title: Council Implementing Regulation (EU) No 508/2013 of 29 May 2013 imposing a definitive anti-dumping duty on imports of certain tungsten electrodes originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009

text:
               4.6.2013

               EN

               Official Journal of the European Union

               L 150/1

         COUNCIL IMPLEMENTING REGULATION (EU) No 508/2013
   of 29 May 2013
   imposing a definitive anti-dumping duty on imports of certain tungsten electrodes originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community (1) (‘the basic Regulation’), and in particular Article 9(4) and 11(2), (5) and (6) thereof,
   Having regard to the proposal from the European Commission after consulting the Advisory Committee,
   Whereas:
   A.   PROCEDURE

   1.   Measures in force

               (1)

               Following an investigation (the ‘original investigation’) the Council, by Regulation (EC) No 260/2007 (2), imposed a definitive anti-dumping duty on imports of certain tungsten electrodes originating in the People’s Republic of China (‘the PRC’) (the ‘original measures’). The measures took the form of an ad valorem duty of 63,5 % for all companies except three Chinese exporting producers to whom individual duties were granted.

         2.   Initiation of an expiry review

               (2)

               On 9 March 2012, the Commission announced by a notice (‘Notice of initiation’) (3), published in the Official Journal of the European Union, the initiation of an expiry review of the anti-dumping measures applicable to imports of certain tungsten electrodes originating in the PRC.

               (3)

               The review was initiated following a substantiated request lodged by Eurométaux (‘the applicant’) on behalf of a Union producer representing more than 50 % of the Union production of certain tungsten electrodes.

               (4)

               The request was based on the grounds that the expiry of the measures would be likely to result in a continuation of dumping and injury to the Union industry.

         3.   Investigation

   3.1.   Review investigation period and the period considered

               (5)

               The investigation of continuation or recurrence of dumping covered the period from 1 January 2011 to 31 December 2011 (‘the review investigation period’ or ‘RIP’). The examination of the trends relevant for the assessment of the likelihood of continuation or recurrence of injury covered the period from 1 January 2008 to the end of the RIP (‘the period considered’).

         3.2.   Parties concerned by the investigation

               (6)

               The Commission officially advised the applicant, the other known Union producer, exporting producers in the PRC, unrelated importers and users known to be concerned, producers in the potential analogue countries and the representatives of the PRC of the initiation of the expiry review. Interested parties were given the opportunity to make their views known in writing and to request a hearing within the time limit set out in the Notice of initiation.

               (7)

               All interested parties, who so requested and showed that there were particular reasons why they should be heard, were granted a hearing.

               (8)

               In view of the apparently large number of exporting producers in the PRC and unrelated importers in the Union involved in the investigation, sampling was envisaged in the Notice of initiation, in accordance with Article 17 of the basic Regulation. In order to enable the Commission to decide whether sampling would be necessary and, if so, to select a sample, the above parties were requested, pursuant to Article 17 of the basic Regulation, to make themselves known within 15 days of the publication of the Notice of initiation and to provide the Commission with the information requested in the Notice of initiation.

               (9)

               Three importers made themselves known. None of them, however, imported certain tungsten electrodes originating in the PRC during the RIP.

               (10)

               As only two exporting producers from the PRC came forward with the requested information it was not necessary to select a sample of exporting producers.

               (11)

               The Commission sent questionnaires to all parties known to be concerned and to those who made themselves known within the deadlines set in the Notice of initiation. Replies were received from two Union producers, two exporting producers in the PRC and one producer in the USA.

               (12)

               The Commission sought and verified all the information it deemed necessary for the determination of the likelihood of continuation or recurrence of dumping and resulting injury and of the Union interest. Verification visits were carried out at the premises of the following companies:

                           (a)

                              Union producers

                                       —

                                       Plansee SE, Austria

                                       —

                                       Gesellschaft für Wolfram Industrie mbH, Germany

                           (b)

                              Exporting producers in the PRC

                                       —

                                       Shandong Weldstone Tungsten Industry Co., Ltd, Zibo

                                       —

                                       Shaanxi Yuheng Tungsten & Molybdenum Industrial Co., Ltd, Baoji

                           (c)

                              Related company to one cooperating exporting producer in the PRC

                                       —

                                       Shanghai Weldstone Asia Co., Ltd, Shanghai

                           (d)

                              Related companies to one cooperating exporting producer in the European Union

                                       —

                                       Weldstone GmbH, Wilnsdorf, Germany

                                       —

                                       Binzel Benelux bvba, Eke – Nazareth, Belgium

                           (e)

                              Analogue Country

                                       —

                                       Global Tungsten & Powders Corp, Towanda, USA.

         B.   PRODUCT UNDER REVIEW AND LIKE PRODUCT

               (13)

               The product concerned is the same as that covered by Regulation (EC) No 260/2007, namely tungsten welding electrodes, including tungsten bars and rods for welding electrodes, containing 94 % or more by weight of tungsten, other than those obtained simply by sintering, whether or not cut to length, originating in the PRC (‘TE’ or ‘the product under review’), currently falling within CN codes ex 8101 99 10 and ex 8515 90 00.

               (14)

               The product under review is used in welding and similar processes. TE are used in a wide variety of industrial sectors such as construction, shipbuilding, automobile manufacturing, marine, chemical and nuclear engineering, aerospace as well as oil and gas pipelines. Based on the physical and chemical characteristics and the substitutability of the different types of the product from the perspective of the user, all TE are considered to constitute a single product for the purpose of this proceeding.

               (15)

               The investigation confirmed that, as in the original investigation, the product under review and that manufactured and sold on the domestic market of the PRC, as well as that produced and sold by the Union industry on the Union market and that produced and sold on the analogue country market have the same basic physical and technical characteristics and the same basic uses and are therefore considered to be alike within the meaning of Article 1(4) of the basic Regulation.

         C.   LIKELIHOOD OF A CONTINUATION OR A RECURRENCE OF DUMPING

   1.   Preliminary remarks

               (16)

               In accordance with Article 11(2) of the basic Regulation, it was examined whether dumping was currently taking place and whether the expiry of the existing measures would be likely to lead to a continuation or recurrence of dumping.

               (17)

               As explained above, it was not necessary to select a sample of exporting producers in the PRC. The two cooperating companies covered the imports of product concerned from the PRC to the Union in a range of 80 % to 85 % during the RIP. On this basis, it was concluded that cooperation was high.

               (18)

               One of the cooperating exporting producers benefited from market economy treatment (‘MET’) in accordance with Article 2(7)(c) of the basic Regulation, while the second benefited from individual treatment (‘IT’) in accordance with Article 9(5) of the basic Regulation, granted to them during the original investigation. It is recalled that in the context of investigations in accordance with Article 11(2) of the basic Regulation, MET and IT are not reconsidered. A third company, who did not cooperate in the current expiry review, was granted IT in the original investigation.

         2.   Dumping of imports during the RIP

   2.1.   Analogue country

               (19)

               Since the PRC is an economy in transition and in accordance with the provisions of Article 2(7)(a) of the basic Regulation, normal value for exporting producers not granted market economy treatment has to be determined on the basis of the price or constructed value in an appropriate market economy third country (‘analogue country’).

               (20)

               As in the original investigation, the USA was proposed as analogue country in the Notice of initiation for the purpose of establishing normal value. Interested parties were given the opportunity to comment on the appropriateness of this choice. No comments were received in this regard.

               (21)

               The Commission also examined whether other countries could be a reasonable choice of an analogue country and identified other third countries from which imports of tungsten electrodes were recorded in Eurostat. Potential known producers in these countries were contacted and invited to cooperate in the investigation. However, no cooperation was obtained.

               (22)

               It was considered that the USA was representative as a reference market, especially in view of the openness and competitiveness of their domestic market. The USA was used also as an analogue country in the original investigation. No new or changed circumstances which would justify a change appeared to exist nor were any such circumstances communicated to the Commission.

               (23)

               Therefore, the USA has been used as an analogue market economy country for the purpose of this review. The only known USA producer was contacted and agreed to cooperate, to reply to the questionnaire and to accept a verification visit. The verified sales and production figures of this company have been used for the determination of the normal value for companies not granted MET during the original investigation.

