LegalizeCommission Implementing Regulation (EU) 2023/1647 of 21 August 2023 imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People’s Republic of China following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council
(251) No individual user cooperated and submitted a questionnaire reply.
(252) The Commission did receive two written submissions, one from Unitedprint.com, a Union user of CFP and one from an association of the printing industry, Intergraf (109) (supported by The Royal Dutch Association of Printing and Allied Industries).
(253) The submission of Intergraf explained that the Union's printing industry was suffering from the replacement of paper media with digital media, as well as from massive imports of printed products, in particular from the PRC. According to Intergraf, the anti-dumping and anti-subsidy? measures undermine the Union printers' competitiveness, which is not protected by similar trade measures and has to respect strict environmental standards.
(254) Intergraf claimed that more than EUR 700 million of printed paper is exported from China to the EU yearly. This includes a large variety of print products that are not printed on CFP. Based on the information available, the Commission could not assess what part of the products imported from the PRC was printed on CFP and what was printed on other types of paper.
(255) The original investigation found that most products that are printed on CFP are ‘time sensitive’ products, such as magazines, brochures, direct mail and inserts that are less susceptible to being imported from the PRC because of the time needed for transportation. Information submitted by the applicants in this review confirmed that the findings of the original investigation were still valid.
(256) Accordingly, the Commission concluded that while it is likely that some print materials are printed on CFP outside the Union because of anti-dumping and countervailing duties, their impact on the economic situation of the Union's printing industry is limited.
(257) Intergraf also pointed to shortages of supplies of CFP and large increase of prices, especially since mid-2021. This was also noted in the submission from Unitedprint.com. With the information provided, the Commission could not assess the respective volumes of supply and demand and therefore the alleged market imbalance. The Commission could also not evaluate whether the mentioned price increase could be passed to their customers or not. The Commission also notes that in 2021, in a post-COVID-19 context, there were shortages on a number of raw material markets.
(258) On the basis of the above, the Commission concluded that there were no compelling reasons of the Union interest against the maintenance of the existing measures on imports of CFP originating in China.
(259) On the basis of the conclusions reached by the Commission on continuation of subsidy, recurrence of injury and Union interest, the anti-subsidy measures on CFP from China should be maintained.
(260) To minimise the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual countervailing duties. The companies with individual countervailing 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) of this regulation. Imports not accompanied by that invoice should be subject to the countervailing duty applicable to ‘all other companies’.
(261) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of countervailing 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 Member States must carry out their usual checks and may, 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.
(262) Should the exports by one of the companies benefitting 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 23(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.
(263) The individual company countervailing duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in China and produced by the named legal entities. Imports of the product under review 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 countervailing duty rates.
(264) A company may request the application of these individual countervailing duty rates if it changes subsequently the name of its entity. The request must be addressed to the Commission (110). 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. If the change of name of the company does not affect its right to benefit from the duty rate which applies to it, a regulation about the change of name will be published in the Official Journal of the European Union.
(265) All interested parties were informed of the essential facts and considerations on the basis of which it was intended to recommend that the existing measures be maintained. They were also granted a period to make representations subsequent to this disclosure.
(266) The Commission received a submission from the EU industry that further substantiated the Commission’s findings that the Chinese exporting producers were able to sell at prices below the Union target price. It was therefore not deemed necessary to amend the text of the present Regulation.
(267) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (111) 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.
(268) The measures provided for in this Regulation are in accordance with the opinion of the Committee established by Article 15(1) of Regulation (EU) 2016/1036,
HAS ADOPTED THIS REGULATION:
Article 1
A definitive countervailing duty is imposed on imports of coated fine paper, which is paper or paperboard coated on one or both sides (excluding kraft paper or kraft paperboard), in either sheets or rolls, and with a weight of 70 g/m2 or more but not exceeding 400 g/m2 and brightness of more than 84 (measured according to ISO 2470-1), currently falling under CN codes ex 4810 13 00, ex 4810 14 00, ex 4810 19 00, ex 4810 22 00, ex 4810 29 30, ex 4810 29 80, ex 4810 99 10 and ex 4810 99 80 (TARIC codes 4810130020, 4810140020, 4810190020, 4810220020, 4810293020, 4810298020, 4810991020 and 4810998020) and originating in the People's Republic of China.
