Commission Implementing Regulation (EU) 2025/61 of 15 January 2025 imposing a definitive countervailing duty 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 following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council

(255) For the injury determination, the Commission distinguished between macroeconomic and microeconomic injury indicators. The Commission evaluated the macroeconomic indicators on the basis of data contained in the review request, Eurostat statistics and submissions from ETRMA. The data related to all Union producers. The Commission evaluated the microeconomic indicators on the basis of data contained in the questionnaire replies from the sampled Union producers. The data related to the sampled Union producers. Both sets of data were found to be representative of the economic situation of the Union industry.

(256) The macroeconomic indicators are: production, production capacity, capacity utilisation, sales volume, market share, growth, employment, productivity, magnitude of the subsidy margin, and recovery from past subsidisation.

(257) The microeconomic indicators are: average unit prices, unit cost, labour costs, inventories, profitability, cash flow, investments, return on investments, and ability to raise capital.

(258) The original investigation conducted analysis of the economic situation of the Union industry on an aggregated basis and, in certain microeconomic indicators, also at the level of tiers given the Union market segmentation. In the current investigation the Commission first analysed the economic situation of the Union industry on an aggregated basis.

(259) The Commission also conducted the analysis of certain indicators at the tier level. As shown in recitals (301) to (308), this analysis confirms that the trends for the product concerned considered as a whole in general correspond to those for the tiers considered separately.

(260) In the original investigation, the Commission weighted the results of the sampled Union producers in accordance with their share in the total Union sales of the Union producers to ensure that the SMEs were represented according to their share in the total Union sales in all micro-indicators. As SMEs are active only in tier 3 segment, this adjustment had as a direct consequence to increase the share of tier 3 sales within the set of data originating from the sampled Union producers.

(261) In the current investigation, the Commission considered that the original weighting was not needed in order to make an objective assessment of the state of the Union industry in the context of the expiry review. Indeed, the investigation found that the injury picture of the SMEs operating only in Tier 3 was even worse than the injury picture of the Tier 3 overall. Moreover, the Commission found that, even without weighting the data of the sampled Union producers, the Union industry suffered injury in all tiers (see recitals (301) to (308)). Thus, logically, any weighting would only increase the negative trends currently observed in the overall injury picture.

(263) Along with the growth of the market and the sales in the Union market, the production volumes increased from 2020 to 2021. After that, the production declined in 2022 and decreased even further in the review investigation period. The decrease of the production volumes was attributable to the decreased sales volumes, which in turn was linked to the decrease of Union consumption and resulted in the loss of market share of the Union industry. In the review investigation period, the Union industry’s production volumes returned to the same level as in 2020. The Union industry was however able to adapt its capacity to the changes in production volumes, tempering the fluctuations of the capacity utilisation rate - which even improved slightly (by 3 %) over the whole period considered.

(265) In the growing market, the Union industry’s sales volumes increased from 2020 to 2021. During 2022, the sales volumes of the Union industry declined despite the growth of the market and decreased further in the review investigation period. In the review investigation period, the Union industry’s sales volumes had returned to the same level as 2020. Because the sales of the Union industry lagged behind the increase of the market in 2022 and deteriorated faster than the market in the review investigation period, the market share fell from 69% to 61% during the period considered.

(266) In its comments on initiation Hankook Group claimed that the sales of the Union industry as well as its market share remained essentially stable across the period considered and that the slight decrease from 2022 to the review investigation period could be explained by the decrease in consumption.

(267) The findings of the investigation do not support this claim. Albeit the sales of the Union industry were on the same level in the review investigation period compared to 2020, there was an important decrease (13 %) from 2022 to the review investigation period. Also, the Union industry’s market share decreased from 69% to 61% during the period considered.

(268) Therefore, this claim was rejected.

(269) The Union consumption first increased from 2020 to 2022 in line with the increase of economic activity after the Covid. The increase in consumption peaked in 2022 and slowed down during the review investigation period, resulting in an overall increase of 11% during the period considered. Only during 2021 the Union industry sales could follow the positive trend of the market. In 2022 the Union industry’s sales did not increase in the same pace as the market and they deteriorated faster than the market in review investigation period. This resulted in decrease of 8 percentage points of market share (from 69% to 61%) during the period considered.

