15.12.90 OfficialJournaloftheEuropeanCommunities NoL351/17
COMMISSION REGULATION (EEC)No3617/90
of11December 1990
imposingaprovisionalanti-dumping dutyonimportsofcertainweldedtubesof
ironornon-alloysteel,originatinginTurkeyorinVenezuelaandaccepting
undertakings offeredinconnectionwithsuchimports
THECOMMISSION OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,tomakeknowntheirviewsinwritingandto
requestahearing.
Duringtheinvestigation ,allexportersconcerned
andsomeimportersandCommunityproducers
askedforanextensionforreplyingtotheCommis­
sion'squestionnaires .Sincetheserequestswere
consideredjustified,theCommissionextendedthe
settimelimits.
(4)MostoftheCommunityproducers,someofthe
importers,twoTurkishproducers/exporters,a
producerandanexporterofVenezuelanproducts
madeknowntheirviewsinwriting.Someofthem
requestedandweregrantedhearings.HavingregardtoCouncilRegulation(EEC)No2423/88
of11July1988onprotectionagainstdumpedorsubsi­
dizedimportsfromcountriesnotmembersoftheEuro­
peanEconomicCommunity('),andinparticularArticles
10and11thereof,
AfterconsultationswithintheAdvisoryCommitteeas
providedforbytheabovementioned Regulation,
Whereas:(5)Nosubmissionsweremadebyoronbehalfof
Communitypurchasersorprocessorsofthe
productsinquestion.
A.PROCEDURE(6)TheCommissionsoughtandverifiedallinforma­
tionitdeemedtobenecessaryforthepurposesof
establishingthefactsandcarriedoutinvestigations
atthepremisesofthefollowing:
(a)ECproducers:(1)InJune1989theCommission receiveda
complaintlodgedbytheLiaisonCommitteeofthe
EuropeanCommunitySteelTubeIndustryon
behalfofmanufacturers representingthemajority
oftheCommunityproductionoftheproductsin
question.—Mannesmannröhren-Werke AG,Düsseldorf,
Germany,
—SaarstahlVölklingenGmbH,Homburg/
Saar,Germany,(2)Thecomplaintcontainedevidenceofdumpingand
injurycausedtherebywhichwasconsideredsuffi­
cienttojustifytheinitiationofaproceeding.
TheCommissionaccordinglyannounced,bynotice
publishedintheOfficialJournaloftheEuropean
Communities (2)theinitiationofananti-dumping
proceedingconcerningimportsintotheCommu­
nityofcertainweldedtubesofironornon-alloy
steelfallingwithinCNcodes73063051,
73063059,ex73063071andex73063079,origi­
natinginTurkeyandinVenezuela,and
commencedaninvestigation .—IBS(UnitedTubeMills)SA,Athens,Greece,
—DalmineSpA,Dalmine,Italy,
—ArbedSA,Luxembourg ,Luxembourg ,
—BritishSteelTubes,Corby,Northants,
UnitedKingdom;
(b)non-ECproducers/exporters:
Turkishproducts:
—BorusanSalipazari,Istanbul,Turkey,
—YücelBoruGroupKadiköy,Istanbul,
Turkey;
Venezuelanproducts:(3)TheCommissionofficiallysoadvisedtheprodu­
cers/exportersandimportersknowntothe
Commissiontobeconcerned,therepresentatives of
theexportingcountriesandthecomplainantand
gavethepartiesdirectlyconcernedtheopportunity—producer:CA.Conduven,Caracas,Vene­
zuela,
—exporter:ConnectorsInc.,Hauppauge,New
York,USA;(')OJNoL209,2.8.1988,p.1.0OJNoC226,2.9.1989,p.18.

NoL351/18 OfficialJournaloftheEuropeanCommunities 15.12.90
(c)ECimporters:
—LeopoldLazarusLtd,London,United
Kingdom,
—Rheinerz,Koln,Germany,
—CoutinhoCaro&CoGmbH,Diisseldorf,
Germany,othergeneralexpensesandareasonablemarginof
profit.
