Commission Implementing Regulation (EU) 2023/752 of 12 April 2023 imposing a definitive anti-dumping duty on imports of sodium gluconate originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council

(66) Moreover, no evidence was submitted in the present investigation demonstrating that the sodium gluconate sector is not affected by the government intervention in the financial system in the sense of Article 2(6a)(b), sixth indent of the basic Regulation, as also referred to above in recital (41). Therefore, the substantial government intervention in the financial system leads to the market conditions being severely affected at all levels.

(67) Finally, the Commission recalls that, in order to produce the product under review, a number of inputs is needed. When the producers of the product under review purchase or contract for these inputs, the prices paid (and which are recorded as their costs) are exposed to the same systemic distortions mentioned before. For instance, suppliers of inputs employ labour that is subject to the distortions; they may borrow money that is subject to the distortions on the financial sector/capital allocation; and they are subject to the planning system that applies across all levels of government and sectors.

(68) As a consequence, not only the domestic sales prices of the product under review are not appropriate for use within the meaning of Article 2(6a)(a) of the basic Regulation, but all the input costs (including raw materials, energy, land, financing, labour, etc.) are also affected because their price formation is affected by substantial government intervention, as described in Parts A and B of the Report. Indeed, the government interventions described in relation to the allocation of capital, land, labour, energy and raw materials are present throughout the PRC. This means, for instance, that an input that in itself was produced in the PRC by combining a range of factors of production is exposed to significant distortions. The same applies for the input to the input and so forth.

(69) No evidence or argument to the contrary has been adduced by the GOC or the exporting producers in the present investigation.

(70) In sum, the evidence available showed that prices or costs of the product under review, including the costs of raw materials, energy and labour, are not the result of free market forces because they are affected by substantial government intervention within the meaning of Article 2(6a)(b) of the basic Regulation as shown by the actual or potential impact of one or more of the relevant elements listed therein. On that basis, and in the absence of any cooperation from the GOC, the Commission concluded that it is not appropriate to use domestic prices and costs to establish normal value in this case. Consequently, the Commission proceeded to construct the normal value exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, that is, in this case, on the basis of corresponding costs of production and sale in an appropriate representative country, in accordance with Article 2(6a)(a) of the basic Regulation, as discussed in the following section.

3.3.2.

Representative country

3.3.2.1.

General remarks

(71) The choice of the representative country was based on the following criteria pursuant to Article 2(6a) of the basic Regulation:

A level of economic development similar to the PRC. For this purpose, the Commission used countries with a gross national income per capita similar to the PRC on the basis of the database of the World Bank

World Bank Open Data – Upper Middle Income, https://data.worldbank.org/income-level/upper-middle-income.

;

Production of the product under review in that country

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

;

Availability of relevant public data in the representative country;

Where there is more than one possible representative country, preference should be given, where appropriate, to the country with an adequate level of social and environmental protection.

(72) As explained in recital (31), the Commission issued a Note on relevant sources to use for the determination of the normal value. This Note described the facts and evidence underlying the relevant criteria. The Note informed interested parties of the Commission’s intention to consider Colombia as an appropriate representative country in the present case if the existence of significant distortions pursuant to Article 2(6a) of the basic Regulation were confirmed.

(73) In line with the criteria listed under Article 2(6a) of the basic Regulation, the Commission identified Colombia as a country with a similar level of economic development as the PRC as it was suggested by the applicant in the request for review. Colombia is classified by the World Bank as upper-middle income country on a gross national income basis. Given that neither the United States nor the EU have a similar level of development as the PRC, the Commission focused on a product in the same category and/or sector of the product under review and established that there was production of naturally occurring fruit acids belonging to the same general category as the product under review in Colombia and relevant data was readily available.

(74) Finally, given the absence of cooperation and having established that Colombia was an appropriate representative country, based on all of the above elements, there was no need to carry out an assessment of the level of social and environmental protection in accordance with the last sentence of Article 2(6a)(a) first indent of the basic Regulation.

3.3.2.2.

Conclusion

(75) In the absence of cooperation, as proposed in the expiry review request and given that Colombia met the criteria laid down in Article 2(6a)(a), first indent of the basic Regulation, the Commission selected Colombia as the appropriate representative country.

3.3.3.

Sources used to establish undistorted costs

(76) In the Note the Commission listed the factors of production such as materials, energy and labour used in the production of the product under review by the exporting producers. The Commission also stated that, in order to construct the normal value in accordance with Article 2(6a)(a) of the basic Regulation, it would use Global Trade Atlas (GTA) to establish the undistorted cost of most of the factors of production, notably the raw materials. In addition, the Commission stated that it would use information from: the International Labour Organization (ILO) for establishing undistorted costs of labour and public tariffs from electricity suppliers in Colombia.

(77) Finally, the Commission stated that to establish SG&A costs and profit, it would use the financial data from one Colombian producer of products from the same general category as the product under review as set out in recital (31).

3.3.3.1.

Undistorted costs and benchmarks

3.3.3.1.1.

Factors of production

(78) Considering all the information based on the request and subsequent information collected during the proceeding, the following factors of production and their sources have been identified in order to determine the normal value in accordance with Article 2(6a)(a) of the basic Regulation:

Table 1

Factors of production of sodium gluconate

Factor of ProductionCommodity Code in ColombiaUndistorted value (RMB)Unit of measurementRaw materialsGlucose syrup

17023010

17023020

17023090

5,72kgCaustic soda281512001,46kgLabourLabour cost per man-hourNA13,41hourEnergyElectricityNA0,77Kwh

Raw materials

(79) In order to establish the undistorted price of raw materials as delivered at the gate of a representative country producer, the Commission used as a basis the weighted average import price to the representative country as reported in the GTA to which import duties were added. An import price in the representative country was determined as a weighted average of unit prices of imports from all third countries excluding the PRC and countries which are not members of the WTO, listed in Annex I of Regulation (EU) 2015/755 of the European Parliament and the Council

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

. The Commission decided to exclude imports from the PRC into the representative country as it concluded in section 3.3.1 that it is not appropriate to use domestic prices and costs in the PRC due to the existence of significant distortions in accordance with Article 2(6a)(b) of the basic Regulation. Given that there is no evidence showing that the same distortions do not equally affect products intended for export, the Commission considered that the same distortions affected export prices. After excluding imports from the PRC into the representative country, the volume of imports from other third countries remained representative.