(271) During the period considered the Union industry lost over 2 700 direct jobs. When the Union industry’s production volumes increased from 2020 to 2021 also the employment increased. However, as the Union industry was also able to improve its productivity, the employment did not increase at the same rate as the production volumes. The falling production volumes from 2021 to the review investigation period resulted in decrease of jobs and also some loss of productivity.

(272) During the review investigation period, the individual subsidy margins found for the cooperating exporting producers were still substantial (see recital (214) above).

(273) However, despite the fact there was still subsidisation from China the analysis of the injury indicators shows that the measures in place had a positive impact on the Union industry at the beginning of the period considered. This positive situation however reversed in 2022 when the situation of the Union industry deteriorated again.

(275) Sales prices of tyres to unrelated customers in the Union market increased by 25% during the period considered. From 2020 to 2021 the increase of prices coincided with an increase of demand. In this situation the Union industry was able to increase its sales prices more (by 7%) than the cost of production increased (by 4 %).

(276) This favourable situation changed in 2022, after which the Union industry was unable to pass-on the cost increases to its selling prices. Although the sales prices increased by 18 percentage points between 2021 and the review investigation period these price increases were not in line with the increase of cost of production.

(277) Overall, the cost of production increased by 40 % during the period considered. The most significant increase took place from 2021 to 2022 when the cost of production increased by 30 %.

(278) The key injury indicators were also analysed for the three tiers.

(283) The average labour cost per employee increased by 9% from 2020 to 2021 and then by 20 % from 2021 to 2022, remaining on the same level in the review investigation period.

(285) Compared to the production, the closing stock remained on the same level from 2020 to 2022 (being 14 % – 16% of the production volume). An increase (to 21% of the production volume) was observed when comparing the closing stock at the end of the investigation period (30 June 2023) with the year-end stock levels in 2020 – 2022. This increase is however largely explained by seasonality. Higher volumes of tyres are sold during the second half of the year compared to the first half, whereas the production is less seasonal. Due to this seasonality, the stock volumes are usually higher at end June compared to end December. Therefore, as such, the apparent increase of stock levels during the review investigation period is not indicative of the financial situation of the Union producers.

(287) The Commission established the profitability of the sampled Union producers by expressing the pre-tax net profit of the sales of the like product to unrelated customers in the Union as a percentage of the turnover of those sales.

(288) The overall profitability first improved from 2020 to 2021 when the demand of tyres increased following the recovery of road transports from the Covid crisis and when overall imports had not yet increased to the same extent as afterwards. As explained in the recital (275), the Union industry was able to increase its sales prices in 2021 more than the increase of cost of production which contributed to increased profit margins from 7,9% to 13,4 %.

(289) The situation changed in 2022, when the Union industry was unable to increase its prices in line with the cost increases. As a consequence, the Union industry’s profitability dropped to low levels (1,8% in 2022 and 1,3 % in the review investigation period).

(290) The net cash flow is the ability of the Union producers to self-finance their activities. The trend in net cash flow was declining during the whole period considered. It was influenced by two main factors. On one hand, the overall profitability of the Union industry contributed positively to the cash flow at the beginning of the period considered. This contribution was practically exhausted after the drop in profitability in 2022. On the other hand, the increase of production volumes and closing stock levels absorbed working capital and had thus a negative impact to cash flow already from 2021. Overall, the cash flow decreased from positive 96 million EUR to negative 95 million EUR during the period considered.

(291) Over the period considered, investments increased from 50 million EUR to 66 million EUR, i.e. by 32 %. Overall, their level remained below 10 % of the total turnover during the whole period considered.

(292) The return on investments is the profit in percentage of the net book value of investments. It first increased from –2,1 % to 3,9 % from 2020 to 2021, in line with the improved profitability. Thereafter, when the overall profitability of the Union industry deteriorated, the return of investments decreased to –15,2 % in 2022 and –16,3 % in the review investigation period.

(293) The Union industry is fragmented between large groups of multi-national companies and over 400 SMEs throughout the Union and heterogeneous in relation to their ability to raise capital.

(294) A separate analysis on the same methodology as described was made for profitability in the three tiers.

