Commission Implementing Regulation (EU) 2020/1336 of 25 September 2020 imposing definitive anti-dumping duties on imports of certain polyvinyl alcohols originating in the People’s Republic of China

(592) PVA is also used in polymerization applications as it facilitates the precise control of the grain formation and the resulting structure in emulsions and paints to regulate the viscosity of the final product.

(593) Two users, FAR Polymer and Celanese, and the second sampled Union producer of PVA which produced PVA only for its captive consumption, Wacker, came forward and cooperated in the proceeding. FAR Polymer and Wacker opposed the potential measures claiming that the imposition of anti-dumping measures would not be in the interest of the Union.

(594) In addition, Wacker argued that the Union PVA production was insufficient to meet the demand for this product and therefore the EU market for PVA was highly import reliant. In its opinion, imports from the country concerned have filled the market gap which cannot be filled by other countries.

(595) Moreover, the company claimed that, with the anti-dumping duties in force, the Chinese exporting producers would be prevented to access the market. Therefore, the two Union producers selling on the free market (which are related to exporting producers in USA, Japan and Singapore) would dominate the Union market and would be able to impose higher prices which will be detrimental for the Union users.

(596) Both users reiterated their arguments after disclosure.

(597) As regards the first point, the investigation has shown that the impact on the user’s profitability will be negligible, even with anti-dumping duties in force, as the share of PVA in the cost of production of the users operating in this segment represents [3 % – 7 %] of the total cost.

(598) As far as the supply stability is concerned, as explained above in recital (563), the Union industry has at least 30 000 tonnes of spare capacity. Moreover, the biggest suppliers of the EU market were PVA producers located in third countries (namely Taiwan, USA and Japan), which already accounted for [37 % – 42 %] of the Union consumption. Finally, it must be noted that the sampled Union producer had a multi sourcing strategy and therefore do not source its PVA consumption exclusively from the producers located in the PRC.

(599) With regards to the last point it must be noted that:

(600) Firstly, as described in recital (497) and (498), the biggest exporter to the Union market (after the PRC) was Taiwan, with a market share of [13 % – 16 %], whose producers are not related to the Union industry.

(601) Secondly, significant quantities were imported also from USA and Japan ([12 % – 15 %] and [8 % – 11 %] market share, respectively) where there are at least three producers not related to the Union industry. Moreover, imports from other third countries, even if decreasing during the period considered, still held the largest market share on the Union free market (around [37 % – 42 %]) and their prices were on average 11 % cheaper than the prices of the Union industry.

(602) Thirdly, as explained in recital (598), Wacker already sourced its PVA consumption from several different sources.

(603) Finally, it is noted that anti-dumping measures aim to re-establish a fair competition and a level playing field in the Union market but do not aim to prevent imports from the country concerned. In this specific case, the investigation established that anti-dumping duties would not prevent the users of PVA to continue to source at a fair price from the PRC, as supported by the findings outlined in recital (597), namely that duties would have a minimal impact on the cost and profitability of the users in the polymerisation and emulsion segment.

(604) Given the above, these claims were rejected.

(605) Wacker requested to be granted an exemption from the proposed anti-dumping duties under the end-use regime under Article 254 of the Union Customs Code. In its request, Wacker argued that it needed the alternative of an additional qualified supplier to avoid facing a situation of supply refusal from the Union industry. Moreover, the imposition of duties, in Wacker’s opinion, will negatively affect PVA market prices.

(606) The Commission assessed the company’s request on the basis of the all information collected during the investigation and the comments received after disclosure.

(607) First, as explained above, Wacker already sourced a significant part of its purchases from the Union industry, and did not provide any evidence of any refusal of supply by the Union producers. In addition, the investigation revealed that after the Covid-19 pandemic started the complainant provided additional volume of PVA at short notice to different users in the Union. Second, as regards the alleged risk of anti-competitive behaviour by the Union industry the Commission noted that no evidences was provided supporting this statement. Moreover, in the Commission’s view, the possible alternative sources of supply from third countries significantly limited this risk. Finally, polymerisation and emulsions are one of the main downstream application for PVA, and Wacker is one of the market leaders in this segment. As a result, granting such an exemption under end use control would risk to seriously undermine the effect of the measures. Therefore the request was rejected.

