2000R2042 — EN — 02.02.2001 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC)No 2042/2000
of 26 September 2000
imposing a definitive anti-dumping duty on imports of television camera systems originating in
Japan
(OJ L 244, 29.9.2000, p. 38)
Amended by:
OfficialJournal
No page date
►M1 CouncilRegul ation (EC) No 2676/2000 of 4 December 2000 L 308 1 8.12.2000
►M2 CouncilRegul ation (EC) No 198/2001 of 29 January 2001 L 30 1 1.2.2001
▼B
COUNCIL REGULATION (EC)No 2042/2000
of 26 September 2000
imposing a definitive anti-dumping duty on imports of television
camera systems originating in Japan
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to CouncilRegul ation (EC) No 384/96 of 22 December
1995 on protection against dumped imports from countries not members
of the European Community (1), and in particular Article 9 and 11(2)
thereof,
Having regard to the proposalsubmitted by the Commission after having
consulted the Advisory Committee,
Whereas:
A.PROCEDURE
1.Previous investigations
(1) In April1994, further to an anti-dumping investigation initiated in
March 1993 (‘the originalinvestigation’), the Council , byRegulation (EC) No 1015/94 (
2) (‘definitive Regulation’),
imposed a definitive anti-dumping duty on imports of televisioncamera systems (‘TCS’) originating in Japan. The original
investigation covered the period from 1 July 1991 to 31
December 1992.
(2) In October 1997, further to an investigation (‘the anti-absorptioninvestigation’) pursuant to Article 12 of Council Regulation (EC)No 384/96 (the ‘basic Regulation’), the Council, by Regulation(EC) No 1952/97 (
3), raised the rates of the definitive anti-
dumping duty for two companies concerned, namely for Sony
Corporation (‘Sony’) and Ikegami Tsushinki & Co Ltd to 108,3 %and 200,3 % respectively.
(3) In June 1998, the Commission, by Regulation (EC) No 1178/98 (
4) initiated, pursuant to Article 13 of the basic Regulation, an
investigation concerning the alleged circumvention of the anti-dumping measures in force by the assembly of parts and modules
of TCS in the Community (‘the anti-circumvention investiga-
tion’). Subsequently the complaining Community industrywithdrew its complaint and the proceeding was terminated inFebruary 1999. On the basis of the evidence found during thisinvestigation, the Commission initiated a proceeding pursuant toArticle 5 of the basic Regulation concerning the imports of certain
parts of TCS originating in Japan (
5) (‘the parts investigation’).
(4) In addition, an anti-dumping investigation pursuant to Article 5 of
the basic Regulation was initiated in January 1999 concerning theimports of TCS originating in the United States of America(US) (
6) (‘the US investigation’). This investigation was termi-
nated on 1 February 2000, without the imposition of any measures
following the closure of the production facilities of the single US
exporting producer of TCS, a company related to a majorJapanese exporting producer of TCS.2000R2042 — EN — 02.02.2001 — 002.001 — 2
(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No
905/98 (OJ L 128, 30.4.1998, p.18).
(2) OJ L 111, 30.4.1994, p.106. Regulation as last amended by Council
Regulation (EC) No 176/2000 (OJ L 22, 27.1.2000, p. 29).
(3) OJ L 276, 9.10.1997, p. 20.
(4) OJ L 163, 6.6.1998, p. 20.
(5) OJ C 38, 12.2.1999, p. 2.
(6) OJ C 17, 22.1.1999, p. 4.
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2.Present investigation
2.1.Expiry review
(5) Following the publication of a notice of impending expiry (1)o f
the anti-dumping measures in force on imports of TCS originatingin Japan, the Commission received a request to review thesemeasures pursuant to Article 11(2) of the basic Regulation.
(6) The request was lodged on 28 January 1999 by Philips DigitalVideo Systems and Thomson Broadcast Systems (the ‘applicantCommunity producers’ or the ‘Community industry’), whosecollective output of TCS constitutes 100 % of the Communityproduction of this product pursuant to Articles 4(1) and 5(4) ofthe basic Regulation.
(7) The request was based on the grounds that the expiry of themeasures would be likely to result in the continuation orrecurrence of dumping and injury to the Community industry.
(8) Having determined, after consulting the Advisory Committee,that sufficient evidence existed for the initiation of an expiryreview, the Commission initiated the present investigationpursuant to Article 11(2) of the basic Regulation by the
publication of a notice in the Official Journal of the European
Communities on 30 April1999 (
2).
3.Investigation
(9) The Commission officially advised the applicant Community
producers, the exporting producers in Japan and the representa-
tives of the government of the exporting country, of the initiation
of the review. The Commission sent questionnaires to all theseparties and to those who made themselves known within the timelimit set in the Notice of Initiation. The Commission also gave theparties directly concerned the opportunity to make their viewsknown in writing and to request a hearing.
(10) The applicant Community producers replied to the questionnaire.Only one Japanese exporting producer and no unrelated importerreplied to the questionnaire. Fifteen users replied to thequestionnaire, although some of them did so only partially, and
an association of users provided certain information.
(11) The Commission sought and verified all information it deemed
necessary for the purpose of a determination of the likelihood of
continuation or recurrence of dumping and injury and of the
Community interest. Verification visits were carried out at thepremises of the following companies:
(a) applicant Community producers:
— Philips BTS Broadcast Television Systems b.v., Breda
(‘Philips’)
— Thomson Broadcast Systems, Cergy St Christophe
(‘Thomson’).
(b) Exporting producers in Japan
— Hitachi Denshi, Ltd.
(12) The investigation of the likelihood of a continuation and/or
recurrence of dumping covered the period from 1 January 1998 to31 December 1998 (the ‘investigation period’ or ‘IP’). Theexamination of trends relevant for the assessment of any
continuation and/or recurrence of injury covered the period
from 1 January 1995 to 31 December 1998 (hereinafter referred toas ‘IIP’).2000R2042 — EN — 02.02.2001 — 002.001 — 3
(1) OJ C 334, 31.10.1998, p. 15.
(2) OJ C 119, 30.4.1999, p. 11.