(295) Development of the profitability in tier 1 during the period considered was similar to the fluctuation of the profitability of the Union industry considered as a whole. It first improved from 2020 to 2021 and then dropped to low levels (1,9% in 2022 and 1,3 % in the review investigation period).

(297) Development of the profitability in tier 2 during the period considered first improved from 2020 to 2021, then dropped to 3,5% in 2022 and further to 2,5% in the review investigation period.

(299) Tier 3 was unprofitable during the whole period considered. During the period considered the situation worsened and the negative profitability of –1,6% in 2020 decreased to –3,5% in the review investigation period. The situation was even worse for the SMEs operating in tier 3 for which the profitability fluctuated between 4,6% and –7,0% during the period considered. The slight “improvement” between 2022 and the review investigation period showed the limited success of the efforts of the industry to adapt to the difficult situation.

(301) The investigation found that the Union industry as a whole showed recovery from past subsidisation during 2021. Between 2022 and the review investigation period, there was a reverse of this recovery.

(302) This is particularly evident in the Union industry’s decreased profitability, loss of market share and inability to increase prices in line with rising costs. In addition, indicators related with the profitability, such as cash flow and return of investment, also deteriorated. This was especially observed among tier 3 producers, who are particularly exposed to price pressure from low-priced imports, which in turn adversely affects the higher tiers through the reverse-cascading effect described in the original investigation (75).

(303) Based on the above, the Commission concluded that the Union industry suffered material injury within the meaning of Article 8(5) of the basic Regulation during the review investigation period.

(304) During the period considered the Union industry lost its market share to imports from other countries, notably Thailand, Vietnam, Türkiye and also China.

(305) The deterioration of Union industry’s the market share was partly attributable to the increase of Chinese imports following the partial annulment of the anti-dumping duties and more importantly due to increase of imports from other countries at low prices. The lower price imports have made it difficult for the Union industry to increase its prices and maintain its market share in the environment of increased costs.

(306) Following the start of Russian war of aggression against Ukraine, prices of input materials and energy increased considerably resulting in rapid increase of cost of production. At the same time, import volumes increased and from 2022 the Union industry was unable to pass-on the cost increases to its selling prices. Although the sales prices increased by 18% between 2021 and the review investigation period, these price increases were insufficient to compensate the increase of cost of production.

(307) As a result, the Commission also notes that the injurious situation in which the Union industry is found comes at a time when other factors such as significant cost increases and substantial increase of low-priced imports from other countries, especially Thailand, Vietnam and Türkiye took place. As shown in recitals (248) to (252) above, the imports from Thailand and Vietnam increased substantially and their price levels were markedly below the Union industry’s prices.

(308) For this reason, the Commission concluded that the subsidised imports from China contributed to the material injury to the Union industry during the review investigation period; however, other factors in particular the cost increase and imports from other countries, were capable of putting into question the genuine relationship between the subsidised imports and the effects on the Union industry. Thus, the Commission decided to further assess whether injury caused by the subsidised imports from China would likely recur if measures were allowed to lapse.

(309) Following final disclosure, Hankook claimed that injury suffered by Union industry is not caused by Chinese imports. Hankook claimed that the Chinese imports do not undercut the Union industry prices in tier 3 nor in tier 1. To support its claim, Hankook submitted sensitive data on its export prices and volumes.

(310) The Commission disagrees with this claim. As stated in recital (247) the data provided by Hankook is insufficient for carrying out any further undercutting analysis as it does not contain sufficient information on other operators active in tier 1, 2 and 3. Consequently, this data could not invalidate any of the results of the undercutting analysis made by the Commission. The Commission therefore considers that the premise of this claim, i.e. that there is no undercutting in tier 1 or tier 3, is incorrect, and therefore, this claim is rejected.

(311) Following final disclosure Hankook also claimed that the injury suffered by the Union industry is not caused by Chinese imports but by tyres imported from other third countries.

(312) As stated in the recital (308), the Commission concluded that dumped imports from China contributed to the material injury to the Union industry but also other factors, in particular the cost increase and imports from other countries, were capable of putting into question the genuine relationship between the dumped imports and the effects on the Union industry. Therefore, the Commission considers that this claim does not invalidate the conclusion above and is therefore rejected.

(313) The Commission assessed, in accordance with Article 18(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury originally caused by the subsidised imports from China if the measures against were allowed to lapse.