(608) PVA is used to improve the strength, absorbance and appearance of paper and carton board products, in coated paper and in barrier coatings for release base paper. The paper segment accounted for about 16 % of the Union consumption of PVA.

(609) Three users in this sector, Ahlstrom-Munksjö, August Koehler and Paul & Co. and two user association, CEPI and Assocarta, came forward during the proceeding and after disclosure, opposing the possible measures arguing the interest of the Union users of the product concerned in this segment.

(610) The parties argued, and reiterated their claims after disclosure, that anti-dumping duties on an important input product such as PVA would undermine the Union paper industry’s efforts at controlling costs, and thus their ability to compete. They claimed that, given the level of competition in the paper market especially from companies from the Asia-Pacific region, the Union paper producers would be in a disadvantaged position compared to non-EU producers, which would have access to cheaper PVA in a highly competitive market. These claims were repeated after the second additional disclosure.

(611) Contrary to the arguments of the users, the investigation revealed that the impact of the PVA on the cost of production for the paper industry was negligible [1 % – 2 %]. Therefore, the imposition of anti-dumping duties would have a minimal impact on their cost and would not significantly affect their profitability.

(612) Consequently, this claim was rejected.

(613) PVA is used in the adhesive industry as a main component for the production of glues. This segment represented almost 14 % of the total Union consumption of PVA.

(614) One producer in the adhesive segment came forward opposing the measure. The company claimed that anti-dumping measures on PVA would severely affect its profitability, as the company would not be able to pass this increase in prices to its customers. This argument was repeated by Cordial and Wegochem after disclosure.

(615) As regards the adhesive sector, PVA constituted [40 % – 50 %] (97) of the cost of the final product. In this situation, it appeared that the company would not be able to absorb the impact of the proposed anti-dumping duties.

(616) After disclosure, Kuraray and Sekisui submitted that Cordial could not be considered, in their view, as a representative player for the specific segment of adhesives applications. In their opinion Cordial’s products consist of a high PVA content mixes that only represents a minor part of the adhesives application segment.

(617) The two Union producers argued that PVA represents around 2 % to 5 % of the cost of production of the major adhesives application of packaging adhesives and only in some specialized sectors the impact of PVA could go up to 10 % – 20 %. Therefore the 80 % cost impact of PVA to Cordial’s business cannot be presumed to be representative of the adhesives segment.

(618) After disclosure, Cordial also requested to be granted an exemption from the proposed anti-dumping duties under the end-use procedure set out in Article 254 of the Union Customs Code. This request was based on the peculiarity of its products, the limited number of PVA grades it imports specifically developed in cooperation with its single supplier, the impossibility to absorb the proposed duties given its cost structure and profitability levels, and the inexistence of any other viable alternatives that would enable the company to remain in the market.

(619) The Commission reassessed the situation of producers of adhesives and the company’s request in light of the comments received from all interested parties, in particularly Cordial, the Union industry, Cordial’s customers and other adhesives users.

(620) Based on all the information made available to the Commission after disclosure by several interested parties, the Commission agreed with the Union industry submission that the situation of Cordial could not be extrapolated to the whole adhesive sector, where PVA constitutes on average only 2 % to 5 % of the cost of production of the major adhesives application (packaging adhesives).

(621) Given the small weight PVA normally represents in the cost of adhesives products, the investigation revealed, that switching suppliers, even when considering the need for a certification process, was feasible for users in the adhesive segment as the impact of measures on their total cost would not be significant.

(622) On the other hand, when looking at the particular situation of Cordial, the same conclusion cannot be reached. The investigation showed that a major part of its production concerned dry-blend adhesives produced and sold in powder form, a niche product in comparison with the commonly produced liquid adhesives manufactured on the basis of PVA or PVAc. Its clients have structured their production process in order to benefit from Cordial’s tailor-made adhesives and to gain a consistent saving in transport costs as explained in recital (626). Switching to liquid adhesives would mean to restructure their complete production process.

(623) Because of this innovative product, Cordial’s cost structure is different from the average in the adhesives industry. PVA constituted at least [40 – 50 %] of the cost in case of Cordial. Differences are among others due to the fact that the proportion of PVA used per tonne of dry-blend adhesives is higher than in liquid adhesives. Given the peculiarity of the product developed by Cordial, it would be virtually impossible for the company to switch to non-PVA based products, as it would require a complete re-formulation of its glue composition.

