Commission Implementing Regulation (EU) 2022/1013 of 27 June 2022 imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms originating in the People’s Republic of China and as extended to Vietnam and Lao People’s Democratic Republic following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council

Available at: https://data.tuik.gov.tr/Bulten/Index?p=Electricity-and-Natural-Gas-Prices-Period-II:-July-December,-2020-37458

.

(89) The Commission used the quotation of the electricity price available in the Turkstat Data Portal, which provides half-year averages electricity unit prices. The Commission used as a benchmark an average of the industrial rates provided for the review investigation period.

3.3.5.

Manufacturing overhead costs, SG&A and profits

(90) According to Article 2(6a)(a) of the basic Regulation, the constructed normal value shall include an undistorted and reasonable amount for administrative, selling and general costs and for profits. In addition, a value for manufacturing overhead costs needs to be established to cover costs not included in the factors of production referred to above.

(91) Further to the factors of production in recital (81) above, the Commission calculated manufacturing overhead costs. In view of the lack of cooperation from the Chinese producers, the calculation of these manufacturing overhead costs was based on the ratio of manufacturing overhead divided by the cost of manufacturing reported by KH. This percentage was applied to the undistorted costs of manufacturing.

(92) For SG&A and profit, the Commission used the financial data of the two Turkish producers listed in recital (67). The Commission first determined the percentage of SG&A and profit over the costs of goods sold (COGS) for each producer. Then, an average SG&A and profit in the representative country (weighted by the companies’ turnover) was established. Publicly available audited accounts of these companies were made available to the interested parties as an attachment to the Second Note.

3.3.6.

Calculation of the normal value

(93) On the basis of the above benchmarks, the Commission constructed the normal value according to the following methodology.

(94) First, the Commission established the undistorted manufacturing costs. In the absence of cooperation by the exporting producers, the Commission relied on the information provided by KH on the consumption of each factor of production (raw-materials, labour and energy) for the production of the product under review. These consumption volumes were multiplied by the undistorted costs per unit established in Turkey, as described in Section 3.3.4.

(95) Second, to arrive to the undistorted costs of production, the Commission added the percentage of the manufacturing overheads determined as described in recital (90) to the undistorted costs of manufacturing.

(96) Finally, in addition to the cost of production established as described in recital (95), the Commission applied the SG&A and profit in the representative country established as explained in recital (92). The SG&A and profit expressed as a percentage of COGS and applied to the undistorted costs of production amounted to 31,3 % and 24,7 % respectively.

(97) The normal value, calculated as described in recitals (93) to (96), was reduced by the undistorted value of the by-product. Undistorted value of the by-product was established by multiplying the quantity sold in the review investigation period, as reported by KH, by its undistorted price per unit as established in Turkey, as described in section 3.3.4.2 above.

(98) For certain products, the PRC applies a policy of reimbursing VAT only partially upon export. To ensure that the normal value is expressed at the same level of taxation as the export price, the normal value is adjusted upward by the part of VAT charged on exports of the product under review that was not refunded to the Chinese exporting producers. Data from the Chinese tax and custom administration website and data of Transcustoms

http://www.transcustoms.cn/index.asp (last seen on 10 March 2022).

indicated that in the review investigation period, the VAT charged on exports of RBM was not fully refunded. The final normal value was therefore adjusted upward by 3 % accordingly.

(99) On that basis, the Commission constructed the normal value on an ex-works basis in accordance with Article 2(6a)(a) of the basic Regulation. Due to the fact that no exporting producer cooperated, the normal value is applicable on a countrywide basis.

3.4.

Export price and conclusion on continuation of dumping

(100) In the absence of cooperation of Chinese exporting producers, the export price was determined on the basis of facts available in accordance with Article 18 of the basic Regulation.

(101) Only 356 thousand pieces of RBM were imported from the PRC during the review investigation period according to Eurostat. This amount is negligible not only in light of total Union consumption, but also since, as explained in recital (26), a large number of different types of RBM were sold in the Union during the review investigation period. In the absence of cooperation from Chinese exporting producers, the Commission has no indication of the product mix within such small volumes of imports. For these reasons, the Commission concluded that these low volumes do not provide a sufficient basis for a finding on continuation of dumping and examined the likelihood of recurrence of dumping should the measures be allowed to lapse.