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B.PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT
1.Product under consideration
(13) The product under consideration is television camera systems
(TCS) currently classified under CN-codesexex 8525 30 90,ex 8537 10 91, ex 8537 10 99, ex 8529 90 81, ex 8529 90 88,ex 8543 89 95, ex 8528 21 14, ex 8528 21 16 andex 8528 21 90 originating in Japan.
(14) As set out in the definitive Regulation, TCS may consist of thefollowing parts, imported either together or separately:
— a camera head with three or more sensors (12 mm or more
charge-coupled pick-up devices) with more than 400 000pixels each, which can be connected to a rear adapter, andhaving a specification of the signalto noise ratio of 55 dB ormore at normalgain; either in one piece with the camera headand the adapter in one housing, or separate;
— a viewfinder (diagonalof 38 mm or more);— a base station or camera controlunit (CCU) connected to the
camera by a cable;
— an operationalcontrolpanel(OCP) for camera control(i.e. for
colour adjustment lens opening or iris) of single cameras;
— a master controlpanel(MCP) or master set-up unit (MSU)
with selected camera indication, for the overview and foradjustment of severalremote cameras.
(15) Products not covered by the above-definition are:
— Lenses;
— Video tape recorders;— Camera heads with the recording unit in the same, inseparable,
housing;
— Professionalcameras which cannot be used for broadcast
purposes;
— Professionalcameras l isted in the Annex (TARIC additional
code: 8786).
(16) During the course of the investigation it was found that a newmodelof TCS had been devel oped as from 1997, i.e. abroadcasting camera head which is connected to a videotaperecorder (‘camcorder’). The investigation has shown that both the
Community industry and the exporting producers offer their
television camera heads, in general, with different configurations,either connected to a triax adapter or to a recording unit. Asindicated above, videotape recorders and camera heads with arecording unit in the same housing are excluded from the product
scope of the current proceeding. However, camcorders may also
consist of a camera head docked with a videotape recorderwithout both being within the same housing. On this basis it wasconcluded that such type of camera head falls into the definitionof the product under consideration made in the definitiveRegulation. Furthermore, it has been established that on the basis
of the definition of the product under consideration mentioned
above the recording unit alone does not fall under it.
(17) The investigation has also shown that analogue broadcast TCS
have been gradually replaced by a new type of TCS, digital
broadcast TCS (‘digitalTCS’) which have been introduced in theCommunity market as from 1997. These digitalTCS fal linto thedefinition of the product under consideration in the definitiveRegulation.
2.Like product
(18) It was found that there were no basic differences in the physical
and technicalcharacteristics and uses of the TCS manufacturedby Japanese exporting producers and sold in the Community, andthe product manufactured and sold on the domestic market of theexporting country.2000R2042 — EN — 02.02.2001 — 002.001 — 4
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(19) Furthermore, the product concerned manufactured by Japanese
exporting producers and sold in the Community and the product
manufactured and sold by the applicant Community producers onthe Community market use the same basic technology and areboth conform with world-wide applicable industry standards.These products also have the same applications and uses, theyconsequently have similar physical and technical characteristics,
are interchangeable and competing with each other. Furthermore,
both the applicant Community producers and the Japaneseexporting producers manufacture digitalproducts and camcorders,which have been the latest technological developments related tothe product concerned as compared with the originalinvestiga-
tion. Therefore, TCS manufactured by Japanese exporting
producers and sold in the Community and TCS manufacturedand sold by the complaining Community industry in theCommunity market are alike within the meaning of Article 1(4)of the basic Regulation.
C.LIKELIHOOD OF RECURRENCE OR CONTINUATION OF
DUMPING
(20) In accordance with Article 11(2) of the basic Regulation, the
purpose of this type of review with regard to the dumping aspectsis to determine whether or not, the expiry of measures would leadto a continuation and/or recurrence of dumping.
1.Level of cooperation
(21) As compared to previous investigations, the level of cooperation
in the present investigation by the Japanese exporting producerswas particularly low. Only one of the smaller producers of TCScooperated and reported a marginalnumber of exports of the
product concerned to the Community. The remaining three
companies which had made themselves known in the originalinvestigation refused to provide any cooperation although it iswidely known that they have their head offices, main productionand R&D facilities in Japan and that, for at least two of them,
TCS with their brand name have been sold in the Community
during the IP in substantialquantities.
2.Likelihood of continuation of dumping
(22) Given the low degree of cooperation and the fact that the
statistical information available from Eurostat in this respect wasconsidered not to be reliable (the CN codes also cover products
not concerned), it could not be established with certainty whether
there were imports of TCHs as such from Japan. However, it isrecalled that during the IP, important parts of TCS were importedinto the Community. Moreover, it was established that TCSproduced in the US by a subsidiary of Sony were imported into
the Community in significant quantities. On balance, it was
therefore considered prudent to conclude that the current importvolumes of TCS originating in Japan were low when comparedwith import volumes during the original investigation period.Hence, no conclusion was made regarding the likelihood ofcontinuation of dumping.
3.Likelihood of recurrence of dumping
(23) In the absence of cooperation from the main Japanese exporting
producers, and in accordance with Article 18 of the basicRegulation, findings had to be established on the basis of factsavailable. Consequently, and in the absence of any other reliable
source, the analysis regarding the likelihood of recurrence of
dumping, should the measures be allowed to expire, was based oninformation provided in the request for a review as well asinformation obtained in the course of the investigation from theCommunity industry and users of TCS.
(24) According to the request, the level of dumping for the camerahead alone is 30,6 %. The corresponding calculation contains a2000R2042 — EN — 02.02.2001 — 002.001 — 5
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number of conservative estimates. For instance, other elements of
a TCS have not been taken into consideration for the purpose ofthe aforementioned calculation although they are sometimes
supplied free of charge. This indicates that the actual level of
dumping in case of a repeal of the duty would most likely behigher than 30,6 %.
(25) The request also shows that dumping margins would reach at leastat the level found in the original investigation should measures be
repealed.
(26) On this basis, and in the absence of any more appropriate
information, it has been concluded that, should measures berepealed, the dumping margins would resume at significant levels.
(27) As far as the likely future volume of exports of TCS to theCommunity is concerned, it was found that according to the
information available, production capacity of TCS in Japan has
remained at least at the same level as that found in the originalinvestigation and it is large enough to allow for the resumption ofconsiderable exports to the Community if the anti-dumping dutywas to expire. This is confirmed by the fact that the sales of TCSassembled in the Community and in third countries, which usually
incorporate valuable and crucial TCS parts originating in Japan,
indicate that the production capacity was basically unchanged.
