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24.4.2012 Official
Journal
of
the
European
Union L
110/3
II
(Non-legislative acts)
REGULATIONS
COUNCIL IMPLEMENTING REGULATION (EU) No 349/2012
of 16 April 2012
imposing a definitive anti-dumping duty on imports of tartaric acid originating in the People’s
Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC)
No 1225/2009
THE COUNCIL OF THE EUROPEAN UNION,
(2) On
22
February
2008,
following
a
review
initiated
on
the basis of Article 11(3) of the basic Regulation, the
Council, by Regulation (EC) No 150/2008 ( 3 ), amended
the scope of the abovementioned measures.
Having regard to the Treaty on the Functioning of the European
Union,
(3) On
16
April
2012,
following
a
review
of
the
existing
measures on Hangzhou Bioking initiated on the basis of
Article 2(3) of Regulation (EC) No 1515/2001, in light of
Having regard to Council Regulation (EC) No 1225/2009 of
the WTO Appellate Body report entitled ‘Mexico —
30 November 2009 on protection against dumped imports
Definitive Anti-Dumping Measures on Beef and Rice’ ( 4 ),
from countries not members of the European Community ( 1 )
which found, in paragraphs 305 and 306, that an
(the basic Regulation), and in particular Article 9(4) and
exporting producer not found to be dumping in an
Article 11(2), 11(5) and 11(6) thereof,
original investigation has to be excluded from the
scope of the definitive measure imposed as a result of
such investigation and cannot be made subject to admin
istrative and changed circumstances review, the Council,
by Regulation (EU) No 332/2012 ( 5 ), amended the
Having regard to the proposal submitted by the European
measures regarding Hangzhou Bioking.
Commission (‘the Commission’) after consulting the Advisory
Committee,
(4) The
investigation
that
led
to
the
measures
imposed
by
the original Regulation will be hereinafter referred to as
Whereas:
‘the original investigation’.
2. Request for an expiry review
A. PROCEDURE
(5) Following the publication of a notice of impending
1. Previous investigations and measures in force
expiry ( 6 ) of the anti-dumping measures in force, the
Commission received on 27 October 2009 a request
(1) By
Regulation
(EC)
No
130/2006
( 2 ) (the original Regu
for the initiation of an expiry review of these measures
lation), the Council imposed a definitive anti-dumping
pursuant to Article 11(2) of the basic Regulation. The
duty, ranging from 0 % to 34,9 %, on imports of
request was lodged by the following producers (‘the
tartaric acid (TA) originating in the People’s Republic of
applicants’): Distillerie Bonollo SpA, Industria Chimica
China (‘China’). It is recalled that the rate of the definitive
Valenzana SpA, Distillerie Mazzari SpA, Caviro Distillerie
anti-dumping duty imposed on TA produced by the
SRL and Comercial Química Sarasa SL representing a
Chinese exporting producer Hangzhou Bioking
major proportion, in this case more than 50 %, of the
Biochemical Engineering Co. Ltd (‘Hangzhou Bioking’)
total Union production of TA.
was 0 % while it ranged between 4,7 % and 34,9 % for
other Chinese exporting producers.
( 3 ) OJ L 48, 22.2.2008, p. 1.
( 4 ) WT/DS295/AB/R, 29 November 2005.
( 1 ) OJ L 343, 22.12.2009, p. 51.
( 5 ) OJ L 108, 20.4.2012, p. 1.
( 2 ) OJ L 23, 27.1.2006, p. 1.
( 6 ) OJ C 211, 4.8.2010, p. 11.

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L 110/4
EN
Official Journal of the European Union
24.4.2012
(6)
The request was based on the grounds that the expiry of
associations, and the representatives of the exporting
the measures imposed on imports of TA originating in
country concerned of the initiation of the expiry review.
China would be likely to result in a continuation of
dumping and injury to the Union industry.
(12) 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.
3. Initiation of an expiry review
(7) Having
determined,
after
consulting
the
Advisory
Committee, that sufficient evidence existed for the
(13) In view of the apparent large number of exporting
initiation of an expiry review, the Commission
producers from China, unrelated importers in the
announced on 26 January 2011 the initiation of an
Union and Union producers involved in the investi
expiry review pursuant to Article 11(2) of the basic
gation, sampling was envisaged in the notice of initiation,
Regulation, by a notice published in the Official Journal
in accordance with Article 17 of the basic Regulation. In
of the European Union ( 1 ) (‘notice of initiation’).
order to enable the Commission to decide whether
sampling would be necessary and, if so, to select a
sample, the above parties were requested, pursuant to
Article 17 of the basic Regulation, to make themselves
known within 15 days of the publication of the notice of
4. Parallel cases
initiation and to provide the Commission with the
information requested in the notice of initiation.
(8) The
Commission
also
announced
on
29
July
2011
the
initiation of an anti-dumping proceeding ( 2 ) pursuant to
Article 5 on imports of TA originating in China, limited
to one Chinese exporting producer, Hangzhou Bioking.
(14) In
view
of
the
replies
received
it
was
decided
to
apply
sampling in respect of Union producers. No unrelated
importers in the Union cooperated in the investigation.
As regards exporting producers from China, only two
exporting producers manifested their willingness to
(9) On
the
same
day,
the
Commission
announced
the
initiation of a partial interim review (
cooperate in the investigation. It was therefore decided