1. LIKELIHOOD OF RECURRENCE OF DUMPING

(102) Further to the conclusion of recital (101), the Commission investigated, in accordance with Article 11(2) of the basic Regulation, the likelihood of recurrence of dumping should the measures be repealed. The following elements were analysed: the existence of dumping based on exports to third countries, the production capacity and spare capacity in the PRC and the attractiveness of the Union market.

4.1.

Exports to third countries

(103) Based on GTA imports statistics, the Commission identified four biggest importers of the RBM from the PRC during the review investigation period: Mexico, the USA, Malaysia and Vietnam

Countries are listed according to the volumes of imports from the PRC.

. These four countries accounted for 61 % of the total world imports of the product under review from China.

(104) With regard to Chinese exports of RBM to these four main markets, dumping calculations were made following the methodology described below.

4.1.1.

Normal value

(105) To assess dumping from the PRC to third countries, the Commission used the normal value constructed as described in recitals (93) to (99).

4.1.2.

Export price

(106) As there was no cooperation from the Chinese producers, the likely export price to the Union was estimated by analysing Chinese export prices to third countries in the review investigation period, based on the relevant country specific GTA import statistics.

(107) Malaysia and Vietnam reported their import values only at CIF level. Therefore, the Commission adjusted the reported values to FOB level by deducting sea freight and insurance cost

On the basis of the OECD Dataset: International Transport and Insurance Costs of Merchandise Trade (ITIC) – China-country in question: https://stats.oecd.org/Index.aspx?DataSetCode=CIF_FOB_ITIC

. This adjustment was not necessary for Mexico and the USA as imports values at FOB level were available.

(108) In the second step FOB import values of all the four countries were adjusted to the ex-work level by deducting domestic transport cost in China

On the basis of quotation for Tianjin Port – Beijing deliveries as provided by the World Bank https://www.doingbusiness.org/content/dam/doingBusiness/country/c/china/CHN.pdf page 88.

.

4.1.3.

Comparison and dumping margins

(109) The Commission compared the constructed normal value and the export prices to the third countries on an ex-work basis.

(110) The above comparison showed countrywide dumping margins for the Chinese exports to the four countries, expressed as a percentage of their respective CIF values

In the case of Mexico, CIF values were obtained by using the FOB/CIF value ratio available for the USA.

as follows:

Country% of total world imports of the product under review from the PRCDumping margin (%)Mexico3537,6USA1321,9Malaysia7100,8Vietnam661,6

(111) The average export price found during the review investigation period for each of the above countries would lead to a dumping margin of more than 20 % when compared to the normal value established in in section 3.3.6. This indicates that, if imports from the PRC would arrive in the Union at that level, such imports would be dumped.

4.2.

Production capacity and spare capacity in the PRC

(112) Spare capacity in China, estimated at 375 million pieces according to the expiry review request, exceeds more than 7 times the total Union consumption of 40 million pieces – 60 million pieces during the review investigation period. Chinese capacity has been built up dramatically over the last decade, currently standing around 830 million pieces, which is well beyond its present output of 455 million pieces.

(113) Based on the above, the Commission concluded that the Chinese exporting producers have significant spare capacities, which they could use to produce RBM to export to the Union if the measures were allowed to lapse.

4.3.

Attractiveness of the Union market

(114) According to the GTA data, the Chinese exporting producers exported to their main third markets at prices which were 1,2 % to 32,5 % lower as compared to the average sales prices of the Union producers on the Union market. Taking into account this price level, exporting to the Union is potentially attractive for the Chinese exporters, as the expiry of the measures would allow them to sell at prices higher than those at which they export to other countries but still below the EU industry prices.

(115) The Union market is also attractive to the Chinese producers in view of its size, as it is the largest market globally for some types of RBM according to the expiry review request.

4.4.

