Commission Implementing Regulation (EU) 2024/2211of 5 September 2024imposing a definitive anti-dumping duty on imports of oxalic acid originating in India and 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

See the company’s 2023 Annual Report, p. 94, available at: http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2024/2024-4/2024-04-27/10123345.PDF (accessed on 13 May 2024).

, but does cultivate close links to the state and the local government. As confirmation, an article published on the company’s website affirms: At the meeting, the Zaozhuang Municipal Party Committee and Municipal Government focused on commending enterprises and outstanding entrepreneurs with outstanding contributions in Zaozhuang City in 2022. Zhao Guanghui, chairman of Fengyuan Co., Ltd., won the title of Outstanding Entrepreneur of Zaozhuang City in 2022, recorded second-class merit, and received a medal Certificate. […] Fengyuan, under the correct leadership of the Zaozhuang Municipal Party Committee and Municipal Government, adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and actively implemented a new development concept, focussing on the goal of promoting the economy first, and concentrate on strengthening industry, […] overcome difficulties, pioneer and innovate, achieve steady growth of enterprises, and help promote the city’s industrial power and industrial prosperity. […] Fengyuan will be guided by the spirit of the Mobilization Conference for the City’s efforts to deepen industry development towards strong and vivid industries, setting goals and shouldering responsibilities, accurately mapping out benchmarks, striving for the leading position, seizing strategic opportunities for industrial development, and making efficient overall plans for projects construction, production, while R & D and operation will accelerate the significant increase in output, revenues and tax payments, making substantial contributions to the city’s strengthening industry, revitalizing industry and transforming to break through

See https://www.fengyuanhuaxue.com/portal/news/detail.html?id=8&type=1 (accessed on 13 May 2024).

.

(137) The GOC exerts guidance on enterprises also by setting specific objectives. For instance, in 2022 the Ministry of Finance and the Ministry of Agriculture and rural affairs announced the 2022 key policies, and the following goals involve enterprises: [i]ntegrated development of agricultural industry. Coordinate the layout and construction of a number of national modern agricultural industrial parks, advantageous and characteristic industrial clusters, and agricultural industrial strong municipalities. Focusing on ensuring national food security and effective supply of important agricultural products, focusing on rice, wheat, corn, […] sugar, dairy industry, seed industry, facility vegetables, etc. Agricultural products, taking into account other characteristic agricultural products, build a modern rural industrial system based on strong industrial towns, industrial parks as the engine, and industrial clusters as the backbone, provincial, county and township layouts, and coordinated promotion of points, lines, and areas, so as to improve the quality and efficiency of industrial development as a whole

See http://www.moa.gov.cn/gk/cwgk_1/nybt/202206/t20220610_6402146.htm, paragraph 20 (accessed on 13 May 2024).

.

(138) Moreover, in the petrochemical and chemical sector, the authorities encourage the creation of clusters, not least to take advantage of the interdependencies of various chemical manufacturing processes. Indeed, the 14th FYP on Developing Raw Materials Industry requires that [m]easures shall be taken to make leading enterprises bigger and stronger. Led by the market and supported by the government, we shall [...] help such enterprises accelerate trans-regional and cross-ownership mergers and reorganization, so as to make the industry more concentrated and facilitate international operations. In sectors including petrochemicals and chemicals [...] we shall foster a number of pioneering enterprises that could lead the ecosystem of the industrial chain with core competitiveness [...]

Updated Report – Chapter 13, p. 466.

.

(139) Government control and policy supervision can be also observed at the level of the relevant industry associations

Updated Report – Chapter 2, p. 24-27.

.

(140) For instance, China Biotech Fermentation Industry Association

See further: http://www.cfia.org.cn/ (accessed 22 May 2024).

(CBFIA) has a subsidiary association focusing on organic acids, which comprehends the product concerned. CBFIA states in Article 3 of its Articles of Association that the organisation [e]stablishes an organization of the Communist Party of China, carries out Party activities, and provides the necessary conditions for the activities of the Party organization. […] accepts the business guidance, supervision and management by the entities in charge of registration and management, by entities in charge of Party building, as well as by the relevant administrative departments in charge of industry management

Charter of the China Biofermentation Industry Association. Available at: http://www.cfia.org.cn/site/term/5.html (accessed 22 May 2024).

. Article 36 further states that the person in charge of the Association have to meet conditions such as [a]dhere to the leadership of the Communist Party of China, support socialism with Chinese characteristics, resolutely implement the party’s line, principles and policies, and have good political quality

Ibid.

.

(141) Similarly, China Chemical Environmental Protection Association (CCEPA)

See further: http://www.cciepa.org.cn/ (accessed 22 May 2024).

, according to Article 2 of its Articles of Association, pursues the goal to publicize and implement national industrial policies, serve the industry wholeheartedly, and promote industrial production. In addition, Article 3 states that CCEPA establishes an organization of the Communist Party of China, carries out Party activities, and provides the necessary conditions for the activities of the Party organization and – just like in the case of CBFIA – accepts the business guidance, supervision and management by the entities in charge of registration and management, by entities in charge of Party building, as well as by the relevant administrative departments in charge of industry management

See http://www.cciepa.org.cn/page.htm?id=1002 (accessed on 13 May 2024).

. CCEPA counts among its members Shandong Hualu Hengsheng Chemical Co., Ltd.

See above, footnote 60.

.

(142) Consequently, even privately owned producers in the sector of the product concerned are prevented from operating under market conditions. Indeed, both public and privately owned enterprises in the sector are subject to policy supervision and guidance.

3.3.1.2.4.

Significant distortions according to Article 2(6a)(b), second indent of the basic Regulation: State presence in firms allowing the state to interfere with respect to prices or costs

(143) Apart from exercising control over the economy by means of ownership of SOEs and other tools, the GOC is in position to interfere with prices and costs through state presence in firms. While the right to appoint and to remove key management personnel in SOEs by the relevant state authorities, as provided for in the Chinese legislation, can be considered to reflect the corresponding ownership rights

Updated Report – Chapter 5, p. 124-125.

, CCP cells in enterprises, state-owned and private alike, represent an important channel through which the state can interfere with business decisions.

(144) According to China’s company law, a CCP organisation is to be established in every company (with at least three CCP members as specified in the CCP Constitution

Updated Report – Chapter 3, p. 40.

) and the company shall provide the necessary conditions for the activities of the Party organisation.

(145) In the past, this requirement appeared not to have always been followed or strictly enforced. However, since at least 2016 the CCP has been reinforcing its claims to control business decisions in companies as a matter of political principle

See for example: Blanchette, J. – Xi’s Gamble: The Race to Consolidate Power and Stave off Disaster; Foreign Affairs, vol. 100, no. 4, July/August 2021, pp. 10-19.

, including exercising pressure on private companies to put patriotism first and to follow Party discipline

Updated Report – Chapter 3, p. 41.

.

(146) Already in 2017, it was reported that party cells existed in 70 % of some 1,86 million privately owned companies, with growing pressure for the CCP organisations to have a final say over the business decisions within their respective companies

Available at: https://www.reuters.com/article/us-china-congress-companies-idUSKCN1B40JU (accessed on 13 May 2024).

. These rules are of general application throughout the Chinese economy, across all sectors, including to the producers of the product concerned and the suppliers of their inputs.

(147) In addition, on 15 September 2020 a document titled General Office of CCP Central Committee’s Guidelines on stepping up the United Front work in the private sector for the new era (the Guidelines)

General Office of CCP Central Committee’s Guidelines on stepping up the United Front work in the private sector for the new era: www.gov.cn/zhengce/2020-09/15/content_5543685.htm (accessed on 13 May 2024).

was released, which further expanded the role of the Party committees in private enterprises.

(148) Section II.4 of the Guidelines states: [w]e must raise the Party’s overall capacity to lead private-sector United Front work and effectively step up the work in this area; and section III.6 states: [w]e must further step up Party building in private enterprises and enable the Party cells to play their role effectively as a fortress and enable Party members to play their parts as vanguards and pioneers. The Guidelines thus emphasise and seek to increase the role of the CCP in companies and other private sector entities

Financial Times (2020) – Chinese Communist Party asserts greater control over private enterprise: https://on.ft.com/3mYxP4j (accessed on 13 May 2024).

.

(149) The investigation confirmed that overlaps between managerial positions and CCP membership/Party functions exist also in the sector of the product concerned.

(150) For instance, the Articles of Association of Shandong Fengyuan Chemical Stock Co., Ltd require, at Article 1.13, that In accordance with the provisions of the Constitution of the Communist Party of China, the company establishes Communist Party organizations and carries out party activities. The company provides necessary conditions for the activities of party organizations

See http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2023/2023-10/2023-10-28/9608338.PDF (accessed on 13 May 2024).