3 ) pursuant to
Article 11(3) of the basic Regulation of the anti-
that sampling was not necessary as regards exporting
dumping measures applicable to imports of TA orig
producers.
inating in China limited to the examination of
dumping as far as two Chinese exporting produces are
concerned, namely Changmao Biochemical Engineering
(15) Six
Union
producers
provided
the
information
requested
Co. Ltd, Changzhou City, and Ninghai Organic
in the notice of initiation and agreed to be included in
Chemical Factory, Ninghai.
the sample. On the basis of the information received
from these Union producers, the Commission selected
a sample of four Union producers which were found
to be representative of the Union industry in terms of
5. Investigation
sales volumes of the like product in the Union. Their
combined sales volume represented 61 % of the sales
5.1. Review investigation period and the period considered
volume in the Union market.
(10) The investigation of continuation of dumping covered
the period from 1 January 2010 to 31 December
2010 (‘the review investigation period’ or ‘RIP’). The
(16) Questionnaire replies were received from the four
examination of the trends relevant for the assessment
sampled Union producers, two users in the Union, and
of the likelihood of a continuation or recurrence of
two exporting producers in China. In addition, two
injury covered the period from 1 January 2007 to the
cooperating Union producers provided the requested
end of the review investigation period (‘the period
general data for the injury analysis.
considered’).
(17) Exports
made
by
Hangzhou
Bioking,
whose
individual
dumping margin in the original investigation was zero,
5.2. Parties concerned by the investigation
have been excluded from both dumping and injury
analysis, including the likelihood of continuation of
(11) The
Commission
officially
advised
the
applicants,
other
dumping and risk of recurrence of injury resulting
known Union producers, exporting producers, importers,
from dumped imports. The analysis in the present
users in the Union known to be concerned and their
review was therefore based on exports of product
concerned from China to the Union during the RIP
excluding the exports made by the producer Hangzhou
( 1 ) OJ C 24, 26.1.2011, p. 14.
( 2 ) OJ C 223, 29.7.2011, p. 11.
Bioking and is also referred to as ‘exports subject to
( 3 ) OJ C 223, 29.7.2011, p. 16.
measures’ in this Regulation.

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/5
(18) The
Commission
sought
and
verified
all
the
information
Union by the Union Industry (‘the like product’), have the
it deemed necessary for a determination of the likelihood
same basic physical and chemical characteristics and uses.
of continuation or recurrence of dumping and resulting
Therefore, these products are considered to be like
injury and for the determination of the Union interest.
products within the meaning of Article 1(4) of the
Verification visits were carried out at the premises of the
basic Regulation.
following companies:
(a) Union producers:
C. LIKELIHOOD OF CONTINUATION OF DUMPING
1. Preliminary remarks
— Comercial Química Sarasa SL,
(21) In
accordance
with
Article
11(2)
of
the
basic
Regulation,
it was examined whether the expiry of the existing
— Alcoholera Vinícola Europea SA,
measures would likely lead to a continuation or
recurrence of dumping.
— Distillerie Mazzari SpA,
— Distillerie Bonollo SpA;
(22) As mentioned in recital 13, in view of the potentially
large number of exporting producers involved in this
review, sampling was foreseen in the notice of initiation.
(b) exporting producers in China:
From the 20 known exporting producers, only the two
companies, both benefiting from market economy
treatment, came forward and agreed to cooperate.
— Changmao Biochemical Engineering Co. Ltd,
These two companies cover most of the imports of
product concerned from China to the Union during the
RIP excluding the exports made by the company
— Ninghai Organical Chemical Factory;
Hangzhou Bioking, whose individual dumping margin
in the original investigation was zero.
(c) users:
2. Dumping of imports during the RIP
— Danisco A/S,
2.1. Analogue country
— Kerry (NL) BV;
(23) Since China is an economy in transition and in
accordance with the provisions of Article 2(7)(a) of the
basic Regulation, normal value for exporting producers
(d) producer in the analogue country:
not granted market economy treatment (MET) has to be
determined on the basis of the price or constructed value
in an appropriate market economy third country
— Tarcol SA, Argentina.
(‘analogue country’).
B. PRODUCT CONCERNED AND LIKE PRODUCT
(19) The
product
concerned
by
this
review
is
the
same
as
the
(24) As
in
the
original
investigation,
Argentina
was
proposed
one defined in Regulation (EC) No 150/2008, which
as analogue country in the notice of initiation for the
amended the scope of the measures established by the
purpose of establishing normal value. Interested parties
original Regulation as explained above. Namely, the
were given the opportunity to comment on the appropri
product concerned is tartaric acid, excluding D-(-)-tartaric
ateness of this choice.
acid with a negative optical rotation of at least 12,0
degrees, measured in a water solution according to the
method described in the European Pharmacopoeia, orig
inating in China, currently falling within CN code
(25) One
industrial consumer of tartaric acid highlighted
ex 2918 12 00 (TARIC code 2918 12 00 90) (‘the
some constraints linked to the choice of Argentina as
product concerned’).
analogue market arguing that it should not be the sole
benchmark for the purpose of determining normal value.
The party concerned addressed in particular alleged
(20) The review investigation confirmed that, as in the
differences in the production processes between China
original investigation, the product concerned imported
and Argentina, the limited amount of annual production
into the Union market and the products manufactured
as compared to world production and currency exchange
and sold by the exporting producers on the domestic
rates fluctuation. However, none of these arguments were
markets, as well as those manufactured and sold in the
substantiated by any documentary evidence.