The definitive countervailing duty is not imposed on rolls suitable for use in web-fed presses. Rolls suitable for use in web-fed presses are defined as those rolls which, if tested according to the ISO test standard ISO 3783:2006 concerning the determination of resistance to picking — accelerated speed method using the IGT tester (electric model), give a result of less than 30 N/m when measuring in the cross-direction of the paper (CD) and a result of less than 50 N/m when measuring in the machine direction (MD). The definitive countervailing duty is not imposed on multi-ply paper and multi-ply paperboard.
The rates of the definitive countervailing duty applicable to the net, free-at-Union-frontier price, before duty, of the product described in paragraph 1 and produced by the companies listed below shall be as follows:
The application of the individual duty rates specified for the companies mentioned in paragraph 2 shall be conditional upon presentation to the Member States’ customs authorities of a valid commercial invoice, on which shall appear a declaration dated and signed by an official of the entity issuing such invoice, identified by his/her name and function, drafted as follows: ‘I, the undersigned, certify that the (volume) of (product under review) sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in [country concerned]. I declare that the information provided in this invoice is complete and correct.’ If no such invoice is presented, the duty applicable to all other companies shall apply.
Unless otherwise specified, the provisions in force concerning customs duties shall apply.
Article 2
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, 21 August 2023.
For the Commission The President Ursula VON DER LEYEN
(3) Council Implementing Regulation (EU) No 451/2011 of 6 May 2011 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of coated fine paper originating in the People's Republic of China (OJ L 128, 14.5.2011, p. 1).
(4) Council Implementing Regulation (EU) 2017/1187 of 3 July 2017 imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People's Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council (OJ L 171, 4.7.2017, p. 134).
(6) OJ C 248, 30.6.2022, p. 119
(7) OJ C 248, 30.6.2022, p. 130
(8) OJ L 176, 30.06.2016, p.21.
(9) https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2616
(10) https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2616
(11) https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2616
(12) The WTO Agreement on Subsidies and Countervailing Measures
(13) WT/DS437/AB/R, United States — Countervailing Duty Measures on Certain Products from China, Appellate Body Report of 18 December 2014, paragraphs 4.178 — 4.179. This Appellate Body Report quoted WT/DS295/AB/R, Mexico — Definitive AntiDumping Measures on Beef and Rice, Appellate Body Report of 29 November 2005, paragraph 293; and WT/DS436/AB/R, United States — Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India, Appellate Body Report of 8 December 2014, paragraphs 4.416-4.421.
(14) Council Implementing Regulation (EU) No 452/2011 of 6 May 2011 imposing a definitive anti-subsidy duty on imports of coated fine paper originating in the People's Republic of China (OJ L 128, 14.5.2011, p. 18).
(15) Commission Implementing Regulation (EU) 2017/1187 of 3 July 2017 imposing a definitive countervailing duty on imports of certain coated fine paper originating in the People's Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council (OJ L 171, 4.7.2017, p. 134).
(16) Commission Implementing Regulation (EU) 2018/1690 of 9 November 2018 imposing a definitive countervailing duty on imports of certain pneumatic tyres, new or retreated, of rubber, of a kind used for busses or lorries and with a load index exceeding 121 originating in the People's Republic of China (OJ L 283, 12.11.2018, p. 1).
(17) Commission Implementing Regulation (EU) No 2019/72 of 17 January 2019 imposing a definitive countervailing duty on imports of electric bicycles originating in the People's Republic of China (OJ L 16, 18.1.2019, p. 5).
(18) Commission Implementing Regulation (EU) 2019/688 of 2 May 2019 imposing a definitive countervailing duty on imports of certain organic coated steel products originating in the People’s Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council (OJ L 116, 3.5.2019, p. 39).
(19) Commission Implementing Regulation (EU) 2022/72 of 18 January 2022 imposing definitive countervailing duties on imports of optical fibre cables originating in the People’s Republic of China and amending Implementing Regulation (EU) 2021/2011 imposing a definitive anti-dumping duty on imports of optical fibre cables originating in the People’s Republic of China (OJ L 12, 19.1.2022, p. 34)
(20) Commission Implementing Regulation (EU) 2021/2287 of 17 December 2021 imposing definitive countervailing duties on imports of aluminium converter foil originating in the People’s Republic of China and amending Implementing Regulation (EU) 2021/2170 imposing definitive anti-dumping duties on imports of aluminium converter foil originating in the People’s Republic of China (OJ L 458, 22.12.2021, p. 344).
