HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 318/10
EN
Official Journal of the European Union
15.11.2012
COMMISSION REGULATION (EU) No 1071/2012
of 14 November 2012
imposing a provisional anti-dumping duty on imports of threaded tube or pipe cast fittings, of
malleable cast iron, originating in the People's Republic of China and Thailand
THE EUROPEAN COMMISSION,
their views known in writing and to request a hearing
within the time limit set in the Notice of Initiation.
Having regard to the Treaty on the Functioning of the European
(4) All
interested
parties,
who
so
requested
and
showed
that
Union,
there were particular reasons why they should be heard,
were granted a hearing.
Having regard to Council Regulation (EC) No 1225/2009 of
30 November 2009 on protection against dumped imports
(5)
In view of the large number of exporting producers in
from countries not members of the European Community (
the PRC, Union producers and unrelated importers,

1 )
(the basic Regulation), and in particular Article 7 thereof,
sampling was envisaged in the Notice of Initiation in
accordance with Article 17 of the basic Regulation. In
order to enable the Commission to decide whether
sampling would be necessary and, if so, to select a
After consulting the Advisory Committee,
sample, all exporting producers in the PRC, Union
producers and unrelated importers were asked to make
themselves known to the Commission and to provide, as
Whereas:
specified in the Notice of Initiation, basic information on
their activities related to threaded malleable fittings (as
defined in Section B Below) for the period from 1.1.2011
A. PROCEDURE
to 31.12.2011. No sampling was envisaged for the
exporting producers in the other two countries
1. Initiation
concerned, Thailand and Indonesia.
(1) On
16
February
2012,
the
European
Commission
(the
Commission) announced, by a notice published in the
(6) In
order
to
allow
exporting
producers
in
the
PRC
to
Official Journal of the European Union (
submit a claim for market economy treatment (MET)

2 ) (Notice of Initi
ation), the initiation of an anti-dumping proceeding with
or individual treatment (IT), if they so wished, the
regard to imports into the Union of threaded tube or
Commission sent claim forms to the exporting
pipe cast fittings, of malleable cast iron, originating in
producers in the PRC known to be concerned and to
the People's Republic of China (the PRC), Thailand and
the Chinese authorities. Two companies requested MET
Indonesia (the countries concerned).
pursuant to Article 2(7) of the basic Regulation, and four
companies requested IT pursuant to Article 9(5) of the
basic Regulation.
(2)
The proceeding was initiated as a result of a complaint
lodged on 3 January 2012 by the Defence Committee of
(7) The
Commission
officially
disclosed
the
MET
findings
to
Tube or Pipe Cast Fittings, of Malleable Cast Iron of the
the exporting producers concerned in the PRC, the
European Union (the complainant) on behalf of
Chinese authorities and the complainant. They were
producers representing more than 50 %, of the total
also given an opportunity to make their views known
Union production of threaded tube or pipe cast fittings
in writing.
of malleable cast iron ('threaded malleable fittings'). The
complaint contained prima facie evidence of dumping of
the said product and of material injury resulting
(8) As
regards
the
Union
producers
and
as
duly
explained
in
therefrom, which was considered sufficient to justify
recital (29) below, six Union producers provided the
the initiation of an investigation.
requested information and agreed to be included in a
sample. On the basis of the information received from
the cooperating Union producers, the Commission
selected a sample of three Union producers on the
2. Parties concerned by the proceeding
basis of their sales volume.
(3) The
Commission
officially
advised
the
complainant,
the
Union producers, the exporting producers, unrelated
(9) As
explained
in
recital
(31)
below,
33
unrelated
importers, users and the representatives of the
importers provided the requested information and
exporting countries of the initiation of the investigation.
agreed to be included in the sample. On the basis of
The Commission also advised producers in Argentina as
the information received from these parties, the
it was envisaged as a possible analogue country.
Commission selected a sample of nine importers
Interested parties were given an opportunity to make
having the largest volume of imports to the Union and
their geographic location in the Union. As one importer
( 1 ) OJ L 343, 22.12.2009, p. 51.
did not submit a questionnaire reply, the final sample
( 2 ) OJ C 44, 16.2.2012, p. 33.
consisted of the remaining eight importers.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/11
(10) As explained in recital (30) below, 12 exporting
— MegaGroup Trade Holding B.V., Veghel, the
producers in the PRC provided the requested information
Netherlands
and agreed to be included in the sample. On the basis of
the information received from these parties, the
— Raccorditalia s.r.l., Brugherio(MB), Italy
Commission selected a sample of three exporting
producers in the PRC having the largest volume of
(14) In
view
of
the
need
to
establish
a
normal
value
for
the
exports to the Union.
exporting producers in the PRC in case MET is not
granted to them, a verification to establish normal
(11) The Commission sent questionnaires to the three
value on the basis of data from India as analogue
sampled Union producers, the three sampled Chinese
country took place at the premises of the following
exporting producers, three Thai exporting producers,
company:
three Indonesian exporting producers, nine sampled
unrelated importers and seven users.
— Jainson Industries, Jalandhar, Punjab, India
3. Investigation period and period considered
(12) Questionnaire
replies
were
received
from
three
sampled
Union producers, three Chinese exporting producers, two
(15) The
investigation
of
dumping
and
injury
covered
the
Thai exporting producers, one Indonesian exporting
period from 1.1.2011 to 31.12.2011 (‘the investigation
producer and eight unrelated importers. None of the
period’ or ‘IP’). The examination of trends relevant for the
users submitted a questionnaire reply.
assessment of injury covered the period from 2008 to
the end of the investigation period (the period
(13) The
Commission
sought
and
verified
all
the
information
considered).
deemed necessary for a provisional determination of
dumping, resulting injury and Union interest. Verification
B. PRODUCT CONCERNED AND LIKE PRODUCT
visits were carried out at the premises of the following
companies:
1. Product concerned
(a) Union producers
(16) The
product
concerned
as
described
in
the
Notice
of
Initiation is threaded tube or pipe cast fittings, of
— ATUSA Accesorios de Tuberia S.A., Salvatierra
malleable cast iron (‘the product concerned’), currently
(Alava), Spain
falling within CN code ex 7307 19 10.
(17) The
main
input
raw
materials
are
metal
scrap,
coke/elec
— Berg Montana Fittings EAD, Montana, Bulgaria
tricity, sand (for moulding) and zinc (for galvanisation).
The first step of the manufacturing process is the melting
— Georg Fischer Fittings GmbH, Traisen, Austria
of metal scrap in cupolas. This is followed by the
moulding process and the casting of the various shapes
(b) Exporting producers in the PRC
which are then separated into single pieces. The products
have to go through a lengthy annealing process to ensure
— Hebei Jianzhi Casting Group Ltd., Yutian County,
that they are sufficiently malleable to be used in appli
Hebei, PRC
cations where e.g. shock and vibration resistance are
required and to withstand quick temperature changes.
— Jinan Meide Casting Co., Ltd., Pingyin, Shandong,
Subsequently, fittings can be galvanized, if needed.
PRC
Then the threading of the products takes place.
— Qingdao Madison Industrial Co., Ltd., Jimo,
(18) Threaded
malleable
fittings
are
used
for
connecting
two
Shandong, PRC
or more pipes or tubes, connecting a pipe to an
apparatus, changing the direction of a fluid flow, or
(c) Exporting producers in Thailand
closing a pipe. Threaded malleable fittings are mainly
used in the gas, water and heating systems of residential
— Siam Fittings Co., Ltd., Samutsakorn, Thailand;
and non-residential buildings. They are also used in the
pipe systems of oil refineries. Malleable fittings are
— BIS Pipe Fitting Industry Co., Ltd, Samutsakorn,
available in many configurations, the most common
Thailand
being 90-degree elbows, tees, couplings, crosses, and
unions. They are produced in both black (non-
(d) Exporting producer in Indonesia
galvanized) and galvanized form.
— PT. Tri Sinar Purnama, Semarang, Indonesia
2. Like product
(19) The product concerned and the product produced and
(e) Unrelated importers in the Union
sold on the domestic market of the PRC, Thailand and
Indonesia, and on the domestic market of India, which
— Crane Limited, Ipswich, United Kingdom
served as an analogue country, as well as the product
manufactured and sold in the Union by the Union
— GEBO Armaturen GmbH, Schwelm, Germany
industry were found to have the same basic physical
and technical characteristics. They are therefore
— Hitachi Metals Europe GmbH, Düsseldorf,
provisionally considered as alike within the meaning of
Germany
Article 1(4) of the basic Regulation (the like product).