(80) Normally, domestic transport prices should also be added to these import prices. However, considering the nature of this expiry review investigation, which is focused on finding whether dumping continued during the review investigation period or could reoccur, rather than finding its exact magnitude, the Commission decided that adjustments for domestic transport were unnecessary. Such adjustments would only result in increasing the normal value and hence the dumping margin.

Labour

(81) The Commission used ILO statistics to determine the wages in Colombia

https://www.ilo.org/ilostat

. These provide information on monthly wages of employees in the manufacturing sector and average weekly hours worked in Colombia for the investigation period (year 2021).

Electricity

(82) For electricity, the Commission used the readily available price form Enel

www.enel.com.co

, the major electricity supplier in Colombia. This source provides a single average price of electricity per month.

3.3.3.1.2.

Manufacturing overhead costs, SG&A, profits and depreciation

(83) 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.

(84) In order to establish an undistorted value of the manufacturing overheads and given the absence of cooperation from the Chinese producers, the Commission used facts available in accordance with Article 18 of the basic Regulation. Therefore, based on the data provided by the applicant the Commission established the ratio of manufacturing overheads to the total manufacturing and labour costs. This percentage was then applied to the undistorted value of the cost of manufacturing to obtain the undistorted value of manufacturing overheads.

(85) For establishing an undistorted and reasonable amount for SG&A and profit, the Commission relied on the most recent available financial data the company in Colombia that had been identified in the Note as active and profitable producer of products in the similar category as sodium gluconate as well as the additional four Columbian producers of products in the similar category as sodium gluconate suggested by the applicant in its comments to the Note. Financial data for the following companies as extracted from Orbis Bureau van Dijk was used for the financial year 2021: Sucroal SA, DSM Nutritional Products Colombia SA, Fonandes SAS, Nutresol SAS and Quimica International Quintal SA.

3.3.3.2.

Calculation of the normal value

(86) On the basis of the above, the Commission constructed the normal value on an ex-works basis in accordance with Article 2(6a)(a) of the basic Regulation.

(87) 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 the applicant in the review request on the usage of each factor (materials and labour) for the production of product under review.

(88) Once the undistorted manufacturing cost established, the Commission added the manufacturing overheads, SG&A and profit as noted in recitals (84) and (85). Manufacturing overheads were determined based on data provided by the applicant. SG&A and profit were determined based on the average financial data of five representative Colombian producers of products in the similar category as sodium gluconate for the year 2021 as reported in the company’s financial statements. The Commission added the following items to the undistorted costs of manufacturing:

Manufacturing overheads, which accounted in total for 13 % of the direct costs of manufacturing,

SG&A and other costs, which accounted for 19,44 % of the Costs of Goods Sold (COGS) of five Colombian producers of products in the similar category as sodium gluconate, and

Profits, which amounted to 8,68 % of the COGS as achieved by five Colombian producers of products in the similar category as sodium gluconate, were applied to the total undistorted costs of manufacturing.

(89) On that basis, the Commission constructed an average normal value per unit on an ex-works basis in accordance with Article 2(6a)(a) of the basic Regulation.

3.4.

Export price

(90) In the absence of cooperation by exporting producers from the PRC, the export price was determined based on CIF extracted from Eurostat data corrected to ex-works level. Thus, the CIF price was reduced by the sea freight, insurance cost and domestic transport cost. Domestic Chinese and international transport costs were based on information provided by the applicant in the request for review.

3.5.

Comparison

(91) The Commission compared, the normal value established in accordance with Article 2(6a)(a) of the basic Regulation and the export price on an ex-works basis as established above.

3.6.

Dumping margin

(92) On this basis, the dumping margin was found to be significant (over 100 %). It was therefore concluded that dumping continued during the review investigation period.

1. LIKELIHOOD OF CONTINUATION OF DUMPING

(93) Further to the finding of the existence of dumping during the review investigation period, the Commission investigated, in accordance with Article 11(2) of the basic Regulation, the likelihood of continuation of dumping, should the measures be allowed to lapse. The following additional elements were analysed: the production capacity and spare capacity in the PRC, the attractiveness of the Union market and export prices to third countries as well as trade defence measures in other export markets.

(94) As a consequence of the non-cooperation of Chinese exporting producers and of the GOC, the Commission based its assessment on the facts available in accordance with Article 18 of the basic Regulation, namely on information provided in the request for review, readily available information, and information from the GTA database.

4.1.

Production capacity and spare capacity in the PRC

(95) The applicant provided estimates of sodium gluconate production capacity and output in the PRC. These estimates were based on a report

Sodium Gluconate and Glucono Delta-Lactone’s Major Producers Capacity and Output in China in 2021, published April 2022.

and two newsletters

Corn Products China News July 2022; Corn Products China News September 2022.

by KComber/CCM, a Chinese market intelligence provider across the industries of agriculture, chemical and life sciences.

(96) For the review investigation period, the report estimated the total production capacity in the PRC at 1306800 tonnes. For the same year, the report estimated the total output in the PRC at 701400 tonnes. These estimates imply a capacity utilisation rate of 54 %, and a spare capacity of 605400 tonnes in that year, which amounts to more than 25 times the Union consumption in the free market. Furthermore, the newsletters provided evidence of plans by three sodium gluconate producers for further capacity expansions of a total of 290000 tonnes/year, from 2022 onwards

BBCA Biochemical: 60000 tonnes, Shandong Fuyang Biotechnology (through Dezhou Heyang Biotechnology): 200000 tonnes, and Tongliao Zhongyuan Biological Development: 30000 tonnes.

.

(97) The Commission noted that, in view of the main applications of sodium gluconate, the evolution of its consumption is closely associated with the growth of the construction industry. According to the development plan of the Chinese government for the construction industry over the 14th FYP period (2021-2025)

See: http://english.scio.gov.cn/pressroom/2022-01/26/content_78011624.htm

, that industry will maintain a constant share (6 %) of the country’s GDP into 2025. Moreover, based on data on production and exports from 2013 to 2021

KComber/CCM and and ThinkReal.

