Date: 2023-03-20Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Decision (EU) 2023/617 of 17 March 2023 terminating the anti-subsidy proceeding concerning imports of fatty acid originating in Indonesia
Issued by European Commission
· Directorate-General for Trade and Economic Security
Executive Summary:
This Commission Implementing Decision terminates the antisubsidy proceeding concerning imports of fatty acid originating in Indonesia, following the withdrawal of the complaint by the Coalition against Unfair Trade in Fatty Acid on 3 October 2022. The decision, made on 17 March 2023, concludes that termination is in the Union's interest, aligning with Article 14(1) of Regulation EU 2016/1037. The decision enters into force the day after its publication in the Official Journal of the European Union.
Key Points / Main Content:
* **Initiation of Antisubsidy Proceeding:**
* A complaint was received on 31 March 2022, leading to the initiation of an antisubsidy proceeding on 13 May 2022, concerning imports of fatty acid originating in Indonesia.
* **Antidumping Proceeding:**
* An antidumping proceeding concerning imports of fatty acid originating in Indonesia was initiated on 30 November 2021.
* Antidumping duties ranging from 15.2% to 46.4% were imposed on 19 January 2023 via Regulation EU 2023/111.
* **Investigation Period:**
* The subsidisation and injury investigation covered 1 October 2020 to 30 September 2021.
* The period considered for injury assessment was from 1 January 2018 to the end of the investigation period.
* **Interested Parties:**
* Interested parties were invited to participate in the investigation and given the opportunity to comment and request hearings.
* **Product Under Investigation:**
* The investigation concerned fatty acids with specific carbon chain lengths and properties, including single fatty acids and blends.
* **Withdrawal of Complaint:**
* The complainant withdrew its complaint on 3 October 2022.
* Article 14(1) of the basic Regulation allows termination of proceedings upon complaint withdrawal if it's in the Union's interest.
* **Conclusion and Disclosure:**
* The Commission decided to terminate the proceeding.
* Interested parties were informed and given the opportunity to comment.
* No comments were received suggesting termination was not in the Union's interest.
* **Decision:**
* The antisubsidy proceeding concerning imports of fatty acid originating in Indonesia is terminated.
* The decision enters into force the day following its publication in the Official Journal of the European Union.
Impact Analysis:
* **Union Producers:**
* *Impact:* The termination of the antisubsidy proceeding means no countervailing duties will be imposed to offset the alleged subsidies.
* *Action Required:* Monitor import levels and market conditions, and potentially consider other avenues for addressing unfair trade practices if necessary.
* **Indonesian Exporters/Producers:**
* *Impact:* The termination means they will not be subject to antisubsidy duties on exports of fatty acid to the EU.
* *Action Required:* Continue exporting fatty acid to the EU without additional duties, while remaining aware of the existing antidumping duties.
* **Importers and Users:**
* *Impact:* The termination means they will not face additional costs associated with antisubsidy duties on fatty acid imports from Indonesia.
* *Action Required:* Continue importing and using fatty acid from Indonesia without the burden of antisubsidy duties.
* **European Commission:**
* *Impact:* Closure of the antisubsidy investigation.
* *Action Required:* Implement the decision by publishing it in the Official Journal and ceasing further investigation activities related to this case.
Key Entities Referenced
European Commission: The executive branch of the European Union, responsible for initiating the antisubsidy and antidumping proceedings and terminating the antisubsidy proceeding concerning imports of fatty acid originating in Indonesia.
Indonesia: The country of origin of the fatty acid imports that are the subject of the antisubsidy and antidumping proceedings.
Regulation EU 2016/1037: Regulation of the European Parliament and of the Council on protection against subsidised imports from countries not members of the European Union (the basic Regulation).
Coalition against Unfair Trade in Fatty Acid: The complainant that lodged the complaint pursuant to Article 10 of Regulation EU 2016/1037, leading to the initiation of the antisubsidy proceeding.
Fatty Acid: The product under investigation, specifically fatty acids with a carbon chain length of C6, C8, C10, C12, C14, C16 or C18 with an iodine value below 105g/100g.
General Court: The court that was referenced in regards to the wide discretion the Union institutions have to continue or terminate an investigation following a withdrawal.
Brussels: The city where the decision to terminate the antisubsidy proceeding was made.
Ursula VON DER LEYEN: The President of the European Commission, who signed the decision.