. Notably, the company is also influenced by local governmental authorities, as shown in recital (136).

(151) Similarly, Article 12 of the Articles of Association of Danhua Chemical Technology Group states that: The company shall establish Communist Party organizations and carry out Party activities in accordance with the provisions of the Constitution of the Communist Party of China. The company’s party organization formulates specific work implementation rules based on the requirements of the superior party organization, sets the direction, manages the overall situation, and promotes implementation. When the company decides on major matters, it should listen to the opinions of the party organization in advance. The company provides necessary conditions for the activities of party organization

See http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2023/2023-11/2023-11-16/9644604.PDF (accessed on 13 May 2024).

.

(152) Moreover, the Director of the Danhua Chemical Technology Group is at the same time Deputy Secretary of the Party Committee of Tongliao Jinmei Chemical Co., Ltd and a member of the Party Committee and Deputy Secretary of the Discipline Inspection Commission of Jiangsu Danhua Group Co., Ltd.

(153) The Chairman of Hualu Hengsheng Chemical Co., Ltd. is also Secretary of the Party Committee and CCP interference into the business decisions is apparent in the company’s website, which describes the role of the Party within the Group as follows: The Party branch of the production department is one of the most important grassroots branches of Hualu Hengsheng. It provides strong support for the company's long-term safe and stable production, lays a solid foundation for lean and efficient operations, and makes outstanding contributions to record economic benefits

See http://www.hualuholdings.com/news/800.html (accessed on 13 May 2024).

.

(154) The state’s presence and intervention in the financial markets as well as in the provision of raw materials and inputs further have an additional distorting effect on the market

Updated Report – Chapter 14, Sections 14.1 to 14.3.

. Thus, the state presence in firms, in the oxalic acid and other sectors (such as the financial and input sectors) allows the GOC to interfere with respect to prices and costs.

3.3.1.2.5.

Significant distortions according to Article 2(6a)(b), third indent of the basic Regulation: public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces

(155) The direction of the Chinese economy is to a significant degree determined by an elaborate system of planning which sets out priorities and prescribes the goals the central, provincial and local governments must focus on. Relevant plans exist at all levels of government and cover virtually all economic sectors. The objectives set by the planning instruments are of a binding nature and the authorities at each administrative level monitor the implementation of the plans by the corresponding lower level of government.

(156) Overall, the system of planning in China results in resources being driven to sectors designated as strategic or otherwise politically important by the government, rather than being allocated in line with market forces

Updated Report – Chapter 4, p. 56-57, 99-100.

.

(157) The Chinese authorities have enacted a number of policies guiding the functioning of the sector of the product concerned.

(158) The 2022 key policies of the Ministry of Finance and the Ministry of Agriculture and rural affairs mentioned above (see recital (137)) contain also the following provisions influencing the functioning of the sector: [t]he state will continue to implement policies such as subsidies for corn and soybean producers, subsidies for rice, and incentives for large grain-producing counties, so as to consolidate the effectiveness of supply-side structural reform in agriculture and ensure national food security or [r]ewards for major seed production counties. Expand the scope of support for major seed production counties of rice, wheat, corn […], and promote the transformation and upgrading of the seed industry

http://www.moa.gov.cn/gk/cwgk_1/nybt/202206/t20220610_6402146.htm, paragraphs 6 and 15 (accessed on 13 May 2024).

.

(159) The 14th FYP on promoting the modernization of agriculture and rural areas

See https://www.gov.cn/zhengce/content/2022-02/11/content_5673082.htm (accessed on 13 May 2024).

aims to [i]mprove grain production support policies. Stabilize grain farmers subsidies, improve the minimum purchase price policy for rice and wheat, and the subsidy policy for corn and soybean producers. Improve the compensation mechanism for the interests of major grain-producing areas and improve the support policy system for major grain-producing counties’

Ibid., Section II.1.

. It further enhances Agricultural science and technology innovation capacity building. Focusing on areas such as biological breeding, biological safety, resources and environment, intelligent agricultural machinery, deep processing of agricultural products, and creation of green inputs, a new batch of major agricultural science and technology facilities and equipment, key laboratories and agricultural scientific observation and experimental stations will be built

Ibid., Section IV, Box 3.

.

(160) Not only, in December 2018 the Ministry of Agriculture, unitedly with 15 administrations, published a Notice of several policy measures to support the high quality development of Agricultural products’ deep processing: Optimizing the industrial structure Coordinate and promote the coordinated development of intensive processing, primary processing, and comprehensive utilization processing of agricultural products, organically connect with upstream and downstream industries such as special raw material production, warehousing logistics (including cold chain logistics), and market consumption, and integrate with nutrition and health, leisure tourism, education and culture, and health preservation. It is organically combined and deeply integrated with rural industries such as e-commerce. Regularly monitor and analyze the production capacity layout of intensive processing and comprehensive utilization of bulk agricultural products, guide the transformation of excess production capacity, and accelerate the construction of short production capacity, and optimize the layout of the industrial chain. Increase the added value of corn processing, especially corn processing products in Northeast China, and accelerate the development of comprehensive processing and utilization of straw and corn cob

See Notice of 15 departments including the Ministry of Agriculture and Rural Affairs on several policies and measures to promote the high-quality development of intensive processing of agricultural products (moa.gov.cn) (accessed on 13 May 2024).

.

(161) Relevant policies are not found solely in the agricultural sector, but in the chemical sector as well.

(162) The Guiding Opinion on Promoting the High-quality Development of the Petrochemical and Chemical Industry During the 14th Five Years Plan Period (the Guiding Opinion), emphasizes the need to [...] accelerate the transformation and upgrading of traditional industries, and vigorously develop new chemical materials and fine chemicals. Accelerate the digital transformation of the industry [...] and promote China's progress from a large petrochemical and chemical country to a strong petrochemical and chemical country

See https://www.miit.gov.cn/zwgk/zcwj/wjfb/yj/art/2022/art_4ef438217a4548cb98c2d7f4f091d72e.html – First section, General Requirements (accessed on 13 May 2024).

.

(163) The above-mentioned objectives are further specified in the subsequent sections of the Guiding Opinion. For instance, the issuing authorities intend to [s]upport enterprises to take the lead in forming collaborative innovation organizations such as industrial technology innovation alliances and upstream and downstream cooperation mechanisms and support the rational layout of local governments to build regional innovation centers and pilot bases, to [c]onquer core technologies and enhance the momentum of innovation and development, […] accelerate breakthroughs in key technologies [...]

Ibid. – Second section, Improve the level of innovation and development.

. Moreover, the chemical sector needs to [focus] on strategic emerging industries such as new generation information technology, biotechnology, new energy, and high-end equipment, we shall increase the specifications of material varieties […] and accelerate the development of high-end polyolefins, electronic chemicals, industrial special gases, high-performance rubber and plastic materials, high-performance fibres, bio-based materials, special lubricants and greases and other products

Ibid.

.

(164) It incites economic actors to Actively develop biochemical industry, encourage the development of enzymes needed for biomass utilization and biorefining based on biological resources

Ibid., Section 11.

.

(165) On the provincial level, policy objectives and corresponding support tools become more specific and targeted.

(166) According to the Hebei 14th FYP on strategic and emerging industries

See http://lvsefazhan.cn/index.php/guozijianguan/408.html (accessed on 13 May 2024).

the government authorities are set to shape the sector’s industrial layout as follows: Accelerate the pace of innovation and development of the bio-industry […] Vigorously develop the industries of bio-fermentation, bio-based products, and characteristic biological products, and promote the integrated application of biotechnology in the fields of medicine, chemical industry, materials, food deep processing, and new energy. Consolidate and improve the advantages of amino acids, starch sugars, enzyme preparations, vitamins and other products, and develop new biological materials such as bio-based fibers, bio-based chemicals, bio-based plastics, and bio-based rubber

Ibid., Section IV.3.

.

(167) In Heilongjiang, and especially Qinggang County, since 2021, the Qinggang County Party Committee and County Government has regarded the corn processing industry as Project No. 1 and has made every effort to build a pillar industry chain of corn in the county, focusing on corn starch as raw material, and the industrial deep processing chain will be directed to sugars, acids and alcohols. The direction of biomedicine is extended and expanded

See http://www.moa.gov.cn/xw/qg/202206/t20220614_6402372.htm (accessed on 13 May 2024).

.

(168) Furthermore, in 2024 Shandong issued a major policy to promote, upgrade and develop the corn industry

See https://www.sohu.com/a/756699103_121769698 (accessed on 13 May 2024).

, providing important tax support for research and development.

(169) Therefore, through these and other means, the GOC directs and controls virtually every aspect in the development and functioning of the sector, as well as the upstream inputs.