Normalvaluewascalculatedforeachmonthofthe
investigationperiod.
(10)Venezuela
Normalvaluewasbasedonsalesintheordinary
courseoftradeofcomparablelikeproductsonthe
Venezuelanmarket,netofalldiscountsandrebates.
Normalvalueshavebeenestablishedonthebasis
oftheweightedaverageex-workssalespricesfor
thetubesconcerned .—bj\.L.l.S>.i>pA,Sassan,Italy.
(7)TheCommissiongavethedifferentpartiesknown
tobeconcernedtheopportunitytoinspectall
information madeavailabletotheCommission .
Furthermore ,exportersoftheproductunderinves­
tigationwereinformedinconformitywithArticle7
(4)ofRegulation(EEC)No2423/88oftheessential
factsunderconsideration ,onthebasisofwhichit
wasintendedtoimposemeasures.
(8)Theinvestigationofdumpingcoveredtheperiod
from1July1988to30June1989.(b)Exportprices:
(11)Turkey
Theexportpricesweredeterminedonthebasisof
thepricesactuallypaidorpayableforthelike
productsoldforexporttotheCommunity .Export
salestakenintoconsideration weremadetoinde­
pendentcustomers.Theproductssoldforexport
wereidenticaltothosewhichwereconsideredfor
thecalculationofnormalvalue.Noquantity
discountsweregranted.
(12)Venezuela
AllexportstotheCommunitywerechannelled
throughConnectorsInc.locatedinNewYork.
Connectorshasthefunctionofanexportdepart­
mentofConduven.Ithandlesnootherproducts
andisfullycontrolledbyConduven.Export
contracts,invoicingandcollectionofpaymentsare
madebyConnectors;handlingandshippingofthe
goodsiscarriedoutbyConduvenwhichshipsthe
goodsdirectlytotheCommunity .Theexporting
countryisthereforeVenezuela.Theexportprice
wastakentobethatinvoicedbyConnectorssince
thiscompanymerelyperformedthefunctionsofan
exportdepartmentofConduvenwhichwould
otherwisehavebeencarriedoutinVenezuela .B.DUMPING
(a)Normalvalue:
(9)Turkey
Thedetermination ofthenormalvaluevaried
accordingtotheproducer/exporter.ForYiicelBoru
Group,normalvaluewasestablishedonthebasisof
thecomparablepricesactuallypaidorpayablein
theordinarycourseoftradeforthelikeproducton
theTurkishmarket.
Domesticsalesconsideredforthecalculationof
normalvaluewerethosemadetoindependent
customersataprofitandinsubstantialquantities.
Therewerenoqualitydifferencesbetweenthe
productssoldonthedomesticmarketandthosefor
exportation.
Normalvaluewasestablishedonamonthly
weightedaveragebasisfortheperiodJuly1988to
March1989fallingwithintheinvestigationperiod,
sinceYiicelBoruhadmadenoexportstothe
CommunitybetweenApril1989andJune1989
(endoftheinvestigationperiod).
ForBorusan,theinvestigationbytheCommission
showedthatasubstantialpartofitssalesonthe
Turkishdomesticmarketweremadeataloss
duringtheinvestigationperiod.Consequently ,it
wasconsideredthatthesesaleswerenotmadein
theordinarycourseoftrade.
Thusthenormalvaluewasbasedonaconstructed
value,determinedbyaddingcostofproduction,a
reasonableamountforselling,administrative and(c)Comparison
(13)Incomparingnormalvaluewithexportpricesthe
Commissiontookaccount,whereappropriateand
totheextentofevidenceavailable,ofdifferencesin
conditionsandtermsofsale,suchastransport,
,insurance,forwarding,handlingcostsandpayment.
Allcomparisonsweremadeatanex-workslevel.
(d)Dumpingmargins
(14)Theabovedetermination ofthefactsshowsthe
existenceofdumping.

15.12.90 OfficialJournaloftheEuropeanCommunities NoL351/19
Theconsiderable inflowofdumpedimports
preventedCommunityproducersfrombenefiting
adequatelyfromtheincreaseinconsumption .
