This document is meant purely as documentation tool and the institutions do not assume any liability for its contents
"BCOUNCIL 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:
Official Journal
No page date
"M1 Council Regulation (EC) No 2676/2000 of 4 December 2000 L 308 1 8.12.20002000R2042 — EN — 09.12.2000 — 001.001 — 1
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 Council Regulation (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 proposal submitted by the Commission after having
consulted the Advisory Committee,
Whereas:
A. PROCEDURE
1.Previous investigations
(1) In April 1994, further to an anti-dumping investigation initiated in
March 1993 (‘the original investigation’), the Council, by
Regulation (EC) No 1015/94 (2) (‘definitive Regulation’), im-
posed a definitive anti-dumping duty on imports of television
camera 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-absorption
investigation’) 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-dump-
ing 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 investi-
gation’). Subsequently the complaining Community industry
withdrew its complaint and the proceeding was terminated in
February 1999. On the basis of the evidence found during this
investigation, the Commission initiated a proceeding pursuant to
Article 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 the
imports of TCS originating in the United States of America
(US) (6) (‘the US investigation’). This investigation was termin-
ated on 1 February 2000, without the imposition of any measures
following the closure of the production facilities of the single US!B
(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. 4.2000R2042 — EN — 09.12.2000 — 001.001 — 2
exporting producer of TCS, a company related to a major Japanese
exporting producer of TCS.
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 originating
in Japan, the Commission received a request to review these
measures pursuant to Article 11(2) of the basic Regulation.
(6) The request was lodged on 28 January 1999 by Philips Digital
Video Systems and Thomson Broadcast Systems (the ‘applicant
Community producers’ or the ‘Community industry’), whose
collective output of TCS constitutes 100 % of the Community
production of this product pursuant to Articles 4(1) and 5(4) of the
basic Regulation.
(7) The request was based on the grounds that the expiry of the
measures would be likely to result in the continuation or
recurrence 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 expiry review,
the Commission initiated the present investigation pursuant to
Article 11(2) of the basic Regulation by the publication of a notice
in the Official Journal of the European Communities on 30 April
1999 (2).
3.Investigation
(9) The Commission officially advised the applicant Community
producers, the exporting producers in Japan and the represen-
tatives of the government of the exporting country, of the initiation
of the review. The Commission sent questionnaires to all these
parties and to those who made themselves known within the time
limit set in the Notice of Initiation. The Commission also gave the
parties directly concerned the opportunity to make their views
known in writing and to request a hearing.
(10) The applicant Community producers replied to the questionnaire.
Only one Japanese exporting producer and no unrelated importer
replied to the questionnaire. Fifteen users replied to the
questionnaire, 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 the
premises 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 to
31 December 1998 (the ‘investigation period’ or ‘IP’). The
examination of trends relevant for the assessment of any
continuation and/or recurrence of injury covered the period from!B
(1) OJ C 334, 31.10.1998, p. 15.
(2) OJ C 119, 30.4.1999, p. 11.2000R2042 — EN — 09.12.2000 — 001.001 — 3
1 January 1995 to 31 December 1998 (hereinafter referred to as
‘IIP’).
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 99, ex 8537 10 99, ex 8529 90 81, ex 8529 90 88,
ex 8528 21 14, ex 8528 21 14, ex 8528 21 16 and ex 8528 21 90
originating in Japan.
(14) As set out in the definitive Regulation, TCS may consist of the
following 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 400 000
pixels each, 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 in one housing, or separate;
— a viewfinder (diagonal of 38 mm or more);
— a base station or camera control unit (CCU) connected to the
camera by a cable;
— an operational control panel (OCP) for camera control (i.e. for
colour adjustment lens opening or iris) of single cameras;
— a master control panel (MCP) or master set-up unit (MSU)
with selected camera indication, for the overview and for
adjustment of several remote cameras.
(15) Products not covered by the above-definition are:
— Lenses;— Video tape recorders;
— Camera heads with the recording unit in the same, insepar-
able, housing;
— Professional cameras which cannot be used for broadcast
purposes;
— Professional cameras listed in the Annex (TARIC additional
code: 8786).
(16) During the course of the investigation it was found that a new
model of TCS had been developed as from 1997, i.e. a
broadcasting camera head which is connected to a videotape
recorder (‘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. As
indicated above, videotape recorders and camera heads with a
recording 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 recorder without
both being within the same housing. On this basis it was
concluded that such type of camera head falls into the definition
of the product under consideration made in the definitive
Regulation. 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 (‘digital TCS’) which have been introduced in the
Community market as from 1997. These digital TCS fall into the!B2000R2042 — EN — 09.12.2000 — 001.001 — 4
definition of the product under consideration in the definitive
Regulation.