         2.2.   Normal value

               (24)

               For the company granted MET in the original investigation, normal value has been established based on its data. In accordance with Article 2(2) of the basic Regulation, it was examined whether the domestic sales of TE to independent customers were representative during the RIP, i.e. if the sales volume of the product intended for domestic consumption represented 5 % or more of their exports of the product under review to the Union.

               (25)

               It was subsequently examined whether the domestic sales of the like product could be regarded as being made in the ordinary course of trade pursuant to Article 2(4) of the basic Regulation, by establishing the proportion of profitable sales to independent customers on the domestic market.

               (26)

               For the types of the product concerned where the domestic sales were representative and made in the ordinary course of trade, normal value was established on the prices paid by independent customers in the exporting country. For the remaining types of the product under review the normal value had to be constructed in accordance with Article 2(3) of the basic Regulation. Therefore, the established normal value was calculated using the company’s cost of manufacturing and adding selling, general and administrative costs (SG&A) and profit achieved on the domestic sale made in the ordinary course of trade in accordance with Article 2(6) of the basic Regulation.

               (27)

               Following disclosure, one party argued that the methodology used to determine SG&A expenses was different from the one used in the original investigation which may have had an impact on the determination of the profit margin used to calculate the constructed normal value in accordance with Article 2(6) of the basic Regulation. Further to the information already previously submitted in the investigation the party did not substantiate its claim by any evidence. It is noted that in accordance with Article 2(5) of the basic Regulation SG&A expenses were allocated on turnover basis and that this methodology was also used in the original investigation.

               (28)

               Profit used in the initial investigation was not from the OCOT test (ordinary course of trade) as none of the exported types of the product concerned were sold on the domestic market in the ordinary course of trade. The current expiry review showed that some types of the product concerned were profitable and therefore, in compliance with Article 2(3) and (6) of the basic Regulation, profit of these profitable transactions was used for constructing the normal value.

               (29)

               As far as the company not granted MET in the original investigation is concerned, pursuant to Article 2(7)(a) of the basic Regulation, normal value was established on the basis of information collected from the cooperating producer in the analogue country. Domestic sales of the producer in the analogue country were found to be made in sufficient quantities and in the ordinary course of trade and could thus be used as a basis to determine normal value for the company not granted MET.

         2.3.   Export price

               (30)

               Regarding the company granted MET, all export sales to the Union were made via related importers and subsequently resold to related and unrelated companies in the Union. The export price was therefore constructed, pursuant to Article 2(9) of the basic Regulation, on the basis of the price at which the imported products were first resold to an independent buyer, duly adjusted for all costs incurred between importation and resale, as well as a reasonable margin for SG&A and profits. In this regard, the related companies’ own SG&A costs were used.

               (31)

               Following disclosure one party argued that when determining SG&A of the related importers, certain expenses were taken into consideration that were related to the sales of other products than the product concerned and that these expenses should therefore be excluded. It is noted that the verified SG&A expenses as provided by the companies concerned were taken into consideration when constructing the export price in accordance with Article 2(9) of the basic Regulation. The claim that the SG&A expenses reported included SG&A expenses from sales of other products was not supported by any evidence and had therefore to be rejected.

               (32)

               In addition, the comments submitted by an interested party on export prices were based on an erroneous quotation of the relevant currency. Therefore this claim was rejected.

               (33)

               As far as the profit margin is concerned, none of the unrelated importers in the Union cooperated. In the original investigation, the profit margin of the related importers was used, based on the fact that the activities of the unrelated importers were not sufficiently comparable to that of the related importer concerned. The investigation showed that the activities of the related importer were the same during the RIP as during the investigation period of the original investigation, i.e. the majority of the TE imported was further integrated into the main product produced by the group, the welding torch. It should also be noted that the TE are of minor value compared to the end-product. On this basis and as in the original investigation it was concluded that the related importer’s own profit margin would constitute an accurate basis for a profit margin to construct the export price.

               (34)

               Regarding the company granted IT in the original investigation, all export sales to the Union were made directly to independent customers established in the Union. In accordance with Article 2(8) of the basic Regulation, the export price was therefore established on the basis of the prices actually paid or payable.

               (35)

               The determination of the export price of all other producers established in the PRC was based on imports statistics available in the Article 14(6) database.

               (36)

               In accordance with Article 11(10) of the basic Regulation, export prices were established by deducting the anti-dumping duties paid, as none of the parties submitted any evidence that the duty was duly reflected in resale prices and subsequent selling prices in the Union market.

         2.4.   Comparison

               (37)

               The comparison between normal value and export price was made on an ex-works basis.

               (38)

               For the purpose of ensuring a fair comparison between the normal value and the export price of the both cooperating exporting producers, and in accordance with Article 2(10) of the basic Regulation, due allowance in the form of adjustments was made with regard to differences in transport, insurance and credit costs which affected prices and price comparability.

         2.5.   Dumping margin

               (39)

               As provided for under Article 2(11) of the basic Regulation, the dumping margin was established on the basis of a comparison of the weighted average normal value with the weighted average export price.

               (40)

               For the cooperating exporting producer granted MET in the original investigation this comparison showed that this company continued dumping at significant levels.

               (41)

               For the cooperating exporting producer granted IT in the original investigation as well as country-wide dumping margin applicable to all other non-cooperating exporting producers in the PRC showed a significant level of dumping even higher than in the original investigation.

         3.   Development of imports should measures be repealed

   3.1.   Preliminary remark

               (42)

               Further to the finding of the existence of dumping during the RIP, the likelihood of continuation of dumping should measures be repealed was investigated.

               (43)

               In this regard, it should be noted that the cooperating exporting producers represented only around 10 % of the total production capacity in the PRC. Therefore, findings had to be largely based on information submitted in the review request as well as publicly available information. The export price behaviour of Chinese producers to other third country markets, the Chinese production capacity as well as available spare capacities and the attractiveness of the Union market for Chinese exporters were considered in particular.

         3.2.   Export price behaviour of Chinese producers to other third country markets

               (44)

               As far as exports to other third country markets are concerned, it should be noted that the statistical information available from Chinese public databases covers a broader product scope than the product under review and therefore no meaningful analysis of quantities exported to other markets or prices on these markets could be made. The two cooperating producers from the PRC did not export to unrelated customers in other third markets. On this basis, the export prices to other third country markets during the RIP could not be reliably established and no firm conclusions could be drawn on the basis of the information available.

         3.3.   Spare capacity of the Chinese producers

               (45)

               The data on the basis of which the analysis below is made were provided by the applicant in the review request and was cross-checked with publicly available information.

               (46)

               On this basis, capacities of producers in the PRC were estimated at 1 600 000 kg. The applicant’s estimation of the capacity utilisation of Chinese producers is around 63 % resulting in an unused capacity of about 600 000 kg, exceeding nearly five times the total Union consumption during the RIP. Thus, there are large quantities available for export from the PRC, in particular, because there are no indications that third country markets or the domestic market could absorb this significant spare capacity.

         3.4.   Volume and prices of dumped imports from the PRC

               (47)

               Imports from the PRC into the Union increased by 9 % over the period considered and reached the level of well above 50 000 kilograms during the RIP representing approximately half of the total Union consumption during the RIP.

               (48)

               Throughout the period considered, import prices were fluctuating and followed the same trends as the sales prices of the Union industry on the Union market. Overall, import prices increased from 2008 to the RIP by 42 % and were still at dumped levels. The price growth is mainly explained by the higher cost of the main raw material (tungsten powder) during the RIP.

         3.5.   Attractiveness of the Union market

               (49)

               The Union market is among the largest in the world reaching around 20 % of the world consumption of TE. Chinese companies have shown a serious interest in developing their presence on the Union market which is supported by the fact that they maintained and even increased their significant market share of 45 % during the RIP.