---

L 318/12
EN
Official Journal of the European Union
15.11.2012
Claims regarding product scope
the importers/traders which purchase both black heart
malleable fittings from the countries concerned and
(20) Several
claims
have
been
submitted
in
respect
of
the
white heart malleable fittings produced by the Union
product scope, mostly by importers but also by auth
industry, sell them to the users without making a
orities of a Member State. The claims are addressed indi
distinction between the two grades of material. As to
vidually below.
the users of the product under consideration, the inves
tigation has confirmed that they do not differentiate
between white heart and black heart fittings to any
Electro-galvanized fittings
significant degree.
(21) An importer claimed
that ‘electro-galvanized fittings’
should be excluded from the definition of the threaded
(25) This is also suggested by the fact that both white heart
malleable fittings. It is argued that the production of
and black heart fittings are included in the European
electro-galvanized fittings requires additional production
Standard EN 10242 and in the international standard
steps after threading, such as washing and an additional
ISO 49, which specify the requirements for the design
electrical galvanization. This arguably leads to a number
and performance of the malleable fittings. As concerns,
of quality improvements and advantages vis-à-vis regular
in particular, the grade of the material used, both white
fittings. However, it is clear that electro-galvanized
heart and black heart are admitted.
fittings are fully interchangeable with regular fittings,
and therefore have the same basic physical and
technical characteristics. They are therefore considered
(26) Given the above, it is provisionally concluded that the
to be product concerned.
white heart malleable fittings manufactured and sold by
part of the Union producers should be considered as like
product to the black heart malleable fittings produced
Bodies of compression fittings
and exported to the Union by the exporting countries
concerned.
(22) The same importer imports bodies of compression
fittings, which it further assembles together with other
parts into finished compression fittings. It has been ques
Claim regarding import of unthreaded fittings
tioned whether the bodies of compression fittings fall
under the definition of the product concerned. While
(27) One
importer
imports
limited
quantities
of
unfinished
these bodies look like a fitting and are threaded, they
fittings which are not threaded. The threading is
cannot be used directly to connect pipes – they have
applied subsequently by the importer. Since the
to be assembled before the assembled fitting connects
imported goods are not threaded, they are not considered
the pipes. Although they are more expensive, they are
as product concerned.
interchangeable with other threaded fittings, since they
are also used to connect pipes and tubes, albeit mainly
in repairing rather than in new installations. It is
Claim regarding the definition of ‘malleable cast iron’ under the
therefore provisionally concluded that compression
Combined Nomenclature
fittings and their bodies fall within the definition of the
product concerned.
(28) The authorities of one of the Member States pointed out
the fact that, according to the explanatory notes to the
Combined Nomenclature ( 2 ), the expression ‘malleable’
Black heart and white heart fittings
includes spheroidal graphite cast iron (identical to

ductile cast iron). While no sales of threaded fittings
(23) Some
parties
claimed
that
the
malleable
fittings
manu
made from ductile cast iron were reported by any
factured and sold by the Union producers could not be
interested party during the IP, there is evidence that
considered comparable to those produced and exported
this is possible. As these fittings have the same basic
to the Union by the exporting countries concerned on
physical characteristics as the threaded malleable fittings
the grounds that the grade of the material used for the
investigated, it is considered appropriate to clarify that
Union produced ones is, in general, white heart, while
ductile iron products are falling within the scope of the
the grade of the material used for the exported ones is
proceeding and the measures.
black heart malleable cast iron.
C. SAMPLING
(24) As
already
concluded
in
Council
Regulation
(EC)
No
1. Sampling of Union producers
1784/2000 ( 1 ) regarding the same product, the investi
gation has provisionally shown that there is no difference
(29) In
accordance
with
Article
17
of
the
basic
Regulation,
in market perception distinguishing between white heart
the Commission selected a sample based on the largest
fittings and black heart fittings as in all respects other
representative volume of sales of threaded malleable
than the carbon content they have closely resembling
fittings to unrelated customers in the Union, which can
characteristics, the same end uses and are thus inter
reasonably be investigated within the time available. The
changeable. This has been confirmed by the fact that
selected sample consists of three producers belonging to
( 1 ) OJ L 208, 18.8.2000, p. 8. Rec. 14f.
( 2 ) OJ C 137, 6.5.2011, p. 1.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/13
two groups of companies, representing 81 % of sales of
producers which were found to meet the criteria laid
threaded malleable fittings to unrelated customers in the
down in Article 2(7)(c) of the basic Regulation.
Union out of six Union producers known to produce the
like product. In accordance with Article 17(2) of the
basic Regulation, all Union producers and the
(33) Briefly,
and
for
ease
of
reference
only,
these
criteria
are
complainant were consulted, and all interested parties
set out below:
were invited to comment on the proposed sample. No
comments on the selection of the sample were made.
1. business decisions are made in response to market
conditions and without significant State interference,
and costs reflect market values;
2. Sampling of exporting producers in the PRC
(30) In
accordance
with
Article
17
of
the
basic
Regulation,
2. firms have one clear set of basic accounting records,
the Commission selected a sample based on the largest
which are independently audited, in line with inter
representative volume of exports which can reasonably
national accounting standards and applied for all
be investigated within the time available. Twelve
purposes;
exporting producers accounting for 51 % of Chinese
exports to the Union during the IP submitted sampling
information requested in Annex A to the Notice of Initi
3. there are no significant distortions carried over from
ation. The selected sample consists of three companies,
the former non-market economy system;
representing 88
% of the export volume of the
cooperating parties from the PRC to the Union. In
accordance with Article 17(2) of the basic Regulation,
4. legal certainty and stability is provided by bankruptcy
all exporting producers concerned and the Chinese auth
and property laws; and
orities were consulted. No comments on the selection of
the sample were made.
5. currency exchanges are carried out at the market rate.
(34) Two
exporting
producers
requested
MET
pursuant
to
3. Sampling of unrelated importers
Article 2(7)(b) of the basic Regulation and replied to
(31) In
accordance
with
Article
17
of
the
basic
Regulation,
the MET claim form within the given deadlines.
the Commission selected a sample based on the largest
representative volume of imports into the Union as well
as the geographical location of the companies, which can
(35) The
Commission sought
all
the
information deemed
reasonably be investigated within the time available. A
necessary and verified all the information submitted in
total of 33 unrelated importers submitted the sampling
the MET claims at the premises of the companies in
information requested in Annex B to the Notice of Initi
question.
ation. The initial sample selected consists of six importers
in five Member States, representing 59 % of imports of
threaded malleable fittings of cooperating importers into
(36) The verification established that both exporting
the Union. In accordance with Article 17(2) of the basic
producers claiming MET did not meet the requirements
Regulation, all importers were consulted. Following
of the criteria laid down in Article 2(7)(c) of the basic
comments, three further companies were added to the
Regulation.
sample, resulting in a final sample of nine importers in
six Member States, representing 67 % of imports of
threaded malleable fittings of cooperating importers
(37) The
audited
accounts
of
both
exporters
did
not
comply
into the Union No further comments were received on
with international accounting standards, and the audited
the enlarged sample. As one importer did not submit a
accounts of one exporter were even incomplete, as they
questionnaire reply, the final sample consisted of the
did not include a cash-flow statement. It is therefore
remaining eight importers.
evident that they fail to comply with criterion 2.
(38) One
exporter
could
not
demonstrate
that
the
capital
contributed during its privatisation was properly
D. DUMPING
evaluated, while the second exporter received state
1. People's Republic of China
benefits mainly in the form of a preferential income
tax rate. They therefore fail to comply with criterion 3.
1.1. Market economy treatment
(32) Pursuant
to
Article
2(7)(b)
of
the
basic
Regulation,
in
(39) One company claiming MET commented on the
anti-dumping investigations concerning imports orig
disclosure. It did not dispute any of the facts contained
inating in the PRC, normal value shall be determined
in the disclosure, but raised three main issues in its
in accordance with Article 2(1) to (6) for those
comments.