(21) Commission Implementing Regulation (EU) 2020/776 of 12 June 2020 imposing definitive countervailing duties on imports of certain woven and/or stitched glass fibre fabrics originating in the People's Republic of China and Egypt and amending Commission Implementing Regulation (EU) 2020/492 imposing definitive anti-dumping duties on imports of certain woven and/or stitched glass fibre fabrics originating in the People's Republic of China and Egypt (OJ L 189, 15.6.2020, p. 1).
(22) Commission Implementing Regulation (EU) 2021/328 of 24 February 2021 imposing a definitive countervailing duty on imports of continuous filament glass fibre products originating in the People’s Republic of China following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and of the Council (OJ L 65, 25.2.2021, p. 1).
(23) See recital (60) of Implementing Regulation (EU) No 452/2011.
(24) The APP group: Sinar Mas Paper (China) Investment Co., Ltd, Gold East Paper (Jiangsu) Co., Ltd, Gold Huasheng Paper (SuZhou Industrial Park) Co., Ltd, Ningbo Zhonghua Paper Industry Co., Ltd, Ningbo Asia Pulp & Paper Co., Ltd.
(25) The Chenming Group: Shandong Chenming Paper Holdings Limited, Shouguang Chenming Art Paper Co.Ltd.
(26) China's 12th Five-Year Plan (2011-2015) was adopted on 14 March 2011.
(27) 14th Five-Year Plan, covering the years 2021-2025 passed by the Chinese parliament, the National People’s Congress, in March 2021
(28) http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2019/2019-3/2019-03-30/5140126.PDF pages 13 and 37
http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2020/2020-3/2020-03-28/5976095.PDF pages 11 and 36
(29) Decision No 40 of the State Council on Promulgating and Implementing the Temporary Provisions on Promoting Industrial Structure Adjustments.
(30) See Annex 19 of the expiry review request concerning the Decision of the State Council on Promulgating the Implementing the “Temporary Provisions on Promoting Industrial Structure Adjustment”
(31) For a similar conclusion see Regulation 452/2011, recital (76), and Regulation 2017/1187, recital (45), which observe that Decision No 40 is legally binding for public bodies as well as economic operators in China.
(32) See GFR, recital (76)
(33) See recitals (82) to (89) of Implementing Regulation (EU) No 452/2011 and recitals 55 to 59 of Implementing Regulation (EU) 2017/1187.
(34) See Recital 100 of Implementing Regulation (EU) 2017/969
(35) Commission Implementing Regulation (EU) 2017/969 of 8 June 2017 imposing definitive countervailing duties on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People’s Republic of China and amending Commission Implementing Regulation (EU) 2017/649 imposing a definitive anti-dumping duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People’s Republic of China (OJ L 146, 9.6.2017, p. 17) (‘HRF case’), Commission Implementing Regulation (EU) 2018/1690 of 9 November 2018 imposing definitive countervailing duties on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries and with a load index exceeding 121 originating in the People’s Republic of China and amending Commission Implementing Regulation (EU) 2018/1579 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain pneumatic tyres, new or retreaded, of rubber, of a kind used for buses or lorries, with a load index exceeding 121 originating in the People’s Republic of China and repealing Implementing Regulation (EU) 2018/163 (OJ L 283, 12.11.2018, p. 1) (‘Tyres case’) and Commission Implementing Regulation (EU) 2019/72 of 17 January 2019 imposing a definitive countervailing duty on imports of electric bicycles originating in the People’s Republic of China (OJ L 16, 18.1.2019, p. 5) (‘E-bikes case’), Commission Implementing Regulation (EU) 2020/776 of 12 June 2020 imposing definitive countervailing duties on imports of certain woven and/or stitched glass fibre fabrics originating in the People’s Republic of China and Egypt and amending Commission Implementing Regulation (EU) 2020/492 imposing definitive anti-dumping duties on imports of certain woven and/or stitched glass fibre fabrics originating in the People’s Republic of China and Egypt (OJ L 189, 15.6.2020, p. 33) (‘GFF case’).