GrowthofCommunityproductiondestinedtothe
Communitymarketlaggeddistinctlybehindthe
developmentofconsumption .
Theeffectwasparticularlypronouncedinthe
Germanmarketwhichabsorbedasubstantialpart
ofthedumpedimportsfromthetwocountries
concernedduringtheperiod1986to1989.
Inlinewiththeretardedprogressofproductionin
connectionwiththemassiveinflowofdumped
imports,Communityproducerscouldachieveonly
amoderateimprovement oftheircapacityutiliza­
tionwhichonaverageadvancedby5,5percentage
pointsfrom57%to62,5%between1986andthe
investigationperiod.
TheoverallcapacityutilizationintheCommunity
thusremainedunsatisfactory andpreventedthe
Communityproducersfromrealizingtheadvan­
tagesofdecreasingunitcostwhichtheywould
haveobtainedifproductionhadfollowedthe
expansionofdemand.Thiseffectwasparticularly
detrimentalinthelightofincreasingrawmaterial
costfollowingthesharpincreaseofpricesforflat
rolledsteelproductsandzinc.Themarginsofdumpingareequaltotheamount
bywhichthenormalvaluesasestablishedexceed
thepricesforexporttotheCommunity .
Themarginsofdumpingvariedaccordingtothe
producer/exporterandtheweightedaverage
marginsexpressedasapercentageoftotalcif
Communityfrontiervalueswereasfollows:
YiicelBoruGroup 18,5%
Borusan 8,1%
Conduven 22,1%
C.INJURY
(a)Cumulation
(15)BecausetubesoriginatinginTurkeyandinVene­
zuelaarealikeandincompetitiononthesame
marketsanddistributedthroughsimilarchannels,
theCommission consideredthatthecumulationof
theimpactsofthedumpedimportsfromTurkey
andVenezuelawasappropriate.
(b)Volumeandmarketshareofdumped
imports
(16)ImportsfromTurkeyandVenezuelarosefrom
5874tonnesin1986to52835tonnesduringthe
investigationperiod,corresponding toarateof
800%withinlessthanfouryears.
Thecorresponding marketshareincreasedfrom
0,8%to5,8%inthesameperiod.Inthemost
affectedMemberStates,themarketsharesreached
7,6%intheFederalRepublicofGermanyand
11,2%intheUnitedKingdom.
(c)Prices
(17)TheevidenceavailabletotheCommissionalso
indicatesthatthepricesatwhichthedumped
importsfromTurkeyandVenezuelaweresoldin
theCommunityundercutthepricesofCommunity
producersduringtheinvestigationperiodsignifi­
cantly.
Theweightedaveragepriceundercuttings varied
accordingtotheproducer/exporterandwereasPricesandprofitability
(19)From1986totheinvestigationperiod,therewasa
distinctincreaseinthesalespricesoftheCommu­
nityproducers.However,thepriceincreaseswere
toalargeextentabsorbedbythehigherpurchase
pricesofthemaininputmaterials.
Thegenerallybuoyantsituationofthesteel
marketsandthestrongdemandfortubesinthe
Communityalsoledtoanimprovement ofthe
financialresultsofCommunity producers.
However,Communitypricesremainedsuppressed
andCommunityproducerswerepreventedfrom
realizingthenecessarypriceincreasestorecover
theriseofrawmaterialcostandtogeneratesatis­
factoryreturnsoftheirsales.Mostoftherelevant
Communityproducerscouldnotgeneratepositive
financialresultsandhavecontinuedtomakelosses
despitetheveryfavourablemarketsituation.
Furthermore ,theCommission wasinformedthata
Communityproducerdecidedtostopproduction
ofweldedtubesbecauseoftheverylowprofitabi­
lityofthissector.follows:
YucelBoruGroup 21,2%
Borusan 7%
Conduven 25,8%
(d)ImpactontheCommunityindustry
Productionandcapacities
(18)Between1986andtheinvestigation period
Communityconsumptionincreasedby22,9%,
whileproductiondestinedfortheCommunity
marketrosebyonly9,8%overthesameperiod.