---

L 318/14
EN
Official Journal of the European Union
15.11.2012
(40) Firstly, it argued that the MET determination is illegal,
3. the majority of the shares belong to private persons.
since it was made almost two months after the statutory
State officials appearing on the Boards of Directors or
deadline. In this respect, is has to be mentioned that this
holding key management positions shall either be in
delay was mainly due to the fact that an earlier MET
minority or it must demonstrated that the company is
verification could not take place as the Chinese
nonetheless sufficiently independent from state inter
exporters were not available at that time. It should be
ference;
underlined that the timing of the determination did not
have any impact on the outcome.
4. exchange rate conversions are carried out at the
market rate; and
(41) Secondly,
it
was
argued
that
the
non-compliance
with
the
audited accounts is exclusively based on formal grounds.
Furthermore, it was argued that ‘an accounting practice that
5. state interference is not such as to permit circum
is not fully formally in line with IAS does not constitute a
vention of measures if individual exporters are given
violation of the second MET criterion as long as it has not
different rates of duty.
affected the company's financial results.’ In this respect, it is
worth noting that criterion 2 does not have any reference
(46) The
exporting
producers
which
did
not
meet
the
MET
to the financial results of the company. The claim is
criteria as well as the third sampled producer all claimed
therefore unfounded. The relevant criterion, ‘accounting
IT. On the basis of the information available, it was
records which are independently audited in line with
provisionally established that all sampled exporting
international accounting standards’, is indeed a formal
producers fulfilled the requirements foreseen in
requirement. It is nevertheless worth mentioning that
Article 9(5) of the basic Regulation and, thus, can be
all violations were of a significant nature, either due to
granted IT.
the magnitude of the amounts involved or the
significance of the violation (i.e. a mandatory analysis
was simply not carried out).
1.3. Analogue country
(47) According
to
Article
2(7)(a)
of
the
basic
Regulation,
(42) Lastly,
it
was
claimed
that
the
benefits
received
in
the
normal value for the exporting producers not granted
form of a preferential income tax rate have not been
MET shall be established on the basis of the price or
used in the past to deny MET. In this respect, it is
constructed value in a market economy third country
noted that every case is judged on its own merits.
('analogue country').
Under MET criterion 3 it is assessed whether the
Chinese exporters are subject to significant distortions
carried over from the former non-market economy
(48) In the Notice of Initiation the Commission indicated its
system. Such is the case here with regard to state
intention to use Argentina as an appropriate analogue
benefits, which were mainly in the form of a preferential
country for the purpose of establishing normal value
tax rate. General comments of the kind put forward by
for the PRC and invited all interested parties to
the Chinese exporter are therefore not sufficiently
comment thereon.
substantiated.
(49) A
number
of
exporters
and
importers
have
submitted
(43) In
conclusion,
it
has
not
been
shown
that
MET
criteria
2
comments on the choice of the analogue country
and 3 were fulfilled by either of the exporting producers.
arguing that Argentina would not be a suitable
Therefore, MET cannot be granted to these companies.
analogue country, mainly due to the low level of
domestic competition and the consequent high price
level on the Argentinian domestic market. Indeed, there
1.2. Individual treatment
are indications that the Argentinian market is largely
shared between three domestic producers. According to
(44) Pursuant
to
Article
2(7)(a)
of
the
basic
Regulation,
a
Argentinian statistics, imports into the Argentinian
country-wide duty, if any, is established for countries
market are negligible, since the traditionally largest
falling under that provision, except in those cases
foreign suppliers Brazil and China are subject to high
where companies are able to demonstrate that they
anti-dumping duties.
meet all criteria set out in Article 9(5) of the basic Regu
lation.
(50) The
same
exporters
and
importers
proposed
Thailand,
India and Indonesia as more suitable analogue countries.
(45) Briefly,
and
for
ease
of
reference
only,
these
criteria
are
Taking account of the comments by interested parties,
set out below:
cooperation from Argentinian and Indian producers was
sought, and finally one Argentinian and one Indian
producer accepted to cooperate.
1. in the case of wholly or partly foreign owned firms or
joint ventures, exporters are free to repatriate capital
and profits;
(51) An
analysis
of
these
replies
showed
that
the
domestic
prices reported by the sole cooperating Argentinian
producer were indeed very high, substantially higher
2. export prices and quantities, and conditions and terms
than the sales prices of the sampled Union producers
of sale are freely determined;
as well as their non-injurious price.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/15
(52) On the other hand, it turned out that the Indian market
production, represented more than 80 % of the total
is highly competitive with an estimated number of 300
sales volume of that type, and where the weighted
producers. As a result, the domestic prices reported by
average sales price of that type was equal to or higher
the cooperating Indian exporter can be considered
than the cost of production, normal value was based on
reasonable.
the actual domestic price. This price was calculated as a
weighted average of the prices of all domestic sales of
that type made during the IP.
(53) Thailand
and
Indonesia
are
involved
in
the
same
inves
tigation, but a very limited number of producers operate
in both countries rendering their domestic markets less
(60) Where the volume of profitable sales of a product type
competitive compared to India. It is therefore
represented 80 % or less of the total sales volume of that
provisionally concluded that India is an appropriate
type, or where the weighted average price of that type
analogue country in accordance with Article 2(7)(a) of
was below the cost of production, normal value was
the basic Regulation.
based on the actual domestic price, calculated as a
weighted average of profitable sales of that type only.
1.4. Normal Value
(61) Where
the
product
types
were
all
sold
at
a
loss,
it
was
(54) Since
no
sampled
Chinese
exporter
was
granted
MET,
considered that they were not sold in the ordinary course
normal value was established pursuant to the provision
of trade.
of Article 2(7)(a) of the basic Regulation, using India as
analogue market economy third country.
(62) For
sales
of
product
types
not
made
in
the
ordinary
course of trade, as well as for product types which
(55) It
was first established for each exporting producer
were not sold in representative quantities on the
concerned, whether the total domestic sales of threaded
domestic market, a constructed normal value was used.
malleable fittings of the analogue country producer were
representative, i.e. whether the total volume of such sales
represented at least 5 % of each exporting producer's
(63) To
construct
normal
value,
the
weighted
average
selling,
total volume of export sales of the product concerned
general and administrative (SG&A) expenses incurred and
to the Union during the IP. This was the case for two of
the weighted average profit realised by the sole
the three sampled exporting producers.
cooperating analogue country producer on domestic
sales of the like product, in the ordinary course of
trade during the investigation period, was added to its
(56) Subsequently,
those
product
types
sold
domestically
by
own average cost of production during the investigation
the companies where the analogue country producer had
period. For any product type sold in non-representative
overall representative domestic sales that were identical
quantities in the domestic market, the weighted average
or directly comparable with the types sold for export to
profit and SG&A expenses in the ordinary course of trade
the Union were identified.
of these non-representative sales was used to construct
normal value. Where necessary, the costs of production
and SG&A expenses were adjusted, before being used in
(57) For
each
type
sold
by
the
analogue
country
producer
on
the ordinary course of trade test and in constructing
its domestic market and found to be directly comparable
normal values.
with the type of threaded malleable fittings sold for
export to the Union by the exporting producers, it was
established whether domestic sales were sufficiently
1.5. Export price
representative. Domestic sales of a particular product
type were considered sufficiently representative when
(64) As
the
sampled
producers
were
granted
IT
and
made
the volume of that product type sold on the domestic
export sales of the product concerned to the Union
market to independent customers during the IP repre
directly to independent customers in the Union, the
sented at least 5 % of the total volume of the comparable
export price was established in accordance with
product type sold for export to the Union by the
Article 2(8) of the basic Regulation, namely on the
exporting producer.
basis of export prices actually paid or payable.
(58) The Commission subsequently examined for the
1.6. Comparison
analogue country producer whether each type of the
like product sold domestically in representative quantities
(65) The
comparison
between
normal
value
and
export
price
could be considered as being sold in the ordinary course
was made on an ex-works basis.
of trade. This was done by establishing for each product
type the proportion of profitable sales to independent
customers on the domestic market during the IP.
(66) For
the
purpose
of
ensuring
a
fair
comparison
between
the normal value and the export price, due allowance in
the form of adjustments was made for differences
(59) Where the sales volume of a product type, sold at a net
affecting prices and price comparability in accordance
sales price equal to or above the calculated cost of
with Article 2(10) of the basic Regulation.