(36) See recital (226) of Commission Implementing Regulation (EU) 2022/72.
(37) Introduction_The Export-Import Bank of China (eximbank.gov.cn)
(38) See Commission implementing Regulation (EU) 2021/328 recital (75)
(39) See recital (266) of Commission Implementing Regulation (EU) 2022/72.
(40) See applicants’ request, Annex 20
(41) See applicants’ request, Annex 20
(42) See applicants’ request, Annex 16
(43) See applicants’ request, Annex 16
(44) See applicants’ request, Annex 16
(45) See recital (274) of Commission Implementing Regulation (EU) 2022/72.
(46) Implementing Regulations of the Enterprise Income Tax Law of the People’s Republic of China - Order of the State Council of the People’s Republic of China No 714.
(47) See recital (466) of Commission Implementing Regulation (EU) 2022/72
(48) See recital (476) of Commission Implementing Regulation (EU) 2021/2287
(49) See applicants’ request recitals 221, 223 and 224.
(50) See recital (503) of Commission Implementing Regulation (EU) 2021/2287 and recital (496) of Commission Implementing Regulation (EU) 2022/72
(51) 2015 Annual Report of the Chenming Group, page 14.
(52) Chenming Group 2018 Annual Report, page 157, 2019 Annual Report, page 146, and 2021 Interim Report, page 159.
(53) Chenming Group 2018 Annual Report, page 254, 2019 Annual Report, page 253, 2020 Annual Report, page 266, and 2021 Interim Report, page 160.
(54) Chenming Group 2018 Annual Report, pages 5, 157 and 254, 2019 Annual Report, pages 5 and , 146 and 253, 2020 Annual Report, pages 6 and 266, and 2021 Interim Report, pages 6, 159 and 160.
(55) Gold East Paper (Jiangsu) 2020 Annual Report, pages 65, 69 and 97
(56) Announcement [2021] No 13 of the Ministry of Finance and the State Taxation Administration on Further Improvements to the Policy of Weighted Pre-tax Deduction for Research and Development Expenses.
(57) See recital (487) of Commission Implementing Regulation (EU) 2021/2287
(58) See recital (335) of Council Implementing Regulation (EU) No 452/2011.
(59) See recital (82) of Commission Implementing Regulation (EU) 2017/1187.
(60) See paragraph 221 of the applicants’ request.
(61) See recital (129) of Council Implementing Regulation (EU) No 452/2011
(62) See recital (91) of Commission Implementing Regulation (EU) 2017/1187
(63) See recital 211, 216, 233 and 235 of applicants’ request
(64) See recital (499) of Commission Implementing Regulation (EU) 2021/2287 and recital (571) of Commission Implementing Regulation (EU) 2022/776.
(65) See recital (142) of Council Implementing Regulation (EU) No 452/2011
(66) See recital (100) of Commission Implementing Regulation (EU) 2017/1187
(67) See recital (189)of Commission Implementing Regulation (EU) 2019/688
(68) Council Implementing Regulation (EU) No 1239/2013 of 2 December 2013, Solar panels original investigation, recital (336) to (342); Council Implementing Regulation ((EU) No 215/2013 of 11 March 2013 organic coated steel, recital (293) to (298).
(69) See recital (152) of Council Implementing Regulation (EU) No 452/2011
(70) See recital (111) of Commission Implementing Regulation (EU) 2017/1187
(71) See Mass Entrepreneurship and Innovation Preferential Subsidies Policy, subsidies 47 to 49, Applicants’ request, Annex 34 Mass entrepreneurship and innovation
(72) Council Implementing Regulation (EU) No 1239/2013 of 2 December 2013, Solar panels expiry review, recitals (384) to (392); Commission implementing regulation (EU) 2019/688 organic coated steel Recital (189)
(73) See recital (176) of Council Implementing Regulation (EU) No 452/2011
(74) See recital (119) of Commission Implementing Regulation (EU) 2017/1187
(75) See recital (445)of Commission Implementing Regulation (EU) 2021/2287, see recital (192) of Commission Implementing Regulation (EU) 2022/72
(76) See US CVD Sunset Review Uncoated Paper from China (2022) https://www.usitc.gov/publications/701_731/pub5275.pdf, page 9.