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L 110/6
EN
Official Journal of the European Union
24.4.2012
(26) In any event, the different production processes
in
Therefore, the established normal value was calculated
Argentina and China and the resulting impact on the
using the company’s cost of manufacturing and adding
costing and the valuation of the product concerned
selling, general and administrative costs (SG&A) and
were already carefully considered in the original investi
profit achieved on the domestic sale made in the
gation and it was concluded that it did not alter the
ordinary course of trade.
comparability of the products that were found to be
similar. As the allegation of the industrial consumer did
not bring any new element and its claims were not
(33) For the other company granted MET, since the domestic
substantiated, the argument is rejected. The findings of
sales were representative and made in the ordinary course
the current expiry review, therefore confirm the findings
of trade, normal value was established on the prices paid
of the original investigation, i.e. that the differences in
by independent customers in the exporting country.
production processes did not have an impact on the
comparability of the products.
(34) As
far
as
the
companies
not
granted
MET
in
the
original
investigation are concerned, pursuant to Article 2(7)(a) of
(27) The
limited
size
of
the
annual
production
in
Argentina
as
the basic Regulation, normal value was established on the
compared to the world market of TA is not a relevant
basis of information collected from the cooperating
argument when assessing whether a specific market is
producer in the analogue country.
suitable to establish normal value in an analogue
market. Indeed, the investigation confirmed that
Argentina is an open and competitive market with at
(35) Therefore,
the
domestic
sales
to
independent
customers
least two operators. On these grounds, the argument is
in the analogue country were also assessed in accordance
rejected.
with the criterion defined in Article 2 of the basic Regu
lation. The Commission could verify that these sales were
made in sufficient quantities and in the ordinary course
of trade and could thus be used to determine normal
(28) The
argument of significant currency exchange fluc
value for the companies not granted MET.
tuation between regions was not substantiated. In
addition, the on spot investigation did not gather any
element pointing to any distortion of currency rates
between regions. On these grounds, the argument is
2.3. Export price
also rejected.
(36) All export sales to the Union of the cooperating
exporting producers were made directly to independent
customers established in the Union. In accordance with
Article 2(8) of the basic Regulation, the export price was
(29) Therefore, as in the original investigation, it was
established on the basis of the prices actually paid or
concluded that Argentina was an appropriate analogue
payable.
country from which normal value will be determined.
(37) For
the
export
price
of
all
other
producers
established
in
(30) Two
known
Argentinean
companies
were
contacted
but
China, information was taken from imports statistics
only one of them agreed to cooperate, to reply to the
made available in the Article 14(6) database.
questionnaire and to accept a verification visit. Its figures
have been used for the determination of the normal
value.
2.4. Comparison
(38) The
comparison
between
normal
value
and
export
price
was made on an ex-works basis.
2.2. Normal value
(31) For the two companies granted MET in the original
investigation, normal value has been established based
(39) For
the
purpose
of
ensuring
a
fair
comparison
between
on their respective data. In accordance with Article 2
the normal value and the export price of the cooperating
of the basic Regulation, the Commission examined
exporting producers, and in accordance with Article 2(10)
whether the domestic sales of tartaric acid to inde
of the basic Regulation, due allowance in the form of
pendent customers were representative during the RIP,
adjustments was made with regard to certain differences
i.e. if the sales volume of the product intended for
in transport, insurance, taxes and credit costs which
domestic consumption represents 5 % or more of their
affected prices and price comparability.
exports of the product concerned to the Union.
(40) In
order
to
fairly
compare
the
ex-works
normal
value
from the analogue country and the export price as
(32) For
one
company
granted
MET,
normal
value
had
to
be
mentioned in recital 37, the CIF export prices were
constructed since its domestic sales were not sufficient to
adjusted to ex-works using data collected during the
be considered representative as explained in recital 31.
verification visits.

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/7
2.5. Dumping margin
market researches ( 2 ). The Chinese market is small when
compared to the available capacity in China with an
(41) As
provided
for
under
Article
2(11)
of
the
basic
Regu
estimated consumption of 5 000 MT.
lation, the dumping margin was established on the basis
of a comparison of the weighted average normal value
with the weighted average export price.
(50) In
addition,
there
are
strong
indications
that
capacity
in
China is even higher than 25 000 MT. Indeed, total
capacity of the two cooperating Chinese exporters went
(42) For
the
cooperating
exporting
producers,
granted
MET
in
up by more than 200 % comparing data for the original
the original investigation this comparison showed that
IP to the current RIP. The corresponding spare capacity
these companies continued dumping although at a
was of around 20 % of total capacity in the RIP.
slightly lower level.
(51) Furthermore,
information
collected
from
extracts
of
the
(43) The
residual
duty
calculated
showed
a
significant
level
of
reports mentioned above in recital 48 and publicly
dumping even higher than in the original investigation.
available information show that at least two new
producers of tartaric acid were set up in 2007.
3. Likelihood of continuation of dumping
(52) On
these
grounds,
it
is
clear
that
capacity
in
China
is
(44) Further to the analysis of the existence of dumping
during the RIP, the likelihood of continuation of
disproportionate as compared to domestic consumption,
dumping was also investigated.
which confirms a clear need for the Chinese producers to

increase their position on export markets.
(45) In
this
respect,
the
following
elements
were
analysed:
the
volume and prices of dumped imports from China, the
3.3. Attractiveness of the Union market and other third
production capacity and the spare capacity in China, the
markets
attractiveness of the Union market and other third
(53) From the information gathered at the Chinese
markets.
cooperating companies, the level of prices to third
countries is in line with the level of prices that they
could obtain in the Union market. As mentioned
3.1. Volume and prices of dumped imports from China
above, there is an important production overcapacity
on the Chinese domestic market suggesting a strong
(46) After imposition of definitive measures in January 2006,
and natural need to find alternative markets to absorb
dumped imports from China continued to increase,
this excess in production capacity.
raising from 3 034 metric tonnes (MT) in 2007 to
3 649 MT in the RIP, i.e. an increase of around 20 %.
In parallel, market share of dumped imports from China
gained 1,0 percentage points in the period considered
(54) The Union market is by far the biggest in the world
from 12,6 % in 2007 to 13,5 % in the RIP.
reaching around 40 % of the world consumption of

tartaric acid and is still growing as mentioned in recital
60. It is also clear, based on information collected during
the investigation that Chinese companies have shown a
(47) In
the
same
period,
prices
of
dumped
imports
from
big interest in developing their presence on the biggest
China remained relatively stable with an increase of
market in the world and maintaining a significant market
12,6
% between 2007 and 2008 followed by a
share on the Union market.
continued reduction in 2009 and the RIP, to reach in
the latter period the level achieved in 2007.
4. Conclusion of the likelihood of continuation of
dumping
3.2. Production capacity and spare capacity in China
(55) In
view of the findings described above, it can be
(48) As
far
as
the
total
production
capacity
of
TA
in
China
is
concluded that significant volumes of imports from
concerned, different sources of information publicly
China are still being dumped and that there is a strong
available ( 1 ) point to a production capacity that is
likelihood of continuation of dumping. Given the
largely in excess of demand on the Chinese domestic
potential spare capacity in China including the new
market.
producers that appeared on the Chinese market and the
fact that the Union market is the biggest market in the
world with attractive level of prices, it can be concluded
(49) Total production capacity in China has been assessed at
that the Chinese exporters are likely to further increase
around 25 000 MT, taking into account information
their exports to the Union at dumped prices should the
gathered on spot during the investigation and following
anti-dumping measures be allowed to lapse.
( 1 ) Like the Chemical Economic Handbook (CEH), or reports from CCM
( 2 ) Like the Chemical Economic Handbook (CEH), or reports from CCM
International Ltd.
International Ltd.

