20.10.2007 Official Journal of the European Union L 27715 COMMISSION REGULATION (EC) No 1228/2007 of 19 October 2007 terminating the investigation concerning possible circumvention of countervailing measures imposed by Council Regulation (EC) No 1628/2004 on imports of certain graphite electrode systems originating in India THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidised imports from countries not members of the European Community (the basic Regulation) (1), and in particular Articles 14 and 23 thereof, Whereas: A. PROCEDURE 1. Existing measures and former investigations Following parallel anti-dumping and anti-subsidy proceedings, the Council imposed, by Regulation (EC) No 1628/2004 (3) (the original Regulation), definitive countervailing measures of 15,7 % for Graphite India Limited, 7,0 % for HEG Limited and 15,7 % for all other companies on imports of certain graphite electrode systems originating in India. 2. Request On 15 January 2007 the Commission received a request pursuant to Article 23(2) of the basic Regulation to investigate the alleged circumvention of the counter- vailing measures imposed on imports of certain graphite electrode systems originating in India. The request was submitted by the European Carbon and Graphite Association (ECGA) on behalf of Community producers of certain graphite electrode systems. The request contained prima facie evidence showing that there had been a change in the pattern of trade following the imposition of the countervailing measures on imports of certain graphite electrode systems originating in India, as shown by a significant increase in imports of artificial graphite from India (the product under investi- gation) while imports of certain graphite electrode systems from India (the product concerned) had decreased substantially during the same period. (") OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Regu- lation (EC) No 461/2004 (O] L 77, 13.3.2004, p. 12). () OJ L 295, 18.9.2004, p. 4. 4 The request to investigate the alleged circumvention of the duties in force argued that one exporting producer of the product concerned originating in India was, after imposition of the duties, exporting the product under investigation to its related company in the Community. This company was then performing a completion operation in the Community to produce the product concerned from the product under investigation. It was alleged that there was insufficient due cause or economic justification for these changes other than the existence of the countervailing duties on certain graphite electrode systems originating in India. Finally, the applicant alleged that the remedial effects of the existing countervailing measures on the product concerned were being undermined in terms of quantity and that the imported product still benefited from the subsidy. 3. Initiation The Commission initiated an investigation by Regulation (EC) No 217/2007 (%) (the initiating Regulation) into the alleged circumvention and, pursuant to Articles 23(2) and 24(5) of the basic anti-subsidy Regulation, directed the customs authorities to register imports of the product under investigation, being artificial graphite rods of a diameter of 75 mm or more originating in India, falling under CN code ex 3801 10 00 (TARIC code 3801 10 00 10), as from 2 March 2007. 4. Investigation The Commission advised the authorities of India of the initiation of the investigation. Questionnaires were sent to the exporting producers in India as well as to importers in the Community named in the request or known to the Commission from the previous investi- gation. Interested parties were given the opportunity to make their views known in writing and to request a hearing within the time limit set in the initiating Regu- lation. Two exporting producers in India submitted complete replies to the questionnaire. One reply was also received from an importer in the Community. () O] L 62, 1.3.2007, p. 19.