(170) In sum, the GOC has measures in place to induce operators to comply with the public policy objectives concerning the sector. Such measures impede market forces from operating freely.

3.3.1.2.6.

Significant distortions according to Article 2(6a)(b), fourth indent of the basic Regulation: the lack, discriminatory application or inadequate enforcement of bankruptcy, corporate or property laws

(171) According to the information on file, the Chinese bankruptcy system delivers inadequately on its own main objectives such as to fairly settle claims and debts and to safeguard the lawful rights and interests of creditors and debtors. This appears to be rooted in the fact that while the Chinese bankruptcy law formally rests on principles that are similar to those applied in corresponding laws in countries other than China, the Chinese system is characterised by systematic under-enforcement.

(172) The number of bankruptcies remains notoriously low in relation to the size of the country’s economy, not least because the insolvency proceedings suffer from a number of shortcomings, which effectively function as a disincentive for bankruptcy filings. Moreover, the role of the state in the insolvency proceedings remains strong and active, often having direct influence on the outcome of the proceedings

Updated Report – Chapter 6, p. 171-179.

.

(173) In addition, the shortcomings of the system of property rights are particularly obvious in relation to ownership of land and land-use rights in China

Updated Report – Chapter 9, p. 260-261.

. All land is owned by the state (collectively owned rural land and State-owned urban land) and its allocation remains solely dependent on the state. There are legal provisions that aim at allocating land use rights in a transparent manner and at market prices, for instance by introducing bidding procedures. However, these provisions are regularly not respected, with certain buyers obtaining their land for free or below market rates

Updated Report – Chapter 9, p. 257-260.

. Moreover, authorities often pursue specific political goals including the implementation of the economic plans when allocating land

Updated Report – Chapter 9, p. 252-254.

.

(174) Much like other sectors in the Chinese economy, the producers of the product concerned are subject to the ordinary rules on Chinese bankruptcy, corporate, and property laws. That has the effect that these companies, too, are subject to the top-down distortions arising from the discriminatory application or inadequate enforcement of bankruptcy and property laws. Those considerations, on the basis of the evidence available, appear to be fully applicable also in the sector of the product concerned. The present investigation revealed nothing that would call those findings into question.

(175) In light of the above, the Commission concluded that there was discriminatory application or inadequate enforcement of bankruptcy and property laws in the sector of the product concerned.

3.3.1.2.7.

Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted

(176) A system of market-based wages cannot fully develop in China as workers and employers are impeded in their rights to collective organisation. China has not ratified a number of essential conventions of the International Labour Organisation (ILO), in particular those on freedom of association and on collective bargaining

Updated Report – Chapter 13, p. 360-361, 364-370.

.

(177) Under national law, only one trade union organisation is active. However, this organisation lacks independence from the state authorities and its engagement in collective bargaining and protection of workers’ rights remains rudimentary

Updated Report – Chapter 13, p. 366.

. Moreover, the mobility of the Chinese workforce is restricted by the household registration system, which limits access to the full range of social security and other benefits to local residents of a given administrative area.

(178) This typically results in workers who are not in possession of the local residence registration finding themselves in a vulnerable employment position and receiving lower income than the holders of the residence registration

Updated Report – Chapter 13, p. 370-373.

. Those findings lead to the distortion of wage costs in China.

(179) No evidence was submitted to the effect that the oxalic acid sector would not be subject to the Chinese labour law system described. The sector is thus affected by the distortions of wage costs both directly (when making the product concerned or the main raw material for its production) as well as indirectly (when having access to capital or inputs from companies subject to the same labour system in China).

3.3.1.2.8.

Significant distortions according to Article 2(6a)(b), sixth indent of the basic Regulation: access to finance granted by institutions which implement public policy objectives or otherwise not acting independently of the state

(180) Access to capital for corporate actors in China is subject to various distortions.

(181) First, the Chinese financial system is characterised by the strong position of state-owned banks

Updated Report – Chapter 6, p. 137-140.

, which, when granting access to finance, take into consideration criteria other than the economic viability of a project. Similar to non-financial SOEs, the banks remain connected to the state not only through ownership but also via personal relations (the top executives of large state-owned financial institutions are ultimately appointed by the CCP)

Updated Report – Chapter 6, p. 146-149.

and they regularly implement public policies designed by the GOC.

(182) The Guiding Opinion also reveals the range of support tools and policies used to pursue the industrial policy objectives: [i]mprove supporting policies. Strengthen the coordination between fiscal, financial, regional, investment, import and export, energy, ecological environment, price and other policies and industrial policies. Involve national industry-finance cooperation platforms and promote bank-enterprise connections and industry-finance cooperation. [...]

See https://www.miit.gov.cn/zwgk/zcwj/wjfb/yj/art/2022/art_4ef438217a4548cb98c2d7f4f091d72e.html – Eighth section, Strengthen organizational safeguards (accessed on 13 May 2024).

.

(183) In doing so, the banks comply with an explicit legal obligation to conduct their business in accordance with the needs of the national economic and social development and under the guidance of the industrial policies of the state

Updated Report – Chapter 6, p. 149.

.

(184) While it is acknowledged that various legal provisions refer to the need to respect normal banking behaviour and prudential rules such as the need to examine the creditworthiness of the borrower, the overwhelming evidence, including findings made in trade defence investigations, suggests that these provisions play only a secondary role in the application of the various legal instruments.

(185) For example, the GOC has clarified that even private commercial banking decisions must be overseen by the CCP and remain in line with national policies. One of the state’s three overarching goals in relation to banking governance is now to strengthen the Party’s leadership in the banking and insurance sector, including in relation to operational and management issues

See official policy document of the China Banking and Insurance Regulatory Commission of 28 August 2020: Three-year action plan for improving corporate governance of the banking and insurance sectors (2020-2022): http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=925393&itemId=928 (accessed on 13 May 2024). The Plan instructs to further implement the spirit embodied in General Secretary Xi Jinping’s keynote speech on advancing the reform of corporate governance of the financial sector. Moreover, the Plan’s section II aims at promoting the organic integration of the Party’s leadership into corporate governance: we shall make the integration of the Party’s leadership into corporate governance more systematic, standardised and procedure-based […] Major operational and management issues must have been discussed by the Party Committee before being decided upon by the Board of Directors or the senior management.

. Also, the performance evaluation criteria of commercial banks have now to, notably, take into account how entities serve the national development objectives and the real economy, and in particular how they serve strategic and emerging industries

See CBIRC’s Notice on the Commercial banks performance evaluation method, issued on 15 December 2020: http://jrs.mof.gov.cn/gongzuotongzhi/202101/t20210104_3638904.htm (accessed on 13 May 2024).

.

(186) Furthermore, bond and credit ratings are often distorted for a variety of reasons including the fact that the risk assessment is influenced by the firm’s strategic importance to the GOC and the strength of any implicit guarantee by the government

Updated Report – Chapter 6, p. 157-158.

. This is compounded by additional existing rules, which direct finances into sectors designated by the government as encouraged or otherwise important

Updated Report – Chapter 6, p. 150-152, 156-160, 165-171.

. This results in a bias in favour of lending to SOEs, large well-connected private firms and firms in key industrial sectors, which implies that the availability and cost of capital is not equal for all players on the market.

(187) Second, borrowing costs have been kept artificially low to stimulate investment growth. This has led to the excessive use of capital investment with ever lower returns on investment. This is illustrated by the growth in corporate leverage in the state sector despite a sharp fall in profitability, which suggests that the mechanisms at work in the banking system do not follow normal commercial responses.

(188) Thirdly, although nominal interest rate liberalization was achieved in October 2015, price signals are still not the result of free market forces but are influenced by government-induced distortions. The share of lending at or below the benchmark rate still represented at least one-third of all lending as of the end of 2018

OECD (2019), OECD Economic Surveys: China 2019, OECD Publishing, Paris. p. 29, available at: https://doi.org/10.1787/eco_surveys-chn-2019-en (accessed on 13 May 2024).

and, in 2020, official media in China have reported that the CCP called for guiding the loan market interest rate downwards

See http://www.gov.cn/xinwen/2020-04/20/content_5504241.htm (accessed on 13 May 2024).

. Artificially low interest rates result in under-pricing, and consequently, the excessive utilization of capital.

(189) Overall credit growth in the China indicates a worsening efficiency of capital allocation without any signs of credit tightening that would be expected in an undistorted market environment. As a result, non-performing loans have increased rapidly, with the GOC a number of times opting to either avoid defaults, thus creating so called zombie companies, or to transfer the ownership of the debt (e.g. via mergers or debt-to-equity swaps), without necessarily removing the overall debt problem or addressing its root causes.