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L 110/8
EN
Official Journal of the European Union
24.4.2012
D. DEFINITION OF THE UNION INDUSTRY
(60) Union
consumption
of
TA
increased
between
2007
and
the RIP by 11 %. In details, the apparent demand went
(56) During the RIP, the like product was produced by nine
down from 2007 to 2009 by 15 %. However, during the
producers in the Union. Of these nine producers, six
RIP the Union consumption reached 29 964 tonnes,
producers fully cooperated with the investigation,
representing a significant increase of 26 percentage
submitted sampling forms and requested to be included
points as compared to the previous year. This increase
in the sample. These six producers were found to
is explained by the high price elasticity of the TA. Indeed,
account for a major proportion, in this case more than
when prices are low, as was the case during the RIP, TA
73 %, of the total Union production of the like product.
can be used in additional applications as a substitute for
As mentioned in recital 57 below, nine producers having
other raw material chemical products such as citric acid
provided the data in the review request, are hereafter
and malic, hence an increase of the total Union
referred to as the ‘Union industry’ within the meaning
consumption.
of Article 4(1) and Article 5(4) of the basic Regulation.
Table 1
(57) For the purpose of the injury analysis, the injury indi
2007 2008 2009 RIP
cators have been established at the following two levels:
Total EU consumption 26 931 25
333 22
983 29
964
(tonnes)
Index 100 94 85 111
— the macroeconomic elements (production, capacity,
capacity utilisation, productivity, sales volume,
Source: Questionnaire replies, Chinese export database, Eurostat.
market share, growth, employment, and magnitude
of dumping margins and recovery from the effects
of past dumping) were assessed at the level of the
2. Volume, market share and prices of imports from
whole Union production, on the basis of the
China
information collected from the producers that came
forward in the context of the sampling exercise and
2.1. Volume and market share
on an estimation based on the data from the review
request for the other three Union producers,
(61) The
volume
of
all
imports
of
the
product
concerned
from China into the Union increased by 45 % during
the period considered. It reached 8 495 tonnes in the
RIP corresponding to a market share of 28,4 %.
— the analysis of microeconomic elements (average unit
prices stocks, wages, profitability, return on invest
ments, cash flow, ability to raise capital and invest
(62) The volume of imports of TA from Chinese exporters
ments) was carried out on the basis of information
being subject to anti-dumping measures into the Union
provided by the sampled Union producers.
increased by 20 % and reached 3 649 tonnes in the RIP
corresponding to a market share of 12,2 %, up from
11,3 % at the beginning of the period considered. The
remaining imports, 4 846 tonnes, were made by a
Chinese exporter subject to a 0 % and which also
(58) It is noted that the Union market for TA is characterised
increased its share in total Chinese exports to the
by a relatively small number of producers, mostly small
Union during the period considered (+ 9 percentage
and medium enterprises located in Italy and Spain. With
points).
the exception of one producer established in Spain,
which only produces TA, all other producers are
vertically integrated, with the main activity being
producing alcohol from wine lees, a process for which
Table 2
TA is a by-product.
2007 2008 2009 RIP
Volume of imports 3 035 3
042 2
945 3
649
subject to measures
E. SITUATION ON THE UNION MARKET
from China (tonnes)
1. Consumption in the Union market
Index = 100 100 100 97 120
(59) Union
consumption
was
established
on
the
basis
of
the
Market share of 11,3 % 12,0
% 12,8
% 12,2
%
sales volumes of the Union industry on the Union
imports subject to
market, the Chinese export database and the imports
measures from China
volumes data for the Union market obtained from
Eurostat and, concerning the other Union producers,
Index = 100 100 106 113 107
from estimation based on the review request.