---

L 318/16
EN
Official Journal of the European Union
15.11.2012
(67) Appropriate adjustments for physical characteristics,
cooperating companies were dumping at a lower level,
indirect taxes, transport, insurance, handling loading
and in order to ensure the effectiveness of any measures.
and ancillary costs, packing, credit, commissions and
bank charges were made in all cases where they were
found to be reasonable, accurate and supported by
(74) On this basis the provisional weighted average dumping
verified evidence.
margins expressed as a percentage of the CIF Union
frontier price, duty unpaid, are as follows:
1.7. Dumping margins
Company Dumping
Margin
(68) For the sampled companies, the weighted average normal
value of each type of the like product established for the
Hebei Jianzhi 67,8
%
analogue country was compared with the weighted
average export price of the corresponding type of the
Jinan Meide 39,3
%
product concerned, as provided for in Articles 2(11)
and 2(12) of the basic Regulation.
Qingdao Madison 32,1
%
Other cooperating companies 42,3
%
(69) On
this
basis
the
provisional
weighted
average
dumping
margins expressed as a percentage of the CIF Union
All other companies 67,8
%
frontier price, duty unpaid, are as follows:
2. Thailand and Indonesia
Company Dumping
Margin
2.1. Normal Value
Hebei Jianzhi 67,8
%
(75) In
accordance
with
Article
2(2)
of
the
basic
Regulation,
the Commission first established for each of the
Jinan Meide 39,3
%
cooperating exporting producers whether its total
domestic sales of the like product were representative,
Qingdao Madison 32,1
%
i.e. whether the total volume of such sales represented
at least 5 % of its total volume of export sales of the
product concerned to the Union. The investigation estab
(70) The weighted average dumping margin of the
lished that the domestic sales of the like product were
cooperating exporting producers not included in the
representative for all cooperating exporting producers in
sample was calculated in accordance with the provisions
Thailand and Indonesia.
of Article 9(6) of the basic Regulation. This margin was
established on the basis of the margins established for the
sampled exporting producers.
(76) The
Commission
subsequently
identified
those
product
types sold domestically by the companies having
overall representative domestic sales that were identical
(71) On
this
basis,
the
dumping
margin
calculated
for
the
or closely resembling with the types sold for export to
cooperating companies not included in the sample was
the Union.
provisionally established at 42,3 %.
(77) For
each
type
of
the
like
product
sold
by
the
exporting
producers on their domestic market and found to be
(72) With
regard
to
all
other
exporting
producers
in
the
PRC,
comparable with the type of the product concerned
the dumping margins were established on the basis of
sold for export to the Union, it was established
the facts available in accordance with Article 18 of the
whether domestic sales were sufficiently representative
basic Regulation. To this end the level of cooperation
for the purposes of Article 2(2) of the basic Regulation.
was first established by comparing the volume of
Domestic sales of a particular product type were
exports to the Union reported by the cooperating
considered sufficiently representative when the volume
exporting producers with the equivalent Eurostat
of that product type sold on the domestic market to
import statistics.
independent customers during the IP represented at
least 5 % of the total volume of the comparable
product type sold for export to the Union.
(73) As
the
cooperation
accounted
for
more
than
50
%
of
total Chinese exports to the Union and the industry
can be considered fragmented due to the high number
(78) The
Commission
subsequently
examined
whether
each
of exporting producers in the PRC, the level of
type of the like product sold domestically in represen
cooperation can be considered high. Since there was no
tative quantities could be considered as being sold in the
reason to believe that any exporting producer deliberately
ordinary course of trade pursuant to Article 2(4) of the
abstained from cooperating, the residual dumping margin
basic Regulation. This was done by establishing for each
was set at the level of the sampled company with the
product type the proportion of profitable sales to inde
highest dumping margin. This was considered appro
pendent customers on the domestic market during the
priate since there were no indications that the non-
investigation period.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/17
(79) Where the sales volume of a product type, sold at a net
(87) Appropriate
adjustments
for
level
of
trade,
transport,
sales price equal to or above the calculated cost of
insurance, handling loading and ancillary costs, packing,
production, represented more than 80 % of the total
credit, commissions and bank charges were made in all
sales volume of that type, and where the weighted
cases where they were found to be reasonable, accurate
average sales price was equal to or higher than the unit
and supported by verified evidence.
cost, normal value, by product type, was calculated as the
weighted average of all domestic sales prices of the type
in question.
2.4. Dumping margins
(a) T h a i l a n d
(80) Where the volume of profitable sales of a product type
represented 80 % or less of the total sales volume of that
(88) For
the
two
cooperating
companies
in
Thailand,
the
product type, or where the weighted average price of that
weighted average normal value of each type of the like
type was below the unit cost, normal value was based on
product was compared with the weighted average export
the actual domestic price, which was calculated as the
price of the corresponding type of the product
weighted average price of only the profitable domestic
concerned, as provided for in Article 2(11) and 2(12)
sales of the type in question.
of the basic Regulation.
(81) Where
the
product
types
were
all
sold
at
a
loss,
it
was
(89) Given
that
the
level
of
cooperation
was
considered
to
be
considered that they were not sold in the ordinary course
high (the volume of exports of the two cooperating Thai
of trade.
companies represented more than 80 % of total Thai
exports to the Union during the IP), the dumping
margin for all other Thai exporting producers was set
(82) For
sales
of
product
types
not
made
in
the
ordinary
at the level of the highest dumping margin of the two
course of trade, as well as for product types which
cooperating companies.
were not sold in representative quantities on the
domestic market, a constructed normal value was used.
(90) On this basis the provisional weighted average dumping
margins for Thai companies expressed as a percentage of
(83) To
construct
normal
value,
the
weighted
average
selling,
the CIF Union frontier price, duty unpaid, are as follows:
general and administrative ('SG&A') expenses incurred
and the weighted average profit realised by the
cooperating exporting producers concerned on
domestic sales of the like product, in the ordinary
Company Dumping
Margin
course of trade during the investigation period, was
BIS Pipe Fitting Industry Co., Ltd 15,9
%
added to their own average cost of manufacturing
during the investigation period. For any product type
sold in non-representative quantities in the domestic
Siam Fittings Co., Ltd 50,7
%
market, the weighted average profit and SG&A
expenses in the ordinary course of trade of these non-
All other companies 50,7
%
representative sales was used to construct normal value.
(b) I n d o n e s i a
2.2. Export price
(91) For
the
sole
cooperating
company,
the
weighted
average
normal value of each type of thelike product was
(84) As all exports of the product concerned of the
cooperatng Thai and Indonesian exporters were made
compared with the weighted average export price of
to independent customers in the Union, the export
the corresponding type of the product concerned, as
price was established in accordance with Article 2(8) of
provided for in Article 2(11) and 2(12) of the basic
the basic Regulation, namely on the basis of export
Regulation.
prices actually paid or payable.
(92) Given
that
the
level
of
cooperation
was
considered
to
be
2.3. Comparison
high (the volume of exports of the sole cooperating
Indonesian company represented more than 80 % of
(85) The
comparison
between
normal
value
and
export
price
total Indonesian exports to the Union during the IP),
was made on an ex-works basis.
the dumping margin for all other Indonesian exporting
producers was set at the same level as for the
cooperating company.
(86) For
the
purpose
of
ensuring
a
fair
comparison
between
the normal value and the export price, due allowance in
the form of adjustments was made for differences
(93) On this basis the provisional weighted average dumping
affecting prices and price comparability in accordance
margins expressed as a percentage of the CIF Union
with Article 2(10) of the basic Regulation.
frontier price, duty unpaid, are as follows:

---

L 318/18
EN
Official Journal of the European Union
15.11.2012
Company Dumping
Margin
above the de minimis threshold as defined in Article 9(3)
of the basic Regulation (see recitals (74), (90) and (93)
PT. Tri Sinar Purnama 11,0
%
above).
All other companies 11,0
%
(100) With regard to the volumes of the dumped imports from
Indonesia, it was found that they constituted only around
E. INJURY
2,5 % of all imports of the like product to the Union
during the IP. Therefore, they can be considered as not
1. Union production
constituting a cause of material injury to the Union
industry in the sense of Article 9(3) of the basic Regu
(94) During
the
IP,
the
like
product
was
manufactured
by
six
lation or the provisions of the WTO Anti-Dumping
producers in the Union. As indicated under recital (29)
Agreement ( 1 ).
above, two groups of Union producers, comprised of
three Union producers were selected in the sample, repre
senting 81 % of the total Union production of the like
(101) At the same time the investigation established at this
product.
provisional stage that the majority of imports from
Indonesia may well have been improperly declared
under a different CN code, namely 7307 99 10 instead
2. Definition of the Union industry
of 7307 19 10 that is normally relevant for threaded
tube or pipe cast fittings, of malleable cast iron.
(95) Within
the
meaning
of
Article
4(1)
and
Article
5(4)
of
However, all or at least a large part of those possibly
the basic Regulation, all six existing Union producers
misdeclared imports are already included in the figure
manufacturing the like product during the IP constitute
of 2,5 % mentioned in the previous recital.
the Union industry and they will therefore be hereafter
referred to as the ‘Union industry’.
(102) In the light of the above, it was provisionally decided not
to cumulate those imports with the dumped imports
3. Union consumption
from Thailand and the PRC.