(190) In essence, despite the steps that have been taken to liberalize the market, the corporate credit system in China is affected by significant distortions resulting from the continuing pervasive role of the state in the capital markets. Therefore, the substantial government intervention in the financial system leads to the market conditions being severely affected at all levels.

(191) No evidence was submitted in the present investigation demonstrating that the sector of the product concerned 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. Therefore, the substantial government intervention in the financial system leads to the market conditions being severely affected at all levels.

3.3.1.2.9.

Systemic nature of the distortions described

(192) The Commission noted that the distortions described in the updated Report are characteristic for the Chinese economy. The evidence available shows that the facts and features of the Chinese system as described above as well as in Part I of the updated Report apply throughout the country and across the sectors of the economy. The same holds true for the description of the factors of production as set out above and in Part II of the updated Report.

(193) The Commission recalls that in order to produce the product concerned, certain inputs are needed. When the producers of the product concerned purchase/contract these inputs, the prices they pay (and which are recorded as their costs) are clearly 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. In addition, they are subject to the planning system that applies across all levels of government and sectors. These distortions were described in detail above. The Commission pointed out that the regulatory setup underpinning those distortions is generally applicable, oxalic acid producers being subject to those rules as any other economic operator in China. The distortions have therefore a direct bearing on the cost structure of the product concerned.

(194) As a consequence, not only the domestic sales prices of the product concerned 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 I and II of the updated Report.

(195) Indeed, the government interventions described in relation to the allocation of capital, land, labour, energy and raw materials are present throughout China. This means, for instance, that an input that in itself was produced in China 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.

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

3.3.1.2.10.

Conclusion

(197) The analysis set out in this section, which includes an examination of all the available evidence relating to China’s intervention in its economy in general as well as in the sector of the product concerned showed that prices and costs of the product concerned, 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.

(198) On that basis, the Commission concluded that it is not appropriate to use domestic prices and costs to establish normal value in this case. Therefore, the Commission calculated these values using appropriate undistorted prices and benchmarks derived from other sources.

3.3.1.2.11.

Representative country

3.3.1.2.11.1.

General remarks

(199) 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 PRC. For this purpose, the Commission used countries with a gross national income per capita similar to 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.

(200) In the Note, the Commission explained that there was no production of product under review in any upper-middle income country other than the PRC. The Commission therefore indicated it would use citric acid, a similar product to oxalic acid, to establish an appropriate representative country for the application of Article 2(6a) of the basic Regulation.

(201) Oxalic acid and citric acid share similar chemical characteristics. Indeed, they are composed of the same organic elements and, while oxalic acid contains two carboxyl groups, citric acid has three. Moreover, for a large range of end-uses, the two products are somewhat interchangeable. Both are used as cleaning and anti-bacterial agents, in the production of pharmaceutical and antibiotics, for metal purification in metal production and as ingredients in agricultural fertilisers. The Commission established that there was production of citric acid in Colombia, which is classified as an upper-middle income country.

(202) As provided in the Note, the Commission found readily available financial information for Sucroal SA, covering the financial year 2022. Moreover, benchmarks for the main factors of production, energy, gas, water, and labour could be established on the basis of information found for Colombia.

(203) Interested parties were invited to comment on the appropriateness of Colombia as a representative country.

(204) No interested party made any comments regarding the selection of Colombia as a representative country.

(205) Finally, given the absence of cooperation and having established that Colombia was an appropriate representative country, based on all 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.

3.3.1.2.11.2.

Conclusion

(206) In view of the above analysis, Colombia met the criteria laid down in Article 2(6a)(a), first indent of the basic Regulation in order to be considered as an appropriate representative country.

3.3.1.2.12.

Sources used to establish undistorted costs

(207) 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 GTA and the international benchmark as provided by the applicant in the request to establish the undistorted cost of most of the two factors of production, notably oxygen and nitric acid. In addition, the Commission stated that it would use the information from ILO

https://ilostat.ilo.org/data/

for establishing undistorted costs of labour, and from publicly available tariffs for electricity

https://www.enel.com.co

, water

https://www.acueducto.com.co

and gas

https://www.gdo.com.co

suppliers in Colombia.

(208) The Commission also informed the interested parties that two factors of production, due to their low impact on the cost of production, were considered as consumables, which accounted for less than 2 % of the cost of production of oxalic acid.

3.3.1.2.13.

Undistorted costs and benchmarks

Factors of production

(209) Considering all the information based on the request and subsequent information submitted by the applicant, 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 oxalic acid

http://www.gtis.com/gta/secure/default.cfm

Annex 21J of the request.

Commodity code in Türkiye.

Factor of ProductionCommodity Code in ColombiaUndistorted valueUnit of measurementSource of informationRAW MATERIALSSugar170199105,06 CNY/kgKGGTAOxygen2804401,44 CNY/kgKGIndexBoxNitric acid2808 00 102,83 CNY/kgKGChemAnalystPotassium hydroxide2815200010,83 CNY/kgKGGTA

CONSUMABLESOther raw materialN/A< 2 %% of COPLABOURLabour costN/A13,76 CNY/man-hourMen-hourILOENERGYElectricityN/A1,07 CNY/kWhkWhColombian supplier - ENELGasN/A3,95 CNY/m3M3Colombian supplier - GDOWaterN/A6,59 CNY/m3M3Colombian supplier - ACUEDUCTOBY PRODUCTS/WASTENitric acid2808 00 101,30 CNY/kgKGChemAnalyst

Raw materials

(210) 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 1 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.

. The Commission decided to exclude imports from the PRC into the representative country as it concluded 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.

(211) For one factor of production (namely potassium hydroxide), the Commission established that the in the imports of this raw material into Colombia originating in PRC constituted a significant share. Therefore, the benchmark price based on these imports could not be considered an appropriate and the Commission resorted to the import prices in Türkiye. The Commission notes that despite the fact that Türkiye – the representative country proposed by the applicant – could not be considered an appropriate representative country in this case due to the issues concerning the availability of recent financial information and the main raw material mentioned above, it was still considered reliable as a source for potassium hydroxide benchmark as it has a similar level of economic development to the PRC and it has production of citric acid for which production process is similar to the product concerned.

(212) Due to low volumes of import of oxygen into Colombia, the price was considered as not representative. Also in Türkiye, import volumes of oxygen were low and were considered also unrepresentative. Thus, the Commission resorted to the world average price of imports of oxygen in 2022 as reported in the statistics report available in the request

Annex 21J of the request.

.

(213) Furthermore, import volumes of nitric acid in Colombia were low. Türkiye could not be considered an appropriate source for this benchmark since a high share of imports of nitric acid into Türkiye originated in the PRC. Thus, the Commission resorted to the international price for nitric acid in 2022 available in the request

Annex 21J of the request.

. In the Note, the Commission informed interested parties that, in the production process of the Union industry, nitric acid is both a factor of production and a by-product of the production process of oxalic acid, therefore the same international benchmark was applied to nitric acid as a by-product.

(214) In the comments to the Note, one Union producer expressed reservations regarding the price of the by-product. It claimed that nitric acid used as raw material and is the one obtained as a by-product should not have the same price. The by-product is obtained in the diluted form and therefore its price is lower than the raw material. Therefore, the Commission adjusted the price of nitric acid applicable to the by-product by the ratio of price of diluted nitric acid sold as a by-product to the price of the nitric acid used as a raw material, according to the data provided by the Union producer. The price of the diluted nitric acid constitutes 46 % of the price of nitric acid used as a raw material. Thus, the benchmark for by-product has been adjusted to the level of 1,30 CNY/kg.

(215) Having regard no cooperation of the exporting producers, based on the information provided by the Union producers, for two factors of production, namely sulphuric acid and hydrogen peroxide, the actual costs incurred by these producers represented a negligible share of total raw material costs in the review investigation period. As the value used for these had no appreciable impact on the dumping margin calculations, regardless of the source used, the Commission decided to include those costs into consumables as explained in recital (208).

(216) Normally, domestic transport prices should also be added to these import prices. However, considering the finding in recital (231) as well as 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 of the dumping margin.

Labour

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

https://ilostat.ilo.org/

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

(218) In the calculation of the labour cost in Colombia, the Commission added 12 % contribution to the pension fund and professional risk tax of 2,436 % for the third group risk based on the company activity to which Sucroal SA belongs to

https://safetya.co/normatividad/decreto-768-de-2022/

.

Electricity

(219) For electricity, the Commission used the readily available price from Enel

https://www.enel.com.co/en/people/energy-rates.html

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

Water

(220) The Commission used applicable prices in Colombia as charged by the company that is responsible for water supply, sewage collection and treatment in Bogota, namely ACUEDUCTO

https://www.acueducto.com.co

to determine the prices of water. The applicable unit cost is estimated to amount to 6,59 CNY/m3.