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/9
2.2. Prices and undercutting
2007 2008 2009 RIP
(63) The
following
table
shows
the
development
of
average
Market share of 2,2 % 0,5
% 0,7
% 2,8
%
CIF EU frontier prices of imports under measures from
imports from other
China and the relevant average sales prices of the Union
third countries
industry.
Index = 100 100 24 31 129
Table 3
Price of imports (EUR/ 2 503 2
874 2
300 2
413
tonne)
2007 2008 2009 RIP
Source: Eurostat, Article 14(6) database.
Price of Chinese 1 834 2
060 1
966 1
819
imports (EUR/tonne)
subject to measures
(68) The
volume
of
imports
from
other
third
countries
of
the
TA into the EU increased in the period considered, by
Index = 100 100 112 107 99
43 % and reached 845 tonnes in the RIP. Prices of these
Source: Questionnaire replies, Article 14(6) database.
imports are relatively high and significantly above the
respective prices from China and only slightly below
the average level of prices of the Union industry.
However, it can be considered that exports from other
(64) Average
unit
selling
prices
of
Chinese
exports
subject
to
third countries were marginal since during the RIP they
measures at CIF level in the RIP reached 1 819 EUR/MT,
represented only a market share of 2,8 % despite their
corresponding, over the period considered, to an increase
steep increase in percentage terms at the end of the
of 20 %.
period considered.
(65) Concerning
the
selling
price
on
the
Union
market
of
the
TA during the RIP, a comparison was made between the
4. Economic situation of the Union industry
prices of TA produced and sold by the Union industry
and those of the imports subject to measures from
(69) Pursuant
to
Article
3(5)
of
the
basic
Regulation,
all
China. The relevant sales prices of the Union industry
relevant economic factors and indices having a bearing
were those to independent customers, adjusted where
on the state of the Union industry during the period
necessary to an ex-works level, i.e. excluding freight
considered have been examined.
costs in the Union and after deduction of discounts
and rebates. These prices were compared with the sales
prices charged by the aforementioned Chinese exporting
4.1. Preliminary remarks
producers net of discounts and adjusted where necessary
to CIF EU frontier with an appropriate adjustment for the
(70) In
view
of
the
fact
that
sampling
was
used
with
regard
to
customs clearance costs and post importation costs. The
the Union industry, for the purpose of the injury analysis,
Union weighted average selling price during the RIP was
the injury indicators have been established at two levels
2 496 EUR/MT.
as mentioned in recital 57 above.
(66) The comparison on a type by type basis showed that,
4.2. Macroeconomic elements
during the RIP, imports subject to measures from China
of the product concerned were sold in the Union at
(a) Production
prices which significantly undercut the Union industry’s
prices, when expressed as a percentage of the latter, by
(71) The
Union
production
increased
by
5
%
between
2007
32,6 %.
and the RIP. More specifically, it increased by 19
percentage points between 2009 and RIP to around
30,5 thousand MT, following a sharp decrease between
3. Imports from other third countries
2007 and 2009 of 14 %. Increased production levels
(67) The
following
table
shows
the
development
of
imports
have allowed the Union industry to contain the
from other third countries during the period considered
increase of production costs and had a positive impact
in terms of volume and market share, as well as the
on the overall Union industry profitability.
average price of these imports.
Table 5
Table 4
2007 2008 2009 RIP
2007 2008 2009 RIP
Production in volume 29 000 27
500 25
000 30
588
Volume of imports 590 135 156 845
(tonne)
from other countries
(tonne)
Index = 100 100 95 86 105
Index = 100 100 23 26 143
Source: Questionnaire replies, review request.

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L 110/10
EN
Official Journal of the European Union
24.4.2012
(b) Production capacity and capacity utilisation
Table 8
(72) The production capacity of the Union producers
2007 2008 2009 RIP
decreased by 2 % throughout the period considered.
Market share of the 76,1 % 71,7
% 72,7
% 68,8
%
Union producers
(73) Capacity
utilisation
was
63
%
in
2007
and
dropped
to
Index = 100 100 94 95 90
56 % in 2009, to reach 68 % in the RIP. The lower
utilisation rate in 2009 reflected the negative effects of
Source: Questionnaire replies, review request and Eurostat.
the crisis. Total capacity utilisation increased by 8 % over
the period considered, which contributed to a further
dilution of fixed costs.
(e) Growth
(76) Between 2007 and the RIP, whilst the Union
consumption increased by 11 %, the volume of sales
Table 6
by the Union industry on the Union market remained
stable and the Union industry market share decreased by
2007 2008 2009 RIP
10 %. It is thus concluded that the Union producers
could not benefit from any growth of the market.
Production capacity 46 000 46
000 45
000 45
000
(tonne)
(f) Employment
Index = 100 100 100 98 98
(77) The
employment
level
of
the
Union
industry
shows
a
decrease of 28 % between 2007 and the RIP. More
Capacity utilisation 63
% 60
% 56
% 68
%
specifically, the number of persons employed decreased
significantly from 320 in 2007 and 2008 to 280 in
Index = 100 100 95 88 108
2009 and 230 in the RIP. The drop in 2009 is a
Source: Questionnaire replies, review request.
reflection of the restructuring efforts by a number of
Union producers.
(c) Sales volume
Table 9
(74) The
sales
volume
of
the
Union
producers
to
unrelated
customers on the Union market modestly increased in
2007 2008 2009 RIP
RIP by 1 %. First they decreased by 11 % between 2007
Employment (persons) 320 320 280 230
and 2008, followed by a further decrease by 9 % in
2009, to reach almost the same level at the end of the
Index = 100 100 100 88 72
period considered as the beginning of the period
considered, thus showing wide variations mainly due to
Source: Questionnaire replies, review request.
the economic crisis of 2008 and 2009.
(g) Productivity
Table 7
(78) Productivity
of
the
Union
industry
workforce,
measured
as output (tonnes) per person employed per year,
2007 2008 2009 RIP
increased by 47 % in the period considered. This
reflects that production increased by 5
%, whilst
Sales to unrelated 20 489 18
165 16
709 20
623
employment levels decreased by 28 % and is an indi
parties in the Union
cation of the increased efficiency by the Union
(tonne)
industry. This is particularly obvious in the RIP, when
production increased while the employment level
Index = 100 100 89 82 101
continued to decrease and productivity was 48
percentage points higher than in 2009.
Source: Questionnaire replies, review request.
Table 10
(d) Market share
2007 2008 2009 RIP
(75) During the period considered, the Union producers lost
7,3 percentage points in market share, which decreased
Productivity (tonnes 90 85 89 132
from 76,1 % in 2007 to 68,8 % in the RIP. This loss of
per employee)
market share reflects the fact that, despite an increase in
consumption, the Union industry’s sales were not able to
Index = 100 100 94 99 147
progress at the same pace in the period considered but
Source: Questionnaire replies and review request.
remained somewhat stable.

