EU TDI determinations. Enrique Valerdi Rodriguez (TRADE H1)

Transcription

1 EU TDI determinations Enrique Valerdi Rodriguez (TRADE H1)

2 Overview Segmentation of the Union market - Tyres originating in the People's Republic of China (OJ L 116, , p.8 & OJ L 263, , p. 3) Retroactive collection of duties - Cold-rolled flat steel products originating in the People's Republic of China and the Russian Federation (OJ L 210, , p. 27) Credit rating & calculation of benefit and subsidy amount - Hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People's Republic of China (OJ L 146, , p. 17)

3 Tyres Segmentation of the Union market TIER 1 Premium New Flagship brand High quality High mileage TIER 2 Non-premium, new & retreaded Brand remains important Price % of tier 1 Good mileage performance TIER 3 New and retreaded Lower mileage performance Brand recognition almost nonexistent Price below 65% of tier 1 Starting point: The complaint alleged that the Union market was segmented into 3 tiers, where performance and branding would play a key role.

4 Tyres Segmentation of the Union market Procedure Upon initiation, the Commission investigated the segmentation as follows: - Questionnaires for sampled Union producers and sampled exporters requested that TbyT listings contain the tier of each transaction - Note for the file containing a mapping, inviting parties to comment - Provisional and definitive disclosure addressing all claims

5 Tyres Segmentation of the Union market Findings: - General agreement among interested parties and the findings of the Commission. - Interconnection between tiers. - Analysis of injury indicators for the product concerned as a whole, with an analysis per tier in prices, costs and profitability. - Calculations comparing PCNs for same tiers - One duty per sampled exporter on the basis of the product mix (PCN/tier) in the IP. - Conclusions on injury for the product concerned.

6 Retroactive collection of duties Article 10 BR. Duties levied retroactively, no more than 90 days before provisional measures, on imports that were registered. Article 10 (4) BR sets the requirements: Registration Opportunity to comment History of dumping History awareness of dumping of and dumping awareness and injury Further substantial rise likely to undermine the remedial effect of the duties Commission Implementing Regulation (EU) 2016/1329.

7 Cold-rolled flat steel - Retroactive collection of duties Registration Opportunity to comment Registration 12/12/2015 Justified Same analysis Additional questionnaires & verification visits (Union producers, importers/users) Disclosure of main findings Separate disclosure on retroactivity

8 Cold-rolled flat steel - Retroactive collection of duties History of dumping or awareness of dumping and injury Dumping and injury "alleged or found": importers should have been aware - NoI, open file Provisional duties, registration regulation

9 Cold-rolled flat steel - Retroactive collection of duties Further substantial rise likely to undermine the remedial effect of the duties Comparison monthly average import volumes:+37% (or +27%); Stocks +22%; High peak of imports right before start of the registration; Consumption trend post IP increased much less: 14%; Volume during registration period significant = "Further substantial rise in imports" Further loss of market shares compared to IP; Prices of imports dropped postinitiation; Undercutting increased from 7% (in IP) to 14%; Prices continued to drop after initiation and also during the registration period; Stockpiling = "Likelihood of undermining remedial effect"

10 Credit rating & calculation of benefit and subsidy amount Preferential lending Benefit conferred on recipients = interest on loan obtainable on market interest on preferential loan Creditworthiness of recipient

11 Hot-rolled flat products of iron, nonalloy or other alloy steel (PRC) Credit rating PRC Are PRC's credit ratings reliable? Company Financial indicators Debt-repayment capacity Revolving loans

12 Hot-rolled flat products of iron, non-alloy or other alloy steel (PRC) Credit rating

13 Hot-rolled flat products of iron, non-alloy or other alloy steel (PRC) Credit rating Revolving loans Loans as grants