Natural gas

(221) For natural gas, the Commission used the readily available price as published by Gases de Occidente

https://www.gdo.com.co

, the supplier of gas in the region where Sucroal SA is located. The applicable unit cost is estimated to amount to 3,95 CNY/m3 (i.e. the average of the unit cost in the review investigation period).

Manufacturing overhead costs, SG & A, profits and depreciation

(222) 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.

(223) In order to establish an undistorted value of the manufacturing overheads and given the absence of cooperation from the exporting producers, the Commission used facts available in accordance with Article 18 of the basic Regulation. Therefore, based on the data provided by the Union producer, 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, depending on the model produced.

(224) For establishing an undistorted and reasonable amount for SG & A and profit the Commission relied on the financial data of Sucroal SA in 2022, as extracted from the Orbis

http://orbis4.bvdinfo.com/

database.

3.3.1.2.14.

Calculation of the normal value

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

(226) 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 oxalic acid and the verified information provided by the applicant.

(227) Once the undistorted manufacturing cost established, the Commission added the manufacturing overheads, SG & A and profit. Manufacturing overheads were determined based on data provided by the applicant. SG & A and profit were determined based on the financial statements of Sucroal SA for the year 2022 as extracted from the Orbis

http://orbis4.bvdinfo.com/

database (see Section 3.3.1.2.11). The Commission added the following items to the undistorted costs of manufacturing:

Manufacturing overheads, which accounted in total for 20 % of the direct costs of manufacturing,

SG & A and other costs, which accounted for 24,60 % of the Costs of Goods Sold (COGS) of Sucroal SA, and

Profits, which amounted to 27,21 % of the COGS as achieved by Sucroal SA, were applied to the total undistorted costs of manufacturing.

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

3.3.1.3.

Export price

(229) In the absence of cooperation by exporting producers from PRC, the export price was determined based on CIF Eurostat data corrected to ex-works level. Thus, the CIF price was reduced by domestic transport cost, handling and ocean freight based on the evidence provided in the request.

3.3.1.4.

Comparison

(230) The Commission compared the constructed 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.

3.3.1.5.

Dumping calculations

(231) On this basis, the dumping margin was found to be significant for the country (59 %). It was therefore concluded that dumping continued during the review investigation period.

1. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING

4.1.

India

(232) 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 or recurrence of dumping, should the measures be repealed. The following additional elements were analysed: (i) the production capacity and spare capacity in India, (ii) the relation between export prices to third countries and the price level in the Union and (iii) the attractiveness of the Union market.

4.1.1.

Production capacity and spare capacity in India

(233) In the previous expiry review the total capacity of Indian oxalic acid producers was estimated at around 40000 tonnes/year. Furthermore, the Commission found no evidence that any known Indian oxalic acid producer closed down any of their production capacities in the meantime. Based on verified data of the cooperating exporting producers, the Indian producers had capacity utilisation of around 78 %. Therefore, the Commission estimated the spare capacity in India to be around 8500 tonnes, which correspond to at [86 %-105 %] of the total Union free market consumption during the RIP.

4.1.2.

Relation between export prices to third countries and the price level in the Union

(234) The two cooperating Indian companies had significant exports sales to the rest of the world in the RIP.

(235) The verified data of the two cooperating Indian producers, cross-checked with data provided in the review request and data available in GTA, indicate that the average Indian export price to the Union is 11 % higher than the average export price to the rest of the world. Thus, on the basis of export prices to third countries, the dumping margin would be higher than on the basis of export prices to the Union.

4.1.3.

Attractiveness of the Union market

(236) Although the Union is a relatively small market for oxalic acid, it remains attractive to Indian exporting producers. Indeed, as indicated in the recitals above, the Union average price is higher than the rest of the world. The attractiveness is further confirmed by the fact that despite the relatively high level of anti-dumping duties in force, Indian exporting producers continue to export to the Union market.

4.1.4.

Conclusion

(237) The investigation showed that Indian imports continued to enter the Union market at dumped prices during the RIP.

(238) Given the available spare capacity in India, the Indian producers level of prices generally on third markets and the attractiveness of the Union market in terms of prices, it is highly likely that in the absence of measures at least some of the available capacity in India would be used to produce oxalic acid for export to the Union and/or that some exports to third markets would be re-directed to the Union considering the higher prices at the Union market.

(239) Further to the above, the Commission found that the spare capacity in India alone can cover for almost all Union consumption during the RIP and that the Union market is very attractive to Indian exporting producers in view of its prices.

(240) Thus, the Commission concluded that should the measures be allowed to lapse it is likely that Indian companies would export to the Union in larger quantities than currently and at dumped prices. Thus, should the measures lapse, it is likely that dumping will continue or, in any event, recur.

4.2.

China

(241) 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 or recurrence of dumping, should the measures be repealed. The following additional elements were analysed: (i) the production capacity and spare capacity in China, (ii) the relation between export prices to third countries and the price level in the Union, (iii) the attractiveness of the Union market, and (iv) possible absorption capacity of third country markets.

(242) In the absence of cooperation of the Chinese exporting producers, this analysis was made on the basis of best facts available, namely on the basis of the information contained in the review request and publicly available information.

4.2.1.

Production capacity and spare capacity in China

(243) China is by far the world’s largest oxalic acid producing country, with an estimated production of 416500 tonnes in 2022, according to the request

This estimate was based on the production capacity and spare capacity reported in a study commissioned by the applicant.

.

(244) In the previous expiry review, Chinese producers were found to have a combined annual capacity of approximately [150000-200000] tonnes

Recital (60) of Implementing Regulation (EU) 2018/931.

. In the current case, the applicant submitted in the request that this figure was an under-estimation and that, according to a study it commissioned, the total production capacity for oxalic acid in China in 2018 was around 450000 tonnes per year, and rose to 595000 tonnes per year in 2022, representing almost half of world consumption, estimated at 1215000 tonnes in 2022, according to public sources

https://www.chemanalyst.com/industry-report/oxalic-acid-market-2969

.

(245) The applicant also reported that, as part of the overall increase in production capacity, the main Chinese producers also expanded or introduced new capacity, demonstrating an ability to expand production capacity extremely rapidly

Information on the expansion of capacity was included in the study commissioned by the applicant.

.

(246) Based on the request, internal market consumption of oxalic acid in China amounted to about 250000 tonnes in 2022 and Chinese total exports to about 167000 tonnes in 2022

The source for total exports was the IHS database, whereas domestic consumption was estimated on the basis of the production capacity reported in the study commissioned by the applicant and of the export data from IHS.

. There are no imports into China originating in the Union or in India, thus the Chinese domestic market is supplied exclusively by Chinese producers. Consequently, Chinese producers’ spare capacity is estimated at about 180000 tonnes, which amounts to about 30 % of their total capacity in 2022

Spare capacity was estimated on the basis of the study commissioned by the applicant.

, and [18-22] times the Union free market consumption.

(247) Since three quarters of the review investigation period fell in 2022, the Commission considered the above data applicable also to the first quarter of 2023. Indeed, according to the study presented in the request, there are ongoing plan to increase capacity on the part of Chinese producers, and thus 2022 data would correspond to a conservative estimate, as in the first quarter of 2023 additional capacity may have come online.

(248) Based on the above, the Commission concluded that the Chinese exporting producers have significant spare capacities, which would likely be used for exporting oxalic acid at dumped prices to the Union if the measures were allowed to lapse.

4.2.2.

Relation between export prices to third countries and the price level in the Union

(249) In order to analyse the likely behaviour of Chinese exporting producers in the absence of the measures, the Commission examined the price level with regard to Chinese exports sales to the rest of the world. In the absence of cooperation, the Commission used Eurostat and GTA statistics.

(250) In the review investigation period, the average sales price of the Union industry ([1478-1817] EUR/tonne) was higher than the average export price from China to third countries (excluding the EU, 868 EUR/tonne).

(251) Moreover, also the Chinese import price to the Union during the review investigation period (1262 EUR/tonne) was higher than the average export price from China to its top 10 export markets (889 EUR/tonne). Thus, on the basis of export prices to third countries, the dumping margin would be higher than on the basis of export prices to the Union.

(252) Without anti-dumping duties, Chinese exporters could easily export to the Union at prices higher than those to other third country markets, making an increase of export volumes at dumped prices highly likely if the measures were allowed to expire. Chinese exporting producers would be attracted by the higher market prices in the Union, leading to the continuation of dumping.

4.2.3.

Attractiveness of the Union market

(253) Although the Union is a relatively small market for oxalic acid, it remains attractive to Chinese exporting producers in terms of prices. In addition to the anti-dumping duty, Chinese imports into the Union are subject to a normal ad valorem import duty of 6,5 %. but despite this they are still present in the Union market, as reported in recital 267.