2.Like product
(18) It was found that there were no basic differences in the physical
and technical characteristics and uses of the TCS manufactured by
Japanese exporting producers and sold in the Community, and the
product manufactured and sold on the domestic market of the
exporting country.
(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 on
the Community market use the same basic technology and are
both conform with world-wide applicable industry standards.
These products also have the same applications and uses, they
consequently have similar physical and technical characteristics,
are interchangeable and competing with each other. Furthermore,
both the applicant Community producers and the Japanese
exporting producers manufacture digital products and camcorders,
which have been the latest technological developments related to
the product concerned as compared with the original investigation.
Therefore, TCS manufactured by Japanese exporting producers
and sold in the Community and TCS manufactured and sold by the
complaining Community industry in the Community 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 aspects
is to determine whether or not, the expiry of measures would lead
to 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 producers
was particularly low. Only one of the smaller producers of TCS
cooperated and reported a marginal number of exports of the
product concerned to the Community. The remaining three
companies which had made themselves known in the original
investigation refused to provide any cooperation although it is
widely known that they have their head offices, main production
and 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 substantial quantities.
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 was considered
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 is
recalled that during the IP , important parts of TCS were imported
into the Community. Moreover, it was established that TCS
produced 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 import volumes of
TCS originating in Japan were low when compared with import
volumes during the original investigation period. Hence, no
conclusion was made regarding the likelihood of continuation of
dumping.!B2000R2042 — EN — 09.12.2000 — 001.001 — 5
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 basic
Regulation, findings had to be established on the basis of facts
available. 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 on
information provided in the request for a review as well as
information obtained in the course of the investigation from the
Community industry and users of TCS.
(24) According to the request, the level of dumping for the camera
head alone is 30,6 %. The corresponding calculation contains a
number of conservative estimates. For instance, other elements of
a TCS have not been taken into consideration for the purpose of
the 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 be
higher than 30,6 %.
(25) The request also shows that dumping margins would reach at least
at 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 be
repealed, the dumping margins would resume at significant levels.
(27) As far as the likely future volume of exports of TCS to the
Community 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 original
investigation and it is large enough to allow for the resumption of
considerable exports to the Community if the anti-dumping duty
was to expire. This is confirmed by the fact that the sales of TCS
assembled 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 if
necessary 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 of
some months clearly shows that production capacity for the
product concerned may be created/expanded or reduced in a short
period 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 exporting
producers manufactured their TCS for the US and Latin American
markets in Japan. Furthermore, on the basis of the information
available, 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 these
products were also located in Japan since an important part of
these activities benefit not only TCS but also professional cameras
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 capacity left in Japan
which was used when the consumption both in the Community
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 a potential!B2000R2042 — EN — 09.12.2000 — 001.001 — 6
for Japanese exporting producers to raise their production 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 would result in
an improvement of the economies of scales of the Japanese
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 of
products not subject to anti-dumping duties in Japan, i.e. video
tape recorders, camera heads with the recording unit in the same,
inseparable housing and professional cameras that cannot be used
for broadcast purposes. Although, as mentioned above, these
products are not covered by the present investigation, the
production lines and related capacity needed to produce them
are 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 was
concluded that although the imposition of anti-dumping duties has
led to a change in the organisation of the production of TCS by the
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 potential to raise their production in Japan and their
export volumes of TCS to the Community at significantly dumped
prices.
(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, the
anti-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 therefore
deemed to constitute the Community industry within the meaning
of Article 4(1) and Article 5(4) of the basic Regulation.
(35) As to the other economic operators in the Community related to
the Japanese exporting producers, given the low degree of
cooperation, the nature of their activities within the Community
could not be investigated in detail, i.e. whether these activities are
simple assembly operations or if there is a certain value added in
the 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 in
the Community. Furthermore, given their relation with the
Japanese exporting producers, it was considered that they should
be excluded from the Community industry in accordance with
Article 4(1)(a) of the basic Regulation.!B2000R2042 — EN — 09.12.2000 — 001.001 — 7
E.ANAL YSIS 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 camera control unit
(CCU), an operational control panel (OCP) and a master control
panel (MCP) or master set-up unit (MSU). In practice 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 camera
head. Therefore, in line with the approach taken in the original
investigation, 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 of
television camera heads (‘TCHs’).