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/11
4.3. Data relating to the sampled Union producers
increase, as mentioned in recital 46 above. Thus, no
actual recovery from the past dumping could be estab
(h) Factors affecting sales prices
lished and it is considered that the Union industry
remains vulnerable to the injurious effects of any
(79) The
annual
average
sales
prices
of
the
sampled
producers
dumped imports in the Union market.
on the Union market to unrelated customers increased
by 8
% between 2007 and 2009, however, they
decreased by 6 % during the period considered as in
the RIP the annual average sale price reached
(j) Stocks
2 496 EUR/tonne from 2 667 EUR/tonne in 2007. The
availability of calcium tartrate, which is produced out of
(81) Volume
of stock remained stable during the period
wine lees and represents 66 % of total costs of manu
considered with a modest increase of 2 %. More specifi
facturing of TA, varies according to the quality of the
cally, it sharply increased by 65 % in 2008 as a direct
grape wine harvest. Therefore, favourable or poor
consequence of the evolution of sales as mentioned in
climatic conditions have an effect on the overall supply
recital 74 above. Between 2008 and the RIP volume of
of calcium tartrate, which in turn has an impact on the
stock decreased as sales to unrelated parties increased
annual averages sales prices. It should be noted that
during the same period.
2007 and 2008 have not been two favourable years as
far as the grape wine harvest is concerned, which
subsequently led to an increase of the costs of raw
materials and sales prices after the production period
Table 12
(as it is a seasonal product, effects materialise only
several months following the harvest period). Conversely,
2007 2008 2009 RIP
as 2009 has been a good wine harvesting year hence, the
annual average sale prices in the RIP was 14 % lower
Closing stock (tonne) 863 1
428 933 879
compared to the previous year.
Index = 100 100 165 108 102
Source: Questionnaire replies.
Table 11
2007 2008 2009 RIP
(k) Wages
Unit price EU market 2 667 2
946 2
881 2
496
(EUR/tonne)
(82) The
average
labour
cost
increased
by
19
%
during
the
period considered despite the labour cost reducing
Index = 100 100 110 108 94
efforts of the sampled producers in particular with
regard to unskilled workers, as reflected in the
Source: Questionnaire replies, review request.
reduction of the overall workforce mentioned in recital
77 above.
(i) Magnitude of dumping margin and recovery from
past dumping
Table 13
(80) Given
the
level
of
dumping
found
in
this
investigation,
2007 2008 2009 RIP
no full recovery from the past dumping could be estab
lished and it was considered that the Union industry
Average wage (EUR) 28
686 31
871 31
574 34
245
remains vulnerable to the injurious effect of any
dumped imports in the Union market. It is recalled
that in the original investigation dumping margins of
Index = 100 100 111 110 119
4,7 % and 10,1 % were found for the respective two
Source: Questionnaire replies.
cooperating Chinese producers being granted MET. The
dumping margin for all other companies is 34,9 %.
Furthermore, as mentioned in recital 7 above, an anti-
dumping proceeding limited to one Chinese exporting
(l) Profitability and return on investments
producer, Hangzhou Bioking, which is not subject to
measures was initiated and it cannot be excluded that
(83) During
the
period
considered,
the
profitability
of
the
this exporting producer could be found to practise
sampled producers’ sales of the like product on the
dumping. In addition, as stated in recitals 48 to 54
Union market to unrelated customers, expressed as a
above, a likelihood of continuation of dumping was
percentage of net sales, increased by more than 6
established mainly based on available excess production
percentage points. More specifically, the situation with
capacity in China and the rather small size of the Chinese
regard to profitability of the sampled producers
domestic market. As regards recovery from past dumped
dropped by 3,7 percentage points between 2007 and
imports from China, it is important to recall that after
2008 to a level of 7,7 %, which was considered to be
the imposition of definitive measures in January 2006,
below the target profit and increased in 2009 and the
imports from China subject to measures continue to
RIP to reach 17,6 %.

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L 110/12
EN
Official Journal of the European Union
24.4.2012
(84) The
return
on
investments
(ROI),
expressed
as
the
profit
2007 2008 2009 RIP
in percent of the net book value of investments, broadly
followed the profitability trend. It decreased from a level
Index = 100 100 60 122 393
of 36,4 % in 2007 to 21,9 % in 2008. It increased to
44,4 % in 2009 and increased again in the RIP to
Source: Questionnaire replies.
142,9 %. Overall, the return on investments remained
very positive over the period considered.
(m) Cash flow and ability to raise capital
Table 14
(85) The
net
cash
flow
from
operating
activities
was
positive
at EUR 4,6 million in 2007. It dropped to EUR 1,8
2007 2008 2009 RIP
million in 2008 and improved significantly until the
end of the period considered to reach a level of
Profitability of EU (% 11,4 % 7,7
% 12,5
% 17,6
%
EUR 6,8 million in the RIP. Overall, cash flow has been
of net sales)
constantly positive in the period considered.
Index = 100 100 67 109 153
ROI (profit in % of net 36,4 % 21,9
% 44,4
% 142,9
%
(86) There
were no indications that the Union industry

book value of invest
encountered difficulties in raising capital, mainly due to
ments)
the fact that, as mentioned in recital 58 above, most of
the sampled producers are integrated companies.
Table 15
2007 2008 2009 RIP
Cash flow (EUR) 4
691
458 1
841
705 4
706
092 6
802
164
Index = 100 100 39 100 145
Source: Questionnaire replies.
(n) Investments
(87) The
sampled
producers’
annual
investments
in
the
production
of
the
like
product
decreased
by
23
%
between 2007 and the RIP. More specifically, it increased by 5 % between 2007 and 2008 and then
it further increased by 32 percentage points in 2009. The sharp drop in investments observed
between 2009 and the RIP (– 60 percentage points) can be partially explained by the fact that
investigated companies had already during the period considered achieved their necessary
scheduled main investments.
Table 16
2007 2008 2009 RIP
Net investments (EUR) 2
518
189 2
632
013 3
461
990 1
943
290
Index = 100 100 105 137 77
Source: Questionnaire replies.
5. Conclusion on the situation of the Union industry
(88) The
analysis
of
the
macroeconomic
data
shows
that
the
Union
industry
increased
its
production
and
sales during the period considered. However, the observed increase which was not significant as such,
should be seen in the context of increased demand between 2007 and the RIP, which resulted in the
Union producers’ market share dropping by 7,3 percentage points to 68,8 %.
(89) At the same time the relevant microeconomic indicators show an improvement regarding the
economic situation of the Union industry. The profitability and return on investment remained
positive and the cash flow also remained positive in the RIP.