4.2.4.

Possible absorption capacity of third country markets

(254) As indicated above, Chinese exporting producers are able to supply third-country markets at extremely low prices. According to the applicant, now these markets are thus likely saturated and so unable to absorb any additional volumes of Chinese exports, as indicated by the rapid switch from traditional country markets identified in the previous expiry review to new countries where China has made strategic investments in rare earth metal purification projects such as Myanmar, Peru and Ivory Coast. However, in the applicant’s view, demand in those countries can only grow as fast as Chinese investment allows, which is unlikely to be as fast as the build-up of new capacity in China

Request, para. 219.

.

(255) Moreover, according to the request, growth in demand abroad for Chinese oxalic acid is unlikely to increase. On the contrary, it is more likely to rapidly decline if China will continue imposing export restrictions on rare earth metals and minerals – the purification of which constitutes one of the uses of oxalic acid – in the context of trade tensions

Request, para. 221. See, by way of example, the export restrictions on gallium and germanium imposed as of 1 August 2023 and the export controls on graphite in place as of 1 December 2023.

.

(256) Therefore, on the basis of the request, the Commission concluded that the possible absorption of Chinese spare capacity by third countries is limited.

4.2.5.

Conclusion

(257) Considering the significant spare capacity in China and taking into account 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 would activate the spare capacity and also redirect exports from third countries towards the Union market at dumped prices and in significant volumes. Thus, the Commission concluded that there was a strong likelihood that the expiry of the anti-dumping measures on imports from China would result in the continuation of dumping, or in any event, recurrence of dumping.

1. INJURY

5.1.

Definition of the Union industry and Union production

(258) The like product was manufactured by two producers in the Union during the period considered, namely Oxaquim and WeylChem. They constitute the Union industry within the meaning of Article 4(1) of the basic Regulation. Taking into account that the data used in the injury analysis was sourced from only two Union producers, the figures established on the basis of this data presented below are given in ranges in order to protect confidentiality of the Union producers.

(259) The total Union production during the review investigation period was established at between 16000 and 20000 tonnes. The Commission established the Union production on the basis of the verified questionnaire reply from Oxaquim and the questionnaire reply submitted by WeylChem. As explained in recital (19), the Commission could not verify the questionnaire reply from WeylChem. Nevertheless, the Commission cross-checked data provided in that questionnaire reply of WeylChem with the corresponding data available in the request for review and gained reasonable assurance that it could be used to establish injury indicators relevant for the whole Union industry, namely Union production, Union consumption and macroeconomic indicators. The other injury indicators were established on the basis of the verified questionnaire reply of Oxaquim.

(260) The two Union producers represented 100 % of the total Union production of the like product.

5.2.

Union consumption

(261) The Commission established the Union consumption on the basis of questionnaire replies from the Union producers and Eurostat import data.

(262) Union consumption developed as follows:

Table 2

Union consumption (tonnes)

Source:

Eurostat, Union producers.

202020212022Review investigation periodTotal Union consumption[8371-10295][10190-12533][9986-12282][9454-11627]Index100122119113Captive market consumption[1072-1318][1474-1812][1409-1732][1382-1699]Index100137131129Free market consumption[7299-8977][8717-10721][8578-10550][8072-9928]Index100119118111

(263) Union free market consumption increased by 11 % over the period considered. In 2020, Union consumption was low due to the economic slowdown caused by the Covid-19 pandemic. In 2021 and 2022, it returned to the pre-pandemic level, while during the review investigation period it decreased due to lower sales volume of the Union industry caused by temporary problems with the supply of one of the main raw materials used to produce oxalic acid, which temporarily disrupted the production process.

(264) Oxalic acid was used internally by one of the Union producers to manufacture other products. Captive consumption increased by 29 % over the period considered, following a similar trend as the free market consumption.

5.3.

Imports from the countries concerned

5.3.1.

Volume and market share of the imports from the countries concerned

(265) The Commission established the volume of imports on the basis of Eurostat import data. The market share of the imports was established on the basis of this data as a percentage of Union free market consumption.

(266) Imports into the Union from the countries concerned developed as follows:

Table 3

Import volume and market share

Source:

Eurostat.

202020212022Review investigation periodVolume of imports from the countries concerned (tonnes)98467213881565Index10068141159Market share (%)11,76,714,116,9Index10057120144Volume of imports from the PRC (tonnes)77136210671149Index10047138149Market share (%)9,23,610,812,4Index10039118135Volume of imports from India (tonnes)213310321416Index100146150195Market share (%)2,53,13,34,5Index100122128176

(267) Volume of imports from the countries concerned increased from 984 tonnes in 2020 to 1565 tonnes in the review investigation period, i.e. by 59 %.

(268) Volume of imports from the PRC increased from 771 tonnes in 2020 to 1149 tonnes in the review investigation period, i.e. by 49 %.

(269) Volume of imports from India increased from 213 tonnes in 2020 to 416 tonnes in the review investigation period, i.e. by 95 %.

(270) During the same period, the Union free market consumption increased by only 11 %. As a result, the exporting producers from the countries concerned increased their market share from 9,2 % to 12,4 % for the PRC, from 2,5 % to 4,5 % for India and from 11,7 % to 16,9 % from both countries concerned over the period considered.

5.3.2.

Prices of the imports from the countries concerned and price undercutting

(271) The Commission established the prices of imports on the basis of Eurostat import data. Price undercutting of the imports was established on the basis of verified questionnaire replies for Indian producers and on the basis of Eurostat import data for the PRC as there was no cooperation from that country.

(272) The weighted average price of imports into the Union from the countries concerned developed as follows:

Table 4

Import prices (EUR/tonne)

Source:

Eurostat.

202020212022Review investigation periodIndia and PRC77583012711238Index100107164160PRC74076912881262Index100104174171India90390112171170Index100100135130

(273) The average prices of imports from the countries concerned on the Union market increased by 60 % over the period considered.

(274) The average price of imports from India increased by 30 % and the average price of imports from the PRC increased by 71 % over the period considered.

(275) For India the Commission determined the price undercutting during the review investigation period by comparing:

(i) the weighted average sales prices per product type of the cooperating Union producer charged to unrelated customers on the Union market, adjusted to an ex-works level; and

(ii) the corresponding weighted average prices per product type of imports from the cooperating Indian producers to the first independent customer on the Union market established on a cost, insurance and freight (CIF) basis.

(276) For China, the Commission determined the price undercutting during the review investigation period by comparing the average sales price of the cooperating Union producer charged to unrelated customers on the Union market, adjusted to an ex-works level with the average price of imports from the PRC on a CIF basis. Due to the non-cooperation from the PRC, the import price from China was established based on Eurostat data which are provided at CIF Union frontier level.

(277) The CIF prices were then adjusted for the post-importation costs, in particular conventional customs duty, customs administration costs and anti-dumping duty.

(278) The result of the comparison was expressed as a percentage of the cooperating Union producer’s turnover during the review investigation period. It showed a weighted average undercutting margin of [5-25] % by imports from India and undercutting margin of [4-10] % by imports from the PRC on the Union market. The cumulated undercutting margin by imports from the countries concerned was [6–12] %.

5.4.

Imports from third countries other than India and the PRC

(279) The imports of oxalic acid from third countries other than India and the PRC were mainly from Taiwan.

(280) The total volume of imports into the Union as well as the market share and price trends for imports of the product under review from other third countries developed as follows:

Table 5

Imports from third countries

Source:

Eurostat.

Country202020212022Review Investigation periodTaiwanVolume (tonnes)154144190140Index1009312491Market share (%)1,81,41,91,5Average price (EUR/tonnes)2655252235153436Index10095132129Other third countriesVolume (tonnes)1556103112Index100388708771Market share (%)0,20,61,01,2Average price (EUR/tonnes)12356884782589434Index100726776Total of all third countries except the countries concernedVolume (tonnes)169200293252Index100119174150Market share (%)2,02,02,92,7Average price (EUR/tonnes)3491429951776099Index100123148175

(281) Imports from Taiwan decreased during the period considered by 9 %. Taiwan’s market share decreased by 0,3 percentage points.

(282) Imports from third countries except the countries concerned increased by 50 % over the period considered. Its share in the Union market increased from 2 % in 2020 to 2,7 % during the same period.

(283) The average price of imports from third countries except the countries concerned increased by 75 % during the period considered and was much higher than the average price of Union industry.

5.5.

Economic situation of the Union industry

5.5.1.

General remarks

(284) 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.

5.5.2.

Macroeconomic indicators

5.5.2.1.

Production, production capacity and capacity utilisation

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

Table 6

Production, production capacity and capacity utilisation

Source:

Union producers.