(624) In terms of alternative sources of supply, switching to the Union industry or other sources after the imposition of the measures would not be an option for the company. In fact, the company has already tried to establish new partnerships but, due to its small size, it was not able to establish a long-term relationship with alternative suppliers (a long term relationship would be required in order for suppliers to adapt to Cordial’s product requirements). The company submitted evidence that it has indeed tried in the past to purchase PVA from a Taiwanese producer, but could not conclude any deal, as this producer sells exclusively via a trader in the EU and was not willing to adapt its products to Cordial’s requirements. All these elements combined with the need for a certification process makes it unviable for the company to switch to other suppliers.

(625) Finally, the company operates on a highly competitive market with very small profit margins. In this situation, the evidence indicates that the company would not be able to absorb the impact of the proposed anti-dumping duties and would most likely go bankrupt.

(626) After disclosure, several downstream users of Cordial’s products in the paper and carton board industry also came forward opposing the measures. They claimed that the share of Cordial’s adhesives in their cost of production was significant (around [10 % – 25 %]). Therefore, any negative impact of the measures on their supplier of dry-blend adhesives would also negatively affect them. In addition, they would have to restructure their production equipment to fit the use of a completely different product. Finally, switching from dry to liquid adhesives would also mean a significant increase in transport costs (1 tonne of dry adhesive equals 5 to 8 tonnes of liquid adhesives).

(627) The Commission also examined the effect of any possible exemption of duties under an end-use procedure on the effectiveness of the measures. In this respect, the Commission noted that the adhesives market segment represented 17 % of the Union consumption, and that the only producer of dry-blend adhesives that came forward only represented 4 % of this segment. Thus, the Commission concluded that granting such an exemption would not have a negative impact on the effectiveness of the measures.

(628) Given the above, the Commission decided to exceptionally place the imports of PVA used for the manufacturing of dry-blend adhesives, produced and sold in powder form for the carton board industry, under the end-use procedure referred to in Article 254 of Regulation (EU) No 952/2013 of the European Parliament and of the Council (98). This end-use procedure will be strictly limited to dry-blend adhesives and under no circumstances will cover any other products (for example, liquid adhesives) produced by adhesive producers.

(629) After the second additional disclosure, Cordial requested the Commission to subject companies wishing to avail themselves of the end-use exemption to a system of ex ante authorization by the Commission to ensure that they engage in genuine manufacturing of dry-blend adhesives.

(630) In this regards, the Commission clarified that the end-use exemption as described in recital (628) is not company-specific, but applies to all dry-blend adhesives producers in a non-discriminatory manner. Moreover, the monitoring and application of the procedure referred to in Article 254 of Regulation (EU) No 952/2013 is to be carried out by the Member States’ custom authorities. That procedure establishes requirements and checks that ensure that exemptions are limited to the end-use as established. Thus, it is not appropriate nor necessary that the Commission take any additional actions.

(631) The request was therefore rejected.

(632) After the second additional disclosure, the complainant argued against the legal basis and the effectiveness of the end-use exclusion as applied to Cordial. In its view, the company was not exclusively engaged in the production of dry-blend adhesives, as it also produced liquid adhesives and traded PVA imported from the PRC without applying any transformation process.

(633) These arguments had to be dismissed. The Commission has assessed the impact of measures on all parties concerned and concluded that overall it is not against the interest of the Union to apply measures in this case. However, as explained in recitals (622) to (625), the investigation revealed that, unlike other users of PVA, a very limited set of users producing dry-blend adhesives would not be able to absorb measures. For this reason, the Commission decided to have recourse to the procedure foreseen in Article 254 of Regulation (EU) No 952/2013, which is completely in order with its level of discretion. Moreover, the end-use procedure will be strictly limited to the manufacturing of dry-blend adhesives and will not cover any other products, whether produced or traded by adhesive producers. Therefore, any purchase of Chinese PVA for any other production or trading activities of Cordial (or any other dry-blend adhesives) will in any case not benefit from the duty exemption. The Commission recalls that the end-use exemption is a burdensome procedure for users who want to benefit from it and that they will be under strict customs control, which ensures compliance.

(634) Two importers, Gamma Chimica and Carbochem, and one user, Far Polymers, argued after the second additional disclosure that the conditions on the basis of which the Commission granted the end-use exemption to dry-blend producers also applied to them. Therefore, the companies asked the Commission to extend the end-use procedure to them. In their view, similar to Cordial, they all sell PVA and PVA blends in powder or liquid form and their customers have structured their production process in order to use the blended PVA supplied by them.

