9.5.2001 Official Journal of the European Communities L 127/35 COMMISSION REGULATION (EC) No 909/2001 of 8 May 2001 initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed by Council Regulation (EC) No 368/98 on imports of glyphosate originating in the People's Republic of China by imports of glyphosate consigned from Malaysia or Taiwan, and making such imports subject to registration THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (), as last amended by Regulation (EC) No 2238/2000 (3, and in partic- ular Article 13(3) and Article 14(5) thereof, After having consulted the Advisory Committee, Whereas: A. REQUEST (1)  The Commission has received a request pursuant to Article 13(3) of Regulation (EC) No 384/96 (‘the basic Regulation’) to investigate the alleged circumvention of the anti-dumping measures imposed on imports of glyphosate originating in the People's Republic of China. (2)  The request has been lodged on 26 March 2001 by the European Glyphosate Association (EGA) on behalf of a major proportion of Community producers of glypho- sate. B. PRODUCT (3)  The product concerned by the allegation of circumven- tion is glyphosate, which can be produced in different grades or forms of concentration of which the main ones are the following: formulated (generally with 36 % glyphosate content), salt (with 62 %), cake (with 84 %) and acid (95 %), currently classifiable within CN codes ex 29310095 (TARIC code 29310095 80) and ex 3808 3027 (TARIC code 3808 3027 10). These codes are given for information only. C. EXISTING MEASURES (4)  The measures currently in force and allegedly being circumvented are anti-dumping measures imposed by Council Regulation (EC) No 368/98 (%), as last amended by Regulation (EC) No 1086/2000 (*). This latter Regula- tion increased the rate of duty applicable to 48 % pursuant to Article 12 of the basic Regulation. 1 () O] L 56, 6.3.1996, p. 1. () O] L 257, 11.10.2000, p. 2. () O] L 47, 18.2.1998, p. 1. ( O] L 124, 25.5.2000, p. 1. D. GROUNDS The request contains sufficient evidence that the anti- dumping measures on imports of glyphosate originating in the People's Republic of China are being circum- vented by means of either transhipment via Malaysia or Taiwan or formulation in Malaysia or Taiwan of glypho- sate originating in the People's Republic of China for re-export to the Community, for which there appears to be insufficient due cause or economic justification. The evidence submitted is as follows: (a) the request shows that a significant change in the pattern of trade involving exports from the People's Republic of China, Malaysia and Taiwan to the Community has taken place following imposition of measures. Imports from Malaysia and Taiwan have increased significantly while imports from the People's Republic of China have decreased substan- tially. This change in the pattern of trade appears to stem from a transhipment of glyphosate originating in the People's Republic of China via Malaysia or Taiwan and also from the formulation in Malaysia or Taiwan of glyphosate originating in the People's Republic of China. The formulation is a relatively simple opera- tion which consists of diluting glyphosate salt with water and blending it with surfactant. There seems to be insufficient due cause or economic justification for these practices other than the existence of the anti-dumping duty on glyphosate originating in the People's Republic of China; (b) furthermore, the request contains sufficient evidence that the remedial effects of the existing anti-dumping duties on glyphosate are being undermined both in terms of quantities and price. Significant volumes of imports of glyphosate from Malaysia and Taiwan appear to have replaced imports from the People's Republic of China. In addition, there is sufficient evidence that this increase in imports is made at prices well below the non-injurious price established in the original investigation; (c) finally, the request contains sufficient evidence which shows that dumping is taking place in rela- tion to the normal value previously established, for imports consigned from Malaysia or Taiwan.