In view of the potentially large number of interested parties, and in order to complete the investigation within the statutory time limits, the Commission may limit the exporting producers and importers to be individually investigated to a reasonable number by selecting a sample (this process is also referred to as ‘sampling’), pursuant to Article 11.6 of Regulation (EU) No 1083/2013.

In order to enable the Commission to decide whether sampling is necessary, and if so, to select a sample, all exporting producers, importers or representatives acting on their behalf, are hereby requested to make themselves known to the Commission. These parties have to do so within 15 days of the date of publication of this Notice in the Official Journal of the European Union, by providing the Commission with information on their companies requested in Annex to this Notice.

In order to obtain information it deems necessary for the selection of the sample, the Commission will also contact the authorities of the countries concerned and may contact any known associations of exporting producers and importers.

All interested parties wishing to submit any other relevant information regarding the selection of the sample, excluding the information requested above, must do so within 15 days of the publication of this Notice in the Official Journal of the European Union, unless otherwise specified.

If a sample is necessary, the exporting producers and importers will be selected based on the largest representative volume of exports to the Union which can reasonably be investigated within the time available. All known exporting producers and importers, the authorities of the countries concerned and associations of exporting producers and importers will be notified by the Commission of the companies selected to be in the sample.

In order to obtain information it deems necessary for its investigation with regard to exporting producers and importers, the Commission will send questionnaires to the exporting producers and importers selected to be in the sample, to any known association of exporting producers and importers.

All exporting producers and importers selected to be in the sample will have to submit a completed questionnaire within 30 days from the date of notification of the sample selection.

4.4.    Other written submissions

Subject to the provisions of this Notice, all interested parties are hereby invited to make their views known, submit information and provide supporting evidence. Unless otherwise specified, this information and supporting evidence must reach the Commission within 30 days of the date of publication of this Notice in the Official Journal of the European Union.

4.5.    Possibility to be heard by the Commission investigation services

All interested parties may request to be heard by the Commission investigation services. Any request to be heard 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. Thereafter, a request to be heard must be submitted within the specific deadlines set by the Commission in its communication with the parties.

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

Information submitted to the Commission for the purpose of trade defence investigations 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’ (3). Parties submitting information in the course of this investigation are invited to reason their request for confidential treatment.

Interested 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, the Commission may disregard such information unless it can be satisfactorily demonstrated from appropriate sources that the information is correct.

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:

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, provisional or final findings, affirmative or negative, may be made on the basis of facts available, in accordance with Article 13 of Regulation (EU) No 1083/2013.

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.

Failure to give a computerised response shall not be deemed to constitute non-cooperation, provided that the interested party shows that presenting the response as requested would result in an unreasonable extra burden or unreasonable additional cost. The interested party should immediately contact the Commission.

6.   Hearing Officer

Interested parties which have come forward in accordance of Article 11(2) of Regulation (EU) No 1083/2013 may also request the intervention of the Hearing Officer. 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 interested 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. Thereafter, a request to be heard must be submitted within specific deadlines set by the Commission in its communication with the parties.

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, among other things, to imports and prices, serious difficulties and causal link.

If there is an oral hearing with the Hearing Officer, the relevant Commission investigation service shall participate in it.

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

The investigation will be concluded, pursuant to Article 24(4) of the GSP Regulation within 12 months of the date of the publication of this Notice in the Official Journal of the European Union.

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)  Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1).

(2)  Commission Delegated Regulation (EU) No 1083/2013 of 28 August 2013 establishing rules related to the procedure for temporary withdrawal of tariff preferences and adoption of general safeguard measures under Regulation (EU) No 978/2012 of the European Parliament and the Council applying a scheme of generalised tariff preferences (OJ L 293, 5.11.2013, p. 16).

(3)  A ‘Limited’ document is a document which is considered confidential pursuant to Article 38(4) of the GSP Regulation. 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.