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 not cooperate and for which
the investigation has shown that they are still operating on the
Community market, the Commission made use 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 Community
industry and established on the basis of contracts and tenders
lost by the Community industry to all Japanese exporting
producers on the Community market. This information was
considered reliable given the transparent nature of the market
in terms of size and number of market participants, it being
largely supplied via tenders. Moreover, the information
provided 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 the statistical
information available from Eurostat in this respect was considered
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 the respective brand
names on the Community market and have to be therefore
included in the Community consumption for this product.
(41) On this basis, the investigation has shown that, whereas
consumption was stable in 1995 and 1996, there was an overall
expansion in 1997, which continued during the investigation
period. This was due, amongst other reasons, to the sales of TCHs
for broadcasting the football World Cup held in France in 1998
and 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 by
54 %, reaching around 1 500 units during the investigation period.!B
(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.2000R2042 — EN — 09.12.2000 — 001.001 — 8
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 on
imports of TCHs originating in Japan in 1994, these imports have
in 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 of
TCS originating in Japan which are being subsequently assembled
in the Community by certain Japanese exporting producers and, in
the 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 sell
TCHs on the Community market under their brand names.
(43) Thus, the decrease of imports of TCHs originating in Japan has to
be 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 originat-
ing in Japan shows already that, as explained below, there is a
likelihood that imports from the country concerned would take
place at the same levels as in the original investigation in case
anti-dumping measures are not maintained.
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 previous
investigations concerning TCS originating in Japan, i.e. the
original investigation in 1994 and the subsequent anti-absorption
investigation 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
development also had an impact on some of the indicators below,
i.e. the above mentioned introduction of the camcorders, a new
kind of TCHs, in the market as from 1997 and the development of
the new generation of digital TCHs which also started in 1997.
4.1. Production
(46) Total production of TCHs of the Community industry signifi-
cantly decreased between 1995 and 1996, i.e. by 32 %, then
increasing 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 Community
market 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 towards the
investigation period. This development likewise reflects the above
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 the
investigation period, i.e. in overall terms they went up by 21 %
between 1995 and the investigation period reaching around 850
units, without, however, matching the expansion of the Commu-
nity consumption, which substantially increased, i.e. by 54 %,
during the same period of time.!B2000R2042 — EN — 09.12.2000 — 001.001 — 9
4.4. Market shares
(49) The steady decrease of the market share of the Community
industry between 1995 and the investigation period by more than
16 percentage points, reaching around 60 % during the
investigation period, shows that the Community industry did not
benefit from the expansion of the Community consumption or
from the favourable market conditions from 1997 which resulted
from 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 the
camcorders and the new generation of digital TCS.
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 in
1997, by around 100 %, due, amongst other reasons, to the R&D
investments linked to the development of the new generation of
digital TCS but sharply decreased again in the investigation
period.
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 duty
imposed on TCS originating in Japan was raised and camcorders
were successfully introduced on the market. Throughout this
period, 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 of
an anti-dumping duty on imports of TCHs originating in Japan,
they have been replaced by imports of parts of TCHs originating
in Japan, which have been subject to anti-circumvention and
anti-dumping investigations as from 1998. However, the develop-
ment of the market after the imposition of the measures reveals
that Japanese exporting producers have continued to sell TCHs on
the Community market.
(54) As concerns the pricing behaviour of the Japanese exporting
producers, 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, and
during the whole IIP , the situation of the Community industry
improved 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 indicators during
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 the
Community industry by 16 percentage points. Furthermore, even
though its losses diminished during the IIP , the Community
industry continued to suffer losses of around –10 % during the
investigation period whereas in such an industry, a profit level of!B2000R2042 — EN — 09.12.2000 — 001.001 — 10
15 % must be considered necessary to finance the investment
needed to keep up to date with technological development.
(56) On the basis of the above, it is therefore concluded that, in spite of
the 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 pressure
prevented the Community industry from fully recovering from the
effects 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, in
addition to those already mentioned above.
(58) The current investigation has shown that Japanese exporting
producers have continued to sell TCHs on the Community market
under their brand names (1).