         3.6.   Conclusion of the likelihood of continuation of dumping

               (50)

               The foregoing analysis demonstrates that Chinese imports continued to enter the Union market at dumped prices with significant dumping margins. Given most notably the analysis of price levels on the Union market, and the interest Chinese exporters have shown in the Union market, as well as the significant spare capacities available in the PRC, going far beyond the total Union consumption, it can be concluded there is a strong likelihood of continuation of dumping should measures be removed.

         D.   SITUATION ON THE UNION MARKET

   1.   Definition of the Union industry

               (51)

               The current investigation confirmed that TE is manufactured by two producers in the Union. Both producers cooperated fully with the investigation.

               (52)

               The above companies constitute the Union industry within the meaning of Article 4(1) and 5(4) of the basic Regulation and will hereafter be referred to as the ‘Union industry’.

         2.   Preliminary remark

               (53)

               Since there are only two companies which constitute the Union industry, the data referring to the Union industry will be either presented in indexed form or ranges, so as to protect confidentiality pursuant to Article 19 of the basic Regulation.

               (54)

               Since imports under CN code level from Eurostat also included products other than TE, information on imports have been analysed at TARIC code level, supplemented by data collected in accordance with Article 14(6) of the basic Regulation. TARIC data are considered confidential as they provide a level of detail which allows for identification of parties. For this reason some information is presented in ranges.

         3.   Union consumption

               (55)

               Union consumption was established on the basis of the sales volume of the Union industry on the Union market, and import data from Eurostat, at TARIC code level supplemented by information from data collected in accordance with Article 14(6) of the basic Regulation.

               (56)

               Between 2008 and the RIP (‘period considered’), Union consumption decreased by 16 %. Consumption in the Union has decreased substantially between 2008 and 2009, and has increased since, without reaching the pre-crisis levels during the RIP. From the low peak in 2009 to the RIP, Union consumption increased by almost 40 %.

                  Table 1

                  Consumption

                           Volume
                           (kg)

                           2008

                           2009

                           2010

                           RIP

                           Consumption

                           140 000-150 000

                           90 000-100 000

                           110 000-120 000

                           120 000-130 000

                           Index (2008 = 100)

                           100

                           61

                           75

                           84

                                          Source:

                                       Questionnaire replies, Eurostat, Article 14(6) database.

         4.   Volume and market share of dumped imports from the PRC

               (57)

               The volumes and market shares of dumped imports from the PRC was established on the basis of statistical information provided at TARIC level supplemented by information from data collected in accordance with Article 14(6) of the basic Regulation.

               (58)

               Notwithstanding the absolute decrease of the Union consumption, the volume of imports of the product under review originating in the PRC increased by 9 % over the period considered, keeping a level well above 50 000 kg during the RIP (see Table 2). This increase, together with the general reduction of the Union consumption during the period considered, led to an increase of the market share of the Chinese exporters to approximately half of the total Union market.

                  Table 2

                  Imports from the PRC

                           2008

                           2009

                           2010

                           RIP

                           Volume

                           51 771

                           36 188

                           39 953

                           56 289

                           Index (2008 = 100)

                           100

                           70

                           77

                           109

                           Market share (%)

                           35-40

                           35-40

                           35-40

                           45-50

                                          Source:

                                       Eurostat, Article 14(6) database.

         5.   Prices of the imports from the PRC

   5.1.   Evolution of prices

               (59)

               Prices from the PRC increased in the region of 40 % between the year 2008 and the RIP, with a sharp increase during the RIP. The price growth is mainly explained by the higher cost of the main raw material (tungsten powder) during the RIP.

                  Table 3

                  Prices of the imports from the PRC

                           2008

                           2009

                           2010

                           RIP

                           Prices
                           EUR/kg

                           36,59

                           33,83

                           41,56

                           51,83

                           Index (2008 = 100)

                           100

                           92

                           114

                           142

                                          Source:

                                       Eurostat, Article 14(6) database.

         5.2.   Price undercutting

               (60)

               The investigation revealed that import prices from the PRC were undercutting the Union industry average prices. An undercutting margin of 37 % was established during the RIP, and when including the anti-dumping duty in the calculation, the undercutting margin was still significant at a level of 24 %. The calculation was based on a comparison of the CIF export prices of the cooperating exporting producers with the average Union industry prices at ex-work level. The prices were considered representative for the PRC as the two cooperating exporting producers covered around 80 % of the imports of TE from the PRC.

               (61)

               Following disclosure one exporting producer claimed that prices were not compared on a per-type basis and due to alleged significant price variations between different product types the undercutting levels calculated were not meaningful. On the basis of the information available, a price comparison on a per-type basis was only possible for part of the Union industry’s sales on the Union market and only for part of the export sales made to the Union. However, the party did not present evidence that would call into question the reasonableness of the methodology applied. This claim had therefore to be rejected.

               (62)

               Following disclosure it was also argued that the Chinese import prices and the Union industry’s sales prices on the Union market were not compared at the same level of trade. This claim was not substantiated as the party concerned did not submit any information or evidence that demonstrated consistent and distinct differences in function and prices of the seller for the alleged different levels of trade. This claim was therefore rejected.

         6.   Imports from other third countries

               (63)

               The volume of imports and prices from other countries during the period considered is shown in the table below. The volumes and market shares of imports from other third countries were established on the basis of statistical information provided at TARIC level supplemented by information from data collected in accordance with Article 14(6) of the basic Regulation.

                  Table 4

                  Imports from other third countries

                           2008

                           2009

                           2010

                           RIP

                           Vietnam

                           Volume of imports (kg)

                           27 878

                           14 184

                           13 776

                           25 833

                           Index (2008 = 100)

                           100

                           51

                           49

                           93

                           Price
                           EUR/kg

                           44,36

                           45,34

                           46,02

                           56,01

                           Index (2008 = 100)

                           100

                           102

                           104

                           126

                           South Korea

                           Volume of imports (kg)

                           21 299

                           8 174

                           11 051

                           3 319

                           Index (2008 = 100)

                           100

                           38

                           52

                           16

                           Price
                           EUR/kg

                           50,99

                           44,16

                           44,16

                           59,31

                           Index (2008 = 100)

                           100

                           87

                           87

                           116

                           Other third countries

                           Volume of imports (kg)

                           7 641

                           6 247

                           10 942

                           9 186

                           Index (2008 = 100)

                           100

                           82

                           143

                           120

                           Price
                           EUR/kg

                           43,24

                           59,82

                           64,98

                           57,75

                           Index (2008 = 100)

                           100

                           138

                           150

                           134

                           Total

                           Volume of imports (kg)

                           56 818

                           28 605

                           35 779

                           38 338

                           Index (2008 = 100)

                           100

                           50

                           63

                           67

                           Market share of imports from other third countries (%)

                           35-40

                           30-35

                           30-35

                           30-35

                           Price
                           EUR/kg

                           46,70

                           48,17

                           51,25

                           56,71

                           Index (2008 = 100)

                           100

                           103

                           110

                           121

                                          Source:

                                       Eurostat, Article 14(6) database.

               (64)

               Import volumes from other third countries to the Union market decreased during the period considered by around 33 %. Market shares decreased over the period considered and were between 30 % to 35 % during the RIP. Prices from other third countries increased by 21 % over the same period.

               (65)

               It is recalled that in the original investigation there were no significant imports of the like product to the Union market other than from the PRC. The original investigation established that the core markets of the remaining US and Japanese producers were their respective domestic markets. It was therefore concluded that imports from countries other than the PRC were extremely small.

               (66)

               Information provided by the Union industry alleged that there is no existing production of TE in Vietnam and South Korea and that imports from those countries were in fact coming from the PRC. However, no information was obtained confirming this allegation during the current investigation.

         7.   Economic situation of the Union industry

   7.1.   Preliminary remarks

               (67)

               Pursuant to Article 3(5) of the basic Regulation, the Commission examined all relevant economic factors and indices having a bearing on the state of the Union industry.

               (68)

               Since the Union industry is composed of only two producers, the data are reported in ranges for confidentiality reasons.

         7.2.   Production, production capacity and capacity utilisation

               (69)

               The Union industry’s production decreased each year during the period considered. By the end of RIP, the production had decreased by 29 % compared to 2008. The trend has been particularly negative during 2009, with a decrease of more than 40 %.