NoL351/20 OfficialJournaloftheEuropeanCommunities 15.12.90
(e)Causality andVenezuelanexports,takeninisolation,hadto
bequalifiedasmaterial.
(f)Conclusion(20)InassessingwhetherdumpedimportsfromTurkey
andVenezuelahavecausedtheinjurysustainedby
theCommunityindustry,theCommissiontook
accountofthefactthatCommunityproducers
shouldhavebenefitedfromtherecoveryinthe
steelsector.However,theseriousdifficultiesfaced
byCommunityproducersinextendingproduction
andsales,obtainingbetterpricestocopewiththe
sharpriseinthepurchaseofrawmaterialpersisted,
whilethevolumeofdumpedimportsofferedat
prices,whichundercutsignificantlythoseofthe
injuredindustryweresharplyincreasing.Inthis
respect,theimportvolumeofbothTurkeyand
Venezuela (35660tonnesand17175tonnes
duringtheinvestigationperiod)andthecorrespon­
dingmarketshare(3,9%and1,9%duringthe
investigationperiod)wereconsideredasbeing
significant.(21)Inthesecircumstances theCommission has
concludedthatthevolumeofdumpedimports
fromTurkeyandVenezuelaandthepricesat
whichtheywereofferedforsaleintheCommu­
nity,takeninisolation,havetobeconsideredas
havingcausedmaterialinjurytotheCommunity
industry.
D.COMMUNITY INTEREST
Becausethebuyersdecisionsaremainlyorientated
bythepricesatwhichtheproductsareoffered,the
Commissionconcludedthatbothexportingcoun­
triescausedinjury.
TheCommission alsoexaminedwhetherother
factorsmighthavecontributedtotheinjury
sustainedbythecommunityindustry.
Forthispurpose,theCommissiontookaccount
thatdumpedimportsoftheproductsconcerned
originatinginRomaniaandYugoslavia,whichalso
hadanegativeimpactontheCommunitymarket,
havebeensubjecttoprotectivemeasures(').(22)InassessingwhethertheinterestsoftheCommu­
nitycallforintervention ,theCommission has
consideredthattheironandsteeltubeproduction
isanimportantbasicindustryintheCommunity
closelylinkedupstreamwiththesteelindustryand
isthemostimportantcustomerforthetransforma­
tionofprimaryECSCsteelproducts.About15%
oftotalEECrawsteelproductionisabsorbedby
themanufactureoftubes.Thesectorhasgone
throughasevererestructuringprocessbecauseof
overcapacity .In1988,thesectoremployed74500
peopleintheCommunityasagainst123500in
1981.Regionallytheplantsarelocatedinthevici­
nityofthesteelproducingcentreswhichare
alreadysufferingfromemployment problems
linkedtothedownturninthesteelindustry.
Downstreamthesectorisanimportantsupplierof
allbranchesofthemanufacturing industry.The
mostimportantcustomergroupsaremechanical
engineering,vehiclebuilding,construction ,struc­
turalsteelworksandtheenergysectorincluding
nuclear.Inordertobeinapositiontomanufacture
thewholerangeofproductsatcompetitivecosts,
theindustrydependsonareasonableutilization
rateofitsequipment .Thisisprincipallyachieved
bytheproductionofstandardcommercialquality
tubeswhichareindirectcompetitionwiththe
dumpedproductsimportedfromTurkey,Vene­
zuela,RomaniaandYugoslaviaandaccountfora
majorpartoftherevenuegeneratedbythe
industry.Inviewofthesefacts,itisconsideredin
theCommunity'sinteresttomaintainaviableand
healthysteeltubemanufacturing industry.TheCommissionestablishedthatimportsfrom
otherthirdcountriesnotallegedtobedumpedhad
alsomoderatelyprogressedduringtheperiodunder
considerationleadingtoanincreaseoftheirmarket
shareof2,6%whichistobemeasuredagainstan
expansionofthemarketshareofthecombined
dumpedimportsfromTurkey,Venezuela,Romania
andYugoslaviaby7%overthesameperiod.
