The European Commission (EC) has initiated an investigation concerning the possible circumvention of the antidumping (AD) measures imposed on imports of steel ropes and cables originating in China by imports of steel ropes and cables consigned from South Korea and Malaysia, whether declared as originating in South Korea and Malaysia or not, and to make such imports subject to registration.
Pursuant to Council Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community (Community), the EC has received a request to investigate the possible circumvention of the antidumping measures imposed on imports of steel ropes and cables originating in China, lodged on June 29, 2009 by the Liaison Committee of EU Wire Rope Industries (EWRIS) on behalf of the Community producers of steel ropes and cables.
According to the EC, the request contains sufficient prima facie evidence that the AD measures on imports of steel ropes and cables originating in China are being circumvented by means of the transshipment via South Korea and Malaysia of steel ropes and cables. The request has shown that a significant change in the pattern of trade involving exports from China and South Korea and Malaysia to the Community has taken place following the imposition of measures on the product concerned, and that there is insufficient due cause or justification other than the imposition of the duty for such a change. This change in the pattern of trade appears to stem from the transshipment of steel ropes and cables originating in China via South Korea and Malaysia. Furthermore, the request contains sufficient prima facie evidence that the remedial effects of the existing antidumping measures on the product concerned are being undermined both in terms of quantity and price. Significant volumes of imports of steel ropes and cables from South Korea and Malaysia appear to have replaced imports from China of the product concerned. In addition, there is sufficient evidence that this increased volume of imports is made at prices well below the non-injurious price established in the investigation that led to the existing measures. Finally, the request contains sufficient prima facie evidence that the prices of the product under investigation are dumped in relation to the normal value previously established for the product concerned. Should circumvention practices via South Korea and Malaysia covered by the regulation, other than transshipment, be identified in the course of the investigation, the investigation may also cover these practices.
In the light of the above, the EC has concluded that sufficient evidence exists to justify the initiation of an investigation pursuant to the regulation and to make imports of steel ropes and cables consigned from South Korea and Malaysia, whether declared as originating in South Korea and Malaysia or not, subject to registration.
The investigation will be concluded within nine months of August 12, 2009, the date of the publication of the notice in the Official Journal of the EU.
The product concerned by the possible circumvention is steel ropes and cables including locked coil ropes, excluding ropes and cables of stainless steel, with a maximum cross-sectional dimension exceeding 3 mm, originating in China, currently falling within CN codes ex 7312 10 81, ex 7312 10 83, ex 7312 10 85, ex 7312 10 89 and ex 7312 10 98 (TARIC codes 7312 10 81 13, 7312 10 83 13, 7312 10 85 13, 7312 10 89 13 and 7312 10 98 13). The product under investigation is consigned from South Korea and Malaysia, currently falling within the same codes as the product concerned.