Conclusion on the likelihood of recurrence of dumping

(116) In view of the above, the Commission concluded that there is a strong likelihood that dumping would recur if the current measures were allowed to lapse. In particular, the level of the normal value established in the PRC, the level of Chinese export prices to third country markets, the attractiveness of the Union market and the availability of significant production capacity in the PRC all point to a strong likelihood of recurrence of dumping in case the current measures would be allowed to lapse.

1. INJURY

5.1.

Definition of the Union industry and Union production

(117) The like product was manufactured by two producers in the Union during the investigation period: Ring Alliance Ringbuchtechnik GmbH (Oroszlany, Hungary) and I.M.L. Industria Meccanica Lombarda S.r.l. (Offanengo, Italy). They constitute the Union industry within the meaning of Article 4(1) of the basic Regulation.

(118) Both producers (the first of them being the applicant) have cooperated in the investigation. Since both companies together represented the total Union production of RBM in the review investigation period, they are considered to represent the Union industry within the meaning of Article 4(1) of the basic Regulation.

(119) The total Union production during the review investigation period was established at around [40000 – 60000] pieces

Only ranges are given in order to protect confidentiality of data of the two Union producers.

. The Commission established the figure on the basis of the questionnaire replies of the two producers. Because the micro- and macroeconomic figures were established on the basis of the data of two Union producers, the data was provided in ranges to ensure confidentiality.

5.2.

Union consumption

(120) The Commission established the Union consumption on the basis of (a) the verified sales volumes of the like product by the Union industry into the Union market reported in the respective questionnaire replies of the Union producers, and (b) import volumes of RMBs (TARIC level) into the Union market reported in Eurostat and converted into pieces. Within the TARIC nomenclature valid at the entry into force of Regulation (EU) 2016/703, the Commission identified two groups of RBM:

RBM other than those with 17 or 23 rings (TARIC codes 8305100011, 8305100013, 8305100019 and 8305100034); and

RBM with 17 and 23 rings (TARIC codes 8305100021, 8305100023, 8305100029 and 8305100035).

(121) In Eurostat, the unit of measurement for RBM is weight (KG). The Commission calculated a conversion factor for each of the above groups of RBM, on the basis of the verified production data of the Union industry. It used the conversion factors thus calculated to establish the relevant import volumes in pieces.

(122) The calculation of these conversion factors was duly explained in a note for the file

t22.000638.

. In that note the Commission provided the source of the data it used to calculate the two conversion factors (Union industry sales figures for the review investigation period submitted in weight and unit) and the methodology applied (total weight of each product group’s Union sales divided by the corresponding number of pieces). No comments were received in respect of this note for the file.

(123) Union consumption developed as follows:

Table 1

Consumption in Union market

Source: Eurostat and questionnaire replies

Volume201720182019RIPIndex (2017 = 100)100958669Ranges (‘000 pcs)70000 – 9000060000 – 8000060000 – 8000040000 – 60000

(124) The review showed that Union consumption of RBM declined by 31 % over the period considered from around 70 – 90 million pieces in 2017 to 40 – 60 million pieces in the review investigation period

Only ranges are given to protect confidentiality of data of the two Union producers.

.

(125) The continued decline of the Union consumption is explained by digitalisation. However, the Union industry believes that the impact of digitalisation is in its last phase and that the market will gradually stabilize, especially for the main markets, i.e. the school market and the samples market. Moreover, the COVID-19 outbreak in 2020 resulted in an additional temporary decrease of demand in that year.

5.3.

Imports from the country concerned

5.3.1.

Volume and market share of the imports from the country concerned

(126) The Commission established the volume of imports on the basis of Eurostat statistics, as duly explained in recital (120) above. Its market share was established by comparing imports to the Union consumption as set out in table 1.

(127) Imports from the country concerned developed as follows:

Table 2

Import volume and market share

Source: Eurostat and the note for the file

201720182019RIPPRC index (2017 = 100)100893539PRC ranges (‘000 pcs)800 – 1300800 – 1300300 – 800300 – 800Market share ranges (%)1 – 30,5 – 2,50,2 – 2,20,5 – 2,5

Market share index (2017 = 100)100934157

(128) The volume of imports of RBM originating in the PRC remained at a very low level throughout the period considered and fluctuated around a market share of 1 %.