(314) In this respect the following elements were analysed by the Commission: the production capacity and spare capacity in China, attractiveness of the Union market and export prices to third country markets and relationship between prices in the Union and China, possible absorption capacity of third country markets, likely price levels of imports from China in the absence of anti-subsidy measures, and their impact on the Union industry, including undercutting and injurious level and increase of Chinese imports following temporary annulment of the anti-dumping duties.

(315) As set out in recitals (217) - (219), there is substantial production capacity and spare capacity in China to increase exports to the Union market rapidly in the event that the anti-subsidy measures are allowed to expire. As established in recital (218) the available unused capacity in China in 2022 amount to almost 20 million units, almost equivalent to the total consumption on the EU market.

(316) As set out in recitals (220) - (223), the Union market, which is the second largest market in the world after the United States, is an attractive market both in terms of its prices and its size. In 2023, the price level of Chinese exports to the Union was significantly higher compared to the Chinese average export prices to other main destinations, including the USA. Moreover, despite the anti-subsidy measures in force, Chinese imports into the Union remained at around 30 % of the volume of imports during the initial investigation.

(317) As set out in recital (224) trade defence measures on exports of the like product from PRC are in force in most of the third country markets which are significant consumers of truck tyres. This makes these markets less attractive for the Chinese exporting producers. This is an additional element which supports the finding that PRC’s current production capacity would most likely end in the Union market, should measures be repealed.

(318) As shown in Table 3, import prices into the Union from China during the review investigation period were 218 EUR/item which is materially lower than the average sales price of the Union industry 283 EUR/item shown in Table 8, and also below their cost of production 260 EUR/item.

(319) Therefore, it is likely that without anti-subsidy duties, the Chinese imports would materially undercut the Union prices.

(320) As shown in Table 2 and set out in recital (237), the increase of Chinese imports was particularly significant in 2022 when the original measures were partially annulled by General Court of the European Union.

(321) This indicates that the Chinese exporting producers remain interested in the Union market and imports would be likely to increase again, should the measures be repealed.

(322) In its comments upon initiation, the Hankook group claimed that import trends indicate that there is no threat of continuation or recurrence of injury. According to Hankook group the current market share of the Chinese imports could not have significant impact in the future of the Union industry. Also, the Hankook group claimed that the increased Chinese production capacity was not dedicated to the Union market but to other markets.

(323) The Commission disagreed with this view. Even if, to certain extent, the current duties somewhat shield the Union industry from the subsidised imports from the PRC, Chinese imports were still able to increase their market share during the period considered. Given Chinese price levels without duties and the spare capacity available in China, it is likely that the market share of the Chinese imports would increase substantially should measures be allowed to lapse. Also, the claim that the increased Chinese capacity has been mainly directed to other markets during the period considered was not substantiated. Even if correct, the Commission considers that the Union market remains attractive to Chinese imports.

(324) Therefore, these claims were rejected.

(325) Following final disclosure Hankook claimed that there is no sufficient evidence of likelihood of recurrence of injury. In particular, Hankook claimed that the increase of imports in 2022 cannot be linked to the partial annulment of measures in 2022 and is not indicative of behaviour of the Chinese exporting producers. Hankook also claimed that there was no undercutting in tier 3, that the Chinese producers would rather increase their profits than lower their prices should the measures be allowed to lapse and, that given that Union market represented only 4% of the total Chinse export volume, the Union market cannot be considered attractive.

(326) The Commission disagreed with these claims. First, the partial annulment of the measures by the General Court did send a signal to the market on the possibility of partial cancellation and subsequent reimbursement of duties, making the imports potentially more attractive. Second, as explained in the recitals (247) and (310) above, the premise of the claim that there is no undercutting in tier 3 is incorrect. Third, Hankook did not submit any evidence to support its claim that the Chinese producers would rather increase their profits than lower their prices should the measures be allowed to lapse. Finally, the current level of Chinese exports to the Union when duties are in force, cannot invalidate the fact that Union market remains attractive for the reasons listed in the recitals (220) - (223) and (316) above. Therefore, this claim is rejected.

(327) In view of the above, the Commission concluded that should the measures lapse, it is likely that this will result in a significant increase of subsidised imports from China at injurious price levels, and therefore further aggravating the injurious situation of the Union industry.