                  Table 5

                  Total Union production

                           Volume
                           (kg)

                           2008

                           2009

                           2010

                           RIP

                           Production

                           60 000-70 000

                           35 000-40 000

                           50 000-60 000

                           40 000-50 000

                           Index (2008 = 100)

                           100

                           60

                           82

                           71

                                          Source:

                                       Questionnaire replies.

               (70)

               Production capacity remained stable during the period considered. As production decreased, the resulting capacity utilisation showed an overall decrease of 27 % between 2008 and the RIP, reaching a 41 % capacity utilisation during the RIP. Detailed data is shown below:

                  Table 6

                  Production capacity and capacity utilisation

                           Volume
                           (kg)

                           2008

                           2009

                           2010

                           RIP

                           Production capacity

                           95 000-110 000

                           95 000-110 000

                           95 000-110 000

                           95 000-110 000

                           Index (2008 = 100)

                           100

                           100

                           100

                           100

                           Capacity utilisation (%)

                           57

                           35

                           47

                           41

                           Index (2008 = 100)

                           100

                           60

                           82

                           73

                                          Source:

                                       Questionnaire replies.

         7.3.   Stocks

               (71)

               The level of closing stocks of the Union industry decreased by 20 % between 2008 and the RIP. This trend is in line with the trend of decreasing consumption on the Union market over the same period.

                  Table 7

                  Closing stock

                           Volume
                           (kg)

                           2008

                           2009

                           2010

                           RIP

                           Closing stock

                           5 000-15 000

                           5 000-15 000

                           5 000-15 000

                           5 000-15 000

                           Index (2008 = 100)

                           100

                           70

                           85

                           80

                                          Source:

                                       Questionnaire replies.

         7.4.   Sales volume

               (72)

               The sales volume of the Union industry on the Union market to unrelated customers decreased by 23 % between 2008 and the RIP, with a sharp decrease between 2008 and 2009. This negative trend has been sharper than the decrease in the total consumption, with the exception of year 2010.

                  Table 8

                  Sales to unrelated customers

                           2008

                           2009

                           2010

                           RIP

                           Volume (kg)

                           40 000-50 000

                           25 000-30 000

                           35 000-40 000

                           30 000-35 000

                           Index (2008 = 100)

                           100

                           65

                           87

                           77

                                          Source:

                                       Questionnaire replies.

         7.5.   Market share

               (73)

               As a result of what is observed in the previous recital regarding sales volume of the Union industry on the Union market, the market share held by the Union industry fell during the period considered. The Union industry, whilst losing sales volumes, was able to maintain its market shares through 2009 and 2010, but suffered a setback during the RIP, with declining sales notwithstanding the growing market. This resulted in a market share of between 20 % to 25 %, slightly lower than the one which was registered at the beginning of the period considered.

                  Table 9

                  Union market share

                           2008

                           2009

                           2010

                           RIP

                           Union market share

                           25 %-30 %

                           25 %-30 %

                           30 %-35 %

                           20 %-25 %

                           Index (2008 = 100)

                           100

                           107

                           117

                           91

                                          Source:

                                       Questionnaire replies, Eurostat, Article 14(6) database.

         7.6.   Growth

               (74)

               As explained above, consumption in the Union has decreased substantially between 2008 and 2009, as a result of the economic downturn, and has increased since, without reaching the pre-crisis levels during the RIP. The Union industry, whilst losing sales volumes, was able to maintain its market shares through 2009 and 2010, but suffered a setback during the RIP, with declining sales notwithstanding the growing market.

         7.7.   Employment and productivity

               (75)

               The level of employment of the Union industry declined between 2008 and the RIP by 13 %.

               (76)

               Following the fall in production, the productivity per employee, measures as output in kg per employee, has also decreased during the period considered. Detailed data is shown below:

                  Table 10

                  Total Union employment and productivity

                           2008

                           2009

                           2010

                           RIP

                           Index of employees

                           100

                           65

                           84

                           87

                           Index of productivity

                           100

                           92

                           106

                           83

                                          Source:

                                       Questionnaire replies.

         7.8.   Unit sales prices

               (77)

               Unit sales prices of the Union industry to unrelated customers in the Union decreased slightly between 2008 and 2010, partly reflecting the impact of the economic crises. Between 2010 and the RIP unit sales prices increased substantially. Overall, the prices of the Union industry increased by 35 % during the period considered. This price development, in particular between 2010 and the RIP, was caused by the increase of prices of the main components making up TE.

                  Table 11

                  Unit price of Union sales

                           2008

                           2009

                           2010

                           RIP

                           Unit price of Union sales (EUR per unit)

                           80-120

                           80-120

                           80-120

                           100-140

                           Index (2008 = 100)

                           100

                           94

                           96

                           135

                                          Source:

                                       Questionnaire replies.

         7.9.   Profitability

               (78)

               Profitability improved between 2008 and the RIP, after having reached a lower level in 2009 and 2010. However profitability remained negative throughout the whole period considered.

                  Table 12

                  Profitability

                           2008

                           2009

                           2010

                           RIP

                           Profitability Union sales
                           Index (2008 = 100)

                           100

                           95

                           95

                           104

                                          Source:

                                       Questionnaire replies.

         7.10.   Investment and return on investment

               (79)

               Investment in the business of the product concerned significantly decreased during the period considered.

               (80)

               Return on investment followed the profitability trend. In 2008 the Union industry registered a negative return on investment which slightly improved, though it remained negative, during the RIP.

                  Table 13

                  Investments and return on investment

                           Index (2008 = 100)

                           2008

                           2009

                           2010

                           RIP

                           Investments

                           100

                           2

                           23

                           18

                           Return on investment

                           100

                           100

                           96

                           103

                                          Source:

                                       Questionnaire replies.

         7.11.   Cash flow and ability to raise capital

               (81)

               The cash flow, which is the ability of the industry to self-finance its activities, expressed as a percentage of the turnover of the product concerned, significantly improved during the period considered, although it remained negative.

                  Table 14

                  Cash flow

                           2008

                           2009

                           2010

                           RIP

                           Cash flow
                           Index (2008 = 100)

                           100

                           99

                           96

                           106

                                          Source:

                                       Questionnaire replies.

         7.12.   Wages

               (82)

               Between 2008 and the RIP the wages of the Union industry decreased by 16 % in line with the reduction of the number of employees.

         7.13.   Magnitude of dumping margin

               (83)

               Despite the measures in force, substantial dumping continued during the RIP at a level which is significantly above the current level of measures. Given the large spare capacity, the actual volumes of imports from the PRC and prices significantly undercutting the Union industry’s sales price, the impact on the Union industry of the actual margins of dumping cannot be considered to be negligible.

         7.14.   Recovery from past dumping

               (84)

               It was analysed whether the Union industry recovered from the effects of past dumping. Despite the anti-dumping measures in force, the Union industry did not manage to recover from past dumping. As a response to the price pressure of the Chinese imports the Union industry tried to keep their market share but had losses as a result.

         8.   Conclusion on the situation of the Union industry

               (85)

               The Union industry remained in a vulnerable economic situation and continued to suffer material injury. Almost all injury indicators relating to the financial performance of the Union industry deteriorated during the period considered. Consequently, it could not be concluded that the situation of the Union industry was secure.

               (86)

               As a response to the price pressure of the Chinese imports the Union industry tried to keep its market share, but selling at prices largely below the break-even level. Indeed, the increase of the sales prices of the Union industry between 2010 and the RIP is linked to the increase of raw material prices and did not cover the total cost of the Union industry.

               (87)

               In conclusion, the difficulties of the Union industry can be clearly linked to the massive presence of Chinese low-priced imports of the product under review on the Union market, which are sold at significantly dumped prices, despite the measures in force. This factor was enough to determine a situation where the Union industry suffer losses in an attempt to keep a reasonable market share. In addition, these difficulties have been further deepened throughout almost the entire period considered by two factors: the downturn of the market during the economic crisis of 2008-09 and, even if to a minor extent, the sudden increase of raw material costs during the RIP. This led to a scenario where losses have reached significant levels.