(59) Indeed, sales of TCHs by Japanese exporting producers in the
Community increased considerably in terms of volume between
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 overall
trend shows a constant and significant increase between 1995 and
the 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 for
TCHs 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 on
sales prices. However, it was established that sales made via
tenders 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 of tenders
for which information was available from the Community industry
and users, prices offered by the exporting producers were, in
general, lower than prices offered by the Community industry both
for the total tender (2) and for TCHs taken in isolation. In one of
the tenders analysed, the global price offered by a Japanese
exporting producer was 37 % lower than the one offered by the
Community producer. In this tender, the Community producer had
to grant an additional discount of more 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 discounts between the first and the second
round, the final offer of the Japanese exporting producer was still
around 20 % lower than the offer of the Community producer
participating in the tender. In these circumstances, the latter lost
the tender.
(63) It was likewise established that the low prices offered during a
tender necessarily influence all prices negotiated in follow-up
transactions and in subsequent tenders held in the same Member
State. It follows that the price behaviour in tenders actually
influenced 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 which!B
(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 theCommunity.
(
2) Calls for tenders usually include complete TCS and not only TCHs.2000R2042 — EN — 09.12.2000 — 001.001 — 11
the prices offered by the Community industry have been undercut
by those offered by exporting producers during the tenders (up to
37 %) 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 industry
suffered 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 expected
that the Japanese exporting producers would manufacture again
complete 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 to
continue to sell their products on the Community market at prices
significantly lower than those of the Community industry, thus
contributing 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 available
by the Community industry, a parallel was drawn between the
behaviour of Japanese exporting producers in the US and in the
Community. In both markets, Japanese prices were, in general,
lower than those of the Community industry and this during the
whole of the IIP , but more in particular in 1998.
(67) More specifically, when analysing the information available on
tenders on the North American markets, it was found that the
Japanese 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 the
Community industry. In addition, certain elements of a TCS or
even other equipment sold in combination with TCS in the same
tender, were sometimes offered free of charge or with high
discounts such as the already mentioned 70 %.
(68) Furthermore, on the basis of the information available on tenders
held in Latin-America, prices offered by the Japanese exporting
producers were also lower than those of the Community industry
in 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 least remain 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 to the prices for
imports originating in Japan into the US, Canadian and Latin-
American markets or to the level of prices found in the original
investigation.
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 the
Community 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’ behaviour!B2000R2042 — EN — 09.12.2000 — 001.001 — 12
in the North American and Latin-American markets, where
their 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 in
order to react to an expansion of demand gave an indication
that the Japanese exporting producers had the potential to
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 capable
of maintaining an aggressive pricing policy in spite of the
measures 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-dumping
measures would be against the interest of the Community as a
whole. The determination of the Community interest was based on
an appreciation of all the various interests involved.
(72) In order to assess the likely impact of a continuation or
non-continuation of the measures, the Commission requested
information from the Community industry and users of TCS. The
Commission sent questionnaires to more than sixty users of the
product concerned. Fifteen replies were received, although the
information 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 the
present investigation is a review, thus analysing a situation in
which anti-dumping measures are already in place. Consequently,
the current investigation should enable the assessment of any
undue 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 that
it is not in the Community interest to maintain measures in this
particular case.
2.Interests of the Community industry
(75) It is considered that without maintaining the anti-dumping
measures established in the previous investigation, injurious
dumping is likely to continue or recur and the situation of the
Community industry, which is still fragile, will further deteriorate.
(76) As shown above, the Community industry has been affected by the
low priced sales of TCHs by Japanese exporting producers in the
Community during the IIP . It is therefore considered that the
objective 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 third
countries, has not been fully met.
(77) The Community industry has proven to be a structurally viable
and successful industry, able to adapt its product range to the
changing competitive conditions on the market and even to gain
some technological lead in the development of the digital!B2000R2042 — EN — 09.12.2000 — 001.001 — 13
technology, this being confirmed in particular by its investment
during the IIP .
(78) However, it cannot be excluded that this industry would reduce its
manufacturing activities for the product concerned in the
Community 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, the
Community industry has suffered around 10 % losses). As
mentioned above, without anti-dumping measures, imports of
TCHs 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 of
technological development in this kind of industry. In addition,
since certain operations of the TCHs production are labour
intensive, it is highly possible that they would be de-located to low
labour cost countries in order to reduce such costs.
(79) Indeed, s hould the deteriorated economic situation of the
Community industry continue, it might be forced to reduce its
manufacturing activities in the Community, and around 250 jobs
directly 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 to the
production of TCS, mainly in R&D would be secured. Thus,
overall employment in the Community in relation to TCS would
be secured and can even be expected to rise should anti-dumping
measures be maintained.