(96) Union
consumption
was
established
on
the
basis
of
the
sales volume of the Union industry on the Union market,
(103) With regard to the volumes of the dumped imports from
and the import volume reported by Eurostat, as adjusted
Thailand and the PRC, they cannot be considered
by the findings of the investigation.
negligible as their market share attain 5,4 % and

47,3 %, respectively, in the IP.
(97) Union consumption significantly decreased by 21
%
(104) The cumulative assessment was provisionally considered
between 2008 and 2009, subsequently increasing by
appropriate in view of the comparable conditions of
12 percentage points to a level 9
% below the
competition between the imports from these two
consumption at the beginning of the period considered.
countries and the like Union product, i.e. through the
same sales channels and to the same categories of
customers. Indeed, in a number of cases it was shown
Union consumption (tonnes)
that the imported products from the PRC and Thailand
were sold via the same distributors.
2008 2009 2010 IP
Union
72 231 57
398 59
190 65
460
(105) In the light of the above, it was provisionally considered
consumption
that all the criteria set out in Article 3(4) of the basic
Regulation were met. The imports from Thailand and the
Index 100 79 82 91
PRC were therefore examined cumulatively. They are
hereby referred to as ‘imports from the two countries
Source: Complaint data, Eurostat and questionnaire replies.
concerned’.
4. Imports from the countries concerned
4.2. Volume and market share of the imports from the two
countries concerned
4.1. Cumulative assessment of the effects of the imports from
the countries concerned
(106) The volume of imports of the product concerned from
the two countries concerned into the Union market has
(98) The
Commission
examined
whether
imports
of
threaded
increased by 15 % over the period considered. While
malleable fittings originating in the countries concerned
imports initially decreased by 16 % between 2008 and
should be assessed cumulatively in accordance with
2009 due to the decrease in consumption mentioned in
Article 3(4) of the basic Regulation.
recital (97) above, they substantially increased by 31
percentage points subsequently until the IP.
(99) The
margin
of
dumping
established
in
relation
to
the
( 1 ) See Commission Decision 98/175/EC of 3 March 1998, OJ L 63 of
imports from each of the countries concerned was
4.3.1998, p. 32, recital 2.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/19
Union import volume (tonnes)
Import prices (EUR/tonne)
2008 2009 2010 IP
2008 2009 2010 IP
PRC 26
188 22
413 22
065 30
786
Index 100 109 114 117
Index 100 86 84 118
Thailand 2
126 2
208 2
036 2
148
Thailand 3
723 2
681 3
331 3
485
Index 100 104 96 101
Index 100 72 89 94
Two
1 515 1
626 1
679 1
721
countries
Two
29 911 25
094 25
396 34
271
concerned
countries
concerned
Index 100 107 111 114
Index 100 84 85 115
Source: Eurostat.
Source: Eurostat and findings of the investigation.
(107) The market share of dumped imports from the two
(b) P r i c e u n d e r c u t t i n g
countries concerned has increased by 11 percentage
(109) A type-to-type price comparison was made between the
points from 41,7 % to 52,7 % during the period
selling prices of the exporting producers and the sampled
considered. This market share growth mainly took
Union producers’ selling prices in the Union. To this end,
place between 2010 and the IP, during a period of
the sampled Union producers’ prices to unrelated
recovering demand.
customers have been compared with the prices of
sampled exporting producers of the two countries
Union market share
concerned. Adjustments were applied where necessary
to take account of differences in the level of trade
2008 2009 2010 IP
(notably OEM sales) and post-importation costs.
PRC 36,5
% 39,3
% 37,7
% 47,3
%
(110) The comparison showed that, during the IP, imports of
Index 100 108 103 129
the product concerned originating in Thailand and the
PRC were sold in the Union at prices which undercut the
Thailand 5,2
% 4,7
% 5,7
% 5,4
%
Union industry prices, when expressed as a percentage of
the latter, by 25 % to 55 %.
Index 100 91 110 103
Two
41,7 % 44,0
% 43,4
% 52,7
%
countries
5. Situation of the Union industry
concerned
(111) In accordance with Article 3(5) of the basic Regulation,
the examination of the impact of the dumped imports on
Index 100 106 104 126
the Union industry included an evaluation of all
economic factors having a bearing on the state of the
Source: Complaint data, Eurostat and questionnaire replies.
Union industry during the period considered. The data
presented below relate to all Union producers for
4.3. Prices of the imports from the two countries concerned
production, production capacity, capacity utilisation,
and price undercutting
sales and market shares, and to the sampled Union
producers for all the remaining indicators. As concerns
(a) P r i c e e v o l u t i o n
the indicators based on the sampled producers, given that
the sample was comprised of only two groups of
(108) The table below shows the average price of dumped
producers, for confidentiality reasons the actual
imports from the two countries concerned, at the
aggregate data could not be disclosed in the related
Union frontier duty unpaid, as reported by Eurostat.
tables below; instead, only the indices are presented in
During the period considered the average price of
order to show the trend of those indicators.
imports from the two countries concerned continuously
increased by a total of 14 %.
5.1. Production, production capacity and capacity utilisation
Import prices (EUR/tonne)
(112) The Union production volumes sharply fell between
2008 2009 2010 IP
2008 and 2009 by 39 %, and subsequently slightly
decreased from the already low level despite a 12
PRC 1
428 1
557 1
631 1
676
percentage point increase in consumption in the
following years, as indicated in recital (97) above.

---

L 318/20
EN
Official Journal of the European Union
15.11.2012
Union production volume (tonnes)
and 2009 due to a decreasing demand. After 2009,
however, the demand substantially increased in the
All producers 2008 2009 2010 IP
Union, as mentioned in recital (97) above, but the
Union sales remained at the low level of 2009 until
Union
55 726 33
780 32
303 32
646
the end of the period considered.
consumption

Index 100 61 58 59
Union sales volume (tonnes)
Source: Complaint data and questionnaire replies.
All producers 2008 2009 2010 IP
(113) The production capacity of the Union industry decreased
Union sales 34
210 25
702 26
717 25
333
by 21 % during the period considered, mainly between
2008 and 2009. The main reason for the reduction of
Index 100 75 78 74
the production capacity was the shutdown of three
Union producers during the period considered.
Source: Questionnaire replies sampled Union producers.

Union production capacity (tonnes)
(117) The market share of the Union industry continuously
decreased by 9 percentage points or 18 % during the
All producers 2008 2009 2010 IP
period considered, while the dumped imports gained
11 percentage points of market share during the same
Production
90 400 75
440 71
440 71
440
period, as indicated in recital (107) above.
capacity
Index 100 83 79 79
Union market share
Source: Complaint data and questionnaire replies.
All producers 2008 2009 2010 IP
Union sales 47,7
% 45,1
% 45,6
% 38,9
%
(114) Despite the decrease in production capacity, the capacity
utilisation of the Union industry decreased by 26 %,
mainly between 2008 and 2009.
Index 100 95 96 82