(28) Furthermore, given the mobile nature of the production,production capacity for these products may be expanded ifnecessary within months. Indeed, the fact that the manufacturing
facilities of one of the Japanese exporting producers were
transferred from the US to the Community in a time period ofsome months clearly shows that production capacity for theproduct concerned may be created/expanded or reduced in a shortperiod of time. Should the anti-dumping measures expire,manufacturing activities for TCS in the Community could be
transferred to Japan and production capacity in Japan could be
easily expanded in order to resume the exports to the Community.
(29) During the IIP, with the exception of Sony, all Japanese exportingproducers manufactured their TCS for the US and Latin Americanmarkets in Japan. Furthermore, on the basis of the informationavailable, it has been established that TCS destined for the
Japanese and Asian markets were being manufactured in Japan by
all exporting producers. Furthermore, R&D activities for theseproducts were also located in Japan since an important part ofthese activities benefit not only TCS but also professionalcameras as well as other products. The Japanese exporting
producers were able to adapt to the changing demand by
increasing their production in Japan when the market expanded.This led to the conclusion that there was free production capacityleft in Japan which was used when the consumption both in theCommunity and worldwide expanded. Therefore, should the anti-dumping measures expire, an increase in production of the
Japanese exporting producers is likely.
(30) It has been concluded that the existing production capacity, as
well as the possibility to increase it if necessary, constituted apotentialfor Japanese exporting producers to raise their produc-tion and export volumes to the Community in case the anti-dumping measure were to lapse. Considering that their R&D
facilities as well as the manufacturing facilities for the main part
of the components of the TCS were located in Japan, this wouldresult in an improvement of the economies of scales of theJapanese exporting producers.
(31) It should also be noted that the two Japanese exporting producers
which set up assembly facilities for TCS in the Community
maintained the production for export to the Community ofproducts not subject to anti-dumping duties in Japan, i.e. videotape recorders, camera heads with the recording unit in the same,inseparable housing and professional cameras that cannot be usedfor broadcast purposes. Although, as mentioned above, these2000R2042 — EN — 02.02.2001 — 002.001 — 6
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products are not covered by the present investigation, the
production lines and related capacity needed to produce themare also appropriate for the production of TCS. On this basis and
in the absence of any other information due to the lack of
cooperation from the exporting producers concerned, it wasconcluded that although the imposition of anti-dumping duties hasled to a change in the organisation of the production of TCS bythe exporting producers concerned, an expiry of the anti-dumping
measures would be likely to reverse this situation.
4.Conclusion
(32) It results from the above that the Japanese exporting producers
have the potentialto raise their production in Japan and theirexport volumes of TCS to the Community at significantly dumpedprices.
(33) The investigation revealed no facts showing that the situation
regarding normal value, export prices and consequently the
dumping margins established in the original investigation, theanti-absorption investigation and the anti-circumvention investi-gation have significantly changed. It is therefore concluded that,should the measures be repealed, there is a likelihood of
recurrence of dumping.
D.DEFINITION OF THE COMMUNITY INDUSTRY
(34) The investigation confirmed that the collective output of the two
applicant Community producers accounts for 100 % of the
Community production of TCS. The two producers are thereforedeemed to constitute the Community industry within the meaningof Article 4(1) and Article 5(4) of the basic Regulation.
(35) As to the other economic operators in the Community related tothe Japanese exporting producers, given the low degree ofcooperation, the nature of their activities within the Communitycould not be investigated in detail, i.e. whether these activities aresimple assembly operations or if there is a certain value added inthe Community. Therefore it could not be determined whether
these assembly operations are sufficient in order to qualify them
as companies manufacturing the product under consideration inthe Community. Furthermore, given their relation with theJapanese exporting producers, it was considered that they shouldbe excluded from the Community industry in accordance with
Article 4(1)(a) of the basic Regulation.
E.ANALYSIS OF THE SITUATION IN THE COMMUNITY
MARKET (1)
1.Preliminary remarks
(36) As described above, the product under consideration in the
current proceeding is TCS which consist of a camera head with
three or more sensors, a view finder, a base station or cameracontrolunit (CCU), an operationalcontrolpanel(OCP) and amaster controlpanel(MCP) or master set-up unit (MSU). Inpractice these components can be sold and therefore also
imported either together or separately.
(37) The investigation confirmed that while TCS do not always consist
of all of the above elements, they all necessarily include a camerahead. Therefore, in line with the approach taken in the originalinvestigation, it was decided to express the economic indicators
relating to the situation of the Community industry and the
situation on the Community market in terms of numbers oftelevision camera heads (‘TCHs’).2000R2042 — EN — 02.02.2001 — 002.001 — 7
(1) Given that there are only a very limited number of market participants, the
figures relating to them had to be indexed for confidentiality reasons.
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2.Consumption
(38) As mentioned above, only one of the Japanese exporting
producers cooperated in the present investigation. Thus, as
regards the other Japanese exporting producers that did notcooperate and for which the investigation has shown that they arestill operating on the Community market, the Commission madeuse of best facts available, in accordance with Article 18 of the
basic Regulation.
(39) Therefore, the apparent Community consumption of TCHs was
assessed on the basis of:
— the volume of sales in the Community as provided by the
Community industry and
— information on the sales volume of Japanese exporting
producers in the Community submitted by the Communityindustry and established on the basis of contracts and tenderslost by the Community industry to all Japanese exporting
producers on the Community market. This information was
considered reliable given the transparent nature of the marketin terms of size and number of market participants, it beinglargely supplied via tenders. Moreover, the informationprovided by users confirmed the information supplied by the
Community industry on the activity of the Japanese exporting
producers.
(40) Given the low degree of cooperation and the fact that thestatistical information available from Eurostat in this respect wasconsidered not to be reliable, it could not be established whether
TCHs were imported as such from Japan. However, regardless of
their origin, these TCHs have been effectively sold under therespective brand names on the Community market and have to betherefore included in the Community consumption for thisproduct.