(635) The Commission disagreed that these companies were in the same situation as producers of dry-blend adhesives.

(636) The information collected during the investigation showed that the largest part of PVA imported by Gamma Chimica and Carbochem was simply repacked and sold to end users. A minor quantity was mixed with additives or dissolved in water according to customers’ requests. However, none of these processes consists in an actual transformation of the product concerned. Therefore, even for these sales, the companies were still considered importers, trading goods produced by other companies. The end-use procedure applies only to the final users and not to intermediaries. Thus, the end-use exemption would not even be an option available to these two importers. In addition, contrary to the companies’ claims, the investigation revealed that there were no issues securing alternative sources of supply because, as confirmed by the companies during the investigation, their PVA purchases were not dependent on technical constraints. Finally, as explained in recital (555) and (556), the PVA share in the importers’ turnover ranged from 10 % to 40 % and their profitability levels were found sufficient to absorb at least part of the duties.

(637) Far Polymers is active in the emulsions and polymerisation sector. As mentioned in recital (597), the share of PVA in the cost of production of the users operating in this segment represented [3 % – 7 %] of the total cost. Far Polymers claimed that the share of PVA used per tonne of finished product was [10 % – 15 %]. However, the percentages mentioned by Far Polymers in support of its claim referred to the quantity of product used and not to its share in the cost of production. Therefore, the conclusions of section 6.3.2 for the emulsions and polymerisation sector remain valid for Far Polymers.

(638) The Commission concluded that none of these companies were in a situation similar to the one of dry-blend adhesive producers. Therefore, these claims were rejected.

(639) After disclosure several parties, Ahlstrom-Munksjö, Carbochem, Cordial, Solutia, Wacker and Wegochem repeated the argument that the Union market is highly import reliant and that the Union industry does not have enough capacity. They argued that both KEG and Sekisui invested in two downstream plants, in the Netherlands and in Poland, which will increase their captive consumption and hence will decrease their capacity to supply the free market. They also argued that the third countries are not a viable alternative source as they don’t have enough spare capacity. Solutia reiterated this argument after the second additional disclosure.

(640) Contrary to these arguments the investigation confirmed that the Union industry has sufficient capacity to supply the Union free market as it has still 30 000 tonnes of spare capacity available. Moreover, as explained above in recital (447) the Union industry did not reduce permanently its production capacity as it just mothballed two production lines that can be reactivated at short notice.

(641) As regards the plant in the Netherlands, the Commission noted that there was no information on when it will become operative. Moreover, information collected during the investigation suggested that it will source at least part of the PVA grades from outside the Union. Concerning the plant in Poland, information received after disclosure confirmed that it will use mostly copolymers, which are outside the scope of the product concerned, and that these will be sourced from KEG plants outside the Union.

(642) The argument concerning the lack of supply capacity of the third countries had to be rejected as well as the information collected during the investigation confirmed that the Taiwanese producer has still significant spare production capacity available.

(643) Furthermore, a downstream user of the PVB and polymerisation sectors, Saint Gobain, came forward opposing the proposed measures. Saint Gobain sources PVB film for its automotive and building glass production and purchases PVA-based redispersible powder (RPD) and liquid dispersions polymer (LDP) for its gypsum and mortar production. RDP and LDP are products of PVA users active in the emulsions and polymerisation sector.

(644) Saint Gobain argued that the adoption of the proposed antidumping duties on PVA from the PRC would have a significant impact on its activities. Being a user of PVA-based products the duties would negatively affect its purchase prices and hence its cost of production and, in the company’s view, it was unlikely that any of the increased costs could be passed on to the customers.

(645) The Commission disagreed with this argument. As explained above in recitals (579) and (597), the impact of the duties on the costs and profitability of the users in the PVB and in the polymerisation sectors will be minor, hence its effect on a further downstream sector will be negligible. These claim were therefore rejected.

(646) The imposition of measures is clearly in the interest of the Union PVA industry selling on the free market. Without measures, Chinese producers will continue to dump PVA on the Union market preventing the Union industry to regain its profitability.