               (88)

               In view of the negative development of the indicators pertaining to the Union industry, it is considered that the Union industry continued to suffer material injury within the meaning of the Article 3(5) of the basic Regulation during the period considered.

         E.   LIKELIHOOD OF CONTINUATION OF INJURY

   1.   Preliminary remarks

               (89)

               During the period considered, the Union industry appeared in a vulnerable situation, still exposed to the injurious effect of the dumped imports from the PRC.

               (90)

               In accordance with Article 11(2) of the basic Regulation, imports from the country concerned were assessed in order to establish if there was a likelihood of continuation of injury, should measures be allowed to lapse.

         2.   Chinese import volumes

               (91)

               It is recalled that consumption on the Union market decreased significantly since the original investigation mainly due to the economic downturn. In these circumstances, the Chinese import volumes increased to a level well above 50 000 kg during the RIP. As to the import volumes, this has increased by 9 % while the market share of the Union industry decreased.

         3.   Spare capacity in the PRC

               (92)

               As described in recital 46, based on the information available there is significant spare capacity available in the PRC. It can be expected that a large part of this spare capacity could be used to increase imports in the Union market in the absence of anti-dumping measures. This is because there are no indications that third country markets or the Chinese domestic markets could absorb the significant Chinese spare capacity. Therefore, the capacity to significantly increase imports to the Union exists. The estimation of the unused capacity would exceed nearly five times the Union consumption during the RIP.

               (93)

               Moreover, information submitted during the investigation indicated important distortions in the raw material (ammonium paratungstate – ‘APT’) market used to manufacture the product under review. This raw material is subject to export quotas imposed by the Chinese authorities as well as export taxes. This limits the exports of APT and artificially increases its world price. These distortions are likely to confer further incentives to the Chinese industry to produce and export at low prices, while the Union industry has to produce the like product on the basis of artificially high raw material prices.

         4.   Attractiveness of the Union market

               (94)

               It was demonstrated that the Chinese exporting producers showed a continuous interest in the Union market and were able to increase import volumes at the expense of the sales of the Union industry. They even increased their already significant market share during the RIP.

         5.   Conclusion

               (95)

               The Union industry had been suffering from the effects of the Chinese dumped imports for several years and is currently still in a fragile economic situation.

               (96)

               If measures were allowed to lapse there is a strong likelihood of increased dumped imports which could seriously threaten the existence of the Union industry. Indeed, in the PRC there is a significant spare capacity which is likely to be largely directed to the Union market, at dumped prices undercutting the Union industry sales prices in the Union market, should measures be allowed to lapse.

               (97)

               In view of the findings of the investigation, namely the continuation of dumping, the spare capacity in the PRC, the distortion found in the market for raw materials, the potential of the exporting producers in the PRC to redirect their export volumes to the Union market, the price behaviour of the Chinese exporters clearly undercutting the prices of the Union industry and the attractiveness of the Union market, any repeal of the measures would point to a likelihood of continuation of injury.

         F.   UNION INTEREST

   1.   Introduction

               (98)

               In accordance with Article 21 of the basic Regulation, it has been examined whether the maintenance of the existing measures would be against the Union interest as a whole. The determination of the Union interest was based on an appreciation of the various interests involved, i.e. those of the Union industry, of importers and of users. All interested parties were given the opportunity to make their views known pursuant to Article 21(2) of the basic Regulation.

               (99)

               It should be recalled that in the original investigation the imposition of measures was considered not to be against the interest of the Union. Furthermore, the fact that the present investigation is a review, thus analysing a situation in which anti-dumping measures have already been in place, allows the assessment of any undue negative impact on the parties concerned by the current anti-dumping measures.

               (100)

               On this basis it was examined whether, despite the conclusion on the likelihood of a continuation of injurious dumping, compelling reasons existed which would lead to the conclusion that it is not in the Union interest to maintain measures in this particular case.

         2.   Interest of the Union industry

               (101)

               In view of the situation of the Union industry and the analysis on the likelihood of recurrence of injury, it is clear that the Union industry would be likely to experience a serious deterioration of its financial situation in case the anti-dumping measures were allowed to lapse. Throughout the period considered the Union industry lost production and sales volume while imports from the country concerned increased despite the measures in force. During the same period the financial situation of the Union industry deteriorated as it experiences heavy losses. Therefore, effective competitive conditions need to be enforced on the Union market.

               (102)

               It is considered that the continuation of measures would benefit the Union industry, which should then be able to increase sales volumes and improve its financial situation. By contrast, the discontinuation of the measures would seriously threaten the viability of the Union industry.

         3.   Interest of users

               (103)

               None of the 15 contacted users came forward to cooperate. As in the original investigation no questionnaire replies were received from interested users. In the original investigation the non-cooperation was explained by the low impact of TE on their production costs as it appears that quality and reliability are primary criteria for customers. Given the apparent marginal impact of the product under review on the costs of downstream products, it was concluded that measures would not adversely impact the user industry.

         4.   Interest of importers

               (104)

               Three importers contacted the Commission at the beginning of the investigation, but they were not considered as being interested parties since they had not imported the product concerned from the PRC during the RIP. Given that importers of TE did not show any interest during the investigation, it was concluded that it would not be clearly against EU interest to maintain measures.

         5.   Conclusion

               (105)

               Given the above, it is concluded that there are no compelling reasons against the maintenance of the current anti-dumping measures.

         G.   ANTI-DUMPING MEASURES

               (106)

               All 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 submit comments subsequent to that disclosure. The submissions and comments were duly taken into consideration where warranted.

               (107)

               It follows from the above that, as provided for by Article 11(2) of the basic Regulation, the anti-dumping measures applicable to imports of certain tungsten electrodes originating in the PRC, imposed by Regulation (EC) No 260/2007 should be maintained.

               (108)

               In order to minimise the risk of circumvention due to the high difference in the duty rates, it is considered that special measures are needed in this case to ensure the proper application of the anti-dumping duties. These special measures, which only apply to companies for which an individual duty rate is introduced, include the following: the presentation to the customs authorities of the Member States of a valid commercial invoice, which shall conform to the requirements set out in the Annex to this Regulation. Imports not accompanied by such an invoice shall be made subject to the residual anti-dumping duty applicable to all other producers,

         HAS ADOPTED THIS REGULATION:
   Article 1
   1.   A definitive anti-dumping duty is hereby imposed on imports of tungsten welding electrodes, including tungsten bars and rods for welding electrodes, containing 94 % or more by weight of tungsten, other than those obtained simply by sintering, whether or not cut to length, currently falling within CN codes ex 8101 99 10 and ex 8515 90 00 (TARIC codes 8101991010 and 8515900010) and originating in the People’s Republic of the China.
   2.   The rate of duty applicable to the, net free-at-Union-frontier price, before duty, of the products described in paragraph 1, and manufactured by the companies listed below shall be as follows:

               Company

               Anti-Dumping Duty

               TARIC Additional Code

               Shandong Weldstone Tungsten Industry Co., Ltd

               17,0 %

               A754

               Shaanxi Yuheng Tungsten & Molybdenum Industrial Co., Ltd

               41,0 %

               A755

               Beijing Advanced Metal Materials Co., Ltd

               38,8 %

               A756

               All other companies

               63,5 %

               A999

         3.   The application of the individual duty rates specified for the companies mentioned in paragraph 2 shall be conditional upon presentation to the customs authorities of the Member States of a valid commercial invoice, which shall conform to the requirements set out in the Annex. If no such invoice is presented, the duty rate applicable to ‘all other companies’ shall apply.
   4.   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, 29 May 2013.

            For the Council

            The President

         R. BRUTON

      (1)  OJ L 343, 22.12.2009, p. 51.

      (2)  OJ L 72, 13.3.2007, p. 1.

      (3)  OJ C 71, 9.3.2012, p. 23.

      ANNEX
      The valid commercial invoice referred to in Article 1(3) of this Regulation must include a declaration signed by an official of the company, in the following format:

                  1.

                  The name and function of the official of the company which has issued the commercial invoice.

                  2.