5.3.2.

Prices of the imports from the country concerned and price undercutting.

(129) Since there was no cooperation from exporting producers in the PRC, and in view of the very low quantities imported in the Union from the PRC as explained in recital (101), no reliable import prices could be established during the review investigation period and therefore it was not possible to perform a meaningful calculation of price undercutting.

(130) Under these circumstances, the Commission determined the price undercutting by imports from the PRC during the review investigation period by comparing:

(1) the weighted average prices of the product under review produced in the PRC and sold to its main export markets, as explained in recitals (106)-(107), established on a CIF basis, with appropriate adjustments for the conventional rate of customs duty (2,7 %) and post-importation costs (2 %), and

(2) the corresponding weighted average sales prices of the product under review of the Union producers charged to unrelated customers on the Union market, adjusted to ex-works level.

(131) The result of the comparison was expressed as a percentage of the Union producers’ turnover during the review investigation period. It showed undercutting of up to 32,5 % depending on the prices to the main export markets used. Similar levels of undercutting on the Union market are expected should the measures be allowed to lapse.

5.4.

Volumes and prices of imports from third countries other than the PRC

(132) The Commission established the volumes and prices of imports applying the same methodology as for the PRC (see recital (126)).

(133) The volume of imports from third countries developed over the period considered as follows:

Table 3

Imports from third countries

Source: Eurostat and expiry review request

CountryImport volume201720182019RIPCambodiaIndex (2017 = 100)1001006458Ranges (‘000 pcs)10000 – 1500010000 – 150005000 – 100004000 – 9000Market share (%)15 -1716 – 1810 -1212 – 14Average price (EUR/000pcs)154145146148

IndiaIndex (2017 = 100)1001217542Ranges (‘000 pcs)10000 – 1500013000 – 180008000 – 130004000 – 9000Market share (%)16 – 1819 – 2113 – 159 – 11Average price (EUR/000pcs)153136147143OthersIndex (2017 = 100)10018529Ranges (‘000 pcs)100 – 60050 – 55010 – 51050 – 550Market share (%)0,3 – 10,1 – 0,50,1 – 0,50,2 – 0,7Average price (EUR/000pcs)2104891301438TotalIndex (2017 = 100)1001096850Ranges (‘000 pcs)23000 – 2800025000 – 3000015000 – 2000010000 – 15000Market share (%)30 – 3535 – 4025 – 3023 – 28Average price (EUR/000pcs)154141148149

(134) During the whole period considered the main exporting countries of RBM to the Union were India and Cambodia. Imports from these countries held significant shares of the Union market over the whole period considered, ranging between 10 % and 16 %. It should however also be noted that the volumes and market share of imports from India and Cambodia strongly decreased over the period considered. Prices of such imports also decreased, and the Union industry has not provided any evidence that such imports are dumped on the Union market.

(135) The imports from the other third countries are negligible. Thailand, once the second largest exporter to the Union, almost disappeared from the market.

5.5.

Economic situation of the Union industry

5.5.1.

General remarks

(136) In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the Union industry included an evaluation of all economic indicators having a bearing on the state of the Union industry during the period considered.

(137) As mentioned in recital (16), no sampling was used for the determination of possible injury suffered by the Union industry. Consequently, for the injury determination, the Commission did not distinguish between macroeconomic and microeconomic injury indicators because all the Union producers cooperated in the review.

(138) In order to respect confidential business information, it has been necessary to present information concerning the two Union producers in ranges. Presenting the exact figures would allow either Union producer to calculate the exact production figures of the other producer, and there would be a risk that other market operators possessing market data would be able to do so likewise.

5.5.2.

