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( 1 ) OJ NO L 114 , 5 . 5 . 1977 , P . 6 .

( 2 ) OJ NO L 352 , 31 . 12 . 1977 , P . 13 .

( 3 ) OJ NO C 19 , 24 . 1 . 1978 , P . 7 .

( 4 ) OJ NO L 50 , 22 . 2 . 1978 , P . 13 .

( 5 ) OJ NO L 106 , 20 . 4 . 1978 , P . 20 .

( 6 ) OJ NO L 94 , 8 . 4 . 1978 , P . 21 .

( 1 ) COMMISSION COMMUNICATION OF 31 DECEMBER 1977 CONCERNING BASIC PRICES OF CERTAIN IRON AND STEEL PRODUCTS ( OJ NO L 353 , 31 . 12 . 1977 , P . 1 ), AS AMENDED BY THE COMMUNICATION OF 5 JULY 1978 ( OJ NO L 183 , 5 . 7 . 1978 , P . 3 .)

COMMISSION RECOMMENDATION NO 1715/78/ECSC

OF 20 JULY 1978

IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN GALVANIZED SHEETS AND PLATES ORIGINATING IN JAPAN

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 77/329/ECSC OF 15 APRIL 1977 ON PROTECTION AGAINST DUMPING OR THE GRANTING OF BOUNTIES OR SUBSIDIES BY COUNTRIES WHICH ARE NOT MEMBERS OF THE EUROPEAN COAL AND STEEL COMMUNITY ( 1 ), AS AMENDED BY RECOMMENDATION NO 3004/77/ECSC ( 2 ), AND IN PARTICULAR ARTICLES 17 AND 19 THEREOF ,

HAVING HEARD THE OPINIONS EXPRESSED WITHIN THE ADVISORY COMMITTEE PROVIDED FOR BY RECOMMENDATION 77/329/ECSC ,

WHEREAS THE COMMISSION HAS RECEIVED A COMPLAINT , SUBMITTED IN THE NAME OF THE RELEVANT COMMUNITY INDUSTRY , SETTING OUT EVIDENCE AS TO THE EXISTENCE OF DUMPING OF CERTAIN GALVANIZED SHEETS AND PLATES , ORIGINATING IN JAPAN AND CERTAIN OTHER COUNTRIES , AND MATERIAL INJURY RESULTING THEREFROM ;

WHEREAS , SINCE THE INFORMATION RECEIVED INDICATED THAT THE COMPLAINT WAS ADMISSIBLE AND THAT DEFENSIVE MEASURES MIGHT BE NECESSARY , THE COMMISSION OFFICIALLY INFORMED THE IMPORTERS AND EXPORTERS KNOWN TO BE CONCERNED , PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES A NOTICE OF THE INITIATION OF AN INQUIRY CONCERNING THE IMPORTS IN QUESTION ( 3 ) AND COMMENCED AN EXAMINATION OF THE MATTER IN COOPERATION WITH THE MEMBER STATES ;

WHEREAS , SINCE PRELIMINARY EXAMINATION OF THE MATTER SHOWED THAT THERE WAS DUMPING AND SUFFICIENT EVIDENCE OF INJURY AND THE INTERESTS OF THE COMMUNITY CALLED FOR IMMEDIATE INTERVENTION , THE COMMISSION , BY RECOMMENDATION NO 359/78/ECSC ( 4 ), IMPOSED A PROVISIONAL ANTI-DUMPING DUTY ON THE IMPORTS IN QUESTION ;

WHEREAS THE SAID PROVISIONAL DUTY HAS BEEN EXTENDED ( 5 ) AND SUSPENDED ( 6 );

WHEREAS , IN THE COURSE OF THE EXAMINATION OF THE MATTER , COMPLETED AFTER THE IMPOSITION OF THE PROVISIONAL ANTI-DUMPING DUTY , THE COMMISSION GAVE INTERESTED PARTIES THE OPPORTUNITY TO MAKE KNOWN THEIR VIEWS IN WRITING AND GAVE THE PARTIES DIRECTLY CONCERNED WHO SO REQUESTED THE OPPORTUNITY ORALLY TO DEVELOP THEIR VIEWS ;

WHEREAS , HOWEVER , IN SO FAR AS INTERESTED PARTIES DID NOT AVAIL THEMSELVES OF THE OPPORTUNITY TO MAKE KNOWN THEIR VIEWS OR PRESENT THEIR ARGUMENTS , THE COMMISSION HAD TO BASE ITS FINDINGS ON THE FACTS AVAILABLE ;

WHEREAS IN VIEW OF THE PARTICULAR SITUATION PREVAILING ON NATIONAL AND INTERNATIONAL MARKETS FOR STEEL , IT APPEARED TO THE COMMISSION THAT SALES ON THE DOMESTIC MARKET OF JAPAN WERE NOT MADE IN THE ORDINARY COURSE OF TRADE AND DID NOT PERMIT A PROPER COMPARISON FOR THE PURPOSES OF ESTABLISHING DUMPING MARGINS ;