(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 its
components are used as well for other applications such as
security systems, medical, industrial and telecommunications
applications. Furthermore, the existence of a Community industry
manufacturing 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 and
recorders, but it may also have an influence on the standards set
for 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 Community
industry and consequently a number of jobs was necessary. It has
also to be considered that if this high-technology industry
disappears, 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 to
Japanese exporting producers, it is likely that the decision to
maintain the anti-dumping measures would have positive effects
with 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 and
would 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 as!B2000R2042 — EN — 09.12.2000 — 001.001 — 14
crews to their customers and, finally, rental companies which
provide camera and other equipment to various customers. All
these users of TCS usually purchased directly from the TCS
producers.
(84) Only fifteen out of the sixty users to which the questionnaire was
sent by the Commission replied and partially cooperated. The low
level and degree of cooperation is in itself an indication that this
sector did not suffer any substantial negative 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 for
the users, since in relation to their production of broadcast
programmes, 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 and
reached up to 20 % in a small outside broadcasting vehicle.
However, when looking at the total costs of a broadcasting
company, and not only at the equipment, the percentage decreased
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 life time of a TCS has
been estimated by the cooperating users at around eight years
reaching, exceptionally, more than fifteen years, which means that
TCS were far from being a recurrent cost factor for the users.
(86) Likewise, in general terms, the effects on either category of users
were relatively limited when compared to the size of the global
turnover of broadcasting companies and of other companies
dealing with TCS, i.e. the purchase of a TCS represents around
0,1 % of the total turnover of broadcasting companies and around
1 % of the turnover of production and rental companies.
(87) The investigation has also shown, as mentioned above, that prices
of TCS in the Community in no way significantly increased
following the imposition of an anti-dumping duty concerning
imports 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 TCS
users to change their sources of supply. Thus, any increase of the
import price was apparently not such as to constitute any
significant inconvenience.
(88) On the basis of the above, it can be ruled out that the anti-dumping
measures had any significant negative influence on the cost
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 TCS manufactured
by Japanese exporting producers, but rather to counter the unfair
trade practices and to remedy to some extent the distorting effects
of dumped imports.
(89) Since the measures have been in place for a certain period and
would be maintained at the same level, it can be concluded that
this would not imply any deterioration of the situation of the users.
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-dumping
duties be maintained, this would lead to the disappearance of the
exporting producers concerned from the Community market, thus
considerably 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!B2000R2042 — EN — 09.12.2000 — 001.001 — 15
confirmed by the developments further to the imposition of the
anti-dumping duty in 1994 and to the increase of the rate in 1997,
which did not lead to any harmful effects for the competition on
the Community market.
(92) Given the rapid tec hnological development in this sector,
competition will, without any doubt, remain strong after the
continuation of anti-dumping-measures. Given also the fact that a
number of actors in the market for TCS have nowadays established
their manufacturing facilities for these products in the Commu-
nity, they will be able to satisfy the user’ s demand and to offer a
wide range of models. Thus, the continuation of the anti-dumping
measures in force will not limit the user’ s choice or weaken
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 pro-
longation 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 duty
in respect of imports of TCS originating in Japan. They were also
granted a period within which to make representations subsequent
to this disclosure. No comments were received which were of a
nature to change the above conclusions.
(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 by
Council Regulation (EC) No 1015/94, as amended by Council
Regulation (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 (TARIC
code 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
pixels each, 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 in one
housing, or separate;
(b) a view finder (diagonal, of 38 mm or more);(c) a base station or camera control unit (CCU) connected to the camera
by a cable;
(d) an operational control panel (OCP) for camera control (i.e. for colour
adjustment, lens opening or iris) of single cameras;!B2000R2042 — EN — 09.12.2000 — 001.001 — 16
(e) a master control panel (MCP) or master set-up unit (MSU) with
selected camera indication, for the overview and for adjustment of
several remote 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) professional cameras which cannot be used for broadcast purposes;(e) professional cameras listed in the Annex (TARIC additional code:
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. If
this value is not specified on the invoice the importer shall declare the
value of the lens at the time of release for free circulation and shall
submit 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 additional code:
8744) except for the products manufactured by the following companies
for which the rate shall be as follows:
— Ikegami Tsushinki Co. Ltd: 200,3 % (TARIC additional code: 8741),— Sony Corporation: 108,3 % (TARIC additional code: 8742),— Hitachi Denshi Ltd: 52,7 % (TARIC additional code: 8743).6. The provisions in force concerning customs duties shall apply.