(41) On this basis, the investigation has shown that, whereasconsumption was stable in 1995 and 1996, there was an overallexpansion in 1997, which continued during the investigationperiod. This was due, amongst other reasons, to the sales of TCHsfor broadcasting the football World Cup held in France in 1998and to the introduction of a new type of TCH, i.e. camcorders, in
the market which started from 1997. In overall terms, from 1995
to the investigation period, Community consumption increased by54 %, reaching around 1 500 units during the investigation period.
3.Imports and sales of TCHs by the Japanese exporting
producers in the Community
(42) Further to the imposition of the definitive anti-dumping duty onimports of TCHs originating in Japan in 1994, these imports havein any event decreased significantly. As confirmed by the
abovementioned anti-circumvention, parts and US investigations,
these imports have been replaced by imports of certain parts ofTCS originating in Japan which are being subsequently assembledin the Community by certain Japanese exporting producers and, inthe case of one Japanese exporting producer, with incomplete
TCHs imported from the US. Indeed, the current investigation has
shown that Japanese exporting producers have continued to sellTCHs on the Community market under their brand names.
(43) Thus, the decrease of imports of TCHs originating in Japan has tobe seen as a consequence of the anti-dumping duty in force since
1994. The fact that these imports have been replaced by sales of
TCHs assembled in the Community incorporating parts origi-nating in Japan shows already that, as explained below, there is alikelihood that imports from the country concerned would takeplace at the same levels as in the original investigation in caseanti-dumping measures are not maintained.2000R2042 — EN — 02.02.2001 — 002.001 — 8
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4.Economic situation of the Community industry
(44) Pursuant to Article 3(5) of the basic Regulation, all relevant
economic factors and indices having a bearing on the state of the
Community industry were examined.
(45) The economic indicators relating to the situation of the
Community industry have to be seen in the light of previousinvestigations concerning TCS originating in Japan, i.e. theoriginalinvestigation in 1994 and the subsequent anti-absorptioninvestigation which led to an increase of the rates of that anti-dumping duty. The present investigation has shown that the latter
had a positive effect on the situation of the Community industry.
In addition, two other factors linked to technological developmentalso had an impact on some of the indicators below, i.e. the abovementioned introduction of the camcorders, a new kind of TCHs,in the market as from 1997 and the development of the new
generation of digitalTCHs which al so started in 1997.
4.1.Production
(46) Totalproduction of TCHs of the Community industry signifi-
cantly decreased between 1995 and 1996, i.e. by 32 %, thenincreasing again steadily between 1997 and the investigation
period, without recovering however the levels of 1995. In this
respect, production has followed the evolution of the Communitymarket since 1997.
4.2.Production capacity and capacity utilisation
(47) The production capacity of the Community industry remained
stable during the IIP. Capacity utilisation for TCHs went down
between 1995 and 1996, i.e. by 32 %, increasing again towardsthe investigation period. This development likewise reflects theabove mentioned increase in production volumes as from 1997.
4.3.Sales volume
(48) The sales of the Community industry decreased between 1995 and
1996 by 10 % and they increased from then to 1997 and theinvestigation period, i.e. in overall terms they went up by 21 %between 1995 and the investigation period reaching around 850units, without, however, matching the expansion of the Commu-nity consumption, which substantially increased, i.e. by 54 %,
during the same period of time.
4.4.Market shares
(49) The steady decrease of the market share of the Community
industry between 1995 and the investigation period by more than16 percentage points, reaching around 60 % during the
investigation period, shows that the Community industry did
not benefit from the expansion of the Community consumption orfrom the favourable market conditions from 1997 which resultedfrom the conclusion of the anti-absorption investigation.
4.5.Employment
(50) Employment has remained stable as from 1996, in which year it
had increased by 20 %, as a result of the introduction of thecamcorders and the new generation of digitalTCS.
4.6.Investment
(51) Investments decreased substantially between 1995 and 1996, i.e.
by 21 %, following the negative evolution of production and sales
of the Community industry. They then increased substantially in1997, by around 100 %, due, amongst other reasons, to the R&Dinvestments linked to the development of the new generation ofdigitalTCS but sharpl y decreased again in the investigationperiod.2000R2042 — EN — 02.02.2001 — 002.001 — 9
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4.7.Profitability
(52) In 1995 and especially in 1996, the Community industry suffered
significant losses which only diminished as from 1997 at a time
when, amongst other things, the rate of the anti-dumping dutyimposed on TCS originating in Japan was raised and camcorderswere successfully introduced on the market. Throughout thisperiod, however, sales of the Community industry remained loss-making. These losses were still at a level of around –10 % on net
sales during the investigation period.
5.Conclusion on the situation in the Community market
(53) The investigation has shown that anti-dumping duties have very
rarely been paid during the IIP. Indeed, as from the imposition ofan anti-dumping duty on imports of TCHs originating in Japan,they have been replaced by imports of parts of TCHs originatingin Japan, which have been subject to anti-circumvention and anti-dumping investigations as from 1998. However, the development
of the market after the imposition of the measures reveals that
Japanese exporting producers have continued to sell TCHs on theCommunity market.
(54) As concerns the pricing behaviour of the Japanese exportingproducers, the anti-absorption investigation concluded in 1997
showed that export prices of the Japanese exporting producers had
gone below the level of 1994.
(55) After the imposition of the anti-dumping measures in 1994, andduring the whole IIP, the situation of the Community industryimproved as regards some of the economic indicators examined.
Continued efforts to rationalise the production process and new
investments were made, showing an industry that is still viable.However, the overall assessment of the economic indicatorsduring the IIP does not show such a favourable development.Indeed, during the IIP, the Community industry's sales volume did
not follow the growing trend of the market and only increased by
21 % whilst the Community consumption expanded by 54 %.These opposing trends resulted in a loss of market share by theCommunity industry by 16 percentage points. Furthermore, eventhough its losses diminished during the IIP, the Communityindustry continued to suffer losses of around –10 % during the
investigation period whereas in such an industry, a profit level of
15 % must be considered necessary to finance the investmentneeded to keep up to date with technological development.
(56) On the basis of the above, it is therefore concluded that, in spite ofthe measures in force, due to the continued price pressure exerted
by the Japanese exporting producers, the Community industry
remained in a difficult economic situation. This price pressureprevented the Community industry from fully recovering from theeffects of the previous and ongoing dumping practices.