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/13
(90) In the light of the foregoing, it is concluded that the
(96) Consequently,
it
should
be
further
noted
that
there
are
Union industry has not suffered material injury within
no significant constraints in production volumes for
the meaning of Article 3(5) of the basic Regulation.
Chinese production given their synthetic production
However, the overall absence of material injury during
methods, unlike the Union industry producers using
the RIP should be considered in the light of other
natural raw materials — wine lees.
important injury indicators, which developed negatively
during the period considered, in particular sales prices,
loss of market share and employment. Therefore, the
situation of the Union industry is considered to be still
(97) Given that the profitability of the Union industry is in
vulnerable and in some aspects, far from the levels that
part dependent on climatic conditions, it appears that the
could be expected had it recovered fully from the injury
good profitability achieved in the RIP cannot be
found in the original investigation.
considered as lasting. Indeed, even during the period
considered, the Union industry was not always able to
achieve its target profit of 8 %. Moreover, in the six-
F. LIKELIHOOD OF RECURRENCE OF INJURY
month period following the end of the RIP, the Union
industry’s profitability already fell significantly to around
1. Impact of the projected volume of imports and
3 % with the industry again finding itself in a vulnerable
price effects in case of repeal of measures
position.
(91) As concluded in recitals 48 to 52 above, the exporting
producers in China have considerable spare capacities
and a clear potential to increase their export volumes
2. Conclusion on the likelihood of recurrence of
to the Union market significantly including redirecting
injury
exports from other markets.
(98) On
this
basis,
it
is
concluded
that
the
repeal
of
the
measures would in all likelihood result in an increase
of dumped exports originating in China resulting in a
(92) The
CIF
export
prices
to
the
Union
of
TA
practised
by
the Chinese exporters currently subject to measures were
downwards pressure on Union industry prices and a
significantly lower than the prices of the Union industry
worsening of the economic situation of the Union
in the RIP and on a type by type basis undercut it by
industry. It is therefore concluded that the repeal of
32,6 %.
measures against China would in all likelihood result in

the recurrence of injury to the Union industry.
(93) An
analysis
of
Chinese
exports
( 1 ) of TA to the rest of the
world after the RIP shows that their volume was
G. UNION INTEREST
decreasing significantly, from 10 862 MT in the RIP to
8 118 MT at the end of July 2011 (– 25 %). This decrease
1. Introduction
in Chinese exports volume of 2 744 tonnes to other
markets could create an additional flow of Chinese
(99) In compliance with Article 21 of the basic Regulation, it
exports towards the Union market.
was examined whether maintenance of the existing anti-
dumping measures against China would be against the
interest of the Union as a whole. The determination of
the Union interest was based on an appreciation of all
(94) Considering existing spare capacities for TA in China,
the various interests involved. All interested parties were
combined with the attractiveness of the Union market
given the opportunity to make their views known
as mentioned above, exporters in China would in all
pursuant to Article 21(2) of the basic Regulation.
likelihood try to increase their market shares in the
Union thereby materially injuring the Union industry.
Consequently, in the absence of anti-dumping duties on
imports of TA originating in China, any increased
volumes of dumped imports from China would
(100) It should be recalled that, in the original investigation,
exercise an even stronger price pressure on the Union
the adoption of measures was considered not to be
industry and cause material injury.
against the interest of the Union. Furthermore, the fact

that the present investigation is a review, thus analysing a
situation in which anti-dumping measures have already
been in place, allows the assessment of any undue
(95) As mentioned in recital 79 climatic/harvest-related
negative impact on the parties concerned by the
conditions partly play a role in the overall financial
current anti-dumping measures.
situation of the Union industry. It is recalled that the
TA, used also by wine producers, can be obtained
either from the by-products of winemaking or, as is
the case of Chinese exporters, via chemical synthesis,
(101) On this basis, it was examined whether, despite the
from petrochemical or coal-related compounds such as
conclusions on the likelihood of recurrence of injurious
benzene.
dumping, compelling reasons existed which would lead
to the conclusion that it is not in the Union interest to
( 1 ) Source: Chinese exports’ database.
maintain measures against imports originating in China.