(328) In accordance with Article 31 of the basic Regulation, the Commission examined whether maintaining the existing anti-subsidy measures would be against the interest of the Union as a whole. The determination of the Union interest was based on an appreciation of all the various interests involved, including those of the Union industry, importers and end users.

(329) Union producers representing more than 25% of the Union production volume cooperated with the investigation.

(330) The investigation showed that the Union industry was in a vulnerable situation where it was not able to fully pass-on the cost increases to its selling prices and its profit margins had diminished.

(331) The Commission concludes that given that the Union industry is already suffering injury and in case of lapse of the measures there is a strong likelihood of increase of subsidised imports from China at injurious price levels this would lead to increasing price pressure on the Union market and would further aggravate the injury suffered by the Union industry.

(332) The continuation of the measures is therefore clearly in the interest of the Union industry.

(333) No importers or users cooperated with the investigation.

(334) The original investigation concluded that while the measures were not in the interest of importers that predominantly rely on the import of very cheap tyres from China, importers with broader portfolio are unlikely to be severely affected by the restoration of fair competition.

(335) In the absence of new evidence, the Commission therefore concluded that, like in the original investigation, the continuation of measures will not affect importers or users to any significant extent.

(336) The original investigation found that measures protecting the Union industry’s premium tyre manufacturers producing new high-quality tyres which are designed to have along life cycle and can be retreaded, and also the retreaders active in the tier 3 market, are in the interest of the Union's policy to reduce waste and to manage raw materials in a sustainable way. Moreover, given that it is mostly SMEs which are active in the retreading business, the imposition of measures would also be in line with the important Commission objective to support SMEs (76) .

(337) In the original investigation treads suppliers had made submissions supporting the imposition of anti-subsidy measures alleging such measures are essential for the survival of the retreading industry and stating that without retreading activities, their business will be severely affected. Subsequently, the Commission concluded that measures would be in the interest of treads suppliers.

(338) In the absence of new evidence, the Commission therefore concluded that, like in the original investigation, the measures would be in the interest of treads suppliers.

(339) On the basis of the above, the Commission concluded that there were no compelling reasons under Article 31 of the basic Regulation that it would not be in the interest of the Union to maintain the existing measures on imports of tyres originating in the People’s Republic of China.

(340) On the basis of the conclusions reached by the Commission on continuation of subsidisation, recurrence of injury and Union interest, the anti-subsidy measures on tyres from China should be maintained.

(341) To minimise the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual anti-subsidy duties. The application of individual countervailing duty is only applicable upon presentation of 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. Until such invoice is presented, imports should be subject to the countervailing duty applicable to ‘all other companies’.

(342) 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 the 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.

(343) 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 23(3) 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.

(344) The individual company countervailing duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in the People’s Republic of 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.

(345) 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 (77). 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.

(346) 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.

(347) In view of Article 109 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council (78) 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.

(348) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 25(1) of Regulation (EU) 2016/1037 of the European Parliament and of the Council (79)

HAS ADOPTED THIS REGULATION:

Article 1

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, 15 January 2025.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 176, 30.6.2016, p. 21.

(2) Commission Regulation (EU) 2018/683 of 4 May 2018 imposing a provisional anti-dumping duty 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 amending Implementing Regulation (EU) 2018/163 (OJ L 116, 7.5.2018, p. 8).

(3) Commission Implementing Regulation (EU) 2018/1579 of 18 October 2018 imposing a definitive antidumping 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 263, 22.10.2018, p. 3).

(4) 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 antidumping 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).

(5) Judgement of the General Court (Tenth Chamber, Extended Composition) of 4 May 2022, China Rubber Industry Association (CRIA) and China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) v European Commission, T-30/19 and T-72/19, EU:T:2022:226.

(6) Commission Implementing Regulation (EU) 2023/737 of 4 April 2023 re-imposing a definitive anti-dumping duty 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 following the judgment of the General Court in joined cases T-30/19 and T-72/19 (OJ L 96, 5.4.2023, p. 9–44).

(7) Commission Implementing Regulation (EU) 2023/738 of 4 April 2023 re-imposing a definitive countervailing duty 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 following the judgment of the General Court in joined cases T-30/19 and T-72/19 (OJ L 96, 5.4.2023, p.45).