F.LIKELIHOOD OF CONTINUATION AND/OR RECURRENCE
OF INJURIOUS DUMPING
(57) In order to assess the likely effect of the expiry of the measures in
force, and taking into account that the Community industry is still
in a difficult situation, the following elements were considered, inaddition to those already mentioned above.
(58) The current investigation has shown that Japanese exportingproducers have continued to sell TCHs on the Community marketunder their brand names (
1).
(59) Indeed, sales of TCHs by Japanese exporting producers in theCommunity increased considerably in terms of volume between2000R2042 — EN — 02.02.2001 — 002.001 — 10
(1) The origin of these TCS remains unclear since it could not be determined
whether they were imported as such from Japan or if, as mentioned above,
only parts thereof were imported in order to be subsequently assembled in the
Community.
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1995 and the investigation period, i.e. by 157 %, reaching around
600 units during the investigation period.
(60) With respect to the development of their market share, the overalltrend shows a constant and significant increase between 1995 andthe investigation period, i.e. by more than 16 percentage points,reaching a level of around 40 % during the investigation period.
(61) As regards sales prices of the Japanese exporting producers forTCHs sold on the Community market, the investigation has
shown that they were significantly below the Community
industry's sales prices.
(62) The Japanese exporting producers provided no information onsales prices. However, it was established that sales made viatenders both by the Community industry and the Japanese
exporting producers represented an important part of the overall
sales of TCHs during the IP (around 40 %). On the basis oftenders for which information was available from the Communityindustry and users, prices offered by the exporting producerswere, in general, lower than prices offered by the Community
industry both for the totaltender (
1) and for TCHs taken in
isolation. In one of the tenders analysed, the global price offeredby a Japanese exporting producer was 37 % lower than the oneoffered by the Community producer. In this tender, theCommunity producer had to grant an additionaldiscount ofmore than 40 % in order to win the tender. Another tender in a
different Member State showed that, in the second round of
negotiations and despite having granted significant discountsbetween the first and the second round, the finaloffer of theJapanese exporting producer was still around 20 % lower than theoffer of the Community producer participating in the tender. Inthese circumstances, the latter lost the tender.
(63) It was likewise established that the low prices offered during atender necessarily influence all prices negotiated in follow-uptransactions and in subsequent tenders held in the same MemberState. It follows that the price behaviour in tenders actuallyinfluenced a significantly higher share of the Community market
than the 40 % of it that were governed directly by tenders. Thus,
the analysis of the tenders has not only shown the extent to whichthe prices offered by the Community industry have been undercutby those offered by exporting producers during the tenders (up to37 %) but also the depressive effect of the dumped imports on the
sales prices of the Community industry.
(64) These price differences should be seen bearing in mind that the
market for TCS was found to be price-sensitive and transparent,with a small number of players, and that the Community industrysuffered losses of around 10 %, whereas in this kind of high-technology industry a profit of 15 % must be deemed appropriate
so that an industry can keep up with the pace of technological
developments.
(65) On this basis, should the measures be repealed, it can be expectedthat the Japanese exporting producers would manufacture againcomplete TCS in Japan, where, as mentioned above, the
production capacity exists, their R&D departments are located
and where they could benefit from economies of scale. Moreover,it was considered that the exporting producers would be likely tocontinue to sell their products on the Community market at pricessignificantly lower than those of the Community industry, thuscontributing to the continuation of the injurious situation of the
Community industry.
(66) As to the pricing behaviour of the Japanese exporting producers
on third countries, on the basis of the information made availableby the Community industry, a parallel was drawn between thebehaviour of Japanese exporting producers in the US and in the2000R2042 — EN — 02.02.2001 — 002.001 — 11
(1) Calls for tenders usually include complete TCS and not only TCHs.
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Community. In both markets, Japanese prices were, in general,
lower than those of the Community industry and this during thewhole of the IIP, but more in particular in 1998.
(67) More specifically, when analysing the information available ontenders on the North American markets, it was found that theJapanese exporting producers were granting discounts up to 70 %
off their price lists and that prices offered by them were
consequently up to 50 % lower than prices offered by theCommunity industry. In addition, certain elements of a TCS oreven other equipment sold in combination with TCS in the sametender, were sometimes offered free of charge or with highdiscounts such as the already mentioned 70 %.
(68) Furthermore, on the basis of the information available on tendersheld in Latin-America, prices offered by the Japanese exportingproducers were also lower than those of the Community industryin similar proportions and the same behaviour as to discounts and
products offered free of charge existed.
(69) From the above, it was concluded that, in the absence of
measures, prices of Japanese exporting producers could at leastremain at the current levels found on the Community market
which are significantly lower than those of the Community
industry and could even potentially fall to levels comparable tothe prices for imports originating in Japan into the US, Canadianand Latin-American markets or to the level of prices found in theoriginalinvestigation.
Conclusion on the recurrence of injurious dumping
(70) In view of the above, namely of the following factors:
— despite the measures in force, the Community industry was
still in a difficult economic situation;
— the sales of TCHs manufactured by the Japanese exporting
producers held an exceptionally strong position on theCommunity market and were made at extremely low prices
by comparison with the prices of the Community industry;
— the prices which Japanese exporting producers might charge
in the absence of anti-dumping measures were determined as
potentially very low if one considers the producers' behaviourin the North American and Latin-American markets, wheretheir prices were lower than those of the Community industry;
— the information available on the production capacity in Japan
as well as on the possibility to expand it when necessary inorder to react to an expansion of demand gave an indicationthat the Japanese exporting producers had the potentialto raise
their production and export volumes;
— even though a high anti-dumping duty reaching up to 200 %
was in force, the Japanese exporting producers were able to
offer prices which were lower than those of the Community
industry, thus giving an indication that they are fully capableof maintaining an aggressive pricing policy in spite of themeasures in force;
it is concluded that, should the measures be repealed, there is a
likelihood of recurrence of injurious dumping and that the
measures currently in force should therefore be maintained.