(647) The argument, put forward by some of the users, that the Union is highly import reliant for its supply stability should be considered taking into account that, without the Union industry, the Union would lose about [50 % – 60 %] of its supply capacity (99) of PVA.

(648) With regard to the users in the PVB and polymerization segments, it is important to point out that they sourced only a limited part of their PVA consumption from China, and that the impact of any measures on their profitability will be minor. The competitiveness of the paper and the adhesives industry in general will also not be affected, as PVA represented a minor part of their production cost. On the basis of the above, the Commission concluded that there were no compelling reasons that it was not in the Union interest to impose definitive measures on imports of PVA originating in the country concerned.

(649) On the basis of the conclusions reached by the Commission on dumping, injury, causation and Union interest, definitive anti-dumping measures should be imposed to prevent further injury being caused to the Union industry by the dumped imports of the product concerned.

(650) To determine the level of the measures, the Commission first established the amount of duty necessary to eliminate the injury suffered by the Union industry.

(651) The injury would be eliminated if the Union industry was able to cover its costs of production and to obtain a profit before tax on sales of the like product in the Union market that could be reasonably achieved under normal conditions of competition by an industry of this type in the sector, namely in the absence of dumped imports.

(652) The basic profit margin of the Union industry realised before the increase of dumped imports (2015) was added to the level of investments, R&D and innovation (‘IRI’) under normal conditions of competition, expressed as a percentage on turnover. Since this amounted to less than 6 %, the target profit was set at 6 % which is the minimum target profit margin to be applied in accordance with Article 7(2)(c).

(653) As no claims were made pursuant to Article 7(2)((d) concerning current or future costs which result from multilateral environmental agreements and protocols thereunder or from the listed ILO Conventions, no further costs were added to the non-injurious prices thus established.

(654) The Commission then determined the injury elimination level on the basis of a comparison of the weighted average import price of the sampled cooperating exporting producers in the country concerned, as established for the price undercutting calculations, with the weighted average non-injurious price of the like product sold by the sampled Union producers on the Union free market during the investigation period. Any difference resulting from this comparison was expressed as a percentage of the weighted average import CIF value. The resulting average underselling margin was 57,9 %.

(655) After final disclosure, Wacker argued that the non-injurious price of the Union industry established by the Commission per PCN should be corrected to exclude the cost of the PVA grades not sold by the Chinese companies, and contested the 6 % target profit used by the Commission in the calculation. Concerning Wacker’s first claim, the Commission clarifies that it only used the cost of production of the Union industry PCNs for which it found a comparable exported PCN.

(656) As regards the target profit level, as mentioned in recital (652) above, this level was established in line with the provision of Article 7(2)(c) of the basic Regulation. These claims were thus rejected.

(657) The injury elimination level for ‘other cooperating companies’ and for ‘all other companies’ was defined in the same manner as the dumping margin for these companies (see recitals (393) and (396)).

(658) Definitive anti-dumping measures should be imposed on imports of certain polyvinyl alcohols originating in the People’s Republic of China, in accordance with the lesser duty rule in Article 7(2) of the basic Regulation. The Commission compared the injury margins and the dumping margins. The amount of the duties should be set at the level of the lower of the dumping and the injury margins.

(660) The individual company anti-dumping duty rates specified in this Regulation were established on the basis of the findings of this investigation. Therefore, they reflected the situation found during this investigation with respect to these companies. These duty rates are exclusively applicable to imports of the product concerned originating in the PRC and produced by the named legal entities. Imports of the product concerned produced by any other company not specifically mentioned in the operative part of this Regulation, including entities related to those specifically mentioned, should be subject to the duty rate applicable to ‘all other companies’. They should not be subject to any of the individual anti-dumping duty rates.

(661) A company may request the application of these individual anti-dumping duty rates if it changes subsequently the name of its entity. The request must be addressed to the Commission (100). The request must contain all the relevant information enabling to demonstrate that the change does not affect the right of the company to benefit from the duty rate which applies to it.

(662) To ensure a proper enforcement of the anti-dumping duties, the anti-dumping duty for all other companies should apply not only to the non-cooperating exporting producers in this investigation, but also to the producers which did not have exports to the Union during the investigation period.

(663) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (101), when an amount is to be reimbursed following a judgment of the Court of Justice of the European Union, the interest to be paid should be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union on the first calendar day of each month.