(8) Commission Implementing Regulation (EU) 2024/2217 of 6 September 2024 terminating the partial interim review of the anti-subsidy measures applicable to 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.

(9) Commission Implementing Regulation (EU) 2024/2219 of 6 September 2024 terminating the partial interim review of the anti-dumping measures applicable to 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.

(10) OJ C 62, 20.2.2023, p. 4.

(11) Notice of initiation of an expiry review of the anti-subsidy measures applicable to 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 OJ C 711, 10.11.2023.

(12) The segmentation between tiers is explained in section 2.4.

(13) Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles (OJ L 263, 9.10.2007, p. 1).

(14) Commission Implementing Regulation (EU) No 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).

(15) 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).

(16) 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).

(17) 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)

(18) 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).

(19) 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)

(20) 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).

(21) 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).

(22) Commission Implementing Regulation (EU) 2023/1123 of 7 June 2023 imposing a definitive countervailing duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in 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 (OJ L 148, 8.6.2023, p. 84).

(23) Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China (OJ L, 2024/2754, 29.10.2024).

(24) Available at https://ec.europa.eu/transparency/documents-register/detail?ref=SWD(2024)91&lang=en.

(25) https://www.gov.cn/zhengce/2022-04/10/content_5684320.htm.

(26) NPC, 2021, Outline of the 14th Five-Year Programme for National Economic and Social Development of the People’s Republic of China and 2035 Long-term Vision, available from: http://www.gov.cn/xinwen/2021-03/13/content_5592681.htm.

(27) Notice of the State Council on the Publication of "Made in China 2025" (available at: https://cset.georgetown.edu/wp-content/uploads/t0432_made_in_china_2025_EN.pdf).

(28) Decision of the State Council on Promulgating and Implementing the Temporary Provisions on Promoting Industrial Structure Adjustment No. 40 (2005); Guidance Catalogue for the Industrial Structure Adjustment (2019) (available at: https://www.gov.cn/xinwen/2019-11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf).

(29) Guidance Catalogue for the Industrial Structure Adjustment (2019), p. 17 (available at: https://www.gov.cn/xinwen/2019- 11/06/5449193/files/26c9d25f713f4ed5b8dc51ae40ef37af.pdf).

(30) Catalogue of Encouraged Industries for Foreign Investment (2022 Edition, available at: https://www.tjftz.gov.cn/tisip/upload/files/2023/1/Catalogue%20of%20Encouraged%20Industries%20for%20Foreign%20Investment%20(2022_Edition).pdf).

(31) "Fourteenth Five-Year Plan" for the development of raw materials industry, Ministry of Industry and Information Technology Ministry of Science and Technology Ministry of Natural Resources (available at: https://cset.georgetown.edu/wp-content/uploads/t0284_14th_Five_Year_Plan_EN.pdf).

(32) The "14th Five-Year Plan" of the rubber industry was released, creating a new era of glory, China Rubber Industry Association, Nov. 2020.; Guidelines for the "14th Five-Year Plan" Development Plan of the Rubber Industry, November 2020 (available at: https://www.cria.org.cn/c174).

(33) See, for example, Commission Implementing Regulation (EU) 2023/1123 of 7 June 2023 imposing a definitive countervailing duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in 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, recs. 44 et s.

(34) See Regulation 2018/1690, rec. 469, and Notice on accelerating market-based power trading and improving trading mechanisms, issued by the NDRC and the National Energy Administration, 18 July 2018.

(35) Notice of the General Office of the Ministry of Industry and Information Technology on Carrying out the 2022 Textile and Garment "Excellent Supply and Promotion of Upgrading" Activities, Ministry of Industry and Information Technology, December 2022 (available at: https://www.gov.cn/zhengce/zhengceku/2022-10/12/content_5717806.htm).

(36) Commission Implementing Regulation (EU) No 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).

(37) See recitals 74 to 136 of the request and the corresponding annexes.

(38) See recital 55 letter c)

(39) In case of fixed interest loans. For variable interest rate loans, the PBOC benchmark rate during the IP was taken.

(40) Business and Commercial Overdrafts | Metro Bank (metrobankonline.co.uk).