202020212022Review investigation periodProduction volume (tonnes)[17701-21770][19712-24243][17018-20930][16353-20113]Index1001119692Production capacity (tonnes)[23490-28890][23490-28890][23490-28890][23490-28890]Index100100100100Capacity utilisation (%)75,483,972,469,6Index1001119692

(286) Production volume in 2021 increased by 11 % compared to 2020. In 2020, production volume was below the normal level due to temporary closure of plant caused by the Covid-related restrictions. Thus, the increase in 2021 was a mere return of production volume to the normal, pre-Covid level. In 2022 and during the review investigation period, production volume decreased due to temporary problems with supply of one of the main raw materials, which disrupted the production process, as mentioned in recital (263), and due to lower demand for European oxalic acid, caused by increased and relatively cheaper imports from the PRC and India. Overall, production volume decreased by 8 % during the period considered.

(287) As production capacity did not change over the period considered, capacity utilisation fluctuated in line with changes in production volume.

5.5.2.2.

Sales volume and market share

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

Table 7

Sales volume and market share

Source:

Eurostat, Union producers.

202020212022Review investigation periodTotal sales volume on the Union market (tonnes)[6296-7743][7958-9787][7115-8751][6492-7984]Index100126113103Market share (%)86,391,383,080,4Index1001069693

(289) Sales volume developed in line with production volume and there were no significant stock movements (except in 2021). Thus, sales volume increased in 2021, thanks to a post-Covid recovery, and then decreased due to production disruptions caused by temporary problems with supply of one of the main raw materials, as mentioned in recital 286. Overall, during the whole period considered, sales volume increased by 3 %.

(290) As during the same period Union consumption increased at a higher rate than the Union producers’ sales volume, namely at 11 %, the market share of Union producers decreased from 86,3 % in 2020 to 80,4 % in the review investigation period.

5.5.2.3.

Growth

(291) While the Union consumption increased by 11 % over the period considered, the sales volume of the Union industry increased by only 3 % during the same period. As a result, Union industry’s share in the EU market decreased by almost six percentage points.

5.5.2.4.

Employment and productivity

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

Table 8

Employment and productivity

Source:

Union producers.

202020212022Review investigation periodNumber of employees[41-51][40-50][40-50][41-50]Index100979899Productivity (unit/employee)[372-457][425-523][366-450][348-428]Index1001149894

(293) Employment remained stable during the period considered.

(294) Productivity was established as production volume divided by employment. Since employment remained stable over the period considered the trend of productivity was determined by the development of production volume. Therefore, the trend of profitability followed the trend of production volume explained in recital (286).

5.5.2.5.

Magnitude of the dumping margin and recovery from past dumping

(295) During the review investigation period, the individual dumping margins found for the cooperating exporting producers in India and for the PRC were still substantial (see recitals (47) and (231) above).

(296) However, despite the fact there was still dumping for India and for the PRC, the analysis of the injury indicators shows that the measures in place had a positive impact on the Union industry.

5.5.3.

Microeconomic indicators

5.5.3.1.

Prices and factors affecting prices

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

Table 9

Sales prices and cost of production in the Union (EUR/tonne)

Source:

Oxaquim.

202020212022Review investigation periodAverage unit sales price in the Union on the total market[787-967][819-1007][1418-1744][1478-1817]Index100104180188Unit cost of production[752-924][842-1036][1464-1800][1454-1788]Index100112195193

(298) The average unit sales price in the Union increased by 88 % during the period considered. This was due to the increase of the unit cost of production by 93 % during the same period.

(299) The unit cost of production increased due to the increase of cost of main raw materials (sugar and nitric acid) as well as of energy and transport costs.

5.5.3.2.

Labour costs

(300) The average labour costs of the verified Union producer developed over the period considered as follows:

Table 10

Average labour costs per employee

Source:

Oxaquim.

202020212022Review investigation periodAverage labour costs per employee (EUR)[35624-43813][37647-46301][39951-49135][41496-51036]Index100106112116

(301) Between 2020 and the review investigation period, the average labour costs per employee increased by 16 % due to the inflation.

5.5.3.3.

Inventories

(302) Stock levels of the cooperating Union producer developed over the period considered as follows:

Table 11

Inventories

Source:

Oxaquim.

202020212022Review investigation periodClosing stocks (tonnes)[239-295][203-250][137-168][224-275]Index100855793Closing stocks as a percentage of production2,21,61,11,9Index100725183

(303) Given the nature of the product concerned, stocks are very small. Since the product concerned deteriorates quickly, the producers produce goods for almost immediate shipment. Therefore, this indicator is not very meaningful in order to describe the Union industry condition.

5.5.3.4.

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

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

Table 12

Profitability, cash flow, investments and return on investments

Source:

Oxaquim.

202020212022Review investigation periodProfitability of sales in the Union to unrelated customers (% of sales turnover)[10,1-12,4][4,4-5,5][2,6-3,2][5,7–7,0]Index100442656Cash flow (EUR)[637139-783607][635883-782063][1849358-2274498][1570392-1931401]Index100100290246Investments (EUR)[1009137-1241123][801282-985484][733134-901671][742004- 912579]Index100797374Return on investments (%)[3,2-3,9][1,8-2,2][2,0-2,5][4,2-5,2]Index1005664133

(305) The Commission established the profitability of the cooperating Union producer by expressing the pre-tax profit of the sales of the like product to unrelated customers in the Union as a percentage of the turnover of these sales. Profitability fluctuated in line with the development of the unit sales price and unit cost of production described in recitals 298 and 299. Between 2020 and 2022, the unit sales price increased slower than the unit cost of production and as a result profitability decreased. During the review investigation period the unit sales price continued to grow, whereas the unit cost of production stabilised, and therefore the profitability improved. Overall, the cooperating Union producer remained profitable during the whole period considered.

(306) The net cash flow is the ability of the Union producers to self-finance their activities. The cash flow was stable in 2020 and 2021 and increased thereafter so that during the review investigation period it was 146 % higher than in 2020. This was due to the increase of depreciation from 2022 onwards. In 2020 and 2021, the Union producer recognised a lower depreciation amount than would have been normally applicable due to lower utilisation of fixed assets resulting from the Covid-related restrictions. In the following periods, the company booked the full depreciation amount.

(307) Investments decreased by 26 % over the period considered. However, since the absolute value of investments was low, this trend is not meaningful for the assessment of the financial performance of the Union producer.

(308) The return on investments is the pre-tax profit of the sales to unrelated customers in the Union in percentage of the net book value of assets related to the production of the product under review. Despite decreasing profit, return on investments increased by 33 % over the period considered as net book value of assets went down.

5.6.

Conclusion on injury

(309) Imports from the countries concerned increased by 59 % over the period considered, due to which Indian and Chinese producers increased their market share from 11,7 % in 2020 to 16,9 % in the review investigation period. Their prices undercut the Union industry prices by [4-25] %.

(310) Certain injury indicators, like production volume and market share, showed a negative trend. Production volume decreased by 8 % due to temporary problems with the supply of one of the raw materials. Market share decreased by almost six percentage points but remained at over 80 %.

(311) The trend of other injury indicators was positive. Union industry sales volume increased by 3 % and employment remained stable over the period considered. Additionally, during the same period average sales price in the Union increased by 88 %. This was slightly below the increase of the unit cost of production, but sufficient to maintain profitability over the whole period considered, though profitability was below the target profit (8 %) in the RIP. Cash flow improved significantly, increasing by 146 % between 2020 and the review investigation period. Return on investments also improved.

(312) On the basis of the above, the Commission concluded that the Union industry did not suffer material injury within the meaning of Article 3(5) of the basic Regulation during the review investigation period.

(313) In their comments on the final disclosure, Oxaquim submitted that data ranges provided in some tables in the Regulation, in particular the tables related to the economic performance of the Union industry, were too narrow and suggested using indexation instead of ranges arguing that indexes would show the trend without giving the magnitude order for each value.

(314) The Commission considered that it was necessary to present not only the trend but also the magnitude of the injury indicators to ensure proper understanding by interested parties of the injury assessment. To this end, the Commission had to use both indexes and ranges. The Commission defined the ranges in such a way that they enable interested parties to understand its reasoning, while at the same they are wide enough to protect confidential business information. Therefore, the claim was rejected.

1. LIKELIHOOD OF RECURRENCE OF INJURY

(315) The Commission concluded in recital (312) 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 originally caused by the dumped imports from India and the PRC if the measures against were allowed to lapse.

(316) In this regard, the Commission examined (i) the production capacity and spare capacity in India and the PRC, (ii) relation between export prices to third countries and the price level in the Union, (iii) likely price levels of imports from India and the PRC in the absence of anti-dumping measures and their impact on the Union industry, (iv) the attractiveness of the Union market and (v) the impact of Indian and Chinese imports on the situation of the Union industry should measures be allowed to lapse.

