Notice of initiation of an anti-subsidy proceeding concerning imports of optical fibre cables originating in the People’s Republic of China

30/11/2020

The European Commission (‘the Commission’) has received a complaint pursuant to Article 10 of Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports from countries not members of the European Union (1) (‘the basic Regulation’), alleging that imports of optical fibre cables, originating in the People’s Republic of China are being subsidised and are thereby causing injury (2) to the Union industry. 1. Complaint The complaint was lodged on 5 November 2020 by Europacable (‘the complainant’). The complaint was made on behalf of the Union industry of optical fibre cables (‘OFC’) in the sense of Article 10(6) of the basic Regulation. An open version of the complaint and the analysis of the degree of support by Union producers for the complaint are available in the file for inspection by interested parties. Section 5.6 of this Notice provides information about access to the file for interested parties. 2. Product under investigation The product subject to this investigation is single mode optical fibre cables, made up of one or more individually sheathed fibres, with protective casing, whether or not containing electric conductors (‘the product under investigation’). The following products are excluded: (i) cables in which all the optical fibres are individually fitted with operational connectors at one or both extremities; and (ii) plastic insulated optical fibre cables for submarine use, containing a copper or aluminium conductor, in which fibres are contained in metal module(s). All interested parties wishing to submit information on the product scope must do so within 10 days of the date of publication of this Notice(3). 3. Allegation of subsidisation The product allegedly being subsidised is the product under investigation originating in the People’s Republic of China (‘the PRC’ or ‘the country concerned’) currently classified under CN code ex 8544 70 00 (TARIC code 8544 70 00 10). The CN and TARIC codes are given for information only. The complaint contains sufficient evidence that the producers of the product under investigation from the country concerned have benefitted from a number of subsidies granted by the Government of the People’s Republic of China (‘the GOC’). The alleged subsidy practices consist, inter alia, of (1) direct transfer of funds and potential direct transfers of funds or liabilities, (2) government revenue forgone or not collected, (3) government provision of goods or services for less than adequate remuneration and (4) payments to a funding mechanism or entrusting or directing of a private body. The complaint contained evidence, for example, of various grants, of provision of loans and credit lines provided by State- owned banks and other financial institutions at preferential terms, of provision of export credits by State-owned banks and other financial institutions and of provision of insurances and guarantees; of income tax reductions, deductions and exemptions, of accelerated depreciation schemes; and of government provision of goods (such as electricity) for less than adequate remuneration.

CBAM