G.COMMUNITY INTEREST
1.Introduction
(71) According to Article 21 of the basic Regulation, the Commission
examined whether a prolongation of the existing anti-dumpingmeasures would be against the interest of the Community as awhole. The determination of the Community interest was basedon an appreciation of all the various interests involved.2000R2042 — EN — 02.02.2001 — 002.001 — 12
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(72) In order to assess the likely impact of a continuation or non-
continuation of the measures, the Commission requested informa-
tion from the Community industry and users of TCS. TheCommission sent questionnaires to more than sixty users of theproduct concerned. Fifteen replies were received, although theinformation provided was incomplete in many cases.
(73) It should be recalled that, in the previous investigation, the
adoption of measures was considered not to be against the interest
of the Community. Furthermore, it should be noted that thepresent investigation is a review, thus analysing a situation inwhich anti-dumping measures are already in place. Consequently,the current investigation should enable the assessment of anyundue negative impact the current anti-dumping measures may
have had in the past on the parties concerned.
(74) On this basis it was examined, whether, despite the conclusions
on the likely continuation and/or recurrence of injurious dumping,compelling reasons exist which would lead to the conclusion thatit is not in the Community interest to maintain measures in thisparticular case.
2.Interests of the Community industry
(75) It is considered that without maintaining the anti-dumping
measures established in the previous investigation, injuriousdumping is likely to continue or recur and the situation of the
Community industry, which is still fragile, will further deterio-
rate.
(76) As shown above, the Community industry has been affected bythe low priced sales of TCHs by Japanese exporting producers inthe Community during the IIP. It is therefore considered that theobjective of the anti-dumping measures under review, i.e. to re-
establish fair competition in the Community market between the
Community producers and their exporting counterparts in thirdcountries, has not been fully met.
(77) The Community industry has proven to be a structurally viableand successfulindustry, abl e to adapt its product range to thechanging competitive conditions on the market and even to gain
some technological lead in the development of the digital
technology, this being confirmed in particular by its investmentduring the IIP.
(78) However, it cannot be excluded that this industry would reduce itsmanufacturing activities for the product concerned in theCommunity if the anti-dumping measures were not maintained.
This conclusion is justified in view of the duration of the negative
profitability situation (during the investigation period, theCommunity industry has suffered around 10 % losses). Asmentioned above, without anti-dumping measures, imports ofTCHs originating in Japan would likely restart and their price-depressive effect will continue to frustrate all efforts of the
Community industry to regain a satisfactory margin of profit-
ability, which is especially needed to keep up with the pace oftechnological development in this kind of industry. In addition,since certain operations of the TCHs production are labourintensive, it is highly possible that they would be de-located to
low labour cost countries in order to reduce such costs.
(79) Indeed, should the deteriorated economic situation of the
Community industry continue, it might be forced to reduce itsmanufacturing activities in the Community, and around 250 jobsdirectly linked to the product concerned would be endangered.Should however anti-dumping duties be maintained, this industry
will be able to maintain and further develop its activities in the
Community. Also, a further number of jobs linked indirectly tothe production of TCS, mainly in R&D would be secured. Thus,overall employment in the Community in relation to TCS wouldbe secured and can even be expected to rise should anti-dumpingmeasures be maintained.2000R2042 — EN — 02.02.2001 — 002.001 — 13
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(80) As to R&D developments, the production of television camera
systems has spin-off effects which are mainly related to the
development of a part of the TCHs, i.e. the CCD block, since itscomponents are used as well for other applications such assecurity systems, medical, industrial and telecommunicationsapplications. Furthermore, the existence of a Community industrymanufacturing TCS has an impact on the entire television
industry, i.e. from the development and manufacturing of
broadcast equipment to the production of television sets andrecorders, but it may also have an influence on the standards setfor the Community television sector in the near future.
(81) Given the above, it was concluded that to prolong the existing
measures in order to ward off the adverse effects of dumped
imports which could endanger the existence of the Communityindustry and consequently a number of jobs was necessary. It hasalso to be considered that if this high-technology industrydisappears, there would be a negative impact on the television
industry in general.
3.Interests of related importers and economic operators in
the Community
(82) As regards the economic operators in the Community related toJapanese exporting producers, it is likely that the decision tomaintain the anti-dumping measures would have positive effectswith regard to production and employment in the Community,since some of the manufacturing activities of TCS which took
place in the Community would even become more important as
evidenced following the initiation of the US investigation andwould not be relocated to Japan.
4.Interests of users
(83) Users of TCS were mainly licensed broadcasting companies that
broadcast their own programmes by using their own equipment.However, there were also licensed broadcasters which did not
broadcast their own programmes as well as facility companies
which supply equipment including camera systems as well ascrews to their customers and, finally, rental companies whichprovide camera and other equipment to various customers. Allthese users of TCS usually purchased directly from the TCSproducers.
(84) Only fifteen out of the sixty users to which the questionnaire wassent by the Commission replied and partially cooperated. The lowlevel and degree of cooperation is in itself an indication that thissector did not suffer any substantialnegative effect on its
economic situation as a result of the anti-dumping measures.
(85) This conclusion was in line with findings in earlier proceedings
where it was found that TCS were not a significant cost factor forthe users, since in relation to their production of broadcastprogrammes, they only accounted for a small proportion of their
total costs. Indeed, when looking only at equipment costs of the
users, the cost of a TCS represented around 10 % in a studio andreached up to 20 % in a small outside broadcasting vehicle.However, when looking at the total costs of a broadcastingcompany, and not only at the equipment, the percentagedecreased since there were other more important costs such as
programme production, personnel, overheads, etc. which were
well above the mere cost of a TCS. In addition, the average lifetime of a TCS has been estimated by the cooperating users ataround eight years reaching, exceptionally, more than fifteenyears, which means that TCS were far from being a recurrent cost
factor for the users.
(86) Likewise, in generalterms, the effects on either category of users
were relatively limited when compared to the size of the globalturnover of broadcasting companies and of other companiesdealing with TCS, i.e. the purchase of a TCS represents around2000R2042 — EN — 02.02.2001 — 002.001 — 14
▼B
0,1 % of the totalturnover of broadcasting companies and around
1 % of the turnover of production and rentalcompanies.
(87) The investigation has also shown, as mentioned above, that pricesof TCS in the Community in no way significantly increasedfollowing the imposition of an anti-dumping duty concerningimports of TCS originating in Japan. Indeed, certain users
continued, and even started, to purchase TCS manufactured by the
Japanese exporting producers in spite of the measures in force.These measures therefore did not constitute a deterrent for TCSusers to change their sources of supply. Thus, any increase of theimport price was apparently not such as to constitute anysignificant inconvenience.