                  The following declaration ‘I, the undersigned, certify that the [volume] of tungsten electrodes 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.’


title: Commission Implementing Regulation (EU) 2015/434 of 16 March 2015 establishing the standard import values for determining the entry price of certain fruit and vegetables

text:
               17.3.2015

               EN

               Official Journal of the European Union

               L 72/1

         COMMISSION IMPLEMENTING REGULATION (EU) 2015/434
   of 16 March 2015
   establishing the standard import values for determining the entry price of certain fruit and vegetables
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (1),
   Having regard to Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sectors (2), and in particular Article 136(1) thereof,
   Whereas:

               (1)

               Implementing Regulation (EU) No 543/2011 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in Annex XVI, Part A thereto.

               (2)

               The standard import value is calculated each working day, in accordance with Article 136(1) of Implementing Regulation (EU) No 543/2011, taking into account variable daily data. Therefore this Regulation should enter into force on the day of its publication in the Official Journal of the European Union,

         HAS ADOPTED THIS REGULATION:
   Article 1
   The standard import values referred to in Article 136 of Implementing Regulation (EU) No 543/2011 are fixed in the Annex to this Regulation.
   Article 2
   This Regulation shall enter into force on the day 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, 16 March 2015.

            For the Commission,

            On behalf of the President,

         Jerzy PLEWA

            Director-General for Agriculture and Rural Development

      (1)  OJ L 347, 20.12.2013, p. 671.

      (2)  OJ L 157, 15.6.2011, p. 1.

      ANNEX

         Standard import values for determining the entry price of certain fruit and vegetables

                  (EUR/100 kg)

                  CN code

                  Third country code (1)

                  Standard import value

                  0702 00 00

                  EG

                  65,8

                  MA

                  84,9

                  TR

                  86,4

                  ZZ

                  79,0

                  0707 00 05

                  JO

                  229,9

                  MA

                  183,9

                  TR

                  185,1

                  ZZ

                  199,6

                  0709 93 10

                  MA

                  119,5

                  TR

                  192,4

                  ZZ

                  156,0

                  0805 10 20

                  EG

                  45,8

                  IL

                  72,7

                  MA

                  56,7

                  TN

                  57,3

                  TR

                  63,6

                  ZZ

                  59,2

                  0805 50 10

                  TR

                  61,4

                  ZZ

                  61,4

                  0808 10 80

                  BR

                  70,9

                  CA

                  81,0

                  CL

                  100,9

                  CN

                  91,1

                  MK

                  25,2

                  US

                  166,1

                  ZZ

                  89,2

                  0808 30 90

                  AR

                  112,0

                  CL

                  133,2

                  US

                  124,8

                  ZA

                  103,5

                  ZZ

                  118,4

         (1)  Nomenclature of countries laid down by Commission Regulation (EU) No 1106/2012 of 27 November 2012 implementing Regulation (EC) No 471/2009 of the European Parliament and of the Council on Community statistics relating to external trade with non-member countries, as regards the update of the nomenclature of countries and territories (OJ L 328, 28.11.2012, p. 7). Code ‘ZZ’ stands for ‘of other origin’.


title: Commission Implementing Regulation (EU) No 203/2012 of 8 March 2012 amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards detailed rules on organic wine

text:
               9.3.2012

               EN

               Official Journal of the European Union

               L 71/42

         COMMISSION IMPLEMENTING REGULATION (EU) No 203/2012
   of 8 March 2012
   amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards detailed rules on organic wine
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 (1), and in particular the second subparagraph of Article 19(3), Articles 21(2), 22(1), 38(a), and Article 40 thereof,
   Whereas:

               (1)

               Regulation (EC) No 834/2007 and in particular Chapter 4 of Title III thereof lays down basic requirements with regard to organic production of processed food. The detailed rules for the implementation of those basic requirements have been established by Commission Regulation (EC) No 889/2008 of 5 September 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007 on organic production and labelling of organic products with regard to organic production, labelling and control (2).

               (2)

               Specific provisions for the production of organic wine should be laid down in Regulation (EC) No 889/2008. Those provisions should apply to the products of the wine sector as referred to in Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (3).

               (3)

               The processing of organic wine requires the use of certain products and substances as additives or processing aids under well-defined conditions. For that purpose and on the basis of recommendations of the Union-wide study on ‘Organic viticulture and wine-making: development of environment and consumer friendly technologies for organic wine quality improvement and scientifically based legislative framework’ (also known as ‘Orwine’) (4) the use of such products and substances should be allowed in accordance with Article 21 of Regulation (EC) No 834/2007.

               (4)

               Certain products and substances, which are used as additives and processing aids for oenological practices under Commission Regulation (EC) No 606/2009 of 10 July 2009 laying down certain detailed rules for implementing Council Regulation (EC) No 479/2008 as regards the categories of grapevine products, oenological practices and the applicable restrictions (5), are derived from raw materials of agricultural origin. In such case the raw materials may be available on the market in organic form. In order to encourage the development of their demand on the market, preference should be given to the use of additives and processing aids derived from organically farmed raw materials.

               (5)

               Practices and techniques for the production of wine are established on the level of the Union in Regulation (EC) No 1234/2007 and its implementing rules as laid down in Regulation (EC) No 606/2009 and in Commission Regulation (EC) No 607/2009 of 14 July 2009 laying down certain detailed rules for the implementation of Council Regulation (EC) No 479/2008 as regards protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products (6). Using those practices and techniques in organic wine-making may not be in line with the objectives and principles fixed in Regulation (EC) No 834/2007, and in particular with the specific principles applicable to the processing of organic food, mentioned in Article 6 of Regulation (EC) No 834/2007. Therefore specific restrictions and limitations should be set up for certain oenological practices and processes.

               (6)

               Certain other practices which are widely used in food processing are also available for wine-making and may also have some effect on certain essential characteristics of the organic products and hence on their true nature, but at present no alternative techniques are available to replace them. This applies to heat treatments, filtration, reverse osmosis and the use of ion exchange resins. As a consequence those practices should be available to organic wine-makers, but their use should be restricted. A possibility for re-examination of heat treatment, ion exchange resins and reverse osmosis should be foreseen in due time.

               (7)

               Oenological practices and processes which might be misleading regarding the true nature of the organic products should be excluded in the making of organic wine. This applies to the concentration by cooling, the dealcoholisation, the elimination of sulphur dioxide by physical process, electrodialyses and the use of cation exchangers as those oenological practices do significantly modify the composition of the product to the point that they may be misleading as to the true nature of organic wine. For the same purposes, use or addition of certain substances might be also misleading regarding the true nature of the organic wine. It is therefore appropriate to lay down that such substances should not be used or added under the organic oenological practices and treatment processing.

               (8)

               Regarding more specifically sulphites, the results of the Orwine study have shown that a reduction in the level of sulphur dioxides in wines made from organic grapes is already achieved by organic producers of wine in the Union, as compared to the maximum sulphur dioxide content which is authorised for non-organic wines. Therefore it is appropriate to fix a maximum sulphur content specific to organic wines, which should be lower than the level authorised in non-organic wines. The necessary quantities of sulphur dioxide depend on the various categories of wines and also on certain intrinsic characteristics of the wine, notably its content in sugar, which should be considered when laying down the maximum levels of sulphur dioxides content specific to organic wines. However, extreme weather conditions may provoke difficulties in certain wine-growing areas which make it necessary to use supplementary amounts of sulphites in the preparation of wine to achieve stability of the final product of that year. It should therefore be allowed to increase the maximum sulphur dioxide content when such conditions are met.

               (9)

               Wine is a product with a long shelf-life and some wines are stored traditionally for several years in barrels or tanks before being placed on the market. Under the conditions of Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (7) and for a limited period in accordance with Regulation (EC) No 889/2008, the marketing of such wines by maintaining the labelling requirements under that Regulation should be allowed until stocks are exhausted.