(41) See website of the People’s Bank of China:

https://www.boc.cn/en/cbservice/cncb6/cb61/200811/t20081112_1324239.html, last accessed on 30 August 2024.

(42) Ibid.

(43) See website of DBS Bank: https://www.dbs.com.cn/corporate/financing/working-capital/bank-acceptance-draft-bad-issuance, last accessed on 30 August 2024.

(44) For a more specific description of the way in which bank acceptance drafts are generally used, see GFF case referenced in footnote 19 above, recitals 359 to 370.

(45) See GFF Regulation mentioned in footnote 6, recital 385.

(46) See recital (55) letter c)

(47) See recital (148) of the Commission Implementing regulation (EU) 2023/1647.

(48) See recital (54) letter b)

(49) See recital (54) letter c)

(50) Notice of the Ministry of Science and Technology, the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the issuance of the 2006 edition of the Export Catalogue of China's High-tech Products (available at: http://policy.mofcom.gov.cn/claw/clawContent.shtml?id=4139)

(51) Recitals (560) – (572) of 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). Recitals (524) – (530) of 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).

(52) 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 C/2021/9713, (OJ L 458, 22.12.2021, p.344).

(53) Several Opinions of the Central Committee of the Communist Party of China and the State Council on Further Deepening the Reform of the Power System (Zhong Fa [2015] No 9), Section III (4).

(54) See Property Law of the PRC of 16 March 2007, available at: http://www.npc.gov.cn/zgrdw/englishnpc/Law/2009-02/20/ content_1471118.htm.

(55) See Regulation on the Implementation of the Land Administration Law of the PRC of 27 December 1998, as amended, available at: https://www.fao.org/faolex/results/details/en/c/LEX-FAOC170451,.

(56) See https://law.pkulaw.com/chinalaw/d8db5e659bc282b9bdfb.html.

(57) See https://law.pkulaw.com/chinalaw/66cde758ad66f43bbdfb.html.

(58) See https://law.pkulaw.com/chinalaw/6ef282863f024c04bdfb.html.

(59) https://law.pkulaw.com/chinalaw/58891db210496a5fbdfb.html?keyword=%E5%9B%BD%E6%9C%89%E5%BB%BA%E8%AE%BE%E7%94%A8%E5%9C%B0%E4%BD%BF%E7%94%A8%E6%9D%83.

(60) See https://www.gov.cn/zwgk/2006-09/05/content_378186.htm.

(61) See recital (55) letter c).

(62) See recital (55)(54)() letter c).

(63) Upheld by the General Court in Case T-444/11 Gold East Paper and Gold Huacheng Paper versus Council, Judgment of the General Court of 11 September 2014 ECLI:EU:T:2014:773.

(64) See recital (55)() letter c), see in particular GFF investigation.

(65) See GFF regulation, footnote 6), recitals (506) and (507).

(66) https://lvr.land.moi.gov.tw, last accessed on 31 May 2024.

(67) Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China (L2024/2754), recitals (451) – (464)

(68) See recital (55) letter c).

(69) Order No. 235 of the General Administration of Customs, 20 December 2017.

(70) Paragraph 222 of the request.

(71) Paragraph 233 of the request.

(72) (camex.gov.br) RESOLUÇÃO GECEX No 198, DE 3 DE MAIO DE 2021 - RESOLUÇÃO GECEX No 198, DE 3 DE MAIO DE 2021 - DOU - Imprensa Nacional (in.gov.br)

(73) 20220912111726_Report-700.pdf (itac.org.za)

(74) Based on the information of the WTO Trade Remedies Data Portal, available at: https://trade-remedies.wto.org/en, and of the WTO Anti-dumping Notification Portal, available at: https://ad-notification.wto.org/

(75) See recital (242) of COMMISSION IMPLEMENTING REGULATION (EU) 2018/1579 of 18 October 2018 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 L263 of 22.10.2018. p.3.

(76) Recital (295) of the Commission Implementing Regulation (EU) 2018/1579 of 18 October 2018 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 263, 22.10.2018, p. 3.)

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

(78) Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast), OJ L, 2024/2509, 26.9.2024 .

(79) Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidized imports from countries not members of the European Union (OJ L 176, 30.6.2016, p. 55).