Source: Complaint data, Eurostat and questionnaire replies.
Union production capacity utilisation
All producers 2008 2009 2010 IP
5.4. Prices and factors affecting prices
Production
62 % 45
% 45
% 46
%
(118) The sampled Union producers were able to only
capacity utili
moderatly increase their sales prices by 4 % during the
sation
period considered. Due to the increasing quantities of
dumped imports entering the Union market, this price
Index 100 73 73 74
increase was lower than the increase in costs.
Source: Complaint data and questionnaire replies.
Average Union price per tonne
5.2. Stocks
Sample 2008 2009 2010 IP
(115) The volume of stocks decreased by 23 % during the
Index 100 103 103 104
period considered, in line with the decreasing sales and
production volumes of the Union industry.
Source: Questionnaire replies sampled Union producers.
Stocks (tonnes)
5.5. Profitability, return on investment and cash flow
Sample 2008 2009 2010 IP
(119) Profitability of the Union industry was established by
expressing the pre-tax net profit of the sales of the like
Index 100 91 75 77
product on the Union market to unrelated customers as
Source: Questionnaire replies sampled Union producers.
a percentage of the turnover of these sales. While the
profitability of the Union industry was satisfactory at the
beginning of the period considered, it was almost
5.3. Sales volume and market share
completely eliminated in 2009. Although it somewhat
recovered subsequently, it remained far below the non-
(116) The sales volume of all Union producers on the Union
injurious level throughout the rest of the period
market significantly decreased by 25 % between 2008
considered.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/21
(120) As concerns the return on investments, expressed as the
5.8. Ability to raise capital
profit in percent of the net book value of investments,
this indicator followed the same trend as the profitability.
(125) Due to the insufficient profitability described in
recital(119) above, some of the Union producers have
encountered difficulties to raise capital for future
Profitability & return on investments (ROI)
investments in the current circumstances. Also, the
unsatisfactory return on investment adds to the
Sample 2008 2009 2010 IP
problems in raising capital.
Profitability
100
8 38 37
(Index)
5.9. Employment, productivity and labour costs
ROI (Index) 100
1 36 40
(126) The employment in full-time equivalents (FTE) largely
followed the development of the production volumes
Source: Questionnaire replies sampled Union producers.
(see recital (112) above), which indicates that the
Union industry has attempted to rationalise manufac
turing costs when it was necessary. The Union industry
(121) The net cash flow from operating activities continuously
tried to adapt their workforce to the worsening market
decreased by a total of 64 % during the period
situation, leading to a steady overall decrease in
considered, reaching a very low level during the IP.
employment of 36 % during the period considered.
Cash flow (EUR)
Employment in FTE
Sample 2008 2009 2010 IP
Sample 2008 2009 2010 IP
Index 100 55 58 36
Index 100 75 67 64
Source: Questionnaire replies sampled Union producers.
Source: Questionnaire replies sampled Union producers.
5.6. Growth
(127) Despite the above attempts of the Union industry to
align the employment to worsening market situation,
(122) As indicated in recital (97) above, the Union
the output per FTE of the Union producers fell
consumption was growing significantly between 2009
considerably by 19 % between 2008 and 2009. The
and the IP by 8 000 tonnes, while the volume of
situation continuosly improved afterwards, but
dumped imports increased by 9 000 tonnes during the
remained 9 % below the beginning of the period
same period, as indicated in recital (106) above. The
considered.
complete growth of the Union market between 2009
and the IP was therefore absorbed by dumped imports,
while the Union sales of the Union industry remained at
Productivity (tonnes/FTE)
the very low level of 2009. It is therefore shown that the
Union industry could not benefit from the recent growth
Sample 2008 2009 2010 IP
in Union consumption due to the increasing market
share of dumped imports from the two countries
Index 100 81 87 91
concerned.
Source: Questionnaire replies sampled Union producers.
5.7. Investments and ability to raise capital
(128) During the period considered, average labour costs of the
(123) During the period considered, the investments of the
Union industry continuoulsy increased by a total 12 %.
sampled Union producers developed as follows:
Labour costs (EUR/FTE)
Net investments (EUR)
Sample 2008 2009 2010 IP
Sample 2008 2009 2010 IP
Index 100 106 112 112
Index 100 65 41 76
Source: Questionnaire replies sampled Union producers.
Source: Questionnaire replies sampled Union producers.
5.10. Magnitude of the dumping margin
(124) As the table above shows, the Union producers have
substantially decreased investments between 2008 and
(129) The dumping margins for imports from the two
2010. This trend reversed during the IP, when the
countries concerned, as specified in recitals (74) and
investments significantly rebounded, but without
(90), are high. Given the volume, market share and
reaching the level at the beginning of the period
prices of the dumped imports, the impact of the
considered.
margins of dumping can be considered substantial.

---

L 318/22
EN
Official Journal of the European Union
15.11.2012
5.11. Recovery from past dumping
(136) The increase in dumped imports of the product
concerned from the two countries concerned over the
(130) Threaded malleable fittings, originating in Brazil, the
period considered coincided with a downward trend in
Czech Republic, Japan, the PRC, the Republic of Korea
most injury indicators of the Union industry. The Union
and Thailand were already subject to measures
( 1 )
industry lost 8,7 percentage points of market share, and
between 2000 and 2005 ( 2 ) ('the previous measures').
had to reduce its production by 41 %. The significant
The satisfactory profitability of the Union industry at
price undercutting prevented the Union industry from
the beginning of the period considerd (see recital (119)
passing on the increased production costs in the sales
above) suggests that these measures brought temporary
prices to an acceptable extent, which resulted in very
relief to the Union industry. The increasing volumes of
low profitability levels during most of the period
dumped imports have, however, put an end to this rather
considered.
positive period. It is also noted that the combined market
share of the six countries concerned by the previous
measures was never above 29 % ( 3 ), while the two
countries concerned by the current investigation held a
(137) Based on the above it is provisionally concluded that the
market share of 52,7 % during the IP, as indicated in
low-priced dumped imports from the two countries
recital (107) above.
concerned, which entered the Union market in large
and overall increasing volumes and which significantly
undercut the Union industry prices throughout the
6. Conclusion on injury
period considered, are causing material injury to the
Union industry.
(131) The injury indicators developed negatively during the
period considered. This is particularly noticeable for the
indicators concerning profitability, production volumes,
3. Effect of other factors
capacity utilisation, sales volumes and market share
that have all showed a clearly deteriorating trend.
3.1. Imports from other third countries
(138) While Eurostat reports significant imports from India at
(132) At the same time, imports of threaded malleable fittings
very low prices during the whole period considered, there
from the two countries concerned were undercutting
are indications that these imports are not the product
Union industry prices by up to 55 % during the IP (see
concerned, but different products reported under the
recital (110) above), substantially increasing their market
same CN code.
share at the same time (see recital (107) above).
(133) In the light of the foregoing, it is provisionally concluded
(139) For the other third countries, there were limited imports
that the Union industry suffered material injury within
throughout the whole period considered. The total
the meaning of Article 3(5) of the basic Regulation.
market share of imports from countries other than the
two countries concerned has decreased by 2,1 percentage
points, from 10,5 % to 8,4 %.
F. CAUSATION
1. Introduction
(140) The next largest sources of imports during the IP were
(134) In accordance with Article 3(6) and 3(7) of the basic
Indonesia, Brazil and Turkey, which held market shares
Regulation, it was examined whether the dumped
between 1,3 % and 1,6 % respectively, and all of these
imports originating in the PRC and Thailand have
countries lost market share during the period considered.
caused injury to the Union industry to a degree that
may be considered as material. Known factors other
than the dumped imports, which could at the same
time have injured the Union industry, were also
Import market share
examined in order to ensure that the possible injury
2008 2009 2010 IP
caused by these other factors was not attributed to the
dumped imports.
Brazil 3,6
% 3,8
% 4,0
% 1,5
%
Indonesia 1,8
% 2,5
% 1,9
% 1,6
%
2. Effect of the dumped imports
(135) Between 2008 and the IP, the volume of the dumped
Turkey 1,6
% 2,0
% 1,9
% 1,3
%
imports from the two countries concerned increased in
terms of volume by 15 % in a market contracting by
Other
3,6 % 2,5
% 3,2
% 4,0
%
9 %, which resulted in an increase of Union market
Countries
share from 41,7 % to 52,7 %.
Total 10,5
% 10,8
% 11,0
% 8,4
%
( 1 ) OJ L 55, 29.2.2000, p. 3 (provisional), OJ L 208, 18.8.2000, p. 8
(definitive).
Index 100 105 104 80
( 2 ) Due to the enlargement of the EU, measures against the Czech
Republic lapsed on 1 May 2004.
Source: Eurostat.
( 3 ) OJ L 55, 29.2.2000, p. 3, rec. 146.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/23
(141) Due to the limited volumes and decreasing trends, it can
not caused by dumped imports, but by substitution
be concluded that imports from third countries other
effects. In this respect, it is noted that the negative devel
than the countries concerned do not appear to have
opment of Union consumption may have caused injury
contributed to the injury suffered by the Union
to the Union producers. This injury was, however,
industry during the IP.
aggravated by the steady increase of dumped imports
in a shrinking market. As indicated above, the recent
recovery of Union consumption has exclusively bene
3.2. Export performance of the Union industry
fitted the dumped imports, while Union producers were
not able to increase their sales volume.
(142) As concerns the development of export sales of the
Union industry, exports continuously decreased by a
total of 34 % during the period considered.
3.4. Structural problems of the Union producers
(147) Interested parties claimed that the fact that Georg Fischer
Export sales (tonnes)
(GF) has continued to be profitable despite their higher
prices, while the other Union producers failed to perform
Sample 2008 2009 2010 IP
satisfactory, indicates that structural problems caused the
injury suffered by the Union industry rather than
Export sales 7
134 5
043 4
969 4
700
dumped imports. However, also GF has been negatively
affected, losing market share and some of its profit
Index 100 71 70 66
margin. Its employment fell as well as its output.
Therefore, the argument that GF was not injured
Source: Questionnaire replies sampled EU producers.
cannot be accepted.
(143) However, during the whole period considered, export
sales accounted for only 13 %-15 % of the Union
(148) Furthermore, all Union producers, including GF, were
industry's production. Therefore they do not appear to
subject to the price pressure exerted by the dumped
have contributed to any significant degree to the injury
imports.
suffered by the Union industry during the IP.
(149) Similarly, interested parties claimed that since Berg
3.3. Development of Union consumption
Montana, the Bulgarian subsidiary of ATUSA group,
has also continued to be profitable indicates that other
(144) As indiacted in recital (97) above, the Union
reasons than dumped imports have caused the injury.
consumption decreased by 21 % between 2008 and
However, also Berg Montana was negatively affected by
2009, resulting in a decrease of Union sales of the
Chinese imports: production and capacity utilisation
Union industry of 25 % during the same period. After
decreased significantly as did the employment. As the
2009, however, the Union consumption was growing
majority of Berg Montana's sales are to related
significantly, by around 8
000 tonnes, while the
companies of the ATUSA group, an isolated look at
volume of dumped imports increased by around 9 000
the profitability of Berg Montana without also looking
tonnes during the same period, as indicated in recital
at the financial result of the total group is not appro
(106) above. The complete growth of the Union
priate, since Berg Montana's profitability is influenced by
market between 2009 and the IP was therefore
transfer pricing – and overall the ATUSA group is indeed
absorbed by dumped imports, while the Union sales of
loss-making. Therefore, the argument that Berg Montana
the Union industry remained at the very low level of
was not injured cannot be accepted either.
2009.
(150) One could claim that the 9 % drop in labour productivity
(145) Interested parties claimed that an important cause of
between 2008 and the IP, as indicated in recital (127)
injury was the crisis on the Spanish construction
above is a sign of a structural problem. However, this
market, which allegedly strongly affects ATUSA, a
drop occurred in a period during which the Union
Spanish company and one of the main complainants.
industry reduced their overall workforce by 36 % and
However, ATUSA sells in most EU Member States and
their output by 41 %. These reductions indicate that
the actual impact of the Spanish construction crises was
the Union producers were continuously forced to align
limited to their Spanish sales, which never accounted for
their operations with the market pressure stemming from
the majority of their sales. Moreover, the injury picture is
dumped imports and the temporarily weaker demand. In
clear in respect of both of the sampled company groups,
view of this bleak economic environment, the 9 %
the totality of complainants as well as the total Union
decrease in labour productivity can be considered
industry. In any event, the injury analysis was not limited
rather moderate.
to the performance of one Union producer or one
national market, but with regard to the whole Union
industry.
4. Conclusion on causation
(151) In conclusion, the above analysis has demonstrated that
(146) Interested parties also claimed that the injury caused by
imports from the two countries concerned have increased
the negative development of Union consumption was
in terms of quantities and gained substantial market