AstheCommission hadnoindicationthatthe
slightexpansionofthemarketshareofotherthird
countrieshadbeenachievedbydumpingitwas
consideredthattheinjuryinflictedbytheTurkish
(')Noticeofinitiation,OJNoC241,16.9.1988,p.3;Com­
missonRegulation(EEC)No3074/89,OJNoL294,13.10.
1989,p.10;CouncilRegulation(EEC)No868/90,OJNoL
91,6.4.1990,p.8;CommissionDecision90/166/EEC,OJ
NoL91,6.4.1990,p.36.(23)TheCommission alsotookintoaccounttheinte­
restsoftheusersofTurkishandVenezuelan
weldedtubesandconsideredthatthesecondary
effectsofthenecessarypriceincreasesinrespectof

15.12.90 OfficialJournaloftheEuropeanCommunities NoL351/21
theoutputofthemaindownstreambranches
mentionedabovewillbeinsignificant .Nosubmis­
sionstothecontraryweremadebyoronbehalfof
Communitypurchasersorprocessorsofthewelded
steeltubesconcerned .
E.PROTECTIVE MEASURES
(24)GiventheseriousdifficultiesfacingtheCommu­
nityindustryconcerned,theCommission has
concludedthat,inordertomaintaintheeffective­
nessofthemeasuresalreadyimposedagainst
dumpedimportsfromRomaniaandYugoslavia
andtoavoiddiscrimination ,actionshouldbetaken
alsoagainstdumpedimportsfromTurkeyand
Venezuela .
TheCommission considersthatthesituation
warrantstheimpositionofprovisionalmeasuresat
thisstageoftheproceedinginordertoprevent
furtherinjurybeingcausedduringtheremainderof
theproceeding.
(25)Havingregardtotheinjurycaused,theCommis­
sionintendedtoimposeprovisionaldutiesatarate
adequatetoremovetheinjurybutnotexceeding
thedumpingmarginsestablished .Sincetheinjury
consistsmainlyinlossofprofitabilityduetoprice
undercutting ,theCommissionconsideredneces­
sarytoeliminatepriceundercutting dueto
dumping.
Consequently ,thedutynecessarytoremoveinjury
wascalculatedonthebasisofthepriceundercut­
tingorthedumpingmarginofeachexporter,
whicheverwasthelowest.othercasesthedumpingmarginwillbeeliminated
infull.
MoreovertheCommission notesthatincaseof
violationofthesepriceundertakingsitcanimpose
immediateprovisionaldutiesandtheCouncilcan
thenimposedefinitivedutiesbasedonthefacts
establishedinthepresentinvestigation ,without
carryingoutnewinvestigations concerning
dumpingandinjuryresultingthereform.
G.RESIDUAL DUTIES
(29)Inordertocoverothercompanieswhichdidnot
cooperateduringtheinvestigationperiodandto
preventcircumvention ,itisconsideredappropriate
toimposeprovisionalanti-dumping duties.
Sincethepriceundercuttings ofsomeexporters
exceededthedumpingmargin,therateofthese
dutiesshouldcorrespondtothehighestdumping
marginfoundforeachcountry.Itisestablishedat:
18,5%forTurkey,
22,1%forVenezuela.
Indeed,itwouldconstituteabonusfornon-coope­
rationtoholdthatthedutiesfortheseproducers/
exporterswereanylowerthanthehighestanti­
dumpingdutydetermined .
H.CONCLUSION
(30)Inthelightoftheabovefindings,itisconsidered
thattheinterestsoftheCommunityrequirethe
impositionofprotectivemeasures.
(31)TheCommission isoftheopinionthattheprice
undertakings offeredcanbeacceptedforthe
producers/exportersconcernedandthattheinvesti­
gationagainstthesecompaniesmaybeterminated .
(32)Aprovisionaldutyshouldbeimposedonimports
oftheproductinquestionoriginatinginTurkey
andinVenezuelarealizedbycompaniesotherthan
thesewhichhaveofferedundertakings .
(33)TheAdvisoryCommitteehasbeenconsultedwith
regardtothiscourseofactionandhasraisedno
objectiontotheproposals.
