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COMMISSION RECOMMENDATION No 1104/82/ECSC

of 6 May 1982

imposing a provisional anti-dumping duty on certain sheets and plates, of iron or steel, originating in Brazil

THE COMMISSION OF THE EUROPEAN

COMMUNITIES,

Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Articles 74 and 86 thereof,

Having regard to Commission recommendation No 3018/79/ECSC of 21 December 1979 on protection against dumped or subsidized imports from countries not members of the European Coal and Steel Community (1), and in particular Article 11 thereof,

After consultations within the Advisory Committee provided for by recommendation No 3018/79/ECSC,

Whereas in March 1982 the Commission received a complaint, lodged by the Walzstahl-Vereinigung, Duesseldorf, on behalf of almost all Community producers of sheets and plates, of iron or steel, hot-rolled or cold-rolled, of a thickness of less than 3 mm;

Whereas, since the complaint provided sufficient evidence of dumping in respect of the like product originating in Brazil and of the threat of material injury resulting therefrom, the Commission accordingly announced, by a notice published in the Official Journal of the European Communities (2), the initiation of a proceeding concerning imports of sheets and plates, of iron or steel, originating in Brazil and commenced an investigation of the matter at Community level;

Whereas the Commission officially so advised the exporters and importers known to be concerned, as well as the representatives of the exporting country and the complainants;

Whereas the Commission has given all parties directly concerned the opportunity to make known their views in writing and to be heard orally; whereas all exporting and several of the importing parties known to be concerned have taken the opportunity to make known their views in writing; whereas the exporting parties concerned also availed themselves of the opportunity to present their views orally;

Whereas the Commission has published basic prices (3) based on the lowest normal prices or costs of production in the supplying countries where normal conditions of competition prevail, including the costs of transport, insurance and customs duties; whereas the Brazilian exporters did not submit any evidence which would lead the Commission to doubt the appropriateness of these basic prices; whereas, moreover, the allegations made by the Brazilian exporters that export prices of the product concerned to the Community are above domestic prices in Brazil and that these prices cover all costs of production were not supported by any evidence;

Whereas, therefore, for its preliminary determination of dumping the Commission compared the prices of imports into the Community of the products under consideration with the basic prices;

Whereas this comparison shows that between December 1981 and March 1982 most of these products, originating in Brazil, have been offered for importation within the Community at prices lower than the basic prices and that dumping has taken place the margin of which is constituted by this undercutting; whereas the margin has varied, reaching more than 22 % in some instances; whereas this undercutting has occurred despite the arrangement on trade in iron and steel products concluded between Brazil and the Community by which the Brazilian Government has undertaken to ensure that in respect of the products in question Community basic prices would be respected by Brazilian exporters;

Whereas, with regard to injury to the Community industry concerned, the evidence available to the Commission shows that in 1980 imports into the Community of the products concerned originating in Brazil amounted to approximately 30 000 tonnes;

Whereas from December 1981 to March 1982 import licence applications for 98 058 tonnes of the products in question originating in Brazil have been received by the German authorities and applications for more than 20 000 tonnes by the British authorities; whereas

during the period December 1981 to February 1982, 34 644 tonnes of these products were already actually imported into the Federal Republic of Germany;

Whereas the average monthly quantity of the products concerned originating in Brazil, for which import licences were issued between December 1981 and March 1982, represents 3 % of average monthly consumption in the Community in 1980; whereas the average monthly quantity for which import licences were issued during the same period solely by the German authorities represents 13;2 % of average monthly consumption in Germany in the first 10 months of 1981;

Whereas the information obtained from certain importers shows that the prices at which considerable quantities of these imports are resold within the Community are significantly below the abovementioned basic prices and below the price level which would permit the Community producers to cover their costs; whereas these prices are forcing the Community industry either to lose sales or to align its prices downwards;

Whereas the Community industry manufacturing the products concerned is in a crisis situation characterized by a fall in production of 11 % between 1977 and 1980, a very low capacity utilization estimated at below 50 % in some instances and reduced profits or increased losses; whereas, in addition, the numbers employed in the Community steel industry fell by 244 780 or 30;8 % between 1974 and 1981; whereas the importation of the quantities licensed and their resale at low prices seriously jeopardizes the attempt being made at present by the Community authorities and producers to reduce output and increase prices to profitable levels;