               (10)

               Some of the stored wines were already produced by a wine-making process which already complies with the rules on the production of organic wine provided for by this Regulation. Where this can be proven, the use of the Community organic production logo as referred to in Article 25(1) of Regulation (EC) No 834/2007, called from 1 July 2010 the ‘Organic logo of the EU’, should be authorised, to allow for fair comparison and competition between organic wines produced before and after the entry into force of this Regulation. If this is not the case, the wine should be labelled exclusively as ‘wine made from organic grapes’, without bearing the organic logo of the EU, provided that the wine is produced in accordance with Regulation (EEC) No 2092/91 and Regulation (EC) No 889/2008 before its amendment by this Regulation.

               (11)

               Regulation (EC) No 889/2008 should therefore be amended accordingly.

               (12)

               The measures provided for in this Regulation are in accordance with the opinion of the Regulatory Committee on Organic Production,

         HAS ADOPTED THIS REGULATION:
   Article 1
   Regulation (EC) No 889/2008 is amended as follows:

               (1)

               Title II is amended as follows:

                           (a)

                           in Article 27(1), the introductory phrase is replaced by the following:
                           ‘For the purposes of Article 19(2)(b) of Regulation (EC) No 834/2007, only the following substances can be used in the processing of organic food, with the exception of products of the wine sector, for which the provisions of Chapter 3a shall apply:’;

                           (b)

                           a new Chapter 3a is inserted:
                           ‘CHAPTER 3a

                                 Specific rules for the making of wine

                           Article 29b
                           Scope
                           1.   This Chapter lays down specific rules for the organic production of the products of the wine sector as referred to in Article 1(1)(l) of Council Regulation (EC) No 1234/2007 (8).
                           2.   Commission Regulations (EC) No 606/2009 (9) and (EC) No 607/2009 (10) shall apply, save as explicitly provided otherwise in this Chapter.
                           Article 29c
                           Use of certain products and substances
                           1.   For the purposes of Article 19(2)(a) of Regulation (EC) No 834/2007, products of the wine sector shall be produced from organic raw material.
                           2.   For the purposes of Article 19(2)(b) of Regulation (EC) No 834/2007, only products and substances listed in Annex VIIIa to this Regulation can be used for the making of products of the wine sector, including during the processes and oenological practices, subject to the conditions and restrictions laid down in Regulation (EC) No 1234/2007 and Regulation (EC) No 606/2009 and in particular in Annex I A to that Regulation.
                           3.   Products and substances listed in Annex VIIIa to this Regulation and marked with an asterisk, derived from organic raw material, shall be used if available.
                           Article 29d
                           Oenological practices and restrictions
                           1.   Without prejudice to Article 29c and to specific prohibitions and restrictions provided for in paragraphs 2 to 5 of this Article, only oenological practices, processes and treatments, including the restrictions provided for in Article 120c and 120d of Regulation (EC) No 1234/2007 and in Articles 3, 5 to 9 and 11 to 14 of Regulation (EC) No 606/2009 and in their Annexes, used before 1 August 2010 are permitted.
                           2.   The use of the following oenological practices, processes and treatments is prohibited:

                                       (a)

                                       partial concentration through cooling according to point (c) of Section B.1 of Annex XVa to Regulation (EC) No 1234/2007;

                                       (b)

                                       elimination of sulphur dioxide by physical processes according to point 8 of Annex I A to Regulation (EC) No 606/2009;

                                       (c)

                                       electrodialysis treatment to ensure the tartaric stabilisation of the wine according to point 36 of Annex I A to Regulation (EC) No 606/2009;

                                       (d)

                                       partial dealcoholisation of wine according to point 40 of Annex I A to Regulation (EC) No 606/2009;

                                       (e)

                                       treatment with cation exchangers to ensure the tartaric stabilisation of the wine according to point 43 of Annex I A to Regulation (EC) No 606/2009.

                                 3.   The use of the following oenological practices, processes and treatments is permitted under the following conditions:

                                       (a)

                                       for heat treatments according to point 2 of Annex I A to Regulation (EC) No 606/2009, the temperature shall not exceed 70 °C;

                                       (b)

                                       for centrifuging and filtration with or without an inert filtering agent according to point 3 of Annex I A to Regulation (EC) No 606/2009, the size of the pores shall be not smaller than 0,2 micrometer.

                                 4.   The use of the following oenological practices, processes and treatments shall be re-examined by the Commission before 1 August 2015 with a view to phase out or to further restrict those practices:

                                       (a)

                                       heat treatments as referred to in point 2 of Annex I A to Regulation (EC) No 606/2009;

                                       (b)

                                       use of ion exchange resins as referred to in point 20 of Annex I A to Regulation (EC) No 606/2009;

                                       (c)

                                       reverse osmosis according to point (b) of Section B.1 of Annex XVa to Regulation (EC) No 1234/2007.

                                 5.   Any amendment introduced after 1 August 2010, as regards the oenological practice, processes and treatments provided for in Regulation (EC) No 1234/2007 or Regulation (EC) No 606/2009, may be applicable in the organic production of wine only after the adoption of the measures necessary for the implementation of the production rules provided for in Article 19(3) of Regulation (EC) No 834/2007 and, if required, an evaluation process according to Article 21 of that Regulation.

                           (c)

                           Article 47 is amended as follows:

                                       (i)

                                       in the first paragraph, the following point (e) is added:

                                                   ‘(e)

                                                   the use of sulphur dioxide up to the maximum content to be fixed in accordance with the Annex I B to Regulation (EC) No 606/2009 if the exceptional climatic conditions of a given harvest year deteriorate the sanitary status of organic grapes in a specific geographical area because of severe bacterial attacks or fungal attacks, which oblige the winemaker to use more sulphur dioxide than in previous years to obtain a comparable final product.’;

                                       (ii)

                                       the second paragraph is replaced by the following:
                                       ‘Upon approval by the competent authority, the individual operators shall keep documentary evidence of the use of the above exceptions. Member States shall inform each other and the Commission on the exceptions they have granted under points (c) and (e) of the first paragraph.’;

               (2)

               Title V is amended as follows:

                           (a)

                           in Article 94(1), the following point (d) is added:

                                       ‘(d)

                                       within one month from their approval, the exceptions granted by the Member States under points (c) and (e) of the first paragraph of Article 47.’;

                           (b)

                           in Article 95, paragraph 10a is replaced by the following:
                           ‘10a.   As regards products of the wine sector, the transitional period referred to in paragraph 8 shall expire on 31 July 2012.
                           Stocks of wines produced until 31 July 2012 in accordance with either Regulation (EEC) No 2092/91 or Regulation (EC) No 834/2007 may continue to be brought on the market until stocks are exhausted, and subject to the following labelling requirements:

                                       (a)

                                       the Community organic production logo as referred to in Article 25(1) of Regulation (EC) No 834/2007, called from 1 July 2010 the “Organic logo of the EU” may be used provided that the wine-making process complies with Chapter 3a of Title II of this Regulation;

                                       (b)

                                       operators using “Organic logo of the EU” shall keep recorded evidence, for a period of at least five years after they placed on the market that wine obtained from organic grapes, including of the corresponding quantities of wine in litres, per wine category and per year;

                                       (c)

                                       where the evidence referred to in point (b) of this paragraph is not available, such wine may be labelled as “wine made from organic grapes”, provided that it complies with the requirements of this Regulation except those provided for in Chapter 3a of Title II thereof;

                                       (d)

                                       wine labelled as “wine made from organic grapes” cannot bear the “Organic logo of the EU”.’;

               (3)

               a new Annex VIIIa is inserted, the text of which is set out in the Annex to this Regulation.

         Article 2
   This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Union.
   It shall apply from 1 August 2012.

      This Regulation shall be binding in its entirety and directly applicable in all Member States.
      Done at Brussels, 8 March 2012.

            For the Commission

            The President

         José Manuel BARROSO

      (1)  OJ L 189, 20.7.2007, p. 1.

      (2)  OJ L 250, 18.9.2008, p. 1.

      (3)  OJ L 299, 16.11.2007, p. 1.

      (4)  http://www.orwine.org/default.asp?scheda=263

      (5)  OJ L 193, 24.7.2009, p. 1.

      (6)  OJ L 193, 24.7.2009, p. 60.