---

L 318/24
EN
Official Journal of the European Union
15.11.2012
share over the period considered. Moreover, these
entail further cuts in manufacturing and the closure of
increased quantities which entered the Union market at
production facilities in the Union, resulting in substantial
dumped prices severely undercut the Union industry
job losses.
prices.
(158) Taking into account all the above factors, it is
(152) Other factors which could have caused injury to the
provisionally concluded that the imposition of anti-
Union industry have also been analysed. In this respect,
dumping measures would be in the interest of the
it was found that imports from other third countries, the
Union industry.
export performance of the Union industry and the devel
opment of Union consumption, do not appear to be
3. Importers
such as to break the causal link established between

the dumped imports and the injury suffered by the
(159) As indicated in recital (31) above, 32 unrelated importers
Union industry during the IP.
cooperated in the investigation, and their imports
accounted for around 45 % of total imports from the
two countries concerned. In general, importers oppose
(153) Based on the above analysis, which has properly distin
the imposition of anti-dumping measures. However, in
guished and separated the effects of all known factors on
most cases, the impact of the measures appear to be
the situation of the Union industry from the injurious
limited. In many cases, the product concerned accounts
effects of the dumped imports, it is provisionally
for a minor part of the importers' total business. Also,
concluded that the imports from the PRC and Thailand
some importers already purchase threaded malleable
have caused material injury to the Union industry within
fittings from other sources, and importers currently
the meaning of Article 3(6) of the basic Regulation.
only purchasing from the two countries concerned can
also change to other sources, including the Union
industry. On that basis, it is provisionally concluded
G. UNION INTEREST
that the imposition of provisional measures will not
have substantially negative effects on the interest of
1. Preliminary remark
importers.
(154) In accordance with Article 21 of the basic Regulation, it
was examined whether, despite the provisional
4. Users
conclusion on injurious dumping, compelling reasons
existed for concluding that it was not in the Union
(160) As indicated in recital (18) above, threaded malleable
interest to adopt provisional anti-dumping measures in
fittings are mainly used in the gas, water and heating
this particular case. For this purpose, and in accordance
systems of residential and non-residential buildings. As
with Article 21(1) of the basic Regulation the likely
such, the users of the threaded malleable fittings are the
impact of possible measures on all parties involved as
plumbers. No user or consumers' association cooperated
well as the likely consequences of not taking measures
in the investigation. Also, the value of the threaded
were considered on the basis of all evidence submitted.
malleable fittings only account for a minor part of the
total cost of a gas, water or heating installation. On that
basis, it is provisionally concluded that the imposition of
2. Union Industry
provisional measures will not have substantially negative
effects on the interest of the users.
(155) All known Union producers support the imposition of
anti-dumping measures. It is recalled that most injury
indicators showed a negative trend and that in particular
(161) All in all, when considering the overall impact of the
the injury indicators related to production and sales
anti-dumping measures, the positive effects on the
volumes and market share as well as the financial
Union industry appear to clearly outweigh the potential
performance of the Union industry such as profitability
negative impacts on the other interest groups. Therefore,
and return on investment, were seriously affected.
it is provisionally concluded that the anti-dumping duties
are not against the Union interest.
(156) If measures are imposed, it is expected that the price
5. Competition aspects
depression and loss of market share will be mitigated
and that the sales prices of the Union industry will
(162) Interested parties have argued that in case anti-dumping
start to recover, resulting in a significant improvement
measures are introduced, a duopoly may develop on the
of the Union industry's financial situation.
Union market which would be dominated by the two
main complainants ATUSA and GF. In this respect, it
should first be noted that the current market share of
(157) On the other hand, should anti-dumping measures not
these two groups are comparably low, giving the alleged
be imposed, it would be likely that the deterioration of
"duopoly" a rather moderate market share of around
the Union industry's market and financial situation
30 %. This should be compared to the market share of
would continue. In such a scenario, the Union industry
the two countries concerned which amounts to 52,7 %,
would lose further market share, as it is not able to
while imports from other third countries also represent a
follow the market prices set by dumped imports from
market share of 8,4 %. The other Union producers also
the two countries concerned. The likely effects would
hold a market share of 7,5 %.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/25
(163) Furthermore, the purpose of anti-dumping duties is not
price, with the weighted average non-injurious price of
to prohibit all imports, but to restore a level playing field.
the like product sold by the Union industry on the
It is worth noting that the previous measures in force
Union market. Any difference resulting from this
between 2000 and 2005 did not stop imports. To the
comparison was then expressed as a percentage of the
contrary, the PRC exported higher quantities in 2002,
weighted average import CIF value.
2003 and 2004 than before the imposition of
measures of the 49,4 % anti-dumping duty. All in all,
2. Provisional measures
the presence of such a substantial number of players
on the Union market indicates that the risk of an anti-
(171) In the light of the foregoing, and in accordance with
competitive duopoly dominating the Union market is
Article 7(2) of the basic Regulation, it is considered
low.
that provisional anti-dumping measures should be
imposed on imports originating in the PRC and
6. Conclusion on Union interest
Thailand at the level of the lower of the dumping and
the injury margins found, in accordance with the lesser
(164) In view of the above, it was provisionally concluded that
duty rule.
overall, based on the information available concerning
the Union interest, no compelling reasons exist against
(172) Given the high rate of cooperation of Chinese and Thai
the imposition of provisional measures on imports of
exporting producers, the all other companies duty for
threaded malleable fittings originating in the PRC and
both countries was set at the level of the highest duty
Thailand.
to be imposed on the companies, respectively, sampled
or cooperating in the investigation from the given
H. PROVISIONAL ANTI-DUMPING MEASURES
country. The all other companies duty will be applied
to those companies which had not cooperated in the
1. Injury elimination level
investigation.
(165) In view of the conclusions reached with regard to
(173) For the cooperating non-sampled Chinese companies
dumping, injury, causation and Union interest,
listed in the Annex, the provisional duty rate is set at
provisional measures should be imposed in order to
the weighted average of the rates of the sampled
prevent further injury being caused to the Union
companies.
industry by the dumped imports from the two
countries concerned.
(174) The proposed rates of the provisional anti-dumping
duties are as follows:
(166) For the purpose of determining the level of these
measures, account was taken of the dumping margins
found and the amount of duty necessary to eliminate
People's Republic of China
the injury sustained by the Union producers.
Company
Dumping
Injury
margin
margin
Duty Rate
(167) When calculating the amount of duty necessary to
remove the effects of the injurious dumping, it was
Hebei Jianzhi Casting
67,8 % 136,5
% 67,8
%
considered that any measures should allow the Union
Group Ltd.
producers to cover their costs of production and to
obtain a profit before tax that could be reasonably
Jinan Meide Casting
39,3 % 122,4
% 39,3
%
achieved by a producer of this type in the sector under
Co., Ltd.
normal conditions of competition, i.e. in the absence of
dumped imports, on the sales of the like product in the
Qingdao Madison
32,1 % 128,4
% 32,1
%
Union.
Industrial Co., Ltd.
Other cooperating
42,3 % 124,7
% 42,3
%
(168) In the previous investigation concerning the same
companies
product, this reasonable profit was established at the
level of 7 % ( 1 ). Since the sampled Union producers
All other companies 67,8
%
were able to achieve similar profit at the beginning of
the period considered, there are no indications that this
profit margin is no longer reasonable.
Thailand
(169) On this basis, a non-injurious price was calculated for the
Company
Dumping
Injury
Union producers of the like product. The non-injurious
margin
margin
Duty Rate
price was obtained by adding the abovementioned profit
margin of 7 % to the cost of production.
BIS Pipe Fitting
15,9 % 86,2
% 15,9
%
Industry Co., Ltd
(170) The necessary price increase was then determined on the
Siam Fittings Co., Ltd 50,7
% 39,7
% 39,7
%
basis of a comparison of the weighted average import
All other companies 39,7
%
( 1 ) OJ L 55, 29.2.2000, p. 3, rec. 188.