Production, production capacity and capacity utilisation

(139) The total Union production, production capacity and capacity utilisation developed over the period considered as follows:

Table 4

Production, production capacity and capacity utilisation

Source: Questionnaire replies

201720182019RIPProduction ‘000 pcs (index 2017 = 100)100979278Production ‘000 pcs (ranges)50000 – 6000049000 – 5900048000 – 5800040000 – 50000Production capacity (index 2017 = 100)100100100100Production capacity (ranges)80000 – 9000080000 – 9000080000 – 9000080000 – 90000Capacity utilisation (index 2017 = 100)100979278Capacity utilisation rate (ranges) (%)60 – 7058 – 6855 – 6550 – 60

(140) The production of the Union industry declined by 22 % over the period considered. This trend followed the trend in the consumption although the drop in the production output of the Union industry was lighter than the drop in consumption. Over the period considered, the Union industry experienced the same decrease by 22 % in the capacity utilisation rate, as capacity itself remained stable. The capacity utilisation rate reached a record low level of 50 % to 60 % in absolute terms in the review investigation period.

5.5.3.

Sales volume and market share

(141) The Union industry’s sales volume and market share developed over the period considered as follows:

Table 5

Sales volume and market share

Source: Questionnaire replies

201720182019RIPTotal sales volume on the Union market – unrelated customers (index 2017 = 100)100899780Total sales volume on the Union market – unrelated customers (ranges)40000 – 5000035000 – 4500040000 – 5000035000 – 45000

Market share (index 2017 = 100)10093112115Market share (ranges) (%)63 – 6858 – 6370 – 7572 – 77

(142) Sales volumes of the Union industry to unrelated customers decreased by 21 % over the period considered. Although the main reason of this decrease was the simultaneous decrease in consumption, the drop in sales volumes was less pronounced than the drop in the consumption and in the imports from the third countries of the product under review. As a result, the market share of the Union industry increased by 15 % over the period considered and amounted to 70 % – 80 % in the review investigation period.

5.5.4.

Prices and factors affecting prices

(143) The weighted average unit sales prices of the Union producers to unrelated customers in the Union and the unit cost of production developed over the period considered as follows:

Table 6

Sales prices in the Union and Cost of production

Source: Questionnaire replies

201720182019RIPWeighted average unit sales price in the Union on the total market (index 2017 = 100)1001009293Weighted average unit sales price in the Union on the total market (EUR/’000pcs)170 – 200175 – 205150 – 180155 – 185Unit cost of production (index 2017 = 100)1001039998Unit cost of production (ranges)160 – 190165 – 195148 – 178150 – 180

(144) The decrease of the weighted average unit sales prices, by 7 %, was much more pronounced than the slight drop in cost of production.

(145) The Union industry’s average sales prices followed the trend of the weighted average Union sales prices of the main exporting countries of RBM to the Union, as reported in table 3. Despite the low capacity utilisation, the average cost of production slightly decreased over the period considered, mainly due to decrease in labour costs following the restructuring efforts by the Union producers.

5.5.5.

Employment and productivity

(146) Employment, productivity and average labour costs of the Union producers developed over the period considered as follows:

Table 7

Employment and productivity

Source: Questionnaire replies

201720182019RIPNumber of employees (index 2017 = 100)100888380Number of employees (FTE ranges)150 – 200130 – 180120 – 170115 – 165Labour Productivity (unit/employee – index 2017 = 100)10011011198Labour Productivity (unit/employee – ranges)320 – 370360 – 410365 – 415300 – 350Average labour costs per employee (index 2017 = 100)10010210796Average labour costs per employee (ranges)18000 – 2200019000 – 2300020000 – 2400017000 – 21000

(147) The employment in full time equivalent has decreased over the period considered by 22 %, which is a result of continuing restructuring of the Union industry in order to face the changing market circumstances. At the same time, due to these continuous restructuring efforts, the Union industry’s labour productivity remained stable over the period considered in spite of the pronounced drop of the production as shown in table 4.

(148) Average labour costs per employee steadily increased from 2017 to 2019 and then dropped strongly, by 4 % as compared to 2017, in the review investigation period, mainly due to temporary measures in view of the COVID-19 pandemic.

5.5.6.