, the Commission has calculated the domestic consumption of sodium gluconate in the PRC over that period and found that it increased from 527000 to 701400 tonnes, representing an annual growth rate of less than 3 %. It follows that, even under highly optimistic scenarios of economic development, the domestic consumption of sodium gluconate will be unable to absorb a large part of the spare capacity which has been built in the country, and which is likely to increase further. Therefore, Chinese producers of sodium gluconate will have strong incentives to use this spare capacity for exports, including notably to the Union market.

(98) Based on the above, the Commission concluded that the Chinese exporting producers have significant spare capacities, which could be used for exports to the Union if the measures were allowed to lapse.

4.2.

Attractiveness of the Union market and export prices to third countries

(99) In view of the size of its construction industry, as well as of other industries that make use of sodium gluconate, the Union market for sodium gluconate is of global importance. In that respect, it is noteworthy that, even with the measures in place, Chinese exports to the Union not only continued, but also increased significantly during the period considered (see table 3), showing that the Union market remains attractive to Chinese exporting producers.

(100) Moreover, the Commission examined whether it is likely that Chinese exporting producers would increase even more their export sales to the Union at dumped prices should measures be allowed to lapse. Therefore, the Commission examined the price level of Chinese exports to third country markets and compared them to the price level of Chinese exports to the Union.

(101) As a starting point, the Commission used data from the GTA database, a market-leading dataset on global trade flows at the level of harmonized system code (HS code). According to GTA, during the review investigation period (2021), as well as during the part of 2022 for which data were available, the average price of Chinese exports to the Union of products falling under HS Code 291816 was significantly higher than the average price of exports to third countries. However, due to the fact that this HS Code includes also products other than sodium gluconate, the Commission complemented its analysis based on other sources.

(102) In particular, the applicant provided detailed data sourced from ThinkReal, a specialised market research company, on exports of sodium gluconate from China

Exhibit 23 of the verification report: Chinese export statistics (all destinations)/Chinese export statistics (EU 27 destinations).

. According to this data, the average price (in FOB terms) of exports of sodium gluconate from China to the Union was between 1 % and 5 % higher compared to the average price of exports to third countries, both during the review investigation period (2021), as well as during the part of 2022 for which data were available. In the absence of measures, Chinese producers would be able to export to the Union at prices that are even higher (in FOB terms) compared to the prices to third countries which, however, would still be dumped given the magnitude of the dumping margins found during this review, while increasing their market share in the Union.

(103) It follows that the Union market is attractive for the Chinese exporting producers, which would have an economic incentive to shift exports from third countries to the more lucrative Union market at dumped prices, should the measures be allowed to lapse.

4.3.

Trade defence measures in other export markets

(104) The Commission noted that in 2018 the Unites States also imposed trade defence measures, including anti-dumping duties and countervailing duties, against imports of sodium gluconate from the PRC

https://www.federalregister.gov/documents/2018/11/13/2018-24705/sodium-gluconate-gluconic-acid-and-derivative-products-from-the-peoples-republic-of-china

.

(105) Given the high level of these measures, it has been difficult for sodium gluconate from the PRC to enter the United States in meaningful quantities. Consequently, a substantial part of the available spare capacity could not be absorbed by the US market. Moreover, there is no information available to the Commission, suggesting that that these measures would be repealed in the foreseeable future.

(106) As a result of the trade defence measures in the United States, Chinese producers of sodium gluconate face reduced possibilities for exports. The Union market is therefore of high relative importance, and would attract a significant part of Chinese sodium gluconate production should the Union measures be allowed to lapse.

4.4.

Conclusion

(107) Considering the significant spare capacity in the PRC and taking into account the trade defence measures imposed by the United States, as well as the evidence on the attractiveness of the Union market, the Commission concluded that should the measures lapse, it is likely that the Chinese exporting producers will activate the spare capacity and even redirect exports from third countries towards the Union market at dumped prices and in significant volumes.

(108) In view of its findings on the continuation of dumping during the review investigation period and on the likely development of exports should the measures lapse, the Commission concluded that there is a strong likelihood that the expiry of the anti-dumping measures on imports from the PRC would result in the continuation of dumping.

1. INJURY

5.1.

Definition of the Union industry and Union production

(109) The like product was manufactured by two producers in the Union during the period considered: Jungbunzlauer S.A. and Roquette Italia S.p.A. These two companies account for 100 % of the Union production and therefore constitute the Union industry within the meaning of Article 4(1) of the basic Regulation.

(110) As the data relating to the injury assessment was derived from only two Union producers, the figures for the injury analysis are given in ranges for reasons of confidentiality. However, the indexes are based on actual data and not on the ranges.

(111) The total Union production during the review investigation period was established in the range of [50000 to 61000] tonnes. The Commission established the figure on the basis of all the available information concerning the Union industry, such as the request for the expiry review and the questionnaire reply of the Union industry.

(112) A verification visit was carried out at the premises of the cooperating producer of the product under review, Jungbunzlauer SA.

5.2.

Union consumption

(113) The Commission established the Union consumption on the basis of the total sales volume of the Union industry on the Union market obtained from the reply to the questionnaire for Union producers and on the basis of the total import volume as available in Eurostat.

(114) The Union consumption developed as follows:

Table 2

Union consumption

Source: Data from the Union industry and Eurostat.

201820192020Review investigation period (2021)Total Union consumption (tonnes)[36991-44778][36113-43716][38126-46153][40222-48690]Index10098103109Captive market[18294-22145][17792-21538][20758-25128][20822-25206]Index10097113114Free market[18696-22633][18321-22178][17368-21025][19400-23484]Index1009893104

(115) The investigation showed that total consumption of sodium gluconate includes a large share of captive use by the Union industry, namely the quantities used for further processing by the Union industry. This means that the product under review is also important for the downstream products of the Union Industry.

(116) The Union consumption on the free market increased by 4 % during the period considered. However, it decreased by 7 % between 2018 and 2020, of which 2 percentage points decrease in 2019 and a further 5 percentage points decrease in 2020, the year of the pandemic. It rebounded from 2020 to the review investigation period by 11 percentage points, as user industries started recovering from the economic downturn caused by the pandemic.