Whereas the Commission has also considered the injury caused by other factors which, individually or in combination are also affecting the Community industry; whereas it has found in this context that the level of consumption in the Community has declined; whereas the volume of imports from other sources has fallen at a much greater rate, however from 1 430 000 tonnes in 1977 to 753 000 tonnes in 1981; whereas the influence of the dumped imports has been isolated from the other factors adversely affecting the industry; whereas taking into account the restructuring efforts being undertaken at present by the Community steel industry the Commission has reached the preliminary conclusion that the dumped imports are causing or threatening to cause material injury to a Community industry;

Whereas since December 1981 a number of consultations have been held in the context of the abovementioned arrangement between the Community and Brazil regarding the imports under consideration; whereas these consultations did not result in a suitable solution;

Whereas, in these circumstances and in order to prevent further injury being caused during the proceeding, the interests of the Community call for immediate intervention consisting in the imposition of a provisional anti-dumping duty; whereas the evidence at present available to the Commission indicates that dumping has only occurred in respect of imports of cold-rolled sheets and plates; whereas it is appropriate, therefore, to limit the provisional duty to imports of these products; whereas having regard to the extent of injury caused the rate of this duty should be equal to the difference between the basic prices published by the Commission for these products and their price on importation into the Community;

Whereas, in order to prevent evasion of the anti-dumping duty, it is necessary to establish another basis for calculating such duty where the products in question are not put into free circulation by the first purchaser in the Community; whereas the method used should take account of the average margin between import prices and resale prices charged by Community importers for these products originating in Brazil, such margin having been provisionally determined in the course of the preliminary investigation carried out by the Commission;

Whereas a time limit should be fixed within which the parties concerned may, following the imposition of the provisional duty, make their views known and apply to be heard orally by the Commission,

MAKES THE FOLLOWING RECOMMENDATION:

Article 1

1. A provisional anti-dumping duty is hereby imposed on sheets and plates, of iron or steel, not further worked than cold-rolled, of a thickness of less than 3 mm falling within Common Customs Tariff subheadings 73.13 B II b) and c) and corresponding to NIMEXE codes 73.13-43, 45, 47 and 49, originating in Brazil.

2. The amount of this duty shall be equal to the amount by which the effective price (basic price plus extras) established by contract, free-at-frontier, duty-paid, is lower than the most recent effective price (basic price plus extras) published by the Commission for these products. 3. (a) Where the products defined in paragraph 1 are not put into free circulation on the basis of the price to the first purchaser in the Community, the amount of duty shall be equal the amount by which the effective price (basic price plus extras) established by contract, free-at-frontier duty-paid, is lower than the most recent effective price (basic price plus extras), published by the Commission for these products, increased by 15 %.

(b) However, where the declarant is able to give proof to the satisfaction of the customs authorities of the price paid by the first purchaser, paragraph 2 shall apply.

4. The provisions in force concerning customs duties shall apply for the application of this duty.

5. The release for free circulation in the Community of the products referred to in paragraph 1 shall be subject to the provision of a security equivalent to the amount of the provisional duty.

Article 2

1. Without prejudice to Article 7 (4) (b) and (c) of recommendation No 3018/79/ECSC, the parties concerned may make known their views and apply to be heard orally by the Commission within a month of the entry into force of this recommendation.

2. Subject to Articles 11, 12 and 14 of recommendation No 3018/79/ECSC, this recommendation shall be applicable for four months or until the adoption by the Commission of definitive measures.

Article 3

This recommendation shall enter into force on the day following its publication in the Official Journal of the European Communities.

Done at Brussels, 6 May 1982.

For the Commission

Wilhelm HAFERKAMP

Vice-President

(1) OJ No L 339, 31. 12. 1979, p. 15.

(2) OJ No C 70, 19. 3. 1982, p. 3.

(3) OJ No L 372, 29. 12. 1981, p. 1, OJ No L 290, 31. 10. 1980, p. 1, as amended by OJ No L 184, 4. 7. 1981, p. 19 and OJ No L 216, 1. 8. 1981, p. 1.