6.1.

Production capacity and spare capacity in India and the PRC

(317) As explained in recital (244), the total production capacity of oxalic acid in China was 595000 tonnes in 2022. After deduction of domestic demand and total exports, the Chinese producers’ free capacity available for the Union market is estimated at about 180000 tonnes, which is [18-22] times more than the total Union free market consumption (see recital (246)).

(318) As regards India, the free capacity available for the Union market is estimated at 8500 tonnes as stated in recital (233), that is to say [86-105] % of the total Union free market consumption.

(319) Therefore, it can be concluded that there is substantial spare capacity both in China and India, which can be used to increase exports to the Union market should the measures in force be allowed to expire.

6.2.

Relation between export prices to third countries and the price level in the Union

(320) As explained in recitals (250) and (251), the average export price from China to third countries (868 EUR/tonne) was much lower than its average export price to the Union (1262 EUR/tonne) and the average sales price of the Union industry ([1478-1817] EUR/tonne) during the review investigation period.

(321) As regards India, during the review investigation period, the average export price to the Union was 11 % higher than to the rest of the world as stated in recital (235).

(322) Thus, the Commission concluded that the Chinese and Indian exporting producers would have an economic incentive to shift exports from third countries to the Union should the measures lapse. In such case they would be able to export to the Union at prices higher than those to other third country markets but still below the Union industry’s price level.

6.3.

Likely price levels of imports from India and the PRC in the absence of anti-dumping measures and their impact on the Union industry

(323) Regarding import price levels, the investigation showed that despite the anti-dumping measures in force, there was still an undercutting of Union industry’s prices during the review investigation period. Should the measures in force be repealed and assuming that import prices from the countries concerned and the price of the Union industry would remain the same as during the review investigation period, the undercutting margin would increase to [15 %-40 %]. In such case, in order to remain competitive, the Union industry would have to lower its sales prices below the profitability level.

6.4.

Attractiveness of the Union market

(324) Taking into account the price analysis in recitals (320) to (323) the Chinese and Indian exporting producers would have a high incentive to divert their exports to the Union where they would achieve higher prices, while still being able to significantly undercut the Union industry sales price. In addition, they would be able to use their spare capacities to increase export quantities to the Union market.

(325) The attractiveness of the Union market is further confirmed by the fact that despite the relatively high level of anti-dumping duties in force which come in addition to the conventional import duty of 6,5 %, the Chinese and Indian exporting producers continued to export to the Union and even increased their market share.

(326) It is therefore concluded that the exporting producers in India and the PRC have the potential and incentive to substantially increase the volume of their exports to the Union at dumped prices significantly undercutting the prices of the Union industry, should measures be allowed to lapse.

6.5.

Impact on the Union industry

(327) The Union industry, under the scenario that it would keep the current price level, will not be able to maintain its sales volume and market share against the dumped imports from China and India. It is highly likely that, should the measures be allowed to lapse, the Chinese and Indian producers’ market share would increase rapidly. This would be at the expense of the Union industry whose prices are higher. Losing sales volume would further decrease capacity utilisation rate and, consequently, increase in the average unit cost of production. This would reduce profitability, which given its currently low level, would turn the Union industry unprofitable.

(328) If the Union industry decided to lower its prices in an attempt to keep its sales volume and market share, its financial situation would also quickly deteriorate. The price decrease would have to be significant to match the prices of the Indian and Chinese exporters as, should the measures be allowed to lapse, they would undercut the Union industry prices by [15 %-40 %] (without the anti-dumping duties). Such a significant price decrease would make the Union industry heavily loss-making taking into account that its profit margin is at a single-digit level.

(329) Under both scenarios, the expiry of the measures would have a negative impact on the Union industry, worsening its already fragile financial situation and ultimately threatening its viability.

6.6.

Conclusion

(330) On this basis, it is concluded that the absence of measures would in all likelihood result in a significant increase of dumped imports from India and the PRC at injurious prices and material injury would be likely to recur.

6.7.

Union Interest

(331) 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 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.

6.8.

Interest of the Union industry

(332) The investigation revealed that although the Union industry did not suffer material injury, it experienced certain negative consequences of imports from India and the PRC, such as loss of market share, and its financial situation was fragile considering decreasing profitability. Should the measures against India and the PRC be repealed it is likely that the injury would recur as the Union industry would be exposed to significant volumes of imports exerting significant price pressure. As a consequence, the economic situation of the Union industry would likely deteriorate significantly for the reasons described in recitals 327 and 328. On the contrary, maintaining the measures would bring more certainty to the market, allowing the Union industry to strengthen its economic situation and improve prospects of a long-term viability.

(333) On this basis the Commission concluded that the continuation of the anti-dumping measures in force would be in the interest of the Union industry.

6.9.

Interest of unrelated importers

(334) All known unrelated importers were contacted at the initiation of the investigation. The Commission did not receive cooperation from any unrelated importers during the investigation.

(335) On this basis, there were no indications that the maintenance of the measures would have a significant negative impact on the importers outweighing the positive impact of the measures on the Union industry.

6.10.

Interest of users

(336) Jervois Finland Oy (Jervois), the sole user cooperating in the investigation, opposed the continuation of the anti-dumping measures.

(337) Jervois used oxalic acid as a raw material to produce one of its products. Oxalic acid accounted for around [5-9] % of total cost of production of this product which in turn generated around [9-13] % of total company’s turnover. Therefore, the impact of the cost of oxalic acid on the overall financial performance of Jervois was very limited.

(338) In addition, Jervois used oxalic acid imported from the countries concerned to manufacture products which it sold outside the EU. Therefore, it was eligible to import under the inward processing system and hence not pay the anti-dumping duty. In such case, the measures in force would not have any direct effect on the financial situation of Jervois.

(339) In view of the above and taking into account that the Commission did not receive comments from other users, maintaining the anti-dumping measures would not have a negative impact on Union users outweighing the positive impact of the measures on the Union industry.

(340) In their comments on the final disclosure, Oxaquim claimed that the Commission’s statement in recital (339) of the Regulation that it did not receive any other comments from the Union users, except from Jervois Finland Oy, was not correct. According to Oxaquim several Union users made representations in support of the continuation of the anti-dumping measures. Oxaquim requested the Commission to mention the number of such Union users and their support for the continuation of the measures.

(341) The Commission noted that it received comments from two distributors of oxalic acid. They expressed support for the extension of the anti-dumping measures on imports of oxalic acid from China and India. In addition, the Commission received sensitive comments from three other parties: one distributor, one user and one trader and user. The Commission requested these parties to submit non-sensitive version on their comments, but the parties failed to do so. Therefore, the Commission could not disclose their position in the Regulation.

6.11.

Conclusion on Union interest

(342) 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 oxalic acid originating in India and the PRC.

1. ANTI-DUMPING MEASURES

(343) 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 oxalic acid from India and the PRC should be maintained.

(344) To minimise the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual anti-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.

(345) 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.

(346) 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.

(347) The individual company anti-dumping duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in the countries concerned 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.

(348) 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.

(349) 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.

(350) In their comments to the final disclosure, Oxaquim claimed that oxalic acid made by certain Chinese producers was being imported into the Union market via the company Yuanping, taking advantage of this company’s lower individual duty rate. Oxaquim requested the Commission to consider withdrawing Yuanping’s individual duty rate on the basis that this company is no longer a genuine oxalic acid producer.

(351) The Commission noted that, in the context of an expiry review, measures cannot be terminated for an individual company only. Therefore, this comment was rejected.

(352) 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.

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

HAS ADOPTED THIS REGULATION:

Article 1

1. A definitive anti-dumping duty is imposed on imports of oxalic acid, whether in dihydrate (CUS number 0028635-1 and CAS number 6153-56-6) or anhydrous form (CUS number 0021238-4 and CAS number 144-62-7) and whether or not in aqueous solution, currently falling under CN code ex29171100 (TARIC code 2917110091) and originating in India and 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:

Country of originCompanyAnti-dumping dutyTARIC additional codeIndiaPunjab Chemicals and Crop Protection Limited22,8 %B230Star Oxochem Pvt Ltd31,5 %B270All other imports originating in India43,6 %B999People’s Republic of ChinaShandong Fengyuan Chemicals Stock Co., Ltd; Shandong Fengyuan Uranus Advanced Material Co., Ltd37,7 %B231Yuanping Changyuan Chemicals Co., Ltd14,6 %B232All other imports originating in the People’s Republic of China52,2 %B999

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. Until 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, 5 September 2024.

For the Commission

The President

Ursula von der Leyen