5.3.

Imports from the country concerned

5.3.1.

Volume and market share of the imports from the country concerned

(117) In the absence of cooperation from Chinese exporting producers, the Commission established the volume of imports on the basis of Eurostat import statistics.

(118) Imports into the Union from China developed as follows:

Table 3

Import volume and market share

Source: Eurostat.

201820192020Review investigation period (2021)Volume of imports from China (tonnes)[873-1057][1296-1569][1526-1847][1516-1835]Index100149175174Market share (%)[3-7][5-9][7-12][6-10]Index100152188167

(119) Over the period considered, the Chinese import volume increased overall by 74 %. It increased first by 75 % between 2018 and 2020 and then slightly decreased by 1 % in the review investigation period. This development shows that the Chinese imports followed the opposite trend of Union consumption. The Chinese market share grew by 88 % from 2018 to 2020 and showed a decline of 11 % from 2020 to the review investigation period. Chinese exporters managed to increase their market share considerably from 2018 to 2020 in a shrinking market, but did not increase market share in the review investigation period when Union consumption rebounded. Overall, the share of the market held by Chinese exporters sharply increased over the period considered to the detriment of the Union industry.

5.4.

Prices of the imports from the country concerned and price undercutting

(120) The Commission established the trend of the prices of Chinese imports on the basis of Eurostat import statistics.

(121) The average price of imports into the Union from China developed as follows:

Table 4

Import Price (EUR/tonne)

Source: Eurostat.

201820192020Review investigation period (2021)Average import price from China[578-700][590-714][580-702][817-990]Index100102100141

(122) Chinese average import prices were rather stable until 2020 and then significantly increased by 41 % during the review investigation period, above the Union industry average price level, as reflected in Table 9 below.

(123) In the absence of cooperation from Chinese exporting producers, the Commission relied on information available to it that could explain this development. It is recalled, that the year 2020, the third year of the period considered in the current investigation, coincided with the start of the Covid-19 sanitary crisis, which caused worldwide disruption in the purchase and supply chains. Based on submissions by the Union industry and on publicly available information, the severe sanitary restrictions in place since 2020 led to higher costs in China, in particular for raw materials, energy and transport in 2021. The price of corn in China increased by 50 to 70 % between 2018 and 2021

See submission of Jungbunzlauer Exhibit 23.

, and the hike in transport costs can explain the increase of the sodium gluconate export price between 2020 and 2021

See submission of Jungbunzlauer Exhibit 23.

.

(124) Given the absence of cooperation, the Commission did not have information concerning the product mix exported from China to the Union, or concerning the type of customers that imported the product concerned. This is of particular importance because the investigation showed that significant price differences exist amongst product types, depending on the application. The available verified data showed that prices of sodium gluconate intended for the food and pharmaceutical sectors could be up to 37 % higher than types destined for other applications, such as construction.

(125) The information collected during the investigation also revealed that whilst the Chinese exporters were selling on spot basis, the Union industry was mainly selling sodium gluconate based on yearly contracts. This means that most sales were made at fixed prices that could not be increased. According to the Union industry, sales agreements with Chinese exporters are often made on spot or short term basis. Their prices are thus reflecting immediately unexpected market circumstances, such as increases in raw material and transport costs.

(126) Based on the limited and unverified information available concerning Chinese imports, the Commission examined the possible price undercutting during the review investigation period by comparing:

(a) the weighted average sales price of the verified Union producer charged to unrelated customers on the Union market, adjusted to an ex-works level; and

(b) the weighted average price of imports from China at cost, insurance, freight (CIF) level as per Eurostat import statistics, with appropriate adjustments for anti-dumping and customs duties.

(127) This comparison showed no undercutting by Chinese imports on the Union market during the review investigation period, even when anti-dumping duties are not taken into account.

(128) This comparison is based on an unknown product mix of Chinese products during the review investigation period, namely on price data, which details were not available and could thus not be verified.

(129) The Commission then examined in more detail the product types produced and sold by the Union industry and found that about 30 % of its sales were made at prices between 8 to 14 % above the average Chinese price. In view of the absence of cooperation from Chinese exporters, the Commission does not have verified information concerning the product types sold by the Chinese exporters and therefore cannot conclude that the comparison made in recital (126) is meaningful.

(130) The Union industry provided information showing that the transport cost from China to the Union has significantly increased in the review investigation period, reaching EUR 210 to EUR 250 per tonne. This temporary cost increase would be, by far, the main factor explaining the relatively high export price of Chinese sodium gluconate during the review investigation period. Taking into account the above average transport cost, the ex-works price of Chinese sodium gluconate exported to the Union would be at around EUR 600 per tonne, namely between 20 to 30 % lower than the ex-work price of the Union industry.

(131) The Commission also collected publicly available information

Sodium Gluconate and Glucono Delta-Lactone's Major Producers Capacity and Output in China in 2021 (marketresearch.com) https://www.marketresearch.com/CCM-International-Limited-v3539/Sodium-Gluconate-Glucono-Delta-Lactone-32039947/#:~:text = In%202017 %E2 %80 %932021 %2C%20the%20output%20of%20sodium%20gluconate%20in,which%20was%205,44 %25 %20lower%20than%20that%20of%202020.

suggesting that the output of the main Chinese producers decreased by 5,4 %. In parallel, the price of corn starch, the main raw material used to produce sodium gluconate, was increasing in 2021. According to the same public source, the ex-work price of Chinese sodium gluconate increased in 2021 was, on average, at EUR 560/tonne. This price is between 25 to 35 % below the ex-works price of the Union Industry and confirms that the Chinese price level observed during the review investigation period is mainly due to the temporary increase in transport costs.

(132) Based on another public source

China to Europe container freight rate index | Statista

Shipping costs quadruple to record highs on China-Europe bottleneck | Financial Times (ft.com)

, it was estimated that the average transport cost from China to the EU in 2021 was around EUR 130 – 170/tonne, namely 3 times the cost of 2020. Adding the average transport costs to the average ex-works price for all Chinese sodium gluconate would lead to a constructed average export price at around EUR 700/tonne. This price concerns all types of sodium gluconate produced in China.