(88) On the basis of the above, it can be ruled out that the anti-dumping measures had any significant negative influence on thecost situation and on the profitability of the users of the product
concerned. Thus, the result of the anti-dumping measures in force
has not been to close the Community market to TCSmanufactured by Japanese exporting producers, but rather tocounter the unfair trade practices and to remedy to some extentthe distorting effects of dumped imports.
(89) Since the measures have been in place for a certain period andwould be maintained at the same level, it can be concluded thatthis would not imply any deterioration of the situation of theusers.
5.Competition and trade distorting effects
(90) With respect to the effects on competition in the Community,
some interested parties have argued that, should the anti-dumpingduties be maintained, this would lead to the disappearance of theexporting producers concerned from the Community market, thusconsiderably weakening competition, and to an increase of the
prices for TCS.
(91) However, it appears more likely that the Japanese exporting
producers will continue to sell TCS albeit at non-injurious prices,as they have a solid technological basis, a strong market position
and manufacturing facilities in the Community. This conclusion is
confirmed by the developments further to the imposition of theanti-dumping duty in 1994 and to the increase of the rate in 1997,which did not lead to any harmful effects for the competition onthe Community market.
(92) Given the rapid technological development in this sector,competition will, without any doubt, remain strong after thecontinuation of anti-dumping-measures. Given also the fact that anumber of actors in the market for TCS have nowadays
established their manufacturing facilities for these products in
the Community, they will be able to satisfy the user's demand andto offer a wide range of models. Thus, the continuation of theanti-dumping measures in force will not limit the user's choice orweaken competition.
6.Conclusion on Community interest
(93) Based on the above, it is concluded that there are no compelling
reasons on grounds of Community interest against the prolonga-tion of the existing anti-dumping measures.
H.ANTI-DUMPING MEASURES
(94) All parties concerned were informed of the essential facts and
considerations on the basis of which it was intended to
recommend the maintenance of the existing anti-dumping dutyin respect of imports of TCS originating in Japan. They were alsogranted a period within which to make representations subsequentto this disclosure. No comments were received which were of anature to change the above conclusions.2000R2042 — EN — 02.02.2001 — 002.001 — 15
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(95) It follows from the above that, as provided for by Article 11(2) of
the basic Regulation, the anti-dumping duty currently in force
with regards to imports of TCS originating in Japan imposed byCouncilRegul ation (EC) No 1015/94, as amended by CouncilRegulation (EC) No 1952/97, should be maintained.
HAS ADOPTED THIS REGULATION:
Article 1
1. A definitive anti-dumping duty is hereby imposed on imports of
television camera systems and parts thereof, falling within CN codes
ex 8525 30 90 (TARIC code: 8525 30 90 10), ex 8537 10 91 (TARIC
code 8537 10 91 91), ex 8537 10 99 (TARIC code 8537 10 99 91),ex 8529 90 81 (TARIC code 8529 90 81 38), ex 8529 90 88 (TARICcode 8529 90 88 32), ex 8543 89 95 (TARIC code 8543 89 95 39),ex 8528 21 14 (TARIC code 8528 21 14 10), ex 8528 21 16 (TARIC
code 8528 21 16 10) and ex 8528 21 90 (TARIC code 8528 21 90 10),
originating in Japan.
2. The television camera systems may consist of a combination of the
following parts, imported either together or separately:
(a) camera head with three or more sensors (12 mm or more charge-
coupled device pick-up devices) with more than 400 000 pixelseach, which can be connected to a rear adapter, and having a
specification of the signal-to-noise ratio of 55 dB or more at normal
gain; either in one piece, with the camera head and the adapter inone housing, or separate;
(b) a view finder (diagonal, of 38 mm or more);
(c) a base station or camera controlunit (CCU) connected to the camera
by a cable;
(d) an operationalcontrolpanel(OCP) for camera control(i.e. for
colour adjustment, lens opening or iris) of single cameras;
(e) a master controlpanel(MCP) or master set-up unit (MSU) with
selected camera indication, for the overview and for adjustment of
severalremote cameras.
3. The duty shall not apply to:
(a) lenses;
(b) video tape recorders;
(c) camera-heads with a recording unit in the same, inseparable
housing;
(d) professionalcameras which cannot be used for broadcast purposes;
(e) professionalcameras l isted in the Annex (TARIC additionalcode:
8786).
4. When the television camera system is imported with the lens the
free-at-Community-frontier value used in applying the anti-dumping
duty shall be that of the television camera systems without the lens. Ifthis value is not specified on the invoice the importer shall declare thevalue of the lens at the time of release for free circulation and shallsubmit appropriate evidence and information on that occasion.
5. The rate of the anti-dumping duty shall be 96,8 % of the net, free-
at-Community-frontier price, before duty (TARIC additionalcode:
8744) except for the products manufactured by the following companiesfor which the rate shall be as follows:
— Ikegami Tsushinki Co. Ltd: 200,3 % (TARIC additionalcode: 8741),
— Sony Corporation: 108,3 % (TARIC additionalcode: 8742),
— Hitachi Denshi Ltd: 52,7 % (TARIC additionalcode: 8743).
