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 silicon originating in the People’s Republic of China.

The request was lodged on 6 March 2006 by Euro Alliages on behalf of producers representing a major proportion, i.e. 100 % of the Community production of silicon.

The product concerned by the possible circumvention is silicon originating in the People’s Republic of China, normally declared under CN code ex 2804 69 00 (the product concerned). This code is given for information only.

The product under investigation is silicon consigned from the Republic of Korea (the product under investigation) normally declared under the same code as the product concerned.

The measures currently in force and possibly being circumvented are antidumping measures imposed by Council Regulation (EC) No 398/2004.

The request contains sufficient prima facie evidence that the anti-dumping measures on imports of silicon originating in the People’s Republic of China are being circumvented by means of the transhipment via Republic of Korea of silicon.

The request shows that a significant change in the pattern of trade involving exports from the People’s Republic of China and the Republic of Korea to the Community has taken place, and that there is insufficient due cause or economic justification other than the imposition of the duty for such a change.

This change in the pattern of trade appears to stem from the transhipment of silicon originating in the People’s Republic of China via the Republic of Korea.

Furthermore, the request contains sufficient prima facie evidence that the remedial effects of the existing anti-dumping measures on the product concerned are being undermined both in terms of quantity and price. Significant volumes of imports of silicon from the Republic of Korea appear to have replaced imports of the product concerned. In addition, there is sufficient evidence that this increase in imports is made at prices well below the non-injurious price established in the investigation that led to the existing measures.

Finally, the request contains sufficient prima facie evidence that the prices of silicon are dumped in relation to the normal value previously established for the product concerned.

Should circumvention practices via the Republic of Korea 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.

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 silicon consigned from the Republic of Korea, whether declared as originating in the Republic of Korea or not, subject to registration, in accordance with Article 14(5) of the basic Regulation.

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 such imports consigned from the Republic of Korea.

interested parties may make themselves known to the Commission, present their views in writing and submit questionnaire replies or any other information to be taken into account during the investigation, producers in the Republic of Korea may request exemption of imports from registration or measures, interested parties may make a written request to be heard by the Commission.

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.

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.

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,