WHEREAS , FOR THESE REASONS , THE COMMISSION HAS DECIDED TO BASE ITS DUMPING CALCULATIONS ON THE COST OF PRODUCTION IN A COUNTRY CONSIDERED TO BE ONE OF THE MOST EFFICIENT PRODUCERS OF THE PRODUCT IN QUESTION , AS ESTABLISHED BY MEANS OF THE LATEST PUBLICLY AVAILABLE DATA ;

WHEREAS SUCH COST OF PRODUCTION HAS BEEN CALCULATED TAKING INTO CONSIDERATION INTER ALIA THE FOLLOWING ELEMENTS : RAW MATERIALS ( COVERING IRON ORE , SINTER , PELLETS , SCRAP , FERRO ALLOYS AND OTHER IRON-BEARING MATERIALS AND FLUXES ), ENERGY COSTS ( COKE , FUEL OIL , ELECTRICITY ), LABOUR COSTS INCLUDING SOCIAL COSTS OTHER OPERATING COSTS ( INCLUDING MAINTENANCE COSTS AND TRANSPORT COSTS ) AND CAPITAL COSTS , TO WHICH WAS ADDED A REASONABLE AMOUNT FOR ADMINISTRATION , SELLING AND ANY OTHER COSTS AND FOR PROFITS ;

WHEREAS THE AFOREMENTIONED CALCULATION HAS CONFIRMED THE REASONABLENESS OF THE BASIC PRICES AS PUBLISHED BY THE COMMISSION ( 1 );

WHEREAS THE PRICES OF IMPORTS INTO THE COMMUNITY OF THE PRODUCTS WHICH ARE THE SUBJECT OF THE COMPLAINT HAVE BEEN COMPARED WITH THESE BASIC PRICES ;

WHEREAS THIS PRICE COMPARISON WAS MADE ON A FREE-AT-COMMUNITY-FRONTIER DUTY-PAID BASIS ;

WHEREAS THIS EXAMINATION OF THE MATTER HAS SHOWN THAT THE PRODUCTS IN QUESTION WERE OFFERED FOR IMPORT 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 , WITH REGARD TO INJURY TO THE INDUSTRY CONCERNED , THE EVIDENCE AVAILABLE TO THE COMMISSION SHOWS THAT IMPORTS INTO THE COMMUNITY OF THE PRODUCTS CONCERNED INCREASED OVERALL FROM 61 000 TONNES IN 1974 TO 237 000 TONNES IN 1977 , WHILE THOSE ORIGINATING IN JAPAN ROSE FROM 31 000 TO 57 000 TONNES OVER THE SAME PERIOD , THE MARKET SHARES THUS ACHIEVED BEING 7 % FOR ALL IMPORTS AND 5 % FOR THOSE ORIGINATING IN JAPAN TOGETHER WITH THOSE FROM AUSTRIA , AUSTRALIA , CZECHOSLOVAKIA , FINLAND , THE GERMAN DEMOCRATIC REPUBLIC , POLAND , SOUTH AFRICA , SPAIN AND SWEDEN , WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES IN THE COMMUNITY OR TO STEEL ARRANGEMENTS CONCLUDED WITH THE ECSC ;

WHEREAS , ON THE OTHER HAND , THE COMMUNITY STEEL INDUSTRY IS IN A STATE OF CRISIS ; WHEREAS DURING THE PERIOD 1974 TO 1977 , PRODUCTION OF THE PRODUCTS CONCERNED STAGNATED , WHILE THE NUMBER EMPLOYED FELL FROM 780 000 TO 720 000 , SHORT TIME WORKING BECAME NECESSARY AND MOST OF THE FIRMS CONCERNED SHOWED REDUCED PROFITS OR SERIOUS LOSSES ;

WHEREAS THE IMPORT PRICES INTO THE COMMUNITY OF PRODUCTS ORIGINATING IN JAPAN HAVE DEPRESSED THE ALREADY LOW PRICES OF COMMUNITY PRODUCERS ;

WHEREAS , THEREFORE , THE FACTS AS FINALLY ESTABLISHED SHOW THAT MATERIAL INJURY HAS BEEN CAUSED TO THE COMMUNITY INDUSTRY , OR THAT SUCH INJURY WOULD HAVE BEEN CAUSED IF PROVISIONAL ACTION HAD NOT BEEN TAKEN , BY IMPORTS ORIGINATING IN JAPAN TOGETHER WITH THOSE FROM AUSTRIA , AUSTRALIA , CZECHOSLOVAKIA , FINLAND , THE GERMAN DEMOCRATIC REPUBLIC , POLAND , SOUTH AFRICA , SPAIN AND SWEDEN , WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES OR COVERED BY STEEL ARRANGEMENTS CONCLUDED WITH THE COMMUNITY ;

WHEREAS , IN THE SERIOUS CONDITIONS BEING EXPERIENCED BY THE COMMUNITY STEEL INDUSTRY , THE INTERESTS OF THE COMMUNITY REQUIRE THE IMPOSITION OF A DEFINITIVE ANTI-DUMPING DUTY AND THE DEFINITIVE COLLECTION OF THE AMOUNT SECURED BY WAY OF PROVISIONAL DUTY ;