      (7)  OJ L 198, 22.7.1991, p. 1. Regulation (EEC) No 2092/91 has been repealed and replaced by Regulation (EC) No 834/2007 as from 1 January 2009.

      (8)  OJ L 299, 16.11.2007, p. 1.

      (9)  OJ L 193, 24.7.2009, p. 1.

      (10)  OJ L 193, 24.7.2009, p. 60.’;

      ANNEX

            ‘ANNEX VIIIa

               Products and substances authorised for use or addition in organic products of the wine sector referred to in Article 29c

                        Type of treatment in accordance with Annex I A to Regulation (EC) No 606/2009

                        Name of products or substances

                        Specific conditions, restrictions within the limits and conditions set out in Regulation (EC) No 1234/2007 and Regulation (EC) No 606/2009

                                    Point 1:

                                    Use for aeration or oxygenation

                                    —

                                    Air

                                    —

                                    Gaseous oxygen

                                    Point 3:

                                    Centrifuging and filtration

                                    —

                                    Perlite

                                    —

                                    Cellulose

                                    —

                                    Diatomeceous earth

                        Use only as an inert filtering agent

                                    Point 4:

                                    Use in order to create an inert atmosphere and to handle the product shielded from the air

                                    —

                                    Nitrogen

                                    —

                                    Carbon dioxide

                                    —

                                    Argon

                                    Points 5, 15 and 21:

                                    Use

                                    —

                                    Yeasts (1)

                                    Point 6:

                                    Use

                                    —

                                    Di-ammonium phosphate

                                    —

                                    Thiamine hydrochloride

                                    Point 7:

                                    Use

                                    —

                                    Sulphur dioxide

                                    —

                                    Potassium bisulphite or potassium metabisulphite

                                    (a)

                                    The maximum sulphur dioxide content shall not exceed 100 milligrams per litre for red wines as referred to in point 1(a) of Part A of Annex I B to Regulation (EC) No 606/2009 and with a residual sugar level lower than 2 grams per litre;

                                    (b)

                                    The maximum sulphur dioxide content shall not exceed 150 milligrams per litre for white and rosé wines as referred to in point 1(b) of Part A of Annex I B to Regulation (EC) No 606/2009 and with a residual sugar level lower than 2 grams per litre;

                                    (c)

                                    For all other wines, the maximum sulphur dioxide content applied in accordance with Annex I B to Regulation (EC) No 606/2009 on 1 August 2010, shall be reduced by 30 milligrams per litre.

                                    Point 9:

                                    Use

                                    —

                                    Charcoal for oenological use

                                    Point 10:

                                    Clarification

                                    —

                                    Edible gelatine (2)

                                    —

                                    Plant proteins from wheat or peas (2)

                                    —

                                    Isinglass (2)

                                    —

                                    Egg white albumin (2)

                                    —

                                    Tannins (2)

                                    —

                                    Casein

                                    —

                                    Potassium caseinate

                                    —

                                    Silicon dioxide

                                    —

                                    Bentonite

                                    —

                                    Pectolytic enzymes

                                    Point 12:

                                    Use for acidification purposes

                                    —

                                    Lactic acid

                                    —

                                    L(+)Tartaric acid

                                    Point 13:

                                    Use for deacidification purposes

                                    —

                                    L(+)Tartaric acid

                                    —

                                    Calcium carbonate

                                    —

                                    Neutral potassium tartrate

                                    —

                                    Potassium bicarbonate

                                    Point 14:

                                    Addition

                                    —

                                    Aleppo pine resin

                                    Point 17:

                                    Use

                                    —

                                    Lactic bacteria

                                    Point 19:

                                    Addition

                                    —

                                    L-Ascorbic acid

                                    Point 22:

                                    Use for bubbling

                                    —

                                    Nitrogen

                                    Point 23:

                                    Addition

                                    —

                                    Carbon dioxide

                                    Point 24:

                                    Addition for wine stabilisation purposes

                                    —

                                    Citric acid

                                    Point 25:

                                    Addition

                                    —

                                    Tannins (2)

                                    Point 27:

                                    Addition

                                    —

                                    Meta-tartaric acid

                                    Point 28:

                                    Use

                                    —

                                    Acacia gum (2) (= gum arabic)

                                    Point 30:

                                    Use

                                    —

                                    Potassium bitartrate

                                    Point 31:

                                    Use

                                    —

                                    Cupric citrate

                                    Point 31:

                                    Use

                                    —

                                    Copper sulphate

                        Authorised until 31 July 2015

                                    Point 38:

                                    Use

                                    —

                                    Oak chips

                                    Point 39:

                                    Use

                                    —

                                    Potassium alginate

                        Type of treatment in accordance with Annex III, point A(2)(b) to Regulation (EC) No 606/2009

                                    —

                                    Calcium sulphate

                        Only for “vino generoso” or “vino generoso de licor”

         (1)  For the individual yeast strains: if available, derived from organic raw material.

         (2)  Derived from organic raw material if available.’


title: Commission Implementing Regulation (EU) No 668/2012 of 20 July 2012 on the issue of import licences and the allocation of import rights for applications lodged during the first seven days of July 2012 under the tariff quotas opened by Regulation (EC) No 616/2007 for poultrymeat

text:
               21.7.2012

               EN

               Official Journal of the European Union

               L 194/8

         COMMISSION IMPLEMENTING REGULATION (EU) No 668/2012
   of 20 July 2012
   on the issue of import licences and the allocation of import rights for applications lodged during the first seven days of July 2012 under the tariff quotas opened by Regulation (EC) No 616/2007 for poultrymeat
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (1),
   Having regard to Commission Regulation (EC) No 1301/2006 of 31 August 2006 laying down common rules for the administration of import tariff quotas for agricultural products managed by a system of import licences (2), and in particular Article 7(2) thereof,
   Whereas:

               (1)

               Commission Regulation (EC) No 616/2007 (3) opened tariff quotas for imports of poultrymeat products originating in Brazil, Thailand and other third countries.

               (2)

               The applications for import licences lodged in respect of Groups Nos 1, 2, 4, 6, 7 and 8 during the first seven days of July 2012 for the subperiod from 1 October to 31 December 2012 relate, for some quotas, to quantities exceeding those available. The extent to which import licences may be issued should therefore be determined by establishing the allocation coefficient to be applied to the quantities requested.

               (3)

               The applications for import rights lodged during the first seven days of July 2012 for the subperiod from 1 October to 31 December 2012 in respect of Group No 5 relate to quantities exceeding those available. The extent to which import rights may be allocated should therefore be determined by establishing the allocation coefficient to be applied to the quantities requested,

         HAS ADOPTED THIS REGULATION:
   Article 1
   1.   The quantities for which import licence applications have been lodged pursuant to Regulation (EC) No 616/2007 for the subperiod from 1 October to 31 December 2012 in respect of Groups Nos 1, 2, 4, 6, 7 and 8 shall be multiplied by the allocation coefficients set out in the Annex hereto.
   2.   The quantities for which import rights applications have been lodged pursuant to Regulation (EC) No 616/2007 for the subperiod from 1 October to 31 December 2012 in respect of Group No 5 shall be multiplied by the allocation coefficient set out in the Annex hereto.
   Article 2
   This Regulation shall enter into force on 21 July 2012.

      This Regulation shall be binding in its entirety and directly applicable in all Member States.
      Done at Brussels, 20 July 2012.

            For the Commission, On behalf of the President,
         José Manuel SILVA RODRÍGUEZ

            Director-General for Agriculture and Rural Development

      (1)  OJ L 299, 16.11.2007, p. 1.

      (2)  OJ L 238, 1.9.2006, p. 13.

      (3)  OJ L 142, 5.6.2007, p. 3.

      ANNEX

                  Group No

                  Order No

                  Allocation coefficient for import licence applications lodged for the subperiod from 1.10.2012 to 31.12.2012
                  (%)

                  1

                  09.4211

                  0,573392

                  6

                  09.4216

                  1,345898

                  Group No

                  Order No

                  Allocation coefficient for import rights applications lodged for the subperiod from 1.10.2012 to 31.12.2012
                  (%)

                  5

                  09.4215

                  0,958773