(664) To minimise the risks of circumvention due to the high difference in duty rates, special measures are needed to ensure the application of the individual anti-dumping duties. The companies with individual anti-dumping duties must present a valid commercial invoice to the customs authorities of the Member States. The invoice must conform to the requirements set out in Article 1(3) hereof. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to ‘all other companies’.

(665) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of anti-dumping duty to imports, it is not the only element to be taken into account by the customs authorities. Indeed, even if presented with an invoice meeting all the requirements set out in Article 1(3) of this Regulation, the customs authorities of the Member States should carry out their usual checks and should, like in all other cases, require additional documents (shipping documents, etc.) for the purpose of verifying the accuracy of the particulars contained in the declaration and ensure that the subsequent application of the lower rate of duty is justified, in compliance with customs law.

(666) Should the exports by one of the companies benefiting from lower individual duty rates increase significantly in volume after the imposition of the measures concerned, such an increase in volume could be considered as constituting in itself a change in the pattern of trade due to the imposition of measures within the meaning of Article 13(1) of the basic Regulation. In such circumstances and provided the conditions are met an anti-circumvention investigation may be initiated. This investigation may, inter alia, examine the need for the removal of individual duty rate(s) and the consequent imposition of a country-wide duty.

(667) On 3 July 2020, interested parties were informed of the essential facts and considerations based on which it was intended to recommend the imposition of a definitive anti-dumping duty on imports of PVA originating in the PRC.

(668) Interested parties were also granted a period within which they could make representations subsequent to this disclosure. 17 parties submitted comments on disclosure. Upon request, hearings were held with Kuraray, Sekisui, Wacker, Cordial, Solutia, Ahlstrom-Munksjö, Sinopec and Wegochem..

(669) Following the comments received in response to the disclosure, interested parties were informed on 24 July and on 6 August 2020 of additional facts and considerations which had not been part of the final disclosure of 3 July 2020. Additional comments were received from the Union industry, the Chinese exporting producers, and several users.

(670) Upon request, hearings were held with Kuraray, Sekisui, Wacker, Cordial, Solutia, Ahlstrom-Munksjö, Sinopec and Wegochem.

(671) The comments submitted by interested parties were duly considered, and, where appropriate, the findings have been modified accordingly.

(672) The Committee established by Article 15(1) of Regulation (EU) 2016/1036 did not deliver an opinion and a simple majority of its component members opposed the draft Commission implementing Regulation. The Commission then resubmitted the draft Commission implementing Regulation to the Appeal Committee in accordance with Article 5(5) of Regulation (EU) No 182/2011 of the European Parliament and of the Council (102).

(673) In accordance with Article 6(3) of Regulation (EU) No 182/2011, the appeal committee did not deliver an opinion,

HAS ADOPTED THIS REGULATION:

Article 1

Article 2

Where a new exporting producer from the People’s Republic of China provides sufficient evidence to the Commission, the Annex may be amended by adding that new exporting producer to the list of cooperating companies not included in the sample and thus subject to the appropriate weighted average anti-dumping duty rate, namely 57,9 %. A new exporting producer shall provide evidence that:

(a) it did not export the goods described in Article 1(1) originating in the People’s Republic of China during the period of investigation (1 July 2018–30 June 2019);

(b) it is not related to an exporter or producer subject to the measures imposed by this Regulation; and

(c) it has either actually exported the goods described in Article 1(1) originating in the People’s Republic of China or has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the period of investigation

Article 3

This Regulation shall enter into force on the day following that 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, 25 September 2020.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 176, 30.6.2016, p. 21.

(2) OJ C 256/03, 30.7.2019, p. 4.

(3) No. t19.005031.

(4) No. t19.006513.

(5) No. t20.002714.

(6) As clarified in the Notice of Clarification.

(7) Notice clarifying the Notice of initiation of an anti-dumping proceeding concerning imports of certain polyvinyl alcohols originating in the People’s Republic of China (OJ C 378, 7.11.2019, p. 9).

(8) ‘Low-ash narrow molecular weight distribution PVA’.

(9) Commission Staff Working Document on Significant Distortions in the Economy of the People’s Republic of China for the purposes of Trade Defence Investigations, 20 December 2017, SWD(2017) 483 final/2 (hereafter ‘Report’).

(10) See Notice of initiation of an anti-dumping proceeding concerning imports of certain polyvinyl alcohols originating in the People’s Republic of China (OJ C 256, 30.7.2019, p. 4), point 3.