WHEREAS THE AMOUNT OF SUCH DEFINITIVE DUTY SHOULD CORRESPOND TO THE DIFFERENCE BETWEEN THE BASIC PRICE PUBLISHED BY THE COMMISSION FOR THE PRODUCTS IN QUESTION AND THEIR PRICE ON IMPORTATION INTO THE COMMUNITY , DUE CONSIDERATION BEING GIVEN TO ANY REDUCTION IN VALUE CLAIMED BY THE IMPORTERS AND ESTABLISHED TO THE SATISFACTION OF THE COMPETENT NATIONAL AUTHORITIES ;

WHEREAS , HOWEVER , CERTAIN ARRANGEMENTS HAVE BEEN MADE BETWEEN THE COMMUNITY AND JAPAN , WITH RESPECT TO TRADE IN STEEL PRODUCTS ;

WHEREAS THESE ARRANGEMENTS , WHICH THE COMMISSION CONSIDERS SATISFACTORY , ALLOW THE DEFINITIVE DUTY UNDER THIS RECOMMENDATION TO BE SUSPENDED AND TO EXCLUDE CERTAIN TRANSACTIONS FROM THE DEFINITIVE COLLECTION OF DUTY ,

HAS ADOPTED THIS RECOMMENDATION :

ARTICLE 1

1 . A DEFINITIVE ANTI-DUMPING DUTY IS HEREBY IMPOSED ON THE FOLLOWING PRODUCTS ORIGINATING IN JAPAN :

- ZINC-COATED ( OTHER THAN ELECTROLYTICALLY ) STEEL SHEETS AND PLATES ( GALVANIZED );

- COMMON CUSTOMS TARIFF SUBHEADING 73.13 B IV C );

- NIMEXE CODES 73.13-68 , 72 .

2 . THE AMOUNT OF THIS DUTY SHALL BE EQUAL TO THE AMOUNT BY WHICH THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRA ) ESTABLISHED BY CONTRACT , FREE-AT-COMMUNITY FRONTIER DUTY-PAID , IS LOWER THAN THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRA ) LAST PUBLISHED BY THE COMMISSION FOR THIS PRODUCT AT THE TIME OF ITS ENTRY FOR COMMUNITY CONSUMPTION .

3 . THE AMOUNT OF THE DUTY SHALL HOWEVER BE REDUCED TO THE EXTENT THAT THE IMPORTER ESTABLISHES TO THE SATISFACTION OF THE COMPETENT NATIONAL AUTHORITIES THAT THE PRICE DIFFERENTIAL REFERRED TO IN PARAGRAPH 2 ABOVE IS DUE TO A REDUCTION IN VALUE RESULTING FROM THE QUALITY OF THE GOODS BEING INFERIOR TO THE LOWEST QUALITY DESCRIBED IN THE LAST PUBLICATION OF BASIC PRICES BY THE COMMISSION .

4 . THIS DUTY SHALL BE COLLECTED ON THE SAME BASIS AS CUSTOMS DUTIES .

ARTICLE 2

THE AMOUNTS SECURED BY WAY OF PROVISIONAL DUTY UNDER THE PROVISIONS OF RECOMMENDATION NO 359/78/ECSC , IN RESPECT OF PRODUCTS ORIGINATING IN JAPAN , SHALL BE DEFINITIVELY COLLECTED TO THE EXTENT THAT THEY DO NOT EXCEED THE RATE OF DUTY FIXED IN THIS RECOMMENDATION .

ARTICLE 3

1 . THE APPLICATION OF THE DEFINITIVE ANTI-DUMPING DUTY IMPOSED UNDER ARTICLE 1 ABOVE IS HEREBY SUSPENDED .

ARTICLE 4

IN DEROGATION FROM ARTICLE 2 , THE AMOUNTS SECURED BY WAY OF PROVISIONAL DUTY SHALL NOT BE DEFINITIVELY COLLECTED BUT SHALL BE REFUNDED UPON REQUEST OF THE IMPORTER CONCERNED , AS REGARDS :

( A ) GALVANIZED SHEETS AND PLATES OF QUALITIES OTHER THAN BS 2989 , GRADES Z1 OR Z2 , OR OF A THICKNESS OF LESS THAN 1 MM ;

( B ) DELIVERIES MADE UNDER CONTRACTS CONCLUDED BEFORE 20 DECEMBER 1977 , WHICH CONTAIN NO PRICE REVISION CLAUSE PERMITTING AN ADAPTATION OF THE CONTRACT PRICES TO THE BASIC PRICES APPLIED IN THE COMMUNITY ;

( C ) DELIVERIES MADE UNDER THE CONTRACTS REFERRED TO UNDER ( B ) ABOVE AND DESTINED FOR SHIPBUILDING YARDS WITHIN THE COMMUNITY .

ARTICLE 5

THIS RECOMMENDATION SHALL BE NOTIFIED TO THE MEMBER STATES .

IT SHALL ENTER INTO FORCE FOR EACH MEMBER STATE ON THE DAY OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

DONE AT BRUSSELS , 20 JULY 1978 .

FOR THE COMMISSION

WILHELM HAFERKAMP

VICE-PRESIDENT