(133) A price comparison on that basis would lead to an average price undercutting of 9 % of Union industry turnover, when anti-dumping duties are not taken into account.

5.5.

Imports from third countries other than China

(134) As mentioned in recital (31) sodium gluconate is produced in China, in the United States and in the Union. The imports of sodium gluconate from third countries other than China were negligible (well below 1 % of Union consumption) during the review investigation period. It is therefore considered that these imports did not have any material impact on the Union market during the period considered. For this reason, the Commission did not consider these imports further in its injury analysis.

Table 5

Imports from third countries

Source: Eurostat.

201820192020Review investigation period (2021)Rest of the worldVolume (tonnes)[3-4][1-2][6-7][5-6]Index10054186146

5.6.

Economic situation of the Union industry

5.6.1.

General remarks

(135) The assessment of the economic situation of the Union industry included an evaluation of all economic indicators having a bearing on the state of the Union industry during the period considered.

(136) The Union industry is composed of two producers. The bigger producer (the applicant) fully cooperated by filling in the Union producer questionnaire and providing all data necessary for the injury analysis. Both producers provided the information, which allowed establishing the macroeconomic injury indicators. The smaller producer did not provide a response to the Union producer questionnaire.

(137) For the injury determination, the Commission distinguished between macroeconomic and microeconomic injury indicators. The macroeconomic indicators were established on the basis of data contained in the request for review, the verified questionnaire reply of the cooperating Union producer, and data provided by the smaller Union producer. This covered the macroeconomic data relating to the two Union producers. The Commission evaluated the microeconomic indicators on the basis of data contained in the verified questionnaire reply of the cooperating Union producer. The sets of data were found to be representative of the economic situation of the Union industry.

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

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

5.6.2.

Macroeconomic indicators

5.6.2.1.

Production, production capacity and capacity utilisation

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

Table 6 A

Union production, production capacity and capacity utilisation

Source: Data provided by the Union industry.

201820192020Review investigation period (2021)Production volume (tonnes)[47169-57099][46207-55935][47376-57350][50049-60586]Index10098100106Production capacity (tonnes)[55765-67505][55765-67505][55765-67505][55765-67505]Index100100100100Capacity utilisation (%)[80-97][79-95][81-98][85-100]Index10098100106

(141) Production of sodium gluconate increased by 6 % during the period considered, in particular during the review investigation period. The investigation showed that the main reasons for this increase were the increase in export sales (+ 18 %) and a higher captive use (+ 14 %) for downstream products in that period.

(142) This positive trend in production allowed the Union industry to make economies of scale with a higher utilisation of production capacity and to decrease certain costs, in particular during the review investigation period.

(143) As already stated above, the table below shows that the share of production intended for captive use is important and represents around 35 to 45 % of total production. That share increased by 14 % and remained important for the Union Industry during the period considered. Both producers composing the Union industry use sodium gluconate for downstream products. This means that the production of sodium gluconate is very important for the whole activity and the survival of the Union industry in the medium and long term.

(144) The production capacity of the Union industry remained unchanged during the entire period considered. The table below shows that the increase in capacity utilisation was mainly due to an increased demand in the export markets and by downstream activities. Sales in the Union market remained by and large stable during the period considered.

Table 6B

Union production intended for captive use

Source: Data provided by the Union industry.

201820192020Review investigation period (2021)Production volume (tonnes)[18294-22145][17792-21538][20758-25128][20822-25206]Index10097113114

(145) The production intended for captive use represents a large share of the Union industry production and activity. The internal demand for sodium gluconate increased in particular in 2020 and in the review investigation period. As mentioned in recital (141), it allowed the Union industry to achieve economies of scale and reduce costs.

5.6.2.2.

Sales volume and market share

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

Table 7

Union sales volume and market share

Source: Data provided by the Union industry.

201820192020Review investigation period (2021)Sales volume on the Union market (tonnes)[17896-21664][17114-20717][15908-19256][18128-21944]Index1009689101Market share (%)[93-97][91-95][88-93][90-94]Index100979697

(147) The sales of sodium gluconate on the free market slightly increased by 1 % over the period considered. Sales volume decreased by 11 % up to 2020, then recovered during the review investigation period.

(148) Although the Union market was growing, the Union industry lost 3 percentage points of market share to Chinese imports in the review investigation period. The loss of market share was particularly pronounced between 2018 and 2020 (4 percentage points) and could not be recovered in the upturn of the free market during the review investigation period. Nevertheless, the market share of the Union industry stayed well below the level at the beginning of the period considered.

5.6.2.3.

Growth

(149) The investigation showed that, on the one hand certain volume indicators such as production (+ 6 %) and in parallel, employment (+ 4 %) developed positively, in particular during the review investigation period. On the other hand, even if sales in the free market increased marginally and production capacity remained stable, the Union industry lost 3 percentage points of market share to imports from China and its investments had to be reduced by more than 50 % over the period considered.

(150) It is recalled that production developed positively because of a higher demand in the export markets and in the downstream products of the Union industry. Despite the measures in force and an increase in the free market consumption by 4 %, the Union industry could only increase its sales on the Union market by 1 % during the period considered.

5.6.2.4.

Employment and productivity

(151) Employment and productivity developed over the period considered as follows:

Table 8

Employment and productivity in the Union

Source: Data provided by the Union industry.

201820192020Review investigation period (2021)Number of employees[48-59][49-60][50-61][50-61]Index100102104104

Productivity (tonne/FTE)[926-1121][892-1079][898-1087][948-1148]Index1009697102

(152) The number of employees in the Union industry increased by 4 % up to 2020 and then stabilized in the review investigation period. As a result of the decrease in production and increased employment in 2019, productivity temporarily decreased in that year. It improved in 2020 and especially in the review investigation period, in line with an increasing production.

5.6.2.5.