(77) See recitals 43, 46 and 56 of the applicants’ request
(78) See recital (445) of Commission Implementing Regulation (EU) 2021/2287, see recital (192) of Commission Implementing Regulation (EU) 2022/72
(79) See Chenming Group 2019 Annual Report, pages 5 and 253, and 2020 Annual Report, pages 6 and 266.
(80) See recital (125) of Commission Implementing Regulation (EU) 2021/328 and recital (539) of Commission Implementing Regulation (EU) 2021/2287
(81) See recital (251)of Council Implementing Regulation (EU) No 452/2011
(82) See Commission implementing Regulation (EU) 2020/776 GFF, recital 498
(83) Commission implementing Regulation (EU) 2021/2287, ACF, recital 544.
(84) See Chenming Group 2019 and 2020 Interim Report, page 217 and 229 respectively
(85) See recital (130) of Commission Implementing Regulation (EU) 2017/1187
(86) See Commission Implementing Regulation (EU) 2022/72, OFC, rec. 453, Commission Implementing Regulation (EU) 2018/1690 Tyres, rec 429.
(87) https://www.sinosure.com.cn/en/Sinosure/Profile/index.shtml.
(88) See recital (105) of the Commission Implementing Regulation (EU) 2021/328
(89) OECD Study on Chinese export credit policies and programmes, page 7, para 32, available at https://www.oecd.org/ officialdocuments/publicdisplaydocumentpdf/?cote=TAD/ECG(2015)3&doclanguage=en, last accessed on 18 August 2021.
(90) See Sinosure website, Company profile, Supporting ‘Made in China’, https://www.sinosure.com.cn/en/Resbonsiblity/smic/index.shtml, last accessed on 17 August 2021.
(91) http://www.gov.cn/ldhd/2009-05/27/content_1326023.htm
(92) See Sinosure profile https://www.sinosure.com.cn/en/Sinosure/Profile/index.shtml
(93) China Credit Insurance Corporation (SINOSURE) Releases the National Risk Analysis Report for 2020 : Axton Global
(94) See recital (112) of Commission Implementing Regulation (EU) 2021/328 and recital (458) of Commission Implementing Regulation (EU) 2022/72.
(95) See recital (148) of Commission Implementing Regulation (EU) 2017/1187
(96) See recital (149) of Commission Implementing Regulation (EU) 2017/1187
(97) See recital (150) of Commission Implementing Regulation (EU) 2017/1187
(98) See Applicants’ request, Annex 7, RISI CWF capacities and demand reports.
(99) See Expiry review request, Annex 7, RISI CWF capacities and demand reports.
(100) Spare capacities are considered to be the difference between the existing Chinese CFP capacities, Chinese CFP demand and Chinese CFP exports from the request (see Annex 8, Svan data).
(101) Overcapacities are considered to be the difference between the existing Chinese CFP capacities and domestic Chinese CFP demand.
(102) See Annex 10 of the applicants’ request.
(103) Recital 158 of Implementing Regulation (EU) No 451/2011.
(104) Svan data is a market research consultancy (https://svandata.com/)
(105) Based on data from the sampled Union producers
(106) Based on Ibid. It is the costs of production of the sampled Union producers to which the target profit was added.
(107) During the RIP, freight costs were at abnormally high levels. Hence, the Commission used 2019 freight costs to calculate the theoretical Chinese landed prices. In accordance with the data from the expiry review request (Annex 28), the freight costs from China to the EU on average in 2019 amounted to 63 EUR per ton and the customs handling cost to 8 EUR per ton.
(108) Data from the application's request. The EU landed price was calculated as the Chinese FOB prices to which ocean freight and customs handling costs were added.
(109) Intergraf represents 21 national printing federations. The European printers represented by Intergraf are users of CFP and potentially importers of CFP from China.
(110) European Commission, Directorate-General for Trade, Directorate G, Rue de la Loi 170, 1040 Brussels, Belgium.
(111) 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 Regulations (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).
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