20.3.2023 EN Official Journal of the European Union L 80/99
COMMISSION IMPLEMENTING DECISION (EU) 2023/617
of 17 March 2023
terminating the anti-subsidy proceeding concerning imports of fatty acid originating in Indonesia
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016on protection
against subsidised imports from countries not members of the European Union(1), and in particular Article 14(1) thereof,
Whereas:
1. PROCEDURE
1.1. Initiation of an anti-subsidy proceeding
(1) On 31 March 2022, the European Commission (‘the Commission’) received a complaint pursuant to Article 10 of
Regulation (EU) 2016/1037 (‘the basic Regulation’) lodged by the Coalition against Unfair Trade in Fatty Acid (‘the
complainant’).
(2) On 13 May 2022, after holding consultations with the Government of Indonesia on 12 May 2022, the Commission
initiated an anti-subsidy proceeding concerning imports of fatty acid originating in Indonesia. It published a Notice
of Initiation in the Official Journal of the European Union (the ‘Notice of Initiation’)(2).
1.2. Anti-dumping proceeding
(3) On 30 November 2021, the Commission initiated an anti-dumping proceeding concerning imports of fatty acid
originating in Indonesia. It published a Notice of Initiation in the Official Journal of the European Union(3).
(4) On 19 January 2023, by Regulation (EU) 2023/111(4), the Commission imposed anti-dumping duties on imports of
fatty acid originating in Indonesia ranging from 15.2 % to 46.4 %.
1.3. Investigation period and period considered
(5) The investigation of subsidisation and injury covered the period from 1 October 2020to 30 September 2021(‘the
investigation period’). The examination of trends relevant for the assessment of injury covered the period from
1 January 2018to the end of the investigation period (‘the period considered’).
1.4. Interested parties
(6) In the Notice of Initiation, the Commission invited interested parties to contact it in order to participate in the
investigation. In addition, the Commission specifically informed the complainant, the known Union producers, the
known exporting producers, the authorities of Indonesia, known importers and users about the initiation of the
investigation and invited them to participate.
(7) Interested parties had an opportunity to comment on the initiation of the investigation and to request a hearing with
the Commission and/or the Hearing Officer in trade proceedings.
(1) OJ L 176, 30.6.2016, p. 55.
(2) Notice of initiation of an anti-subsidy proceeding concerning imports of fatty acid originating in Indonesia (OJ C 195, 13.5.2022,
p. 11).
(3) Notice of initiation of an anti-dumping proceeding concerning imports of fatty acid originating in Indonesia (OJ C 482, 30.11.2021,
p. 5).
(4) Commission Implementing Regulation (EU) 2023/111 of 18 January 2023 imposing a definitive anti-dumping duty on imports of
fatty acid originating in Indonesia (OJ L 18, 19.1.2023, p. 1).L 80/100 EN Official Journal of the European Union 20.3.2023
2. PRODUCT UNDER INVESTIGATION
(8) The product subject to this investigation is fatty acids with a carbon chain length of C6, C8, C10, C12, C14, C16 or
C18 with an iodine value below 105g/100g and with a ratio of free fatty acids to triglycerides (degree of split – DoS)
of at least 97 %, including:
— single fatty acid (also referred to as ‘pure cut’); and
— blends containing a combination of two or more carbon chain lengths (‘the product under investigation’).
3. WITHDRAWAL OF THE COMPLAINT
(9) In its letter to the Commission of 3 October 2022, the complainant withdrew its complaint.
(10) Withdrawal of an anti-subsidy complaint is governed by Article 14(1) of the basic Regulation, which provides that
‘(w)here the complaint is withdrawn, proceedings may be terminated unless such termination would not be in the Union
interest’. As noted by the General Court in Philips Lighting Poland and Philips Lighting v Council(5), the Union
institutions enjoy a wide discretion to continue or terminate an investigation following a withdrawal.
(11) The investigation had not brought to light any considerations demonstrating that such termination would not be in
the Union interest.
4. CONCLUSION AND DISCLOSURE
(12) The Commission therefore considered that the proceeding should be terminated.
(13) Interested parties were informed accordingly and were granted an opportunity to submit comments.
(14) The Commission received no comments that would lead to the conclusion that such termination would not be in the
Union interest.
(15) This Decision is in accordance with the opinion of the Committee referred to in Article 25(1) of the basic Regulation,
HAS ADOPTED THIS DECISION:
Article 1
The anti-subsidy proceeding concerning imports of fatty acid originating in Indonesia is hereby terminated.
Article 2
This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.
Done at Brussels, 17 March 2023.
For the Commission
The President
Ursula VON DER LEYEN
(5) Judgment of 11 July 2013, Philips Lighting Poland and Philips Lighting v Council, T-469/07, EU:T:2013:370, para. 87.