Magnitude of the dumping margin and recovery from past dumping

(153) The original dumping margins ranged from 5,6 % to 79,2 %. The investigation showed that Chinese prices were very low from 2018 to 2020. They were on average 15 to 25 % lower than prices charged by the Union industry to its Union customers in the same period. This situation did not allow the Union industry to recover from past dumping. Profitability was negative or close to break-even and investments were significantly reduced. The analysis of the injury indicators shows that the Union industry was still impacted by past injurious dumping up to 2020. The measures in place only had a positive impact as from the review investigation period.

(154) The dumping margin established during the review investigation period was significant.

5.6.3.

Microeconomic indicators

5.6.3.1.

Prices and factors affecting prices

(155) The weighted average unit sales prices of the Union industry to unrelated customers in the Union developed as follows over the period considered:

Table 9

Sales prices in the Union and unit cost of production

Source: Verified data provided by the cooperating Union producer.

201820192020Review investigation period (2021)Average unit sales price in the Union (EUR/tonne)[685-829][722-875][712-862][719-870]Index100105104105Unit cost of production (EUR/tonne)[695-841][735-890][702-850][668-809]Index10010610196

(156) The Union industry concludes yearly, in some cases two years, contracts with its customers. The investigation showed that the average sales price established on an ex-works basis increased by 5 % during the period considered. The main price increase took place in 2019 to respond to a similar increase in costs. After that, prices remained by and large stable up to the end of the review investigation period.

(157) The unit cost of production increased by 6 % in 2019, coinciding with a decrease in production (– 2 %) and sales volume in the free market (– 4 %). Subsequently, the unit cost of production decreased by 9 % between 2019 and the review investigation period. Overall, the unit cost of production decreased by 4 % during the period considered. The decrease was due to a reduction of certain direct costs and selling, general and administrative expenses.

5.6.3.2.

Labour costs

(158) The average labour costs of the Union industry developed over the period considered as follows:

Table 10

Average labour costs per employee

Source: Verified data provided by the cooperating Union producer.

201820192020Review investigation period (2021)Average labour costs per employee (EUR/FTE)[82630-100026][71828-86950][71910-87049][80332-97244]Index100878797

(159) Average labour costs decreased by 3 % during the period considered. In any event, as labour represents only a minor portion of the production cost, this should not be considered a meaningful indicator in the analysis of the economic situation of the Union industry.

5.6.3.3.

Inventories

(160) Stock levels of the Union industry developed over the period considered as follows:

Table 11

Inventories

Source: Verified data provided by the cooperating Union producer.

201820192020Review investigation period (2021)Closing stocks (tonne)[1784-2160][2148-2601][1959-2371][1596-1932]Index10012011089Closing stocks as a percentage of production (%)4543Index10012310984

(161) The level of inventories increased between 2018 and 2019 (+ 20 %) and then showed a decrease (– 26 %) between 2019 and the review investigation period. Overall, the level of inventories decreased by 11 % over the period considered. The investigation has shown that production of sodium gluconate is destined to both captive use by the Union industry and sales in the free market. The Union industry has shown that it could be flexible to meet its customers and internal needs and that it is mainly producing on orders for the free market. The level of stocks could thus be kept at a minimum level (3–5 % of production).

5.6.3.4.

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

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

Table 12

Profitability, cash flow, investments and return on investments

Source: Verified data provided by the cooperating Union producer.

201820192020Review investigation period (2021)Profitability of sales in the Union to unrelated customers (% of sales turnover)[–10-– 1][–11-– 1][0-+10][5-+20]Index–100–10434293Cash flow (EUR)[–1001175–185632][–591908 -– 111256][571495- 691810][1064837- 1289013]Index–100–23142265Investments (EUR)[282981- 342556][140951- 170624][158832- 192271][116361- 140858]Index100505641Return on investments (%)[–30-– 37][–21-– 25][–11-– 14][12-16]Index–100–68–3942

(163) The Commission established the profitability of the Union industry 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.

(164) The Union industry was loss-making during the first two years of the period considered and became slightly profitable in 2020. Profitability improved further in the review investigation period but remained still below the target profit used in the original investigation. The improvement of the profitability in 2020 and the review investigation period was mainly due to lower direct costs, the recovery in production volume and lower selling, general and administrative costs. The Union industry was able to achieve economies of scale by increasing its production and reducing costs, in particular in the review investigation period. It shows that the Union industry, which is still in a vulnerable position, is able to recover further in a market governed by effective competition conditions.

(165) The net cash flow is the ability of the Union producers to self-finance their activities. It was established on the basis of the entire sodium gluconate sales activity of the Union industry during the period considered. It was negative in 2018 and 2019 and turned positive in 2020 and further improved during the review investigation period, in line with the recovery in profitability. Such development should be sustained in the medium term to produce lasting positive effects on the Union industry.

(166) The return on investments is established on the basis of the profit of all sales of the product under review in percentage of the net book value of investments. As explained in recital (155), sales prices were relatively stable and in recital (163), costs could be decreased between 2020 and the review investigation period. This led to the recovery of profitability for sales made to unrelated customers in the Union market and allowed this indicator to develop positively during the period considered.

(167) During the period considered, the Union industry’s investments in its sodium gluconate activity decreased substantially by 50 to 60 %. The Union industry kept the injection of fresh capital to a minimum by lowering its level of investment to almost negligible amounts. Therefore, the ability to raise capital could not be analysed and no conclusion could be drawn. Nevertheless, it is clear that such a low level of investment could not ensure production continuity in the medium term.

5.7.

Conclusion on injury

(168) The investigation showed that the Chinese exporting producers managed to increase their import volume and market share, which significantly grew by 45 % in 2019 and a further 30 % in 2020. In that period, it was found that the Chinese average import price was between 15 to 25 % below the Union industry price. The Chinese exporting producers managed to keep this market share despite a higher average import price in the review investigation period. Given the absence of cooperation from Chinese exporters and the unavailability of relevant price data, such as the product mix to perform a meaningful price comparison, no reliable conclusion could be drawn on price undercutting.

(169) The Union industry sales volume and market share developed negatively during the first three years of the period considered. The decline in sales volume (– 4 %) was more pronounced than the decline in consumption (– 2 %) in 2019 and sales further decreased by 7 % in 2020. Between 2018 and 2019, production remained by and large stable but inventories significantly increased (up to 20 %) due to reduced sales. Profitability was negative but eventually became slightly profitable in 2020. Between 2020 and the RIP, the Union industry managed to increase its sales volumes (+ 12 %) and market share (+ 1 %). It also managed to decrease its cost of production to further improve profitability during the RIP.