(34)Aperiodshouldbefixedwithinwhichtheparties
concernedmaymaketheirviewsknownand
requestahearing,F.UNDERTAKINGS
(26)TheTurkishandVenezuelanproducers/exporters
whichcooperatedduringtheinvestigationhaving
beeninformedofthepreliminaryfindingsofthe
Commissionserviceswithregardtodumpingand
injuryhaveofferedpriceundertakings .
(27)TheYiicelBoruGroup,whichwasconsideredasa
singleeconomicentityforthepurposesofthis
investigation ,haspointedoutthatitwascomposed
oftwoproducingcompaniesandoneexporting
company,whichmayexportinthefutureunderits
ownseparatenames.Consequently ,priceunderta­
kingshavebeenofferedinthenameofeachof
thesethreecompanies .
(28)TheCommissionissatisfiedthattheeffectofthese
undertakingsofferedbytheTurkishandVenezu­
elanproducers/exporterswillbeanincreaseofthe
exportpricesoftheexportersconcernedtothe
extentthattheinjurywillbeeliminatedincases
whereitislowerthanthedumpingmarginsandinHASADOPTEDTHISREGULATION :
Article1
1.Aprovisionalanti-dumpingdutyisherebyimposed
onimportsofweldedtubes,ofironornon-alloysteel,
threadedorthreadable,zinccoatedornot,ofcircular
cross-section ,ofan.externaldiameterofnotmorethan

NoL351/22 15."12.90 OfficialJournaloftheEuropeanCommunities
—CayirovaBoruSanayiVeTicaretAS(Taricaddi­
tionalcode:8510),168,3mm,fallingwithinCNcodes73063051,
73063059,ex73063071(Tariccode:73063071*90),ex
73063079(Tariccode:73063079*90),originatingin
TurkeyandVenezuela.
2.Therateofthedutyshallbe18,5%forproducts
originatinginTurkey(Taricadditionalcode:8511)and
22,1%forproductsoriginatinginVenezuela(Taricaddi­
tionalcode:8513).Thedutyshallbecalculatedonthe
netprice,free-at-Community-frontier ,customsuncleared.
3.Theprovisionsinforceconcerningcustomsduties
shallapply.
4.ThereleaseforfreecirculationintheCommunityof
theproductsReferredtoinparagraph1shallbesubjectto
theprovisionofasecurity,equivalenttotheamountof
theprovisionalduty.
Article2
1.Notwithstanding Article1,thedutiesshallnotapply
fortheproductsconcerned
—exporteddirectlytotheCommunityby
—BorusanBirlesikBoruFabrikalariAS(Taricaddi­
tionalcode:8510),
—BorusanIhracatIthalatVeDagitimAS.(Taric
additionalcode:,8510),—YücelBoruIhracatIthalatVePazarlamaAS(Taric
additionalcode:8510),
—producedbyConduven,Caracas,Venezuelaand
exportedbyConnectors ,NewYork,USA(Taricaddi­
tionalcode:8512).
2.Theundertakingsofferedbythecompaniescitedin
paragraph 1areherebyaccepted.
3.Theinvestigationagainstthecompaniescitedin
paragraph 1isherebyterminated.
Article3
WithoutprejudicetoArticle7(4)(b)and(c)ofRegulation
(EEC)No2423/88,thepartiesconcernedmaymake
knowntheirviewsinwritingandapplytobeheardbythe
Commissionwithinonemonthoftheentryintoforceof
thisRegulation .
Article4
ThisRegulationshallenterintoforceonthedayfollo­
wingthatofitspublicationintheOfficialJournalofthe
EuropeanCommunities .
SubjecttoArticles11,12and13ofRegulation(EEC)No
2423/88,Article1shallapplyforaperiodoffourmonths,
unlesstheCounciladoptsdefinitivemeasuresbeforethe
expiryofthatperiod.—YücelBoruVeProfilEndüstrisiA.S.(Taricaddi­
tionalcode:8510),
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,11December1990.
FortheCommission
FransANDRIESSEN
Vice-President