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.!B2000R2042 — EN — 09.12.2000 — 001.001 — 17
!M1
ANNEX
List of professional camera systems not qualified as broadcast camera systems which are exempted from the
measures
Company
nameCamera heads Viewfinder Camera control unitOperational
control unitMaster control
unit (*)Camera adapters
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-325B
DXC-M7PK/1 DXF-M3CE CA-327PDXC-M7P/1 DXF-M7CE CA-537PDXC-M7PH/1 DXF-40CE CA-511
DXC-327PK DXF-40ACE CA-512P
DXC-327PL DXF-50CE CA-513DXC-327PH DXF-601CE VCT -U14 (
1)
DXC-327APK DXF-40BCE
DXC-327APL DXF-50BCE
DXC-327AH DXF-701CEDXC-537PK DXF-WSCE (
1)
DXC-537PL
DXC-537PH
DXC-537APKDXC-537APLDXC-537APH
EVW-537PK
EVW-327PKDXC-637PDXC-637PK
DXC-637PL
DXC-637PHPVW-637PKPVW-637PL
DXC-D30PF
DXC-D30PKDXC-D30PLDXC-D30PH
DSR-130PF
DSR-130PKDSR-130PLPVW-D30PF
PVW-D30PK
PVW-D30PLDXC-327BPFDXC-327BPK
DXC-327BPL
DXC-327BPHDXC-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)2000R2042 — EN — 09.12.2000 — 001.001 — 18
Company
nameCamera heads Viewfinder Camera control unitOperational
control unitMaster control
unit (*)Camera adapters
Ikegami
(con’t)HC-390 VF5040W (1)
LK-33
HDL-30MAHDL-37HC-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
DK-7700 GM-5-R2 RU-C1 CA-Z1SJDK-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-C10Z-ONE (H) RU-C10 CA-C10SP
Z-ONE RU-Z1 (B) CA-C10SJA
Z-ONE A (L) RU-Z1 (C) CA-C10MZ-ONE A (H) RU-Z1 CA-C10BZ-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-Z11Z-ONE B (F) RC-Z2
Z-ONE B RC-Z21
Z-ONE B (M) RC-Z2A (
1)
Z-ONE B (R) RC-Z21A (1)
FP-C10 (B)
FP-C10 (C)
FP-C10 (D)FP-C10 (G)FP-C10 (L)
FP-C10 (R)
FP-C10 (S)FP-C10 (V)FP-C10 (F)
FP-C10
FP-C10 AFP-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)!M12000R2042 — EN — 09.12.2000 — 001.001 — 19
Company
nameCamera heads Viewfinder Camera control unitOperational
control unitMaster control
unit (*)Camera adapters
Hitachi
(con’t)FP-C10 A (W)
Z-ONE C (M)
Z-ONE C (R)Z-ONE C (F)Z-ONE C
HV -C20
HV -C20MZ-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
WV-F700SHE WV-VF39E WV -RC700A/B WV-AD700MEWV-F700ASHE WV-VF65BE (*) WV -RC700A/G WV-AD250EWV-F700BHE WV-VF40E (*) WV -RC36/B WV-AD500E (*)
WV-F700ABHE WV-VF42E WV -RC36/G AW-AD500AE
WV-F700MHE WV-VF65B WV -RC37/B AW-AD700BSEWV-F350 WV -RC37/GWV-F350HE WV -CB700E
WV-F350E WV -CB700AE
WV-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/G
AW-E800 WV -RC550/B
WV -RC700AWV -CB700AWV -RC550
WV -CB550
AW-RP501AW-RP505
JVC KY -35E VF-P315E RM-P350EG — — KA-35EKY -27ECH VF-P550E RM-P200EG KA-B35U
KY -19ECH VF-P10E RM-P300EG KA-M35U
KY -17FITECH VP-P115E RM-LP80E KA-P35UKY -17BECH VF-P400E RM-LP821E KA-27EKY -F30FITE VP-P550BE RM-LP35U KA-20E
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!M12000R2042 — EN — 09.12.2000 — 001.001 — 20
Company
nameCamera heads Viewfinder Camera control unitOperational
control unitMaster control
unit (*)Camera adapters
JVC
(con’t)KY -D29WECH (1) KA-M20E
KA-M27E
Olympus MAJ-387N OTV -SX2MAJ-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.!M12000R2042 — EN — 09.12.2000 — 001.001 — 21