(170) At the same time, the investigation showed that the Union industry did not fully benefit from the market growth during the period considered. Whilst consumption in the free market increased by 4 %, sales of the Union industry slightly increased by 1 % and thus lost 3 percentage points of market share.

(171) To summarize, the investigation showed that injury indicators such as production, capacity utilisation and employment, together with financial indicators such as profitability, cash flow and return on investments, developed positively, in particular in the review investigation period. Profitability and cash flow became positive as from 2020, and the return on investments become positive in the review investigation period.

(172) On the basis of the foregoing, the Commission concluded that the Union industry has started to recover from previous injurious dumping and did not suffer material injury within the meaning of Article 3(5) of the basic Regulation during the review investigation period. It is nevertheless considered that even if the recent developments in the economic situation of the Union industry showed signs of recovery, the industry is still in a vulnerable situation.

1. LIKELIHOOD OF RECURRENCE OF INJURY

(173) The investigation showed that the Chinese imports entered the Union market at dumped prices during the review investigation period and that there was a likelihood of continuation of dumping should measures be allowed to lapse.

(174) The Commission concluded in recital (172) that the Union industry did not suffer material injury during the review investigation period. Therefore, the Commission assessed, in accordance with Article 11(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury caused by dumped imports from China if the measures were allowed to lapse.

(175) The Commission examined the production capacity and spare capacity in China, the likely price levels of imports from China in the absence of anti-dumping measures and their impact on the Union industry, and the attractiveness of the Union market.

(176) As set out in recitals (95) to (98) above, there is substantial production capacity and spare capacity in China to increase exports to the Union market rapidly in the event that the anti-dumping measures were allowed to expire. As established in recital (96), in the review investigation period, Chinese exporting producers had a capacity of around 1300000 tonnes, which equals more than 50 times the Union consumption on the free market. Based on data provided by the Union industry, this capacity will be increased substantially in the next years. No other party questioned this data nor provided any other elements in this respect.

(177) Publicly available

Sodium Gluconate and Glucono Delta-Lactone's Major Producers Capacity and Output in China in 2021 (marketresearch.com) https://www.marketresearch.com/CCM-International-Limited-v3539/Sodium-Gluconate-Glucono-Delta-Lactone-32039947/#:~:text = In%202017 %E2 %80 %932021 %2C%20the%20output%20of%20sodium%20gluconate%20in,which%20was%205,44 %25 %20lower%20than%20that%20of%202020.

data confirms that the output of sodium gluconate in China increased compared to previous years of the period considered and was at 701400 tonnes in the review investigation period. This means that the utilisation of capacity was around 54 % and the excess in capacity around 600000 tonnes in that period. This is more than 25 times the Union consumption in the free market.

(178) Although it is expected that consumption of sodium gluconate will increase in the next years, the low utilisation of capacity supports the Union industry’s claim that Chinese capacity is far exceeding the internal needs. The spare capacity in China cannot be absorbed by the Chinese market, considering any reasonable expectation of its growth. Therefore, there are strong incentives for Chinses producers to export, in particular to the Union market, even more so if the measures are allowed to lapse.

(179) According to the Union industry, excess in production capacities is an incentive to continue exporting at dumped prices. It is clear that Chinese exporters must exploit all existing possibilities to increase production to fully benefit from the significant investments they made in installed capacities. The most obvious way is to penetrate any open market worldwide and very likely at dumped prices as it is still the case in the current investigation. Considering the decrease in transport cost in 2022

See page 4 of the open version of Jungbunzlauer’s submission Exhibit 23 of 18 November 2022

and the expected price level in the Union, imports of Chinese sodium gluconate would very likely increase to large quantities at dumped prices in the Union market if the measures are allowed to lapse.

(180) The investigation showed that the average price of Chinese sodium gluconate to the EU during the review investigation period, was higher than the average export price charged by Chinese exporters to other destinations, see recital (101). Exporting sodium gluconate to the EU if the trade defence measures are allowed to lapsed, would thus make economic sense, especially given that Chinese exporting producers have large production capacity available and could easily increase their production even without diverting (less economically attractive) sales volume to the EU.

(181) Finally, the Union industry recalled that the United States, the only country with sodium gluconate production other than China and the EU, also established that Chinese exporting producers of sodium gluconate were selling at dumped prices in their market. In parallel, these producers were also found to benefit from public subsidies encouraging exports. As explained in recital (105), the trade defence measures in place in the United States effectively limit the entry of Chinese sodium gluconate in that market.

(182) In the rest of the world, Chinese exporting producers dominate the supply of sodium gluconate. According to data provided by the Union industry, Chinese manufacturers have a dominant market share in Africa (above 90 % in 2021), in the Middle East above (99 %) and in countries of Europe not members of the EU (almost 80 %)

See pages 9-10 of the open version of Jungbunzlauer’s submission Exhibit 23

.

(183) The applicant maintained that there was a temporary distortion in the Chinese prices in 2021 and early 2022 as the exceptionally high freight rates for container shipments from China to overseas destinations resulted in increased prices of Chinese products. This rendered the offers of the Union industry more competitive

See page 7 of the open version of Jungbunzlauer’s submission Exhibit 23

. Therefore, the Union industry could slightly increase its sales volume and implement a higher price level. However, the applicant also claimed that the trend of increasing freight costs had recently changed and that Chinese exporting producers were selling again at lower prices which do not allow the Union industry to compete on fair terms. The decreasing freight cost in 2022 is also confirmed by the publicly available data mentioned in recital (178) above.

(184) This claim was also supported by very low quotations offered by certain Chinese exporters to Union customers in 2022

See pages 1-2 of the open version of Jungbunzlauer’s submission of 21 November 2022

. As explained in recitals (96) to (98) above, the large spare production capacities in China could easily be used and a high volume of Chinese dumped imports would very likely re-enter the Union market in significant quantities. These high volumes of low-priced sodium gluconate would exert a significant price pressure on the Union industry and would most likely result in decreasing sales volume and prices. Hence, the economic situation of the Union industry is likely to deteriorate quickly jeopardizing its recent recovery and its survival in the short to medium term.