6. The provisions in force concerning customs duties shall apply.2000R2042 — EN — 02.02.2001 — 002.001 — 16
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Article 2
This Regulation shall enter into force on the day following that of its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States.2000R2042 — EN — 02.02.2001 — 002.001 — 17
ANNEX
List of professional camera systems not qualified as television camera systems (broadcast camera systems)which are exempted from the measures
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
Sony DXC-M7PK DXF-3000CE CCU-M3P RM-M7G — CA-325P
DXC-M7P DXF-325CE CCU-M5P CA-325AP
DXC-M7PH DXF-501CE CCU-M7P CA-325BDXC-M7PK/1 DXF-M3CE CA-327P
DXC-M7P/1 DXF-M7CE CA-537P
DXC-M7PH/1 DXF-40CE CA-511
DXC-327PK DXF-40ACE CA-512P
DXC-327PL DXF-50CE CA-513
DXC-327PH DXF-601CE VCT-U14 (
1)
DXC-327APK DXF-40BCEDXC-327APL DXF-50BCEDXC-327AH DXF-701CE
DXC-537PK DXF-WSCE (
1)
DXC-537PLDXC-537PHDXC-537APKDXC-537APLDXC-537APH
EVW-537PK
EVW-327PKDXC-637PDXC-637PKDXC-637PLDXC-637PH
PVW-637PK
PVW-637PL▼M22000R2042 — EN — 02.02.2001 — 002.001 — 18
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
DXC-D30PF
DXC-D30PK
DXC-D30PL
DXC-D30PH
DSR-130PF
DSR-130PK
DSR-130PL
PVW-D30PF
PVW-D30PK
PVW-D30PL
DXC-327BPF
DXC-327BPK
DXC-327BPL
DXC-327BPH
DXC-D30WSP (1)
Ikegami HC-340 VF15-21/22 MA-200/230 RCU-240 — CA-340
HC-300 VF-4523 MA-200A (1) RCU-390 (1) CA-300
HC-230 VF15-39 CA-230
HC-240 VF15-46 (1) CA-390
HC-210 VF5040 (1) CA-400 (1)
HC-390 VF5040W (1)
LK-33
HDL-30MA
HDL-37
HC-400 (1)
HC-400W (1)
Hitachi SK-H5 GM-5 (A) RU-C1 (B) — — CA-Z1
SK-H501 GM-5-R2 (A) RU-C1 (D) CA-Z2▼M22000R2042 — EN — 02.02.2001 — 002.001 — 19
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
DK-7700 GM-5-R2 RU-C1 CA-Z1SJ
DK-7700SX GM-50 RU-C1-S5 CA-Z1SPHV-C10 GM-8A (
1) RU-C10 (B) CA-Z1M
HV-C11 GM-9 (1) RU-C10 (C) CA-Z1M2
HV-C10F GM-51 (1) RC-C1 CA-Z1HB
Z-ONE (L) RC-C10 CA-C10
Z-ONE (H) RU-C10 CA-C10SP
Z-ONE RU-Z1 (B) CA-C10SJAZ-ONE A (L) RU-Z1 (C) CA-C10M
Z-ONE A (H) RU-Z1 CA-C10B
Z-ONE A (F) RC-C11 CA-Z1A (
1)
Z-ONE A RU-Z2 CA-Z31 (1)
Z-ONE B (L) RC-Z1 CA-Z32 (1)
Z-ONE B (H) RC-Z11 CA-ZD1 (1)
Z-ONE B (F) RC-Z2Z-ONE B RC-Z21Z-ONE B (M) RC-Z2A (
1)
Z-ONE B (R) RC-Z21A (1)
FP-C10 (B) RU-Z3 (1)
FP-C10 (C) RC-Z3 (1)
FP-C10 (D)FP-C10 (G)FP-C10 (L)FP-C10 (R)FP-C10 (S)FP-C10 (V)
FP-C10 (F)
FP-C10FP-C10 A▼M22000R2042 — EN — 02.02.2001 — 002.001 — 20
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
FP-C10 A (A)
FP-C10 A (B)FP-C10 A (C)FP-C10 A (D)FP-C10 A (F)FP-C10 A (G)
FP-C10 A (H)
FP-C10 A (L)FP-C10 A (R)FP-C10 A (S)FP-C10 A (T)FP-C10 A (V)
FP-C10 A (W)
Z-ONE C (M)Z-ONE C (R)Z-ONE C (F)Z-ONE CHV-C20
HV-C20M
Z-ONE-DZ-ONE-D (A)Z-ONE-D (B)Z-ONE-D (C)Z-ONE.DA (
1)
V-21 (1)
V-21W (1)
Matsushita WV-F700 WV-VF65BE WV-RC700/B — — WV-AD700SE
WV-F700A WV-VF40E WV-RC700/G WV-AD700ASE▼M22000R2042 — EN — 02.02.2001 — 002.001 — 21
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
WV-F700SHE WV-VF39E WV-RC700A/B WV-AD700ME
WV-F700ASHE WV-VF65BE (*) WV-RC700A/G WV-AD250EWV-F700BHE WV-VF40E (*) WV-RC36/B WV-AD500E (*)WV-F700ABHE WV-VF42E WV-RC36/G AW-AD500AEWV-F700MHE WV-VF65B WV-RC37/B AW-AD700BSEWV-F350 AW-VF80 WV-RC37/G
WV-F350HE WV-CB700E
WV-F350E WV-CB700AEWV-F350AE WV-CB700E (*)WV-F350DE WV-CB700AE (*)WV-F350ADE WV-RC700/B (*)WV-F500HE (*) WV-RC700/G (*)
WV-F565HE WV-RC700A/B (*)
AW-F575HE WV-RC700A/G (*)AW-E600 WV-RC550/GAW-E800 WV-RC550/BAW-E800A WV-RC700A
WV-CB700A
WV-RC550
WV-CB550AW-RP501AW-RP505
JVC KY-35E VF-P315E RM-P350EG — — KA-35E
KY-27ECH VF-P550E RM-P200EG KA-B35UKY-19ECH VF-P10E RM-P300EG KA-M35U
KY-17FITECH VP-P115E RM-LP80E KA-P35U
KY-17BECH VF-P400E RM-LP821E KA-27EKY-F30FITE VP-P550BE RM-LP35U KA-20E▼M22000R2042 — EN — 02.02.2001 — 002.001 — 22
Company name Camera heads Viewfinder Camera controlunit Operationalcontrolunit Master controlunit (*) Camera adaptors
KY-F30BE VF-P116 RM-LP37U KA-P27U
KY-27CECH VF-P116WE (1) RM-P270EG KA-P20U
KH-100U VF-P550WE (1) KA-B27E
KY-D29ECH KA-B20E
KY-D29WECH (1) KA-M20E
KA-M27E
Olympus MAJ-387N OTV-SX2
MAJ-387I OTV-S5
OTV-S6
Camera OTV-SX
(*) Also called master set up unit (MSU) or master control panel (MCP).
(1) Models exempted under the condition that the corresponding triax system or triax-adaptor is not sold on the EC-market.▼M22000R2042 — EN — 02.02.2001 — 002.001 — 23