(11) Regulation (EU) 2017/2321 of the European Parliament and of the Council of 12 December 2017 amending Regulation (EU) 2016/1036 on protection against dumped imports from countries not members of the European Union and Regulation (EU) 2016/1037 on protection against subsidised imports from countries not members of the European Union (OJ L 338, 19.12.2017, p. 1).

(12) Report – Chapter 2, p. 6-7.

(13) Report – Chapter 2, p. 10.

(14) Available at http://www.fdi.gov.cn/1800000121_39_4866_0_7.html (last viewed 15 July 2019).

(15) Report – Chapter 2, p. 20-21.

(16) Report – Chapter 3, p. 41, 73-74.

(17) Report – Chapter 6, p. 120-121.

(18) Report – Chapter 6. p. 122 – 135.

(19) Report – Chapter 7, p. 167-168.

(20) Report – Chapter 8, p. 169–170, 200-201.

(21) Report – Chapter 2, p. 15-16, Report – Chapter 4, p. 50, p. 84, Report – Chapter 5, p. 108-9.

(22) Report – Chapter 3, p. 22-24 and Chapter 5, p. 97-108.

(23) Report – Chapter 5, p. 104-9.

(24) See http://pdf.dfcfw.com/pdf/H3_AP201809031187055296_1.pdf

(25) ‘Today, there are 12 main PVA producers in China. Among those, the biggest ones are Wanwei High tech, Sichuanchuanwei (SINOPEC), Shuangxin, Ningxia Land totalling 770 000 tonnes/year.’ See http://www.ccxr.com.cn/pdf/201891717121180715.pdf

(26) http://www.wwgf.com.cn/Article/lists/cateid/10.html

(27) https://www.sohu.com/a/336366992_617351

(28) See https://www.yicai.com/news/942233.html

(29) Report – Chapter 5, p. 100-1.

(30) Report – Chapter 2, p. 26.

(31) Report – Chapter 2, p. 31-2.

(32) Available at https://www.reuters.com/article/us-china-congress-companies-idUSKCN1B40JU (last viewed 15 July 2019).

(33) See http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2018/2018-4/2018-04-03/4189060.PDF, page 138.

(34) See http://www.wwgf.com.cn/Home/Article/show/id/3038.html

(35) See http://www.sinopecgroup.com/group/gsjs/ddjs

(36) http://www.shuangxinpva.com/dangqunjianshe/

(37) Report – Chapters 14.1 to 14.3.

(38) Report – Chapter 4, p. 41-42, 83.

(39) See www.gov.cn/gongbao/content/2013/content_2404709.htm

(40) See http://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf

(41) See http://fgw.nmg.gov.cn/fggz/fzgh/202001/t20200110_153847.html

(42) See http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2017/2017-4/2017-04-12/3210569.PDF page 127.

(43) See http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2018/2018-4/2018-04-03/4189060.PDF page 152.

(44) Ibid. page 167.

(45) See 2018 annual report, pages 156-157, http://q.stock.sohu.com/newpdf/201934709238.pdf

(46) See 2019 annual report, page 154, http://www.sse.com.cn/disclosure/listedinfo/announcement/c/2020-04-10/600063_20200410_2.pdf

(47) See Report, page 46.

(48) See Report, pages 232-233.

(49) See Report, pages 224 and 231.

(50) See Report, page 177.

(51) Report – Chapter 6, p. 138-149.

(52) Report – Chapter 9, p. 216.

(53) Report – Chapter 9, p. 213-215.

(54) Report – Chapter 9, p. 209-211.

(55) Report – Chapter 13, p. 332-337.

(56) Report – Chapter 13, p. 336.

(57) Report – Chapter 13, p. 337-341.

(58) Report – Chapter 6, p. 114-117.

(59) Report – Chapter 6, p. 119.

(60) Report – Chapter 6, p. 120.

(61) Report – Chapter 6, p. 121-122, 126-128, 133-135.

(62) See IMF Working Paper ‘Resolving China’s Corporate Debt Problem’, by Wojciech Maliszewski, Serkan Arslanalp, John Caparusso, José Garrido, Si Guo, Joong Shik Kang, W. Raphael Lam, T. Daniel Law, Wei Liao, Nadia Rendak, Philippe Wingender, Jiangyan, October 2016, WP/16/203.