---

L 318/26
EN
Official Journal of the European Union
15.11.2012
(175) The above anti-dumping measures are provisionally
HAS ADOPTED THIS REGULATION:
established in the form of ad valorem duties.
Article 1
(176) The individual company anti-dumping duty rates
specified in this Regulation were established on the
1. A
provisional
anti-dumping
duty
is
hereby
imposed
on
basis of the findings of the present investigation.
imports of threaded tube or pipe cast fittings, of malleable
Therefore, they reflect the situation found during that
cast iron, currently falling within CN code ex 7307 19 10
investigation with respect to these companies. These
(TARIC code 7307 19 10 10) and originating in the People's
duty rates (as opposed to the countrywide duty
Republic of China and Thailand.
applicable to ‘all other companies’) are thus exclusively
applicable to imports of products originating in the the
People's Republic of China and Thailand and produced
2. The
rate
of
the
provisional
anti-dumping
duty
applicable
by the companies and thus by the specific legal entities
to the net free-at-Union-frontier price, before duty, of the
mentioned. Imported products produced by any other
product described in paragraph 1 and manufactured by the
company not specifically mentioned in the operative
companies listed below, shall be as follows:
part of this Regulation with its name, including entities
related to those specifically mentioned, cannot benefit
from these rates and shall be subject to the duty rate
applicable to ‘all other companies’.
TARIC

Country Company Duty
Rate
additional
code
People's
Hebei Jianzhi Casting
67,8 % B335
(177) Any claim requesting the application of these individual
Republic of
Group Ltd. - Yutian
company anti-dumping duty rates (e.g. following a
China
County
change in the name of the entity or following the
setting-up of new production or sales entities) should
Jinan Meide Casting
39,3 % B336
be addressed to the Commission ( 1 ) forthwith with all
Co., Ltd. - Jinan
relevant information, in particular any modification in
the company's activities linked to production, domestic
and export sales associated with, for example, that name
Qingdao Madison
32,1 % B337
Industrial Co., Ltd. -
change or that change in the production and sales
Qingdao
entities. If appropriate, the Regulation will accordingly
be amended by updating the list of companies benefiting
Hebei XinJia Casting
42,3 % B338
from individual duty rates.
Co., Ltd. - XuShui
County
(178) In order to ensure a proper enforcement of the anti-
Shijiazhuang
42,3 % B339
dumping duty, the all other companies duty level
Donghuan Malleable
should not only apply to the non-cooperating
Iron Castings Co., Ltd.
exporting producers, but also to those producers which
– Xizhaotong Town
did not have any exports to the Union during the IP.
Linyi Oriental Pipe
42,3 % B340
Fittings Co., Ltd. - Linyi
City
(179) However, in the case of Thailand, the latter companies
are invited, when they fulfil the requirements of
China Shanxi Taigu
42,3 % B341
Article 11(4) of the basic Regulation, second paragraph,
County Jingu Cast Co.,
to present a request for a review pursuant to that Article
Ltd. - Taigu County
in order to have their situation examined individually.
Yutian Yongli Casting
42,3 % B342
Factory Co., Ltd. –
Yutian County
I. FINAL PROVISION
(180) In the interests of sound administration, a period should
Langfang Pannext Pipe
42,3 % B343
be fixed within which the interested parties which made
Fitting Co., Ltd. -
LangFang, Hebei
themselves known within the time limit specified in the
Regulation may make their views known in writing and
request a hearing. Furthermore, it should be stated that
Tangshan Daocheng
42,3 % B344
Casting Co., Ltd. -
the findings concerning the imposition of a duty made
Hongqiao Town,
for the purposes of this Regulation are provisional and
Yutian County
may have to be reconsidered for the purpose of any
definitive duty,
Tangshan Fangyuan
42,3 % B345
Malleable Steel Co., Ltd.
( 1 ) European Commission, Directorate-General for Trade, Directorate H,
– Tangshan
1049 Brussels, Belgium.

---

EN
15.11.2012 Official
Journal
of
the
European
Union L
318/27
TARIC
4. Unless
otherwise
specified,
the
provisions
in
force
Country Company Duty
Rate
additional
concerning customs duties shall apply.
code
Article 2
Taigu Tongde Casting
42,3 % B346
Co., Ltd. – Nanyang
Without prejudice to Article 20 of Council Regulation (EC) No
Village, Taigu
1225/2009, interested parties may request disclosure of the
details underlying the essential facts and considerations on the
All other companies 67,8
% B999
basis of which this Regulation was adopted, make their views
known in writing and apply to be heard orally by the
Thailand BIS
Pipe
Fitting 15,9 % B347
Commission within one month of the date of entry into
Industry Co., Ltd -
force of this Regulation.
Samutsakorn
Pursuant to Article 21(4) of Regulation (EC) No 1225/2009, the
Siam Fittings Co., Ltd -
39,7 % B348
parties concerned may comment on the application of this
Samutsakorn
Regulation within one month of the date of its entry into force.
All other companies 39,7
% B999
Article 3
This Regulation shall enter into force on the day following that
3. The
release
for
free
circulation
in
the
Union
of
the of its publication in the Official Journal of the European Union.
product referred to in paragraph 1 shall be subject to the
provision of a security equivalent to the amount of the
Article 1 of this Regulation shall apply for a period of six
provisional duty.
months.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 14 November 2012.
For the Commission
The President
José Manuel BARROSO

---

Document Outline

• �

---