Inventories

(149) Stock levels of the two Union producers developed over the period considered as follows:

Table 8

Inventories

Source: Questionnaire replies

201720182019RIPClosing stocks (index 2017 = 100)100118109112Closing stocks (ranges)25000 – 3500030000 – 4000025000 – 3500027000 – 37000

Closing stocks as a percentage of production (index 2017 = 100)100121118144Closing stocks as a percentage of production (ranges) (%)40 – 5050 – 6048 – 5860 – 70

(150) The Union industry’s year-end stock levels increased by 12 % in the period considered. However, taking into account the simultaneous decrease in production, stocks were at a relatively high level throughout the period considered, which was considered as normal by the Union producers in order to allow flexibility to react to demand and especially to seasonal fluctuations.

5.5.7.

Profitability, cash flow, investments, return on investments and ability to raise capital

(151) Profitability, cash flow, investments and return on investments of the Union producers developed over the period considered as follows:

Table 9

Profitability, cash flow, investments and return on investments

Source: Questionnaire replies

201720182019RIPProfitability of sales in the Union to unrelated customers (% of sales turnover indexed) (index 2017 = 100)10014111472Profitability of sales in the Union to unrelated customers (% of sales turnover – ranges)3 – 85 -104 – 92 – 7Cash flow (index 2017 = 100)100639972Investments (index 2017 = 100)100624540Return on investments (index 2017 = 100)1001008753Return on investments (ranges) (%)8 – 138 – 137 – 125 – 10

(152) The Commission established the profitability of the 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. From 2017 to 2019, the Union industry’s profit fluctuated around the minimum level of profitability to be expected under normal conditions of competition according to Article 7(2c) of the basic Regulation (6 %). In the review investigation period it dropped however far below that level. The decrease in profitability is mainly due the decrease in sales price.

(153) The net cash flow is the ability of the Union producers to self-finance their activities. The Union industry managed to maintain positive cash flow over the period considered although it decreased in the review investigation period by 28 % as compared to 2017.

(154) The investigation showed that the Union industry was not able to maintain its level of investment over the period considered. Investments decreased by 60 % in the review investigation period as compared to 2017. Moreover, the current investments concern maintenance and not machineries to increase production.

(155) The return on investments is the profit in percentage of the net book value of investments. The Union industry also managed to maintain positive return on investments over the period considered although it decreased in the review investigation period by 47 % as compared to 2017.

(156) The Union producers’ ability to raise capital was not reported as a difficulty during the period considered.

5.5.8.

Magnitude of the dumping margin and recovery from past dumping

(157) As explained in recital (101), imports from the PRC in the review investigation period do not provide a sufficient basis for a finding on continuation of dumping. Anti-dumping measures against RBM are in place since 1997 and the Union industry has since then continuously been confronted with related unfair trade practices, resulting in additional investigations and several extensions of the measures (see recitals (1) to (7)). The indicators presented above demonstrate that the continuous dumping, circumvention and absorption practices from the past have weakened the Union industry which therefore remains vulnerable to the injurious effects of any dumped imports on the Union market.

5.5.9.

Export performance of the Union industry

(158) The volume of exports of the Union producers developed over the period considered as follows:

Table 10

Export performance of the Union producers

Source: Questionnaire replies

201720182019RIPExport volume ‘000 pcs (index 2017 = 100)1001178977Export volume ‘000 pcs (ranges)6000 – 100007000 – 110005000 – 90004000 – 8000Average price (index 2017 = 100)100798985Average price EUR/’000 pcs (ranges)200 – 250150 – 200180 – 240170 – 230

(159) Export volumes of the Union industry to the unrelated customers decreased by 23 % over the period considered. The Union industry’s exports represented 10 % – 15 % of the total Union industry sales over the period considered.

(160) Average unit export price to the unrelated customers decreased twice more than the decrease of the average unit sales price in the Union on the total market over the period considered.

5.5.10.

Conclusion on the situation of the Union industry

(161) The volume of imports of RBM originating in PRC remained very low during the period considered.

(162) The review showed that the continuation of the measures as from 1997 and the low volume of low-priced dumped imported products from the PRC allowed the Union industry to maintain a positive profitability throughout the period considered. Nevertheless, the profitability achieved was low and well below 6 % in the review investigation period.

