London (Platts)--6Jul2012/759 am EDT/1159 GMT - The European Commission has launched an investigation into imports of silicon metal into the European Union from Taiwan following a complaint that existing antidumping measure are being circumvented, the EC said Friday.

The EC has received a request "to investigate the possible circumvention of the antidumping measures imposed on imports of silicon originating in the People's Republic of China and to make imports of silicon consigned from Taiwan, whether declared as originating in Taiwan or not, subject to registration," it said in Friday's edition of the EU Official Journal.

The request was lodged on May 15 by ferroalloys industry group Euroalliages on behalf of producers representing 100% of EU production of silicon.

In May 2010, the EC renewed its definitive antidumping duty on imports of silicon metal originating in China and South Korea into the EU for a further five years, but cut the duty rate to 16.3-19% from the previous 49%.

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In March 2004, the EC imposed a definitive antidumping duty of 49% on imports of silicon originating in China; the duty was extended to imports of silicon consigned from the Republic of Korea, whether declared as originating in the Republic of Korea or not, in January 2007.

Euroalliages' request "contains sufficient prima facie evidence that the antidumping measures on imports of silicon originating in the People's Republic of China are being circumvented by means of transhipment via Taiwan," the EC said Friday.

"There is a significant change in the pattern of trade involving exports from the People's Republic of China and Taiwan to the Union which has taken place following the imposition of measures on the product concerned, without sufficient due cause or justification for such a change other than the imposition of the duty," the EC said.

This change appears to stem from the transhipment of silicon originating in China via Taiwan to the EU, it said, adding: "Furthermore, the evidence points to the fact that the remedial effects of the existing antidumping measures on the product concerned are being undermined both in terms of quantity and price."

Imports of the product under investigation are being made "at prices well below the non-injurious price established in the investigation that led to the existing measures, adjusted for the increase in the costs of the raw material, the EC noted.

As a result, the EC said it has decided to launch a formal investigation into whether imports of silicon metal from Taiwan are circumventing existing antidumping measures.