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1. PREVIOUS INVESTIGATIONS AND EXISTING MEASURES CONCERNING NORWAY (1) In September 1997 the Council, by Regulations (EC) No 1890/97(3) and No 1891/97(4), imposed definitive anti-dumping and countervailing duties on imports of farmed Atlantic salmon originating in Norway. By Decision 97/634/EC(5), the Commission accepted undertakings from a large number of exporters/producers from Norway to respect, inter alia, certain minimum import prices. In December 1998, the Commission announced by way of a notice published in the Official Journal of the European Communities(6) the initiation of an ex officio investigation pursuant to Article 11(3) of Regulation (EC) No 384/96 and Article 19(1) of Regulation (EC) No 2026/97 in order to review the possibility of a change in the form of the duties so that imports of salmon at injurious prices would be prevented. Subsequently, the Council repealed and replaced Regulations (EC) No 1890/97 and No 1891/97 by a single Council Regulation (EC) No 772/1999(7).

(2) In parallel to the abovementioned anti-dumping and countervailing duties and undertakings, an agreement known as the "Agreement on a solution to the salmon case" (Salmon Agreement) was signed between the Commission and the Norwegian government providing for supporting measures to be managed within the framework of regular contacts between the signatories.

2. INTERIM AND EXPIRY REVIEW INVESTIGATIONS CONCERNING NORWAY

(3) On the basis of the information received by the Commission within the framework of the Salmon Agreement and information obtained from various other sources in 2001, the Commission considered there to be sufficient grounds to warrant the initiation of a further interim review of the existing measures. In particular, it appeared that the form of the measures (including the undertakings) was no longer appropriate to remove the injurious effects of dumping and subsidisation given the disturbances present in the Community market. It also appeared, given the evidence provided by the Norwegian authorities concerning normal value and the available information on export prices to the Community, that the dumping margins established may have changed significantly. Furthermore, in the light of information received from the Norwegian authorities concerning changes to the export tax and certain information received from Community producers of farmed Atlantic salmon, it was considered appropriate to review in parallel the effectiveness of the form and level of the countervailing measures. Finally, given other information concerning developments in the ownership structure of salmon producing companies in the Community and production costs and the resale prices of Norwegian imports, whose volume was substantial, it was considered necessary to review the findings relating to injury in respect of the anti-dumping and countervailing measures.

(4) Therefore, having determined, after consultation of the Advisory Committee, that sufficient evidence existed to justify the initiation of an interim review, the Commission announced by way of a notice (notice of initiation) published in the Official Journal of the European Communities(8), the initiation of an investigation pursuant to Article 11(3) of the basic anti-dumping Regulation and Article 19(1) of the basic anti-subsidy Regulation with regard to imports into the Community of farmed Atlantic salmon originating in Norway, covering both the form and the level of the anti-dumping and countervailing measures.

(5) According to Article 11(7) of the basic anti-dumping Regulation and Article 22(3) of the basic anti-subsidy Regulation, when an interim review of measures is in progress at the time when measures are due to expire, the interim review must also cover those aspects, which under other circumstances, would be dealt with within the scope of an expiry review opened under Article 11(2) of the basic anti-dumping Regulation and Article 18(1) of the basic anti-subsidy Regulation. The Commission therefore had to investigate whether the expiry of the measures would be likely to result in a continuation or recurrence of dumping, subsidisation and injury. In this context, the Commission informed all interested parties of the extension in the scope of the review and sought opinions as to whether the expiry of the measures would be likely or unlikely to lead to the continuation or recurrence of dumping and injury, and/or the continuation or recurrence of subsidisation and injury.

3. INITIATION OF AN ANTI-DUMPING PROCEEDING CONCERNING CHILE AND THE FAEROE ISLANDS

(6) On 18 July 2002, the Commission announced by a notice published in the Official Journal of the European Communities(9), the initiation of an anti-dumping proceeding concerning imports of farmed Atlantic salmon originating in Chile and the Faeroe Islands.

(7) The proceeding was initiated as a result of a complaint lodged on 3 June 2002 by the EU Salmon Producers' Group (the complainant) on behalf of producers representing a major proportion of the Community production of farmed Atlantic salmon within the meaning of Article 4 of the basic anti-dumping Regulation. The complaint contained sufficient prima facie evidence of dumping and material injury resulting therefrom to justify the initiation of an anti-dumping proceeding.