(185) Taking into account the significant increase of the price of raw materials which has already taken place in 2022 and which is foreseen to continue in 2023

See page 2 of the open version of Jungbunzlauer’s submission of 21 November 2022

, profitability of the Union industry is likely to be negatively affected. Even more so, if the measures were allowed to lapse which would in addition very likely lead to a surge of increased quantities of dumped imports from China, thus transforming the Union industry in a loss making industry. This situation would lead to the disappearance of the sodium gluconate production in the Union and of the downstream activities of the Union industry within a relatively short period of time. In this case, the worldwide production of sodium gluconate would be reduced to China and the United States which could impact the security of supply in the Union.

(186) In view of the above facts and considerations, namely the large spare capacities in China, the need for Chinese exporters to increase production and find new markets, the attractiveness of the Union market and the limited access of Chinese exporters to the United States’ market, the recent decrease in transport costs and the low level of prices currently offered to customers in the EU by Chinese exporters, the Commission concluded that the absence of measures would in all likelihood result in a significant increase of dumped imports from China at injurious prices and material injury would be likely to recur.

1. UNION INTEREST

(187) In accordance with Article 21 of the basic Regulation, the Commission examined whether maintaining the existing anti-dumping 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 users.

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

(189) On this basis the Commission examined whether, despite the conclusions on the likelihood of continuation of dumping and 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.

7.1.

Interest of the Union industry

(190) As stated in recital (171), the Union industry showed that it was able to recover from injurious dumping in a market governed by effective trade conditions. The share it holds on the US market further confirms that its operations are viable when not subject to unfair competition by dumped imports. Nevertheless, as explained in recital (171) above, the industry is still in a vulnerable state.

(191) The trade defence measures currently in force in the EU and the United States aim at establishing an effective and competitive environment for all producers of sodium gluconate but also for all other operators. Data provided by the applicant show that whilst Chinese producers have less than 5 % market share in the United States’ market, EU producers have around 20 % market share. This demonstrates that the Union industry is competitive and is not ready to abandon this sales segment, which is unique in the Union.

(192) Based on the above, it was concluded that extending the measures in force against the PRC would be in the interest of the Union industry.

7.2.

Interest of unrelated importers

(193) As stated in recital (18), no unrelated importer cooperated during the investigation.

(194) The current investigation did not reveal any significant adverse impact of the measures in force on importers.

(195) The previous expiry review investigation concluded that importers could be negatively affected by the measures but to a very limited extent. It was found that the share of sodium gluconate represented less than 5 % of the turnover of the importers which cooperated in the previous expiry review.

(196) Based on information available, the Commission considers that the maintenance of measures would have a very limited impact, if at all, on importers and such impact would be clearly outweighed by the benefits that the measures could bring to the Union industry.

7.3.

Interest of users

(197) None of the users of sodium gluconate cooperated in the investigation.

(198) It was found in the previous expiry review investigation, that for the cooperating user, sodium gluconate represented less than 5 % of the cost of manufacturing of the finished products incorporating sodium gluconate. Any increase in the price of sodium gluconate should thus have a limited impact on the users’ activities.

(199) The investigation also showed that the Union industry behaved in a reasonable way in terms of price setting. In 2019, when prices of the Union industry increased on average by 5 %, it was to respond to a 6 % costs increase in that year. During the review investigation period, when Chinese prices for certain types of sodium gluconate were higher than the Union Industry, the Union industry price remained stable.

(200) In the absence of cooperation, and as was the case in the previous investigation, the current investigation did not reveal any significant adverse impact of the measures on users.

(201) Therefore, from the information available, the Commission concluded that the impact, if any, on users of the continuation of measures would be limited.

7.4.

Conclusion on Union interest

(202) On the basis of the above, the Commission concluded that there were no compelling reasons of the Union interest against the maintenance of the existing measures on imports of sodium gluconate originating in the PRC.

1. ANTI-DUMPING MEASURES

(203) On the basis of the conclusions reached by the Commission on continuation of dumping, recurrence of injury and Union interest, the anti-dumping measures on sodium gluconate from the PRC should be maintained.

(204) 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(3) of this regulation. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to all other companies.

(205) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of anti-dumping duty to imports, it is not the only element to be taken into account by the customs authorities. Indeed, even if presented with an invoice meeting all the requirements set out in Article 1(3) of this regulation, the customs authorities of 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.

(206) 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.

(207) The individual company anti-dumping duty rates specified in 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.

(208) 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 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.

(209) 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. No comments were received.

(210) 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.

(211) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 15(1) Regulation (EU) 2016/1036,

HAS ADOPTED THIS REGULATION:

Article 1

1. A definitive anti-dumping duty is hereby imposed on imports of dry sodium gluconate, with a Customs Union and Statistics (CUS) number 0023277-9 and a Chemical Abstracts Service (CAS) registry number 527-07-1, currently falling under CN code ex29181600 (TARIC code 2918160010) and originating in the People’s Republic of China.

1. The rates of the definitive anti-dumping duty applicable to the net, free-at-Union-frontier price, before duty, of the product described in paragraph 1 and produced by the companies listed below shall be as follows:

CompanyDefinitive anti-dumping duty (%)TARIC additional codeShandong Kaison Biochemical Co., Ltd5,6A972Qingdao Kehai Biochemistry Co. Ltd27,1A973All other companies53,2A999

1. The application of the individual duty rates specified for the companies mentioned in paragraph 2 shall be conditional upon presentation to the Member States’ customs authorities of a valid commercial invoice, on which shall appear a declaration dated and signed by an official of the entity issuing such invoice, identified by his/her name and function, drafted as follows: I, the undersigned, certify that the (volume) of (product under review) sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in [country concerned]. I declare that the information provided in this invoice is complete and correct. If no such invoice is presented, the duty applicable to all other companies shall apply.

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

Article 2

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 12 April 2023.

For the Commission

The President

Ursula von der Leyen