(163) The injury indicators show that the economic situation of the Union industry is difficult, in a context of worldwide competition and declining consumption. The Union industry has responded to these challenges by restructuring its employment.

(164) The indicators examined demonstrate that the anti-dumping measures have achieved their intended result of removing the injury suffered by the Union producers.

(165) On the basis of the above, the Commission concluded at this stage that the Union industry did not suffer material injury within the meaning of Article 3(5) of the basic Regulation.

1. LIKELIHOOD OF RECURRENCE OF INJURY IF THE MEASURES WERE TO BE REPEALED

(166) As the Commission concluded that the Union industry did not suffer material injury during the review investigation period, the Commission assessed, in accordance with Article 11(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury from the dumped imports from the PRC if the measures were allowed to lapse. On the basis of the above-described trends, it appears that the anti-dumping measures have achieved their intended result of removing the injury suffered by the Union producers.

(167) In that regard, the Commission examined the production capacity and spare capacity in the country concerned, the attractiveness of the Union market, and the likely impact of imports from the country concerned on the situation of the Union industry should the measures be allowed to lapse.

6.1.

Spare production/processing capacity

(168) As mentioned in recital (113), Chinese exporters have significant spare capacity to increase their exports rapidly. Their spare capacity is estimated around 375 million pieces, which is more than seven times the consumption within the Union.

6.2.

Attractiveness of the Union market

(169) Chinese exporting producers have engaged in a number of different unfair trade practices to circumvent the measures against imports of Chinese RBM, as explained in recitals (3), (5) and (6) above. Moreover, the investigation showed that prices on the Union market are higher as compared to prices on third country markets, as described in recital (114).

(170) All the above points to the fact the Union market is considered an attractive market by the Chinese exporting producers and it is likely that significant quantities currently exported to other countries as well as production from some of the existing spare capacity would be directed to the Union market in the event of the anti-dumping measures being allowed to lapse.

6.3.

Impact of a new influx of dumped imports from the PRC on the situation Union industry should the measures be allowed to lapse

(171) If measures were allowed to lapse, an increase in imports from the country concerned is expected, due to the existing spare capacities and the attractiveness of the Union market as set out in recitals (168) to (170). These imports are likely to be undercutting the prices of the Union industry or at least put a heavy downward pressure on the non-injurious price level of the Union industry, as set out in recitals (129) to (131).

(172) With the likely arrival of large quantities of Chinese imports at dumped prices, the Union industry would be forced to reduce its production or further lower its prices as compared to its costs. The Union industry already finds itself in a fragile situation with modest profitability levels, as explained in recitals (162) and (163). Therefore, it is not in a position to either further lower its prices or to sacrifice sales volumes without putting its viability at risk.

6.4.

Conclusion on likelihood of recurrence of material injury

(173) In view of the above, the Commission concluded that the expiry of the measures would in all likelihood result in recurrence of material injury to the Union industry. Indeed, in the absence of measures, the likely significant increase of dumped imports from the PRC at prices undercutting the Union industry prices, would further aggravate the already fragile economic situation of the Union industry and, consequently, put its viability at risk.

1. UNION INTEREST

7.1.

Introduction

(174) In accordance with Article 21 of the basic Regulation, the Commission examined whether the maintenance of the measures would be against the Union interest as a whole. The determination of the Union interest was based on an appreciation of the various interests involved, namely those of the Union industry, of importers and users.

(175) All interested parties were given the opportunity to make their views known pursuant to Article 21(2) of the basic Regulation.

(176) On this basis, the Commission examined whether, despite the conclusions on the likelihood of recurrence of dumping and the likelihood of recurrence of injury, compelling reasons existed which would lead to the conclusion that it was not in the Union interest to maintain the existing measures.

7.2.

Interest of the Union industry

(177) As concluded in recital (165), the Union industry is not anymore injured but in a fragile state. In such situation, the Union industry cannot cope with a removal of the measures, which is likely to result in a strong increase of dumped imports. A repeal of the measures would therefore put the industry’s viability at stake. The continuation of the measures, therefore, is in the interest of Union industry.

7.3.