4. PARTIES CONCERNED BY THE INVESTIGATIONS

(8) The Commission officially advised the exporting producers and importers/traders known to be concerned as well as their associations, the authorities of Norway and Chile, and the Home Government of the Faeroe Islands, users, suppliers and Community producers of the initiation of the investigations. Interested parties were given an opportunity to make their views known in writing and to request a hearing within the time limit set in the notices of initiation.

(9) A number of exporting producers and traders in Norway, Chile and the Faeroe Islands, producers and suppliers located in the Community as well as representative associations of fish importers, processors and consumers made their views known in writing. All parties who so requested within the above time limit and showed that there were particular reasons why they should be heard were granted the opportunity to be heard.

(10) In view of the apparent large number of exporting producers of the product concerned in Norway, Chile and the Faeroe Islands and the large number of producers of the product in the Community, the application of sampling techniques for the investigation of injurious dumping and subsidisation in the review and injurious dumping in the investigation concerning Chile and the Faeroe Islands was envisaged in the notices of initiation.

(11) The Commission sought and verified all information it deemed necessary for the purposes of the investigations. With regard to the investigation concerning imports originating in Chile and the Faeroe Islands, this included all information deemed relevant for the determination of dumping, injury and Community interest. With regard to the investigation concerning imports originating in Norway, this included all information deemed relevant for the determination of dumping, subsidisation and injury and also the determination as to whether there was a likelihood of a continuation and/or recurrence of injurious dumping and subsidisation and the assessment of Community interest. Verification visits were carried out at the following:

(a) The Government of Norway and other entities in Norway - Ministry of Fisheries, Oslo, - Ministry of Local Government and Regional Development, Oslo, - Ministry of Trade and Industry, Oslo, - Norwegian Industrial and Regional Development Fund (SND), Oslo, - The Research Council of Norway, Oslo.

(b) Community producers - Orkney Sea Farms Ltd. Glasgow, United Kingdom, - Muirachmhainní Teo, Co. Galway, Ireland, - Ardvar Salmon Ltd, Saffron Walden, United Kingdom, - Hoganess Salmon Ltd, Wester Sound Salmon Ltd, Shetland, United Kingdom, - Cro Lax Ltd, Shetland, United Kingdom, - Bressay Salmon Ltd, Shetland, United Kingdom, - West Minch Salmon Ltd, Atlantic West Salmon Ltd, Sidinish Salmon Ltd, South Uist, United Kingdom, - Loch Duart Ltd, Edinburgh, United Kingdom, - Hoove Salmon Ltd, Shetland, United Kingdom, - North Atlantic Salmon Ltd, Shetland, United Kingdom, - Ayre Salmon Ltd, Shetland, United Kingdom.

(c) Exporters/producers and related sales companies Norway - Midt-Norsk Havbruk AS, Rørvik, - Lofoten Sjøprodukter AS, Leknes, - Follalaks AS, Nordfold, - Terra Seafood AS, Trondheim, - Marine Harvest Norway AS, Bergen, - Aqua Farms AS, Bergen,

- Naco Trading AS, Bergen, - Aalesundfisk AS, Aalesund, - Alsaker Fjordbruk AS, Onarheim, - Labeyrie Norge AS, Oslo. Chile - Marine Harvest Chile S.A., Puerto Montt, - Salmones Multiexport Ltda, Puerto Montt, - Pesca Chile S.A., Santiago, - Invertec Pesquera Mar de Chiloé S.A., Santiago, - Cultivos Yadran S.A., and Yadran Quellón S.A., Quellón, Chiloé Island, The Faeroe Islands - P/F Vestlax, and P/F Vestsalmon, Kollafjørður, - P/F East Salmon, Klaksvík, - P/F Faeroe Seafood, Tórshavn, - P/F Bakkafrost, Glyvrar.

(d) Related importers in the Community - Armoric S.A., Quimper, France, - Vensy España S.A., Málaga, Spain, - Narvik S.A., Landivisiau, France, - Benfumat S.A., St. Feliu de Llobregat, Spain, - H. Van Wijnen, Krimpen a/d Ijssel, Netherlands, - A-fish Skagen AS, Skagen, Denmark, - Labeyrie S.A., Saint Geours de Maremne, France.

(e) Unrelated importers in the Community - Moulin de la Marche, Brittany, France.

(f) Suppliers - Landcatch Ltd, Argyll, United Kingdom.