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L 110/14
EN
Official Journal of the European Union
24.4.2012
2. Interest of the Union industry and other Union
(109) Two major importers/users from the food sector
producers
cooperated fully in the proceeding. It could be
determined that both companies were profitable,
(102) The Union industry has proven to be in general a viable
including their product lines using the product
industry. This was confirmed by the positive devel
concerned as one of the raw materials. Besides sales of
opment of its economic situation observed during the
products manufactured using the product concerned
period considered partly due to its restructuring efforts
represented only a minor percentage of their total
and the measures in place. In particular, the Union
turnover. Thus it can be concluded that the continuation
industry improved its cost structure and profit situation
of the measures would not unduly affect the users of the
and production volume along the period considered.
food industry. Moreover for these users the existence of
diverse supply sources for the product concerned was
quite important.
(103) It can reasonably be expected that the Union industry
will continue to benefit from the measures to be main
tained. Should the measures against imports originating
5. Conclusion on Union interest
in China not be maintained, it is likely that the Union
industry will again suffer material injury from substantial
(110) Taking into account all of the factors outlined above, it is
volumes of dumped imports from China, causing a
concluded that there are no compelling reasons against
serious deterioration of its financial situation. Indeed,
the maintenance of the current anti-dumping measures.
there is a clear likelihood of injurious dumping in
substantial volumes which the Union industry could
not withstand. The Union industry would therefore
continue to benefit from the maintenance of the
H. ANTI-DUMPING MEASURES
current anti-dumping measures.
(111) All parties were informed of the essential facts and
considerations on the basis of which it is intended to
recommend that the existing measures be maintained
(104) Accordingly, it is concluded that the maintenance of anti-
on imports of the product concerned originating in
dumping measures against China would clearly be in the
China. They were also granted a period to make repre
interest of the Union industry.
sentations subsequent to this disclosure.
3. Interest of importers
(112) A user from the construction sector claimed that the
extension of the measures in force would cause a
(105) It is recalled that in the previous investigations it was
shortage of the product concerned, might increase their
found that the impact of the imposition of measures
production costs and thus result in increased prices of
would not be significant. No traders/importers
their finished products. No evidence was submitted to
cooperated in the current investigation. Bearing in
support these claims. Therefore, due to the lack of justifi
mind that there is no evidence suggesting that the
cation of the claims along with the lack of cooperation
measures in force considerably affected importers, it is
from users from the construction sector, it was not
concluded that the continuation of measures will not
possible to verify these claims.
affect the Union importers to any significant extent.
(113) The two users from the food sector that cooperated in
4. Interest of users
the investigation claimed that the impact of the
continuation of the measures on the food industry had
(106) TA is mainly used in the wine and food industry as a
not been sufficiently considered, and one of them
food and beverage additive, and in the construction
requested a hearing with the Hearing Officer.
industry as a retardant in the production of gypsum.
(114) During the hearing, this user did not disagree with the
(107) All known users have been contacted in this investi
conclusion that the continuation of the measures would
gation.
overall not negatively affect the profitability of the
company as a whole but claimed that the impact on
the profitability of the specific production line using
the product concerned, which represents only a minor
(108) There was no cooperation from users from the
percentage of the total turnover, would be in their view
construction industry. As established in the original
significant. It also claimed that domestic prices for
investigation, TA represents less than 2 % of the costs
tartaric acid had considerably increased after the review
of the gypsum products where it is used. Therefore it was
investigation period and that these price levels would
concluded that the continuation of the measures would
again significantly reduce their product profitability.
have a negligible influence on the costs and the
Nevertheless this user did not deny that the price
competitive position of the construction industry.
increase was a result of a lack of raw material supply

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EN
24.4.2012 Official
Journal
of
the
European
Union L
110/15
on the Union market whose level fluctuates regularly
HAS ADOPTED THIS REGULATION:
depending on the wine harvest and cannot therefore be
considered as lasting nor being caused by the anti-
dumping measures in force.
Article 1
1. A
definitive
anti-dumping
duty
is
hereby
imposed
on
imports of tartaric acid, excluding D-(-)-tartaric acid with a
(115) The other cooperating user, during a hearing with the
negative optical rotation of at least 12,0 degrees, measured in
investigation team, argued against the extension of the
a water solution according to the method described in the
measures with arguments of similar nature. Therefore,
European Pharmacopoeia, currently falling within CN code
these arguments were similarly rejected (see the
ex 2918 12 00 (TARIC code 2918 12 00 90) and originating
previous recital).
in the People’s Republic of China.
(116) A cooperating Chinese exporting producer argued that
2. The
rate
of
the
definitive
anti-dumping
duty
applicable,
to
the Union industry could not be considered as still
the net free-at-Union-frontier price, before duty, for the
being vulnerable, that the essential cause influencing
products manufactured by the companies listed below shall be
the Union industry situation was closely associated
as follows:
with climatic conditions and that, in consequence, it
was against the continuation of the measures. These
claims were not supported by evidence and hence
Anti-
TARIC
could not be accepted. Furthermore, they were not of a
Company
dumping
additional
nature as to change the findings as to the situation of the
duty
code
Union industry.
Changmao Biochemical Engineering Co. Ltd,
10,1 % A688
Changzou City, People’s Republic of China
(117) Finally the Union industry, in consideration of its profit
Ninghai Organic Chemical Factory, Ninghai,
4,7 % A689
ability figures during the period considered, justified that
People’s Republic of China
the closure in mid-2008 of the sole French producer had,
in the short run, diminished the quantity of product
All other companies (except Hangzhou 34,9 % A999
concerned available in the domestic market, thus
Bioking Biochemical Engineering Co. Ltd,
temporarily increasing sales prices and, accordingly,
Hangzhou City, People’s Republic of China
increasing their profitability. The Union industry argued
— TARIC additional code A687)
that given these circumstances, these changes could not
in any case be considered as been of a lasting nature.
Thus, the findings as regard the situation of the Union
3. The
application
of
the
individual
duty
rates
specified
for
industry remain unchanged.
the companies mentioned in paragraph 2 shall be conditional
upon presentation to the customs authorities of the Member
States of a valid commercial invoice, which shall conform to the
(118) In summary, after having considered all the comments
requirements set out in the Annex. If no such invoice is pres
submitted following disclosure to interested parties of the
ented, the duty rate applicable to all other companies shall
conclusions of the investigation, it was considered that
apply.
none of them was of such a nature as to change the
conclusions reached during the investigation.
4. Unless
otherwise
specified,
the
provisions
in
force
concerning customs duties shall apply.
(119) It follows from the above that, as provided for by
Article 11(2) of the basic Regulation, the anti-dumping
Article 2
measures applicable to imports of tartaric acid orig
inating in China should be maintained for an additional
This Regulation shall enter into force on the day following that
period of five years,
of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 16 April 2012.
For the Council
The President
N. WAMMEN

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L 110/16
EN
Official Journal of the European Union
24.4.2012
ANNEX
(1) A declaration signed by an official of the entity issuing the commercial invoice, in the following format, must appear
on the valid commercial invoice referred to in Article 1(3): The name and function of the official of the entity which
has issued the commercial invoice.
(2) The following declaration: ‘I, the undersigned, certify that the (volume) of tartaric acid sold for export to the European
Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in (country
concerned). I declare that the information provided in this invoice is complete and correct.’
Date and signature

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Document Outline

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