(63) Report – Chapter 6, p. 121-122, 126-128, 133-135.

(64) World Bank Open Data – Upper Middle Income, available at https://data.worldbank.org/income-level/upper-middle-income (last viewed 15 July 2019).

(65) If there is no production of the product under investigation in any country with a similar level of development, production of a product in the same general category and/or sector of the product under review may be considered.

(66) Note of 2 October 2019, Note of 20 December 2019 and Note of 30 March 2020.

(67) Solutia is producing PVA in the Union and also purchasing PVA from the Union, Chinese and other third country producers.

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

(69) https://www.dnb.com

(70) http://www.turkstat.gov.tr => Press releases => select Labour Cost Statistics.

(71) http://www.turkstat.gov.tr => Press releases => select Electricity and Natural Gas prices.

(72) https://www.invest.gov.tr/en/investmentguide/pages/cost-of-doing-business.aspx

(73) The coal in question is according to the exporting producer in the PRC classified under HS 270 119.

(74) Regulation (EU) 2015/755 of the European Parliament and of the Council of 29 April 2015 on common rules for imports from certain third countries (OJ L 123, 19.5.2015, p. 33). Article 2(7) of the basic Regulation considers that domestic prices in those countries cannot be used for the purpose of determining normal value and, in any event, such import data was negligible.

(75) Imports from other third countries of 34 % was related to Azodiisobutyronitrile (AZO) / azobisisobutyronitrile (AZN) which were factors of production having only a minor impact on the cost of manufacturing.

(76) http://www.turkstat.gov.tr/PreIstatistikTablo.do?istab_id=2090 as last accessed on 30 April 2020.

(77) This is a statistical classification of economic activities used by Eurostat, https://ec.europa.eu/eurostat/web/nace-rev2 (last viewed on 30 April 2020).

(78) http://www.turkstat.gov.tr/PreIstatistikTablo.do?istab_id=2104 (last accessed on 30 April 2020).

(79) NACE Rev. 2 – Statistical classification of economic activities; https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-RA-07-015 (last accessed on 22 July 2020).

(80) http://www.turkstat.gov.tr/PreTablo.do?(262)alt_id=1029 (last accessed on 22 June 2020).

(81) https://ec.europa.eu/eurostat/data/database (last accessed on 21 July 2020).

(82) Ibid.

(83) Increase from 0,017 EUR/kWh (or 0,18 EUR/m3) to 0,020 EUR/kWh (or 0,21 EUR/m3) (last accessed on 21 July 2020).

(84) Increase from 0,025 EUR/kWh (or 0,27 EUR/m3) to 0,028 EUR/kWh (or 0,30 EUR/m3) (last accessed on 21 July 2020).

(85) Electricity prices for non-household consumers – bi-annual data (from 2007 onwards); https://ec.europa.eu/eurostat/data/database (last accessed on 22 July 2020).

(86) Company Limited version of mission report sent on 5 March 2020 and Article 18 letter sent on 26 February 2020 (t20.001693).

(87) Company Limited version of mission report sent on 5 March 2020 and Article 18 letter sent on 26 February 2020 (t20.001693).

(88) Company Limited version of mission report sent on 5 March 2020 and Article 18 letter sent on 26 February 2020 (t20.001692).

(89) Company Limited version of mission report sent on 5 March 2020 and Article 18 letter sent on 16 March 2020 (t20.002421).

(90) See for instance Judgment of General Court of 25 June 2015 in Case T-26/12, Musim Mas para, ECLI:EU:T:2015:437, para. 43.

(91) Ibid.

(92) See for instance Judgment of General Court of 25 June 2015 in Case T-26/12, Musim Mas para, ECLI:EU:T:2015:437, para. 43.

(93) Ibid.

(94) Viscous preparation, essentially consisting of poly(vinyl alcohol) (CAS RN 9002-89-5).

(95) Council Regulations 1340/2014; 713/2014; 2015/2448; 2016/2389; 2018/2070.

(96) Total free market and captive consumption.

(97) This figure has been revised following the disclosure.

(98) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

(99) Total free market and captive consumption.

(100) European Commission, Directorate-General for Trade, Directorate H, Rue de la Loi 170, 1040 Brussels, Belgium.

(101) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulation (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014 and Decision No 541/2014/EU and repealing Regulation (EU Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1)

(102) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).