Interest of unrelated importers and users

(178) All known unrelated importers and users were informed about the initiation of the review. However, the Commission received no cooperation from unrelated importers and users. One unrelated importer came forward and was registered as an interested party, but that party did not make any submissions for the file.

(179) Therefore, there were no indications that the maintenance of the measures would have a negative impact on the users and/or importers outweighing the positive impact of the measures.

7.4.

Conclusion on Union interest

(180) On the basis of the above, the Commission concluded that there were no compelling reasons showing that it was not in the Union interest to maintain measures on imports of certain ring binder mechanisms originating in the People’s Republic of China.

1. ANTI-DUMPING MEASURES

(181) On the basis of the conclusions reached by the Commission on continuation or recurrence of dumping, recurrence of injury and Union interest, the anti-dumping measures on certain ring binder mechanisms originating in the People’s Republic of China should be maintained.

(182) To minimize the risks of circumvention due to the 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(4) of this regulation. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to all other companies.

(183) 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(4) 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.

(184) 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.

(185) The individual company anti-dumping duty rates specified in Article 1(3) of this Regulation are exclusively applicable to imports of the product under review originating in the PRC 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 anti-dumping duty rates.

(186) 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

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

. The request must contain all the relevant information demonstrating 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.

(187) 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. All parties were also granted a period to make representations subsequent to this disclosure and to request a hearing with the Commission and/or the Hearing Officer in trade proceedings. The submissions and comments were duly taken into consideration.

(188) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council

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).

, 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.

(189) The Committee established by Article 15(1) of Regulation (EU) 2016/1036 delivered a positive opinion,

HAS ADOPTED THIS REGULATION:

Article 1

1. A definitive anti-dumping duty is imposed on imports of certain ring binder mechanisms, currently falling under CN code ex83051000 (TARIC codes 8305100019, 8305100029, 8305100039, and 8305100042) and originating in the People’s Republic of China.

1. For the purpose of this Article, ring binder mechanisms shall consist of two steel sheets or wires with at least four half-rings made of steel wire fixed on them and which are kept together by a steel cover. They can be opened either by pulling the half rings or with a small steel trigger mechanism fixed to the ring binder mechanism.

1. The rate of the definitive anti-dumping duty applicable to the net, free-at-Union-frontier price, before duty, shall be as follows:

(a) for mechanisms with 17 and 23 rings (TARIC codes 8305100029 and 8305100042), the amount of duty shall be equal to the difference between the minimum import price of EUR 325 per 1000 pieces and the net, free-at-Union-frontier price, before duty;

(b) for mechanisms other than those with 17 or 23 rings (TARIC codes 8305100019 and 8305100039):

Rate of duty (%)TARIC additional codePeople’s Republic of China:

World Wide Stationery Mfg, Hong Kong, People’s Republic of China

51,28934

all other companies

78,88900

1. The application of the individual duty rate specified for the company mentioned in paragraph 3 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 ring binder mechanisms sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in the People’s Republic of China. 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.

1. The definitive anti-dumping duty applicable to imports originating in in the People’s Republic of China as set out in paragraph 3, is extended to imports of the same certain ring binder mechanisms consigned from Vietnam, whether declared as originating in Vietnam or not (TARIC codes 8305100011, 8305100021, 8305100037 and 8305100040) and to imports of the same certain ring binder mechanisms consigned from Lao People’s Democratic Republic, whether declared as originating in Lao People’s Democratic Republic or not (TARIC codes 8305100013, 8305100023, 8305100038 and 8305100041).

1. In cases where goods have been damaged before entry into free circulation and, therefore, the price actually paid or payable is apportioned for the determination of the customs value pursuant to Article 131(2) of Commission Implementing Regulation (EU) 2015/2447

Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).

, the minimum import price set out in paragraph 3 shall be reduced by a percentage which corresponds to the apportioning of the price actually paid or payable. The duty payable will then be equal to the difference between the reduced minimum import price and the reduced net, free-at-Union-frontier price, before customs clearance.

Article 2

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

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, 27 June 2022.

For the Commission

The President

Ursula von der Leyen