(1)

The Commission has received a request pursuant to Article 13(3) of the basic Regulation to investigate the possible circumvention of the anti-dumping measures imposed on imports of certain zinc oxides originating in the People's Republic of China.

(2)

The request has been lodged on 27 June 2005 by Eurometaux on behalf of producers representing more than 45 % of the Community production of certain zinc oxides.

(3)

The product concerned by the possible circumvention is zinc oxide (chemical formula ZnO) with a purity of not less than 93 % zinc oxide originating in the People's Republic of China, normally declared under CN code 2817 00 00 (the product concerned). This code is given for information only.

(4)

The product under investigation is zinc oxide (chemical formula ZnO) with a purity of not less than 93 % zinc oxide consigned from Kazakhstan (the product under investigation) normally declared under the same codes as the product concerned.

(5)

The measures currently in force and possibly being circumvented are antidumping measures imposed by Council Regulation (EC) No 408/2002 (2), as last amended by Regulation (EC) No 1623/2003 (3).

(6)

The request contains sufficient prima facie evidence, that the anti-dumping measures on imports of certain zinc oxides originating in the People's Republic of China are being circumvented by means of transhipment via Kazakhstan of certain zinc oxides.

(7)

The evidence submitted is as follows:

(8)

In the light of the above, the Commission has concluded that sufficient evidence exists to justify the initiation of an investigation pursuant to Article 13 of the basic Regulation and to make imports of certain zinc oxides consigned from Kazakhstan, whether declared as originating in Kazakhstan or not, subject to registration, in accordance with Article 14(5) of the basic Regulation.

(9)

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the exporters/producers and to the associations of exporters/producers in Kazakhstan, the exporters/producers and to the associations of exporters/producers in the People's Republic of China, to the importers and to the associations of importers in the Community which co-operated in the investigation that led to the existing measures and to the authorities of the People's Republic of China and Kazakhstan Information, as appropriate, may also be sought from the Community industry.

(10)

In any event, all interested parties should contact the Commission forthwith, but not later than the time limit set in Article 3 in order to request a questionnaire within the time limit set in Article 3(1) of this Regulation, given that the time limit set in Article 3(2) of this Regulation applies to all interested parties.

(11)

The authorities of the People's Republic of China and Kazakhstan will be notified of the initiation of the investigation.

(12)

All interested parties are hereby invited to make their views known in writing and to provide supporting evidence. Furthermore, the Commission may hear interested parties, provided that they make a request in writing and show that there are particular reasons why they should be heard.

(13)

Since the possible circumvention takes place outside the Community, exemptions may be granted, in accordance with Article 13(4) of the basic Regulation, to producers of the product concerned that can show that they are not related to any producer subject to the measures and that are found not to be engaged in circumvention practices as defined in Articles 13(1) and 13(2) of the basic Regulation. Producers wishing to obtain an exemption should submit a request duly supported by evidence within the time limit indicated in Article 3(3) of this Regulation.

(14)

In consideration of the fact that an exemption may only be granted to companies which can be treated individually, producers wishing to obtain an exemption should demonstrate that they meet the criteria for individual treatment indicated in Article 9(5) of the basic Regulation. For this purpose, duly substantiated claims should be submitted on the basis of claim forms provided by the Commission, and within the specific time limit indicated in Article 3(3) of this Regulation.

(15)

As stated above, should circumvention practices via Kazakhstan covered by Article 13 of the basic Regulation, other than transhipment, be identified in the course of the investigation, the investigation may cover these practices also. Insofar as assembly practices may be identified, it would be necessary, in making an examination of the assembly operation in accordance with the provisions of Article 13(2) of the basic Regulation, to determine whether the company claiming the exemption operates under market economy conditions i.e. that they meet the criteria laid down in Article 2(7)(c) of the basic Regulation. For this purpose, duly substantiated claims should be submitted on the basis of claim forms provided by the Commission, and within the specific time limit indicated in Article 3(3) of this Regulation.

(16)

Pursuant to Article 14(5) of the basic Regulation, imports of the product under investigation should be made subject to registration in order to ensure that, should the investigation result in findings of circumvention, anti-dumping duties of an appropriate amount can be levied retroactively from the date of registration of certain zinc oxides consigned from Kazakhstan.

(17)

In the interest of sound administration, time limits should be stated within which:

(18)

Attention is drawn to the fact that the exercise of most procedural rights set out in the basic Regulation depends on the party's making itself known within the time limits mentioned in Article 3 of this Regulation.

(19)

In cases in which any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, provisional or final findings, affirmative or negative, may be made in accordance with Article 18 of the basic Regulation, on the basis of the facts available.

(20)

Where it is found that any interested party has supplied false or misleading information, the information shall be disregarded and use may be made of facts available. If an interested party does not cooperate or cooperates only partially and findings are therefore based on facts available in accordance with Article 18 of the basic Regulation, the result may be less favourable to that party than if it had cooperated,