Judgment of the General Court (Seventh Chamber) of 17 February 2011 – Zhejiang Xinshiji Foods and Hubei Xinshiji Foods v Council

(Case T-122/09)

Dumping – Imports of prepared or preserved citrus fruits originating in the People’s Republic of China – Rights of the defence – Duty to state reasons – Principle of sound administration – Article 15(2) and Article 20(4) and (5) of Regulation (EC) No 384/96 (now Article 15(2) and Article 20(4) and (5) of Regulation (EC) No 1225/2009)

1.                     European Union law – Principles – Rights of the defence – Observance thereof in the context of administrative proceedings – Antidumping – Duty of the institutions to keep the undertakings concerned informed – Scope – Means of communication – Non-compliance with the one-month period between communication of the final information to the undertakings concerned and the final decision or proposal for a final decision of the Commission – Effect (Council Regulation No 384/96, Art. 20(4)) (see paras 26-27, 29)

2.                     Common commercial policy – Protection against dumping – Investigation – Duty of the institutions to keep the undertakings concerned informed – Scope – Failure, in the final information document, to give precise explanations as to the method of calculating the sales volumes of the Community industry – Effect (Council Regulation No 384/96, Art. 20) (see paras 37-38, 40-42)

3.                     Common commercial policy – Protection against dumping – Injury – Factors to be taken into consideration – Factors other than imports causing injury to the Community industry – Effect of the prices of raw materials (Council Regulation No 384/96, Art. 3(5) to (7)) (see paras 52-62)

4.                     Common commercial policy – Protection against dumping – Injury – Discretion of the institutions – Limits – Duty to make a diligent and impartial examination of all the relevant circumstances – Duty of the institutions to keep the undertakings concerned informed – Commission not communicating factors demonstrating that the comparison between the export prices and the prices of the Community industry was fair – Breach of the rights of the defence and the duty to state reasons (Council Regulation No 384/96, Arts 3(2) and (3) and 20) (see paras 75-80, 84-86, 90-91)

5.                     Acts of the institutions – Statement of reasons – Obligation – Scope – Correction of an error of reasoning during the proceedings before the Court – Not permissible (Art. 296 TFEU) (see para. 92)

6.                     Actions for annulment – Grounds – Infringement of essential procedural requirements – Infringement by an institution of its rules of procedure (Art. 263 TFEU; Council Regulation No 384/96, Art. 15(2)) (see paras 102-110)

Re:

APPLICATION for annulment of Council Regulation (EC) No 1355/2008 of 18 December 2008 imposing a definitive anti‑dumping duty and collecting definitively the provisional duty imposed on imports of certain prepared or preserved citrus fruits (namely mandarins etc.) originating in the People’s Republic of China (OJ 2008 L 350, p. 35) in so far as it concerns the applicants.

Operative part

The Court:

1. Annuls Council Regulation (EC) No 1355/2008 of 18 December 2008 imposing a definitive anti‑dumping duty and collecting definitively the provisional duty imposed on imports of certain prepared or preserved citrus fruits (namely mandarins etc.) originating in the People’s Republic of China in so far as it concerns Zhejiang Xinshiji Foods Co. Ltd and Hubei Xinshiji Foods Co. Ltd;

2. Orders Zhejiang Xinshiji Foods and Hubei Xinshiji Foods to bear half of their own costs;

3. Orders the Council of the European Union to bear its own costs and to pay half of the costs incurred by Zhejiang Xinshiji Foods and Hubei Xinshiji Foods;

4. Orders the European Commission to bear its own costs.